Nubank, one of the fastest growing digital financial institutions in the world, plans to announce this year an expansion after the sweeping through its home market Brazil, and also Mexico, and Colombia.
The statement of the mentioned content last Thursday, February 20, was made by an executive of the virtual lender. To a large extent, the intentions of the digital financial institution regarding the scaling of activities are related to the fact that this bank recorded an increase in profit in the fourth quarter of 2024.
The adjusted net profit of the virtual lender showed a sharp growth of 87% over the specified period. The digital financial institution has demonstrated positive results such as an increase in revenue and a growing number of its customer base, but this has not been enough to ensure the upward dynamic of securities of the bank operating in the online space. Nubank shares fell in after-hours trading.
As of the end of December, the customer base of the digital financial institution, which is listed on the New York Stock Exchange through Nu Holdings, grew by 22% year-on-year, reaching 114 million consumers.
The virtual lender plans to announce its entry into a new market by the end of the current year. This was stated by Georg Friedemann, Nubank’s director of investor relations, during a conversation with media representatives. The virtual financial institution is already providing its services to consumers in Brazil, Mexico, and Colombia. Georg Friedemann stated that Nubank is not yet ready to make any specific announcements about the new region of its presence.
It is worth noting that the management of the virtual financial institution has been hinting at further expansion for several quarters now. This is the most natural path for a business that is developing and demonstrating growing performance in the context of a corresponding upward process, with global ambitions. Investors and analysts are currently awaiting more detailed information about the digital lender’s new region of presence and the timing of the launch of services there.
Last month, David Velez, chief executive officer of the virtual financial institution, said that deregulation could make the United States banking sector more interesting for new entrants. Also in this context, he noted that Europe is not a priority for the digital lender. It is still unknown whether this statement hints at a new market for Nubank’s presence.
Georg Friedemann stated that 2025 will be the year when a virtual financial institution begins to establish the foundations for itself to become a technology company capable of operating in many countries and regions.
The Warren Buffett-backed digital bank this week released information according to which its adjusted net profit for the fourth quarter of 2024 was recorded at the $610 million mark. It is worth noting that the average forecast of analysts surveyed by LSEG predicted that the corresponding figure for the mentioned period would be $567 million.
Nu Holdings’ shares dropped about 6% in after-hours trading to roughly $12.55 after the digital lender’s financial performance figures for the fourth quarter of 2024 were released.
As we have reported earlier, Nubank Acquires Hyperplane.
