Nu (NU) investor relations material

Executive summary

• Achieved record net income of $1.1 billion, up 49% YoY and 17% QoQ, surpassing $1 billion for the first time, driven by strong customer growth and engagement across Brazil, Mexico, and Colombia, reaching 139 million customers.

• Launched new segmentation strategies, including Croma for the super core segment and continued expansion in SME and high-income segments.

• Received a full banking license in Mexico, now the largest digital bank in the country with 16 million customers, 35% of whom were previously unbanked.

• AI and technology investments, including the NuFormer platform, are driving operational efficiency, underwriting, and customer experience, now powering over 60% of support conversations in Brazil.

• Gross revenue grew at a 75% FX-neutral CAGR over five years, with ARPAC up 32% and net income up 69% FXN CAGR over three years.

Financial highlights

• Gross revenues reached $5.9 billion, up 56% YoY; gross profit was $2.4 billion, up 61% YoY and 25% sequentially.

• Net income hit $1.1 billion, up 17% sequentially and 49% YoY; ROE reached 33%.

• Net interest income was $3.7 billion, up 9% QoQ, with net interest margin expanding 180 bps to 22.9%.

• Credit portfolio grew to $39.4 billion, up 37% YoY and 5% sequentially; deposits reached $45.3 billion, up 18% YoY and 6% sequentially.

• Efficiency ratio at 19.5%, with full-year guidance around 20%.

Outlook and guidance

• Expect continued growth in ARPAC, especially as older cohorts mature and new segmentation strategies take effect.

• Mexico and Colombia seen as major growth drivers, with Mexico potentially reaching 60-70% of Brazil's scale.

• Risk-adjusted net interest margin expected to remain at current strong levels for the foreseeable future.

• Continued investment in technology, AI, and international expansion while maintaining operating leverage.

• Focus on scaling AI-driven operations and optimizing deposit strategies in Mexico.