Nu Holdings Ltd. Reports First Quarter 2024 Financial Results

Nu Holdings Ltd. (NYSE: NU), (“Nu” or the “Company”), one of the world's largest digital banking platforms, released today its First Quarter 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 6:00 pm Eastern time/7:00 pm Brasília time.

“In May 2024, we announced reaching the 100 million customer mark, a privilege we earned through our steadfast focus on solving people’s needs with true product innovation and the highest quality of service. Our results for the first quarter of 2024 show how our business model is also fuelled by expanding revenue and stable cost per customer, generating growth in revenue to $2.7 billion and in net income to $379 million. We printed a 23% return-on-equity for Nu Holdings, among best-in-class financial institutions in Latin America, even though our holding company continues to be over-capitalized and our operations in Mexico and Colombia are still in the early phases of getting to profitability. The operations of these new markets are showing more accelerated results in number of customers, deposits, revenue and market share of credit card purchase volume than Brazil in a comparable time frame,” said David Vélez, founder and CEO of Nubank.

Q1’24 Results Snapshot
Below are the Q1’24 performance highlights of Nu Holdings Ltd.:

Operating Highlights:

• Customer growth: Nu added 5.5 million customers in Q1’24, reaching a total of 99.3 million customers globally by March 31, 2024, compared to 59.6 million only two years ago. Nubank is now the fourth-largest financial institution in Latin America by number of customers, and one of the fastest-growing digital financial services platforms worldwide. After the closing of Q1’24, Nubank announced it had surpassed the mark of 100 million customers in Latin America with over 92 million in Brazil, 7 million in Mexico, and around 1 million in Colombia.
• Engagement and activity rates: Monthly Average Revenue per Active Customer (ARPAC) grew to $11.4 in Q1’24, a 30% expansion YoY on FX neutral basis (FXN)¹, with more mature cohorts already at $27. Nu continues to develop principality among its customer base and has an activity rate² of 83.2%.
• Low-cost operating platform: Monthly Average Cost to Serve Per Active Customer remained virtually unchanged and below the dollar level at $0.9, demonstrating the strong operating leverage of the business model. The company’s efficiency ratio stood at 32.1% in Q1’24, which strengthens Nu’s position as one of the most efficient companies in Latin America.
• Asset Quality: in Brazil, consumer credit portfolio’s 15-90 NPL ratio was 5.0%, in line with expectations and historical seasonality. The 90+ NPL ratio was 6.3% also in line with the expected stacking behavior of the early delinquency buckets from previous periods. Part of the growth on NPL has been coming from expansions down the credit spectrum, as the company continues to see meaningful opportunities to expand its credit portfolio aiming for attractive returns and robust resilience. When excluding credit and looking at interest earnings balances only, Nu’s NPL has been trending significantly down both on 15-90 and 90+.

Financial Highlights: