Core Insights - Inter & Co. reported strong Q2 earnings, leading to a significant stock price increase of 14.24% to $7.46, marking the highest single-day volatility since July 2023 [1] - Analysts upgraded the stock rating from "Neutral" to "Buy" due to improved profitability and execution efficiency since November 2023 [4] Financial Performance - Q2 earnings per share (EPS) reached $0.13, exceeding analyst expectations of $0.12 by 8.33%, and representing a 44.44% increase from $0.09 in the same quarter last year [1] - Q2 revenue was $353.548 million, surpassing the average analyst forecast of $337 million by 4.91%, and showing a 24.59% growth from $283.765 million year-over-year [1] - Net profit surged 49% year-over-year to 332 million Brazilian Reais (approximately $60.7 million), with a return on equity of 13.6%, up 3.9 percentage points from the previous year [1] Credit Portfolio and Growth - The company's credit portfolio exceeded 40.2 billion Brazilian Reais, growing 22% over the past 12 months, with an annual growth forecast of 25%-30% [4] - 70% of the credit assets are secured by collateral, indicating strong risk resilience [4] - The expansion in credit is primarily driven by a new private wage loan product launched by the Brazilian government in March, which utilizes a centralized wage database for risk assessment [4] - As of the end of June, the new product's portfolio reached 728 million Brazilian Reais, with expectations to surpass 1 billion Reais in Q3 [4] Analyst Sentiment - Analysts from BTG Pactual and Citigroup provided positive evaluations, highlighting improvements in net interest margin, asset quality, and operational efficiency [4] - Despite acknowledging short-term impacts on profitability due to provisions for the new wage loan business, the company views this as a strategic opportunity to penetrate a market traditionally dominated by conventional banks [4]