Nu Holdings Ltd "Deep Dive on 1Q26 trends: Asset quality; Credit card and..."

研报英文原文证据摘录

Nu Holdings Ltd "Deep Dive on 1Q26 trends: Asset quality; Credit card and..."

Global Research

19 May 2026ab

Nu Holdings Ltd Equities

AmericasDeep Dive on 1Q26 trends: Asset quality;

Credit card and efficiency; Updated Model Banks, Ex-S&L

12-month rating Buy

12m price target US$16.90Mixed asset quality trends in the quarter

Prior : US$18.10

Nu's NPL (over 90 days) was down another 10bps QoQ to 6.5%, while its early NPL

ratio spiked 90bps QoQ to 5.0% (the early NPL ratio increase is in line with the Price (19 May 2026) US$12.24

fintech's historical seasonality). Further, the stage 3 ratio was flattish QoQ at 7.9% RIC: NU.N BBG: NU US

(after reporting a 20bps QoQ contraction in 4Q25), while the stage 3 formation

increased to 3.6% (from 2.9% over total loans in 4Q25) and NPL formation remained Trading data and key metrics

flattish QoQ at 3.2%. Lastly, the cost of risk materially increased to 19.2% from 52-wk range US$18.76-11.90

15.3% in 4Q25 (note that in the past quarter the cost of risk already reported an Market cap. US$59.1b

expansion sequentially) - during the call, management highlighted that they do not Shares o/s 4,833m (COM)

see a deterioration in its asset quality metrics and the cost of risk should gradually Free float 36%

decrease to more normalized levels throughout the year. Avg. daily volume ('000) 9,875

Avg. daily value (m) US$142.2

Is Nu's credit card business maturing? Common s/h equity (12/26E) US$16.0b

The number of active cardholders reached 58 m clients, an increase of 3.8 m clients P/BV (12/26E) 3.7x

in the last 12 months, which is a material deceleration in comparison with the peak Tier 1 ratio 15%

of over 10 m in 2022 (this deceleration is expected considering the number of active

clients reached by Nu).