Nubank Posts 50 Percent Rise in Fourth Quarter Net Profit
Nubank reported a 50 percent rise in fourth-quarter profit to 894.8 million dollars. Total revenue grew 45 percent as the customer base reached 131 million.
The digital banking giant Nu Holdings Ltd.[Symbol:{ "assets":{ "symbol":"NU" } }] reported a significant surge in its financial performance for the fourth quarter. The company, which operates the popular digital lender Nubank, saw its net profit climb to $894.8 million, marking a 50% increase compared to the same period in the previous year.
Total revenue for the October-to-December quarter reached $4.86 billion, representing a 45% year-over-year growth. This expansion was accompanied by a strengthening of the company's profitability metrics, with the return on equity (ROE) rising to 33%, up from 29% a year earlier.
The lender's footprint continues to grow across Latin America, serving 131 million customers across Brazil[Country:{ "assets":{ "country":"BR" } }], Mexico[Country:{ "assets":{ "country":"MX" } }], and Colombia[Country:{ "assets":{ "country":"CO" } }]. Furthermore, the company has begun laying the groundwork for a potential expansion into the United States[Country:{ "assets":{ "country":"US" } }].
Guilherme Lago, the Chief Financial Officer of the firm, told Reuters that the robust results were driven by a combination of an expanding customer base, increased revenue per active user, and a stable cost to serve.
"This brings positive leverage to revenue," Lago stated.
In terms of credit performance, the total loan portfolio expanded by 40% to reach $32.7 billion. Despite the rapid growth, credit quality remained stable, with the over-90-day delinquency rate improving slightly to 6.6%, a decrease of 0.1 percentage point from the previous reporting period.
