Nu Holdings Q2 2025: Navigating Contradictions in Expansion, Deposits, and Lending Strategies

International expansion strategy, deposit growth and strategy, secured lending growth and strategy, Pix financing strategy, and loan growth and asset quality are the key contradictions discussed in Nu Holdings' latest 2025Q2 earnings call. These points are significant because they involve changes in business strategy and financial forecasts, which can impact investor expectations and market confidence.



Revenue and Customer Growth:
- Nu Holdings reported revenue of $3.7 billion for Q2 2025, representing an 85% annualized growth rate since 2021.
- The growth was driven by sustained customer growth, with the customer base expanding to nearly 123 million customers, and a 34% ARPAC CAGR since 2021.

Credit Portfolio Expansion:
- Nu's credit portfolio reached $27.3 billion in Q2, up 40% year-over-year on an FX neutral basis.
- The expansion was attributed to diversification across secured, unsecured, and credit card segments, with secured lending growing 200% and credit cards 24%.

Deposits and Funding:
- Total deposits increased to $36.6 billion in Q2, up 41% year-over-year on an FX neutral basis.
- Growth was supported by increased customer engagement and a focus on expanding deposit franchises in Mexico and Colombia.

Asset Quality and Credit Loss Allowance:
- The 15- to 90-day NPL ratio declined to 4.4%, reflecting seasonal improvements, while the 90-plus day NPL ratio increased to 6.6%.
- Despite this, net income reached $637 million, driven by strong net interest income growth and disciplined credit loss management.