Nu Holdings expects cost structure advantage to help it compete in the U.S.

Nu Holdings Ltd (NYSE: NU) saw its revenue climb a whopping 64% in Q1. Still, David Velez - its chief executive is convinced the company has massive room for growth moving forward. 

Nu Holdings CEO on Q1 earnings

The online bank added 5.5 million customers to hit the 100 million mark in its first quarter. Still, CEO Velez said on CNBC’s “Squawk Box” today:

Nubank ended its recently concluded quarter with $24.3 billion in total deposits that helped improve its loan-to-deposit ratio to 40%. 

You can read its full earnings release on this link. 

Nubank may do well in the U.S.

Customer growth continues to be strong at Nu Holdings primarily because it’s “delivering a product that is higher quality at a lower cost, as per the chief executive. 

In fact, the financial technology company has a more than 80% cost structure advantage over an average U.S. bank, he added in his interview with CNBC on Wednesday. 

Nubank lifted its gross profit margin by some 300 basis points to 43.2% in Q1. Wall Street currently has a consensus “overweight” rating on Nu Holdings stock.