[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  LongYield [@LongYield](/creator/twitter/LongYield) on x 4481 followers Created: 2025-05-26 18:41:57 UTC $NU Nu Holdings Ltd. Earnings Call Key Highlights: 📊 Robust Customer Growth Across Core Markets • Total customer base rose by XXX million in Q1 2025, reaching XXX million: 105M in Brazil, 11M in Mexico, and 3M in Colombia. • Activity ratio held above XX% with nearly XXX million monthly active users, signifying deep customer engagement. • In Brazil, XX% of adults are Nu customers, with ~60% using Nu as their primary bank. However, Nu captures just X% of gross profit market share, indicating vast monetization potential. • Mexico customer base grew XX% YoY with deposits exceeding $5B and revenue nearing $245M, bolstered by newly obtained banking license. 💳 Strong Credit Portfolio Expansion with Balanced Risk Management • Credit portfolio reached $XXXX billion, growing XX% YoY (FX-neutral), with lending products expanding faster than credit cards. • Unsecured loans hit BRL XXXX billion in originations (64% YoY growth), driven by refined AI-powered underwriting and strong execution. • Secured lending balances increased XXX% YoY; private payroll loans are a strategic entry into high-margin segments dominated by incumbents. • Credit card interest-earning installments rose to XX% of total portfolio, supported by Pix financing and other transactional credit products. 📉 Proactive Approach to Credit Quality and Risk Adjustments • 15–90 days NPL ratio rose to XXX% (+60bps QoQ), below typical Q1 seasonal trends; 90+ NPLs declined 50bps to 6.5%, indicating lagged benefit from prior quarters' low delinquency. • Credit loss allowance (CLA) increased to $974M, mainly due to seasonality and portfolio growth. Risk-adjusted NIM declined to 8.2%. • Coverage ratios increased, reflecting conservative provisioning aligned with Nu’s expected credit loss model. • Debt renegotiation campaign “Recomeço” launched to reactivate previously delinquent customers under strict behavioral and collateral criteria. 🏦 Healthy Deposit Growth and Long-Term Funding Strategy • Deposits grew XX% YoY to $31.6B (FX-neutral); Mexico and Colombia contributed the most, while Brazil saw a modest seasonal X% decline. • Strategic focus on growing local deposit franchises in Mexico and Colombia to fund credit at lower cost and support data-driven underwriting. • Near-term funding costs are expected to moderate as deposit bases mature and pricing strategies are optimized. • Loan-to-deposit ratio remains conservative; re-leveraging is expected to drive further profitability without immediate duration mismatches. 📈 Strong Revenue and Net Income Performance with Efficiency Gains • Net interest income (NII) hit a record $1.8B, up XX% YoY; consolidated NIM at XXXX% (-20bps QoQ), impacted by Mexico/Colombia investments. • Gross profit rose XX% YoY to $1.3B (FX-neutral); sequential margin decline driven by Brazil’s higher SELIC rate and regional deposit expansion. • Net income reached $557M, up XX% YoY; ROE at XX% despite holding $4B in excess capital. • Cost-to-income efficiency ratio improved to XXXX% (26.7% ex-one-off DTA), reinforcing Nu’s position as a global leader in fintech operating efficiency. 🇧🇷 Brazil: Model Maturity Validates Scalable Profitability • Brazil ARPAC continues upward trajectory, with cohort revenues surpassing $XX after 7–8 years. • Net interest margin in Brazil stable at 21.8%, with re-leveraging expected to drive future expansion despite higher SELIC. • Operating leverage remains a key profit driver; cost-to-serve remains below $1/customer. • Brazil business achieves high ROE while continuing to deliver superior customer experience at disruptive pricing levels. 🌎 Mexico and Colombia on Path to Profitability via Strategic Investments • Nu received a full banking license in Mexico, accelerating capability to offer broader product suite. • Mexico’s funding cost currently elevated due to early-stage deposit building; expected to decrease as base matures. • Colombia’s scale and profitability remain nascent, but funding growth is helping derisk the lending model. • Both markets following Brazil’s successful blueprint—lower cost base, data-driven credit growth, and long-term deposit building. 