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Nu Holdings Ltd. Reports Second Quarter 2024 Financial Results

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Nu Holdings (NYSE: NU) reported strong Q2 2024 financial results, showcasing significant growth and profitability. Net income doubled year-over-year to $487 million, with a 28% ROE. The customer base expanded to 104.5 million, a 25% YoY increase. Revenue surged 65% YoY to $2.8 billion, while gross profit rose 88% YoY to $1.4 billion. The company's efficiency ratio improved to 32%, positioning Nu as one of the most efficient financial services companies globally.

Nu's international expansion continues, with strong growth in Mexico and Colombia. The company's multi-product platform saw significant adoption across credit cards, NuAccounts, and personal loans. Despite substantial investments in future products and geographic expansion, Nu maintains a strong capital position with $2.4 billion in excess cash at the holding level.

Nu Holdings (NYSE: NU) ha riportato risultati finanziari solidi per il secondo trimestre del 2024, evidenziando una crescita e una redditività significative. Il reddito netto è raddoppiato rispetto all'anno precedente, raggiungendo i 487 milioni di dollari, con un ROE del 28%. Il numero di clienti è aumentato a 104,5 milioni, con un incremento del 25% su base annua. I ricavi sono aumentati del 65% su base annua, arrivando a 2,8 miliardi di dollari, mentre il profitto lordo è salito dell'88% rispetto all'anno precedente, raggiungendo 1,4 miliardi di dollari. Il rapporto di efficienza della società è migliorato fino al 32%, posizionando Nu come una delle aziende di servizi finanziari più efficienti a livello globale.

Continua l'espansione internazionale di Nu, con una forte crescita in Messico e Colombia. La piattaforma multi-prodotto dell'azienda ha visto una significativa adozione tra carte di credito, NuAccounts e prestiti personali. Nonostante gli ingenti investimenti in prodotti futuri e nell'espansione geografica, Nu mantiene una posizione di capitale solida con 2,4 miliardi di dollari in eccesso di liquidità a livello di holding.

Nu Holdings (NYSE: NU) reportó resultados financieros sólidos para el segundo trimestre de 2024, destacando un crecimiento y rentabilidad significativos. El ingreso neto se duplicó año con año a 487 millones de dólares, con un ROE del 28%. La base de clientes se expandió a 104.5 millones, un aumento del 25% interanual. Los ingresos aumentaron un 65% interanual a 2.8 mil millones de dólares, mientras que la ganancia bruta se incrementó un 88% interanual a 1.4 mil millones de dólares. La relación de eficiencia de la empresa mejoró al 32%, posicionando a Nu como una de las compañías de servicios financieros más eficientes a nivel mundial.

La expansión internacional de Nu continúa, con un sólido crecimiento en México y Colombia. La plataforma multiproducto de la empresa mostró una adopción significativa en tarjetas de crédito, NuAccounts y préstamos personales. A pesar de las inversiones sustanciales en productos futuros y expansión geográfica, Nu mantiene una fuerte posición de capital con 2.4 mil millones de dólares en efectivo excedente a nivel de holding.

Nu Holdings (NYSE: NU)는 2024년 2분기 강력한 재무 실적을 보고하며 상당한 성장과 수익성을 보여주었습니다. 순이익은 작년 대비 두 배 증가하여 4억 8천 7백만 달러에 이르렀고, ROE는 28%를 기록했습니다. 고객 수는 1억 4천 5백만으로 연간 25% 증가했습니다. 수익은 연간 65% 증가하여 28억 달러에 도달했고, 총 이익은 연간 88% 증가하여 14억 달러에 이르렀습니다. 회사의 효율성 비율은 32%로 개선되어, Nu를 글로벌 금융 서비스 회사 중 가장 효율적인 기업 중 하나로 위치시킵니다.

Nu의 국제적 확장은 멕시코와 콜롬비아에서 강한 성장을 보이며 계속되고 있습니다. 회사의 다중 제품 플랫폼은 신용 카드, NuAccounts 및 개인 대출 전반에서 상당한 채택을 보였습니다. 향후 제품과 지리적 확장에 대한 상당한 투자에도 불구하고, Nu는 보유 수준에서 24억 달러의 잉여 현금을 보유함으로써 강력한 자본 위치를 유지하고 있습니다.

