Slide 1: 4Q22 Earnings Presentation
March 2023 4Q22 Earnings Presentation
Slide 2: Disclaimer
2 Disclaimer 4Q22 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 uncert
Slide 3: Agenda
3 1. CEO Overview Agenda 4Q22 5. Financial Performance 2. Banking – Credit Engine 4. Transactional Platform 3. Banking – Funding Capabilities
Slide 4: CEO Overview
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Slide 5: Key highlights 4Q22
5 Key highlights 4Q22 x Strengthened Unit Economics x Realized Operating Efficiencies x Expanded Margins Growth Profitability x Winning Clients & Adoption x Gaining Market Share x Improving Revenue Quality Balance Sheet Strength x Highly collateralized loan portfolio x Stable funding base x Signific
Slide 6: Generating strong & improving financial results
6 Generating strong & improving financial results… 4Q22 Better Revenue Quality Improving Cost Efficiencies Expanding Profit Generation R$ 16.1 ( ↓ 29 % YoY ) Cost to Serve 59.5 % of CDI ( ↓ 350 bps YoY ) Cost of Funding 69 % ( ↓ 24 p.p. YoY ) Efficiency Ratio - 29 16 23 29 1Q22 2Q22 3Q22 4Q22 1,327
Slide 7: Market share gains across the client journey
7 0.1% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% CLIENT JOURNEY 4Q22 Note: All market share and market share gains gains are comparisons are between 2022 and 2021, except when said otherwise. Note 1: . Market data from Brazilian Central Bank, available at: https:// cdn - www.bcb.gov.br / acessoinfor
Slide 8: Credit Engine
8 Credit Engine Complete Banking
Slide 9: Growing our loan portfolio while maintaining price discipline
9 Growing our loan portfolio while maintaining price discipline 4Q22 Note 1: Gross Loan Portfolio = Loans and Advance to Costumers + Anticipation of Credit Card Receivables, disclosed in the notes of th e Financial Statements, line “Amounts due from financial institutions”. 53% 39% 29% 27% 25% 21% 1
Slide 10: Accelerating originations in lower risk products
10 15% 0.8 12% 0.7 14% 0.6 12% 0.6 10% 0.7 9% 0.7 27% 1.5 23% 1.3 13% 0.6 17% 0.8 12% 0.8 10% 0.7 1% , 0.1 3% , 0.1 4% , 0.2 4% , 0.3 46% 2.5 51% 2.9 61% 2.7 62% 2.9 47% 3.0 53% 3.8 6% , 0.3 7% , 0.4 3% , 0.1 6% , 0.3 6% , 0.4 5% , 0.4 6% , 0.3 7% , 0.4 9% , 0.4 3% , 0.2 24% , 1.6 23% , 1.6 5.5 5.8
Slide 11: Resilient loan portfolio
11 0.8% 0.9% 0.9% 1.1% 1Q21 2Q21 3Q21 4Q21 4Q22 Note 1: NPL ratios includes both Gross Loan Portfolio and Anticipation of Credit Card Receivables, as disclosed in the notes of the F in ancial Statements, line “Amounts due from financial institutions”. Note 2: The NPL formation is calculated consider
Slide 12: Stable Cost of Risk and Coverage Ratio
12 131% 126% 129% 141% 132% 4Q21 1Q22 2Q22 3Q22 4Q22 4.6% 4.9% 5.2% 5.2% 4.8% 4Q21 1Q22 2Q22 3Q22 4Q22 Stable Cost of Risk and Coverage Ratio 4Q22 Note 1 : Cost of Risk = (Impairment losses on financial assets * 4) over the a verage of loans and advances to costumers of the 2 last quarters. Note 2 :
Slide 13: Funding Capabilities
13 Funding Capabilities Complete Banking
Slide 14: Success in attracting customer deposits
14 Success in attracting customer deposits 4Q22 Note 1 : Others = saving deposits + creditors by resources to release. • Growing base of low cost deposits , especially demand deposit which are up 11% QoQ +74% +52% +16% % YoY +6% +36% - 10% +10% +11% % QoQ +7% +5% 1 Funding R$ Billion 33% 47% 45% 37%
Slide 15: Increasing client's wallet share in funding and investments
15 4Q22 Increasing client’s wallet share in funding and investments 1 2 Funding per Active Client R$ Thousand • Balance per active client increased during 2022 • High inflation resulting in mix change towards higher yielding deposits and investments Note 1 : Others = saving deposits + creditors by r
Slide 16: Highly attractive, cost-efficient funding at scale
