📊 Nu Holdings (NYSE:NU) posted strong Q2 2024 results, further establishing its role as a leading digital bank in Latin America. Revenue increased by 65% year-over-year to $2.8 billion, while net income jumped 134% to $487 million. The company now serves 104.5 million customers, rapidly expanding in Brazil, Mexico, and Colombia through effective customer acquisition and cross-selling strategies.
🚀 The number of active customers grew by 25% YoY, with 1.2 million net additions monthly in Brazil, where Nu now covers 56% of the adult population. Mexico and Colombia also saw strong growth, reaching 7.8 million and 1.3 million customers, respectively. Despite FX headwinds, Average Revenue Per Active Customer (ARPAC) increased to $11.2, up 30% YoY, while mature cohorts generate over $25 per user, indicating strong long-term potential.
💰 Nu’s diversified product offering boosts profitability, with credit card receivables up 39% YoY and the lending portfolio expanding by 92%. Gross profit hit $1.4 billion, with a 47.7% margin. The cost-to-serve remains low at $0.90 per active customer, underscoring the company’s efficiency. Return on Equity (ROE) is now 28%, making Nu one of the most profitable fintechs globally.
📈 The company’s digital-first approach enables it to capture market share quickly, particularly among underbanked populations. The lending business, which now accounts for 24% of the credit portfolio, has shown strong growth. With $8 billion in cash reserves and low funding costs, Nu is well-positioned for further expansion and product development.
🔮 With new products and services in the pipeline, Nu is poised for further expansion and profitability. Effective use of data and a cost-efficient structure make Nu a unique investment in Latin America’s growing fintech landscape.
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IMPORTANT: This article is of general nature only and readers should obtain advice specific to their circumstances from professional advisers.