Nu Holdings (NU) Q2 2026 Earnings Report

The call conveyed a strongly positive operational and financial performance: record profitability, broad-based portfolio growth, significant margin expansion, and meaningful progress in AI and product initiatives (Mexico banking license, new Croma offering). Headline results were tempered by seasonal delinquency dynamics, continued provisioning for portfolio growth, deposit optimization (notably in Mexico), and higher quarter operating expenses related to timing and investment. Management positioned most negatives as expected, disciplined, and/or strategic (intentional risk expansion, deposit optimization, one-time timing), while emphasizing sustainability of improved unit economics.

Management's forward guidance emphasized sustaining operating leverage while continuing to invest: they expect the full‑year efficiency ratio to average about 20% (Q2 efficiency 19.5%), see risk‑adjusted NIM to remain in the same region as Q2's 12.4% (Q2 NIM 22.9%, NII $3.7B), and will cap incremental efficiency spending for U.S. entry at ~100 bps; balance‑sheet optimization (deposits $45.3B, loan portfolio $39.4B, LDR ~35%, cost of deposits ~88% of interbank) should bolster margins, and management reiterated disciplined credit provisioning (allowance $6.6B, coverage of 90+ at 244%, 15–90 day delinquency 4.8%, 90+ at 6.9%) and expects Mexico’s year‑end payment rule changes to accelerate digital adoption — all supporting confidence in sustaining profitability after Q2’s $1.1B net income and 33% ROE.