Nu Holdings Ltd. presents the financial results for the second quarter of 2022

SAO PAULO–(BUSINESS THREAD)–Nu Holdings Ltd. (NYSE: NU | B3: NUBR33), (“Nu” or the “Company”), one of the world’s largest digital banking platforms, today released its financial results for the second quarter of 2022. The financial results s ‘expressed in US dollars and presented in accordance with International Financial Reporting Standards (IFRS). The full results release is available on the Company’s Investor Relations website at www.investors.nuas well as details of Nu’s earnings conference call today at 6:00 PM ET/7:00 PM BST.

“We had another very strong quarter, with growth and profitability in our core business. We posted record revenue and are making great strides to become a multi-product, multi-country platform. Our largest operation – Brazil – is now profitable, having registered. a net profit of US$13 million in the first half of 2022, driven by customer growth to 65 million and the ability to offer and sell new products. We are the fourth largest card player in the Brazil, almost a quarter of all PIX trades go through Nu accounts, and we are leaders in the direct digital investment space with 5 million active clients.We are diversifying and expanding into Crypto, Insurance, SME and Personal Loans .Going international, we are now the #1 issuer of new credit cards in both Mexico and Colombia, where we just received a license to continue our expansion,” said David Vélez, founder and CEO.

Q2’22 Snapshot of results

Here are the highlights of Nu Holdings Ltd.’s second quarter performance:

Highlights of operation:

Customer growth: Nu added 5.7 million customers during the quarter to reach a total of 65.3 million customers in Brazil, Mexico and Colombia. This represents 57% year-on-year (YoY) growth, strengthening Nu’s position as one of the world’s largest digital banking platforms. Engagement and Activity Rates: Average revenue per active customer (ARPAC) expanded to $7.8, growing 105% on a currency-neutral basis (FXN)1. The activity rate reached a new all-time high, growing to 80%. Nu has become the primary bank for over 55% of monthly active customers who have been with Nu for over a year. Low Cost Operating Platform: The average monthly service cost per active customer reached $0.8, unchanged year-over-year and FXN. Asset quality: Leading indicators have remained stable and asset quality followed its post-pandemic normalization: Nu’s NPL 15-90 remained stable at 3.7%, while 90+ it came in at 4.1% in line with expectations.

Financial highlights:

Revenue: Q2’22 total revenue reached a new record high of $1.2 billion, up 230% year-over-year on an FXN basis, as Nu continues to effectively cross-sell and cross-sell its portfolio of financial products in expansion Gross profit: Totaled $363.5M in 2Q12, up 109% YoY FXN. The gross profit margin was 31% in 2Q’22. Adjusted net income3: Nu reported an adjusted net profit of $17 million in 2’22. Capital: As of June 30, 2022, Nu continued to demonstrate a strong capital position with NuFin’s adjusted capital reaching $3.9 billion, of which 79% was cash and cash equivalents. Liquidity: Nu reported an interest portfolio of $3.2 billion, while total deposits reached more than four times that value at $13.3 billion.

Business highlights

Customer base growth: Brazilian customers grew 51% year-on-year to 62.3 million, now representing 36% of the country’s adult population, with our SMB customer base growing 150% year-on-year, up to 2.0 million. This probably positions Nu as the fifth largest financial institution in Brazil in terms of number of clients. Purchase volume reached $20 billion in 2Q12, expanding FXN by 94% year-on-year, and placing Nu as the fourth largest card player in Brazil this quarter (in terms of purchase volume). Multi-product platform: During the quarter, the core products – Credit Cards, NuConta and Personal Loans – reached 29 million, 45 million and 4 million active customers, respectively. Insurance, launched last year, has reached over 700,000 active customers, NuInvest has reached over 5 million active customers, and NuCripto has reached 1 million customers in July 2022, just 3 weeks after launch . Profitability in Brazil: NuBrazil, the company’s core market, achieved an accounting net profit in 1H22 of US$13.0 million, a significant milestone. The profitability of our core products (credit cards, personal loans and NuConta) has allowed us to reinvest these gains in penetrating adjacent verticals in Brazil, while supporting our expansion in Mexico and Colombia. International expansion: In Mexico, our second largest market, Nu’s customer base grew more than 6x last year to 2.7 million. In Colombia we reached 314,000 customers. In both markets, we believe we are the #1 issuer of new credit cards in the country, and combined, these two countries added 700,000 unique customers, maintaining an NPS of around 90 in both markets.

