Nu Holdings Ltd. (NYSE:NU) stock rose in Friday's premarket trading after the company reported strong third-quarter results, driven by customer growth, higher lending volumes and expanding operations across Latin America.
Net income climbed 31% on an FX-neutral basis to $1.1 billion. Gross revenue increased 37% to $6.3 billion.
Earnings of 22 cents per share matched analyst expectations. Revenue reached $5.82 billion, beating estimates of $5.68 billion and rising from $4.17 billion a year earlier.
Nu added 3.7 million customers, bringing its total to 143 million. Its third-quarter efficiency ratio improved to 19.3% from 20.3% a year earlier. The company also lowered its 2026 efficiency ratio forecast to 19%-19.5%, from approximately 20%.
Mexico Emerges As Major Growth Driver
Nu's customer base in Mexico jumped 27% year over year to 16.6 million, covering 17% of adults.
The company added 870,000 customers during its first quarter as a fully licensed bank.
CEO David Vélez said Nu's Mexican business could reach about 70% of its Brazilian operations under the base-case scenario, with the potential to match Brazil if Mexico's economy becomes more digital.
Vélez said credit card penetration in Mexico remains at 12%, compared with 75%-80% in Brazil, highlighting significant room for expansion.
Brazil and Colombia Deliver Strong Growth
Nu served approximately 120 million customers in Brazil, reaching 65% of adults. Its activity rate hit a record 86.3%.
Unsecured personal loan originations rose 28% to a record 22.1 billion Brazilian reais.
Meanwhile, Colombia's customer base surged 62% to 6.1 million.
Nu became Colombia's largest credit card issuer by cardholder count, serving 3 million cardholders. Its credit portfolio grew 80% on an FX-neutral basis.
Nu Expands Into U.S. Market
Nu launched its U.S. banking service on Sept. 10, offering an account with a 3.5% annual percentage yield, fee-free transfers to Brazil, Mexico and Colombia, and a no-annual-fee credit card with unlimited 1.5% cash back.
Within weeks, Nu U.S. reached customers across all 50 states.
Nu Global, its stablecoin-based multicurrency account, launched Oct. 15 and attracted customers across 37 countries.
Management expects the two businesses to affect its efficiency ratio by no more than 100 basis points in each of 2026 and 2027.
Lending and Deposits Climb
Nu's credit portfolio expanded 33% to $41.6 billion.
Credit card balances rose 32% to $27.2 billion, while unsecured lending jumped 39% to $11 billion.
Deposits increased 19% on an FX-neutral basis to $47.5 billion.
Net interest income climbed to $3.9 billion from $3.7 billion, while net interest margin reached 22.5%.
The 90-plus-day delinquency ratio increased to 7.3% from 6.9% in the previous quarter. However, management said the increase partly reflected a growing share of interest-earning balances rather than solely worsening credit performance.
The allowance for credit losses rose to $7.1 billion from $6.6 billion.
NU Price Action: Nu Holdings shares were up 4.06% at $12.31 during premarket trading on Friday, according to market data.
