INTR

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 8:30 a.m. ET Global CEO - Joao Vitor Nazareth Teixeira de Souza Brazil CEO - Alexandre De Oliveira CFO - Santiago Stel IR Officer - Rafaela Vitória Rafaela Vitória: Hi, everyone. I'm Rafa Vitoria, IR Officer at Inter, and I would like to welcome all to Inter & Co's earnings conference call. First of all, some instructions. [Operator Instructions] This call is also available conference is being recorded. A replay will be available at the company's IR website. With me today are João Vitor Menin, our Global CEO; Alexandre Riccio, our Brazil CEO; and Santiago Stel, our CFO. To start with the CEO overview, I would like to invite Joao. Joao, please go ahead. João Vitor Nazareth Teixeira de Souza: Thank you, Rafa. Thank you all for joining us today to discuss our second quarter results for 2026. I want to start with something that is truly meaningful for Inter. Back in May at our Owners Day, we introduced the Rule of 50 as our long-term plan, proving that growth and profitability are not a trade-off, but a combination we can deliver together. And here we are just 1 quarter after announcing the plan and the Rule of 50 is already a reality. Total net revenue grew 32%. ROE reached over 16%. We are already executing the plan. The Rule of 50 does not stand alone. It is built on top of our 60-30-30 North Star, the goal of 60 million clients, 30% efficiency ratio and 30% ROE. That compass continues to guide everything we do. The trend on this chart reflects years of disciplined capital allocation, high growth and consistent execution, supported by a solid balance sheet. But results like these don't happen by accident. Delivering the Rule of 50 is only possible because of our Inter by design approach. It combines 3 reinforcing pillars: sustainable revenue growth, scalable distribution capabilities and unique cost efficiencies. And that compounding effect is what you see in our numbers. We tripled our revenue growth while simultaneously doubling our active client base, meaning we are getting more engaged clients. We are doing all of this while improving our efficiency ratio by 32 percentage points and expanding ROE by 18 percentage points as well. Growth and profitability moving in the same direction at the same time. That is what Inter by design produce. And when this flywheel runs at full speed, the natural consequence is market share gains across every product and segment. That is what I want to show you next. More clients bring more transactions. More transactions bring more data. Better data drives better products and smarter credit decisions. Better products attract even more clients and the cycle keeps compounding. That is what the flywheel concept means for Inter. And what makes our flywheel particularly powerful is the breadth of our ecosystem. The more products we offer across more verticals, the more entry points we create for clients and the faster the cycle spins. Whether you look at PIX, credit cards, investments or home equity, our market share numbers are climbing across the board, faster than many of the most important players in Brazil. We are not just growing. We are growing in every segment at the same time, but with discipline. That's the strength of our ecosystem, and it's only getting stronger. This flywheel guides not just how we grow, but also where we choose to grow. The opportunity in front of us is bigger than ever because we are actively deepening and widening our addressable market. Our core is secured lending. That was a deliberate choice from the start, mortgages, home equity and payroll, for instance. Nearly 82% of secured personal loans in Brazil are still concentrated in the top 5 players. That is massive, underpenetrated market, and we have the distribution, the product experience, the data and the cost structure to keep gaining market share. But we're not stopping there. We are widening into unsecured as well, and we're doing it carefully with discipline and the results are already showing up. For the first time ever, we surpassed 2% market share in credit cards TPV in Brazil. We have never been more profitable in this product than we are today. In summary, secured loans remains our foundation, strong asset quality with stable returns, resilient through different credit cycles. And on top of that, unsecured credit such as credit card, PIX credit and buy now pay later are deepening principality and widening our addressable market further on. We are seizing the opportunity in both, and that is what gives us the confidence to keep growing 30% or more for many years to come. And now to conclude, as you can see on Page 9, I would like to highlight 3 important milestones for our company. Number one, on gaining scale. For the first time ever, we reached over BRL 100 billion in total assets. Second, on expanding margins. For the first time, we crossed double-digit NIMs. And third, on creating value. For the first time, we surpassed capital neutrality, meaning our business now generates more capital than it consumes to grow even in a fast pace of growth. These are not just milestones. They are proof that the model we have been building with discipline, consistency and ambition is delivering real results for our shareholders. Now Sandy and Santi will bring this story to life with the full numbers behind it. Sandy will walk you through the business update, while Santi will take you through the financial performance in detail. Sandy, please go ahead. Alexandre De Oliveira: Thank you, João, and good morning, everyone. Let's now dive into our second quarter operational results. We reached 45.3 million clients and over the last 12 months, added 3.7 million new active clients. But the size of our base is not the main story here. The quality of it is. We have been deliberate about how we grow, being more selective, prioritizing clients that engage faster. That means a sharper focus on ARPAC growth, building a stronger and more profitable base. And the strategy is showing up directly into our numbers. Our new cohorts are starting with an initial ARPAC approximately BRL 10 higher than older cohorts. A key driver of ARPAC growth is credit penetration. As clients deepen their relationship with Inter and adopt credit products, their monetization increases significantly. Private payroll is a great example of this, and I'll explore this subject later. We also see evidence of engagement in the behavior of our clients overall. We averaged 22 million daily log-ins this quarter, up from 18 million a year ago. These clients are not only active, they're truly engaged and bringing primary relationships to Inter. And that engagement is translating directly into monetization while we keep our cost to serve flat. ARPAC goes up, CPS stays stable. The gap is what drives margin expansion, and the results speak for themselves. Margin per active client just reached its best level ever. This is the financial outcome of everything I just described, better clients, deeper relationships, higher credit penetration, it compounds quarter after quarter. This engagement we talked about also translates into transaction volume. Our cards and PIX TPV reached 1.8 trillion on a run rate basis. TPV is growing faster than our client base, an evidence of deeper relationships. True market share numbers tell the story best. First, we now hold approximately 9% of all fixed transactions in Brazil, and we are still expanding, growing 31 basis points over the past year. Second, for the first time ever, we crossed 2% market share in credit card TPV, as João mentioned earlier. Our new cohorts are starting an engagement at an engagement level that's higher than ever before. The flywheel is not just working, it's accelerating. Now I want to deep dive into 2 of our hero credit products, credit cards and private payroll loans. Santi will cover the full portfolio performance later, but I want to give you the strategic view on both. Starting with credit cards and our reshaping strategy, the TPV is simple, shift our portfolio towards more interest-earning balances. more installment