Brazil’s Nubank is the momentum story in global banking. In 2023, the bank added 19 million clients (to a total of 93.9 million), and it now can claim to bank 53% of the adult population of Brazil. It is also now seeing a positive operating leverage effect from the growth in its client base. In the fourth quarter of 2023, it recorded revenue of $2.4 billion (Nubank is listed on the NYSE and all its earnings are reported in dollars), which was up 57% on an annual basis. Net income jumped 489% to $360.9 million, with a return on equity of 23%.
AfE 2024
The bank, led by chief executive and founder David Velez, says that it differentiates itself from the raft of neobanks by its ability to embrace credit. Credit accounts for 70% of the profit pool of the industry. He argues that if banks want to play in Brazilian financial services and are unable or unwilling to play in credit, they are completely removed from 70% of the total profit pool of $113.2