Nu Holdings has reported an exceptional financial performance for the first quarter of 2026, marking a significant milestone with its revenue surpassing the $5 billion threshold for the first time. The company also achieved a net income of $871 million, representing a substantial 41% increase year-over-year. This impressive growth is underpinned by a robust expansion in its customer base, reaching over 135 million globally, with notable contributions from Brazil and Mexico. The firm's strategic focus on artificial intelligence, particularly its "NuFormer" foundation models, has been instrumental in optimizing credit decision-making and enhancing customer engagement, showcasing a blend of technological innovation and market penetration.
The financial institution's credit portfolio demonstrated considerable growth, expanding by 40% year-over-year to $37.2 billion. This expansion outpaced its liabilities, resulting in a net interest margin (NIM) of 21.1%. However, due to seasonal factors and a deliberate strategy to venture into higher-risk segments, credit loss allowances saw an increase of 33% quarter-over-quarter, totaling $1.79 billion. Consequently, the risk-adjusted NIM adjusted to 9.5%. The early-stage non-performing loan (NPL) ratio, covering loans 15-90 days past due, rose to 5.0%, while the NPL ratio for loans over 90 days past due slightly improved, decreasing by 10 basis points to 6.5%.
A pivotal element contributing to Nu Holdings' accelerated growth is its comprehensive embrace of artificial intelligence. The company's proprietary “NuFormer” foundation models are actively enhancing real-time credit decisioning processes across its key markets, Brazil and Mexico. Furthermore, the integration of AI Private Banker functionalities has successfully engaged over 15 million monthly active users. This technological leverage is built upon a cloud-native infrastructure and an extensive first-party dataset, positioning Nu Holdings at the forefront of digital banking innovation.
Nu Holdings operates as a prominent digital banking platform, offering a diverse array of financial solutions. Its offerings include various spending solutions like Nubank+ Tier, Nu credit and prepaid cards, Ultraviolet credit and prepaid cards, and mobile payment functionalities. Additionally, the company provides Nu Shopping, transactional services, and a suite of savings and investing solutions, catering to a broad spectrum of consumer financial needs.
Nu Holdings has announced impressive first-quarter results for 2026, with record revenue exceeding $5 billion and net income hitting $871 million. The firm added 4 million customers, pushing its global total past 135 million, largely due to strong performance in Brazil and Mexico. Significant growth in its credit portfolio, coupled with strategic AI advancements like the "NuFormer" foundation models, has been key to its success. These innovations are driving enhanced real-time credit decisions and expanding customer engagement, reinforcing Nu Holdings' position as a leader in digital financial services.