Banco Pan (BPAN4) investor relations material

Executive summary

• Credit portfolio grew 18% year-over-year to R$57.8 billion, driven by robust origination and a strategic halt to portfolio assignments, aiming for higher long-term revenue and a simpler business.

• Adjusted net income for the quarter was R$191 million, down 9% year-over-year and 17% sequentially, impacted by the decision to retain performing loans.

• ROE (goodwill adjusted) was 11.3%, down from 13.8% in 1Q25 and 11.7% in 2Q24.

• Efficiency gains achieved through AI, automation, and cost reductions, with administrative and personnel expenses down by up to 20%.

• Customer base reached 32 million, up 6% year-over-year, with a cross-sell index of 2.3 products per active client.

Financial highlights

• Net interest margin (NIM) after credit cost was 7.4%, down from 8.0% in 1Q25 and 11.5% in 2Q24; NIM in value was R$2.14 billion, down 8% year-over-year.

• Credit cost increased to 6.8% from 6.3% in 1Q25, but down from 8.8% in 2Q24.

• Service and fee revenues totaled R$414 million, slightly down sequentially.

• Total assets stood at R$66.9 billion, up 2% year-over-year.

• Basel ratio at 13.3%, with equity of R$7.68 billion.

Outlook and guidance

• Focus on portfolio growth with robust margins, no reliance on credit assignments, and continued investment in technology and AI.

• Portfolio growth expected to be 20% for the year, emphasizing private payroll loans and resilient segments.

• Major efficiency benefits from technology and synergies expected by 2027.