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 November 2023 Commission File Number 132-02847 INTER & Co, INC. (Exact name of registrant as
Slide 2: 3Q23 Institutional Presentation
E A R N I N G S P R E S E N T A T I O N | 3 Q 2 3 3Q23 Institutional Presentation
Slide 3: Forward-looking statements
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 | 3 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 inv
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 | 3 Q 2 3 Agenda 1. Company Overview 2.Competive Advantages 3.Bussinees Verticals 4.Lending and Financing 5.Financials
Slide 5: Agenda: 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 | 3 Q 2 3 Agenda 1. Company Overview 2.Competive Advantages 3.Bussinees Verticals 4.Lending and Financing 5.Financials
Slide 6: How Inter disrupted the market
5 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 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 | 3 Q 2 3 6 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 Positioned
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 | 3 Q 2 3 7 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 Migration
Slide 9: Unlocking the potential value from our strong customer foundation
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 8 Unlocking the potential value from our strong customer foundation CLIENT JOURNEY Yo Y M ar ke t S ha re / Pe ne tr at io n G ai n 3Q 23 M ar ke t S ha re / Pe ne tr at io n Higher ARPAC Note: All market share and market share gains are co
Slide 10: Significant addressable credit market to explore
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 9 Significant addressable credit market to explore Sources: Banco Central do Brazil and Inter. Note 1:. Market data from Brazilian Central Bank. Number of Individuals and Companies with current relationships with the National Financial Syst
Slide 11: Self-fulfilling ecosystem creating a virtuous cycle
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 Self-fulfilling ecosystem creating a virtuous cycle Innovative DNA Most Complete Product Offer Best-in- Class UX Sustainable Profitability Scaling Gains Net Income Revenues Growth Best-in-Class Financial Super App Win-Win Model Increasing #
Slide 12: Agenda: 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 | 3 Q 2 3 11 Agenda 1. Company Overview 2.Competive Advantages 3.Bussinees Verticals 4.Lending and Financing 5.Financials
Slide 13: 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 | 3 Q 2 3 12 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 14: High growth platform and high fee income revenue
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 13 Significant competitive advantages High growth platform 1 70% 65% 74% 75% 65% 64% 65% 67% 69% 70% 65%30% 35% 26% 25% 35% 36% 35% 33% 31% 30% 35% 417 467 607 731 834 877 850 1,002 1,024 1,150 1,265 544 636 837 1,100 1,281 1,461 1,540 1,70
Slide 15: Funding base, capitalization and 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 | 3 Q 2 3 14 932 789 1,031 1,751 4,432 7,237 7,405 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 Stron
Slide 16: Agenda: Business Verticals
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 15 Agenda 1. Company Overview 2.Competive Advantages 3.Bussinees Verticals 4.Lending and Financing 5.Financials
Slide 17: Integrated business model with verticals as pillars
16 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 Build Client Base & Funding Grow Monetization & Activation Expand Gaining Market Share GLOBALINVESTINSURANCECREDITBANKING & SPENDING LOYALTY / Engagement / Cross Selling / ARPAC Bringing even more: Possible new revenue stream Highly effe
Slide 18: 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 | 3 Q 2 3 17 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 19: 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 | 3 Q 2 3 18 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 20: Inter Shop & Commerce Plus
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 19 Inter Shop & Commerce Plus: 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 S
Slide 21: Insurance portfolio
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 20 Insurance: Exploring one of Latin America’s most complete insurance portfolio Full range of insurance products Pet Life Travel Telemedicine CardsAuto Income Dental Home & assistance Consortium 3rd parties Auto Credit Generating a scalabl
Slide 22: 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 | 3 Q 2 3 21 Bypassing the FA channel A digital experience Delivered 100% via B2C Inter Invest Model To create savings for our customers ü Cashback rewards ü Commission free trading ü Low-cost funds Investments: Capitalizing on synergistic opportunit
Slide 23: Replicating our business model in the US
22 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 6 9 14 20 18 10 26 42 49 68 115 149 2 4 8 26 41 66 85 20 20 20 11 30 56 84 142 221 272 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Remittances Gift Cards Global Account Lending PipelineProduct Rollout Invest Broker Dealer Global App Credit Card A
Slide 24: Our New Rewards Program
23 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 Our New Rewards Program Earn points: Credit Card Bills “Conta com Pontos” Missions Acompliments Before Only Cashback More Options for Clients Unlocking Significant Results for Inter Burn points: Cashback Extra Cashback in Inter Shop Cred
Slide 25: Agenda: Lending and Financing
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 | 3 Q 2 3 Agenda 1. Company Overview 2.Competive Advantages 3.Bussinees Verticals 4.Lending and Financing 5.Financials
Slide 26: Accelerating loan growth with focus on higher ROE products
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 | 3 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 27: ROE-driven loan portfolio growth
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 | 3 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 Real Estate PayrollCredit Card 3Q23
