Nu Holdings Ltd. · NYSE:NU
Nu — Q1 2022 Earnings Presentation
31 slides from Nu's earnings presentation, May 17, 2022
Slide 1: Earnings Release Q1'22
NU Earnings Release Q1'22
Slide 2: Nu Holdings Reports Q1'22 Financial and Operating Results
Nu Holdings Reports Q1’22 Financial and Operating Results
Slide 3: Added 5.7 million customers in the quarter, reaching 59.6 million
Added 5.7 million customers in the quarter and 22.5 million year-on-year (YoY), reaching a record 59.6 million customers and consolidating Nu’s position as one of the largest digital banking platforms in the world.
Slide 4: Revenues of $877.2 million and ARPAC of $6.7
Revenues of $877.2 million , +226% YoY on FX neutral basis (FXN), and Monthly Average Revenue per Active Customer (ARPAC) of $6.7 , +63% FXN.
Slide 5: Deposits of $12.6 billion and Interest-Earning Portfolio of $3.1 billion
Deposits of $12.6 billion , +94% YoY FXN, and Interest-Earning Portfolio of $3.1 billion , +343% YoY FXN. Loan to deposit ratio reached 24% compared to 12% in 1Q21 and 21% in 4Q21.
Slide 6: Strong growth with solid asset quality and operating efficiency
Achieved strong growth while maintaining solid asset quality and increasing operating efficiency: Nu's NPL 90+ reached 4.2% , continuously below market averages.
Slide 7: Slide 7
Slide 8: Strategic Initiatives and Business Update
Strategic Initiatives and Business Update
Slide 9: Growing and More Engaged Customer Base
Growing and More Engaged Customer Base. Nu ended Q1'22 with a record 59.6 million customers, reaching historical highs for both retail customers and SMEs. Brazilian customers increased 55% YoY to 57.3 million , representing 33% of the country’s adult population. Moreover, Nu has become the primary b
Slide 10: Expanding Product Breadth Through Proprietary and Third-Party Products
Expanding Product Breadth Through Proprietary and Third-Party Products. During the quarter, Nu launched NuPay, a payment solution for online purchases integrated with e-commerce checkout, or made in installments, enabling customers to make more convenient and secure online purchases with a few click
Slide 11: Sustained Growth of Deposit Franchise
Sustained Growth of Deposit Franchise. Deposits increased 94% YoY FXN, reaching $12.6 billion on March 31, 2022, mainly due to continued growth in Nu’s customer base, its activity ratio and increase of primary bank relationships’ share.
Slide 12: Expanding Interest-Earning Portfolio
Expanding Interest-Earning Portfolio. Portfolio increased 343% YoY FXN, reaching $3.1 billion in Q1'22. Growth was driven primarily by the ramp up of personal loans which increased 400% YoY FXN to $2.0 billion in 1Q22 and accounted for 23% of the total portfolio, compared to 9% in 1Q21. Growth was a
Slide 13: Increasing Nu's Share of Customer's Financial Lives
Increasing Nu´s Share of Customer's Financial Lives. ARPAC expanded 63% YoY FXN to $6.7 in Q1'22, mostly driven by the maturation of the Company's customer cohorts, customers' activity rate and the rollout of new products.
