Q2 2026 Agi Inc Earnings Call Transcript
Key Points
- AGI Inc (AGBK) achieved record growth in Q2 2026, with over 600,000 new customers and 7.6 million active clients, demonstrating strong operational recovery.
- The company's INSS payroll market share increased to 9.6%, up 60 basis points quarter-over-quarter, reflecting competitive strength despite regulatory disruptions.
- AGI Inc (AGBK) launched Agi+, a subscription platform, which gained over 250,000 subscribers in 45 days, with an estimated 80% contribution margin and potential to reach 1 million subscribers by year-end.
- Fee revenues grew over 35% quarter-over-quarter to BRL135 million, with brokerage fees up nearly 80%, indicating robust business activity and diversification.
- Credit quality improved, with NPLs over 90 days declining to 3.3% and coverage ratio at 182%, while the company received credit rating upgrades from Moody's and Fitch to AA.
- Private payroll loan portfolio grew 48% sequentially and 184% year-over-year, with origination doubling, supported by enhanced credit models and strong cohort performance.
- Pretax profit declined 47% quarter-over-quarter to BRL115 million, missing consensus, due to upfront costs from rapid growth and higher provisions.
- Net interest margin (NIM) compressed to 11.9% annualized, with NIM after provisions down 50 basis points, pressured by high interest rates and asset mix shifts.
- The company faces a negative effective tax rate, which may normalize upward, potentially impacting future profitability.
- Cost of risk remains elevated at 5.9%, reflecting higher provisions from the growth in private payroll and unsecured lending, which could pressure margins.
- The unsecured loan portfolio remained flat year-over-year, with a slight sequential decline, due to short-term duration and the 13th salary amortization, delaying NIM recovery.
- Operating efficiency ratio increased to 48.9%, up 570 basis points quarter-over-quarter, due to higher expenses tied to customer acquisition and technology investments, which may not immediately translate to revenue.
Good afternoon, everyone, and welcome to Agi's Second Quarter 2026 Earnings Conference Call. Today's conference call is being recorded. At this time, I would like to turn the call over to Felipe Gaspar Oliveira, Head of Investor Relations. Please go ahead.
Hello, everyone, and welcome to Agibank's Second Quarter 2026 Earnings Conference Call. Thank you for joining us. I'm Felipe Gaspar Oliveira, Head of Investor Relations. Joining me today are Marciano Testa, our Founder and Chairman and CEO; Marcello Dubeux, our Chief Financial Officer; and Matheus Girardi, our Chief Client Officer.
During today's call, we will discuss our second quarter results and business review, followed by a live Q&A session with our management team. Throughout this conference call, we will be presenting certain non-IFRS financial measures. These are important measures for Agibank's management but should not be considered in isolation or as a substitute for IFRS measures
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