UPDATE 2-Brazil's BTG posts net income increase of 52%

(Updates with share reaction and analyst comments)

SAO PAULO, May 11 (Reuters) - Brazilian bank BTG Pactual SA on Tuesday reported first-quarter net income of 1.197 billion reais ($229 million), up 51.7% from a year earlier with growth seen in most of its business units.

Its total revenues climbed 84% year-on-year, to 2.796 billion reais, helped by a busy deal-making quarter for BTG's investment banking unit, higher influx of money to the bank's funds and intense trading activity.

New influx of money to its funds reached a record of 76 billion reais in the quarter, BTG said.

Costs went up 84% from a year earlier, to 1.199 billion reais, boosted by a five-fold growth in bonuses paid.

"There was an increase in expenses for the retail unit account, but not enough to take the shine out of the bottom line result," said Banco Safra's analysts in a note to clients.

BTG said it had concluded the sale of its 22.25% stake in Swiss private bank EFG International AG, to its controlling shareholder, BTG Pactual Holding, for 3.8 billion reais, a plan announced two years ago.

Units in BTG were down 0.38% in the morning trading, in line with Brazil's stock index. For the year they are up more than 18%, as analysts and investors are bullish about the bank's inroads into retail banking. Each unit comprises one common share and two preferred shares

BTG's return on equity, a gauge of profitability, was at 16.8%, a drop of 2.3 percentage points from the previous quarter as the bank raised roughly 2.5 billion reais in January. ($1 = 5.2238 reais) (Reporting by Carolina Mandl, additional reporting by Paula Laier, editing by Estelle Shirbon and Steve Orlofsky)