Nu turned 10 years old this month and released record financial results, combining scaled growth and profitability, as well as strong and sustainable fundamentals for the future. 

The company posted record net income of $142 million for Q1’2023, and nearly doubled its quarterly revenues in just one year. As of today, the customer base is 80 million. The company is one of the most efficient players in Latin America, has an exceptional capital position, and continues to achieve record results across multiple metrics.

In this issue, you will also read about the successful launch of Cuenta Nu in Mexico – one of the most recent steps in expansion and unlocking further scalability opportunities – among other recent product and corporate announcements.

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Nu reported its financial results for the first quarter of 2023, posting recurring net income at the holdings level, achieving a record of $142 million. Quarterly revenues almost doubled in just one year, now reaching $1.6 billion – also an all-time record, and in consistent expansion along with our customer base, now at over 80 million* in Latin America. Our low-cost operating platform is supported by a strong capital position, with excess cash of over $2 billion.

Nu Brazil, our largest operation, currently serves over 75 million people. This means that 46% of the Brazilian adult population are customers, a figure that has doubled in just two years. Revenues in the country also grew, to $1.5 billion in the quarter, with profitability accelerating. 

Nu is now the primary banking relationship for over 57% of the monthly active customers that have been with us for over a year, and the activity rate is at 82%, up from 78% just a year ago. With an expanding portfolio that further engages our customers, we're one of the largest and fastest-growing digital financial services platforms worldwide, and the fifth-largest financial institution in Latin America by number of active customers. All the while, we’re able to keep one of the best efficiency ratios, currently at 39%, supported by the low cost of our platform, which has a large potential for further operational leverage. 

Internationally, we have also expanded customer acquisition in both Mexico and Colombia. Additionally, we are unlocking further growth with the launch of Cuenta Nu in Mexico, which has already grown to half a million customers in less than a week after launch. The product will allow us not only to increase our base but also to further engage customers and better understand their financial lives, as well as grow from local deposits. 

Highlights:

Financial

• Net Income: $141.8 million
• Global revenues: $1.6 billion (87% growth YoY FXN)
  • Brazil revenues: $1.5 billion 
• Net Income in Brazil: $171 million
• Annualized Return on Equity (ROE) in Brazil: 37% 

Operational

• Customers (total): 79.1MM* (33% growth YoY)
  • 4.5MM added in Q1’23
  • Total customers Brazil: 75.3 MM (2.7MM SMEs) | Mexico: 3.2MM | Colombia: 635,000
• Primary banking relationship for over 57% of the monthly active customers who have been with Nu for over a year
• Monthly Average Revenue per Active Customer (ARPAC): $8.6 (30% growth YoY FXN), with mature cohorts averaging above $20.
• Cost to Serve per Active Customer: $0.8
   
• Consumer finance asset quality: 4.4% 15-90 NPL ratio | 5.5% 90+
• Interest-earning portfolio: $5.2 billion
• Total deposits: $15.8 billion
• Loan-to-deposit ratio: 33%
• Efficiency ratio: 39% – One of the most efficient players in the region

*Nu reached 80MM customers in April, one week after closing the quarter

Nu 10 years, and it is only Day 01. 

The company reaches its 10th anniversary with record results and ambitious plans for the next decades. Growing from just 12 credit cards to a multi-product platform serving 80 million people across Latin America was a journey that defied all odds –and several “no’s” along the way. Co-founders David Vélez and Cristina Junqueira, and CTO Vitor Olivier (employee number 10) shared articles that showcase their personal views on the past and their goals for the future. 

“As we plan for the next ten years, the same ‘frio na barriga’ (excitement) remains as our market share in most financial verticals remains tiny, and ‘the sky is the limit’, given our starting point: we have the largest fully-digital consumer platform in Latin America, with one of the most loved and trusted brands in the region, one of the best technology and product teams in the world, a strong culture, and a robust and growing profit engine that allows us to self-finance all of our future endeavors. Our journey is truly in the first minute of the first half of the game, and we are energized!”, writes David.

In a recent Letter to Shareholders, David also reflected on the resilience and growth the company was able to achieve even in challenging times, and touched on Nubank’s vision for the future. We have been able to amass a combination of skills and capabilities that put us in a differentiated place, allowing Nubank to envision becoming a consumer platform: 

“We believe we are defining a new fintech category globally, that we describe internally as a ‘Money Platform’: a technology platform that has the optimization of money on behalf of users at its core. We understand this concept can hold significant power as successful management and optimization of finances are crucial factors in effectively engaging the entire adult global population.”

Recognition. Nu was featured among the top 10 Most Influential Brands in Brazil in 2022, according to a ranking by Ipsos. For the third consecutive quarter, we’re also in the Corporate Reputation Index by Caliber, ranking first among financial companies and 10th overall in trust and admiration.

Cuenta Nu. Reaching over 500,000 customers one week after its official public launch, Cuenta Nu in Mexico was launched with a marketing campaign that generated massive buzz in Mexico City, including a giant mattress in a public park to encourage Mexicans to stop saving money "under the bed".

Credit expansion. Customers now have one more option to responsibly increase their credit card limit, by using money saved in a Caixinha (Money Box, a product that allows investing at varied yields based on specific goals and timeframes) as collateral. Nu Limite Garantido is a way to increase purchase power through invested money that continues to yield.

NuPay on iFood. NuPay, an exclusive online payment service for Nubank customers, is now available on iFood, a Brazilian technology company focused on food delivery, providing an added layer of security. NuPay also offers an additional credit line, allowing purchases without compromising card limit. 

Update for entrepreneurs. MEI (individual micro-entrepreneurs, in Portuguese) customers now have a section in our app that centralizes the due taxes for their business. The process, which is usually bureaucratic, can now be completed entirely within our app – saving time and helping to keep finances organized.

Debt renegotiation. Nubank is holding an exclusive debt renegotiation campaign to help customers avoid the snowball effect on debt and regain control over their financial lives. Offers will run throughout the month of May and include discounts and facilitated entry, among other options.

• Nu’s Financial Results were featured in media outlets internationally. Reuters highlighted record revenue, Valor (BR) underscored efficiency, Brazil Journal outlined that results beat market estimates, and Estadão (BR) headlined the fast-growing net income. Analysts across Brazil and the US also highlighted our better-than-expected results. David also spoke about the solidity of our operations, on CNBC’s Closing Bell. Earnings news also covered in El Economista (Mexico) and La Republica (Colombia).
  
  
• Highlighting that 54% of Mexicans save their money informally, the local press shared the news about the official public launch of Cuenta Nu. El Universal added that the new product is part of a wider strategy to offer a complete financial services portfolio in the country while expanding our customer base even further.
   
• David spoke about Nubank's trajectory and the future of banking and technology, stating that Nu aims to be a gateway to the internet, at his keynote participation on the opening night of Web Summit Rio. 
   
• Cristina Junqueira highlighted the importance of Nubank's culture, leadership, and innovation, among other topics, in an interview with the podcast Os Sócios.
   
• Linkedin partnered up with Nubank and other companies to launch #CarreirasComFuturo, a movement that aims to contribute to the development and belonging of black professionals at work.
   
• The launch of our most recent security pack was highlighted by various media outlets, outlining our high-tech nature and robust set of data protection tools and features. Modo Rua was pointed out by Valor Econômico as a groundbreaking resource, and Scam Alert and Intelligent Defenses were also praised.

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