Nubank tem lucro recorde no 2º tri; crédito cresce menos

Nubank achieved its record quarterly profit of US$ 1.1 billion between April and June, surpassing expectations. The outcome followed a 10% rise above market forecasts and a 17% increase compared to the previous three months, along with a 49% growth compared to the previous year. Return on Equity (ROE) reached 33%, higher than the 29% in the prior quarter and the 28% recorded a year ago.

The stock surged approximately 9% in after-market trading. This success is attributed to a combination of reduced credit cost with increased financial margins (NIM), CFO Rob Livingston told Brazil Journal. "When these indicators work together, it's magical," Livingston said, who took the helm in June. The adjusted financial margin, closely monitored by the bank, surged from 9.5% in Q1 to 12.4% for the April-June period.

Credit cost fell 9% sequentially to US$ 1.7 billion, slightly below the consensus estimate of US$ 1.78 billion. Desenrola program had a minimal impact on credit cost, estimated at 5%. However, the credit portfolio grew at a slower pace, 5% quarter-over-quarter, below the 8% projected by sellside analysts, reaching US$ 39.4 billion.

Livingston described it as a quarter of adjustment - a "sequential normalization" - as the previous two quarters were stronger than anticipated due to product launches and new credit models. Overall, the portfolio grew 37% annually. Default rates for 15-90 days decreased to 4.8%, down from 5% in Q1. However, the rate above 90 days increased from 6.5% to 6.9% during this period.

Livingston attributed this rise in Non-Performing Loans (NPL 90+) to seasonal effects, with delays migrating from Q1. "We see no signs of deterioration in our portfolio," he affirmed. "We operate with the premise that a recession could start tomorrow. We are conservative in originating credit to withstand risk metric deterioration while still being profitable."

Average revenue per active customer (ARPAC) also hit a record US$ 17.10, surpassing the sellside's US$ 16.60 estimate. Efficiency ratio, the ratio between expenses and revenues, worsened, increasing to 19.5% from 17.6% in Q1. This was expected, Livingston said, due to higher expenses for internationalization and marketing. He reiterated the guidance of 20% for the year.

Livingston also highlighted the break-even operation in Mexico, which reached 16 million customers in July (Nubank has 139 million customers globally). The bank serves 16.5% of the adult Mexican population - comparable to Brazil's figure in 2020. However, monetization there has come earlier, with ARPAC at US$ 12.30 versus US$ 5.60 in Brazil at the same stage.

"I wouldn't expect Mexico to remain profitable in the next quarters, as we will be investing much more heavily in that market," Livingston said. Nubank is valued at US$ 67 billion on the NYSE. The stock has risen 13% over the past 12 months but fell 18% this year.