Nu Holdings Ltd. (NU)

On 13 August Nu Holdings reported second-quarter 2026 net income of $1.1 billion, its first above $1 billion, up 17 percent from the first quarter and 49 percent from a year earlier 1. Return on equity, profit measured against shareholders' money, closed the quarter at 33 percent 1. Nu added about 4 million customers in the quarter and reached 139 million 1.

Gross profit reached $2.4 billion, up 43 percent from a year earlier 1. It is revenue less funding costs, transaction costs and expected credit losses 2. Credit made 41 percent of that, fees 25 percent and float 34 percent 1.

Float is the income Nu earns by investing the deposits customers leave with it 7. Loans 90 days or more overdue rose 35 basis points to 6.9 percent, which Nu tied largely to the seasonal arrival of first-quarter early delinquencies 1.

Since the quarter closed, Nu opened its Mexican bank, began US products through a partner bank on 10 September, and agreed to buy a Brazilian bank for its licence 168. Nu announced that it will host its first Investor Day on 8 December in New York, and third-quarter results are not yet out 12.

Nu began in 2013 with a small team and launched its first product, a no-annual-fee Mastercard credit card, in Brazil in 2014 2. The company says Brazil had some of the highest banking fees in the world, which is the gap it aimed at 2. It started with one product on purpose, because credit cards let it earn customer trust and gather data on financial behavior for later products 2.

In 2017 Nu added NuAccount, a free account with deposits, transfers and payments, and in 2018 a free prepaid card, and the annual report counts over 6 million customers by then 2. The report counts over 3 million customers for the first stretch, from 2013 to 2017 2.

From 2019 Nu added personal loans and business accounts for micro-businesses in Brazil, and between 2019 and 2020 it began its international expansion by launching credit cards in Mexico and Colombia 2. In 2020 it moved into life insurance, with Chubb, and bought Easynvest, a Brazilian retail investment platform, completed in 2021 2.

On 9 December 2021 Nu listed on the New York Stock Exchange and raised $2.3 billion in its initial public offering 2. In 2022 it launched NuPay, which lets customers pay for online purchases inside the Nu app, and Money Boxes, a digital savings feature 2.

In 2023 Nu widened lending to secured products, including payroll loans for retirees and public employees and loans backed by a severance fund 2. The annual report's 2019 to 2024 stretch ends at 114 million customers, with 13 million in Mexico and 2.5 million in Colombia 2. Net income was $1,030.6 million in 2023, $1,972.0 million in 2024 and $2,871.7 million in 2025 2.

Revenue rose 37.0 percent in 2025 to $15.77 billion from $11.52 billion in 2024 2. The company attributes the rise to higher interest income from personal loans and credit cards: loan interest income grew 57.4 percent and credit card interest income 20.9 percent 2.

By the end of 2025 Nu had 131 million customers, including 113 million in Brazil, which the annual report says is 62 percent of the population, with an activity rate of 86 percent 2. It had 14 million in Mexico and surpassed 4 million in Colombia 2.

Regulators reshaped the company: Nu Mexico received authorization to organize as a bank in April 2025 5. On 29 January 2026 the US Comptroller of the Currency gave conditional approval for a new national bank 5. On 4 June 2026 the board approved a share repurchase program of up to $1.0 billion over twelve months 17.

Credit cards and lending

Credit is the largest business: in the second quarter of 2026 the credit book stood at $39.4 billion, with $26 billion in credit cards, $10.3 billion in unsecured lending and $3.1 billion in secured lending 1.

Its card began as a no-annual-fee Mastercard, and the premium metal card, Ultravioleta, is aimed at more affluent customers 12. In July Nu launched Croma for what it calls Super Core customers, with a dedicated experience, enhanced credit and broader benefits 1.

Accounts, deposits and investments

Customers' deposits reached $45.3 billion in the second quarter: $36.4 billion in Brazil, $5.7 billion in Mexico and $3.3 billion in Colombia 1. Nu says its cost of deposits held at 88 percent of interbank rates, 3 points lower than a year ago 1.

The account began in 2017 as NuAccount, and the investment platform Nu Investimentos came from the 2021 purchase of Easynvest 2. Nu also sells life insurance with Chubb and a mobile phone plan with Claro 2.

Brazil

Brazil is the main market, with almost 118 million customers and a monthly activity rate above 86 percent 1. Nu says it serves more small businesses than any other financial institution in Brazil 1.

Its Brazilian licences are a payment institution, a credit, financing and investment company and a securities broker, and a banking licence is being added through a purchase 8.

Mexico

Nu Mexico had 15.8 million customers at the end of the second quarter and 16 million in July 1. On 10 July the Mexican banking regulator authorized it to begin operating as a bank, and the company says it adds 12,000 new customers a day 4.

Mexico earned $7 million in the second quarter, half of the previous quarter's $14 million, as provisions for bad loans grew faster than revenue, according to figures reported by EuQueroInvestir from XP Investimentos analysts 13. Nu says Mexico's loan-to-deposit ratio is 35 percent 1.

