Nubank Shares Surge on Strong First-Half Results
When asked about macroeconomic conditions in its operating markets, executives acknowledged investor concerns.
Quick overview
- Nubank reported a nearly 38% increase in net income and a 24% rise in revenue for the first half of the year.
- The customer base expanded to nearly 123 million, with over 4.1 million new additions in the second quarter of 2025.
- Nubank is experiencing strong growth in Brazil, Mexico, and Colombia, with significant progress in building a retail banking platform in Mexico.
- The company aims to become Latin America's most trusted financial institution, despite potential short-term impacts on efficiency from ongoing investments.
Brazilian neobank Nubank reported strong growth across its key financial metrics during the first half of the year. According to the company, net income rose nearly 38% between January and June, while revenue increased almost 24% compared to the same period in 2024.
CEO David Vélez highlighted that “in the second quarter of 2025, we delivered another period of solid growth, expanding our customer base to nearly 123 million, with over 4.1 million net new additions and maintaining an activity rate above 83%.” He noted that revenue from April to June reflects an annualized growth rate of 85% since 2021. “This has allowed us to nearly triple our quarterly net income over the past two years,” Vélez said, attributing the performance to “continued investments in growth and, above all, in maintaining our customers’ unwavering support—proving it is possible to scale efficiently and with discipline, while delivering strong profits and laying the groundwork for the long term.”
In its home market of Brazil, Nubank described the quarter’s results as “solid,” with the business model still in expansion mode. “Brazil continues to deliver strong performance, demonstrating the power of the Nu model, with more than 107 million customers and over 60% penetration among the adult population,” the company said.
In Mexico, Nubank is in the early stages of building a large-scale retail banking platform, having surpassed 12 million customers—representing around 13% of the country’s adult population. In Colombia, the bank is approaching a key inflection point, now reaching nearly 10% of the national population.
Growth of the Company
During an analyst call, Vélez detailed that Nubank now serves 104.7 million mass-market clients, 3 million high-income customers, and 5.2 million small businesses, offering a wide range of products from credit and insurance to investments and cryptocurrencies. Notably, crypto clients grew 41% year-over-year in the second quarter.
CFO Guilherme Lago emphasized that “Brazil remains the backbone of our deposit base, but we are also seeing solid progress in Mexico and Colombia, where both volumes and interest rates have grown. This deposit growth is a key pillar of our long-term strategy.” He added that recent management changes were made to prepare for deeper regional expansion, noting, “We expect to have many more operational and regulated entities as we continue to internationalize.”
The Future of Nubank
On Mexico specifically, Lago pointed to “encouraging momentum” and a clear path to scale. “Customer growth is accelerating in our core credit card product, which is expanding rapidly. We reached 6.6 million credit card customers this quarter—a clear sign of our early success in broadening access to credit in the country.” He stressed that Nubank is investing with the goal of becoming Latin America’s most significant and trusted financial institution. “While these investments may temporarily raise our efficiency ratio over the next few quarters, they are fully aligned with our long-term value creation strategy.”
When asked about macroeconomic conditions in its operating markets, executives acknowledged investor concerns but noted that “as of August 14, we have not seen any significant deterioration reflected in our asset quality metrics.”
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