The PagBank, a complete digital bank in financial services and payment methods, announced the results of the second quarter of 2024 (2Q24). Among the main highlights of the period, the Company reported a record recurring net profit in the history of the institution, of R$ 542 million (+31% y/y). The accounting net profit, also a record, was R$ 504 million (+31% y/y).
About to complete two years as CEO of PagBank, Alexandre Magnani celebrates the record numbers, a result of the strategy implemented and executed since the beginning of 2023: “We are almost 32 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, secure, and accessible way,” says the CEO.
In acquiring, the registered TPV was a record and reached R$ 124.4 billion, an annual growth of +34% (+11% q/q), more than triple the industry in the period. The value was driven by the increase in all segments, especially in the micro and small entrepreneurs (MSMEs) segment, which represent 67% of TPV, and the new business growth verticals, with emphasis on online, cross-border, and automations operations, already accounting for a third of the TPV.
In the digital bank, PagBank reached R$ 76.4 billion in Cash-in (+52% y/y), contributing to the record volume of deposits, which reached a total of R$ 34.2 billion, with an impressive +87% y/y and 12% q/q increment, reflecting the +39% y/y growth in PagBank account balances and the higher volume of investments raised in the bank’s issued CDBs, which grew +127% in the last twelve months.
“This month, we received the AAA.br rating from Moody’s, with a stable outlook, the highest level on the local scale. In less than a year, both S&P Global and Moody’s rated us with the maximum rating on their local scales: ‘triple A.’ At PagBank, our clients benefit from solidity 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,” Magnani points out.
In 2Q24, the credit portfolio recorded an expansion of +11% y/y, reaching R$ 2.9 billion, driven by low-risk and high-engagement products, such as credit cards, consigned credit, and anticipation of FGTS birthday withdrawal, while also resuming the granting of other credit lines.
According to Artur Schunck, CFO of PagBank, the acceleration of volume and revenues, combined with cost and expense discipline, were the main drivers of record results. “We have been able to balance growth with profitability. Revenue growth has accelerated in recent quarters, and our investments in expanding commercial teams, marketing actions, and improving customer service without compromising profit growth, giving us room to revise upwards our TPV and recurring net profit guidance,” says Schunck.
With the close of the first half of 2024, the company raised its TPV and recurring net profit projections for the year. For TPV, the company now expects growth between +22% and +28% y/y, well above the growth between +12% and +16% of the guidance shared at the beginning of the year. As for recurring net profit, the company now expects growth between +19% and +25% y/y, above the growth between +16% and +22% of the guidance shared at the beginning of the year.
Other highlights
The net revenue in 2Q24 was R$ 4.6 billion (+19% y/y), driven by a strong increase in higher-margin revenues in financial services. With the number of customers reaching 31.6 million, reinforcing PagBank’s position as one of the largest digital banks in the country.
The PagBank has been working on launching new products and services that will expand an increasingly complete portfolio of solutions to facilitate its customers’ businesses. The digital bank has just launched the anticipation of receivables from other card machines service, with the deposit into the account on the same day for customers domiciled in PagBank. Already this August, eligible customers are already benefiting from the service in the 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,” explains Magnani. According to the CEO, in this initial phase of the product, the company is offering features that include contracting via self-service, disbursement on the same day for PagBank customers, and customized negotiations by acquirer and amounts.
Another functionality that has just been made available is the multiple bill payments, which allows making multiple payments simultaneously in a single transaction, reducing the time needed to process each bill individually. The solution benefits mainly individual or business account users who wish to pay several bills at once. And, in addition to these launches, many others are yet to come.
“For our 6.4 million commercial customers and entrepreneurs, these and other competitive advantages such as zero fees for new store owners, instant anticipation in the PagBank account, express machine delivery and Pix acceptance, are significant differentiators. We are focused on the strategy of attracting and retaining customers and encouraging them to use PagBank as their primary bank, creating more value for the company and contributing to our sustainable growth,” said Alexandre Magnani, CEO of PagBank.
To access the complete PagBank balance in 2Q24, click here.
