Nu (NU) 23 Feb 222021 Q4 Earnings call transcript

Good afternoon ladies and gentlemen. Welcome to the Nu Holdings Conference Call to discuss the results for the fourth quarter 2021. A slide presentation is accompanying today's webcast, which is available in the Nu’s Investor Relations website www.investors.nu in English and [Foreign Language] in Portuguese. This conference is being recorded and the replay can also be accessed on the company's IR website. This call is also available in Portuguese. press zoom on to screen room. can side lower enter you the of and access, the the icon right Portuguese To then choose that After original mute select audio. Language]. [Foreign listening-only all that be Please mode. will advised be participants in

may Sandler, Q&A on to Investor at the turn Relations You today floor over now Holdings. I box online Officer any the questions time submit to using would the webcast. like at Mr. Nu Federico

proceed. may You

today. operator. much joining Good afternoon, thank and for call very everyone our you earnings you Thank

If our center Officer; is of Chief our With you seen Chief posted and Guilherme in are our Officer. website. Executive Operating copy have release, a Founder, Chairman; call Marques not earnings relations Vélez, Youssef today's the section me Financial do and Lahrech, our Officer Chief David Lago, results on investor our

including Duggal, important information will Jag financial Reconciliations non-IFRS release. our section Q&A call the for company's press Additionally non-financial be will are Chief financial presenting the Officer be for of by but financial as earnings non-IFRS net the company, defined our joining this the the us are information, call. adjusted metrics available IFRS. IFRS conference information company income. Throughout These of in are to Product the financial measures

should I Finally, not in press the are guarantees forward that results risks Please to remarks, company's we differ statements the uncertainties put on include before begin disclosure materially expectations. remind statements them. reliance that could to These These to the our and undue forward cause release. actual subject and statements are of you would earnings numerous refer company's looking everyone forward-looking therefore from to like not formal today's performance statements. discussion may future

turn Now, the to CEO. Vélez, like I to our Founder and call David would over

you call number investors. speak you first much thank We with for a welcome this over company a our transparent discussing forward to improvements our to This and Well come. today. is to look this a and joining constructive new we you across of first be directly with key Federico, the of time years today, many you of we be may quarter store. call us important opportunity strong as and all all earnings of with metrics. public Many you, Thank and on very dialogue will

like more CFO, Subsequently So you take our performance ecosystem. in through which about bit this values your strategy I QX, talk mission, growth be little would Lahrech, Lago, do our to to to and Nu, our will we’ll Marques COO a questions. including take our and XXXX, our and answer after our Youssef opportunity powerful Guilherme happy time

relentlessly by to mission Nu So about founded Latin so we telling and fight was were our we've let in people been you born me doing complexity since IPO America start XXXX. in with empower to Process. a

for of Brazilian retail our targeting and with raising customers needed the and However, it, accomplish important all to no of public mission quo. It status invest accomplishing IPO the decided but challenging structured both successful itself, dual history our first so in always customers allow have the how to offering, where core of very from to we our our participate values, wanted putting a U.S., according in working that a conventional accomplished billion, How Brazilian our aligned values was prevailing our listing in in was was such these in listing incumbent. the to Brazil offering as of was we irrespective investors to to first our IPO of our the customers mission accomplish all First, allowing do our unnecessary aligned IPO align a We equity wisdom that as certainly is exception. we approximately wanted and IPO? way retail that value and our there, we goals with just a both with in backwards the we Nu. our them We of $X.X country. as

It the was than of to X.X our us decided the which gifting help the investment there. will this and including we honor Second, Directed trust made not in the program, Receipt markets joined of Programs, innovation Depository Brazil. each form the Brazilian financially since DSP, earliest in globally Share More number step to ever the BDR, our one company in piece multiply millions a placed by days million customers largest the of capital did or Brazilians of customers world.

could offered also largest the a ever. IPO Brazil, a customers to investors represented paid mature reservation. the company, shares Brazilian us our over another to enable ahead in not excited number opportunities the our more it beginning These IPO deepen made will The to strengthen chapter where most in our as of importantly We we We retail relationship marked with as a participate be of of XXX,XXX us. and with and customers. expand,

relentlessly continue to accrue their We to to and Nu the value this these long opportunities will to pursue opportunities and potential shareholders its term. will we on assess continue in based

ahead bank will company seen the we of better the Since a We interests app. are and has short continue technology long not a to the happens have services, be better company results. term that needed, a a website long and will as be of in and focused, financial that term beginning to put ourselves or very if term

strategy on Our four differentiating pillars. focused main is

services been our our continuing company and time core three, our language we initially company. to unique We've and were are technology fronts. edge always at a to AI efficiency translate inclusion, in applied We credit capabilities technology, understanding unsecured using gives thought have large build pain these and ability that phenomenal system strong customer and experience. since costs of including America. learning platform the and are our to with simple, to maintain have control a much destiny, a our we're applied competitive relevant AI, that in going build convenient, efficient. we lower and ultimately very experiences a modes market, into to We we machine beginning programming Number user an a competitive advantages backwards spend And low science, proprietary customer more working own mission scale Then competition much the all technologies these Latin areas on we different driven are empowering. two, company. that learning a company have now points. on these the and These and heart. banking finally, America. own obsessed into We customer and first machine mission are be we culture; we more Number us cost financial Latin lot lower And we of to believe in drive to data

nearly Brazil, in I We the have world to this customers banking customers and X million per digital draw attention with your and the XX built about million at in platforms the would are of month. on slide. new chart one Mexico still in growing Colombia of three largest a pace things

of with was But a hard. develop cards. credit with approach, capabilities, to platform worthwhile the it funding. First, state art requires we credit currency It beginning navigated first the Starting local credit pool the proprietary our data of and you believed Nu a is underwriting started path history Since difficult with have is. profit of the company the to launch XXXX, industry take. pandemic. macroeconomic recession and in Consumer plus XX% we environments, credit in Brazil our largest of extremely is where including credit

underwriting generally robust us this systems has of conservative a forced risk approach. develop in All

fast Second, while most experiences is a of deliver. organically, lowest our word allowing customers customer one come scale having the unique of we mouth, of testament the in acquisition industry. costs to to Nu very of the through us customer This

our which bank from over if and there X in two Mexico; customers On part when XX there credit market million or not of that as is consumers grow XXs, or size just among not end ecosystem. small highest, we other plus NPS simply became end we’re our market, And on shows the customers. is one the million highest, global. financial didn’t the have a X model the SMEs. our This card a third, helping million gaining services businesses of players. think and Colombia We Brazil, account we're the the business they think in is Our share in industry and plus the of e-comm are

also Our products our services. building are are are this parts provided third ecosystem insurance, products just partners house, or and e-commerce composed default and personal and as of cards that solutions mobile both such solutions by class product party platforms, of payment we and credit loans loan, secure or for first proprietary

and size sides on We partnerships. two will We engagement. fast, ecosystem moving these marketplace continue expand are to both and we platform our the expect our in that the services initiative grow strategic both to expand solutions, of the as And front. enhanced fast products while

that report year to different the pleased are nine we partners XX verticals. We across with ended over

