Buffett-backed Nubank revenue rises on strong customer growth

Aug 15 (Reuters) – Nu Holdings Ltd on Monday reported second-quarter revenue that more than doubled as the Warren Buffett-backed digital banking firm saw strong growth in its customer base in Brazil, Mexico and Colombia.

Nubank has successfully thwarted the industry downturn triggered by geopolitical turmoil, rising rate fears and high inflation for decades through its diverse product offerings ranging from credit cards to personal loans.

The lender said profitability from sustained performance in its domestic Brazilian market and strong demand for commodities is supporting its international expansion into Mexico and Colombia.

Total revenue jumped 230% to $1.2 billion for the quarter ended June 30. On an adjusted basis, the bank posted net income of $17 million.

Nubank’s customers grew by 5.7 million, or 57%, in the quarter to a total of 65.3 million, while customers of its core credit card products reached 29 million.

The company’s non-performing loan ratio over 90 days reached 4.1% in the quarter, in line with expectations.

The lender, which listed its shares in New York in December, has seen the stock lose half its market value so far this year amid turmoil in financial markets. (Reporting by Manya Saini in Bengaluru and Peter Siqueira in Sao Paulo; Editing by Shailesh Kuber)