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PagBank records its highest recurring net income in Q124, reaching 522 million BRL – an increase of +33% in the annual comparison
TPV reached 112 billion BRL (+27% YoY), more than twice the industry’s growth and 31 billion BRL in deposits, reinforcing the balance sheet for expansion of receivables anticipation and credit concession.
SÃO PAULO, May 24, 2024 /PRNewswire/ — PagBank (NYSE: PAGS), a complete digital bank in financial services and payments solution and one of the largest digital banks in Brazil, announces its results for the first quarter of 2024 (Q124). The main highlights of the period include a record recurring net profit of 522 million BRL (+33% YoY), while the net accounting profit reached 483 million BRL (+31 YoY%).
Alexandre Magnani, CEO of PagBank, points out the continuity of the good results presented in the last quarters, highlighting the expressive gain of market share in payments (acquirings), balancing growth with profitability, while the Company establishes itself among the largest financial institutions in Brazil in number of clients:
“We are more than 31 million customers and our execution has been consistent. We have consolidated our value proposition for micro, small, and medium-sized enterprises, facilitating the financial life of individuals and businesses. At the same time, we have captured opportunities for client-consumers who do not have a relationship with payment machines through payroll loans, our broad investment platform, and the offer of a complete bank,” says the CEO of PagBank.
In acquirings, the TPV registered was 112 billion BRL (+27% YoY), growing in all segments (MSMBs and Large Companies, E-commerce, and Cross-border businesses1). In digital banking, PagBank reached 66 billion BRL in Cash-In (+48% YoY), a metric that represents the financial volume received from other financial institutions in PagBank accounts, excluding acquisition, especially Pix, business account products, and salary portability.
The substantial volumes of TPV and Cash-in led deposits to record numbers of nearly 31 billion BRL (+64% YoY and +11%QoQ) despite the less favorable seasonality of the period, given that in the first months of the year, customers have more significant disbursements to honor the payment of taxes, such as IPTU and IPVA, and school yearly supplies, among other expenses.“We stand out for offering instant settlement for our customers and carrying out easy operations via Pix, leveraging our TPV and Cash-In volume in PagBank accounts. This, added to the fact that we have a banking license since 2019, means that we have the agility of a fintech and low funding costs like a traditional bank,” says Magnani.
According to Artur Schunck, CFO of PagBank, operational growth does not harm the Company’s capital allocation. On the contrary, the acceleration of revenue growth and discipline in costs and expenses were the main levers of the record result. “The financial margins of the consolidated business were high. Our profit grew more than 30% compared to the Q1 2023, even with additional disbursements linked to the new cycle of growth and diversification of the operation, including geographical expansion and marketing actions in the period”, says Schunck.
The credit portfolio resumed growth and reached 2.7 billion (+8% QoQ) at the end of March, focusing on low-risk products such as consigned credit, the anticipation of the year withdrawal of FGTS (Severance Pay Fund), and credit cards with a limit attached to PagBank’s CDBs (a type of fixed-income investment). Schunck believes that despite short-term macroeconomic uncertainties regarding interest and inflation behavior, the worst is in the past, and he is confident in the credit strategy:
“We crossed the pandemic, the significant high-interest rate period, and one of the worst credit cycles in Brazil and still we have built a robust balance sheet and diversified our credit portfolio in terms of customers, products, and risks. Now, we are opening up opportunities to accelerate the concession and gradually expand the offer of credit products from the next few months,” says the CFO of PagBank.
Other Highlights
Net revenue in the quarter was 4.3 billion BRL (+15% YoY), driven by the strong growth of the acquirings, led by MSMBs (micro, small and medium-sized businesses) and the advance in large accounts, with emphasis on online, cross-border, and automation, as well as the growth of higher margins in financial services. The number of clients reached 31.4 million, reinforcing PagBank’s position as one of the largest digital banks in the country.
In the period, PagBank was recognized as the best bank in Brazil and awarded the RA1000 seal of quality in service, both granted by the Reclame Aqui ranking and as one of the 50 most valuable brands in the country, according to a survey conducted by Kantar BrandZ.
