Nu Holdings sees ‘sustained increase’ in customers; shares jump

Shares of Nu Holdings Ltd.
NU,
-2.03%
jumped 14.7% after hours on Monday after the Brazil-based digital banking platform reported a surprise third-quarter profit and revenue that beat expectations, helped by a boost in active customers. The company reported net income of $7.8 million, compared with a net loss of $34.4 million in the same quarter last year, boosted by a “sustained increase in the number of active customers and higher customer engagement,” executives said. The company reported sales of $1.3 billion, compared with $480.9 million in the prior-year period. Analysts polled by FactSet expected Nu to lose $8.9 million during the quarter, on sales of $1.23 billion. Net interest margins increased to 11.1% during the quarter. The company added 5.1 million customers during the quarter. However, executives noted “increased delinquency in the quarter, consistent with the market.”