Inter & Co (INTR) Q2 2024 earnings summary

Executive summary

• Achieved record net income of R$223 million, up 247% year-over-year, with pre-tax income near R$300 million and ROE reaching 10.4% (+6.8 p.p. YoY), advancing the 60-30-30 plan.

• Total client base reached 33.3 million (+20% YoY), with 1.6 million new clients in the quarter and a 55.3% activation rate, showing robust engagement across all verticals.

• Integrated Granito (now Inter Pag) to enhance SME and acquiring solutions, unlocking new cross-sell and bundling opportunities.

• Launched a social platform within the super app to foster client engagement and collective investing.

• Demonstrated robust growth across all business verticals, including banking, credit, investments, insurance, shopping, and global services.

Financial highlights

• Loan book grew 35% year-over-year to R$35.7 billion, led by FGTS (+93%) and home equity (+50%).

• Gross revenues reached R$2.4 billion (+24% YoY), net revenue R$1.5 billion (+29% YoY), and net interest income R$1.03 billion (+28% YoY).

• Net income hit R$223 million, with pre-tax income near R$300 million; ROE reached a record 10.4%.

• ARPAC rose to R$30.5/month; cost to serve dropped to R$11.1, reflecting improved monetization and scale.

• TPV increased 47% year-over-year to R$290 billion, with Pix transactions at R$266 billion and 8% market share.

Outlook and guidance

• Expect continued NIM improvement of ~20bps per quarter, with cost of risk stable at 5.0–5.5%.

• Management remains focused on the 60/30/30 plan, targeting continued growth, profitability, and efficiency.

• Targeting unsecured loan portfolio near R$1 billion, focusing on profitability and risk-adjusted returns.

• Committed to balancing growth and profitability, leveraging operational leverage for long-term ROE gains.

• Ongoing investment in technology, branding, and talent to support innovation and expansion.