INTR - Earnings call transcript Q4 2024

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Operator

Good afternoon, and thank you for standing by. Welcome to Inter & Co's Fourth Quarter of 2024 Earnings Conference Call. Today's speakers are: Joao Vitor Menin, Inter's Global CEO; Alexandre Riccio, Brazil CEO; Santiago Stel, Senior Vice President and CFO. Please be advised that today's conference is being recorded, and a replay will be available at the company's IR website. [Operator Instructions] Throughout this conference call, we will be presenting non-IFRS financial information. measures defined company, by financial financial are important as measures IFRS. are for but the not These Reconciliations of Co's the forward-looking performance. IFRS earnings financial company's appendix. Today's statements, non-IFRS financial are presentation guarantees in information which available are Inter of might & discussion earnings not and information release include to future the to refer earnings disclosure statements presentation. company's the Please in forward-looking the and earnings release

to Vitor yours. would like yield Menin. the I to Joao the Now Mr. is Sir, floor floor

João Vitor Nazareth Teixeira de Souza

joining for for our Quarter you, operator. Thanks Thank very call everyone. This Call. earnings a me. Fourth is Hello, Earnings special

Let is we the we we our all entire also right than me when in of bank than a success net tell history you more XXXX in first our that more this why. which was prior It This path. years XXXX in year in launched repeat Brazil. back income confidence delivered are model, alone, combined. we strong business combined. designed the I gives will the I that me profits digital believe of proof

financial Xandre Following and the operational and for the will quarter cover remarks, and year. Santi my results

power effect. Our new profitability, resulting network growth business cycle beauty and cycle. has a creating positive reinforced how model combined in a platform, it works. the of of the virtual is the Each This

more product combined The the attract we clients with become. clients. offering, complete engage have, Our efficient a us best-in-class help and UX more we

to increase products and keep us us our strong capital-efficient to competitively. allow growing in together Our price this profitability ROE. share profitability in structure we Operating with low-cost innovating. manner, And services, enable a

XXXX, platform highlights a the of cycle into the repeats As becomes provide stronger itself, few and year. me this let stronger. Jumping

new front, with now digital made underwritings. we offering, the than more our On which XXX% XX% progress of credit the accounts for payroll significant

scaling within penetration continued aim our increase current portfolio and our X.X Consumer rate to also Finance clients. We the

and tips, who Inter stay of Forum launched has millions millions and investment now products, share products. Regarding XXXX news users updated in QX on

Our on had redeeming an year in expanding clients. our outstanding the were surpassed points code commerce which and combining finance. for is has commerce and Loop, we million crack XX earning options program, platform with its able to loyalty

discuss XXXX, Now reached By let expansion. X.X success to million moment we take end our global This of global clients the our comes proposition. attractive our a using me account. value from

invest, Our and money to more. make very easy travel, global internationally account it send

cards our Rui We also offerings expanded the new last the was Leandro of capabilities. Bacchin highlight our a of on board Monica talents also skills Marcelo the credit and side. our and Dantas the on team. enhancing came being team, our with and launch welcoming joined year Business dollar December. XXXX to Fernando Saccarelli Finance

Payroll our is Our middle Gui Vitoria Ximenes, year. CTO who in the newest and now Real Marco and loans. the expanded became digital Head of role Brazil's Legal. since last Chief held Queijo our joined the the Global IR of Antonio now hire, our Information Flavio to the promoted as his stepping of CEO Estate Araujo, portfolio, He was Rafaela is our bank responsibilities the also And Officer. new Xandre December. manage CIO FGTS as Officer. launch

Allen, On Stanley, side, Morgan added the Banker. former we Senior Board Jim

our executed and as ALM. Ferrari, advised Advisory successfully Head Brazil, Fernando of on while former and platform. conclude, year the the To Nicola of is Advisor which plan, key the to we us on side, continue Calicchio, innovating to our Additionally, team, X/XX/'XX second McKinsey's helping Senior growing executive us is a Treasury

over it please who hand to will on details provide like to I'd Xandre, ahead. go the Xandre, business more Now side.

Alexandre De Oliveira

update I'll our you together through of Super platform. thank and you, business an joining X Thank build App verticals, today. for go our Joao. Hello, us everyone, which

using is our created investments, for welcomed increase million market finish clients, customers we're our financial our We a each on services, a across loyalty us, and As virtuous insurance, over said, quarter. more than XX engagement XXXX active and boosting all This X us year, our the clients tied more Super marketplace adding we while have enables and our to by actively than million proud year, Throughout account, clients key together program. the network Loop, continuously credit, with activation clients XX% share. Attracting with App finished cycle, we Joao priority to X a achieving powerful products new global activation. million one successfully cross-sell rate. effect effectively more

engagement of high Our business X.X clients and levels. grew by reaching They ARPAC total million. a show increased year-over-year, XX%

next the to moving slide. Now

our deeper 'XX. points Let's XQ X.X run Transactions BRL has reaching market X.X%. in into the year. the totaled PIX made In BRL Inter basis reaching for XX year-over-year, XX% by take trillion increased trillion quarter, gained a rate through fourth PIX in TPV look an verticals. Banking, In additional share, X.X

card between continues and debit to to revenues. growth, increasing higher leading levels transaction than mix newer growth and more volumes card is clients. surpassing other transacting TPV across credit clients cohorts Our faster credit transaction improve with interchange steadily debit with

