Inter & Co(INTR) - 2022 Q4 - Annual Report

Financial Performance - The Gross Loan Portfolio increased to R$ 24,543,993 in 2022, up from R$ 17,514,466 in 2021, representing a growth of approximately 40.3%[26] - The company utilizes non-GAAP financial measures, such as Gross Loan Portfolio, to analyze financial performance and operational efficiency[24] Client Engagement - Active clients are defined as those generating revenue in the past three months, reflecting the company's ability to retain client interest[29] - The primary banking relationship metric indicates the percentage of clients with 50% or more of their income flowing into their accounts, reflecting the attractiveness of banking products[31] - The Net Promoter Score (NPS) is used to gauge client satisfaction and the effectiveness of client-focused initiatives[23] Market Expansion - The company aims to expand its operations into markets outside Brazil, particularly through the acquisition of USEND (now Inter&Co Payments) in the United States[34] Risk Management - The company has implemented a comprehensive financial risk management framework covering credit, market, liquidity, and operational risks[689] - Liquidity risk management aims to prevent breaches of liquidity ratios, ensuring the company can meet obligations without significant losses[692] - Market risk includes potential losses from changes in stock prices, interest rates, exchange rates, and commodity prices[693] - Operational risk management processes are in place to minimize losses from internal failures or external events[694] - Credit risk management focuses on safeguarding financial solidity and ensuring alignment with shareholders' interests[691] - Concentration risk is identified as a significant exposure to a borrower or counterparty, which could lead to credit losses[695] - The company conducts stress tests to assess exposure to various market risk factors[695] - Sensitivity analysis indicates that under Scenario I, the largest loss from fixed interest rates could be R$470 million if rates decrease[697] - Under Scenario I, the impact of an increase in the IPCA coupon could result in a loss of R$3.085 billion[697] Transaction Metrics - Card + PIX Total Payment Volume (TPV) includes transactions from PIX, debit, and credit cards, indicating the usage of digital payment products[29] - The take rate for transactions on the Inter Shop & Commerce Plus platform is monitored to assess monetization capabilities[29] Competitive Landscape - The company faces risks related to economic conditions, competition, and regulatory changes that could impact growth prospects[34]