February 28, 2024

Nubank became the second largest bank in Brazil by market capitalization

Nubank overtook Bradesco, Banco do Brasil and Santander, to become the second largest bank in Brazil by market capitalization last Tuesday (23rd).

Also Read: Working at Nubank: Bank opens vacancies with massive list of benefits!

Even with this achievement, the bank is still far behind Itau, which is valued at $49.1 billion, while the digital bank has reached $32 billion.

With an approximate value of $31.5 billion, Bradesco ranks third in the market capitalization ranking, followed by Banco do Brasil at $25.5 billion, and Santander, at $21.6 billion.

The position of the second largest bank in the country came after the recovery

After facing a decline in its shares since their IPO on the New York Stock Exchange, Nubank is now showing a path to recovery, overtaking Bradesco, Banco do Brasil and Santander by market capitalization.

Looking at Tuesday’s close, when Nubank shares ended the trading session at $6.85, the bank’s market capitalization was over $32 billion (about R$159.4 billion). Plus, shares of Nubank have accumulated 92% this year alone.

Although it is still behind Itaú, which is the largest bank in Latin America, Nubank has shown significant growth. Since reaching the price floor in June 2022, the digital bank has more than doubled its market capitalization and has overtaken some of the major traditional banks in the country.

This is because Nubank has delivered positive operating results in recent quarters, shifting analysts’ views regarding the bank. Strategic changes, such as the hiring of investor relations specialists and compensation adjustments, have contributed to this recovery.

In the first quarter of 2023, Nubank reported adjusted net income of $182.4 million, showing a significant improvement over the same period in the previous year.