Nubank reaches 80 million customers in Brazil
July 25 2023 - 2:33PM
Business Wire
The company also became the 4th largest financial institution in
the country according to the Central Bank, while diversifying its
portfolio and increasing customer activity; Nu has launched over 25
products and features in 2023.
Nu Holdings Ltd. ("Nu" or the "Company") (NYSE: NU | B3: NUBR33)
surpassed 80 million customers in Brazil, as of July 2023. Along
with its operations in Mexico and Colombia, the company reached 85
million customers across Latin America. This number has more than
doubled in two years, since June 2021, when Nubank had a base of 41
million.
Based on official data from the end of Q2’23, the Brazilian
Central Bank also positioned Nubank as the fourth-largest
financial institution in the country in number of customers. In
October 2022, the company had reached the 5th position, quickly
moving up the rank in comparison to long-established incumbent
banks. Nubank also remains in the top three institutions with the
lowest rate of complaints in the country, reinforcing the company’s
focus on putting the customer first, through its awarded service
and innovative products.
"The sustained growth in our customer base continues to
reinforce the inherent efficiency and potential of our digital
business model. This makes it possible to grow at scale while
providing high-quality and low-cost financial services. We have
robust activity levels above 82% and rising capabilities to
cross-sell and upsell, which have been fueling the company’s
revenues. We continue to invest in growth as we believe there is
still a huge potential to increase market share in several
products”, says David Vélez, Nubank’s founder and CEO.
Internationally, the company now serves 4.5 million customers in
Mexico and Colombia, as of July 2023. Mexico was Nu’s first
international operation, and now offers credit and debit cards,
having recently launched a digital account. Cuenta Nu attracted
over one million people just one month after its official release,
offering 24/7 liquidity and one of the most competitive yield rates
on the market, 9% per year. Nu’s digital account in Mexico allows
access to local deposits and unlocks more growth opportunities by
expanding the customer base at an even faster pace. This product
will also allow Nu to better understand a larger customer base and
thus improve its credit models, an important competitive
advantage.
The launch of a digital account is also in the company’s 2023
roadmap for Colombia – Nubank’s most recent, but fastest-growing
geography, which now offers La Moradita, our no-fee credit
card.
Growing portfolio in Brazil
Nubank’s market share in almost all verticals it operates still
allows a lot of room for growth through cross-sell and up-sell. So
far in 2023, the company has launched over 25 products and features
in Brazil – from new insurance options (Nubank Auto, Nu Vidas
Juntas, and Parcela Segura) to the company’s debut in payroll loans
with NuConsignado.
“Almost half of the Brazilian adult population is already a
Nubank customer. To keep growing our base in this scenario is a
statement to the quality of our products and services”, says Livia
Chanes, Country Manager of Nubank in Brazil. “We’re always
carefully assessing our portfolio to offer the best options that
eliminate complexity and empower people with the tools and the
autonomy to make the best decisions about their money”, she
adds.
The portfolio is also growing for business customers (PJs),
which are now more than 3 million. Beyond an account, and credit
and debit cards, individual microentrepreneurs (MEIs) can count on
Nubank to simplify their business management, with new features
that facilitate tax payment and organization, for example.
Almost 60% of active SME customers have Nubank as their primary
account, according to research conducted in May. Among the
company’s customer base, there are 10 million entrepreneurs, which
represents great potential for even further growth in the PJ
segment.
Improving financial trends
S&P Global Ratings has recently upgraded Nubank Brazil’s
rating from brAA to brAA+ with a stable outlook. The decision was
based on the company’s consistent improvement of operational
trends, as reinforced by our most recent Q1’23 financial
results.
Nu posted a net income of $142 million in Q1’23, with revenue
nearly doubling year over year, reaching $1.6 billion. The Brazil
operation has consistently showcased the compounding effects of the
company’s business model, reaching a net income of $171 million and
an ROE of 37%, also in the first quarter of the year.
S&P further highlights Nubank’s strong capitalization (Basel
Index in Brazil of 18.7%) and efficiency ratio (at 39% in Q1'23),
which position the company as one of the most efficient and
well-capitalized players in Latin America. Nu also registered a
robust liquidity position in Q1’23, with a 33% loan-to-deposit
ratio. S&P anticipates further improvement in financial results
throughout 2023 and 2024 and expects the company to continue to
outperform in the industry.
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version on businesswire.com: https://www.businesswire.com/news/home/20230725769905/en/
Investor Relations J�rg Friedemann
investors@nubank.com.br Media Relations Leila Suwwan
press@nubank.com.br
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