Paris, November 5, 2025 Q3-25 net income: +24%     KEY FIGURES1 Q3-25: 9% YoY growth in net banking income, to €6.4bn, driven by organic growth across all business lines               Gross operating income up 22%, reflecting very strong control over expenses <p style="margin: 3pt 2.85pt 0.0001pt 1.4pt; line-height: normal; font-size: 10pt; font ...

Core Insights - Nu Holdings is expanding into the U.S. market, aiming to enhance its growth potential and compete with established digital banks like SoFi Technologies [1][6][7] Company Overview - Nu Holdings has achieved significant growth in Latin America, particularly in Brazil, where it has successfully targeted both unbanked consumers and affluent clients [2] - The company has also entered Mexico and Colombia, receiving a full banking charter in Mexico, which allows for a broader range of products and services [4] International Expansion - Nu made a strategic investment of $150 million in Tyme Group, a digital bank operating in South Africa and the Philippines, indicating its intent for global expansion [5] - The company has applied for a domestic banking license in the U.S., aligning with its goal to evolve into a global banking model while focusing on growth in existing markets [6] Competitive Landscape - Nu and SoFi are both disruptive players in the digital banking sector, with potential competition as they target different consumer segments [7][9] - While Nu is currently in a learning phase, it has demonstrated rapid and profitable growth, positioning itself as a formidable competitor in the global market [9] Market Valuation - Nu's stock is perceived as undervalued compared to SoFi, especially when considering expected earnings growth, making it an attractive option for risk-tolerant investors [11][13]

Core Viewpoint - SoFi Technologies has seen a significant stock increase of 450% over the past three years, indicating strong investor interest and potential for further gains [1] Company Overview - SoFi is an all-digital bank that is appealing to younger, tech-savvy customers seeking digital-first banking options [3] - Originally a cooperative for student loan funding and refinancing, SoFi has evolved into a comprehensive financial platform offering standard banking services and innovative products like private equity funds and cryptocurrency trading [4] Financial Performance - In the second quarter, SoFi reported a 44% year-over-year growth in adjusted net revenue and a remarkable 700% increase in earnings per share (EPS) [5] - The company is generating more revenue from low-cost, fee-based products, contributing positively to its financial performance [5] Customer Base and Growth Strategy - SoFi's core customer base, consisting of students and young professionals, is increasingly engaging with the platform as their financial needs become more complex [6] - The company has seen a 34% year-over-year increase in both new customer acquisition and product offerings in the second quarter [6] Market Trends - A decline in interest rates has benefited SoFi, particularly in its lending segment, which originated a record $8.8 billion in loans in the second quarter, with home loans increasing by 92% year-over-year [7] - Despite a recent decline in stock price, SoFi's shares may be available at a better price ahead of its third-quarter earnings report on October 28 [8]

Core Insights - YUP, a Southeast Asian fintech company, recently completed a $32 million funding round, bringing its total funding to over $100 million since its establishment in 2021 [4][5]. - The company targets Indonesia's 80 million salaried workers who lack access to traditional banking services, offering a dual product of physical credit cards and virtual e-wallets [5][6]. - YUP's business model is inspired by Brazil's Nubank but tailored for Asia's mobile payment landscape, integrating various services within its app [6][8]. Funding and Growth - The latest funding round was led by several U.S. growth funds, recognizing Indonesia's potential as superior to Brazil's at the time of Nubank's inception [4][5]. - YUP has achieved an annual revenue growth rate of approximately 300% since its inception, with a monthly card issuance volume nearly 10 times that of Indonesia's largest commercial bank [10] [5]. Market Opportunity - The Southeast Asian digital economy is projected to reach $263 billion in 2024, with a 15% year-on-year growth, indicating a robust market for fintech solutions [6]. - YUP's target demographic includes a new group of salaried workers with stable social security records who still struggle to access basic credit services [5][6]. Technology and Risk Management - YUP has developed an in-house risk management system utilizing 11 neural network models and over 7,500 feature variables, achieving a transaction success rate of 99.9% [8][9]. - The company emphasizes its superior risk control capabilities compared to local banks and fintech firms, relying solely on its proprietary technology [9]. Localization and User Acquisition - Over 80% of YUP's employees are local Indonesians, enhancing its understanding of the market and customer needs [10]. - YUP's user acquisition strategy focuses on organic growth through local brand building and channel partnerships, with 90% of users coming from natural traffic [10]. Future Expansion - YUP plans to expand into Vietnam, the Philippines, and Thailand by the second half of 2026, leveraging its experience in the Southeast Asian market [10].

