Brazilian digital lender Nubank has reported quarterly net profit above $1 billion for the first time, marking a significant milestone for Latin America’s rapidly expanding neobanking industry. The stronger-than-expected result demonstrated that a digital bank built without a traditional branch network can achieve large-scale profitability while continuing to expand credit and customer numbers.
Profit exceeds market expectations
Nubank’s parent company, Nu Holdings, recorded net profit of $1.06 billion during the second quarter of 2026. The figure represented a 49 per cent year-on-year increase on a foreign-exchange-neutral basis and exceeded analysts’ average estimate of approximately $967 million.
Investors responded positively, sending Nubank’s shares around 9.5 per cent higher in extended trading to approximately $15.25.
Quarterly revenue climbed 39 per cent to $5.88 billion, also surpassing market expectations. The results were supported by customer growth, higher lending activity and an improvement in the income generated after accounting for credit risk.
Digital customer base approaches 139 million
Nubank now serves nearly 139 million customers across Brazil, Mexico and Colombia. Its scale has transformed the company from a challenger offering simple credit cards into one of Latin America’s most important financial institutions.
The digital model has allowed Nubank to reach customers through mobile technology while avoiding much of the cost associated with large branch networks. Its growth has also encouraged established banks to reduce fees, improve applications and offer faster digital services.
Mexico and Colombia remain central to the company’s regional strategy. Both markets contain large populations with limited access to affordable credit and modern banking services, creating opportunities for digital institutions that can assess customers and deliver products at lower operating costs.
Lending continues to expand
Nubank’s credit portfolio increased by 37 per cent from the previous year to $39.4 billion. Growth slowed slightly compared with the unusually strong first quarter but remained substantial, rising 5 per cent on a quarterly basis.
The risk-adjusted net interest margin improved to 12.4 per cent from 9.9 per cent a year earlier. Management said the current margin appeared sustainable for the foreseeable future, indicating that the bank is generating stronger returns after allowing for expected lending losses.
Credit costs declined from $1.79 billion in the first quarter to $1.69 billion. Nubank received some benefit from Brazil’s Desenrola debt-refinancing programme, which allows individuals to renegotiate outstanding obligations. However, the programme represented only around 5 per cent of the bank’s total credit costs.
Credit risk remains under scrutiny
Despite the strong profit, the size and speed of Nubank’s lending expansion require careful risk management. Early-stage delinquency reached 4.8 per cent, below the first quarter’s 5 per cent but 0.3 percentage points higher than a year earlier.
Credit costs also remained 60 per cent above their level during the corresponding quarter of 2025. This reflects both the larger loan portfolio and the financial pressure affecting some Latin American households.
Nubank’s performance nevertheless signals a broader shift in the regional banking industry. Latin American neobanks are moving beyond customer acquisition and low-fee payment products towards profitable lending, savings and investment services.
The $1 billion quarterly profit milestone strengthens Nubank’s position, but its longer-term success will depend on maintaining credit quality while expanding into new markets and serving customers who have traditionally been excluded or poorly served by conventional banks.
Newshub Editorial in Latin America – 14 August 2026
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