The following is a summary of the Nu Holdings Ltd. (NU) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Nu Holdings reported a Q1 revenue of $2.7 billion, up 64% from the previous year.

• The registered gross profit of $1.2 billion indicated a growth of 76% year-over-year with a gross margin of 43.2%.

• The net income stood at $379 million, whereas the adjusted net income reached $443 million after year-on-year expansions of 160% and 136% respectively.

• The average revenue per active customer (ARPAC) for the quarter was noted at $11.4, marking an increase from the previous quarter's $10.6.

• The credit card and personal loan portfolios saw growths of 42% and 88% year-on-year, to $15.1 billion and $4.5 billion respectively.

• Record high net interest income and gross profit were reported at $1.6 billion (with a net interest margin of 19.5%) and $1.2 billion respectively.

• Cost to serve per active customer stood at $0.90 with the aim of keeping it at or below $1.

• Credit loss allowance expenses reached $831 million this quarter, reflecting increased origination volumes.

Business Progress:

• By the end of Q1, the customer index reached 99 million, growing by 67% from a count of 59 million two years ago.

• Monthly activities saw a growth from 82.1% to 83.2% YoY, and the number of products per active customer grew from 4 to 4.1 in this quarter.

• Notable growth was seen in the deposits content, reaching $24.3 billion (a 53% YoY growth) primarily driven by developments in Mexico.

• The market share stood at about 15% spanning credit, debit, and prepaid cards.

• Noteworthy progress was observed in broadening the lending portfolio through the introduction of new loan types.

• The focus for future developments includes expanding the credit portfolio, strategic deposit initiatives in Mexico, enhancing product portfolio features, and steady expansion into riskier client segments.

• Plans aim to reach about 75% of the target market segments (including armed forces, states, and municipalities) by the end of 2024.

• The firm sees opportunities to expand the credit portfolio across the board and is in the process of obtaining a banking license in Mexico.

More details: Nu Holdings IR

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