Nu Holdings reports strong 2024 results with $11.5bn revenue and 22% customer growth

Nu Holdings Ltd., one of the world’s largest digital financial services companies, has reported a significant surge in profitability and customer acquisition, reinforcing its dominance in the Latin American fintech sector. The company’s customer growth strategy helped it reach 114.2 million users by the end of 2024, a 22% increase year-over-year. Meanwhile, revenue soared to $11.5 billion, reflecting a 58% annual growth rate, and net income nearly doubled to $2 billion, solidifying Nu Holdings’ position as one of the most profitable digital financial services providers globally.

Chief Executive Officer David Vélez described 2024 as a transformational year, emphasizing the company’s success in expanding its footprint, enhancing product offerings, and strengthening primary banking relationships. The company saw significant momentum in Mexico and Colombia, where its customer base expanded rapidly, while Brazil remained a stronghold with a rising share of high-income clients.

How Did Nu Holdings Achieve Record-Breaking Revenue Growth?

Nu Holdings’ profitability and expansion were driven by strategic investments in product innovation, operational efficiency, and aggressive market penetration. The company’s net income reached $552.6 million in Q4 2024, marking an 85% increase compared to the same period in 2023. For the full year, net income nearly doubled from $1.03 billion in 2023 to $1.97 billion in 2024. Adjusted net income, which factors in non-recurring items, grew to $2.2 billion, with a return on equity (ROE) of 32%.

Revenue from core banking and lending activities remained a key driver of financial growth. Net interest income climbed 57% year-over-year, reaching a record $1.7 billion in Q4 2024, while gross profit hit $5.24 billion for the full year, an increase from $3.49 billion in 2023. These gains were fueled by Nu Holdings’ expanding loan portfolio, deposit growth, and rising customer activity across its markets.

Despite fluctuations in currency exchange rates, the company maintained a strong net interest margin (NIM) of 17.7%. While this represented a slight contraction of 70 basis points compared to previous quarters due to Nu’s deposit strategy in Mexico and Colombia, the overall lending portfolio more than doubled, reaching $6.1 billion by year-end.

What Drove Nu Holdings’ Customer Growth Strategy in 2024?

Nu Holdings’ ability to scale its digital financial services platform has been a defining factor in its sustained growth. The company added 20.4 million new customers in 2024, with particularly strong traction in Mexico and Colombia. In Brazil, Nu Holdings solidified its status as the third-largest financial institution by customer count, according to data from the Brazilian Central Bank.

Mexico’s fintech adoption surged, with Nu Holdings crossing the 10 million customer milestone, representing 91% year-over-year growth and 12% of the country’s adult population. Similarly, Colombia reached 2.5 million users, benefiting from the success of Cuenta Nu, the company’s flagship savings and transaction account.

Customer engagement metrics also demonstrated a strong increase in activity. The monthly average revenue per active customer (ARPAC) reached $10.7 in Q4 2024, up 23% from the previous year, with more mature customer segments generating over $25 per month. The company’s monthly activity rate remained high at 83.1%, with increasing adoption of core banking and lending products.

How Is Nu Holdings Expanding Its Digital Financial Services Portfolio?

Nu Holdings continues to differentiate itself by introducing innovative digital financial services tailored to local markets. In 2024, the company made significant strides in product diversification, launching offerings designed to attract high-income customers, increase transaction volume, and expand access to long-term savings solutions.

One of the most notable launches was NuTravel, a new service bundled with multi-currency accounts and travel benefits, aimed at providing seamless financial services for frequent travelers. The company also entered the telecommunications space with NuCel, a mobile virtual network operator (MVNO) in partnership with Claro, further integrating financial and connectivity services into its ecosystem.

Additionally, Nu Holdings deepened its secured lending portfolio, with payroll loans expanding by 615% year-over-year to reach $1.4 billion. This segment now represents 23% of the company’s total loan portfolio, following the signing of nine new agreements with public sector institutions, significantly increasing the potential customer base for secured loans.

The company also reported a substantial increase in Ultravioleta, its premium credit card offering, which saw a 132% rise in customers, reaching nearly 700,000 users by the end of 2024. Ultravioleta cardholders collectively generated $1.8 billion in purchase volume in Q4 2024, accounting for 10% of Nu Holdings’ total Brazilian credit card spending.

How Is Nu Colombia Expanding Its Savings and Investment Options?

Nu Colombia, a subsidiary of Nu Holdings, continued its customer growth strategy with the launch of CDT Nu, a new fixed-term deposit product aimed at improving long-term savings accessibility. Research conducted by Nu Colombia indicated that only 3% of the population currently uses fixed-term deposits (CDTs), primarily due to lack of familiarity and misconceptions about high entry requirements.

CDT Nu was designed to eliminate traditional banking barriers, allowing users to open deposit accounts directly through the Nu app with a minimum deposit of $50,000 COP and offering competitive returns of up to 11.1%. Customers can select between 90-day or 120-day terms, providing flexible savings options tailored to different financial goals.

Cuenta Nu, Nu Holdings’ flagship transactional account in Colombia, has already paid out over $230 billion COP in customer interest earnings since its launch. To align with Banco de la República‘s monetary policy, Nu Holdings will adjust Cajitas Nu’s savings rate to 9.5% E.A. starting March 1, ensuring continued competitiveness in the local market.

What’s Next for Nu Holdings in 2025?

Looking ahead, Nu Holdings remains focused on expanding its digital financial services ecosystem while scaling its operations in Mexico and Colombia. The company’s strategic priorities for 2025 include:

• Strengthening profitability and expansion efforts across Latin America
• Increasing secured lending and high-income banking adoption in Brazil
• Driving deeper customer engagement through new savings and investment products

With a 55% year-over-year increase in total deposits, reaching $28.9 billion, and a rapidly growing loan portfolio, Nu Holdings is well-positioned to solidify its dominance in Latin America’s competitive fintech landscape.