Nubank Announces Strong Second-Quarter Financials

Nubank has released its Q2 earnings, showcasing a standout revenue of $1.9 billion, marking a 60% growth on a year-over-year basis.

Furthermore, Nubank’s customer base has grown by 28% year-over-year, now totaling 83.7 million. Notably, in Brazil, a key market for Nubank, one in every two adults is a Nu customer. The company projects its growth to bring in roughly 1.5 million new customers each month.
The bank’s quarterly net income has seen a significant rise, increasing by 50% from the last quarter to hit $225 million. Impressively, the revenue per active customer has risen to over $9, marking an 18% growth year-on-year. This has been achieved while maintaining an average monthly customer service expense of only $0.8.
Highlighting its operational prowess, the bank reported an efficiency ratio of 35.4%. This solid achievement underscores Nubank’s stature as one of the most operationally efficient enterprises in Latin America.
Veligera’s Analysis:
Our analysis indicates that Nubank is a fundamentally resilient entity with a positive valuation. Despite the broader market experiencing a dip following earnings reports, Nubank stands out with its growth trajectory.
Considering its current performance and a promising outlook for the upcoming quarter, we advise potential investors to think about purchasing Nubank shares during market pullbacks.
For those already holding Nubank shares in their portfolio, we recommend retaining them.

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