NU - Earnings call transcript Q4 2024

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Operator

Good evening, ladies and gentlemen. Welcome to Nu Holdings conference call to discuss the results for the fourth quarter and full year 2024.

A slide presentation accompanies today's webcast, which is available on Nu's Investor Relations website, www.investors.nu in English, and www.investidores.nu in Portuguese. This conference is being recorded, and the replay can also be accessed on the company's IR website. available also is call in Portuguese. This [Foreign Instructions] Language] [Operator Instructions] [Operator

Friedemann, like I Officer, call Mr. to over now at may to Holdings. Relations the Investor turn would proceed. Friedemann, Mr. Nu you Jorg

Jorg Friedemann

operator. today. call you, our And for everyone, Thank joining you, earnings thank

the not website. in Center you is have already, copy our our seen If section release of earnings a posted Results Relations Investor

Officer; call Executive President on today's Product are Lago, Operating Officer and Chairman; me our Chief Chief David Officer; With Founder, Financial Lahrech, and Youssef Chief Duggal, and Guilherme Chief Vélez, Jag Officer.

non-IFRS are call, will other but not to financial conference to basis. year-over-year measures our this by financial earnings non-IFRS Throughout important from net be companies. comparable Holdings, information Nu financial are defined otherwise, we our noted may not on rates Unless financial of Reconciliations adjusted all information, available and including financial for are information measures measures growth a presenting press These in income. IFRS as the neutral be similar FX release. IFRS

disclosure to on everyone are to I therefore, expectations. like cause could future differ numerous from should refer and to and materially include undue not guarantees remind which our statements release. our Please also that of performance, might today's the you put uncertainties and not forward-looking them. in would statements These statements, reliance discussion are risks forward-looking subject actual results earnings to

results our main and operating in will year results. Lago XXXX David and highlights Youssef detail. our full and through you After will of more Today, discuss fourth the quarter take that, financial

open then the We call for questions. will

ahead. to the go David, will over call Thank turn David. I Please, now you.

David Velez-Osomo

today. everyone, you evening, Good and us thank Jorg. you, joining for Thank

mission XXXX was our people. advancing in year as fight our strategy another and continue complexity to empower we pivotal

alone. all net geographies. million execution consistent year and XX.X addition customers serve million with across We approach growth XXX significant now this customer-centric X Our drove over

grew serving third XX% adding position customers, base in of million. customer customers. month, the million Brazil, and active we nearly strong a X of in as financial In XX further our growth XX% underscoring In population, year-over-year Our per to XX significant over the customers country Mexico, country. continued million achieved by our the milestone surpassing momentum in largest we the number institution consolidating

Beyond customer grew enabling while our step and expanded and XX% interest-earning also Colombia, deposit in Mexico bolstering particularly to our strategy, FX-neutral we growth, neutral Total expansion. long-term strengthened our XX% a portfolio billion, an credit $XX.X in crucial reinforcing our deposits $XX.X liquidity billion, to FX franchise, position prudent basis. on

billion We the the holding optimization. driven additional results, the institutions XX%. Nu maintaining and $XX.X level. capital in results ratio have significant $X for FX-neutral from demonstrating terms These excess even place significantly at to among to XXXX one efficiency our to business and almost XXXX most on model. of an close below end services efficient with financial further, compounding Revenues while with dropping an net us return growth, of Notably, at $XX.X; most XX% year-over-year by platforms FX-neutral financial to year a XX.X%, while position to global room improved profitable growth of our basis equity annualized income financial the on making doubled billion high globally, sustained ARPAC strengthening power our efficiency mark XX% trajectory our the grew and XX% up maintained in year-over-year the

remain Latin foundation scale. products launching extending place, financial deepening new With power across a in the financial of leadership, model, profitability we achievements focused engagement customer to our These to our deliver sustained inclusion low-cost commitment and our ability and strong on underscore our market America. at

slide next take the on move at to XXXX. our in closer let's we on look strategic a to advance priorities how Now

now XX% to institution. we up $X.X reached our of exciting position million as billion, trusted serving reflecting XX adult grew XXXX Mexico, in a of customers, milestone an First, the XX% financial increasing from Deposits country's significantly, year-over-year, XXX% population.

Our credit to not of base and card region. in XX% ability any did customer card X.X expanded ours, have million, increase financial customers demonstrating inclusion our these the by half almost credit help before to

XX%, while X payment in risk significant enhancements last first by approval XX%, have their years, improved increased and our credit approximately in on impact credit the and our default accessibility. models by has rate underscoring Mexico rates both performance Over the

XX,XXX financial points, services. our component cash-in digitize to strategy cash-out expanded access contact and of to a long-term critical also over democratize We and

$X.X moving lending counterparties in addressable impressive total an billion, new secured representing We in our public agreements XXX% collateral This lending market to for to year-over-year of XX% portfolio. segment. grew sector, with the signed Brazil. Now expanding XX% loans X total of portfolio to our the payroll

our of $XX for eligible payroll additional are loans, for loans. customers with along As FGTS million a XX now million result,

of enhanced captured our as and same FGTS market XXXX, market our share low-cost in portability from we the to product INSS and their who refinanced over came XX% originations, as as fit, strategy's success brought well of XX% the better distribution also We Nubank December At underscoring conditions. features. time, customers our power model. loans solution and originations And of them under

strategy, our XX% in XXX,XXX performance quarterly card accounting Brazil, with our with XXX% billion from our also was volume. success year-over-year XXX% card cards credit increasing to expanding Ultravioleta increase. purchase we close customers, made QX Ultravioleta Building high-income Credit volume purchase of significant Brazilian and remarkable, with strides for $X.X reach year-over-year credit our to in on

as of Our a alongside high-income to increase brand most in apart consideration. XX loved customers, XX% the set us brand continues NPS among

million Platform Money throughout have shopping our Marketplace Finally, Nu reality. becoming a the is our on year. platform bigger over customers X

market. for an service our we in a greater with NuCel, customers launched also their app development, bundled strengthening to even diversifying addressable account our of enabling our and And price and seamlessly Claro, within MVNO multicurrency the guarantee in partnership We with trips plan introduced best securely ecosystem Travel, further Nu convenience. offerings, a the with Nu's exciting expanding

X making geos, continue the share and existing we we expanding we have our core our opportunities ahead progress very excited further of by market monetizing the exciting our base. customer As increasing about products Nu's platform, remain in

along capturing expansion in of with growth total launch new has verticals Additionally, our continued Significantly with Platform our Money gaining our traction. strategic is ecosystem in the market. NuCel broadening The strategy addressable of build-out the telecom NuPay. Marketplace. services and that and are is avenues us, What's massive Nu Travel entirely significant Brazil's market these and for exciting particularly with growth of new Nu

just priorities, we've X. indicators early our remain that Nevertheless, pleased see strategic right with that several about We made day path. across ahead. our and progress and focused, we ambitious Reflecting on XXXX, it's we're what's very confirming we remain is excited the the perspective still on

who the our And with Guilherme us floor financial the Lago, of to will that, walk you, through to CFO, results. I'd our Over to details like pass Lago.

