Financial Data and Key Metrics Changes - The company added 4.3 million customers in Q1 2025, reaching a total of 19 million customers across all markets, with significant growth in Brazil and Mexico [6][10] - Net interest income (NII) grew 34% year over year, reaching an all-time high of $1.8 billion, while net income increased 74% year over year to $557 million [28][31] - The efficiency ratio improved to 24.7%, reflecting a significant year-over-year improvement [30] Business Line Data and Key Metrics Changes - The credit portfolio reached $24.1 billion, growing 8% quarter over quarter and 40% year over year [17] - Total loan originations reached a record of 20.2 billion reais in Q1, up 64% year over year, with unsecured loans being the main driver [20] - The average revenue per active customer (ARPAK) is expected to grow significantly as product usage deepens, with potential to exceed $25 after several years [12] Market Data and Key Metrics Changes - The company serves approximately 59% of Brazil's adult population, 12% in Mexico, and 8% in Colombia, indicating substantial market penetration opportunities [16] - In Mexico, the customer base grew 70% over the past four quarters, with deposits exceeding $5 billion and revenues nearly doubling [10][11] - The company’s gross profit market share in Brazil is only 5%, indicating significant room for growth [8] Company Strategy and Development Direction - The company is focused on long-term value creation rather than short-term earnings optimization, investing in deposit franchises in Mexico and Colombia [15] - The strategy includes expanding market share and enhancing customer engagement through innovative product offerings and improved credit models [9][14] - The company aims to capture value from the structural shift from cash to digital payments, particularly in underpenetrated markets like Mexico and Colombia [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential across Latin America, particularly in Brazil, Mexico, and Colombia, despite short-term margin pressures [15][26] - The company is optimistic about the future of secured lending products, including public and private payroll loans, which are expected to drive significant growth [22][79] - Management highlighted the importance of maintaining a strong customer experience while navigating competitive dynamics in the market [25][56] Other Important Information - The company has been approved for a banking license in Mexico, which will enable accelerated growth and product offerings [11] - The company’s credit underwriting capabilities have improved, allowing for responsible expansion of credit access [8][20] Q&A Session Summary Question: About the resilience of NIM in Brazil despite higher SELIC rates - Management explained that the resilience is due to increases in loan-to-deposit ratios offsetting headwinds from funding costs and portfolio mix changes [44][45] Question: Impact of FGTS loan origination disruption - Management estimated a 10% impact on originations due to the FGTS disruption, indicating a significant operational effect [48] Question: Focus on Brazil and Mexico versus international expansion - Management confirmed that Brazil, Mexico, and Colombia remain top priorities, with internationalization being a long-term goal [56][58] Question: Provision expenses and risk-adjusted NIMs - Management noted that seasonal effects largely influenced the increase in provision expenses, and they expect stability in risk-adjusted NIMs moving forward [64][66] Question: Growth potential in secured lending - Management highlighted the significant growth potential in secured lending, particularly in public payroll loans, and expressed confidence in their digital-first approach [72][78]

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