Inter & Co (INTR) Q3 2024 earnings summary

Executive summary

• Achieved record net income of R$260 million in 3Q24, up 150% year-over-year, with ROE at 11.9% and a client base reaching 35 million, including 1.1 million new active clients and a 55.9% activation rate, the highest since Q4 2021.

• Strong engagement and growth across all business verticals, with significant increases in credit, investments, insurance, and global operations, and robust cross-selling and upselling.

• Continued focus on innovation, hyper-personalization, and AI-driven solutions, expanding the super app ecosystem and launching new products and features.

• Gained market share in all core segments, outperforming in FX, credit, and digital banking, and closing gaps in PIX, home equity, and cards.

• Expanded global reach to 3.6 million clients, with US AUC and deposits up 442% year-over-year.

Financial highlights

• Gross revenue reached R$2.7 billion (+25% YoY), net revenue R$1.7 billion (+32% YoY), and net income R$260 million (+150% YoY).

• Total assets reached R$69.9 billion (+27% YoY); funding grew 27% YoY to R$50.3 billion, with transactional deposits up 30% and time deposits up 40%.

• Gross loan portfolio expanded 35% YoY to R$38.1 billion, with strong growth in FGTS (+77%) and Home Equity (+54%).

• Efficiency ratio improved to 50.7% (48.6%/48.7% excluding Inter Pag/Interpack), with net revenue growth outpacing expenses.

• Cost of funding remained flat or declined to 6.8%, among the lowest in the industry.

Outlook and guidance

• Five-year plan targets 60 million clients, 30% efficiency ratio, and 30% ROE by 2027, emphasizing scale, monetization, and operational excellence.

• Management remains focused on the 60/30/30 plan, balancing investments in IT, marketing, and people with operational efficiency to drive sustainable growth.

• Expects further synergy gains and efficiency improvements from integration of Inter Pag/Interpack and continued expansion of the super app ecosystem.

• Plans to expand global account offerings to new geographies via asset-light, bank-as-a-service partnerships in 2025.