Slide 1: 2Q23 Earnings Presentation
2Q23 Earnings Presentation August 14th, 2023
Slide 2: Disclaimer
Disclaimer 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 uncertainties that
Slide 3: Agenda
Agenda CEO Overview Banking - Credit & Funding Capabilities Transactional Platform Financial Performance
Slide 4: Agenda: CEO Overview
Agenda CEO Overview Banking - Credit & Funding Capabilities Transactional Platform Financial Performance
Slide 5: A quarter of records
&CO INTR | Nasdaq Listed A quarter of records - Jodo Vitor Menin
Slide 6: The quarter of records in Inter's journey
The “quarter of records” in Inter’s journey Revenue Quality Operational Leverage Interest Margins Bottom Line Expanding Total Gross Revenue1 R$1.9bn +33% YoY Financials Record low Efficiency Ratio1 53% -9.0 p.p. QoQ Growing NIM 2.01 9.5% Delivering EBT2 +0.9 p.p QoQ R$80mm Vs. 16mm 2Q22 Clients Base
Slide 7: Introducing our seventh vertical: Inter Loop
Introducing our seventh vertical: Inter Loop Integrated business model BANKING & SPENDING CREDIT SHOP INSURANCE INVEST GLOBAL LOYALTY Build Client Base & Funding Grow Monetization & Activation Expand Gaining Market Share
Slide 8: A Quarter of Records: Innovative & Profitable Business Model
A Quarter of Records Innovative & Profitable Business Model Growth Gaining market share and scale Innovation Enhancing the Super App offer, staying true to our DNA Profitability Monetizing clients in a profitable manner While attracting & engaging a record number of clients
Slide 9: Agenda: Banking - Credit & Funding Capabilities
Agenda CEO Overview Banking - Credit & Funding Capabilities Transactional Platform Financial Performance
Slide 10: ROE-driven loan portfolio growth
ROE-driven loan portfolio growth 72.1% 8 .0 0% Credit Cards Annualized Interest Rates 52.8% 14.1% 22.1% 7 .0 0% 20.3% 6 .0 0% 5 .0 0% 16.2% 4 .0 0% 3 .0 0% All-in Loans Yield Payroll + FGTS SMBs In % 13.3% 13.9% 2 .0 0% Real Estate 11.8% 11.3% 10 .0 % 0.0% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 10 .0 5
Slide 11: Asset quality following macro trends
Asset quality following macro trends NPL 15 to 90 days In % 4.6% 4.6% 4.5% 4.5% 4.6% 4.4% NPL > 90 days In % 3.5% 3.9% 4.0% 4.4% 4.7% 4.9% 4.7% 4.5% 4.5% 4.3% 4.1% 4.3% 4.2% 3.4% 3.8% 3.8% 4.1% 4.4% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 NPL 15-90 days NPL 15-90 days (Excl. Antic. of CC Receivables) Credit C
Slide 12: Provisioning level maintaining stable coverage ratio
Provisioning level maintaining stable coverage ratio Cost of Risk1 In % Coverage Ratio In % 126% 129% 141% 132% 131% 130% 4.9% 5.2% 5.2% 4.8% 4.8% 5.1% 5.0% 4.5% 6.5% 6.0% 5.6% 6.2% 2.1% 1.1% 1.9% 1.0% 1.1% 1.1% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 Cost of Risk (Excl. Antic. o
Slide 13: Continued success in attracting retail deposits
Continued success in attracting retail deposits Funding In R$ Billion 67.2% 64.5% 67.5% 61.9% 61.2% 65.0% 63.3% % YoY % QoQ -2.1 p.p. -1.7 p.p. All-In Cost of Funding as % of CDI 29.8 30.8 33.3 5%; 1.6 +45 29% +8% +14% +6% Total Other1 +13.2 million clients 6.4 6%; 0.4 27%; 1.7 14.2 21.9 25.9 +15% +
Slide 14: Agenda: Transactional Platform
Agenda CEO Overview Banking - Credit & Funding Capabilities Transactional Platform Financial Performance
Slide 15: Strong adoption combining higher activation with low CAC
