Nu Holdings Ltd. reported second-quarter net income of $1.1 billion, up 49% year over year and 17% from the first quarter, marking its first billion-dollar quarter. The digital bank also reached 139 million customers across Brazil, Mexico, and Colombia, and received a banking license in Mexico, transforming its credit-first operation there into a full-scale bank. Net interest margin expanded 180 basis points to 22.9%, and return on equity held at 33%. However, loans more than 90 days past due rose 35 basis points to 6.9%, and operating expenses jumped 20% sequentially to $806 million, pushing the efficiency ratio to 19.5%. The company plans to spend up to 100 basis points of its efficiency ratio testing a U.S. entry over the next 12 to 30 months. Hedge fund ownership fell from 104 to 92 funds, while short interest stands at 3.44% of float, and shares trade at a forward P/E of 21.01.
Nu Holdings LtdFirst billion-dollar quarter with 49% net income growth and expanded margins.
