PagBank reports net revenue of R$4.9 billion and recurring net income of R$554 million in 1Q25
The company announces its first dividend payment of approximately R$250 million (USD 0.14 per common share) and plans to distribute dividends annually
SÃO PAULO, May 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 first quarter of 2025 (1Q25) with growing results and improved profitability, despite a challenging macroeconomic environment. During the period, there was an increase in funds raised and expansion of our credit portfolio and deposits.
In the quarter, net revenue totaled R$4.9 billion, a 13% year-over-year increase, and gross margin reached R$1.9 billion, a 7% rise in the same period, reflecting the combined performance of the payment, banking, and credit business units. In the same period, recurring net income amounted to R$554 million, a 6% year-over-year increase, and earnings per share reached R$1.72, a 14% YoY increase – reaffirming our ability to grow and create value for shareholders.
The credit portfolio also expanded, reaching R$3.7 billion, a 34% rise compared to the previous year's first quarter and 6% quarter-over-quarter, maintaining a conservative profile, with approximately 85% of the portfolio backed by collateral. The delinquency rate over 90 days (NPL >90) remained stable at 2.3%, while the market average deteriorated to 4.4% in 1Q25.
"More than just a payment provider, more than a digital bank, we are partners in our clients' success. Our strategy and positioning are based on offering a complete, simple, secure, and accessible ecosystem built on three core pillars — payments, banking, and credit. Unsurprisingly, we now have a solid base of more than 32 million customers, with 17.7 million actively engaged in our ecosystem. We are constantly evolving, driving PagBank's growth and strengthening our leadership within the national financial system," said Alexandre Magnani, CEO of PagBank.
Financial margin and EPS grow despite higher interest rates
The growth in financial margin reflects the company's discipline and focus on profitability, along with active initiatives to offset the impact of the higher interest rates (Selic rate) average during the period.
As a result, the gross margin rose from 38% to 39% QoQ. Earnings per share (EPS) grew by more than 14% year-over-year, both in line with guidance, while return on equity (ROE) reached 15% on an annualized basis—a 140 basis points surge YoY—reflecting the company's capital discipline and commitment to value creation.
Total deposits reached R$ 33.9 billion, a 10.9% YoY rise, with a stable financial cost, demonstrating efficient fundraising even in a high-interest-rate environment. The total payment volume (TPV) processed reached R$129 billion, growing 16% over the previous year, and cash in—an important metric indicating banking client engagement—reached R$83 billion, up 26% YoY.
Since August 2024, the second share buyback program has been consistently executed, totaling over R$ 353 million in repurchased shares during the period, underscoring management's confidence in its growth strategy and its commitment to value generation for shareholders.
Additionally, PagBank announces the cancellation of approximately 24 million shares and informs that it will make its first dividend payment of USD 0.14 per share, to be paid on June 6, 2025 (ex-date on May 24, 2025). The company also plans to distribute, on an annual basis, dividends corresponding to approximately 10% of its net income , subject to market conditions and approval by the Board of Directors.
To access PagBank's 1Q25 financial statements, click here.
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.
PRESS OFFICE CONTACTS
XCOM - Agência de comunicação do PagBank
Isabelle Bonizzi / [email protected] / (11) 96436-5456
Sofia Andreassa/ [email protected]/ (11) 99183-5814
Cláudio Monteiro / [email protected] / (11) 98970-4477
Deborah Slobodticov / [email protected] / (11) 98829-7900
Visit the PagBank Press Office
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