Inter & Co (INTR) Q1 2025 earnings summary

Executive summary

• Achieved record net income of R$287 million (excluding minority interests), up 57% year-over-year, with ROE at 12.9%.

• Total clients reached 38 million, with 1 million net new active clients added for the fifth consecutive quarter and a 57% activation rate.

• Maintained a highly diversified business model across banking, investments, insurance, shopping, global, and loyalty verticals, driving engagement and cross-selling.

• Strong digital engagement: 18 million daily logins, 185 AI models in production, and 33 petabytes of data stored.

• Focused on sustainable, collateralized credit products and digital-first innovation, supporting ongoing digital transformation in banking.

Financial highlights

• Gross revenue reached R$3.2 billion, up 38% year-over-year; net revenue was R$1.8 billion, up 31% year-over-year.

• Net interest income increased 37% year-over-year to R$1.36 billion.

• Gross loan portfolio expanded to R$43 billion, up 33% year-over-year, with Home Equity and FGTS loans up 45% and 43%, respectively.

• Funding reached R$59.1 billion, up 35% year-over-year, mainly driven by time deposits.

• Efficiency ratio improved to 48.8%, a 130 bps sequential improvement.

Outlook and guidance

• Expects loan growth of 25%-30% for the year, excluding credit card receivables anticipation.

• Targeting 60 million clients, 30% efficiency ratio, and 30% ROE by 2027 as part of the 60 30 30 plan.

• Anticipates continued NIM expansion, driven by product mix improvements and repricing.

• Management remains confident in robust growth prospects for 2025 despite macroeconomic challenges.

• Focus on scaling digital credit products, expanding into new markets (e.g., Argentina), and maintaining efficiency improvements.