Glossary

Activity Rate is defined as monthly active customers divided by total number of customers as of a specific date.
Boleto (banking payment slips) means a printable document issued by merchants and used to make payments in Brazil.
CAC means customer acquisition cost and consists of the following expenses: printing and shipping of a card, credit data costs (principally consisting of credit bureau costs), and paid marketing.
CDI Rate means the Brazilian interbank deposit (certificado de deposito interbancário) rate, which is an average of interbank overnight deposit interest rates in Brazil.
Credit Loss Allowance Expenses/Credit Portfolio is defined as credit loss allowance expenses, divided by the sum of receivables from credit card operations (current, installments and revolving) and loans to customers, in each case gross of ECL allowance, as of the period end date.
Customers are defined as an individual or SME that has opened an account with us and has not been charged-off, or blocked, or has voluntarily closed their account.
ECL or ECL Allowance means the expected credit losses on our credit operations, including loans and credit cards.
First Payment Default means when the first scheduled payment by a customer remains unpaid as of the 10th day after it becomes due.
FX Neutral measures refers to certain measures prepared and presented to eliminate the effect of foreign exchange, or “FX,” volatility between the comparison periods, allowing management and investors to evaluate our financial performance despite variations in foreign currency exchange rates, which may not be indicative of our core operating results and business outlook.
IASB means the International Accounting Standards Board.
IFRS means the International Financial Reporting Standards, as issued by the IASB.
Interest-earning Portfolio consists of receivables from credit card operations on which we are accruing interest and loans to customers, in each case gross of ECL allowance, as of the period end date.
Lifetime Value or LTV is the estimated lifetime value of our customers. This is based on the present value of estimated contribution margin generated by a customer during the lifetime of a customer’s relationship with our business. We calculate LTV based on the following key assumptions: (1) 12% per annum as the discount rate applied to the projected stream of contribution margin generated by a customer; (2) estimated lifetime capped at 10 years; and (3) growth and churn estimates based on historical analysis across our cohorts and estimated inflation rates.
LTV/CAC means the ratio of lifetime value to customer acquisition costs and is calculated as the lifetime value divided by our customer acquisition costs. We use this metric to assess return on marketing spend and other costs to onboard new customers.
Monthly Active Customers is defined as any customers that have generated revenue in the last 30 calendar days, for a given measurement period.
Monthly Average Cost to Serve per Active Customer is defined as the monthly average of the sum of transactional expenses and customer support and operations expenses (sum of these expenses in the period divided by the number of months in the period) divided by the average number of individual active customers during the period (average number of individual active customers defined as the average of the number of active customers at the beginning of the period measured, and the number of active customers at the end of the period).
Monthly Average Revenue per Active Customer or Monthly ARPAC is defined as the average monthly revenue (total revenue divided by number of months in the period) divided by the average number of individual active customers during the period (average number of individual active customers defined as the average of the number of active customers at the beginning of the period measured, and the number of active customers at the end of the period).
Net Promoter Score or NPS is a widely known survey methodology that measures the willingness of customers to recommend a company’s products and services.
NuAccount means the Nu bank account we offer to our individual and SME customers; “Personal NuAccount” means the Nu personal bank account we offer to our individual customers; and “SME NuAccount” means the Nu business bank account we offer to our SME customers.
Organic customer growth is calculated as new customers acquired without incurring direct paid marketing expenses. An organic customer is one who comes to our website or app without clicking on an advertisement link. This includes both customers who directly come to our website or app, or who were referred to us by an existing customer. An inorganic customer is one who comes to our website or app through a paid channel or campaign (e.g., by clicking on an online advertisement).
PIX means the instant payment arrangement launched by the Central Bank of Brazil in 2020 that allows real-time payments and transfers.
Primary Bank or Primary Banking Relationship refers to our relationship with those of our customers who had at least 50% of their post-tax monthly income move in or out of their NuAccount in any given month. We calculated the percent of customers with a primary banking relationship as active customers with a primary banking relationship as a percentage of total active customers that have been with us for more than 12 months.
Purchase Volume or PV is defined as the total value of transactions that are authorized through our credit and debit cards only; it does not include other payment methods that we offer such as PIX, a payment system that allows real-time payments and transfers launched by the Central Bank of Brazil, WhatsApp payments and traditional wire transfers.
SELIC means the Brazilian Special Clearance and Custody System (Sistema Especial de Liquidação e Custódia).
SELIC rate means the Brazilian interest rate established by the SELIC.
SMEs means micro and small business accounts.