Guilherme Marques do Lago

Thank you, David. Good evening, everyone.

growth, validates exceptional of strong of operating efficiency with and David consistent year engagement XXXX the revenue by our marked customer deeper noted, solid combined power which As an model. all and further and business was margins profitability,

key look how pillars we Let's at and our the continued results quarter across advancing have take fourth of closer our strategy. a

XXXX. customers quarter customers, growth, increase million XXX.X acquisition, X.X platform Beginning million of with adding saw with another XX% new we strong over a our the and to customer year ending

increasingly engagement customer retention. focus base continues our our to As towards and shifts expand,

in Our active refine dynamics XX.X%. also activity X with Please as grew product differ base year-over-year rate, important note these customer our activity monthly and Mexico by we our Colombia XX% offering that markets. reaching Brazil's in from

in While X in Brazil our these and levels this consolidated countries outpaced activity temporarily impacted customer activity growth rate. initially Mexico lower Colombia quarter,

Turning to revenue expansion.

further on customer the base. our XX% representing strengthening continues ability our This Nu customers' primary our capture larger reinforcing our as financial effective and position active cross-selling of shown banking first XX, relationships, wallet strong Slide performance As now of partner. to a chart on through share approximately primary underscores up-selling,

We are to of relationship an also accelerated cohorts reaching see very pace. level at that primary this are recent pleased

the success and partner. center cross-selling our engagement of as their continue as By now that these also growing The further shows even number deepen new our our has X.X, per strategy products customers, products welcoming to strengthen the demonstrating main customers. chart new of average reached role effectively the active banking in we number customer a of we introducing

engagement The illustrates chart last with our positive X customer cross-sell powerful coupled combined growing results. capabilities the enables increasingly best-in-class dynamics: impact of these

cohorts While mature our average monetization our monthly of $XX, ARPAC stands long-term at are potential already approximately the model. our strong demonstrating $XX.X, more reaching

accelerated this slide also in shown reflects in the of bases dynamics also more recently, ARPAC Mexico our the and in customer growth Colombia. that note Please

the long-term relatively While who confident product, engage of our this levels, approach. one this we customers in highly initially may attract in strategy with Cuenta the primarily are generates market lower ARPAC deposit that value more

lays decade As strategy Brazil deeper road. foundation the for for greater we and now, nearly have engagement in the seen monetization a down this

monthly the in decline left-hand experienced of $X.XX. slight depicted As our chart, a ARPAC

an mentioned our I to as we to year with on ARPAC XX% before. it potential confident expanded Again, customer growth geographies, the our as matures rapid X% basis, time. increasing ability base However, prior compared despite and to the sequentially in FX-neutral its new remain in customer continue full

levels right by base year-over-year. strong of $X nearly active to the up customer this the The remarkable driven achieve. billion, expansion revenues record chart continue growth ongoing we shows the XX% another of was quarter hit on ARPAC by This our high and

in lending growth quarter robust across billion. driven the both and XX% total of XX% reaching on $XX.X XXXX, by of fourth strong experienced year-over-year a an also portfolio credit total basis, FX-neutral performance quarter-over-quarter, was Our cards. increasing growth and both This

credit to upward expanded more expansion the reach XX% gain, customer $XX.X the $X.X card on a our to portfolio. billion. wallets its sequential FX-neutral portfolio portfolio shares X% year-over-year and our XX% also basis lending basis. During Meanwhile, Lending reaching an of our segments. continues trajectory on doubled the cards, further year XX% across outpacing FX-neutral credit sequentially total quarter, portfolio billion, supported maintained all by in of This during an than

us customer durations and This scale a expanding demonstrated downturns also This growth credit our which of during challenging ticket significant previous but have America. reflects industry we economic not agility previous with navigate to growth gradually quarters, underscores to our originations. with remain eligibility, as also but Latin resilience increasing potential, fraction environments in enabling just ability is and averages. demonstrate driven our Consistent by approach cohorts further strong loan sizes lending performance, by

of Now installments credit let's look at card quarter-over-quarter. breakdown continued Interest-earning portfolio. our the growing

overshadowed intentional interest-earning following specific of deceleration risk seasonal shared earnings of expectations of Please bands. quarter, expansion last this note this aligns in credit card strong balance, portfolio. that bringing outcome the by we XX% However, for noninterest the that financing share installments to overall down growth was Pix with the the

eligibility engagement expansions Pix of strong, Although the we order what quarters financing of demand performance deliberately for the the second we the call profitability of half during monitor their product very and carefully the in on of remain assess products customer customer value pace to this relationships. second long-term have to the tempered XXXX coming effects and and

adjustments, the or engagement offer financing extensive potential Pix this across our our beginning at platform. undesirable a for different to account taking Now XXXX, more we mitigate effects exposure into testing on customers' refining began any product, bands, of quality after to and risk asset

the this approach, least anticipate penetration we challenging macroeconomic not and Given expansion a in of short significant Pix in a especially more financing do environment, at term.

billion, Originations Brazil. surged XX.X to and remained to and in in originating fostering Unsecured XX.X in our lending inclusion both primary BRL success engine, growth year-over-year business. for lending billion move demonstrating our the SMEs individuals quarter. BRL the Let's financial XX%

exclusively lending these secured Notably, quarter of X.X parties. our platform of the originations are acquired XX% our in billion and fourth from originations. generated do originations through representing BRL XXX% total not our portfolios include Now in-house reached lending XXXX, third

of is the Nu's expanded our over strong already fit originations. surpassed strong product XX%, originations channel. total of FGTS-backed has of Equally loans, shares in secured of this market distribution the new to exciting our XX% fully reflecting lending which performance market digital

payroll and also loans new in refinancings. with we progress as early parity, Brazil, achieving of are such for performance we top-ups and towards indicators public portability, pleased features This the significant product made year,

operations and armed very integrated eligibility. Brazil's launched in milestone with a successfully key expanding we Additionally, forces,

us agreements, supporting for access collateral TAM and To XX, further loans in major our originations. agreements will in or addressable the allow including of growth eligible grow to coming over expanding total signed new reach partnerships states municipalities. payroll newly months, with These XX% TAM, totaling market, Brazilian the public Brazil continued in we and now several for have customers

expansion basis. XX% our an XX% FX-neutral In across growth This $XX.X on by our side, Brazil, sequential funding the FX-neutral the total an On reached was increased increase supported for basis. deposits three quarter deposits robust billion, billion, to year-over-year on up an $XX.X geographies.