Among the launches of the quarter, main highlights were PagBankPartnerships, a relationship and integration program with software companies and commercial automation; Seguro Empresarial (Business Insurance) offering coverage against fires, electrical damage, theft, burglary, and natural disasters, among others; and Tap to Pay Online, a new and exclusive technology in Latin America that allows the customer to run online transactions by bringing credit or debit card closer to the mobile phone on e-commerce platforms. In addition, PagBank has started to offer 1% cashback on all purchases made with the digital bank credit card and new investment options, such as the CBD, with a 130% CDI rate-variation yield.
“This current moment reminds us very much of our phase between 2018 and 2019, in which we grew in a fast and profitable way, and launched several products. We are very optimistic about the coming months and years of the Company”, says the CEO of PagBank.
Rio Grande do Sul
PagBank has closely monitored the potential impacts of the ongoing climate tragedy in the state of Rio Grande do Sul and the developments in its operations. The Company’s TPV exposure in the state is similar to the state’s share in national GDP – around 5%. The Company says t is early to share some numbers since consumption in the affected regions have decreased due to the temporary closure of the business, while moving people to neighboring cities and states can increase consumption in unaffected areas.
“At this time, our focus is on supporting flood victims, especially our professionals working in the state of Rio Grande do Sul, through donations from PagBank and its professionals, in cash and goods, as well as offering special support to our affected customer,” says Magnani.
Check out the financial results of PagBank in Q124 here.
About PagBank
PagBank promotes innovative solutions in financial services and means of payment, automating the purchase, sale, and transfer process to leverage individuals’ and enterprises’ businesses simply and securely. A company of the UOL Group – leader of the Brazilian Internet – PagBank acts as an issuer and acquirer, offering digital accounts and providing complete solutions for online and face-to-face payments (by mobile devices and POS devices).
PagBank also has a wide variety of means of payment, such as credit and prepaid cards, bank transfers, payments by billet, and balance in the account, among others. PagBank (PagSeguro Internet Payment Institution S.A) is regulated by the Central Bank of Brazil as an electronic money-issuing payment institution, issuer of post-paid instruments and acquirer, having partnerships with the leading credit card issuers. Its parent company, PagSeguro Digital, is listed in the U.S. (NYSE: PAGS) and regulated by the Securities and Exchange Commission (SEC). 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
1 GCECs: The Brazilian acronym for large companies (annual revenues above 12 million BRL), e-commerce and cross-border businesses.
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TradeFlow Capital Management advances collaborations with Obligate through further USDC-denominated eNote™ issuances
SINGAPORE, June 17,2024 /PRNewswire/ — Singapore-based Fintech-powered Fund management firm TradeFlow Capital Management (TradeFlow) is proud to announce the successful issuance of four AA-rated eNotes through Obligate, the leading on-chain capital markets platform.
The eNotes totaling over USD 3m were issued in the previous 6 months with tenors of up to 6 months. These USDC-denominated bonds launched on Polygon leverage Obligate’s eNote framework, ensuring a legally compliant and globally acceptable standard for digital securities.
Through these issuances the USD TradeFlow Fund achieves an optimization and diversification of its financing sources accessing new sources of capital in a flexible manner. Further innovative products tracking the performance of the TradeFlow Funds will be launched soon.
Dr. Tom James, CEO of TradeFlow stated: “As TradeFlow enters the 7th successful year of our USD Fund, this development testifies to the robustness of our business strategies, combining the best of asset-backed commodities trade with the latest advances in FinTech to deliver even greater value and returns to our investors.”
Tobias Wohlfarth, Head of Origination at Obligate, commented: “We are pleased to advance our partnership with TradeFlow Capital Management, the investment advisor to the Trade Flow Funds, to further prove Obligate’s capability to innovatively expand the financing options for funds. We look forward to achieving more milestones with TradeFlow in the near future.”
