Core Insights - Pagbank reported a net revenue of R$5.1 billion for 2Q25, marking an 18% growth excluding foreign exchange effects, driven by a 61% increase in the banking segment [1][2] - The company achieved a recurring net income of R$565 million (+4% y/y) and a reported net income of R$537 million (+7% y/y), with a return on equity (ROE) of 14.5% [1][3] - Total funding reached R$43 billion (+9% y/y), with deposits at R$37.2 billion (+9% y/y and +10% q/q) and an expanded loan portfolio of R$48 billion (+11% y/y) [3][4] Financial Performance - Gross profit totaled R$1.9 billion, reflecting a 7% year-over-year increase, within the guidance range [1] - Over the past 12 months, Pagbank allocated R$1.9 billion to dividends and share repurchases, with new dividend payments expected in the second half of the year [5] Strategic Outlook - The company maintains an optimistic outlook for the second half of the year, focusing on disciplined business execution and exploring new opportunities [4][6] - Pagbank serves 33 million clients and sees significant growth potential in transactional banking, particularly through Pix, deposits, and credit [6][9] Innovation and Technology - Pagbank is focused on building a comprehensive digital banking platform that simplifies financial management for clients through artificial intelligence and Open Finance [6][10]

Core Insights - PagBank announced its first dividend payment of approximately R$250 million (USD 0.14 per common share) and plans to distribute dividends annually, corresponding to about 10% of its net income, subject to market conditions and board approval [1][9] Financial Performance - In 1Q25, PagBank reported net revenue of R$4.9 billion, a 13% year-over-year increase, and gross margin of R$1.9 billion, reflecting a 7% rise [2] - Recurring net income for the quarter was R$554 million, a 6% year-over-year increase, with earnings per share (EPS) reaching R$1.72, a 14% increase year-over-year [2][6] - The credit portfolio expanded to R$3.7 billion, marking a 34% increase compared to the same quarter last year and a 6% increase quarter-over-quarter [3] Customer Engagement and Market Position - PagBank has a customer base of over 32 million, with 17.7 million actively engaged in its ecosystem, emphasizing its strategy of providing a comprehensive financial services platform [4] - Total deposits reached R$33.9 billion, a 10.9% year-over-year rise, indicating effective fundraising in a high-interest-rate environment [7] Operational Efficiency - The company maintained a stable delinquency rate over 90 days at 2.3%, significantly lower than the market average of 4.4% [3] - The total payment volume processed reached R$129 billion, growing 16% year-over-year, with cash in reaching R$83 billion, up 26% year-over-year [7] Shareholder Value Initiatives - PagBank executed a second share buyback program totaling over R$353 million, reflecting management's confidence in its growth strategy [8] - The gross margin increased from 38% to 39% quarter-over-quarter, and return on equity (ROE) reached 15% on an annualized basis, a 140 basis points increase year-over-year [6]