Nu Holdings Ltd. Announces Q4 and Full-Year 2024 Financial Results
Nu Holdings Ltd. (NYSE: NU) (“Nu” or the “Company”), a leading global digital financial services platform, has announced its financial results for the fourth quarter and full year 2024. These results, reported in U.S. dollars and following International Financial Reporting Standards (IFRS), highlight the company’s continued growth and operational excellence. The full earnings report is now available on Nu’s Investor Relations Additionally, Nu will host an Earnings Conference Call today at 5:00 PM Eastern Time (ET) / 7:00 PM Brasilia Time (BRT) to discuss these results in greater detail.
CEO Statement on 2024 Performance
Reflecting on the past year, Nu’s founder and CEO, David Vélez, emphasized the company’s strong progress and market expansion:
2024 was a transformational year for Nu as we advanced our mission to empower millions across Latin America with accessible, transparent, and low-cost financial services. We now serve over 114 million customers, having added 20.4 million new accounts during the year, while also strengthening Nu Holdings engagement and deepening our role as a primary banking provider. Our revenue surged to $11.5 billion, reflecting a 58% year-over-year growth on an FX-neutral basis. Net income nearly Nu Holdings doubled from 2023, reaching close to $2.0 billion. We made significant progress across our strategic priorities, particularly in expanding Nu Holdings our high-income customer base in Brazil, accelerating growth in Mexico, and diversifying our product offerings with NuCel and NuTravel.
Q4 and Full-Year 2024 Performance Summary
Operational Highlights
- Customer Growth
- Nu continued its rapid expansion, adding 4.5 million customers in Q4 2024 alone, bringing the total to 114.2 million customers by year-end. This represents a 22% year-over-year (YoY) increase.
- The company solidified its position as one of the largest and fastest-growing digital financial services platforms globally.
- In Brazil, Nu became the third-largest financial institution by number of customers, according to the Brazilian Central Bank.
- Nu surpassed 10 million customers in Mexico and reached 2.5 million in Colombia, driven by strong demand for its Cuenta Nu product.
- Customer Engagement and Activity
- Monthly Average Revenue per Active Customer (ARPAC) stood at $10.7 in Q4 2024, with mature cohorts exceeding $25.
- On an FX-neutral basis, ARPAC increased 5% sequentially and 23% YoY, up from $10.6 in the previous year.
- The monthly activity rate remained strong at 83.1%.
- While customer growth in Mexico and Colombia outpaced Brazil, initially lower activity levels in these markets temporarily affected Nu Holdings the consolidated activity rate.
- Cost Efficiency and Scalability
- Nu maintained an exceptionally low operating cost structure, with a Monthly Average Cost to Serve Per Active Customer below $1, at just $0.8 per customer.
- The company’s efficiency ratio improved by 150 basis points sequentially, reaching 29.9% — a significant improvement of over 610 basis points from the previous year.
- Asset Quality and Credit Performance
- The leading indicator, the 15-90 days Non-Performing Loans (NPL) ratio, improved by 30 basis points sequentially to 4.1%.
- The improvement reflects a shift toward lower-risk customer segments and increased secured lending.
Financial Highlights
- Profitability
- Nu reported a Q4 2024 net income of $552.6 million, representing a 7% sequential increase and an 85% YoY growth on an FX-neutral basis.
- The full-year 2024 net income nearly doubled to $1.97 billion, compared to $1.03 billion in 2023.
- Adjusted net income for Q4 2024 rose by 87% YoY to $610.1 million, with an annualized adjusted return on equity (ROE) of 32%.
- Adjusted net income for the full year reached $2.2 billion, up from $1.19 billion in 2023.
- Revenue Growth
- Full-year 2024 revenue surged 58% YoY to $11.51 billion.
- Q4 2024 revenue totaled $2.99 billion, demonstrating Nu’s strong growth trajectory.
- Gross Profit
- Q4 2024 gross profit reached $1.36 billion, an 8% sequential increase and a 44% YoY rise.
- Full-year gross profit grew to $5.24 billion, up from $3.49 billion in 2023.
- Gross profit margin remained healthy at 45.6%, despite higher funding costs in new markets.
- Liquidity and Lending Expansion
- The interest-earning portfolio (IEP) grew to $11.2 billion, a 75% YoY increase.
- The lending portfolio more than doubled, reaching $6.1 billion, with a 22% sequential rise.
- The credit card portfolio expanded 28% YoY, reaching $14.6 billion.
- Total deposits increased 55% YoY to $28.9 billion, with Brazilian deposits accounting for $23.1 billion.
- Net Interest Income (NII)
- NII increased 57% YoY to a record $1.7 billion.
- Net interest margin (NIM) contracted by 70 basis points to 17.7% in Q4 2024, impacted by foreign exchange volatility and deposit strategies in Mexico and Colombia.
Strategic Developments and Business Priorities
- International Expansion
- Mexico reached 10 million customers, representing 12% of the country’s adult population.
- Deposits in Mexico soared 438% YoY to $4.5 billion.
- The Mexican credit card customer base expanded by 70%, reaching 5.6 million.
- Growth in Secured Lending in Brazil
- The secured lending portfolio surged 615% YoY to $1.4 billion.
- Nine new agreements were signed with public-sector collateral counterparties, expanding the payroll loan addressable market to 70% of the segment.
- High-Income and Premium Banking Growth
- The Ultravioleta customer base grew 132% YoY to nearly 700,000 customers.
- Ultravioleta credit card transaction volume doubled to $1.8 billion in Q4 2024.
- The brand continued to maintain a high Net Promoter Score (NPS) of 84.
- Expansion of Digital Banking Ecosystem
- Nu’s Marketplace attracted over 1 million customers.
- The launch of NuTravel introduced bundled multi-currency accounts and price guarantees.
- About Nu
Nu is one of the largest digital financial services platforms in the world, serving 114 million customers across Brazil, Mexico, and Colombia. The company has been leading an industry Nu Holdings transformation by leveraging data and proprietary technology to develop innovative products and services. Guided by its mission to fight complexity and empower Nu Holdings people, Nu caters to customers’ complete financial journey, promoting financial access and advancement with responsible lending and transparency. The Nu Holdings company is powered by an efficient Nu Holdings and scalable business model that combines low cost to serve with growing returns. Nu’s impact has been recognized in multiple awards, including Time 100 Companies, Fast Company’s Most Innovative Companies, and Forbes World’s Best Banks.
