Nubank Surpasses Expectations with Robust Q3 Growth

Nu Holdings, operating Nubank, reported a 39% increase in third-quarter net income, driven by Brazilian and Mexican markets, surpassing analyst expectations. Nubank's strategic growth and asset management in these regions bolstered its profitability, with shares rising post-results and a record annualized return on equity.

Nu Holdings, the listed entity managing Nubank, announced a notable increase in its third-quarter net income, fueled by its Brazilian and Mexican operations, exceeding analysts' expectations.

The company's net income rose to $783 million during the July-September period, marking a 39% year-on-year growth on a currency-neutral basis, outperforming the $757 million anticipated by analysts.

Nu Holdings credited its robust performance to scale gains in Brazil and improved credit portfolio management in Mexico, which contributed significantly to its consolidated results. Nubank's revenue increased by 39% to $4.2 billion, with a noteworthy boost in net interest income, despite a slight contraction in net interest margin. The bank's continued growth trajectory signals potential future expansion, including plans to enter the U.S. market.

(With inputs from agencies.)