PagBank Reports Strong Q3 2025 Results with Growth in Profits and Loans

PagBank's Remarkable Financial Performance in Q3 2025

In a recent announcement, PagBank (NYSE: PAGS), one of Brazil's prominent digital banks, reported an impressive recurring net profit of BRL 571 million for the third quarter of 2025 (Q3 2025). This result not only reflects strong operational resilience amidst economic challenges but also showcases a notable increase in net revenue, which surged by 14.4% year-on-year, reaching BRL 3.4 billion. The growth is attributed to improvements in the bank's platform, enhanced service offerings, and operational efficiency.

Key Financial Highlights

PagBank's total deposits reached BRL 39.4 billion, marking a solid growth of 15.3% compared to the previous year and a 6.1% increase from the preceding quarter. This growth is largely driven by a robust distribution of Certificates of Deposit (CDB) that have garnered high ratings from leading international credit agencies.

Moreover, the bank's loan portfolio experienced a remarkable growth of 30%, totaling BRL 4.2 billion. The focus on expanding working capital for small and medium-sized enterprises (SMEs) drove a significant 116% increase in loan provisioning for this sector compared to the previous year. This strategic approach underscores PagBank's commitment to supporting the backbone of the Brazilian economy—its SMEs.

Future Prospects and Strategic Initiatives

Alexandre Magnani, CEO of PagBank, expressed confidence in the bank's future prospects, stating, "Despite the challenging macroeconomic conditions, we have distributed over BRL 2 billion to our shareholders in dividends and share buybacks over the past year. Our strategic initiatives continue to evolve, enhancing our use of AI to improve our customers' financial journeys."

PagBank has seen an increase in its customer base, now totaling 33.7 million, with 1.6 million new customers acquired during this reporting period. This growth is accompanied by a commitment to offering an integrated portfolio of digital solutions that enhance the daily financial lives of individuals and businesses alike.

Management Changes

In addition to financial results, PagBank announced management changes aiming to further strengthen its leadership. From January 1, 2026, Carlos Mauad, who currently serves as Chief Operating Officer, will take on the role of CEO, part of a succession plan that has been in place since 2024. Gustavo Sechin, currently leading investor relations, will step in as the new Chief Financial Officer.

Magnani and Artur Schunk, the current CFO, will transition into board member roles, facilitating a smooth handover of responsibilities. This restructuring reflects PagBank's growth maturity and its readiness to tackle the next chapter of its expansion, harnessing Mauad's extensive experience in Brazil's banking sector.

Conclusion

PagBank aims to build the bank of the future, focused on providing an exceptional customer experience through a complete and accessible ecosystem. With strategic initiatives in place and a continued emphasis on sustainable growth, PagBank remains a vital player in Brazil’s ever-evolving financial landscape. As the company evolves and navigates its transformation under new leadership, it remains committed to serving its customers and generating value for its shareholders.

Looking Ahead

As the digital banking landscape becomes increasingly competitive, the strategic advancements made by PagBank will be essential. By nurturing its relationship with customers and continuing to diversify its service offerings, PagBank is well-positioned to foster sustainable growth in the years to come.