Nu Holdings shows strong growth and value with 29% ROE and expanding loans despite short-term earnings pressure.

Nu Holdings reported robust growth with a 29% return on equity and an expanding loan portfolio, signaling strong profitability. Despite some short-term earnings volatility due to higher expected credit losses and a declining ROE, the company's Q1 revenue and customer base grew significantly. Its forward price-to-earnings ratio near 14x is near all-time lows, presenting a compelling investment opportunity given Nu's market leadership and growth potential. Rapid scaling and early profitability in Mexico, especially in cards and unsecured loans, support a positive long-term outlook.