By Brazil Stock Guide — Nu Holdings Ltd. (NYSE: NU), the parent company of Nubank, reported record third-quarter net income of US$1.09 billion, up 31% from a year earlier on a foreign-exchange-neutral basis, as revenue growth and expanding lending operations supported profitability across its Latin American markets.
The digital lender said Thursday, November 12, that management revenue climbed 37% year over year on a constant-currency basis to US$6.26 billion, while gross profit increased 35% to US$2.6 billion. Return on equity stood at 32%, compared with 31% a year earlier, as the company expanded its customer base to 142.6 million and its loan portfolio to US$41.6 billion.
On an unadjusted basis, quarterly net income increased approximately 39.5% from US$782.7 million in the third quarter of 2025. Management revenue rose about 45% from US$4.32 billion.
Under International Financial Reporting Standards (IFRS), consolidated revenue reached US$5.82 billion, compared with US$4.17 billion a year earlier. The difference between IFRS and management revenue reflects accounting reclassifications and adjustments that leave reported net income unchanged.
For the first nine months of 2026, Nubank generated US$3.02 billion in net income, compared with US$1.98 billion in the same period last year. IFRS revenue totaled US$16.3 billion, up from US$11.09 billion.
“We delivered record quarterly net income of US$1.1 billion as we continued growing in our core markets and took our first steps beyond Latin America,” said David Vélez, Nubank’s founder and chief executive officer.
Loan portfolio expands 33% as lending accelerates
Nubank’s loan portfolio increased 33% year over year on a constant-currency basis and 6% from the previous quarter, reaching US$41.6 billion at the end of September.
Credit cards accounted for US$27.2 billion, representing annual growth of 32%. Unsecured personal loans rose 39% to US$11 billion, with a 7.5% increase from the second quarter.
Secured lending reached US$3.4 billion, up 23% from a year earlier, supported by record quarterly originations.
In Brazil, rising demand for payroll-deductible loans among public employees and private-sector workers more than offset lower lending backed by FGTS employment savings balances.
Net interest income reached US$3.9 billion, with a net interest margin of 22.5%.
The reported risk-adjusted net interest margin narrowed to 12.1% from 12.4% in the second quarter. Excluding nonrecurring items, however, the metric improved to 12.7% from 11.9%, indicating stronger underlying profitability after accounting for credit risk.
Delinquencies rise alongside credit expansion
Nubank’s lending growth was accompanied by deteriorating asset-quality indicators.
The ratio of loans more than 90 days overdue rose to 7.3% in the third quarter, from 6.9% in the preceding three months.
Early-stage delinquency, covering loans between 15 and 90 days past due, increased to 4.9% from 4.8%.
When measured exclusively against interest-earning balances, the ratio of loans more than 90 days overdue increased to 12.1% from 11.6%.
The bank’s coverage ratio for loans overdue by more than 90 days stood at 234%.
Quarterly expected credit-loss expenses climbed to US$1.67 billion, compared with US$977.5 million a year earlier, according to the company’s IFRS financial statements.
Credit-card receivables accounted for approximately US$912.5 million of those expenses, while customer loans contributed another US$644 million. Other expected credit losses totaled about US$112 million.
The increase highlights the growing cost of credit risk as Nubank expands its lending portfolio, even as higher revenue and operating scale continue to support earnings.
Deposits climb to US$47.5 billion as efficiency improves
Customer deposits reached US$47.5 billion at the end of September, representing annual growth of 19% on a foreign-exchange-neutral basis.
Brazil accounted for US$38.6 billion of total deposits, followed by Mexico with US$5.3 billion and Colombia with US$3.5 billion.
Funding costs declined, with the average cost of deposits falling to 87% of the relevant interbank rate, compared with 88% in the second quarter and 89% a year earlier.
Nubank’s efficiency ratio improved to 19.3%, from 19.5% in the previous quarter and 20.3% in the third quarter of 2025.
Management attributed part of the improvement to lower personnel expenses and the postponement of certain operating costs until the fourth quarter.
The company revised its full-year 2026 efficiency-ratio outlook to a range of 19% to 19.5%, down from its previous projection of approximately 20%.
The updated forecast incorporates expectations for a sequential increase in the ratio during the final quarter of the year.
Brazil customer base approaches 120 million
Nubank added 3.7 million customers during the quarter, bringing its total customer base across its three principal Latin American markets to 142.6 million.
Brazil remained the company’s largest market, with nearly 120 million customers, equivalent to approximately 65% of the country’s adult population, according to Nubank.
The Brazilian customer activity rate reached a record 86.3%, marking its seventh consecutive quarterly increase.
Unsecured personal-loan originations in Brazil hit R$22.1 billion, up 28% from a year earlier.
The company’s Croma offering, introduced in late July for its Super Core customer segment, approached one million customers. Its relaunched NuCoin loyalty program attracted 6.7 million participants.
Across the group, the customer activity rate increased to 83.6%, from 83.5% in the preceding quarter.
Average monthly revenue per active customer reached US$17.7, compared with US$17.1 in the second quarter and US$13.8 a year earlier.
The increase reflects Nubank’s ability to generate more revenue from its existing customer base as adoption of its financial products expands.
Mexico and Colombia drive regional expansion
Nubank added 870,000 customers in Mexico during its first quarter operating as a fully licensed bank, bringing its local customer base to 16.6 million.
The figure represents annual growth of 27% and approximately 17% of Mexico’s adult population.
The company’s Mexican operation formally began functioning as a multiple bank on August 6, following regulatory authorization in July.
Its new banking status increased deposit-insurance coverage by a factor of 16 to approximately US$195,000 per customer, while enabling the institution to offer payroll deposit accounts.
In Colombia, Nubank’s customer base grew 62% year over year to 6.1 million, equivalent to approximately 15% of the country’s adult population.
With three million credit-card holders, Nubank said it had become Colombia’s largest credit-card issuer by number of cardholders.
Its Colombian loan portfolio expanded 80% from a year earlier. The company also reported having the country’s fourth-largest retail deposit base, with funding costs equivalent to 76% of the benchmark rate.
US launch and global accounts extend Nubank’s reach
Nubank expanded beyond its established Latin American operations with the September 10 launch of Nu US, a financial-services platform targeting customers in the United States.
The offering includes an account with a 3.5% annual percentage yield, fee-free transfers to Brazil, Mexico and Colombia, and a credit card with no annual fee and 1.5% cashback.
The company said Nu US had reached customers in all 50 US states within weeks of launching.
The American operation currently relies on a partnership with FDIC-insured Lead Bank to provide deposit accounts and other services.
Nubank is separately pursuing a US national banking charter. The company received preliminary conditional approval from the Office of the Comptroller of the Currency in January 2026, with final authorization still subject to regulatory requirements.
The group also launched Nu Global on October 15, after the third-quarter reporting period ended.
The stablecoin-based multicurrency account already serves customers in 37 countries, according to the company’s earnings release.
Nubank said the combined impact of Nu US and Nu Global on its efficiency ratio remains within its commitment to limit the effect to no more than 100 basis points in each of 2026 and 2027.
The international initiatives extend Nubank’s operations beyond Brazil, Mexico and Colombia while the company maintains its focus on lending growth, deposit gathering and operating profitability.
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