Nu .(US:NU)2025-11-13 21:04Financial Performance - Total revenue for the three-month period ended September 30, 2025, was $4,172,716, representing a 42% increase from $2,943,188 in the same period of 2024[18] - Net income for the nine-month period ended September 30, 2025, reached $1,976,873, up 39% from $1,419,472 in the prior year[18] - Earnings per share (basic) for the three-month period ended September 30, 2025, was $0.1617, compared to $0.1153 for the same period in 2024, reflecting a 40% increase[18] - The company reported a total comprehensive income for the nine-month period ended September 30, 2025, of $2,808,208, compared to $1,013,767 in the prior year, representing a 176% increase[20] - The company reported a net increase in loss allowance across all stages, with Stage 1, Stage 2, and Stage 3 contributing $23,840, $602,315, and $1,228,580 respectively for the current period[104] Assets and Liabilities - Total assets increased to $68,362,816 as of September 30, 2025, compared to $49,931,214 at the end of 2024, marking a 37% growth[22] - Total liabilities increased to $57,809,276 as of September 30, 2025, up from $42,284,138 at the end of 2024, representing a 36.6% increase[23] - Total equity attributable to shareholders of the parent company rose to $10,551,991 as of September 30, 2025, compared to $7,646,289 at the end of 2024, marking a 38.9% increase[23] - Total financial liabilities at amortized cost increased to $38,775,929 as of September 30, 2025, compared to $28,855,065 as of December 31, 2024, representing a growth of about 34%[156] - The Group's total assets as of September 30, 2025, were valued at US$55,150,087 million, compared to US$40,227,546 million on December 31, 2024, indicating an increase of 37.2%[186] Cash and Cash Equivalents - Cash and cash equivalents as of September 30, 2025, totaled $12,895,785, an increase from $9,185,742 at the end of 2024[22] - Cash flows generated from operating activities for the nine-month period ended September 30, 2025, amounted to $2,669,433, compared to $1,028,947 in 2024, reflecting a significant increase[28] - Cash and cash equivalents at the end of the period reached $12,895,785, up from $7,645,754 at the end of September 2024, representing a 68.5% increase[29] Credit Loss and Allowances - Credit loss allowance expenses for the nine-month period ended September 30, 2025, were $2,963,219, compared to $2,364,628 in the same period of 2024, reflecting a 25% increase[18] - The company reported a credit loss allowance expense of $3,304,609 for the nine-month period ended September 30, 2025, up from $2,569,667 in 2024, indicating a 28.6% increase[28] - The total credit loss allowance increased to $1,380,214 as of September 30, 2025, compared to $752,611 in the previous year, reflecting a net increase of $627,603[120] Operating Expenses - The company’s total operating expenses for the nine-month period ended September 30, 2025, were $1,887,914, slightly up from $1,861,827 in the prior year[18] - Total transactional expenses for the three-month period ended September 30, 2025, increased to $104,990 million, up 76.4% from $59,454 million in the same period of 2024[69] - Customer support and operations expenses for the three-month period ended September 30, 2025, totaled $(174,843) million, a decrease from $(349,262) million in the same period of 2024[73] Interest Income and Expenses - Interest income and gains net of losses on financial instruments for the nine-month period ended September 30, 2025, were $9,438,357, up from $7,137,362 in the same period of 2024, a 32% increase[18] - Interest expense on deposits for the nine-month period ended September 30, 2025, was US$2,770,941, an increase of 64.4% from US$1,687,921 in 2024[68] - Total interest income and gains net of losses on financial instruments for the three-month period ended September 30, 2025, reached US$3,577,478, a 44.7% increase from US$2,473,807 in the same period of 2024[65] Future Plans and Expectations - The company plans to expand its portfolio of credit and other financial products in Mexico following the regulatory approval to convert Nu Mexico Financiera into a bank[32] - The company plans to continue expanding its operations in Brazil, Mexico, and Colombia through existing product lines and new product introductions[34] - The company expects seasonality effects to become more pronounced in future periods, particularly benefiting from higher purchase volumes in the fourth quarter due to the holiday season[36] Taxation - The company’s Brazilian operations are subject to a statutory corporate income tax rate of 40%, which exceeds the new QDMTT standards of 15%[44] - The income tax expense for the nine-month period ended September 30, 2025, was $813,851 million, compared to $608,276 million for the same period in 2024, indicating a year-over-year increase of approximately 33.8%[200] Derivatives and Financial Instruments - The Group's total notional amount of derivative financial instruments increased significantly from $2,167,022 million to $5,439,601 million, indicating a growth of approximately 150.5%[140] - The fair value of total assets related to derivatives rose from $75,464 million to $287,731 million, marking an increase of approximately 280.5%[145] - The total fair value of derivative financial instruments was US$293,347 million as of September 30, 2025, compared to US$75,464 million at the end of 2024, reflecting a significant increase of 287.5%[190]