Investor Relations

Agibank’s Net Income grows 238% in the first half of 2023

Agibank, a Brazilian neobank, kept its accelerated growth pace and surpassed 2022’s full year results in just the first half of 2023, reaching new record highs. The company disclosed net income of R$ 146.6 million in 1H23, growing +238.5% from 1H22., creating a history of continuous growth in the previous quarters.

The total credit portfolio reached R$ 12.5 billion, increasing 480% from June 2022, and 10.8% from March 2023. According to Thiago Souza Aor, CFO & IRO, Agibank’s strategy is set on credit builder, meaning that the credit offers are refined as customer relationship deepens. “In the first half of 2023, accumulated credit concession reached R$ 6.0 billion, which is an increase of 35.0% from the first half of 2022 and 6.0% from 2023’s first quarter”, the executive highlights.

The substantial growth was accompanied by the improvement in defaulting rates – the second quarter closed with 4.5% non-performing loans above 90 days (improving -40 bps QoQ) – and expansion of the coverage ratio to 120.9% (+500 bps QoQ), preserving the portfolio’s quality and solidity in risk management.

The number of account holders is also growing consistently through the quarters. In June 2023, Agibank surpassed 2.2 million active clients, with an average of 5 products per active account holder.

Additionally, following the customer relationship strategy, the company grew in 41.6% its credit portfolio from account holders. “This direction is fundamental to increase our share as the customers’ main financial institution, as it amplifies the relationship touchpoints, allowing us to promote all our business units”, adds Glauber Correa, Agibank’s CEO.

Besides that, the bank is investing continuously on artificial intelligence to increase client fidelity. “In the last months, AI has helped us to reduce up to 25% our churn rates, by mapping the behavior of customers who are about to leave our ecosystem and customizing the service and sales experiences, better answering to each individual’s needs”, Correa elaborates.

Total Revenues amounted to R$ 2,314.8 million in the first half of 2023, growing 45.8% from the previous year’s, mainly due to Revenues from Credit Operations (+44.8%) following a considerably larger portfolio this quarter, and Bank Treasury Revenues (+75.3%).

For the company’s CEO, the results allow Agibank to head on to the second half of 2023 with consistency. “We will maintain our focus on growth with profitability, discipline in execution and austerity. We continue firm in seeking maximum efficiency, increasing digitalization of credit origination, improving customer experience and satisfaction, and profitability of our business, hedged to a portfolio increasingly complete, with competitive offers to make people’s daily lives better,” the executive finishes.

Democratizing the access to financial services for all Brazilians continues being the central pillar of Agibank’s operation, generating financial and digital inclusion for all, especially for sizeable share of the population that isn’t well tented to by the market. Agibank’s addressable market consists of individuals with monthly income up to R$ 4,000.00, representing over 100 million people in the Country. Since a significant portion of this demographic still needs assistance to fully enjoy digital channels and have easier access to financial services, the company has an omnichannel operation, bringing a fully digital experience accompanied by its almost 900 hubs spread throughout Brazil.