Inter & Co(US:INTR)2026-02-11 16:02Financial Data and Key Metrics Changes - The company reported total gross revenues of BRL 15 billion, reflecting a 45% year-on-year growth, while net revenues grew 31% year-on-year to BRL 8.4 billion [13] - Net interest income increased by 41% year-on-year, driven by strong performance in payroll loans, credit cards, mortgages, and home equity loans [13] - The efficiency ratio improved from 48.4% to 45.5%, indicating better operational leverage [17] Business Line Data and Key Metrics Changes - The loan portfolio grew by 36% year-on-year, with mortgages increasing by 48% and home equity loans by 35% [9] - The private payroll loans portfolio reached nearly BRL 2 billion, with around 400,000-500,000 clients, showcasing rapid product scaling [6] - Credit card volume grew by 29%, with interest-earning products now representing over 23% of the credit card portfolio, up from 19% last year [6][9] Market Data and Key Metrics Changes - The company processed 32,000 financial transactions per minute, totaling almost 1 billion transactions in December, with a significant increase in daily logins to over 21.5 million [3][4] - The transaction mix is evolving, with credit card transactions outpacing debit card transactions, positively impacting interchange fee income [5] - The company achieved a Pix market share of 8.5%, with ongoing efforts to replicate this success in other products [7] Company Strategy and Development Direction - The company is focused on continuous innovation across its seven verticals, which are interconnected to enhance client value and profitability [8] - The management emphasized the importance of technology and AI in improving efficiency and reducing costs, with plans for hyper-personalization and enhanced customer experience [70] - The company aims to maintain a balanced ratio of secured and unsecured loans while deepening credit penetration [9] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in achieving further growth in 2026, with expectations of continued loan growth and NIM expansion [19][66] - The company anticipates a cost of risk between 5.5% and 6% for 2026, with a focus on maximizing risk-adjusted NIM [50][66] - Management acknowledged the competitive landscape but highlighted their advantages in client base, funding costs, and digital distribution channels [73] Other Important Information - The company maintained a strong NPS of 85 points, indicating high customer satisfaction [4] - The average balance per active client reached BRL 2,100, with total funding growing by 32% year-on-year [11] - The company is preparing for an Investor Day on May 11th, where further insights into future strategies will be shared [20] Q&A Session Summary Question: Concerns about efficiency ratio progress - Management acknowledged the slower progress in efficiency but highlighted significant improvements in ROE and client growth, reaffirming commitment to the 60/30/30 plan [21][22] Question: Future dividend payments strategy - The company plans to maintain a 20% payout ratio for dividends, balancing growth and capital needs [25][27] Question: Fee income growth expectations - Management noted that fee income growth was impacted by accounting changes and competitive pressures but expects initiatives to drive future growth [31][36] Question: Provisioning and asset quality concerns - Management clarified that asset quality metrics are performing as expected, with adjustments made for more conservative risk assessments [46][49] Question: Private payroll loan growth and competition - The company is optimistic about the private payroll loan segment, leveraging its distribution channels and competitive advantages to sustain growth [58][73]