$1.06 billion in second-quarter net profit marked Nubank’s first quarterly result above $1 billion, beating the $967.2 million analyst estimate and lifting shares about 9.5% after hours.
$5.88 billion in revenue and a risk-adjusted net interest margin of 12.4%, up from 9.9% a year earlier, drove the earnings beat; CFO Rob Livingston said that margin level looks sustainable.
$1.69 billion in cost of credit fell from last quarter’s $1.79 billion, easing a key investor concern, while management said Brazil’s Desenrola debt-refinancing program accounted for only about 5% of that total.
$39.4 billion in credit portfolio was up 37% year on year, though sequential growth slowed from an unusually strong first quarter; early delinquency improved to 4.8% from 5% in Q1.
Nearly 139 million clients across Brazil, Mexico and Colombia underpin Nubank’s scale as the digital lender prepares to begin operating in the U.S.