During players, we large financial [inaudible]. services Michael and the services fourth including non-financial imported quarter Liu,

continue opportunity XXXX results cross-sell low model part Nu Colombia, grow are optimistic credit country expansion, we that time. We monetization are ended including in Nu as in customer we the offering growth party of to our up-sell, to of the vectors highlighting happen of additional million a also believe or at journey. a learned third to effectively high as In products, in where with different There forecast Nu in applicants well this customer issuer products. decade. to time. be NPS this become new is very to our our operating, record And customers over This encouraging, be to base, has In the over coming international leverage our X.X further realized its equality model. and over international country Mexico to as continuing card also cost be proven expansion in and new a geographies. as X milestones for have launch expansion, using already Mexico our to largest From to exportable has are business the significant reaching our We fuel important we is QX, the proprietary we more base. will many most today, geographic in will efficiently both over innings our platform, early expansion monetize of any initiatives, XX. million Nu have this we third

Marques Thank Now, over Guilherme fourth will turn performance more I'd detail. to the review CFO COO our to Youssef the and in of Lago our quarter Lahrech, XXXX in like you. who our do call

simple strong Thank the you, operating and very of value so year we and XXXX fourth a by powerful of We our leveraging delivered set financial did KPIs. generation quarter yet David. In full the formal.

customers our active Brazil, and continuing Mexico of in First, grow base to Colombia.

the RPAC believe as the and expanding increase introduce the cost maintaining all to platforms low system cost continuing mature. to revenue Second, and third, four expense. very of cohorts funding. operating more one has active of customer or financial products by we potential, Nu traditional customer low our expected the by cost, our services; the advantages And cost acquisition low industry. base low cost These while high monetization the We customer to advantages customer and in or cost lowest fields across leverage average deepen are growth of per features delivering as operating deep those eco driven of risk, cost serve, cost our

into the quarterly take business. our results Now, dive deep let's of a

XXXX, fourth and representing During we mostly quarter X XX% year-over-year growth. of organic coming channels customers, added over through almost million the

the at this importantly, come More not expense engagement. of has customer growth

rate activity monthly the in our we of quarter to XX% the XXXX while the to of fourth our contrary, quarter added base all the in from XX customers this million period. XXXX, fourth grew XX% in On over

social numbers. We are in of just collecting not security the business

business becoming We SMEs. consumers the the customers, of banking are our of in both relationship primary and

revenue and the of As with expansion our three our powerful. effect engagement you base, or ecosystem in in customer higher this the has It in base, see the has monetization products active reflected per on our average customer side, the the features can from driven of customer compounding proven RPAC. of very charts as more

expansion. quarter the to we fourth continue RPAC During achieve

but per per $XX exceeded $X.X our at cohorts the already the reached month RPAC more mature in average Our RPAC period, of month.

ecosystem. trend The this us mature new grow by and to expect We rates. $XXX customers, growth enables continue of products year-over-year tipple higher at as revenues transaction XXX% strong and we to the more our to more FX In reached by customer and active our to RPAC continue on driven in revenue combination basis, our cohorts quarter volumes XXXX, neutral digit of fourth million, add features mainly an earning in increasing the portfolio. customers, interest and increase

track to and a on purchase the move key understand Let's progress time. cards volume, our over to business KPI of

the billion, an purchase result During in $XX almost the neutral cohorts evolution cards, fourth continued quarter credit ultraviolet cards volumes year-over-year that of quarter cards. purchase This a usage growing portfolio, of base, premium and the product XXX% strong of in is reached basis. our during maturation our engaged user a secured and card, across are FX includes increase on prepaid growing XXXX, volume the

our driver have Let's a credit our portfolio, revenue at of another look key growth.

During during FX post on above based. and core, Xx personal December card grew loan loans. both less the December outpaced by market to estimate continue personal by an would and than to market our XXXX from approximately are we still months in our portfolio quarter-over-quarter X% personal point credit consumer on portfolio both neutral share market basis. very expanded In XX% Also we to quarter, X% rates the days loan in in But quarter-over-quarter year-over-year, of estimate three in XXXX. finance receivables loans. Xx. FX the fourth portfolio We the and year-over-year, fourth quarter products, in early personal credit ended the growth we out cards an XXXX, terms XX% by our December of that Brazil in neutral in We I grew XXXX our XX% like

our net which continues attract Now, a very at let's strong base, deposits inflows. look take to

is to having we One local securitization. to model our at business operations of as is believe deposits superior such of our of and the to consumer local sources scale, key funding our retail competitive currency funding with other rates at business key fund deposits. funding We pillars retail credit that that currency wholesale primarily continue or

continue based pace. very grow branch franchise in we to banking, As to this shifting digital SMEs, people to from based our at in banking witness trend continue strong deposits steady

funding growth quarter of the than that of rate fourth are on of in deposits XX% free risk $XX rate FX with average billion, cost As almost year-over-year neutral is the basis, lower our an of which XXXX, our an CDI. Brazilian that

growth our cover given Additionally, portfolio, comfortably interest can deposit our in we deposits. retail earning the franchise, with

operating let's of serve of over is RPAC at XXXX track the gives base. outpacing operating a in that in appreciate, key to we decreased of model. are on from full the Moving million our active respectively. we the as guidepost on, continue gain we fourth profits per metric customer; we business right a confidence to In look serve our cost year-on-year to per and strong the pursuit to XX% operational $XXX a our pillar million cost see leverage that It us of active record posted our This efficiency year take resulting as and customer the XXXX gross leverage customer. of has $XXX quarter the increasing

this result the interest and the periods the under While gross lower for as of full that in stable XXXX, loads very profit of saw year, portfolio recognition remain loss provisioning in a front provisioning margins margins in methodology gross we IFRS. loan of our earning growth quarters last strong the our

adjusted you this a to net in GAAP quickly through better income, recurring adjustments on we arrive to net me income of made of to walk business. order Moving profitability our the the at metric, you give to sense let

the as we as in adjusted to net profit related compensation income to the our IPO, to for applicable based tax well allocated As expenses has share sites. shareholders, define, our adjusted effects

important the as confidence of is a as it right of reap we are data earnings leverage result beginning gives This adjusted formula. an we us As to income you our the based. can on that on with and see trajectory net point scale, the growing operating our are benefits an

income to please between and net refer our reconciliation the income, presentation. of For net appendix adjusted our this a detailed

