Nu Holdings Ltd. Reports First Quarter 2023 Financial Results

Nu Holdings Ltd. (NYSE: NU | B3: NUBR33), (“Nu” or the “Company”), one of the world’s largest digital financial services platforms, released today its First Quarter 2023 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.

"Nu continues to build on its growth and profitability trajectory, posting a net income of $142 million. Revenue has nearly doubled year over year, reaching $1.6 billion. We have surpassed 80 million customers in Latin America, and, in Brazil, 46% of the adult population is a Nubank customer, a figure that has doubled in only two years. With an efficiency ratio of 39%, we are one of the most efficient players in Latin America. We have an exceptional capital position and excess liquidity, operate a low-cost platform, and continue to increase our product portfolio and customer engagement. Our Brazil operation has consistently showcased the compounding effects of our business model, now reaching a net income of $171 million and an ROE of 37% for the quarter,” said David Vélez, founder and CEO of Nubank.

Q1’23 Results Snapshot

Below are the Q1’23 performance highlights of Nu Holdings Ltd.:

Operating Highlights:

• Customer growth: Nu added 4.5 million customers in Q1’23 and 19.5 million year-over-year (YoY), reaching a total of 79.1 million customers globally. This represents a 33% growth YoY, which underscores Nu's position as one of the largest and fastest-growing digital financial services platforms worldwide and the fifth-largest financial institution in Latin America by number of active customers.
• Engagement and activity rates: Monthly Average Revenue per Active Customer (ARPAC) increased to $8.6, expanding 30% YoY on FX neutral basis (FXN)¹. This was the result of a higher number of active customers and primary banking relationship customers (PBA), which consumed a larger and more profitable set of financial products, driving record-high revenues. Nu has become the primary banking relationship for over 57% of the monthly active customers that have been with Nu for over a year. Activity rate² hit 82.1%, striking the ninth consecutive quarterly increase.
• Low-cost operating platform: Monthly Average Cost to Serve Per Active Customer remains below the dollar level at $0.8, underscoring the Company’s ability to scale its platform by leveraging sustainable cost advantages. The company’s efficiency ratio, which reflects Nu’s operating leverage, has reached an all-time low at 39%, which would position Nu as one of the most efficient players in Latin America.
• Asset Quality: Nu’s 15-90 NPL ratio reached 4.4%, remaining 10 basis points lower than the historical trend, as traditionally this indicator has increased by 80 basis points in the first quarter of each year. Delinquency in the period was also aided by improved performance in the personal loan portfolio. The 90+ NPL ratio increased to 5.5%, in line with the expected stacking behavior of the buckets. Much like in other quarters, Nu continues to outperform the industry on a like-for-like basis, across different income bands, and with an even more pronounced comparative advantage for the lower income bands.

Financial Highlights: