Nu Holdings reports strong Q4 2024 growth but faces profitability challenges in new markets

Nu Holdings Ltd (NU) reported strong customer and revenue growth in its Q4 2024 earnings call. However, the company faces challenges in achieving profitability in new markets. The CFO clarified that the company will not expand its peaks financing as a percentage of the overall portfolio in the short term. They aim to improve growth metrics in the coming quarters. The company's risk-adjusted net interest margin (NIM) fell by about 70 basis points, mainly due to foreign exchange issues and lower yields in Brazil. The CFO noted a slight improvement in the cost of risk and expects future NIM growth through balance sheet optimization.