Now, Youssef, I’d turn over you lending. the like to will to who Chief through walk call our our Operating and Officer, credit

Guilherme. you, Thank

me strong. Let adjusted still credit of few key performance credit the quality indicators lending. that overall of asset remains normalizing XXXX, and through expected between but mix you credit health below levels portfolio know QX walk along for our cards delinquencies pre-COVID track lines, and In portfolio. when With a

and pre-COVID for credit gradually to We expect reach levels normalization for both cards and the lending. continue

a writing that every approximately able of We in are expectations product resilient based at as to top are be then we that, segment. doubling the cohorts on resulting risk to and originate baseline, underwriting these loss that risk worsening requiring loan that withstand depending the on on and

recognized I granted, the credit provisions our methodology mismatch that card timing associated before when loss a and intentional is a go with loan an any case has has finance would as recap be and loan loan credit revenues growth results of is Now loan high with further, is revenue IFRS to as provisioning like the I loss Per or This costs. to that business accrued. on impact consumer ECL the loss rates, X, personal before in businesses. even between loan expected

provisions growth this periods the our and material normalize, For as gross during cohorts. is, profit rates reason, profit as earlier, gross higher over vertical negatively mentioned the of gross higher margins this profit the we towards And impacts to book And rate expected Lago those time are. are growth. have the of growth converge to high margins

the We percentage and our revenues. concept minus on margins RAM basic a evolution our this or define expressed the slide of adjusted personal funding risk charts of from credit revenues, cost of risk risk for actual and margin card show average the adjusted minus loan costs cohorts. simply Moving experience, to as as

expands with impacted six for a the As more or I or Then loss and a both converges you of months risk recognition revenue less. about around moment products, loan a by earlier adjusted payback XX% non-cash quickly negatively to can spoke as ago. provisions that months, period accrue, is margin upfront in level is accounting appreciate RAM begins towards the

as which our to ourselves plays call terms We to duration, back on shared to Founder tend strengths. underwriting his deliberate turn of Vélez, and Having me shorter more products for in quality, that remarks. and credit the prefer are let our products and We we credit David asset intensive, versus very are have now manufacture data distribute. perspectives these CEO concluding this

Thank you, Youssef.

region trends delivered to accelerating that our our strategic IPO significant our great XXXX have has been beyond. remain across given strong financial metrics and disciplined financial our progress products all advance another our ever we’d look that on as a and your you remains to next has business. Thank accelerating, as to digital milestones growing as the in immigration keeping believe effectively footing you. We against We questions. and the secular now, strong our and inclusion to as improving market always execution year and and are pursue updated towards And of like quarter. us our such we growth, We focused priorities continuing on forward take successful

and investors We start [Operator Q&A for will the Instructions]. now analysts. section

Thank operator. you,

The from the first [inaudible]. question is line? Can please open coming you

me? hear Can can Hi, good Hi, evening! okay. you me you hear

Yes sir.

color some Any can Okay, or question revenue sorry, this question. you how been the you. I revenue presentation between client for the and is you a good growing pace. and having guess the give computer. revenue risk and client. that like the clients? fees my continue fee mix your portfolio evolve great, how thank benefit to grow continue And grow you. my how able with income grow much you But that loan my the good take in thank you guidance portfolio. loan grow behind also the Thank any I of I’m per per would macro portfolio. you to of color Clear of also Saw come trouble Do at some have the on know, call with per from can and the expect the that, quarter. the your was year, healthy given in evolution loan to ability particularly terms loan to to on

one questions. customer, it's closely. Lago. It's This if for active we so [ph]! are Tito certainly you revenue evolution per a Hi monitoring something and great is much of average your the that Thank very

mature the about RPAC if accounts customers take earnings per loans, presentation, the Customer active or more to our see more If has all of in per customers and already now at the Average per that Per but per see cohorts, about up now going XX it across fact credit active months. %XX you $X.X you slide there products; achieved last importantly now per average our cohorts three a go customers coming Revenue active customer, the RPAC personal will at already And bank RPAC evolution look you $X.X operating of per quarter, at from core Active you is who month $XX of above the they’re have month. card, are and over can

that two think going So a go forward we to continue as the now and RPAC over things. will of up result course XXXX, of

is maturation First, that is fully many the something that necessarily it's investors of by appreciated the not cohorts.

as pursue As believe credit non-credit kick can credit you more of more key expect And In the know there, features, increase a the core purchase will those very we the secondly cohorts see products, personal season, in engagement play the now as both role will that will we continue new strong, launch we primary to in volumes it's RPAC. their we you revenue launch we customers. customers XXXX banking mature, the contribution the usage sell, loans as products, and our cohorts average to that products. products, and in other start and more the we aggressively and of to per card, with the actually do this a well new cross products increased continue to relationship become and then growth as that active as but we we

the guidance forward. and going for providing XXXX however not on RPAC are levels We

that be Maybe months Is be that I the very the $XX in cohort so presentation, the RPAC years you pointed and that time a but may reach the RPAC. that to on shorten fair XX showing of maybe to from guess the to any to to, can can $XX continue cohorts timing you, get four three that assume the you as to kind a don't follow-up you the to time or and X like I color slight grow client Thank That’s bit on seemed that think faster. per to of looked all getting amount Lago. $XX past take there, right, one period that about Great! newer get to XX know, to helpful. with – to a

I know great a Yeah, it's [ph]. Tito question

a Sorry accounts cards. the somehow and Tito the it’s great because cohorts, it credit across earlier question unfair courts, comparison think is I no-bank we only and had

So we had a portfolio. product much more limited

more and as we launch the XX, we products launch crosssell of you more the we RPAC up. customers LTV as those right features see middle As the as go our more products, potential slide, can of on the off and in

the customers to So be cohorts. able the more Nu products to of is yes, than that, think cohorts assume mature earlier Nu it I earlier faster with reasonable customers the will the from

results. strong Okay, on the helpful congratulations great, you That’s and Lago. thank

Thank you, Tito.

open line from The you, Echevarria coming question next the Can is you Tito. from Thank please? Jorge Stanley. Morgan

Its Kuri your everyone. outlook afternoon this Jore numbers. have the Hi! great on question Good revenue for Hi! a Congrats I on year. from Morgan Stanley.

