JÚLIA MOURASÃO PAULO, SP (FOLHAPRESS) - Amid record levels of default and income impairment in Brazil, Nubank managed to reduce the risk of its portfolio, even increasing loans. The strategy positively surprised the market and led the bank's shares to soar this Friday (14). On the New York Stock Exchange, where the bank is listed, the stock rose 9.33%, to US$15.23.
Nubank avoids defaults, gives more loans and shares rise by more than 9%
JÚLIA MOURASÃO PAULO, SP (FOLHAPRESS) - Amid record levels of default and income impairment in Brazil, Nubank managed to reduce the risk of its portfolio, even increasing loans. The strategy positively surprised the market and led the...
The day before, the institution announced a record profit of US$1.061 billion (R$5.5 billion, at the end of June) in the second quarter of this year. The result is 49% higher than that recorded in the same period last year, and 17% higher than in the first three months of 2026.
- Analysts consulted by Bloomberg estimated a profit of US$991 million.
- During the period, Nubank had a record gain from loans, measured by the net financial margin, which rose from 9.5% to 12.4% in three months, after provisions for losses.
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The day before, the institution announced a record profit of US$1.061 billion (R$5.5 billion, at the end of June) in the second quarter of this year. The result is 49% higher than that recorded in the same period last year, and 17% higher than in the first three months of 2026. Analysts consulted by Bloomberg estimated a profit of US$991 million.
During the period, Nubank had a record gain from loans, measured by the net financial margin, which rose from 9.5% to 12.4% in three months, after provisions for losses. In other words, the bank made a net profit of 12.4% on all the money lent.
According to the institution, the improvement came from expansion in higher risk and higher return segments, contrary to Brazilian peers. While large banks reduce their exposure to unsecured credit, given the rising interest and default scenario, digital banks increase the offer of these more profitable products.
This happens because Nubank's business model supports more losses than its competitors, as it has a lower cost, no physical branches and fewer employees. Thus, Nubank's default rate is, traditionally, higher than that of incumbents.
Loans overdue for more than 90 days from the digital bank accounted for 6.9% of the portfolio in June, an increase of 0.4 percentage points in both the quarterly and annual comparison. Short-term delays, from 15 to 90 days, reduced 0.16 percentage points in the quarter, to 4.8%. In the annual comparison, there was an increase of 0.3 percentage points.
The portfolio, however, increased much more. Nubank's total credit portfolio totaled US$39.4 billion, a jump of 37% in the year and 5% in the quarter. Credit cards accounted for US$26 billion of this total; unsecured loans, $10.3 billion; and secured credit, US$3.1 billion.
The cost of credit, which takes into account how much default the bank expects to take, fell 9% in the quarter to US$ 1.7 billion. Compared to the same period in 2025, there was an increase of 61%.
With more gains above expectations and losses below expectations, the market reacted positively to the numbers.
"In our view, the results reinforce confidence in the pace of revenue growth and should reduce concerns regarding credit quality", say Itaú BBA analysts in a report.
UBS BB, in turn, sees that the better-than-expected results should lead to a revision in the expected profit for 2026 as a whole.
"The second quarter was a clear victory, but the 'war' is not over yet, and Nubank will have to continue proving itself repeatedly. We reiterate our buy recommendation and we believe that results like this help remind us why we have highlighted Nubank as one of the very few winners we see in our sector", said analysts at BTG Pactual.
X-RAY | NUBANKFounded: 2013Net profit in the 2nd quarter: US$ 1.1 billionCustomers (global): 139 millionEmployees: more than 9,500Main competitors: PicPay, Mercado Pago, Bradesco, Santander, Banco do Brasil, Itaú, PagBank, Inter
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