Yahoo Finance

• Total Clients: 35 million clients, with 1.1 million new active clients this quarter.

• Activation Rate: 56%, the highest since Q4 2021.

• Business Accounts: Increased by 22% year over year, reaching 2.2 million.

• Total Payment Volume (TPV): Increased by 46% year over year, reaching BRL320 billion.

• Interchange Revenue: Increased by 38% year over year.

• Consumer Finance 2.0 Portfolio: 52% increase, reaching BRL503 million.

• Marketplace GMV: Grew 59% year over year, reaching BRL1.4 billion.

• Assets Under Custody (AuC): Surpassed BRL122 billion, a 50% increase year over year.

• Insurance Sales: Surpassed $1.3 million, with 115% year-over-year growth.

• Loan Book Growth: 7% growth, surpassing BRL38 billion.

• Credit Card Growth: 25% growth on an annual basis.

• Gross Revenue: BRL2.7 billion, a 25% year-over-year growth.

• Net Revenue: BRL1.6 billion, a 32% year-over-year growth.

• Net Income: BRL260 million, 2.5 times higher than the previous year.

• Return on Equity (ROE): 11.9%, reaching double-digit for the first time.

• Efficiency Ratio: 50.7%, or 48.6% excluding Inter Pag.

• Warning! GuruFocus has detected 2 Warning Signs with INTR.

Release Date: November 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Inter & Co Inc (NASDAQ:INTR) reached 35 million clients, with a significant increase in activation rates, highlighting strong customer engagement.

• The company reported a 46% year-over-year increase in Total Payment Volume (TPV), indicating robust transaction growth.

• Inter & Co Inc (NASDAQ:INTR) achieved a record-breaking ROE of 11.9%, showcasing strong profitability improvements.

• The company's hyper-personalization strategy is driving higher conversion rates and sales, particularly in their marketplace and insurance verticals.

• Inter & Co Inc (NASDAQ:INTR) is expanding its global reach, with significant growth in assets under custody and a strong presence in the US market.

Negative Points

• The integration of Inter Pag resulted in increased expenses, impacting the company's efficiency ratio.

• Despite growth, the company faces challenges in maintaining cost control, particularly in personal expenses due to increased hiring and compensation.

• The Consumer Finance 2.0 portfolio, while growing, requires cautious management due to potential macroeconomic risks.

• The company is experiencing an uptick in NPL formation due to regulatory changes, which could impact future financial metrics.

• Inter & Co Inc (NASDAQ:INTR) needs to carefully manage its expansion strategy to avoid overextending resources, especially in new international markets.