Inter&Co, Inc (Inter), (NASDAQ: INTR | B3: INBR32), the premier
Super App which provides financial and digital commerce services to
more than 26 million customers, today reported financial results
for its first quarter ended March 31, 2023. The full earnings
release has been made available on the Company’s Investor Relations
website at ri.bancointer.com.br.
João Vitor Menin, CEO of Inter&Co stated:
“Following an incredible 2022, we’ve seen a
strong start of 2023. I’m happy to say that we are harvesting
profitable results from our solid foundations.
Our focus on delighting our clients while
delivering operational excellence has been paramount. We had a
significant level of new active client adds, reaching the
impressive mark of 1 million in one quarter. Additionally, we
increased our activity ratio, optimized our marketing spend, and
launched the personalized Super App, all leading to higher
engagement.
We continue to focus on high margin products and
capital efficiency. This quarter we reported a strong level of
operational leverage, with an impressive 62% efficiency ratio.
We continue actively repricing our portfolio,
and as result our NIM continued expanding and reached its highest
level in over a year.”
First Quarter 2023 highlights
1. Delivered a profitable
quarter, mainly as result of loan repricing and cost
optimization:
- Total gross
revenue: Following a strong 2022 year at R$ 6 billion,
Inter&Co delivered a robust first quarter in 2023 with total
gross revenue reaching R$ 1.8 billion, up 6% quarter-over-quarter
(QoQ) and up 41% year-over-year (YoY).
- Improved cost
efficiencies: Decreased cost-to-serve by 21% to R$ 13.8,
achieved 62% efficiency ratio, and increased active clients per
employee to 3500, a 56% YoY increase.
- Sustained profitability and
earnings growth: Reached net income of R$ 24 million in
1Q2023.
2. Products achieved even
greater market penetration across all major aspects of the client
journey:
- Bank account
penetration: 12.5% in 1Q2023, up from 11.8% in
4Q2022.
- Demand deposits:
3.6% in 1Q23, up from 3.4% in 4Q2022.
- Payroll loans:
1.0% in 1Q2023, up 7bps QoQ.
3. Expanded loan portfolio,
balancing risk and profitability through repricing:
- Gross loan
portfolio: Loans grew to R$25.1 billion in 1Q2023,
increasing 36% YoY.
- Repricing the
portfolio: The ongoing repricing is one of the key
strategies to deliver more profitability. This enabled Inter to
reach an 8.7% NIM (IEP-Only), a 70bps improvement in one year.
4. Maintained a strong funding
based:
- Continued to grow total
customer deposits: Increasing to R$ 30.8 billion, or a
3.3% increase QoQ.
- All-in cost of funding of
65%: A significant advantage against competitive peer
platforms.
5. Demonstrated strong adoption
of its transactional platform with the client base reaching higher
levels of engagement.
- Inter Shop, Inter
Insurance, Inter Invest, and Inter Global: All of the
business verticals experienced strong uptake among clients from
1Q2022 to 1Q2023 – with more than 65% of clients engaging with
three or more products.
- Marketing efforts were more
effective to drive client acquisition: This led to
higher-quality and more engaged clients who were more apt to use
the products and services.
Conference CallInter&Co
will discuss its 1Q2023 financial results today on May 8th, 2023 at
2:00 PM ET (3:00 pm Brazilian Time). The webcast details, along
with the earnings press release and financial tables can be
accessed on the Company’s Investor Relations website at
ri.bancointer.com.br.
About
Inter&Co Inter&Co is the holding company of Inter
Group and indirectly holds all of Banco Inter’s shares. Inter is
the premier Super App providing financial and digital commerce
services to more than 26 million customers. We offer a complete
range of solutions, including banking, investments, credit,
insurance and cross-border services, in addition to a marketplace
that brings together the best retailers in Brazil and the United
States.
Contacts:Ideal Amanda Shareghi M +1 831 818
2893 / +1 213 631 5437amanda.shareghi@ideal.pr
DisclaimerThis report may
contain forward-looking statements regarding Inter, anticipated
synergies, growth plans, projected results and future strategies.
