Q3 2024 Nu Holdings Ltd Earnings Call Transcript
Key Points
- Nu Holdings Ltd (NU) achieved a significant milestone by surpassing 110 million customers, marking a 56% increase from two years ago.
- The company reported a robust revenue growth of 56% year over year, reaching $2.9 billion, driven by successful cross-sell and upsell efforts.
- Net income saw a substantial increase, reaching $553 million, leading to an annualized return on equity of 30%.
- Nu Holdings Ltd (NU) maintained a low cost to serve, with a cost per active customer at $0.80, highlighting strong operating leverage.
- The company experienced strong growth in deposits, particularly in Mexico and Colombia, with Mexico reaching $3.9 billion in deposits, almost four times more than three quarters ago.
- The net interest margin (NIM) compressed by 140 basis points to 18.4% this quarter, primarily due to increased funding costs in Mexico and Colombia.
- The company experienced a slowdown in growth for its credit card portfolio, with interest-earning installments remaining steady at 20% of the total portfolio.
- Nu Holdings Ltd (NU) faced challenges in expanding its secured lending portfolio, which typically offers lower yields and lower risks than unsecured loans.
- The company's risk-adjusted net interest margin decreased by 90 basis points in the quarter, reflecting a decline in NIM.
- There was a noted increase in the 90-plus NPLs by 20 basis points to 7.2%, indicating some pressure on asset quality.
Good afternoon, ladies and gentlemen. Welcome to Nu Holdings' conference call to discuss the results for the third quarter of 2024. A slide presentation accompanies today's webcast, which is available on Nu's Investor Relations website, www.investors.nu in English and www.investidores.nu in Portuguese.
This conference is being recorded, and the replay can also be accessed on the company's IR website. This call is also available in Portuguese. (Operator Instructions)
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(technical difficulty) Information to the IFRS financial information are available in our press release and let's note that otherwise all growth rates are on a year over year affects neutral basis.
I would also like to remind everyone that today's discussion might include forward-looking statements which are not guarantees of future performance and therefore you should not
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