Fintech PR
PagBank posted all-time high net income of R$1.8 billion in 2023 and starts a new growth cycle
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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- Jaehoon Chang is promoted to Vice Chair of Hyundai Motor Group – Automotive Division
- José Muñoz appointed as CEO of Hyundai Motor Company
- Sung Kim appointed as President of Hyundai Motor Company
- Jun Young Choi is promoted to President of Kia Corporation; and Kyoo Bok Lee is promoted to President of Hyundai Glovis
- Appointment of new CEOs for the Group’s affiliates, including Cheol Seung Baek, Hyundai Transys; Joon Dong Oh, Hyundai KEFICO; Hanwoo Lee, Hyundai E&C; Woo Jeong Joo, Hyundai Engineering
SEOUL, South Korea, Nov. 15, 2024 /PRNewswire/ — Hyundai Motor Group (the Group) today announced key executive appointments for the year 2024 as part of its aims to solidify sustainable growth and better prepare for uncertainties in the global business environment.
This appointment reflects its commitment to a performance-based approach that aligns with outstanding achievements. By consolidating the Group’s core competencies and strategically placing proven leaders with verified track records in key positions, the Group aims to strengthen organizational foundations and accelerate our future transformation.
Jaehoon Chang is promoted to Vice Chair of Hyundai Motor Group – Automotive Division, effective Jan. 1st, 2025, to further strengthen the future competitiveness of the Group’s mobility business.
Looking ahead, Chang will oversee the entire value chain, including product planning, supply chain management manufacturing, and quality assessment. He will optimize business operations across the automotive business while securing internal synergies and building foundational systems for cost and quality innovation to ensure sustainable future competitiveness.
José Muñoz is appointed President and CEO of Hyundai Motor Company to advance global management framework and solidify customer-focused mobility innovation through diverse powertrain offerings, including electric, hybrid, ICE and hydrogen technologies, effective Jan. 1st, 2025.
As a result, Muñoz is appointed as the first non-Korean CEO of Hyundai Motor – identified as the ideal fit to further enhance the company’s performance thanks to his merit-based management philosophy and his commitment to recruiting top global talent. Going forward, he is expected to enhance the company’s global management systems and further elevate its stature as a leading global brand.
Sung Kim is appointed as President of Hyundai Motor Company to manage the business effectively through global economic uncertainties, effective Jan. 1st, 2025.
As part of his appointment to enhance the company’s Think Tank capabilities and better navigate various geopolitical challenges, Kim will oversee global external affairs, analyze and research domestic and international policy trends, and lead communications and PR initiatives. He will focus on increasing synergies across the company’s intelligence functions, strengthening external networking and advancing global protocol capabilities.
Jun Young Choi is promoted to President of Kia Corporation from Head of Domestic Production Division and Chief Safety Officer (CSO). Kyoo Bok Lee, CEO of Hyundai Glovis, is promoted to President.
To strengthen sustainable management and accelerate business transformation, the Group has appointed Cheol Seung Baek as CEO of Hyundai Transys and Joon Dong Oh as CEO of Hyundai KEFICO.
To address challenges in the construction industry and accelerate fundamental improvements, the Group has appointed Hanwoo Lee as CEO of Hyundai Engineering & Construction Co., Ltd. (Hyundai E&C) and Woo Jeong Joo as CEO of Hyundai Engineering Co., Ltd.
* Editor’s note: Appointment of all CEOs referenced are subject to approval by the relevant Group affiliate’s Board of Directors
About Hyundai Motor Group
Hyundai Motor Group is a global enterprise that has created a value chain based on mobility, steel, and construction, as well as logistics, finance, IT, and service. With about 250,000 employees worldwide, the Group’s mobility brands include Hyundai, Kia, and Genesis. Armed with creative thinking, cooperative communication and the will to take on any challenges, we strive to create a better future for all.
More information about Hyundai Motor Group can be found at:
http://www.hyundaimotorgroup.com or Newsroom: Media Hub by Hyundai, Kia Global Media Center (kianewscenter.com), Genesis Media Center.
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Fintech PR
DC to VC – NatWest Cushon and Future Planet Capital Lead the Charge in UK Pension Access to British Innovation
LONDON, Nov. 14, 2024 /PRNewswire/ — Future Planet Capital (FPC) is delighted to be working with NatWest Cushon, with a view to the Cushon Master Trust potentially making an investment in the British Co-Investment Fund (BCF). Any future investment will be subject to commercial terms, due diligence, and Trustee approval. If approved, NatWest Cushon’s participation would signify a major step forward, creating new avenues for British pension funds to access high-growth, private technology companies at scale. In partnership with pension solutions provider Mobius Life, the Fund will channel pension investment into the UK’s most innovative and impactful businesses.