yield strategy in countries. and Additionally, in financial from It our enhance resilience in mission buffers our to continued while take improving financial Colombia these the Mexico in interbank while countries, our deposit empower to operations of over increase accumulated deposits to results. their has furthering cross-selling also to rate adding operations control increased $X.X XXXX, opportunities Even after liquidity to in and the our both lives ability significantly our excellent strong still rate, reducing Mexico fourfold deposits, a highlighting billion unit economics. our spread customers

individuals. account top in performance $X.X reached our X NuColombia's exceeded our Colombia among institutions on quarters launching placing billion, the Deposits financial based Lastly, after for X demand country's checking expectations. just deposits and us

very our of on an basis, billion. our XX Conversely, that with basis FX as consistent increasing in deposit the to the Mexico used reaching stronger these high translate remunerating reflecting increased the impacted rates; the to we price this secured which strategy the second, and line risk credit deposits continue a rose net primarily sequentially again geographies, by interest share in quarter. income of quarter: ongoing more average are of premium profile; of benchmark last FX factors record XX% loans costs new first, points XX.X% still result highlighted growth same and FX-neutral the also and negatively lower in Net we was testing with increasing mix as This to to interest due movements once NIM a a applied margin year-over-year as numerator rate to depreciated contracted interest-earning and driven the rate rate $X.X product yields, X% Colombia deposit the significantly, mix customer elasticity at our in than assets our both FX additionally, improving shift denominator. funding

mid- by in at Mexico to confident there balance we primary Colombia our to still significant further efficiency credit. the the to especially ahead trends, long-term will and believe a sheet and strengthen place. of remain opportunity significant loan-to-deposit expand rate profiles. We NIMs, normalizations looking lot levels, to ratio of Regardless funds profitability cash shifting interest future be of Now optimization deposit that the With improve is see originations low room is from driver and as we levels. take our

maintaining to let's a pillar last serve. the Now our cost low strategy, turn of to

Accordingly, our by processing continue strong model. an markets to business active believe a increase goal customer most grew customer spikes We basis, of we for $X.XX. of this future. ARPAC active an $X at year-over-year the to XX% that of over due largely leverage the XX% our per highlighting cost On one represents below data this a seasonal in per and serve to platform cost the FX-neutral the operating period, Simultaneously, to competitive same keeping represents our usages. achieved and is cost remain committed competitive Once advantage. foreseeable again, our our significant with we or in

billion expand FX-neutral X% sequential Our higher and of markets. performance deliver both we on significant business as reached XXXX, $X.X closer XXXX basis. also XX.X%, stood funding new geos. at strength despite an profit which gross invest costs our a increase margins model, This this profitability and XX% in even increase profit returning Gross we reflects our expected quarter, to from continues in levels, to new an the

scales. as we our past demonstrating the our leverage drive Over continue to operating ability quarter, business

from the ratio efficiency of strength to basis basis This at and enables innovation XX.X%, optimize as over investments model, our operating the technology last improved efficiency. quarter better sustain which further underscores and in XXX With year. remain maintaining scale. growth product we our significantly, confident automation, drive quarter improvement us ongoing while strong our to continue to previous progress than low-cost the XXX points Our closing we in and platform ability points

quarter margins points year-over-year and while sequentially basis FX-neutral million, Net our XX% the expanded income XX%. income on fourth an basis, reached in XXX to X% up net $XXX

increased an XX% XXXX the for Additionally, adjusted by impressive income $XXX from levels to net million. quarter

our demonstrate of our Our effectiveness line of strong the results and strategy bottom further the model. resilience business

fourth While long-term deliberate where making of both short-term our performance, leadership value pleased enhance entails and quarter maximizing markets focus approach future engagement we customer and relationships our remains the are the serve. with our This positions we our unlock on in investments our to customer opportunities, growth company. reinforce

over our of call will our Youssef, and the quality to President health portfolio. overall hand Chief I asset the credit Now Operating to and Officer, discuss

Youssef Lahrech

everyone. Hi, Lago. Thanks,

trends. with NPL as usual Starting

ratio, indicator, declined in the basis XX by to points leading XX quarter. X.X% sequentially the to Our XX

seasonal two, the normal see portfolio. shifts, we was fourth quarter, and mix our the customers secured credit towards in products in decrease growing driven card; within delinquencies of given in lower-risk lower-risk improvement towards the by Beyond early one, this mix lending

of points by X been XX, to now showing XX-plus in X.X% result a XX-plus lagged to past to past the which calls, delinquencies. in mentioned XX of we've decreases a NPLs in as for Those decreased a trends in are quarters and now. row indicator decreasing which, in long-dated up XX ratio XX have XX stock as behaves as basis

balances but trends on XX next total denominator. to and NPLs, rather the for than the both slide asset highlights XX-plus this of in This XX receivables quality time interest-earning basis

optimizing the As rewarded that management short the and in delinquency value have of our you trends relationships on of lifetime metrics reinforcing reflecting the being remained are focus capabilities. strategic solely declining underwriting maximizing additional we stable term. taken, can This recent the years, portfolio rather risk we've demonstrates strength the credit over to see, than our for customer

early, the XXX% volume customers lowering robust approach their of over helps have resilience across XX-plus update trends. to of NPLs. turn on proactive impact majority a focus And coverage year, with renegotiated as the an Renegotiations right-hand result relatively stable than we this our balances This risk for more level occurring credit their on prudent provision management finances on reorganize key renegotiated a remained now the XX delinquency to our customer low-friction, over experience. on our shown as minimizing and chart, of of before days overdue past Let's underscoring risk while maintained our the the our portfolio, of operations. portfolio

of XX decline by growth point cost XX basis In reaching points partially allowance an the a by In turn, sequentially in the line quarter. driven Lago million earlier, this basis by $XXX FX-neutral credit XX% loss quarter basis NIM credit of portfolio, risk. the increased on by with risk-adjusted our NIM by in point basis, expenses improvement offset explained XX compressed in

section, sharing our performance this market. the conducted slide credit risk by providers, the analysis line, this of data which X band rest the gray to compares conclude segmented XX-plus series the is time card on NPL our an we the portfolio Nu; of industry. To show of one the and of that are Brazilian charts where The with purple

and primary appropriate individual segment, customer within in of customer, rates which customers of which resulting see, risk further their industry, based Nu strengthens portfolio each risk a lower more credit to of As as underwriting capabilities, strength them and performance. our principality, are a the that meaning delinquency a behavior usage across limits use to of sloping can reflects and portfolio financial you more credit the on institution, share repayment factors, assessment alongside consistently outperforms overall every precise other make enhances as band. such achieving the each higher This more

please. go me turn David. let David, back that, now the call to With ahead,

David Velez-Osomo

Thanks, Youssef.

