Inter & Co, Inc. (INTR) Q1 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call summary reveals strong financial performance with significant growth in loan portfolios, net income, and net interest margin, coupled with improved efficiency ratios. While there are concerns about rising expected credit losses and costs of risk, management's confidence in offsetting challenges and the positive outlook for NIM suggest resilience. The Q&A section indicates that analysts' concerns were addressed, and management's long-term confidence is evident. Given the market cap, the overall sentiment is positive, predicting a stock price increase of 2% to 8% over the next two weeks.
Key Financial Performance
Gross Loan Portfolio Scaled to more than BRL 50 billion, representing a 33% growth year-over-year. Excluding the SME portfolio, growth was 37% year-on-year. This growth is attributed to a diversified mix of products like mortgages, payroll loans, and credit cards.
Net Income Reached almost BRL 400 million for the first quarter, with a run rate of BRL 1.6 billion annually. This reflects disciplined capital allocation, risk management, and cost control.
Total Payment Volume (TPV) Achieved a run rate of BRL 1.7 trillion in the first quarter, with a 25% growth year-over-year. This growth is driven by high client engagement and increased transaction volumes.
Credit Portfolio Growth Overall credit portfolio grew more than 30% year-over-year. Mortgages grew 42%, home equity grew 43%, payroll and personal loans grew 38%, and credit cards grew 27%. Growth is supported by a diversified product mix and solid risk management.
Net Interest Margin (NIM) Increased by 38% year-over-year, reaching 9.54%, the second-best on record. Growth was driven by strong performance in payroll loans, credit cards, mortgages, and home equity loans.
Net Fee Revenue Grew 18% year-over-year, supported by cross-selling and increased fee composition from a complete ecosystem of products.
Net ARPAC (Average Revenue Per Active Client) Reached BRL 34, a 9% growth year-over-year. Mature clients generate over BRL 130 in gross ARPAC, showcasing the potential for higher monetization as clients mature.
Funding Total funding reached BRL 74 billion, a 25% annual growth. Loan-to-deposit ratio increased by 4 percentage points year-over-year, driven by faster loan growth compared to deposits.
Efficiency Ratio Improved to a record low of 43.8%, a 170 basis points improvement compared to the prior quarter. This reflects strong operating leverage and cost control.
Return on Equity (ROE) and Return on Assets (ROA) ROE reached 15.5% and ROA reached 1.59%, both record numbers. Return on Tangible Equity reached 19.5%, highlighting profitability improvements.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Launch of Seven AI tool: Inter launched Seven, a multi-agent AI tool that connects their data infrastructure to deliver enhanced client experiences. It is a transactional AI tool capable of investment advice, PIX transfers, gift card purchases, and credit card management.
Client base growth: Inter's client base reached 44 million, with a 60% activation rate, the highest since 2024. Engagement levels are high, with 8.5% of Brazil's PIX transactions flowing through Inter.
Market share expansion: Inter is gaining market share across key products like PIX, credit cards, mortgages, and investments, consolidating its position as a high-volume, high-engagement platform.
Loan portfolio growth: The gross loan portfolio grew 33% year-over-year to nearly BRL 50 billion, with strong growth in mortgages (42%), home equity (43%), and payroll loans (38%).
Efficiency improvements: Inter achieved a record low efficiency ratio of 43.8%, reflecting disciplined cost control and operating leverage.
AI-driven transformation: Inter is leveraging AI across divisions, including fraud prevention, customer service, and credit underwriting, marking a strategic shift towards an AI-driven banking model.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Delinquency and NPL Increase: Delinquency in the system is increasing, and NPLs rose from 4.7% to 5.1% this quarter. This could pressure asset quality metrics and impact financial performance.
Cost of Risk: The cost of risk increased due to private payroll loans being in the books for several quarters. This could affect profitability if not managed effectively.
Loan-to-Deposit Ratio: The loan-to-deposit ratio increased by 4 percentage points in one year, indicating that loan growth is outpacing deposit growth. This could lead to liquidity risks if not carefully monitored.
Macroeconomic Volatility: Volatility in macroeconomic variables could impact margins and financial stability, especially given the more levered balance sheet.
Seasonality Impact: Seasonal factors, such as the first quarter's typical pressure on asset quality metrics, could affect financial performance.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Owners Day Event: The company plans to host an Owners Day event on May 11, 2026, to discuss long-term plans, including client principality, credit penetration, monetization strategies, and AI advancements.
AI Tool - Seven: The company launched 'Seven,' a multi-agent AI tool designed to enhance client experience and operational efficiency. It is expected to play a crucial role in the company's business model moving forward.
Credit Portfolio Growth: The company expects continued growth in its credit portfolio, with a focus on secured loans such as mortgages, payroll loans, and credit cards. Private payroll loans are highlighted as a key growth area.
Market Share Expansion: The company anticipates gaining market share across key products, including PIX, credit cards, mortgages, and investments, driven by its complete ecosystem.
Revenue and Profitability: The company projects strong revenue growth and profitability, supported by a growing loan portfolio, improved monetization strategies, and cost control measures.
