Finance

Nubank Profit Surge Drives Rally, Outweighing Credit Doubts

  • Latin America digital bank doubled profit from year earlier
  • Analysts raise questions over high NPL and falling provisions
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Shares of Nu Holdings Ltd., one of the world’s largest digital banks, rallied after second-quarter profits more than doubled from a year earlier, overshadowing analyst red flags linked to rising delinquency rates and falling provisions for bad loans.

Shares gained as much as 5.9%, shrugging off early concerns about the loan book and approaching the median analyst price target of $13.41, according to data compiled by Bloomberg.