The BCF closely aligns with the Chancellor of the Exchequer’s vision under the Mansion House Reforms, aiming to unlock large-scale investment in key British industries. It emphasises the private sector’s pivotal role in accelerating innovation and economic growth, through supporting the UK’s most promising and high-impact technology businesses.
Historically, British pension funds have had limited access to high-growth investment opportunities within the UK, meaning that overseas investors have been the primary beneficiaries of the nation’s flourishing innovation economy. Indeed, according to the BVCA, 86% of venture capital investment comes from overseas investors. To redress the balance, the BCF will be one of the first funds designed specifically for UK regular savings pension funds. It will offer direct and ongoing access to investments in the strategic technologies of the future.
Examples of companies likely to benefit from the Fund’s investments include Tokamak Energy, a world-record holder in nuclear fusion technology. The government-backed UK Innovation and Science Seed Fund (UKI2S), managed by Future Planet Capital, was the first investor in Tokamak Energy, which has since gone on to raise over $250m. This demonstrates the role of public-private partnership in supporting British technology to drive both economic growth and environmental impact. With the support of mainstream British capital, much more can now be done.
Lord Norman Foster, Chair of Future Planet Capital’s Advisory Board shared, “One of our most important tasks is to anticipate the future and find ways to have a positive impact on the wellbeing of people and the planet. We will need intellectual and financial capital to make that happen. This partnership supports the excellent work that is being done to invest in ground-breaking technologies which offer incredible potential.”
Douglas Hansen-Luke, Executive Chairman and Co-founder of Future Planet Capital, commented, “This collaboration enables British pension savers to support the next generation of British innovation, ensuring that UK capital not only backs but also benefits from the country’s technological and sustainable advancements.”
Julius Pursaill, Pensions expert and advisor to the Cushon Master Trust, said:
“There are a number of good reasons to support the UK Growth agenda. Innovations like the British Co-Investment Fund play an important role in delivering on this objective by driving financial growth whilst also offering access to innovative, impact-focused sectors such as climate technology and artificial intelligence, which can help secure the future for pension savers and broader society.”
About Future Planet Capital
Future Planet Capital is an impact-led venture capital firm built to back growth companies from the world’s top universities and research ecosystems. Founded in Britain with global outlook and reach, Future Planet Capital manages over $460m for public and private investors and has deployed a further $200m of co-investment. With 140 portfolio companies across geographies and stages their mission is to invest in high-growth companies solving global challenges. Mapped against the UN Sustainable Development Goals, these include climate change, education, health, security, and sustainable growth.
For more information visit: https://futureplanetcapital.com/
Other potential investments include:
Tropic Biosciences, founded in 2016 with an initial investment from Future Planet Capital’s UKI2S fund, is reshaping agriculture to improve resilience, efficiency, and sustainability in food production.
Roslin Technologies, spun out of the University of Edinburgh, pioneers the development of pluripotent stem cells for cultivated meat. Their technology addresses the global protein gap by enabling scalable, sustainable meat production without raising animals. By providing genetically stable, self-replicating stem cells, Roslin delivers solutions that reduce production costs to less than $15/kg, positioning itself as a leader in a $2BN cell market by 2035.
Beam (formally known as Rovco) is a growth-stage autonomous robotics company specialising in subsea services for the offshore wind sector. With £19 million in 2023 revenue, the company is rapidly scaling, leveraging cutting-edge AI and computer vision to lead the way in subsea autonomy.
Quotes of Support:
Lord Wei of Shoreditch
”Changing the world and making an impact at scale is really tough and at times can be a lonely place. Future Planet Capital has managed to pull together globally an immense network of investors, founders, and experts to tackle the biggest challenges facing the world today. It is truly a fellowship, and a font of innovation, as well as being a premier fund platform. In these fast changing times it is so reassuring to know that there are innovators working on making the world a safer, cooler, and better place, whose chances of success are being supercharged through the FPC community.”
Jim Wilkinson, Chief Financial Officer, Oxford Science Enterprises
‘Future Planet Capital’s investment strategy offers not only something different, but something that has been lacking in this space. Its approach as well as its scope -involving a remarkable series of partnerships with leading universities and university venture funds – make it a very valuable strategic partner for anyone active in this field.’
Paul Abberley, Investment Governance Board Chair
CEO at Charles Stanley, one of the oldest firms on the London Stock Exchange. Previously the CEO / CIO of Aviva Investors.
‘Successful innovations deliver superior investment returns. When those innovations have a positive impact on broader society, the capital investments which makes them possible benefit all stakeholders. Responsible investing of this type is easy to envisage but harder to implement, because identification of suitable opportunities is so challenging. The Future Planet approach bridges that gap.’
