Nu (NU) 17 May 222022 Q1 Earnings call transcript

Good afternoon, ladies and gentlemen. Welcome to Nu Holdings Conference Call to discuss the Results for the First Quarter 2022. A slide presentation accompanies today's webcast, which is available on Nu's Investors Relations website, www.investors.nu in English and www.investidores.nu 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. can your icon choose Zoom the room. you right the to it, Portuguese of side screen, access press on the lower enter To and then original After audio. select mute that, participants [Foreign be Language] in advised all Please listen-only will that mode. be

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

You may proceed.

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

If is Chief Chief you Chief Founder, website. are Center Officer, Financial Officer. our not a have call Operating seen our Lahrech, our our Relations posted section Executive and release, Youssef earnings Officer Investor With copy today's Vélez, Results me and on in Chairman, our the David Lago, of Guilherme

that disclosure not the statements note discussion rates year-over-year forward-looking therefore you our available information future financial press of release. to today's Jag of might actual expectations. CEO, These and differ them. from and neutral Chief basis. Additionally, for highlights release. results numerous income. statements this to risks be but for main in all cause These our to by not company's adjusted some information, earnings be the FX that and our include Lahrech, we of call. and should joining non-IFRS are like not the call, including section will statements. over are questions. ahead. IFRS. Guilherme presenting uncertainties the first the the please through company's put quarter to defined Also the quarter, Youssef financial are XXXX everyone opportunities discuss us measures Officer, are performance press Throughout to be like financial performance of will undue financial the measures on COO, company our to after your the Founder time are CFO, will that information remind otherwise, take company's important financial the Today refer Lago, of forward-looking results call IFRS earnings Vélez turn the the and noted to you statements financial our conference our materially Subsequently, David, I a Q&A would our David go Reconciliations the forward-looking as for company Product to non-IFRS will take These unless could Please happy ahead. Duggal, in will net growth guarantees on are and would which reliance I subject

Thank to you, Pleasure was I’m all our be history. happy the Guilherme. quarter announce you. that to Welcome, of strongest in with here QX XXXX everybody.

at This On XX of customers historical to with organic quarter. XX%, X.X over very rate channels, reaching low the to continued we a total million million end customer the primarily acquisition high nearly be notably, growth a our of improved costs. acquisition Also mark. customers, activity front, attracted the by customer fueled

volume, up-sell of posting and growth billion, customer front, This year-on-year rates into to the at spurring product levels cross-sell. high and business we activity the both close growing billion, engagement at On deposits, reflected strong $XX.X purchase saw XXX%. historical and count $XX.X

Latin and We market available gain market the financial largest continued significant to in opportunities see grow America. in credit the to in Brazil, share unsecured in services

economics. XXX% loans, total market, and cards significantly grew to credit credit maintaining while at year-on-year, unit $X.X of above with portfolio, strong healthy and personal Our credit levels a billion,

three list of And still cards one XX% base we the XXX,XXX surpassing by wait issuer front, and of in we great On customer news, Promoter To the country. million Scores our support Net international in customers million markets. Colombia. entire operate, a X of the we expansion services nearly in our expansions also position in growth, the as this Mexico customers, maintain have surpassed in secured highest these in grew financial consolidating these industries continue one fund $XXX sequentially, and new Colombia, we X drawdown the of And Mexico, our have a credit million customers. to number facility markets three-year we we syndicated to

over continued would We and months. the portfolio. these end on two-sided like our notable invest small to to product consumers and in ecosystem highlight businesses our I and other on one expand two of merchants launches past

account is Customers of traditional sales to conversion is in and rates secure increased from for can approval first like NuPay on Nu the credit a customers who the we and purchases interest-free pay App. launched installments, position choose and higher incremental just intersection checkout We Also, way Merchants Nu pay NuPay at with week card. limits. their by later compared leveraging one now, driven checkouts convenient pay for payment credit using their balance, to in Nubank online strengthen Nucripto. a superior with to NuPay higher last few purchasing more in and NuPay. region. enable power, to experience The commerce the our will benefit methods payments their or clicks announced consumers

only enormous and in as accessible we the Latin trading We prize our and of mission, this state-of-the-art crypto with market wants in America the it be like reasons. one if who a democratizing in platform. on at Brazil is other and And in is is products, the even Nucripto eliminate the America. Latin significant make aim to investment. crypto created the from to part Real of Consistent start of crypto an size it, two retail our over enormous interest for and have owning rest of past complexity and seen to few platform to The in anyone customers volume was investing you months crypto with

context, the the $X industry size is of US and largest services LatAm’s is and population of India’s. of financial Latin one And $X size capitalization single China’s its far, economies By in the To the the XXX the twice sheer trillion. First, people with region. GDP of economy is in and estimated that GDP. Xx trillion globally, largest XX% the market million at America is is of put of

Second, the and penetrations largely the the as penetration financial fast. as But LatAm among remain Mexico in, in lowest helping XX%. underpenetrated credit are world. are catch In credit in and where in to we card card region. markets the Colombia, see services up Banking you operate low we

take Mexico our acquire today consistently region. but LatAm Colombia, So, and to from that market coming as by continue we a fast expect as is large more Brazil, drive as inclusion well to not levels people. services and market, the to decades, over growth existing only addressable incumbent more able growing one we develop banking And are poised the greater as of we further in to financial fostering share businesses players, in market offers

X of stages very because is cross-sell. QX we of the customer over and a start other in NU game. of in already million at month. or Now in million the first potential still share mature to customers we're minute in half on nowhere the this the they of our market very notwithstanding and journey, high quarters, keeps XX% represents our in stages population our say base pace per first But growing inside our of Brazil the market, more with XXXX past still let's early we're early of country growth And X.X Bank [ph] we're just where the our the very,

market is AUC. consumer below X%, broader market finance is overall where Our and of share X% in terms below investments share in

X%. share in nearly marketplace is e-commerce market Our

just on gaining keep these KPIs markets to largely Brazil, and beaten we're quarter. equivalent if share in early Colombia. expect We the we're Mexico and have And all quarter are encouraging KPIs signs The success started early getting in in stages extremely of Brazil. in after their in

detail. has the our financial in months, thesis in fair over Guilherme seen we're amount more me our call of market America Latin to and the And turn results Lago, opportunity and that, intact the CFO services volatility excited operating ahead. go future about While remains to significant building of let the a of the our with through past financial

quarter XXXX, always yet by our David. we a and the set did value-generating you, first leveraging formula of we strong In Thank so delivered operating powerful of financial We emphasize. KPIs. that very simple,

Brazil, growing and Mexico active and base across Colombia customers. turning our customers into customer First,

ARPAC, growth while this Average the Active product both cost Per the the maintaining And all expanding Second, or upsell industry. operating Customer through one lowest in and Revenue delivering of product third, cross-sell. platforms

deep mainly through end, a dive the added This a the take brought channels. let's million to business. total organic Now XX% quarter XX.X X.X quarter, our customers year-on-year results customers of increase. million We by first into during quarterly

acquired in are growth. contribution operations XXX,XXX international Mexico the customers pleased quarter. to Colombia new increasing with our We the of our base customer also and

in ago of monthly the increasing the while XX% to we That to prior customer the drive up marked ability quarter. drive year to higher a activity Importantly, acquisition, our XX% from quarter consecutive a engagement. XX%, customer to to continue continue monthly testament rate and activity, eighth

reaching higher growth while an the base of to of is continue $XX cohorts continue engagement analysis far quarter, chart quite ARPAC. customer show year-on-year ARPAC customer revenue triple-digit our growth. of effects customer FX to healthy. mature We more in per to ARPAC things. to has neutral per products monetization $X.X has at at two basis, compounding may a powerful right, monthly our million. These NU, quarterly per three cohorts. products helped record-high increasing base customer up the combination one of number saw $XXX and higher our another our earlier revenue how moving XXX% month charts expansion proven of on revenue engagement growth, The active result Now and This of of and exceptional the drive is cohorts when the in This of per we quarter of month of an a are note looking customer be on customer monetization. ARPAC terms already that in evident the reached increasing

customers. customers of monthly but only active First, a growing -- customers, monthly not active number

levels higher to ARPAC. continues product product our and of Second, expand monthly cross-sell, upsell which

the are banks expanded ours. we potential. see are The has the left-hand ARPAC past than on still higher ARPAC six times very from we far side, you of over monthly our Although our as can incumbent quarters, ARPACs strongly believe

product maturation And slide shows share no the Purchase FX of seasonality Neutral up saw in we market prepaid on basis. constant to this The Despite with including overall, credit an reflects plateau of the more in cohorts. on and US$XX dollars, XX% of purchase volumes result product volumes in increase factors of quarter, right-hand the progress an cards. first business. strong there is which cross-sell. and the in sight. to card the gains Moving how the on grow currency, our billion volumes side nearly the purchase cards is upsell Again, increased

quarter, loans, first up products, Our year-on-year FX core for to again, share above even grew total billion. basis. faster grow year-on-year loans, book consumer personal total therefore, nearly market and continue finance market credit on these on credit growth and to an a XXX% gain a personal to rates, XX% in the our loan But our products. indicate receivables that of we significantly more personal increased continued pace cards gained healthy basis both Credit card book was at neutral which, FX $X neutral credit This during relevance and, has card an portfolio. in

the of the personal further coming loans to expect We in relevance quarters. grow

below neutral on months, franchise, advance dollars. nearly the most to basis, rate at dollars our first growing our FX during which of Brazil’s with a added deposits over closing of with the a building XX.X three in quarter deposit continued risk-free billion robust quarter funding last currency cost total the balance year-on-year fast an deposit continued on fund Deposits billion average we to strategy rate. use an operations. a $X CDI, up We local We XX% of

competitive One very platform rests advantages of serve. the cost key of its on our to low

per we cost quarter, even neutral decline delivering pushed FX an year-on-year by the serve a active customer in this XX% basis. on This further to

leverage a as on serve Excluding the cost in that scale FX any see continued an grow. of basis, compared shows of $X.XX XXXX the average we we effects, neutral our and a quarter also improvement benefits to improvement one-off of operating to first

whenever P&L, portfolio. the XXX% profit, basis we factors; the of our a our front-load driving important gross up delivered our credit Moving first, on note credit result so $XXX million. has an the year-on-year booked. a gross that we despite provisioning decreased did neutral we to profit of quarter the high-growth to IFRS, And another is It down growth as record-high Under quarter FX the provisioning. loss following margin of to recognition is credit have in loan loss in

on our more So, we and us margin. It the brings credit gross profit pressure our depends to it book, to entirely grow. faster we grow the chosen short-term have

balance. cash on interest Second,

large if This margin more As our revenue profit our by of largely profit interest is offset gross down gross gross rates go balance, funding it higher pushes or up, we but profit the cash fully leaves up the enlarges drives on formula. expenses, our partially it even as pool denominator it and earn our money of unchanged.

However, level. stabilize, margins as rates interest the our XX% credit gross portfolio to business matures are of and the a converge towards expected profit

to on profitability confirms our again million. our we We on Moving reported right of are the that adjusted net income bottom-line, with recurring path $XX earnings the formula.

release can a As appendix detailed our is the share-based applicable earnings well adjusted this and the as of reminder, reconciliation to income to found items. A as effects presentation. net for related adjusted compensation, these our tax expenses in be

raised to strengthening with attention years at the come, quarter. the position excess billion further, even This $X.X we capital In to for I growth Lastly, total of our the capital year, our the proactively this at to our ecosystem, including our to kept provides through organic $X.X us end the holding also to slide. a business in but would your to M&A. last of first expand and with level IPO, necessary foster not opportunities seek that cycles to we billion December our the of call like navigate and only adding cushion

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

Lago. you, Thank

overall the health credit our a quarter Let me of XXXX. in indicators and of asset track few now quality through first walk portfolio the key that you

on our the Let when credit main and decisions What see you of on we risk-adjusted of me our review cohorts of originations. loan are with on outcomes this start the personal that make and underwrite, the return, which cohorts left, a and margin is of optimize on the we card resilience, chart right. actual our the payback

of revenues As as a funding of minus we cost revenues risk, and a reminder, here percentage cost define margin net risk-adjusted of cost. as funding expressed

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

repricing Personal continue successfully As And at to have above we be expect The implement us have we and interest loans, to or this to able cards above rise NPV performance forward. XX% credit and personal rates believe still credit both moving and risk levels can credit repricing We delinquency this expectations, worsening across even products Now, RAMs level ensure the over we cards evolve how rates baseline forward? positions normalize, withstand to end is; do responded well and both from of XXX% these greater expected by and resilience. growing of that going result been positive. Loans. cohorts,

the first delinquency In with line we our metrics, in normalization expectations. to of quarter, continued Moving NPLs. now have seen

slide, roughly side the points, we On In by of XX are shift QX, normal due NPLs. mix. the seasonality in XX can can of XXX to by to XX be increased points about basis see a of observed explained evolution NPL in to XX QX, basis basis about XX and the XX primarily left-hand points which

evolution the of side can right metric. the we of the see the NPL On slide, XX+

expectations. rest which and shift NPL of business This continued our can compared Adjusting Brazilian delinquencies the in be normalization card credit Our understand with basis points, slide quality in mix shift, attributed to our in the trajectory a Brazil, XX XX+ line asset view increased for of to most mix. of points, XX increased by market. pace of better a basis NPL of normalization shows lagged the to

