Slide 1: Form 6-K cover page
United States Securities and Exchange Commission Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of March 2024 Commission File Number 132-02847 INTER & Co, INC. (Exact name of registrant as spe
Slide 2: 4Q23 Institutional Presentation
4Q23 Intitucional Presentation
Slide 3: Forward-looking statements disclaimer
2 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 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 in
Slide 4: Agenda
3 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 Agenda1. Company Overview 2. Competitive Advantages 3. Business Verticals 4. Lending and Financing 5. Financials
Slide 5: Company Overview
4 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 Agenda1. Company Overview 2. Competitive Advantages 3. Business Verticals 4. Lending and Financing 5. Financials
Slide 6: How Inter disrupted the market
9 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 How Inter disrupted the market No Cashback No E-commerce Pushing Bad Products Credit Card Banking Account Trading & Investments Multiple Apps x Branch-Based Distribution High Distribution Costs Travel Costs To Costumers Long Waiting Lines
Slide 7: Combining innovative technology with traditional bank strength
I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 10 Combining innovative technology with traditional bank strength Mission Empower People to Manage Their Finances & Daily Activities Simple Engaging Innovative 100% Digital Seamlessly Integrated Vision A Powerful Platform Uniquely Positione
Slide 8: Our strong product rollout to attract new clients
I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 11 Our strong product rollout to attract new clients Phase One: Traditional Bank Phase Two: Digital Account Phase Three: Super App Phase Four: US Expansion M&A M&A M&A Intermedium was founded Digital Account Rebranding: Banco Inter Migratio
Slide 9: High growth potential, benefiting from our strong primary bank relationships
I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 12 High growth potential, benefiting from our strong primary bank relationships Sources: Banco Central do Brasil for Bank Account, Pix, Payroll and Credit Card; Caixa Economica Federal for FGTS; Abecip for Home Equity and Inter&Co for FGTS
Slide 10: Strongly positioned for 2024 and beyond
I N S T I T U T I O N A L P R E S E N T A T I O N | 3 Q 2 3 Strongly positioned for 2024 and beyond Dilution of Expense Base Shifting ROE Loan Mix 2019 2020 2021 2022 2023 ROE Higher Engagement Improving Asset Quality Lowering BR and US Interest Rates 13 Investing Phase Compounding Phase Inflection
Slide 11: Agenda
E A R N I N G S P R E S E N T A T I O N | 3 Q 2 3 Agenda1. Company Overview 2. Competitive Advantages 3. Business Verticals 4. Lending and Financing 5. Financials
Slide 12: Significant competitive advantages
I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 15 Significant competitive advantages Underleveraged clients High growth platform 1 % Uniquely high fee income revenue 2 Best-in-class funding base 3 Strongly capitalized balance sheet 4 5
Slide 13: Significant competitive advantages: high growth platform and fee income
I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 16 Significant competitive advantages High growth platform 1 70% 65% 74% 75% 65% 64% 65% 67% 69% 70% 65% 67% 30% 35% 26% 25% 35% 36% 35% 33% 31% 30% 35% 33% 417 467 607 731 834 877 850 1,002 1,024 1,150 1,265 1,313 544 636 837 1,100 1,281 1
Slide 14: Significant competitive advantages: funding, capital, underleveraged clients
I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 17 1,012 1,114 1,225 1,745 4,638 6,441 7,398 0 2000 4000 6000 8000 10000 Inter Digital Bank 2 Digital Bank 1 Digital Bank 3 Incumbent Bank 1 Incumbent Bank 3 Incumbent Bank 2 Significant competitive advantages Best-in-class funding base 3 S
Slide 15: Agenda
I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 18 Agenda1. Company Overview 2. Competitive Advantages 3. Business Verticals 4. Lending and Financing 5. Financials
Slide 16: Banking & Spending: Building a strong client base
I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 19 Banking & Spending: Building a strong client base Digital Account Deposits Debit & Credit Cards Pix Wire Transfers Digital Wallets & many more... Note 1: Total Brazilian market total payment volume of credit and debt cards according to A
Slide 17: Credit: Robust income stream
I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 20 Credit: Robust income stream Note 1: Market data from Banco Central do Brasil. Supply chain Credit card receivables Receivables Credit Cards Loans Payroll Loans FGTS Loans Real Estate Home Equity Auto Loans Working Capital & many more...