usage, better monetization, bringing higher revenues. Our interest-earning portfolio keeps growing as a share of the total and now stands for 26% of the credit card book. The interest income of this product grew 64% year-over-year. And here is the key message. Interest income is growing faster than provisions. A larger interest-earning portfolio does come with more provisioning that's expected, and we're comfortable with it. But the income is outpacing the costs and the margins are expanding. We'll maintain our discipline in this strategy, growing the right balances with the right clients at the right time. Now let me turn to private payroll loans. We maintain our confidence in the product and its fit to our platform. It generates strong revenue expansion. It scales through our own digital distribution, and it is efficient to originate and serve. That's exactly the kind of product we want more of. In the second quarter, we surpassed 600,000 clients with private payroll loans. These clients have an ARPAC that's 3.7x that of our average, making it a true principality and monetization accelerator. There are operational improvements in progress, and we're managing through them with discipline. But we believe the product will only get better as DataPrev introduces new features such as automatic employee relinkage. We're growing, and we believe we're doing it at the right pace, building a proprietary portfolio that will be healthy and profitable for the long term and that will strengthen principality. The next step is already coming. Insurance launches in August. We estimate that insurance adoption can reduce provisions and increase fee revenues, a meaningful improvement in the product's overall performance. I will now talk about business accounts, a significant opportunity we have in front of us. We reached 2.9 million business clients, growing 24% year-over-year. Our market penetration is already at 12% in these types of accounts. Business clients generate 2.8x the ARPAC of our average client. We have built a complete suite of products for businesses, including payments, investments, acquiring cards and credit. The electronic trade invoice as a collateral or as called in Portuguese producto bancario to be launched by the Central Bank of Brazil is currently in testing. And once live, it will deepen our product suite, drive higher ARPAC and compound directly into NII growth. The more products a business client uses the more they consolidate their financial transactions at Inter. This is the same flywheel we see on the retail side now on the business account side. Now let me shift to another important dimension of our business, fee income. Credit is a powerful engine of our results. But what makes Inter truly unique is that we have 7 verticals that reinforce each other and together, generate a fee income base that is diversified and resilient. We have 2 engines that will drive future growth. On the commission side, we're launching subscription plans, giving clients the opportunity to upgrade to our One, Prime and Win segments and unlock more benefits. We are also expanding our investment advisory services for higher income clients. And we just launched Inter Ads, a new ads monetization layer in our app with significant potential ahead. On the credit-related fees, Inter Change is accelerating as our credit card TPV crosses the 2% market share for the first time and keeps outpacing debit. Inter Pag will resume growth as we mature the company and leverage the products amongst our business clients. And private payroll loans, credit insurance will add a meaningful new fee revenue stream to a product that is already profitable on the credit side. These are not just plans. They are initiatives already in motion. And together, they are what will bring fee income growth back to the pace we want to see. The reason we're confident that fee income will accelerate is not just because of the initiatives I just described. It is the distribution power behind them. As seen on this slide, multiple products across our 7 verticals have already surpassed 1 million -- the mark of 1 million active clients. But what is even more remarkable is the speed. Each new product is reaching that milestone faster than the one before it. The curves are getting steeper. Adoption is accelerating. This is what distribution at scale looks like. When you have 26 million active clients who log in 22 million times a day, launch a new product is not starting from 0. It is dropping a new solution into one of the most engaged financial ecosystems in Brazil. Clients are ready to adopt, and they are doing it faster every time. That is the compounding power of our flywheel. And that's what gives us the confidence that the fee income initiatives will gain traction quickly. With that, I'll hand it over to Santi for the financial performance. Santi, please go ahead. Santiago Stel: Thank you, Sandy. Good morning, everyone. I'll jump directly into the financial performance of the quarter. The Rule of 50 that we introduced in New York back in May is showing up directly here with revenue growing 32% year-on-year. Joao refreshed the framework, and this slide is exactly what it looks like in practice. What I find even more compelling than the level itself is the consistency behind it. For 8 consecutive quarters, NII has been growing around 40% year-on-year, 8 quarters in a row. That is the result of intentional execution, a portfolio that keeps growing, and NIM that keeps expanding, private payroll gaining traction exactly as Sandy described and a credit book that his team has been deliberately reshaping towards higher-yielding balances. Fee income had a strong quarter, growing alongside our client base. And with the initiatives Sandy walked through, we have a clear and intentional path to accelerate this revenue going forward. The result is a revenue base that is diversified, resilient and structurally built to keep compounding with strong momentum across every driver. And the consistency we just saw in NII has a direct driver, NIM. This quarter, our NIM reached 10.1%, the highest level we have ever recorded and the first time that we have crossed the double-digit mark. This is a milestone worth pausing on. Three factors drove the expansion this quarter. The first is structural and ongoing. The continued deployment of capital into high ROE products quarter after quarter. This is the compounding effect of disciplined capital allocation. The second is strategic. Our hyper-personalization pricing approach, which we outlined on the Owners Day is working. On the asset side, we repriced buy now pay later, PIX Credit and private payroll. On the liability side, we reduced interest rates on LCIs. This is not a onetime adjustment. It is an active ongoing strategy that will continue to support our NIM expansion going forward. The third is one tailwind from our inflation hedge, which as we flagged in the first quarter of 2026, we expect to flow through in this quarter. That is exactly what happened. The underlying trend supported this impact. Now I want to zoom out because there is a point that often gets overlooked. Since the 60-30-30 announcement back in January of 2023, our NIM 2.0 has expanded 30% from 7.8% to 10.1%. Our capital structure also changed significantly over the same time period with our leverage going from 6.7x to 9.7x today. When you normalize for that and hold the capital structure constant through time, the true NIM expansion is closer to 50%. That is a number that reflects the real depth of the improvement in our core banking economics. Taken together, these results reflect exactly what disciplined capital allocation and consistent execution of our producto bancario or our banking business looks like in practice. And that capital deployment we just described that is showing up directly in the loan growth. Our expanded loan portfolio reached BRL 55.4 billion, up 5% quarter-on-quarter and 29% year-on-year. You will notice that we introduced a new concept this quarter, the expanded loan portfolio, which now includes our private securities