Financial Performance - Recurring Managerial Result reached R$119 billion in 3Q25, a 32% increase compared to 2Q25 and an 113% increase compared to 3Q24[3] - ROE (Recurring Managerial) in Brazil was 242% in 3Q25, a 02 percentage point increase compared to 2Q25 and a 04 percentage point increase compared to 3Q24[3] - Commissions and insurance totaled R$147 billion in 3Q25, up 40% from 2Q25 and 71% from 3Q24[3] - The company's 9M25 operating revenues reached R$136832 billion, a 96% increase compared to R$124858 billion in 9M24[37] - The financial margin with clients increased by 134% from 9M24 to 9M25, reaching R$90198 billion[37] Credit Portfolio - The consolidated credit portfolio reached R$14020 billion in Sep-25, a 09% increase compared to Jun-25 and a 64% increase compared to Sep-24[4,6] - Excluding FX variations, the consolidated credit portfolio increased by 17% compared to Jun-25 and 75% compared to Sep-24[4,6] - The 90-day NPL (Non-Performing Loan) ratio remained stable at 19% for the consolidated portfolio and 20% for Brazil in Sep-25 compared to Jun-25[5] Expenses and Efficiency - Non-interest expenses totaled R$172 billion in 3Q25, a 40% increase compared to 2Q25 and a 76% increase compared to 3Q24[29] - The efficiency ratio for Brazil improved from 445% in 9M24 to 425% in 9M25[28,29] Capital Adequacy - The Common Equity Tier I (CET I) ratio stood at 135% in Sep-25, a 04 percentage point increase compared to Jun-25 and a 02 percentage point increase compared to Sep-24, totaling R$13371 billion[3]

Core Insights - The rapid expansion of Nu Holdings Ltd. (NU) in Brazil sets a high benchmark, but replicating this success in Mexico may be more challenging due to slower growth metrics [1][4] - Nubank Mexico is currently growing at a quarterly rate of 10%, which is half the pace of its Brazilian counterpart, indicating a longer timeline to double its customer base [1][8] - Regulatory changes in Mexico, such as new banking licenses, could enhance Nubank's offerings and diversify revenue streams, potentially improving consumer trust [2][8] Market Dynamics - Mexican incumbents are better prepared for Nubank's entry compared to Brazil, having fortified their defenses and upgraded digital services, which may slow Nubank's growth [3][4] - The competitive landscape in Mexico is more entrenched, posing challenges for Nubank to achieve dominance as it did in Brazil [3][4] Peer Comparison - While NU is expanding rapidly in Latin America, U.S.-based peers like SoFi and Block are pursuing different growth strategies, focusing on customer relationships and dual ecosystems respectively [5][6] - NU's customer acquisition pace in emerging markets distinguishes it from its U.S. counterparts, highlighting its unique momentum in the fintech sector [6] Financial Performance - NU's stock has increased by 18% year to date, underperforming the industry's growth of 22% [7] - The company trades at a forward price-to-earnings ratio of 18.88, significantly higher than the industry's 9.2, indicating a premium valuation [9] - The Zacks Consensus Estimate for NU's second-quarter 2025 earnings has been declining over the past 60 days, suggesting potential challenges ahead [10]