Nubank was born to revolutionize the financial system, creating good, easy-to-use digital products for customers, and offering a human service available 24/7. And our results show that it is indeed possible to innovate in all of this and become a solid and profitable company. So much so that in the first quarter of 2023, Nubank posted record profits and improved results in key business metrics.

Note: Sequential Improvement in Both Net Income and Adjusted Net Income

On May 15, 2023, we shared with the market the financial, operating and business results for the Q1’2023 for Nu Holdings (parent company of the entire Nu Group, which includes our operations in Brazil, Mexico, and Colombia).

The numbers show that we are increasingly an essential part of people’s lives, establishing ourselves as one of the largest financial institutions in Brazil and Latin America.

In addition to the record profit, Nubank also almost doubled its revenue in one year. Today, we have around 80 million customers.

You can view the full report for this and previous quarters on the Investor Relations website. But we know that these materials can have a lot of technical information. As we value transparency, in this post you will find some of the main results explained.

But before Nubank did not make losses?

One of Nubank’s numbers that most interest people is profit: in this 1st quarter of 2023, we recorded a record profit of R$736.1 million (US$141.8 million). Nubank is on a growing and consistent trajectory of profitability, as predicted in its business model. Talking about this is important because, for years, Nubank recorded losses, and this caused people a bit of apprehension.

As we have always explained, losing profit was part of Nubank’s business strategy until a certain point. The loss was calculated and predicted by the company’s investors, because Nubank was investing and growing to reach more people, making responsible use of the capital invested in the company. This strategy has always been combined with a solid capital base and exemplary risk management.

Today, as we complete 10 years in the market and reach tens of millions of customers (46% of the Brazilian adult population has a Nubank account), the scenario is different. We became the fifth largest financial institution in Brazil in terms of number of customers, offering dozens of products and services and becoming an increasingly fundamental part of people’s lives.

Fake news, saying that “Nubank is going to fail”, “Nubank is leaving Brazil” etc sometimes still circulate on social networks, but they have no relation with reality. That’s why we share and explain the real data of Nu Holdings’ financial results: to show that we can combine growth and innovation in favor of our clients, and remove these speculations.

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Beyond profit: Understand Nubank’s main results

Nubank numbers show that it is possible to combine growth with profitability and solidity. See what some of our key numbers mean for Q1’2023.

  • The 5th largest financial institution in Brazil: Nubank reached 79.1 million customers at the end of the Q1’2023, and 80 million in the following month. In terms of number of customers, we are the 5th largest financial institution in Brazil, and one of the fastest-growing in the world.
  • Almost double the revenues: Nubank’s quarterly revenue reached R$ 8.4 billion (US$ 1.6 billion), an 87% increase over the same period last year, on a neutral basis.
  • Profit record: Nu had a profit of R$ 736.1 million (US$ 141.8 million) this quarter, considering all the companies of the Nu group. It’s our third quarter of profits, and the highest value we’ve ever had.
  • The primary account for more and more customers: We are the primary account for most of our active customers (57%) who have been with us for over a year.
  • Efficiency: The numbers show that we are one of the most efficient institutions in Latin America, with an efficiency ratio of 39% – this ratio shows our total expenses divided by revenues, and the lower, the better.
  • Capital and Liquidity: At the same time, we have over $2 billion in excess cash flow and a loan-to-deposit ratio of 33%. This means that for every dollar borrowed, we have three times that amount in deposits. All this makes us very well capitalized and with ample liquidity.

These results show what we have always defended at Nubank: that it is possible to innovate, improve the system and generate positive results – and make a profit not at the expense of people, but in their favor.

The 5th largest financial institution in Brazil: how we got here in just 10 years

Nubank started in 2013 with just one product – a credit card with no annual fee, something practically unheard of until then. In 10 years, we reached 80 million customers with a complete product offering, including account, loans, investments, insurance, PJ (corporate) account and more. And all this while offering an agile, humanized and fully digital service.

Today, almost half of Brazil’s adult population (46%) are Nu customers, and our Brazilian operation has been profitable for over a year and a half. This growth, which consolidated us as the 5th largest financial institution in Brazil in number of customers, was possible thanks to a resilient and solid business model.

Note: Solid Revenue Growth Sustained by Customer Addition and ARPAC Expansion

The increase in revenues and profits is relevant because it shows that we are getting stronger to continue developing high-quality products and offering an efficient and humane service to our customers.

For us it’s still day one. Help shape the future of financial services with us.

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