NU Q2 Earnings Call Highlights

Nu reported $1.1 billion in Q2 2026 net income, up 49% year over year, with return on equity reaching a record 33%. Net revenue exceeded $4 billion for the first time.

The customer base reached 139 million, while the credit portfolio grew 37% year over year to $39.4 billion. Net interest margin expanded to 22.9%, although 90-plus-day delinquencies increased to 6.9%.

Mexico’s newly approved banking license expands Nu’s potential product offerings, while the company continues targeting higher-income and small-business customers in Brazil. Its AI platform now handles more than 60% of Brazilian customer-support conversations.

Nu reported second-quarter 2026 net income of $1.1 billion, its first quarter above the $1 billion mark, as customer growth, deeper engagement and expanding credit income supported profitability. Net income rose 49% year over year and 17% sequentially, while return on equity reached a record 33%. Founder, Chief Executive Officer and Chairman David Vélez said the company’s customer base reached 139 million, including nearly 118 million in Brazil and more than 5 million in Colombia. Mexico reached 16 million customers at the end of July. The company’s activity rate rose sequentially to 83.5%, while Brazil’s activity rate surpassed 86% for the first time.

Average revenue per active customer, or ARPAC, reached $17, and gross revenue totaled nearly $5.9 billion. Nu maintained an efficiency ratio near 20% while continuing to invest in Brazil, Mexico, Colombia and international expansion, Vélez said.

Chief Financial Officer Rob Livingston said Nu’s consolidated credit portfolio reached $39.4 billion, up 37% year over year and 5% from the prior quarter. Credit card balances rose 35% to $26 billion, unsecured lending increased 45% to $10.3 billion, and secured lending grew 30% to $3.1 billion. Deposits ended the quarter at $45.3 billion, up 18% year over year and 6% sequentially. Brazil accounted for $36.4 billion of deposits, followed by Mexico with $5.7 billion and Colombia with $3.3 billion. Mexico deposits declined modestly as part of an ongoing deposit-optimization strategy, Livingston said, while the company’s loan-to-deposit ratio remained 35%.

Net interest income reached $3.7 billion, up 9%, and net interest margin expanded 180 basis points to 22.9%. Risk-adjusted net interest margin climbed to a record 12.4%, from 9.5% in the prior quarter, supported by lending growth, a greater mix of unsecured lending and lower cost of credit. Cost of credit fell sequentially to $1.7 billion. Brazil’s Desenrola debt-renegotiation program accounted for about 5% of the cost-of-credit impact and helped nearly 1.8 million customers renegotiate overdue balances. In a question-and-answer session, he said Desenrola contributed to the improvement in risk-adjusted margin but represented a minority of the quarterly gain.

Nu said 15- to 90-day delinquencies improved 16 basis points sequentially to 4.8%, while 90-plus-day delinquencies increased 35 basis points to 6.9%, reflecting the seasonal migration of earlier delinquencies. The company said its allowance for expected credit losses increased to $6.6 billion from $6.1 billion, primarily due to portfolio growth and intentional risk expansion. Total coverage over 90-plus-day nonperforming loans stood at 244%. Livingston said Nu did not see evidence of broad-based consumer-credit weakening in its portfolio.