Nu Holdings Ltd.

Q2 2026 net income reached $1.1 billion, up 49% year over year and 17% sequentially. Gross revenues were nearly $5.9 billion, up 39% year over year, gross profit was $2.4 billion, up 43% year over year and 25% sequentially, and net revenues reached $4.1 billion, up 8% sequentially. The credit portfolio was $39.4 billion, up 37% year over year and 5% sequentially; deposits were $45.3 billion, up 18% year over year and 6% sequentially; net interest income was $3.7 billion, up 9%; net interest margin was 22.9%, up 180 basis points; risk-adjusted net interest margin was 12.4%, up from 9.5%; the efficiency ratio was 19.5%; and return on equity was a record 33%. For the full year, management said it still expects the efficiency ratio to average about 20% and said risk-adjusted NIM should remain in the same region as today. They also said Desenrola had about a 5% impact on cost of credit, and that more than 4/5 of that impact was already reflected in Q2.

David Velez framed the quarter as proof that Nubank’s long-term model is working, emphasizing that the company has gone from a credit-first fintech to a full digital bank with 139 million customers. He highlighted deeper monetization in Brazil through higher-income and “super core” segmentation, including the new Croma tier, and said Mexico’s banking license approval unlocks primary banking, payroll, and deposit capabilities. He also spent significant time on AI, saying NuFormer is now a single platform powering underwriting, support, optimization, and growth, and that AI is helping Nubank build toward an “AI private banker.”

Rob Livingston focused on balance sheet strength, credit performance, and operating leverage. He said the credit portfolio reached $39.4 billion, deposits $45.3 billion, the loan-to-deposit ratio was 35%, cost of deposits was 88% of the interbank rate, and allowance increased from $6.1 billion to $6.6 billion, with coverage at 244% of NPL 90-plus. He attributed the 12.4% risk-adjusted NIM to credit growth, a mix shift toward unsecured lending, seasonality, and lower cost of credit, and said the company remains comfortable with portfolio quality while keeping full-year efficiency around 20%.

Analysts focused heavily on the jump in risk-adjusted NIM, whether Desenrola inflated the result, and whether the 12.4% level is a floor. Management said Desenrola was a minority contributor, that the main drivers were seasonality and solid underlying credit performance, and corrected that 12% is not a floor but a ballpark level. Another theme was asset quality and mix: when asked if rising NPLs were coming mainly from unsecured personal loans, Rob said the increase reflected portfolio mix shifts more than deterioration in a single product, while also noting the company is not seeing broad-based consumer credit weakening. Questions about the U.S. showed management expects the credit model to transfer quickly but said it could take 12 to 30 months to build the data richness and confidence needed there.