PagBank Accelerates Credit Growth and Reports Strong Profitability With 34 Million Customers in 4Q25

Expanded Loan Portfolio and Customer Base Reach New Highs

PagBank continues its upward trajectory, closing the fourth quarter of 2025 with 34 million customers and making significant gains in both its credit and deposit figures. The digital bank’s expanded loan portfolio rose to R$ 49.7 billion, while its deposit base hit R$ 40.7 billion—a testament to its growing trust among clients and strong market positioning.

Credit Expansion Drives Profitability, Highlighting a Strategic Shift

One of the most striking figures in PagBank's report is the 170.10% year-over-year surge in working capital loans. This focus on supporting entrepreneurs shows the bank’s commitment to higher-engagement, high-margin lending, expanding its addressable market. With a recurring Return on Average Equity (ROAE) jumping to 18.4%, PagBank’s profitability trajectory is favorable—especially considering recent macro challenges such as elevated interest rates and subdued economic activity.

Operational Discipline Yields Solid Metrics Despite a Tough Environment

The management’s disciplined focus on cost control and operational efficiency is evident in rising net revenue, which advanced 12.4% year-over-year to R$ 3.5 billion. Deposits rose 12.60% over the year to R$ 40.7 billion, a positive signal in Brazil’s highly competitive digital banking landscape. Both top-line growth and the strong AAA credit ratings from major agencies suggest that PagBank is building confidence among both clients and institutional investors.

Payments and SME Momentum Show Sequential Acceleration

PagBank's total payment volume (TPV) made a nearly 10% sequential jump, surpassing historical trends for the period—a clear indicator that the company's integrated strategies in banking, payment, and credit are taking effect. With a focus on serving SMEs and offering an end-to-end portfolio of digital solutions, PagBank is reinforcing its relevance in daily financial life for Brazilian businesses.

Forward Strategy Points Toward Sustained Growth

As the macro environment remains challenging, PagBank’s management is confident about the future, emphasizing ongoing discipline and value-driven growth over pure pricing. The ambition to hit R$ 25 billion in credit portfolio by 2029 is underpinned by the current pace of expansion and the success of their high-engagement solutions.

Key Takeaway: Strong Execution Positions PagBank for Continued Growth

With clear improvements in profitability and asset quality, PagBank is demonstrating the resilience and scalability of its digital-first model. Investors and market watchers may want to keep an eye on how easing financial costs and further credit expansion play out in the coming quarters. While the competitive environment remains intense, PagBank’s strong execution and customer-centric approach are positioning it as a major player in Brazil’s evolving financial landscape.

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