Nubank Gains Post-Earnings, Bucking Profitability Concerns

Shares of Nu Holdings Ltd. gained on Wednesday, bucking a slump in overnight trading, after the digital bank’s first quarter earnings showed strong revenue growth weighed down by higher spending to attract new clients and protect against potential bad loans.

Nubank, as the firm is known, posted a 40% increase in revenue to $3.2 billion in the quarter compared with the median estimate of $3.1 billion, according to data compiled by Bloomberg. Net income of $557.2 million, up 74% year-over-year, also topped expectations with its deposits and loan book growing more than estimated.