Inter & Co(US:INTR)2024-05-12 10:32Financial Data and Key Metrics Changes - The efficiency ratio improved to 47.7%, reflecting a strong improvement of 3.6 percentage points in the quarter [4][67]. - The company achieved record gross revenue of BRL 2.3 billion and net revenue of BRL 1.4 billion, representing a year-over-year growth of 37% and a quarter-on-quarter growth of 7% [18][68]. - Return on equity (ROE) reached 9.7%, marking a significant milestone for the company [23][68]. Business Line Data and Key Metrics Changes - The loan portfolio grew by 28% year-over-year, surpassing BRL 32 billion, with a quarterly growth of 4% [15][68]. - Insurance sales reached over 404,000, with 1.9 million active clients, generating a record net revenue of BRL 52 million [12]. - Investment products saw a 61% year-over-year growth, reaching BRL 95 billion [12]. Market Data and Key Metrics Changes - The company reported a total payment volume (TPV) increase of 42% year-over-year, indicating strong growth and adoption of its platform [29]. - The assets under custody and deposits in U.S. dollars reached $460 million, reflecting a remarkable 223% year-over-year growth [59]. Company Strategy and Development Direction - The company aims to continue growing clients, loans, deposits, and top-line revenue through innovation and enhancing client experience [8][26]. - The strategic focus includes expanding credit lines, particularly in fixed financing and Buy Now Pay Later offerings, while leveraging its technology platform for global expansion [26][32]. - The company is committed to improving operational leverage and expanding net interest margins (NIM) through streamlined operations and optimized portfolio mix [27][66]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining loan growth in the 30% range, particularly in the second half of the year, which is typically more active [47][108]. - The management highlighted the importance of maintaining a healthy balance between growth and profitability, emphasizing the resilience of their business model [41][68]. - The company is optimistic about the potential of new products like PIX Financing, which is expected to significantly contribute to profitability [106]. Other Important Information - The company is focused on enhancing client engagement through its loyalty program, Loop, which has shown a 66% spending lift among participants [60]. - The cost of funding remains competitive, with a stable performance at 61.9% of CDI, which is expected to benefit from further rate decreases [65]. Q&A Session Summary Question: Loan growth and asset quality concerns - Management indicated that the increase in non-performing loans (NPLs) was primarily seasonal and expressed confidence in maintaining loan growth around 30% [43][73]. Question: PIX Financing product potential - Management is excited about the PIX Financing product, noting its better delinquency rates compared to credit cards and its potential for significant market share growth [52][106]. Question: Cost control expectations - Management expects costs to grow at about half the pace of revenue growth, continuing to achieve operational leverage [112]. Question: Coverage ratio and risk management - Management is comfortable with the current coverage ratio of around 130%, indicating that they do not foresee a significant shift towards unsecured loans [114][119]. Question: Traditional payroll loans outlook - Management remains optimistic about the traditional payroll loans, highlighting the potential for growth through digital channels and new product offerings [99][122].