Net Income

FY 2024

BRL 2.1B to BRL 2.2B "

Confident in delivering or surpassing the top of the range " "

raised

SELIC interest rate

FY 2024

no prior guidance

10.5% "

no prior guidance

Credit Portfolio Growth and Lending Strategy

Previously, earnings calls in Q1–Q4 emphasized moderate growth in the credit portfolio driven mostly by secured lending, a gradual resumption of unsecured lending in pilot phases, and steady improvements in NPL90 ratios ( " " " , " " ).

In Q3 2024, there is strong credit portfolio growth with secured products now representing 85% of the loan book and an impressive drop in the NPL90 ratio to 2.5%, with cautious testing of unsecured lending continuing ( " " ).

Consistent emphasis on secured lending, with a marked improvement in asset quality and further cautious exploration into unsecured lending.

Total Payment Volume (TPV) Growth and Segmentation

Q1, Q2, and Q4 discussions highlighted robust TPV growth across segments with steady gains in both MSMB and LMEC groups and detailed segmentation, despite pressures on net take rates ( " , " , " ).

Q3 2024 reported BRL 136 billion TPV with strong growth in both segments—particularly a 62% growth in the LMEC segment—reflecting a continued focus on profitable, diversified merchants ( " " ).

Recurring strength in TPV growth with an increased emphasis on profitable online and cross-border channels and continued robust multi-segmentation strategy.

Client Acquisition and Market Expansion

Earlier periods discussed expanding the client base by focusing on high-quality, profitable merchants and increasing presence through diversified channels, including online and cross-border payments ( " , " , " ).

Q3 2024 reaffirmed targeting profitable clients and deepening expansion into online and cross-border payments, despite a slight contraction in active merchants overall, emphasizing a quality-over-quantity strategy ( " ).

Persistent focus on quality client acquisition with an escalating push into digital and cross-border markets, signifying strategic refinement over mere volume growth.

Deposit Growth and Strengthening Funding Base

Q1–Q4 consistently underscored robust deposit growth—ranging from 33% to 87% increases-Year-over-Year—with deposits being pivotal for lowering funding costs and supporting credit portfolio expansion ( " , " , " ).

In Q3 2024, deposits surged by 59% compared to Q3 2023, reinforcing the strategy of lower funding costs and backing both prepayments to merchants and credit growth ( " ).

Steady and robust trend in deposit growth, enabling a stronger funding base and aligning with broader strategic objectives in credit and funding economics.

Profitability and Earnings Performance

Across Q1–Q4, the company reported consistent record-setting net income and EPS trends with maintained guidance amid cost pressures and macroeconomic challenges ( " , " , " ).

Q3 2024 marked record quarterly net income on both GAAP and non‐GAAP bases, with impressive growth in EPS and ROAE, underscoring resilience even as macro challenges persist ( " " ).

Most positive sentiment so far, with continued record earnings and maintained guidance bolstering confidence despite challenging macro conditions.

Operating Expenses and Investment Efficiency

Previous calls (Q1, Q2, Q4) noted rising marketing and selling expenses as part of growth investments, with stable operating expense ratios and emphasis on future operating leverage ( " , " , " ).

In Q3 2024, operating expenses decreased to 16.8% of revenue, reflecting effective cost management and a stabilized expense trajectory amid strategic marketing and personnel investments ( " ).

Improvement in efficiency as current period shows a lower ratio and better alignment of expenses with revenue growth, supporting a more optimistic outlook on investment returns.

Regulatory and Compliance Risks

Earlier periods (Q1, Q2, Q4) did not address this topic explicitly.

Q3 2024 introduced a mention of exposure to the gaming industry – noted as marginal and not material – signaling limited regulatory risk in this niche area ( " ).

Newly introduced topic with a neutral sentiment indicating minimal impact, suggesting close monitoring but no significant risk at present.

Capital Allocation and Shareholder Returns

Discussions in Q1–Q4 revealed a cautious, flexible approach with mention of share buybacks, limited dividend commentary, and an emphasis on reinvesting cash for growth alongside opportunistic buyback programs ( " , " , " ).

Q3 2024 highlighted executed buyback programs (first of $250 million and a second of $200 million, partially executed) with continuous reassessment of capital allocation, while maintaining a cautious approach amid volatile conditions ( " " ).

Recurring cautious strategy with an increasing tilt towards opportunistic share buybacks, reflecting the balancing act between reinvestment and returning capital to shareholders.

New Product Initiatives and Service Diversification

In previous reports (Q1, Q2, Q4), the company underscored efforts to resume working capital loans, launch overdraft products, and diversify payment solutions through integrated platforms including online and cross-border channels ( " , " , " ).

Q3 2024 continues the trend by gradually resuming working capital loans and pushing for service expansion in online and cross-border payments, though overdraft products were not re‐emphasized in this period ( " , " ).

Consistent diversification efforts with continued rollouts in lending and digital services, suggesting a cautious yet optimistic testing phase for new revenue engines.