Nubank Reports Remarkable Growth, eyes LatAm’s top spot

Latin American fintech leader Nubank has unveiled impressive growth figures for its fiscal year 2023, showcasing substantial increases in customer base, revenue, and profitability across its key markets of Brazil, Mexico, and Colombia. With a significant expansion of 19.3 million customers in 2023 alone, Nubank’s total customer count now stands at nearly 94 million, marking a remarkable 50% year-over-year increase.

In Brazil, Nubank’s largest market, the company’s operations soared to new heights, boasting a customer base of 87.8 million, representing over half of Brazil’s adult population and solidifying Nubank’s position as the fourth-largest financial institution in the country by customer numbers.

The surge in customer acquisition fuelled a substantial revenue uptick, with Nubank reporting a 57% increase in revenue on a constant currency basis, reaching $2.4 billion in Q4 2023 and totalling $8 billion for the full year. This growth trajectory translated into impressive profitability, with Nubank achieving a net profit of $1 billion and an adjusted net profit of $1.2 billion for 2023, a notable turnaround from the previous year’s net loss of $9.1 million.

David Vélez, Founder and CEO of Nubank, expressed confidence in the company’s financial goals, reaffirming earlier statements about aiming for annual profits of $1 billion. Vélez emphasised Nubank’s strong capitalisation, with capital adequacy ratios double the regulatory minimums across its markets, alongside significant growth in interest-earning portfolios and low-cost deposits.

Nubank’s expansion efforts extended beyond Brazil, with notable achievements in Mexico and Colombia. In Mexico, the customer base expanded to 5.2 million, driven by the successful launch of its Cuenta Nu deposit account. Meanwhile, Colombia witnessed accelerating growth, surpassing 800,000 customers ahead of the launch of a new savings product.

With ambitious plans to surpass the 100 million customer milestone in 2024, Nubank is strategically investing in new growth avenues and product offerings across lending, deposits, investments, and insurance. Under Vélez’s leadership, Nubank has disrupted traditional banking norms, achieving substantial financial success in an industry historically characterised by slow growth and modest profits. The company’s remarkable performance has not gone unnoticed, with its valuation reaching $37 billion, underscoring its potential to emerge as Latin America’s premier financial services platform.