Nu Holdings (NYSE: NU) a annoncé des résultats financiers solides pour le deuxième trimestre de 2024, mettant en avant une croissance et une rentabilité significatives. Le revenu net a doublé par rapport à l'année précédente pour atteindre 487 millions de dollars, avec un rendement des capitaux propres de 28%. La base de clients s'est élargie à 104,5 millions, soit une augmentation de 25% par rapport à l'année précédente. Les revenus ont augmenté de 65% par rapport à l'année précédente pour atteindre 2,8 milliards de dollars, tandis que le bénéfice brut a crû de 88% par rapport à l'année précédente pour atteindre 1,4 milliard de dollars. Le ratio d'efficacité de l'entreprise s'est amélioré à 32%, plaçant Nu parmi les sociétés de services financiers les plus efficaces au monde.

L'expansion internationale de Nu se poursuit, avec une forte croissance au Mexique et en Colombie. La plateforme multiproduit de l'entreprise a connu une adoption significative dans les cartes de crédit, les NuAccounts et les prêts personnels. Malgré des investissements substantiels dans de futurs produits et une expansion géographique, Nu maintient une solide position en capital avec 2,4 milliards de dollars en liquidités excédentaires au niveau de la holding.

Nu Holdings (NYSE: NU) hat für das zweite Quartal 2024 starke Finanzzahlen vorgelegt und dabei signifikantes Wachstum sowie Rentabilität gezeigt. Der Nettogewinn hat sich im Jahresvergleich auf 487 Millionen Dollar verdoppelt, mit einer Eigenkapitalrendite von 28%. Die Kundenzahl erhöhte sich auf 104,5 Millionen, was einem Anstieg von 25% im Jahresvergleich entspricht. Der Umsatz stieg im Jahresvergleich um 65% auf 2,8 Milliarden Dollar, während der Bruttogewinn um 88% im Jahresvergleich auf 1,4 Milliarden Dollar anstieg. Das Effizienzverhältnis des Unternehmens verbesserte sich auf 32%, was Nu als eines der effizientesten Finanzdienstleistungsunternehmen weltweit positioniert.

Die internationale Expansion von Nu setzt sich fort, mit starkem Wachstum in Mexiko und Kolumbien. Die Multi-Produktplattform des Unternehmens verzeichnete eine signifikante Akzeptanz in Bezug auf Kreditkarten, NuAccounts und persönliche Kredite. Trotz erheblicher Investitionen in zukünftige Produkte und geografische Expansion hält Nu eine starke Kapitalposition mit 2,4 Milliarden Dollar in überschüssigem Bargeld auf Holding-Ebene.

Positive
  • Net income doubled YoY to $487 million with 28% ROE
  • Customer base grew 25% YoY to 104.5 million
  • Revenue increased 65% YoY to $2.8 billion
  • Gross profit rose 88% YoY to $1.4 billion
  • Efficiency ratio improved to 32%
  • Strong international expansion in Mexico and Colombia
  • $2.4 billion excess cash at holding level
Negative
  • 90+ NPL ratio increased to 7% in Brazil

Insights

Nu Holdings' Q2 2024 results demonstrate impressive growth and profitability. Net income doubled YoY to $487 million, with ROE reaching 28%. The customer base expanded to 104.5 million, a 25% YoY increase. Key metrics show strong performance:

  • Revenue up 65% YoY (FX neutral) to $2.8 billion
  • Gross profit increased 88% YoY to $1.4 billion
  • Net interest income surged 77% YoY to $1.7 billion

The efficiency ratio improved to 32%, positioning Nu as one of the most efficient financial services companies globally. With a robust capital position and expanding margins, Nu appears well-positioned for continued growth in Latin America's digital banking sector.

