Financial Data and Key Metrics Changes - In Q4 2025, revenues reached $4.9 billion, up 45% year-over-year, driven by strong customer growth and higher ARPAC, which reached $15 per active customer, up approximately 9% quarter-over-quarter and 27% year-over-year [6][7] - Gross profit for the same period was nearly $2 billion, reflecting a 38% year-over-year increase, while net income rose 50% year-over-year to $895 million, achieving a record return on equity of 33% [8][25] - The efficiency ratio improved to 19.9%, falling below 20% for the first time in the company's history, indicating operating leverage with net revenues growing faster than operating expenses [23] Business Line Data and Key Metrics Changes - The total portfolio reached $32.7 billion, up 40% year-over-year, with credit cards growing 12.2% quarter-over-quarter, marking the strongest quarterly growth since the end of 2023 [16] - Unsecured lending surpassed $8 billion, with record high originations of $4 billion in Q4, while secured lending grew 3.8% quarter-over-quarter [17] - Deposits totaled $41.9 billion, up 29% year-over-year, with growth across all three countries, reflecting typical fourth quarter seasonality [18] Market Data and Key Metrics Changes - In Brazil, Nubank became the largest private financial institution by number of customers, reaching 113 million with an activity rate of 86% [10] - In Mexico, customer count reached 14 million, with significant progress in the banking license process [10] - In Colombia, the customer base surpassed 4 million, with the subscription-based credit card significantly increasing approval rates [10] Company Strategy and Development Direction - The company aims to transition from a Latin American leader to a global digital banking platform, focusing on winning in core markets, strengthening foundations for international expansion, and leveraging AI as a superpower [11][12] - Key priorities include deepening leadership in Brazil's mass market, expanding share of wallets, and growing high-end presence through Ultravioleta [12] - Investments in AI and new technologies are expected to enhance customer experience and operational efficiency, despite potential short-term pressures on the efficiency ratio [24][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain strong credit quality indicators and highlighted no signs of deterioration in asset quality [21][63] - The company anticipates an uptick in NPLs in the first quarter of 2026 due to seasonal trends but remains comfortable with current credit quality metrics [67] - Management views AI as a significant opportunity for enhancing revenue and reducing costs, positioning the company favorably in the evolving financial services landscape [35] Other Important Information - The company introduced a new managerial reporting framework to enhance visibility into value creation and internal performance, which is fully reconciled to IFRS [4][14] - A one-off item related to a sector-wide deposit insurance fund in Mexico resulted in an extraordinary contribution of approximately $25 million, impacting interest expenses for the quarter [19] Q&A Session Summary Question: Risks and Opportunities of AI for Nubank - Management sees AI as both a challenge and an opportunity, emphasizing that credit revenue is the most sustainable type of revenue in financial services, with significant potential for cross-selling and new product offerings [30][32] Question: Impact of CLIP Increases on Credit Card Growth - The increase in unused credit limits from $18 billion to $29 billion was attributed to successful credit underwriting technologies, with expectations for continued growth in credit card purchase volumes [38][39] Question: Provision Expenses and NPLs - The increase in credit loss allowance was entirely attributed to growth rather than asset quality deterioration, with stable NPL formation across all asset classes [62][66] Question: Secure Loans and Client Mix - Management remains optimistic about public payroll loans and private payroll loans, anticipating growth opportunities as interest rates drop in Brazil [75][76]