Nu Holdings, a publicly traded company that runs Nubank, reported a net income of $637 million in the second quarter, representing a 42% rise from the prior year when adjusted for currency fluctuations.
In the New York post-market, the stock price would increase by 7.4% at 6:30 PM, reaching $12.90.
The company, with approximately 123 million customers in Brazil, Colombia, and Mexico, posted $3.7 billion in net revenue from April to June, marking a 40% rise from the previous year.
Guilherme Lago, the financial director, stated to Reuters that the rise in profit was due to operational leverage and revenue expansion, although he pointed out that the factors behind this growth are starting to shift.
In Brazil, the focus for revenue growth in the upcoming years will shift towards enhancing relationships with existing customers to increase the average revenue per customer, as stated by Lago.
Nubank’s yearly return on net equity, a measure of profitability, remained steady at 28%, matching the previous year’s rate.
The bank’s credit portfolio increased by 8% compared to the previous quarter, reaching US$27.3 billion, with personal loans, mainly credit card loans, driving this growth.
The default rate between 15 and 90 days decreased by 0.3 percentage points from the previous quarter, while the default rate above 90 days increased by 0.1 percentage point in the same period, as reported by Nubank.
