PagBank Reports Strong Third Quarter 2024 Financial Results

PagBank Reports Strong Third Quarter 2024 Financial Results

SÃO PAULO, Nov. 14, 2024 — PagBank (NYSE: PAGS), a leading digital bank in Brazil, has reported robust financial performance for the third quarter of 2024. The results underscore the company's solid position in the financial services and payment solutions market.

Key Financial Metrics

PagBank's exceptional growth in net income and revenue was driven by a dynamic increase in its acquiring business alongside significant expansion in its banking segment. The earnings per share rose impressively, reflecting strong value delivery to shareholders.

Revenue Performance by Segment

PagBank's acquiring business showed a remarkable 37% growth in total payment volume, with micro, small, and medium enterprises driving 65% of TPV growth. The digital banking sector experienced significant expansion with deposits increasing by 59%, echoing the strength of PagBank's platform in attracting customer investments.

Key Developments and Operational Highlights

• Total Payment Volume (TPV) achieved R$136.3 billion, a 37% year-on-year increase.
• Customer base expanded to 32.1 million, emphasizing PagBank's influence as a leading financial institution.
• Introduction of new products, such as the Multiple Card and 3% cashback feature on first credit card bills.
• Special Black Friday promotions, including discounts and exclusive financial product offers to attract new customers.

Management Comments

Alexandre Magnani, CEO of PagBank, highlighted the company's strategic focus on customer-centric growth, noting the substantial performance in the payments business and banking revenue. Magnani emphasized the balance between growth and a strong balance sheet, which has driven shareholder value.

CFO Artur Schunck credited the company's balanced growth and profitability, highlighting the acceleration in revenues and cost discipline as key results drivers. He expressed confidence in sustaining the year’s expected outcomes, reinforcing the strong foundation PagBank has established.

Forward Guidance

The earnings release did not provide specific forward guidance but emphasized the achievements and expected continued growth driven by strategic investments and operational efficiencies.

Stock Price Movement

Following the earnings announcement, PagBank's stock experienced a decrease of 3.15%.

With these strong results, PagBank demonstrates its capacity to innovate and grow within Brazil's competitive financial landscape, showcasing an ability to expand services effectively to meet rising market demands.

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