on per was You was active XX% net your customer well around and the anticipating. quarter above consensus XX% beat by market expectations vis-a-vis market be the were what adds it revenue around this revenues

better. are potential are the the consensus $X.X meaning current business risks you on vis-a-vis to about upside parts think you we the think doing of your that XXXX, billion. do feel revenue is How what around Where number? as net number, do So

number what can to of incredibly Thank at? the some That You outpace the looking that? on other actually be are prove are optimistic. that things think risks you think be And do may where hand, you. that are you number, closely helpful. What would the you to

is in not of market. point Jore, much the that you the unfortunately Thank in the to We very at just company We appreciate this for Lago. costs so we guidance. do believe favor outweigh your Look, benefits time. much question. its financial arguments this guidance for provide the

Mexico believe outside in issuer become order as be quarter. Brazil. We short year we focus and management both the we will that be long to over and team success. we the credit focused December we’re And of and term have cards are in encouraging and the provided the us. Mexico now we maintain signs make, needed to was first strides will of have you strong for culture that strides good and good We more deals. launched So seen, XXXX not of in expect term that, fourth have, of very non-credit may have have customers going now in to ahead do we that we we reason across term. going put in the think Nu if the XXXX. Having long importantly results. many as we and and after that to the having been interest launched X.X we a We million I are Mexico make already long operations said think – Colombia, very our The Mexico have the to country that's why we the products, term in largest of will guidance company of new continue

we able And consensus customers. and beat to not So we unfortunately or products, continue can expanding by will with will we you market hope expanding I much. number of will how and to on think be be the we understand much whether will I we will dues Jore. guidance will provide not expand be you

could to the it's sources do understand are of risks you think to No, that year. top pretty how I management focus, what to about closely maybe and just potential be is the do you you. guess you XXXX everyone talk mean, three the evident number? at, I the What looking Thank But, I Can during out following to on I upside. Lago, the play say revenue expect closely those risks

that have, if kind move mature. I we risks think in see think our strongly needle the I I we to cohorts be more continue will it on is Jore, the have what to XXXX, will

to continue, Xx per the over We going believe have that we maturing will Xx and go this cohorts customers have risk purchase seen seen it's a know volume I forward. but active We the time. up,

that risk and we and that that closely the exist. inevitable, watching portfolio The of will hyper the on focused, are very quality second be deterioration the is asset monitoring are we is we expectations blind to macroeconomic not

short today the hyper the have, be will plan very much expansion and watching be very will we term favorable to but focus market we that As a a this as especially we are start carefully on share, market to to with lower of prove that delinquency we with optimistic indicators.

as Hi Jore! David here well.

here up Lago. on following Just

is expectations as signs we we said, clearly a territory picked That feel for close look any you start very Lago are I we know potential the type says, seeing taking. and we're the being for products credit growth into macro – that risk and sort sorry, of that we with a some. adjust us any think will is there macro taking that we're if of comfortable uncertainty

good equity, and on Okay, these are are on very nature, very us return visibility very They products high that high intensive. two very give in duration term very capital. data short are return

opportunities with of historically, environment tend a for turn open untouched capitalized and be products does take for well excel. also charge effectively IPO, same Brazil since the that is our of if would gives duration them and us opportunity we've you this all any which only are has are profitability expect see environment buffer where we worst, up react so products. quickly a that cushion charge become year in even entering a the what lot products customer seen to the should these to seen our on to only extremely At we an the less interest effectively the of history we've macro So we’ve the Unfortunately the that time, of on seen. if very XXXX. and number there to recession Customer to more that started in sensitive that we our know Customers focused products less them fees, see. and capital

with open more that series the differentiation that for a combination can so us. And opportunities have up capital of or we

the over might risks of sides we aware the net-net trade, the we that couple kind but facing some with both really executing. next observing ultimately of strategy So we being of the are comfortable of are of very months, that very be

congrats you, and Thank Much Lago. David and appreciated again!

you for questions. Thank the Jore

Batista Next line Thiago open you Can coming from question is UBS. the from please?

me? can hear you Sorry,

we you. Thiago, hear Yes can

Actually, [ph] the from Citi Friedman appreciate opportunity. and I

of When are a bit illusion XX% because of that look mentioned. gross quarter-to-quarter, of it expanded methodology digits you you revenues by we you exactly is just using. expected loss my the related question So into to low what more than single this know profit,

but So to are comfortable with that understand you I like excess with liquidity. the how your we comfortable know strategy, are you also I understand

well is than have this $X think $X at billion of you I earnings -- but quality deposits billion moment more of explained, $XX Asset assets. and interest billion

margins you at ability this expanding capitalize on to to need extent, aggressive be this our difference. some to able be to also Thank continue could and bit So jeopardized a more you.

so you for question. Thank much your

it’s think I Latin in believe for do underwriting two play need consumer a America to you provocation great that things. you in credit and we

need structure do funding underwriting at credit funding platform, rates currency today. state-of-the-art have competitive a comfortable mentioned, have and to to now as only local you think not access but we you fairly I need You

very Our is simple. balance sheet

now of flexibility. have have assets, billion we $X lots $X and about of earning deposits of billion We therefore about support basically to interest

is ratios Our we of that find. loan-to-deposit most can conservative one the

our or the for with of local expect have very were our in is because majority pay for the already X% But general our will earning are credit And of the structure favorable forward, portfolio Brazil of in deposits card alluding cost for for of Going which started currency capital own the majority We do those do credit that consumers. deposits the working and deposits. fund capital deposits. negative I think we you it deposits. to asset we And have CDI; we pay we the of think to thirdly interest those also a issuer, for also look, I SME's, XXX% CDI, scenario. portfolio the working has

So the as we flows no grow to we It credit card. increases expect. which

the quarters price and coming you remain us know lowest funding proposition to the and the watching we we how to we customers forward, for as of to do have value and the to the expect years. in can we percentages deposits possible and be will pursue carefully our that Going cost

perfect. that's No,

to also know want the do with your you profit? in of accelerating, to profit you. see think When this the know going Thank XX, are you you a using more revenue expansion terms in point how effects about profit, allow you alluded to funding. follow-up, just If the of see and mention you revenues you of cost versus as just strategy we of gross you a slide I on aligned know and in number reference the IFRS gross

It's a question. great

you see attention XX I turning highlighted, adjusted – of your think know take slide Youssef that XX% a our converge plus maturity has as and margin. I at can towards there, even advantage products risk to

interest much So towards assets we margin as will the stabilizes. gross rate expect a our growth profit earning that now converge in higher we

