Slide 1: 1Q23 Earnings Presentation
1 May 8 th , 2023 1Q23 Earnings Presentation
Slide 2: Forward-looking statements
2 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 cou
Slide 3: Harvesting profitable results from solid foundations
3 “Harvesting profitable results from solid foundations” - Inter Team | Belo Horizonte
Slide 4: Agenda
4 1. CEO Overview Agenda 5. Financial Performance 2. Banking – Credit Engine 4. Transactional Platform 3. Banking – Funding Capabilities
Slide 5: Agenda: CEO Overview
5 1. CEO Overview 5. Financial Performance 2. Banking – Credit Engine 4. Transactional Platform 3. Banking – Funding Capabilities Agenda
Slide 6: Solid Foundations in Place
6 Solid Foundations in Place Top Management Team Best Super App Leading Deposits Franchise 1 2 3 EARNINGS PRESENTATION | 1Q23 Fortress Balance Sheet 4 Massive +26 Million Clients 5
Slide 7: Navigating the Next 5 Years
7 Clients Massive Growth Growth & Engagement Loans Market Share driven Pricing based growth Capital Deployment phase Tactical use Efficiency As an outcome As a guideline Navigating the Next 5 Years EARNINGS PRESENTATION | 1Q23
Slide 8: Already Harvesting Profitable Results
8 Operational Leverage Record low Efficiency Ratio 62 % - 11.2 p.p . YoY Interest Margins Growing NIM 2.0 Bottom Line Deliver ing + Net I ncome R$ 24 mm Vs. (29)mm 1Q22 Activation Rate Increasing Active Clients 51.5 % +48 bps QoQ Expanding Demand deposits 1 Market Share 3.6 % +21 bps QoQ Already Har
Slide 9: Agenda: Banking – Credit Engine
9 5. Financial Performance 2. Banking – Credit Engine 4. Transactional Platform 3. Banking – Funding Capabilities 1. CEO Overview Agenda
Slide 10: Loan portfolio growth prioritizing most profitable products
10 53% 39% 29% 25% 29% 26% 21% 19% 20% 20% 21% 20% 3% 0% 4% 10% 18% 17% 14% 16% 12% 2% 4% 3% 3% 3% 16% 22% 27% 28% 29% 29% 17.2 22.7 18.2 23.8 2% 8% 2% 5% 4.8 8.8 17.5 24.5 18.5 25.1 0.0 5.0 10.0 15.0 20.0 25.0 2019 2020 2021 2022 1Q22 1Q23 Loan portfolio growth prioritizing most profitable products
Slide 11: Resilient asset quality, improving across cohorts
11 3.4% 3.8% 3.8% 4.1% 4.4% 3.5% 3.9% 4.0% 4.4% 4.7% 1Q22 2Q22 3Q22 4Q22 1Q23 NPL > 90 days NPL > 90 days (excl. Antic. Of C.C. Receivables) 4.5% 4.5% 4.3% 4.1% 4.3% 4.6% 4.6% 4.5% 4.5% 4.6% 1Q22 2Q22 3Q22 4Q22 1Q23 NPL 15-90 days NPL 15-90 days (excl. Antic. Of C.C. Receivables) Resilient asset qua
Slide 12: Positive dynamics from newer cohorts and collateralized portfolio
12 Positive dynamics from newer cohorts and collateralized portfolio Coverage Ratio In % 4.9% 5.2% 5.2% 4.8% 6.0% 4.8% 5.1% 5.0% 4.5% 5.6% 2.1% 1.1% 1.9% 1.0% 1.1% 1Q22 2Q22 3Q22 4Q22 1Q23 Cost of Risk (excl. Antic. Of C.C. Receivables) Cost of Risk Cost of risk (Excluding Credit Cards) 126% 129% 14
Slide 13: Agenda: Banking – Funding Capabilities
13 5. Financial Performance 2. Banking – Credit Engine 4. Transactional Platform 3. Banking – Funding Capabilities 1. CEO Overview Agenda
Slide 14: Strengthening retail deposit franchise
