Nu Holdings: The Opportunity In LATAM Is Huge And Valuation Seems Right


  • Nu is a neobank with a strong presence in Latin American countries, showing 105% annual growth between 2020-2023.
  • The company operates in Brazil, Mexico, and Colombia, with potential for expansion in other countries due to low banking penetration.
  • In each country it arrives, the company ends up becoming a leader, which demonstrates a great product behind.
  • Despite the 45% YTD return, I think the valuation is still attractive.

Close up of many credit cards.

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Investment Thesis

Nu (NYSE:NU) is a neobank that has gained a strong presence in countries such as Brazil, Mexico and Colombia. Although its products are nothing out of the ordinary for a bank, the context of


Credit Cards

Credit Card Delinquency ROE
BBVA 8.9 M 2.9% 26%
Citi Banamex 8.4 M 3.1% 12%
Santander 3.9 M 4.8% 16%
NU Mexico 3.6 M 6.3% 27%
HSBC 2.2 M 3.1% 10%
Banorte 2.1 M 2.8% 28%

Analyst’s Disclosure: I/we have a beneficial long position in the shares of NU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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