Nu Holdings Ltd (NU) Q1 2025 Earnings Call Highlights: Record Customer Growth and Strategic ...

GuruFocus News

Wed, May 14, 2025, 12:20 AM 5 min read

• Customer Growth: Added 4.3 cardinal customers successful Q1 2025, reaching a full of 119 million.

• Revenue successful Mexico: Nearly doubled connected an FX neutral basis, reaching $245 cardinal past quarter.

• Credit Portfolio: Reached $24.1 cardinal successful Q1, increasing 8% 4th implicit 4th and 40% twelvemonth implicit twelvemonth connected an FX-neutral basis.

• Loan Originations: Total indebtedness originations reached a grounds of BRL20.2 cardinal successful Q1, up 64% twelvemonth implicit year.

• Deposits: Total deposits reached $31.6 cardinal successful Q1, up 48% twelvemonth implicit twelvemonth connected an FX-neutral basis.

• Net Interest Income (NII): Grew 34% twelvemonth implicit twelvemonth and 5% 4th implicit 4th connected an FX-neutral basis, reaching $1.8 billion.

• Net Interest Margin (NIM): Declined 20 ground points to 17.5%.

• Gross Profit: Totaled $1.3 cardinal successful Q1, up 32% twelvemonth implicit twelvemonth connected an FX-neutral basis.

• Efficiency Ratio: Improved to 24.7%, reflecting a 520-basis-points sequential improvement.

• Net Income: Reached $557 cardinal successful Q1, up 74% twelvemonth implicit twelvemonth connected an FX-neutral basis.

• 15 to 90 Days NPLs: Rose by 60 ground points to 4.7%.

• 90-plus NPLs: Declined by 50 ground points to 6.5%.

• Credit Loss Allowance: Rose to $973.5 cardinal successful Q1.

• Warning! GuruFocus has detected 4 Warning Signs with SRFM.

Release Date: May 13, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Nu Holdings Ltd (NYSE:NU) added 4.3 cardinal customers successful Q1 2025, reaching a full of 119 cardinal crossed each markets.

• The institution achieved a precocious lawsuit engagement with astir 100 cardinal monthly progressive customers and an enactment ratio supra 83%.

• Nu Holdings Ltd (NYSE:NU) received support for a banking licence successful Mexico, which is expected to accelerate maturation and merchandise offerings.

• The company's Average Revenue Per Active Customer (ARPAC) has the imaginable to turn significantly, with humanities cohorts showing a fivefold summation implicit 7 to 8 years.

• Operating ratio improved with an ratio ratio of 24.7%, reflecting a 520-basis-point sequential improvement.

• Gross nett margins declined to 40.6% owed to higher recognition nonaccomplishment allowance and accrued involvement expenses successful Brazil.

• Net involvement margins (NIM) successful Mexico and Colombia were temporarily impacted by strategical investments successful gathering section deposit franchises.

• The company's consolidated nett involvement margins declined by 20 ground points to 17.5%, reflecting antithetic stages of geographic operations.

• Credit nonaccomplishment allowance accrued owed to seasonal effects and portfolio growth, impacting risk-adjusted NIM.

• The enlargement of deposit bases successful Mexico and Colombia placed short-term unit connected margins.