Nubank earnings beat: digital banking shows its power

Brazilian digital lender Nubank, through its US listed parent Nu Holdings $NU, has just posted record Q3 numbers. Net income jumped to about 783 million dollars, up almost 40 percent year on year and ahead of analyst expectations, with revenue growing roughly 39 percent and return on equity hitting about 31 percent.

For traders, this is a clear signal that app first banking in emerging markets can be both high growth and highly profitable.

Winners

Latin American fintech and digital banks

Reason: Nubank’s beat and record profitability validate the neobank model in the region, which can lift sentiment for other high growth fintech names tied to the same structural trend of digital financial adoption.

Names: $NU, $STNE, $SOFI