THEBanking, a full digital bank in financial services and payment methods, announced the results for the second quarter of 2024 (2Q24). Among the main highlights of the period, the Company recorded arecurring net income, a record in the history of the institution, ofR$ 542 million(+31% year over year). THEnet accounting profit, also a record, wasR$ 504 million (+31% a/a).
About to complete two years as CEO of PagBank, Alexandre Magnani celebrates the record numbers, the result of the strategy implemented and executed from the beginning of 2023:“We are almost32 million customers. The numbers consolidate PagBank as a solid and complete bank, reinforcing our purpose of facilitating the financial lives of people and businesses in a simple, integrated, safe and accessible way”, says theCEO.
In the acquisition, theTPVregistered was a record and reachedR$ 124.4 billion,an annual growth of +34% (+11% quarter-over-quarter), more than triple the industry during the period. The value was driven by growth across all segments, especially in the micro and small entrepreneurs (MPEs) segment, which accounts for 67% of GMV, and the new business growth verticals, with a focus on operations.online, cross-borderand automation, which already represent a third of TPV.
In digital banking, PagBank achievedR$ 76.4 billionofCash-in(+52% y/y), contributing to the record volume ofdeposits, which reached a total ofR$ 34.2 billion, with an impressive +87% increase y/y and 12% q/q, reflecting the +39% growth a/a in PagBank account balances and the greater volume of investments captured in CDBs issued by the bank, which grew +127% in the last twelve months.
“This month, we received the ratingAAA.br andMoody’s, with a stable outlook, the highest level on the local scale.In less than a year, both theS&P Globalas theMoody’s they rated us with the highest score on their local scales: 'triple A'. At PagBank, our clients benefit from the stability similar to the largest financial institutions in the country, but with better returns and terms. This is only possible because we have a lean cost structure and the agility of a fintech.points out Magnani.
No 2T24, a credit portfoliorecorded an expansion of +11% y/y, reachingR$ 2.9 billion, leveraging low-risk, high-engagement products, such as credit cards, payroll loans and advance FGTS anniversary withdrawals, while resuming the granting of other lines of credit.
According to Artur Schunck, CFO of PagBank, the acceleration of volume and revenues, combined with discipline in costs and expenses, were the main drivers of the record results.We have managed to balance growth with profitability. Revenue growth accelerated in recent quarters, and our investments in expanding sales teams, marketing actions, and improving customer service without compromising profit growth, giving us the capacity to raise our guidance for TPV and recurring net profit.”, Schunck firm.
With the end of the first semester of 2024, the company raised its projections for GMV and recurring net profit for the year. For the TPV, the company now expects a year-over-year growth between +22% and +28%, well above the growth of +12% to +16% of theguidanceshared earlier this year. For recurring net profit, the company now expects growth between +19% and +25% year-over-year, above the growth of +16% to +22% ofguidanceshared earlier this year.
Other highlights
A net revenuein 2Q24 wasR$ 4.6 billion(+19% year-over-year), driven by a strong increase in higher-margin revenues in financial services. With thenumber of customersreaching the mark of31.6 million, reinforcing PagBank’s position as one of the largest digital banks in the country.
PagBank has been working on launchingnew products and servicesthat will expand the increasingly comprehensive portfolio of solutions to facilitate their clients' businesses. The digital bank has just launched the service ofanticipation of receivables from other machines, with the deposit into the account on the same day for clients with PagBank domicile. Already in this month of August, eligible customers are already enjoying the service on their bank account.
“This will be a new way for merchants to access receivables in a centralized manner. With it, it is possible to view and anticipate all sales from any acquirer in the PagBank app, without the need to access multiple applications,”Explain Magnani. According to the CEO, in this first phase of the product, the company is offering functionalities that include self-service contracting, same-day disbursement for PagBank customers, and customized negotiations by acquirer and amounts.
Another feature that has just been made available is themultiple payment of bills, which allows multiple payments to be made simultaneously in a single transaction, reducing the time needed to process each boleto individually. The solution mainly benefits individual or corporate account users who want to pay multiple bills at once.And, in addition to these releases, many others are coming.
“For our6.4 million merchant and entrepreneur customers, these and other competitive advantages such as zero interest for new merchants, instant transfer to the PagBank account, express machine delivery, and Pix acceptance, are major differentiators. We are focused on the strategy of attracting and retaining customers and encouraging them to use PagBank as their primary bank, generating more value for the company and contributing to our sustainable growth., completes Alexandre Magnani, CEO of PagBank.
To access PagBank's full balance sheet for 2Q24,Click here.
