Before its initial public offering (IPO) and the opening of capital, Nubank was focused on profitability, which only began to materialize in September 2021. The company has since delivered consistent positive results, reflecting positively on its stock performance.

Nubank reported a net income of $552.6 million in the fourth quarter of 2024, marking an 85% increase compared to the same period last year. For the entire year, the fintech company generated $1.9 billion in net income, a 110% jump from the previous year. This growth consolidates Nubank’s strong financial position.

“These results put us among the most profitable financial institutions in the world, even maintaining a significant position of surplus capital at the holding of the holding of the holding,” Nubank stated.

Stock Performance and Financial Metrics

Nubank’s stock has seen a remarkable rise, increasing over 200% since its low in January 2023. Despite this growth, the stock fell 6.22% on the New York Stock Exchange on Wednesday, possibly due to market adjustments or investor sentiment.

Revenues for the quarter reached a record $3 billion, a 50% increase year-over-year. The company’s Return on Equity (ROE) was 29%, outperforming major U.S. banks like Itaú, which reported a 22% return.

Interest Income and Financial Margin

Nubank’s Net Interest Income (NII) grew by 57% to $1.7 billion. However, the net interest margin (NIM) decreased by 70 basis points to 17.7% sequentially. This decline is attributed to a decrease in loans and credit card portfolios, as well as increased financing costs due to deposit growth in Mexico and Colombia.

For 2025, Nubank’s investor relations director, Jorg Friedemann, stated that the bank will be vigilant with the macroeconomic scenario. He noted that Nubank has significant potential in the loan market, especially considering that less than 50% of its over 100 million customers have a credit card, which is often the first access product to the world of credit.

Credit Card Growth and Default Rates

The credit card portfolio grew by 75%, ending 2024 at $11.5 billion. The total portfolio increased by 45% in 12 months and 14% in the quarter, reaching $20.7 billion.

Default rates, a closely watched metric, have improved. The NPL 15 to 90 days indicator decreased by 30 basis points to 4.1%. Nubank attributes this improvement to a better mix of credit products and more solid risk profiles.

The NPL 90+ index also decreased by 20 basis points to 7%, aligning with seasonal standards and historical trends.

Friedemann notes that default has fallen for seasonal reasons, and points out that Nubank is also very “selective and prudent” in the origination of credit, as well as having a “superior” model that is based on broad use of information and improving the main the customer.

Jorg Friedemann, Investor Relations Director, Nubank

Operating Expenses and Customer Growth

Operating expenses for the year were $595.9 million, a 24% annual growth. This increase was driven by general and administrative expenses, which rose by 35%, and expenses related to customer support and operations.

Nubank added 4.5 million customers in the fourth quarter of 2024 and 20.4 million for the year, reaching a total of 114.2 million global customers by December 31, 2024. This represents a 22% year-over-year increase.

“This growth reinforces Nu’s position as one of the fastest growing digital financial services platforms worldwide.”

Nubank is now the third-largest financial institution by customer count, according to the Banco Central. In Mexico, Nubank surpassed 10 million customers, and in Colombia, it reached 2.5 million customers.

Implications for the U.S. Market

Nubank’s success in Latin America offers valuable insights for the U.S. fintech industry. The company’s focus on digital innovation, customer-centric products, and prudent risk management has driven its growth. U.S. fintech companies can learn from Nubank’s strategies, particularly in expanding credit access and improving customer acquisition.

For instance, U.S. fintech firms like Chime and SoFi have also seen significant growth by offering innovative financial products and services. Chime, for example, has over 14 million customers and focuses on providing fee-free banking services. SoFi, on the other hand, has expanded its offerings to include loans, investments, and insurance.

However, the U.S. market presents unique challenges, including regulatory hurdles and intense competition. Fintech companies must navigate these challenges while continuing to innovate and expand their customer base.

Future Outlook

Looking ahead, Nubank’s continued success will depend on its ability to maintain profitability while expanding its customer base and product offerings. The company’s focus on digital innovation and customer-centric strategies will be crucial in achieving this goal.

For U.S. fintech companies, the key takeaway from Nubank’s success is the importance of innovation, customer focus, and prudent risk management. By adopting similar strategies, U.S. fintech firms can position themselves for growth and success in a competitive market.