Brazilian digital lender Nu Holdings reported net profit of $1.06 billion for the April-June quarter, surpassing the $967.2 million analyst estimate and marking the first time the company has topped $1 billion in a single quarter. Net revenue rose 39 per cent to $5.88 billion, above the $5.60 billion consensus, while its credit portfolio grew 37 per cent year-on-year to $39.4 billion, Reuters reports.

Shares jumped 9 per cent in extended trading to about $15.25 each. The profit growth was driven by higher revenue and an improvement in risk-adjusted net interest margin, Chief Financial Officer Rob Livingston told Reuters. Early delinquency rates rose 0.3 percentage point year-on-year to 4.8 per cent but fell from 5 per cent in the first quarter.

Cost of credit, which had weighed on shares the previous quarter, declined to $1.69 billion from $1.79 billion but remained 60 per cent higher than a year earlier. Livingston said Nubank benefited from Brazil's Desenrola debt-refinancing program launched this year, though he said improvement would have occurred even without it, accounting for only about 5 per cent of the bank's total cost of credit, Channel NewsAsia business reports.