Slide 1: 3Q23 Earnings Presentation
EARNINGS PRESENTATION | 3Q23 3Q23 Earnings Presentation November 6th, 2023
Slide 2: Disclaimer
EARNINGS PRESENTATION | 3Q23 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
Slide 3: Agenda
EARNINGS PRESENTATION | 3Q23 Agenda 1. CEO Overview 2.Banking Credit & Funding Capabilities 3.Transactional Platform 4.Financial Performance 3
Slide 4: Agenda
EARNINGS PRESENTATION | 3Q23 Agenda 1. CEO Overview 2.Banking Credit & Funding Capabilities 3.Transactional Platform 4.Financial Performance 4
Slide 5: Another record-breaking quarter
EARNINGS PRESENTATION | 3Q23 “Another record-breaking quarter” - João Vitor Menin 5
Slide 6: Building & scaling the platform
EARNINGS PRESENTATION | 3Q23 A unique business model built to last Solid upward performance 1 172 Net Revenue (100 index) 2021 Building & Gross Loan 162 portfolio (100 index) Until scaling the platform Key Metrics Index to 100 and in R$ millions 100 Foundations 2022 for profitability 80 Net Income I
Slide 7: Self-fulfilling ecosystem creating a virtuous cycle
EARNINGS PRESENTATION | 3Q23 Self-fulfilling ecosystem creating a virtuous cycle Most Complete Scaling Product Offer Gains Best-in- Best-in-Class Sustainable Cost Class UX Financial Super App Innovative Profitability Efficiency DNA Win-Win Revenues Model Increasing # Net Growth of Clients Income Bus
Slide 8: Another record-breaking quarter
EARNINGS PRESENTATION | 3Q23 Another record-breaking quarter Record Ever Record Ever Record Ever Record Ever Revenue Operational Bottom Return on Growth Leverage Line Equity Financials1 Increasing Record low Delivering Boosting Total Gross Revenue Efficiency Ratio EBT2 ROE R$2.1bn 52.4% R$ 145mm 5.7
Slide 9: Agenda
EARNINGS PRESENTATION | 3Q23 Agenda 1. CEO Overview 2.Banking Credit & Funding Capabilities 3.Transactional Platform 4.Financial Performance 9
Slide 10: Accelerating loan growth while maintaining focus on higher ROE products
EARNINGS PRESENTATION | 3Q23 Accelerating loan growth while maintaining focus on higher ROE products 80 . 0 % 72.4% Credit Cards 7 0 . 0 % 59.3% 25.1% 60 . 0 % All-in Loan Rate Excl. Real Estate1 Annualized 50 . 0 % 20.6% All-in Loan Rate Implied Rates 40 . 0 % 16.9% 30 . 0 % Personal + FGTS2 In % 1
Slide 11: Asset quality metric presenting positive trends
EARNINGS PRESENTATION | 3Q23 Asset quality metric presenting positive trends NPL 15 to 90 days1 In % NPL > 90 days1 In % • Stable delinquency driven by portfolio mix 4.5% 4.5% 4.7% 4.7% 4.3% 4.3% 4.2% 4.2% 4.4% • Improving performance 4.1% 4.1% of credit card new clients 3.8% 3.8% 3.4% • Better tren
Slide 12: Improving cost of risk while increasing coverage ratio
EARNINGS PRESENTATION | 3Q23 Improving cost of risk while increasing coverage ratio Cost of Risk1 Coverage Ratio In % In % • Better cost of risk trends 141% • More effective underwriting 132% 131% 130% 132% of credit card limits focusing 126% 129% on better profile clients • Improving portfolio mix
Slide 13: Strong deposits franchise outpacing market growth
EARNINGS PRESENTATION | 3Q23 Strong deposits franchise outpacing market growth Funding % YoY % QoQ In R$ Billion 39.6 +29% +11% Total +24% +20% Other1 • Best-in-class 29%, 4.7 35.7 funding structure to 33.5 32.5 30%; 3.9 support growth Securities 30.7 30%; 4.2 8% +8% +7% Issued 31%; 4.2 7.5 29%; 3.8
Slide 14: Low cost of funding continues to be strong competitive advantage
EARNINGS PRESENTATION | 3Q23 Low cost of funding continues to be strong competitive advantage All-in Cost of Funding In %, Annualized 13.5% 13.7% 13.7% 13.7% 13.3% • + 14.1 million clients 12.4% trusting Inter with 59.7% their deposits 58.6% 10.3% 59.0% 54.8% 57.3% 61.7% 7.6% 54.9% 8.0% 8.2% 7.9% 7.
