Inter & Co. Inc. · NASDAQ:INTR
Inter & — Q3 2022 Earnings Presentation
30 slides from Inter &'s earnings presentation, Nov 8, 2022
Slide 1: November 2022 Quarterly Earnings Presentation
November 2022 Quarterly Earnings Presentation
Slide 2: Quarterly performance highlights 3Q22
2 Quarterly performance highlights 3Q22 Sources : Company Filings. Note 1: Gross Loan Portfolio and NPL 90 days includes Anticipation of Credit Card Receivables . Note 2 : Gross Revenues = Interest income calculated using the effective interest method + Revenues from services and commissions + Inc o
Slide 3: Agenda 3Q22
3 Business Verticals Financial Performance Agenda 3Q22 Closing Remarks
Slide 4: Business Verticals
4 1Q22 Results Business Verticals
Slide 5: Strong acceleration in Day-to-Day Banking activity
5 62% 62% 61% 58% 55% 54% 54% 38% 38% 39% 42% 45% 46% 46% 8 9 12 14 14 16 17 37 58 80 94 97 118 138 44 67 92 109 111 134 155 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Debit Credit PIX Cards+PIX TPV In R$ Billion Strong acceleration in Day - to - Day Banking activity 3Q22 Sources : Company filings. Note 1 :
Slide 6: Continued growth in credit portfolio
6 • Ongoing repricing across longer duration products • Origination re - accelerating growth • Portfolio continues highly collateralized • Balancing mix and margin 14.9 17.2 18.2 19.5 21.0 0.1 0.3 0.3 0.4 1.0 15.0 17.5 18.5 19.9 22.0 3Q21 4Q21 1Q22 2Q22 3Q22 Gross Credit Portfolio Anticipation of C.
Slide 7: Insurance distribution continues delivering strong performance
7 22 25 30 35 31 3Q21 4Q21 1Q22 2Q22 3Q22 +1.1 million Active contracts 2 3Q22 +65 % YoY Net Revenue 1 In R$ Million +39% Insurance distribution continues delivering strong performance 3Q22 Sources : Company filings. Note 1 : Non - IFRS measure. Note 2 : Active contracts include either clients or as
Slide 8: Investment platform delivered record AUC and revenues
8 34 32 32 35 40 3Q21 4Q21 1Q22 2Q22 3Q22 Investment platform delivered record AUC and revenues 3Q22 Sources : Company filings. Note 1 : Net inflows refers to net new funds (from multiple asset classes) invested from our clients in our platform. Note 2 : Non - IFRS measure. Direct - to - consumer di
Slide 9: Significant margin expansion at Inter Shop
9 4 16 30 44 48 3Q21 4Q21 1Q22 2Q22 3Q22 Gross Take - rate (%) Net Take - rate (%) 6.4% 0.5% 10.9% 5.1% 3Q21 3Q22 Significant margin expansion at Inter Shop 3Q22 R$ 3 billion GMV 9M 22 +25 % YoY Net Revenue 1 In R$ Million • 75% recurring customers (vs. 73% on 2Q22) • 565k new customers (vs. 555k on
Slide 10: Successful global account accelerating connectivity with US business
10 Global Accounts In Thousand Global Account FX, Interchange , USD floating revenue streams Remittances FX & fees revenue streams Successful global account accelerating connectivity with US business 3Q22 50 141 501 1Q22 2Q22 3Q22 • + 5.5 thousand new Global Accounts opened per working day • + 606 t
Slide 11: Financial Performance
11 1Q22 Results Financial Performance
Slide 12: Strong growth and diversification in credit portfolio
12 52% 40% 29% 31% 28% 27% 21% 18% 20% 21% 21% 21% 1% 2% 10% 18% 17% 18% 15% 14% 2% 4% 4% 2% 3% 17% 22% 28% 25% 30% 29% 2% 1% 2% 5% 4.8 8.8 17.5 15.0 19.9 22.0 2019 2020 2021 3Q21 2Q22 3Q22 Real Estate Payroll SMBs Agribusiness Credit Card 15% +10% +63% +26% % YoY +68% Gross Loan Portfolio (R$ Billi
Slide 13: Inflection points toward better asset quality
13 NPL >90 Days (%) Inflection points toward better asset quality 3Q22 Source: Company filings. Note 1: Gross Loan Portfolio including the Anticipation of Credit Card Receivables, disclosed in note 9.a of the Financial Statements , line “Loans to financial institutions”. • Improvements driven by enh
Slide 14: Success in attracting customer deposits
14 33% 47% 45% 45% 38% 37% 35% 34% 32% 33% 33% 34% 27% 12% 16% 15% 24% 24% 5% 6% 6% 6% 5% 4% 1% 0.5% 1% 1% 1% 1% 6.4 14.2 21.9 20.2 25.9 28.4 2019 2020 2021 3Q21 2Q22 3Q22 Demand Deposits Time Deposits Securities Issued Savings Deposits Other Funding (R$ Billion) Success in attracting customer depos
Slide 15: Highly attractive, cost-efficient funding at scale
