Customer Growth and Market Expansion - Approximately 80-90% of new customers were acquired organically each year since inception, primarily through word-of-mouth referrals [204]. - Nu Mexico doubled its customer base to over 10 million in 2024, with a 14 percentage point increase in brand awareness [226]. - The launch of the savings account in Colombia led to a growth from 1 million to 2 million customers in less than 5 months, making it the 4th largest savings account provider in the country [235]. - Nubank expanded its customer base in Colombia from approximately 800,000 in December 2023 to over 1.2 million in December 2024 [253]. - The number of unique customers with accounts in Brazil reached over 199 million as of December 31, 2024, a 2.9% increase from 194 million in 2023, with 47% having an active account [285]. Financial Performance and Revenue - Nubank's revenue for the year ended December 31, 2024, was US$8,409.9 million in Brazil, compared to US$523.1 million in Mexico and US$111.8 million in Colombia, showing significant growth from the previous year [297]. - Customer deposits in Brazil totaled US$387 billion as of December 31, 2024, reflecting a 12% FX-neutral increase from US$374 billion in 2023 [286]. - The average outstanding loans to customers in Brazil reached US$691 billion, with credit cards accounting for 15% of this total [259]. - Nubank's payroll loans in Brazil reached US$122 billion, making it the second largest loan product in terms of credit portfolio [260]. - Nubank's personal unsecured loans achieved a 24% market share in Brazil, with new loan originations growing 32% FX-neutral over 2023 [261]. Market Share and Transaction Volumes - Total Pix transaction volumes reached US$4.9 trillion in 2024, a 54% FX-neutral increase over 2023, with the company holding close to 20% market share in transfer originations [250]. - Nubank's market share in total card transaction volumes in Brazil reached 15% in 2024 [251]. - In Mexico, Nubank grew its credit card customer base to 5.6 million in 2024, a 70% increase from 2023, with 50% of these customers being first-time credit card users [252]. - Nubank's market share in Mexico surpassed 5% in terms of purchase volume according to Banxico statistics [252]. Marketing and Brand Affinity - The company's blog attracted nearly 47 million unique visitors in 2024, covering over 435,000 keywords related to financial education [205]. - The marketing strategy in Brazil resulted in a 10% increase in brand affinity among mass market customers and a 22% increase in client preference compared to December 2023 [212]. - The Ultraviolet brand targeting high-income customers saw an 11 percentage point increase in brand affinity year-over-year [218]. - The influencer program in Brazil generated 156 million impressions and 1.8 million total engagements in 2024 [224]. Regulatory Environment and Compliance - The regulatory environment in Brazil imposes extensive requirements on payment institutions, financial institutions, and securities brokers, ensuring compliance with risk management and anti-money laundering regulations [310]. - Payment institutions in Brazil must segregate prepaid payment account funds from their own assets, holding them in specified instruments to protect against bankruptcy [316]. - The Central Bank of Brazil oversees the activities of financial institutions and regulates the structure and operation of financial markets [349]. - The Anti-Money Laundering Law plays a significant role in regulating banking and payment activities, imposing penalties for illicit activities [420]. Product Development and Innovation - The company launched more than 17 product features in Mexico, enhancing its portfolio value proposition [232]. - Nubank's active insurance policies exceeded two million by December 2024, achieving an annual growth rate of 60% [294]. - The Brazilian e-commerce market reached a gross merchandise volume of almost US$38 billion in 2024, indicating a robust growth environment for Nubank's marketplace initiatives [295]. Risk Management and Capital Requirements - The prudential conglomerate led by Nu Pagamentos is subject to a minimum regulatory capital requirement of US$1.9 billion (R$11.7 billion) as of December 31, 2024 [386]. - The new prudential framework mandates that financial institutions maintain capital ratios based on Total Capital relative to risk-weighted assets, aligning with Basel III standards [379]. - Minimum paid-in capital requirements for payment institutions range from R$1.0 million to R$3.0 million depending on the type of activity [374]. - The transition period for the new provisioning model for expected credit loss will span from 2025 to 2028, allowing for phased incorporation of regulatory capital impacts [373].

