PagBank Reports Strong Q3 Earnings with 571 Million BRL in Profit Amidst Economic Challenges

PagBank's Resilience Shines Through Economic Challenges

PagBank, a prominent digital banking institution traded on the NYSE under the ticker PAGS, has recently released its financial results for the third quarter of 2025. In an impressive display of resilience amid challenging economic conditions, the bank reported a recurrent profit of 571 million BRL, accompanied by a 14% increase in net revenue. This robust performance is further complemented by a 30% growth in its loan portfolio, reflecting the bank's strategic focus on enhancing its financial service offerings.

Growth Amidst High Interest Rates

Despite the prevailing high interest rates that have affected many sectors, PagBank continues to demonstrate a strong operational performance. The bank’s total deposits have reached 39.4 billion BRL, marking a significant year-on-year increase of 15.3%. The impressive growth can be attributed to several factors, including an enhanced distribution of CDB (Bank Deposit Certificates) and favorable ratings from international credit agencies, which have provided a solid foundation for trust among depositors.

Furthermore, the loan portfolio expansion to 4.2 billion BRL signifies a remarkable 29.9% increase from the previous year. Notably, the bank has made strides to support small and medium-sized enterprises (SMEs), with working capital financing for these businesses seeing a staggering growth of 116% year-over-year.

A Commitment to Shareholders and Innovation

PagBank remains committed to its shareholders, distributing over 2 billion BRL in dividends and share repurchases over the past year. The company’s CEO, Alexandre Magnani, expressed his confidence in the bank's future, emphasizing the strategic initiatives aimed at leveraging artificial intelligence to streamline financial processes for clients. This approach is designed not only to enhance efficiency but also to improve customer experience, making banking simple, secure, and accessible.

Additionally, the bank has welcomed an influx of new customers, with its client base now standing at 33.7 million, an increase of 1.6 million during this reporting period. This growth reflects PagBank's commitment to providing a comprehensive suite of digital solutions tailored to meet the financial needs of individuals and businesses alike.

Leadership Transition

In efforts to ensure sustained growth and manage this upward trajectory, PagBank has also announced strategic changes in its leadership. Starting January 1, 2026, Carlos Mauad, the current Chief Operating Officer, will step into the role of Chief Executive Officer, paving the way for a new era of leadership. Meanwhile, Gustavo Sechin will take over as Chief Financial Officer, bringing fresh insights and innovation to the financial management of the bank.

The outgoing CEO, Alexandre Magnani, along with the current CFO Artur Schunk, will assume positions on the board of directors to facilitate a smooth transition, ensuring that the bank's strategic objectives remain aligned and focused during this pivotal change.

Looking Forward

Magnani reflects positively on Mauad’s extensive experience in the banking and lending sectors in Brazil, describing him as well-equipped to navigate PagBank's next chapter of growth. As the institution reinforces its role within Brazil’s financial landscape, it remains dedicated to building a future-proof bank, centralizing customer experience and fostering an ecosystem that supports both individuals and enterprises.

This strategic vision positions PagBank not only as a leading player in digital banking but as a partner committed to driving financial inclusion across Brazil.

As PagBank moves forward, it continues to monitor economic trends and industry shifts, adapting its strategies to maintain its growth trajectory while ensuring shareholder value and customer satisfaction.

To review the full financial statements for PagBank’s third quarter results, please click here.