Nu Holdings Ltd. Class A ( (NU) ) has released its Q4 earnings. Here is a breakdown of the information Nu Holdings Ltd. Class A presented to its investors.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Nu Holdings Ltd., a leading digital banking platform, has released its financial results for the fourth quarter of 2024, showcasing its significant growth in the digital financial services sector. The company’s operations primarily span across Brazil, Mexico, and Colombia, where it offers an array of digital banking solutions.
In its latest earnings report, Nu Holdings reported a substantial increase in both customer base and financial performance. The company added 4.5 million new customers in the fourth quarter, reaching a total of 114.2 million customers, marking a year-over-year increase of 20.4 million. Moreover, Nu achieved a net income of $552.6 million, reflecting a significant rise from the previous year’s $360.9 million.
The company’s revenue surged by 50% year-over-year to $3.0 billion, fueled by a 23% rise in the monthly average revenue per active customer, which now stands at $10.7. Additionally, deposits grew by 55% to $28.9 billion, and the total receivables across its credit card and lending portfolios expanded by 45% to $20.7 billion. These metrics underscore Nu’s robust expansion strategy and its focus on enhancing its digital banking footprint.
Nu’s asset quality indicators showed improvement, with the 15-90 NPL ratio for the Brazil Consumer Credit Portfolio declining to 4.1%, and the 90+ NPL ratio decreasing to 7.0%. Despite a slight decrease in the risk-adjusted net interest margin, the company maintained a strong cost of risk management, reflecting its strategic focus on stable growth and financial health.
Looking forward, Nu Holdings remains optimistic about its growth trajectory, with a commitment to leveraging its digital platform for deeper customer engagement and improved monetization. The company’s management is focused on further scaling its operations while maintaining efficiency through continued investments in technology and innovation.
