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Moody's assigns debut AA+.br ratings to Inter, recognizing strong financial position

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Inter&Co (NASDAQ: INTR), a leading financial super app, has received AA+.br ratings from Moody's for Banco Inter in Brazil, indicating a strong financial position and stable outlook. The ratings underscore Inter's growth in digital retail banking, profitability, and robust capital levels. Moody's highlighted Inter's low funding costs, strong risk management, and controlled delinquency levels. CEO Joao Vitor Menin affirmed the company's commitment to exceptional services and their 60-30-30 plan. Moody's anticipates continued growth in profitability and asset quality for Inter.

Positive
  • Moody's has assigned AA+.br ratings to Banco Inter, indicating strong financial health.
  • The ratings come with a stable outlook, reflecting confidence in future performance.
  • Inter&Co serves over 32 million customers across the Americas, indicating a broad market reach.
  • Inter's digital retail banking model is expanding, contributing to profitability growth.
  • Moody's report notes robust capital levels and low funding costs for Inter.
  • The company maintains strong risk management practices, with controlled delinquency levels.
  • CEO Joao Vitor Menin emphasized commitment to the 60-30-30 plan and delivering value to customers and shareholders.
Negative
  • No immediate negative financial or business impacts were specifically highlighted in the press release.

Insights

Moody's debut AA+.br rating for Inter demonstrates a significant endorsement of the bank's financial health. This rating is important as it reflects high credit quality, suggesting that Inter has a low default risk. It’s impressive considering the competitive nature of the digital banking sector in Latin America.

From a profitability perspective, Inter's ability to maintain robust capital levels while expanding operations is commendable. The rating highlights low funding costs, which, in an industry characterized by thin margins, is a notable advantage. This low cost of funds enables Inter to offer competitive rates on loans and deposits, attracting more customers and boosting its market share.

For retail investors, this rating indicates that Inter is a stable investment with low credit risk. The stable outlook by Moody's suggests that the bank is expected to continue performing well, maintaining its asset quality and capital levels. However, investors should also consider potential industry-wide risks such as economic downturns and regulatory changes, which could impact the banking sector as a whole.

Moody's rating shines a light on Inter's expanding digital retail banking model. The company's growth in this space is a key driver of its strong financial position. Digital transformation in banking is reshaping the industry and Inter is well-positioned as a leader in this field. The consistent expansion cited in the rating report indicates a well-executed growth strategy that resonates with a broad customer base.

Moreover, the emphasis on robust risk management highlights Inter's ability to control delinquency levels and implement prudent credit risk policies. This is critical in digital banking, where rapid scaling can often lead to increased credit risks. Inter's controlled delinquency levels are a testament to its stringent risk management frameworks, which ensure long-term stability.

Investors should note that being a first mover in digital banking provides a competitive edge, but it also requires continuous innovation to stay ahead. While the current outlook is stable, the company must keep evolving its technologies and practices to maintain this momentum, especially in a rapidly changing digital landscape.

BELO HORIZONTE, Brazil, May 31, 2024 (GLOBE NEWSWIRE) -- Inter&Co (NASDAQ: INTR), the leading financial super app serving over 32 million customers across the Americas, is pleased to announce that Moody's has assigned Banco Inter in Brazil with first time AA+.br long-term issuer and deposit ratings, along with a stable outlook. These debut ratings from Moodys highlight Inter's strong financial position and reflect its expanding digital retail banking model and growth in profitability.

Moody's report emphasized Inter's consistent expansion of operations while maintaining robust capital levels and low funding costs. The ratings also recognize Inter's strong risk management practices, with controlled delinquency levels and prudent credit risk policies.

"We are proud of the ratings assigned by Moody's, which further validate our position in the market," said Joao Vitor Menin, CEO of Inter&Co. "We remain committed to delivering exceptional services and value to our customers and shareholders and fulfilling our 60-30-30 plan."

The ratings affirmation reinforces Inter's dedication to maintaining a strong financial position and delivering reliable services to its growing customer base. Per the report, Moody's expects Inter to continue its growth in profitability and maintain asset quality and capital levels in the future.

About Inter&Co:
Inter&Co (NASDAQ: INTR), the company that controls Banco Inter in Brazil and the subsidiary Inter&Co Payments, is the pioneering financial super app serving over 32 million customers across the Americas. The Inter&Co ecosystem offers a broad array of services, including banking, investments, mortgages, credit, insurance, and cross-border payments. The financial super app also boasts a dynamic marketplace, linking consumers with shopping discounts, cashback rewards, and exclusive access to marquee events across the globe. Focused on innovation and captivating member experiences, Inter&Co delivers comprehensive financial and lifestyle solutions to meet the evolving needs of modern consumers.

For IR inquires:
ir@inter.co
santiago.stel@inter.co

For press inquiries:
inter@chemistrycultura.com
kaio.philipe@inter.co


FAQ

What ratings did Moody's assign to Banco Inter?

Moody's assigned AA+.br long-term issuer and deposit ratings to Banco Inter.

When were the new ratings for Banco Inter announced?

The new ratings for Banco Inter were announced on May 31, 2024.

What does the AA+.br rating indicate about Inter&Co's financial position?

The AA+.br rating indicates a strong financial position and a stable outlook for Inter&Co.

How many customers does Inter&Co serve?

Inter&Co serves over 32 million customers across the Americas.

What growth areas did Moody's highlight in their report?

Moody's highlighted growth in digital retail banking, profitability, and robust capital levels.

What are Inter&Co's strengths according to Moody's?

Inter&Co's strengths include low funding costs, strong risk management, and controlled delinquency levels.

What is the outlook for Inter&Co according to Moody's?

Moody's provided a stable outlook for Inter&Co, expecting continued growth in profitability and asset quality.

Inter & Co. Inc.

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Banks - Regional
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Belo Horizonte