Nu Holdings Ltd. (NYSE: NU), one of the largest digital financial services platforms, released its Fourth Quarter and Full Year 2024 financial results.
Financial results are presented in accordance with International Financial Reporting Standards (IFRS).
David Vélez, founder and CEO of Nubank said:
“2024 was a transformational year for Nu as we advanced our mission to empower millions across Latin America with accessible, transparent and low-cost financial services. We now serve over 114 million customers, with 20.4 million net additions during the year, while strengthening engagement and deepening primary banking relationships. We achieved $11.5 billion in revenue, a 58% year-over-year growth on an FX-neutral basis, and net income nearly doubled from 2023, reaching close to $2.0 billion. We advanced in all of our priorities with significant strides in our High-Income strategy in Brazil, expanded our footprint in Mexico, and broadened our portfolio with NuCel and NuTravel. As we prepare to scale up our products and services globally, we remain focused on execution, customer-centric innovation and sustainable growth in our current markets.”
Q4’24 and Full Year ’24 performance highlights of Nu Holdings Ltd.:
Operating Highlights:
- Customer growth: Nu added 4.5 million customers in Q4’24, and 20.4 million in FY’24, reaching a total of 114.2 million customers globally by December 31, 2024, reflecting a 22% year-over-year (YoY) increase. This expansion reinforces Nu’s position as one of the world’s largest and fastest-growing digital financial services platforms. In Brazil, Nu has become the third-largest financial institution by number of customers, according to the Brazilian Central Bank. Mexico surpassed the milestone of 10 million customers and Colombia reached 2.5 million customers, maintaining its positive momentum following the launch of the Cuenta Nu product.
- Engagement and activity rates: Monthly Average Revenue per Active Customer (ARPAC) stands at $10.7 in Q4’24, with more mature cohorts already at $25. On an FX neutral basis1(FXN) it grew 5% sequentially and 23% YoY, up from $10.6 from one year ago. Monthly activity rate2 is at 83.1%. While customer growth in Mexico and Colombia outpaced Brazil, initially lower activity levels in these countries temporarily impacted our consolidated activity rate.
- Low-cost operating platform: Monthly Average Cost to Serve Per Active Customer remained below the dollar level, at $0.8 per customer, demonstrating the strong operating leverage of the business model. The company’s efficiency ratio improved 150 basis points (bps) sequentially, reaching 29.9% and over 610 bps better than last year.
Financial Highlights:
- Net & Adjusted Income: At the Holding level, Nu continued to drive increasing profitability and posted a Net Income for Q4’24 of $552.6 million, up 7% sequentially and 85% from Q4’23 on an FXN, and an annualized ROE of 29%. For FY’24, the Net Income almost doubled to $1.97 billion, compared to $ 1.03 in FY’23. Adjusted Net Income3 for Q4’24 increased 87% from 2023 levels to $610.1 million, with an annualized adjusted ROE of 32%. Adjusted Net Income reached $2.2 billion in FY’24, compared to $1.19 billion in FY’23. These results place us among the most profitable financial institutions globally, even while maintaining a significant excess capital position at the holding level.
- Revenue: Nu’s FY’24 revenues were up 58% YoY reaching $11.51 billion in FY’24 and $2.99 billion in Q4’24 maintaining high growth trajectory, while significantly strengthening our financial results, demonstrating the efficiency and compounding power of our business model.
- Gross Profit: Nu’s gross profit stands at $1.36 billion in Q4’24, an 8% sequential increase and a 44% increase YoY, with $5,24 billion in FY’24 in comparison to $ 3,49 from FY’23, both on an FXN. Gross profit margin stood at 45.6%, returning closer to 2023 levels despite higher funding costs expected in new geos.