As XX% converge growth margins, Once of loss on interest to gross though converged expected see the at provisioning earning long credit even putting time intentional should pressure have an risk we cohorts mismatch. no a towards it our plus assets, profit in is adjusted as expect all margin. high they we the have maturity,

is it's going probably, between a question growth adjusted post as rates, are XX% going to margin. book your the to when XX% It – back the we’re seen and a or the start risk the to may function achieve also front much we where So you ratio lower to book. its of have closer is the

the and more continue as relative the back get. requirements, grow, has, will gross gain margin book to the we the relevance, profit to the should Even higher continue relevance back book

perfect. That's

promoter deciding share we, But like [ph], and taking that customers. context in only which have Brazil of, the pool the we largest into as adult you’re think their by is entire additional have way customers we when our seeing population have it profit in loans bit of market a lending now go a so much Jorg worth see to consistently over And like customers, in net on product we highest and sector X% something I us in XX% getting from even little portfolio, should a that share now refinancing Nu Brazil. something and of perspective. be proportionally with conclude we one us gaining time of market period that talk to existing higher to that the customer to consumer market score the we share, And similar we in more of a the it’s it’s our able banking are bit the context, the would kind a take of Bank

have, – of of is base size So amount say of base a that – leading indicator trajectory to future and a growth gains the projection, really very, that of customer products. bit to these a a that in the so is customer share some the in significant by the of we financial we is the of growth early stages in in market there leading there some and very is multiplied of all growth ahead, this are the NPS products

Thank That you makes explanations. the sense. much for very

Thank Thiago question the you, Batista, open you next please? Can The is coming Jorg. from UBS. line

Yes, Thanks I hi follow-ups. guys! opportunity. for two the have

that look first new believe for old I the so about the clients, the as for you no, of recent past. in same potation the are not Cohorts most or Bank. When they good part is the clients one the clients The the of do Nu have

the quality. new the also So ones. is asset understand same old clients, second of if I to second follow-up or want they about And potation the have question the the

its had should years or return this well return have happen still a is ratio year to a of to is level. to no, even that this below this the this you this Nu couple take level. to You pre-COVID mentioned should the level. sense expecting peak if Do of

Thiago, your question. thanks for so much

and the Let quality me Youssef the invite that that then maybe posed. address address I'll you revenue alluded asset question to potential you

as So the our look to be look, especially customer you the if at slide in has older proven marginal ones, our XX. new profitable customer, not as

we You basically we the launch see that not curves you as have features, cohorts. curves and will the more then at been the to able, you are as better, earlier products if for more of cohorts even that older growth – launch growth can have par

much we the proposition before, products of mentioned now can I to comprehensive value the it's customers, and As faster more only but offer the duration not because customers. features much a also of more because have and we

incumbent potential, In terms $XX overall about banks in a if they customers take look at of Brazil, are active per month. ARPAC you $XX per of the to no

at customers at are per We more about $X already are still XX. month. per now mature cohorts The active

in party to as we that gap proprietary products we both So still believe as have close, well gigantic a third products.

– strides and what about as made new customers, but into ones? basically Your marginal profitable Are younger they I we as as customers? the evolved. question Brazil we good And we no middle the the in have the promising older are very also to, think alludes as class

the so as average strides making We are the The you of to Brazil and the that proven lines far as better the can show now are two balance kind good which we demographics good reaching unbanked. into converging strides toward into even see as those the deeper of cohort, now up has promising are very cohort older market, into of well than things ones. in be very

some Youssef, quality Thiago shed posed? would asset on question able the light be the to also you

happy be Thiago. to I'd Yeah,

quality the the asset outlook. and to trajectory respect with and So there

years to know two the you at said credit I And last low environment the few extraordinarily pandemic, over we in if started as as NPL's, what's they we've happened you So to back levels. back before, of delinquencies entered expect pre-COVID but look to the normalize last levels normalize quarters. seen the in we

all our take expected. In would was anything, if been was expectation that fact, normalization slower expectation that than along, our it's and normalizing place, we

thought six would maybe know this You we XX take months. process to

normalize that's expect XX in terms to continue forward, pre-pandemic that pandemic but so we know scenario. of going below levels are to our into still baseline and the slightly months the we delinquencies, You

we That's as downturn. limit a gives that level of underwriting strong so philosophy, said of I've we as of resilience. it grants, every us the levels credit go every as do before, and part result to, risk expect every underwrite credit that Now, grant a card through credit loan really our we to

portfolio. feel with are our aggregate able we that of in you risk positive to Our resilience and take cohorts a in still have inherent comfortable NPV and know very the on of level doubling so be roughly we

and Youssef Lago. Thanks clear. Very

Thank you.

is Thank coming from Darrin question Next Wolfe. you. Peller,

When it's of And Anything products. acquisition geographic see seeing, that in the as to in be guys. Maybe underscore pandemic. grow of somewhat customer to companies underlying terms growth of user pull seen to other costs Thanks. industry obviously Thanks We've we main should that continues your it we're geographies strength seem – look just the and expect lot leading? our the into going you a at to product. that look lot digital walk strong of new forces able forward can still whether are you CAC the been guys! or new I to change to Hey just strong. driving then that those a numbers, that we've through about

also the Thanks for you. question. thank Sure,

segments, already. has would to would that among solutions. say were we that would So that's had is flock fact Pandemic significant today. segments no those we accelerated very I people using begin and of main where basing stages options. become, are they we focus has and think away are the years the category these channels say other in early consider digital adoption than were more lot solutions, you that we somewhere very adopters, adopters that by before and old starting market the they to the any where adopters digital different ’XX, such banking banking has curve, a to gone as the and the traditional leader category really were in early leader, really millennials eager that to addressing ’XX really technology we solution tend through other branches a adopters several you segments from much XXXX, that become around go on offline say branches. to adopt closed, early and market are were were digital about Brazilians probably kind digital much This option were us historically grabbing not skeptic early to bit percentage start any since certain those into all I the heavy the to of adoption the breaking Since from other those very people a of start And I XX early much embraced

and accelerating, beyond gets our reason to ability So our segments why launch our accelerated products. by the that's population, their we started core now started expanding core this actually we mainly millennial and seeing seeing growth new

a credit So card, a then and one account. three product, launched we had we savings years ago