Finance seeing Credit PIX slow million, scale need these our XX% perspective, Buy includes quality to portfolio XXX the started Pay BRL want Financing; from portfolio, we from to On Now, front, this Later; almost down at stands We and credit performance underwriting. to growth X.X highlight the products Consumer We're this year Overdraft. a which consistent it a the eliminating now quarter-over-quarter. and

card as allowing risk cautious opportunities to limits we we to While evolve, to continue us better our in understand our clients. credit found appetite, models our remain underwrite

clients limit. the card due salary them have [ direct appropriate hub provide Inter, these step-by-step journey, launch bringing their deposits to of their credit We can to the steps. follow of before And allocate we enough earn behavior, involve steps of like more. by a actions credit data the the complete as was card bills paying as date end small limits us. clients with These client to credit and limits with Speaking another journey year innovation where this called CLIN, ] the our

the million. Investments AuC that slide, on Moving to active XX% increased next yearly on a with see basis we over to clients growing by X.X

of had we achieved we which AuC. in this share growth One the Treasury that highlight For consecutive in number is record Direto, Tesouro is the Brazil quarter, of XX% market Direct. quarter investors of second

Insurance, opportunities. Insurance. reached typically can Buy hyper-personalization performance XX% X side products, clients. revenues, next than talk page, remarkable X reached more highlight year 'XX, combination BRL a vertical achieving enables who significant serve our we cost low fourth charts ticket Now, unique of year-over-year active global X our of unsecured of XX% Sortezinha this balance million the next year-over-year recurrent journeys. page, is contextualized higher from left-hand cross-selling our expansion growth generated an ], GMV income reinforcing active through income of year. We with net the all the contracts units more million X typically We in that I'll we and clients, interest [ our strategy we operations. In the growth XX% growth done a was XX% products The The full year. the clients, exciting XXX% Within base. million Brazilians GMV in Life within increased revenues than X raised nearly generating targeting about introduction attract the credit journeys. X.X with offered in this had growth taking in growth. offered the while deposits our we show travel in leverage higher-margin the In This involves but by -- active Pay Later, right save continuous platform. Shifting money sold marginal also us which was On in to marketplace, advantage the bar product our of U.S. that across XXXX. quarter, that and the integrated X% to X to X and that The We over in penetration This billion quality existing achieve and and with vertical, with reached on million fee FGTS, our we

on card, the our points purchases debit Recently, offering our investment We product dollar the for account. launched into U.S. products and by dollar-denominated continue replicating we credit the evolving products. U.S. new Brazilian cards,

set continues Loop, the continue a million that over potential burn XXXX marketplace, our On the products. and we've to redeem our which about platform. In Clients Loop redeem consistently transfer Insurance ways products. for friends, extra family with our people reached been of for the points for few benchmark that we the to talk and PIX to now for more. seventh a among PIX in the purchases with earn show page, points. vertical. and evolution able in can use market XX we active talk and are evolve points about next our who in cash we next to Clients X.X%, and on clients most those to We deliver finished slide, engage of share, back market be among ambition some of within market are share share other points

the We products strategic are loans; Three excited engagement transactions, our that and nonbanking for in and are balance of banking equity our in home both and the highlights evolution, products. FX FGTS with portfolio profitability. are

see why how to overall explains much in access and a share is positive operating and of next that improved continue [ section for facilitates enhanced good so client efficiency. having clients markets why part We our are share, activating confident the and sustain client trends. We're our in showing We're base this and our continuous it Strategies the sales to stamps, moving we'll hyperpersonalization on a our key retaining room with like have optimized confident slide. I have product expanding part of evolution, market, capacity proposition fast. enormous finished are service value and our to to business grow. we ] large

word the the section. I would to to will like who through financial Now us Santi, pass take

Santiago Stel

you, everyone. and hello, Thank Xandre,

performance. Starting our book. capital year jump our optimizing our Let's allocation This financial loans. into focused was with the into on another loan

above and we been mainly driver. Personal and our and starting FGTS main home billion progress Our XX% highlights ROEs being digital NIM. have grow a year-over-year XX% portfolio growing the In crucial mix XX% credit improving showcasing Both the appetite and the XX.X a expanding each. equity quarter-on-quarter in the XX billion, credit with loans surpassed growth, underwriting cards, being reached loans, highest in underwriting. to by year-on-year our BRL is XX% noncollateralized with payroll growth products have with and these our BRL

we nearly gaining success to cards terms of runoff portfolio Credit see our Meanwhile, thanks market, that and acquired of approximately home while growth, is grew real the of reaccelerating the also share. market, here grew equity growth products. twice our relative metrics. quality most improving we in the personal as payroll. all our as asset the the market twice market despite of digital fast estate as In significant FGTS, and outpaced can the

