Nu Holdings Ltd. added 4.5 million customers in Q4’24, and 20.4 million in FY’24, reaching a total of 114.2 million customers globally by December 31, 2024, reflecting a 22% year-over-year (YoY) increase. Monthly Average Cost to Serve Per Active Customer remained below the dollar level, at $0.8 per customer. For FY’24, the Net Income almost doubled to $1.97 billion, compared to $ 1.03 in FY’23.
Nu Holdings Ltd., one of the largest digital financial services platforms in the world, released its Fourth Quarter and Full Year 2024 financial results. Financial results are expressed in U.S. dollars and are presented in accordance with International Financial Reporting Standards (IFRS).
Below are the Q4’24 and Full Year ’24 performance highlights of Nu Holdings Ltd.:
Operating Highlights:
Customer growth: Nu added 4.5 million customers in Q4’24, and 20.4 million in FY’24, reaching a total of 114.2 million customers globally by December 31, 2024, reflecting a 22% year-over-year (YoY) increase. This expansion reinforces Nu’s position as one of the world’s largest and fastest-growing digital financial services platforms. In Brazil, Nu has become the third-largest financial institution by number of customers, according to the Brazilian Central Bank. Mexico surpassed the milestone of 10 million customers and Colombia reached 2.5 million customers, maintaining its positive momentum following the launch of the Cuenta Nu product.
Engagement and activity rates: Monthly Average Revenue per Active Customer (ARPAC) stands at $10.7 in Q4’24, with more mature cohorts already at $25. On an FX neutral basis1(FXN) it grew 5% sequentially and 23% YoY, up from $10.6 from one year ago. Monthly activity rate2 is at 83.1%. While customer growth in Mexico and Colombia outpaced Brazil, initially lower activity levels in these countries temporarily impacted our consolidated activity rate.
Low-cost operating platform: Monthly Average Cost to Serve Per Active Customer remained below the dollar level, at $0.8 per customer, demonstrating the strong operating leverage of the business model. The company’s efficiency ratio improved 150 basis points (bps) sequentially, reaching 29.9% and over 610 bps better than last year.
Asset Quality: Our leading indicator, the 15-90 NPL ratio, declined once again during the fourth quarter, dropping 30 bps from last quarter to 4.1%. This improvement reflects a mix/shift toward lower-risk customer and product profiles in credit cards, combined with a higher share of secured lending. This movement also aligns with the seasonality observed in the fourth quarter. 90+ NPLs decreased by 20 bps to 7.0%, aligned with seasonality and past 15-90 ratio trends. The 90+ NPL metric behaves more like a stock than a flow measure, as it reflects the inventory of accounts that were in the 15-90 category in prior quarters.
Financial Highlights:
Net & Adjusted Income: At the Holding level, Nu continued to drive increasing profitability and posted a Net Income for Q4’24 of $552.6 million, up 7% sequentially and 85% from Q4’23 on an FXN, and an annualized ROE of 29%. For FY’24, the Net Income almost doubled to $1.97 billion, compared to $ 1.03 in FY’23. Adjusted Net Income3 for Q4’24 increased 87% from 2023 levels to $610.1 million, with an annualized adjusted ROE of 32%. Adjusted Net Income reached $2.2 billion in FY’24, compared to $1.19 billion in FY’23. These results place us among the most profitable financial institutions globally, even while maintaining a significant excess capital position at the holding level.
Revenue: Nu’s FY’24 revenues were up 58% YoY reaching $11.51 billion in FY’24 and $2.99 billion in Q4’24 maintaining high growth trajectory, while significantly strengthening our financial results, demonstrating the efficiency and compounding power of our business model.
Gross Profit: Nu’s gross profit stands at $1.36 billion in Q4’24, an 8% sequential increase and a 44% increase YoY, with $ 5,24 billion in FY’24 in comparison to $ 3,49 from FY’23, both on an FXN. Gross profit margin stood at 45.6%, returning closer to 2023 levels despite higher funding costs expected in new geos.
Liquidity: On December 31, 2024, Nu had an interest-earning portfolio (IEP) of $11.2 billion, a 75% rise YoY FXN. The lending portfolio more than doubled during the year to $6.1 billion dollars, a 22% sequential increase, also on an FXN basis. The credit card portfolio expanded 28% YoY from Q4’23 to Q4’24, and 9% sequentially FXN, to $14.6 billion. Total deposits increased 55% YoY FXN to $28.9 billion in Q4’24. In Brazil, deposits reached $23.1 billion dollars, an 11% sequential increase in FXN.
Net interest income: Increased 57% YoY. On a sequential basis, NII expanded 9% QoQ FXN, to a record high of $1.7 billion. The net interest margin (NIM) contracted 70 bps sequentially to 17.7% in Q4’24, mostly due to FX volatility and our deposit strategy in Mexico and Colombia. Risk-Adjusted NIM compressed 60bp QoQ to 9.5%, driven by the 70 bps decline in NIM, which was partially offset by improvements in cost of risk.
Business highlights – Performance in 2024 against company priorities
International Expansion: Reached 10 million customers milestone in Mexico, up 91% YoY (12% of the country’s adult population). Deposits increased 438% from 2023 to $4.5 billion and credit card customer base expanded by 70% to 5.6 million.
Ramp up secured lending in Brazil: The secured lending portfolio grew 615% YoY to $1.4 billion, representing 23% of our total lending portfolio. Nine new agreements with collateral counterparties in the public sector were signed, expanding the total addressable market for payroll loans to 70% of the segment.
Progress in High-Income and SuperCore in Brazil: The Ultravioleta customer base expanded 132% YoY, to close to 700,000 customers. Quarterly purchase volume from Ultravioleta credit cards increased 106% YoY to $1.8 billion in Q4’24, accounting for 10% of our Brazilian credit card purchase volume. Our NPS of 84 continues to set us apart as the most-loved brand among high-income customers.
Money Platform becoming a reality: Our Marketplace had over 1.0 million customers shopping on the platform throughout the year. We also launched NuTravel, with the guarantee of the best price, bundled with a multi-currency account, and we introduced NuCel, our MVNO service in partnership with Claro, further diversifying our offerings, strengthening Nu’s ecosystem, and expanding our addressable market.
“2024 was a transformational year for Nu as we advanced our mission to empower millions across Latin America with accessible, transparent and low-cost financial services. We now serve over 114 million customers, with 20.4 million net additions during the year, while strengthening engagement and deepening primary banking relationships. We achieved $11.5 billion in revenue, a 58% year-over-year growth on an FX-neutral basis, and net income nearly doubled from 2023, reaching close to $2.0 billion. We advanced in all of our priorities with significant strides in our High-Income strategy in Brazil, expanded our footprint in Mexico, and broadened our portfolio with NuCel and NuTravel. As we prepare to scale up our products and services globally, we remain focused on execution, customer-centric innovation and sustainable growth in our current markets,” said David Vélez – founder and CEO of Nubank.
Banking 4.0 – „how was the experience for you”
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Many more interesting quotes in the video below:
