Nu Holdings Surpasses 114 Million Customers, Strengthens Position in Brazil, Mexico, and Colombia
Nu Holdings Ltd. (NYSE:NU), a leading digital financial services platform, reported outstanding Q4 2024 earnings, surpassing expectations with strong customer growth, robust financials, and strategic expansions. The company added 20.4 million net customers in 2024, reaching a total of 114 million users across Brazil, Mexico, and Colombia. The active customer base rose 22% year-over-year to 95 million, reinforcing Nu’s position as a dominant player in Latin America’s fintech landscape.
Financial Performance Highlights
- Revenue Growth: Total revenue surged 58% YoY to $11.5 billion, driven by an expanded interest-earning portfolio, increased deposits, and higher customer engagement.
- Profitability: Net income nearly doubled to $2 billion in 2024, with an annualized return on equity (ROE) of 28%.
- Lending Growth: The secured lending portfolio in Brazil skyrocketed 615% YoY to $1.4 billion, supported by new agreements for payroll loans.
- Deposits: Total deposits grew 55% YoY to $28.9 billion, with Mexico and Colombia contributing significantly to this growth.
- Earnings per Share (EPS): Adjusted Q4 EPS stood at $0.12, aligning with analysts’ estimates.
Market Expansion and Strategic Moves
Nu Holdings continues to deepen its market presence in Brazil, where it serves 58% of the population, solidifying its status as the third-largest financial institution by customer count. The company also reported remarkable growth in Mexico, surpassing 10 million customers, and increasing deposits fourfold to $4.5 billion. In Colombia, Nu climbed into the top five banks for demand deposits, with deposits reaching $1.3 billion.
A major highlight of Nu’s growth strategy is its payroll loan expansion in Brazil. The company’s total addressable market (TAM) for payroll loans expanded to 70%, fueled by new agreements with public sector collateral counterparties. FGTS-backed loans accounted for 60% of secured lending originations, securing a 30% market share.
Operational Efficiency and Risk Management
CFO Guilherme Lago emphasized that risk-adjusted returns remained strong, with a focus on profitability. The 15-90 day non-performing loans (NPLs) declined 30 basis points to 4.1%, indicating improved credit quality. Management highlighted a strategic shift toward lower-risk products and customers to mitigate macroeconomic uncertainties.
Future Outlook and Growth Plans
Nu Holdings’ management remains optimistic about its long-term vision. CEO David Velez described 2025 as another pivotal year for investment and expansion, with plans to:
- Enhance its Money Platform strategy with new product launches.
- Expand payroll loan offerings in Brazil.
- Strengthen its presence in Mexico and Colombia.
- Refine PIX financing solutions, though large-scale expansion is not expected in the next one to two quarters.
Analyst Sentiment and Market Reaction
Wall Street analysts maintained a positive stance on Nu Holdings’ performance, noting its consistent revenue growth, expanding market share, and improving profitability metrics. Concerns were raised regarding net interest margin (NIM) compression, funding cost pressures, and PIX financing expansion. However, the company’s focus on secured lending and digital financial solutions continues to drive confidence in its future prospects.
Nu Holdings’ ability to adapt to market demands, expand product offerings, and sustain profitability positions it as one of the most promising fintech firms in Latin America. Investors and analysts alike will closely watch its performance in the coming quarters as it executes its ambitious growth strategy.