book, FIC, debentures and similar instruments. We are bringing this into our core credit metrics because treasury optimization is one of the ROE drivers we committed to at the Owners Day as part of the Rule of 50. We ask ourselves the question, is deploying capital here a truly franchise accretive business? We think that the answer is yes. These are client deposits being deployed into market-originated credits, generating strong returns that we then reinvest back into our business. We should expect this business to continue growing. Within the portfolio, each product line is pulling its own weight. Private payroll keeps gaining share and is progressively absorbing the natural runoff of the FGTS book. On credit cards, the reshaping strategy described continues to deliver strong performance with interest income from this product growing 64% year-on-year. Real estate remains a standout. Mortgages and home equity have grown at an average 40% since the second quarter of the last year, not a single strong quarter, but sustained compounding growth in one of the most important and most secured products in our portfolio. And one number ties all this together, loan balance per active client, which reached our highest level ever. Credit penetration, one of the key pillars of our Rule of 50 execution is not a future ambition. It's a reality that continues to move forward. This diversification across products is what allows us to grow at pace without concentrating risk, neither credit nor regulatory with revenue, NIM and loan growth expansion, all moving in the same direction by design. Loan growth, NIM expansion, revenue consistency, all of that has a credit strategy behind it, and this slide is where we show it. Before going into the numbers, let me frame how we think about asset quality strategically. Our goal is not to minimize NPL in isolation, is to maximize risk-adjusted NIM, efficiency and ultimately, returns. That means that we deliberately take more credit risk in certain portfolios, and those same portfolios are becoming an increasing driver of our profitability quarter after quarter. This is an intentional trade-off and one we are making with full conviction. We'll also notice this page is busier than usual as we introduced the expanded loan portfolio concept in the prior page, we apply the same lens here, showing NPL and Stage 3 formation and they both expanded and prior methodologies side by side. This allows investors to see both views clearly during the transition. Now within the portfolio, there are 3 distinctive stories. The first is our secured portfolio, excluding private payroll, which is roughly about half of our loan book. Asset quality here is stable and performing well with strong ROE dynamics. This gives us confidence to keep deploying capital and growing this product accordingly. The second is on credit cards. NPLs performance here reflects a deliberate strategic choice, a growing interest-earning portfolio in an unsecured segment that still faces a challenging macro environment. But here, the key point is that revenues are growing significantly faster than provisions in this book. That is the metric that matters for us and is moving in the right direction. With our disciplined niche approach and interest rates on a downward trend, we expect NPL performance to improve in the coming quarters. The third component is private payroll. I will cover that in the next page. As the NPL bridge shows, this product is the largest contributor of the NPL movement, responsible for over half of the yearly increase. We're not going to look past this number. We'll address it here. Delinquency has been running higher for longer than we planned, not because the product deteriorated, but because operationally, maturity is taking more time than expected. We're actively working on it. Our own relinkage solution is underway, insurance launch is in August and further data privy improvements are expected this month, as Sandy walked through. But here is what keeps our conviction intact. Even at current delinquency levels, the ROE on private payroll loans remains at around 30% -- so the economics are compelling for our clients and for us, and it fits very well in the Inter by design approach. And when you look at private payroll and credit cards together, these 2 portfolios have been delivering strong returns, ROE holding strong even before the operational maturity of private payrolls and NIM expanding very strongly. This is intentional execution and our confidence continues to grow stronger as the results come in. Now let me turn to funding, one of our most important competitive advantages. Our total funding reached BRL 77.2 billion this quarter, growing 24% year-on-year. This growth reflects the trust our clients place at us as our primary financial platform. The composition of that funding tells an equally important story. On the transactional side, deposits grew 17% year-on-year, and we generated nearly BRL 1 billion, nearly free funding just this quarter. This is a direct result of clients choosing us for their daily financial lives. On the higher-yielding deposits, time deposits grew 27% and securities issued grew 42%, reflecting the continued diversification of our funding base in an environment of high interest rates. We are attracting funding across the full spectrum and doing it efficiently. Lastly and most importantly, deposits per active clients reached BRL 2,000.80, growing 6% year-on-year. And this is where our funding franchise truly shines. Our cost of funding stood at 66% of CDI this quarter, one of the lowest and most stable in the industry. And I want to emphasize the word stable here. Market rates have moved a lot over the past few years, and our cost of funding barely moved. This is by design. It comes from the depth of our transactional deposit base. These our clients as their primary bank, as Sandy mentioned. And this advantage compounds over time. A lower, more stable cost funding means we can price loans more competitively, protect our NIM through the cycle and generate better risk-adjusted return than peers. It's one of the most durable competitive advantages that we have built and honestly, one that is the hardest to replicate. Now let me talk about expenses. There are 3 factors playing out here. The first is personnel. Headcount is stable at around 4,000 employees, which is the same number that we had 4 years ago when we announced the 60-30-30 plan. Costs grew 18% and the main driver here is the profit sharing, which we can think about it is actually good news. It means the team is being rewarded for stronger profitability that we are delivering. Second, D&A came in 44% higher year-on-year, the amortization of prior investments in our Super App. This line will keep growing as we launch new projects. But importantly, the ratio of intangibles to total assets continue to decrease. And third, administrative expenses grew just 15%, broadly in line with the natural growth in clients and transactional volumes. We're handling significantly more scale without a proportional increase in costs. That is a digital model doing exactly what it's supposed to do. And this is what makes all of that sustainable, revenue growing at 32% year-on-year, expenses growing at 19%. That gap of 13 percentage points is operational leverage flowing directly to the bottom line. When we look at the client chart index, both since 2023 when we launched the 60-30-30 plan, the picture is clear. Revenue has compounded, expenses have grown in a controlled manner and the gap between the 2 keeps widening. That is the digital banking model at scale, no branches, no legacy systems, no linear cost growth as we add clients and products. The efficiency ratio reached 42.1% this quarter, a new record low. That reflects years of consistent cost discipline, combined with the scaling dynamics of our model. There's more room to run on efficiency, and we're committed to continue delivering returns. Revenue, NIM, loan growth, asset quality and now operational leverage, all moving in the same direction. That is the financial picture of