Business

Bradesco buys 100% of the Brazilian digital bank Digio for BRL 625 million

Bradesco bought a 49.99% Digio's stake that belonged to Banco do Brasil for BRL 625 million, now holding 100% of the digital bank

Photo: Digio/Courtesy
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Bradesco has bought a 49.99% stake in the digital bank Digio that belonged to Banco do Brasil for BRL 625 million, now holding 100% of the digital bank.

In a statement to the market, Bradesco informed that the transaction is in line with the bank’s strategy of investing in digital companies, diversifying its operations and reaching different audiences, with different business models.

Bradesco is also the owner of the digital bank Next, which was created in 2017 and recently reached 7 million customers; and the digital wallet Bitz, which in September was the second most downloaded digital wallet in Brazil, with 1.1 million downloads.

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Banco do Brasil reported that the impact of the sale of Digio on its results, via equity accounting, is estimated at BRL 175 million and has no material effect on the institution’s capital.

Digio currently offers a bank account, credit card and personal loan and has a 2.7 million customers base, around 2 million credit cards issued and a credit portfolio of BRL 2.5 billion. In the first half of 2021, the institution had a profit of BRL 36.7 million, an increase of 497% compared to the same period last year.

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The diversification of products and services, such as personal credit, cashback and installment payments through the PIX, added to efficiency gains strategies, such as the sale of inactive portfolios, explains this growth, according to Digio.

The Digio purchase and sale transaction is subject to approval by the Brazil‘s Central Bank and the Administrative Council for Economic Defense, in addition to the fulfillment of other necessary formalities.

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