The fintech
giant Nubank, which primarily operates in Brazil but has been expanding its
presence in Mexico and Colombia, reported a net income of $487 million for the
quarter ending June 30, more than doubling its profit from the same period last
year. This figure surpassed the $418 million forecast by analysts surveyed by
Bloomberg.

Nubank Doubles Q2 Profit

Revenue for
the quarter reached a record $2.8 billion, outperforming the median estimate of
$2.66 billion. The company’s customer base expanded to 104.5 million, with 95.5
million in Brazil, 7.8 million in Mexico, and 1.3 million in Colombia.

“Revenues
were up 65% YoY on an FX neutral basis (FXN) to a new record high of $2.8
billion. Monthly Average Revenue per Active Customer (ARPAC) increased 30% YoY
and 6% quarter-over-quarter (QoQ) FXN, respectively, to $11.2,” the company
commented in the newest report.

The bank’s
return on equity reached 28%, showcasing its profitability. However, the
company faced challenges with loan delinquencies. While the rate for loans 15
to 90 days overdue decreased to 4.5%, those exceeding 90 days rose to 7% from
6.3% in the previous quarter.

$NU Results | EPS Beat 🟢🔹Nu Holdings (Nubank) reported Q2 revenues* of $2.18 billion: a +54% Y/Y growth but -18% below consensus estimates.🔹Operating margin expanded 10.33 p.p. Y/Y to 33.2%, better than the 24.6% expectation.🔹EPS (GAAP) was $0.10: a +100% Y/Y increase,… pic.twitter.com/V5YED64td9

— Esthaar Labs | Finance & Tech Insights (@EsthaarLabs) August 13, 2024

Nubank’s
growth in Mexico and Colombia is gaining momentum, with deposits reaching $3.3
billion and $220 million respectively. However, currency fluctuations in these
markets posed a significant headwind during the quarter.

Shares Up

Following
the earnings announcement, Nubank’s shares rose as much as 8% in after-hours
trading. The company’s stock has already gained over 50% year-to-date,
cementing its position as Latin America’s most valuable publicly-traded bank
with a market capitalization of $60 billion.

At the
beginning of this year, valued at over $40 billion, the fintech company claimed
that it had ambitious plans to become the biggest financial services provider
in Latin America, according to an interview with the company’s CEO, David
Vélez.

In 2023,
the fintech company added 19.3 million customers. For the full year, Nubank
generated $8 billion in total revenue. Thanks to this rapid growth, Nubank
earned $1 billion in net profit and $1.2 billion in adjusted net profit for
2023, a significant turnaround from the $9.1 million net loss in 2022.

As recently
reported by Finance Magnates, Nubank has announced a strategic
partnership with Lightspark to integrate the Bitcoin Lightning Network into its
platform. The collaboration aims to leverage Lightspark’s capabilities to
enhance financial services offered by Nu Holdings, initially focusing on
integrating, mapping, and potentially developing new products.

This article was written by Damian Chmiel at www.financemagnates.com.

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