Nu Holdings, the parent company of Latin American digital bank Nubank, reported second-quarter net income of $1.06 billion, up 49% year-over-year on a foreign-exchange-neutral basis and marking the first time in the company's history that quarterly profit has exceeded $1 billion. Shares rose 2.7% in regular trading and jumped a further 9.25% in after-hours trading following the release.
Revenue for the quarter reached $5.88 billion, up 39% year-over-year, while gross profit climbed 43% to $2.44 billion. Return on equity reached 33%, and the company's efficiency ratio, a measure of operating expenses relative to revenue, stood near 19.5%, close to management's full-year target even as it ticked up slightly from the first quarter due to increased marketing and real estate spending tied to international expansion.
Nu Holdings' customer base grew to 138.9 million, up 13% year-over-year, with Brazil approaching 118 million customers, Mexico reaching roughly 16 million, and Colombia surpassing 5 million. Average revenue per active customer rose 22% to $17.10, reflecting deeper monetization as the bank cross-sells credit cards, loans and investment products to its expanding user base.
The company's total credit portfolio grew to $39.4 billion, up 37% year-over-year, while deposits reached $45.3 billion across its three core markets. Asset quality was mixed: the earlier-stage 15-to-90-day non-performing loan ratio improved to 4.8%, while the 90-day-plus delinquency ratio rose to 6.9% from 6.5% a year earlier, a shift the company attributed partly to seasonal delinquency patterns.
Risk-adjusted net interest margin, which factors in credit costs, expanded to 12.4% from 9.5% in the prior quarter, as cost of credit declined 9% sequentially to $1.7 billion. Net interest margin overall rose to approximately 22.9%, up roughly 180 basis points sequentially, reflecting continued repricing and mix-shift benefits within the loan portfolio.
The results mark a notable rebound after Nu Holdings' first-quarter 2026 report fell short of some Wall Street expectations, which had put pressure on the stock heading into this print. Regulators in Mexico also authorized Nubank's Mexican subsidiary to operate as a full multiple bank during the quarter, a designation that allows the unit to offer a broader range of financial products and services, a milestone management highlighted as important for the company's longer-term growth strategy in that market.
Analysts covering the stock have generally welcomed the improved profitability metrics, though some flagged the uptick in longer-duration delinquencies as a data point worth monitoring in coming quarters, particularly as Nu continues to expand its secured and unsecured lending books at a rapid pace across multiple currencies and macroeconomic environments.
Nu Holdings' scale and profitability improvements have made it one of the most closely watched fintech growth stories globally, with the company frequently cited by analysts as a bellwether for digital banking adoption trends across emerging markets more broadly.