In the first bullet under Financial Highlights, the figure for
Adjusted Net Income Q4´22 has been corrected to $113.8 million.
The updated release reads:
NU HOLDINGS LTD. REPORTS FOURTH QUARTER AND
FULL YEAR 2022 FINANCIAL RESULTS
Nu Holdings Ltd. (NYSE: NU | B3: NUBR33), (“Nu” or the
“Company”), one of the world’s largest digital financial services
platforms, released today its Fourth Quarter & Full Year 2022
financial results. Financial results are expressed in U.S. dollars
and are presented in accordance with International Financial
Reporting Standards (IFRS). The full earnings release has been made
available on the Company’s Investor Relations website at
www.investors.nu, as well as the details of the Earnings Conference
Call Nu will hold today at 5:00pm Eastern time/7:00pm Brasília
time.
“Nu posted record results this quarter, with growth across all
metrics and a meaningful increase in profits. Net Income grew to
over $58 million in Q4’22 at holding level, excluding the one-time
non-cash effects of the CSA termination announced last November. We
reached a total of 75 million customers in Brazil, Mexico and
Colombia, increasing engagement, cross-sell and up-sell –all to
consolidate Nu’s position as Brazil’s fifth largest financial
institution in terms of active customers. In Brazil specifically,
we saw net income grow to $138 million in the last quarter, with an
annualized ROE of 35% – among the highest in the industry,
providing evidence for the profit potential of our business model.
Despite the macroeconomic challenges of 2022, Nu was able to beat
every key metric: maintained accelerated growth, gained share in
products and markets, kept delinquency in check through superior
credit underwriting, and improved operating leverage,” says David
Vélez, founder and CEO.
Q4’22 & Full Year´22 Results Snapshot
Below are Q4’22 and FY’22 performance highlights of Nu Holdings
Ltd.:
Operating Highlights:
- Customer growth: Nu added 4.2 million customers in Q4’22
and 20.7 million in 2022, closing the year with a total of 74.6
million customers globally. This represents a 38% growth
year-over-year (YoY), which solidifies Nu's position as Brazil’s
fifth largest financial institution and Latin America's sixth
largest, both by number of active customers.
- Engagement and activity rates: Monthly Average Revenue
per Active Customer (ARPAC) increased to $8.2, expanding 37% YoY on
a FX neutral basis (FXN)1. This expansion is motivated by the
increase of primary banking relationship with customers, the
maturation of customers cohorts, and the rollout of new products
that foster further cross-sell as well as growing transaction and
purchase volumes (up-sell). Activity rate2 hit yet another
historical mark at 82%. Nu has become the primary banking
relationship for over 58% of the monthly active customers that have
been with Nu for over a year.
- Low-cost operating platform: Consistently stable
throughout the quarters, Monthly Average Cost to Serve Per Active
Customer at year-end was at $0.9, reflecting Nu’s focus on
operating efficiency while delivering a sustained expansion of its
ecosystem at scale. The company’s efficiency ratio, which reflects
Nu’s operating leverage, has improved consistently throughout the
past four consecutive quarters to reach an all-time low at 47.4%,
already comparable with incumbent levels in the region and yet with
far more potential as the company continues to expand with one of
the lowest cost to acquire in the incumbent and fintech
industry.
- Asset Quality: Remained within expectations with 15-90
NPL ratio dropping 50 points-base in Q4´22 to 3.7%, while 90+NPL
reached 5.2%. The improvement in early delinquency indicator is
explained firstly by better credit performance from Nu’s loan
portfolio in response to management actions adopted in Q2, and
usual positive seasonality in Q4. Nu continues to outperform the
industry on a like-for-like basis, across different income bands,
and with an even more pronounced comparative advantage for the
lower income bands.
Financial Highlights:
- Net & Adjusted Income: Nu reported a Net Income of
$58 million for Q4´22, delivering its second consecutive quarter of
profit, excluding the one-time non-cash effect of the CSA
termination announced in November 2022, which amounts to $355.6
million. Regarding Adjusted Net Income3 the company reported $113.8
million in Q4´22. In Brazil specifically, Net Income grew to $138
million in the last quarter with an annualized ROE of 35%, one of
the highest in the industry.
