### Highlights
Nubank reported a $45mn net loss vs. the company-provided consensus of a $77mn loss. Similar NPL rises to the incumbent consumer segment, but without payroll and mortgage to smooth the hit.
We see the quarter with solid credit balance growth. Specifically, total loans rose 122% YoY. In addition, consumer loans, an investor focus, rose to $2bn and now represent 23% of total loans vs. 21% in 4Q21.
Card TPV rose to $15.9bn, up ~112% YoY and ahead of GIROe's $14.8bn. Interchange revenues increased 127%, with flattish yields at 1.19%.
Significantly, asset quality did not erode as most buy-side analysts expected, with 90-day NPLs up 70bps QoQ vs.
Bradesco’s consumer segment’s 60bps and
Itau’s 30bps, although this comparison tells only half true (keep reading).
While fast loan growth helps NPLs, we see
Nubank’s figures as substantially better than other neobanks. Provisions rose 287% YoY, driven by loan growth. Overall, Nu presented a strong beat vs. our expectations.
Nu presented a substantial beat to our estimates due to credit portfolio growth. According to the management:
> “We continued to see significant opportunities to grow and gain share in the unsecured credit market in Brazil, the largest available market in financial services in Latin America. Our credit portfolio, with credit cards and personal loans, grew significantly above market, at 126% YoY, to a total of U$$8.8 billion, while maintaining healthy credit levels and strong unit economics”. (David Vélez)