#Brazil #São Paulo #revenue growth #Financial Services #PagBank

PagBank Reports Impressive Financial Performance in 2Q25

PagBank (NYSE: PAGS), a prominent digital banking institution, has unveiled its financial results for the second quarter of 2025, showcasing remarkable performance in challenging economic conditions. The digital bank, committed to enhancing financial experiences for individuals and businesses, reported net revenues soaring to R$5.1 billion, reflecting an 18% year-on-year increase when adjusted for foreign exchange fluctuations. This success is primarily attributed to a booming banking sector, which saw an astounding 61% growth in revenue during the same period.

The second quarter was marked by recurring net income of R$565 million, a modest increase of 4% compared to the previous year, while reported net income climbed to R$537 million, translating to a 7% year-over-year growth. Such figures indicate a solid return on equity (ROE) of 14.5%. Additionally, PagBank's gross profit amounted to R$1.9 billion, signifying a 7% increase from the prior year and remaining within management's forecast range.

Artur Schunck, Chief Financial Officer of PagBank, expressed optimism about the results, stating, "The 2Q25 figures highlight our trajectory of profitable growth and our commitment to providing value to shareholders, even amidst a fluctuating economic landscape. We anticipate an 18% return for our shareholders, considering the dividends and share buyback programs that have been initiated."

One of PagBank's competitive advantages lies in its financial strength. Total funding reached R$43 billion, representing a 9% increase year-over-year, while deposits rose to R$37.2 billion, reflecting a 9% growth when comparing to last year and a 10% increase quarter-on-quarter. Furthermore, the expanded loan portfolio witnessed an 11% growth, reaching R$48 billion, with a notable 34% year-over-year increase in low-risk, high-engagement products amounting to R$3.9 billion.

Looking ahead, PagBank remains focused on reinforcing its business platform and aims to continue its innovative trajectory. Alexandre Magnani, CEO of the bank, stated, "We are on a mission to build the bank of the future, providing our clients with an integrated financial management platform that simplifies their financial lives, utilizing artificial intelligence and Open Finance to deliver a personalized experience."

In terms of shareholder value, PagBank has committed R$1.9 billion to dividends and share repurchase initiatives over the past year, with further dividend announcements expected later this year, contingent on market conditions and the bank's financial performance.

Serving 33 million clients, PagBank asserts its significant influence in the payments sector and sees promising potential in expanding its transactional banking services—particularly through platforms like Pix, deposits, and credit. "As we continue developing our robust offerings, we are excited about the untapped opportunities in the market," emphasized Magnani.

To dive deeper into PagBank’s financial performance for Q2 2025, visitors can access the financial statements directly from the bank's resources.

About PagBank

PagBank is dedicated to innovating financial service solutions and payment methods, streamlining transaction processes to boost business activities for individuals and companies alike, ensuring a secure and easy experience. Operating under the umbrella of the UOL Group—which is recognized as Brazil’s internet leader—PagBank functions as both an issuer and acquirer, providing digital accounts and comprehensive solutions for online and in-person transactions. Regulated by the Central Bank of Brazil, PagBank also collaborates with leading card brands to offer a range of payment options, including credit and prepaid cards, bank transfers, and more. As a publicly traded entity in the United States (NYSE PAGS), the firm is also supervised by the Securities and Exchange Commission (SEC).