Inter&Co Inc. Reports Record Profit in Q2, Advances 60/30/30 Plan
Rhea-AI Summary
Inter&Co Inc. (NASDAQ: INTR | B3: INBR32) reported strong Q2 2024 financial results, achieving a record net income of R$223 million and a 10.4% ROE. The company's Total Payment Volume (TPV) increased 47% YoY to R$290 billion, while Assets under Custody (AuC) grew 37% YoY to R$105 billion. Inter&Co's CEO, João Vitor Menin, highlighted the successful execution of their 60/30/30 plan, combining growth and profitability across all seven verticals.
Key financial highlights include:
- Total Gross Revenue of R$2.4 billion, up 24% YoY
- Earnings before tax of R$298 million
- ROE improvement of 6.8 percentage points compared to Q2'23
Operationally, Inter&Co now serves over 33 million clients, with an activation rate of 55.3% and 3.3 million Global Clients in their more engaged affluent base.
Positive
- Record net income of R$223 million in Q2 2024
- ROE reached 10.4%, surpassing the double-digit milestone
- Total Payment Volume (TPV) increased 47% YoY to R$290 billion
- Assets under Custody (AuC) grew 37% YoY to R$105 billion
- Total Gross Revenue increased 24% YoY to R$2.4 billion
- Client base expanded to over 33 million, with 18.4 million active clients
- Global Clients (affluent base) reached 3.3 million
Negative
- None.
Insights
Inter&Co's Q2 2024 results demonstrate impressive financial performance and strategic execution. The company's record net income of
The 60/30/30 plan appears to be yielding results, with the company achieving growth across all seven verticals. The
Inter&Co's performance is particularly impressive given the challenging macroeconomic environment. The company's ability to achieve multiple times greater growth than the market in various products suggests a strong competitive advantage and effective market penetration strategy. The increase in Global Clients to 3.3 million, representing a more engaged and affluent user base, indicates successful upmarket movement and potential for higher revenue per user.
The consistent improvement in ROE over six consecutive quarters, culminating in the first double-digit ROE, demonstrates the company's ability to scale efficiently. This trend, combined with the strong growth in TPV and AuC, positions Inter&Co favorably in the competitive fintech landscape. The company's super app model appears to be resonating with users, potentially creating a network effect that could drive further growth and profitability.
BELO HORIZONTE, Brazil, Aug. 07, 2024 (GLOBE NEWSWIRE) -- Inter&Co Inc. (NASDAQ: INTR | B3: INBR32), the leading financial super app providing financial and digital commerce services to over 33 million customers, today reported financial results for the second quarter of 2024.
Highlights:
- Record net income of R
$ 223 million . 10.4% ROE, surpassing the double-digit milestone.- TPV increased
47% YoY, reaching R$ 290 billions . - AuC reached R
$ 105 billion , a37% increase YoY.
Inter&Co reported strong results with another quarter of increased profitability and consistent growth across its seven verticals. The results also show another important milestone: a
João Vitor Menin, CEO of Inter&Co commented:
"I can affirm that our combination of growth and profitability is propelling us to new heights. The execution of our 60/30/30 plan continues at full speed as we push boundaries, explore new horizons and consistently increase our profitability.”
He added that, "Our business generates alpha. We saw many products achieving multiple times greater growth than the market. As we continue to attract and engage more clients, across all seven of our verticals, we see great bottom-line results, such as the attainment of our first double-digit ROE of
Menin reinforced, “We are in a unique position as we combine growth and profitability, given our business model and tenacious execution of our 60/30/30 plan.”
Financial highlights – 2Q24
- Total Gross Revenue of R
$2.4 billion , a24% growth compared to Q2'23. - Record Net Income of R
$223 million and earnings before tax of R$298 million . - ROE reached
10.4% , a 6.8 p.p. improvement over 2Q23, the sixth consecutive quarter of improvement and the first-ever double-digit ROE.