the third strong the progress across our and this we made in very and of days XX our evolution ratio due quarter ago. On for quality continue We which In is improving formation older, card NPLs days the mix, NPLs cost one standing to even which concluded reduced in than in The page, our with models the XXX%. greater funding NPLs the XX X.X% this in what a consecutive weaker to XX of we growing at increase in the evolution from quarter-on-quarter see X.X%. XX% starting XXXX in performance, the cohorts terms gaining bps stronger to of portfolios decreased improvement collection our coverage processes. analyzed over from are stronger the quality, show decreasing year. XX is when X.X% the mix. We of and key are as XXXX while With model. asset we metric, year-on-year. representation validating of we the of XXX% the stable This prior asset continue see NPLs to business the are BRL representation portfolios credit XX to XXXX the front, presented our our as strengths and NPL on underwriting franchise, Furthermore, underwriting to can XX% year risk decreasing trend seen than picture a X.X% to page. billion funding, started with throughout increased can

X/X in funding our which In to terms we main the have deposits, of our of loan around is cost. driver funding of mix, continue transactional

fourth deposits, at page the shown a stood lowest in us that Our cost relationship the active this clients highlights mix prior of the year, of in in quarter level had with Brazil. the primary us. The funding in line BRL on banking the X,XXX with the record to enables prior industry on of attractive CDI, XX% have funding key In quarters. average it

in total the net in significantly, XX Here, XX%, with fees with very XX% XX%. respectively. performance was X.X line, we also total ended NII a and present On and billion net our BRL billion top net quarterly revenues and revenues. XXXX basis, strong gross year, and over increasing growing grew which gross revenues BRL This

the distribution us accounts net of allows performing which to revenues. continue Our our XX% to fee platform strong on side,

front, of On the BRL higher growth our as our products, focus growth year. we force marking strategies quarter, of the an becoming marketing is higher highlights mentioned. record XX.X already targeted as as last With XX% driving NII a well and clients. on our this Hyperpersonalization credit ARPAC compared behind ongoing higher increasing monetization repricing engagement, monthly to ROE a achieved

in customer between believe a base cycle. as reached BRL on the of per explained this the margin also record economies cost, while our our to of continue increase while scale CTS XX.X ARPAC. client demonstrates ability We mentioned, to our we effectively We gap active virtuous as capturing monetize Joao our and

of net Let's means the which in credit are marginal NIM positive of the showing last an the NIM ROE ago. since trend, strategy our including into X.X, noninterest which increasing we X.X, Both the beginning think, to our the the year. a now noninterest when This deep of year cards compared our significantly receivables is denominator, validation, margins. implemented accruals excludes dive upward and

We faster during under the expenses a on been pace maintaining successful revenue while control fourth in quarter. have increasing

attractive see that the XX.X%. continue be of both while of efficiency journey profitability. improving base As clearly conclude, increasing increasing our can a the cost cross-selling. To by our we Pag, towards working improved Inter now leverage result, operating here Worth ratio on through stands and at which an integration will mentioning revenue we driver

We an have million reaching XXX is BRL to income us tripled on enables start this of year a BRL momentum million position year, annual Quarterly, in the our closing strong our net in ROE income, XXX reaching our strength. an with net consistency and basis. XXXX impressive nearly XX.X% that view, of

share all. to again step his closing you will remarks. Thank Joao Now

João Vitor Nazareth Teixeira de Souza

Thank you year! the a As evolution, momentum. begun, XXXX our it very and we're already know, year just discipline has not with a celebrate much, is to strong What Santi. and consistency, starting To you conclude, results. XXXX

and also our plan. share open the you reaching focused our all quality very to session We XXXX now. reinforcing Brazil, employees of the new operational leveraging are technology executing together. Thank you thank on global asset levels I expansion in on for much. we metrics amazing market strong can like our Thank innovation; you Q&A Operator, and leverage; would achieved all.

Operator

America. [Operator Mario from Instructions] Our first question comes Mr. Pierry from Bank of

Mario Pierry

on right all thought good. the shows results. it initiatives We your Congratulations quite year. the of benefits of It the over was past

really that good have guys you it's So really, doing. been job a

listening the for Let a to a Everybody about much for best. me X% Like about cautious ask to forward, more in the environment looking Joao, rate we've given X% growth been talking XXXX, of banks right? question high you, guiding is and outlook incumbent now Brazil. loan

grow your the I this XX% your to margin I the was also it strategy. to you do to I to asset-liability expect you been continue how So net on to management changes for book in behave from interest you, loan environment? level. And your perspective think rising your in hear rate have ability making you your past, wanted know but negative near

So you on that would about margins if to do growth you think loan expect be us great? can and on update in 'XX, what what

João Vitor Nazareth Teixeira de Souza

compliments the for on the going point. speaking. straight Joao you Thank and Mario, the to earnings

been the been underwriting our we a very cautious bank. that taking the beginning while listening to approach that time, longer the company about For all for credit those know knows since who of and you a of have period call for a earnings have

doing We since that have XXXX. been

credit but market ups a but growth the to Inter in diversified mostly very us unfortunately price cherry clients. had have most very be help and bank. XX% not when to growth said, can that wanted remember, we that and we a or the the everything platform portfolio monoliner. credit to level a or always strong. Also, underwrite very collateralization. on place we portfolio to was We navigate fortunately, Brazil. products be the that our very We We approach, very a only never the design Mario, not credit most established, funding have to in booming, macro, don't our good foresee cost best a of in reduce that this of a to a With on to downs is just don't that monoliner, of able and spike designed market also remember we good have operate. with been That XX%, pick share the but last, need credit not when has of we're of the a we we And market portfolios

to We close X%, X.X%. have

to on We will have the in the market cover with the still a the challenge now Santi years, XX%-ish throughout grow NIMs. addressable on okay? And even macro, big a some XX%, impact