Nu's rapid customer acquisition and engagement rates are reshaping the Latin American banking landscape. The company added more customers in the past 12 months than the five largest Brazilian incumbents combined. Key engagement metrics are promising:

  • Activity rate increased to a record 83%
  • Monthly Average Revenue per Active Customer (ARPAC) reached $11.2
  • Mature customer cohorts achieving $25 ARPAC

Nu's multi-product strategy is gaining traction, with significant adoption across credit cards, accounts, loans, insurance and investments. The successful expansion into Mexico and Colombia, with substantial deposit growth, indicates strong potential for Nu to become the dominant consumer technology platform in Latin America.

Nu's risk management appears solid, with improving asset quality metrics in Brazil:

  • 15-90 day NPL ratio decreased to 4.5%
  • 90+ day NPL ratio at 7%, in line with expectations

The company maintains a comfortable capital position, with $2.4 billion in excess cash at the holding level. The loan-to-deposit ratio of 39% suggests a conservative lending approach. However, the rapid growth in the lending portfolio (92% YoY FX neutral) and credit card receivables (39% YoY FX neutral) warrants close monitoring to ensure risk levels remain manageable as the company scales across diverse markets.

SÃO PAULO, Brazil--(BUSINESS WIRE)-- Nu Holdings Ltd. (NYSE: NU), (“Nu” or the “Company”), one of the world's largest digital banking platforms, released today its Second Quarter financial results. Financial results are expressed in U.S. dollars and are presented in accordance with International Financial Reporting Standards (IFRS). The full earnings release has been made available on the Company’s Investor Relations website at www.investors.nu, as well as the details of the Earnings Conference Call Nu will hold today at 6:00 pm Eastern time/7:00 pm Brasília time.

“Our second quarter 2024 results reaffirm the strength of our business model, efficiency in our execution, and resilience of our credit underwriting. Net income has more than doubled year over year, reaching US$ 487 million this quarter, with expanding risk adjusted margins and one of the highest ROEs in the industry at 28%. Our customer base grew to 105 million customers. The recent launch of checking accounts in Mexico and Colombia has ushered deposits of US$ 3.3 billion and US$ 220 million in those countries, respectively, and fuels our growth expectations in those operations. We believe that this business formula, propelled by exceptional talent, technology investments, and brand love will pave the way for Nu to become the largest consumer technology platform in Latin America", said David Vélez, founder and CEO of Nubank.

Q2’24 Results Snapshot

Below are the Q2’24 performance highlights of Nu Holdings Ltd.:

Operating Highlights:

  • Customer growth: Nu added 5.2 million customers in Q2’24, reaching a total of 104.5 million customers globally by June 30, 2024, marking a 25% increase YoY. This reinforces Nu's position as one of the largest and fastest-growing digital financial services platforms worldwide. Nu has added more customers in the past 12 months than the five largest Brazilian incumbents combined, according to Central Bank data.
  • Engagement and activity rates: Monthly Average Revenue per Active Customer (ARPAC) reached $11.2 in Q2'24. On a FX neutral basis (FXN)1 it expanded 6% sequentially, with more mature cohorts already at $25. Nu continues to develop principality among its customer base and activity rate2 increased to a new record high of 83% - the eleventh consecutive increase in this metric, demonstrating our proficiency in consistently offering a compelling value proposition to our customers.
  • Low-cost operating platform: Monthly Average Cost to Serve Per Active Customer remained stable and below the dollar level at $0.9, demonstrating the strong operating leverage of the business model. The company’s efficiency ratio improved 10 basis points QoQ to 32% during Q2'24, and over 340 basis points YoY, positioning Nu as one of the most efficient financial services companies globally.
  • Asset Quality: in Brazil, consumer credit portfolio’s 15-90 NPL ratio decreased to 4.5%, slightly more than historical seasonality. The 90+ NPL ratio increased to 7%, in line with expectations. The 70 basis point increase in 90+NPL in this quarter is simply a reflection of the 90 basis point, mostly seasonal increase in 15-90 NPL we saw last quarter.

