Nu Holdings Ltd (NYSE:NU) stock plunges 15.63% (As on February 21, 11:24:08 AM UTC-4, Source: Google Finance) though the company reported fourth-quarter revenue that surpassed analyst expectations. However, Nu’s net interest margin (NIM) contracted 70 basis points sequentially to 17.7%, primarily due to foreign exchange volatility and the company’s deposit strategy in Mexico and Colombia. Nu added 4.5 million customers in the fourth quarter, bringing its total customer base to 114.2 million, a 22% YoY increase. The company reported net income of $552.6 million, up 85% YoY on an FX-neutral basis, with an annualized return on equity of 29%.

Moreover, Nu added 4.5 million customers in Q4’24, and 20.4 million in FY’24, reaching a total of 114.2 million customers globally by December 31, 2024, reflecting a 22% year-over-year (YoY) increase. This expansion reinforces Nu’s position as one of the world’s largest and fastest-growing digital financial services platforms. In Brazil, Nu has become the third-largest financial institution by number of customers, according to the Brazilian Central Bank. Mexico surpassed the milestone of 10 million customers and Colombia reached 2.5 million customers, maintaining its positive momentum following the launch of the Cuenta Nu product. Despite strong customer growth, Nu’s monthly activity rate dipped to 83.1%, as rapid expansion in Mexico and Colombia outpaced Brazil. The company’s efficiency ratio improved by 150 basis points sequentially to 29.9%.Nu’s lending portfolio more than doubled YoY to $6.1 billion, while its credit card portfolio expanded 28% YoY to $14.6 billion. Total deposits increased 55% YoY to $28.9 billion.

The company had reported the adjusted revenue growth of 58 percent to $2.99 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $2.74 billion.  Nu’s gross profit stands at $1.36 billion in Q4’24, an 8% sequential increase and a 44% increase YoY, with $ 5,24 billion in FY’24 in comparison to $ 3,49 from FY’23, both on an FXN. Gross profit margin stood at 45.6%, returning closer to 2023 levels despite higher funding costs expected in new geos. On December 31, 2024, Nu had an interest-earning portfolio (IEP) of $11.2 billion, a 75% rise YoY FXN. The lending portfolio more than doubled during the year to $6.1 billion dollars, a 22% sequential increase, also on an FXN basis. The credit card portfolio expanded 28% YoY from Q4’23 to Q4’24, and 9% sequentially FXN, to $14.6 billion. Total deposits increased 55% YoY FXN to $28.9 billion in Q4’24. In Brazil, deposits reached $23.1 billion dollars, an 11% sequential increase in FXN.