Nubank, owned by Paisa David Vélez, surpassed Itaú and became the most valuable bank in Latin America

Nubank, owned by Paisa David Vélez, surpassed Itaú and became the most valuable bank in Latin America
Nubank, owned by Paisa David Vélez, surpassed Itaú and became the most valuable bank in Latin America

05:40 PM

A Bloomberg report revealed that, in a historic move, Nu Holdings Ltd. (Nubank), the Brazilian digital bank of Paisa David Vélez, has surpassed Itaú Unibanco Holding SA as the most valuable financial institution in Latin America.

Also read: Nubank profits grew 167% in the first quarter of 2024

According to Bloomberg, Nubank shares rose 3.8% on Tuesdayboosting its market capitalization to $58.2 billion.

This bullish dynamic put it ahead of Itaú, which stands at around $56 billion. It is the first time that their values ​​have crossed at closing since the beginning of 2022, shortly after Nubank’s IPO.

The specialized economic media noted that This change is attributed to the massive rally in fintech stocks, driven by its strong first quarter results and a 46% year-to-date increase.

Nubank, which has big-name investors such as Warren Buffett’s Berkshire Hathaway Inc. and Sequoia Capital, began offering low-limit credit cards and easy-to-use mobile apps, attracting customers from all walks of life in Brazil.

Know: Nubank already has 100 million customers; It is the digital bank founded by Paisa David Vélez

Subsequently, The company expanded to Mexico and Colombia, establishing itself as “one of the most attractive names in emerging markets,” according to Ramiz Chelat, portfolio manager at Vontobel Asset Management, for Bloomberg.

Likewise, he specified that They took their time to grow their customer base in Brazil before taking risks. “And that is clearly what we are also seeing in Mexico and Colombia.”

In the last quarter, Nubank added 5.5 million clients and recorded revenues of $2.7 billion. Earlier this month, the company reached the remarkable number of 100 million customers in its three markets (92 million in Brazil, 7 in Mexico and 1 million in Colombia), becoming the first digital banking platform outside of Asia to reach this milestone.

This rebound in share price has catapulted some of its co-founders into the select club of billionaires. Executive Director, David Vélez now has a net worth of $11.9 billion, according to data compiled by Bloomberg. For its part, the participation of co-founder Cristina Junqueira exceeds 1.5 billion dollars.

Also read: Nubank announces the launch of its savings account in Colombia and promises significant profitability

Recently, the digital bank Nubank announced its financial results for the first quarter of 2024, where obtained revenues of 2.7 billion dollars, a historical record for the company with an increase of 64% compared to the same period in 2023.

Regarding net profits, The digital bank obtained 378.8 million dollars, compared to 141.8 million dollars in the same period last year. This meant an increase of 167%.

Nubank’s rise to leadership in the Latin American financial sector marks a significant change in the traditional banking landscape and highlights the growing power of digital platforms to challenge established players.

This is how the company has earned the trust of customers by offering accessible, transparent services focused on the user experience, a model that will undoubtedly continue to drive its growth in the coming years.

Keep reading: David Vélez is once again the richest man in Colombia, while Nubank reaches a new milestone

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