SAO PAULO : Brazilian digital lender Nubank posted on Thursday an 87 per cent increase in its fourth-quarter adjusted net profit from a year earlier.
Nubank, which is listed on the New York Stock Exchange through Nu Holdings, reported an adjusted net profit of $610 million for the quarter ended in December, above the $567 million estimated by analysts in an LSEG poll.
Still, shares of Nu Holdings were down some 6 per cent in after-hours trading follwing the publication of the quarterly report.
The Warren Buffett-backed firm posted revenues rising 50 per cent, excluding foreign-exchange effects, to $2.99 billion, below analysts’ estimate of $3.29 billion. Its annualized adjusted return on equity, a gauge of profitability, stood at 32 per cent, from 26 per cent a year earlier.
One of the largest and most successful digital lenders in the world, with more than 114 million customers across operations in Brazil, Colombia and Mexico, Nubank’s credit portfolio increased some 45 per cent year-on-year to $20.7 billion, although it ticked down from the $20.9 billion posted in the previous quarter.
The 90-day-plus default ratio for loans in Brazil, its largest client base, came in at 7 per cent, down 0.2 per centage points from last quarter, but up from 6.1 per cent a year earlier.
Source: CNA
