Nu Holdings Ltd. · NYSE:NU
Nu — Q1 2025 Earnings Presentation
46 slides from Nu's earnings presentation, May 13, 2025
Slide 1: Q1 2025 Earnings Presentation
Q1 2025 Earnings Presentation May 13, 2025 First Quarter 2025 Results 1
Slide 2: Welcome
Guilherme Souto Welcome Investor Relations Officer First Quarter 2025 Results 2
Slide 3: David Vélez, Youssef Lahrech, Guilherme Lago
David Vélez Youssef Lahrech Guilherme Lago Founder, Chief President and Chief Financial Officer Executive Officer and Chief Operating Chairman Officer First Quarter 2025 Results 3
Slide 4: Disclaimer
Disclaimer This presentation speaks at the date hereof and the Company is under no obligation to update or keep current the information contained in this presentation. Any information expressed herein is subject to change without notice. Any market or other third- party data included in this present
Slide 5: Sustained Growth of One of the World's Largest Digital Banking Platforms
Sustained Growth of One of the World's Largest Digital Banking Platforms Q1’25 Main Highlights Customers (MM) 119 114 110 118.6MM 98.7MM 105 Customers Active Customers 99 +19.3MM YoY +16.1MM YoY 94 89 84 US$13.8BN US$3.2BN 75 79 Interest Earning Portfolio Revenue 70 +62% YoY FXN +40% YoY FXN 65 60 5
Slide 6: Brazil Is Still in Early Innings – We Are Doubling Down
Brazil Is Still in Early Innings – We Are Doubling Down Brazil Only Profit Pool for Key Products Revenues net of cost of funds, cost of risk and losses, 2024, US$B Gross Profit Market Share: 5% Nubank Gross Profit Market Share (%) Investments US$ 7B Marketplace US$6B Service fees US$5B Insurance US$
Slide 7: Mexico: A Massive Opportunity in Its Infancy
Mexico: A Massive Opportunity in Its Infancy Mexico Only Profit Pool for Key Products Revenues net of cost of funds, cost of risk and losses, 2024, US$B Gross Profit Market Share: <1% Nubank Gross Profit Market Share (%) Personal Loans US$ 3B Payroll Loans US$ 2B Service Fees US$ 4B Marketplace US$
Slide 8: Unlocking Long-Term Value Through Operating Leverage and Deepening Monetization
Unlocking Long-Term Value Through Operating Leverage and Deepening Monetization Monthly ARPAC (US$) Cost to Serve per Active Customer (US$) Incumbents ARPAC US$43.3 25.9 22.2 18.4 13.7 Avg. ARPAC US$11.2 10.9 8.8 6.8 4.8 3.8 2.2 1.9 0.7 0.8 0.7 0.8 0.9 0.7 1 12 24 36 48 60 72 84 96 Q1'1 8 Q1'19 Q1'2
Slide 9: Q1'25 Results
Q1’25 Results First Quarter 2025 Results 9
Slide 10: Sustained Customer Growth, Deepening Principality
Sustained Customer Growth, Deepening Principality Customers YoY: +19% Customers (MM) Active Customers YoY: +19% Adult Population (%) Active Q1’25 Customers 78.0 82.6 87.2 91.7 94.9 98.7 (MM) 59% 114.2 118.6 109.7 12% 99.3 104.5 93.9 8% 83.4% 83.6% Activity 83.1% 83.2% 83.1% 83.2% Rate (%) Q4'23 Q1'2
Slide 11: Credit Portfolio Expands with Lending Driving Mix Shift
Credit Portfolio Expands with Lending Driving Mix Shift Total Portfolio (US$BN) Total Portfolio (%) Secured Loans YoY: 40% Secured Loans Unsecured Loans Unsecured Loans Credit Cards FXN Credit Cards Credit Card: 23% FXN 1% 3% 4% 5% Unsecured Loans: 71% FXN 7% 8% Secured Loans: 302% FXN 8% FXN 24.1 1
