Nu Holdings Q3 Profit Climbs 31% as Mexico Base Hits 16.6M

Nu Holdings Ltd. (NYSE:NU) stock rose in Friday's premarket trading after the Latin American digital bank reported third-quarter net income of $1.1 billion, up 31% on an FX-neutral basis, on gross revenue of $6.3 billion, a 37% increase. Earnings of 22 cents per share matched analyst expectations, while revenue of $5.82 billion beat the $5.68 billion consensus and climbed from $4.17 billion a year earlier. The shares last traded at $11.83, down 2.07% on the day within a range of $11.79 to $12.27, as of 12:32 UTC today.

Context — Why Nu Holdings' Q3 Beat Matters Now

Nu's third-quarter print lands as the company pushes beyond Brazil into Mexico, Colombia and the United States. The report's own comparison point is a year-earlier efficiency ratio of 20.3%, which has now improved to 19.3%. Management also cut its 2026 efficiency ratio forecast to 19%-19.5%, from approximately 20%, signalling that cost discipline is being written into forward guidance rather than treated as a one-quarter gain.

The catalyst chain runs from customer acquisition to lending volume to margin. Nu added 3.7 million customers in the quarter, taking the total to 143 million. That base is now feeding a credit portfolio that expanded 33% to $41.6 billion, with unsecured lending up 39% to $11 billion.

Mexico is the newest leg of that chain. Nu's customer base there jumped 27% year over year to 16.6 million, covering 17% of adults. The company added 870,000 customers during its first quarter as a fully licensed bank.

Brazil remains the anchor. Nu served approximately 120 million customers there, reaching 65% of adults, with a record activity rate of 86.3%. Unsecured personal loan originations rose 28% to a record 22.1 billion Brazilian reais.

Colombia adds a third growth vector. Its customer base surged 62% to 6.1 million, and Nu became the country's largest credit card issuer by cardholder count, serving 3 million cardholders. Its credit portfolio grew 80% on an FX-neutral basis.

Data — What Nu's Q3 Numbers Show

The headline figures trace a bank scaling faster than its cost base. Net income rose 31% on an FX-neutral basis to $1.1 billion. Gross revenue increased 37% to $6.3 billion. Revenue reached $5.82 billion, beating estimates of $5.68 billion and rising from $4.17 billion a year earlier.

Metric	Q3 2026	Prior comparison
Net income (FX-neutral)	$1.1B	+31%
Gross revenue	$6.3B	+37%
Efficiency ratio	19.3%	20.3% a year earlier
Customers	143M	+3.7M in quarter
Credit portfolio	$41.6B	+33%

Lending and deposits both climbed. Credit card balances rose 32% to $27.2 billion, while unsecured lending jumped 39% to $11 billion. Deposits increased 19% on an FX-neutral basis to $47.5 billion. Net interest income climbed to $3.9 billion from $3.7 billion, while net interest margin reached 22.5%.

Credit quality moved the other way. The 90-plus-day delinquency ratio increased to 7.3% from 6.9% in the previous quarter. Management said the increase partly reflected a growing share of interest-earning balances rather than solely worsening credit performance. The allowance for credit losses rose to $7.1 billion from $6.6 billion.

The market data offers a narrow comparison window. NU shares ranged between $11.79 and $12.27 during the session, with the last print at $11.83, down 2.07%.

Analysis — What Nu's Growth Means for Fintech and LatAm Banks

Nu's expansion touches several listed exposures. Brazilian incumbent banks compete directly with Nu for deposits and card balances, and the report's 19% deposit growth on an FX-neutral basis to $47.5 billion shows the digital model is pulling funding away from branch-heavy peers. Card networks benefit from higher volumes, since Nu's credit card balances rose 32% to $27.2 billion.

The U.S. entry adds a second-order angle. Nu launched its U.S. banking service on Sept. 10, offering an account with a 3.5% annual percentage yield, fee-free transfers to Brazil, Mexico and Colombia, and a no-annual-fee credit card with unlimited 1.5% cash back. Within weeks, Nu U.S. reached customers across all 50 states. That yield competes with U.S. deposit gatherers, though the report gives no U.S. deposit total.

Nu Global, a stablecoin-based multicurrency account, launched Oct. 15 and attracted customers across 37 countries. Management expects the two new businesses to affect its efficiency ratio by no more than 100 basis points in each of 2026 and 2027 — a stated cost ceiling, not an open-ended drag.

The counter-argument sits in credit. Delinquency at 90-plus days rose to 7.3% from 6.9%, and the allowance for credit losses climbed to $7.1 billion from $6.6 billion. Management attributes part of the rise to a mix shift toward interest-earning balances, but the allowance build shows the company is provisioning against the possibility that the explanation is incomplete. Investors holding NU are effectively long customer growth and short credit deterioration; the premarket gain against a session decline to $11.83 suggests the market has not fully resolved which force wins.

Outlook — What to Watch Next for NU Stock

The forward guidance gives two markers. Management lowered its 2026 efficiency ratio forecast to 19%-19.5%, from approximately 20%, so any quarterly print outside that band will be read as a deviation from a stated target. The company also said the U.S. and Nu Global businesses should affect the efficiency ratio by no more than 100 basis points in each of 2026 and 2027.

Mexico's trajectory is the second marker. CEO David Vélez said Nu's Mexican business could reach about 70% of its Brazilian operations under the base-case scenario, with the potential to match Brazil if Mexico's economy becomes more digital. He noted credit card penetration in Mexico remains at 12%, compared with 75%-80% in Brazil.

The credit line is the third. Watch the 90-plus-day delinquency ratio against the 7.3% reading and the allowance against $7.1 billion. On price, the session range of $11.79 to $12.27 frames near-term support and resistance; no moving-average levels are available in the data.

Frequently Asked Questions

What does Nu Holdings' Q3 beat mean for retail investors?

It means the company grew profit and revenue faster than it grew costs. Net income rose 31% on an FX-neutral basis to $1.1 billion, and the efficiency ratio improved to 19.3% from 20.3%. Revenue beat consensus at $5.82 billion versus $5.68 billion expected. The offset is credit: the 90-plus-day delinquency ratio rose to 7.3% from 6.9%, and the allowance for credit losses climbed to $7.1 billion from $6.6 billion.

Why did Nu Holdings stock fall despite strong earnings?

The report does not attribute the session move to a specific cause. NU last traded at $11.83, down 2.07%, within a range of $11.79 to $12.27, as of 12:32 UTC today. Premarket trading had shown a gain. The decline came alongside a delinquency ratio that rose to 7.3% from 6.9% and an allowance build to $7.1 billion, though management said the delinquency increase partly reflected a mix shift toward interest-earning balances.

How big is Nu Holdings' Mexico business compared with Brazil?

Mexico has 16.6 million customers, up 27% year over year and covering 17% of adults, after Nu added 870,000 customers in its first quarter as a fully licensed bank. Brazil has approximately 120 million customers, reaching 65% of adults. CEO David Vélez said Mexico could reach about 70% of Brazil's operations under the base case, with potential to match Brazil if Mexico's economy becomes more digital.

Bottom Line

Nu's profit and revenue growth outpaced its cost base, but rising delinquencies and a $7.1 billion allowance keep credit quality the swing factor for NU shares.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.