JPMorgan Chase & Co, the renowned financial behemoth, has raised its ownership in C6, a prominent Brazilian digital bank, from an initial 40% to a significant 46%.
This strategic move was announced by both banks in a joint statement released on Tuesday, according to a report from Reuters. The monetary specifics of the deal remain undisclosed.
Pioneering the digital banking frontier in Brazil, C6 has showcased an impressive expansion in its client base, rocketing from 8 million in June 2021 to an astounding 25 million. This growth was coupled with an introduction of various financial products to their portfolio, notably including auto loans.
C6’s credit portfolio has surged from 9.5 billion reais to a whopping 40 billion reais (equivalent to $8.2bn) since JPMorgan’s initial investment.
Interestingly, while the valuation of C6 during JPMorgan’s 2021 investment wasn’t publicly disclosed, Reuters said C6’s valuation stood at 11.3 billion reais or approximately $2.28bn in December 2020. This was six months prior to JPMorgan’s initial stake and came when C6 successfully sourced capital from various private investors.
JPMorgan’s CEO of international consumer banking, Sanoke Viswanathan, commented on the strategic move, “The investment in C6 Bank was an important part of the lender’s global strategy.”
However, amidst this progress, C6 reported a loss of 2.2 billion reais in the previous year, a result of escalating provisions for credit losses.
Keep up with all the latest FinTech news here.
Copyright © 2023 FinTech Global
