Nu Holdings Ltd Reports Strong Financial Growth in First Quarter 2025
Nu Holdings Ltd, the parent company of digital banking giant Nubank, has posted impressive first-quarter results that exceeded market expectations. The fintech powerhouse reported a 74% increase in profit, reaching $559.4 million for the quarter ending March 31, 2025. This remarkable performance highlights Nu’s continued expansion across Latin America’s financial services landscape.
The company’s customer base grew to an impressive 97.5 million users across Brazil, Mexico, and Colombia. This represents a 25% increase from the same period last year. Nu’s ability to attract new customers while maintaining low acquisition costs has become a hallmark of its business model.
“Our first quarter results demonstrate the strength of our business model and our ability to scale efficiently,” said David Vélez, CEO and founder of Nu Holdings. “We continue to see strong demand for our products as consumers seek alternatives to traditional banking services.”
Revenue reached $2.8 billion for the quarter, up 58% from the previous year. This growth was driven by a combination of increased average revenue per active customer and the expansion of Nu’s product offerings. The company’s monthly average revenue per active customer climbed to $10.70, representing a 21% increase year-over-year.
Nu’s credit card business remains a key growth driver, with total purchase volume increasing by 51% to $38.2 billion. The company’s loan portfolio grew to $25.7 billion, up 43% from the previous year. Despite this rapid growth, Nu has maintained strong credit quality metrics, with a 90-day non-performing loan ratio of 4.2%, slightly below the Brazilian banking system average.
The fintech’s deposit base also showed remarkable growth, increasing by 46% to $32.1 billion. This strong deposit growth has provided Nu with a stable and low-cost funding source for its lending operations. The company’s cost of funds remains significantly lower than traditional banks, giving it a competitive advantage in pricing loans.
Nu’s expansion in Mexico and Colombia continues to gain momentum. The company added 4.3 million new customers in these markets during the quarter, bringing the total to 12.8 million. While these operations are still in investment mode, they are showing promising unit economics and are expected to follow a similar growth trajectory to the Brazilian business.
Financial analysts have responded positively to Nu’s results. “Nu continues to execute extremely well, combining strong growth with improving profitability,” said João Beltrão, an analyst at JPMorgan Chase. “The company’s ability to cross-sell new products to its existing customer base is particularly impressive.”
The company’s efficiency ratio improved to 35.2%, down from 38.7% in the previous year. This improvement reflects Nu’s ability to leverage its technology platform and grow revenue faster than expenses. Operating expenses as a percentage of revenue decreased to 29.1%, compared to 32.3% in the same period last year.
Nu’s innovative approach to financial services has disrupted traditional banking in Latin America. The company’s mobile-first platform and focus on customer experience have resonated with consumers, particularly younger demographics who prefer digital solutions over brick-and-mortar banks.
The company is also making significant strides in expanding its product portfolio. Nu recently launched an investment platform in Brazil that has already attracted over $3.5 billion in assets under custody. The company’s insurance products, launched last year, now serve more than 1.5 million active customers.
Despite its rapid growth, Nu faces challenges from increasing competition and regulatory scrutiny. Traditional banks are investing heavily in digital transformation to compete with fintech challengers. Additionally, regulators across Latin America are developing new frameworks to oversee digital financial services providers.
The fintech sector has experienced volatility in recent months, with rising interest rates and economic uncertainty affecting valuations. However, Nu’s strong financial performance suggests that well-established fintech companies with clear paths to profitability can thrive even in challenging market conditions.
Nu has maintained a strong capital position,
