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- **Record Growth**: 127 million customers, $4B revenue, $783M net income, and 31% ROE highlight scale and profitability. 
- **AI-Driven Efficiency**: AI models reduce credit losses by 3x, enabling 20%+ credit limit increases in Brazil. Mexico's ARPAC of $12.5 mirrors Brazil's maturity. 
- **Mexico Expansion**: 13M customers (14% adult pop), 34% YoY deposit growth, and 25% market share position for long-term growth. 
- **Risk Management**: 6.8% 90+ NPL ratio, 27.7% efficiency ratio, and 9.9% risk-adjusted NIM reflect disciplined underwriting. 
- **Regulatory Challenges**: Brazil FGTS headwinds offset by public payroll loans; Mexico interchange caps risk financial inclusion. 


**【CEO Summary Section】**
- Customer base grew to 127 million, with 4 million net additions in Q3, maintaining an 83% activity rate. Brazil and Mexico remain core markets, with Brazil nearing 60% of adult population and Mexico at 13 million customers (14% of adult population). 
- Revenue reached $4 billion, driven by ARPAC expansion to $13 and disciplined monetization. Gross profit rose sharply, with a cost-to-income ratio of 28%, reflecting operational efficiency. 
- Net income of $783 million highlighted profitability despite ongoing investments in growth and innovation. 
- AI strategy focuses on becoming AI-first, integrating foundation models into operations for personalized customer experiences, risk management, and operational efficiency. Brazil's credit card ARPAC of $13 and Mexico's $12.5 demonstrate strong unit economics. 

**【CFO Financial Commentary】**
- Credit portfolio grew 42% YoY to $30.4 billion, with unsecured loans (133% YoY) and secured loans (63% YoY) driving diversification. Loan originations hit $4.2 billion, up 40% YoY, supported by SME and individual credit policies. 
- Deposits reached $38.8 billion (34% YoY), with cost-to-income ratio improving to 89% of interbank rates. Net interest income rose 32% YoY to $2.3 billion, though NIM contracted 40bps due to mix shift to lower-yield, lower-risk assets. 
- Credit loss allowance declined 7% QoQ, driven by better recoveries and AI-enhanced underwriting. Gross profit of $1.8 billion (32% YoY) and efficiency ratio of 27.7% reflect scalability and margin expansion. 
- ROE of 31% (39% YoY) underscores profitability despite short-term cost pressures from strategic investments. 

**【Q&A Highlights】**
- **Provisions & Asset Quality**: Lower provisions (7% QoQ decline) due to improved recoveries and AI-driven underwriting. Brazil's 90+ NPL ratio at 6.8% remained stable, with coverage ratios maintained. Mexico's asset quality outperformed expectations, with ARPAC of $12.5 nearing Brazil levels. 
- **Net Interest Margin (NIM)**: NIM contraction (17.7% to 17.3%) due to mix shift to lower-yield secured loans and higher Brazil funding costs. Risk-adjusted NIM expanded to 9.9% due to lower credit costs. 
- **Mexico Growth**: Deposits grew 34% YoY with cost-to-serve below $1, supporting 25% market share. Regulatory caps on interchange fees could limit financial inclusion but industry collaboration may mitigate impact. 
- **Regulatory Risks**: Brazil's FGTS loan headwinds expected to be offset by public payroll loan growth. Mortgage expansion not prioritized due to long-term nature and balance sheet constraints. 
- **AI Implementation**: nuFormer models (330M parameters, 600B tokens) improved credit limit approvals by 3x, with Brazil credit card limits increased while maintaining risk appetite. Mexico and Colombia AI rollouts underway. 


Nu Holdings Ltd. (NU) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

NU

NU fundamentals

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