Slide 14: Key Operating and Financial Metrics
Key Operating and Financial Metrics
Slide 15: Customers increased 61% YoY to 59.6 million
Customers increased 61% YoY to 59.6 million in Q1’22. In Brazil, the total customers totaled 57.3 million , of which the SME customer base was up 167% , growing to 1.6 million as of March 31, 2022 from 0.6 million as of March 31, 2021. In Mexico, Nu´s customer base increased 950% and reached 2.1 mil
Slide 16: Deposits
3 Deposits increased 129% YoY, or 94% FXN, to $12.6 billion at March 31, 2022, reflecting growth in Nu’s customer base together with the ongoing execution of the Company's strategy to grow its deposit franchise, as a key pillar of its funding strategy. Fourth Quarter 2021 Results
Slide 17: Monthly Average Revenue per Active Customer (ARPAC)
Monthly Average Revenue per Active Customer (ARPAC) increased 91 % YoY, or 63% FXN, to $6.7 in Q1'22. This increase largely reflects the maturation of Nu’s customer cohorts, the rollout of new products and features, together with a healthy increase in transaction volumes, the robust expansion of Nu´
Slide 18: Non-Performing Loans Delinquency
4 Non-Performing Loans Delinquency Nu’s 90+ NPL ratio increased 70 bps in the quarter. However, if adjusted for seasonality and product mix, 90+ NPL ratio would have increased by 30 bps , in line with expectations. Nu’s 15-90 NPL ratio increased 110 bps i n the quarter. However, if adjusted for seas
Slide 19: NPL Provisions Formation Driven by Consumer Finance Portfolio Growth
Note 1: Consumer Finance data includes credit card and personal unsecured loans. Note 2: The information presented is for Brazil only. Note 3: NPL means "non-performing loan;" 15-90 NPL means a non-performing loan where a borrower is between 15 and 90 days past due. 90+ NPL means a non-performing lo
Slide 20: 5
5 Fourth Quarter 2021 Results
Slide 21: Capital and Liquidity
6 Capital In December 2021, Nu raised US$2.8 billion in the IPO, strengthening its capital position further, and adding to a total US$3.4 billion in excess capital that we kept at the holding level at the end of the first quarter. Liquidity In Q1'22, Nu reported an interest-earning portfolio of US$3
Slide 22: Revenue, Financial and Transactional Costs and Gross Profit
REVENUE, FINANCIAL AND TRANSACTIONAL COSTS AND GROSS PROFIT
Slide 23: Revenue
Revenue ($ million) Q1'22 Q1'21 7 Revenue increased 258 % YoY, or 226 % FXN, to a record high of $877.2 million in Q1’22. Interest Income and Gains (Losses) on Financial Instruments 619.4 127.3 Fee and Commission Income 257.8 117.7 Total 877.2 245.0 FX Neutral Interest Income and Gains (Losses) on F
Slide 24: Gross Profit
8 Gross Profit Gross Profit increased 154 % YoY and 131 % FXN to $294.1 million in Q1´22. The gross profit margin was 34% compared to 47% in Q1'21, reflecting the impact of ECL credit provisioning under IFRS 9, together with the dual impact of the higher interbank rate which had a positive effect on
Slide 25: Net Income (Loss)
10 Net Income (Loss) Nu reported a Net Loss of $45.1 million in Q1´22, improving 9% YoY, or 17% FXN, from the $49.4 million Net Loss in Q1'21, as a result of the lower expansion of our expenses compared to the increase in revenue, supported by the growth of Nu’s operations and customer base in all c
Slide 26: 11
11 Fourth Quarter 2021 Results
Slide 27: Glossary of Terms
12 Activity rate - is defined as monthly active customers divided by the total number of customers as of a specific date. Bacen – Central Bank of Brazil. CAC - means customer acquisition costs and consists of the following expenses: printing and shipping of a card, credit data costs (primarily consi
Slide 28: Disclaimer and forward-looking statements
14 This release speaks at the date hereof and the Company is under no obligation to update or keep current the information contained in this release. Any information expressed herein is subject to change without notice. Any market or other third-party data included in this release has been obtained
Slide 29: Non-IFRS financial measures
15 This release includes financial measures defined as “non-IFRS financial measures” by the SEC, including: Adjusted Net Income (Loss) and certain FX Neutral measures and provides reconciliations to the most directly comparable IFRS financial measure. A non-IFRS financial measure is generally define
Slide 30: Profit or Loss
03/31/2022 03/31/2021 18 Profit or Loss For the three-month period ended March 31, 2022 and 2021 (In thousands of U.S. Dollars, except loss per share) Interest income and gains (losses) on financial instruments 619,443 127,345 Fee and commission income 257,824 117,718 Total revenue 877,267 245,063 I
Slide 31: About Nu Holdings Ltd.
23 About Nu Holdings Ltd. Nu is one of the world’s largest digital banking platforms, serving nearly 60 million customers across Brazil, Mexico and Colombia. As one of the leading technology companies in the world, Nu leverages proprietary technologies and innovative business practices to create new