Inter this quarter. And everything we walk through comes together right in this page. Net income reached BRL 421 million this quarter, a new record. And ROE, also a record, reached 16.3%. But honestly, the quarterly number alone does not tell the full story. If we look at the trajectory of this chart, we have 13 consecutive quarters of net income growth. Quarter after quarter, year after year, net income and ROE keep moving in the same direction, up. That is not a quarter story. It's a compounding track record. ROA also hit a record this quarter, now in line with some of the most established traditional banks in Brazil. If you think about it, a platform that is growing at 30% plus, delivering returns comparable to institutions that have been around for decades. Everything we have built, the disciplined capital allocation, the risk management and the cost control shows up here. Growth and profitability moving together, that is the Rule of 50 in action. And finally, I'd like to close with capital. For the first time, our business is generating more capital than it consumes to fund its own loan growth. Inter is now self-sustained from a capital perspective. We grow and we fund the growth ourselves through growing profitability. Additionally, at Inter&Co level, we hold EUR 2.3 billion in excess capital, capital that sits ready to be deployed in the bank whenever we need. When you factor that in, the Basel ratio at the holding level reached 19.3%, a position of real strength. With that, I'll turn it over to Rafa to open the Q&A questions. Thank you all. Rafaela Vitória: Now we open the Q&A session. Our first question is from Eduardo Rosman. Eduardo Rosman: Congrats on the numbers. I would like to follow up on the NIM and asset quality. I think Santiago explained well the 3 main drivers, and I think we're going to continue seeing improvement in the next couple of quarters. But this quarter, specifically, NIM was a little bit too strong, right? So I wanted to understand the magnitude of these 3 main drivers in this quarter. Trying to understand if we should assume that NIMs would still improve in the third quarter or if maybe in the third quarter, it should adjust a little bit and then continue moving up in the following quarters, right? And then also on asset quality, right? I think early NPLs moved up again. I assume that, that matters more for provisions than 90 days NPLs. So, what are your expectations for the next couple of quarters? I know you are taking more -- a little bit more risks, and that's part of the plan. But just trying to understand here probably the trends for risk-adjusted NIM, how we should think about throughout the next couple of quarters? That's it. Santiago Stel: So starting with NIM, let me back a quarter. So, what we said back then when we explained the first quarter performance is that we had an inflation dynamic playing out in the first quarter of around BRL 30 million or lower inflation hitting in that quarter, but that would have an effect going forward into the second, which is what we're seeing now with 10.1%. So the prior NIM was a bit lower than what it should have been on a normalized basis and the current one has a bit of that embedded in there as a consequence of inflation. So I'll walk you through that. We have approximately BRL 11 billion of inflation-linked exposure, which we hedged around BRL 6 billion of which -- of it, and that gets us a net long exposure of around BRL 5 billion, right? And with that, we have the timing mismatch where the BRL 30 million of lower revenues in the prior quarter are hitting positively in this quarter. With that factored in, you should adjust around 15 basis points in this quarter, lower and 15 basis points in the prior quarter higher. Now that will be a more smooth performance, and that will reflect a bit more what really happened if the inflation would have been constant through time, and we wouldn't have hedged -- but what I would like to highlight is that when you look at the overall long-term curve of our NIM and our risk-adjusted NIM, it has performed quite stable and has become quite predictable despite inflation going from very low numbers to very high numbers throughout the year and also with the movement in CDI. So, we're able to manage that volatility. We'd like to have the NIM more predictable and stable, but we do see some dynamic throughout the year playing out, particularly in this first half. And on an annual basis, we said this the last quarter, we expect a 40 basis points increase in the annual NIM from the prior year into this one. And we continue to think that will be the case considering the loan mix that we're having -- we're originating at. And then on asset quality, we are quite happy with the performance. It is in line with what we expected. Remember that we mentioned 3 drivers last quarter, 2 were internal, the additional growth that we're taking in private payroll and the credit card mix of reshaping that Sandy commented and then the external one, which has to do with higher interest rates and seasonality. So, on those 2 that the internal private payroll, we continue very excited with it. Sandy can touch upon in more detail, but this is a product that fits, as we said, perfectly well in the inter design. And credit card has been our stellar P&L product internally. We are monetizing it a lot more, as you saw, 64% interest income increase in the last 12 months, that comes together with more delinquency, right? But we're not solving for lower delinquency. We're solving, as we mentioned, for higher returns. So the evolution or the shape of the delinquency curves going forward will depend a bit on the mix. But the guidance that we gave last time was cost of risk at around 6%. We continue to think that's the case. This quarter, we were a bit better than that. And the outlook for the rest of the year remains unchanged, both on the NIM side, as I mentioned in the first question as well as with the asset quality. Rafaela Vitória: Our next question is from Henrique Navarro. Our next question is from Mario Pierry. Mario Pierry: Congratulations on the results. Let me ask you a more general question about asset quality trends in Brazil, right? You continue to grow your loan book at a very rapid pace, close to 30%. You are seeing higher cost of risk, but you're compensating that with higher revenues. However, there's a perception that families in Brazil are highly indebted, debt service ratios are very high. We have an uncertain environment second half of the year with the elections. And then there's a perception that next year, the fiscal spending in Brazil is going to have to decline because the government has been very populous this year. So -- if you can discuss how are you seeing the operating environment in Brazil and key concerns that you have about asset quality going forward? João Vitor Nazareth Teixeira de Souza: Mario, Joao Vitor speaking here. Thanks for the question, and I'm going to take this one. Look, we IPO-ed the company back in 2018. So it's been, what, 8 years or so that the analysts, the investors, they have been following Inter. And we have always been very, very careful on approaching credit risk, credit underwriting and so on. That said, we have a very, I'd say, good tailwind that helped Inter, and it's pretty much a simple thing. We are still a small loan portfolio with a lot of clients, a very good cost of funding and a very good distribution channel. That said, of course, that as Sandy just mentioned, we will adjust accordingly. So we might expand unsecured portfolio in a good credit cycle. We might reduce it in a bad credit cycle. But the opportunity ahead of us, the time ahead of us is just big. When we see on the page that we show the growing opportunity, the BRL 2.7 trillion portfolio, the BRL 1.3 portfolio on the left side and the BRL 2.6 trillion portfolio addressable market on the right side, we have, as I mentioned, the tools to attack all of these 3 addressable markets. So still with inflation pressure on the with elections and everything, we can still grow at a 30%-ish. I'd