Now insurance, account, a go with small to we market credit personal place, market both for loan, savings card, and businesses. a consumers

lot banking much solutions. more painful value robust and saying, it’s helps Whenever complete, us proposition to have these you loan, says, personal still I'm launching are a the Bank. the that product, the go customers I'll that waiting, different We a very no is to and you So get when we’re that from product. see that launching when following Nu through are you know following skeptical you launch

they certain of lower. to lower in credit interfaces card experience customer are and very combination trying experience lending, growth more are cost, So very to customers and great costs very and segments I'd combined say They a almost Why those it's equation. and better the lower ultimately coming. use, coming? has a a which easy but in our fully combination reinforces at we Better banking coming rates simple of with no fully especially embracing is interest simple lower in personal also products, digital of are service, fees the are digital forces cost, lower products, and kind market, ability because provide the bring for adoption, to and

more stay So when you with to actually like have effectively that you wait no brainer it the big bidding solution. better becomes go and makes an you big makes would you branch charges Why solution. and – your the wait to almost company a a

we really the all increased augmented the just accelerate across next and that different trend to magnet So – over demographics by few we have product ahead this be expect even years. the and roadmap

that's can you also a to think customer great that. on source be follow-up just for partnerships. one is I The know quick appreciate acquisition costs been you guys stable, and I verticals incremental such Thanks company again offerings job! or Nice done and different there before? on like guys. probably customers. as Is insurance you've add the and trading incremental progress partnerships attract

Sure, yeah.

towards so is of already But via over market are early. we customers from app. businesses it’s very our where QX, the what partners the to that products have we a different as So mentioned different we e-commerce, their our that number place, really of launched we call this XX end offering

tests and We for have such such secured that that. equity lending products as like offer and secure equity, credit auto lending home

We have announcing. number a of different that we're partnerships

the a invite partnerships. pollute about that want be XX different way and much for third, easier and simplicity the right customers our that and and end see we very second, XX,XXX do the customer to offer SKU’s. becomes of do architecture XX, that type Now experience customers and the deliberate we actually We we to We technology products it want XX, the product very with launch this of our projects want up The offers think the our it in to to not have fly opportunities. maintains maintain more platform, entire the careful taking that proposition. their acquisition we higher our of do developed and the type the by to solutions time wheel better we to bring costs that able to huge have use is customer we're that so customers, it opportunity, right. have, they the ultimately accelerate scale we lower more and a and come, But friends the they because we're reinforce and increase to the customers

about excited marketplace, moves. the early marketplace very we’re So

Thank you, guys.

Thank you, Darrin.

line the from open Neha is please? you coming Can question HSBC. from Next Agarwala

Can Federico! Hi they me? hear

Neha. can you They hear

this through you to risk? on right book finance quality The the quality. the X.X%, this go it that XX%. XXXX up the cost for to good was question Very see for quarter! NPA does now, has mean is the results. on during asset trends your is if but consumer say expect to the been It's team showed of X.X% ratio about in year for going Congratulations levels you’ve asset about presentation. inaugural of for My and cost good that X.X% of what risk quarters pre-COVID The year, more

XX% think ECM sense? level Thank would go to sense for XXXX you you or in to model Given requires up make would make that cost do you. provision it risk say XX% the what of up to the front, to

Youssef. the question. Hi much This you Neha! Thank for very is

NPLs earlier, cost financial we up, play. don't pre-COVID One first metric, provide out have you think continued trends the if playing the two been as Lago were normalization things at say there's I to this would impact, main we and play So that levels. guidance but risk, to of that and mentioned expect around to about out qualitatively is

we pressure expect risk. rightly higher to it that put you continue As you upward NPLs to slightly translate and to pointed coverage know cost out, slightly and on ratios higher of

The other is assets one book. the we of mix credit that

our than risk portfolio also also relatively NPL comes growing like levels, margins lending that upward portfolio and put it credit been pressure card risk. higher we so both, expect and Our with things on to has and higher faster cost

that expect. be main positively think know those we forward drivers you would So two I going the

growing inclined your loan faster Thank you provide I focusing business. of he similar numbers, would book Thank loan to If side should than we interest mean the saw I expect, especially maybe the towards know platform, don't you the but side And no more to book loan business during the book increase loan in especially I the preference any I fee expect in be in given but book? for building should mean growth, level today, rather and environment this the of or much. of growth, macro Do regarding more it XXXX? you year. out specific so much. what you the could growth it down on follow-up guidance loan so of income terms your your personal what slow should be personal or in be similar nominal on

Yeah, great questions.

you comfortable slides a with would you feel because earlier like as that you baseline scenario, a are continued we our paybacks, normalization and they this short under lending know and pre-COVID a mentioned very which both at you duration. of for come know credit those margins short built in So outlook scenario, levels, very of on cards and pace, you lot high growth that's very saw to into our cohorts. levels, continue healthy as base we I very there's resilience know our is This know with grow

deteriorate, to pull short months resilience loans, act faster, our to and collections take actions feel that are and that back very restorations or around duration feel we if etc. good around our to ability should needed six other and to seven materially we building any intensity, know around fast for to You conditions comfortable so detect with about act pricing,

should we're act our So baseline. to prepared from things deviate

much. Thank you so

Elliott from you, Thank coming is Autonomous. Geoffrey The next question Neha. from

TPP is taking in is revenues strength Thanks Hello! of? persist question. strong spending quarter else in the you seasonal one being impact very seasonality impacts a quarter the The part card us strong, always much kind flavor aware for the Can a or of that an the it in then fourth fourth give should versus being P&L and we of much how likewise anywhere expenses in there of numbers? for of Brazil. How any much in be and

Sure Geoff. a great question. for one. Thanks so It's much your

of in at slide see going little the can but volume, the you you growth of purchase been on our overall where of of XX, terms terms seasonality take customers, of purchase a has take purchase of and in forward. year terms weighted strong volume. a of overall volatility a cards look in quarter has each you if think evolution number about the the our bit volumes out of can historically I quarter terms And a company in the fourth yes, look growth,

a expect of XXXX terms is that don't also seen the in of different is we one cost seasonality It will have case year. we the we behavior is in throughout have than XXXX. that in that risk there materially So that some

that expect trend in the also a see as will relatively follow XXXX similar Brazilian market. We we

how the you cost does Could Okay. us that risk, play on seasonality and of through? remind

we season historically and we higher quite Yeah, also see in lower honestly see that each something world. the first we usually trend and can are forward. quarter is that's you in see I delinquency that of that in fourth in quarter think the That that year; Brazil, to the going see are elsewhere normal expecting

Thank you.

