According to a Bloomberg report citing people familiar with the matter, Nu Holdings is exploring the acquisition of U.K.-based Monzo Bank.
- The report, which cited people familiar with the matter, said the potential deal could value Monzo at around £8 billion ($10.8 billion) to £10 billion ($13.5 billion).
- Nu does not have a presence in the U.K. or Europe at the moment.
- The acquisition of Monzo, which boasts more than 16 million customers, could give Nubank a foothold in European markets.
Shares of Nu Holdings Ltd. (NU) fell 0.6% in the premarket session early Monday, even as reports emerged that the Brazilian digital bank is looking to acquire U.K. digital bank Monzo Bank Ltd.
According to a Bloomberg report citing people familiar with the matter, the potential deal could value Monzo at around £8 billion ($10.8 billion) to £10 billion ($13.5 billion).
Nu Holdings and Monzo representatives did not immediately respond to Stocktwits’ request for comment.
Nu-Monzo Deal Contours
Nubank has been expanding its footprint across Latin America, with about 135 million customers already in the region, while it explores options in the U.S.
The Brazilian fintech company does not currently have a presence in the U.K. or Europe. Acquiring Monzo, which has more than 16 million customers largely in the U.K., could give Nubank a foothold in European markets.
Monzo, with a latest valuation of £4.5 billion through a secondary share sale in 2024, has been exploring an initial public offering and additional secondary share sales to return money to investors, many of which are venture capital firms, according to the report, which cited Sky News.
Bloomberg’s report also said Monzo is considering alternatives to an acquisition by Nu Holdings, including a new funding round. The proceeds would likely fund expansion in Europe.
Analyst Stance On NU Stock
Meanwhile, research firm Northwise Project said in a post on X over the weekend that NU’s 2030 earnings “look acceptable” under two scenarios, although shareholders are likely to experience “very different years getting there.”
The firm said that in its September Bear case, the Brazilian bank would remain profitable but earn less from its growth. “The Stress case produces a roughly $4.3B loss in 2027, stops repurchases and forces capital preservation into the plan. Both eventually return to positive earnings,” it said.
Northwise added that Nu’s 2027 loss matters to what the bank can afford afterward. According to the firm, it could potentially change lending growth, distributions, and the time needed to rebuild capital. “The earnings number at the far end of the forecast leaves much of that experience out,” it said.
In the second quarter, Nu Holdings posted revenue of $5.88 billion, up 39% year over year, and gross profit rose 43% to $2.44 billion, with net income reaching a record $1.06 billion.
For the quarter, the digital bank’s total credit portfolio grew 37% year over year to $39.4 billion, while deposits rose 18% to $45.3 billion.
NU Stock: Retail Stance
On Stocktwits, retail sentiment around NU stock was ‘bearish’ at the time of writing, with message volumes up 111% over 24 hours, according to platform data.
One user said, “$NU I think this move on Monzo could be great long term but expect further pressure on the stock if the acquisition goes through.”
NU stock has lost about 20% of its value in 2026.
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