Nu Holdings looks grossly undervalued relative to its growth potential.Many hypergrowth stocks stumbled this year as the Trump administration's unpredictable tariffs sparked fresh fears of a recession and drove people back toward more conservative investments. However, investors who can look past those near-term headwinds should be taking the contrarian view and shopping around for some long-term winners.One of those potential winners is Nu Holdings (NU 2.88%), more commonly known as Nubank. It's the larges ...

Core Viewpoint - Nu Holdings Ltd. (NU) has experienced a significant stock decline of nearly 27% over the past six months, contrasting sharply with the 6% growth in the industry [1] Company Performance - NU's performance is notably weaker compared to peers, with Banco Santander (Brasil) S.A. (BSBR) declining approximately 11% during the same period, while SoFi Technologies (SOFI) surged over 26% [2][3] - The company has a diversified revenue model that includes lending, interchange fees, and marketplace services, which helps mitigate risks and provides stability during economic uncertainties [6] - In the fourth quarter, NU reported a 24% year-over-year revenue increase, indicating robust financial performance [8] Customer Growth and Market Position - NU has added 4.5 million customers in the fourth quarter of 2024, bringing its global customer count to 114.2 million, driven by its digital-first strategy [5] - The company is expanding its operations across Latin America, particularly in Mexico and Colombia, where adoption is accelerating [5] Financial Metrics - NU's trailing 12-month Return on Equity (ROE) is 30.4%, significantly higher than the industry average of 11.1% [9] - The trailing 12-month Return on Invested Capital (ROIC) stands at 12.5%, well above the industry average of 3% [11] Earnings and Sales Growth - The Zacks Consensus Estimate for NU's 2025 earnings is 54 cents, indicating a 20% growth from the previous year, with expected earnings growth of 45.7% in 2026 [13] - Sales are projected to grow by 33.7% and 26.3% year-over-year in 2025 and 2026, respectively [13] Valuation Concerns - NU stock is currently trading at 17.77 times forward earnings, more than double the sector's average of 8.58 times, reflecting market optimism about its growth potential [14] - The high valuation introduces risks, as any earnings shortfall or slower growth could lead to a sharp correction [14] Investment Outlook - While NU's innovative fintech model and strong financial performance justify its valuation, the current price levels may limit near-term upside potential [15] - Existing investors may consider holding positions for long-term growth, while new investors might wait for a pullback before entering [15]

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Cathie Wood and Warren Buffett could not be more different in their investing style, but they have one thing in common: Nubank (NYSE: NU )The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn moreJames Foord is an economist by trade and has bee ...

Nu Holdings ( NU ) is capitalizing on the LatAm banking by blending scale, speed, and simplicity through a digital-first model. With 114 million clients across Brazil, Mexico, and Colombia, the company’s growth is nothing short of explosive, backed by a rising deposit base, strong engagement, andYiannis Zourmpanos, founder of Yiazou IQ, an AI-driven stock research platform providing all-in-one stock reports. Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Edu ...

This is a rapidly growing company. It has found remarkable success catering to a part of the world that has a big underbanked and unbanked population. Nu's focus on using technology to better serve customers has been a winning strategy. Revenue grew 1,782% from $612 million in 2019 to $11.5 billion in 2024. This was supported by a customer base that expanded nearly six-fold during that time. More than half of adults in Brazil are Nu customers. Colombia and Mexico, while newer markets, also have huge potenti ...

If you'd like to learn more about how to best position yourself in under valued stocks mispriced by the market to end Q1, consider joining Out Fox The Street .Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NU over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not rece ...

Despite having a market cap of more than $50 billion, Nu Holdings (NU -4.17%) might not be a familiar business to many investors in the U.S. That's because its operations are in Brazil, Mexico, and Colombia.The company's shares have been volatile since their initial public offering in December 2021. However, they have soared 180% in the past 24 months. This is true even though there's been a 26% drop since November. Nu trades for less than $12 a share. Does this make the fintech stock a smart buying opportu ...

Warren Buffett often talks about the role of luck, about being born in the United States, and also his famous quote “Don't bet against America”. I'm mentioning this because being a long-term investor in US stocks is different fromEquity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collaborations or t ...