Strong adoption combining higher activation with low CAC Total Number of Clients In Million + 2.0 mm +2.2 mm 20.7 22.8 + 1.9 mm + 1.6 mm 24.7 + 1.5 mm 26.3 27.8 Client Acquisition Cost In R$, quarterly 32.1 29.0 28.3 -16% YoY 30.4 29.8 27.1 18.6 1 mm + 0.9 m 10.7 .9 mm + 1.0 mm 12.6 + 1.0 mm 14.5 13
Slide 16: Transactional banking continues its path of strong growth
Transactional banking continues its path of strong growth Cards + PIX TPV1 In R$ Million 92 80 109 111 94 97 134 118 155 138 178 181 158 163 197 177 % YoY +47% +50% % QoQ +9% +9% Cards + PIX TPV per Active Client In R$, monthly 10 9 8 7 6 5 67 44 58 37 12 14 14 16 46% 17 46% 19 45% 18 46% 20 47% +22
Slide 17: Enhancing performance across all business verticals
Enhancing performance across all business verticals Enhancing performance across all business verticals Active Clients In Million é 35% 2.0 2.7 Active Clients In Million é 46% 1.5 Active Clients In Million 1.0 9mm Transactions1 2Q23 é 24% YoY 2Q22 2Q23 +R$756 million GMV x 8.9% Net Take Rate 344k To
Slide 18: New rewards program to drive synergies across business verticals
New rewards program to drive synergies across business verticals Introducing our New Rewards Program More Options for Clients Earn points: Credit Card Bills “Conta com Pontos” Missions Accomplishments + 3 Million clients in 2 months Burn points: Cashback Extra Cashback in Inter Shop Credit Card Bill
Slide 19: Keeping our innovative DNA with a prudent approach in the US
Keeping our innovative DNA with a prudent approach in the US Product Rollout Remittances Gift Cards Pipeline Global Services Clients1 In Thousand + 335 AuC & Deposits in US Dollars In USD Million More than 710k Brazilian travelled to US from Jan to Jun in 20232 + 91 + 360 + 625 501 + 320 1,127 1,447
Slide 20: Agenda: Financial Performance
Agenda CEO Overview Banking - Credit & Funding Capabilities Transactional Platform Financial Performance
Slide 21: Accelerating revenues with balanced mix of NII and fees
Accelerating revenues with balanced mix of NII and fees Revenue In R$ Million 636 544 837 607 1,100 731 25% 1,540 1,461 1,281 834 877 850 35% 36% 35% 1,800 1,704 1,002 1,024 33% 31% 1,939 1,150 30% % YoY +33% +31% +10% • Reacceleration of fee revenue across business lines • Strong NII growth given r
Slide 22: Engagement and activation drives higher ARPAC across cohorts
Engagement and activation drives higher ARPAC across cohorts Gross ARPAC By Cohort In R$, monthly 90 75 60 45 30 15 R$87 Mature ARPAC ARPAC In R$, monthly 43.7 45.6 47.3 45.9 46.9 45.9 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Quarters of relationship 37.1 Net ARPAC By Cohort In R$,
Slide 23: Strong NIM expansion, reaching highest levels in multiple years
Strong NIM expansion, reaching highest levels in multiple years 1 Conversion to Market 2 Ongoing Repricing 3 Loan Mix Change 4 Evolution into 2H23 10. 0% 9. 0% 8. 0% 7. 0% 6.4% 7.3% 8.1% 8.3% 8.0% 8.1% 7.2% 7.3% 6.9% 7.0% 6.4% 7.4% 7.2% 8.4% 8.7% 7.4% 9.5% 8.1% Conta com Pontos full implementation 6
Slide 24: Expense control strategies proving successful
Expense control strategies proving successful Expenses Breakdown1 In R$ Million 603 685 8 43 % YoY % QoQ +3% -3% Total Expenses 1 592 634 596 575 -49% -41% Share-based comp.2 602 558 557 8 8 10 6 6 10 -10% +64% M&A2 4 12 12 576 579 555 533 171 559 +5% -4% Expenses Excl. M&A & SBC 202 175 148 166 189
