Nu Holdings Ltd. suffered a loss of 12 billion dollars in market value, marking its worst session following the publication of its fourth-quarter earnings. Shares closed down 19 percent after the results fell short of analysts' estimates. The return on equity was 29 percent, in line with forecasts, but net income totaled 552.6 million dollars, below the estimated 566.4 million.
The company, active in Brazil, Mexico, and Colombia, added 4.5 million customers during the quarter, reaching nearly 114.2 million by the end of December. Citigroup expressed a negative view on the results, noting a more cautious stance from Nu regarding its revenue sources, raising concerns.
Macroeconomic uncertainty in Brazil has led Nubank to adopt a more conservative approach, especially with the expectation that interest rates will continue to rise. The company is focused on growing in lower-risk segments, such as higher-income customers and secured loans. The bank's portfolio of secured loans grew significantly, now representing 23 percent of its total loan portfolio.
Although the Brazilian real fell sharply last year, Nu Holdings Ltd. has achieved remarkable growth since its inception as a fintech in 2013, transforming into a regional giant with 114 million customers. The company highlighted the improvement in managing overdue loans as a positive aspect within the reported results, aiming in the long term to become a global digital bank powered by artificial intelligence.
Nu's CEO, David Velez, mentioned that they will take significant steps in 2025 to support their products and services on a global scale. He plans to internationalize their business model in the coming years. Despite the decline suffered and the loss of the status of the most valuable publicly traded bank in Latin America, Nu seeks to continue expanding and consolidating in the international market.
