Nu Holdings: The Market Is Underappreciating Its Growth Potential

Nu Holdings has declined over 35% but remains a high-growth, high-ROE bank with substantial runway in Brazil and Mexico. In Brazil, NU captures only 7% of the profit pool and has minimal SME penetration, suggesting significant untapped domestic opportunity. NU's Mexican operations are now breakeven, with less than 1% market share in a rapidly growing, underbanked market.