JPMorgan Chase & Co. agreed to increase its stake in Brazil’s C6 Bank, stepping up its bet on digital banking in Latin America’s largest economy.
(Bloomberg) — JPMorgan Chase & Co. agreed to increase its stake in Brazil’s C6 Bank, stepping up its bet on digital banking in Latin America’s largest economy.
The Wall Street giant will boost its holding in Sao Paulo-based C6 to 46% from 40%, according to a statement Tuesday. Terms of the transaction, which requires regulatory approval, weren’t disclosed.
JPMorgan revealed its initial investment in the online lender two years ago. C6 Bank, which was founded in 2019 by former Banco BTG Pactual SA partner Marcelo Kalim, seeks to cater to retail clients in a nation with many under-banked consumers.
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C6 posted a 2.2 billion real ($453 million) loss for 2022, compared to a 692 million-real loss a year earlier, while provisions for bad loans almost quadrupled to 1.6 billion reais.
The bank said it expects to turn a profit by year-end and saw its base of clients expand to 25 million, up from 8 million around the time New York-based JPMorgan first invested in the firm. C6 also said its total credit portfolio has jumped to 40 billion reais.
JPMorgan bought a minority stake in Brazilian fintech FitBank Pagamentos Eletronicos SA through its strategic-investment unit about three years ago.
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