A survey was carried out on the impacts of the new coronavirus on the economy and Nubank, which is one of the favorite banks of Brazilians, has its future uncertain, as do many other banks.
In fact, the great impact of the new pandemic coronavirus (Covid-19) has shaken the foundations of many social powers. Therefore, we know that this will be a constant national and international effort in the coming years. Given this reality, measures must be taken.
THE Standard & Poor's (S&P), conducted research on the impacts of the new crisis, and unfortunately, we don't have good news. Standard & Poor's is one of the largest credit rating agencies in the world. According to the institution's researchers, the long-term rating outlook for the purple one has changed from stable to negative.
If you're not familiar, a rating is a grade that credit rating agencies assign to an issuer. This is based on its ability to repay a debt.
According to the fintech, the assessment is normal given the current risk situation. Nubank also stated that its financial strength was emphasized and that it has the resources to weather the coronavirus crisis.
Crisis makes Nubank's future uncertain
But don't despair, the impact on Nubank, will only be felt in the long term and in a manner that is still unknown, experts say. Short- and medium-term operations and processes remain unchanged, according to S&P.
Another important piece of information to be highlighted by the agency is that despite the exponential growth recorded by Nubank in recent months, economic conditions will have a real impact on the ability of financial institutions to continue their trajectories of surplus earnings.
It's worth remembering that Nubank has excellent and robust liquidity and capital levels to manage its business. This has proven effective, even during the current shutdown of the commercial and service sectors across the country.
However, having few products can also be the purple company's salvation, as it won't have as many ventures to manage as other banks and fintechs. Therefore, Nubank's future is uncertain.
Final considerations on the damage caused by the new coronavirus
As far as we know, only in 2019, Nubank recorded a loss of R$313 million, despite an increase in the number of customers. In 2018, there were 5 million, and in 2019, there were 20 million new customers.
But here's a tip: if you're going to invest, invest in banks that have been in the market longer and have survived other crises!
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