Buffett-backed Nubank posts record revenue on strong user growth
Reuters
Published Aug 15, 2023 05:11PM ET
(Reuters) - Brazil's Nubank on Tuesday reported record revenue for the second quarter as the Warren Buffett-backed digital banking firm logged a surge in new customers.
The Brazilian lender has been so far insulated from the downturn in the global banking industry as consumers in the key domestic Latin American market continued to gravitate towards its core products, including credit cards.
"In Brazil, our growth trajectory continues, as one in every two adults is a Nu customer, and we have become the fourth largest financial institution in the country in number of customers," said founder and CEO David Vélez in a statement.
Nubank added 4.6 million customers in the quarter ended June 30, reaching a total of 83.7 million customers globally, representing 28% growth from a year earlier.
This helped total revenue surge 60% to $1.9 billion from a year earlier, while monthly average revenue per active customer (ARPAC) increased to $9.30, an 18% rise on foreign exchange-neutral basis.
Nubank, which listed in New York in a blockbuster market debut in late 2021, saw its shares lose more than half their value last year. The stock has since rallied and has gained roughly 95% so far this year.
On an adjusted basis, the bank posted a net income of $262.7 million in the quarter, while on foreign exchange-neutral basis, gross profit climbed 113% to $782 million from a year earlier, and gross profit margin expanded to 42% from 31%.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.