Buffett-backed Nubank posts record revenue on strong user growth

(Reuters) – Brazil’s Nubank on Tuesday reported record revenue for the second quarter as the Warren Buffett-backed digital banking firm logged a surge in new customers.

The Brazilian lender has been so far insulated from the downturn in the global banking industry as consumers in the key domestic Latin American market continued to gravitate towards its core products, including credit cards.

“In Brazil, our growth trajectory continues, as one in every two adults is a Nu customer, and we have become the fourth largest financial institution in the country in number of customers,” said founder and CEO David Vélez in a statement.

Nubank added 4.6 million customers in the quarter ended June 30, reaching a total of 83.7 million customers globally, representing 28% growth from a year earlier.

This helped total revenue surge 60% to $1.9 billion from a year earlier, while monthly average revenue per active customer (ARPAC) increased to $9.30, an 18% rise on foreign exchange-neutral basis.

Nubank, which listed in New York in a blockbuster market debut in late 2021, saw its shares lose more than half their value last year. The stock has since rallied and has gained roughly 95% so far this year.

On an adjusted basis, the bank posted a net income of $262.7 million in the quarter, while on foreign exchange-neutral basis, gross profit climbed 113% to $782 million from a year earlier, and gross profit margin expanded to 42% from 31%.