Slide 12: Strong Loan Origination Momentum in Brazil
Strong Loan Origination Momentum in Brazil Brazil Only Originations (R$BN) YoY: 64% BRL Unsecured Loans 10% Secured Loans BRL 20.2 16% BRL 18.4 2.9 22% BRL 15.9 2.8 6% 17.3 23% BRL 12.3 BRL 13.0 2.5 15.6 10.0 1.8 13.4 1.7 Origination 1.0 10.6 11.2 Yield (%) 9.0 6.4% 6.2% 6.3% 5.8% 5.9% 5.9% Q4'23 Q1
Slide 13: Transaction Financing Continues to Fuel Growth and Enhance Credit Card Mix
Transaction Financing Continues to Fuel Growth and Enhance Credit Card Mix Brazil Only Credit Card IEP Evolution Nu Interest Earning Installments Balance Nu Revolving Balance Nu Non-Interest Earning Balance (% of Total Receivables) Market Interest Earning Installments Balance Market Revolving Balanc
Slide 14: Pix Financing: Rebounding with Discipline and Customer Focus
Pix Financing: Rebounding with Discipline and Customer Focus Brazil Only Origination 43% Other Transaction Financing Products 41% Pix Financing (exc. Riskier Bands) 106 Pix Financing Riskier Bands 100 38% Portfolio Yield (%) Monthly origination index 100 87 Penetration over Active Credit Cards (%) 3
Slide 15: Building a Scalable and Sustainable Funding Base Across LatAm
Building a Scalable and Sustainable Funding Base Across LatAm Deposits (US$BN) YoY: 48% Brazil FXN Mexico Colombia 16% 1% FXN 31.6 9% FXN 28.3 FXN 28.9 1.8 5% 16% 25.2 0.9 1.3 23.7 FXN 24.3 FXN 0.2 3.9 4.5 5.4 Cost of Deposits as a % 1.0 2.3 3.3 24.4 of Interbank 22.7 23.5 23.1 Rate 22.0 21.7 87% 89
Slide 16: NIM Evolution: Expanding Profitability in Brazil and Investing for Growth in MX/CO
NIM Evolution: Expanding Profitability in Brazil and Investing for Growth in MX/CO NII (US$MM) & NIM (%) YoY: 34% FXN 7% 5% 1,835.6 12% FXN 1,718.1 6% FXN 1,712.8 FXN 1,745.7 FXN 20% FXN 1,619.5 1,345.7 NIM Brazil (%) 22.9% 21.9% 21.8% NIM 21.8% Holdings 21.1% (%) 20.1% 19.8% 19.5% 18.3% 18.4% 17.7%
Slide 17: NIM Bridge: Solid in Brazil, Strategic in MX/CO
NIM Bridge: Solid in Brazil, Strategic in MX/CO NIM Bridge QoQ (%) 0.6% 17.7% 0.3% 17.5% -1.1% NIM Q4'24 BRA Credit Cards BRA Lending MEX & COL NIM Q1'25 First Quarter 2025 Results 17 Note 1: ‘NIM’ stands for Net Interest Margin, is annualized, and is the ratio between NII in the numerator and the d
Slide 18: Seasonal Impact on Gross Profit Margin, Driven by Credit Loss Allowances & Deposit Investments
Seasonal Impact on Gross Profit Margin, Driven by Credit Loss Allowances & Deposit Investments Gross Profit (US$MM) YoY: 32% FXN -3% 6% 1,363.4 6% 21% FXN 1,359.4 FXN 1,348.6 FXN FXN 1,319.5 3% 1,143.2 FXN 1,181.6 Gross Profit Margin (%) 47.5% 47.7% 45.8% 45.6% 43.2% 40.6% Q4'23 Q1'24 Q2'24 Q3'24 Q4
Slide 19: Scalable Model Delivering Operating Leverage
Scalable Model Delivering Operating Leverage Efficiency 91.6% NII + F&C (US$MM) Costs (US$MM) Efficiency Ratio Efficiency Ratio Without One-off 5% 8% FXN 75.8% 6% FXN 11% FXN 72.7% 72.3% FXN 15% 2,351.1 FXN 2,183.5 2,182.2 2,241.3 14% 65.6% FXN 2,075.2 12% 14% FXN 1,799.3 58.2% 12% FXN 1,599.1 55.1%
