Nubank Sees Credit Growth Continuing as Quality Gauges Hold Up
(Bloomberg) – Latin America’s largest digital bank Nu Holdings Ltd., credit quality, in line with the expectations of analysts, reportedly declined and expects the credit growth to continue for the rest of the year, he said.
According to a statement on Thursday, Fintech, known as Nubank, said that the 90 -day guilt rate increased 10 basis points in the second quarter of the first three months of the year. The guilt rate of 15 to 90 days reduced 30 base points to 4.4%.
“All the classes of assets we operate in Brazil, Mexico and Colombia perform better or marginalized better than expected,” Finance Manager Guilherme Lago said. “The macro deterioration, which has been discussed since the end of last year, has not happened in our credit indicators, including numbers since August.”
Nubank’s largest market, Brazil, is worsened throughout the country. According to the Central Bank, the default for individuals increased by 0.7 percent to 4.3% in June. And most of the degradation came from credit cards and personal loans, two of Nubank’s most important businesses.
Operating in Brazil, Mexico and Colombia, Fintech does not expect to reduce its growth financially for the rest of the year. According to industry analysts, it has arranged the credit model in Brazil for about one -third of its customers for about one -third of its customers. Nubank is waiting to offer the update to the entire customer base in Brazil by the end of this year.
With a market value of $ 57.6 billion, Nubank lost the title of the most valuable public company in Latin America last month to Itau Unibanco Holding SA, because some investors expressed concerns that Nubank’s guilt rates may deteriorate. ITau’s second quarter results, which defeated analysts’ expectations at the beginning of this month, expanded the gap between the two banks.
Nubank lost several senior executives this year, including Vitor Olivier, the chief technology officer Vitor Olivier, who said he left to start a job focused on artificial intelligence at the beginning of this week. Youssef Lahrech, chief business officer and Jag Duggal, Product Officer, left the company this year.
Nubank’s shares doubled by 15% this year after doubled in 24 and 2023 last year. The stock has been healed since the end of February, when the market value of $ 12 billion has fallen a day after FinTech’s fourth quarter results are below expectations.
Other important second quarter results:
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