Nu (NU) Q3 2024 earnings summary

Executive summary

• Customer base reached 110 million by quarter-end, a 23%–24% year-over-year increase, covering 56% of Brazil's adult population and showing strong growth in Brazil, Mexico, and Colombia.

• Revenue reached $2.9 billion in Q3 2024, up 56% year-over-year, with gross profit up 67% to $1.3 billion and net income more than doubling to $553 million.

• Annualized ROE surpassed 30% for the first time, with adjusted net income at $592.2 million and adjusted annualized ROE at 33%.

• Continued expansion into new verticals, including telecom (NuCel), NuMarketplace, and NuTravel, and international growth in Mexico and Colombia.

• Monthly activity rate rose to 84%, with average products per active customer at four, reflecting effective cross-selling.

Financial highlights

• Gross profit reached $1.3 billion, up 67% year-over-year, with a gross margin of 46%.

• Net interest income rose 63% year-over-year to $1.7 billion, with net interest margin at 18.3%–18.4%.

• Total deposits increased to $28.3 billion, up 60% year-over-year on an FX-neutral basis; loan-to-deposit ratio at 30%–40%.

• Lending portfolio grew 97% year-over-year to $5.7 billion; consumer finance portfolio at $20.9 billion.

• Cost to serve per active customer at $0.7–$0.9, maintaining strong operating leverage; efficiency ratio improved to 31.4%.

Outlook and guidance

• Confident in ability to increase RPAC and expand loan book, especially in Mexico and Colombia.

• Expect continued strategic investments in new growth avenues, even at the expense of short-term profitability.

• Focus remains on expanding product offerings and deepening primary banking relationships, especially in Brazil.

• Anticipate further expansion in secured lending and new collateral agreements in Brazil.