Every quarter, Nu Holdings discloses its financial, operating and business results to the market. In addition to being an important regulatory measure for publicly traded companies, this is a way of providing transparency on how our business is performing.
On August 15, 2022, we released our full report for Q2 2022 – one of the best quarters in our history, with record revenues, highest activity rate and ever-lower operating costs.
“We had another very strong quarter, with growth and profitability in our core business. We registered record revenues and are making huge strides towards becoming a multi-product and multi-country platform.
Our largest operation – Brazil – is now profitable, having registered a net profit of US$ 13 million in the first half of 2022, driven by customer growth to 65 million and ability to offer and cross-sell new products. We are the fourth largest card player in Brazil, almost a quarter of all Pix operations pass through Nu’s accounts, and we are a leader in the digital-direct investment space with 5 million active customers. We are diversifying and scaling with Crypto, Insurance, SME and Personal Loans.
Moving internationally, we are now the #1 issuer of new credit cards in both Mexico and Colombia – where we have just received a license approval to continue our expansion.”David Vélez, founder and CEO
We are aware that the amount of information and technical terms in this report may raise questions. Therefore, we explain below some of the main results of this quarter. For a more technical summary, see our press release on the Investor Relations website.
Important: these figures are about Nu Holdings Ltd., Nubank’s parent company. They include all of our operations in Brazil, Mexico and Colombia, and the amounts appear in US dollars.
Record revenue and profit
In the second quarter of 2022, Nu Holdings registered a record US$1.2 billion in revenues: this is a very important result as we continue to expand into new products efficiently and reach more customers.
Revenues grew 230% per year, considering a neutral FX basis (a factor that refers to measures to eliminate the exchange rate effect). In other words: FXN shows growth from one period to the next, minus currency volatility. Thus, it is possible to evaluate the financial performance despite currency variations – after all, Nu is present in multiple countries besides Brazil, such as Mexico and Colombia.
In Brazil, Nu generated an accounting profit of US$13.0 million in the first half of 2022 (versus a loss of US$19.7 million in fiscal 2021).
Nu Holdings’ Q2 2022 gross profit was US$363.5 million, up 109% year on year, also FX neutral. The group’s consolidated adjusted net income – that is, earnings after total costs, taxes and other adjustments – was $17 million.
These numbers are important for a simple reason: Nubank continues to grow strong and resilient, even in difficult macroeconomic conditions. At the same time that we increase our product offering and our operations outside Brazil, we also see operating costs per active customers getting lower and lower.
More active customers, higher efficiency on costs
Our financial results go hand in hand with the growth we are seeing among our customers – not just in the total number of new customers, but in their engagement with our products.
In the Q2 2022, Nu gained 5.7 million new customers, reaching a total of 65.3 million people in Brazil, Mexico and Colombia. Even more important is the customer activity rate, which has reached the historic mark of 80%.
In other words, we are gaining more active customers and our products are becoming increasingly relevant to people.
All this comes with increasingly lower costs to run the operation. Born digital, Nubank is already, in essence, a company with efficiency advantages over traditional ones, and we have worked in recent cycles to improve even more.
Multi-product and multi-country: on our way towards becoming the largest digital platform in Latin America
During the second quarter of 2022, Nubank’s products grew significantly – and some launches were already successful in their first months, showing that we are increasingly on the path to becoming a complete multi-product platform.
- Credit card: 29 million active customers;
- Account (personal and business): 45 million active customers;
- Personal loans: 4 million active customers;
- Insurance: 700,000 active customers;
- Investments: 5 million active customers;
NuCripto, our cryptocurrency buying and selling tool, reached 1 million customers in July 2022, just three weeks after its launch.
Nu is currently the fourth largest credit card in Brazil in terms of purchase volume, surpassing traditional centenary banks. Our loan portfolio is growing with healthy quality levels, and a very resilient performance.
We are also the largest credit card issuer in Mexico and Colombia, where we reached 2.7 million customers (a six-fold YoY growth) and 314,000 customers this quarter, respectively. In both countries, the NPS (Net Promoter Score, a metric used to measure consumers’ happiness with the company) is well above the market’s benchmark, at about 90 points.
In short: we continue to grow to become an increasingly stronger company, with a more complete product offering and with a greater focus on cost efficiency. And, above all, focused on offering the best for our customers.