In the third quarter of 2023, the Brazilian fintech unicorn Nubank revealed outstanding financial results, reporting record revenues of USD $2.1 billion. Net income reached USD $303 million, with an adjusted net income of USD $356 million.
According to Nubank’s founder and CEO, David Vélez, the company reached 90 million customers in October, closing the third quarter with increasing principal and participation rates. Despite this, the cost per customer remained below the dollar level, and the efficiency ratio improved by 40 basis points in the quarter, reaching 35%.
The Average Monthly Revenue per Active Customer (ARPAC) exceeded double digits for the first time, reaching USD $10. The annualized Return on Equity (ROE) reached 21%, and the adjusted annualized ROE reached 25%, demonstrating robust operational leverage.
Vélez emphasized the ability to maintain high profitability while maintaining asset quality and investing in products and geographical expansion. During the quarter, Nubank attracted 5.4 million customers, totaling 89.1 million globally as of September 30, 2023. This positions Nubank as one of the largest and fastest-growing digital financial services platforms globally and the fifth-largest financial institution in Latin America in terms of customers.
Brazil’s customer base reached 84 million as of September 30, 2023, representing 51% of the country’s adult population. According to data from the Central Bank, Nubank is the fourth-largest financial institution in Brazil in terms of the number of customers. In addition, the 15-90 days delinquency rate decreased to 4.2%, while the +90 days delinquency rate increased to 6.1%, in line with expectations.
Internationally, in Mexico, the customer base grew to 4.3 million, driven by the success of the Cuenta Nu savings product and the member-get-member program. In Colombia, the customer base expanded to around 800,000, anticipating accelerated growth with the launch of Cuenta Nu.
Nubank’s product portfolio includes credit cards, savings accounts, and personal loans, with approximately 39 million, 65 million, and 7 million active customers. Nubank has over 1 million active insurance policies and over 12 million active investment customers.
The Brazilian digital bank Nubank had approximately 74.6 million users during the fourth quarter of 2022, reaffirming its growth in 2023 with nearly 15 million more customers, solidifying its position as one of the most significant unicorn companies in the region.