Latest news with #PagBank
Yahoo
2 days ago
- Business
- Yahoo
Why PagSeguro Stock Plummeted Today
Key Points Brazilian online banker PagSeguro is the parent company of PagBank. PagBank just reported 18% revenue growth for Q2, but PagSeguro stock is down today. Currency conversion quirks may be scaring off investors from this low-price Brazilian banking stock. 10 stocks we like better than PagSeguro Digital › Brazilian fintech and digital bank PagSeguro (NYSE: PAGS), dropped 6.7% through 1 p.m. ET Thursday after the company reported second-quarter earnings. The company put out only a brief press release (less than 400 words long), describing results at its PagBank subsidiary, and gave most numbers in local currency, the Brazilian real. Between this international quirk and some name confusion, U.S. investors may be wondering whether PagSeguro's news was good or bad. PagSeguro Q2 earnings According to the press release, PagBank grew its revenue 18% year over year, to 5.1 billion reals ($940 million), not counting foreign exchange rates, which is a great way to start off. Profits increased only 7% year over year, however, rising to 537 million reals ($98.7 million). Deposits grew by 9% in local currency, and the company's loan portfolio grew by 11%. In a tough economy, PagBank purposely grew conservatively, expanding "low-risk, high-engagement products" in particular by 34%. Commenting on the quarter, CEO Artur Schunck admitted the company is operating "in a challenging economic environment," but insisted the company has "grown profitably" in Q2, and is "on the right path" to continue doing so. Is PagSeguro stock a sell? Turning to S&P Global Market Intelligence for reliable data on this difficult to value bank, we see that PagSeguro has a $2.8 billion market capitalization, and earned $405 million in profit over the last 12 months. That makes for a P/E ratio of only about 6.9, which seems cheap to me in light of the deposits and loan growth -- maybe really cheap if the loans are conservatively made. Throw in a modest 1.5% dividend for good measure, and PagSeguro looks like a buy to me -- not a sell. Should you invest $1,000 in PagSeguro Digital right now? Before you buy stock in PagSeguro Digital, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and PagSeguro Digital wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,113,059!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends PagSeguro Digital. The Motley Fool has a disclosure policy. Why PagSeguro Stock Plummeted Today was originally published by The Motley Fool
Malaysian Reserve
4 days ago
- Business
- Malaysian Reserve
PagBank reports net revenue of R$5.1 billion and recurring net income of R$565 million in 2Q25
Banking revenue up 61% y/y, now representing 26% of gross profit SíO PAULO, Aug. 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 second quarter of 2025 (2Q25) with net revenue of R$5.1 billion, recording growth of 18% when excluding the foreign exchange effect. The results were driven by the strong performance of the banking segment, which grew 61% in the period. Recurring net income reached R$565 million (+4% y/y) and reported net income was R$537 million (+7% y/y), with a return on equity (ROE) of 14.5%. Gross profit totaled R$1.9 billion, up 7% year-over-year, within the guidance range. 'The 2Q25 results emphasize that we are on the right path: we have grown profitably and continue to deliver value to our shareholders, even in a challenging economic environment. We estimate an 18% return to our shareholders, considering the dividends and share repurchase programs announced,' said Artur Schunck, CFO of PagBank. Financial strength remains a competitive advantage: total funding reached R$43 billion (+9% y/y), deposits totaled R$37.2 billion (+9% y/y and +10% q/q), and the expanded loan portfolio reached R$48 billion (+11% y/y), with particular note to the total loan portfolio of R$3.9 billion (+34% y/y), concentrated in low-risk, high-engagement products. 'In addition to the quarter's consistent results, we continue to advance our business platform. We are a full digital bank, focused on innovation and excellence, and for the second half of the year, we maintain an optimistic outlook, guided by disciplined business execution and our constant pursuit of new opportunities,' said Alexandre Magnani, CEO of PagBank. Creating value for shareholders remains a priority. Over the past 12 months, PagBank allocated R$1.9 billion to dividends and share repurchases. New dividend payments are expected in the second half of this year, subject to market conditions, the Company's financial performance, and approval by PagBank's Board of Directors. With 33 million clients, PagBank maintains a solid presence in payments and sees significant opportunities on the transactional side of banking — particularly through Pix, deposits, and credit — exploring markets with high growth potential. 