Inter & Co(US:INTR)2025-02-06 21:02Financial Data and Key Metrics Changes - In 2024, the company achieved a net income exceeding the total of all previous years combined, demonstrating significant profitability growth [7] - Total gross revenues reached over 10 billion reais, with net revenues of 6.4 billion reais, reflecting a 37% increase in net interest income (NII) and a 31% increase in net fees [43] - The company reported a net income of 973 million reais for the year, with an annual return on equity (ROE) of 11.7% [49] Business Line Data and Key Metrics Changes - The banking segment saw a total payment volume (TPV) increase of 45% year-over-year, reaching a run rate of 1.5 trillion reais [19] - The consumer finance portfolio grew to nearly 700 million reais, marking a 38% quarter-over-quarter increase [21] - The insurance vertical achieved a remarkable 312% growth, with over five million active contracts sold [25] - The marketplace segment experienced a 79% year-over-year growth in net revenues, with gross merchandise volume (GMV) reaching nearly five billion reais [26] Market Data and Key Metrics Changes - The company ended 2024 with over 36 million clients and a 57% activation rate, adding more than one million new active clients each quarter [18] - The global account client base reached 3.9 million, representing 19% of the active client base, with a 52% increase in deposit balances year-over-year [28] Company Strategy and Development Direction - The company is focused on leveraging technology and innovation to enhance market share in Brazil while executing a global expansion plan [50] - The 60-30-30 plan is being successfully implemented, aiming for improved efficiency and profitability [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining loan growth rates of 25% to 30% despite a cautious outlook from incumbent banks due to the high-rate environment in Brazil [55][60] - The company anticipates continued expansion in net interest margins (NIM) in 2025, driven by a favorable loan mix and disciplined capital deployment [62][66] Other Important Information - The company has been actively hiring new talent to enhance its capabilities, including key promotions and new appointments in the finance and business teams [14] - The company is committed to maintaining a low cost of funding, which is currently at 64% of the CDI [42] Q&A Session Summary Question: Outlook for loan growth and net interest margin in 2025 - Management indicated a cautious approach to credit underwriting but expects to maintain loan growth near 30% and a positive trend in NIM despite rising rates [55][60] Question: Expense growth and efficiency improvements - Management is committed to improving the efficiency ratio to 30% and is implementing cost reduction initiatives across the company [76][80] Question: Capital allocation and dividend policy - Management emphasized the importance of optimizing capital allocation while balancing growth and dividend payouts, aiming for a sustainable payout ratio [84][110] Question: Loan-to-deposit ratio and asset quality indicators - Management expects the loan-to-deposit ratio to remain stable, potentially increasing to around 80%, with a cost of risk projected to stay around 5% to 5.2% [95][97]