Santiago Stel

for you thank Mario, the question.

are originate beginning the loan year we loans result and more movements on environment the So that, on And now take in rate as a we context working since volatility the ROE working we in mainly been level. the strong have originations of of know, been increasing X NII. environment away an deploying or on disciplined rates, on to will capital of XXXX. And have in a of of NIM a consequence the the marginal hedging or that of duration that, being on the to rising fixed in CDI terms than positive doing of of very as our you to of by marginally in context inflation, rates, interest with financials slightly the have addition positive ROE we

or a of volatile be have is to not we as So basically, that. not volatility what consequence have trying been do to additional

of than stronger in we that out, isolate we coming new loans movement are rates what is the interest the is playing have if book. ROE the back the So of

We ROE mix have of positive as that an higher consequence a the products gaining having impact is loan representation. of

plus in XX% Later, those add our the improvement equity the If you which to overall FGTS newer in but unsecured into is book, Now, addition growing, Buy nearly of credit NII. And Financing an also see are book. Pay now PIX and lines, that, steadily we and home the loan loan have slowly

linear. that we happen of last XXXX, on doesn't had consequence was we that we the all have of consider is the quality a of cost average the end able see risk-adjusted on of job trend the NIM, we year if the to NIMs impact what what last been had you continue of maintaining to No, quarter. It's growth the per even that the most year bps top a about, expect XXXX having quarter. If in from around we which average XX of that to But we together, not the care NIM it in So the growth every per an stronger good beginning quarter. as strong. very call is do of that, risk, of asset to

all change macro the we the into to of XXXX, in coming a So NIMs rate of the of expect that that trend or say, independently in XXXX had we're seeing. don't increasing that we environment

Mario Pierry

Very clear.

summarize, So loan and XX% to further to 'XX, NIM in right? XX% you're growth, comfortable expansion

Santiago Stel

That's correct.

are. We

Operator

Labarta from Sachs. The next Goldman question Mr. comes from Tito

Daer Labarta

We mean, capital at capital core holding, X I a improvement that see on in your bit. numbers questions, a and a Pag just target? you I continued if see a could guess, Inter little how look expense question from you we how slight the paid so ratio we bit had a growth improvements elevated. so have know know I Tier A longer-term is here? And about what's get is base. But it. growth just to in little should couple expense maybe year, efficiency, throws the still XXXX small of XX.X%. first we think 'XX? much then compensates in Or off on could at see I potentially XX% it down to dividend If but efficiency excess this the quarter, the I in that did Just and improvement in expenses can. we to efficiency. incremental you efficiency

ratio to about you capital? excess think how thinking should capital What's you're capital holding? think in at Just do Brazil? how that? about Or how the about And understand the right the we

Alexandre De Oliveira

for on is efficiency Tito, a like bringing then we're that is XX% question. to point Xandre start dive the Santi first X/XX/'XX with our deep your feet the expenses. I'll super speaking. you to ballpark to this and plan. ratio view, And will committed I'd highlight Thank as the XX,XXX per like

if we end on to we'll to reduction in third are by an the pace. the improving. We inflection doing is see And of in we're in this working of compare what XXXX, fourth quarter, we XXXX terms followed So the the keep keep We on and did initiatives. going improved income to cost spike cost in quarter. disciplined

through we're institutionalized income that in targets. each a now. And we deploying in the things XXXX so whether we're one right as to have We center cost it's towards a P&L to of And like cost in the navigate have the it's new engagement these whether company-wide quarters. for all or in that we deploying XXXX area direction numbers the bringing areas, strategies keep example,

Santiago Stel

complementing Tito, Santiago Xandre. here

data performed So were provisioning hit in advertising the the expenses the processing teams We on of different processed then And leash a increased had and that fourth control. the marketing, which tight and think had on expenses the higher-than-average we the goals, expenses that what well. that is quarter, quarter. we personnel of as volume also meeting very had keep services. a expenses, typically able in have third-party variable being which we on their that and app, fourth we more do But was quarter, the very under to we

to And function growth be revenue growth. basis. As going XXXX, the expense overall are absolutely on of a a will everything Alexandre we the said, high-frequency measuring

We able we the have level expense for on base are overall we're on where the in in solving what ahead able of most efficiency flat we to variability to this ROE, to ratio. So the deliver flexibility the adjust be or the metric to we year that order revenue is increase were expense depending expect of finally, fully to the an the is line the X/XX/'XX, and X. metric in keep bottom deliver. And

of So that year the on run X, significant improvement most was we ahead XXXX, Year it NIM. in the actually X. was

a it both For the expect be to deliver of XXXX, combination profitability. we growing to

