Buffett-backed Nubank reports record revenue on steady user growth

Nubank, a Brazilian FinTech startup celebrates the company's IPO at the NYSE in New York

(Reuters) - Brazil's Nubank on Monday reported record revenue for the first-quarter as the digital bank benefited from steady growth in users and higher average revenue per customer.

Warren Buffett-backed Nubank has so far been insulated from the downturn in the global banking sector as consumers in its key domestic Latin American market continue to gravitate towards its credit cards and personal loans.

Banking industry globally has seen heightened volatility after two mid-sized U.S. lenders collapsed in March as depositors withdrew funds in search of higher yields and safer, "too-big-to-fail" institutions.

U.S.-listed shares of Nubank have climbed 50% so far this year, rebounding from a steep sell-off which led to the stock losing more than half its value last year.

"We have an exceptional capital position and excess liquidity, operate a low-cost platform, and continue to increase our product portfolio and customer engagement," Chief Executive Officer David Vélez said in a statement.

Nubank added 4.5 million customers in the first-quarter ended March 31, taking the total count globally to 79.1 million, a 33% growth from last year, the bank said.

Monthly average revenue per active customer (ARPAC) increased to $8.6, expanding 30% from a year earlier on FX-neutral basis.

The bank's gross profit rose 124% to $650.9 million in the reported quarter on FX-neutral basis, while total revenue nearly doubled to hit an all-time record high of $1.6 billion from a year earlier.

On an adjusted basis, the bank reported a net income of $182.4 million, compared with $10.1 million a year earlier.

(Reporting by Manya Saini in Bengaluru and Peter Siqueira in Sao Paulo; Editing by Vinay Dwivedi)