We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NU Expands Operations: Is Growth Set to Accelerate in Brazil & Mexico?
Read MoreHide Full Article
Key Takeaways
NU agreed to acquire a Brazilian bank license, strengthening its local operations.
Nu Mexico won final bank authorization as it serves 15 million customers and adds about 12,000 daily.
NU ended Q1 2026 with 135.2 million customers, while credit rose 40% and deposits climbed 22%.
Nu Holdings Ltd. (NU - Free Report) , the company behind the Nubank brand, announced an agreement to acquire Banco Porto Real de Investimentos in Brazil to add a new banking license to its local operations. The deal, which remains subject to approval from Brazil’s Central Bank, will help Nubank meet regulatory requirements governing the use of bank-related names by financial institutions.
For Brazilian customers, the company said that nothing will change, as the app, products, services, brand and name will remain the same. The acquired license joins NU’s existing payment, credit, investment, financing and brokerage licenses without requiring additional capital or liquidity requirements. Brazil remains its core market, with more than 115 million customers and a planned investment of R$45 billion in 2026.
Nubank is also expanding its banking operations in Mexico. This month, Nu Mexico received final authorization to operate as a bank and must complete the transition within 30 days. It serves 15 million customers, adds about 12,000 customers daily and plans to invest $4.2 billion in the country through 2030.
The timing is backed by strong operating results. NU ended first-quarter 2026 with 135.2 million customers and generated $5.32 billion in managerial revenues. Its credit portfolio rose 40% year over year to $37.2 billion, while deposits increased 22% to $42.4 billion.
Still, investors should view the Brazil move mainly as a regulatory and strategic step rather than an overnight earnings trigger. The larger opportunity lies in deeper product adoption across Brazil’s addressable pool, which exceeds $100 billion in annual gross profit. NU estimates its share of that pool at roughly 7%, leaving room to expand lending, deposits, investments and services.
How Are SOFI & XYZ Faring?
SoFi Technologies (SOFI - Free Report) is expanding beyond consumer lending by adding small-business loans, home-equity products, AI financial tools, enterprise banking and blockchain-based services. SOFI's partnerships are also bringing more funding onto its loan platform, reducing reliance on balance-sheet lending. Three agreements announced in March 2026 covered more than $3.6 billion in personal loans.
Block (XYZ - Free Report) is widening its reach through Cash App, Square, Afterpay and bitcoin products, linking consumer payments with merchant services and credit. Its tools include installment plans for peer-to-peer transfers, contactless payments and restaurant technology. Across Cash App Borrow, Afterpay and Square Loans, XYZ has provided customers with access to more than $200 billion.
NU’s Price Performance, Valuation, and Estimates
Shares of NU have declined 5.1% in the past three months, underperforming the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
From a valuation standpoint, NU trades at a forward price-to-earnings ratio of 13.87X, well above the industry’s 11.19X. It carries a Value Score of C.
Image Source: Zacks Investment Research
NU’s estimates have declined a cent over the past two months. The Zacks Consensus Estimate for full-year 2026 EPS is pegged at 83 cents.
View the Zacks #1 Rank List
Image: Bigstock
NU Expands Operations: Is Growth Set to Accelerate in Brazil & Mexico?
Key Takeaways
Nu Holdings Ltd. (NU - Free Report) , the company behind the Nubank brand, announced an agreement to acquire Banco Porto Real de Investimentos in Brazil to add a new banking license to its local operations. The deal, which remains subject to approval from Brazil’s Central Bank, will help Nubank meet regulatory requirements governing the use of bank-related names by financial institutions.
For Brazilian customers, the company said that nothing will change, as the app, products, services, brand and name will remain the same. The acquired license joins NU’s existing payment, credit, investment, financing and brokerage licenses without requiring additional capital or liquidity requirements. Brazil remains its core market, with more than 115 million customers and a planned investment of R$45 billion in 2026.
Nubank is also expanding its banking operations in Mexico. This month, Nu Mexico received final authorization to operate as a bank and must complete the transition within 30 days. It serves 15 million customers, adds about 12,000 customers daily and plans to invest $4.2 billion in the country through 2030.
The timing is backed by strong operating results. NU ended first-quarter 2026 with 135.2 million customers and generated $5.32 billion in managerial revenues. Its credit portfolio rose 40% year over year to $37.2 billion, while deposits increased 22% to $42.4 billion.
Still, investors should view the Brazil move mainly as a regulatory and strategic step rather than an overnight earnings trigger. The larger opportunity lies in deeper product adoption across Brazil’s addressable pool, which exceeds $100 billion in annual gross profit. NU estimates its share of that pool at roughly 7%, leaving room to expand lending, deposits, investments and services.
How Are SOFI & XYZ Faring?
SoFi Technologies (SOFI - Free Report) is expanding beyond consumer lending by adding small-business loans, home-equity products, AI financial tools, enterprise banking and blockchain-based services. SOFI's partnerships are also bringing more funding onto its loan platform, reducing reliance on balance-sheet lending. Three agreements announced in March 2026 covered more than $3.6 billion in personal loans.
Block (XYZ - Free Report) is widening its reach through Cash App, Square, Afterpay and bitcoin products, linking consumer payments with merchant services and credit. Its tools include installment plans for peer-to-peer transfers, contactless payments and restaurant technology. Across Cash App Borrow, Afterpay and Square Loans, XYZ has provided customers with access to more than $200 billion.
NU’s Price Performance, Valuation, and Estimates
Shares of NU have declined 5.1% in the past three months, underperforming the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
From a valuation standpoint, NU trades at a forward price-to-earnings ratio of 13.87X, well above the industry’s 11.19X. It carries a Value Score of C.
Image Source: Zacks Investment Research
NU’s estimates have declined a cent over the past two months. The Zacks Consensus Estimate for full-year 2026 EPS is pegged at 83 cents.
Image Source: Zacks Investment Research
NU stock currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.