Nu Holdings stock jumps 6.8% on better-than-expected Q2 results

SÃO PAULO - Nu Holdings Ltd. (NYSE:NU), one of the world's largest digital banking platforms, reported second quarter earnings that exceeded analyst expectations, driving shares up 6.8% in after-hours trading.

The fintech company posted adjusted earnings per share of $0.10, beating the analyst estimate of $0.09. Revenue surged to $2.85 billion, surpassing the consensus forecast of $2.61 billion and marking a 65% year-over-year increase on a foreign exchange neutral basis.

Nu's customer base grew to 104.5 million, up 25% YoY, with 5.2 million new customers added in Q2. The company reported net income of $487 million, more than doubling from $225 million in the same quarter last year. Return on equity reached 28%, positioning Nu as one of the most profitable financial services companies globally.

"Our second quarter 2024 results reaffirm the strength of our business model, efficiency in our execution, and resilience of our credit underwriting," said David Vélez, founder and CEO of Nubank. "Net income has more than doubled year over year, reaching US$ 487 million this quarter, with expanding risk adjusted margins and one of the highest ROEs in the industry at 28%."

The company's gross profit hit a record high of $1.4 billion, up 88% YoY on a foreign exchange neutral basis. Nu's efficiency ratio improved to 32%, down 340 basis points YoY.

Nu's strong performance in Brazil continued, with 95.5 million customers by quarter-end. The company also reported significant growth in Mexico and Colombia, with total deposits reaching $3.3 billion and $220 million in those countries, respectively.

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Source: Investing.com