Recurring net income reaches a record
R$572 million, up 30%
year-on-year;
Revenue growth driven by robust growth
in acquiring (TPV) and acceleration of the banking platform
SÃO PAULO, Nov. 14,
2024 /PRNewswire/ -- PagBank (NYSE: PAGS), a
leading digital bank offering a comprehensive suite of financial
services and payment solutions, announced strong results for the
third quarter of 2024 (3Q24). The Company reported net revenues
of R$4.8 billion in 3Q24 (+20%
YoY). Recurring net income reached a record high of
R$572 million (+30% YoY), with
a record reported net income of R$531
million (+29% YoY).
"This quarter's exceptional results demonstrate the power of our
customer-centric approach," said Alexandre
Magnani, PagBank's CEO. "Our payments business grew more
than twice as fast as the overall card market, while banking
revenue increased 52%. We achieved this growth while
maintaining a strong balance sheet and delivering increased value
to our shareholders with earnings per share growth of 31%."
PagBank's acquiring business achieved a record performance, with
total payment volume (TPV) reaching R$136.3 billion, an annual growth of 37%
(+10% YoY). This growth was driven by solid performance across all
segments, particularly in micro, small and medium enterprises
(MSMEs), contributing 65% of TPV. Key growth verticals
include online, cross-border and automation, which now account for
a third of total TPV.
PagBank's digital banking platform showed robust growth, with
deposits reaching a record R$34.2
billion, a remarkable 59% increase year-on-year. This
increase reflected growth in PagBank's account balances and
increased investments in certificates of deposit (CDBs) issued by
the bank.
"Our robust revenue growth, coupled with healthy margins,
underscores the effectiveness of our strategic investments in
process optimization, innovation, and service quality,"
said Gustavo Sechin, PagBank's Director of IR, ESG, Market
Intelligence and Economics. "Reduced funding costs also
strengthens our competitive position in the market."
The credit portfolio recorded strong growth in 3Q2024,
increasing 30% YoY to R$3.2
billion. Low-risk, high-engagement products, including
credit cards, payroll loans, and FGTS anniversary withdrawal
advances drove this expansion.
Growth is also driven by the resumption of credit lines, such as
working capital loans for SMEs and expanded credit card limits for
low-risk borrowers. The company sees these as key drivers of future
loan portfolio growth.
Artur Schunck, PagBank's CFO,
highlighted the acceleration in volumes and revenues, combined with
cost and expense discipline, as key drivers of the company's record
results. "We successfully balanced growth and profitability,
gaining traction in all of our operating segments," said the
CFO. "By building operating leverage, reducing funding costs
through deposit growth, and improving risk management, we have
established a strong foundation for the future. This performance
reinforces our confidence in delivering the year's expected
results."
Other highlights
Net revenue in 3Q24 was
R$4.8 billion (+20% YoY),
driven by solid growth in acquiring and even greater growth in
banking (+52% YoY).
The digital bank also delivered a significant margin expansion
in its financial services (+68% 3Q24). This success, coupled
with attaining 32.1 million customers, solidifies PagBank's
position as a leading financial institution in the country.
PagBank has been working on launching new products and
services that will expand its portfolio of solutions to make
its customers' financial lives easier. These include the
Multiple Card, which combines the credit and debit functions
in a single product, making it more convenient for PagBank
customers, and the 3% cash back on the card's first bill,
offered to customers who make purchases using the credit
function.
"Our focus on simple, accessible, and digital solutions has
clearly resonated with customers," said Magnani, citing
increased engagement with the company's payment and banking
offerings. He emphasized the company's vision for the future:
"We want to create an interface that brings together all the
essential elements of a customer's financial life in one
place."
To further capitalize on the market opportunity and attract new
customers, PagBank is offering a range of compelling Black Friday
promotions. These include special discounts on card reader
machines, early access to FGTS funds, INSS payroll loans and
variable income transfer options. Customers can also take
advantage of cash-back offers on life and home insurance
policies.
To access PagBank's full 3Q24 balance sheet, click here.
Important notice on forward-looking
statements
This document contains certain
forward-looking statements. Forward-looking statements are
statements that are not historical facts or that relate to future
events and are subject to risks and uncertainties. There can be no
assurance that the forward-looking statements contained in this
press release will be consummated or achieved. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
About PagBank
PagBank promotes innovative
solutions in financial services and means of payment, automating
the process of buying, selling and transferring in order to promote
the business of any person or company in a simple and secure way.
PagBank, a company of the UOL Group - Brazil's Internet leader - acts as an issuer
and acquirer, offering digital accounts and complete solutions for
online and in-person payments (via mobile and POS devices).
PagBank also offers a wide variety of payment methods,
such as credit and prepaid cards, as well as bank transfers, boleto
payments, account balances and more. PagBank (PagSeguro Internet
Instituição de Pagamento S.A.) is regulated by the Central Bank of
Brazil as a payment institution,
issuer of electronic money, issuer of post-paid instruments and
acquirer, with partnerships with the main card brands. Its parent
company, PagSeguro Digital, is publicly traded in the United States (NYSE: PAGS) and regulated
by the SEC (Securities and Exchange Commission). The distribution
of mutual funds is carried out by BancoSeguro S.A., authorized by
the Central Bank of Brazil, the
Securities and Exchange Commission and affiliated to
ANBIMA.
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SOURCE PagBank
