Nubank reported a Net Profit of US$7.8 million at a holding level, with revenues reaching a record of US$1.3 billion. With solid Q3'22 results, the company continues to demonstrate its capacity to grow efficiently while keeping a low-cost tech platform and a widening profit margin. 

In this edition of our newsletter, you will find more information about our Financial Results, as well as product and feature launches (including the Nucoin token and an in-app engagement lever for clients during the FIFA World Cup), a new office space in Sao Paulo, and multiple awards and recognitions.

Nu reported a net profit of US$7.8 million for the third quarter of 2022. The results were driven by the sustained increase in number of customers, reaching over 70 million across Brazil, Mexico, and Colombia (with a new-record activity rate of 82%), combined with growing operational efficiency and margins. Despite macro-trend deterioration across the region, Nubank sustained strong unit economics and above-market credit underwriting capabilities with adequate risk-pricing strategy.

“We continue to launch and cross sell best-in-class products, while keeping a low-cost tech platform with low cost of funding and a widening profit margin. While we saw increased delinquency in the quarter, consistent with the market trend, our risk-adjusted margins expanded by 100bps, showing we are being able to price increased risk appropriately. Nu is well capitalized and is positioned to deliver growth at scale in the long term", said David Vélez, founder and CEO. 

Q3’22 main highlights:

• +5.1MM new customers in the quarter, with 500,000 additions in Colombia and Mexico
• 6th largest financial institution in Latin America, in number of active customers
• 5th largest in Brazil in total customers, according to Central Bank data
• US$7.9 Monthly Average Revenue per Active Customer (ARPAC)
• US$0.8 Monthly Average Cost to Serve Per Active Customer
• 55% primarily banking relationship
• US$3.8 billion adjusted capital, positioning Nu as one of the best-capitalized players in the region
• Liquidity: interest-earning portfolio of US$3.5 billion, with total deposits at four times this amount (US$14.0 billion)

Nucoin: Crypto as an engagement tool. 

After the launch of Nubank Cripto, we are now working on our first proprietary token, expected for H1 2023. NuCoin will support a groundbreaking rewards program in Brazil, driving further customer loyalty and engagement. It’s being developed in partnership with a group of customers of our NuCommunity, and with Polygon Technology – one of the leading blockchain companies in the world.

Nu in the Fifa World Cup. 

Pushing the boundaries of the financial services industry, Nu developed an innovative social feature called NuBolão, in which customers can now access a new tab in the Nu app to place their predictions of match results and get a chance to win prizes. 

As an official Regional Supporter of the tournament in South America, we are also partnering up with Casimiro, one of the world’s leading sports streamers, to promote an exclusive trivia show before matches: NuEsquenta. In Colombia and Mexico, our campaigns are bolstering customer loyalty and brand love.

Secured Loans. 

Customers can now use investments to secure loans, thus having access to credit without jeopardizing their savings. Nu has been advancing in the lending category, with plans to expand secured offering and payroll deductible loans, as explained by company leadership.

Investments.

Money Boxes now have an auto-invest feature, allowing recurrent automatic deposits into an investment platform that is organized by plans and goals, with different timeframes and yields. Caixinhas (as they are named in Portuguese) are now also available for customers under 18 years. 

Further customer control via automation.

Nu launched a Payment Assistant to help manage day-to-day bills. Additionally, customers are now eligible to receive specific credit lines to pay boletos (a bank slip using a bar code) with their credit cards. This is a long-requested feature so that customers can centralize their spendings in just one bill without compromising their card limit.

SME First: Opening the doors to more business accounts.

Nu is now onboarding business customers without requiring them to open a personal account first. We currently serve 2.3 million SMEs and are paving the way to propel our reach in the growing SME ecosystem in the country.

Marketplace: More shopping options and rapid-growing revenue.

In the run-up to Black Friday, Nu expanded its marketplace portfolio to over 100 sellers and is offering additional cashback and discounts. So far this year, we have enabled over R$ 1 billion in sales for partner stores, with more than 10 million customers engaging with our platform.

Inclusion: Unparalleled customer experience for all.

Nu has been providing sign language customer service for over 15 months now, fostering autonomy through human service. Since its launch, there have been more than 7,000 calls in LIBRAS (Brazilian Sign Language).

Office consolidation. Spark is the company’s new office space in Sao Paulo, serving our hybrid model and providing space for large group meetings and events. “The space results from Nubank’s constant growth and how we have matured due to the pandemic. We propose to enhance the personal connection of teams in an environment that will allow for broader events, offering comfort and dynamism to employees”, says Cristina Junqueira, co-founder.

Awards and recognitions.  

Our customer-centric approach enables us to deliver a superior experience to our customers that is recognized by the market: Nu was awarded the Prêmio Respeito by Grupo Padrão as the neobank in Brazil that respects its customers the most and, according to Folha Top of Mind, we are the 2nd credit card brand most remembered by Brazilians, only after Visa. A Brazilian Central Bank ranking shows Nu is the leading financial institution with the lowest rate of complaints.

On the corporate front, Nu was recognized as the Best banking app in 2022 by Techtudo and as the Top 1 digital bank in the world by Fintech Magazine. In Colombia, Nubank and founder David Vélez were featured in Merco Empresas y Líderes Colombia 2022. 

Nu was awarded two recognitions around talent brand strategy: Diversity in Practice positioning Nu’s extended paid Parental Leave among the best corporate diversity and inclusion practices, as well as making the Top 100 Universum list of most attractive employers for university students in Brazil.

Nu’s record revenues and “first-ever” profitability lead the headlines around the Q3’22 earnings results with articles in Reuters, Valor, and Estadao. Bloomberg and Exame highlight that results beat analyst and market expectations.

Thuan Pham, Nubank’s Board member and former CTO of Uber and Coupang, discussed platformization as a strategy to scale in Bloomberg Línea.

Cristina Junqueira spoke about Nubank's culture, IPO, and growth in Papo de Gestão podcast. 

Fernando Miranda, VP of Investments, spoke with Valor Econômico about the 52% growth of assets under Nu’s custody in one year.

Helena Bertho, Diversity and Inclusion Director at Nubank, was interviewed by the podcast 5% which is focused on black leadership. She spoke about career paths, communications, and D&I.

Our latest launches made the news in various outlets:

• CNBC highlights how we will co-create Nucoin with our customers.
• Estadão details how NuBolão works and the prizes available.
• Valor Econômico explains how the money invested in the Resgate Planejado fund can be used to secure a loan.
• E-Investidor shows how the Money Boxes’ auto-invest feature helps customers achieve their goals.
• Valor Investe announced that SMEs can become Nubank customers without having a prior personal account.
• Valor Econômico explains that the specific credit lines for boletos allow customers to centralize their spendings on their cards without compromising limits.

(Articles in this section may be subject to a paywall and available to subscribers only, depending on the news outlet.)

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