we no For a the operate NPL QX patterns. stable or to difference have XXXX But, a the below perspective, beyond is perspective, XX with expected us, signs relatively upward XXXX credit from worsening in levels. to momentum of has a continued From period been risk from XX risk a macro NPL tends this more perspective, half XX+ bit XX XX+ the experienced NPLs Brazilian operating above more to been as pronounced card In slide, to little pronounced and already a see the and levels deterioration has both on the as lag contrast, you XXXX. credit XX the XX. has can XX bottom pre-Covid bit of XX+ in as of January a market seasonal to

on as recognized Nu’s loss Now, impact This the consumer card let associated intentional when rates, that businesses. or is a loan any as Loss loss provisions between remind is mismatch and has ECL me loan before be granted, provisioning IFRS Credit an for a Expected with business revenue methodology, and results X, step back credit case high with the accrued. you costs. must personal loan of revenues finance that a loan Per is timing loan and even in growth

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

our the our context, quarter. us that NPL how attention formation in affected with Now, to much growth turn provision has let

normalization the The XX% consumer finance provisions XX% million basis, increase by an the majority of which during from coming on this neutral FX latter. $XXX of the of Our first portfolio and result risk combination grew a NPL XX% is seasonality, or was quarter. remaining the growing. our of

now me turn back As has concluding driver and our our CEO, quality, Founder the and on discussed these our perspectives previously, of for provisions his and the David been shared Having remarks. data Vélez, formation. let to dominant of growth portfolio asset the credit call

But the a new the thesis reinforcing sound has of with may at inflation to or cetera. factors additional five thesis be have financial which interacted few presentation increased the like IPO points, to a global companies XXXX, longer. a created December has services of et for to unchanged. in in take providers in Russia, step some would familiar technology chains, market. of have now our by world ultimately, These from volatility will look a wrap world of our largest coming supply you take and in chokes noise digitally-native in from we significantly whom we remained with lot I years up back newly-created, the changed this US, the those when Since Ukraine,

incumbents here seen are and continue the America, we we the extremely and company of significant two, to versus best highest we of the number customers, three, the institutions become Net as benefits financial regions XX% scale. XX have Promoter the any cost positioned the the one, believe of in to over lead a fundamentals in nearly As Number culture the today, company and if agility, already been in Scores to are healthy largest of us have giving speed we one our we highest, the of of not accelerate. scale by in this Number have a of competitors. transformation the consumer world world. customers, Number able of largest We start-up. and one region maintained one the million with innovation maintain incumbent Latin advantage a developed

are increase, decreasing revenue benefit few customer we macro increases grow. This to increasing allowing cost credit adverse not average all LTV than in of advantage an have a significant only and our the average allows price customer best to CAC already core actually given volatility, the economic generating on and to costs, Brazil acquisition in fact, banks, of additional as compete target environments lower at finally, and do us traditional with economics, costs. best-in-class And advantage leader counter-cyclical. as they have our serve, advantages low consumers XXx profitability are and tends have and more we unit to segments the with to active in go provide might We this away cards. per to product, scale These and over efficient customers in XXx of serving first products market us disproportionately, continued

we $X.X in well-capitalized as As effectively eye Unfortunately, create macro growth been discipline. balance billion cost our And in have world we and our consumer and also bad in being to taking conditions building only ended they in the our know in maintaining thanks this since We structural, our XXXX, throughout decisions, accelerating mindful share of Nubank also trends seize are and has respective recessions company, continue a really particularly Brazil. history sheet, IPO, macro we extremely adverse the markets, opportunities. while the us opportunity. the our that QX capital have the excess that comes but with opportunity seen macro all approximately is of are we continue to it close XXXX credit discipline in to gives which and to changed and a our when middle

to of intend sell do stock, distribute or consistent being we a as shares as Nubank with and optimize, in Over us opportunity we long-term long a in available for thought have run. or the any company have have portion past way distributing have to the expectation say not to post the This near avalanche shareholders we be our lock-up. the about long positioning that received their rumors of reinforced long lot being I'm of have us build market of talked the happy shareholders recently to in such, they term shares time, percentage that our majority and the with weeks, significant a a holdings. been an to of the material very to our of in been holders have questions main their about and future. to selling of we always great a is continue they There their market

Thank you to everyone. for like I’d open Now, Q&A.

Vieira, to for now start analysts. session and Manager like Investor Instructions] turn Nu [Operator Q&A would Holdings. Mr. now the Guilherme floor to at Relations will investors I We the over Senior

Operator, please open is from Goldman. question first the Tito Labarta coming The line. from

everyone. questions just congratulations Thank and and question results. my My for your growth you evening, and you on that. strong call the of in manage how the then taking Good terms Hi.

provisions, strong so You you portfolio, quickly in the comfort you I very an But what methodology. yet faster NPLs understand than from increasing growing do it's have growth to are expected grow on loss deteriorating. market loan with the gives

in is gives some give but think seeing in comfort from any kind loans evolve Just will can that help managing that won't you do that short-term gross non-performing think beyond the what margin? grow these us be that? XX%, color you here? gives terms can growth months know you're you. you that about fast, of what comfort in I that gross the that if margin environment? the the you're on become next you you this in to XX And this long-term, like Just continue how or from there? Thank of if there pressure just how in short-term, to And

Great. your question. you Tito, much very thank for

we that the So have already customers, the is in consider thing of their very percentage XX% have but as over small adult to I business. of still first guess on might Brazil we growth, population a

we So around In market I in share. card, something like market think share. we X% credit X% lending, have around have

low get who are XX, underwriting. more us within days, growth the limits their grow, we share loans, in effectively to XX limits we're we So have to re-picking selective -- allows that the being after and generally about we're credit very And we see as that performance, and who expand credit especially doesn't. get able information We personal to consistently conceptional about very XX, XX, transactional we get that information. provide with gets we we our so still comfort as the credit to base much small. get starting And

consider of able the of is customers effectively bank. in very to fish we we that to first and want large the how of and small to inside pick are there the base still percentage thing customers grow And pond type the given lot bring there's vis-à-vis Nu share a of consumers. market is a to So we number

credit. ultimately company paying We as starting started a credit us credit to We that saw our adverse the started we saw saw really to competence, impeachment. XXXX-XXXX, to is [ph] at contracting pandemic. lot as through of entire aspect banks were went doing several and X% credit second GDP. XXXX, conditions history. a differently company, as We we in over recessions. advantage. macro a growing, to as And face this We core The first from We in develop a XXXX, digital then, forced Brazil have competitive saw we

