Nu Holdings (NYSE: NU), the parent company of Nubank, reported another solid quarter on May 14, 2026, showcasing its continued dominance as a leading digital financial platform in Latin America. The Fintech company added around 4 million new customers, pushing its global base past 135 million. Nubank revenues crossed the $5 billion mark for the first time, net income climbed to $871 million, and return on equity reached 29%.
Founder and CEO David Vélez highlighted the results as evidence of sustained momentum, emphasizing that the firm is not merely incorporating artificial intelligence into traditional banking but fundamentally redesigning the sector around it.
Customer engagement remained high, with monthly average revenue per active customer rising sequentially to about $16. Activity rates stayed steady at 83%, even as the company neared 100 million active users in Brazil.
The efficiency ratio improved markedly to 17.6%, reflecting stronger monetization and scale, though full-year guidance points to stability as investments in international growth and AI infrastructure continue.
Asset quality showed typical first-quarter seasonality, with early-stage delinquencies (15-90 days) rising to 5.0%, while longer-term non-performing loans eased to 6.5%.
On the financial front, net interest income hit a record $3.25 billion, up 12% from the prior quarter, as the credit portfolio expanded faster than funding sources.
The credit book grew 40% year-over-year to $37.2 billion, comprising $24.3 billion in credit cards, nearly $10 billion in unsecured lending, and $3 billion in secured products.
Deposits increased 22% to $42.4 billion, supporting a loan-to-deposit ratio of 58.3%. Gross profit advanced 27% to $1.88 billion, while net income surged 41% year-over-year, maintaining a multi-year compound growth rate exceeding 80%.
A standout element was Nubank’s AI transformation. Proprietary models known as NuFormer are now powering real-time credit decisions for cards in Brazil and Mexico, as well as unsecured loans in Brazil. AI-powered “Private Banker” tools, offering insights, payments advice, and debt solutions, already assist over 15 million monthly users.
These innovations have enabled disciplined credit growth with resilience rather than unchecked speed. In Mexico, the business reached break-even and became the third-largest financial institution with 15 million customers, mirroring Brazil’s successful playbook.
Brazil itself surpassed 115 million customers, cementing its position as the country’s largest private financial entity, while Colombia approached 5 million.
Despite the strong fundamentals, Nu Holdings shares dipped roughly 5-10% in after-hours trading following the release, as GAAP earnings per share of $0.18 fell slightly short of consensus estimates around $0.19-$0.20.
Some investors also flagged the seasonal uptick in early delinquencies and higher credit provisions. Year-to-date, the stock has declined about 20-24%, trading near $12 amid broader market caution toward growth names.
Analysts remain broadly constructive, however. Most maintain “Buy” ratings with 12-month price targets averaging $15-$18, implying 25-50% upside.
They point to Nubank’s undervaluation relative to its growth trajectory, with Mexico’s inflection and AI-driven efficiencies poised to drive further margin expansion and market share gains.
Credit portfolio resilience, supported by advanced risk models, is seen as a key differentiator.
In Latin America’s fintech ecosystem, Nubank leads in scale but faces competition from Mercado Pago’s data-rich ecosystem, PagSeguro, StoneCo, and emerging players like Klar in Mexico.
The regional market is projected to expand at a 12% CAGR through 2031, fueled by underbanked populations and digital adoption, though challenges such as regulatory shifts, currency volatility, and cybersecurity risks persist.
Nubank’s low-cost model, AI edge, and diversified revenue streams position it favorably for sustained leadership as traditional banks struggle to match its agility. The latest financial quarter reinforces Nubank’s trajectory toward becoming a global digital banking enabler, with investors mostly betting on long-term compounding despite current challenges.