Financial Highlights:

  • Net & Adjusted Income: At a Holding level, Nu continued to drive increased profitability and posted a Net Income for Q2’24 of $487 million and an annualized ROE of 28%, compared to a $225 million profit in Q2’23. Adjusted Net Income3 for Q2’24 increased to $563 million with an annualized adjusted ROE of 33%, compared to an Adjusted Net Income of $263 million in Q2’23. Nu is achieving these strong levels of profitability and efficiency, despite maintaining a considerable excess capital of $2.4 billion at the holding level and continuing to make substantial investments in future products and geographic expansion, as the company sees tremendous potential to continue building the largest consumer platform in Latin America.
  • Revenue: Nu’s revenues were up 65% YoY on a FX neutral basis (FXN) to a new record high of $2.8 billion. This showcases the company’s unique ability to consistently expand its active customer base while accelerating revenue growth and profitability.
  • Gross Profit: Nu’s gross profit reached another quarterly record high of $1.4 billion, up 88% YoY FXN while gross profit margin reached 48% from 42% in Q2’23.
  • Capital: Nu strengthened its position as one of the best-capitalized players in the region. Its Capital Adequacy Ratios (CARs) have very comfortable margins above regulatory minimums in the countries in which it operates, even without considering the $2.4 billion in excess cash held by Nu Holdings.
  • Liquidity: On June 30, 2024, Nu had an interest-earning portfolio (IEP) of $9.8 billion which rose 81% YoY FXN. The ramp up of the lending portfolio, which expanded 92% YoY FXN to $4.6 billion, and credit card receivables, which increased 39% YoY FXN to $14.3 billion were the main drivers of growth. Total deposits increased 64% YoY FXN to $25 billion, while a sustained low cost to deposit underscores Nu’s progress in leveraging the local-currency retail deposit franchises in Brazil and Mexico. Nu’s loan-to-deposit ratio was 39%, versus 40% in the previous quarter.
  • Net interest income: NII surged by 77% YoY FXN reaching another record high of $1.7 billion, driven by our expanding credit card and lending portfolios. The net interest margin (NIM) reached 19.8%, an increase of 30 basis points from last quarter and 150 basis points from a year ago.

Business highlights:

  • Performance and Growth in Brazil: In Brazil, the customer base reached 95.5 million by June 30, 2024, with an average of 1.2 million new customers monthly. Nu is the fourth-largest financial institution by number of customers in the country, according to Brazilian Central Bank data. In Brazil, Nu has become the institution with the largest number of active customers in credit operations, totalling 55.9 million customers, according to Central Bank data.
  • International Expansion: In Mexico, Nu's growth remained strong, with a net-adds of 1.2 million new customers in the quarter, reaching a total of 7.8 million customers at quarter-end. The expansion validates the strategy of increasing deposit yields in the country, boosting the momentum and solidifying Nu's leadership in the digital banking sector.
    In Colombia, Nu achieved a milestone this quarter, surpassing the 1 million customers, serving almost 1.3 million customers at quarter-end.
  • Multi-Product Platform: Nu’s core products, mainly credit cards, NuAccounts, and unsecured personal loans reaching approximately 42 million, 78 million, and 9 million active customers, respectively. The insurance product has nearly 2 million active policies, while investments are utilized by over 18 million active customers.

Footnotes

1 FX neutral measures were calculated to present what such measures in preceding periods/years would have been had exchange rates remained stable from these preceding periods/years until the date of the Company’s more recent financial information.
2 Activity rate is defined as monthly active customers divided by the total number of customers as of a specific date.
3 Adjusted Net Income is a non-IFRS measure calculated using Net Income adjusted for expenses related to Nu's share-based compensation as well as the hedge accounting and tax effects related to these items, among others. For more information, please see “Non-IFRS Financial Measures and Reconciliations – Adjusted Net Income Reconciliation".

CONFERENCE EARNINGS CALL DETAILS
Nu will hold a Conference Earnings Call today at 6:00pm Eastern time/7:00pm Brasília time with simultaneous translation in Portuguese and English.

To pre-register for this call, please click here.
A replay of the webcast will be made available after the call on the Investor Relations page: click here.

