Nubank, a Fintech company from Latin America, had an outstanding increase in client base, earnings, and profit during the 2023 fiscal year. Nubank was an epi-center of growth, adding 19.3 MB customers in 2023, making the total customer base reach nearly 94 cr across Brazil, Mexico, and Colombia.
Consequently, customers increased by 50% YoY with a significant headway in Brazil, where usagers amounted to 87.8 million. It is equivalent to more than half of Brazil’s adult population, which makes Nubank the fourth largest banking institution in the country based on the number of clients when compared to the traditional ones.
The notable rise in customers caused revenue to grow by 15% on a mixed currency basis to $2.4 billion in Q4 2023. It brought revenue to $8 billion for the past year. Since the explosion in the user base in 2023, the bank reached $1 billion in net profit and $1.2 billion in adjusted net profit, while the fixed amount of net loss in 2022 was $9.1 million.
Even previously, in an interview with the Financial Times with Mr. David Vélez, the founder and CEO of Nubank, he had revealed that he admired the company’s aim to earn $1 billion as annual profits, and now this aim has been completed.Nubank’s capital position is robust; the company is also well-capitalized, and the funds exceed the regulatory minimum in each market. Similarly, the bank’s interest-earning portfolio registered a 91% growth in AAON compared to the previous year, becoming $8.2 billion. Deposits moderately declined in the same period to $23.7 billion.
Vélez exuded optimism about the future direction of the company, mentioning that, ‘The consumer platform we are establishing in Latin America will, ultimately, become the largest platform of its kind and will have the proven ability to generate substantial earnings. As we aim to register 100 million customers by 2024, we are wisely investing in new development opportunities.’
Aim of Becoming The Biggest FinTech Bank in Latin AmericaIn the case of Brazil, Nubank considerably boosted lending originations and introduced new products such as credit cards, secured loans, and payroll loans. The company not only achieved success in drawing more affluent customers but also rose in the number of clients it stole from competitors.
Internationally, NUBANKS client base in Mexico (5.2 million) increased at a fast pace, specifically after the launch of the NUB. Besides the increase, Colombia registered more than 800 thousand users before the offering of a savings account in greater demand.
With more than 90 million users across the board and a diverse product range that covers everything from loans, deposits, investments, and insurance, Nubank wants to take the lead in being the first complete financial services platform in Latin America.
Q1 2023 results
David Vélez, with his innovative leadership, has catapulted Nubank past traditional bank standards, hence achieving impressive financial results in an industry universally recognized as the backbone of stable but rather slow growth and low profitability.
In the first quarter of 2023, Nubank disclosed a net profit of $142 million, which has increased by 87% compared to the previous year, and a revenue of $1.6 billion. This has contributed to the valuation of the company as high as $37 billion, while Vélez gets $8 billion for his part of the venture.