14 33% 47% 45% 39% 41% 36% 35% 34% 32% 35% 34% 38% 27% 12% 16% 21% 18% 22% 6% 7% 7% 5% 6% 5% 6.4 14.2 21.9 29.8 23.2 30.8 2019 2020 2021 2022 1Q22 1Q23 Strengthening retail deposit franchise Note 1: Others = saving deposits + creditors by resources to release. Note 2 : Market data from Brazilian Cen
Slide 15: Cost-efficient funding at scale
15 Cost - efficient funding at scale All - in Cost of Funding In %, Annualized 7.6% 10.3% 12.4% 13.5% 13.7% 13.7% 4.8% 6.0% 7.6% 8.6% 8.1% 8.9% 63.0% 58.1% 61.2% 63.5% 59.5% 65.0% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 • Strong competitive advantage of Inter’s ecosystem Avg. CDI of Quarter All-in Cost of Fun
Slide 16: Agenda: Transactional Platform
16 5. Financial Performance 2. Banking – Credit Engine 4. Transactional Platform 3. Banking – Funding Capabilities 1. CEO Overview Agenda
Slide 17: Material improvement in combining activation with client adds
17 Total Number of Clients In Million Client Acquisition Cost In R$, quarterly 45% 50% 55% 51% 56% 55% 50% 45% 49% 44% 29.0 32.1 28.3 30.4 29.8 1Q22 2Q22 3Q22 4Q22 1Q23 Operational Costs Marketing Costs 53.3% 51.7% 51.2% 51.0% 51.5% 18.6 20.7 22.8 24.7 26.3 - 5.0 10.0 15.0 20.0 25.0 30.0 1Q22 2Q22 3
Slide 18: Continued momentum in transactional banking activity
18 0 2 4 6 8 10 1 3 5 7 9 11 13 15 17 19 21 Thousand 62% 62% 61% 58% 55% 54% 54% 55% 54% 38% 38% 39% 42% 45% 46% 46% 45% 46% 8 9 12 14 14 16 17 19 18 37 58 80 94 97 118 138 158 163 44 67 92 109 111 134 155 178 181 0 5 10 15 20 25 30 35 40 45 50 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 Debit Cred
Slide 19: Strong client adoption across transactional platform
19 2.0 3.3 1Q22 1Q23 0.9 1.3 1Q22 1Q23 1.8 2.5 1Q22 1Q23 x Strong client adoption across transactional platform Inter Shop Inter Insurance Inter Invest Active Clients I n M illion 46 % 33 % +R$829 million GMV 6.5% Net Take - Rate R$ 53 mm Premiums 1Q23 R$ 6.9 bn Third Party Fixed Income Distribut io
Slide 20: Inter Global: Replicating Inter success in the US
20 Inter Global | Replicating Inter success in the US with minimal capex Note 1: Global Services Clients includes Brazilian Global Account clients, US clients and International Investors . Note 2 : According to number of users in US. Note 3: Amount included in Demand Deposit balance on IFRS Financia
Slide 21: Agenda: Financial Performance
21 5. Financial Performance 2. Banking – Credit Engine 4. Transactional Platform 3. Banking – Funding Capabilities 1. CEO Overview Agenda
Slide 22: Accelerating NII as result of portfolio repricing
22 70% 65% 74% 75% 65% 64% 65% 67% 69% 30% 35% 26% 25% 35% 36% 35% 33% 31% 417 467 607 731 834 877 850 1,002 1,024 544 636 837 1,281 1,461 1,540 1,704 1,800 0 500 1000 1500 2000 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 Net Interest Income Net Fee Revenue Total Net Revenue Total Gross Revenue % Y
Slide 23: Increasing monetization of our client base as cohorts mature
23 0 10 20 30 40 50 60 70 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 0 15 30 45 60 75 90 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Increasing monetization of our client base as cohorts mature Gross ARPAC By Cohort In R $, monthly Quarters of relationship 1 Q23 1Q18 Net ARPAC B
Slide 24: Highest NIM since increase of SELIC rates