15 4.9% 7.6% 10.3% 12.4% 13.5% 2.9% 4.8% 6.0% 7.6% 8.6% 3Q21 4Q21 1Q22 2Q22 3Q22 All - in Cost of Funding 1 (%) Highly attractive , cost - efficient funding at scale 3Q22 Avg. Selic of Quarter All - in Cost of Funding as % of Selic Source: Company filings. Note 1: All - in Cost of Funding = (Interes
Slide 16: Strong revenue growth momentum
16 Revenue (R$ Million) Strong revenue growth momentum 3Q22 +10% % QoQ Adjusted +12% +57% % YoY Adjusted +100% • Strong YoY revenue growth • Attractive balance between net fees and net interest income • Highly diversified revenues streams 2 1 3 82% 67% 71% 74% 64% 65% 69% 18% 33% 29% 26% 36% 35% 31%
Slide 17: Increasingly diversified revenue streams
17 82% 67% 71% 74% 64% 65% 69% 18% 33% 29% 26% 36% 35% 31% 712 1,062 2,244 607 877 850 953 1,025 1,338 3,139 837 1,461 1,538 1,676 2019 2020 2021 3Q21 2Q22 3Q22 Reported 3Q22 Adjusted Net Interest Income Net Fee Revenue Total Net Revenue Total Gross Revenue 33% 67% 38% 62% 60% 16% 13% 11% 62% 3% 21%
Slide 18: Deflation impact – Illustrative adjustment
18 3Q22 Note 1: Adjusted figures are non - IFRS measures , are presented for illustrative purposes only and do not reflect our actual results . Note 2 : Actual deflation that occurred in 3Q22, as disclosed by IBGE. Note 3: Quarterly inflation projected for 2023 from the Focus Report of Brazilian Cen
Slide 19: Clients continue to choose Inter at an accelerating pace
19 48% 49% 51% 52% 55% 58% 61% 52% 51% 49% 48% 45% 42% 39% 10.2 12.0 13.9 16.3 18.6 20.7 22.8 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 # of the clients with > 1 year Total Number of Clients & Longevity Ratio Clients (mm) and % clients with less than 1 year at Inter 3Q22 Source : Company filings. +13p.p. •
Slide 20: Stronger unit economics as client base matures
20 ARPAC In R$ (monthly, by Cohort) 3Q22 Source : Company filings. Note 1: Non - IFRS measure. ‘3Q22 Adjusted’ excludes the non - recurring effects of deflation in 3Q22 and assumes the inflation projected f or 2023 from the Focus Report of Brazilian Central Bank, divided by four (https:// www.bcb.go
Slide 21: Positive trend on operating leverage
21 15 23 18 17 17 3Q21 4Q21 1Q22 2Q22 3Q22 Cost - to - Income Ratio 2 (%) Cost - to - Serve 1 (In R $, monthly ) Positive trend on operating leverage 3Q22 Source: Company filings. Note 1: Cost to serve = [(Personnel Expenses + Other Administrative Expenses – Client Acquisition Cost) ÷ 3] ÷ Average A
Slide 22: Expanding NIM as Loan Portfolio Reprices
22 Expanding NIM as Loan Portfolio Reprices 3Q22 Interest Margins and Yields Source : Company Filings. Note 1: NIM = (Net Interest Income * 4) ÷ (Average of 2 Last Quarters Interest Earning Assets). Note 2: Yield on Interest Earning Assets = ((Interest Income + Income from Securities) * 4) ÷ (Averag
Slide 23: Positive dynamics on bottom line profitability
23 34 (56) (29) 16 (30) 23 3Q21 4Q21 1Q22 2Q22 3Q22 Net Income Adjusted Net Income 3Q22 IFRS Source: Company filings. Note 1: Non - IFRS measure. Adjusted Net Income excludes the non - recurring effects of deflation in 3Q22. 1 Net Income | Inter&Co (In R$ Million) Positive dynamics on bottom line pr
Slide 24: Closing Remarks
24 May 2022 1Q22 Results Closing Remarks
Slide 25: Closing Remarks 3Q22
25 Closing Remarks 3Q22 New clients +2.1mm Maintain Momentum NPL Flat Tangible Results Innovation Invest Now Pay Later Delighting Clients Repricing Committed Focus Ongoing Effort S a ve the Date: Investor Day on January 18 th , 2023 | Live Streaming with in - person Q&A / Lunch in Belo Horizonte Gro
Slide 26: Appendix
26 1Q22 Results Appendix
Slide 27: Income Statement
27 Income Statement (in R $ million ) 3Q22 INCOME STATEMENT 3Q21 3Q22 Interest income calculated using the effective interest method 367.4 788.3 Interest expenses (138.6) (579.7) Net interest income 228.8 208.7 Revenues from services and commissions 149.3 248.9 Expenses from services and commissions
Slide 28: Balance Sheet
28 Balance Sheet (in R $ million ) 3Q22 BALANCE SHEET 12/31/2021 09/30/2022 Assets Cash and cash equivalents 500 838 Loans and advances to financial institutions 2,052 3,418 Compulsory deposits at Central Bank of Brazil 2,399 2,686 Loans and advance to clients 17,216 21,005 ( - ) Provision for expec
Slide 29: Disclaimer
29 Disclaimer 3Q22 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 un
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