Slide 20: Strong Bottom-Line Performance with Industry-Leading Returns
Strong Bottom-Line Performance with Industry-Leading Returns Adjusted Net Income YoY: Net Income (US$MM) +62% FXN Adj. Net Income (US$MM) 395.8 442.7 562.5 592.2 610.1 606.5 Adj. ROE (%) 26% 27% 33% 33% 32% 30% YoY: 74% FXN 1% 21% FXN 553.4 5% FXN 552.6 FXN 557.2 35% FXN 487.3 ROE (%) 378.8 5% 360.9
Slide 21: Brazil Showcases the Power and Maturity of Our Model
Brazil Showcases the Power and Maturity of Our Model Brazil Only Customers (MM) Revenues (US$ MM) Net Income (US$ MM) Activity Rate (%) Efficiency Ratio (%) ROE (%) 88% % of Adult Population ROE with Constant CET1 (%) 65% 59% NIM (%) 53% 43% 45% 2,910.0 35% 104.6 36% 47% 48% FXN 37% 2,530.5 568.8 91
Slide 22: Q1'25 Credit Underwriting
Q1’25 Credit Underwriting First Quarter 2025 Results 22
Slide 23: Delinquency Ratios Tracking Expectations and Outperforming Seasonality
Delinquency Ratios Tracking Expectations and Outperforming Seasonality Brazil Only 15-90 NPLs Historical Q1 15-90 NPL Seasonality 90+ NPLs Historical Q1 90+ NPL Seasonality +70 bps 0 bps Brazil Consumer Credit Portfolio Brazil Consumer Credit Portfolio 7.2% 7.0% 6.2% 6.1% 7.0% 5.9% 6.5% 5.6% 5.5% 6.
Slide 24: Risk-Adjusted Margins Reflect Q1 Seasonality and Strategic Investments
Risk-Adjusted Margins Reflect Q1 Seasonality and Strategic Investments Credit Loss Allowance (US$MM) & Risk Adj. NIM (%) 973.5 21% FXN 40% FXN 830.7 8% 9% FXN 804.4 774.1 -4% FXN 759.8 FXN 592.5 Risk Adj. 11.0% NIM 10.2% (%) 10.1% 9.5% 9.5% 8.2% Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Note 1: ‘CLA’ stan
Slide 25: Robust Level of Credit Loss Allowance to Cover NPL Formation
Robust Level of Credit Loss Allowance to Cover NPL Formation Brazil Only Coverage Ratio Over Total Balance Coverage Ratio Over NPL 90+ Brazil Consumer Credit Portfolio Brazil Consumer Credit Portfolio 15.3% 15.2% 14.8% 14.4% 13.7% 14.9% 262.6% 257.5% 263.9% 13.5% 12.6% 242.5% 235.2% 233.9% 222.2% 22
Slide 26: Q&A
Q&A First Quarter 2025 Results 26
Slide 27: Appendix
appendix 27 First Quarter 2025 Results
Slide 28: Profitability Momentum Continues: ROE at 27%, Despite Significant Excess Capital
Profitability Momentum Continues: ROE at 27%, Despite Significant Excess Capital Financial Performance (US$MM) Metrics Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Revenues 2,736 2,849 2,943 2,989 3,248 YoY FXN 61% 61% 56% 46% 40% Gross Profit 1,182 1,359 1,349 1,363 1,319 Margin 43% 48% 46% 46% 41% Net Income (Lo
Slide 29: Compounding Effect of More Engagement and More Cross-sell Driving Ongoing ARPAC Expansion
Compounding Effect of More Engagement and More Cross-sell Driving Ongoing ARPAC Expansion Active Customers Using NuAccount Number of Products Per Monthly ARPAC by Quarterly Cohort as their Primary Banking Account (%) Active Customer (US$ | FX Neutral) US$ month/ Avg. monthly ARPAC of US$11.2/month w
