PagBank Reports Impressive Earnings with 4.9 Billion R$ Revenue and 554 Million R$ Net Income in Q1 2025

PagBank's Financial Milestone in Q1 2025

PagBank, a leading digital banking institution, has reported remarkable financial results for the first quarter of 2025. The bank's net revenues reached an impressive 4.9 billion R$, marking a 13% increase from the previous year. This growth reflects the bank's robust performance across its various sectors, including payment solutions, traditional banking services, and credit offerings.

In addition to strong revenue, PagBank also reported a recurring net profit of 554 million R$ for the quarter, which is a 6% increase compared to the same period last year. This translates to earnings per share of 1.72 R$, representing a 14% increase year-over-year. Such performance underscores PagBank's continued capability to drive growth while providing significant value to its shareholders.

One of the key drivers of this growth was the expansion of PagBank's credit portfolio, which surged to 3.7 billion R$, reflecting a 34% increase over the first quarter of the previous year, and a 6% rise from the preceding quarter. Notably, approximately 85% of this portfolio is backed by collateral, indicating PagBank's conservative approach to lending, which has helped maintain a stable non-performing loan (NPL) ratio of 2.3%, well below the market average of 4.4%.

Alexandre Magnani, the CEO of PagBank, stated, "We are more than just a payment provider and a digital bank; we are partners in our customers' success. Our strategy is centered on offering a comprehensive, simple, safe, and accessible ecosystem based on payments, banking, and credit. Our customer base has now surpassed 32 million, with 17.7 million actively engaged in our ecosystem."

Moreover, despite a challenging macroeconomic environment characterized by rising interest rates, PagBank's financial margin experienced a growth from 38% to 39% on a quarter-on-quarter basis. This reflects the company's disciplined focus on profitability and efforts to mitigate the effects of increased Selic rates during the reporting period. Consequently, the bank's return on equity (ROE) rose to 15%, up 140 basis points from the previous year, showcasing its commitment to capital efficiency and value creation.

Furthermore, total deposits soared to 33.9 billion R$, a 10.9% increase compared to last year, maintaining stable funding costs, which exhibit effective resource mobilization even within a high-interest-rate context. In terms of transactional activities, the total payment volume processed by PagBank reached 129 billion R$, indicating a robust growth of 16%, while cash deposits equally saw a remarkable increase, rising by 26% to 83 billion R$.

In alignment with its growth strategy, PagBank has also announced an initial dividend payout of around 250 million R$ (approximately 0.14 USD per share) and plans to issue annual dividends amounting to about 10% of its net income, subject to market conditions and board approval. The company also disclosed the repurchase of shares worth over 353 million R$, which reinforces management's confidence in PagBank's growth trajectory.

Overall, PagBank's Q1 2025 results not only reflect its remarkable operational efficiency but also its strong position in the Brazilian financial landscape. The bank advances its mission of simplifying and securing the financial transactions of individuals and businesses, further solidifying its role as a pioneering player in the digital finance space.

As the company continues to innovate and expand its offerings, investors and customers alike can look forward to a promising future with PagBank leading the charge in digital banking and payment solutions.