SÃO PAULO, August 28, 2026, 19:15 (EDT). Nu Holdings (NU.N) shares declined 3.9% after the dollar’s rally put pressure on the company’s ability to sustain its $1 billion profit run.
- Nu Holdings dropped 3.9% to $14.30, trading 79.13 million shares.
- The Brazilian real slipped 0.66% to 5.196 against the dollar.
- Net profit for the second quarter hit an all-time high of $1.06 billion.
- Credit expenses continue to be the primary offset to accelerated revenue gains.
Shares of Nu Holdings Ltd. declined by 3.9% on Friday, with a robust dollar challenging the digital bank’s streak of record profits. The NYSE-listed shares finished the session at $14.30.
The action wiped out approximately $2.7 billion in market capitalization. Trading volume totaled 79.13 million shares, narrowly surpassing the usual daily average.
The Brazilian real slipped 0.66% to 5.196 against the dollar after Federal Reserve Chair Kevin Warsh left the door open for further rate hikes. An increase in U.S. yields often draws capital away from emerging markets.
Nu’s earnings are primarily generated in Latin American currencies, while its reporting is in US dollars. As a result, fluctuations in exchange rates can negatively impact translated revenue and reduce equity demand.
| Investor measure | Current figure | Why it matters |
|---|---|---|
| Share price | $14.30, down 3.9% | Market cap decreased by $2.7 billion |
| Q2 gross revenue | $5.88 billion | Annual growth rate reached 39% |
| Q2 net profit | $1.06 billion | Company crossed $1 billion in quarterly profit for the first time |
| Risk-adjusted NIM | 12.4% | Rose from 9.9% |
| Cost of credit | $1.69 billion | Jumped 60% from a year ago |
The core business continues to perform well. Gross revenue for the second quarter climbed 39% to $5.88 billion, and net profit totaled $1.06 billion company results.
The profit surpassed the $967.2 million consensus referenced by Reuters. The risk-adjusted net interest margin increased to 12.4%, up from 9.9% in the same period last year Reuters.
The number of customers climbed to 139 million in Brazil, Mexico and Colombia. Monthly activity remained steady at 83.5%, offering a significant cross-selling opportunity.
Loan credit quality remains uncertain. The proportion of loans over 90 days past due increased by 35 basis points, reaching 6.9% SEC filing.
The cost of credit dropped 9% from the previous quarter to $1.69 billion, but remained 60% above the level seen a year ago.
Analysts overall hold a positive outlook. The consensus target price stands at $18.40 based on 22 ratings, accompanied by an Overweight recommendation.
The target suggests a potential gain of around 29% from Friday’s closing price. Estimates vary significantly, with projections spanning from $10 to $23.
Risks: Ongoing U.S. interest rates, a softer real, and higher late-stage delinquencies may outweigh gains in customer numbers. The share price also hinges on credit growth advancing without a significant rise in provisions.
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