This report does not constitute a rating action. ALAC--Additional loss-absorbing capacity. CRA--Comparable ratings analysis. GRE--Government-related entity. ICR--Issuer credit rating. SACP--Stand-alone credit profile. Overview Key strengths Key risks A solid market position with a sticky--and growing--customer base. Product portfolio remains concentrated in credit cards and personal loans in Brazil. Strong profitability due to sound net interest margins (NIMs) and cost efficiency. Rapid expansion in Brazil and in other geographies with varied regulations, cultures, and banking penetration levels. A stable funding base from retail deposits, which is less volatile than wholesale sources. Competition in the Brazilian banking sector could pressure operating revenues. Nubank's market position has been bolstered by portfolio, customers, and strong profits growth. Nu Holdings Ltd. (thereafter Nubank when referring
