The following is a summary of the Inter & Co, Inc. (INTR) Q3 2024 Earnings Call Transcript:
Financial Performance:
Inter & Co reported a robust financial quarter, reaching a record-breaking ROE, surpassing the double-digit mark and reporting net income of BRL 260 million, which is 2.5x higher than the previous year's third quarter.
Loan books grew 7% during the quarter, achieving BRL 38 billion with record levels of underwriting in FGTS and Home Equity, surpassing BRL 6 billion combined loan balance.
The gross revenue achieved BRL 2.7 billion with a net revenue of BRL 1.6 billion, highlighting a year-over-year growth of 25% in total gross revenue and 32% in net terms.
Business Progress:
Inter & Co has reached 35 million clients, with the addition of 1.1 million new active clients this quarter, marking continuous growth in client acquisition and activation.
Significant advancements in digital banking, marketplace and investment services, demonstrating growth in transactions, credit lines, and asset under custody which surpassed BRL 122 billion.
Expansion of Inter's global presence, particularly in the US, with plans to extend the Global Account features potentially to other geographical regions in the coming year.
Opportunities:
Hyperpersonalization and AI in client engagement and product offerings, seen in the deployment of Inter Shop Concierge and increased success rates in sales conversions.
Expansion of market share across all seven business verticals, enhancing competitive positioning and client engagement.
Growing traction and positive performance in the Consumer Finance 2.0 portfolio, including PIX financing, Buy Now Pay Later, and Overdraft options.
Leveraging the US expansion to attract high-income clients and potentially expand Global Account features to other countries, supporting scalability and international growth.
Risks:
Gradual and cautious approach in the growth of the Consumer Finance 2.0 portfolio reflecting careful monitoring of delinquency trends and product performance in new finance options such as PIX financing.
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