'We are building the bank of the future. A platform to simplify the management of our clients' financial lives in a single interface, through artificial intelligence and Open Finance, delivering an increasingly complete and personalized experience,' said Magnani. To access PagBank's 2Q25 financial statements, click here. Forward Looking StatementsThis release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact, including, without limitation, those regarding the Company's expectations, intentions, beliefs, or strategies, are forward-looking statements. Words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,' 'estimates,' 'should,' 'may,' 'will,' and variations of such words and similar expressions are intended to identify such forward-looking statements.. These statements reflect the current views of the company's management and are subject to various risks and uncertainties. They are based on numerous assumptions and factors, including economic and market conditions, industry conditions, and operational factors. Any change in these assumptions or factors may cause actual results to differ materially from the company's current expectations. 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. Photo – View original content:
Associated Press
21-02-2025
- Business
- Associated Press
PagBank closes 2024 with record net profit of R$2.3 billion
Digital Bank records consistent growth across all business lines, with an increased customer base, TPV, and deposits. ROAE reaches 15.2% SíO PAULO, Feb. 21, 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 fourth quarter of 2024 (4Q24) with a net revenue of R$5.1 billion, an increase of 18% compared to the same period of 2023. It also recorded net revenues of R$631 million, reflecting a 21% YoY surge, reaffirming its ability to achieve sustainable growth and its resilience in a challenging macroeconomic environment. Moreover, the return on average equity (ROAE) reached 15.2% in 2024, reinforcing the strength of the results. 'PagBank's performance in the last quarter of 2024 proves our ability to navigate different economic cycles consistently. Even facing challenges such as high interest rates and exchange rate volatility, we maintained our growth strategy, expanded business, acquired new customers, and strengthened our financial services platform,' said PagBank's CEO Alexandre Magnani. In 4Q2024, PagBank reached 33.2 million customers, a rise of 2.1 million customers in the year. Meanwhile, the total payment volume (TPV) reached R$146 billion, representing a 28% increase compared to 4Q23. TPV totaled R$518 billion throughout the year, reflecting 32% YoY growth. In 2024, the company invested R$2.3 billion in technology, launched new products and services, improved the quality of service to our customers, and expanded business. Another highlight was the expanded credit portfolio, which reached R$48 billion, reflecting 46% year-over-year growth. The total deposit volume amounted to R$36,1 billion, an increase of 31% YoY, demonstrating customers' confidence in the institution. 'PagBank is a comprehensive digital bank, offering our customers access to a diverse portfolio of financial and payment products and services, from acquiring solutions to credit products, investments, insurance, and more. We are present all over the country. Currently, we have the largest payment solutions acceptance network, with 6,3 million merchant costumers. The robustness of our financial ecosystem is also evidenced by the nearly 18 million active customers who choose PagBank as their primary banking platform,' said Gustavo Sechin, PagBank's Director of IR, ESG, Market Intelligence, and Economics. Financial discipline and the pursuit of greater operational efficiency resulted in a 74 basis-point expansion in operational leverage for the quarter. The share buyback program, which totaled R$784 million in 2024, reinforces PagBank's commitment to creating value for shareholders. 'We remain focused on maximizing returns for our investors, combining solid growth with disciplined financial management. In this sense, PagBank grows in scale and strengthens its profitability consistently', said Artur Schunck, PagBank's CFO. Outlook for 2025: Monitoring Market Trends and Focusing on Growth PagBank maintains a positive outlook for 2025. The bank expects to continue expanding its customer base, broadening its product offerings, and increasing its market share, always guided by financial solidity and innovation. 'We remain committed to making financial life easier for individuals and businesses, delivering an experience that consolidates and simplifies our customers' financial relationships. In 2025, we expect to expand our market presence, reinforcing our commitment to our customers, shareholders, and business partners', said Magnani. Beyond its business expansion, PagBank keeps advancing its ESG initiatives de ESG, consolidating itself as a reference in the finance industry for its good environmental, social, and governance practices. To access PagBank's full 4Q2024 balance sheet, 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 main card brands. Its parent company, PagSeguro Digital, 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.