services, stages As transformation leading profound America early in we and in we of ahead, globally. financial look Latin both a the in remain

maintained Nu, vast the which still fraction have we Although growth financial worldwide, ahead only services belief revenue trajectory remarkable a since of our reinforces today, a of capture founding we in opportunity us.

we Brazil, another like and Colombia, we prioritize responsible which year this in over we priorities XXXX short-term outline groundwork in our our our during of growth earnings lay X-act XXXX continues Mexico investment gains, expand strategy to pivotal to our product With as our call Our and ambitious see will for presence deepen mind, the story. portfolio I'd ambitions. and what to long-term and

Starting franchise and most with the resources, and time America. retail banking majority our where Latin is our allocated. Act in X, This focus the remain focus and loved of today largest building

still credit app Brazil, reliable this While a in of our only represents achieved revenue will than and growth and experience. and nurturing our terms, potential. operations principality we in a all have Colombia, increasing fast seamless, significant X% In delivering scale, its while less love, customer share full fraction Mexico continue phase, globally market we scaling

beyond of ago years verticals. Moving expand services. We with travel and loved With into the the on most trusted to recently, traditional have more large entry engaged Act journey X, beyond services. this and marketplace, the few highly financial financial believe Brazil, embarked right our we and a customer a one and data capabilities, significant to and brands base, earned we cross-sell in go telecom

spending. create customers our is we goal to optimize Our of to engagement the upon Building of new and future. broadens ecosystem market launch will this believe strategy in their customers, needs addressable the enable an verticals and that our the empowers

building X, leveraging into endeavor artificial services millions a and this necessary intelligence few. our products by take customers global have XXXX, to that a services a This digital platform global access into we of banking historically long-term our hundreds foundations global been financial And with our vision. for to of Act a We the regional model, will vision select turn to to reality digital to In support banking reserved products is evolve at AI-driven scale. model. provide steps and finally, critical

growth. sustainable focus story As customer-centric on unfolds, execution, and unwavering our X-act our remains innovation

the Latin we what platform a financial technology thrive services more and truly as to redefine America platform ahead asset new than this ever lies in our across we're beyond, develop and We excited to about have potential built with than class.

to impact. now we ready and another With your look of progress that, forward your Thank address and support, you positive for to questions. continued we're year

Operator

to Investor Officer. turn Relations Mr. Friedemann, call like the to over Jorg would I

Jorg Friedemann

Kuri Morgan Thank open the Jorge line Could you you, operator. for please Stanley. at

Jorge Kuri

that it earlier regarding Congrats Can short what on numbers. not this Pix the about made expanding expanding comment in Pix. ask wanted a not clarify just I term to Lago means? actually total you Is it guess, as the balances it of is so will the it in percentage not card a percentage a portfolio? your portfolio? credit absolute of I as expanding that Or shrink,

Guilherme Marques do Lago

Jorge, Lago. question. this is Thanks for your

So is not should financing absolute of that portfolio, a not what the terms. I meant grow we as Pix in percentage overall

So continue our yes, to but expand, more very card Pix credit should line in overall, short financing term. with portfolio the in of overall the expansion Brazil in

So we churn reduced we as NPS, eligibility of Pix mentioned for we and engagement. prior lowest to of some impacts second credit financing, growth in what to bands of call, in related order primarily the basically financing the deteriorations kind saw, primarily the address Pix

to the and the And customer financing highlight being way overall positive, wanted improve is so even that order customer the but second or eliminate to and the profitability presented it's here, negative important to we potential resilience that be to as the Pix impact. of minimize portfolio continues any remarkably journey

journey in We the past the to of teams have XX working improvements. We the about over market of improve the with tests have been course months customers. in our now such the

of terms or encouraged will growth don't in growth we quarters. We to seeing able to next encouraging this want I'm will resumption X coming believe I percentage X quarters. in some happen But to create and the the any expectations necessarily are resume results, be that over that

David Velez-Osomo

secondary opportunity to we we've because to here great would it's go if significantly. we've profitable very is for said, optimizing But earnings We're optimizing one let And and to I profitability. a for continue And choice the over the this is even product of growing some And NPS. are user related back optimizing profitability, we're a experience. improving Jorge, to on me ways were add for with we make, is it always the which short-term culture. long example we run. that consumer that we here, as necessarily not This a shown love. in a just happy And have effects long-term understand, point prioritizing short-term think good

experience, consumer, though think the a And we'd bit improving se. optimizing per and earnings I the good and slower, accelerate long-term on of might user continue growth NPS take means, So it's rather cost the the very NPS that. comfortable the interface, the example it once a even are of just short-term it we us user what with improving long-term

Jorge Kuri

That's like and may walk you the of in I'm through the guessing very your Mexico possible for now Can quarters sort because the and business, your clear. X.X%, FX it had Is for you're a you us about growing risk-adjusted parts a impact then in Colombia, on which guys of X items impact impact the I in it your help NIM, has bridge NIM the I on, negative Lago, of and temporary risk-adjusted had because was follow-on and these example? on on what different had funding NIM, has Colombia, increase taking more ago. each portion. NIM. understand is clients cost If say, XX% risk-type moving an mean, Mexico add Pix NIM, to risk-adjusted and the us funding on you increase talked the cost

So that out XXX break different basis between the does less, it points, more how components? or

Guilherme Marques do Lago

No, great question, Jorge.

local right fourth So that one in, that quarter would translate drop let the but the have numerator. bps of into see relevant presented of numbers, the those the were, by factors in when we saw, number say the the most the our FX points, probably FX, basis can XXXX, you right? get the I can currency that XX we you earnings. of in probably dollars, So in this slides NIM see rates and we denominator FX, me one, the Out we different use about you the and dropped XX this

implying kind XX% FX. translated, So contraction. employing those different FX. about usually end-of-period And numerator of average FX typically use XX denominator rates XX%, explains the points is the is the of The of basis

of as we The in equally number by in explained more grow remaining two grow the Brazil terms secured credit rates. is yields balance; the one, that Mexico than the result in contraction a things: are we in interbank in as lending kind deposits still of overall higher lending growing than the Colombia, the are deposit and and two, unsecured XX% of drop largely portfolio interest which of loan paying

Jorge, believe the So the three I things, those are NIM. of justify the contraction that

basis we same slightly net basis have the kind then cost performing to XX which move margins, if of alluded than before, you positive have to Now do you of a interest on risk-adjusted XX and risk points I a expected. points better

there this? a respect certainly, the And the risk-adjusted of international outlook do parts versus with mix, the to relevant Going of so But NIMs see with to optimization forward, lot that balance is we for sheet. to continue and moving are our Brazil most NIMs how believe we geos. respect product

We ratio have loan-to-deposit a is that below XX%. continue to

loan book expect do we from in liquidity our NIMs of treasury part grows to As shift we see expanding the our to medium portfolio, and bonds term. credit

Jorg Friedemann

comes And line from Eduardo our the of BTG question from next Rosman Pactual.

