Nu (NU) investor relations material

Executive summary

• Achieved record net income of $1.1 billion, up 17% QoQ and 49% YoY, surpassing $1 billion for the first time, driven by strong customer growth and engagement across Brazil, Mexico, and Colombia.

• Customer base reached 139 million, with deepening engagement and activity rates, especially in Brazil where activity surpassed 86%.

• Mexico operations reached 16 million customers, with 35% previously unbanked and 52% without prior credit cards, and achieved break-even in Q1'26.

• Continued expansion in core markets, with new product launches like Croma for the super core segment and regulatory approval for a banking license in Mexico.

• AI and technology investments, including the NuFormer platform, are enhancing underwriting, customer support, and operational efficiency, now powering decisions and handling over 60% of support conversations in Brazil.

Financial highlights

• Gross revenues reached $5.9 billion, up 39% YoY; gross profit was $2.4 billion, up 43% YoY and 25% QoQ.

• Net income hit $1.1 billion, up 17% QoQ and 49% YoY; ROE reached 33%.

• Credit portfolio grew to $39.4 billion, up 37% YoY; deposits reached $45.3 billion, up 18% YoY.

• Net interest income was $3.7 billion, with net interest margin expanding 180 bps to 22.9%.

• Risk-adjusted NIM expanded to 12.4%, up from 9.5% sequentially.

Outlook and guidance

• Expect continued growth in ARPAC, especially as mature cohorts reach higher levels and new products deepen customer relationships.

• Ongoing investments in international expansion, technology, and AI, while maintaining an efficiency ratio around 20% for the full year.

• Focus on scaling AI-driven operations and optimizing deposit strategies in Mexico.