say, maybe a few years to come. We can do that doing the right risk reward approach. This is very important. We are in a business of taking risks. We need to manage that. We need to use all the tools that we have, and we have been doing that carefully. But again, because we are still a small loan portfolio platform, we can keep growing on that pace ahead without putting the balance sheet of risk. So that's the overall view from my side, from my end on how Inter will perform on this current credit cycle in Brazil. And when you think on the mid- to long term, we have all the tools on the platform to keep gaining momentum to produce enough. So again, the best cost of funding, the right distribution channel, a very efficient business model by being digital. So we see a very great opportunity for Inter to keep compounding our loan portfolio, both on secured and unsecured portfolios ahead, okay? That's the view for the business in terms of risk reward and credit cycles. Mario Pierry: Let me ask then a second question really quick. You guys didn't mention anything about the debt renegotiation program in Brazil. So, I just wanted to know like did they have any impact on your asset quality ratios? Were you active renegotiating loans? Alexandre De Oliveira: So Mario, the BACEN was good, much better than what we saw in the first. And what we saw was, first, renegotiations of BRL 100 million, so a good volume driven by BACEN, an overall impact in the P&L of around BRL 40 million, although we believe that half of this we would be -- we would have realized in other ways. So using collection company, also using our internal team, which is very strong and doing a lot of actions to control delinquency. So we can say that BACEN brought 12 million of EBT impact. When we look at delinquency metrics, we had minus 10 bps in NPLs. We had minus 15 bps in cost of risk and about 15 bps increase in Stage 3 formation. And why Stage 3 formation? Given 2 factors. The first one is as we renegotiate, we're also renegotiating credits that are past due beyond 360 days or they're written off. So we bring them back into the balance sheet and place them into Stage 3. And sometimes we renegotiate in a credits that are, say, between 90 and 360. When we do that, we move them to Stage 3 and increase that proportion. The good news is that the Stage 3 is highly recoverable given that it has the FGO backing it. João will give in some additional comments. João Vitor Nazareth Teixeira de Souza: So Mario, just going back to the first question about addressable market and how Inter will grow ahead. One thing that's important to mention and to give you some color on, I mean, how big the opportunity is. So again, connecting to the Page 8, where we have the BRL 1.3 trillion plus BRL 2.7 trillion, plus BRL 2.6 trillion addressable market. We are today pretty much only on the central column, and we are widening, as I said in my first speech. We're widening to the left and to the right side of the addressable market. And one thing to factor, we have the public information on the Central Bank on the credit exposure that our clients, they have on the system. And it's interesting that clients that have a primary relationship with us, PIX and salary and everything, and we have less than 5% of the credit exposure of those clients. So within our own clients, the clients that are already using our platform that are already investing with us, doing things with us, using our products, we can penetrate a lot. So that's what I -- how I try to put some numbers and some color on this big opportunity, this big addressable market and the fact that we're still, from a credit perspective, a small platform. We're a big platform from a transactional perspective. But from a credit perspective, we're still a small platform in Brazil. So I see that as a very good news for us. Rafaela Vitória: Our next question is from Tito Labarta. Daer Labarta: A couple of questions. Actually, just a couple of follow-ups, both on NII and provisioning. On the NII, and Santi, you kind of explained a little bit, right, the inflation impact. But just looking at the financials, right, the big jump came in the income from securities, derivatives and FX, which is almost BRL 200 million quarter-over-quarter. If you look at just interest income, it was less than BRL 100 million increase. So just going forward, can you still do the 10 to 20 bps NIM expansion per quarter? Just should we consider this sort of the higher income from securities as the right level? I know there's adjustments from quarter-to-quarter, but just think about that incremental NIM expansion, given that this quarter was -- NIM was higher probably than expected. How do you think about that quarterly NIM expansion just given this movement in the income from securities? And then just following up also on provisions. Your coverage ratio did come down. I know part of the NPL increase was more mix. But just given the current sort of macro environment, how are you thinking about that coverage ratio? Why is it coming down? Should you be increasing it in the current environment given some of the macro concerns? Just want to think about sort of the provision levels and coverage given the credit cycle that the market is somewhat concerned about. Santiago Stel: Tito, I'll take that question. Thank you. Starting with the first one on NII, we do provide in the earnings -- in the Investor Relations detailed Excel where we open up the interest income. That's tab #6 called NII. And there, what you can see is that the income from securities has 2 things inside it. One is the proper income from securities, from the securities themselves as well as the income from the derivatives. And the income from the derivatives that come from the portfolio needs to be added to the interest income from the loan portfolio. We do that in that tab, and we reconcile the implied interest rate from the interest income from each of the products with the associated loan portfolio so that you can see the interest income of each of the portfolios after the hedge and before the hedge, both. So from that delta of this quarter of BRL 186 million in income from securities, approximately BRL 130 million of those were from the portfolios themselves. So, you need to add that back to interest income. Again, that's in the Excel that we provide in the Investor Relations website, tab #6 called NII. Then jumping to the second one on provisions, what you do see in the coverage ratio is an increase that we had throughout the last couple of quarters in anticipation of the seasoning of the private payroll product. It was -- we have been running for a long time at around 130%. When we were growing the early quarters of the private payroll product, we took it up to 146, but the delinquency being hit in as the product was very early on. And then as the product matures, then that consumption happens. And we're now around 134% coverage ratio. That answers the past. Going to the future, it will ultimately depend on the loan mix as the growth of this product and the future reshaping takes place. There are some uncertainties there on the pace and speed at which those products will evolve and also the pace at which real estate, which has the opposite effect also will evolve. You saw last year, particularly in the second half, we had an amazing growth in real estate that pulls the number up because the coverage ratio of real estate, which has a high guarantee is lower than the average of the total. There are a few moving pieces. But to answer and give you a sense, we think that the number of around 130% to 135%, at least for the coming quarters is something safe to assume. Rafaela Vitória: Our next question is from Neha Agarwala. Neha Agarwala: I have 2 questions, but can we first talk about the write-off policy change that you made this quarter? What drove that decision? What is the new write-off policy? I understand it's only on the credit card segment or were any other segments impacted? And I believe the benefit on the 90-day NPL ratio is 30 basis points, as you called out in your