Nubank, backed by Buffett, profits on strong customer base and lending volumes

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A banner for Brazilian FinTech startup Nubank hangs on the facade of the New York Stock Exchange (NYSE) to celebrate the company’s IPO in New York, U.S., December 9, 2021. REUTERS/Brendan McDermid

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May 16 (Reuters) – Nubank posted a first-quarter profit and record revenue as Latin America’s most valuable fintech company enjoyed strong growth in its loan book and customer base.

The Brazilian digital bank backed by Warren Buffett’s Berkshire Hathaway (BRKa.N) said on Monday that its revenue more than tripled to $877.2 million, thanks to a record level of activity.

This is Nubank’s second set of results since listing in December.

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Analysts said the digital bank is well positioned to weather a continued deterioration in credit quality in Brazil, with its portfolio heavily tilted towards low-risk, low-return credit card receivables.

The company added 5.7 million new customers and said its average revenue per active customer rose to $6.7, up 63% from the prior quarter.

It posted an adjusted net profit of $10 million for the quarter, compared with an adjusted loss of $11.9 million a year earlier.

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Reporting by Mehnaz Yasmin in Bangalore; Editing by Devika Syamnath

Our standards: The Thomson Reuters Trust Principles.

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