PagBank Q2 2026 Net Income Reaches US$113 Million
PagBank Q2 2026 recurring net income (profit after all costs) reaches R$576 million (US$113 million), up 1.9% YoY. Credit portfolio grows 31% but late
Brazil · Business
Key Facts
- —Recurring net income R$576 million (US$113 million), up 1.9% YoY
- —GAAP net income R$549 million, up 2.3% YoY
- —Revenue ex-ITC R$3.380 billion (US$665 million), up 1.7% YoY
- —Credit portfolio R$5.1 billion, up 30.7% YoY
- —Delinquency (90+ days) 3.4%, up from 3.1% in March 2026
- —Deposits R$43 billion, up 15%
- —ROAE 15.6%, down from 15.8% in March 2026
Profit was nearly flat compared to the previous quarter. More loans also meant more late payments.
PagBank Q2 2026 recurring net income (the profit left after all costs) reached R$576 million (US$113 million). Up 1.9% year-on-year, the company said on August 11, 2026.
That result was almost the same as the previous quarter, with a tiny 0.1% rise.
PagBank Q2 2026: A Look at the Main Numbers
PagBank Q2 2026 results showed recurring net income of R$576 million, according to the company’s filing summary and Reuters-syndicated reporting. The company’s net income under standard accounting rules was R$549 million, up 2.3% year-on-year.
Total revenue and income reached R$5.080 billion, the filing summary stated. Revenue without income from its cash reserve (the money it keeps aside for safety) was R$3.380 billion, up 1.7% year-on-year.
The company filed its earnings release with the U.S. Securities and Exchange Commission (SEC, the American regulator). It pointed out that profit was stable compared to the previous quarter.
Gross profit for the quarter was R$1.999 billion, up 2.8% from a year ago, the company said. This number also leaves out income from the cash reserve, giving a clearer picture of its main business.
Credit Growth and Rising Late Payments
The credit portfolio (the total value of loans it has made) grew to R$5.1 billion. Up 30.7% from the same time last year.
At the same time, late payments increased to 3.4% for loans overdue by more than 90 days. This delinquency rate (the share of loans not being paid back on time) rose from 3.1% in March 2026.
It was 2.5% a year earlier, according to Estadão and Reuters-syndicated reporting. The company did not give more details on loan quality in the filing summary.
It said the growth came from more credit card and personal loan business. Its strategy is to offer more credit to its existing merchants.
The company currently has more than 30 million active clients.
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Deposits and How Profitable the Company Is
Deposits (money customers keep with the bank) totaled R$43 billion, up 15% year-on-year, as reported by Estadão. Return on average equity (ROAE, a measure of how much profit a company squeezes from shareholders’ money) was 15.6%.
Compared with 15.8% in March 2026. The ROAE dropped just a little.
But it is still higher than the 15.3% from a year ago, according to Valor and Estadão. Diluted earnings per share (profit divided by each share, a common measure) were R$2.06 on a non-GAAP basis, up 9.7%.
Deposit growth was helped by its cash management products. These include the PagBank account and time deposits (savings that pay interest after a set period).
The company gets most of its funding from retail deposits (money from everyday people, not big institutions). These are usually more stable and cheaper to keep.
Market Response and Share Price Move
PagBank’s parent company, PagSeguro Digital Ltd. (NYSE: PAGS), reported the results in a U.S. SEC filing.
Its shares fell on August 11, 2026, after the earnings release, according to MarketBeat. The stock fell even though the company beat earnings-per-share estimates by US$0.01, as MarketBeat noted.
Market reports said investors were looking closely at the fast credit growth and higher late payments. Before this report, the shares had gained about 12% in the previous year.
That was because investors were optimistic about its credit expansion plan. Bloomberg Intelligence analysts said PagBank is growing its credit faster than its peers.
But they also warned this comes with more risk. The company’s loan-to-deposit ratio (a safety measure of how much it lends versus what it holds) is still low, at around 12%.
What Comes Next for PagBank?
The company did not give a formal forecast for the rest of 2026 in its results. Analysts had expected earnings to grow, according to a Zacks Investment Research report.
PagBank’s Q2 2026 performance follows a Q1 2026 period of profit growth. In that quarter, its credit portfolio had surged 36% year-on-year, as The Globe and Mail reported.
The company usually provides yearly updates during its earnings calls. Its management team, led by CEO Alexandre Magnani, has said it focuses on sustainable growth, not fast, risky expansion.
Investors will listen closely to the Q2 2026 earnings call for hints about its future credit plans. The call took place later on August 11, 2026, according to the company’s investor relations page.
PagBank’s Financial Strength and Capital
Gross profit for the quarter was R$1.999 billion, up 2.8% from last year. The filing did not provide full details on its capital adequacy ratios (a measure of a bank’s financial health) or liquidity.
Total revenue and income reached R$5.080 billion. Market estimates had expected about US$1.00 billion in revenue, according to TradingView.
A separate regulatory filing shows PagBank’s common equity tier 1 ratio (a key measure of a bank’s financial strength). This is much higher than the minimum required by the Central Bank of Brazil.
Its liquidity coverage ratio (a measure of its ability to cover short-term cash needs) is strong. This means it can easily meet its short-term obligations, according to a report by S&P Global Ratings.
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Frequently Asked Questions
What was PagBank’s net income in Q2 2026?
PagBank reported recurring net income (the profit left after all costs) of R$576 million (US$113 million) for Q2 2026, up 1.9% year-on-year. Net income under standard accounting rules was R$549 million, up 2.3%.
How did PagBank’s credit portfolio perform in Q2 2026?
The credit portfolio (the total value of loans it has made) grew 30.7% year-on-year to R$5.1 billion. The delinquency rate (the share of loans not being paid back on time) above 90 days rose to 3.4% from 3.1% in March 2026.
What was PagBank’s return on average equity in Q2 2026?
ROAE (a measure of how much profit a company squeezes from shareholders’ money) was 15.6%. Down from 15.8% in the prior quarter but up from 15.3% a year earlier.
How did the market react to PagBank’s Q2 2026 earnings?
PagSeguro Digital’s shares fell on August 11, 2026, despite beating earnings-per-share estimates by US$0.01. Investor attention was focused on the fast credit growth and rising late payments.
Sources: Valor, Estadão, InfoMoney (Reuters syndication), Money Times, StockTitan (SEC filing), MarketBeat
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