Nu Holdings, a fast-growing digital bank based in Brazil, is expanding into Mexico, Colombia and the U.S., and has just launched an international bank serving customers in 35 countries. The company has 140 million customers, and its average revenue per active customer rose from $13 last year to $17 this year, while its activity rate reached 83.5% in the second quarter. Early delinquencies fell from 5% to 4.8%, and net interest margin rose to 12.4%, its highest mark in more than a year. The stock fell after Brazil failed to elect the market-friendly candidate, but the article notes that Luiz Inácio Lula da Silva, president since 2023, has just been reelected to his fourth term overall. At the current price, Nu trades at less than 11 times forward 1-year earnings, which the author describes as a bargain for a high-growth stock.
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