Core Insights - Klarna has successfully gone public in the U.S. after a five-month delay, trading on the New York Stock Exchange under the ticker KLAR, with shares priced at $40, resulting in a $15 billion valuation [1][2] Company Strategy - Klarna aims to be ubiquitous in payment acceptance, aspiring to have its services available at every checkout, both for consumers and merchants [2][3] - The company is not limited to traditional retail transactions but seeks to capture a wide range of transactions, from small purchases to larger expenses [3] - Klarna has established partnerships with various platforms, including Zoom, Adobe, Uber, DoorDash, eBay, and Nike, to enhance its service offerings [4] Merchant Integration - Strategic partnerships with payment service providers like JPMorganChase and Stripe have been crucial for Klarna's integration into merchant and e-commerce checkouts, with 200,000 new merchants added in the past year through Stripe alone [5] Long-term Vision - Klarna is positioning itself to become a comprehensive digital bank, leveraging its existing banking capabilities in Europe and expanding its product suite in the U.S. market [6] - The company views the integration of banking services as a natural extension of its payment and shopping offerings, identifying significant growth opportunities in the digital banking sector [6][7]

Core Viewpoint - Klarna Group Plc is set to go public with an IPO priced at $40 per share, reflecting an implied market capitalization of $15.1 billion, which is expected to yield significant returns for its major investor, Sequoia Capital [1][2] Company Overview - Klarna Group, founded in 2005 and headquartered in Stockholm, Sweden, specializes in "buy now, pay later" (BNPL) services, offering online and offline payment solutions to consumers and merchants [4] - The company has over 100 million users globally and serves tens of thousands of merchants, positioning itself as a key player in the BNPL sector [4] Financial Performance and Valuation - At its peak in 2021, Klarna's valuation reached $45.6 billion following a $639 million investment led by SoftBank Group, but it plummeted to approximately $6.7 billion by 2022 due to market volatility [2] - Sequoia Capital's investment of around $500 million in Klarna is now valued at approximately $3.2 billion, indicating a potential return of over six times the original investment [1][2] Market Context - The IPO market is experiencing a resurgence, particularly in the U.S., with Klarna's IPO being one of the significant offerings this year, following other notable IPOs in the tech sector [2] - Klarna's main competitor, Affirm Holdings Inc., has seen its stock price increase by over 40% this year, highlighting the competitive landscape in the fintech sector [2] Corporate Governance - Klarna faced a notable boardroom conflict involving Sequoia's leadership, which included attempts to remove a long-time board member, Michael Moritz, who has been a strong supporter of the company [3]

Core Insights - Klarna Group Plc is pricing its IPO at $40 per share, implying a market capitalization of $15.1 billion, which is expected to yield significant returns for its major investor, Sequoia Capital [1][2] - Sequoia Capital's total investment in Klarna is approximately $500 million, and the value of its shares at the IPO pricing is around $3.2 billion, indicating a potential return of over six times the original investment [1][2] - Klarna's valuation has fluctuated dramatically, peaking at $45.6 billion in 2021 and dropping to about $6.7 billion in 2022 due to market volatility in the fintech sector [2] Company Overview - Klarna Group, founded in 2005 and headquartered in Stockholm, Sweden, specializes in "buy now, pay later" (BNPL) services, offering payment and installment solutions for both consumers and merchants [4] - The company provides various BNPL options, including "Pay in 4" and "Pay in 30 days," and integrates features like price comparison and cashback within its app, positioning itself as a comprehensive shopping and payment platform [4] - Klarna serves over a hundred thousand merchants and has accumulated around 111 million users globally, making it a significant player in the BNPL sector [4] Market Context - The IPO of Klarna is part of a broader resurgence in the global IPO market, particularly in the U.S., which is expected to see a busy week for listings [2] - Klarna is recognized for its innovative financing solutions and aims to expand into a global digital banking entity, offering digital debit cards and other financial products [2] - The competitive landscape includes players like Affirm Holdings Inc., whose stock has risen over 40% this year, highlighting the growing interest in BNPL services [2]