16 Avg. CDI of Quarter Annualized All-in Cost of Funding All-in Cost of Funding as % of CDI 7.6% 10.3% 12.4% 13.5% 13.7% 4.8% 6.0% 7.6% 8.6% 8.1% 63.0% 58.7% 61.2% 63.5% 59.5% 4Q21 1Q22 2Q22 3Q22 4Q22 Highly attractive, cost - efficient funding at scale 4Q22 Note 1: All - in Cost of Funding = (Inter
Slide 17: Transactional Platform
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Slide 18: Strong client adoption across transactional platform
18 Strong client adoption across transactional platform 4Q22 0.8 1.3 2021 2022 1.8 2.8 2021 2022 1.7 2.4 2021 2022 Inter Shop Inter Insurance Inter Invest Active Clients in millions Volume % YoY growth 52 % 55 % 40 % + 1.6 million SKUs 5.9% Net Take - Rate R$ 54 mm Premiums 4 Q22 R$ 3.7 bn Net Inflo
Slide 19: Increased client engagement
19 4Q22 …has helped us increase client engagement 66 % % of Active Clients Average Clients with 3 or More Products 2 3Q22 1Q22 3Q21 3Q20 1Q20 3Q19 1Q19 1Q21 35% 45% 55% 65% 75% 85% 0 2 4 6 8 10 12 14 16 18 20 22 Months of Relationship Primary Bank Relationship 1 % of Active Clients 4 Q22 1Q18 4Q22 B
Slide 20: Diversify into asset-light fee revenue
DRAFT – March 9th, 10:00 am BRT 20 4Q22 …And diversify into asset - light fee revenue 17.8% 34.4% 2019 2020 2021 2022 127 295 655 1,227 • Tremendous Net Fee Revenue growth since launching our Commerce strategy • Reduces our reliance on Net Interest Income Fee income & Fee income ratio In R$ Million
Slide 21: Financial Performance
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Slide 22: Consistent client growth at a low cost
22 10.2 12.0 13.9 16.3 18.6 20.7 22.8 24.7 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 4Q22 Consistent client growth at a low - cost 51% 45% 45% 40% 45% 50% 55% 51% 49% 55% 55% 60% 55% 50% 45% 49% 27.8 27.2 30.7 28.8 29.0 32.1 28.3 30.4 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Operational Costs Marketing
Slide 23: Accelerating banking activity
23 Accelerating banking activity 4Q22 Note 1 : Height of PIX volume was reduced to fit on page. Note 2: Considers PIX, credit card and debit card transacted volume per client cohort. 34% 44% 68% 63% % YoY 27% 11% 8% 15% 14% % QoQ 14% 62% 62% 61% 58% 55% 54% 54% 55% 38% 38% 39% 42% 45% 46% 46% 45% 8
Slide 24: Increasing monetization of our client base
24 28 28 31 35 34 32 29 31 32 32 37 45 46 47 46 47 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Net ARPAC Gross ARPAC 4Q22 Increasing monetization of our client base Gross ARPAC 2 By Cohort In R $, monthly Quarters of relationship 4 Q22 1Q18 Net ARPAC 1 By Cohort In R $, monthly Quarters of relationship
Slide 25: Expanding NIM as we reprice the loan portfolio
25 Expanding NIM as we reprice the loan portfolio 4Q22 Note 1: Non - IFRS measure. Marginal NIM assumes that real estate and payroll loans are fully repriced, using the origination rates of the last month of each quarter. Note 2 : Non - IFRS measure. NIM 1.0 = (Net Interest Income * 4) ÷ (Average of
Slide 26: Healthy revenue growth, accelerating as result of portfolio repricing
26 82% 71% 71% 66% 20% 31% 29% 34% 712 1,012 2,244 3,563 1,025 1,327 3,139 5,986 - 2,000 4,000 6,000 8,000 10,000 2019 2020 2021 2022 Net Interest Income Net Fee Revenue Total Net Revenue Total Gross Revenue +59% % YoY +90% +87% +47% Healthy revenue growth, accelerating as result of portfolio repric
Slide 27: Resulting in operating efficiencies and lower unit costs
27 2.3 2.6 2.6 2.9 3.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4Q21 1Q22 2Q22 3Q22 4Q22 Thousands …Resulting in operating efficiencies and lower unit costs 4Q22 Note 1: Including interns and apprentices. Note 2: Cost - to - serve = [(Personnel Expenses + Other Administrative Expenses – Total CAC) · 3] · Ave
Slide 28: Consistent improvement in profitability
28 4Q22 Consistent improvement in profitability • Sequential improving in profitability • NIM expansion and operational leverage leading the profitability trend • Strong momentum for 2023 Net Income (Loss) R$ Million | Inter&Co (29) 16 23 29 1Q22 2Q22 3Q22 Adjusted 4Q22 1 Note 1: Non - IFRS measure.
