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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DEMONSTRATES TTI’S COMMITMENT TO SUSTAINABLE PRODUCTS AND PRACTICES
FORT LAUDERDALE, Fla., Dec. 23, 2024 /PRNewswire/ — Global cordless power tool, outdoor power equipment and floorcare company Techtronic Industries Co. Ltd. (“TTI” or the “Company”) (stock code: HK:0669, ADR symbol: TTNDY) today announced that it has joined the United Nations Global Compact, reaffirming its dedication to sustainability and social responsibility. With over 25,000 signatories in over 160 countries, the UN Global Compact is the world’s largest voluntary corporate sustainability reporting initiative. By joining, TTI is committing to communicating its progress to stakeholders annually through our ESG Report and UN Global Compact’s website.
TTI’s CEO Steve Richman remarked: “As the industry pioneer in lithium-ion battery-powered, energy efficient power tools and outdoor power equipment, TTI’s commitment to sustainable products and business practices has long been a fundamental part of the way we do business. We began publishing ESG reports in 2015 and we aligned our goals and targets with the UN Sustainable Development Goals in 2018. Every year we make progress in areas including safety solutions, noise reduction, supply chain traceability, decarbonization, and governance. While we have demonstrated our commitment, by joining the UN Global Compact, we have officially aligned our sustainability strategy with the Ten Principles in the areas of human rights, labor, environment, and anti-corruption.”
As part of TTI’s ongoing sustainability efforts, our objective is to implement initiatives that deepen our support of the UN’s Sustainable Development Goals (SDGs) while fostering an inclusive and equitable workplace culture. We are dedicated to advancing our sustainability journey, setting measurable goals, and continuously monitoring our progress.
Learn more about TTI’s efforts by reading our latest ESG publications here. Our 2024 ESG report will be published in March 2025.
About TTI
Techtronic Industries Company Limited (“TTI” or the “Company”), founded in 1985 by German entrepreneur Horst Julius Pudwill, is a world leader in cordless technology. As a pioneer in Power Tools, Outdoor Power Equipment, Floorcare and Cleaning Products, TTI serves professional, industrial, Do It Yourself (DIY), and consumer markets worldwide. With more than 50,000 employees globally, the company’s relentless focus on innovation and strategic growth has established its leading position in the industries it serves.
MILWAUKEE is at the forefront of TTI’s professional tool portfolio. With global research and development headquartered in Brookfield, Wisconsin, the historic MILWAUKEE brand is renowned for driving innovation, safety, and jobsite productivity worldwide. The RYOBI brand, headquartered in Greenville, South Carolina, remains the top choice for DIYers and continues to set the standard in DIY tool innovation. TTI’s diverse brand portfolio also includes trusted brands like AEG, EMPIRE, HOMELITE, and leading floorcare names HOOVER, ORECK, VAX, and DIRT DEVIL (based in Charlotte, North Carolina).
TTI’s international recognition and renowned brand portfolio are supported by a strong ownership structure that underscores the company’s global reach and stability. The Pudwill family remains the company’s largest shareholder, with the remaining ownership held largely by institutional investors at North American and European-owned firms. TTI is publicly traded on the Hong Kong Stock Exchange and is a constituent stock of the Hang Seng Index, operating globally with a strong commitment to environmental, social, and corporate governance standards. For more information, visit www.ttigroup.com.
All trademarks listed other than AEG and RYOBI are owned by the Company. AEG is a registered trademark of AB Electrolux (publ.) and is used under license. RYOBI is a registered trademark of Ryobi Limited and is used under license.
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LONDON, Dec. 23, 2024 /PRNewswire/ — ATFX Connect, the institutional arm of global trading platform ATFX, has been honored with the prestigious “Outstanding FX Liquidity Provider” award at the FinanceFeeds Awards 2024. This recognition underscores ATFX Connect’s industry-leading position in providing deep and reliable foreign exchange (FX) liquidity, a critical factor for institutional clients navigating global financial markets.
The FinanceFeeds Awards celebrate excellence and innovation in the financial sector, highlighting organizations that deliver exceptional services and groundbreaking solutions. ATFX Connect’s achievement in this category reflects its commitment to addressing the sophisticated needs of institutional clients, including hedge funds, asset managers, private banks, and brokers. The award recognizes the platform’s ability to offer tailored liquidity solutions, cutting-edge technology, and efficient trade execution.
Launched in 2019, ATFX Connect was designed to expand ATFX’s presence in the institutional space by offering a multi-access platform for professional investors. Its focus on technology-driven solutions has made it a trusted partner for clients requiring scalable and adaptable liquidity services. Over the years, ATFX Connect has consistently demonstrated excellence in integrating innovative tools with high-quality liquidity provision, helping clients optimize trading strategies in complex market environments.
This accolade solidifies ATFX Connect’s position as a top-tier liquidity provider in the financial industry. With its ongoing efforts to blend technology with personalized services, the platform continues to set new standards in the institutional trading sector.