While these forward-looking statements reflect our Management’s
good faith beliefs, they involve known and unknown risks and
uncertainties that could cause the company’s results or accrued
results to differ materially from those anticipated and discussed
herein. These statements are not guarantees of future performance.
These risks and uncertainties include, but are not limited to, our
ability to realize the amount of projected synergies and the
projected schedule, in addition to economic, competitive,
governmental and technological factors affecting Inter, the
markets, products and prices and other factors. In addition, this
presentation contains managerial numbers that may differ from those
presented in our financial statements. The calculation methodology
for these managerial numbers is presented in Inter’s quarterly
earnings release.
Statements contained in this report that are not
facts or historical information may be forward-looking statements
under the terms of the Private Securities Litigation Reform Act of
1995. These forward-looking statements may, among other things,
beliefs related to the creation of value and any other statements
regarding Inter. In some cases, terms such as “estimate”,
“project”, “predict”, “plan”, “believe”, “can”, “expectation”,
“anticipate”, “intend”, “aimed”, “potential”, “may”, “will/shall”
and similar terms, or the negative of these expressions, may
identify forward looking statements.
These forward-looking statements are based on
Inter's expectations and beliefs about future events and involve
risks and uncertainties that could cause actual results to differ
materially from current ones. Any forward-looking statement made by
us in this document is based only on information currently
available to us and speaks only as of the date on which it is made.
We undertake no obligation to publicly update any forward-looking
statement, whether written or oral, that may be made from time to
time, whether as a result of new information, future developments
or otherwise. For additional information that about factors that
may lead to results that are different from our estimates, please
refer to sections “Cautionary Statement Concerning Forward-Looking
Statements” and “Risk Factors” of Inter&Co Annual Report on
Form 20-F.
The numbers for our key metrics (Unit
Economics), which include active users, average revenue per active
client (ARPAC), cost to serve (CTS) and cross selling index (CSI),
are calculated using Inter’s internal data. Although we believe
these metrics are based on reasonable estimates, but there are
challenges inherent in measuring the use of our business. In
addition, we continually seek to improve our estimates, which may
change due to improvements or changes in methodology, in processes
for calculating these metrics and, from time to time, we may
discover inaccuracies and make adjustments to improve accuracy,
including adjustments that may result in recalculating our
historical metrics.
About Non-IFRS Financial
Measures To supplement the financial measures presented in
this press release and related conference call, presentation, or
webcast in accordance with IFRS, Inter&Co also presents
non-IFRS measures of financial performance, as highlighted
throughout the documents. The non-IFRS Financial Measures include,
among others: Adjusted Net Income, Cost to Serve, Cost of Funding,
Efficiency Ratio, Underwriting, NPL > 90 days, NPL 15 to 90
days, NPL and Stage 3 Formation, Cost of Risk, Coverage Ratio,
Funding, All-in Cost of Funding, Gross Merchandise Volume (GMV),
Premiums, Net Inflows, Global Services Deposits and Investments,
Fee Income Ratio, Client Acquisition Cost, Cards+PIX TPV, Gross
ARPAC, Net ARPAC, Marginal NIM 1.0, Marginal NIM 2.0, Net Interest
Margin IEP + Non-int. CC Receivables (1.0), Net Interest Margin IEP
(2.0), Cost-to-Serve.
A “non-IFRS financial measure” refers to a
numerical measure of Inter&Co’s historical or financial
position that either excludes or includes amounts that are not
normally excluded or included in the most directly comparable
measure calculated and presented in accordance with IFRS in
Inter&Co’s financial statements.
Inter&Co provides certain non-IFRS measures
as additional information relating to its operating results as a
complement to results provided in accordance with IFRS. The
non-IFRS financial information presented herein should be
considered together with, and not as a substitute for or superior
to, the financial information presented in accordance with IFRS.
There are significant limitations associated with the use of
non-IFRS financial measures. Further, these measures may differ
from the non-IFRS information, even where similarly titled, used by
other companies and therefore should not be used to compare
Inter&Co’s performance to that of other companies.
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