PagBank Achieves Remarkable Growth with R$4.9 Billion Revenue in 1Q25

PagBank Reports Impressive Financial Performance in 1Q25

PagBank, a prominent player in the digital banking sector, has announced remarkable financial results for the first quarter of 2025, demonstrating resilience and growth despite the ongoing macroeconomic challenges. The company's net revenue surged to R$4.9 billion, marking a 13% increase year-over-year. This impressive performance reflects PagBank's strategic focus on providing comprehensive financial services and payment solutions that cater to both individual and business clients.

In addition to robust revenue growth, PagBank's recurring net income experienced a healthy rise, reaching R$554 million, a 6% increase compared to the same quarter the previous year. This growth translates into earnings per share of R$1.72, showcasing a 14% improvement year-over-year. Such figures reaffirm PagBank's commitment to generating value for its shareholders and solidifying its position as a digital banking leader.

One of the key highlights of PagBank's quarter was the expansion of its credit portfolio, which climbed to R$3.7 billion. This figure represents a substantial 34% increase from the first quarter of 2024. PagBank has maintained a conservative lending profile, with approximately 85% of the credit portfolio secured by collateral. Additionally, the company's delinquency rate over 90 days remains stable at 2.3%, in stark contrast to the market average of 4.4%, signaling PagBank's effective risk management strategies.

As part of its ongoing commitment to shareholder value, PagBank is excited to announce its first dividend payment of USD 0.14 per share, which will be distributed on June 6, 2025. This payment is preceded by an ex-date of May 24, 2025. Furthermore, PagBank intends to distribute dividends annually, equating to approximately 10% of its net income, contingent on market conditions and Board approval.

Chief Executive Officer Alexandre Magnani expressed pride in the company's progress, stating, “More than just a payment provider, more than a digital bank, we are partners in our clients' success. Our strategy is centered on offering a complete, simple, secure, and accessible ecosystem focused on payments, banking, and credit.” PagBank currently boasts a customer base exceeding 32 million, a testament to its strong market position.

PagBank’s financial margin also saw a notable increase, reflecting the company's disciplined approach to profitability even in a higher interest rate environment. The gross margin rose from 38% to 39% quarter-over-quarter, and the return on equity (ROE) reached 15% on an annualized basis, up 140 basis points from the previous year.

Total deposits at PagBank reached R$33.9 billion, an increase of 10.9% year-over-year. This growth illustrates PagBank's effectiveness in fundraising and client engagement, underscored by a total payment volume processed of R$129 billion, a 16% year-over-year increase.

Moreover, since August 2024, the company has actively executed its second share buyback program, repurchasing more than R$353 million of its shares, a move that reflects management's confidence in PagBank's growth trajectory and dedication to creating shareholder value.

PagBank's extensive range of services, including digital accounts and diverse payment solutions, supports the financial needs of businesses and individuals alike. The bank is continually innovating to streamline transaction processes and enhance customer experiences in an increasingly competitive landscape.

For more detailed financial insights, stakeholders can access PagBank’s 1Q25 financial statements on their official website.

As PagBank looks forward to future growth and expanded service offerings, it remains firmly committed to its mission of simplifying finance and enhancing banking accessibility for all.