About ATFX Connect
Back in 2019, ATFX stepped into the Institutional arena with the launch of its Multi-Access platform ATFX Connect. The management’s vision was to expand the broker’s global presence and continue to provide award-winning liquidity and customer service to clients within the Institutional community. With the focus on the professional Investor, the ATFX Connect platform is designed to provide an efficient automated trading venue that delivers tailored liquidity solutions to Hedge Funds, Asset Managers, Brokers, Private Banks, and other financial institutions. (ATFX Connect Website: https://www.atfxconnect.com)
View original content:https://www.prnewswire.co.uk/news-releases/atfx-connect-won-outstanding-fx-liquidity-provider-award-at-financefeeds-2024-302338243.html
- Work is more important to professionals in ‘Global South’ countries than it is to their peers in Western countries.
- They also place more value on working longer hours, with a significant percentage of professionals in China and India willing to work more than 40 hours a week.
- Westerners lack leadership ambition – only 42% of respondents express a desire to lead or establish a business. In the Global South 65% hold this aspiration.
- Global executive search & leadership advisory firm Amrop surveyed 8,000 people in Brazil, China, France, Germany, India, Poland, the UK, and US on the meaning of work.
BRUSSELS, Dec. 23, 2024 /PRNewswire/ — Professionals in Western countries are less ambitious and less interested in work than their ‘Global South’ peers, a new global study by Amrop, a leading global executive search and leadership consulting firm, reveals.
“The drive and ambition in India, Brazil, and China highlight a contrast with the aging societies in the West. As Western nations also face a scarcity of qualified professionals, the ambition of their workforce becomes a decisive factor for growth, economic success, and wealth preservation,” states Annika Farin, Global Chair at Amrop. “Stakeholders should encourage entrepreneurship and foster interest in both professional and personal growth in workers.”
Notably, 92% of Indians and 87% of Brazilians say they enjoy working, while the sentiment is lower in Germany (71%), the US (69%), and the UK (68%), as well as other European countries. Significant variations emerge in how respondents prioritize their careers: 84% in India assert that a successful career is crucial for a good life, with high agreement also in China (71%) and Brazil (70%). Conversely, only 43% in Germany, 40% in France and 37% in Poland share this perspective. In other Western countries such as the US and UK, over half of respondents consider their careers vital for a good life.
India Leads with Impressive Work Ethic and Work-Life Balance
However, divergent work ethics surfaced among Western countries as well, with 70% in the US prioritizing hard work, contrasting starkly with the 35% in France who share the same belief. In this context, India leads at 75%, surpassing Brazil (55%) and China (63%). Chinese professionals also lean more towards career over private life. Work hours reveal distinctions: 46% in China and 42% in India are willing to work over 40 hours, while 29% in the UK, 27% in Germany and only 16% in France, are open to longer working hours. At the same time 73% in India and 59% in China assert that they have a healthy work-life balance, contrasting with 45% in France and 49% in Germany.
“This observation is intriguing. Working fewer hours doesn’t necessarily improve one’s perception of work-life balance. If any connection exists, it appears to be the other way around – professionals willing to work longer hours also seem to have a greater sense of work-life balance. In Europe, especially, we need follow-up studies to find out where these sentiments are coming from, so we know how to reignite the passion for work,” says Farin.
The Lack of Leadership Ambition Extends to Politics
Further results from the survey show that the Global South countries demonstrate a higher aspiration for leadership roles and entrepreneurial ventures. Notably, 76% in India express a desire to run or manage a company, followed by 66% in Brazil and 54% in China. In contrast, the UK (52%), the US (49%), France (37%), and Germany (36%) trail in these aspirations. The global lack of leadership ambition extends to politics, with respondents deeming it the least desirable career across most countries. Only 19% express a motivation to make a positive impact, with 51% prioritizing financial stability and 39% aiming for a specific lifestyle.
Looking at these results, Farin emphasizes a further concern, “In surveying individuals with at least a bachelor’s degree across various countries, our results prompt a crucial question: If most professionals lack ambition for high-level leadership, who will shape the future of economies and societies? Our societies rely on people, their expertise, and motivation. Are we approaching a future where we question not only corporate leadership but also national leadership?”
About the Survey
An online survey was conducted and gathered insights from 8,000 participants, with 1,000 respondents from each of the following countries: Brazil, China, France, Germany, India, Poland, the US, and the UK.
The survey aimed for representativeness across these diverse nations, capturing perspectives from individuals aged 20 to 60 (Gen Z: 20-26, Young Millennials: 27-34, Old Millennials: 35-42, Gen X: 43-60), all possessing at least a bachelor’s degree. Where applicable, reported results represent the top two answer sets (strongly agree/agree).
About Amrop
Amrop is a global leadership consulting firm, offering retained executive search, Board and leadership advisory services. We advise the world’s most dynamic, agile organizations on identifying and positioning Leaders For What’s Next – adept at working across borders, in markets around the world. Established in 1977, Amrop operates in Asia, EMEA and the Americas across 69 offices in 57 countries.
Contact:
The Amrop Partnership SC
Rue Abbé Cuypers 3
1040 Brussels, Belgium
T. +32 471 733 825
E. [email protected]
Brigitte Arhold, COO
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