Slide 18: Inter Shop: Engaging clients in the App
I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 21 Inter Shop: Engaging clients in the App Inter Shop Revenue & Take Rate In R$ Million and % 30 44 48 59 54 67 76 99 113 102 112 95 104 124 2 5.0 4 5. 0 6 5. 0 8 5. 0 10 5. 0 12 5.0 Shopping (Marketplace) Giftcard Car Tag ShellBoxTravel Fo
Slide 19: Insurance: Exploring one of Latin America's most complete portfolios
I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 22 Insurance: Exploring one of Latin America’s most complete insurance portfolio Pet Life Travel Telemedicine CardsAuto Income Dental Home & assistance Consortium 3rd parties Auto Credit Generating a scalable operation and bringing solid bu
Slide 20: Investments: Capitalizing on synergistic opportunities
I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 23 Bypassing the FA channel A digital experience Delivered 100% via B2C To create savings for our customers ü Cashback rewards ü Commission free trading ü Low-cost funds Investments: Capitalizing on synergistic opportunities 4Q23 Highlights
Slide 21: Global: high growth vertical driving engagement
24 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 Global: high growth vertical driving engagement within wealthier clients > 2 million Global Clients ~3x More products adoption1 Note 1: Global Clients use 3.0 times more products when compared to active clients average. Note 2: Amount in
Slide 22: Loop: connection and loyalty between verticals
25 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 Loop: powerful strategy to create connection and loyalty between verticals • Credit Card Bills • “Conta com Pontos” (Balance Earns Points) • Missions Accomplishments ~60% Inter Loop clients spends more than regular clients1 Robust Struct
Slide 23: Agenda
26 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 Agenda1. Company Overview 2. Competitive Advantages 3. Business Verticals 4.Lending and Financing 5. Financials
Slide 24: Accelerating loan growth while focusing on higher ROE products
27 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 • +70% collateralized portfolio2 • Continuous focus towards repricing Accelerating loan growth while maintaining focus on higher ROE products Note 1: Home Equity includes both business and individuals’ portfolio. Note 2: Considering Real
Slide 25: ROE-driven loan portfolio growth
28 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 ROE-driven loan portfolio growth • Strong growth in FGTS and Home Equity, higher ROE products • Reacceleration of Credit Card loans as new collection strategies and credit card limit allocation evolves Note 1: Home Equity includes both b
Slide 26: Stable provisioning level and cost of risk
29 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 Stable provisioning level reversing cost of risk trends with stable coverage ratio Note: All definitions are in the Glossary section of this Presentation. Note 1: Considering Gross Loan Portfolio, which includes anticipation of C.C. rece
Slide 27: Strong deposits franchise outpacing market growth
30 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 Strong deposits franchise outpacing market growth Note 1: Includes saving deposits, creditors by resources to release and liabilities with financial institutions (securities sold under agreements to repurchase, interbank deposits and bor
Slide 28: Low cost of funding continues to be a strong competitive advantage
31 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 Low cost of funding continues to be a strong competitive advantage Avg. CDI of Quarter All-in Cost of Funding All-in Cost of Funding % of CDI 10.3% 12.4% 13.5% 13.7% 13.7% 13.7% 13.3% 12.2% 5.6% 7.1% 7.9% 7.5% 8.1% 8.0% 8.2% 7.2% 54.9% 5
Slide 29: Stable Tier I capital
32 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 32 Stable Tier 1 capital 29.8% 24.1% 23.0% 22.8% 23.7% 23.0% 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 Tier I Ratio In % Source: 3Q23 Banco Inter Bacen GAAP Financial Statements. • Capital ratio comprised exclusively of high-quality core Tier I capi
Slide 30: Agenda
33 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 Agenda1. Company Overview 2. Competitive Advantages 3. Business Verticals 4. Lending and Financing 5.Financials
Slide 31: Record revenues driven by NII growth
