NEW YORK, April 29 (Reuters) - Brazilian digital bank

C6, which is backed by JPMorgan Chase ( JPM ), posted its first

ever profit in the first quarter, as its revenue increased and

credit losses fell.

C6 posted a 461 million-real ($90 million) profit in the

first quarter, compared to a $57.3 million loss a year earlier.

The Brazilian digital bank, which has around 30 million clients,

had a $131.23 million loss last year.

The bank was able to reduce losses by switching to less

risky loans like payroll or auto lending, C6 founder Marcelo

Kalim told Reuters in an interview on Monday, and also increase

loan volume.

"The percentage of collateralized lending in the portfolio

is now close to 80%", he added.

JPMorgan ( JPM ) has a 46% stake in C6 and has not decided whether

it plans to increase its interest, Chief Operating Officer

Daniel Pinto said last year.

In an interview on Monday, JPMorgan's ( JPM ) Chief Executive

Officer of International Consumer Banking Sanoke Viswanathan

said the bank is already a strong partner with C6 management and

works very closely with founder Kalim.

Other than C6, JPMorgan ( JPM ) only currently operates a digital

bank in the United Kingdom, but is looking at expanding to other

European countries, Viswanathan said. He said Brazil is the

world's third-largest market for retail banking in terms of

revenue.

C6 plans to keep its focus in Brazil on the medium term and

has no plans to expand to other Latin American countries like

some of its competitors.

"There is a large opportunity in Brazil and going to other

countries in the region would be a distraction", Viswanathan

said.

Kalim said the bank is also trying to increase accounts held

by small and medium-sized businesses, a group C6 began to target

over the past six months.

($1 = 5.1131 reais)