Priya Guha OBE, Member of the Future Planet Capital Investment Governance Board
‘With the Chancellor firing the starting gun on this Government’s pension reforms in yesterday’s Mansion House Speech, I am delighted Future Planet Capital are able to announce they are in discussion with NatWest Cushon for an investment into the British Co-Investment Fund. With their strong reputation for investing in high-growth high-impact companies in the technology sector, Future Planet Capital’s BCF is exactly the right vehicle through which pension funds can back the scaling companies of the future; a win-win for British scale-ups and for British pensioners.’
Matthew Hurn OBE, Deputy Chair of Future Planet Capital’s Advisory Board
‘The UK Growth agenda presents an exciting opportunity and it is vital that we have in place the tools needed to fulfil this potential. I strongly welcome this partnership which signals an important step forward – helping to pave the way to greater financial growth while offering savers access to world leading, impactful innovation.’
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Fintech PR
Universal Consulting Opportunities (UCO), a Stellar MLS Subsidiary, Signs Agreement with NAR India As Advisor to Develop a National MLS
ALTAMONTE SPRINGS, Fla., Nov. 14, 2024 /PRNewswire/ — UCO, a subsidiary of Stellar MLS, a leading multiple listing service (MLS) in the U.S. and the fastest-growing in the world, has entered into a landmark agreement with the National Association of REALTORS® (NAR) India as an advisor to successfully launch an MLS across India. This milestone signifies Stellar MLS’s commitment to enhance the real estate industry on a global scale, expanding UCO’s presence worldwide, and furthers NAR India’s journey to modernize and elevate the Indian real estate industry.
Founded in 2008, NAR India is a nonprofit organization that facilitates the professional development of its members and promotes the highest standards and accreditation in the national real estate industry. It is one of only two countries to hold the NAR designation; Canada is the other. UCO will consult with NAR India’s team to guide in areas including the establishment of an MLS, technology, business strategy, organizational setup, and vendor management.
“We are delighted to align with NAR India, a highly respected organization that shares our values of quality customer service, trust and data integrity to benefit the burgeoning real estate market in India,” said Merri Jo Cowen, CEO of UCO and Stellar MLS. “This is a significant nationwide initiative, and we are proud to share our expertise in establishing the MLS concept across India and be a part of NAR India’s mission to utilize the power of collaboration, transparency and an efficient marketplace.”
Cowen also noted the alignment’s potential benefits to Stellar MLS’s Florida customers, such as through referral opportunities: Florida is home to many Non-Resident Indians (NRIs). Current trends highlight the increasing influence of NRIs in shaping India’s real estate landscape, driven by both emotional connections to their homeland and the pursuit of investment opportunities. On the flipside, India is one of the largest foreign investors in Florida real estate, with $5.4 billion in investments in 2020.
“The partnership between UCO and NAR India marks a pivotal moment for the Indian real estate industry,” said Amit Chopra, President, NAR India. “It brings cutting-edge MLS expertise to India, fostering transparency, trust, and professionalism in our market.”
Tarun Bhatia, Vice Chairman and Chair-Global, NAR India, added: “It also creates exciting opportunities for Indian REALTORS® to showcase properties to a global audience, particularly NRIs, fostering stronger international connections.”
Sumanth Reddy, Chairman, NAR India, concluded: “We are proud to embark on this journey with UCO and look forward to the transformative impact it will have on our members and the industry as a whole, opening up new avenues for growth and collaboration.”
Dr. Mathew Kallumadil, UCO Vice President of Global Markets and Stellar MLS Vice President of Technology and Innovation noted the shared synergies between UCO and NAR India. “India is a complex, diverse market with different languages and cultures within the country, and UCO’s experience in accommodating regional differences and helping build scalable MLS systems will be invaluable in developing a sustainable MLS framework,” Dr. Kallumadil said. “Indian society is very highly digitized, and that is critical to a successful MLS and the ecosystem around it.”
The partnership with NAR India expands UCO’s presence to South Asia, in addition to Europe and the Middle East. UCO recently entered into other strategic global consulting opportunities, including with MLS Leader (Romania) and Arab MLS (Middle East) to optimize real estate practices across their respective regions, and with Igluu, a Prague-based digital technology firm, to expand the MLS concept in Europe. Furthermore, UCO has been actively engaged in global forums to support a forward-thinking approach to transforming the industry and its presence is supported through its partnerships with CEPI, the European Association of Real Estate Professions, and FIABCI, the International Real Estate Federation.
For information about UCO and Stellar MLS, visit stellarmls.com/global.
Media Contact: Caryn McBride
Co-Communications
[email protected]
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