Nubank posted adjusted net income of US$ 6.6 million (R$ 33.4 million) in 2021, the first annual profit in its history, reversing the loss of US$ 26.8 million (R$ 135.6 million) in 2020, according to a balance sheet released this Tuesday (22).
It is the first financial result reported by fintech after its IPO on the Brazilian and United States Stock Exchange (NYSE) in December 2021.
Considering only the fourth quarter, the digital bank had an adjusted net income of US$ 3.2 million (R$ 16.2 million), compared to a profit of US$ 15.8 million (R$ 80 million) in the same period of the previous year. previous year, a drop of 79.7%.
Nubank’s customer base ended last year at 53.9 million customers, including consumers and SMEs (small and medium-sized companies), a growth of 61.9% compared to December 2020.
Of the total number of customers, 52.4 million are in Brazil, 1.4 million in Mexico and 114 thousand in Colombia.
The SME customer base nearly tripled in 2021, increasing from 500,000 as of December 31, 2020 to 1.4 million as of December 31, 2021.
The fintech’s total revenue reached US$635.9 million (R$ 3.2 billion) in the fourth quarter, which represents an increase of 214% on an annual basis. In 2021, revenue was US$ 1.7 billion (R$ 8.6 billion), up 130.4%.
Average Monthly Revenue per Active Customer (ARPAC) was US$ 5.6 (R$ 28.33), a growth of 71.8% compared to the same period of the previous year.
The default rate over 90 days was 3.5%, compared to 3.6% in December 2020 and 3.4% in September 2021.
“Nu got off to a strong start as a publicly traded company, as was clear from our performance in the fourth quarter. Nu’s stock listing and our NuSócios program also opened the door for the inclusion of millions of Brazilians in the capital”, said David Vélez, founding shareholder and president of Nubank, in the earnings report.
Deposits totaled US$9.7 billion (R$49.1 billion) at the end of 2021, an increase of 73.2% compared to 2020. The expansion of deposits was mainly driven by the growth of the company’s customer base.
The portfolio subject to interest earning reached US$ 2.0 billion (R$ 10.1 billion) last year, an increase of 317.5% compared to 2020.
According to fintech, growth was mainly driven by the expansion of personal loans and, to a lesser extent, the introduction of a number of new financial products for customers, including purchase and boleto financing, as well as account refinancing.
“We continue to increase the monetization of our customer base as we increase average revenue per active customer, as we introduce more products and features and as our customer harvests mature,” said Guilherme Lago, Nubank’s CFO, in a conference call about the 2021 results.
Over the past year, the digital bank has launched products such as “Ultravioleta” (premium) credit cards, secured cards, life insurance and NuInvest’s proprietary funds.
“As a result of the increase in our scale, we are starting to reap the rewards of operating leverage in adjusted net income. This is important data, as it gives us confidence that we are on the right track in our earnings formula,” said the Director.
Operating expenses totaled US$ 315.4 million (R$ 1.6 billion) in the fourth quarter, an increase of 208.9% in the annual comparison.
“The main factor for this absolute increase in operating expenses was the general and administrative expenses account, which grew by 174.8% on an annual basis, mainly reflecting the increase in share-based compensation due to the effect of taxes arising from the appreciation of actions in 2021 as a result of the IPO and the expansion of the number of employees during the period.”
Customer support and operations expenses rose 130.9% “to meet the significant increase in the number of customers and invest in improving the user experience.”
In 2021, operating expenses reached US$903.1 million (R$4.57 billion), a growth of 115.6%.
“In addition to the factors mentioned above, the extraordinary marketing expenses associated with Nu’s IPO contributed to the increase in these expenses.”
After having its shares priced at US$ 9 (R$ 45.54) in the initial public offering on the New York Stock Exchange at the end of last year, Nubank faced a period of high volatility in the following weeks.
On Tuesday, the shares closed the trading session quoted at US$ 8.80 (R$ 44.53), a devaluation of approximately 2.2% since then.
Tech stocks have been under general pressure recently, affected by the prospect of rising US rates, with investors revising projected earnings for companies in the sector.
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