Is NU (Nu Holdings Ltd.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, NU is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 2 of 4 compliance screens. Nu Holdings Ltd.'s core business activity was found to be non-compliant. Its interest income of 86.73% exceeds the ≤5% limit.

Nu Holdings Ltd., commonly known as Nub ank, is a leading digital banking platform disrupting the financial landscape in Brazil, Mexico, and Colombia. The company serves millions of customers through its mobile-first ecosystem, offering products like the Nu and Ultraviolet credit cards, personal and business accounts, and investment solutions. Unlike traditional brick-and-mortar banks, Nu operates entirely online, leveraging technology to provide lower fees and greater accessibility to financial services in Latin America. For Muslim investors using HalalStocks.co.uk, Nu Holdings is classified as Not Halal (Haram) under AAOIFI standards. The primary issue lies in its core business model; as a diversified bank, the vast majority of its operations revolve around lending money for interest, which is strictly prohibited (Riba ) in Islamic finance. Although the company passed the financial ratios for debt and liquidity, the business activity screen resulted in an automatic failure due to the nature of the banking industry. Financially, Nu presents an interesting but non -compliant profile. The company's interest income accounts for a staggering 86.73% of its total revenue, far exceeding the permissible 5% threshold for non-compliant income. While it maintains a very healthy balance sheet with debt at only 1.1% of its market capitalization—usually a positive sign—this cannot override the fact that the revenue itself is generated through impermissible means. Investors should note that while fintech companies often blur the lines between technology and finance, Nu's reliance on interest income places it firmly in the conventional banking category. Unless the company pivots significantly towards fee-based services or strictly Shariah-compliant financing structures, it remains unsuitable for halal investment portfolios. Nu Holdings Ltd. operates in the Financial Services sector under the Banks - Diversified industry and is headquartered in São Paulo, SP, BR. The company is led by CEO David Velez-Osomo and employs approximately 5,403 people.

NU was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. NU passed 2 of these 4 screens.

NU was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.