Nubank Q4 Earnings: 87% Profit Surge, Revenue Growth
Nu Holdings (NU), the parent company of Brazilian digital lender Nubank, reported a significant increase in its fourth-quarter financial results.
Adjusted net profit soared by 87% year-over-year to $610 million, exceeding analysts' estimates of $567 million. Revenue grew by 50% (excluding foreign exchange effects) to $2.99 billion, although it fell short of the consensus estimate of $3.29 billion.
Nubank's annualized adjusted return on equity improved to 32%, up from 26% a year earlier. The company's credit portfolio expanded by 45% year-on-year to $20.7 billion, despite a slight decline from the previous quarter.
In Brazil, Nubank's largest market, the 90-day-plus default ratio for loans decreased by 0.2 percentage points to 7%, although it remains higher than the 6.1% reported a year ago.
Despite the strong financial performance, Nu Holdings shares declined by approximately 6% in after-hours trading following the earnings release.