Brazil’s Nubank just might be the most successful digital bank in the world right now. After a record-breaking third quarter, it followed that up with—what else?—a record-breaking fourth quarter that well exceeded Wall Street’s expectations.
Nubank’s net income in the fourth quarter surged 50% annually to a record US$895 million, and revenue rose 45% to US$4.9 billion, driven by customer growth to 131 million and higher revenue per user. The company reported a 33% ROE, while total credit portfolios grew 40% to US$32.7 billion.
Total deposits reached $41.9 billion in the fourth quarter, up 29% year-on-year, while the cost of funding was 87% of interbank rates. The total credit portfolio expanded 40% year-on-year and 11% sequentially to US$32.7 billion.
In Brazil, Nubank says that it is now the largest private financial institution by number of customers, citing data from the Brazilian Central Bank. In Mexico, Nu serves around 15% of the adult population and is the leading issuer of new credit cards in the country. In Colombia, Nu has surpassed 4 million customers, and with the recent expansion of its credit card portfolio, it is now able to approve nearly three times more applicants than before.
“These results reflect our ability to combine disciplined growth with sustained profitability while continuing to invest in our core markets. As we enter 2026, we remain fully focused on winning in Latin America while building the capabilities that will allow Nubank to evolve into a global digital banking platform over time,” David Vélez, founder and CEO of Nubank, said in a statement.
Looking ahead, we expect Nubank to focus on two-pronged international expansion. The first prong will be Latin America, with Mexico the most important market. The Brazilian online lender’s Mexican subsidiary, Nu Mexico, is fast approaching 14 million customers, which it says represents 14% of the country’s adult population. By several measures, Nu Mexico is growing faster than the original Brazilian digital bank at the equivalent stage of development.
Several factors account for Nubank’s success in Mexico. On the one hand, it serves a large, underbanked population, with roughly 78% of customers living outside Mexico’s largest cities. Nearly 50% of its customers received their first credit card through Nu. Additionally, the launch of Cuenta Nu and Cajitas (savings boxes) allowed the company to quickly gain deposits by offering competitive interest rates. Thirdly, as a cloud-native bank, Nu reduces reliance on, and frustrations with, traditional physical banking infrastructure.
The second – and more challenging – prong of Nu’s international expansion will focus on the U.S. market. While the U.S. is a mature and ultra-competitive banking market, Nu believes there are opportunities in certain regions and states. It previously announced plans to develop strategic U.S. hubs in Miami, the San Francisco Bay Area, Northern Virginia, and the North Carolina Research Triangle. Compared to Colombia, where operations have been ongoing for several years, the U.S. is a more promising market.
Auguring well for Nu is that in late January, it received conditional approval from the Office of the Comptroller of the Currency (OCC) of the United States for the formation of a de novo national bank, Nubank, N.A. Once fully approved, the national bank charter will allow Nu to operate under a comprehensive federal framework, facilitating the launch of deposit accounts, credit cards, lending, and digital asset custody.
Nu’s co-founder Cristina Junqueira will lead the Brazilian firm’s U.S. entity, while Roberto Campos Neto, former president of the Central Bank of Brazil, will serve as chairman of the board of directors.
“While we remain fully focused on our core markets in Brazil, Mexico, and Colombia, this step allows us to build the next generation of banking in the United States,” David Vélez said in a statement.