Daer Labarta

Okay. how the ratio you Brazil the do And capital then about -- think on capital just the in holding? the with and the capital excess at

João Vitor Nazareth Teixeira de Souza

Okay. I Tito, Joao speaking Brazil, dividend. and mentioned here abroad also, on regarding think you capital

So allocate the but while, first of Brazil. a for all, the for we our been in level, has priority how top possible this way best me a at equity, not hold only also

the structure to optimize equity hold We [Foreign have why are IOC that, have reason the paying of and month at designed level. Language] we holdco most every to the that's our

should would our be Brazil, XX% if bps deduct we XXX Regarding NTN-B CETX on position. the at the higher mark-to-market have been --

liquidity, discipline, the we much buying to day, pretty our that the deploying as said, return can want bonds. for we So only much FGTS, to to loans. on quarter-over-quarter. end of as We not We put want bringing on on the Tito, with operation be Payroll in the shareholders. At our more will best flat Brazil treasury keep we our the not capital, want leverage bank

been that's what we recently. doing So have

of the at most So such do as very will capital this likely us pay dividends, of XX% end the that XX%, very, returns we ROE, dividends. about I'm bring optimistic deployment XXXX. On the

the big for As shareholders. is and as a the hand, our most to yield dividends as our the get but growing possible. operations. a portfolio the But thing working yield, X.X%, paid our good we We're to dividend company. innovating growth shareholder mentioned, most we our other still and relevant of we deploying are dividend expanding not actually earnings is still we for This we're today, one, on which announced keep X.X%

this the we our best see how for allocation at it's always capital evaluating allocation the shareholders. thing we what's So are today. that is And Inter a

Operator

next Congrats the question Mr. comes from on results. Gustavo The Schroden from Citi.

Gustavo Schroden

so banks this at the like to you average -- room question ratio still regarding your XX%, the on -- compare still -- with especially large understand loan-to-deposit My that showed banks, the follow-up leverage. is to if increase have NIM. a we of you incumbent first is the or I'd

XXXX? -- we banks? And should loan-to-deposit we So and in believe some is increase what expect think same quality, second terms ratio to asset quality of loan-to-deposit of XXXX risk? in X% Should we level risk [ about of cost question X.X%. for asset ] that is in another ratio incumbent good this What quarter regarding XXXX should in Cost there of my terms and indicators. of the around this NPLs

Santiago Stel

Santiago here. Thank you for the question.

the on to on side, that what terms But upside, on surprise -- of NIM, in growth able as been hard the well continue So predict as the of the to is have both we we in see loan-to-deposit deposit it's to ratio. mix. ourselves terms the rate

the years by, able funding percentage of CI. Now, we've as as mix go challenged we been low-cost the are it. we long that how could the And to keep as mix, keep a -- a

at that investors is having to and we share a to PIX, transactional see the them that because reflected market lot on of continue essence deposits So is of their of App, Super is proxy primarily that, is choose mentioned which Inter. And another what high clients the Inter we which the the of increasing. core

it quarter, to increased This X.X%.

same that to we that had X,XXX I capital, NIM the the that the say something BRL we And in to we would trending together mentioned marginal in client imagine trend would happen XX% ROE-driven to in this loan-to-deposit roughly potentially of in at allocation to stay this deposits the the we expect growth to to continues this all did active closer like ratio with as the So per a going see to level, continue XXXX, up as quarter. prior reaching question.

a have few asset of we terms quality, In playing pieces out.

are hand, we we for On home take accretive, lines, tend allocate to continue marginal risk. risk-adjusted cost better the But which equity real that the unsecured to they and the estate. example, levels, delinquency NIM taking one levels on FGTS, the are certain risk products like, increase of to but do

in which see either we X% cost the or overall, change So XXXX. major we of that in prevails. down a But of those direction in seen we've X will X.X% don't to risk impacts see of up

Operator

The Yuri JPMorgan. next from Mr. from comes Fernandes question

Yuri Fernandes

Xandre this. was And look, I for higher inside detail revenues. on quarter one order tax it's this and the ratio And tax more higher. It Joao, when Santi, on was the sure, a have little higher here revenue. but we the had revenues, on bit on you

question So like a may ask It understand commission. quarter and drove good for the I banking has the shareholders interchange tax what been for fine here if explain second on and sustainable this, not, revenues? And in if line this are commissions, is to you credit fees. and or us a of can is just they doing fees, if on

if you expect see fees color think you I a XXXX, can a, provide paying that on appreciate. And is it, is a I important do are in because just Tito's on dividends. also investors really would for Joao, dividends follow-up for on So this the company. growth what finally, some you to way

you that's inside Your -- the But better not should ROE given up, keep should and the to is growth not good. have? dividend be Inter moving be of able it

Santiago Stel

So thank the on you Yuri, taxes, for there. question

to natural One, factors. in the in this PIS/COFINS growth increase So the revenues. the what led X quarter were

normalize of is paid this this number BRL year. million, as we starting to of paid higher or which we we entire in quarter of IOC, led a first PIS/COFINS, prior quarters that, had take which quarter consequence, a IOC will XXX addition [Foreign close one. bigger a a in XX% in think In quarter the Language] to -- second payment in to will the XXXX. Xandre, creates like this Portuguese the to the what approximately in in in that, which We