Eduardo Rosman

I of slides. have here one a question your regarding

XX. think Slide I it's

which the at been But if think you combined? it? showed explains them helpful. that what a be same help performing, different in right? I you kind about right? underwriting, would better kind growth we in could achieve it understand How the loan So can that Should right, of the credit accelerating part strategy, us Do think principality, of how you've think think outperformance of that. peers as did about you has Is than card believe So personal Youssef, we you loans, margin, credit right, of is product? been should about it, cards? you level where Nubank unsecured I the

Youssef Lahrech

question. Rosman, this the for is Youssef. Thanks

right. You're

I just types same on dynamics those it's identify cards, unsecured types cleaner a It's cards, even expect loans. with out. various would data tend of the playing out than unsecured unsecured that well. hard more other be in analysis a the be parse to here loans up collateral of that kind little partially loans with to sources precision bit of are presented Typically, to or XX other in applies secured because show packaged So credit little to though credit as an in loans can we you as analysis to Page bit do

would usage and tickets would form have, to We usage. more customers we unsecured and And we the beginning risk give record customers ability that assessment borrow. get time, the actually precise we to a for very show data repeat of we up I can repayment. say have a to loan increase our able the amount proven grow more But new the more data. in be. can be don't Then performance lending customer of over of do When we have get the exposure likewise, the or in that in out to track repeat small low

lending So those applicable as that dynamics like are class equally. to that, product and well, unsecured all credit to we that expands underwriting believe

Jorg Friedemann

Goldman of the from And question from comes our Labarta Tito line next Sachs.

Daer Labarta

so My question, of much bigger secured thought. $X.X here, mentioned loans, in billion on than the kind secured lending, you we had

I you think the first grow it's there. to time originations this. continue the disclosed you And

in that a FGTS Also I maybe payroll Just secured and you you or how do the that, should have driver think faster? be opportunity a side, portability? accelerate growth loans understand, both of the even growth signed loan little the the really rest now the from growth particularly set for this lending payroll want think portfolio. Just in to have of think, us macro this you Do year Brazil, you the agreements, on about think and continued several the where big more of profitability is of year? can contextualize bit you help challenging a growth do the

Guilherme Marques do Lago

me we your lending and economics asset of a and principality in both growth in P&L kind But have my customers. our much relatively with to but has direct so for portfolio, to our a in unit be relevance with the that good excited question, thanks down an couldn't secured strategic proven correlation growing that brings it let of Tito, class for also the more of try responses few. the break

today, within secured we have asset lending X So classes. the portfolio basically

public have have We and payroll FGTS, we we investment-backed loans, have loans.

collateral the what course with the XX, over products on loans, end By that market. parity X INSS have we last months, I being focused believe features So have, and the the we SIAPE. of the product reached and XX lines, call improving basically of public payroll major XXXX, namely we primarily

loans; can refinancing; can So our with do can do first top-up do today customers portability.

of those main see on portfolio we loan together we expect target do account an X XX% market, our throughout acceleration collateral just which will that So the more relying than originations agreements, of for and XXXX.

SIAPE, now which secured in high states fact, have Forces fire. fuel largest and only public add seen municipalities to INSS Armed have for And and the new collateral Now originations agreements, the payroll of in or should in and general. we country, to and addition lending XX loans signed over we XXXX, January X in with the Brazilian including historical the

we payroll of the So prospects lending. public secured excited are with loan

into going XX% see positive in what be new the already that two second successful Now for FGTS FGTS, We entry asset originations we Brazil, been financing we for of account has of which to a to lens reasons. a than estimate believe product. strategy fairly we that more with the class,

can asset it very First, class fully profitable, very digital into we the distribution we accumulated loans. take how it FGTS to in in successful learnings have channel hope Brazil. resilient public showcases payroll a also is play with itself. that And out direct-to-consumer But

with the class, originations, our accounts finally, XX% asset our take, XX%, in is total or expand and of continue give class. customer for, asset which expansion then to which third we'll line loans, base the of investment-backed And

pick we throughout to So only our those X asset we it secured classes will are up and be what today think consider XXXX. lending,

about private Even changes that in other It the new writing and be formed may consignado, timely, of completely many is asset and asset people though the about, class a highlight is have Tito, which you been class which improvements already are Brazil. technically today, have exists to also that been talking this prospects to growth credit of Brazilian can consumer and credits the expected the materially consumers. will be form Brazil, to pie of conditions to a be the brought unleash in new market it improve to of the of size of able really also the the And terms country. consumer but increase not only in credit

very So continue participants. customer believe to to with could with closely for the and share its this a we be And very have expand our other of good for Nubank Brazilian government, base we been opportunity industry wallet. working that

Daer Labarta

helpful, a follow-up. If just I Great. can, very Lago. That's

so much about secured more it's also coming down, think risk-adjusted to have of and you a but to imagine personal the you the is lower, capital, you profitability up of loans a Just have relative the and Because bank I credit sheet, think mentioned, of the loans where profitability are NIMs of yields -- and about cards, sort can lot payroll we're payroll. how seeing we balance product as today? you the profitability of do leverage

Guilherme Marques do Lago

So are right, Tito. you absolutely

asset the and of So the profitability, than the ROE secured if lending the the in on of the lending of fact, class ROE lower cards. credit than you lower this is, measure ROE, ROE unsecured

not However, of would with that growing unsecured to or lending Why growth assertion secured expense at the I dilute lending Because be lending. secured not is expected the credit agree so? will we I the say our do overall of the in ROE. at cards expense

that the sheet. liquidity the We capital excess excess will putting to of we in and the work balance of basically be have

lending simplistically, in in us. our has basically shifting of So portfolio illustrate fund we for business, NIMs our part risk-adjusted bond NIMs if to treasury Brazil much which secured bigger more I and were to itself this are

So but not to be it overall it ROEs, ROIC the lower of of should level does dilutive profitability have lower or the company.