Core Viewpoint - Beijing Bank aims to become a world-class digital bank, emphasizing the importance of technology in driving its development and services [1] Group 1: Financial Performance - In the first half of 2025, Beijing Bank reported operating income of 36.218 billion yuan, a year-on-year increase of 1.02% [4] - The net profit attributable to shareholders reached 15.053 billion yuan, up 1.12% year-on-year [4] - Basic earnings per share were 0.69 yuan, reflecting a year-on-year growth of 1.47% [4] - As of mid-2025, total assets amounted to 4.75 trillion yuan, a growth of 12.53% since the beginning of the year [4] - The total amount of loans and advances was 2.39 trillion yuan, increasing by 8.18% year-to-date [4] - Total liabilities reached 4.36 trillion yuan, up 12.94% from the start of the year [4] - Deposits totaled 2.65 trillion yuan, reflecting an 8.39% increase since the beginning of the year [4] Group 2: Strategic Initiatives - The bank's technology financial loan balance reached 434.6 billion yuan, with a year-to-date increase of 70.3 billion yuan, representing a growth rate of 19% [1] - The bank serves over 26,000 specialized and innovative enterprises, an increase of nearly 6,000 since the beginning of the year [1] - Future plans include upgrading the technology innovation evaluation system and enhancing intellectual property evaluation capabilities [1] - The bank aims to improve service efficiency through an investment banking-driven approach, focusing on technology innovation bonds and mergers and acquisitions [1] Group 3: Market Conditions - In the first half of 2025, the overall trend of deposit and loan interest rates continued to decline due to multiple factors [2] - The net interest margin for commercial banks was 1.42%, down 10 basis points from the beginning of the year [2] - Beijing Bank's cost of liabilities was 1.72%, a year-on-year decrease of 37 basis points, indicating effective cost management [2] - The bank anticipates continued downward pressure on asset yields due to factors such as corporate bond replacement and loan competition [2]

Core Viewpoint - JPMorgan Chase is set to launch its Chase digital retail bank in Germany in the second quarter of next year, marking a significant entry into Europe's largest banking market [1] Company Summary - JPMorgan Chase has been preparing for this project for several years and has conducted multiple rounds of hiring [1] - The bank has previously launched the Chase digital retail bank in the UK in 2021, making Germany its second European market [1] Industry Summary - The move comes as Spain's external bank has also announced plans to launch a digital bank in Germany, indicating increased competition in the digital banking sector within the country [1]

Group 1 - The core viewpoint of the article is that Zhaoyin International has raised the target price for ZhongAn Online (06060) to HKD 23, maintaining a "Buy" rating due to strong performance in property insurance and digital banking, as well as the technology business reaching breakeven [1] - ZhongAn Online's earnings per share forecasts for 2025 to 2027 have been increased from RMB 0.67, 0.75, and 0.88 to RMB 0.80, 0.94, and 1.08 respectively [1] - The company's net profit for the first half of the year surged over 11 times year-on-year to RMB 668 million, achieving 66% of the annual forecast [1] Group 2 - The combined ratio (COR) for property insurance improved by 2.3 percentage points year-on-year to 95.6% [1] - Underwriting profit increased by 123% to RMB 627 million [1] - ZhongAn Bank has turned profitable earlier than market expectations [1]