INTR — Inter & Co, Inc.

Summary of INTR Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• User Growth: Inter & Co, Inc. reported 18 million users as of December 2025, with 25 million active clients (58% activation rate).
• Transaction Metrics: Daily logins increased to 21.5 million, and the company processed nearly 1 billion transactions in December.
• Loan Portfolio Growth: Achieved a 36% annual growth in the loan portfolio, with a 10% quarterly growth rate.
• Revenue Performance: Total gross revenues reached BRL 15 billion (45% YoY growth), while net revenues grew 31% YoY to BRL 8.4 billion. Net interest income rose 41% YoY.
• Net Income: Reported net income of BRL 1.3 billion, achieving a 15% ROE.
• Cost of Risk: Closed at 5.3%, with a slight improvement in asset quality metrics.
• Efficiency Ratio: Improved to 45.5% from 48.4% YoY.

2. Strategic Updates and Business Highlights

• Product Innovations: Launched several features including My Pick Bank and My Credit Journey, enhancing user engagement and investment capabilities.
• Brand Recognition: Ranked as the seventh most powerful brand in Brazil and the number one financial app among Gen Z.
• Global Expansion: Secured a US bank branch license, allowing for direct product offerings in the US market, including USD accounts and credit cards.
• Private Payroll Loans: Portfolio reached BRL 2 billion with 500,000 clients, contributing significantly to new client activations.

3. Forward Guidance and Outlook

• Growth Projections: Anticipated loan growth of 25-30% for 2026, with expectations for continued NIM expansion.
• Efficiency Improvement: Aiming for further reductions in the efficiency ratio, leveraging technology and AI for operational leverage.
• Credit Card Strategy: Plans to enhance the credit card portfolio through improved risk management and customer engagement strategies.

4. Bad News, Challenges, or Points of Concern

• Efficiency Ratio Concerns: Some investors expressed concerns about the slow progress in improving the efficiency ratio, which deteriorated slightly in the latest quarter.
• Competitive Pressures: Increased competition in the private payroll loan segment from other banks, which could impact growth and pricing strategies.
• Provisioning and NPLs: Some volatility in provisioning levels and an increase in stage three NPLs, particularly in personal loans and mortgages, raised questions about asset quality management.

5. Notable Q&A Insights

• Efficiency Strategy: Management acknowledged the need for faster improvements in efficiency and indicated ongoing efforts to leverage technology and AI to reduce costs.
• Dividend Policy: The company plans to maintain a 20% payout ratio for dividends, balancing growth and capital needs.
• Market Positioning: Emphasized competitive advantages in funding costs and digital client engagement as key to sustaining growth in the face of increasing competition.
• Future of Private Payroll Loans: Management expressed confidence in the product's growth potential, with a focus on cross-selling and re-engaging inactive clients.

Overall, Inter & Co, Inc. showcased strong growth and innovation in 2025, while also addressing challenges related to efficiency and competitive pressures as they look to the future.