Earnings
Home›Earnings›Results›Nubank profit tops $1 billion for first time, shares j…
Nubank profit tops $1 billion for first time, shares jump after hours
Nu Holdings posted $1.06 billion in net profit, driven by a higher risk-adjusted net interest margin and falling cost of credit.
Brazilian digital lender Nubank, whose parent trades as Nu Holdings, reported its first quarter with net profit above $1 billion, beating analysts' expectations and sending shares higher after the bell, according to Reuters via Yahoo Finance.
Nu Holdings generated $1.06 billion of net profit in the April to June period, up 49% year over year on a foreign exchange neutral basis, compared with a $967.2 million estimate cited by Visible Alpha. The company said revenue rose 39% to $5.88 billion, above the $5.60 billion forecast.
The profit increase was attributed to a stronger risk-adjusted net interest margin, which rose to 12.4% from 9.9% a year earlier. Nubank also reported cost of credit declined to $1.69 billion from $1.79 billion in the prior quarter, though it was still 60% higher than a year earlier.
Nubank said it benefited from Brazil's Desenrola debt refinancing program, though its CFO Rob Livingston told Reuters that Desenrola accounted for only about 5% of total cost of credit, and that the improvement would have occurred even without the program due to seasonal factors. The credit portfolio stood at $39.4 billion, and early delinquency rates were 4.8%, up 0.3 percentage points year over year but down from 5.0% in the first quarter.