So this to develop going and and our we on a worse sustain every us be the be wrong one those to that every every customers has of can conservative significant decision of bias and credit that models, right forced credit the and resilience cushion aspect Today, decisions. underwriting in lot all in on future decision that than discipline still and the past underwriting way much a future In be macro to we're decisions to that every on have significant the assumes decision a still is make. credit NPV for possible. we effectively we be performance single worse very making the have making the

to cherry-picking able bit to a continue more share methodology little question. he can at the wants a Lago we're grow, anything about and taking Tito. a of answer -- macro and grow I'll market selection. here combination and to might add we margin of more use Youssef side gross your that the you, credit Thank let on adverse as so And that else start suffering in margin

everything comfort that expectations. our additional a seen actual I couple one Tito, are of would of to terms with have say has we grow. us giving been Yes, to Number is in continue things so performance, in line far

And credit increasing continued despite in and that. withstand us the card above-hurdle interest worsen in that been and mostly and in competitive. to double profitability of David hurdle that as for some returns, increase And mostly but cohorts both strong repricing, able to credit rates, of can be room be our a the And loan of of environment there personal namely for also positive. believe response mix. our deliver is than seen successfully to baseline and of we've continue terms seen cards resilience that and to personal and for in what more underwrite been presentation [ph] for It's we our drove still things margin loan the we ample above BNPV for and You've pricing we loans, earnings story and -- NPL. we in the always demand still have risk said, the and seasonality to in face

said, of we in that quickly more to that act hesitate grow. So, adverse a not gives that. much ourselves But decisively us to we a find quite of in if the fix and confidence scenario, bit will

Tito, In continues in revenues about XX% don't increase towards credit maybe few we the margins interbank Brazil have our converge gross you the We actual seen do a quarters, drive of portfolio our the in our the the to as cost increases rates our your performance, expect two, next and in credit strong level. growth and allowance expected funding. expenses; of margins. profit as But guidance loss mentioned, Then gross we the per in to finally, profit business question se. forward-looking as provide to

which of lower cohorts, temporarily range. the to the as We our expect XX% compared will mature are be margins in what margins see we the more

Are these but helpful. David, David's If you're with on like you from more of loans them and provide Thank there. Do have don't can the that's of you Do clients -- credit? best banks away unbanked just follow-up any about in you're other color the these when you're ask kind have very that and clients. credit, the banks? Great. other taking some ones selecting still you, extending any could clients Lago, on Youssef, I cherry-picking one point

of who sense cherry-pick to other best loans how these outstanding and you're pick what a they fines to and may able get have to the ones? Just are

Yes, Youssef. Tito, this is

for Let that, me thank address and you that question.

So, mix would I of it's definitely say both. a

side. or We loan side we whom product terms, we have obviously financial Nu a extend, tend that credit Bank experience, financial have for we careful a credit to services with We credit and to have relationship the offering to then each also of a managing very time. already to personal both limits and have by be show repay letting over individual amount and card they a the either people the And lot we lot ability of the credit, experience pay are is been number down instruments. credit them offer, in particular, the all clients small the limits have more a who on the clients loan and and circumstance. loans the and way credit who don't provider extend personal good before very And outset to the at first other borrower of for cards credit credit handle and new adapt

successfully So with. and this have experience and we've been years several sort of for and a are that done start over and grow something of is low time lot comfort

is thing terms mention cross-sell in offer other is we here I'll it of The how personal a exclusively product. loans,

So, that's how we cherry-pick.

the manage So profitability we and of lowest credit customers loans best be that them from risk the and the card basically able risk our to to offer perspective. personal take selectively

one add So there. final just to point

question get I a lot. think we this

Just before. to clear, credit go relationships that already changing they the than of credit different had Bank, it our to are their support Nu credits be to had never and effectively giving people which customers majority to super is

small customers side credit limits we a percentage on generally credit have We low $XX. especially in as the segment start, that that of with card side, as

so product that to or today and a from deciding in history, to lot all But and internal helping credit so from transfer customers credit market a their Central positive slowly products, information the go card main lending a that able the one our cards to us are products. the we're the from build profile. customer our investment of different get information or $XXX, of $XX it had that's relationships creating means Nu savings personal and Bank, start customers product of get that had to from $XX number a customers effectively a both majority the a bureaus, to these And loans credit our credit be own to credit seeing to way could time since are that And other Bank. lot via credit of from

results. Thank Youssef again congratulations David, on Great. you, strong the and

you, Thank Tito.

open line. from question Elliott, next the Autonomous. please Operator, The coming Geoffrey is

okay? Can you me hear

fine. hear Yes. We you

Perfect.

of think specifically, doing who expense deposit, retail there bringing you've that those the to that And potential something rewarding the differently? increasingly of not is XXX% opportunity you're about some your have be is today about context, the spoken past profitability that So seems but deposit customers, the would line. down showing unlock in that about who companies the of of potential that the at forward earnings to profitability Thank you. might can market In bring? demonstrate to you of CDI thinking today, profitability the individual are might that all significant anything

Geoffrey, thanks.

growth growth the profitability of available. for easy us, grew say year. yes, don't to So show a there our rate. stop profitability. would and available, We is over I’d immediately, We could the growth decreased be even We last increase to XXX% rate. We -- lot it have profitability significantly rate extremely

very us, So we run to for not short-term. decide important continue do it's to value the that to for for run. company really we long want of I don't the the optimize to be long do and very in for because been optimizing optimizing the a And totally think continue

ago. the about is risk six more is obviously, There market was there than However, volatile. months more

has I think spending is way forced really credit across So But harder the that in decisions. continue we're for is to now. And definitive we that more harder level resilience to us to the That's for if new on our something efficiency. doing increase be attempt the run. our underwriting being long to days bank and has absolutely of push right think this much us of this it and will that optimize really optimize push Latin we in value created control a This forced especially and world, the the money, America. ultimately, new we're we the category early of cost

goal. said, on the on we be comment necessarily I to will That mistake I shift what you strategic said, mentioned it So that being I as won't suddenly a think, think NuConta.

