JPMorgan-Backed Brazilian Fintech Expects Losses to Shrink as Borrowers Keep Up

The delinquency rate on loans declined to 4.6% as of midyear
Founder Marcelo Kalim expects profits by the end of 2023

Shoppers wearing protective masks walk on 25 de Marco street in Sao Paulo, Brazil, on Friday, Dec. 18, 2020. This week Brazil reached 7 million coronavirus cases as infections pick up pace just ahead of the holiday season.Photographer: Jonne Roriz/Bloomberg

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By Cristiane Lucchesi

August 31, 2023 at 9:51 PM UTC

Updated on

August 31, 2023 at 11:57 PM UTC

This article is for subscribers only.

C6 Bank, the Brazilian digital bank backed by JPMorgan Chase & Co., saw losses narrow in this year’s first half as fewer borrowers fell behind and costs declined — trends it expects to continue.

The loss through June shrank to 473 million reais ($95.5 million) — down 15% from a year earlier and 74% from last year’s second half, founder and Chief Executive Officer Marcelo Kalim said in an interview Thursday. The percentage of loans to people at least 90 days behind on payments fell to 4.6% in June from 5.2% at the end of last year.