#26 – August 16, 2024

Nu posted its Q2’24 financial results, with new records across the main metrics. Net income reached US$ 487 million, and revenues US$ 2.8 billion. With a growing customer base, increasing engagement and monetization, and a stable cost to serve, the company’s earnings-generating formula continues to demonstrate its exponential strength. 

Also in this issue: Nu is the most honored Latin American company in the 2024 Latin America Executive Team survey by Institutional Investor; Cristina Junqueira deep dives into the Mexican operation in the new episode of the Nu Videocast; and more.
 

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Q2’24 Financial Results

Nu posted record-breaking metrics for the second quarter of 2024. Net income more than doubled year over year, reaching US$ 487 million in the quarter, with revenues at US$ 2.8 billion, expanding risk-adjusted margins (11%), and one of the highest annualized ROEs in the industry at 28%. This was built upon a growing customer base (105 million), monetization (ARPAC at US$ 11.2), and stable cost to serve (US$ 0.9).

The company’s efficiency ratio continues to improve, having dropped 10 basis points QoQ to 32%, positioning Nu as one of the most efficient financial services companies globally. 

“Our second quarter 2024 results reaffirm the strength of our business model, efficiency in our execution, and resilience of our credit underwriting,” said founder and CEO David Vélez. “We believe that this business formula, propelled by exceptional talent, technology investments, and brand love will pave the way for Nu to become the largest consumer technology platform in Latin America."

Q2’24 Results Highlights:

Financial:

• Global revenues: US$ 2.8 billion
• Net Income: US$ 487 million
• Annualized ROE: 28%
   
• Interest-earning portfolio: US$ 9.8 billion (81% growth YoY FXN)
• Total deposits: US$ 25.2 billion
  • Loan-to-deposit ratio: 39%

Operational and business

• Customers – 104.5 million
  • 5.2 million added in the quarter 
     
• ARPAC: US$ 11.2, with more mature cohorts already at US$ 25
• Monthly Average Cost to Serve per Active Customer: US$ 0.9
• Activity rate: 83.4%
• Consumer finance asset quality in Brazil – 4.5% for 15-90 NPL ratio | 7.0% for 90+NPL (the latter in line with expectations, due to a reflection of last quarter’s seasonal impact on 15-90 NPL)

Institutional Investor

Nu was the most honored Latin American company by Institutional Investor in their 2024 Latin America Executive Team survey. Recognition came in multiple categories within the Financials Non-Banks sector:

Best CEO: David Vélez 

Best CFO: Guilherme Lago

Best IRO: Jörg Friedemann

Best IR Team in Latin America

Best IR Program in Latin America

Best ESG Program in Latin America

Best Company Board

To build the list, Institutional Investor surveys buy-side analysts, money managers, and sell-side researchers at securities firms and financial institutions that cover the region, reflecting the opinion of 1141 investment professionals at +500 financial services firms

Nu Videocast: Mexico. Cristina Junqueira, co-founder and Chief Growth Officer,  joined the latest episode of the Nu Videocast to reflect on the company’s progress in Mexico in 2024 and the path of international expansion ahead. You can find all previous episodes in our Newsroom. 

CCO. Nu appointed Tyler Horn as its Chief Credit Officer (CCO). With extensive experience in credit risk management, including the role of VP for Capital One Financial Corporation, Tyler will oversee and manage the credit risk function across the company globally.

Products and launches

Cuenta Nu Colombia. More than 500.000 people already have Nu’s recently launched account product in Colombia. The Company closed Q2’24 with US$ 220 million in deposits in the country, and proprietary research shows that there is a wide opportunity for growth in offering savings products like Cajitas (Money Boxes) with competitive yields.

Nu Asset partnership. Nu Asset partnered with Itajubá Investimentos in Brazil to distribute its fixed-income funds to institutional investors, including pension funds (EFPCs) and public pension systems (RPPSs). With over R$ 3.8 billion under management, Nu Asset is taking new steps and addressing the demands of institutional investors.

Record profits, with net income doubling year over year, were the highlight of Q2’24 Earnings coverage in the press. Folha stated that results surpassed expectations, Bloomberg explained Nu’s approach to credit underwriting, and local outlet Expansión underscored how Mexico has been a relevant driver for the growth of the holdings.

Nu was the most honored Latin American company in this year’s Institutional Investor ranking, and David spoke on their website about our strategy so far and for future growth. Alongside co-founder Cris Junqueira, our founder and CEO also spoke with Brazil Journal about Nu's successful business model. They discussed operations in Mexico and Colombia, as well as challenges and opportunities in Brazil.

Nu is the second-most used bank in Brazil, only behind the public institution Caixa Econômica, and the best evaluated by customers. Valor Econômico brought a deep dive into research that shows how we’re expanding regionally and gaining customer preference.

Nubank was listed as one of the companies most committed to cultural investment in Brazil, ranking fourth in the survey by the Prosas platform at the request of Valor.

Forbes Colombia writes about what Latin America can learn from the financial innovations in Brazil. The article highlights Pix and Open Finance, and Nu’s innovative approach to those topics.

In 2023, Nubank reached the milestone of R$25 billion saved in Caixinhas (Money Boxes) in Brazil for travel goals, reflecting the investing habits of over 1.7 million customers.

In an interview with Expansión, VGO detailed the application of AI in Nubank's processes, highlighting the impacts on customers and the importance of technology for the banking sector.

Suzana Kubric participated in Remota Podcast and spoke about talent, the Nu Way of Working, and the relevance of data in decision-making, among other people & culture topics.

Nu Colombia attracted more than 600.000 new customers by increasing Cuenta's yield to 13% as part of its growth strategy.

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