Operational highlights – 2Q24
- More than 33 million clients with a
55.3% activation rate, or 18.4 million active clients. - Over R
$290 billion in TPV, growth of47% in one year. - 3.3 million Global Clients, a higher engaged base of affluent clients.
Conference Call
Inter&Co will discuss its Q'2 2024 financial results on August 7th, 2024, at 01 p.m. ET (2 p.m. BRT). The webcast details, along with the earnings materials can be accessed on the company’s Investor Relations website at https://investors.inter.co/en/.
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 33 million customers across the Americas. The Inter 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.
Investor Relations:
Rafaela de Oliveira Vitória
ir@inter.co
Media Relations:
interco@chemistryagency.com/ Kaio Philipe Kaio.Philipe@inter.co
Disclaimer
This report may contain forward-looking statements regarding Inter, anticipated synergies, growth plans, projected results and future strategies. While these forward-looking statements reflect our Management’s good faith beliefs, they involve known and unknown risks and uncertainties that could cause the company’s results or accrued results to differ materially from those anticipated and discussed herein. These statements are not guarantees of future performance. These risks and uncertainties include, but are not limited to, our ability to realize the number of projected synergies and the projected schedule, in addition to economic, competitive, governmental and technological factors affecting Inter, the markets, products and prices and other factors. In addition, this presentation contains managerial figures that may differ from those presented in our financial statements. The calculation methodology for these managerial numbers is presented in Inter’s quarterly earnings release. Statements contained in this report that are not facts or historical information may be forward looking statements under the terms of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may, among other things, beliefs related to the creation of value and any other statements regarding Inter. In some cases, terms such as “estimate”, “project”, “predict”, “plan”, “believe”, “can”, “expectation”, “anticipate”, “intend”, “aimed”, “potential”, “may”, “will/shall” and similar terms, or the negative of these expressions, may identify forward looking statements.
These forward-looking statements are based on Inter's expectations and beliefs about future events and involve risks and uncertainties that could cause actual results to differ materially from current ones. Any forward-looking statement made by us in this document is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether because of new information, future developments or otherwise. The definition of each such operational metric is included in the earnings release available on our Investor Relations website.
For additional information that about factors that may lead to results that are different from our estimates, please refer to sections “Cautionary Statement Concerning Forward Looking Statements” and “Risk Factors” of Inter&Co Annual Report on Form 20-F. The numbers for our key metrics (Unit Economics), which include, among other, active clients and average revenue per active client (ARPAC), are calculated using Inter’s internal data. Although we believe these metrics are based on reasonable estimates, there are challenges inherent in measuring the use of our business. In addition, we continually seek to improve our estimates, which may change due to improvements or changes in methodology, in processes for calculating these metrics and, from time to time, we may discover inaccuracies and adjust to improve accuracy, including adjustments that may result in recalculating our historical metrics.
About Non-IFRS Financial Measures
To supplement the financial measures presented in this press release and related conference call, presentation, or webcast in accordance with IFRS, Inter&Co also presents non-IFRS measures of financial performance, as highlighted throughout the documents. The non-IFRS Financial Measures include, among others: Adjusted Net Income, Cost of Funding, Efficiency Ratio, Cost of Risk, Cards+PIX TPV, Gross ARPAC, Global Clients, Total Gross Revenues, and Return on average equity (ROE).
A “non-IFRS financial measure” refers to a numerical measure of Inter&Co’s historical or financial position that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS in Inter&Co’s financial statements. Inter&Co provides certain non-IFRS measures as additional information relating to its operating results as a complement to results provided in accordance with IFRS. The non-IFRS financial information presented herein should be considered together with, and not as a substitute for or superior to, the financial information presented in accordance with IFRS. There are significant limitations associated with the use of non-IFRS financial measures. Further, these measures may differ from the non-IFRS information, even where similarly titled, used by other companies and therefore should not be used to compare Inter&Co’s performance to that of other companies.
FAQ
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