earnings release. But if you can just give more color on that. Santiago Stel: Neha, I'll take that one as well. So yes, we did migrate a write-off for credit cards specifically from 360 days to 330 days in line with Resolution 4966 Best Practices and our ongoing commitment to aligning our accounting methodology with the highest industry standards. That's exactly the kind of proactive technical rigorosity that we want to have. And the rationale behind it is that our data shows that beyond 330 days, the recoverability of credit cards, in fact, is very low and trends to 0. Therefore, it's more accurate to move it to 330. In terms of financial impact, there is no effect in the cost of risk as this was fully provisioned by the day 330, 100% provision by them. And yes, on the NPLs, as the product lives shorter in our balance sheet, it has an impact of around 30 basis points. Neha Agarwala: On the overall NPL ratio, right? Santiago Stel: Correct. We report overall. Neha Agarwala: The other question is on the private payroll segment. You mentioned that you recently started doing the linkages on your own because the data privy linkages is taking longer than anticipated. So how should we think about the delinquencies with that new connection being made? What are the early results that you're seeing? And I believe it started in last 1 or 2 months. So why didn't we start a bit earlier on that, which would have made delinquencies better in this particular product? If you can shed some light on that? Alexandre De Oliveira: This is Sandy speaking. I'll take the private payroll loans on one. And I think it's useful to talk about 3 dimensions here, growth, credit quality and profitability. As you asked about credit quality, I will start there. So the first point is, we are operating on the higher band of our expectations in terms of cost of risk for the product. But despite that, the profitability is within what we expect. We're solving for like a marginal ROE of around 30% in the product, and we're moving all the levers internally to converge to this number as we go. So, since the beginning, maybe we were running at a marginal ROE a little bit higher than that. It came down with the delinquency, and we're moving it, but it's important for everybody to understand that we manage the process to deliver this marginal ROE of 30% in the product. We have very good actions in process. You mentioned the relinkage. So, the relinkage is now being done with discipline, and it's helping the NPLs. This is an action that's already in place, but we do have more coming up. So to give you a few examples, we have the credit insurance, which is about to be launched in the next few days. We're doing -- and we're also doing the -- implementing some features to do easier renegotiations with clients and to do that in scale. This is specifically good for clients that have a new job but this job is with a lower salary. So you need to do renegotiations in this case. And we're also doing credit policy tune-ups that help this cost of risk. So the idea is to keep bringing and pushing this credit risk down to levels that are closer to low teens. That's kind of the view we have and what we're working towards in terms of credit quality. Coming back now to growth. So we're very confident in the market size. We've been vocal about believing in between 200 and 300 in the relatively short-term. We believe it will convert to that. We're confident to keep on growing as the market grows. Today, our market share in terms of portfolio is at about 2.5%. And there are external factors that make the underwriting volumes adjust, for example, the interest rate caps, although we do see some positiveness in the interest rate caps. So, we had super high interest rates coming from some players, and we don't believe that's good for the long-term health of the product in Brazil. So, I think this is a good summary on the product. We're positive. We're moving the underwriting leverage to keep growing the portfolio, and we believe it's very well connected with what Inter needs in the future. Neha Agarwala: Just to clarify, any impact on the rate caps in your origination? I believe you're originating with the higher rate cap and without the FGTS guarantee. Right? Alexandre De Oliveira: Neha, in the first -- there were 2 movements. In the first movement, we had a very, very small change because it moved from being free to having 4.99%, if I'm not wrong, or 4.9% cap. So we had a reduction of less than 5%, given that a very small percentage of our loans went beyond the 5%. In the second cap, we had a little bit stronger movement in the volume, but now it's under adjustment. So as I mentioned, it's -- we're going to keep on adjusting the process to underwrite more. And as we put the credit insurance in the next few days, it's going to help on profitability and could allow us to increase underwriting again. Rafaela Vitória: Thank you all for the questions. In order to be conscious of the time, we're going to move to Joao's closing remarks. Joao, please go ahead. João Vitor Nazareth Teixeira de Souza: Thank you very much, Rafa. Thanks for the audience. Thanks for everyone that just joined us. I'd like to share with you how happy and confident I am with Inter, happy because, as you can see, we delivered our best earnings ever, as we can see 13 consecutive quarters growing our net income. but also confident that we still have a big addressable market to go on, both on secured, unsecured, on fee income across the board. We still can bring a lot of clients to deep our relations with them. So this is very important. And second, I'd like to highlight that you all know that Inter has been mastering the UX, the UI, the technology, the platform since we launched the first ever digital bank in Brazil back in 2016. But back then, we were still consuming capital. We're not deepening our credit underwrite portfolio with the clients. But fast forward 2026, we're able to manage that to improve the credit underwrite, to grow our loan portfolio to turn from capital consumption to capital origination creation at our balance sheet. This is very important. We have been doing the brilliant basics of a good banking operation. So when you combine the good banking operation with the best-in-class UX, UI and digital platform, it does take us to a very, I'd say, a very good future ahead of us. Thank you all. And mostly -- I'd like to thank our employees for helping us on this journey, and I'm sure that the best is still yet to come. Thank you very much, and have all a great day. Before you buy stock in Inter & Co, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Inter & Co wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Inter & Co (INTR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Inter & Co stock has delivered a 71.4% gain over the past three years, yet the shares are still screening as undervalued on the broader checks. That mix of strong longer term returns and a discounted valuation score is what many investors are now trying to weigh up. Over three years, Inter & Co has returned 71.4%. This suggests the market has already repriced the story once and may be reassessing what a reasonable entry point looks like now. The key support for the current valuation can come from how consistently the bank converts growth into sustainable earnings. The main risk is that profitability or asset quality falls short of what the current price assumes. Inter & Co passes most of Simply Wall St's valuation checks, with a high score of 5 out of 6, which points to a stock that still leans cheap on several common valuation measures. The stock's next move may depend on whether that apparent discount is genuine value or simply compensation for risks that the recent share price recovery has not yet reflected. Find out why Inter & Co's -25.0% return over the last year is lagging behind its peers. The P/E ratio suits Inter & Co because earnings are a central yardstick for banks. Inter & Co is trading on a P/E of 8.5x, compared with an industry average of about 12.1x for banks and a peer group average of roughly 14.1x. That places the stock at a clear discount to both its sector and closer listed competitors on this metric. The modelled fair P/E multiple for Inter & Co is 16.6x, which is higher than both the industry and peer averages. This fair ratio reflects what investors might expect to pay given the company’s forecast return on equity, book value profile and risk inputs. Against that benchmark, the current 8.5x P/E sits well below the level implied by the model, which indicates that the market is pricing Inter & Co on a lower earnings multiple than those fundamentals suggest. On the P/E multiple, Inter & Co stock currently screens as undervalued compared with both sector norms and the model’s fair ratio. