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]

Financial Data and Key Metrics Changes - The company achieved a record net income of BRL 336 million, marking a significant milestone in its journey [23] - Net revenue reached BRL 2.1 billion, up 29% year-on-year and 8% sequentially, driven by growth in the credit book [19][20] - The return on equity (ROE) reached 14.2%, reflecting strong profitability while investing in innovation and operational excellence [23] Business Line Data and Key Metrics Changes - The loan portfolio grew 30% year-on-year, with quarterly growth accelerating to 9% [15] - Active clients transacted over BRL 412 billion, a year-over-year growth of around 30% [10] - Credit card volume surpassed BRL 15 billion for the first time, representing a 20% growth on a yearly basis [10] Market Data and Key Metrics Changes - The company is the second-largest underwriter of home equity in Brazil, achieving an 8.9% market share in portfolio balance [12] - The FX transaction market share reached 8.4%, indicating strong engagement in the global account [12] - The overall market for private payroll loans grew 22%, while the company achieved a growth of 38% [16] Company Strategy and Development Direction - The company focuses on innovation, leveraging AI and hyper-personalization to enhance its app and client experience [6] - The strategy includes driving global expansion and enhancing the global account with new products [6] - The company aims to maintain a balanced ratio of secured to unsecured loans, with two-thirds of the portfolio being secured [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow despite a challenging SELIC environment, highlighting strong trends in private payroll loans [30] - The focus remains on sustainable credit and client-centric solutions, aligning with regulatory trends in Brazil [24] - Management anticipates that the upcoming centralized invoice discounting clearing house will accelerate growth in the SME segment [15] Other Important Information - The company has 380 AI initiatives live, a significant increase from 80 during the previous year [6] - The Net Promoter Score remains high at 85 points, indicating strong client satisfaction [8] - The efficiency ratio improved from 47.1% to 45.2%, showcasing operational leverage [22] Q&A Session Summary Question: What is needed to achieve the 30% ROE target in the next two years? - Management highlighted the importance of continued growth in the credit portfolio and the positive trends in private payroll loans, while acknowledging the tough SELIC environment as a headwind [26][30] Question: Is the higher cost of risk a new normal? - Management explained that the cost of risk is expected to stabilize around the current level as the portfolio matures, with a focus on maximizing risk-adjusted NIM [36][39] Question: What drives confidence in maintaining loan book growth amid economic deceleration? - Management emphasized the company's strong client base, digital experience, and the potential for market-based solutions in mortgages and payroll loans [51] Question: What actions led to improved credit card portfolio performance? - Management noted the successful reshaping of the credit card portfolio and improvements in underwriting and collections, leading to a healthier ROE for the product [58][62] Question: What is the outlook for fee income growth? - Management indicated that despite recent one-offs affecting fee growth, they expect net fees to grow in the 20% range going forward, driven by credit card and e-commerce platform performance [81]