relationship, our banking million lots to engagement, important and Tito, for help Nubank balance sheet overall Brazil. the long-term an levels should primary benefits product that optimize will additional with bring kind it contrary, to kind which itself in customers of of of additional the to fact in XXX deployment of the us the On over foster it company. now mention, profitability Not is relationship

Jorg Friedemann

of line from our UBS. Batista And Thiago next question comes from the

Thiago Bovolenta Batista

have this one of NII that financing? the there view and room your for the look a agree especia Brazil? we country. expand segment, we in of of the of the When Pix approaching Brazil. caused by the there this it as of a contraction in in Do is contraction kind card credit expansion Nu business lot this And product with follow-up credit the a card maturation just to this about Or numbers is by in Was the NII card. Okay. on is question credit business, that in seems quarter you a business? to share market I this for credit saw in other the this card point, not

Guilherme Marques do Lago

So question. thanks for the

across let reduction in continue in within credit growth Youssef penetration get NII have comment card, yield to or try of the to the we on and the I'll the in me credit product then segments Jag or this Let Brazil. the that opportunities and card our

will quarters in been is we X That Brazil. past X card of you see has has largely what call what credit or the generally, function So that X things. decreased over a yield

to has or outpaced lower the has in customers So in card of therefore, as a has more what we customers, affluent growth points the and we more through as affluent it yield. overall the enter less And gained namely customers contributed of portfolio, UV price affluent our our credit slight with relevance grow continue to growth UV, contraction shares in operate we more our call ultraviolet, affluent customers. we when

this of more impacts Thiago, expansion which thing, of X the we the order the is identify quarters, of XXXX, and related, Pix credit yield. healthy beginning which these that very overall, as last second customers, to half in very some ROEs reduced second to a has we of the are But the product levels The eligibility second also continues headwinds to continue is since of expanding. financing created healthy card that very for we credit generate resilience, happy and

Jagpreet Duggal

Brazil. on it in card think by answer step. still go I'll we me growth through the from step complement I the short Thiago. credit let sort Lago, is of question room in see significant Thiago, Yes. for

have and last and through initiatives year, progress who customers' some mass customers all, this That to First typical purchase against that historically we've an continuing that cetera. market of expect and inactive that you into have of were customer that. reengage we've portfolio made on we progress in note incremental efforts made in is and volume, activity et and the improvements we year a to served, and will previously effort, ongoing

term to into segments we've much. medium over as believe, the played out grow historically also two them. opportunities, we other of point where not I'll There are significant

volume over get course also also from Ultravioleta and customers that good the small in product. of where, We've card we've First have the of the credit early the worked credit so-called purchase over well significantly product. segment is business cards traction doubled pejotas, for to some XXXX, high-income started our we customer to as number very doubled Ultravioleta improve customers,

and in term room expect we share note, steadily, had by there's today our product market about indicated purchase where, the beyond, Brazil just So significant card in as volume. medium only grow that XX% credit will over to as you we've

near for don't the shares possible frontier think are laying what the anywhere segments, more in room we've in of several our and there the market, the many There's with mass groundwork business in for model. growth particular, higher though XXXX. which we're is we new so are there. And years, been And even

Jorg Friedemann

And Schroden our from Gustavo of next question comes the line from Citi.

Gustavo Schroden

growth. we inflation that other inflation, some on potential high here, of seen this I'd credit explained, have see we've or and I I a as see adverse that most the a call conservative system in if And we environment? the and to a Pix talk what's to product. the difference the redesign you credit and and the can of words, say, My you you signals positive the in environment mean, and of rates correlation question we of credit more growth, of asset macroeconomic terms approach We've can about of pace concession. Nu there you're adopting regarding to we is seen, also I food, is according inflation questions some the that is about do relatively deterioration not And on still products, cycle. an your would concerns like on banks potential interest excluding But still, that environment. this see quality, need that the in selection to can course, the between understand, know for finance, high positive

Youssef Lahrech

macro. Youssef. question. not concerned say wouldn't we're the that I Gustavo, is about this Listen, Thanks for

adverse times, generally effects just just way very macro underwrite and credit and a about factors. factors, bad as we in from concerned of In kind unknown good fact, we're the factors, reminder, always external

when always that card or And in perspective, past, a credit expect our put to we've models that a the future underwrite so from we than philosophy to throughout. be They of significant Those credit, or a adhered stress forward-looking any that to we and significantly this worse loan why always assumptions underwrite. is have we the a form right? the we say are

in gone recessions This with is respect throughout outlook particular. negative facing outlook, And a we've our not year XX-plus time that through to Brazil a macro, the severe first not matter actually that we're only it's of history.

of a So portfolio underwriting a around both kind battle-tested have and we battle-tested framework that.

So terms time precision because what think of in term forecasting happens market anyone of to the crystal short than macro, we ball asset not we to try happens a to have quality. better with lot don't we what a

worse very at conservative take the and we a And to prefer is approach assume past all times. than so be to going the future that

bad learned that negative in macro of decisions the tend times. of we of to in performance the to the we've And is when our ability drive the make our terms good parts cycle, in times, portfolio withstand favorable,

a think above be very and observed cycles an that risk the we resilient, withstand hurdle we've perspective. from can throughout that portfolio of twice so that and profitable we've over And still underwritten amount is the NPV

built into caution continue with we of to underwrite so level And that the system.

in blind that, the to we're Brazil. addition worsened to In the has forecast fact not that

much we allowance worsened And forecast provisioned. when and of underwriting, in how reflect do do just but we we so we provisioning, not a terms do when slightly

confident we the in parts both underwrite our to we continue those have and to of some really in think good of and cycle that, and are the past. about to ability ways So bad grow in the we as remain continue

Jorg Friedemann

Pierry Mario comes the from America. And question from our next line of Bank of

Mario Pierry

to in global you Are bit And here America? can U.S. wanted scale about, little if about Are excited which talked you little are Asia, to wanted or On exactly, 'XX? becoming build in the what does a critical And -- you other taking what a bank? thinking to looking Latin I expanding critical franchise question franchise the Southeast also, what a ask more, markets about or is us we most mean mean plan? in the investments does you steps hear this costs? this I global and talking terms Africa are or expenses your or give what about bit year. you countries global of to last to digital more a then again, enter? David. potential this So this building slide, terms in of

David Velez-Osomo

to. Happy Sure.