Slide 30: Consistent Growth and ARPAC Acceleration Across All Cohorts Adjusted By Constant Risk Mix
Consistent Growth and ARPAC Acceleration Across All Cohorts Adjusted By Constant Risk Mix Brazil Only Adj. Purchase Volume (US$) Adj. ARPAC (US$) per Customer $30 $450 FXN US$ FXN US$ month/ month/ customer customer $400 $25 $350 $20 $300 $250 $15 $200 $150 Q1’17 2017 $10 Q1’17 2017 $100 $5 $50 Q1’2
Slide 31: Pull Back, Refine and Reaccelerate: Managing Credit Growth with Strong Unit Economics
Pull Back, Refine and Reaccelerate: Managing Credit Growth with Strong Unit Economics Brazil Only Originations (R$BN) and NPL Formation (Q1'22 = 100) Unit Economics of Unsecured Loans Unsecured Loans ROA 15% 17.3 NPL 90+ Formation (Q1’22= 100) 15.6 13% 13.4 11.2 22% 10.6 149 9.0 62% 142 121 115 8.6
Slide 32: NIM Bridge: Solid in Brazil, Strategic in MX/CO
NIM Bridge: Solid in Brazil, Strategic in MX/CO NIM Bridge YoY (%) 1.5% 19.5% -0.6% 17.5% -2.9% NIM Q1'24 BRA Credit Cards BRA Lending MEX & COL NIM Q1'25 First Quarter 2025 Results 32 Note 1: ‘NIM’ stands for Net Interest Margin, is annualized, and is the ratio between NII in the numerator and the
Slide 33: Comfortable Capital and Liquidity Positions
Comfortable Capital and Liquidity Positions Capital Position (US$Bn) Liquidity Position (US$Bn) LDR 31.6 Nu Holdings Cash & Equivalents 7.0 44% Capital Excess Capital Requireme nt 2.3 4.7 2.6x 2.0 2.0 13.8 2.7 2.7 Capital in our Geos Nu Holdings Interest Earning Portfolio Total Deposits Note 1: Braz
Slide 34: Formation Ratios Tracking Expectations
Formation Ratios Tracking Expectations Brazil Only NPL Formation Stage 3 Formation Brazil Consumer Credit Portfolio Brazil Consumer Credit Portfolio 3.9% 4.2% 3.3% 3.4% 2.9% 3.0% 3.2% 3.2% 3.4% 3.7% 3.6% 3.6% 3.0% 3.3% 2.5% 2.6% 2.6% 2.9% 3.5% 3.1% 3.1% 2.9% 3.1% 2.7% 2.6% 3.6% 2.0% 2.1% 2.9% 3.0% 2
Slide 35: NPL Ratios Over IEP Balance Imply Stable Credit Risk Through the Product Cycle
NPL Ratios Over IEP Balance Imply Stable Credit Risk Through the Product Cycle Brazil Only 15-90 NPLs Over IEP Balance 90+ NPLs Over IEP Balance Brazil Consumer IEP Brazil Consumer IEP 36.8% 35.5% 28.8% 25.4% 19.9% 15.1% 14.3% 14.1% 13.0% 12.8% 13.6% 12.9% 13.8% 12.1% 15.6% 12.1% 13.2% 10.7% 10.4% 1
Slide 36: Portfolio Growth Continues to be the Main Factor of Provision Balance Increase
Portfolio Growth Continues to be the Main Factor of Provision Balance Increase Provisions Bridge (US$MM, FXN) (178) 546 379900% 343100% 3,799 3,431 0% 0% Q4'24 ECL Growth Other Q1'25 ECL Note 1: The information presented is for Nu Holdings and includes both credit card and loan provision balance. No
Slide 37: Loan Portfolio (FX Neutral) (1/2) Steady Credit Book Expansion
Loan Portfolio (FX Neutral) (1/2) Steady Credit Book Expansion Total Portfolio (FXN US$BN) YoY: 40% Loan FXN Credit Card IEP Loan: 100% FXN Credit Card IEP: 30% FXN Credit Card non-IEP Credit Card non-IEP: 18% FXN 8% FXN 24.1 13% FXN 22.4 7% FXN 19.9 18% 8% 18.6 22% FXN 7.8 17.2 FXN 17% FXN 6.6 FXN
