PagBank Achieves Record Net Profit of R$2.3 Billion in 2024

PagBank, a prominent player in the Brazilian digital banking sector, has wrapped up the year 2024 with a stunning net profit of R$2.3 billion, marking a significant achievement in its financial journey. The bank's impressive performance, reported on February 21, 2025, highlights a solid year of growth amidst a tough macroeconomic backdrop.

In the fourth quarter of 2024 alone, PagBank recorded net revenues of R$5.1 billion, reflecting an 18% increase compared to the same period in the previous year. The net revenue for the year stood at R$631 million, indicating a robust 21% growth year-over-year (YoY). With a return on average equity (ROAE) peaking at 15.2%, PagBank has demonstrated its financial strength and commitment to sustainable expansion.

Strong Market Position and Growth Strategy

PagBank's CEO, Alexandre Magnani, expressed optimism regarding the bank's recent achievements, stating, "PagBank's performance in the last quarter of 2024 exemplifies our capabilities in navigating fluctuating economic cycles. Despite challenges such as high-interest rates and currency volatility, we maintained our growth trajectory, bringing in new clients and reinforcing our financial service offerings."

As of the end of 2024, PagBank serviced 33.2 million customers, an increase of 2.1 million from the previous year. The total payment volume (TPV) reached R$146 billion in 4Q24, marking a 28% increase from 4Q23, with an impressive total TPV of R$518 billion for the year, a 32% YoY growth.

In a significant move to enhance its service capabilities, PagBank invested R$2.3 billion in technology throughout 2024, which facilitated the launch of various new products and services. The bank also focused on improving customer service quality and expanding its overall operations. A notable achievement was the expansion of its credit portfolio, which soared to R$48 billion, a remarkable 46% increase from the previous year. Furthermore, PagBank's deposit volume climbed to R$36.1 billion, reflecting a 31% YoY increase, underscoring the trust clients have in the institution.

Comprehensive Financial Services Ecosystem

Gustavo Sechin, PagBank's Director of IR, ESG, Market Intelligence, and Economics, highlighted the extensive scope of services offered, stating, "PagBank stands as a comprehensive digital banking solution, providing our clients with access to an array of financial and payment products, including acquiring solutions, credit options, investments, insurance, and more. We are present throughout Brazil with the largest acceptance network for payment solutions, hosting 6.3 million merchant customers. Roughly 18 million active users rely on PagBank as their principal banking platform, demonstrating our comprehensive financial ecosystem's robustness."

With a disciplined approach towards financial management, PagBank achieved a significant operational leverage increase of 74 basis points for the quarter. The implementation of a share buyback program, which amounted to R$784 million in 2024, echoes the bank's commitment to delivering shareholder value.

CFO Artur Schunck reaffirms PagBank's strategic direction, stating, "We remain dedicated to maximizing investor returns through steady growth and prudent financial management. PagBank consistently scales up while enhancing its profitability."

Outlook for 2025 and ESG Commitment

Looking ahead, PagBank maintains a positive outlook for 2025, planning to further broaden its customer base, diversify product offerings, and increase market share, all while prioritizing financial stability and innovation. CEO Magnani emphasizes their dedication, saying, "We are committed to simplifying the financial lives of individuals and businesses, aiming to deliver a cohesive and simplified financial experience for our customers. In 2025, we anticipate an expansion of our market footprint, reinforcing our dedication to our customers, shareholders, and business partners."

In addition to growth goals, PagBank remains focused on advancing its environmental, social, and governance (ESG) initiatives, establishing itself as a benchmark within the finance industry for superior ESG practices.

For those interested in more detailed financial data, PagBank's full balance sheet for 4Q2024 is available through official channels. As a subsidiary of UOL Group, Brazil’s internet leader, PagBank is well-positioned in the digital banking realm, providing secure and innovative solutions for financial transactions and services.