Inter Announces First Quarter 2022 Results

Rhea-AI Summary

In its first quarter results for 2022, Inter reported a remarkable performance with total revenues reaching R$ 1.2 billion, a 130% YoY increase. The user base expanded to 18.6 million clients, up 82% YoY, while adjusted net profit increased by 32% YoY to R$ 27 million. The company successfully integrated USEND and plans to migrate its shares to Nasdaq on June 23, aiming for enhanced capital access. Key metrics show significant growth across banking, credit, and insurance sectors, indicating strong operational momentum.

Positive

• Total revenues of R$ 1.2 billion for 1Q22, up 130% YoY.
• Adjusted net profit increased 32% YoY to R$ 27 million.
• Client base grew to 18.6 million, up 82% YoY.
• Acquisition of USEND integrated successfully.
• Plans to migrate shares to Nasdaq for broader capital access.

Negative

• None.

The Super App grew in all business segments, expanded client engagement and more than doubled total revenues

BELO HORIZONTE-MG, Brazil, May 16, 2022 /PRNewswire/ -- Inter (B3: BIDI3, BIDI4 and BIDI11), a leading Brazilian super app, offering financial and non-financial services to more than 18 million customers, today reported financial results for its first quarter ended March 31, 2022.

João Vitor Menin, Inter's CEO, said: "We kicked off the year with several milestones that will mark 2022 as a great year for Inter. We remain highly focused on client monetization, with our revenue per client increasing while the cost to serve decreases, thus having an accelerated momentum in expanding our margins per client.

Our mission is to simplify people's lives, and the way we achieve this is by having a best-in-class team that shares the "sangue laranja" values. I'm convinced that our culture is stronger than ever and will be a key competitive advantage for Inter's success in the coming years

Last week our shareholders approved the migration of our shares from B3 to Nasdaq, a transaction that will enable us to will enable us to access the largest capital market in the world, paving the road for additional funding sources as the company continues its solid growth pace. We are looking forward to ringing the bell at Nasdaq on June 23^rd."

Growth and Operational Highlights

• 18.6 million clients in 1Q22, growth of 82% YoY; on track to surpass the 20mm mark until the end of 2Q22
• R$ 1.2 billion in total revenues¹ for 1Q2022, up 130% YoY
• Adjusted net profit² of R$27 million in 1Q22, a 32% YoY growth
• Growth was more skewed to higher yielding products for the quarter due to seasonality, though our demand deposit base remains close to 50% of our total funding base.
• Continue to operate with capital and liquidity levels that are multiple times higher than the industry's average
• The acquisition of USEND closed and the company is now wholly owned by Inter

¹ Total revenues = income from financial intermediation + service fee income (gross cashback) + other operating income
² Adjusted net profit does not consider negative effects from the CSLL tax rate changes

Key Metrics and Recent Business Highlights

Day to day banking

• R$9.6 billion in demand deposits, an increase of 37% YoY;
• R$14.1 billion in cards in 1Q22, an 86% YoY growth;
• Card revenues went up by 88% YoY, reaching R$154 million in 1Q2022.

Credit

• R$19.8 billion in the expanded loan portfolio, growth of 81% YoY;
• Credit underwriting reached R$4.5 billion in 1Q22, up 22% YoY;
• Provision for loan losses represented 3.0% of the extended credit portfolio
• NPL over 90 days remained stable at 3.3% of the total portfolio.

Investments

• Investment revenues increased 144% YoY, reaching R$36.6 million in 1Q2022;
• Over 2 million investor clients on our platform, up 34% YoY;
• R$58 billion in assets under custody (AuC) in 1Q2022, growth of 11% YoY;
• The most complete investment platform in Brazil, the only one with a hosted international stock trading platform, structured products, trading robots, and many other features available in the Super App.

Insurance

• 915 thousand active insurance customers in 1Q2022, growth of 150% YoY;
• Surpassed R$29.8 million in insurance sales in 1Q2022, 52% growth YoY;
• Made 195,000 insurance sales in the quarter, a growth of 32% YoY.

Marketplace

• R$1.1 billion in GMV in 1Q2022, growth of 56% YoY;
• Reached 3.1 million active customers (LTM);
• R$101 million in revenues in 1Q2022, 145% higher than in 1Q2021;
• 9.6% take-rate in 1Q22, 3.5 p.p. above the take-rate in 1Q21;

Cross Border Services

• USEND Integration started in 1Q2022;
• Overcame USD200 million in international remittances for the quarter;
• Reached peaks of 3,000 Global Accounts opened in just one day.

About Inter   

More than a digital bank, this is a Super App that simplifies people's lives: Inter has reinvented itself and creates everyday products and services for its more than 18 million customers, whether that's taking care of people's finances, online shopping, sending money abroad or earning cashback. Everything comes together in the same app; it is simple and fully digital. Inter offers complete services in banking, investments, credit, insurance and remittances, in addition to a virtual mall that brings together the best retailers in Brazil and the United States. On January 25, 2022, Inter closed the acquisition of USEND, a US fintech specializing in offering financial and non-financial services to a growing client base of more than 150,000 customers across 40 states.  

Contacts:

Grayling
Lucia Domville / Fabiane Goldstein
M +1 646. 824.2856/ +1 945.625.4793 
lucia.domville@grayling.com  / fabiane.goldstein@grayling.com

 

View original content:https://www.prnewswire.com/news-releases/inter-announces-first-quarter-2022-results-301548515.html

SOURCE Inter

FAQ

What were Inter's total revenues for Q1 2022?

Inter reported total revenues of R$ 1.2 billion for the first quarter of 2022, a 130% increase year-over-year.

How many clients does Inter have as of Q1 2022?

As of the first quarter of 2022, Inter has 18.6 million clients, which is an 82% increase from the previous year.

When is Inter planning to migrate its shares to Nasdaq?

Inter plans to migrate its shares to Nasdaq on June 23, 2022.

What was the adjusted net profit for Inter in Q1 2022?

Inter's adjusted net profit for the first quarter of 2022 was R$ 27 million, reflecting a 32% increase year-over-year.

What significant acquisition did Inter complete recently?

Inter successfully closed the acquisition of USEND, enhancing its service offerings.