In Payments, TPV growth in 4Q23 reached
+21% y/y, more than 2x industry growth;
Digital bank reached 31 million clients,
totaling R$28 billion in
Deposits;
The results consolidate the business
expansion and diversification beyond longtail and POS
devices
SÃO
PAULO, Feb, 29, 2024
/PRNewswire/ -- PagBank (NYSE: PAGS), a
complete digital bank in financial services and payments solution
and one of the largest digital banks in the country, announces its
results for the fourth quarter of 2023 (4Q23). Among the main
highlights, the Company posted a record net income (Non-GAAP) of
R$520 million in 4Q23 (+27% y/y and
+18% q/q), concluding 2023 with almost R$1.8
billion for the year (+11% y/y), the highest in the
Company's history. Net income, in GAAP basis, reached R$488 million in the fourth quarter (+20% y/y and
+19% q/q), totaling R$1.65 billion
for the year (+10% y/y).
Alexandre
Magnani, CEO of PagBank, points out the reasons for this
performance in net income, stating the dynamics of revenue
recovery, with strong growth in acquiring (TPV), more than
offsetting the effects of the interchange cap established in
April 2023; a reduction in losses and
chargeback, with relevant developments on the security
and fraud prevention front; a decrease in financial
expenses in the annual comparison, due to the lower average cost
of funding on the back of larger share of deposits
in the funding strategy and the easing interest rate cycle; and
also the fact that operating expenses remained controlled, without
harming growth opportunities.
In Payments, the company marked a record
TPV of R$113.7 billion in the last
quarter of last year (+21% y/y and +14% q/q) and R$394 billion throughout 2023 (+11% y/y), with
growth in all segments, including micro-merchants, SMEs and large
accounts.
In digital banking, PAGS reached
R$66 billion
in cash-in (all transfers sent from different
financial institutions into PagBank account) in 4Q23 (+48% y/y and
+38% q/q) and R$217 billion in
the year 2023 (+59 % y/y). This proves the clients' growing
engagement to PagBank's financial services, by using the features
such as Pix, card issuance, credit origination and bill payments.
Consequently, PAGS reached a record R$27.6
billion in deposits (+33% y/y and +28% q/q).
"The outstanding numbers show that PagBank
is entering a new growth stage. Our value proposition goes beyond
serving micro-entrepreneurs and offering POS devices. We are an
increasingly solid and active tech company, reaching almost 15% of
the total Brazilian population. Our wide and diverse range of
products and services serve the most diverse audiences, as our
purpose is precisely to make the financial lives of people and
businesses easier in a simple, secure, digital and affordable way,"
the CEO of PagBank states.
The executive also points out that 2023 was
marked by important achievements from PagBank, such as the
attribution of the brAAA rating by S&P Global Ratings, the
completion of the integration of Moip (online payments company
acquired in August 2020), the
strengthening of the Internet Banking interface, facial
authentication for link online payments and the launches
of Tap on Phone in the PagVendas app and
Boleto/Cobrança Pix. In SMBs accounts, initiatives such as
automatic settlement from different acquirers into PagBank account,
multiple users account and Payroll enabling business owners to
transfer paycheck up to 2,000 employees are also highlighted by
Alex as levers for the digital bank's performance last
year.
Currently, PagBank has the largest
acceptance network for payment solutions, with 6.5 million active
merchants and entrepreneurs. The Company maintains its focus on
balancing profitable and sustainable growth rather than the overall
number of merchants, looking for expanding client's share of
wallet, and offers, as competitive advantages, zero fees for new
merchants, 24/7 instant payment on PagBank accounts, express
payment device delivery, and the best investment options on the
market, with CDBs that yield up to 130% of CDI.
The credit portfolio reached R$2.5 billion, stable in relation to the previous
quarter, with a focus on low-risk and high-commitment products,
such as credit cards, payroll loans and advance FGTS birthday
withdrawals. For Alex, the improvement in the credit cycle in the
coming months will open up opportunities for PagBank to accelerate
credit underwriting and expand the digital bank's product offering.
"Our numbers demonstrate that growth and higher client engagement
can be stimulated by offering credit through low-risk products.
This allows us to be cautious in more critical moments, like what
the sector experienced throughout 2023. However, we understand that
underwriting and expanding credit products is a natural path and
it's within our plans."
Financial highlights
PagBank's balance sheet also highlights net
revenue – which grew again year-on-year – of R$4.3 billion (+10% y/y and +8% q/q) in 4Q23,
accumulating the amount of R$15.9
billion by the end of 2023 (+4% y/y). For Artur Schunck, CFO of PagBank, this performance
was driven by the strong growth in Payments, led by MSMEs, in
addition to the acceleration of volumes processed in large
accounts, with emphasis on online payments and commercial
automations, in addition to higher margin revenues in financial
services .
"As far as operational expenses are
concerned, we spent practically the same amount as in 2022, but we
managed to do much more. We prioritize growth in organic
investments, focusing on simplification and integration, product
launches and improvements, and disciplined capital allocation,"
Schunck explains.
According to Alex, in order to balance
growth and profitability throughout 2024, PagBank's strategy will
continue to be based on five pillars: profitable growth in
payments, with a sustainable increase in market share in key
segments for the Company; promoting digital banking engagement to
diversify revenue sources and increase revenue per client;
development of the ecosystem that integrates payments, financial
services and value-added services; 360º security, aiming to reduce
losses, increase client security and promote operational
efficiency; and disciplined cost management and capital allocation
to improve profit and cash flow generation.
In 2023, PagBank also published its
third Sustainability Report,
including the main highlights and actions the Company implemented
in the previous year. The Company, which today is a reference among
digital banks and fintechs in Latin
America, put into practice an ambitious plan that is now
reflected in the ratings that measure the maturity stage of
companies in ESG, such as Sustainalytics and CDP.
"Currently, our stage of maturity on several ESG fronts is similar
or higher than that of institutions with decades of work
experience. We are focused on creating value for all stakeholders
and our society", highlights Eric
Oliveira, Executive Director of IR, ESG and Market
Intelligence at PagBank.
See PagBank's financial results in 4Q23 by
clicking here.
About PagBank
PagBank promotes innovative solutions in
financial services and payment methods, automating the purchase,
sale and transfer process to boost the business of any person and
company, in a simple and secure way. A company belonging to the UOL
Group – leader of Brazilian internet –PagBank acts as
an issuer, an acquirer, and offers digital accounts, in addition to
providing complete solutions for online and in-person payments (via
mobile devices and POS devices).
PagBank also has a
wide variety of payment methods, such as credit and prepaid cards,
as well as bank transfers, bank slip payments, account balance,
among others. PagBank (PagSeguro Internet Instituição de PayPal
S.A) is regulated by the Central Bank of Brazil as a payment institution that issues
electronic currency, an issuer of postpaid instruments and an
acquirer, having partnerships with the main card brands. Its parent
company, PagSeguro Digital, is publicly traded in the USA (NYSE: PAGS) and is regulated by the SEC
(Securities and Exchange Commission). The distribution of
investment funds is carried out by BancoSeguro S.A., authorized by
the Central Bank of Brazil, the
Securities and Exchange Commission and affiliated with
ANBIMA.
Visit the PagBank Press
Room
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SOURCE PagBank
