Brazil’s Nubank loses ranking as Latin America’s most valuable bank

RIO DE JANEIRO, BRAZIL – Nubank lost the position achieved in December as the most valuable bank in Latin America. The digital bank closed Friday, January 14, valued at US$37.4 billion, while Itaú Unibanco, now in first place, closed at US$39.5 billion.

When it debuted on the Brazilian and U.S. stock exchanges (NYSE), the fintech priced its shares at US$9 each in an initial public offering (IPO). At the time, the digital bank debuted valued at US$41.5 billion.

Nubank’s shares fell 13.4% in 2022. The expectation of rising interest rates in the United States and uncertainties surrounding the Brazilian economic scenario contributed to the decrease in the company’s value.

Itaú’s shares rose 13.3% on the New York Stock Exchange in the same period. Meanwhile, Bradesco’s shares also rose 10.2%.

OMICRON’S IMPACT

In late December, the fintech felt the impact of the Omicron variant on the financial market. The newcomer to the New York Stock Exchange dropped over 10% in value on December 20.

Just short of completing three weeks since debuting on the U.S. market, Nubank (NU) shares traded at US$8.90, down 9.18% after having retreated more than 10% in the morning.

It is the first time the company’s shares have traded below the IPO price of US$9.

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