Dec. 26 at 8:17 PM
The kings of efficiency, NUBANK🔥
I'm going to explain the "Efficiency Ratio" simply so everyone can understand it. 5-minute read. RT appreciated!
$NU has revenue from two sources:
-Interest it charges on the various loans it issues. This accounts for 86% of revenue.
-It also has revenue from what they detail as fees and commissions ("Fee and commission"). These are basically the revenues
$NU earns from the use of its products, for example: a person uses the credit card at a store, and that store pays
$NU a commission.
These revenues come with an associated cost, of which 85% are interest expenses that
$NU pays on the deposits people have in its app.
This gives rise to net revenue, which you can verify in the chart in dark purple at the value of
$2,896.9MM......
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