About TradeFlow Capital Management (TradeFlow)
TradeFlow is the world’s leading and first Fintech-powered commodity trade fund manager, enabling the import/export physical commodity transactions for SME size firms by employing its unique non-credit lending approach to trade finance.
Through its USD Trade Flow fund and EURO Trade Flow Fund, to date, TradeFlow has successfully invested in more than US$3.5 Bn of physical commodity trade through 3500+ transactions across 18+ countries and 35+ commodity types, with more than 1800 SME counterpart entities KYC reviewed. The Trade Flow fund strategy, which is also shariah complaint for murabaha transactions, was conceived over 9 years ago and went live in April 2018.
TradeFlow consists of a diverse team of experts with the focused mission of addressing the increasing trade finance gap (US$2.5 Trillion) faced by global SMEs operating as producers/traders/end-users in the bulk commodity trading space. By performing an enabling role in international trade and globalization, TradeFlow creates stable asset backed returns for its investors, opportunities for businesses and growth for economies.
TradeFlow is a Partner of the International Chamber of Commerce (ICC) to mobilise capital and improve trade finance access for SMEs worldwide through the “‘ICC Trade Now” and “ICC Digital Trade Standards Initiative” platforms.
For more information, please visit: www.tradeflow.capital or email us at [email protected].
About Obligate
Obligate AG is a member of VQF, a Swiss FINMA regulated AML SRO, and a financial intermediary. Standing at the forefront of institutional adoption in on-chain capital markets, Obligate is providing a secure, transparent, and regulatory compliant platform for the issuance, trading, and lifecycle management of debt instruments natively issued on the blockchain. The platform’s unique architecture caters to the complex needs of institutional investors whilst lowering the barriers of entry for issuers by providing efficient access to multilateral financing. Featuring their proprietary eNotes®, ledger-based securities based on the most advanced DLT-legislation, a comprehensive dispute resolution framework, and global enforceability of the debt securities, Obligate demonstrates its commitment to meeting institutional standards.
For more information, please visit : www.obligate.com
Logo – https://mma.prnewswire.com/media/1994878/TradeFlow_Tagline_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/tradeflow-capital-management-advances-collaborations-with-obligate-through-further-usdc-denominated-enote-issuances-302172850.html
Latest News
TradeFlow Capital Management advances collaborations with Obligate through further USDC-denominated eNote™ issuances
SINGAPORE, June 17,2024 /PRNewswire/ — Singapore-based Fintech-powered Fund management firm TradeFlow Capital Management (TradeFlow) is proud to announce the successful issuance of four AA-rated eNotes through Obligate, the leading on-chain capital markets platform.
The eNotes totaling over USD 3m were issued in the previous 6 months with tenors of up to 6 months. These USDC-denominated bonds launched on Polygon leverage Obligate’s eNote framework, ensuring a legally compliant and globally acceptable standard for digital securities.
Through these issuances the USD TradeFlow Fund achieves an optimization and diversification of its financing sources accessing new sources of capital in a flexible manner. Further innovative products tracking the performance of the TradeFlow Funds will be launched soon.
Dr. Tom James, CEO of TradeFlow stated: “As TradeFlow enters the 7th successful year of our USD Fund, this development testifies to the robustness of our business strategies, combining the best of asset-backed commodities trade with the latest advances in FinTech to deliver even greater value and returns to our investors.”
Tobias Wohlfarth, Head of Origination at Obligate, commented: “We are pleased to advance our partnership with TradeFlow Capital Management, the investment advisor to the Trade Flow Funds, to further prove Obligate’s capability to innovatively expand the financing options for funds. We look forward to achieving more milestones with TradeFlow in the near future.”
About TradeFlow Capital Management (TradeFlow)
TradeFlow is the world’s leading and first Fintech-powered commodity trade fund manager, enabling the import/export physical commodity transactions for SME size firms by employing its unique non-credit lending approach to trade finance.
