PagBank Reports Impressive Financial Growth in Q1 2025 with R$4.9 Billion Revenue

PagBank Achieves Significant Milestones in Q1 2025



PagBank, a prominent player in the digital banking sector, has reported compelling financial outcomes for the first quarter of 2025. The bank achieved a net revenue of R$4.9 billion, representing a remarkable 13% increase compared to the previous year. This growth underscores PagBank's resilience and strategic execution, despite the challenges reflected in the macroeconomic landscape.

The significant rise in revenue was bolstered by a gross margin of R$1.9 billion, marking a 7% year-over-year growth. This performance reflects the solid interplay among its payment, banking, and credit divisions, showcasing PagBank’s diversified business model focused on enhancing client value and experience.

For the quarter, PagBank reported a recurring net income of R$554 million, which is a 6% increase from last year, resulting in an earnings per share (EPS) of R$1.72—a notable 14% growth year-over-year. These figures reaffirm PagBank's capability to generate value for its shareholders.

In terms of credit portfolio expansion, PagBank saw significant growth, with the total credit volume reaching R$3.7 billion—a 34% increase year-over-year. This growth reflects a prudent approach, as approximately 85% of this portfolio remains collateralized, strengthening its risk management framework. The bank’s delinquency rate over 90 days, at 2.3%, remains stable and well below the market's average surcharge of 4.4% in Q1 2025.

Alexandre Magnani, CEO of PagBank, stated, “We are more than a payment provider; we are partners in our clients' success. Our strategy is focused on delivering a comprehensive, simple, and secure ecosystem grounded on payments, banking, and credit facilitation.” This approach has ensured a robust customer base of over 32 million, with 17.7 million active participants within its ecosystem.

PagBank's financial margin and EPS growth were achieved in the face of increasing interest rates, with the company effectively utilizing various strategies to mitigate the financial impact. The gross margin improved from 38% to 39% quarter-over-quarter, aligning with the bank's rigorous fiscal discipline. The annualized return on equity (ROE) reached 15%, reflecting a 140 basis-point increase—evidence of PagBank’s steadfast commitment to responsible capital management.

Depository growth is also noteworthy; total deposits climbed to R$33.9 billion, a 10.9% year-on-year rise, demonstrating effective fundraising strategies despite a challenging interest rate environment. Total Payment Volume (TPV) processed by PagBank reached R$129 billion, a 16% increase compared to the prior year, while cash-in grew by an impressive 26% year-on-year to R$83 billion, further indicating strong banking client engagement.

In an affirmation of its growth strategy, PagBank's ongoing share buyback program has accrued over R$353 million in repurchased shares, illustrating management's confidence in future value creation for shareholders. Additionally, the announcement of an initial dividend payment of USD 0.14 per share, scheduled for June 6, 2025, alongside a policy to distribute about 10% of annual net income as dividends, signals a commitment to returning value to shareholders based on performance and market conditions.

Overall, PagBank is well-positioned to sustain its growth trajectory and further enhance its competitive edge within the digital banking realm. Its innovative financial solutions and focus on client satisfaction continue to drive its evolution and expansion in the financial services ecosystem.

About PagBank


PagBank is dedicated to delivering innovative financial solutions and payment methods that simplify the processes of buying, selling, and transferring funds for individuals and businesses securely. As a recognized issuer and acquirer, it operates under the UOL Group—Brazil's leading Internet entity—and provides diverse payment solutions including credit and prepaid cards, bank transfers, and more. PagBank is regulated by Brazil's Central Bank and is publicly traded in the United States (NYSE: PAGS).

Topics Financial Services & Investing)

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