Brazilian digital bank Nu reported third-quarter net income of 1.1 billion dollars, up 31 per cent at constant exchange rates. Its loan portfolio expanded to 41.6 billion dollars, while loans more than 90 days overdue increased as a share of the total. Reported and adjusted interest margins moved in different directions. Customer numbers grew by 3.7 million.
Brazilian digital bank Nu earned 1.1 billion dollars in the third quarter, with revenue of 6.3 billion dollars. Its published growth rates remove exchange-rate movements from the comparison: net income increased 31 per cent and revenue 37 per cent from a year earlier on that basis. Gross profit reached 2.6 billion dollars, while return on equity was 32 per cent.[1], [2]
The loan book reached 41.6 billion dollars, expanding 33 per cent annually and 6 per cent from the previous quarter. Credit cards accounted for 27.2 billion dollars. Loans more than 90 days overdue increased from 6.9 per cent to 7.3 per cent of the portfolio. In the 15–90-day category, the share edged up from 4.8 per cent to 4.9 per cent.[1], [2]
Reported net interest margin after credit-risk costs fell from 12.4 per cent to 12.1 per cent. Nu said that excluding non-recurring items, the comparable margin instead rose from 11.9 per cent to 12.7 per cent.[1]
Deposits increased 19 per cent from a year earlier to 47.5 billion dollars. Their funding cost fell to 87 per cent of the interbank benchmark, against 88 per cent in the second quarter. Nu added 3.7 million customers during the quarter to reach 143 million. Its expense-to-income ratio was 19.3 per cent, and management now expects an annual ratio of 19–19.5 per cent rather than approximately 20 per cent.[1]
