The neobank also added 4.5 million new customers in the same period, helping it to position itself as the third largest financial institution in Brazil by number of users. However, there is confusion due to the massive sale of shares by Warren Buffett.
Brazilian digital banking platform Nu today reported its unaudited results for the fourth quarter of last year, in addition to audited results for the full year 2024.
One of the most relevant data in the report is that the neobank added 4.5 million new clients during the last quarter of the year, which boosted a year-on-year increase of 20.4 million and thus reached a total of 114.2 million clients.
This growth has made Nu the third largest financial institution in Brazil by number of clients. On the other hand, net income reached US$ 552.6 million, compared to US$ 360.9 million in the fourth quarter of 2023. Meanwhile, adjusted net income rose to US$ 610.1 million, in contrast to US$ 395.8 million in the same period of 2023.
Revenues also increased by 50% year-on-year in constant exchange rate (FXN) terms, reaching a record US$3 billion. At the same time, average monthly revenue per active client (ARPAC) grew by 23% year-on-year FXN, reaching US$10.7.
In parallel, FXN deposits rose 55% year-on-year to US$28.9 billion, while funding costs reached 89% of combined interbank rates for the quarter, and the loan-to-deposit ratio (LDR) stood at 39%.
Additionally, Nu’s total receivables across its credit card and loan portfolios increased 45% year-on-year and 13% quarter-on-quarter FXN to US$20.7 billion, while its total interest-earning portfolio (IEP) increased 75% year-on-year FXN to US$11.2 billion.
It is worth noting that Nubank's good year-end close contrasts with a striking operation by Warren Buffett, one of its largest investors. This week, through his company Berkshire Hathaway, the American tycoon reduced his stake in Nubank by 53.52%, selling 46,258,829 shares for a value of US$ 416,267,000 in the process.
Although Berkshire still holds more than 40 million Nubank shares, the neobank has dropped out of Buffett's top 20 portfolio.
