PagBank Reports Net Revenue of R$4.8 billion in 3Q24

Recurring net income reaches a record R$572 million, up 30% year-on-year;

 Revenue growth driven by robust growth in acquiring (TPV) and acceleration of the banking platform

SÃO PAULO, Nov. 14, 2024 /PRNewswire/ -- PagBank (NYSE: PAGS), a leading digital bank offering a comprehensive suite of financial services and payment solutions, announced strong results for the third quarter of 2024 (3Q24). The Company reported net revenues of R$4.8 billion in 3Q24 (+20% YoY). Recurring net income reached a record high of R$572 million (+30% YoY), with a record reported net income of R$531 million (+29% YoY).

"This quarter's exceptional results demonstrate the power of our customer-centric approach," said Alexandre Magnani, PagBank's CEO. "Our payments business grew more than twice as fast as the overall card market, while banking revenue increased 52%.  We achieved this growth while maintaining a strong balance sheet and delivering increased value to our shareholders with earnings per share growth of 31%."

PagBank's acquiring business achieved a record performance, with total payment volume (TPV) reaching R$136.3 billion, an annual growth of 37% (+10% YoY). This growth was driven by solid performance across all segments, particularly in micro, small and medium enterprises (MSMEs), contributing 65% of TPV.  Key growth verticals include online, cross-border and automation, which now account for a third of total TPV. 

PagBank's digital banking platform showed robust growth, with deposits reaching a record R$34.2 billion, a remarkable 59% increase year-on-year. This increase reflected growth in PagBank's account balances and increased investments in certificates of deposit (CDBs) issued by the bank.

"Our robust revenue growth, coupled with healthy margins, underscores the effectiveness of our strategic investments in process optimization, innovation, and service quality," said Gustavo Sechin, PagBank's Director of IR, ESG, Market Intelligence and Economics. "Reduced funding costs also strengthens our competitive position in the market."

The credit portfolio recorded strong growth in 3Q2024, increasing 30% YoY to R$3.2 billion. Low-risk, high-engagement products, including credit cards, payroll loans, and FGTS anniversary withdrawal advances drove this expansion.

Growth is also driven by the resumption of credit lines, such as working capital loans for SMEs and expanded credit card limits for low-risk borrowers. The company sees these as key drivers of future loan portfolio growth.