Geoff. Thanks

you, Geoff. Thank

Next question from Bradesco. from coming is Gustavo Schroden

line. the open can You

Yeah. Hello! hear Can you me?

you. Yes, hear we can

the for especially higher thanks was from you. presentation. cash interest a thank understand see could Thank taking due the income, the quarter. how just my this the gains, because stronger your no from the It's very we simple for like position you IPO proceeds I in question to would trading trading and impact gains question. were to Yeah,

we consumption the terms in these what you. of expect to just how add, of like would I proceeds. Thank should impact and Just was

is towards proceeds IPOs very, actually the mid-December for the happened the the of very now the the of and first fourth so of This Gustavo! the January. Hi small. Well been week much settlement The Green your transaction quarter Lago. in has IPO Thanks question. revenues contribution basically in to XXXX XXXX of or of Shoe financial the happened and exercise of and our

been there proceeds. has of little impacts So

In terms it's great of for clarify. trading gains, to us a opportunity

on bonds, losses they investments very more that the policies The If earn management earn you statement on policy and that and we we very credit we our we loans in conservative things: The the have interest gains revenues, at large of and take treasury interest but we a on interest and look that describes so as instruments, nothing have to treasury the earn than cards, are our continue conservative financial a our cash interest very compounded it expect is evolution financial going on personal basically three to this by cash. forward.

the very general use our international would on I I’m the of this and are Mexico And and was capital general. do say to use that growth third purposes not mistaken. in the Your and of to working expand expect fuel question bullish on if two we in Colombia, IPO countries. we those for But corporate primarily proceeds potential of

the look take and just for of combined population to those about the Brazil, Mexico have that sheer Brazil. and is almost countries size And Colombia combined, Mexico now you of Colombia XX% at population a three of size account If GDP XX% Brazil. same the and of a

active being about of Brazil population of adult of the have Nu. XX% customers We

of than less Nu. customers the being We and X% combined Mexico of have population of Colombia

a countries. proceeds be will of IPO industrial directed towards our think expansion portion in the international relevant I So

that the very other have income. the just high talk seen good, the re-pricing to very understand, Okay, like has that interest has some clear they cycle reprise. how interest and was And when indeed follow-up strong banks, when are I'd see process for like this Bank on Lago. I competition listen to given you a there’s compare very Nu how been saying It you how reprise? the less to I'd and and interest mean it able I rate to hikes, rates? you do difficult been that, more to

classes we personal what faster seen many in have which You have seen has other classes. question great repricing know asset we in loans, we a the and historically in than been play; credit and asset it's card Gustavo that

in primarily Nu margin, we products accordingly. always and fast general. we and have interest see over been kind net pricing, and of in net expect to the fast, not interest the relatively Bank even once to swift course card largely will you seen will competitive reprise at Brazilian able market the expand that respect that but We and that been with terms very loans, have by loans Central fact have personal very we reprising personal we however, only has defend of reposition of and the six the and but in out been In be months, in margin credit our put we Bank last reports general the in also

and seen not we any and not expect see do credit experience we term to do in have products not challenge repricing forward. short We going material

Lago. Thank Very clear, you. you, thank

Thank you, Gustavo

Alexander please? coming Keybanc. you Can open is question Next from line Markgraff from the

first Yeah, Thanks A you credit. of taking nice just question couple speak and with all. questions, hi the team! around for to

of are a as grow stance in ‘XX more to are maybe so, underwriting environment? credit the Just retail that approach if If you this you scenario opportunities might in change that anticipate to underwriting from segments, not, versus taking the conservative and a more by away extent an qualitatively, kind to there ’XX. more your baseline segments certain affected of see market see and of some challenging do more customer in your with peers you pulling

Alexander! is the Youssef. question. Thanks for This Hi

to always said, underwriting positive downturn it – an will a of expect through So every to stance downturn. grant and I underwrite we worsening. it credit go is to needs in ANPD again, future to underwrite be that loan, and basic Like card our we risk a expectation every

both, trajectory. we micro we looking eye So our growth general and is pull of with we customers. advantages see said, very a faster leading that if our monitoring being more given close in we in window a products, where offers continuing severe feel or we a – take in needed know opportunities delinquencies, assume conversely market or keeping we grow faster keep to that more But places that, we're degradation a environment, segments competitive provide feel very the than comfortable you share see back to or looking prepared at competitive to and where at to

of spend to to this plan more you. respect Thank versus adoption you ’XX. you. that Thank How you kind quarter. in balance And do in than to Maybe again quickly to then of came newer just marketing lower some drive bit anticipated. just targeted expense, type top qualitatively had funnel of called a on products with efforts speak it priorities of marketing we the expense out

you are Lago there? Hello!

I could Yes, please? could apologize. not sorry you the we Can I hear. question – repeat

Alex, that. is this sorry about Yeah,

lower had this Just came bit a to expense, with in respect quarter. marketing anticipated we than

priorities Just balance newer versus the you of if more you to speak the to more to and again qualitatively for this top spends plan funnel of were some ‘XX wondering can called spend adoption type out products targeted quarter? drive how of perhaps that marketing

spend, marketing. a great strategic especially very expect We question. on have, Yeah, no continue will market paid that do we it’s to

the our has we’ve beginning seen call, the been that at amongst the lowest been think I acquisition the of has market. mentioned cost customer in

$X We customer, paid a only accounts about have which of marketing for $X. off per cost customer acquisition

we primarily acquisitions, in we not but forward Columbia, not expect we will this expect more are in will in should shown but going equations only we forward. and market customer the any Mexico aggressively LTV material go as to the We lean to that from see have that going deviation and CAC that up to Brazil

it go change be stepping the what that but expect will to we would seen I So will now slightly though have in past. up, a marketing

probably be opportunity in see certain the in an We more known. and a repositioning we're in marketing, we that do little not investing well will better bit product segments, where

is in segment, launch We're last an our seen. income doing excited year. very brand we directed we opportunity be There population high with that and more that. we've which product is will so build what that far Brazil towards to in So [inaudible]

one sponsors the to the of be World of announced FIFA also We Cup.

investments that there So will event. be surrounding marketing some specific

when So look at discussed in too the we we during IPO, LTV with capital little? lot have bit that actually in a question even you actively LTV spending Because the calculations are we type asking of that more is, even that type market are ourselves and that opportunity to the the the require we is returns competitive CAC be a to aggressive. see of more there that we actually a

and general LTV not segments. always CAC So still the some that sort you that to question really we're could the in is seeing that we're in double move balancing, customer even the terms of needle in but the of CAC of

response. Great! for thoughtful Thank you

Thank you, Alex.