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Inter & Co pick up where this valuation puzzle leaves off by spelling out which paths for Inter & Co's growth, margins and earnings would need to play out for the stock to be worth materially more or less than it is today on the market. Each narrative links its number to a clear view on how growth, profitability and risk might evolve, which you can check against Inter & Co's actual results over time on the Community page. Community views on Inter & Co sit far apart, with one side focusing on digital growth and the other on regulatory and credit risk. Bull case: 40% undervalued Read the full Bull Case to see why Inter & Co could be undervalued Bear case: 6% overvalued Read the full Bear Case to see why Inter & Co could be overvalued Do you think there's more to the story for Inter & Co? Head over to our Community to see what others are saying! Inter & Co screens as undervalued on its current P/E compared with both sector averages and the fair multiple implied by its fundamentals. The stronger overall valuation checks support the idea that the discount is real, although not extreme. This leaves the stock looking inexpensive rather than mispriced. From here, the key question is whether Inter & Co can keep translating its digital growth story into consistent earnings and stable asset quality. That is what will decide whether today’s discount proves to be an opportunity or a fair reflection of the risks highlighted in the bear case. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include INTR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Inter & Co Inc (NASDAQ:INTR) achieved record net income of R$421 million and a record ROE of 16.3%, with 13 consecutive quarters of net income growth. The company reached a milestone NIM of 10.1%, the highest ever, driven by strategic repricing and capital deployment into high-ROE products. Inter & Co Inc (NASDAQ:INTR) surpassed R$100 billion in total assets and achieved capital neutrality, meaning it now generates more capital than it consumes for growth. The client base grew to 45.3 million, with a focus on higher-quality cohorts that start with approximately R$10 higher RPAC, driving monetization. Credit card market share surpassed 2% for the first time, with interest income growing 64% year-over-year, outpacing provisions. The efficiency ratio improved to a record low of 42.1%, reflecting strong operational leverage with revenue growing 32% versus expenses at 19%. Private payroll loans reached 600,000 clients, with an ARPAC 3.7 times the average, and the product maintains a compelling ~30% ROE even with higher delinquency. The funding franchise remains a key advantage, with cost of funding stable at 66% of CDI, supported by a deep transactional deposit base. New initiatives like insurance launch, subscription plans, and Inter Ads are expected to accelerate fee income growth. The company is self-sustaining from a capital perspective, with a holding-level Basel ratio of 19.3% and R$2.3 billion in excess capital. Private payroll loan delinquency has been running higher for longer than planned, contributing to over half of the yearly NPL increase. The company's coverage ratio declined to 134% from 146%, reflecting higher provisioning for the maturing private payroll book. The write-off policy change for credit cards (from 360 to 330 days) reduced the NPL ratio by 30 basis points, but indicates higher credit risk in that segment. The NIM expansion was partly due to a one-time inflation hedge benefit, which may not be sustainable in the coming quarters. Fee income growth has been slower than desired, though management expects acceleration from new initiatives. The macro environment in Brazil remains challenging, with high household indebtedness and election-related uncertainty, which could pressure asset quality. The Desenrola debt renegotiation program had a R$12 million negative impact on EBT, and increased stage 3 formation. Interest rate caps on private payroll loans have reduced origination volumes, requiring adjustments to underwriting. The company is taking on more credit risk in unsecured portfolios (credit cards, private payroll) to drive returns, which could lead to higher NPLs if the cycle turns. Administrative expenses grew 15% and D&A rose 44% year-over-year, reflecting continued investment in the super app. Warning! GuruFocus has detected 6 Warning Signs with XERS. Is INTR fairly valued? Test your thesis with our free DCF calculator. Q: What drove the NIM expansion to a record 10.1% this quarter, and should we expect continued improvement in the third quarter or a potential adjustment? Additionally, what are the expectations for asset quality trends given the rise in early NPLs?A: Santiago Stel, CFO, explained that the NIM expansion was driven by three factors: continued deployment of capital into high ROE products, the hyper-personalization pricing strategy (repricing BNPL, fixed credit, and private payroll on the asset side, and reducing rates on LCIs on the liability side), and a one-time tailwind from the inflation hedge. He noted that the prior quarter's NIM was lower than normalized due to inflation dynamics, and this quarter included a positive adjustment of around 15 basis points. On an annual basis, the company expects a 40 basis points increase in NIM. Regarding asset quality, Stel stated that the cost of risk guidance remains at around 6%, with this quarter performing better than that. The company is deliberately taking more credit risk in certain portfolios to maximize risk-adjusted returns, and revenues are growing faster than provisions. Q: How is Inter navigating the broader Brazilian credit cycle, given concerns about high household indebtedness, the uncertain election environment, and potential fiscal tightening next year?A: Joao Guitominin, Global CEO, responded that Inter has been careful with credit underwriting since its IPO in 2018. He highlighted that the company has a small loan portfolio relative to its large client base, giving it significant room to grow. He emphasized that Inter can continue growing its loan book at 30% per year by taking a disciplined risk-reward approach, leveraging its low cost of funding, strong distribution channel, and efficient digital model. He also noted that clients with a primary relationship with Inter currently have less than 5% of their total credit exposure with the company, indicating substantial penetration opportunity. Q: What was the impact of Brazil's debt renegotiation program (Desenrola) on Inter's asset quality and financial results?A: Alexandre Ricio, Brazil CEO, stated that Desenrola was better than the first iteration, with renegotiations of R$100 million. The overall P&L impact was around R$40 million, but half of that would have been realized through other collection efforts, resulting in a net EBT impact of R$12 million. The program reduced NPLs by 10 basis points and cost of risk by 15 basis points, but increased stage three formation by 15 basis points. This increase was due to renegotiating credits that were past due beyond 360 days or written off, bringing them back onto the balance sheet as stage three, which are highly recoverable given FGO backing. Q: Can you elaborate on the jump in income from securities and derivatives, and how should we think about future NIM expansion? Also, why is the coverage ratio