Q2 2024 Inter & Co Inc Earnings Call Transcript
Key Points
- Inter & Co Inc (INTR) achieved a significant increase in active clients, welcoming 1 million new active clients this quarter, leading to a total of 33 million clients.
- The company reported a remarkable 47% year-over-year increase in total TPV, reaching BRL290 billion, with PIX transactions capturing 8% market share.
- Inter & Co Inc (INTR) saw a 90% increase in new credit lines, including PIX financing and buy now pay later, reaching a combined portfolio of BRL330 million.
- The insurance vertical had its best quarter ever, with sales exceeding 1 million and a 39% increase in active clients, reaching 2.6 million.
- The company achieved a record-breaking ROE of 10.4% and a net income of BRL223 million, reflecting strong profitability and financial performance.
- Despite the growth in insurance policies, revenue from insurance only grew by 10%, indicating that the new policies have a much lower ticket size.
- The cost of funding as a percentage of market rates increased to 64%, up from 55% in the first quarter of 2022, suggesting potential pressure in raising deposits.
- Marketing expenses saw a significant increase, raising concerns about the sustainability of these costs and their impact on profitability.
- The implied rates on personal loans and credit cards showed a decrease, which could indicate challenges in maintaining higher interest rates.
- The company faces potential volatility in cost of risk, with expectations to operate within a range of 5.0% to 5.5%, which may impact future financial stability.
Good afternoon, and thank you for standing by. Welcome to Inter & Co's Second Quarter Earnings Conference Call. Today's speakers are João Vitor Menin, Inter Global CEO; Alexandre Riccio, Brazil's CEO; Santiago Stel, Senior Vice President of Finance and Risk and CFO; and Rafaela de Vitória, Chief Economist and IRO. Please be advised that today's conference is being recorded, and a replay will be available at the company's IR website.
(Operator Instructions)
Please note that there is an interpretation button on your screen where you can choose the language you want to hear English or Portuguese. Throughout this conference call, we will be presenting non-IFRS financial information. These are important financial measures for the company, but are not financial measures as defined by IFRS.
Reconciliations of the company's non-IFRS financial information to the IFRS financial information are available in Inter & Co's earnings release and earnings presentation appendix. Today's discussion might include forward-looking statements, which are not guarantees of future performance.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
