In acquiring, record TPV of 124 billion BRL, three times the industry's
growth; in banking, record revenue of 434 million BRL, +41% higher than the same period
in 2023
SÃO PAULO, Aug. 21, 2024
/PRNewswire/ -- PagBank (NYSE: PAGS), a complete digital
bank in financial services and payments solution, announces its
results for the second quarter of 2024 (2Q24). Among the key
highlights of the period, the company recorded a
record net income (Non-GAAP) of 542 million
BRL (+31% y/y). Net income in a GAAP basis, also a
record, was 504 million BRL
(+31% y/y).
After almost two years as CEO of PagBank, Alexandre Magnani celebrates the record numbers,
the result of the strategy implemented and executed since the
beginning of 2023: "We have nearly 32 million clients.
These figures consolidate PagBank as a solid and complete bank,
reinforcing our purpose of facilitating the financial life of
people and businesses in a simple, integrated, secure and
accessible way," says the CEO.
In acquiring, the TPV registered was a record,
reaching 124.4 billion BRL, an
annual growth of +34% (+11% t/t), more than three times the
industry's growth. This figure was driven by growth in all
segments, especially in Micro and Small Enterprises (MSMEs), which
accounted for 67% of TPV, and new business growth verticals,
especially online, cross-border and automation, which already
account for a third of TPV.
In digital banking, PagBank reached 76.4 billion BRL in cash-in
(+52% y/y), contributing to the record volume of deposits,
which reached a total of 34.2 billion
BRL, up an impressive +87% y/y and 12% q/q. This
reflects the +39% y/y growth in PagBank checking accounts and the
higher volume of investments raised in CDBs issued by the bank,
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 have given us the highest rating on their local
scale: triple-A. At PagBank, our customers have the same solidity
as the country's largest financial institutions but with better
returns and terms. This is only possible because we have a lean
cost structure and the agility of a fintech," says Magnani.
In 2Q24, the credit portfolio grew +11% y/y to
2.9 billion BRL, leveraging
low-risk, high-engagement products such as credit cards, payroll
deduction loans and anticipation of FGTS anniversary withdrawals
while resuming other credit lines.
According to Artur Schunck, CFO
of PagBank, the acceleration in volumes and revenues, combined with
cost and expense discipline, were the main drivers of the record
results. "We have managed to balance growth and profitability.
Revenue growth has accelerated in recent quarters and our
investments in expanding commercial teams, marketing activities and
improving customer service have not impacted profit growth, giving
us the impetus to raise our TPV and Non-GAAP net income
guidance," said Schunck.
As the first half of 2024 draws to a close, the company has
raised its TPV and Non-GAAP net income guidance for the year. For
TPV, the company now expects growth of between +22% and +28%
year-over-year, significantly higher than the guidance of between
+12% and +16% provided at the beginning of the year. For Non-GAAP
net income, the company now expects growth of between +19% and +25%
y/y, higher than the guidance of between +16% and +22% provided at
the beginning of the year.
Other Highlights
Total Revenue and Income in
2Q24 was 4.6 billion BRL (+19%
y/y), driven by solid growth in higher-margin financial services
revenues. The number of clients reached 31.6 million,
bolstering 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 complete portfolio
of solutions to make it easier for its customers to do business.
The digital bank has just launched the service of anticipating
receivables from other POS, with same-day deposit to the
account for customers with a PagBank domicile. This August,
eligible customers can count on this service in their bank
account.
"This will be a new way for merchants to access their
receivables centrally. It will allow them to view and forecast all
sales from any acquirer in the PagBank application, without having
to access multiple applications," Magnani explains. According
to the CEO, in this first phase of the product, the company offers
features such as self-service contracting, same-day disbursement
for PagBank customers, and customized negotiations by acquirer and
amount.
Another feature that has just been made available is the
multiple payment of boletos. This allows several
payments to be made simultaneously in a single transaction,
reducing the time needed to process each boleto
individually. The solution mainly benefits PF (individual) or PJ
(business) account users who want to pay several bills at once. In
addition to these launches, there are many more to come.
"For our 6.4 million merchant and business
customers, these and other competitive advantages, such as zero
fees for new merchants, on-the-spot prepayments to PagBank
accounts, express POS delivery and Pix acceptance, are key
differentiators. We are focused on attracting and retaining
customers and encouraging them to use PagBank as their main bank,
thereby generating more value for the company and contributing to
our sustainable growth," added Alexandre Magnani, CEO of PagBank.
To access PagBank's full balance sheet for 2Q24, click here.
Important Note Regarding Forward-Looking
Statements
This document contains certain
forward-looking statements. Forward-looking statements are not
historical facts or related 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
realized or achieved. The Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether
due to new information, future events or otherwise.
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.
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