🚀 Digital Model Delivers Operating Leverage and Expansion Optionality • Customer cohorts show revenue increases over time with minimal incremental cost, validating the strength of Nu’s operating leverage. • Ongoing investment in tech, AI-driven underwriting, and process automation continue to reduce cost per customer. • CEO emphasized disciplined reinvestment of earnings to expand principality and grow share of financial services profit pool. • Early signs of successful expansion into secured lending and payroll-backed credit demonstrate capacity to penetrate traditional bank strongholds. 🌐 International Expansion Remains a Longer-Term Ambition • CEO confirmed continued prioritization of Brazil, Mexico, and Colombia in the near term. • Internationalization beyond Latin America remains part of the 5–10 year vision, supported by scalable systems and digital model success. • No specific announcements yet on new market entry, but internal progress and strategic groundwork are underway. • Future global growth will leverage learnings from Brazil’s operating model and Mexico’s regulatory pathway. 💼 Asset Mix and Capital Strategy Well-Calibrated for Long-Term Returns • Capital levels remain strong with $3B held at the holding company; Nu continues to exceed internal return hurdles for new markets and products. • Secured lending expansion (FGTS, public/private payroll) offers high-margin, low-risk growth with minimal cannibalization of unsecured books. • Risk-adjusted returns remain a guiding metric; management affirmed long-term prioritization of ROE over short-term margin optimization. • Private payroll loans expected to be a key driver of future growth, leveraging digital-first origination and UX advantages.  XXX engagements  **Related Topics** [colombia](/topic/colombia) [mexico](/topic/mexico) [brazil](/topic/brazil) [quarterly earnings](/topic/quarterly-earnings) [$nu](/topic/$nu) [nu holdings](/topic/nu-holdings) [stocks financial services](/topic/stocks-financial-services) [Post Link](https://x.com/LongYield/status/1927072733608706419)
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LongYield @LongYield on x 4481 followers
Created: 2025-05-26 18:41:57 UTC
$NU Nu Holdings Ltd. Earnings Call Key Highlights:
📊 Robust Customer Growth Across Core Markets • Total customer base rose by XXX million in Q1 2025, reaching XXX million: 105M in Brazil, 11M in Mexico, and 3M in Colombia. • Activity ratio held above XX% with nearly XXX million monthly active users, signifying deep customer engagement. • In Brazil, XX% of adults are Nu customers, with ~60% using Nu as their primary bank. However, Nu captures just X% of gross profit market share, indicating vast monetization potential. • Mexico customer base grew XX% YoY with deposits exceeding $5B and revenue nearing $245M, bolstered by newly obtained banking license. 💳 Strong Credit Portfolio Expansion with Balanced Risk Management • Credit portfolio reached $XXXX billion, growing XX% YoY (FX-neutral), with lending products expanding faster than credit cards. • Unsecured loans hit BRL XXXX billion in originations (64% YoY growth), driven by refined AI-powered underwriting and strong execution. • Secured lending balances increased XXX% YoY; private payroll loans are a strategic entry into high-margin segments dominated by incumbents. • Credit card interest-earning installments rose to XX% of total portfolio, supported by Pix financing and other transactional credit products. 📉 Proactive Approach to Credit Quality and Risk Adjustments • 15–90 days NPL ratio rose to XXX% (+60bps QoQ), below typical Q1 seasonal trends; 90+ NPLs declined 50bps to 6.5%, indicating lagged benefit from prior quarters' low delinquency. • Credit loss allowance (CLA) increased to $974M, mainly due to seasonality and portfolio growth. Risk-adjusted NIM declined to 8.2%. • Coverage ratios increased, reflecting conservative provisioning aligned with Nu’s expected credit loss model. • Debt renegotiation campaign “Recomeço” launched to reactivate previously delinquent customers under strict behavioral and collateral criteria. 