NUN Holdings Ltd. MX) on Tuesday reported a sharp increase in fourth-quarter gross profit as customers flocked to the company’s core lending products. MX) is a digital banking company backed by Warren Buffett.
As long as consumers in its important domestic Latin American market continue to favor Nubank’s core products, like credit cards and personal loans, the Brazilian lender will remain insulated from the downturn in the global banking sector.
According to founder and CEO David Vélez, “Nu was able to beat every key metric: maintained accelerated growth, gained share in products and markets” in spite of the macroeconomic difficulties of 2022.
In the quarter ending Dec. 31, Nubank gained 4.2 million new clients. 31 and 20.7 million in 2022, ending the year with a total of 74.6 million customers worldwide.
On an FX-neutral basis, the monthly average revenue per active customer (ARPAC) rose to $8.2, a growth of 37% over the previous year.
The digital lender’s fourth-quarter gross profit increased 137 percent to $578.3 million.
However, amid market volatility and worries about the stability of new-age financial firms when faced with severe macroeconomic headwinds, Nubank, which debuted in the New York Stock Exchange in a blockbuster market debut in late 2021, saw its shares drop by more than half last year.
With a record $4.8 billion in revenue for the entire year, Nubank’s total revenue for the fourth quarter was $1.45 billion.
The bank reported net income of $113.8 million for the three months ended in December on an adjusted basis. 31.
