Q2 2026 Nu Holdings Ltd. Earnings Call (English, Portuguese) Transcript
Key Points
- Record net income of $1.1 billion, surpassing $1 billion for the first time, with a 49% year-over-year increase.
- Customer base grew to 139 million, with activity rate expanding to 83.5% and ARPAC reaching $17.
- Risk-adjusted net interest margin expanded to a record 12.4%, driven by strong credit income and lower cost of credit.
- Mexico banking license approved, enabling full-scale digital bank operations and unlocking new growth opportunities.
- AI platform NuFormer improved underwriting efficiency, reducing fine-tuning data needs by 95% and cutting development cycles from weeks to days.
- 90-plus day delinquencies increased 35 basis points to 6.9%, reflecting seasonal migration and intentional risk expansions.
- Efficiency ratio rose to 19.5% from 17.6% in Q1, with full-year guidance around 20% due to timing effects and investments.
- Deposits in Mexico declined modestly again, reflecting ongoing deposit optimization strategy.
- Desenrola program impacted cost of credit by about 5%, with a small impact on expected credit losses.
- US market entry will require 12-30 months to build credit risk models, with initial spending limited to 100 basis points of efficiency ratio.
Good evening, ladies and gentlemen. Welcome to Nu Holdings conference call to discuss the results for the second quarter of 2026. A slide presentation is accompanying today's webcast, which is available in Nu 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.
This call is also available in Portuguese. (Operator Instructions) (spoken in foreign language)
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 our earnings call today. With me on today's call are David Velez, our Founder, Chief Executive Officer, and Chairman; and Rob Livingston, our Chief Financial Officer.
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