Inter & Co. Inc. Q4 Earnings Call Highlights

Core Insights - Inter & Co. Inc. reported significant growth in client acquisition, engagement, and profitability, positioning itself as the fastest-growing financial institution in Brazil with over 25 million active clients [3][4][7] Transaction Volumes and Market Share - Total payment volume (TPV) for the fourth quarter grew 27% to a BRL 1.8 trillion run rate, with Pix transactions totaling around BRL 1.5 trillion for the year and a market share of 8.5% [1] - The company processed 32,000 financial transactions per minute, totaling almost 1 billion transactions in December [2] Client Growth and Engagement - Inter added 7 million new clients in the year, achieving its best annual performance ever, with 4.4 million becoming active, resulting in a 58% activation rate [3][7] - Daily logins exceeded 21.5 million in December, up from 17 million the previous year [2] Financial Performance - Net revenues reached BRL 8.4 billion, a 31% year-over-year increase, with net income of BRL 1.3 billion and a return on equity (ROE) above 15% in Q4 [5][17] - The loan book grew 36% year-over-year, with mortgages increasing by 48%, home equity loans by 35%, and credit cards by 29% [6][8] Asset Quality and Risk Management - The 15- to 90-day non-performing loan (NPL) ratio improved to 4.0%, while the 90-day past due metric rose to 4.7% [9][10] - Coverage ratio increased to 146%, with a cost of risk expected to be between 5.5% and 6% in 2026 [10][21] Funding and Deposits - Deposits grew 32% year-over-year to nearly BRL 73 billion, with time deposits driving much of the growth [11] - The cost of funding improved to 65.6% of CDI from 68.2% in the prior quarter [12] Revenue and Profitability Metrics - Total gross revenues for 2025 are projected at BRL 15 billion, up 45% year-over-year, with net interest income rising 41% [13] - Net fee revenues increased by 9%, with a fee income ratio finishing at 25% [14] Operational Efficiency - Administrative expenses rose 19% year-over-year, attributed to higher transaction volumes, while the efficiency ratio improved to 45.5% from 48.4% [16] - The company aims to maintain a 20% dividend payout ratio moving forward [19] International Expansion - Inter received approval for a U.S. branch license, allowing it to expand its offerings in the U.S. market [23]