Nu Holdings Eyes U.S. Expansion Amid Strong Latin American Growth

Nu Holdings (NYSE: NU), the operator of the digital bank Nubank, is positioning itself for significant growth as it prepares to enter the United States market. The company recently received conditional approval from the Office of the Comptroller of the Currency (OCC) to launch Nubank N.A., with a target launch date in 2027. While the U.S. financial sector is highly competitive, Nu Holdings aims to leverage its asset-light digital model. The company has already established a dominant presence in Brazil, Colombia, and Mexico, where it has disrupted traditional banking through smartphone-based services and a no-fee credit card model. The company's scale is evident in its customer base, which reached 131 million in the most recent quarter—a 15% year-over-year increase. Financial performance in 2025 was strong, with both revenue and net income growing by 45%. The firm maintains a high return on equity (ROE) of 33%, supported by a low efficiency ratio of 19.9% and an average monthly cost of $0.80 per customer. Currently trading at $14.61, the stock has declined approximately 13% so far in 2026. However, valuation metrics suggest potential upside; the stock trades at 25x earnings with a five-year price/earnings-to-growth (PEG) ratio of 0.87. Analysts from Citigroup estimate that capturing just 2% of the U.S. market with a 20% ROE could generate $21 billion in revenue by 2030.