SAO PAULO, June 2, 2026, 13:06 BRT
- Nu Holdings dropped around 6.3% in late-morning trading in New York. BofA lowered its rating on the stock to Underperform.
- Nubank said Rob Livingston, who spent years at Visa, will take over as CFO on July 13. He will replace Guilherme Lago, who is moving into a special adviser role.
- Nu’s latest step comes as investors are watching Brazil’s credit conditions. The company is in a strong growth phase, but credit quality in Brazil is still on the radar.
Nu Holdings stock fell Tuesday after BofA Securities cut its rating on the Nubank parent to Underperform, putting the planned CFO transition on center stage for the well-known Latin American fintech.
NYSE-listed shares slipped 6.3% to $12.17, after hitting a session low of $11.70. That drop came while the SPDR S&P 500 ETF gained 0.2% and the Invesco QQQ Trust added 0.4% around the same point in the day.
Timing is key now that Nu has moved past being seen just as a high-growth digital bank. The market is watching credit discipline, how it uses capital, and whether management stays steady, as Nu steps up lending in Brazil and grows in Mexico, Colombia and cautiously in the U.S.
BofA downgraded Nu to Underperform from Neutral and lowered its price target to $10 from $16. The move follows CFO Guilherme Lago leaving the company. Underperform signals BofA sees the stock trailing its sector or a benchmark during its investment timeframe.
BofA’s Mario Pierry called Lago “one of the company’s most important executives” and said the timing “adds uncertainty.” Pierry flagged tougher Brazil credit conditions, with Nu still expanding abroad. Investing.com UK
Nu named Rob Livingston as its next chief financial officer, according to a June 1 SEC filing. Livingston, who was CFO for North America at Visa, will take over on July 13. The outgoing CFO, Lago, stays on to help with the handover until Aug. 31 and will continue advising Nu’s leadership and audit and risk committee. Nu said its operating model, risk appetite and long-term strategy remain unchanged.
David Velez, Nubank founder and CEO, said Rob Livingston is the “right person” to lead the next phase, adding the group’s priorities are “unchanged.” Livingston said he plans to focus on “optimizing capital allocation.” Investors will look at that in light of Nubank’s loan growth and higher provisions. Business Wire
Lago is leaving after serving as CFO through Nu’s listing and its move into profit. The company quoted him saying it’s the “right moment to step down.” Business Wire
Nu’s first-quarter report handed bulls and bears new material. Revenue broke above $5 billion, net income hit $871 million and return on equity was 29%. Customer count stood at more than 135 million as of March 31.
Credit remains a snag for Nu. The company reported its 15-to-90-day NPL ratio hit 5.0% for the quarter—NPLs are non-performing loans, meaning borrowers are behind on payments. Its credit loss allowances jumped 33% over last quarter. Loans overdue more than 90 days slipped to 6.5%.
The drop was sharper than what was seen in other names. Shares of PagSeguro and StoneCo both fell, dropping 1.1% and 3.3%. Itau Unibanco’s U.S. stock moved the other way, up 1.7%. That gap signals traders saw something tied to just this company, not a general selloff in Brazil banks.
Bears worry the CFO switch might turn out smoother than expected, especially if Livingston’s track record in credit and payments calms nerves about investor messaging. Worst case, though: if delinquencies in Brazil rise or Nu needs to pump more cash than planned into Mexico, Colombia and the U.S., the company could have to pull back on growth or settle for thinner returns.
Communication is the next focus for Nu. The company says a CFO for Brazil will be named “in due course,” which may be more important after Tuesday’s move in the stock. Business Wire
