PicPay, the Brazilian digital bank, reported an adjusted profit of R$283 million for the second quarter of 2026, up 135% from the same period in 2025. The company's annualized return on equity reached 20.2% for the quarter, matching the level from a year earlier and above the 15.5% recorded in the first quarter of 2026.
Net revenue at the fintech totaled R$4.1 billion, a 67% increase year on year. Its total customer base grew 10% to surpass 70.4 million, according to the company's earnings report.
Gross profit came to R$1.2 billion between April and June, up 48% from a year earlier and slightly above the company's guidance of R$1.15 billion for the period. Net interest income, a measure of financial margin, reached R$2 billion, a 65% increase on the same basis of comparison.
Credit portfolio doubles
PicPay chief executive Eduardo Chedid said the digital bank continued to advance in operational efficiency while diversifying its revenue streams and expanding its credit business. The company's credit portfolio closed the second quarter at R$31.9 billion, double the level of a year earlier.
In private payroll loans, PicPay reached 3.6 million contracts since the government launched that lending category. Secured or partially secured loans, including public and private payroll loans and advances on the FGTS severance fund, made up 55% of the total credit portfolio. Of the portfolio's growth, 86% came from those secured products and from credit cards issued to clients with more established relationships with the platform.
Delinquency rises for longer-term loans
Despite the credit growth, asset quality showed strain. The non-performing loan ratio for payments more than 90 days overdue climbed to nearly 10%, rising from 4.1% in the second quarter of 2025 to 9.8% at the end of June. That was also higher than the 8.9% recorded in the first quarter of 2026.
Shorter-term delinquency, covering payments between 15 and 90 days overdue, fell to 7.5% at the end of the second quarter from 8.4% at the end of March, though it remained above the 7% recorded a year earlier.
PicPay's new chief financial officer, Andre Cazotto, said the rise in longer-term delinquency reflected the natural maturing of the credit portfolio rather than a decline in the quality of new loans. He said the trend, as part of that maturing process, could push longer-term delinquency higher still.
Outlook and debt renegotiation program
For the third quarter of 2026, PicPay projected continued growth in its credit portfolio, revenue of close to R$4 billion, and a cost of risk between 3.9% and 4.1%. The cost of risk stood at 3.9% in the second quarter despite higher loan volumes and what Cazotto described as a more challenging macroeconomic environment.
PicPay also renegotiated R$520 million in debts through Desenrola, the government's debt renegotiation program. Cazotto said the average discount applied was 50%, with a 5% impact on credit cost, the measure that tracks provisioning expenses against loan defaults, net of recoveries.
Total volume processed through PicPay's card machines, known as TPV, reached R$142.6 billion at the end of June, a 19% annual increase driven by greater use of the Pix instant payment system and the fintech's own credit cards.