Slide 25: Boosting employee productivity to improve efficiency
Boosting employee productivity to improve efficiency Active Clients per Employee1 In Thousand + 0.7 4.2 Cost-to-Serve In R$, monthly Headcount optimization from 4.1k in December to 3.4k in June + 0.2 2.3 + 0.1 2.5 2.6 + 0.3 2.9 + 0.2 + 0.4 3.1 3.5 21.2 17.5 -20% YoY 17.1 15.7 15.8 13.8 12.5 0. 5 4Q2
Slide 26: Meaningful improvements in operational leverage
Meaningful improvements in operational leverage Revenue vs. Expenses In %, index in a 100 basis Efficiency Ratio In % 88% 114 119 117 120 115 163 137 140 117 108 158 127 Net revenue1 Personnel Expenses 64% 72% 49% 68% 43% 75% 73% 48% 42% 62% 40% 53% Total 10 00 99 95 89 89 96 91 Personnel + Administ
Slide 27: Strongly capitalized balance sheet structure
Strongly capitalized balance sheet structure Tier I Ratio In % 32.9% 29.8% - 0.2 p.p. • Capital ratio purely comprised of high-quality core Tier I capital • Several opportunities to continue redeploying capital into loan growth • Approximately 2x Brazil 5 largest banks capital base Tier-I Ratio In %
Slide 28: Record profitability since IPO
Record profitability since IPO Speeding up our path to profitability Earnings Before Tax & Net Income In R$ Million | Inter&Co 12 Δ YoY 80 +7x 6 Δ QoQ +14x Pre-tax Income -20 64 +4x +3x Net Income -111 -100 -70 16 29 24 (29) (30) (56) 4Q21 1Q22 2Q22 3Q221 4Q22 1Q23 2Q23 Note 1: Adjusted Net Income f
Slide 29: Closing Remarks
Closing Remarks
Slide 30: A quarter of records
“A quarter of records Total Gross Revenue R$1.9bn NIM 2.0 9.5% Total Clients 28mm Rewards Launch Efficiency Ratio 53% Earnings Before Tax R$80mm Active Clients 52.2% Global App Launch
Slide 31: Q&A
inter Q&A
Slide 32: Appendix
inter — Appendix
Slide 33: Balance Sheet and Income Statement
Balance Sheet (In R$ Million) Income Statement (In R$ Million) Variation % 06/30/2023 06/30/2022 ∆YoY Variation % 2Q23 2Q22 ∆YoY CEO Overview Banking Transactional Platform Financial Performance Closing Remarks Appendix Balance Sheet Assets Cash and cash equivalents 3,672 1,549 137% Amounts due from
Slide 34: Glossary of operational definitions
Glossary of operational definitions 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 in the preceding three months. For Inter insurance, we calculate the
Slide 35: Glossary of financial measures reconciliation
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 interest rates: Yearly rate calculated by multiplying the quarterl
Slide 36: Glossary of financial measures reconciliation
Glossary of financial measures reconciliation Coverage ratio: Provision for expected credit loss Overdue higher than 90 days Net interest income: Interest Income + Interest Expenses + Income from securities and derivatives Earning portfolio (IEP): Earnings Portfolio includes “Amounts due from financ
Slide 37: Glossary of financial measures reconciliation
Glossary of financial measures reconciliation NPL formation: Overdue balance higher than 90 days in the current quarter – Overdue balance higher than 90 days inthe previous quarter + Write − off change in the current quarter Total loans and advance to customers in the previous quarter Personal effic
Slide 38: inter
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