🏦 Healthy Deposit Growth and Long-Term Funding Strategy • Deposits grew XX% YoY to $31.6B (FX-neutral); Mexico and Colombia contributed the most, while Brazil saw a modest seasonal X% decline. • Strategic focus on growing local deposit franchises in Mexico and Colombia to fund credit at lower cost and support data-driven underwriting. • Near-term funding costs are expected to moderate as deposit bases mature and pricing strategies are optimized. • Loan-to-deposit ratio remains conservative; re-leveraging is expected to drive further profitability without immediate duration mismatches. 📈 Strong Revenue and Net Income Performance with Efficiency Gains • Net interest income (NII) hit a record $1.8B, up XX% YoY; consolidated NIM at XXXX% (-20bps QoQ), impacted by Mexico/Colombia investments. • Gross profit rose XX% YoY to $1.3B (FX-neutral); sequential margin decline driven by Brazil’s higher SELIC rate and regional deposit expansion. • Net income reached $557M, up XX% YoY; ROE at XX% despite holding $4B in excess capital. • Cost-to-income efficiency ratio improved to XXXX% (26.7% ex-one-off DTA), reinforcing Nu’s position as a global leader in fintech operating efficiency.
🇧🇷 Brazil: Model Maturity Validates Scalable Profitability • Brazil ARPAC continues upward trajectory, with cohort revenues surpassing $XX after 7–8 years. • Net interest margin in Brazil stable at 21.8%, with re-leveraging expected to drive future expansion despite higher SELIC. • Operating leverage remains a key profit driver; cost-to-serve remains below $1/customer. • Brazil business achieves high ROE while continuing to deliver superior customer experience at disruptive pricing levels. 🌎 Mexico and Colombia on Path to Profitability via Strategic Investments • Nu received a full banking license in Mexico, accelerating capability to offer broader product suite. • Mexico’s funding cost currently elevated due to early-stage deposit building; expected to decrease as base matures. • Colombia’s scale and profitability remain nascent, but funding growth is helping derisk the lending model. • Both markets following Brazil’s successful blueprint—lower cost base, data-driven credit growth, and long-term deposit building. 🚀 Digital Model Delivers Operating Leverage and Expansion Optionality • Customer cohorts show revenue increases over time with minimal incremental cost, validating the strength of Nu’s operating leverage. • Ongoing investment in tech, AI-driven underwriting, and process automation continue to reduce cost per customer. • CEO emphasized disciplined reinvestment of earnings to expand principality and grow share of financial services profit pool. • Early signs of successful expansion into secured lending and payroll-backed credit demonstrate capacity to penetrate traditional bank strongholds. 🌐 International Expansion Remains a Longer-Term Ambition • CEO confirmed continued prioritization of Brazil, Mexico, and Colombia in the near term. • Internationalization beyond Latin America remains part of the 5–10 year vision, supported by scalable systems and digital model success. • No specific announcements yet on new market entry, but internal progress and strategic groundwork are underway. • Future global growth will leverage learnings from Brazil’s operating model and Mexico’s regulatory pathway. 💼 Asset Mix and Capital Strategy Well-Calibrated for Long-Term Returns • Capital levels remain strong with $3B held at the holding company; Nu continues to exceed internal return hurdles for new markets and products. • Secured lending expansion (FGTS, public/private payroll) offers high-margin, low-risk growth with minimal cannibalization of unsecured books. • Risk-adjusted returns remain a guiding metric; management affirmed long-term prioritization of ROE over short-term margin optimization. • Private payroll loans expected to be a key driver of future growth, leveraging digital-first origination and UX advantages.
XXX engagements
Related Topics colombia mexico brazil quarterly earnings $nu nu holdings stocks financial services