Latest news with #GuilhermeLago
Business Times
18 hours ago
- Business
- Business Times
Nubank sees more credit growth as quality gauges hold up
[SAO PAULO] Nu Holdings, Latin America's biggest digital bank, reported a decline in credit quality that was roughly in line with analysts' expectations, and said that it expects credit growth to continue for the rest of the year. The fintech known as Nubank said that its 90-day delinquency ratio increased 10 basis points in the second quarter from the first three months of the year, to 6.6 per cent, according to a statement on Thursday (Aug 14). The 15- to 90-day delinquency ratio declined 30 basis points to 4.4 per cent. Shares of Nubank rose as much as 7.8 per cent in postmarket trading in New York on Thursday. 'Absolutely all the asset classes we operate in Brazil, Mexico and Colombia are performing better or marginally better than expected,' chief financial officer Guilherme Lago said in an interview before earnings were released. 'The macro deterioration being discussed since the end of last year didn't materialise in our credit indicators, including the numbers from August until today.' Nationwide, credit quality has been getting worse in Brazil, Nubank's largest market. Delinquencies for individuals rose 0.7 percentage point to 4.3 per cent in June from a year earlier, according to the central bank. And most of the deterioration came from credit cards and personal loans, two of Nubank's most important businesses. The fintech, which operates in Brazil, Mexico and Colombia, does not expect to materially decrease its growth for the rest of the year. It adjusted its credit model in Brazil for roughly a third of its clients, a shift that allowed it to increase some of its customers' credit limits, according to industry analysts. Nubank expects to roll out the update to the whole client base in Brazil to the end of this year. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up With a market value of US$57.6 billion, Nubank lost the title of most valuable publicly traded company in Latin America last month to Itau Unibanco Holding, as some investors expressed concern that Nubank's delinquency rates might deteriorate. Itau's second-quarter results, which beat analysts' expectations earlier this month, widened the gap between the two banks. Nubank has also lost several top executives this year, including chief technology officer Vitor Olivier, who said earlier this week that he's leaving to start a business focused on artificial intelligence. Chief operating officer Youssef Lahrech and chief product officer Jag Duggal have also left the company this year. Nubank's shares are up roughly 15 per cent this year after gaining 24 per cent last year and more than doubling in 2023. The stock has been recovering since late February, when the fintech shed US$12 billion in market value in one day after fourth-quarter results fell short of expectations. Other key second-quarter results:
Reuters
18 hours ago
- Business
- Reuters
Brazilian digital lender Nubank posts 42% profit boost; shares jump
SAO PAULO, Aug 14 (Reuters) - Nu Holdings (NU.N), opens new tab, which runs Brazilian digital lender Nubank, posted on Thursday a 42% increase in its net profit from a year earlier on a foreign exchange-neutral basis, causing its shares to jump more than 8% in after-hours trading. The firm, which has nearly 123 million clients across Brazil - its main market - Colombia and Mexico, posted a $637 million second-quarter net profit for the April to June period. Revenue stood at $3.7 billion, up 40% year-on-year. Chief Financial Officer Guilherme Lago told Reuters the profit increase was driven by operational leverage and revenue growth, but said the factors behind that growth are starting to change. "If in the last three to five years a major part of our growth came from adding new customers, in the next three to five years a major part of our revenue growth in Brazil will come from deepening the relationship with these customers," Lago said. Nubank's annualized return on equity, a gauge of profitability, came in at 28%, in line with the reported year-ago figure. Nubank posted a "strong quarter," Citi analysts wrote, noting that net profit came in above expectations while net interest margin showed a recovery. Shares in Nubank were up 8.3% in extended trade in New York. The lender's total loan book grew 8% from the first quarter to $27.3 billion, as personal loans expanded within Nubank's overall portfolio, which is largely made up of outstanding credit card debt. Meanwhile, the early default ratio stood at 4.4%, falling 0.3 percentage points from the first quarter. The over-90 day ratio reached 6.6%, up 0.1 percentage point in the same period, with Nubank saying it reflected both a rise in short-term delinquencies in the first quarter and a seasonal pattern. "We will continue to grow unsecured lending originations fairly strongly throughout the remainder of 2025 and 2026 as long as it continues to see the asset quality numbers that we are seeing in our book," Lago said in a call with analysts. "Until today... everything seems to be super on track," he added.
