Q2 2025 Nu Holdings Ltd Earnings Call (English, Portuguese) Transcript
Key Points
- Nu Holdings Ltd (NU) reported strong customer growth, expanding its base to nearly 123 million customers with over 4.1 million net additions, maintaining an activity rate above 83%.
- The company achieved an 85% annualized revenue growth rate since 2021, reaching $3.7 billion in Q2 2025.
- Gross profit rose 78% annually, reaching $1.5 billion, with a significant reduction in the efficiency ratio to 28.3%.
- Net income nearly tripled over the past two years to $637 million, demonstrating strong earnings despite ongoing investments.
- Nu Holdings Ltd (NU) continues to diversify its product offerings, with significant growth in unsecured loans, secured loans, and crypto customers.
- The company faces challenges in the INSS system, leading to a 50% drop in origination volumes for public payroll loans.
- There is a temporary timing mismatch in credit loss allowances due to front-loading expected credit losses, which have not yet been fully offset by corresponding growth in interest-earning portfolios.
- The 90-plus day NPL ratio increased by 10 basis points to 6.6%, reflecting a rise in early delinquency.
- Nu Holdings Ltd (NU) is experiencing higher Stage 3 formation, which is a concern for asset quality despite overall stable metrics.
- The company is cautious about the private payroll product due to concerns about the quality of collateral and has not been aggressive in this segment.
Good evening, ladies and gentlemen. Welcome to Nu Holdings conference call to discuss the results for the second quarter of 2025. A slide presentation accompanies today's webcast, which is available on Nu's Investor relations website www.investors.nu in English, and www.investidores.nu in Portuguese. This conference is being recorded and the replay can also be accessed on the company's IR website.
(Operator Instructions) (spoken in foreign language) (Operator Instructions) I would now like to turn the call over to Mr. Guilherme Souto, investor Relations Officer at Nu Holdings. Mr. Souto, you may proceed.
Thank you, operator, and thank you, everyone, for joining the earnings call today. If you have not seen the earnings release already, a copy is posted in the Investor Relations website. With me on today's call are David Velez, our Founder, Chief Executive
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