Nu Holdings recently released its second quarter earnings and easily surpassed analyst estimates on both revenue and adjusted EPS. The company's high growth continued, with revenue up 39% and earnings up 49% y/y for the quarter. The bank's NPL ratios were a disappointing spot in the quarter: they remained far above average (less NPLs is better than more).
Lee Ainslie's Maverick Capital executed one of its most dramatic portfolio rotations in years, pivoting away from mature chip leaders and consumer discretionary names.
Nu's profits are surging as it gains millions of new customers. Credit cards and unsecured loans make up the bulk of the lending portfolio, two product lines that carry higher risk.
Nu ended the second quarter with about 118 million customers in Brazil out of 138.9 million globally. Quarterly net income surpassed $1 billion for the first time, rising 49% year over year on a currency-neutral basis.
Nu Holdings (NU) shares are ripping higher this morning after the neobank reported blowout fiscal Q2 earnings, featuring a decisive top- and bottom-line beat. On the back of record unit economics, NU's revenue climbed 39% year-on-year to $5.9 billion – helping its net income soar a remarkable 49% to $1.1 billion in the second quarter.