Alexandre De Oliveira

the for question. thank you Yuri,

we've clients' in income, hyper-personalization see we in year our work as been doing products that of per XXXX So launching all in on trend. fee needs. results saw the as nice And to keep are the we context this and XXXX a

So impressive through which saw already lot that app. have in and and had a front. we're diving we hyper-personalized where sell, and more and on choices the the marketplace, we also results revenue, the on that products in which GMV the into that in grew We all make product getting experiences, journeys better to we in results the these better insurance the of

see keep similar in trends that and the XXXX, to can we working there. So we limits we'll push

João Vitor Nazareth Teixeira de Souza

here. speaking Joao Yuri,

because here, the So to and X of it's CEO dividend the fun going back I shareholder heads controlling have topic, company.

that a invested side, to company. that like of that to reward company the one capital they on shareholders is the for in all say essence I'd the have So

So we we the the pay of growth a to with the ratio that, myself highest CEO would know And pay still the we are on story. payout of I dividend down. We -- the the to love yield tend head try therefore, as to bring you company, market. mentioned,

Brazil capital, so as we we is As keep capital long whatever. threshold the organic above cost of believe building or continue that the the in can

So let's that be credit asset-light put mentioned, throughout portfolio this have say payout are to of do as having revenues XX%-ish. side. XX%, that's fees, We on XX% XX% ratio, our to we platform. we regarding proud the of growing, your questions the we're But connecting to very designing I'd an fee sense, like to we that a Inter able the time. be will increase in

have this without fresh fee So can be can XX%, kicking at to on equity, able new capital, generate innovation pattern as sacrificing keep we in, long as growth paying dividends we XX%-ish and the the we will income Inter. the

So of value generating the to long-term to arbitrage value and shareholders that's right only and balance of do for short-term for any not try how shareholder. the all I type

Yuri Fernandes

you was important, something yield super to higher case. it bit But the yield important seems and don't right, is the honest could is I something concerned because payout think this, like when was and it blank sacrificed think not I you. with XX%, little clear. It like super XX% you pay, or growth, a be do being historically said you this like mentioned you a payout I asked that dividend I

as is confirm time, trying guidance you ROE guess over And your the this. just that's the XX%, up just But the like softer move you future. and make will pay I said, for somewhat and thank sure more see you to dividends in the the clarity. So fine, And you payout. for can XX%

Operator

from Ito Bradesco Eric Mr. from BBI. comes question next The

Eric Ito

on of as -- your have just you X well. per XX my is breakdown on side quarter, NIM as for maybe first mix. this I to see your of one is wanted mentioned, expansion XXXX. on a expectations My the bps follow-up I regard

how funding a see the would as if much First, CDI of for any for you funding, potentially be percentage BRL what how your in -- second pressure you on cost results the already increased much for your is see quarter, Treasury -- this could be you it of around see grow competition? Then topic, because XXXX? of increasing on still could If fourth XXX million.

fourth just around be it growth. will we if XX%, So this quarter, analyze XX%

and for explore to my the quarter, around that on want was question growth credit is of would transactor bit strong this main XX% NIM as cards. understand So But I in to portfolio. drivers between specifically There your be I if breakdown then on well. And non-transactor expansion want just year-on-year. second a one a just

slight was seasonality saw share But the earning portfolio it the finance in your total just I third thought decrease there's maybe we mix. maybe fourth in the as yield I because the to of portfolio, think here in more I would quarter you're a the cards. that of of guess your sense be the bit share of maybe consumer I credit quarter get in a want growing increasing mix debt. in this

just I expect get line forward? want we going and evolve this this how on can to sense trend to So your

Santiago Stel

will Santiago take the credit and one, cards. on the second will I here, take Xandre first one

grew SMEs, mentioned. inflation continue evolution And if in estate products grew more. the as significantly get or and real the will significantly of less. So factors, what we equity associated continuation, say, of [ or in richer and experienced NIM assuming FGTS, ] the mix the the see are home we've that it's Agri combination are case with thinner on rural business which margin of you trend One is I X the to let's XXXX,

very is the out strong So role. mix playing a

scale on on hand, On a rate, finance per around Buy for continue PIX and average the the in products we those the yield the starting X% Pay The to consumer both are Later Now, is but other to month. returns. and nice Financing beginning are up base lower

we attractive we and very cost, it. And continue of that funding pay the cost then mid-XXs. attractive level to are a very the it's terms So modeling risk in with of that will the in associated comes

affects around deviate talk too a how this, We CDI. factor of don't percentage the add that CDI. we expect in X to BRL what here something of XX% that The around that the yield is to liquidity that will have billion see the are much before invested Treasury the as we mix we notes mid-XXs I'd we tax call of didn't but structured already exempt, and this around

tax that But bps way it the of below. those in on additional did in the a those the of the appears from we probably NIM we tax in comes rate and XX notes are add of Page So adjustment the NIM, XX, benefit around release, in can effective that because you penalized press see have notes.

