Nu Holdings Ltd. Reports Second Quarter 2022 Financial Results

Nu Holdings Ltd. (NYSE: NU | B3: NUBR33), (“Nu” or the “Company”), one of the world’s largest digital banking platforms, released today its Second Quarter 2022 financial results. Financial results are expressed in U.S. dollars and are presented in accordance with International Financial Reporting Standards (IFRS). The full earnings release has been made available on the Company’s Investor Relations website at www.investors.nu, as well as the details of the Earnings Conference Call Nu will hold today at 6:00pm Eastern time/7:00pm Brasília time.

"We had another very strong quarter, with growth and profitability in our core business. We registered record revenues and are making huge strides towards becoming a multi-product and multi-country platform. Our largest operation -Brazil- is now profitable, having registered a net profit of US$ 13 million in the first half of 2022, driven by customer growth to 65 million and ability to offer and cross-sell new products. We are the fourth largest card player in Brazil, almost a quarter of all PIX operations pass through Nu's accounts, and we are a leader in the digital-direct investment space with 5 million active customers. We are diversifying and scaling with Crypto, Insurance, SME and Personal Loans. Moving internationally, we are now the #1 issuer of new credit cards in both Mexico and Colombia –where we have just received a license approval to continue our expansion”, said David Vélez, founder and CEO.

Q2’22 Results Snapshot

Below are Q2’22 performance highlights of Nu Holdings Ltd.:

Operating Highlights:

• Customer growth: Nu added 5.7 million customers in the quarter reaching a total of 65.3 million customers in Brazil, Mexico and Colombia. This represents a 57% growth year-over-year (YoY), reinforcing Nu’s positioning as one of the largest digital banking platforms globally.
• Engagement and activity rates: Average Revenue per Active Customer (ARPAC) expanded to $7.8, growing by 105% on a FX neutral basis (FXN)¹. Activity rate hit a new historical-high mark growing to 80%. Nu has become the primary bank for over 55% of the monthly active customers that have been with Nu for over a year.
• Low-cost operating platform: Monthly Average Cost to Serve Per Active Customer reached $0.8, remaining flat YoY and FXN.
• Asset Quality: lead indicators have remained stable and asset quality followed its normalization post pandemic: Nu’s NPL 15-90 remained stable at 3.7%, while 90+ reached 4.1% in line with expectations.

Financial Highlights: