Summary
Brazilian digital lender Nubank's quarterly net profit surpassed $1 billion for the first time, beating analyst estimates and sending shares surging about 9.5% in extended trading to ~$15.25. Nu Holdings posted net profit of $1.06 billion for the April-June quarter, a 49% rise year-on-year on a foreign-exchange-neutral basis, above the $967.2 million estimate. Revenue rose 39% to $5.88 billion, beating forecasts, while the risk-adjusted net interest margin improved to 12.4% from 9.9% a year earlier.
Key Facts
- Q2 net profit: $1.06 billion, up 49% YoY (FX-neutral), first time crossing $1B
- Beat Visible Alpha estimate of $967.2 million
- Shares jumped ~9.5% in extended trading to ~$15.25
- Revenue rose 39% to $5.88 billion (beat $5.60B forecast)
- Risk-adjusted net interest margin: 12.4% vs 9.9% a year earlier (CFO says sustainable)
- Serves nearly 139 million clients across Brazil, Mexico, Colombia; preparing to enter the US
- Cost of credit declined to $1.69 billion from $1.79 billion, though still 60% higher YoY
- Credit portfolio: $39.4 billion, up 37% YoY, up 5% QoQ
- Early delinquency: 4.8%, up 0.3pp YoY but down from 5% in Q1
- Benefited from Brazil's Desenrola debt-refinancing program (~5% of cost of credit)
- CFO Rob Livingston assumed role last month
- JPMorgan: "solid beat even for investors who were positive into the print"
Why It Matters
Nubank crossing $1 billion in quarterly profit marks a major milestone for a neobank and a validation of the Latin American digital-banking model at scale. The strong margin expansion and revenue growth show Nubank maturing from growth-focused to profitability-focused, even as it eyes expansion into the US. The beat reinforces confidence in digital-native banks challenging incumbents in emerging markets — while the still-rising cost of credit and delinquency trends highlight the ongoing credit-risk challenge in the region.