CNA
18 hours ago
- Business
- CNA
Brazilian digital lender Nubank posts 42% profit boost; shares jump
SAO PAULO :Nu Holdings, which runs Brazilian digital lender Nubank, posted on Thursday a 42 per cent increase in its net profit from a year earlier on a foreign exchange-neutral basis, causing its shares to jump more than 8 per cent in after-hours trading. The firm, which has nearly 123 million clients across Brazil - its main market - Colombia and Mexico, posted a $637 million second-quarter net profit for the April to June period. Revenue stood at $3.7 billion, up 40 per cent year-on-year. Chief Financial Officer Guilherme Lago told Reuters the profit increase was driven by operational leverage and revenue growth, but said the factors behind that growth are starting to change. "If in the last three to five years a major part of our growth came from adding new customers, in the next three to five years a major part of our revenue growth in Brazil will come from deepening the relationship with these customers," Lago said. Nubank's annualized return on equity, a gauge of profitability, came in at 28 per cent, in line with the reported year-ago figure. Nubank posted a "strong quarter," Citi analysts wrote, noting that net profit came in above expectations while net interest margin showed a recovery. Shares in Nubank were up 8.3 per cent in extended trade in New York. The lender's total loan book grew 8 per cent from the first quarter to $27.3 billion, as personal loans expanded within Nubank's overall portfolio, which is largely made up of outstanding credit card debt. Meanwhile, the early default ratio stood at 4.4 per cent, falling 0.3 per centage points from the first quarter. The over-90 day ratio reached 6.6 per cent, up 0.1 per centage point in the same period, with Nubank saying it reflected both a rise in short-term delinquencies in the first quarter and a seasonal pattern. "We will continue to grow unsecured lending originations fairly strongly throughout the remainder of 2025 and 2026 as long as it continues to see the asset quality numbers that we are seeing in our book," Lago said in a call with analysts. "Until today... everything seems to be super on track," he added.
Yahoo
21 hours ago
- Business
- Yahoo
Brazilian digital lender Nubank posts 42% net profit boost in second quarter
By Andre Romani SAO PAULO (Reuters) -Nu Holdings, which runs Brazilian digital lender Nubank, posted on Thursday a $637 million second-quarter net profit, a 42% increase from a year earlier on a foreign exchange-neutral basis. The firm, which has nearly 123 million clients across Brazil - its main market - Colombia and Mexico, reported a net revenue for the April to June period at $3.7 billion, up 40% year-on-year. Chief Financial Officer Guilherme Lago told Reuters the profit increase was driven by operational leverage and revenue growth, but said the factors behind that growth are starting to change. "If in the last three to five years a major part of our growth came from adding new customers, in the next three to five years a major part of our growth revenue in Brazil will come from deepening the relationship with these customers," Lago said. Nubank's annualized return on equity, a gauge of profitability, came in at 28%, in line with the reported year-ago figure. The lender's total loan book rose 8% from the first quarter to $27.3 billion, as personal loans kept growing in Nubank's overall portfolio, which is largely made up of outstanding credit card debt. Meanwhile, the early default ratio stood at 4.4%, falling 0.3 percentage points from the first quarter. The over-90 day ratio reached 6.6%, up 0.1 percentage point in the same period, with Nubank saying it reflected both a rise in short-term delinquencies in the first quarter and a seasonal pattern.
CNA
21 hours ago
- Business
- CNA
Brazilian digital lender Nubank posts 42% net profit boost in second quarter
SAO PAULO :Nu Holdings, which runs Brazilian digital lender Nubank, posted on Thursday a $637 million second-quarter net profit, a 42 per cent increase from a year earlier on a foreign exchange-neutral basis. The firm, which has nearly 123 million clients across Brazil - its main market - Colombia and Mexico, reported a net revenue for the April to June period at $3.7 billion, up 40 per cent year-on-year. Chief Financial Officer Guilherme Lago told Reuters the profit increase was driven by operational leverage and revenue growth, but said the factors behind that growth are starting to change. "If in the last three to five years a major part of our growth came from adding new customers, in the next three to five years a major part of our growth revenue in Brazil will come from deepening the relationship with these customers," Lago said. Nubank's annualized return on equity, a gauge of profitability, came in at 28 per cent, in line with the reported year-ago figure. The lender's total loan book rose 8 per cent from the first quarter to $27.3 billion, as personal loans kept growing in Nubank's overall portfolio, which is largely made up of outstanding credit card debt. Meanwhile, the early default ratio stood at 4.4 per cent, falling 0.3 per centage points from the first quarter. The over-90 day ratio reached 6.6 per cent, up 0.1 per centage point in the same period, with Nubank saying it reflected both a rise in short-term delinquencies in the first quarter and a seasonal pattern.
