Nu Holdings Ltd (NYSE:NU) stock rose 5.27% (As on August 14, 11:20:23 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 24. Nu added 5.2 million customers in Q2’24, reaching a total of 104.5 million customers globally by June 30, 2024, marking a 25% increase YoY. This reinforces Nu’s position as one of the largest and fastest-growing digital financial services platforms worldwide. Nu has added more customers in the past 12 months than the five largest Brazilian incumbents combined, according to Central Bank data. Monthly Average Revenue per Active Customer (ARPAC) reached $11.2 in Q2’24. On a FX neutral basis (FXN) it expanded 6% sequentially, with more mature cohorts already at $25. Nu continues to develop principality among its customer base and activity rate increased to a new record high of 83%. Monthly Average Cost to Serve Per Active Customer remained stable and below the dollar level at $0.9, demonstrating the strong operating leverage of the business model. The company’s efficiency ratio improved 10 basis points QoQ to 32% during Q2’24, and over 340 basis points YoY, positioning Nu as one of the most efficient financial services companies globally.

NU in the second quarter of FY 24 has reported the adjusted earnings per share of 12 cents, beating the analysts’ estimates for the adjusted earnings per share of 10 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 65 percent to $2.85 billion in the second quarter of FY 24, beating the analysts’ estimates for revenue by 1.88%. At a Holding level, Nu continued to drive increased profitability and posted a Net Income for Q2’24 of $487 million and an annualized ROE of 28%, compared to a $225 million profit in Q2’23. Adjusted Net Income for Q2’24 increased to $563 million with an annualized adjusted ROE of 33%, compared to an Adjusted Net Income of $263 million in Q2’23. Nu’s gross profit reached another quarterly record high of $1.4 billion, up 88% YoY FXN while gross profit margin reached 48% from 42% in Q2’23.

Additionally, on June 30, 2024, Nu had an interest-earning portfolio (IEP) of $9.8 billion which rose 81% YoY FXN. Total deposits increased 64% YoY FXN to $25 billion, while a sustained low cost to deposit underscores Nu’s progress in leveraging the local-currency retail deposit franchises in Brazil and Mexico. Nu’s loan-to-deposit ratio was 39%, versus 40% in the previous quarter