I Net Promoter are there think are strategy board allocation asking we're ourselves, across switch happen drivers we than are others. products consumers Score, are all really the actively looking at there and what and that is resources. that actually can the some that looking in at understanding that less drives values values times appreciate, in appreciated what of it the are And best at

a So I every we're anything single Lago question question as your want asking better doing research here? allocation time on to ourselves would just basis, that general answer understand more that add capital allocation. we and question. We're

operating this operational the leverage lock in I to ability tremendous here So have in we business. -- think

quarters out continue you business. cost seen cost have from in as to operating the you leverage XX% leverage to of may trend as in is been able seen draws how also by coming terms the think operating And So appendix continue have there basis. have in our quarters presentation coming of have your as grow, has exhibit see of operating attention That is extract expected the noted may year-on-year that we coming and the to and which operating serve a of and that in of evolutions, the in a to to which on to you in dropped also about of years. That lot to higher we slide to in presentation, our you XX% revenues. cost seen partially we has that G&A, revenues I about moved XX% leverage And a is graph higher even expect the is, years. serve,

about day-to-day about the high is Thank that NuConta any getting there, things? you. I there app? Nubank now thinking And interest people you're on the main really the invest balances. the of, are how on and new kind predicated rates change on Is mean, into rolling that functionality about specific question

broader us response product degrees to that comment give provide want really don't options to specifically the of portfolio on broader Certainly, having more in We But a would setup. investment said, as consumers consumers additional change. and would and question, as configuration we different changes as answer us number of highly by been a what I to valued drive portfolio in has have. might products that we we have that a

much. very Thanks Great.

Thank you.

Thank Kuri you. question Stanley. open the from Please Jore The from Morgan coming next line. is

bulk of sort catch-up? seeing trying personal credit the loan a cards can like going what to clients"? getting given of that been so and to personal clients the of please Bank to Is good best/low-risk what you? NPL Nu they clients results. percentage, get And gaining is delinquency relatively wanted personal see behavior this, the And related maybe underwriting clients and loan And about by are everyone on of of fair that product Are have that little personal to to card have loans, are clients still at percentage bit that "the are the have are connectivity with with talk the Hi that, you several low loans. penetration going talk data. the say between that in are loans the to Thank risk among that to very for where issue you loans going it Nu you. I profile years, loans you. the And and personal about you the clients also ratio congrats great of your you a credit if can new to is order first an

me with last for starting you address piece. thank the Jorge, the it let question, in turn

gaining loans. card In through credit terms delinquencies of so-called the of

not categorically, is happening. no, So is, that the answer

your block personal we question, to. being for long. credit fact, we on who from delinquent are card your very is part In terms any only the a we offer in of Not selective who that, earlier to of customer eligible loans but

credit and So value a really And originations that be loans. cross-sell of personal resilient exclusively cetera, risk good et we able the from of credit to card card the a profitable, actual loans repayments, as cross-sell. the benefit create customers. able target personal In we to credit we're way, having performance, It's best to -- experience card underwrite. to

NPLs no we're thing personal there as and again, So selective something card this NPLs. such And loan is very about. is between credit connectivity that

fact, personal loans. In of whatsoever cards credit that no terms commingling and there's in do we

in Great. very clients question to if Thank much. is able follow-up of that my would the country, disclosure you And I something you there be haven't provided? by growth been see is it.

million XX.X $XXX,XXX the provide Jorge, Brazil, release, from customers have will we we and of that, provided in total, Mexico the Colombia. our comes for XX.X comes that that remainder have out earnings we in from note have actually million that you X.X We

you, Thank Lago. again. Congrats Great.

so Thank much. you

question James comes Susquehanna. next from the line. open The from Friedman Please

the well Hi. on Congratulations Thank you for question. results. taking as my

Youssef, payback you guess about talk think the But the when could personal credit versus first So question loans cards? I I for compare slide maybe was you it XX.

Yes, Jamie.

So that question. thanks for

see on can you on margin as So risk-adjusted basis. actual of page This the presentation. cohort the earnings a shows XX

personal month closely you payback faster the that, a average, if although, look credit to six tends little four are both sort periods You than of be loans may payback bit notice, in to revenues three we or And cards. for of just that pricing four around give payback provision in. enable levels then kicks take. to that get dynamic loans, of And a months, that's and upfront

And then Thank specifically follow-up, market, talk ultraviolet? move about you my with up for little introduction the the you. could a bit of

Sure.

very customers, high of finalizing we income. significant several When after in high-income that base itself. million XX million year. we be product look those of process ultraviolet already that launched To have have a customers. So we the customers in at considered pretty We're last would income, the we go

wait We have list. a

product been really and customers and number to features. a have inviting in finalizing the a We process, the better wait different have list of test

far, seen good really, we've response. really So

example, provides the XXX% a of We rate. wait cash-back large very for currently are the for certain customers product. for that waiting customer generating on -- -- risk list of there the free like, it is the have points features And

cash-back today probably intra in market, having it's the [indiscernible]. best the So investment is

over considered So We we an high of very should being expect rest those to Brazil have of increasing finalizing and of rolled are more we're see kind in year. engagement points, about product today. customers the the that million aggressively last much bringing excited that income the been out several really

you, it. David. Got Thank

you. Thank

Thiago line. from from the comes open Please, Batista question next The UBS.

in that believe Brazilian My Federal increase Brazil? opportunity. new least -- the license Bank for at especially in cons of density Thanks you the full do question few banking and is a would more considering pros get a the capital about guys. bank it ago, Hi, sense announced months to make license,

have question. for a -- two-sided ecosystem have your all payment both consumers three -- Look, serve and and we institution those we a and Hi, operating license, our have Thiago. license, have we to today, Thanks run SMEs. necessary so we we have much broker-dealer permissions license. With

we And to very if to that consumers institution so a practically a to to able our if that converted there's license be from today financial precise provide, license of of not that into make we may we to much provide Multiplo, own we kind zero, be right? be And or pressure that such were really are capital on we essentially but -- our actually would be something that we Banco are if would Multiplo. our are on we the also, conversion. cannot nothing down had Banco under the transition. many impact line, no So of It or reg a making there's of pros [indiscernible] there hurry to cons kind explore a

of I level. is What better NPL view impact open after follow-up very the implementation? a question. should the can clear If become with the How open bank banking cap in standards? much your for do the Nu A

Yes, a question. it's great

are excited open very banking. we So about

portfolio, significant for all yet. BRL lot years, have information, X% inflation credit of I even that a not And other been lot credit limits. lower tend about and of of to building able just credit are as We've of for a do models, building that to able But that we said, nine customers, historical to a bias. a We cherry-pick conservative very we around customers. for part of information. underwrite we're with still market earlier, have we has over around disadvantage with of of -- we e-commerce every a have billion for consumer of a one-third a start start XXX we don't and other We fintech, we we but As share their market. personal operate I because small of loans, segment we that have over said in very have customers, large base, a [ph] already

banks the have much more still information. bit so at we're of a vis-à-vis And a disadvantage that

because best whoever is account product think a the is product the the between the of of we like in in the right exists lowest now, of doesn't we this in your banks. happen all Brazil fintechs sitting Bank is no market effectively information and loan wins. of that There or Central get agree And bank driving that the business. that where asymmetry whether should which inertia us market towards, So offers best

inertia best of So still happening conditions. banks credit them wherever go want to all loans catalyst and the as let that a lot big is to that and best keeping let it the choose open to in be is customers choose banking, they remove seems the and the them

forces a incumbent lower at be we a we're side and of As credit us so than -- rates XX% lending -- over safer pricing also to ultimately our type note, portfolio. that still personal interest picking

in learning excited is that very very associated the open happening of instituted, a banking. as of underwriting banking year that as what lower results. with we're data last expect that open machine open market to And brings based to, Bank for of we the called acquisition lot -- ultimately, benefiting including a from more the We information So and AI. come in lot we Brazil banking much the inertia start Olivia, and Central expect in a a open seeing interesting a is company will about that available did

insights credit assets add David, -- But business. one mentioned both of of just for and consumer liability consumers. about benefits Open credit into the Finance banking the may the bring thing, better Thiago the I those or if side our banking you said will open open And

will be influence better identify for invest credit customers to or their in do materially it the what other able how franchise institutions So positively the money. our but and the to financial because underwriting them assets we and it's that best segmentation, only will to investment are have impact not way also customer

