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On Wednesday, Nu Holdings Ltd (BVMF:ROXO34). (NYSE: NU), a prominent player in the banking industry with a market capitalization of $61.6 billion, announced a significant change in its executive team as Youssef Lahrech stepped down from his role as president and chief operating officer. Lahrech has been a pivotal figure in the company’s credit operations for approximately six years. Following his departure, CEO David Vélez will take over Lahrech’s responsibilities. According to InvestingPro data, the company has demonstrated strong operational performance with revenue growth of 33% over the last twelve months.
Lahrech will continue to contribute to Nu Holdings (NYSE:NU) by serving as a permanent observer on the Audit and Risk Committee of the board of directors. Additionally, he will act as an expert advisor to the company, focusing on strategic credit-related initiatives. The company’s announcement pointed out that the management team’s reshuffle aims to enhance operational efficiency and speed. InvestingPro analysis shows the company maintains a good overall financial health score, suggesting strong fundamentals despite the management changes.
Keybanc analysts expressed some surprise at the timing of Lahrech’s departure, considering the significance of Nu’s credit product suite and the increasing complexity of managing it. They noted Lahrech’s extensive experience, which includes around 19 years at Capital One (NYSE:COF) and his tenure at Nu, as critical to scaling the company’s high-growth credit portfolio.
Despite the intended streamlining of operations, the departure has raised questions among investors regarding the company’s future strategy and how it will manage its expanding credit book. The credit portfolio’s growth in both size and complexity is seen as potentially necessitating a dedicated role for effective management.
Following the announcement, Nu Holdings’ stock experienced a decline in after-hours trading, though the company’s shares have shown resilience with a 23% gain year-to-date. Investors are expected to seek clarity on the reasons behind the management change and the company’s plans to ensure continuity in overseeing its credit operations. The market’s reaction reflects concerns about the company’s direction and the ability of the CEO to manage additional responsibilities. Trading near its InvestingPro Fair Value with a P/E ratio of 30x, analysts maintain a moderate buy consensus with targets ranging from $9 to $18.90 per share.
In other recent news, Nu Holdings Ltd . has filed its annual report for the fiscal year ending December 31, 2024, with the U.S. Securities and Exchange Commission. This filing, known as Form 20-F, includes audited financial statements and provides transparency to shareholders. Additionally, JPMorgan has upgraded Nu Holdings’ stock rating from Neutral to Overweight, citing the current market downturn as an attractive buying opportunity, though it adjusted the price target to $13.00. JPMorgan projects Nubank’s net income for 2025-2026 to be lower than consensus estimates but still anticipates significant earnings growth over the next three years. In executive news, Nu Holdings announced the appointment of Roberto de Oliveira Campos Neto, the former President of the Central Bank of Brazil, as Vice Chairman starting July 1, 2025. Meanwhile, the company is experiencing an executive shift as COO Youssef Lahrech steps down, with CEO David Velez taking over Lahrech’s responsibilities. This change occurs as Nu Holdings continues to navigate a dynamic financial environment. Investors are likely to monitor these developments closely, given their potential impact on the company’s operations and strategic direction.
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