Footnotes

1 Currency-neutral measures were calculated to present what those measures would have been in prior periods/years if exchange rates had remained stable from those prior periods/years to the date of the Company’s most recent financial information.

2 Activity rate is defined as monthly active customers divided by the total number of customers on a specific date.

3 Adjusted net income (loss) is a non-IFRS measure that is calculated using net income adjusted for expenses related to our stock-based compensation, as well as the tax effects applicable to those items. For more information, see the “Non-IFRS Financial Measures – Reconciliation to Adjusted Net Income” section of our financial statements.

DETAILS OF THE CALL FOR CONFERENCE RESULTS

Nu will hold an Earnings Conference call today at 6:00 PM ET/7:00 PM BST with simultaneous translation in Portuguese and English.

To pre-register for this call, please click here

A replay of the webcast will be available after the call on the investor relations page: click here.

Note on forward-looking statements and non-IFRS financial measures

This publication speaks as of the date of this release and the company is under no obligation to update or keep current the information contained in this publication. Any information expressed herein is subject to change without notice. Any market or third-party data included in this release has been obtained by the Company from third-party sources. Although the Company has collected and extracted the market data, it cannot provide any guarantee of the accuracy and completeness of such information and is not responsible for such data.

This release contains forward-looking statements. All statements other than statements of historical fact contained in this release may be forward-looking statements and include, but are not limited to, statements about the company’s current intent, belief or expectations. These forward-looking statements are subject to risks and uncertainties, and may include, but are not limited to, financial forecasts and estimates based on assumptions or statements about plans, objectives and expectations. Although the Company believes that these estimates and forward-looking statements are based on reasonable assumptions, they are subject to various risks and uncertainties and are made in light of currently available information, and actual results may differ materially from those expressed or implied in the future – forward-looking statements due to various factors, including risks and uncertainties included under the headings “Risk Factors” and “Management’s Analysis and Discussion of Financial Condition and Results of Operations” in our prospectus dated December 8, 2021 presented to the Securities and Exchange Commission. pursuant to Rule 424(b) of the Securities Act of 1933, as amended, and in our Annual Report on Form 20-F for the year ended December 31, 2021, which filed with the Securities and Exchange Commission on April 20, 2022 The Company, its advisors and each of its respective directors, officers and employees disclaim any obligation to update the Company’s view of risks and uncertainties or to publicly announce the outcome of any revision of the forward-looking statements made herein, except as required by applicable law. Forward-looking statements can be identified, in certain cases, by the use of words such as “believe,” “could,” “could,” “could,” “could,” “is designed to,” “will,” ” goal”, “estimate”, “continue”, “anticipate”, “attempt”, “expect”, “forecast”, “plan”, “predict”, “potential”, “aspiration”, “should”, “purpose ” ”, “belief” and the like, or variations or the negative of these words and expressions.

The financial information in this document includes forecasts, projections and other forward-looking statements that represent the company’s assumptions and expectations in light of currently available information. These forecasts, projections and other forward-looking statements are based on the Company’s expectations and are subject to variables and uncertainties. Actual business performance results may differ. Accordingly, no warranty is given or implied as to the accuracy of specific forecasts, projections or forward-looking statements contained herein, and undue reliance should not be placed on forward-looking statements in this press release, which are inherently uncertain.

In addition to IFRS financial data, this presentation includes certain summary, unaudited or non-IFRS financial information. These summary, unaudited or non-IFRS financial measures are in addition to, and do not replace or supersede, financial performance measures prepared in accordance with IFRS. References in this presentation to “R$” refer to the Brazilian real, the official currency of Brazil.

About Naked

Nu is one of the largest digital banking platforms in the world, serving more than 65 million customers in Brazil, Mexico and Colombia. As one of the world’s leading technology companies, Nu leverages proprietary technologies and innovative business practices to create new financial solutions and experiences for individuals and SMEs that are simple, intuitive, convenient, low-cost, empowering and human. Guided by the mission to fight complexity and empower people, Nu is fostering access to financial services throughout Latin America, connecting benefits and purpose to create value for its stakeholders and have a positive impact on communities to which it serves For more information, visit www.nubank.com.br



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