Nubank hits 90 million customers as third-quarter profits soar

Neobank Nubank welcomed more than five million new users in the third quarter of this year as profits surged to $915m.

Alongside a 100 per cent increase in gross profit Year-on-Year, the bank’s gross profit margin grew from 33 per cent for the same period last year to 43 per cent this year.

The Brazilian fintech also posted record-high revenues of $2.1bn — a 53 per cent increase from Q3 last year — and saw net income soar to $303m.

It posted a $7.8m profit for the same period last year, and attributed this year’s success to the compounding effect of customer growth and higher levels of customer monetisation.

Now the fifth largest financial institution in Latin America by customer base, Nubank now has more than 90 million customers, 85 million of which are in Brazil, accounting for more than half the country’s adult population.

“Nu is on a remarkable upward trajectory, demonstrating solid operating performance, continued growth, and increasingly robust profitability,” Nubank founder and CEO David Vélez said.

Monthly Average Revenue per Active Customer also hit double digits for the first time, at $10, with record revenue for the period and an adjusted net income of $356 million. 

“It’s important to note that we are achieving these strong levels of profitability while keeping asset quality in line with expectations and continuing to invest in product portfolio and geo expansion,” Vélez added.

According to Nubank, its customer base in Brazil has outpaced that of the five largest incumbent banks combined, which has contributed to its accelerated income growth.

It expects its growth trajectory to accelerate with the upcoming launch of its saving product.