Colombia

Nu Colombia passed 5 million customers 1. The Rio Times reported that the unit plans to invest about 5 trillion pesos by 2030 7.

The annual report says five banks hold 72 percent of Colombian credit card purchase volume, the gap Nu aims to fill 2.

United States

On 10 September Nu began US products through FDIC-insured Lead Bank: deposit accounts with a 3.50 percent yield and a no-fee credit card with 1.5 percent cash back, Reuters reported 6.

Nu's own US bank charter was conditionally approved by the OCC in January and is now in review by the Federal Reserve and the FDIC 6. The US business is run from Miami by the co-founder Cristina Junqueira 7.

AI and cost to serve

Nu says its foundation model NuFormer is in production for credit cards in Brazil and Mexico and for unsecured lending in Brazil 1. AI agents handle more than 60 percent of customer support conversations in Brazil 1.

The efficiency ratio, which compares operating costs with income, was 19.5 percent, against 21.3 percent a year earlier 17.

People and workforce

David Vélez is the founder and chief executive, and Cristina Junqueira is chief growth officer and chief executive of the US business 72. Lívia Chanes has run Brazil since January 2024 and all of Latin America since 15 July 2026 7.

Rob Livingston became chief financial officer on 13 July, replacing Guilherme Lago, who became a special advisor 10. Livingston came from Visa, where he was chief financial officer for North America 10.

Nu had 10,027 full-time employees on 31 December 2025, up 15 percent from 8,716 a year earlier 2.

Rivals

In Brazilian consumer credit the annual report names Itaú Unibanco, Bradesco, Santander Brasil, Caixa Econômica Federal and Banco do Brasil as main competitors 2. In payments it names MercadoPago, PicPay, PagSeguro and StoneCo, and in investments BTG Pactual, Banco Inter and XP 2.

Current problems

Loans more than 90 days overdue were 6.9 percent of the book, up from 6.5 percent a year earlier 7. A Brazilian law in force since January 2024 caps interest and charges on unpaid card balances at 100 percent of the original debt 7.

Nu reports in dollars but earns mostly in reais and Mexican and Colombian pesos, so a weaker real shrinks its reported dollar results 7. A Brazilian joint resolution standardizes the use of the bank name by regulated institutions, and Nu's purchase of Banco Porto Real is meant to fulfil it 8.

The umbrella, in words

The brands are Nu and Nubank, with Ultravioleta and Croma as higher-income tiers, NuPay for online payments, Nu Investimentos for investing and NuCel, a mobile phone plan with Claro 12.

The annual report's subsidiary list names 44 entities in nine countries 3. The main ones are Nu Pagamentos, which runs credit card and prepaid account operations, Nu Financeira, which makes loans, and Nu Asset Management, a fund manager 3.

Other entities include Nu Crypto in Brazil, Nu Colombia Compañía de Financiamiento, Nu Global AG in Switzerland and Nu North America, a technology hub in the United States 3. Nu agreed on 20 July to buy 100 percent of Banco Porto Real, pending Central Bank approval 8. That bank was established in 1992 and specializes in credit to wholesale clients 9.

Its principal executive offices in São Paulo are about 111,912 square feet under a lease that expires in September 2030, with leased offices in Mexico, Colombia, Uruguay and the United States 2.

David Vélez owns 88.3 percent of the Class B shares, about 74.4 percent of the voting power 2. Baillie Gifford reported owning 6.0 percent of the class on a Schedule 13G amendment dated 30 June 2026 16.

In Brazil, Nu said on 20 July that it agreed to buy Banco Porto Real to add a banking licence, and the completion is subject to approval by the Brazilian Central Bank 8. Nu said the licence adds no capital or liquidity requirements 8.

In Mexico, David Vélez tied the bank authorization to a total projected investment of $4.2 billion through 2030 4. In Colombia, The Rio Times reported plans to invest about 5 trillion pesos by 2030 7.

In the United States, the conditional charter requires Nu to fully capitalize the bank within 12 months and open it within 18 months 5. Junqueira said the bank is expected to start operating next year 6. Vélez said it will take a number of years for the US operation to become profitable 6.

Nu announced its first Investor Day for Tuesday, 8 December 2026 in New York, covering long-term strategy, growth opportunities and drivers of value creation 12. A repurchase program of up to $1.0 billion runs from 4 June 2026 to 3 June 2027 1117.

Nu said new Mexican central bank rules introduced in June, mandatory for all institutions by year-end, will standardize the payment experience across rails 1. It said NuFormer is now in testing for small-business credit and Colombian cards 1.

Reuters reported that Nubank will initially target young customers and the US Hispanic population, with organic growth the main US strategy 6. Vélez said in January that Nu remains fully focused on its core markets in Brazil, Mexico and Colombia while it builds in the United States 5.

The company has also told investors it regularly weighs partnerships, investments and acquisitions, and on 30 September said it was not pursuing a deal with Monzo after press reports of talks 15. Third-quarter results cover July to September 2026 7.