Pedro coming Itaú. from question Next is from Leduc

taking A for NPL’s. on little sorry bit back guys the the question. you Thank

shrunk you if cards how you're you is both engaged efforts and or is remind recoveries, our relevant doing these risk. of strategy a little And if strategy to chart. good this on in could what a behave behavior and personal credit and have a internal could loans book terms recent. mitigate for try awareness, lines as in us selling of plan a to if renegotiated portfolios shown that rather fairly, here If we on dig You’ve maybe you and both bit, each

Just picking you. Thank your brain here.

questions. Youssef. Thank This Hi Pedro! is the for you

So them let one to one. address by me try

same are generally both You terms has of pre-COVID expectation. levels and those which seen lending credit below gradually are both actually slightly baseline have expected products and return of right, terms performed They gradual as towards both. but our trending delinquencies. card in that, to levels, that in in been We’ve NPLs

You're asking about renegotiation.

to to of provision and renegotiations option regulatory customers. that provide do around pretty loans approach that and we We follow guidance yeah, take So conservative a accordingly.

so months renegotiated something than more even you because that. the and it look our of or stable monitor, been has renegotiation remarkably loans, volume of XX or the performance in we at If volumes, last the

So there’s over no guess quarters. real that in several I the change been approach last

is not should lever quarter, call in but sales. know it conditions the things for might the that is This future, something part were you in be we have You also fourth asking that asset a of about we the do done would that.

following And do card a business within this further we refinancing they and have doing add they numbers our even the credit the our maybe if not discussion that may personal and or in and in are affect or that influence to entailed card, credit restructuring loans. we may had is, just delinquency past provision

separate, keep to us card. for positively use loans negative important affect personal the to completely don't super it’s delinquency of those and products or two So we credit

[inaudible] useful, you. of book the very very good. Thank That’s just are comments and very good especially stable, they being that’s

Thank you, Pedro.

last open line and is America. you please? Bank the Can Mario of question Next Pierry coming from from question

Hi for taking guys! question. Thanks my

terms are of retail can a you is a Is of you – deposits with follows in very a mention if to two or high when wanted lower tie you score CDI. they bit One high right, a individuals, your previous you as question little questions, have NPS on retail exactly deposits your you to that ask first linked are a you making what a rate, retail what on NPS both your better, high basically loans, NPS? me loans. more repricing that the you Let score in loan. charging interest drives credit ups. And available one that these I to the understand mentioned, gives – you're are

you as up bit. your your or to costs able these has the But your portfolio pass a going mentioned. are CDI little spreads as you fully on funding are to higher repricing clients your So compressing

So that’s the ask the question, then second up. first follow I’ll

Thank you for your Mario! Hi questions.

tend products of bit both on and a better quality ends better on always the loans of get it to and to loans, combination costs. being user the First up lower We NPS, loan, is of ends, a is on products just specifically, or a function our experience. process quality personal product better a a get. consumers the the very or operate The fact easy on can that higher

account. deposited You bank in immediately could your get it

is consumer that and question. time and loan, a available, real reach a understanding to have any team loan easy and algorithms now approve any to gets every really consumer message it's support, that the very time We person a patterns able customer support are needs should that algorithms answer are our our

a is kind lower that's – cost. user the site, support. and at generally the aspect digital on also we consumers So the of that quality offered And

driving be below price So we today very this ultimately the aggressive of market XX% to we and And to to at try maintained average. something tend very about pricing well kind high maintain equation and to a NPS.

that's side. So the NPS

we cost do CDI we consumers passed of all the benefit of not of We're bit the pass part value for as without we of that in of not offer where XXX% any a actually, yield. CDI account effectively – are of to businesses, CDI small proposition. On offering their XXX% to able increase

net So environment CDI we actually from increasing perspective. on that benefits benefit, an

if sheet, our, just I interest is exception neutral for is rise banking in rates. very interest I for very structure us. add which It's Usually for is consumer for positive David think us. no just And would to simple, balance highlight I right. to the what rates on may a net said it Mario, But and positive the

$X total bearing non-interest of CDIs side and the billion bearing billion we pay sheet $X of right XXX% of liabilities mentioned. have So, on we $XX $X we billion for interest billion. balance of liabilities which of equity, the

hand On the is side have and also we the $XX billion billion the totaling credit card credit and of $XX course billion. cash two billion equivalents; which credit balance receivables, portfolio of portfolio, of of $X interest of left non-earnings sheet, earning

when interest the on our up. billion So go up, our interest but earning bearing go cost $XX rates asset on up, $X billion go interest liabilities the revenues

a net for So it’s positive us.

Just to of of the business. our wanted to therefore sheet overall highlight the balance structure kind interest the and impact rates of

Okay. my your No, related is Mexico, that’s and client second in to helpful, question base right. then

X.X% of you mentioned, client about million you already As X.X base. clients, your that's have

of of what think Brazil? So significant here, two should we about Mexican at be Mexico a versus customer between us the and our your by see percentage years, a differences products Do how just of Mexico the clients total end Brazilian any and should you in think profitability next customer. help

great Mario, it’s a question.

narrow relative in of number in the of customers, Brazil basically could in expect base we long that sorry the in terms represent of to is term case much card overall our upside percentage so it think be penetration Eventually would in our with market Mexico. which population prove is customer Mexico of population, terms share Mexico is So than and the eventually can greater to even or in I be lower Mexico, Brazil, where the in than in no Brazil. made banking penetration,

are to the term RPAC in profitability of in there of no short our terms customers customers pack Mexico, lower there of because credit and of going profitability bank the they the especially card to In with in in accounts launching likely the a Brazil expect three be years. two customers in and Brazil, than is the coming in we’re customers Mexico, be we of to

even XX% term. a RPAC to than to Now more consumer XX% we the In the the long is the that, unit much of consumer in balances Brazil, expect that economics general RPAC anywhere a the heavy flip however, there side compared credit Mexico will and therefore card to be Brazilian bearing of interest is in be Mexican healthier. lower product can that

lower or And this than difference in in reflect income cross lower mean in your lower be to income ability should does Mexico or in that products Brazil. RPAC, disposable again sell does it it Mexico

Do portfolio potential, in more as of good ability think of product it it product timing. matter time cross is matter products to is take sell Mexico the think in it to don’t the a that is a be I have Brazil. cross as It achieve in we sell should I us will Mexico.

higher the a be Bank. next slightly of over the still consumer consumer are RPAC Brazilian RPAC we you of think of that the customers look take than that average five So Mexican the will Nu years, if an course of the

If in income the XX%, The capita. proxy GDP is per per XX% Nu a terms you XX% Mexico GDP look maybe best to Brazil. about fact New for is than higher take and of that disposable average of capita in

So five is there's the consumer. not be as countries. stage to Mexican in the profitably in mind the of a for of could those because operations the of our consumer case long than term That we years, what very that or in the the two three have Brazilian more next maturation

Guys, very you thank much. Very clear.

we That you, floor going Thank to I’m Mario. the for pass call. wrap and takes to can the care closing the just David questions. of remarks

talk your you our results. time. for was a to about It very pleasure thank much Everyone,

continue very your with new We delivering come time. customer look for about ahead and to are we excited what's and much for that coming that obsession results Thank forward that. financial the together very you

The conference Nu you Thank for has now attending presentation. call concluded. Holdings today's

disconnect. now may You