Nu Holdings Ltd. Reports Third Quarter 2023 Financial Results - Seite 2

• Net & Adjusted Income: At a Holding level, Nu continued to drive increased profitability and posted a Net Income of $303.0 million for an annualized ROE of 21%, compared to a $7.8 million profit in Q3’22. Adjusted Net Income³, reached $355.6 million with an annualized adjusted ROE of 25%, compared to an Adjusted Net Income of $63.1 million in Q3’22. It’s important to note that Nu is achieving these strong levels of profitability while maintaining substantial investments in future products and geographic expansion, and simultaneously delivering a robust revenue growth rate.
• Revenue: Nu posted $2.1 billion in revenues, a new all-time record high, which represents a 53% increase FXN from Q3’22 and a 4x increase in only two years FXN. This comes as a result of the compounding effect of customer growth and higher levels of customer monetization.
• Gross Profit: Nu’s Q3’23 gross profit expanded to $915 million, a 100% increase YoY FXN. Gross profit margin expanded once more to 43% from 33% in Q3’22, solidifying the upward trajectory initiated last year.
• Capital: Nu strengthened its position as one of the best-capitalized players in the region with a Capital Adequacy Ratio (CAR) in Brazil of 11%, well above the minimum required of 6.75% applicable to the conglomerate as of September 2023, according to the Brazilian Central Bank resolution. Nu Holdings has $2.3 billion in excess cash, which can be strategically allocated to the markets and operating subsidiaries as Nu continues to grow.
• Liquidity: On September 30, 2023, Nu had an interest-earning portfolio (IEP) of $6.7 billion, while total deposits were at $19.1 billion, up 26% YoY FXN. Nu continues optimizing its balance sheet, as reflected in its 35% loan-to-deposit ratio which increased from 25% a year ago.

Business highlights:

• Performance and Growth in Brazil: Nu’s growth trajectory continues, surpassing 1.5 million new customers per month. Over the past 12 months, Nu’s customer base in Brazil has outpaced that of the five largest incumbent banks combined. This growth, both in terms of size and engagement, combined with the operational leverage of Nu’s platform and the maturation of early products, has contributed to the significant acceleration of income growth.
• International Expansion: In Mexico, Nu’s customer base grew to 4.3 million, driven by the rollout and expansion of the savings account product Cuenta Nu, which currently has over 2.4 million customers, as well as the success of the member-get-member program. In Colombia, Nu’s customer base expanded to around 800,000 customers, and, similarly to Mexico, the growth trajectory is expected to accelerate with the upcoming launch of the savings product.
• Multi-Product Platform: Nu’s product portfolio keeps growing with credit cards, NuAccounts, and personal loans reaching approximately 39 million, 65 million, and 7 million active customers, respectively. There are currently over 1 million active insurance policies, and over 12 million investment active customers, which translates to Nu likely maintaining its positioning as the largest digital investment platform in Latin America in number of clients. Furthermore, in Brazil, Nu has made substantial progress in broadening its product portfolio, with the recent introduction of Payroll loans for federal public servants, retired and pensioners who are beneficiaries of the INSS (National Institute of Social Security) and FGTS-backed loans, as well as the consolidation as leader of the Pix space with ~23% of all transactions going through Nu.

Footnotes