PagBank reports net revenue of R$5.1 billion and recurring net income of R$565 million in 2Q25

Rhea-AI Summary

PagBank (NYSE: PAGS) reported strong financial results for Q2 2025, with net revenue reaching R$5.1 billion, showing 18% growth excluding forex effects. The company's banking segment demonstrated remarkable performance with 61% year-over-year growth, now representing 26% of gross profit.

Key financial metrics include recurring net income of R$565 million (+4% y/y), reported net income of R$537 million (+7% y/y), and a return on equity of 14.5%. The company's total funding reached R$43 billion (+9% y/y), with deposits at R$37.2 billion (+9% y/y) and an expanded loan portfolio of R$48 billion (+11% y/y).

PagBank maintains a strong market position with 33 million clients and has allocated R$1.9 billion to dividends and share repurchases over the past 12 months, with additional dividend payments expected in H2 2025.

Positive

• None.

Negative

• Return on equity (ROE) at 14.5% shows moderate profitability
• Operating in challenging economic environment
• Future dividend payments subject to market conditions and board approval

Insights

Financial Analyst

PagBank delivers solid Q2 with 18% revenue growth, 61% banking segment surge, and 14.5% ROE despite economic challenges.

PagBank has delivered a robust quarter with R$5.1 billion in net revenue, growing 18% year-over-year when excluding foreign exchange effects. The standout performer was their banking segment, which surged an impressive 61% and now represents 26% of gross profit—signaling successful diversification beyond their payments heritage.

The company's recurring net income reached R$565 million (+4% y/y) with reported net income at R$537 million (+7% y/y), generating a respectable 14.5% ROE. This performance comes despite what management describes as a "challenging economic environment," demonstrating operational resilience.

The financial foundation looks increasingly solid with total funding reaching R$43 billion (+9% y/y), deposits at R$37.2 billion (+9% y/y, +10% q/q), and an expanded loan portfolio of R$48 billion (+11% y/y). Particularly noteworthy is the R$3.9 billion total loan portfolio growing at 34% y/y, which the company reports is concentrated in low-risk, high-engagement products—a prudent approach to credit expansion.

Shareholder returns remain a priority with R$1.9 billion allocated to dividends and share repurchases over the past year, with management estimating an 18% return to shareholders. The commitment to additional dividend payments in the second half of 2025 further reinforces their shareholder-friendly capital allocation strategy.

With 33 million clients and significant opportunities in transactional banking—especially through Pix, deposits, and credit—PagBank appears well-positioned to continue its transformation from payments processor to full-service digital bank while maintaining disciplined financial management.

Banking revenue up 61% y/y, now representing 26% of gross profit

 

SÃO PAULO, Aug. 14, 2025 /PRNewswire/ -- Pagbank (NYSE: PAGS), a leading digital bank offering a comprehensive suite of financial services and payment solutions – always searching to make the financial lives of people and businesses easier – closed the second quarter of 2025 (2Q25) with net revenue of R$5.1 billion, recording growth of 18% when excluding the foreign exchange effect. The results were driven by the strong performance of the banking segment, which grew 61% in the period. Recurring net income reached R$565 million (+4% y/y) and reported net income was R$537 million (+7% y/y), with a return on equity (ROE) of 14.5%. Gross profit totaled R$1.9 billion, up 7% year-over-year, within the guidance range.

"The 2Q25 results emphasize that we are on the right path: we have grown profitably and continue to deliver value to our shareholders, even in a challenging economic environment. We estimate an 18% return to our shareholders, considering the dividends and share repurchase programs announced," said Artur Schunck, CFO of PagBank.

Financial strength remains a competitive advantage: total funding reached R$43 billion (+9% y/y), deposits totaled R$37.2 billion (+9% y/y and +10% q/q), and the expanded loan portfolio reached R$48 billion (+11% y/y), with particular note to the total loan portfolio of R$3.9 billion (+34% y/y), concentrated in low-risk, high-engagement products.

"In addition to the quarter's consistent results, we continue to advance our business platform. We are a full digital bank, focused on innovation and excellence, and for the second half of the year, we maintain an optimistic outlook, guided by disciplined business execution and our constant pursuit of new opportunities," said Alexandre Magnani, CEO of PagBank.

Creating value for shareholders remains a priority. Over the past 12 months, PagBank allocated R$1.9 billion to dividends and share repurchases. New dividend payments are expected in the second half of this year, subject to market conditions, the Company's financial performance, and approval by PagBank's Board of Directors.

With 33 million clients, PagBank maintains a solid presence in payments and sees significant opportunities on the transactional side of banking — particularly through Pix, deposits, and credit — exploring markets with high growth potential.

"We are building the bank of the future. A platform to simplify the management of our clients' financial lives in a single interface, through artificial intelligence and Open Finance, delivering an increasingly complete and personalized experience," said Magnani.

To access PagBank's 2Q25 financial statements, click here.

Forward Looking Statements
This release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact, including, without limitation, those regarding the Company's expectations, intentions, beliefs, or strategies, are forward-looking statements. Words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," "should," "may," "will," and variations of such words and similar expressions are intended to identify such forward-looking statements.. These statements reflect the current views of the company's management and are subject to various risks and uncertainties. They are based on numerous assumptions and factors, including economic and market conditions, industry conditions, and operational factors. Any change in these assumptions or factors may cause actual results to differ materially from the company's current expectations.

About PagBank
PagBank promotes innovative solutions in financial services and means of payment, automating the process of buying, selling, and transferring to promote the business of any person or company simply and securely. PagBank, a company of the UOL Group - Brazil's Internet leader - acts as an issuer and acquirer, offering digital accounts and complete solutions for online and in-person payments (via mobile and POS devices).

PagBank also offers a wide variety of payment methods, such as credit and prepaid cards, bank transfers, boleto payments, account balances, and more. PagBank (PagSeguro Internet Instituição de Pagamento S.A.) is regulated by the Central Bank of Brazil as a payment institution, issuer of electronic money, issuer of post-paid instruments, and acquirer, with partnerships with the leading card brands. Its parent company, PagSeguro Digital Ltd., is publicly traded in the United States (NYSE: PAGS) and regulated by the SEC (Securities and Exchange Commission). The distribution of mutual funds is carried out by BancoSeguro S.A., authorized by the Central Bank of Brazil, the Securities and Exchange Commission, and affiliated with ANBIMA.

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SOURCE PagBank

FAQ

What were PagBank's (PAGS) Q2 2025 earnings results?

PagBank reported net revenue of R$5.1 billion (18% growth excluding forex), recurring net income of R$565 million (+4% y/y), and reported net income of R$537 million (+7% y/y).

How much did PagBank's banking segment grow in Q2 2025?

PagBank's banking segment demonstrated strong growth of 61% year-over-year, now representing 26% of gross profit.

What is PagBank's current deposit and loan portfolio size?

PagBank's deposits reached R$37.2 billion (+9% y/y), while its expanded loan portfolio stood at R$48 billion (+11% y/y).

How much has PagBank returned to shareholders?

Over the past 12 months, PagBank has allocated R$1.9 billion to dividends and share repurchases, with additional dividend payments expected in H2 2025.

What is PagBank's current customer base?

PagBank serves 33 million clients and maintains a strong presence in payments and banking services.