Nubank (NU) announced an agreement to acquire Banco Porto Real de Investimentos, a bank founded in 1992 in Porto Real, Rio de Janeiro, that operates in the extension of credit to wholesale clients. With this move, which will be submitted for approval by Brazil’s Central Bank, Nubank meets the requirements of Joint Resolution No. 17, issued by the Central Bank and the National Monetary Council or CMN, which regulates the naming of financial institutions. Once the acquisition process is completed, Banco Porto Real’s banking license will be added to the other licenses under which Nubank already operates and that fully serve its business model: Payment Institution, a Credit, Financing, and Investment Company and a Securities Brokerage Company. The addition of this new license to the prudential conglomerate of Nu Pagamentos imposes no additional capital or liquidity requirements. For Nubank’s 115 million customers in Brazil, nothing changes. In March, Nubank joined the Brazilian Federation of Banks. For this year, the company also announced R$45B in investments in the domestic market, nearly double the amount of the past two years.
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