Business
Inter&Co, Inc Reports First Quarter 2023 Financial Results
BELO HORIZONTE-MG, Brazil, May 08, 2023 (GLOBE NEWSWIRE) -- Inter&Co, Inc (Inter), (NASDAQ: INTR | B3: INBR32), the premier Super App which provides financial
About this update from Inter & Co. Inc.
[{"type":"text","content":"BELO HORIZONTE-MG, Brazil, May 08, 2023 (GLOBE NEWSWIRE) -- Inter&Co, Inc (Inter), (NASDAQ: INTR | B3: INBR32), the premier Super App which provides financial and digital commerce services to more than 26 million customers, today reported financial results for its first quarter ended March 31, 2023. The full earnings release has been made available on the Company’s Investor Relations website at ri.bancointer.com.br. João Vitor Menin, CEO of Inter&Co stated: “Following an incredible 2022, we’ve seen a strong start of 2023. I’m happy to say that we are harvesting profitable results from our solid foundations. Our focus on delighting our clients while delivering operational excellence has been paramount. We had a significant level of new active client adds, reaching the impressive mark of 1 million in one quarter. Additionally, we increased our activity ratio, optimized our marketing spend, and launched the personalized Super App, all leading to higher engagement. We continue to focus on high margin products and capital efficiency. This quarter we reported a strong level of operational leverage, with an impressive 62% efficiency ratio. We continue actively repricing our portfolio, and as result our NIM continued expanding and reached its highest level in over a year.” First Quarter 2023 highlights 1. Delivered a profitable quarter, mainly as result of loan repricing and cost optimization: Total gross revenue: Following a strong 2022 year at R$ 6 billion, Inter&Co delivered a robust first quarter in 2023 with total gross revenue reaching R$ 1.8 billion, up 6% quarter-over-quarter (QoQ) and up 41% year-over-year (YoY).Improved cost efficiencies: Decreased cost-to-serve by 21% to R$ 13.8, achieved 62% efficiency ratio, and increased active clients per employee to 3500, a 56% YoY increase. Sustained profitability and earnings growth: Reached net income of R$ 24 million in 1Q2023. 2. Products achieved even greater market penetration across all major aspects of the client journey: Bank account penetration: 12.5% in 1Q2023, up from 11.8% in 4Q2022. Demand deposits: 3.6% in 1Q23, up from 3.4% in 4Q2022. Payroll loans: 1.0% in 1Q2023, up 7bps QoQ. 3. Expanded loan portfolio, balancing risk and profitability through repricing: Gross loan portfolio: Loans grew to R$25.1 billion in 1Q2023, increasing 36% YoY. Repricing the portfolio: The ongoi...