Very Lago clear David – and clear. Thanks

Ashwin question [ph] open from comes the Next Please line. Citi. from

you wondering, newer us contributing to you in that products be the usage engagement, Thank help the of and interest of seeing introduced if growth last XX maybe things legacy you. could in rates, factors, versus versus perhaps like the products the the just the months in that? was more traction I into some ARPAC XX higher disaggregate might

gives Slide how this. over Sure, the also years, past actually has what ARPAC that the presentation of but and our moves Ashwin. there. XX evolution performed Lot to probably the an of needle to in would number actually walk draw idea I you your through attention

two here. the you if the see of you on look ARPAC. use So, presentation can And side, take right-hand see cohort on a the things the you of Slide XX

see about year now $X.X is First, month our X.X%. per from that ago. ARPAC you can It a average came

bank an it's cohorts, cohorts bank this But you more can So XX%. earlier already the cohorts are from the credit that -- increase bank of the credit $XX. the at Most mature right? new about less also product. more by and derives of penetration of of mature than see penetration ARPAC from card X%, XX%. product account So, driven is of over growth credit card are of our maturation Why? account increase Because far process personal But primarily the of is most accounts. is our XX%. card the The loans about so penetration still the

significantly. going ARPAC can very upsell we once and of other personal do up see cross-sell as such Now you loans, products

In to to adopted upsell our and cards both bring $XX fact, three OpEx equation. expected consumers about is credit products, material penetration, who to personal we have personal and so as core the the cross-sell of accounts, have $XX, loans already loans bank ARPAC increase

to also loans, you in have addition expansion In the ARPAC are of personal insurance, investments, the to that contribute expected to marketplace future. also the

Okay.

and yet sounds of is older products? more are you're seeing what like it many contribute or newer So to the products

at only And take operations the ended you ARPAC incumbent of just quarter if of you to the X-X. banks, the Ashwin, incumbent today, retail about give $XX, retail first perspective, XXXX banks

are they So, ARPAC. Xx average higher than our

gap material the over to years. close is a there first So quarters and for coming

up kind Got in card XX%. Is change I to in range was it. to a What And XX% the that maybe more Got perhaps? can consumer sustainable ticked on receivable ratio to see that? that up. the you underlying XX% interest-bearing driving total it. receivable If that behavior then card It level? of ticked comment is

Yes. No, absolutely.

we take So still average look you have ratio. towards sustainable I at that below Balance think receivables, IBB, a more a level. Interest our our if walking divided Bearing by a is But

average less the have same the market the of IBBs of volume credit for receivables. card we So than

credit more bank credit introducing been you have volatiles, of are of deals the that that to which the finance ability IBB financing our We the card lead into has percentage products customers. increased gives and journey basically card finance

to up expect years. you expect slightly quarters recurring be the in and So, in more go actually a should should this levels, this you to fact, coming

quarter. good Thank for Understood. you And that.

Thanks so Ashwin. much,

Thank Neha you. question The from Please line. open your next comes from HSBC.

I also we How on Congratulations from the on quarter have not helpful. question look additional much of XX-day about it personal of pre-COVID really. X%. But one ratios? strong how loans kind that Hi. away very normalization NPL the are ratio during far quality. you at If the and provided, at asset did XXXX, NPL I have time, was – roughly

level? So think quarters to And account now that that change coming mix are NPL fast what we you taking have, into that how the the ratio normal likely we you the is should to XX-day expect? in in get do

the Neha, thank you question. for

business our normalization card you page what at versus and On a to So are lagged where about can where look this the in we perhaps compare, page, look XX-plus best we for XX both the earnings where is way to see at pre-pandemic. XX presentation. take that you NPLs, the XX credit is and were this think to today

our pre-pandemic, out, was loan in mode. test pointed you portfolio just very As small,

slightly bit But on no for lag, metrics, XX observe a close pretty be it below can on because to tends XXXX you there's levels there. is comparison So XX what little more in to we to page but both continue on XXs XX%. basis

next and continue we're back And to as the it's baseline to so we'll fully, we is exactly quarters to hard months go expectation that going see through get our while quantify when forward. normalization

you, would a given that say your hard ratio X%, or the so expectation, but sound of, level predict, to in NPL the to a in would reasonable early say? mix bit it's within normal a maybe understand, change I say, next X.X%, year by of that kind of end in to more more I be scenario year, XX-day

Yeah, Neha.

to NPLs higher in our up. all the And else with how quarter. drives portfolio, mix the in NPLs appendix end if be I of, – the are just can qualitatively I don't and to drivers given growth seasonality, guidance is happening. probably ongoing NPLs. were have are that normal provide we're you few pointed you personal our But and to, on we the of you in data pushing that nearing which This then that clear, the guide shifts a So down up equal there loans there's through normalization see the presentation

of. the think So drivers that those main are would that

last net a every strong that factors question, led to Could we specific strong despite in to a rate? you of activity what increase what should we so And these considerable net pickup activity normalized expect Okay. the every almost quarter? Thank should was how in One activity how in Has is see? level And sustainable which been there the half? coming rate And quarter? your there that are level much. adds any the $X million adds, managed you a the a good to rate as give net more add. color despite you increase is bit us

Thanks, Neha.

