JPMorgan increases stake in loss-making Brazilian digital bank C6

JPMorgan Chase & Co. has agreed to increase its stake in Brazil's C6 Bank, bolstering its focus on digital banking in Latin America's largest economy.

JPMorgan announced its initial investment in the online lender two years ago.

Founded in 2019 by former Banco BTG Pactual SA partner Marcelo Calim, C6 Bank aims to serve retail clients in a country where many consumers are underbanked.

C6 reported a real loss of $453 million for 2022, while provisions for bad loans nearly quadrupled.

The bank said it expects to turn a profit by the end of the year, and its customer base has increased to 25 million from 8 million around the time New York-based JPMorgan first invested in the firm.

JPMorgan bought a minority stake in Brazilian fintech bank FitBank Pagamentos Eletronicos SA through its strategic investment division about three years ago.