Slide 38: Loan Portfolio (FX Neutral) (2/2) Steady Credit Book Expansion
Loan Portfolio (FX Neutral) (2/2) Steady Credit Book Expansion Total Portfolio (FXN US$BN) YoY: 40% Loan FXN Credit Card IEP Loan: 100% FXN Credit Card IEP: 30% FXN Credit Card non-IEP Credit Card non-IEP: 18% FXN 8% FXN 24.1 13% FXN 22.4 7% FXN 19.9 18% 8% 18.6 22% FXN 7.8 17.2 FXN 17% FXN 6.6 FXN
Slide 39: Implications of 4.966 Resolution
Implications of 4.966 Resolution IFRS vs. BRGAAP NPL Figures NuBRA Regulatory Capital • Nu Holdings' consolidated financial statements, • NPL and other portfolio-related metrics • The adoption of Resolution 4.966 introduced operating figures, accounting policies, and presented herein, as well as tho
Slide 40: Non-IFRS Financial Measures and Reconciliations
Non-IFRS Financial Measures and Reconciliations This presentation includes financial measures defined as “non-IFRS financial measures” by the SEC, including: Adjusted Net Income and certain FX Neutral measures and provides reconciliations to the most directly comparable IFRS financial measure. A non
Slide 41: Non-IFRS Financial Measures and Reconciliations
Non-IFRS Financial Measures and Reconciliations Adjusted Net Income As reported Nu Holdings - Consolidated For the three-month period ended Adjusted Net Income (US$ million) Mar 31, 2025 Dec 31, 2024 Mar 31, 2024 Profit attributable to shareholders of the parent company 557.2 552.6 378.8 Share-based
Slide 42: Non-IFRS Financial Measures and Reconciliations
Non-IFRS Financial Measures and Reconciliations Q4’22 and FY22 Metrics adjusted by the CSA cancellation Nu Holdings - Consolidated December 31, 2022 As presented in the financial CSA termination As presented in the earnings US$ million statements adjustment presentation Net income (loss) – for the t
Slide 43: Non-IFRS Financial Measures and Reconciliations
Non-IFRS Financial Measures and Reconciliations Equity and Annualized ROE/Adjusted ROE US$ million Reconciliation - ROE Nu Holdings - Consolidated Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Total equity at the end of the period 6,802.7 6,923.4 7,644.3 7,647.1 8,607.9 Net Income for the period 378.8 487.3 553.4 5
Slide 44: Non-IFRS Financial Measures and Reconciliations
Non-IFRS Financial Measures and Reconciliations FX Neutral measures are prepared and presented to eliminate the effect of foreign exchange, or “FX,” volatility between the comparison periods, allowing management and investors to evaluate financial performance despite variations in foreign currency e
Slide 45: Non-IFRS Financial Measures and Reconciliations
Non-IFRS Financial Measures and Reconciliations FX Rates - On a monthly basis, Nu translates its subsidiaries figures from their individual functional currency into Nu Holdings functional currency, the U.S. Dollars ("US$"), following the requirements of IAS 21 "The Effects of Changes in Foreign Exch
Slide 46: www.investors.nu investors@nubank.com.br
www.investors.nu investors@nubank.com.br First Quarter 2025 Results 46