NU · Nu Holdings Ltd.

Nu Holdings Ltd. delivered strong Q1 2026 results, with total revenue surging 42% year-over-year on an FX neutral basis to $5.3 billion, driven by robust growth in credit income ($3.2 billion), float income ($1.4 billion), and fee income ($759 million). Net interest income hit a record $3.25 billion, up 12% quarter-over-quarter, while risk-adjusted NIM dipped to 9.5% due to elevated credit loss allowances of $1.79 billion from seasonality, portfolio expansion, and higher-risk segment penetration. Gross profit rose 27% YoY to $1.88 billion, reflecting diversification across credit, float, and fees, with float comprising 41% of the mix. Net income increased 41% YoY to $871 million, supporting a 29% ROE, despite a seasonal uptick in the 15-90 NPL ratio to 5.0%. Operationally, customer additions of 4 million brought the total to 135.2 million, with ARPAC climbing to $15.9 amid stable 83.4% activity rates. Efficiency improved to 17.6%, bolstered by ARPAC gains and portfolio scale, though management noted full-year efficiency in line with 2025 levels amid return-to-office costs, international expansion, and AI investments. Balance sheet strength showed deposits at $42.4 billion and credit portfolio at $37.2 billion, with LDR rising to 58.3%. CEO David Vélez highlighted AI transformation via NuFormer models in production for credit decisions and AI Private Banker serving 15 million users, fueling resilient credit growth. Mexico achieved break-even with 15 million customers, becoming the third largest institution, while Brazil solidified leadership at 115 million customers.