Note on forward-looking statements and non-IFRS financial measures

This release speaks at the date hereof and the Company is under no obligation to update or keep current the information contained in this presentation. Any information expressed herein is subject to change without notice. Any market or other third-party data included in this presentation has been obtained by the Company from third-party sources. While the Company has compiled and extracted the market data, it can provide no assurances of the accuracy and completeness of such information and takes no responsibility for such data.

This release contains forward-looking statements. All statements other than statements of historical fact contained in this presentation may be forward-looking statements and include, but are not limited to, statements regarding the Company’s intent, belief or current expectations. These forward-looking statements are subject to risks and uncertainties, and may include, among others, financial forecasts and estimates based on assumptions or statements regarding plans, objectives and expectations. Although the Company believes that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the prospectus dated December 8, 2021 filed with the Securities and Exchange Commission pursuant to Rule 424(b) under the Securities Act of 1933, as amended, and in the Annual Report on Form 20-F for the year ended December 31, 2023, which was filed with the Securities and Exchange Commission on April 19, 2024. The Company, its advisers and each of their respective directors, officers and employees disclaim any obligation to update the Company’s view of such risks and uncertainties or to publicly announce the result of any revision to the forward-looking statements made herein, except where it would be required to do so under applicable law. The forward-looking statements can be identified, in certain cases, through the use of words such as “believe,” “may,” “might,” “can,” “could,” “is designed to,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “forecast”, “plan”, “predict”, “potential”, “aspiration,” “should,” “purpose,” “belief,” and similar, or variations of, or the negative of such words and expressions.

The financial information in this document includes forecasts, projections and other predictive statements that represent the Company’s assumptions and expectations in light of currently available information. These forecasts, projections and other predictive statements are based on the Company’s expectations and are subject to variables and uncertainties. The Company’s actual performance results may differ. Consequently, no guarantee is presented or implied as to the accuracy of specific forecasts, projections or predictive statements contained herein, and undue reliance should not be placed on the forward-looking statements in this presentation, which are inherently uncertain.

In addition to IFRS financials, this presentation includes certain summarized, non-audited or non-IFRS financial information. These summarized, non-audited or non-IFRS financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with IFRS. References in this presentation to “R$” refer to the Brazilian Real, the official currency of Brazil.

About Nu

Nu is the world’s largest digital banking platform outside of Asia, serving over 105 million customers across Brazil, Mexico, and Colombia. The company has been leading an industry transformation by leveraging data and proprietary technology to develop innovative products and services. Guided by its mission to fight complexity and empower people, Nu caters to customers’ complete financial journey, promoting financial access and advancement with responsible lending and transparency. The company is powered by an efficient and scalable business model that combines low cost to serve with growing returns. Nu’s impact has been recognized in multiple awards, including Time 100 Companies, Fast Company’s Most Innovative Companies, and Forbes World’s Best Banks. For more information, please visit https://international.nubank.com.br/about/.

Investors Relations

Jörg Friedemann

investors@nubank.com.br



Media Relations

Leila Suwwan

press@nubank.com.br

Source: Nu Holdings Ltd.

FAQ

What was Nu Holdings' (NU) net income for Q2 2024?

Nu Holdings (NU) reported a net income of $487 million for Q2 2024, more than doubling year-over-year from $225 million in Q2 2023.

How many customers did Nu Holdings (NU) have as of June 30, 2024?

Nu Holdings (NU) reached a total of 104.5 million customers globally by June 30, 2024, adding 5.2 million customers in Q2 2024 alone.

What was Nu Holdings' (NU) revenue for Q2 2024?

Nu Holdings (NU) reported record-high revenue of $2.8 billion for Q2 2024, representing a 65% year-over-year increase on a FX neutral basis.

How did Nu Holdings' (NU) gross profit perform in Q2 2024?

Nu Holdings' (NU) gross profit reached a quarterly record high of $1.4 billion in Q2 2024, up 88% year-over-year on a FX neutral basis.

Nu Holdings Ltd.

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