Nubank Expands to 127M Clients as Q3 Profit Outperforms

Strong Quarter Tops Analyst Forecasts

Nu Holdings (NYSE:NU), the parent company of Brazilian digital lender Nubank, posted a 39% increase in third-quarter net income, lifted by solid performance in its Brazilian and Mexican units. The company earned $783 million between July and September, beating the $757 million average forecast in an LSEG analyst poll.

The results, released Thursday, reinforced Nubank’s reputation as Latin America’s largest digital bank and one of the region’s most profitable fintechs. Shares rose about 3% in post-market trading later than the announcement.

Chief Financial Officer Guilherme Lago told Reuters that the profit increase was driven by scale gains in Brazil and tighter balance sheet management in Mexico. “The combination of these two things, the operating leverage in Brazil, and the asset liability management in Mexico, led to a large boost to Nubank’s consolidated results,” he said.

Investor Takeaway

Profitability and Lending Metrics

The firm’s annualized return on equity rose to a record 31%, up from 30% a year earlier, while revenues climbed 39% to $4.2 billion, beating expectations of $3.8 billion. Net interest income grew 32% year-on-year, though the net interest margin slipped by one percentage point to 17.3%.

Analysts at Jefferies described the quarter as “a solid beat with no red flags in credit quality,” noting that management maintained guidance for loan delinquencies. The 15–90 day delinquency rate in Brazil fell to 4.2%, down 0.2 percentage points from both the prior quarter and the previous year. Loans overdue by more than 90 days reached 6.8%, lower than 7.2% a year earlier but slightly higher than 6.6% in the second quarter, which Lago attributed to seasonal trends.

Nubank ended the quarter with 127 million customers across Brazil, Mexico, and Colombia, and a total credit portfolio of $30.4 billion, up 42% from a year earlier. The company continues to expand its regional footprint, announcing in September plans to enter the United States.

Outlook and Market Reaction

Nubank’s results show its model continues to scale efficiently in Latin America’s largest markets. In Brazil, lower funding costs and stable credit performance supported margins, while in Mexico, deposit repricing assisted lift profitability despite currency headwinds. The group’s diversified growth across geographies has also mitigated exposure to local economic sluggishdowns.

Analysts say Nubank’s ability to grow its loan book while maintaining solid credit quality positions it well against incumbent banks. Its cost base remains lean compared to traditional lenders, and its mobile-first platform has given it a competitive edge in customer acquisition.

In the broader context, Nubank’s quarter contrasts with other global fintechs facing pressure from and fragileer lending demand. The firm’s results suggest its focus on low-cost deposits and cross-market expansion continues to pay off. With over 70% of its customer base in Brazil and accelerating traction in Mexico, the company remains among the quickest-growing consumer banks globally.

Investor Takeaway

Background

Founded in 2013 and headquartered in São Paulo, Nubank has become one of the most valuable , backed by investors such as Berkshire Hathaway and Sequoia Capital. The bank’s expansion into Mexico and Colombia has been central to its growth strategy, while its U.S. listing under the holding company Nu Holdings has provided additional access to international capital markets.

The company’s next challenge will be sustaining profitability while expanding lending products in new regions. Its push into the U.S. market is expected to test whether its can replicate its Latin American success in a more mature environment.