- Revenue: Nu posted $1.45 billion in revenues for Q4’22
and $4.8 billion for FY´22, an all time record high with a 168%
annual expansion YoY FXN. This comes as a result of the compounding
effect of customer growth and higher levels of customer
monetization in Brazil, which alone responded for $4.5 billion of
2022 total revenues.
- Gross Profit: Nu’s Q4’22 gross profit expanded 137% to
$578.3 million, while annual gross profit increased 126% YoY FX to
a record of $1.66 billion. Gross profit margin expanded
significantly to 40% for the quarter and 35% for the year,
reinforcing Nu’s operational leverage capacity, effectiveness in
adequately pricing credit and adapting fundings costs according to
macro circumstances.
- Capital: Nu strengthened its position as one of the best
capitalized players in the region with its adjusted capital
reaching $3.8 billion.
- Liquidity: Nu maintains significant excess liquidity
with a loan-to-deposit ratio of 25%. On December 31st, 2022, Nu had
an interest-earning portfolio of $4 billion, while total deposits
were four times this amount at $15.8 billion.
Business highlights:
- Performance and Growth in Brazil: With the consolidation
of operations in the country, Brazil accounted for 93% ($4.5
billion) of total revenues in 2022, while Net Income grew to $185
million, from a $20 million loss in 2021. Adjusted Net Income grew
to $282 million, from $50 million in 2021. Nu ended 2022 as
Brazil's fifth largest financial institution in numbers of active
customers and Latin America's sixth largest one. In terms of total
customers, Nu expanded its Brazilian customer base to 70.9 million,
which represents 44% of the country’s adult population. These
results highlight not only the success achieved so far in the
Brazilian market, but the potential lying ahead as the company
continues to escalate its business and drive further client
engagement. Credit card purchase volume increased 54% for Q4’22 and
73% for the Full Year YoY FXN, to US$ 23.8 billion and $81.0
billion, respectively. Nu holds 12% of the local credit card market
share in terms of purchase volume.
- International Expansion: In Mexico, its second largest
market, Nu’s customer base exceeded 3.2 million at the end of 2022,
reporting a 129% growth. As per the last available data from August
2022, Nu's market share in terms of new cards issued in the country
approached 29%, while share in terms of purchase volumes for credit
cards already achieved 5%. In Colombia, Nu delivered its strongest
growth in relative terms by reaching 565,000 customers and now
accounting for 38% of the new credit cards in the market, as per
latest available information.
- Multi-Product Platform: Nu keeps delivering at launching
and expanding its products portfolio with credit cards, NuAccounts
and Personal loans reaching approximately 34 million, 54 million
and 5 million active customers, respectively. NuInvest reached 7
million active customers, likely positioning itself as the largest
digital investments platform in Latin America. NuCripto grew to 1.3
million active customers since its full rollout in July 2022, and
the base of SMEs customers expanded 79% YoY to 2.5 million at the
end of 2022. Insurance ended 2022 with more than 962 thousand
active policies.
Footnotes
1 FX neutral measures were calculated to present what such
measures in preceding periods/years would have been had exchange
rates remained stable from these preceding periods/years until the
date of the Company’s more recent financial information. 2 Activity
rate is defined as monthly active customers divided by the total
number of customers as of a specific date. 3 Adjusted Net Income
(Loss) is a non-IFRS measure calculated using Net Income adjusted
for expenses related to Nu's share-based compensation as well as
the tax effects related to these items, among others. For more
information, please see “Non-IFRS Financial Measures and
Reconciliations – Adjusted Net Income Reconciliation".
CONFERENCE EARNINGS CALL
DETAILS
Nu will hold a Conference Earnings Call
today at 5:00pm Eastern time/7:00pm Brasília time with simultaneous
translation in Portuguese and English.
