Nu Holdings: 3 Metrics That Matter More Than Customer Growth

Nu Holdings (NYSE: NU) just reported its first quarterly net income above $1 billion, a major milestone for the digital bank. The company now serves nearly 139 million customers across Brazil, Mexico, and Colombia, cementing its position as one of the world's most interesting financial technology companies.

But the headline profit number only tells part of the story. According to a recent analysis, investors should focus on three key metrics: average revenue per active customer (ARPAC), return on equity (ROE), and the 90+ non-performing loan (NPL) ratio.

ARPAC measures how much revenue Nu generates per active customer per month. In the second quarter, ARPAC reached approximately $17, up from $13 a year earlier and just $8 in the second quarter of 2022. This steady climb shows that customers are adopting more products and becoming more valuable over time.

ROE, which indicates how efficiently a bank uses shareholder capital to generate profits, came in at 33% annualized, up from 28% a year earlier. That's exceptionally high for a bank and suggests management is deploying capital wisely.

Finally, the 90+ NPL ratio—the percentage of loans more than 90 days past due—stood at 6.9%, up from 6.5% in the prior quarter. While the increase was attributed to seasonal factors, it's a metric that demands close attention as Nu's loan book grows rapidly.

For investors, these three metrics matter because they determine whether Nu Holdings can sustain its growth and profitability. ARPAC growth means Nu can boost revenue without spending heavily on acquiring new customers, improving operating leverage. If ARPAC continues to rise, earnings could grow even if customer growth slows.

ROE is critical because rapid growth alone isn't enough. A bank can grow its loan book and revenue, but if returns on equity are low, shareholders may not benefit. Nu's 33% ROE shows it's currently generating attractive returns, but the challenge is maintaining that as the business scales.

The 90+ NPL ratio is the risk metric. Nu's credit portfolio reached $39.4 billion in Q2 2026, up from $27.3 billion a year earlier. As lending accelerates, credit quality becomes paramount. A rising NPL ratio could signal that Nu is taking on too much risk, potentially eroding profits.

Together, these metrics provide a balanced view: ARPAC and ROE show the upside potential, while NPL ratio highlights the downside risk. Investors should monitor all three to gauge whether Nu can continue its impressive trajectory without stumbling.