Business

Brazilian Nubank saw customer base double and losses decelerate in the 1st semester

The neobank announced it had BRL 19.9 billion in cash and 26 million customers as of the end of June

Nubank card on a white background and coins. Nubank is a Brazilian company in the segment of financial services and digital bank. largest fintech in Latin America.
Photo: Rafa Correa/ Shutterstock
  • The bank has gained 41,000 new customers per day in the first half of the year;
  • Nuband registered losses of BRL 95 million in the period, 32% less than what was registered in the first half of 2019.

Nubank, Brazilian biggest fintech and neobank, announced it has BRL 19.9 billion in cash and that the number of customers has more than doubled in one year, to 26 million, as of the end of June. The bank has gained 41,000 new customers per day in the first half of the year.

The company’s results for the first semester of 2020 were disclosed on the weekend and they revealed a loss of BRL 95 million in the period, 32% less than what was registered in the first half of 2019.

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In a blog post, Nubank’s CFO, Marcelo Kopel – who left Itaú Unibanco, Brazil’s largest private lender, for Nubank in January – pointed out that the loss results from a decision of the company, and therefore expected as part of its growth strategy.

Nubank’s financial intermediation revenues more than doubled, to BRL 2.079 billion. “Operating revenues continue to increase at a faster pace than expenses and our operating cash generation remains solid and on an upward trend,” wrote Kopel.

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He said that, like big banks, Nubank also raised provisions for bad loans in the first half of this year, to deal with the developments of the coronavirus pandemic. It was a 16% increase, but the executive does not reveal the total figure. Kopel also points out that defaults were relatively low, at 5.8% of total loans.

Nubank also revealed the pandemic has impacted the volume of credit card purchases. At the end of the semester, however, the volume traded was 54% higher than that of the first months of 2019, informs Valor Econômico.