Nu Holdings Ltd. (NYSE:NU) moved higher in premarket trading on Thursday after announcing a new share repurchase program worth up to $1 billion, underscoring management’s confidence in the company’s capital position and long-term growth strategy.
Shares of the Brazilian digital banking group rose 1.9% following the announcement.
Board Authorizes Major Repurchase Program
The company disclosed that its Board of Directors has approved a buyback initiative that will run for up to 12 months beginning June 4, 2026.
According to Nu Holdings, the decision reflects the company’s disciplined approach to capital allocation as its operations continue to generate significant excess capital.
Management believes repurchasing shares represents an attractive opportunity to deploy capital while continuing to support future expansion.
Growth Investments Remain Fully Funded
Nu emphasized that the repurchase program will not affect its investment plans across key markets, including Brazil, Mexico, Colombia and the United States.
The company stated that all strategic growth initiatives remain fully funded, including investments required to support business expansion and regulatory capital requirements.
Management noted that capital buffers and operating plans remain unchanged despite the launch of the buyback programme.
Flexible Approach to Share Repurchases
The company said purchases may be executed periodically through open-market transactions in accordance with Rules 10b-18 and 10b5-1 under the Securities Exchange Act of 1934.
Nu Holdings also clarified that the authorization does not require the company to repurchase a specific number of shares.
The program may be adjusted, paused, extended or terminated at any point depending on market conditions, capital requirements and other strategic considerations.
Confidence in Long-Term Financial Strength
The announcement highlights Nu Holdings’ growing financial flexibility as it continues to expand its digital banking platform across Latin America and beyond.
By combining ongoing growth investments with a substantial share repurchase authorization, the company aims to balance shareholder returns with its broader expansion strategy while maintaining a strong capital position.