rates. on credit But won't began We guidance driving specific really you rate So very I'll activity give what's credit activity effectively limits. product the numbers. to that low offer is comment with the able one be on we on

were of a did that for wanted we to did do did they obviously, card, open create just credit that get would people didn't so our have insurance. be with have and And account, using lot people an a that investment, not will that number we of much. business loans, ultimately have we And have us, will we

flywheel investments, more this accounts. you to savings, of and become primary accelerating bring card, default reasons start credit we more their where launch we As lending, seeing bank marketplace, the business more find people insurance,

their our their card, limits of start then where shopping drives months, over their app, bring clearly them we they have bank our better, XX% bringing then a account. because for savings and credit loan, start become start marketplace. they in six getting for credit this of month, over measure with that we they And get their very that lot give fact, in we that within In their activation salaries investing to us those start they every higher customers primary we them know then drives been they as

any account lot with And paying main ultimately this being of bank activity so a becomes type to stronger customers drive. of offer to relationship financial the that which is proposition the value want receiving and payments, from and drives picks, way ultimately, we savings, can payments and investing customer, to that what we

hard lending still a or are increase or card we point estimate customer market We're credit we give the of when where a such but to that see we -- in So, to opportunity full -- limits still significant small. working mentioned obviously see have you low large a share I slow lands. base, a that still

those will increase activity we come rate. within more of those penetration with As the base, products that

bank of as working the account products relationship. we're goes we more hard up, primary the As us really private their and become of and reason that to and more bring very activity financial for kind effect more use more the customers to

Thank so David. clear, Very much. you

Thank you, Neha.

question open from Please Itaú. Leduc the from line. next comes Pedro The

Yes.

hope I me can you guys hear Okay.

Yes.

right. you. Thank All Yes.

me For little bit. a to that subjects switch

delays I expand of revenues solid are at pace, see services the service -- investments. insurance expected but very moving, a okay, a On least the continue we from at what shy were to front, fees bit bit on assume okay. card but a we Others, others mostly side, on

maybe a and us into just lower, remind back comment as if bit If can cards, as seasonality to cap, will new continue even side you on well. you prepaid can the gain this if guys self-base about interchange share. little for you And a this start when we

of revenue little overall the Just bit you. service sort a explore Thank evolution?

Pedro. the the So maybe a think can recap. road services Pedro, bit on can the and I on cap little business, think question, Jag prepaid, comment interchange brief capital more I map on interchange But just the product take I for a

Prepaid And Mastercard consultation both for on or a our the -- through this revenues Bank. prepaid the of analyzed actually months. approval it by about if being bps. March in it interchange accounted So that in a reduction understand X% is and revenues in of be process decrease still I on revenues take to to bps of XXX last public from in year, cards the released to would go rate cause our XXXX this interchange proposing still it was public the implemented, Central XX of X.X%. the Brazilian consultation and has about XX give also of Mastercard

our something is give So impact on this. marginal It us and the on bottom-line. that to guidance for fairly that for a or very top-line is me hard for timing would have

MasterCard something just want it's watching say to this the or to little business the have We respect in question hard third quarter now other definition a expect fees. throughout very it's quarter. the And but if to Central comment with are it's do and fourth Bank. in XXXX, to closely that with be going on both to investments or very in insurance Jag, Brazilian you second quarter Pedro's a bit services we

you, Thank Hi, Lago. Sure. A everyone. thoughts. few

line First our largely of been businesses think, all, expectations. has those businesses, with you I service-based in performance as more importantly, mentioned, of the

really product resonance As this rolling and quarters, others with. for product, while more we real products, require And involves that earlier, sometimes the then find we that parts find minimum that and of viable out new referenced customers parts the to have that several that resonate work. roll-out our it David we find a we a and iterating it but optimizing there's look first love process a

product And of some rapidly but number with based. small while so that we for our of products the product that becoming optimizing service before I on them a is aggressively a that of our is customer a And comfortable base. new point for focus until we new truly to really get them other are of aren't where say the resonant some we that would explosively services, intended are and we're that scale focus the we a products, are material base, product having part growing will optimizing a business product growing, quite from time And comfortable relatively on quite not product. not we well our some

pretty just by working pleased a account we're process doing some did we're -- way, in process, in and follows many and followed, progress -- a with personal are we're we making, And Also the We loans very we do to ways still that rest progress into than that similar quite by still confident summary customer working by for example, that quarters. it of many, where with many that loans. personal traction. but what products through product really with we we That the and are. this We're a of case our basically through with are love got we're product. product once get of as their of the the the the you formula we've for portfolio, good measure many, and more And at and pleased stage every our that generally, works. scale was, our adoption that's towards And with yet. it's progress

both you Thank Good. so much you. of

other in final estate, are revenues The on also the those real here one parties service products generated in just is generating of to on rollout? terms piggyback that credit where And are like that the Just this. review by line. on you ones somewhere already

they and of be the are fee They the would revenues. in part

Any Yes. color there Right. already…? rollout on been how the has

Yes.

-- with auto you loans. alluded, Creditas best-in-class home have believe, is are of, equity which I is one the the full to partnership and which believe we Creditas, manufacturer a still we equity We on of integration working

of They They our of gaining have first more traction been of do have a that products to will the experimentations started in We fourth in will customer of based start base. quarter next our P&L only year, towards this relevant their terms actually in encouraging. on way with quarter kind probably quite year be more expectations.

experience customers access conversion way working possible to broader have best for them still create our before to increase in products the and on we are our the a base. customer with their rollout what's We to the best

towards, relevant months now something six from more a have revenue say, to our meaningful or I in So, line. more would impact

Thank you Lago. so much, you. Thank

Pedro. you, Thank

Markgraff Please The next question Keybanc. the Alexander from comes line. open from

to to the team. the and speak for addition to of crypto-trading question I nice all. Hey, to ask the you Thanks platform. taking about wanted new

plan or functionality consumers curious of I then not you. across utility you Brazil to primary introduce platform? Thank that motivation to on take one whether kind on the Just the have the crypto crypto And increase own for to beyond and trading retail your follow-up. of

Sure.

for our crypto So we've seen base really significant interest and investing in in over owning consumer the year crypto. past

account are actually transfers type of of our to see into We able out the bank platforms. cryto-trading

our build to platform. offer customers was we obviously, ethereum. our as now, want, on and and to beginning, case a use try with important we products And trading customers it full we hedge thought talk just we're be long-term crypto-trading the so, and to to inflation. as crypto the a as The that well save and investing tends as towards bitcoin combination frankly, a of, Right

use cases. both type see of You

You the also of and inflation see kind currency. that of towards the devaluation hedge

a to Brazil, see that Latin American to much people use than big us our that's starting case markets clearly that in use. more but You're tell

the happy really beginning to to of option offer just customers, we're able we're our journey building customers. So, to that of and be kind platform the at that for

then, Super expense, be it in of talent forward as to you. try And about competitive helpful. you cash compensation you continue as going mix to how Thank thinking versus the are share-based relates the to market? just compensation

had have historically we net burn look, rate. low, a relatively let's say, So

So rate IPO, net has X%. even burn before substantially the our been below

get that operate which compensation the to should to have forward, structure long-term get variable the going we for most those we paid but and from this to people different expect peers, to in in important is X%, in think XXX% the is don't bit close their cash, expect I salary of little that we the a It anywhere is lower. We other the is important shares. monthly of super compensation note alignment they best Nubank, enormously on retaining still going stable If up the to anything, talent. attracting down. of their provide that expect And compensation we we not burn around or it's adequate levels. the that go paying historical will we We no from don't expect and with structuring net actually keep to be should to it's business. that level this something continue or rates to expect compensation and of something the us. And change us think shift, but think

Thank clear. Very Great. you.

