$NU (+1,2%) Key financial data Q1 2025 (YoY FX-neutral, unless otherwise stated)
Customer base grows unstoppably:
* Total customers: 118.6 million (+19% YoY); over 4 million new customers in Q1 alone.
* Active customers: 98.7 million (+19% YoY), with a high activity rate of over 83%.
* Regional strength: Brazil reaches 104.6 million customers (59% of the adult population), Mexico grows to 11 million and Colombia is approaching 3 million customers.
Strong increase in sales:
* Total sales: USD 3.2 billion (+40% YoY FXN). This was in line with analyst expectations, exceeding some lower estimates. đ©
* Monthly revenue per active customer (ARPAC): USD 11.2, management sees further potential.
Profitability significantly improved:
* Net profit: USD 557.2 million (+74% YoY FXN).
* Adjusted net profit: USD 606.5 million (Q1 2024: USD 442.7 million).
* Earnings per share (EPS Diluted): USD 0.1139. This was just below or in line with many analysts' estimates. đ§
* Profit before taxes: USD 795.1 million (+62% YoY FXN).
Outstanding efficiency:
* Efficiency ratio: improved to 24.7% (over 740 basis points YoY).
* Cost of service per active customer: Minimal at $0.7.
Solid loan and deposit business:
* Interest earning portfolio (IEP): 13.8 billion US dollars (+62% YoY FXN).
* Total receivables (loans & cards): US$24.1 billion (+40% YoY FXN).
* Deposits: 31.6 billion US dollars (+48% YoY FXN).
Credit quality (Brazil):
* 15-90 day NPL: increase to 4.7%, but better than historical seasonality.
* 90+ days NPL: decline to 6.5%, outperforms historical trends.
Management outlook
Founder and CEO David VĂ©lez was very pleased: "We are entering 2025 with growing momentum... Revenues increased 40% year-over-year (YoY) on an FX-neutral (FXN) basis to $3.2 billion, driven by a 62% expansion of our interest-bearing portfolio, while maintaining best-in-class efficiency and profitability metrics." Nu remains on a disciplined growth path, reinvesting strategically and confident of creating sustainable value for clients and shareholders.
Valuation / My personal assessment
Nu Holdings' Q1 results are clearly positive and demonstrate the continued strength of the business model.
* Strengths: Robust and diversified customer growth, significant increase in revenue and net profit, industry-leading efficiency and solid credit quality development in a growing portfolio.
* To note: The slight decline in gross profit margin (to 41% ) and risk-adjusted NIM (to 8.2% ) reflect planned strategic investments in new markets and early provisioning.
Nu Holdings remains, in my opinion, excellently positioned to benefit from the digitalization of the financial sector in Latin America. The ability to combine rapid growth with increasing profitability and efficiency remains at the core of the investment story.
Source: https://www.investidores.nu/en/financials/results-center/
Disclsimer:
This summary is for informational purposes only, does not constitute investment advice and is based on publicly available reports of Nu Holdings dated May 13, 2025, for which no liability is assumed for accuracy or completeness.
