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]

Financial Data and Key Metrics Changes - The company reported a record net income of BRL 315 million, achieving a record return on equity (ROE) of 13.9% [39] - Total gross revenues reached BRL 2.0 billion, reflecting a year-over-year growth of 4835% [32] - The cost of risk was reported at 5%, with expectations to remain in the range of 5% to 5.25% [66][70] Business Line Data and Key Metrics Changes - The private payroll loan portfolio grew to BRL 728 million, serving 153,000 clients, indicating strong digital distribution [21] - Credit penetration among active clients reached 33.8%, supported by initiatives like monthly credit reassessments [20] - The investments vertical saw active clients grow by 38% year-over-year, reaching 7.9 million [22] Market Data and Key Metrics Changes - Total payment value grew by 33% year-over-year, reaching BRL 374 billion, with PIX accounting for BRL 346 billion [18] - The global account client base grew by 34% year-over-year, reaching 4.4 million, with deposits surpassing $294 million, marking a 90% year-over-year increase [25] - The company achieved a net promoter score of 85, indicating strong customer satisfaction [15] Company Strategy and Development Direction - The company aims to enhance client experience through innovative features like MyCredit and My Piggy Bank, focusing on sustainable credit options [8][10] - The strategy includes diversifying fee sources and building a strong funding franchise, which has compounded profitability over the last ten quarters [7] - The company is committed to maintaining a strong balance sheet while investing in long-term growth opportunities [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic challenges, citing a diversified loan portfolio and strong asset quality metrics [64] - The outlook for the private payroll product remains positive, with expectations of achieving an ROE beyond 30% [50] - Management highlighted the importance of client-centric approaches and effective capital allocation to drive future growth [94] Other Important Information - The company is in a subsidy period for converting BDRs to Class A shares, which is expected to enhance share liquidity in the U.S. market [42] - The company continues to invest in technology and marketing to strengthen brand awareness and operational efficiency [36][38] Q&A Session Summary Question: Update on the private payroll product and its success - Management is optimistic about the private payroll product, expecting to surpass BRL 1 billion in portfolio soon, with delinquency rates better than initially forecasted [48][50] Question: Outlook for credit quality and provisioning levels - Management indicated that the cost of risk is expected to remain stable, with a focus on optimizing risk-adjusted NIM [66][70] Question: Margins on NIM statement and product performance - The company reported improvements in personal loan yields, driven by a favorable competitive dynamic and effective repricing strategies [74][76] Question: Renegotiated portfolio classification and strategy - Management clarified that renegotiated portfolios are primarily classified within stage one, focusing on commercial renegotiations for real estate contracts [110][112] Question: Insights on the 06/3030 plan and future KPIs - Management expressed confidence in achieving the 06/3030 plan, emphasizing the network effect and the tools available to drive growth [94]