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Nubank has a loss of US$ 65 million in the first half of 2020 due to pandemic

August 24, 2020
Por
Álvaro Campos
Álvaro Campos
Editor assistente at Valor Econômico
📷
linkedin.com
Result was 32% better than the gap recorded in the first half of 2019; fintech already has 26 million customers.
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Fintech Nubank had a loss of R $ 95 million in the first half of this year, 32% less than the gap recorded in the same period last year. In a post on the institution's blog, the financial director, Marcelo Kopel - who left Itaú for Nubank in January this year - points out that the loss is a decision of the company, and therefore expected as part of the growth strategy at this time.

“We chose to invest in the company, in people and in the development of new technologies to continue delivering the best experience to our customers. This model is well known and used by technology companies ”, he says.

Nubank's financial intermediation revenues grew 104%, to R $ 2.079 billion. The company points out that it has R $ 19.9 billion in cash and that the number of customers has more than doubled in one year, to 26 million. The average was 41 thousand new customers won per day.

“Operating revenues continue to increase at a faster pace than expenses and our operating cash generation remains solid and on an upward trend. This allows us to continue with our growth strategy - with a level of capitalization compatible with the development of our business ”, says Kopel on the blog.

He comments that, like the big banks, Nubank also raised provisions for bad debt in the first half of this year, to deal with the developments of the coronavirus pandemic. The growth was 16%, but the executive does not reveal for how much. Kopel also points out that defaults were relatively low, at 5.8%.

Nubank says the pandemic had an impact on the volume of credit card purchases in the initial quarantine period. At the end of the semester, however, the flow of transactions returned to the previous level and the volume of credit card purchases was 54% higher than that recorded in the first six months of 2019.

Las opiniones compartidas y expresadas por los analistas son libres e independientes, y de ellas son responsables sus autores. No reflejan ni comprometen el pensamiento u opinión de Latam Fintech Hub, por lo cual no pueden ser interpretadas como recomendaciones emitidas por la platafomra. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista sobre el ecosistema Fintech.

Fintech Nubank had a loss of R $ 95 million in the first half of this year, 32% less than the gap recorded in the same period last year. In a post on the institution's blog, the financial director, Marcelo Kopel - who left Itaú for Nubank in January this year - points out that the loss is a decision of the company, and therefore expected as part of the growth strategy at this time.

“We chose to invest in the company, in people and in the development of new technologies to continue delivering the best experience to our customers. This model is well known and used by technology companies ”, he says.

Nubank's financial intermediation revenues grew 104%, to R $ 2.079 billion. The company points out that it has R $ 19.9 billion in cash and that the number of customers has more than doubled in one year, to 26 million. The average was 41 thousand new customers won per day.

“Operating revenues continue to increase at a faster pace than expenses and our operating cash generation remains solid and on an upward trend. This allows us to continue with our growth strategy - with a level of capitalization compatible with the development of our business ”, says Kopel on the blog.

He comments that, like the big banks, Nubank also raised provisions for bad debt in the first half of this year, to deal with the developments of the coronavirus pandemic. The growth was 16%, but the executive does not reveal for how much. Kopel also points out that defaults were relatively low, at 5.8%.

Nubank says the pandemic had an impact on the volume of credit card purchases in the initial quarantine period. At the end of the semester, however, the flow of transactions returned to the previous level and the volume of credit card purchases was 54% higher than that recorded in the first six months of 2019.

Las opiniones compartidas y expresadas por los analistas son libres e independientes, y solamente sus autores son responsables de ellas. No reflejan ni comprometen el pensamiento o la opinión del equipo de Latam Fintech Hub y, por lo tanto, no pueden interpretarse como recomendaciones emitidas por la plataforma. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista en el ecosistema Fintech.

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