Inter & Co (INTR) Q4 2024 earnings summary

Executive summary

• Achieved record net income of R$973 million in 2024, tripling year-over-year and surpassing all previous years combined, with ROE at 11.7% for the year and 13.2% in 4Q24.

• Client base grew to 36.1 million, with a 57% activation rate and over 1 million new active clients added each quarter, totaling 20.6 million active clients.

• Significant progress in digital payroll, consumer finance, and global expansion, with 3.9 million global account clients and new product launches driving engagement.

• Expansion of leadership team and board, supporting growth, innovation, and internationalization.

• Entered 2025 with a strong balance sheet, low funding costs, diversified credit portfolio, and improving asset quality.

Financial highlights

• Net income for 4Q24 was R$295 million, with quarterly ROE at 13.2%.

• Gross revenue reached R$10.3 billion (+28% YoY); net revenue was R$6.4 billion (+32% YoY); net interest income grew 42% YoY to R$4.38 billion.

• Total loans reached R$41 billion, up 33% year-over-year; FGTS and home equity loans grew about 50% each.

• Credit card portfolio surpassed R$11.8 billion, up 25% year-over-year.

• Efficiency ratio improved to 50.1% in 4Q24, reflecting strong cost discipline and operational leverage.

Outlook and guidance

• Confident in sustaining 25%-30% loan growth and further NIM expansion in 2025, with a long-term efficiency ratio target of 30%.

• Targeting 60 million clients and 30% ROE by 2027 as part of a five-year strategic plan.

• Dividend payout expected to remain at 20%-25%, balancing growth and shareholder returns.

• Ongoing focus on innovation, international expansion, and market share gains in core verticals.