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    AGBK
    Earnings call· Jun 2026(Q2 FY26)

    AGI Q2 FY26 earnings call AGBK

    Aug 5, 2026 Source

    Executive summary

    Agibank Q2 FY26 — Operational Inflection Point Driven by Strong Origination and New Subscription Platform

    Agibank achieved an operational inflection point in Q2 FY26, marked by record client growth and robust credit origination, particularly in private payroll. The launch of Agi+, a new subscription platform, is expected to drive recurring service revenues and deepen customer engagement. While profitability was temporarily impacted by upfront costs associated with rapid growth and a lower pretax base affecting the tax rate, management anticipates sequentially higher income starting in Q3 and a full recovery in Q4, driven by compounding revenues and operational leverage.

    Highlights

    5

    • Gross credit origination exceeded BRL 7 billion in Q2 FY26.

    • Active client base grew to a record 7.6 million, attracting over 600,000 new customers.

    • Private payroll portfolio grew by almost 50% QoQ, with new origination doubling.

    • Fee revenues reached over BRL 135 million, an increase of more than 35% QoQ.

    • Launch of Agi+ subscription platform with over 250,000 active subscriptions in 45 days.

    Concerns

    3

    • Pretax profit of BRL 115 million, down 47% QoQ, missing consensus by 50%.

    • Annualized Net Interest Margin (NIM) was flattish at 11.9% and compressed 50 bps QoQ to 6.8% after provisions.

    • Operating efficiency ratio increased to 48.9% (up 570 bps QoQ), reflecting upfront costs of client acquisition and credit portfolio growth.

    Guidance & targets

    9
    CategoryTargetConfidence
    Overall growth
    even higher growth
    medium materiality
    High
    Financial results momentum
    continue following through
    medium materiality
    High
    Income statement recovery
    sequentially higher income starting in the third quarter and the full recovery in the fourth quarter with even more force
    high materiality
    High
    Agi+ service revenues
    significant lever in the evolution
    low materiality
    High
    Agi+ subscribers
    1 million
    medium materiality
    High
    Cost of credit
    remain around the 6%
    medium materiality
    Medium
    NPLs
    from 3.5% to 4%
    medium materiality
    Medium
    Effective tax rate
    normalize upward, probably at some point, going again in a positive side
    medium materiality
    Medium
    Expenses
    no big movements going forward
    low materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    INSS Payroll Credit
    Agibank surpassed Santander in INSS payroll benefits, reinforcing its competitive position despite industry disruption.
    Market share: 9.6%Market share increase: 160 bps YoYMarket share increase: 60 bps QoQCustomers with principality: 1.5 million
    		————
    Private Payroll Credit
    Strong growth driven by enhancements to credit model and good credit quality evolution. Appetite for production remains strong.
    Credit portfolio: BRL 1.4 billion
    		—184%48%—

    Operational metrics

    18
    Gross credit origination
    BRL 7 billion
    Q2 FY26

    Originated over BRL 7 billion in gross credit this quarter.

    Active clients
    7.6 million36% YoY
    Q2 FY26

    Reached 7.6 million active clients, records for the company.

    New customers acquired
    600,000
    Q2 FY26

    Attracting more than 600,000 new customers.

    New private payroll origination
    doubledvs previous quarter
    Q2 FY26

    New origination doubling versus the previous quarter.

    Secured personal loan origination
    increased by more than 80%QoQ
    Q2 FY26

    Secured personal loan originations also increased by more than 80%.

    Brokerage fees growth
    almost 80%QoQ
    Q2 FY26

    Specifically the brokerage fees line grew of almost 80% in the quarter.

    Agi+ active subscriptions
    250,000
    as of 45 days post-launch

    Over 250,000 subscribers in only 45 days.

    New credit origination including Agi+ cross-sell
    67%
    as of 45 days post-launch

    67% of new credit originations, including an Agi+ cross-sell.

    Sales agents selling Agi+ subscription
    99%
    as of 45 days post-launch

    99% of our sales agents successfully selling at least one subscription.

    Agi+ annual ARPAC
    BRL 600
    annual

    Estimate an annual ARPAC of approximately BRL 600 per customer.

    Agi+ servicing costs
    BRL 118
    annual

    Against servicing costs of around BRL 118.

    Agi+ contribution margin
    80%
    annual

    Resulting in an expected contribution margin of approximately 80%.

    Recurring net income
    BRL 200 million7% QoQ
    Q2 FY26

    Recurring net income in the second quarter reached BRL 200 million, an increase of 7% over the previous quarter.

    Institutional funding share
    62%
    Q2 FY26

    Institutional counterparties now representing 62% of total funding.

    Retail funding share
    38%
    Q2 FY26

    While retail sources came down to a share of 38%.

    Equity growth
    62%YoY
    June 2026

    Equity increased by 62% in June 2026 compared to the prior year period, reflecting the receipt of the net proceeds of the IPO.

    Total assets
    BRL 51.1 billion33% YoY
    Q2 FY26

    Total assets have grown to BRL 51.1 billion, an increase of 33% year-over-year.

    Capital adequacy ratio (consolidated)
    18.7%declined 60 bps QoQ
    Q2 FY26

    Consolidated at the holding level, declined by 60 bps to 18.7% in the second quarter.

