C6 Bank in Brazil Posts First Annual Profit in 2024, Eyes Secured Credit Growth

C6 Bank, a Brazilian digital bank backed by JPMorgan Chase, achieved its first annual profit in 2024, reporting R$2.3 billion ($383 million) in net earnings.

This milestone marked a sharp recovery from its R$670 million ($112 million) loss in 2023. It underscores the bank’s rapid growth and strategic focus on secured lending.

The announcement, made on Monday, highlights C6’s evolution into a key player in Brazil’s competitive digital banking market. The bank’s credit portfolio expanded by 23% in 2024, reaching R$60 billion ($10 billion), with payroll and vehicle loans driving growth.

These secured loans now account for 48% and 23% of the portfolio, respectively. Improved risk management reduced non-performing loans from 5.3% at the end of 2022 to 3.1% by mid-2024.

Customer deposits surged by 54% year-over-year to R$57 billion ($9.5 billion), reflecting growing trust among its nearly 30 million customers. JPMorgan Chase, which increased its stake in C6 to 46% in 2023, has played a pivotal role in the bank’s success.

Since the partnership began in 2021, C6 has grown its customer base from 8 million. By late 2023, it had expanded to over 25 million customers.

Marcelo Kalim, C6’s CEO and co-founder, emphasized that the bank’s focus on secured credit products positions it for sustainable growth. This strategy helps C6 navigate broader market uncertainties.

C6 Bank’s Strong Performance and Strategic Outlook

C6 Bank’s profitability also reflects its operational efficiency. The bank achieved a return on equity (ROE) of 56% in Q2 2024, one of the highest among digital banks globally. It also maintained a competitive cost-to-income ratio of 55%.

Service fee revenue grew significantly, reaching R$847 million ($141 million) in Q2 2024, up from R$572 million ($95 million) the previous year. Looking ahead, C6 plans to expand its secured lending portfolio further and diversify its offerings.

Inspired by JPMorgan’s premium services, the bank aims to introduce travel concierge services. It plans to explore new revenue streams, such as insurance products. It is also considering selective physical branch openings to attract high-net-worth clients.

C6 Bank’s rise mirrors broader trends in Brazil’s financial sector. Digital adoption has surged due to regulatory reforms and increasing financial inclusion.

With strong backing from JPMorgan and a customer-centric strategy, C6 is well-positioned to lead Brazil’s digital banking revolution. It is poised to solidify its market presence and expand its influence.