Slide 1: August 2022 Quarterly Earnings Presentation
August 2022 Quarterly Earnings Presentation S Staying away from the comfort zone
Slide 2: Inter's Latest Milestone: Inter&Co Nasdaq Listing
2 Inter’s Latest Milestone Inter&Co Nasdaq Listing First ever conversion from Brazil to US Inter&Co now part of the Nasdaq family Another milestone on our history of re-defying boundaries
Slide 3: Quarterly performance highlights
3 R$14 Monthly CTSAC -4% YoY growth 72% Cost to income -19 p.p. YoY R$16 mm Net Income Vs. R$-30mm in 2Q21 R$32 Monthly ARPAC +16% YoY growth R$1.5 bn Revenues1 +130% YoY growth Quarterly performance highlights 20.7 mm Clients +73% YoY growth R$19.5 bn Gross Loan Portfolio +56% YoY growth R$25.9 bn
Slide 4: Agenda
4 S Strategic Overview Business Verticals Financial Performance Agenda 2Q22 Closing Remarks
Slide 5: Strategic Overview
5 May 2022 1Q22 R Results Strategic Overview
Slide 6: Consistency of Leading in Innovation
6 C Consistency of Leading in Innovation 1 Consistently staying away from the comfort zone Notes: 1 Among Brazilian Banks First to be 100% Cloud Based First to launch Free Digital Account First bank to launch e-commerce platform First true global account in the Americas First Brazilian Entity to Mig
Slide 7: A vision that became a reality at scale
7 1 1.0 4.7 2019 2Q22 LTM In Million Sources: Company Filings, Banco Central do Brasil, NeoTrust, IBGE and ABECS Notes: 1 In number of transactions as of June, 2022; 2 Considers demand deposits as of April, 2022; 3 Considers E-commerce participation in retail total volume as of April, 2022; 4 Consid
Slide 8: From now to the future
8 Seeking +5% Share in Core Products Disruptive Growth Balanced Across NII and Fee Income Diversified Revenue Streams Doing More with Less Operational leverage F From now to the future 2Q22 Efficient Capital Use Self-Funded Capital Plan Mindset of exceeding client expectations Constant Innovation Ca
Slide 9: Governance and ESG improvements
9 Two layer regulatory governance (SEC and CVM) Inter&Co is now registered with CVM Creation of Inter&Co Audit Committee Increase of independente members in the statutory committees of Banco Inter Inclusion of explicit Inter&Co Tag Along rights Greater governance improvements Improvements in Eco-Eff
Slide 10: Business Verticals
10 1Q22 Results Business V Verticals
Slide 11: Strong momentum across business verticals
11 12.5 18.2 19.5 2Q21 1Q22 2Q22 2Q21 9.4 14.1 16.0 2Q21 1Q22 2Q22 D Day-to-Day Banking Card TPV In R$ Billion Credit Gross Loan Portfolio In R$ Billion +56% Sources: Company filings +70% Strong momentum across business verticals 2Q22 R$4.7 bn Credit underwriting 2Q22 -1% YoY 6.4 mm Cards used 2Q22
Slide 12: Strong momentum across business verticals
12 21.4 29.8 35.0 2Q21 1Q22 2Q22 2Q21 1Q22 2Q22 R$53.4 bn Assets under custody (AUC) 2Q22 1,047 thousand Active contracts1 2Q22 +97% YoY Inter Seguros Revenues In R$ Million Inter Invest Revenues In R$ Million Sources: Company filings; IFRS. Notes: 1 Active clients: clients or the object of the cont
Slide 13: Strong momentum across business verticals
13 56 99 113 2Q21 1Q22 2Q22 +101% Gross Take-rate (%) Net Take-rate (%) 7.2% 0.8% 11.4% 4.4% 2Q21 2Q22 +4.2 p.p. +3.6 p.p. FX, Interchange, USD floating revenue streams FX & fees revenue streams 0.8 1.1 1.0 Gross Merchandise Volume (GMV, R$ Billion) Cross Border S ervices A Self-Reinforcing Ecosyste
Slide 14: Financial Performance
14 1Q22 Results F Financial Performance
Slide 15: Inter's drivers for value creation
15 Amazing product Strong brand Client growth Low CTS Fee Income Service growth Launch of new products NII Sustainable loan book growth Low Cost of Funding Expanding unit economics & value creation Low CAC 15 Inter's drivers for value creation 2Q22
Slide 16: Consistent growth and diversification in credit portfolio
16 52% 40% 30% 34% 29% 29% 21% 18% 20% 21% 22% 23% 10% 18% 18% 17% 16% 15% 2% 4% 3% 4% 3% 17% 22% 28% 25% 29% 31% 4.8 8.8 17.2 1 12.5 18.2 19.5 2019 2020 2021 2Q21 1Q22 2Q22 Source: Company filings Note: Figures in IFRS. Real Estate Payroll SMBs Agribusiness Credit Card +15% +35% +74% +34% % YoY +92
Slide 17: Resilient portfolio with healthy provisioning and high collateralization
17 C Collateralized Portfolio Coverage Ratio (%) NPL >90 Days (%) Resilient portfolio with healthy provisioning and high collateralization Source: Company filings % Credit Portfolio 3.0% 3.0% 3.0% 3.5% 3.9% 2Q21 3Q21 4Q21 1Q22 2Q22 2Q22 73% Highly collateralized portfolio 2Q22 130% 124% 131% 126% 12
Slide 18: Cost-efficient funding at scale
18 65% 63% 63% 58% 61% 2Q21 3Q21 4Q21 1Q22 2Q22 Stable retail funding with superior cost advantage Funding (R$ Billion) All-in Cost of Funding 1 (% Selic) Source: Company filings Note: 1 Cost of Funding = (Interest expenses x 4) (Average of last 2 quarters Interest bearing liabilities). 8% 15% 31% 4
Slide 19: Maintaining strong momentum on revenue growth
19 7 72% 28% 33% 67% Total Gross Revenues (R$ Million) Net Fee Income 1 Breakdown Highly diversified revenue base, w ith strong growth momentum across products Other Fee Income1 Inter Shop Interest Income 1 Breakdown Securities Credit R$316mm 2Q22 R$564mm 2Q22 R$326mm 2Q21 R$165mm 2Q21 Source: Compa
Slide 20: Strong unit economics as client base matures
20 L Longevity of the clients 1 Clients (mm) and % clients with less than 1 year at Inter Source: Company filings Notes: 1 Clients with less than 1 year on Interr. ARPAC net of interest expense In R$ (monthly, by Cohort) Strong unit economics as client base matures 2Q22 2022-T2 2018-T1 Quarters of R
Slide 21: Increasing operating leverage
21 14 11 19 15 14 2Q21 3Q21 4Q21 1Q22 2Q22 Cost to Income Ratio (%) Source: Company filings Note 1: (Personnel Expenses + Other Administrative Expenses + Other Operating Expenses – Cashback Expenses) / (Gross profit from financial intermediation + Fee Income + Other Operating Revenues) Note 2: Oithe
Slide 22: Expanding NIM as Loan Portfolio Reprices
22 Gross Revenue Yield = ((Interest Income + Income from Securities) * 4) (Average of 2 Last Quarters Interest Earning Assets) NIM = (Net Interest Income * 4) (Average of 2 Last Quarters Interest Earning Assets) Cost of Funding = (Funding Expenses * 4) (Average of 2 Last Quarters Interest Bearing Li
Slide 23: Profitability trends continue improving as client base matures
23 (30) 34 (56) (29) 16 2Q21 3Q21 4Q21 1Q22 2Q22 Source: Company filings Note 1: IFRS quarterly data available from 1Q21, annual IFRS data from 2019. Reference: Net Income | Banco Inter S.A. Net Income | Inter&Co in IFRS (In R$ Million) 18 19 6 27 29 2Q21 3Q21 4Q21 1Q22 2Q22 Profitability trends con
Slide 24: Closing Remarks
24 May 2022 1Q22 Results Closing Remarks May 2022
Slide 25: Focused on executing, leveraging on our competitive advantages
25 Focused on executing, leveraging on our competitive advantages 2Q22 Mastering credit cards profitability Best product for Brazilians leaving and traveling to the US Major focus on operational leverage
Slide 26: Appendix
26 1Q22 Results A Appendix
Slide 27: Income Statement
27 I Income Statement (in R$ thousands) 2Q22 INCOME STATEMENT Inter&Co Inter&Co 2Q21 2 2Q22 Interest income calculated using the effective interest method 305,660 622,312 Interest expenses (86,261) (465,041) Net interest income 219,399 157,271 Revenues from services and commissions 110,911 238,515 E
Slide 28: Balance Sheet
28 B Balance Sheet (in R$ thousands) 2Q22 Inter & Co Inter & Co Assets 6 6/30/21 6/30/22 Cash and cash equivalents 5,731,007 1,549,158 Loans and advances to financial institutions 646,905 1,825,289 Compulsory deposits at Central Bank of Brazil 1,593,298 2,580,989 Loans and advance to clients 12,527,
Slide 29: Disclaimer
29 D Disclaimer 2Q22 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 uncertai
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