2023-11-15 01:30:35
© Reuters
By Peter Frontini and Andre Romani
SÃO PAULO (Reuters) – Nubank (BVMF:) recorded a net profit of US$303 million in the third quarter, soaring compared to the profit of US$7.8 million in the same period of 2022, given record revenue and expansion in the portfolio of credit, according to the balance sheet released this Tuesday.
Analysts, on average, expected net profit of $288.2 million, according to LSEG data.
On an adjusted basis, profit reached 355.6 million dollars, compared to a profit of 63.1 million dollars a year earlier.
Nubank’s revenue was US$2.1 billion, a new record for the company, but practically in line with analysts’ expectations. The amount represents an increase of 53% year-on-year, on a neutral exchange rate basis.
Nubank attributed the increase in revenue to the combined effect of the growth in the number of customers and higher levels of base monetization.
The number of customers reached 89.1 million in the quarter — and subsequently surpassed 90 million in October –, compared to 83.7 million at the end of June.
The digital bank also saw an increase in average monthly revenue per active customer of 18%, to 10 dollars, on an annual and exchange-neutral basis.
On the same basis, Nubank’s total credit portfolio was 15.4 billion dollars, an increase of 48.1% year on year, while the net financial margin (NII) reached 1.2 billion dollars, more than doubling .
The vast majority of Nubank’s customers are in Brazil, where the bank was founded about a decade ago. But the digital bank has been expanding operations to other countries, such as Mexico and Colombia.
In Mexico, Nubank sees that the operation could become “as relevant, if not more relevant for us, than Brazil”, financial director Guilherme Lago told Reuters.
He stated that Mexico is in a “still very embryonic phase in this inevitable journey of digitalization and financial inclusion”, highlighting that banking penetration in the country is still far below compared to Brazil.
“Mexico is a marathon, not a 100-meter sprint,” Lago added. Nubank’s customer base was 4.3 million in Mexico at the end of the quarter.
In Brazil, Nubank’s default rate of more than 90 days was 6.1% in the quarter ended in September, 5.9% in the second quarter and 4.7% in the same period of 2022. Short-term default, between 15 and 90 days, it was 4.2%, up from 4.3% on a quarterly basis and stable year on year.
The costs of financial and transactional services totaled 1.2 billion dollars in the quarter, an increase of 29.6% in an annual comparison and on a neutral exchange rate basis, given the growth of operations, especially in Colombia and Mexico, and higher rates interest rates in Brazil.
However, costs diluted as a percentage of revenue by 10 percentage points, to 57%.
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