Nu Holdings Posts $1.1 Billion Quarterly Profit as Mexico Bank Launch Completes Digital Transformation
The Latin American digital banking giant reached 139 million customers globally while expanding risk-adjusted margins and launching full banking operations in its second-largest market.
Record Profitability Amid Geographic Expansion
Nu Holdings Ltd. (NYSE: NU) reported net income exceeding $1 billion for the first time in its history during the second quarter of 2026, marking a 49% year-over-year increase and 17% sequential growth (6-K filing, 2026-08-13). The São Paulo-based digital bank, now serving 139 million customers across Brazil, Mexico, and Colombia, achieved a return on equity of 33% as it completed a strategic transformation in Mexico.
Gross revenue reached nearly $5.9 billion in the quarter, up 39% year-over-year on an FX-neutral basis, while gross profit expanded 43% to $2.4 billion (6-K filing, 2026-08-13). The company added approximately 4 million customers during the three-month period, with Brazil approaching 118 million, Mexico reaching 15.8 million by quarter-end—and 16 million as of July—and Colombia surpassing 5 million.
Mexico Banking License Unlocks New Capabilities
"Earlier this month, we launched our bank in Mexico, becoming the largest digital bank in the country with 16 million customers. That completes our transformation there, unlocking capabilities we did not have before," founder and CEO David Vélez said in the filing (6-K filing, 2026-08-13).
The Mexico launch positions Nu as a full-scale banking institution rather than a credit-focused fintech. The company noted that Mexican cohorts monetize earlier than Brazilian equivalents, with average revenue per active customer (ARPAC) of $12.30 compared to Brazil's $5.60 at a similar penetration stage (6-K filing, 2026-08-13). Nu now reaches 16.5% of Mexico's adult population, comparable to Brazil in 2020.
Credit Performance and Margin Expansion
Risk-adjusted net interest margin expanded 290 basis points quarter-over-quarter to 12.4%, driven by portfolio growth, a mix shift toward unsecured lending, and intentional expansions into higher-risk segments (6-K filing, 2026-08-13). Total credit portfolio grew 37% year-over-year to $39.4 billion, with credit cards at $26 billion, unsecured lending at $10.3 billion, and secured lending at $3.1 billion.
Asset quality indicators showed mixed results. The 15-90 day NPL ratio improved 16 basis points to 4.8%, primarily reflecting seasonal factors, while 90+ day NPLs increased 35 basis points to 6.9%, largely from the seasonal migration of first-quarter early delinquencies (6-K filing, 2026-08-13).
Consolidated ARPAC reached approximately $17, growing sequentially, while the monthly activity rate expanded to 83.5%, with Brazil surpassing 86% for the first time (6-K filing, 2026-08-13).
AI Foundation Model Powers Operations
The company highlighted advances in NuFormer, its proprietary foundation model for financial behavior, which now powers underwriting, customer service, and growth decisions across the organization (6-K filing, 2026-08-13). AI agents handle more than 60% of customer support conversations in Brazil at or above human performance levels.
The efficiency ratio rose to 19.5% from 17.6% in the prior quarter as real estate and marketing expenses shifted from Q1 into Q2, alongside continued international expansion investments (6-K filing, 2026-08-13).
Deposits reached $45.3 billion, up 18% year-over-year and 6% sequentially, recovering first-quarter seasonal outflows (6-K filing, 2026-08-13). According to MarginX data, Nu Holdings is scheduled to report third-quarter 2026 results on November 12, 2026.
This article was generated by MarginX from the 6-K filing on 2026-08-13. It is not investment advice.