NU · Nu Holdings Ltd.

Nu Holdings Ltd. delivered strong Q1 2026 results, with net income rising to $871 million, up 41% FX-neutral year-over-year, supported by robust credit portfolio expansion to $37.2 billion (+40% YoY FXN) driven by credit cards (65% mix) and unsecured lending (27% mix). Deposit franchise scaled to $42.4 billion (+22% YoY FXN) across Brazil, Mexico, and Colombia, maintaining low cost of deposits at 88% of interbank rate, bolstering funding stability. NII grew 12% FXN quarter-over-quarter to $3.25 billion, with risk-adjusted NIM at 9.5%, reflecting resilient unit economics amid seasonal early delinquency (15-90 NPLs at 5.0%). Gross profit diversified to $1.88 billion (+27% YoY FXN), with float contributing 41% as credit normalized seasonally. Operating leverage shone through, with net revenues at $3.67 billion and efficiency ratio tightening to 17.6% (core 16.6%), down from 21.7% prior quarter, underscoring scalable model. Credit quality held firm, with total coverage over portfolio at 16.2% and over 90+ NPLs at 249.0%. Management highlighted AI transformation enhancing engineering throughput (+50% YoY), customer journeys, and underwriting, positioning for multi-country growth. Brazil captured 7% of $100B gross profit pool, while Mexico neared break-even with rapid customer ramp. ROE sustained at 29%, signaling earnings power at scale.