PagBank a full-service digital bank offering financial services and payment methods, announced its results for the second quarter of 2024 (2Q24). Among the main highlights of the period, the Company recorded a recurring net income , a record in the institution's history, of R$542 million (+31% y/y). Accounting net income , 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 have almost 32 million customers . These numbers consolidate PagBank as a solid and comprehensive bank, reinforcing our purpose of facilitating the financial lives of individuals and businesses in a simple, integrated, secure, and accessible way," says the CEO.
In acquiring, TPV reached a record R$124.4 billion, representing a 34% annual growth (+11% q/q), more than triple the industry's growth during the period. This figure was driven by growth across all segments, particularly in the micro and small business segment (MSMEs), which represents 67% of TPV, and new business growth verticals, particularly online , cross-border , and automation operations, which already represent a third of TPV.
In digital banking, 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 increase and 12% q/q, reflecting the +39% y/y growth in PagBank account balances and the higher volume of investments captured in CDBs issued by the bank, which grew +127% in the last twelve months.
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 have given us the highest rating on their local scales: 'triple A.' At PagBank, our customers enjoy the same solidity as the largest financial institutions in the country, but with better returns and terms. This is only possible thanks to our lean cost structure and the agility of a fintech," notes Magnani .
In 2Q24, the credit portfolio expanded by +11% year-on-year, reaching R$2.9 billion , driven by low-risk, high-engagement products such as credit cards, payroll loans, and advance FGTS anniversary withdrawals, while also resuming the granting of other credit lines.
According to Artur Schunck, PagBank's CFO, accelerating volume and revenue, combined with disciplined costs and expenses, were the main drivers behind the record results. "We have managed to balance growth with profitability. Revenue growth has accelerated in recent quarters, and our investments in expanding sales teams, marketing initiatives, and improving customer service have not compromised profit growth, giving us the leverage to revise our TPV and recurring net income guidance upwards ," says Schunck.
With the first half of 2024 drawing to a close, the company raised its TPV and recurring net income projections for the year. For TPV, the company now expects growth of between +22% and +28% year-on-year, well above the +12% and +16% growth guidance shared at the beginning of the year. For recurring net income, the company now expects growth of between +19% and +25% year-on-year, above the +16% and +22% growth guidance shared at the beginning of the year.
Other highlights
Net revenue in 2Q24 was R$4.6 billion (+19% y/y), driven by a strong increase in higher-margin revenues from financial services. The number of customers reached 31.6 million , reinforcing PagBank's position as one of the largest digital banks in the country.
PagBank has been working on launching new products and services that will expand its increasingly comprehensive portfolio of solutions to facilitate its customers' business. The digital bank has just launched a service that to receive advance payments from other terminals , with same-day deposits into their accounts. This August, eligible customers will be able to access the service in their bank accounts.
"This will be a new way for merchants to access receivables centrally. With it, it's 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 first phase of the product, the company is offering features that include self-service contracting, same-day disbursement for PagBank customers, and customized negotiations by acquirer and amount.
Another newly released feature is multiple boleto payments , which allows you to make multiple payments simultaneously in a single transaction, reducing the time required to process each boleto individually. This solution primarily benefits individual or corporate account holders who want to pay multiple bills at once. And beyond these launches, many more are on the horizon.
" For our 6.4 million merchant and entrepreneur customers , these and other competitive advantages, such as zero fees for new merchants, instant advances to PagBank accounts, express ATM delivery, and Pix acceptance, are significant differentiators. We are focused on 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 ," adds Alexandre Magnani, CEO of PagBank.
To access PagBank's full 2Q24 balance sheet, click here .
