TPV reached 112 billion
BRL (+27% YoY), more than twice the industry's growth and
31 billion BRL in deposits,
reinforcing the balance sheet for expansion of receivables
anticipation and credit concession.
SÃO PAULO, May 24, 2024
/PRNewswire/ -- PagBank (NYSE: PAGS), a complete digital
bank in financial services and payments solution and one of the
largest digital banks in Brazil,
announces its results for the first quarter of 2024 (Q124). The
main highlights of the period include a record recurring net
profit of 522 million
BRL (+33% YoY), while the net accounting
profit reached 483 million
BRL (+31 YoY%).
Alexandre Magnani, CEO of
PagBank, points out the continuity of the good results presented in
the last quarters, highlighting the expressive gain of market share
in payments (acquirings), balancing growth with profitability,
while the Company establishes itself among the largest financial
institutions in Brazil in number
of clients:
"We are more than 31 million customers and our execution has
been consistent. We have consolidated our value proposition for
micro, small, and medium-sized enterprises, facilitating the
financial life of individuals and businesses. At the same time, we
have captured opportunities for client-consumers who do not have a
relationship with payment machines through payroll loans, our broad
investment platform, and the offer of a complete bank," says
the CEO of PagBank.
In acquirings, the TPV registered was 112 billion BRL (+27% YoY), growing in all
segments (MSMBs and Large Companies, E-commerce, and Cross-border
businesses1). In digital banking, PagBank reached
66 billion BRL in
Cash-In (+48% YoY), a metric that represents the financial
volume received from other financial institutions in PagBank
accounts, excluding acquisition, especially Pix, business account
products, and salary portability.
The substantial volumes of TPV and Cash-in led deposits
to record numbers of nearly 31 billion
BRL (+64% YoY and +11%QoQ) despite the less favorable
seasonality of the period, given that in the first months of the
year, customers have more significant disbursements to honor the
payment of taxes, such as IPTU and IPVA, and school yearly
supplies, among other expenses."We stand out for offering
instant settlement for our customers and carrying out easy
operations via Pix, leveraging our TPV and Cash-In volume in
PagBank accounts. This, added to the fact that we have a banking
license since 2019, means that we have the agility of a fintech and
low funding costs like a traditional bank," says
Magnani.
According to Artur Schunck, CFO
of PagBank, operational growth does not harm the Company's capital
allocation. On the contrary, the acceleration of revenue growth and
discipline in costs and expenses were the main levers of the record
result. "The financial margins of the consolidated business were
high. Our profit grew more than 30% compared to the Q1 2023, even
with additional disbursements linked to the new cycle of growth and
diversification of the operation, including geographical expansion
and marketing actions in the period", says Schunck.
The credit portfolio resumed growth and reached 2.7
billion (+8% QoQ) at the end of March, focusing on low-risk
products such as consigned credit, the anticipation of the year
withdrawal of FGTS (Severance Pay Fund), and credit cards with a
limit attached to PagBank's CDBs (a type of fixed-income
investment). Schunck believes that despite short-term macroeconomic
uncertainties regarding interest and inflation behavior, the worst
is in the past, and he is confident in the credit strategy:
"We crossed the pandemic, the significant high-interest rate
period, and one of the worst credit cycles in Brazil and still we have built a robust
balance sheet and diversified our credit portfolio in terms of
customers, products, and risks. Now, we are opening up
opportunities to accelerate the concession and gradually expand the
offer of credit products from the next few months," says the
CFO of PagBank.
Other Highlights
Net revenue in the quarter was 4.3 billion BRL (+15% YoY), driven by the
strong growth of the acquirings, led by MSMBs (micro, small and
medium-sized businesses) and the advance in large accounts, with
emphasis on online, cross-border, and automation, as well as the
growth of higher margins in financial services. The number of
clients reached 31.4 million, reinforcing PagBank's
position as one of the largest digital banks in the country.
In the period, PagBank was recognized as the best bank in
Brazil and awarded the
RA1000 seal of quality in service, both granted by the Reclame
Aqui ranking and as one of the 50 most valuable brands in the
country, according to a survey conducted by Kantar BrandZ.
Among the launches of the quarter, main highlights were
PagBankPartnerships, a relationship and integration program
with software companies and commercial automation; Seguro
Empresarial (Business Insurance) offering coverage
against fires, electrical damage, theft, burglary, and natural
disasters, among others; and Tap to Pay Online, a new and
exclusive technology in Latin
America that allows the customer to run online transactions
by bringing credit or debit card closer to the mobile phone on
e-commerce platforms. In addition, PagBank has started to offer
1% cashback on all purchases made with the digital bank credit
card and new investment options, such as the CBD, with a
130% CDI rate-variation yield.
"This current moment reminds us very much of our phase
between 2018 and 2019, in which we grew in a fast and profitable
way, and launched several products. We are very optimistic about
the coming months and years of the Company", says the CEO of
PagBank.
Rio Grande do Sul
PagBank has closely monitored the potential impacts of the
ongoing climate tragedy in the state of Rio Grande do Sul and the
developments in its operations. The Company's TPV exposure in the
state is similar to the state's share in national GDP – around 5%.
The Company says t is early to share some numbers since consumption
in the affected regions have decreased due to the temporary closure
of the business, while moving people to neighboring cities and
states can increase consumption in unaffected areas.
"At this time, our focus is on supporting flood victims,
especially our professionals working in the state of Rio Grande do
Sul, through donations from PagBank and its professionals, in cash
and goods, as well as offering special support to our affected
customer," says Magnani.
Check out the financial results of PagBank in Q124 here.
About PagBank
PagBank promotes innovative
solutions in financial services and means of payment, automating
the purchase, sale, and transfer process to leverage individuals'
and enterprises' businesses simply and securely. A company of the
UOL Group – leader of the Brazilian Internet – PagBank acts
as an issuer and acquirer, offering digital accounts and providing
complete solutions for online and face-to-face payments (by mobile
devices and POS devices).
PagBank also has a wide variety of means of payment, such
as credit and prepaid cards, bank transfers, payments by billet,
and balance in the account, among others. PagBank (PagSeguro
Internet Payment Institution S.A) is regulated by the Central Bank
of Brazil as an electronic
money-issuing payment institution, issuer of post-paid instruments
and acquirer, having partnerships with the leading credit card
issuers. Its parent company, PagSeguro Digital, is listed in the
U.S. (NYSE: PAGS) and regulated by the Securities and Exchange
Commission (SEC). The distribution of investment funds is carried
out by BancoSeguro S.A., authorized by the Central Bank of
Brazil, the Securities and
Exchange Commission, and affiliated with ANBIMA.
Visit the PagBank Press Room
1 GCECs: The Brazilian acronym for large companies
(annual revenues above 12 million
BRL), e-commerce and cross-border businesses.
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