AI Integration: The company plans to expand the use of AI across all divisions, including fraud prevention, customer service, and credit underwriting, to drive operational efficiency and profitability.
Efficiency and Operating Leverage: The company aims to maintain high operating leverage and improve efficiency ratios, targeting further reductions in costs relative to revenue growth.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
The selected topic was not discussed during the call.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:What is the level of expected credit loss for private payroll loans and the breakeven point?
A:The expected credit loss for private payroll loans is in the double-digit range, and the breakeven point is reached in around 2 quarters or 6 months.
Q:What is the expected cost of risk for the year?
A:The expected cost of risk for the year is closer to 6%, up from the previous estimate of 5% to 5.5%.
Q:What are the expectations for NIM in the coming quarters?
A:NIM is expected to grow by around 10 basis points on average per quarter. The first quarter's stability was due to seasonality in funding, but continuous improvement is anticipated.
Q:What is the impact of changes in payroll loan rules on the business?
A:The changes in payroll loan rules are not expected to materially impact underwriting or business dynamics. The company is confident in offsetting any potential reduction through its distribution channels.
Q:How much of the pickup in NPLs is related to private payroll loans and seasonality?
A:The pickup in NPLs is roughly split half and half between seasonality and internal dynamics, including private payroll loans and credit cards.
Q:What is the company's view on the new debt renegotiation program in Brazil?
A:The program is seen as positive but not materially changing business dynamics. More than half of the delinquent base is addressable under the program.
Q:Why are personnel expenses growing at 20% despite stable employee numbers?
A:The company is investing in a more senior management team to improve credit underwriting, collections, and innovation. Revenue per employee has doubled over the past 2.5 years.
Q:What is the status of the SME business and its future prospects?
A:The SME business is growing, with strong client acquisition and transactional business. Credit penetration is currently low at 3%, but there is significant potential for growth.
Q:Why have fees been growing slower than other metrics?
A:Fee growth has been slower due to pressures in certain segments, but initiatives in insurance, credit cards, and conversational sales are expected to drive future growth.
Q:What is the explanation for the stock's decline despite positive results?
A:Management is confident in the company's fundamentals and long-term prospects, attributing the stock's decline to market reactions rather than business performance.
Q:Review of Unclear Management Responses
A:Management avoided directly addressing the specific reasons behind the stock's 12% decline, instead emphasizing confidence in the company's fundamentals and long-term prospects.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AI opportunity
AI tool
ARPAC BRL
BRL client
BRL portfolio
BRL run
Inter vision
Monday
Nazareth Teixeira
Owners Day
PIX
Seven
Teixeira de
Vitor Nazareth
card mortgage
client BRL
consequence
cost control
de Souza
installment
interest portfolio
loan credit
momentum
monetization
pace BRL
payroll highlight
picture
principality
quality factor
rate BRL
result discipline
return
run rate
strength
topic
view
INTR Transcript
Inter & Co, Inc. (INTR) Q1 2026 Earnings Call Transcript
Positive5-9
The earnings call summary reveals strong financial performance with significant growth in loan portfolios, net income, and net interest margin, coupled with improved efficiency ratios. While there are concerns about rising expected credit losses and costs of risk, management's confidence in offsetting challenges and the positive outlook for NIM suggest resilience. The Q&A section indicates that analysts' concerns were addressed, and management's long-term confidence is evident. Given the market cap, the overall sentiment is positive, predicting a stock price increase of 2% to 8% over the next two weeks.
Inter & Co, Inc. (INTR) Q2 2025 Earnings Call Transcript
Positive8-7
The earnings call reveals robust financial performance with record revenues, net income, and ROE. The company reported strong growth in client base and product offerings, with optimistic guidance on private payroll products and asset quality. Analysts' questions during the Q&A session were met with confident responses, reinforcing the positive sentiment. The market cap suggests a strong positive reaction (>8%) is likely, given the company's significant achievements and growth prospects.
Inter & Co, Inc. (INTR) Q4 2024 Earnings Call Transcript
Positive5-12
The earnings call reveals strong financial growth with significant increases in revenue and loans, as well as improved asset management. While there are concerns about regulatory impacts and supply chain challenges, the overall sentiment is positive due to record net income and optimistic guidance on loan growth and NIM improvements. The lack of a shareholder return plan is a minor negative, but the strong financial performance and growth prospects outweigh it. Given the market cap, the stock is likely to see a moderate positive reaction.
Inter & Co, Inc. (INTR) Q3 2024 Earnings Call Transcript
Positive11-15
The earnings call presented strong financial performance with significant revenue and net income growth, improved efficiency ratios, and a record high ROE. While the Q&A revealed some caution regarding the macro environment and expense growth, the overall sentiment remains positive due to robust client growth, strategic acquisitions, and strong credit risk management. The lack of explicit shareholder return plans is a slight negative, but the positive financial metrics and optimistic guidance outweigh this, suggesting a positive stock price movement in the next two weeks.
INTR Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
