By Kylie Madry

MEXICO CITY, May 14 (Reuters) - Brazil's Nubank on Thursday posted first-quarter net income below analyst expectations as higher provisions linked to rapid loan growth weighed on earnings, while its Mexico business reached break-even for the first time.

Nu Holdings reported net income of $871.4 million, below an analyst estimate of $980 million. Revenue rose to $5.3 billion, topping expectations of $4.5 billion.

Chief Financial Officer Guilherme Lago told Reuters the profit shortfall was tied to faster credit growth, which forced the company to recognize provisions upfront. Nubank's total credit portfolio rose 40% year-on-year to $37.2 billion.

Its 15-90 day non-performing loan (NPL) ratio rose to 5.0% from 4.1% in the previous quarter, though Lago said the increase reflected first-quarter seasonality rather than worsening asset quality. The 90-plus day NPL ratio fell slightly to 6.5% from 6.6%.

Nubank ended March with 135.2 million customers, including more than 15 million in Mexico, where the business reached break-even for the first time.

The company also said it would take a measured approach to expansion in the United States, with investment capped at under 100 basis points of its consolidated efficiency ratio in both 2026 and 2027.