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Nu Holdings Ltd (BVMF:ROXO34). (NYSE: NU), a leading global digital banking platform with a market capitalization of $55 billion and impressive revenue growth of 49% over the last twelve months, today announced a significant restructuring of its management team to bolster customer focus, operational efficiency, and international collaboration. According to InvestingPro data, the company has maintained profitability while achieving strong operational metrics. The company’s founder, chairman, and CEO, David Vélez, will take direct control over the management team to streamline activities across markets.
The reshuffling includes Youssef Lahrech, serving as President and COO, maintaining oversight of key officers including Henrique Fragelli as Chief Risk Officer, Suzana Kubric as Chief People Officer, and the yet-to-be-filled Chief Legal Officer role. Livia Chanes is appointed as Brazil’s Chief Executive Officer, Vitor Olivier will continue as Chief Technology Officer, Cristina Junqueira as Chief Growth Officer, and Guilherme Lago as Chief Financial Officer. Under the current leadership, Nu Holdings (NYSE:NU) has achieved a return on equity of 28% and maintains a healthy debt-to-equity ratio of 0.27.
Lahrech will spearhead Global Enterprise and Global Product Operations, focusing on Financial Services and Lending in all markets, with a mandate to foster product platform development and innovation. Chanes will oversee Brazil-specific operations such as Investments, Marketplace, and Insurance, aiming to tailor solutions for the local clientele. These responsibilities were previously managed by Jag Duggal, who will be stepping down from the Chief Product Officer role in early April to serve as an external advisor to the management team. His position will remain unfilled.
The search for a new Chief Legal Officer is underway following a vacancy since February, with an appointment expected in the months ahead.
This strategic move by Nu Holdings is designed to adapt to the evolving needs of its consumer base and the dynamic digital banking landscape. The company has pledged to keep the market updated on future developments. With analyst price targets ranging from $9 to $18.90 per share, investors seeking deeper insights into Nu Holdings’ potential can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, which are available for over 1,400 US-listed companies.
This information is based on a press release statement from Nu Holdings Ltd .
In other recent news, Nu Holdings Ltd. reported fourth-quarter revenue of $2.99 billion, surpassing analyst expectations of $2.74 billion. Despite this earnings beat, the company experienced a decline in net interest margins, contracting by 70 basis points to 17.7%, which overshadowed the positive revenue results. The company’s net income was $552.6 million, marking an 85% increase year-over-year on a foreign exchange-neutral basis, with an annualized return on equity of 29%. Total (EPA:TTEF) deposits rose by 55% year-over-year to $28.9 billion, and the lending portfolio more than doubled to $6.1 billion.
In analyst updates, Citi maintained a Sell rating on Nu Holdings with a price target of $9.00, citing the company’s growth in deposits and loans despite seasonal trends in Mexico’s banking sector. Meanwhile, BofA Global Research analyst Mario Perry maintained a Neutral rating with a $14.00 price target, noting the company’s asset quality improvements but also highlighting the challenges posed by a 13% devaluation of the Brazilian real. Perry pointed out that Nu Holdings’ revenue growth slowed to its lowest pace in several years, impacting the company’s risk-adjusted net interest margin. The company’s strategic expansion in Brazil’s high-income segment saw its Ultravioleta customer base grow by 132% year-over-year to nearly 700,000 customers.
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