Nu Holdings posted its Q3’24 financial results, registering a 56% growth in revenue YoY to $2.9 billion, driven by customer acquisition and enhanced engagement, alongside appealing product launches. Net income reached yet another record, at US$553 million, for a 30% annualized ROE.

Also in this issue: in October, Nu announced it is expanding beyond financial services with the launch of NuCel in Brazil, bringing its well-established product expertise and customer service into telecom, and more news.
 

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Q3’24 Financial Results

In the third quarter of 2024, Nu’s business model once again demonstrated its capability of combining growth and profitability. The company now serves 110 million customers globally, with revenues surging to US$2.9 billion and a virtually stable cost to serve. This resulted in a net income of US$553 million and a 30% annualized ROE, all while maintaining a robust level of excess capital of US$2.4 billion at the holding level and with the subsidiaries in Mexico and Colombia yet to reach profitability. Both sustain strong growth, reaching 8.9 and 2 million customers, respectively.

The results present multiple other opportunities for continued expansion, with consistent compound growth across all cohorts underpinning Nu’s ability to cross-sell and upsell to customers. 

Additionally, Nu has been rewarded for taking additional credit risk to maximize NPV. Asset quality trends on NPLs per Interest-Earning Balances have been stable/declining over the past few years.

Q3’24 Results Highlights:

Financial:

• Global revenues: US$2.9 billion
• Net Income: US$553.4 million
• Annualized ROE: 30%
• Interest-earning portfolio: US$ 11.2 billion (81% growth YoY FXN)
• Total deposits: US$ 28.3 billion (60% growth YoY FXN)
• Loan-to-deposit ratio: 40%

Operational and business:

• Customers – 109.7 million*
• 5.2 million added in the quarter 
• ARPAC: US$ 11.0, with more mature cohorts already at US$25
• Monthly Average Cost to Serve per Active Customer: US$0.7 (or US$0.8 when adjusted by one-offs occurred in Q3'24)
• Activity rate: 84%
• Consumer finance asset quality in Brazil – 4.4% for 15-90 NPL ratio (10 basis-points drop) | 7.2% for 90+NPL (in line with expectations) 

*Earlier this month, Nu surpassed 100 million customers in Brazil, taking the total up to over 111 million.

Products and launches

NuCel. Nubank launched its mobile phone service for customers in Brazil. NuCel is one of the company’s first steps in going beyond finances to create better products, propelled by its customer-centric, transparent, and high-level service.

Nu Mexico portfolio. Cuenta Nu and Credit Card customers in Mexico now have a set of new features available. Mobile recharge to top up their phone plans and the option to use money saved in Cajitas (Money Boxes) as collateral for a credit card limit increase are among the recent launches.

Crypto swap. Customers can now swap Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Uniswap (UNI) for USDC, and the other way around. This new feature of Nubank Crypto promotes lower fees than selling and buying.

Corporate information

“The new relationship with money”. Research by Ipsos shows that the digitalization of financial services in the past 10 years has strongly impacted the Brazilian, Mexican, and Colombian populations across ages and income bands. The study, requested by Nu, brings insight into how these changes brought more control and a positive outlook for the future for different generations.

Awards and recognition. Nubank was the financial services company with the lowest rate of complaints in Q3’24 in Brazil, according to a quarterly Central Bank publication. 

Additionally, Nu received multiple external recognition in the past month, including Digital Bank of the Year by LatinFinance and the title of the most future-proof company. Its brand strength was shown in WPP's ranking as the Most Valuable Brand in Brazil, Folha’s Top of Mind (the most remembered credit card by Brazilians), and as one of the most admired companies in Colombia. A study by PM3 and Bain & Company placed Nu as the most admired company in terms of product in the country. 

Black Friday. Nu launched a series of videos and games on TikTok in partnership with Brazilian star Manu Gavassi to share tips for consumers to identify potential scams in Black Friday sales.

Nu surpassed consensus and more than doubled its Net Income YoY FXN to US$553 million in Q3’24.
 

At 100 million customers in Brazil, Nu is still in the business of growth, said CEO Livia Chanes about the milestone. 

The launch of NuCel as a telecom alternative with Nubank’s well-recognozed customer service was positively seen by the market.

Almost 40% of Brazilians have not been to a bank branch in the past six months. We presented this and other insights on an exclusive research by Ipsos on how digitalization and democratization of access are transforming the way Brazilians interact with money.

Atlantico's 2024 Annual Digital Transformation Report for Latin America names Nu, Mercado Libre, and iFood the "Triumphant Three," highlighting the regional tech companies that stand out globally in their respective fields.

During the Bloomberg New Economy at B20 in São Paulo, David Vélez discussed opportunities in Brazil, Nu’s growth in the country, and the importance of financial education in Latin America.

Marcela Torres, Nu Colombia General Manager, is listed in Merco Líderes Colombia, alongside David Vélez, who appears in the top 5. In Mexico, General Manager Iván Canales was also included in the Merco Líderes Mexico ranking. 

Juliana Roschel, Marketing Director, spoke to Meio & Mensagem about how we maintain brand recognition through strategies that enhance customer experiences and connections. She also highlighted Nu's positioning in tech, safety, and customer experience to Valor Econômico.
 

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