Digital Banking: Brazil’s Nubank Reports Solid Results for Q1 2024

Nu Holdings Ltd. (NYSE: NU), which claims to be one of the world’s largest digital banking platforms, released its First Quarter financial results.

Financial results are presented in accordance with International Financial Reporting Standards (IFRS).

David Vélez, founder and CEO of Nubank said:

“In May 2024, we announced reaching the 100 million customer mark, a privilege we earned through our steadfast focus on solving people’s needs with true product innovation and the highest quality of service. Our results for the first quarter of 2024 show how our business model is also fueled by expanding revenue and stable cost per customer, generating growth in revenue to $2.7 billion and in net income to $379 million. We printed a 23% return-on-equity for Nu Holdings, among best-in-class financial institutions in Latin America, even though our holding company continues to be over-capitalized and our operations in Mexico and Colombia are still in the early phases of getting to profitability. The operations of these new markets are showing more accelerated results in number of customers, deposits, revenue and market share of credit card purchase volume than Brazil in a comparable time frame.”

Operating Highlights: 

  • Customer growth: Nu added 5.5 million customers in Q1’24, reaching a total of 99.3 million customers globally by March 31, 2024, compared to 59.6 million only two years ago. Nubank is now the fourth-largest financial institution in Latin America by number of customers, and one of the fastest-growing digital financial services platforms worldwide. After the closing of Q1’24, Nubank announced it had surpassed the mark of 100 million customers in Latin America with over 92 million in Brazil, 7 million in Mexico, and around 1 million in Colombia.
  • Engagement and activity rates: Monthly Average Revenue per Active Customer (ARPAC) grew to $11.4 in Q1’24, a 30% expansion YoY on FX neutral basis (FXN)1, with more mature cohorts already at $27. Nu continues to develop principality among its customer base and has an activity rate2 of 83.2%.
  • Low-cost operating platform: Monthly Average Cost to Serve Per Active Customer remained virtually unchanged and below the dollar level at $0.9, demonstrating the strong operating leverage of the business model. The company’s efficiency ratio stood at 32.1% in Q1’24, which strengthens Nu’s position as one of the most efficient companies in Latin America.

Financial Highlights:

  • Net & Adjusted Income: At a Holding level, Nu continued to drive increased profitability and posted a Net Income for Q1’24 of $378.8 million and an annualized ROE of 23%, compared to a $141.8 million profit in Q1’23. Adjusted Net Income3 for Q1’24 reached $442.7 million with an annualized adjusted ROE of 27%, compared to an Adjusted Net Income of $182.4 million in Q1’23. Nu is achieving these strong levels of profitability and efficiency, despite maintaining a considerable excess capital of $2.4 billion at the holding level and continuing to make substantial investments in future products and geographic expansion, as the company sees tremendous potential to continue building the largest consumer platform in Latin America. The operations in Brazil alone have a return of equity of over 40%.
  • Revenue: Nu’s revenues in the quarter surged to $2.7 billion, another new record high, which represents a 64% FXN increase from Q1’23. This showcases the company’s unique ability to consistently expand its active customer base while accelerating revenue growth and profitability.
  • Gross Profit: Nu’s gross profit reached another quarterly record high of $1.18 billion, a 76% increase YoY FXN. Gross profit margin stood at 43.2%, from 40.2% in Q1’23.

Business highlights: 

  • Performance and Growth in Brazil: In Brazil, the customer base reached 91.8 million by March 31, 2024, growing 22% in a year. Nu is the fourth-largest financial institution by number of customers in the country, according to Brazilian Central Bank data. By May 2024, after the closing of the quarter, the customer base in the country had surpassed 92 million.

Nu’s customer base surpassed 900,000 customers, and, in “only 4 months, over half a million people registered in the launchlist for the savings product Cuenta Nu.”

Multi-Product Platform: Nu’s product portfolio “keeps growing with credit cards, NuAccounts, and personal loans reaching approximately 41 million, 73 million, and 8 million active customers, respectively.”

There are currently nearly 2 million “active insurance policies, and 17 million investment active customers.”



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