This is one of the best Nu analysises Ive seen. The path to $250B seems agressive but the levers are all there. The Roberto Campos Neto hire is absolutly huge, basically like getting Jerome Powell. That regulatory credibility will be critical for the US charter push. What really stands out is the operational efficency story, 28.3% is insane for a bank at this scale. One thing Im wondering about is how sustainable that 17.7% NIM is long term. Brazilian rates wont stay at 10.5% forever, and when they normalize that margin could compres fast. Still, even at lower NIMs the deposit franchise they built is incredibly valuable. The comparision to Ant Financial is spot on.
This is one of the best Nu analysises Ive seen. The path to $250B seems agressive but the levers are all there. The Roberto Campos Neto hire is absolutly huge, basically like getting Jerome Powell. That regulatory credibility will be critical for the US charter push. What really stands out is the operational efficency story, 28.3% is insane for a bank at this scale. One thing Im wondering about is how sustainable that 17.7% NIM is long term. Brazilian rates wont stay at 10.5% forever, and when they normalize that margin could compres fast. Still, even at lower NIMs the deposit franchise they built is incredibly valuable. The comparision to Ant Financial is spot on.
Glad you liked it!
@Matt Low do you think if NuBank expands into Europe they could take on all the digital bank competition from Revolut?
Or you could choose Newtek?
- 5.12x P/E
- 17% revenue CAGR
- Funding mix shifting to deposits away from private capital, so has a faster margin expansion
- counter-cyclical growth
Would love to hear your thoughts