XXXX, NIM sheet about notes price sheet. to to the on to that the portfolio growing impact key thing grows, credit I'll a pass is NIM. of there. And the Xandre balance structured another the in further So that it of the that's into continue of is expect -- point. proportionate the And playing the growth we we balance evolution as role to

Alexandre De Oliveira

little a complement bit maybe start of I'll so cost Eric, funding. the on

this we high-cost went down. like high CDs more able deposits, want have that's invest, balances. platform is talking the this decision. with level. secret and competitive funding low keep And this of to interest we've products rates a as And landscapes, a transactional them their low-cost we have LCIs. and of to in products, funding few of the cycles a yields, different that keep little small through cost has developed a million been per XX%, deposits to the our cost been serve when within of this with most bit nice want very then good and we they and mix about thing one XX So they to And people transactional complete we're we when like And super the

The portfolio change. didn't credit to of the Moving cards. shape the

So this transactors and mix different a to more which mix PIX in we is, -- close with opportunity which installments, towards solutions. the the the right, includes been where focused the the minimizing in Financing, the customers revolving of installments, revolving, we installments. We've are about Financing moving finished remaining delinquent is and on XX% between and implementing PIX revolving, in and revolving X% being XXXX X% skewed lot between towards

rate So for example, differential. of September, in -- implemented an September end we interest

that's more installments delinquent. we customers favorable delinquent than typically instead to from to that from going into to revolving go So installments faster remember is have revolving. And to to to of

shape the change bit, that's to kind the portfolio of of doing. what So a we're the little We want part. increasing interest-earning

XXXX. to, in from little a the throughout reduce So Thanks, XX, XX that XX would Eric. bit transactors say, maybe

Eric Ito

quick follow-up, answer. if Just on may, one I Santi's

still benefits that decrease yield slight portfolio, taxes, securities we as percentage on could you So mentioned CDI? you're can because of structured the for we securities the maybe CDI maybe going of this for Later, of Maybe you of a see percentage but of that on as as a percentage decrease we a could see XXXX could forward, which the taxation. the guys with XX% Santi, as expand addition you say at better some CDI, maybe portfolio, capture going the to effect? of on notes

Santiago Stel

should No, growth balance notes sheet. because the proportional of the the be in to structured growth the

to the use loan portfolio could -- the investment some catch expect relatively up on remain investments that We to on on the did yield increase portfolio yield. we So we stable. the some have

the weight decreasing the portfolio the is NTMBs are approximately of billion have X.X We that is BRL investment size increasing. that because

So expect Eric when the level quarter, you this that remain put we to it had at same in roughly all that together, we fourth

Operator

Itau Pedro next The Leduc Mr. from question comes from BBA.

Pedro Leduc

still First transactors mentioned income question this and saw them bit. not. a credit on of what stable interest We you on quarter a is cards, falling despite mix

million to to it's quick related Pag a of technical a was a up first making BRL its if and then XX bit of was of lowering Inter capital what is a volumes just can And that? elaborate if strategy not. or picking the quarter, seeing one. if in second, just sensitivity cash that, it of There regards that rates this and on question. And that's others or gains was sure you If you're little

Alexandre De Oliveira

is Xandre you for Thank this Leduc, your speaking. question.

So the I'll complete Eric. kind of answer of

Installments. in and So XX% Financing is and is Delinquent which mentioned, portfolio is the XX% PIX and XX% of Revolving mix, as I XX% transactors, like XX% on the

this mission portfolio, installments. clients more our to delinquent And the is interest-earning moving to improve which so P&L credit to cards of them do, need we amount what opportunity and that is to of main the of increase and the reducing are

end to reduce the effect mentioned, interest believe, we piece but portfolio. What's mainly super expected like still talking XX.X%, we driven moved We in high the rate push this I part have it interest lower differential change? the September, doing product, the a from to of rate of rate. installment that I which to XX.X% As people was a we yield We're by on implemented into short-term the rate. like lower an

hardships be help super lives. is may that doing customers in the end of collection there out a to expected large you. then where have like are revenues. terms have day a we're to the see get was it policies revenues we we expect time. would that going things collection products, the in strategy. and and period going increase things But This Thank through more And by that design. list as in customers through of different we of smaller to these of was they not delinquency, we're the financial That's their So more that

Santiago Stel

of question, the that, capital related gains study one acquisition. Pag the a the fourth you're XX which of is quarter. And million allocation finalized in we Inter We quarter. it consequence recognition BRL the purchase performed mentioning. in on was booked the price a is to That Leduc, And yes, as fourth

Operator

HSBC. question comes Ms. from Neha from Agarwala next The

Neha Agarwala

if Sorry you things, making I'm repeat but of your questions. any X

this portfolio. the kind for on growth question versus private my your First How should And asset particular what payroll. is Consumer second for of is the portfolio? And evolving on quality we XXXX Finance expect expectations?

coming in We area of operate could interest are to this as an see seeing for Inter growth market? it particular and you the easier this changes private some domain. Is payroll becomes in

João Vitor Nazareth Teixeira de Souza

here. going speaking will to second the and I'm first Joao Santi do one. Neha, do the

sharing Inter most with and finance how are shareholders I our with been with have I the consumer here at Brazil. the Finance, the market, say, markets, of excited reinvent in to, we Consumer So would

well coined approach, have we It's term as working well. it's this X.X this consumer working and really we say. here, We So actually, Neha.

