Nu Holdings Feedback from Meetings with CFO and IRO

Goldman Sachs maintains a Buy rating and $22 price target for Nu Holdings following investor meetings, emphasizing stable asset quality and the strategic shift toward becoming an AI-native bank.

Key Takeaways

• 1.Asset quality outlook remains intact despite a spike in provisions, which was attributed to seasonality and intentional risk expansion rather than structural deterioration.
• 2.The company is pivoting to become 'AI-native,' embedding AI across all layers of the business to drive growth and market share rather than immediate profitability extraction.
• 3.Expansion into Mexico is following the Brazil blueprint successfully, while US expansion will be tightly controlled to less than 100bps of efficiency impact.

Table of Contents

• Risk-adjusted NIM to improve sequentially
• AI is the main priority for the company
• Higher cost of risk reflects growth dynamics
• Unchanged underwriting policy and risk appetite
• Potential asset quality tailwinds not yet incorporated into models
• US expansion is controlled, but efficiency should increase from 1Q26
• Mexico is following the same blueprint as Brazil
• Private payroll in Brazil could unlock access to new credit data
• Capital returns unlikely in the foreseeable future
• Updating estimates for 1Q26 results
• Valuation and risks
• Model update
• Disclosure Appendix

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