    Industry KPIs

    12
    MetricValueDetails
    LoansBRL 37.1 billionBRL
    DepositsBRL 39.9 billionBRL
    Rotce ROE21.6%%
    Cet1 ratio17.6%%
    Fee income linesBRL 135 millionBRL
    Allowance reserves182%%
    Net interest incomeBRL 1.3 billionBRL
    Net interest margin11.9%%
    Net charge offs npls3.3%%
    Total operating expenses—
    Provision for credit lossesBRL 562 millionBRL
    Efficiency ratio operating leverage48.9%%

    Product announcements

    1
    ProductTypeDetails
    Agi+launch

    Risks & headwinds

    6
    Regulatory changes in payroll lending marketpast year

    significant disruption over the past year

    Mitigation: INSS measures since mid-April to strengthen governance, improve operational processes, and restore confidence.

    Challenging macroeconomic environment in Brazilcurrent

    high interest rates, elevated household debt, rising consumer credit delinquency

    Mitigation: Launch of Agi+ designed to expand customer relationships beyond financial services, increasing customer lifetime value and recurring service revenue.

    Upfront costs of rapid growthQ2 FY26

    expected losses provision on every new vintage, customer acquisition cost, cost to serve

    Mitigation: Anticipate sequentially higher income starting in Q3 and full recovery in Q4 as revenues compound.

    NIM compression from high interest ratesQ2 FY26, transitory

    Annualized NIM flattish at 11.9%, after provisions 6.8% (down 50 bps QoQ)

    Mitigation: Expect margins to recover as higher-yielding vintages season and asset mix normalizes.

    Impact of 13th salary amortization on unsecured loan portfolioQ2 FY26 (May)

    reduced portfolio momentarily

    Mitigation: Increased origination of unsecured loans to bring growth again.

    Portability fees reduction due to new regulationsQ2 FY26, temporary

    smaller this quarter

    Mitigation: Provisional measures tied to Desenrola program, temporary impact.

    What to watch in Q3 FY26

    5

    Agi+ Subscriber Growth

    by the end of the year
    Current250,000 active subscriptions
    Target1 million subscribers

    Why it matters

    Indicates successful penetration of the new subscription platform and potential for recurring service revenue diversification.

    it is possible to reach 1 million number of clients by the end of the year in terms of subscribers.

    Q&A highlights

    5

    Questioned the sustainability of 48% QoQ private payroll growth given potential NPL risks and sought clarification on the 47% QoQ decline in pretax profit, asking if it's transitory.

    Management expressed comfort with the private payroll growth pace (BRL 200M-BRL 250M/month origination) due to improved credit modeling and good first payment default rates (below teens). The pretax profit decline was explained as transitory, resulting from upfront costs of rapid operational growth (expected losses, customer acquisition, transactional costs) which precede compounding revenues.

    “we are planting the seeds in the operational side for a much stronger second semester.”

    asked by Jorge Kuri · answered by Marcello Winik Dubeux

    2 min read6 chapters

    Detailed Narrative

    01

    Market Environment & Regulatory Stability

    The market environment has become more supportive due to INSS regulatory changes since mid-April, strengthening governance and restoring confidence in the payroll lending market. Agibank adapted quickly to these structural changes and new regulatory requirements, positioning itself among the first companies to return to strong growth. This improved backdrop is expected to support sustainable development in the payroll lending market.

    02

    Operational Recovery & Growth Momentum

    Agibank's origination engine is performing at full capacity again, originating over BRL 7 billion in gross credit this quarter and attracting more than 600,000 new customers, reaching a record 7.6 million active clients. The private payroll portfolio grew by almost 50% quarter-over-quarter, with new origination doubling, and secured personal loan originations increased by over 80%, demonstrating broad-based growth recovery.

    03

    Agi+ Subscription Platform Launch

    Agi+ was launched as a new low-cost, high-value subscription service available in three tiers (BRL 39.9 to BRL 59.9). The program bundles medical, residential, and dental assistance with mobile phone bonuses and monthly credits for daily expenses (BRL 100 to BRL 150). This initiative aims to expand customer relationships beyond financial services, increase customer lifetime value, and drive recurring predictable service revenue.

    04

    Agi+ Early Success & Unit Economics

    In just 45 days since launch, Agi+ achieved over 250,000 active subscriptions, with 67% of new credit originations including an Agi+ cross-sell. The estimated annual ARPAC is approximately BRL 600 per customer against servicing costs of around BRL 118, resulting in an expected contribution margin of approximately 80%. Management targets reaching 1 million subscribers by the end of the year, expecting a significant contribution to fee revenues from Q3 onwards.

    05

    Profitability & Cost Dynamics

    Q2 profitability was temporarily impacted by upfront costs associated with rapid growth, including expected losses provision on new vintages, customer acquisition costs, and costs to serve new clients. Management views the pretax profit decline as transitory📎, anticipating sequentially higher income starting in Q3 and a full recovery in Q4 as compounding revenues from these new relationships materialize and operational leverage improves. The effective tax rate is also expected to normalize📎 upwards as the pretax base recovers.

    06

    Funding & Capital Adequacy

    Total deposits reached BRL 39.9 billion, an 18% increase year-over-year, with institutional counterparties representing 62% of total funding. Agibank recently received credit rating upgrades from Moody's and Fitch (from AA- to AA). The consolidated capital adequacy ratio at the holding level declined by 60 bps to 18.7% (Tier 1 at 17.6%) in Q2, reflecting IPO proceeds and investment in growth, but remains at comfortable levels to support continued expansion.

    AI-generated summary of the company’s earnings call. Not investment advice.