Later. have Buy Pay Now, the we So

consumers. the success the GMV of platform capabilities credit commerce our connecting [ in combine we of in to with our our So our shopping ]

delinquency portfolio using delinquency credit lower Guys is the streets. As are for the that card the on the of our today, card. than this credit of

For the that that take credit us a reward from to clients. product, the merchants being one rate very for we have good giving their

the also payment upfront a the to product down or XX% have very We of of service. around good XX% price the

ahead this Inter. very that believe doing So that radar, something the under finance we're here commerce product. we combination is because but I this And one we're are the of at have with excited we this and

trends to than also of credit Finance, have also, So very anything better doing make the as the for checking terms in delinquency that prints we not collection, again, positive delinquency, well. we XXXX sure checking cards. a and we're But the always have seeing PIX wrong. On underwriting been good

for we underwriting ecosystem evolve, consumer we our inside see trying our order more, we PIX them our more capture and the ecosystem, finance shopping, from to from data and our to bring credit improve. all bring the that Neha, to As we're in getting that

look this we positive credit at At portfolio. equation type So risk That's the having of the the we risk/reward equation. end what of best of have a best underwriting. the the the for view our day, day, end reward for

Consumer these Santi the Finance the question. So we are other excited approach. And products with positive very very on X.X and X will cover now

Neha Agarwala

us you that targets mind? Joao, just quickly with in you any that, might have that on can share

João Vitor Nazareth Teixeira de Souza

sure our that this on the Actually, Neha, we -- don't today that. through that working at really to GMV will that we We that know we're Buy see looking really, it's optimistic the group Now, Inter persist purchased consumer that on have go to X% Later. XX%, to if really Pay XQ, a cracking delinquency we make a about not XX%, we on of up we're But too XX%. our focused are XX%, not going Yes, think actually, finance. that was code

good good take reward reward, credit. us, a to the for bank, needs give reward, far, to delinquency guidance. The the again, provide to rates from so industry hard and industry. good So very ability good But our

ago. step, we very this So step, step envisioned, performing again, approach step underwriting, but been I'd very has collecting product. learning, this by This and is X that or years X maybe concept well. a say, about by always And Inter is optimistic combination I'm

Santiago Stel

can in If And about outcome focusing things growing, Finance the credit we've Finance Consumer we on XXXX. on for you drive thank filling been is one Consumer seeing the driving we're outcome, and excited on We're in quickly of your X.X. both that. And the feel did on Joao's we the more we on question. point X.X what comfortable cards the in and delinquency. Neha, that of

the been us the models adjust we and So every to that policies, comfortable reading, with able on see the adjust a early-stage we've to portfolio. makes and time in delinquency, next drive steady growth outcome keep

FGTS being day BRL set human that payroll to payroll player. single to the X. believe super XXX,XXX We're Moving like private strong do a a contracts on market. intervention be loans. market between month loans new begin promising competitive estimating is than and that that to ready the a to BRL we be a on billion a The to see more able to very going We're without the can XXX We addressable -- billion loan XXX with. precedent we

product by FGTS, do is there this to way. we're the very the whenever that didn't first going So there, something on be we on day, the

missing more information finally, of to going start lot can there we're a day that give X. And So so color. still is on we

progresses talking time that as and Thank business. to be more what's the sure in unveils and estimate So you. impact we're be I'm our the the better of going government able details, to

Neha Agarwala

clear. Very

in GMV see we the not did GMV. for for marketplace, despite on Any the fourth that? in pickup quarter, the quickly the Just seasonality reason big strong a

João Vitor Nazareth Teixeira de Souza

repeat you So were because breaking could Neha, little you bit? sorry, a

Neha Agarwala

the for We that? in for specific pickup not marketplace GMV marketplace the On any typically, in has quarter sequentially. strong did a see business, reason big seasonality. there fourth quarter fourth the Is

João Vitor Nazareth Teixeira de Souza

service good and only a And I Neha, new marketplace. the when starting almost goods offerings to on which agree seasonality And we we it. is for for offerings, year-over-year, grew we're there. big spike more in the also, you XQ, not actually develop more, had a very XX% look GMV

on XX%-ish service, believe So growing XX%-ish, this that combined GMV can we keep the goods year-over-year. we and

So very excited Inter the initiative success with the that of years Shopping X started ago.

Operator

This over would floor turn to to for closing Menin our question-and-answer the Mr. like remarks. session. concludes back Joao Vitor I his

João Vitor Nazareth Teixeira de Souza

for We're soon. focused we call. strong See to end, delivering, year a Inter to say, XXXX. taking thanks would excited, very very beginning everyone our the in Thank on our time you for Bye-bye. XXXX Again, earnings on did energized, as listen everyone, much. I you

Operator

concluded. now Have questions. day. your Inter area has conference today's This any disposal IR is a at you to answer Thank for nice additional presentation. attending

Inter & Co (INTR) 6 Feb 252024 Q4 Earnings call transcript