To pre-register for this call, please
click here
A replay of the webcast will be made
available after the call on the Investor Relations page: click
here.
Note on forward-looking statements and non-IFRS financial
measures
This release speaks at the date hereof and the Company is under
no obligation to update or keep current the information contained
in this release. Any information expressed herein is subject to
change without notice. Any market or other third-party data
included in this release has been obtained by the Company from
third party sources. While the Company has compiled and extracted
the market data, it can provide no assurances of the accuracy and
completeness of such information and takes no responsibility for
such data.
This release contains forward-looking statements. All statements
other than statements of historical fact contained in this release
may be forward-looking statements and include, but are not limited
to, statements regarding the Company’s intent, belief or current
expectations. These forward-looking statements are subject to risks
and uncertainties, and may include, among others, financial
forecasts and estimates based on assumptions or statements
regarding plans, objectives and expectations. Although the Company
believes that these estimates and forward-looking statements are
based upon reasonable assumptions, they are subject to several
risks and uncertainties and are made in light of information
currently available, and actual results may differ materially from
those expressed or implied in the forward-looking statements due to
various factors, including those risks and uncertainties included
under the captions “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” in our
prospectus dated December 8, 2021 filed with the Securities,
Exchange Commission pursuant to Rule 424(b) under the Securities
Act of 1933, as amended, and in our Annual Report on Form 20-F for
the year ended December 31, 2021, which was filed with the
Securities and Exchange Commission on April 20, 2022 and the
Reference Form filed with the Brazilian Securities and Exchange
Commission also on April 20, 2022. The Company, its advisers and
each of their respective directors, officers and employees disclaim
any obligation to update the Company’s view of such risks and
uncertainties or to publicly announce the result of any revision to
the forward-looking statements made herein, except where it would
be required to do so under applicable law. The forward-looking
statements can be identified, in certain cases, through the use of
words such as “believe,” “may,” “might,” “can,” “could,” “is
designed to,” “will,” “aim,” “estimate,” “continue,” “anticipate,”
“intend,” “expect,” “forecast”, “plan”, “predict”, “potential”,
“aspiration,” “should,” “purpose,” “belief,” and similar, or
variations of, or the negative of such words and expressions.
The financial information in this document includes forecasts,
projections and other predictive statements that represent the
Company’s assumptions and expectations in light of currently
available information. These forecasts, projections and other
predictive statements are based on the Company’s expectations and
are subject to variables and uncertainties. The Company’s actual
performance results may differ. Consequently, no guarantee is
presented or implied as to the accuracy of specific forecasts,
projections or predictive statements contained herein, and undue
reliance should not be placed on the forward-looking statements in
this press release, which are inherently uncertain.
In addition to IFRS financials, this release includes certain
summarized, non-audited or non-IFRS financial information. These
summarized, non-audited or non-IFRS financial measures are in
addition to, and not a substitute for or superior to, measures of
financial performance prepared in accordance with IFRS. References
in this presentation to “R$” refer to the Brazilian real, the
official currency of Brazil.
About Nu
Nu is one of the world’s largest digital financial services
platforms, serving around 75 million customers across Brazil,
Mexico and Colombia. As one of the leading technology companies in
the world, Nu leverages proprietary technologies and innovative
business practices to create new financial solutions and
experiences for individuals and SMEs that are simple, intuitive,
convenient, low-cost, empowering and human. Guided by a mission to
fight complexity and empower people, Nu is fostering the access to
financial services across Latin America, connecting profit and
purpose to create value for its stakeholders and have a positive
impact on the communities it serves. For more information, please
visit www.nubank.com.br
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230214005795/en/
Investors Relations Jorg Friedemann
investors@nubank.com.br
Media Relations Leila Suwwan press@nubank.com.br
Nu (NYSE:NU)
Historical Stock Chart
From Dec 2024 to Jan 2025
Nu (NYSE:NU)
Historical Stock Chart
From Jan 2024 to Jan 2025