Through its USD Trade Flow fund and EURO Trade Flow Fund, to date, TradeFlow has successfully invested in more than US$3.5 Bn of physical commodity trade through 3500+ transactions across 18+ countries and 35+ commodity types, with more than 1800 SME counterpart entities KYC reviewed. The Trade Flow fund strategy, which is also shariah complaint for murabaha transactions, was conceived over 9 years ago and went live in April 2018.
TradeFlow consists of a diverse team of experts with the focused mission of addressing the increasing trade finance gap (US$2.5 Trillion) faced by global SMEs operating as producers/traders/end-users in the bulk commodity trading space. By performing an enabling role in international trade and globalization, TradeFlow creates stable asset backed returns for its investors, opportunities for businesses and growth for economies.
TradeFlow is a Partner of the International Chamber of Commerce (ICC) to mobilise capital and improve trade finance access for SMEs worldwide through the “‘ICC Trade Now” and “ICC Digital Trade Standards Initiative” platforms.
For more information, please visit: www.tradeflow.capital or email us at [email protected].
About Obligate
Obligate AG is a member of VQF, a Swiss FINMA regulated AML SRO, and a financial intermediary. Standing at the forefront of institutional adoption in on-chain capital markets, Obligate is providing a secure, transparent, and regulatory compliant platform for the issuance, trading, and lifecycle management of debt instruments natively issued on the blockchain. The platform’s unique architecture caters to the complex needs of institutional investors whilst lowering the barriers of entry for issuers by providing efficient access to multilateral financing. Featuring their proprietary eNotes®, ledger-based securities based on the most advanced DLT-legislation, a comprehensive dispute resolution framework, and global enforceability of the debt securities, Obligate demonstrates its commitment to meeting institutional standards.
For more information, please visit : www.obligate.com
Logo – https://mma.prnewswire.com/media/1994878/TradeFlow_Tagline_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/tradeflow-capital-management-advances-collaborations-with-obligate-through-further-usdc-denominated-enote-issuances-302172850.html
HANGZHOU, China, June 16, 2024 /PRNewswire/ — On June 7, 2024, Dr. Ji Xiaofen, Director of the China National Silk Museum, and Ms. Léa Herlet, representative of the Musées Gadagne (Musée d’Histoire de Lyon), France together with other guests co-launched a new exhibition — “Lyon in the 18th century: the Prosperity of the Silk Capital in the Age of Enlightenment” — running from June 7 to September 6, 2024, in Hangzhou, jointly curated by the China National Silk Museum and the Musées Gadagne (Musée d’Histoire de Lyon), France.
The exhibition is divided into two sections: “Lyon city in the 18th century” and “the Great Lyonnais Silk”, presenting 36 sets/pieces of architectural models, silk fabrics, clothing, portraits and ceramics. The exhibition illustrates France’s socio-economic thoughts and fashion advancements. It also highlights cultural exchanges between China and the West, featuring Chinese elements in Western painting and clothing.
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The cultural exchanges between China and France have a long history. As early as the end of the 17th century, Emperor Kangxi of the Qing Dynasty and King Louis XIV of France began exchanging books and gifts. During the Kangxi and Qianlong periods, French missionaries introduced China to France through letters and other means, sparking a “China fever” in French society. The French society, from the courts to the public, was fascinated by Chinese culture, and the influence of Chinese culture in France was incomparable to that of other European countries. It is against this background that the exchange of Chinese and French silk culture has been developing for centuries.
During the opening ceremony, the China National Silk Museum also held the press conference for the 2024 Silk Road Week which is going to be launched on June 19 with the theme of “The Silk Roads: Roads Connect, Civilizations Blossom”. This year the guest country will be France, so as well as the silk exhibition, China National Silk Museum will also bring a silk culture and costume exhibition to France in October. After the opening ceremony, Ms. Zhu Yao, dressed like a lady of the 18th century, gave a guided tour of the exhibition to the attending media.
View original content:https://www.prnewswire.co.uk/news-releases/china-national-silk-museum-opens-lyon-in-the-18th-century-exhibition-in-hangzhou-302173673.html
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