Nubank: Asset Quality Holds Up, But Is NU Pulling the Brakes?

Research evidence excerpt

Nubank: Asset Quality Holds Up, But Is NU Pulling the Brakes?

J P M O R G A N Latin America Equity Research

14 July 2026

Nubank Overweight

NU, NU US

Asset Quality Holds Up, But Is NU Pulling the Brakes? Price (13 Jul 26):$13.67

Latin American Financials

Asset quality remains a key debate for Nubank, and for Brazilian banks more Yuri R Fernandes AC

broadly. May regulatory data brought good news into 2Q26 – it suggested a (1-212) 622-3400

constructive outlook for credit quality, but it also pointed to softer loan growth. yuri.r.fernandes@jpmorgan.com

While a single data point does not establish a trend, we discuss both dynamics J.P. Morgan Securities LLC

below. Guilherme Grespan

(55-11) 4950-3058

guilherme.grespan@jpmorgan.com

• Industry trends are supportive for NPLs into 2Q26, though lagging Banco J.P. Morgan S.A.

historical seasonality. Retail early NPLs (15-90 days) were flat Q-o-Q, which Fernanda Sayao

is encouraging, but weaker than what seasonality would imply (10-year (55-11) 4950-6588

fernanda.sayao@jpmchase.com

average: -20 bps Q-o-Q). Personal loans stood out: early NPLs deteriorated by Banco J.P. Morgan S.A.

10 bps in May versus March, compared with a -30 bps improvement for the Diego Marquez Antonio

10-year average. SCR data also suggests an uneven performance across (52-55) 5339-94899

different groups: S1 banks are deteriorating, while S2 (mostly Nubank) and S3 diego.marquez@jpmorgan.com

(other fintechs) are broadly benign. J.P. Morgan Casa de Bolsa, S.A. de C.V., J.P.

Morgan Grupo Financiero

• Desenrola may be disproportionately benefiting Nubank, and SCR data

supports this. The S2 segment – where Nubank represents ~80% of credit

cards and ~70% of personal loans – has outperformed the industry on NPLs.