Key Highlights
- Nu Holdings achieved a historic milestone with $1.06 billion in Q2 2026 net profit, marking a 49% year-over-year increase
- The digital bank’s quarterly revenue surged 39% to $5.88 billion, surpassing Wall Street’s $5.60 billion projection
- Shares of NU climbed approximately 9.5% in extended trading sessions, reaching about $15.25
- Customer base expanded to 139 million users spanning Brazil, Mexico, and Colombia
- Risk-adjusted net interest margin strengthened to 12.4%, compared to 9.9% in the prior-year period
Nu Holdings achieved a significant milestone in its latest quarterly performance, surpassing the billion-dollar net income threshold for the first time in company history. Following Thursday evening’s earnings announcement, shares surged roughly 9.5% in after-hours trading, touching approximately $15.25.
The digital banking giant reported net income of $1.06 billion for the second quarter ending in June, representing a 49% year-over-year jump on a currency-neutral basis. This performance exceeded Visible Alpha’s consensus projection of $967.2 million.
Total revenue advanced 39% to reach $5.88 billion, comfortably topping the analyst consensus of $5.60 billion.
Perhaps the most impressive metric was the company’s risk-adjusted net interest margin, which jumped to 12.4% in the second quarter from 9.9% in the same period last year and 9.5% in the first quarter of 2026.
According to JPMorgan analysts, even the most optimistic projections had estimated risk-adjusted NIM around 11%, making this performance a significant upside surprise.
Credit Expenses and Asset Quality
The cost of credit decreased to $1.69 billion from $1.79 billion in the previous quarter. While this figure remains 60% above year-ago levels, the quarter-over-quarter decline provided relief following concerns raised by investors during the prior reporting period.
Early-stage delinquency rates improved to 4.8% from 5% in the first quarter, though they ticked up 0.3 percentage points compared to last year. The ratio of non-performing loans past 90 days increased by 35 basis points to 6.9%.
Rob Livingston, who assumed the CFO position last month, expressed confidence that the margin expansion would continue. He attributed the gains to a combination of seasonal dynamics and Brazil’s Desenrola debt-refinancing initiative, while clarifying that the program contributed only approximately 5% of the total credit costs.
The overall credit portfolio expanded 37% year-over-year to $39.4 billion, distributed across credit cards ($26 billion), unsecured loans ($10.3 billion), and secured lending products ($3.1 billion).
Customer Base and Market Expansion
Nu welcomed approximately 4 million new customers during the second quarter, pushing the total customer count to 139 million. The Brazilian market represents nearly 118 million of these users, with the monthly engagement rate surpassing 86% for the first time.
The company achieved a major milestone in Mexico, officially becoming the nation’s largest digital banking platform following its comprehensive bank launch in August, now serving 16 million customers. Meanwhile, Colombia’s customer base exceeded 5 million.
The average revenue generated per active customer reached approximately $17 during Q2, maintaining its upward trajectory.
Nu also showcased advancements in its AI technology with NuFormer, the proprietary AI model now managing more than 60% of customer service interactions in Brazil. The most recent iteration delivered four times the context capacity and processing speed while simultaneously reducing operational expenses.
Return on equity stood at 33% at quarter-end. Total customer deposits grew to $45.3 billion, reflecting an 18% year-over-year increase.
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