Slide 15: Agenda
EARNINGS PRESENTATION | 3Q23 Agenda 1. CEO Overview 2.Banking Credit & Funding Capabilities 3.Transactional Platform 4.Financial Performance 15
Slide 16: Third consecutive quarter adding 1 mm new active clients
EARNINGS PRESENTATION | 3Q23 Third consecutive quarter adding 1 mm new active clients Total Number of Clients Client Acquisition Cost In Million In R$, quarterly +9 bps -10 bps -54 bps -14 bps +48 bps +68 bps +49 bps -8% YoY + 1.6 mm 32.1 + 1.5 mm 30.4 29.8 + 1.6 mm 29.4 29.0 3 0 . 28.3 + 1.9 mm 27.
Slide 17: Strong TPV acceleration, with meaningful shift to credit and PIX
EARNINGS PRESENTATION | 3Q23 Strong TPV acceleration, with meaningful shift to credit and PIX % YoY % QoQ Cards + PIX TPV1 In R$ Billion +41% YoY 219 60 .0 +41% +11% +43% +12% Cards + PIX TPV per Active Client 197 198 In R$ Thousand, monthly 178 181 50 .0 177 10 Thousands 158 163 155 9 138 40 .0 134
Slide 18: Enhancing performance across all business verticals
EARNINGS PRESENTATION | 3Q23 Enhancing performance across all business verticals Inter Shop Inter Insurance Inter Invest Active Clients Active Clients Active Clients In Million In Million In Million 4.2 2.9 é 74 % é 33% é 40% 1.6 2.2 2.4 1.1 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23 +10mm ˜R$870 million + 344mm
Slide 19: Replicating our business model in the US, starting with a strong deposit franchise
EARNINGS PRESENTATION | 3Q23 Replicating our business model in the US, starting with a strong deposit franchise Product Rollout Pipeline Remittances Gift Global Debit Invest Lending Broker Global Investment Credit Buy Now E-Commerce Cards Account Card Dealer App Advisory Card Pay Later Full Platform
Slide 20: Agenda
EARNINGS PRESENTATION | 3Q23 Agenda 1. CEO Overview 2.Banking Credit & Funding Capabilities 3.Transactional Platform 4.Financial Performance 20
Slide 21: Solid revenue growth driven by fee income expansion
EARNINGS PRESENTATION | 3Q23 Solid revenue growth driven by fee income expansion Revenue % YoY % QoQ In R$ Million 2,143 +39% +11% • Another record-breaking revenue 2 00 1,939 1,800 1,704 • Fee growth led by interchange, e-commerce, 1,540 15 0 0 1,461 insurance and banking 1,281 1,265 +49% +10% 1,15
Slide 22: Sequential expansion of gross margin per active client
EARNINGS PRESENTATION | 3Q23 Sequential expansion of gross margin per active client ARPAC and CTS Evolution In R$, Monthly 47 45.9 47 46 46 48 Gross ARPAC 46 44 • Record gross ARPAC 37 32 34 34 32 32 31 31 31 Net ARPAC 29 29 30 • Strong ARPAC growth and 28 28 stable CTS 21 17 18 17 16 14 16 16 14 13
Slide 23: Resilient NIM as consequence of ROE-driven underwriting
EARNINGS PRESENTATION | 3Q23 Resilient NIM as consequence of ROE-driven underwriting NIM Evolution In % 10. 0% 9.5% 9.2% 9. 0% 8.7% 8.3% 8.4% 8.1% 8.0% 8.1% 8.1% 8. 0% 7.8% 7.4% 7.4% • Lower inflation in the 7.3% 7.2% 7.3% 7.2% 7. 0% 6.9% 7.0% period, primarily affecting 6.4% 6.4% real estate loan r
Slide 24: Expense control continues to be a top priority
EARNINGS PRESENTATION | 3Q23 Expense control continues to be a top priority Expenses Breakdown1 In R$ Million 7 5 0 % YoY % QoQ 685 8 65 0 43 614 +4% +7% Total Expenses 603 592 596 1 634 575 11 +40% +91% Share-based comp.2 8 8 10 6 8 602 558 557 6 10 +4% -19% M&A2 4 55 0 12 12 576 579 559 594 +3% +6
Slide 25: Continuous improvements in operational leverage
EARNINGS PRESENTATION | 3Q23 Continuous improvements in operational leverage Revenue vs. Expenses Efficiency Ratio 19 0 In %, index in a 100 basis In % 172 Net revenue 1 90 % 88.3% 163 158 80 % 75.0% 73.4% 16 0 71.9% 66.8% 68.3% 143 Personnel 7 0 % 140 Expenses 62.4% 137 60 % 53.4% 13 0 127 53.2% 52