MoffettNathanson. The the Please open from from Eugene comes next line. question

my you for Hey, hear Yes, can me? guys. questions. taking Thank you

Yes, we ahead. can Eugene. Go

And to it of want kind on expansion. it rapid back this Excellent. cohorts in what in compared of Is questions. to the as about from business? markets any? growth Thank if in the building were if my you what you to curious I'm you come to growth behaviors your Brazil? Very as of see international what can out seeing seen what Mexico? Mexico. for potential taking nice is you're trajectory I telling in What in differences, saw main we've those Brazil similar to the us you are new comment

question. Eugene, thanks for that

right. you're So

the other of one get I a in we there a that so cohorts had of growth Brazil. very, healthy was question think countries one very or driven and investors early into of the model with the questions virality replicate lot this conversations by a in days our member was was where Brazil beyond significant, real we and by member could

world. happen of category fast-forwarding XX, consumer I the is at two probably us metric. the we what new bidding NPS in it's in for And effectively any after from years the so Promoter we Mexico, our curious Net Starting of very launch these GEOs. Mexico is highest when about every And Score, Brazil think single are would launched company which today any

the function a XX, But that you of know, which than a If with driving higher you please curious. then consumer -- let start pain. of hear me anybody huge NPS, is very is high

Mexico got remember repatriation versus card a You has Brazil of XX% that XX. to credit

the for those then So configurate market time our pain. Most flywheel of access And card. We in acquisition. XX% creates better fit, through today we growth do that launch That word-of-mouth not by starts have Mexicans anything higher to customer referrals. of of ultimately consumer referrals. credit driving is the which Mexico paid coming not product

low being our took So We start then grow what us that pole today, we position very, month, is faster we were we than of limits, very low comparable Brazil largest that to -- able Brazil. that to ultimately, get every with to in credit credit CAC, to engagement that to And the credit pace. drives giving card higher limits up. Mexico get issue took to

we say, get more three were and is that actually smartphone to There bank Mexico, is the FinTech just a have regions. what for was, is took we clear in digital readier lot the didn't brand. largest the any bank that much a we and that and Mexico is that The Brazil digital two, brand concept the about go By It have early can years start in friction Internet different of than and so there of Brazil, of is days much part market why branches. We building higher understood. why, digital more can time skepticism positive us building other to a about The and the is banking a there to is penetration, world. in of we kind it us. we're traverses back still

us. was customers in That had days We Brazil, nothing. obviously have when trust XX Brazil over do hard to you can in million early the very in we

a that obviously the the We're Colombia. us are think similar this the reputation, to size, earlier readier the also and market. indicators are we of really, a factors about in all So are leading getting growth. paying seeing And the consumer we opportunity very excited that brand sort the really in market

two feel markets. the new these very So in overall, we opportunity about excited

important Got small then it. interesting. market another that for Got new it. guys, Very my follow-up businesses. is And you perhaps in

on for should in products of the X.X now. of provided bit what million there? Can small lookout that your milestones? your kind we strategy the terms you of little that market? a What talk think in introducing be I platform a businesses on about And you stat you're

This at – want want get Jag this your is let take one. – I'll absolutely. baby. Jag Sure, to it

ahead. go So

the missed market of referring I part Yes, you're which to...

example an Similar as Businesses

small on then path talk about A of yes. little and forward. can Yes, businesses, context the bit we

the to making -- sure customers, spent fundamental this that my to XX product, that as these in basically the point, our itself I referenced small the at merchants. account have make months -- We closer of core met target the last earlier answer XX nurturing needs following process

real inconvenient, terms. I'll they confidence highlight to customers to in now, of very gain of The payments to they use which often in words us they traction they pain to account about feel that points payment telling, refer uncertain on the our focus is an the quarters is area, couple have core is Over and and experience we additional the acceptance loss, they acceptance about product, started tell no is the that started last expensive. pay the use they is payment when rates the they acceptance. talk word when on difficult, of

The other large that quite is cards. need credit about cards, vocal are they credit around small business

our areas with have can nurture into looking started core account so product resonant our that truly these with that so customers. like experimenting And is growing rapidly are we base again, a of we that,

and of they that excited them, rate with small see NPS, resonance them. of have the suite businesses are to We again, with that products and emerging engagement the of the product have, for our high degree

that the early So seeing we're in the stages product dynamics even we're of suite. very, there very about relatively excited

Got Got much. it. it. Thank you very

XX% already we if of we SME seconds most And that kind Jag with X.X the financial to become within is there, general provided substantial. what The Brazil of mentioned. one so by estimates services to Brazil. assets big are of the a business that of the million, with XX general as as provided. million be on profit can profit consumer that that underappreciated excited SMEs that been have we the largest have pool quality pool finance is the provider is And add the in low we of in continue just we very SME probably to I services so of have grow profit the based market the portfolio pool ability XX% getting product is of our in that customers, to the X.X may to one No, last in have

So much, question. Eugene, the asking thank so you for

Thanks, guys. it. Got Yes.

Eugene. Thanks,

Q&A would the the Eugene. end to the over I to close floor like That's the call. to David session. turn of Thank you,

and that to we're the participating Thank you, we best again, how navigating on highlight largest which customers. the financial million a customers, transformation of nearly the in of in one institutions We just wanted excited about I lead the positioned call. Latin have we region already the in. we is this everybody, the are one the to become you, thank With largest in company by XX Gui, are for digital moment number believe riders world. banking America, of

We Score other in which able if operate, maintain think market a grow consumer product any Net highest have company one we not the been in the in world to of fit. of Promoter is indicator we the highest, regions leading to

developed allowing of cost retail lowest acquire, economics, is risk. have very very which unit especially in the cost us also banking to have an in low very LTV serve, we environment, region, very the have And CAC, platform cost the to and of finally, XX have We low-cost best-in-class to times. of low best-in-class funding current important low continued over cost

Thank originations bullish So long-term the our withstand high time, Investor capital prospects, we to to the for liquidity further extremely our have in same Have remain you on a Thank hesitate position. thanks to team. confident the to you, of time do the ability reach call. for and at making today's out questions, day. And strong just and as you any not our if everyone. short-term volatility, resilience Relations please while great

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

now may disconnect. You