Nu Holdings: Credit Woes Cloud A Bright Future

Curonian Research
1.14K Followers
(10min)

Summary

  • Nu Holdings continues to grow rapidly with 114 million customers, but recent financial results were disappointing due to rising credit losses and currency depreciation.
  • The 7% delinquency rate has raised investor concerns about risk management amid aggressive loan expansion.
  • A sharp fall in the Brazilian Real hurt USD-reported results, though Brazil’s economy remains fundamentally strong.
  • Despite short-term issues, Nu’s expanding product suite and deepening customer relationships support a strong long-term outlook.

Exchanging money via smart phones

PM Images

Nu Holdings (NYSE:NU) is the world’s largest publicly listed neobank, serving 114 million customers across Brazil, Colombia, and Mexico. As a digital-only banking platform, it continues to attract users away from traditional banks by offering simpler, lower-cost services. However, digital banking adoption remains gradual

This article was written by

1.14K Followers
- Building a consistent, low-risk passive income portfolio—no gambling, no hype, just fundamentals. I aim to generate ~12% average annual returns with minimal downside risk, prioritizing capital preservation and stable value compounding over short-term momentum. - With over a decade of professional experience in equity research, I specialize in analyzing cash-generative businesses, special situations, and corporate restructurings across developed markets. My investment strategy emphasizes risk assessment over speculative growth, aligning with contrarian and value-driven principles. - Influenced by legendary investors like Warren Buffett and Howard Marks, I rely on deep fundamental analysis, macroeconomic context, and rigorous valuation discipline. I hold a First-Class Honors degree in Economics from the University of London and am passionate about translating complex financial insights into actionable long-term investment ideas.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About NU Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on NU

Related Stocks

SymbolLast Price% Chg
NU
--