Summary by Futu AI
Nu Holdings Ltd., also known as Nu, announced on December 29, 2023, that the Brazilian Central Bank has granted approval to Nu Pagamentos S.A. for the implementation of the Alternative Standardized Approach (ASA) methodology. This new methodology, effective immediately, replaces the Basic Indicator Approach (BIA) for calculating risk-weighted assets and operational risk capital requirements for Nu Brazil, the prudential conglomerate of Nu Pagamentos in Brazil. The adoption of ASA is expected to reduce Nu Brazil's operational risk capital requirements. An illustrative example showed that if ASA had been applied at the end of September 2023, Nu Brazil's required capital would have decreased by USD 152 million, and its capital adequacy ratio (CAR) would have been 12.5%. The report also noted that Nu Holdings held excess capital of USD 2.3 billion as of September 30, 2023. The company has invited shareholders and interested parties to contact their Investor Relations or Media Relations departments for further information.