Inter&Co, Inc Reports Third Quarter 2022 Financial Results

Rhea-AI Summary

Inter&Co (NASDAQ: INTR) reported strong Q3 2022 results, achieving the highest adjusted net income of R$23 million in the past four quarters. The gross loan portfolio surged 47% YoY to R$22 billion, alongside an impressive 84% YoY increase in total gross revenues, surpassing R$1.5 billion. Client growth was notable with 2.1 million new clients added, reaching a total of 22.8 million, while maintaining low customer acquisition costs (R$28). The company also launched the first 'invest now, pay later' platform in Brazil, enhancing its innovative service offerings.

Positive

• Net income reached R$23 million, highest in four quarters.
• Total gross revenues exceeded R$1.5 billion, up 84% YoY.
• Gross loan portfolio grew by 47% YoY to R$22 billion.
• Added 2.1 million net new clients, totaling 22.8 million.
• Achieved record high Cards+PIX TPV of R$155 billion, up 69% YoY.

Negative

• None.

BELO HORIZONTE-MG, Brazil, Nov. 08, 2022 (GLOBE NEWSWIRE) -- Inter&Co (NASDAQ: INTR | B3:INBR32), a leading Brazilian Super App offering financial and nonfinancial services, reported today financial results for its third quarter ended September 30, 2022. Financial results are expressed in Brazilian reais and are presented under IFRS (International Financial Reporting Standards). The full earnings release has been made available on the Company’s Investor Relations website at ri.bancointer.com.br/intereco.  

João Vitor Menin, CEO of Inter&Co. stated: 

"We concluded another excellent quarter, the first full quarter following our listing on Nasdaq in June. Our culture of innovation has been instrumental in delivering our strong financial performance and continually improving our customer value proposition, including our launch of the first ever “invest now, pay later” platform in Brazil.  

We achieved improving trends in asset quality metrics while maintaining strong loan growth. Our portfolio grew by 47% YoY and now stands at R$22 billion. During the quarter, we fully repriced several of our loan portfolios, including credit cards, SMEs, anticipation of receivables and agribusiness, and are in process of repricing the longer duration portfolios, mainly payroll and real estate loans.

We delivered the highest adjusted net income of the past four quarters, reaching R$23 million.

On the distribution side, we established partnership agreements with several soccer institutions, allowing us to broaden our reach to prospective clients. Our focus is not only on targeting the fans, but also the institutions, including corporate entities, employees, and players.  

We continued growing our global accounts, which reached 501 thousand, and generated a total of 606 thousand transactions in the quarter. 

Finally, I am confident that we have the right team and platform to close the year on a strong note and continue our momentum into 2023 to deliver a solid combination of growth and expanding profitability.” 

Highlights of the Third Quarter 2022: 

Net Income: highest adjusted net income of past four quarters, reaching R$23 million.

Total Gross Revenues¹: We delivered another strong quarter surpassing R$1.5 billion, up 84% YoY. Our revenues continue to be highly diversified, with fees comprising 35% of net revenues. 

Gross Loan Portfolio²: Our portfolio grew to R$22.0 billion, increasing 47% YoY. Nonperforming Loans (>90 days) remained flat this quarter, highlighting positive sequential trends in our credit quality. This improvement is a direct result of our relentless focus on improving our credit models and teams, which have been able to continuously leverage the large amount of data collected from our clients. 

Client Growth: We added 2.1 million net new clients during the quarter, reaching a total of 22.8 million. Our client growth is supported by the strong quality of our platform and brand, which has helped us acquire clients organically and operate with a low CAC of R$28, the lowest level in over a year. 

Volumes: Our Cards+PIX TPV reached a record high of R$155 billion in the quarter, growing 69% YoY. Our leading market share in PIX transactions increased to 8%.

^{1 Total Gross Revenues = Interest income calculated using the effective interest method + Revenues from services and commissions + Income from securities + Net gains / (losses) from derivatives + Other revenues 
2 Numbers from IFRS Balance sheet: Loans and anticipation of credit card receivables} 

Note on non-IFRS financial measures 

In addition to IFRS financials, this presentation includes certain summarized, non-audited or non-IFRS financial information. These summarized, non-audited or non-IFRS financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with IFRS. 

Conference Call 

Inter&Co will discuss its 3Q22 financial results on November 9^th, 2022 at 09:30 am ET (11:30 am Brazilian Time). The webcast details are available at IR website: ri.bancointer.com.br/intereco. 

About Inter&Co 
Inter&Co is the holding company of Inter Group and indirectly holds all of Banco Inter’s shares. Inter is a digital bank that simplifies people’s lives, where everything is integrated in a single app. Inter offers a complete range of services in 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:
Grayling
Lucia Domville / Fabiane Goldstein
M +1 646. 824.2856/ +1 945.625.4793 
lucia.domville@grayling.com  / fabiane.goldstein@grayling.com

 

FAQ

What were Inter&Co's Q3 2022 financial results?

Inter&Co reported a net income of R$23 million and total gross revenues of over R$1.5 billion, marking an 84% increase year-over-year.

How much did Inter&Co's loan portfolio grow in Q3 2022?

The gross loan portfolio grew by 47% year-over-year, reaching R$22 billion.

What was the client growth for Inter&Co in Q3 2022?

Inter&Co added 2.1 million new clients in Q3 2022, bringing the total to 22.8 million.

What innovative service did Inter&Co launch in Q3 2022?

Inter&Co launched the first 'invest now, pay later' platform in Brazil.

When will Inter&Co discuss its Q3 2022 results?

Inter&Co will discuss its Q3 2022 results on November 9th, 2022, at 09:30 am ET.