34 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 70% 65% 74% 75% 65% 64% 65% 67% 69% 70% 65% 67%30% 35% 26% 25% 35% 36% 35% 33% 31% 30% 35% 33% 417 467 607 731 834 877 850 1,002 1,024 1,150 1,265 1,313 544 636 837 1,100 1,281 1,461 1,540 1,704 1,800 1,939 2,143 2,197 0 5 0 10 0 0 15 0
Slide 32: Strong unit economics metrics
35 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 Strong unit economics metrics showcasing the power of our business model ARPAC and CTS Evolution In R$, Monthly 16.1 16.6 12.8 13.5 14.9 17.1 17.9 17.7 28.1 31.6 30.1 29.7 32.1 33.6 35.0 33.4 45.6 47.3 45.9 46.9 45.9 46.1 47.7 45.9 33.6
Slide 33: Expanding risk-adjusted NIM
36 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 Expanding risk-adjusted NIM as consequence of ROE-driven underwriting • Second highest risk-adjusted NIM since 2021 2.9% 3.9% 3.4% 4.4% 3.8% 4.1% 3.9% 4.3% 3.4% 4.6% 3.9% 5.1% 4.4% 4.8% 4.6% 5.0% 2. 0% 2. 5% 3. 0% 3. 5% 4. 0% 4. 5% 5. 0%
Slide 34: Impressive results on expenses
37 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 % YoY -8% -10% +1% -23% % QoQ +2% +2% -5% +39% Data processing5 Advertising & marketing Other3 M&A2 Impressive results on expenses, which continues to be a top priority in 2024 Total Expenses -3% +3% Expenses Excl. M&A & SBC -27% +1% D&A
Slide 35: Revenue growth and expense control driving efficiency
38 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 Powerful combination of revenue growth and expense control driving efficiency Revenue vs. Expenses In %, index in a 100 basis 114 119 115 137 140 158 172 179 100 89 89 95 108 96 91 98 100 99 117 120 163 117 127 143 150 86 80 87 89 88 80
Slide 36: Fee revenue covering a significant percentage of SG&A
39 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 Fee revenue continues covering a significant percentage of SG&A base 125 165 159 183 290 316 295 327 313 348 447 437 320 391 387 603 558 557 592 685 596 575 614 628 39% 42% 41% 30% 52% 57% 50% 48% 52% 60% 73% 70% 5% 15% 25% 35% 45% 55% 6
Slide 37: Stellar year in profitability
40 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 (179) 440 -350 -250 -150 -50 50 150 250 350 450 550 (14) 352 -350 -250 -150 -50 50 150 250 350 450 550 2022 2023 Note 1: Adjusted Net Income for the third quarter of 2022 is presented for illustrative purposes only and does not reflect o
Slide 38: Appendix
41 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 Appendix
Slide 39: Balance Sheet and Income Statement
42 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 Balance Sheet (In R$ Million) Income Statement (In R$ Million) Variation % 4Q23 4Q22 ∆YoY Income Statement Interest income from loans 1,279 871 47% Interest expenses (752) (591) 27% Income from securities and derivatives 349 396 -12% Net
Slide 40: Non-IFRS measures and KPIs
43 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 Non-IFRS measures and KPIs Activation Rate: Number of active clients at the end of the quarter Total number of clients at the end of the quarter Active clients: We define an active client as a customer at any given date that was the sour
Slide 41: Glossary
44 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 Card+PIX TPV: PIX, debit and credit cards and withdrawal transacted volumes of a given period. PIX is a Central Bank of Brazil solution to bring instant payments among banks and financial institutions in Brazil. Card+PIX TPV per active c
Slide 42: Glossary
45 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 Gross loan portfolio: Loans and Advance to Customers + Loans to financial institutions Gross merchandise volume (GMV): Gross merchandise value, or GMV, for a given period as the total value of all sales made or initiated through our Inte
Slide 43: Glossary
46 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3 Risk-Adjusted NIM 2.0: Net interest income − Impairment losses on Minancial assets x 4 Average of 2 Last Quarters Earning Portfolio (Loans to Minancial institutions + Securities + Derivatives + Net loans and advances to customers) SG&A:
Slide 44: 47 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3
47 I N S T I T U T I O N A L P R E S E N T A T I O N | 4 Q 2 3
Slide 45: Signature
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. INTER & Co, INC. By: /s/ Santiago Horacio Stel Name: Santiago Horacio Stel Title: Senior Vice President