Slide 28: Stable provisioning level and cost of risk
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 | 3 Q 2 3 Stable provisioning level reversing cost of risk trends with stable coverage ratio Coverage Ratio In % 4.8% 5.1% 5.0% 4.5% 5.6% 6.2% 5.9% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 126% 129% 141% 132% 131% 130% 132% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23
Slide 29: Strong deposits franchise outpacing market 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 | 3 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 30: Low cost of funding as competitive advantage
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 | 3 Q 2 3 Low cost of funding continues to be strong competitive advantage Avg. CDI of Quarter All-in Cost of Funding All-in Cost of Funding % of CDI 7.6% 10.3% 12.4% 13.5% 13.7% 13.7% 13.7% 13.3% 4.6% 5.6% 7.1% 7.9% 7.5% 8.1% 8.0% 8.2% 60.0% 54.9
Slide 31: First quarter ever creating organic capital
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 | 3 Q 2 3 First quarter ever creating organic capital 32.9% 29.8% 24.1% 23.0% 22.8% 23.7% 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Tier I Ratio In % Source: 3Q23 Banco Inter Bacen GAAP Financial Statements. • Capital ratio comprised exclusively of high-quali
Slide 32: Agenda: Financials
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 | 3 Q 2 3 Agenda 1. Company Overview 2.Competive Advantages 3.Bussinees Verticals 4.Lending and Financing 5.Financials
Slide 33: Solid revenue growth driven by fee income expansion
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 | 3 Q 2 3 70% 65% 74% 75% 65% 64% 65% 67% 69% 70% 65%30% 35% 26% 25% 35% 36% 35% 33% 31% 30% 35% 417 467 607 731 834 877 850 1,002 1,024 1,150 1,265 544 636 837 1,100 1,281 1,461 1,540 1,704 1,800 1,939 2,143 0 5 0 10 0 0 15 0 0 2 0 0 1Q21 2Q21 3Q
Slide 34: Sequential expansion of gross margin per active client
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 33 Sequential expansion of gross margin per active client ARPAC and CTS Evolution In R$, Monthly 12 11 17 12 16 17 13 13 15 17 18 16 15 23 22 28 32 30 30 32 34 35 32 32 37 44 46 47 45.9 47 46 46 48 28 28 31 34 34 32 29 31 29 30 31 16 17 14
Slide 35: Resilient NIM from ROE-driven underwriting
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 | 3 Q 2 3 Resilient NIM as consequence of ROE-driven underwriting 6.4% 7.2% 7.3% 6.9% 7.0% 6.4% 7.2% 7.4% 8.1% 7.8% 7.3% 8.1% 8.3% 8.0% 8.1% 7.4% 8.4% 8.7% 9.5% 9.2% 0. 0% 1.0 % 2. 0% 3. 0% 4. 0% 5. 0% 6. 0% 7. 0% 8. 0% 9. 0% 10. 0% 2Q21 3Q21 4Q21
Slide 36: Expense control continues to be a top priority
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 | 3 Q 2 3 Expense control continues to be a top priority % YoY +4% -9% +0% -6% % QoQ +7% +19% -5% +4% Data processing5 Advertising & marketing Other3 M&A2 Total Expenses +3% +6% Expenses Excl. M&A & SBC +14% -1% D&A +19% +12% Personnel4 Share-base
Slide 37: Continuous improvements in operational leverage
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 | 3 Q 2 3 Continuous improvements in operational leverage Revenue vs. Expenses In %, index in a 100 basis 114 119 115 137 140 158 172 100 89 89 95 108 96 91 9899 117 120 163 117 127 143 86 80 87 89 88 80 83 7 0 10 0 13 0 16 0 19 0 4Q21 1Q22 2Q22 3
Slide 38: Combining fee revenue growth with efficiency initiatives
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 | 3 Q 2 3 Combining fee revenue growth with efficiency initiatives to achieve excellence Peers Net Fee Revenue ÷ SG&A1 Median of Incumbent Banks Median of Digital Banks ~40% ~63%125 165 159 183 290 316 295 327 313 348 447 320 391 387 603 558 557 5
Slide 39: Record profitability ever
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 | 3 Q 2 3 Record profitability ever -111 -100 12 -70 -20 6 80 145 -2.6% -1.4% 0.8% -1.7% 1.6% 1.4% 3.6% 5.7% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% -115 -65 -15 35 85 135 185 Note 1: Adjusted Net Income for the third quarter of 2022 is
Slide 40: Appendix
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 | 3 Q 2 3 Appendix
Slide 41: Improvements and ESG initiatives
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 40 Improvements and ESG initiatives • Two-layer regulatory governance (SEC and CVM) • Creation of Audit Committee • Inclusion of explicit Inter&Co Tag Along rights High corporate governance levels Improvements in Eco-Efficiency • Sequential
Slide 42: Balance Sheet and Income Statement
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 | 3 Q 2 3 Balance Sheet (In R$ Million) Income Statement (In R$ Million) Variation % 3Q23 3Q22 ∆YoY Income Statement Interest income from loans 1,107 788 40% Interest expenses (770) (580) 33% Income from securities and derivatives 482 347 39% Net
Slide 43: Glossary of operational definitions
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 | 3 Q 2 3 Glossary of operational definitions 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
Slide 44: Glossary of financial measures reconciliation
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 | 3 Q 2 3 Glossary of financial measures reconciliation Administrative efficiency ratio: Administrative expenses + Depreciation and amortization Net Interest Income + Net result from services and comissions + Other revenue − Tax expense Annualized
Slide 45: Glossary of financial measures reconciliation
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 | 3 Q 2 3 Glossary of financial measures reconciliation Coverage ratio: Provision for expected credit loss Overdue higher than 90 days Earning portfolio (IEP): Earnings Portfolio includes “Amounts due from financial institutions” + “Loans and adva
Slide 46: Glossary of financial measures reconciliation
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 | 3 Q 2 3 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
Slide 47: Inter | INTR Nasdaq Listed
inter | INTR | Nasdaq Listed
Slide 48: 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