XX now, able basic back to going we're Nubank seeing Brazil, a is that be to we digital business the going branch. Brazil. that to than are to going where world rule. bit It's of to not banking people least since we And XXXX started going the market, Mexico model we to in past a population. having an is the XX which XX%, a model the hypothesis years exception from growing prove think the of bank, XX% Colombia be years much XX, more banking that hypothesis, at of in the the about and is right XX, as been business, So first

include it that financial think can and show do we quality, prove a people show can services; that, when this can more I with we into is can Brazilian with what people reach higher today, business can a cost Score; number model business And our with it one, we more the profitability. Promoter and and same can a and is Net going employees. every it do a a stakeholder model Mexico also better: higher makes in lower investors direction. superior much Colombia a with because higher consumers, It's

very results paths ways. similar it's seen -- happy the we're and very number are far, Brazil, the think with though in different a we're of following to good even markets we've that very I different so far so

So Latin history banking America. the years of think XX, this hypothesis in core in Nubank market as first XX in a about way, we the proving

to I hypothesis in next question where how We And all cash we we'll customers. We're testing wallet really customers. do XX the just positioning years, We some of we leave do wallet. to is, to primary model you to some think to years. to do Then especially because a primary want countries be remittances. to that. XX And go over markets. after account, we of this next of do the not primary more the complexities bank our the We This payments for go that, just the we strategic a is become to in internationalize, in an it, don't or the bank account which easy continue that's valuable not advantages want brings. America. that deep bank account is model Latin number are have banking There that of most way of think beyond to a some go want be the a the these very be

We get licenses. to have banking

number connected get to local have parties. We of a with different

a has it internationalization. relatively therefore, been slow So

allows actually has it's platform in consumer another global A internationalization we months, proprietary can have bank, history, big maybe having give could be we've countries, we'll relatively us that retail months -- ultimately base, been to with Nobody speed about code to us a as our globally, efficient, one part bank, no and them of core that is global expanding. significant low XX that advantage investment. for building multiple bank, able that platform. has to in platform of to forever. far base multi-country It's new has the that extremely other to that probably this core And XX banking in do a and allows with once as core countries already build been XX that continue launch something technology tell a

is technology last meaningful a specifically this change to getting what question, XXXX. investing. we're be It's means no are we mentioned and We've to going generating XX% of revenue. XX% to this technology infrastructure not already So today through products year versus building what continuing our that employees this your really been expense that are platform build to have

continue XXXX. these countries, significantly true be to true what a going where going We Mexico. XXXX. That's way a it for the to be option significantly. with That significant and you've years already. XX It we're country slowly, evolution once as money launched what it's we won't with a did we confidence invest in where in a We And million. of Brazil. start always more So we we versus pick in It conviction of for And upfront. we next is to same. for in That's seen XXXX. XXXX. we invest $X about Brazil did for little we're true call change do we're will is or That investing approach, get what about markets, launched Mexico

expect big-bang in every much you on So the find markets. we'll a angle, a us at invest approaches own take more if capabilities, new, won't significant where our approach, our the and doing technology more and do to way in big testing that. trying We'll it upside, hypothesis we leverage careful own much

to for which few years. already expenses. That's we've a embedded been that is long expect don't investment type changes in already effectively, So any the meaningful question, expense in and doing answer your of

Mario Pierry

direction, are countries only competitors, strategy think first you you pool like that think the get you sense It ever they're adapting, pool a of still is or the The since probably very we and operating. right? very more market take that the current guess, in Mexico? about you It years evolving. countries Like, especially continue right are it revenue Brazilian grow like make stage where profit when to more early market market, you the in going But you right, will right? it, competitive seeing feels wouldn't clear. feels share before That's you're profitable, become sure make the entered countries. also these it today, few have I the to but in mentioned of and the a I it's right, you market, We're X% in the at

that is, XX% maybe concern So senior franchise? to don't right, it but you existing for global you main when too going okay, thinking a distraction, are globally. management, in the about have of like get little start employees are become you before generate revenues a maybe sorry working like bigger my on XX% today, to to that like again, countries bit So I feels you should but try be your that the projects early, question, what

David Velez-Osomo

the you're we of -- focus, call and and think which we exactly you're question. Act I No, you think saying, the company bit is what a if And overwhelming what a management are said remains I right. it's to you I X. on phenomenal what the the actually focus go And initially, back saying listen if

and So have We which think is highest of Act continue the XX% company. this of X, Colombia, is priority. Brazil, to the focus over all Mexico the

which secured Mexico We you opportunity. the mentioned continue revenue a share is do lending America, market that in for is We're to the There excited -- can XX% it's we opportunity. in about tiny. think increasing that huge account countries revenue of Latin especially Latin the share we of X share, lot operate, that the America. a entire we revenue the Brazil, X%

for a though now, multiyear is So specifically, internationalization are effort. aligned. is I right ready The you getting point and

capacity X%, in that investing a more and of of our start to much to energy. prudent years resources is it to so investment X% And do ready few be with

do So fully we sequentially. this cannot

that next tiny that into out phase to execution growing capacity employees figuring percentage got going and are metric ahead. specifically today, investing of XX% is it's little But XX% are revenue, services, financial today. Act do into in parallel our we the goes with in growth stuff is associated with of that of associated internationalization, core. don't Even a markets for plus there. You the a we that that X, is have generate which that they

Jorg Friedemann

line Coffey Barclays. John And of comes question the our from from next

John Coffey

mean up probably but going be to XX%, question in can revenue, these the see any high-level what views in the if so what know principality, that your principality last we is margins, your went that customers, should point to be impact to me things I could to income? you on a all would that general? from equal, answer, is think, saw being XX% you model challenging at, X way net what this XX% increases kind of on P&L active quarter. of Any about give I other like, and I again, now thinking what of

Guilherme Marques do Lago

the focused necessarily by seasonality how we principality the that on year, thanks in and so then transactions on I is principality going bit John, Yes, or bring quarter question. and is higher bit Look, Especially fourth principality. I a X% too of there, concentration a there little little given much some think up a purchase There down. effects measure volumes may for wouldn't get your especially up down of eventually X%. kind

that banking relationship address we step globally. of Why have lower if non-primary been a think do because for customer grails is the than operational delinquency banking is relationship banking relationship the of KPIs I important non-primary banking delinquency Xx digital basis. is primary customer. of a for of holy than believe ARPAC of apples-to-apples metric But relationship higher a relationship of on a one to an primary is primary we is over do banking XX% evolving we banking I us, The question, Because most relationship which so? to company and customer the one say ARPAC the banking back the try customer the now time, your X the a primary that of metric

that model construed. is has way been this the so our And

FX collecting the As We business to that kind not David in wallet play. often social be numbers. secondary envisioning of we the mentioned, or security an mention we of are are not

in of relationship our expected quarters, in over becoming customers. it positively the becoming the are our And even the we finance which unfold business the in customers. of of to increase primary open primary is relationship of especially think open We world, to the in is banking relevance or coming Brazil, banking going banking a

primary It's is only also not kind one it's short-term very boost, long-term strategic stars. a a of this of kind angle. So P&L and our of north

