Background on Nubank and its Founders
Nubank, a Brazilian neobank founded by David Vélez and Cristina Junqueira, has recently achieved the remarkable milestone of becoming Brazil’s most valuable company, outranking state-owned petroleum giant Petrobras. This accomplishment highlights the rapid growth and success of this digital financial institution.
Market Capitalization and Regional Comparison
According to data compiled by Bloomberg, Nubank reached a market capitalization of $77.3 billion, surpassing Petrobras’ $74.7 billion valuation. On a regional scale, Nubank is only outranked by Argentina’s Mercado Libre, which boasts a market cap of $115.7 billion.
Promising Future Projections
Experts predict that Nubank’s value will increase by over 50% by 2025, driven by its expanding customer base, high profitability indicators, and recent application to operate as a bank in the United States.
Financial Performance in Q2 2024
In early September, Nubank reported a net profit of $637 million for the second quarter of 2024, marking a 43% increase compared to the same period in 2023. The return on equity (ROE) reached 28% during this period, up from 27% in the first quarter of 2024. Moreover, Nubank maintained a controlled delinquency rate throughout the quarter.
Analyst Revisions and Future Reporting
Following the release of these results, at least five companies revised their recommendations for Nubank: BTG Pactual, Itaú BBA, Citi, Bradesco BBI, and Santander. BTG Pactual and Itaú BBA upgraded their recommendations from “neutral” to “outperform,” equivalent to “buy.” Nubank will release its third-quarter financial statements on November 13.
Key Questions and Answers
- Who is Nubank and who founded it? Nubank is a Brazilian neobank founded by David Vélez and Cristina Junqueira.
- Why is Nubank’s achievement significant? Nubank surpassing Petrobras in market capitalization demonstrates its rapid growth and success as a digital financial institution.
- What are Nubank’s future projections? Experts predict that Nubank’s value will increase by over 50% by 2025, driven by its expanding customer base, high profitability indicators, and potential expansion into the US market.
- What were Nubank’s financial results for Q2 2024? Nubank reported a net profit of $637 million for Q2 2024, marking a 43% increase compared to the same period in 2023. The return on equity (ROE) reached 28% during this period.
- How did analysts respond to Nubank’s financial results? Following the release of these results, at least five companies revised their recommendations for Nubank, with BTG Pactual and Itaú BBA upgrading their recommendations from “neutral” to “outperform.”
