Nu Holdings Tops US$1 Billion Quarterly Profit for the First Time
Brazil · BANKING
Key Facts
- —What happened Nu Holdings reported Q2 2026 net income of about US$1.06 billion.
- —How big Revenue reached nearly US$5.9 billion, up 39% from a year earlier.
- —Who it hits The bank serves 139 million customers across Brazil, Mexico, and Colombia.
- —The catch Bad loans overdue 90 days rose to 6.9% of the portfolio.
- —What comes next Shares jumped about 10% right after the results and were still higher in early September.
Brazil’s Nubank parent posts record quarterly profit, but bad loans rise.
Nu Holdings, the parent of Brazilian digital bank Nubank, cleared US$1 billion in net income for the first time. The record profit came in the second quarter of 2026, which ended 30 June and was reported on 13 August.
Record Profit
Nu Holdings, the parent of Brazilian digital bank Nubank, reported net income of about US$1.06 billion for the second quarter of 2026. That is the first time it has cleared US$1 billion in a single quarter, per its own earnings release.
Rounded, the figure is roughly US$1.1 billion, as several outlets including The Motley Fool reported. Nu Holdings said profit was up 49% from the same quarter last year.
Revenue and Customers
Revenue for the quarter reached nearly US$5.9 billion, up 39% year over year, according to the company’s earnings release. Net interest income, the money earned from loans minus what the bank pays depositors, was US$3.7 billion.
The bank ended the quarter with 139 million customers. This includes about 118 million in Brazil, 16 million in Mexico, and over 5 million in Colombia, per the company’s own figures.
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Profitability Measures
Return on equity, a measure of how well the bank uses shareholder money, reached 33% in the quarter. That figure is confirmed in Nu Holdings’ own earnings release.
Net interest margin, which shows the difference between what the bank earns on loans and pays on deposits, rose to 22.9%. The Motley Fool reported this increase of 180 points, which is 1.8 percentage points.
Bad Loans Rise
The share of loans overdue by 90 days or more, called non-performing loans, rose to 6.9% in the second quarter. Nu Holdings disclosed the figure in its earnings release on 13 August 2026.
This increase in bad loans is a concern for investors, even as the bank posts record profits. The higher ratio means more customers are struggling to repay their debts.
Market Reaction
Nu Holdings’ shares jumped about 10% in the session after the results, according to Yahoo Finance and other outlets. The stock touched a five-month high on 14 August 2026, 24/7 Wall St reported.
Some of that gain later faded as investors weighed the rising bad-loan ratio. Even so, shares were still up about 7% since the earnings release as of 3 September 2026, according to The Motley Fool.
Earnings Per Share
Earnings per share, or EPS, came in at US$0.22 for the quarter. That beat the consensus estimate of US$0.20, according to Zacks Investment Research.
Revenue also beat expectations, coming in at US$5.88 billion versus the US$5.39 billion that analysts had predicted. This shows the bank’s growth is stronger than expected.
Customer Growth
Nu added about 4 million net new customers during the second quarter. This growth was spread across its three main markets: Brazil, Mexico, and Colombia.
The bank’s total customer base reached 139 million as of July 2026. This makes Nu one of the largest digital banks in the world.
Brazil remains Nu’s largest market, with about 118 million customers. That is roughly 85% of its total customer base.
The bank has become a major player in Brazil’s banking sector, challenging traditional banks with its no-fee credit cards and digital app.
In Mexico, Nu has around 16 million customers, according to the company’s own figures. This makes Mexico the bank’s second-largest market.
Colombia has over 5 million customers, crossing that mark for the first time. These international markets are key for Nu’s future growth.
Net Interest Income
Net interest income, the bank’s main source of revenue, was US$3.7 billion in the quarter. This was up 9% from the previous quarter, as reported by The Motley Fool.
This growth in net interest income helped drive the overall revenue increase. The bank earns money by charging interest on loans and credit card balances.
Net Interest Margin Explained
Net interest margin is a key measure of a bank’s profitability. It shows the difference between the interest a bank earns on loans and the interest it pays on deposits.
Nu’s net interest margin rose to 22.9% in the second quarter. This is a high margin, meaning the bank is earning a lot more on its loans than it pays out to savers.
Return on Equity
Return on equity, or ROE, measures how much profit a company generates with the money shareholders have invested. Nu’s ROE reached 33% in the second quarter.
A 33% ROE is considered very strong, indicating that Nu is using its capital efficiently. This is a key metric that investors watch closely.
Bad Loan Ratio Details
The bad loan ratio of 6.9% means that 6.9% of Nu’s loans are overdue by 90 days or more. This is a measure of credit risk.
Nu Holdings confirmed that this ratio rose in the second quarter, even as the bank posted record profits. This suggests that some customers are facing financial difficulties.
Nu Holdings has not provided guidance for future quarters. The company’s focus remains on expanding its customer base and improving profitability.
The bank’s record profit and strong customer growth are positive signs. However, the rising bad loan ratio is a risk that investors will watch in the coming months.
Earnings Per Share and Consensus
In Q2 2026, Nu Holdings earned US$0.22 per share, beating the average analyst forecast of US$0.20. Zacks Investment Research reported this the day after the release.
The company made more profit per share than experts expected.
Customer Growth by Country
Most Nu customers are in Brazil, but Nu is growing in other Latin American markets.
In Q2 2026, Nu added roughly 4 million new customers, bringing the total to 139 million. This growth shows that Nu is attracting many new users across the region.
Net Interest Income and Margin
Nu’s net interest income reached US$3.7 billion in Q2 2026, up 9% from the previous quarter. The Motley Fool reported this on 3 September 2026.
This increase means Nu earns more from its core banking activities, which include loans and investments after paying depositors.
Nu’s net interest margin rose to 22.9%, up 180 points (1.8 percentage points). This margin measures profit on interest-earning assets.
A higher margin means Nu turns assets into profit more efficiently.
Return on Equity and Bad Loan Ratio
Nu’s return on equity hit 33% in Q2 2026, confirmed in the company’s earnings release on 13 August 2026. This shows how well Nu uses shareholder money to profit.
A 33% return is high, so Nu uses investor funds very effectively.
Nu’s bad loan ratio rose to 6.9% in the same quarter, also confirmed in the 13 August 2026 earnings release. This ratio is the percentage of loans at least 90 days overdue.
A small but increasing share of Nu’s loans are not being repaid on time.
Frequently Asked Questions
What is Nu Holdings?
Nu Holdings is the parent company of Nubank, a Brazilian digital bank. It operates in Brazil, Mexico, and Colombia.
How much net income did Nu report in Q2 2026?
Nu reported net income of about US$1.06 billion for the second quarter of 2026. This was the first time it exceeded US$1 billion in a single quarter.
How did Nu’s shares react to the results?
Nu’s shares jumped about 10% in the session after the earnings report. Gains later eased as investors weighed the rising bad-loan ratio, but shares stayed higher.
What is Nu’s customer base?
Nu has 139 million customers as of July 2026. This includes 118 million in Brazil, 16 million in Mexico, and over 5 million in Colombia.
Connected Coverage
Sources: Nu Holdings Ltd. Q2 2026 earnings release and SEC Form 6-K (13 August 2026); The Motley Fool; Yahoo Finance / Zacks Investment Research; 24/7 Wall St.
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