Nu Holdings results for Q3 2022: growing strong and profitable

Nu Holdings reported a $7.8 million net profit in the quarter. Our full earnings report can be found on the Investor Relations website, but here we explain some of the key numbers.

Purple Nu logo in Sao Paulo Office with gray mat and two purple chairs

Nubank was born to fight complexity and empower people. Every quarter, Nu Holdings (our parent company that includes our operations in Brazil, Mexico and Colombia) discloses its financial, operating and business results to the market.

The full report can be found on the Investors Relations website, and corporate news in the Nubank Newsroom, but here in our blog we highlight some of the key numbers (please note that financial metrics are in US dollars).

Main highlights of the third quarter of 2022:

  • Net profit of $7.8 million;
  • Record revenues of $1.3 billion;
  • Over 70 million customers in Brazil, Mexico and Colombia;
  • Highest activity rate ever at 82%.

More customers, higher engagement, low cost to serve

Nu reached over 70 million customers in Brazil, Mexico and Colombia, with a record high activity rate of 82%. These results place us as the sixth largest financial institution in Latin America by number of active customers.

Nu has become the primary banking relationship for over half (55%) of monthly active customers that have been with us for over a year, which shows how we are increasingly a bigger part of our customers lives.

In Brazil, we closed the quarter at 66.9 million customers. In terms of active customers,we are the fifth largest, according to the Brazilian Central Bank data. Around 39% of adults in Brazil are Nu customers today.

With a growing customer base and higher engagement with products, our revenue per customer is also rising, all while we keep a stable cost to serve, based on our ability to scale via tech platforms and efficient business model:

  • Monthly average revenue per active customer (ARPAC) grew to $7.90;
  • Monthly average cost to serve per active customer remained stable at $0.80.

In other words: on average, each active customer is bringing us more revenue, while our cost to serve them remains the same. In fact, our cost-to-serve is 85% lower than incumbent banks.

Nu is resilient and well positioned for the current macroeconomic conditions, with strong capitalization and significant excess liquidity:

  • One of the best capitalized players in the region with an adjusted capital of $3.8 billion;
  • Interest-earning portfolio of $3.5 billion (and total deposits at four times this amount, $14 billion);
  • Loan-to-deposit ratio of 25%.

All of these results reinforce how strong we are to keep growing sustainably and adding value to our shareholders. And, as always, focused on offering the best for our customers.

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