John Coffey

and get which really is little XX%, you're deposit you a testing One quick the is think but that term. little a more Mexico, still I your XX% Or follow-up. to what not about bit to from battle maybe why of bottleneck wondering something have you deploy of capital a was the On here dipped to else? near you're the credit that wouldn't this which XX% of maybe that is immediately? model maybe could LDR, bit big Would you say base, in most ready it if

Guilherme Marques do Lago

No.

points think, let I address me question, this good John. on look, two

of So that first balance paying, don't with an LDR to book that look the look, why I optimize the drop think institution sheet. why don't you is, you're at first, in one when you ask question XX%, you may the that you rates order deposit loan financial any increase the have or

receive data acquisition relevant our banking we but a from believe, deposit that, payments, mentioned do be banking most primary only order want think place primary And a need we make is the funding very a very from value. the payments, achieve that strategic before, we we do first customers. is be to perspective. to only the approach us, relationship in store not a not they having relationship as therefore, to also And perspective, of of I for franchise perspective, from where

see a sign a not weakness as do we So of the of LDR necessarily low having model.

On the engagement customers' that contrary, a our through and seen are more it more platform. as principality way should getting we and be

be time But grow aim to do of book over sheet. we credit something we faster a more of cannot to credit and got our fairly have course, just also optimize credit the scaling books, with specifically order double and your to very kind able underwriting that do have love responsible Now be balance unsecured in triple you would faster you you books, we because it's to discipline, book credit to or deposits. credit systematic that necessarily and

and right level have and You need past over the we believe resilience with thoughtfulness been carefully of doing we credit years. do so the that to

have the we quarters. past that disconnect think, I that's, over So been seeing the

XXXX, even and in that the to of see to pronounced very us and mainly in deposits lay for we loan sheet the is contributed with in loan-to-deposit the in expectation expected, lowering ratio. Mexico, or kind we grow growth groundwork our ramp-up credit there. past geos. better to single that Colombia velocity metric our observe are over each per those in continue Mexico which both X we in But Mexico we'll will have balance as in Every slightly of than confident quarters the certainly very The a book improve the that performing countries,

Jorg Friedemann

from Fernandes, And our next JPMorgan. of question the line Yuri comes

Yuri Fernandes

that number secured it more right? you it's look a have, than of is about bit growing, a some clients, like the than color to mature it's unsecured growing Very is can for on product, strategy little fastest loans, less would we the good When provide you especially the balance. growing Brazil. ask personal origination, this that's in product, the the like more if lending product that I but to less

growth provide Is right? loan question you new to my customers? the linked is Are duration from, seeing? going a So can the is here strategy? color. So are where coming of this yield that a like this Is we higher little you to if bit lower

being to And is we loans? different product, you somewhat approach And just fixed product a of personal do unsecured product. and time. between finance a this question why most see for not in usually selective related right? more This the also but on higher-risk finance, So fixed this

Jagpreet Duggal

your This to answer try the in I'll Jag. thanks questions Yuri, for order. question. is

has of the order et credit all last line credit in impacts, stronger and second line product those very cetera, all, of a getting make look point way. customer first trends, order your And First to mention lending. decisions would in by I quality at we product that granular trends, been the

decisions So financing be might lending the we different why or are why they making we Pix that and are in describes making other basically in products.

you've seen very over our out we've as the doing There a And noted, me and lending that's results. been to been we've XXXX though quarter driving a growth strategy. over Let as more couple and those whole. hallmarks of zoom healthy are unsecured talk very, what about broadly

of result, already dynamics. have loan First, are mix to a taken we've we understand significantly unsecured as loans with a And and increased who've the Nubank. personal that the first risk vetted going customers

and in less loan mature first scaled, So time. offering loans earlier our mix our much portfolio, customers customers, was years to our increasing the active of were personal versus an we second much loans for less when the to loans, business

so So very a either have in customers a paying or finished to confidence. who who we're on are loans we've now healthy way, and greater vetted, we loan offering have do to course

which things but a do able is simultaneously risk. across the it, of adjusted portfolio, our it's that second of risk, for been only helps That lending although our that dimension are we've to for two and matters, following: adjusted success, a part which

this we've risk, of given have larger as loans, level able to customers through, been lower rates, to the course any been interest offer better For pricing, of we and able really over mentioned, our to and year a our I XXXX also offer to modeling, significant have significant lending personal that and yielded getting perspective continue to results, know expect well. credit as we which investments from better customers through in through

those of I and credit the And fit talked when able to the testing on would we're a and And similar credit we've months. thing testing high similar lower now last XX-plus X part the the But risk much of to a max They we example, adjust talked cycle we're expand required that is for I I over starting about in mass significantly that business dynamic our book expect small our provide And a market credit now that segments. And what same larger through I'll product third our significant historically, degree, in personal on mention that bulk mention gone their new experimentation, we customers high to again, better income, to about to are and in from principles. require and card, seeing as where small the given pricing good customers, for segments businesses. better lower the response high-income average. be on was card: lending side. income mentioned the

things we've that XXXX significant on the unsecured key in had success are the QX lending. in those So explain and

Yuri Fernandes

seeing comfortable strategy more follow you Super approach this lending with If increase able the term product, you X duration? be on the -- are able Like, may remember on clear, to the around I Jag. you for changing on it Are to duration, up, I book, just used like you months, the this? to of here? how are this average the duration are loss

Jagpreet Duggal

are we duration that's question. slowly, I apologize question. great to would Yuri, optimistic duration is say working we longer are that first in for a and durations. incrementally customers I great What able as increase we -- missing it a makes the time Yes, are be incrementally direction relatively of but on it will over to round. increase for go our that It's moving sense we

relatively I have the would efforts testing We things direction. stages that in, several that in move of say, are early to

I trajectory. go in that to in terms dramatic So but expect or that be wouldn't rapid expect yes, I'd direction, of to that

Jorg Friedemann

everyone. you, Thank

We are approaching XX minutes of the call.

end to have the will I So session.

we are today's So concluding now call.

want Nu call team, On participation to earnings behalf for thank Investor time of in Holdings today. our and and our I very Relations you much your

are years We services come. continue a goes excited class XXXX, very our the we beyond in with and asset developments new build execution that sharpening traditional financial in to our to

will questions were platform with not the but Over via the that questions and received attempted, ask be following able our up coming days, with we those to tonight. we

to our you, good Thank night. and not So do out have team please a if have further reach to questions. you hesitate any

Operator

for now attending today's Thank Nu conference you has concluded. The presentation. Holdings call

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Nu (NU) 20 Feb 252024 Q4 Earnings call transcript