Nu Holdings Is Quietly Building a Banking Empire in Latin America

American investors have no shortage of opportunities to deploy superior wrong the U.S. fiscal services industry. However, it's a bully thought to grow your horizons. There are booming businesses successful different parts of the world.

Nu Holdings (NYSE: NU) is simply a premier example. It has go a banking powerhouse successful Latin America. And it present sports a marketplace headdress of $59 billion. Here's what investors request to cognize earlier buying the fintech stock.

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All signs constituent to ongoing occurrence

Nu's worth proposition is clear. It provides low-cost, transparent, and easy-to-access fiscal services to an assemblage that was not lone historically underserved but besides unfamiliar with a digital-first model. Founded successful 2013, this concern continues to registry phenomenal maturation arsenic its adoption soars.

As of March 31, Nu had implicit 135 cardinal customers, up 14% twelvemonth implicit year. An ever-expanding idiosyncratic basal propels the apical line. First-quarter 2026 gross jumped 42% to $5.3 billion.

Most of the users are successful Brazil, the company's location country. Nu has a beingness successful Mexico (15 cardinal customers), wherever it's the third-largest fiscal institution. And it has astir 5 cardinal customers successful Colombia. Additionally, portion it obtains the indispensable approvals, the concern is readying to commencement operations successful the U.S. adjacent year, which would beryllium a large milestone.

Still successful hypergrowth mode, Nu is reporting sizable profits. Its Q1 nett income roseate 41% twelvemonth implicit year, resulting successful a borderline of 16.4%. Just 4 years agone successful Q1 2022, the concern posted a $45 cardinal nett loss.

It's understandable that by avoiding the costly overhead that comes with operating a web of carnal slope branches, the institution runs a leaner model. Its instrumentality connected equity (ROE) was 29% during Q1. This is importantly higher than JPMorgan Chase, a ascendant and scaled fiscal services entity, which reported an ROE of 19% past quarter.

Can this fintech banal beryllium a semipermanent winner?

Nu's fiscal show has been exceptional. But the banal is nether pressure. It has fallen 28% successful 2026 (as of June 11), though it has climbed 61% successful the past 3 years.

Chief Financial Officer Guilherme Lago, a seven-year institution veteran, volition measurement down connected July 13. Nu's expected recognition losses were up 76% twelvemonth implicit year, which mightiness beryllium scaring the market. The banal was besides downgraded by analysts earlier this month.