Nubank posts lower-than-expected profit as provisions rise, Mexico reaches break-even

Nu Holdings

14/05/2026 22:03

By Kylie Madry

MEXICO CITY, May 14 (Reuters) - Brazil's Nubank on Thursday posted first-quarter net income below analyst expectations as higher provisions linked to rapid loan growth weighed on earnings, while its Mexico business reached break-even for the first time.

Nu Holdings reported net income of $871.4 million, below an analyst estimate of $980 million. Revenue rose to $5.3 billion, topping expectations of $4.5 billion.

Chief Financial Officer Guilherme Lago told Reuters the profit shortfall was tied to faster credit growth, which forced the company to recognize provisions upfront. Nubank's total credit portfolio rose 40% year-on-year to $37.2 billion.

Its 15-90 day non-performing loan (NPL) ratio rose to 5.0% from 4.1% in the previous quarter, though Lago said the increase reflected first-quarter seasonality rather than worsening asset quality. The 90-plus day NPL ratio fell slightly to 6.5% from 6.6%.

Nubank ended March with 135.2 million customers, including more than 15 million in Mexico, where the business reached break-even for the first time.

The company also said it would take a measured approach to expansion in the United States, with investment capped at under 100 basis points of its consolidated efficiency ratio in both 2026 and 2027.

 (Reporting by Kylie Madry)

 ((Kylie.Madry@thomsonreuters.com;))