Slide 29: Closing Remarks
29 May 2022 Closing Remarks
Slide 30: Closing remarks
30 1 2 3 Operational Leverage NIM Expansion Resilient Asset Quality Improving Cost - to - serve Efficiency Ratio Expanding Yield on interest earning assets Funding mix Enhancing Underwriting models Collection processes 4Q22 Closing remarks Balance sheet strength continue supporting franchise growth
Slide 31: Q&A
inter — Q&A
Slide 32: Appendix
inter Appendix
Slide 33: Discipline in expenses
33 4Q22 % YoY + 29 % +10 % +42% - 6 % N/M - 13 % % QoQ +18% +13% +12 % - 6 % N/M +9 % Data Processing Banking, Publicity and Other Expenses 1 Tax Expenses 2 Personnel Expenses 3 M&A Expenses 4 Note 1: Banking includes bank expenses, such as wiretranfers and overdraft expenses. Publicity includes adv
Slide 34: Non-IFRS reconciliations
34 Non - IFRS reconciliations 4Q22 Adjusted Cost - to - Serve & Efficiency Ratio
Slide 35: Non-IFRS reconciliations: NPL Formation
35 4Q22 2 Non - IFRS reconciliations NPL Formation 4Q22 Stage 3 Formation 4Q22 (a) Beggining of the Period Balance 839 1,167 (b) End of the Period Balance 1,000 1,006 (c) Write - Offs (74) (45) (d) = ((b) - (a) - (c)) Formation 235 (116) (e) Migration - 352 ( g ) = ( d ) + (e) Formation (Adjusted) 2
Slide 36: Strong capital, liquidity and deposits base
36 Strong capital, liquidity and deposits base 4Q22 Note 1 : Tier I as of December 31 st , 2022, for Inter. Top 5 Banks considers the average Tier I, as of December 31 st , 2022, for Itaú Unibanco , Bradesco, Banco do Brasil and the average of CET1, as of September 30 th , 2022, for Caixa and Santan
Slide 37: 3Q Deflation impact – Illustrative adjustment
37 4Q22 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 38: Glossary of operational definitions
38 Glossary of operational definitions 4Q22 Active clients: We define an active client as a customer at any given date that was the source of any amount of revenue for us in the preceding three months, or/and a customer that used products that do not generate revenues in the preceding three months (
Slide 39: Glossary of Non-IFRS measures reconciliation
39 Glossary of Non - IFRS measures reconciliation 4Q22 ARPAC gross of interest expense : ሺ –‡”‡•– ‹‘‡ ƒŽ—Žƒ–‡† —•‹‰ –Š‡ ‡ˆˆ‡–‹˜‡ ‹–‡”‡•– ‡–Š‘† ሺ ”‡˜‡—‡ ˆ”‘ •‡”˜‹‡• ƒ† ‘‹••‹‘• െ ƒ•Š„ƒ ‡š’‡•‡• ሻ ‘‡ ˆ”‘ •‡—”‹–‹‡• ‡– ‰ƒ‹• ሺ Ž‘••‡• ሻ ˆ”‘ †‡”‹˜ƒ–‹˜‡• –Š‡” ”‡˜‡—‡ ሻ ൊ ͵ ˜‡”ƒ‰‡ ‘ˆ
Slide 40: Glossary of Non-IFRS measures reconciliation
40 Glossary of Non - IFRS measures reconciliation 4Q22 NPL 15 to 90 days: ͳͷ –‘ ͻͲ †ƒ›• ‘ƒ• ƒ† ƒ†˜ƒ‡• –‘ —•–‘‡”• –‹‹’ƒ–‹‘ ‘ˆ ”‡†‹– ƒ”† ‡‡‹˜ƒ„Ž‡• ሾ ‹‡ ̶‘—–• †—‡ ˆ”‘ ˆ‹ƒ‹ƒŽ ‹•–‹–—–‹‘• dz ሿ NPL > 90 days: ͻͲ †ƒ›• ‘ƒ• ƒ† ƒ†˜ƒ‡• –‘ —•–‘‡”• –‹‹’ƒ–‹‘ ‘ˆ ”‡†‹– ƒ”† ‡‡‹˜ƒ„Ž‡• ሾ ‹‡ ̶
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