Nubank Predicts Higher Delinquencies, Elusive Profits in Mexico
- CFO Lago doesn’t expect Mexico to be profitable through 2024
- Bank’s non-performing loans in Mexico hit about 12%: regulator
The Nubank mobile app on a smartphone arranged in Mexico City, Mexico, on Saturday, Aug. 5, 2023.
Photographer: Alejandro Cegarra/BloombergThis article is for subscribers only.
Nu Holdings Ltd. expects profits from its Mexico expansion to remain elusive in the near-term as the Brazilian online lender grapples with the nation’s vast unbanked population.
The digital bank’s Mexican operations won’t reach profitability this year or in 2024, Chief Financial Officer Guilherme Lago said in an interview. He predicts non-performing loans in the country will also remain elevated as Nubank rolls out its products to consumers typically underserved by Mexican banks.