Slide 26: Fee covering a significant percentage of SG&A base
EARNINGS PRESENTATION | 3Q23 Fee covering a significant percentage of SG&A base % YoY % QoQ Net Fee Revenue and SG&A Evolution Net Fee In R$ Million +23 +12 73% Revenue • Increasing fee 75% p.p. p.p. 1,200 ÷ SG&A revenues while 65% implementing cost 60% control initiatives to 1,000 57% improve profi
Slide 27: Record profitability ever
EARNINGS PRESENTATION | 3Q23 Record profitability ever Earnings Before Tax, Net Income & ROE In R$ Million and in %, Inter&Co 5.7% ROE 6.0% 185 3.6% 4.0% Pre-tax 135 0.8% 1.6% 1.4% 145 Income 2.0% 85 -1.4% -1.7% 0.0% -2.6% 80 Net -2.0% 35 104 Income -4.0% -15 12 6 -6.0% -65 -20 -8.0% -70 64 -115 -10
Slide 28: First quarter ever creating organic capital
EARNINGS PRESENTATION | 3Q23 First quarter ever creating organic capital Tier I Ratio In % • Capital ratio comprised -3.1 p.p. exclusively of high-quality core Tier I capital 32.9% -5.7 p.p. • Organic capital generation 29.8% • Several opportunities to continue redeploying - 1.1 p.p. +0.9 p.p. capit
Slide 29: Closing Remarks
EARNINGS PRESENTATION | 3Q23 Closing Remarks 29
Slide 30: Another record-breaking quarter
EARNINGS PRESENTATION | 3Q23 “Another record-breaking quarter” Unique business model built to last Funding, CTS and Fee Income as key competitive advantages Delivering disruptive growth, leading strong market share gains Technology and UX continued to differentiate us Balanced momentum adding value
Slide 31: Q&A
EARNINGS PRESENTATION | 3Q23 Q&A
Slide 32: Appendix
EARNINGS PRESENTATION | 3Q23 Appendix 32
Slide 33: Balance Sheet and Income Statement (In R$ Million)
EARNINGS PRESENTATION | 3Q23 Balance Sheet (In R$ Million) Income Statement (In R$ Million) 3Q23 3Q22 Variation % Variation % 09/30/2023 09/30/2022 ∆ YoY 3Q23 3Q22 ∆ YoY Balance Sheet Income Statement Assets Interest income from loans 1,107 788 40% Cash and cash equivalents 4,297 838 413% Interest e
Slide 34: Glossary of operational definitions
EARNINGS PRESENTATION | 3Q23 Glossary of operational definitions Activation Rate: Client acquisition cost (CAC): The average cost to add a client to the platform, considering operating expenses for opening an Number of active clients at the end of the quarter account, such as onboarding personnel, e
Slide 35: Glossary of financial measures reconciliation
EARNINGS PRESENTATION | 3Q23 Glossary of financial measures reconciliation Administrative efficiency ratio: Card fee revenue: It is part of the “Revenue from services and commission” and “Other revenue” on IFRS Income Administrative expenses + Depreciation and amortization Statement. Net Interest In
Slide 36: Glossary of financial measures reconciliation
EARNINGS PRESENTATION | 3Q23 Glossary of financial measures reconciliation Coverage ratio: Gross margin per active client net of interest expenses: Provision for expected credit loss ARPAC net of interest expenses – Cost to Serve Overdue higher than 90 days Net fee income: Earning portfolio (IEP): N
Slide 37: Glossary of financial measures reconciliation
EARNINGS PRESENTATION | 3Q23 Glossary of financial measures reconciliation NPL > 90 days: Overdue higher than 90 days Loans and Advance to Costumers + Loans to Sinancial institutions NPL formation: Overdue balance higher than 90 days in the current quarter – Overdue balance higher than 90 days inthe
Slide 38: EARNINGS PRESENTATION | 3Q23
EARNINGS PRESENTATION | 3Q23