24 8.0% 8.1% 7.4% 8.4% 8.7% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 1Q22 2Q22 3Q22 4Q22 1Q23 6.9% 7.0% 6.4% 7.2% 7.4% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 1Q22 2Q22 3Q22 4Q22 1Q23 Highest NIM since increase of SELIC rates Portfolio mix contributing to NIM expansion NIM 1.0 - IEP + Non -
Slide 25: Disciplined focus on expense control
25 160 127 135 160 149 181 235 161 168 167 144 144 25 46 13 29 56 40 19 36 36 36 56 38 45 43 32 23 40 20 147 141 149 160 189 156 630 555 533 576 634 579 12 8 43 6 1 4 12 8 8 10 631 558 557 592 685 596 -50 50 150 250 350 450 550 650 750 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 % YoY +10 % +7 % - 53% + 43 % - 10
Slide 26: Delivering strong progress on operational leverage
26 21.2 17.5 15.7 15.8 17.1 13.8 0.0 5.0 10.0 15.0 20.0 25.0 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 21% YoY 2.3 2.6 2.6 2.9 3.1 3.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 88% 72% 68% 75% 73% 62% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 Delivering stron
Slide 27: Capital ratio
27 23.0% 1.5% 24.5% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 1Q23 BACEN New Rules 1Q23 PF • Capital ratio purely comprised of high - quality core Tier I capital • Several opportunities to continue redeploying capital into loan growth • Approximately 2x the capital base of Brazil’s 5 largest banks 3 :
Slide 28: Sequential improvement in profitability
28 Sequential improvement in profitability Net Income In R$ Million | Inter&Co 1 (110) Income before tax (100) 12 (33) 1 (20) 6 (56) (29) 16 (30) 29 24 23 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 Note 1: Adjusted Net Income for the third quarter of 2022 is presented for illustrative purposes only and does not
Slide 29: Closing Remarks
Closing Remarks inter
Slide 30: Harvesting Profitable Results From Solid Foundations
30 Operational Leverage Record low Efficiency Ratio 3 62 % - 11.2 p.p . YoY Interest Margin Growing NIM 2.0 4 8.7 % +30 bps QoQ Bottom Line Delivering Net Income 5 R$ 24 mm Vs. 29 mm 4Q22 Activation Rates Increasing Active Clients 2 51.5 % +48 bps QoQ Expanding Demand Deposits 1 Market Share 1 3.6 %
Slide 31: Q&A
31 Q&A
Slide 32: Appendix
inter — Appendix
Slide 33: Balance Sheet and Income Statement
33 Balance Sheet ( R $ Million) Income Statement ( R $ Million ) EARNINGS PRESENTATION | 1Q23
Slide 34: Glossary of operational definitions
34 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
Slide 35: Glossary of financial measures reconciliation
35 Glossary of financial measures reconciliation ARPAC gross of interest expenses : ሺ –‡”‡•– ‹…‘‡ ሺ ‡˜‡—‡ ˆ”‘ •‡”˜‹…‡• ƒ† …‘‹••‹‘• െ ƒ•Š„ƒ… ‡š’‡•‡• ሻ …‘‡ ˆ”‘ •‡…—”‹–‹‡• ‡– ‰ƒ‹• ሺ Ž‘••‡• ሻ ˆ”‘ †‡”‹˜ƒ–‹˜‡• –Š‡” ”‡˜‡—‡ ሻ ൊ ͵ ˜‡”ƒ‰‡ ‘ˆ –Š‡ Žƒ•– ʹ “—ƒ”–‡”• …–‹˜‡ Ž‹‡–• ARPAC net
Slide 36: Glossary of financial measures reconciliation
36 Glossary of financial measures reconciliation Net fee income: ‡– ”‡•—Ž– ˆ”‘ •‡”˜‹…‡• ƒ† …‘‹••‹‘• –Š‡” ”‡˜‡—‡ Net interest income: –‡”‡•– …‘‡ –‡”‡•– š’‡•‡• …‘‡ ˆ”‘ •‡…—”‹–‹‡• Net revenue : Net interest income + Net result from services and commissions + Net gains ( losses ) fro
Slide 37: inter
inter