Nubank Reports 42% Profit Rise; Shares Surge

Nu Holdings (NU.N), the parent company of Brazilian digital lender Nubank, posted a 42% year-on-year increase in net profit on a foreign exchange-neutral basis, driving its shares up more than 8% in after-hours trading on Thursday.

The company, which serves nearly 123 million clients across Brazil, Colombia, and Mexico, reported $637 million in second-quarter net profit. CFO Guilherme Lago attributed the growth to operational leverage and revenue expansion but noted that the drivers of growth are shifting. “If in the last three to five years a major part of our growth came from adding new customers, in the next three to five years a major part of our revenue growth in Brazil will come from deepening the relationship with these customers,” he said.

Nubank’s annualized return on equity remained at 28%, consistent with the prior year. Analysts from Citi described the quarter as “strong,” highlighting both net profit exceeding expectations and a recovery in net interest margins.

The lender’s total loan book rose 8% from the first quarter to $27.3 billion, with personal loans contributing to growth alongside existing credit card debt. The early default ratio declined to 4.4%, down 0.3 percentage points from the prior quarter, while the over-90-day delinquency ratio edged up to 6.6%, reflecting seasonal trends and short-term delinquencies in Q1.

Lago said the bank plans to continue expanding unsecured lending throughout 2025 and 2026, provided asset quality remains stable. “Until today… everything seems to be super on track,” he added.