coming down, and should it be increased given macro concerns?A: Santiago Stel, CFO, clarified that the income from securities line includes both proper securities income and derivative income, which needs to be added back to interest income from loans. Of the R$186 million quarterly increase, approximately R$130 million came from the portfolios themselves. He directed investors to the detailed Excel on the IR website for reconciliation. Regarding the coverage ratio, Stel explained that it had been increased to 146% in anticipation of private payroll seasoning, but as the product matured and delinquency materialized, the ratio normalized to around 134%. He expects the coverage ratio to remain in the 130%-135% range for the coming quarters, noting that the mix of real estate growth (which has lower coverage due to guarantees) will influence the number. Q: What drove the change in the write-off policy for credit cards, and what is the new policy? Are there any other segments impacted?A: Santiago Stel, CFO, confirmed that the company migrated the write-off period for credit cards from 360 days to 330 days, in line with Resolution 4,966 best practices. The rationale is that data shows recoverability beyond 330 days trends to zero, making it more accurate. There is no effect on the cost of risk since the loans are 100% provisioned by day 330. However, the change reduces the overall NPL ratio by approximately 30 basis points as the product lives shorter on the balance sheet. Q: Regarding private payroll loans, why did the company start doing its own relinkage, and what are the early results? Why wasn't this started earlier?A: Alexandre Ricio, Brazil CEO, addressed the product's performance across growth, credit quality, and profitability. He stated that the cost of risk is operating on the higher band of expectations, but profitability remains within expectations, targeting a marginal ROE of around 30%. The company is managing levers to converge to this number. The relinkage process is now being done with discipline and is helping NPLs. Additional actions include launching credit insurance in August, implementing easier renegotiation features for clients with new jobs at lower salaries, and credit policy tune-ups. The goal is to push credit risk down to low 10s. Ricio also noted that interest rate caps have impacted underwriting volumes, but the company is adjusting its process and expects the credit insurance to help profitability and potentially allow increased underwriting. Q: How did the interest rate caps affect private payroll loan origination?A: Alexandre Ricio, Brazil CEO, explained that the first rate cap movement had a very small impact (less than 5% reduction in volume) as only a small percentage of loans exceeded the new cap. The second cap movement had a stronger impact on volume, but the company is now adjusting its underwriting process. The upcoming credit insurance launch is expected to help profitability and could allow the company to increase underwriting again. Q: What are the key milestones achieved this quarter that demonstrate the success of the "Rule of 50" plan?A: Joao Guitominin, Global CEO, highlighted three major milestones: First, the company surpassed R$100 billion in total assets for the first time. Second, NIM crossed the double-digit mark, reaching 10.1%. Third, the company surpassed capital neutrality, meaning the business now generates more capital than it consumes to fund its own growth. These milestones prove that the model of combining growth and profitability is delivering real results for shareholders. Q: Can you provide more color on the fee income growth strategy and the initiatives expected to accelerate it?A: Alexandre Ricio, Brazil CEO, outlined two main engines for For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Inter & Co. Inc. (INTR) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.17 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.77%. A quarter ago, it was expected that this company would post earnings of $0.17 per share when it actually produced earnings of $0.17, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Inter & Co. Inc., which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $521.81 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.95%. This compares to year-ago revenues of $353.55 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Inter & Co. Inc. shares have lost about 32.8% since the beginning of the year versus the S&P 500's gain of 13%. While Inter & Co. Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Inter & Co. Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.16 on $534.02 million in revenues for the coming quarter and $0.77 on $2.12 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Antalpha Platform Holding Company (ANTA), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.08 per share in its upcoming report, which represents a year-over-year change of -27.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Antalpha Platform Holding Company's revenues are expected to be $16.2 million, down 4.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inter & Co. Inc. (INTR) : Free Stock Analysis Report Antalpha Platform Holding Company (ANTA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Inter & Co. Inc.? Here are five stocks we like better. Record profitability: Second-quarter net revenue rose 32% year over year, net income reached a record BRL 421 million, and ROE improved to 16.3%. Inter also achieved its first quarter of capital neutrality and lifted its net interest margin to a record 10.1%. Growth in scale and engagement: The expanded loan portfolio grew 29% year over year to BRL 55.4 billion, while total clients reached 45.3 million. Payment volume, business accounts and higher-value products such as private payroll loans continued to expand. Credit risk remains a key focus: Inter is selectively increasing exposure to unsecured lending, but private payroll loans contributed more than half of the rise in nonperforming loans. Management said it is addressing delinquencies through underwriting adjustments, renegotiation tools and insurance, while maintaining a coverage ratio near 130%–135%. Inter & Co. Inc. (NASDAQ:INTR) reported record second-quarter 2026 profitability as revenue growth, higher net interest margins and operating leverage supported its “Rule of 50” framework, which combines revenue growth and return on equity. Total net revenue increased 32% year over year, while return on equity reached 16.3%, Global CEO João Vitor Menin said. Net income rose to a record BRL 421 million, extending the company’s streak to 13 consecutive quarters of net-income growth. The company also reported its first quarter of capital neutrality, meaning it generated more capital than it consumed to fund growth, according to management. → 3 Drone Stocks That Should Soar After the Summer Slump “Growth and profitability moving in the same direction at the same time,” Menin said, describing the company’s digital banking model and ecosystem strategy. Chief Financial Officer Santiago Stel said net interest income has grown at roughly 40% year over year for eight consecutive quarters. Net interest margin reached 10.1%, the highest level in the company’s history and the first time it exceeded 10%. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Stel attributed the margin expansion to continued capital deployment into higher-return products, personalized pricing changes across products including buy now, pay later, Pix Credit and private payroll loans, and lower interest rates on LCIs. He also cited a tailwind from the company’s inflation hedge. During the question-and-answer session, Stel said the reported quarterly NIM included approximately 15 basis points of benefit related to an inflation timing effect, while the prior quarter was affected by approximately 15 basis points in the other direction. The company continues to expect annual NIM to increase about 40 basis points from the prior year, he said. → Jersey Mike's Serves Fresh Gains After IPO Stumble Inter’s expanded loan portfolio reached BRL 55.4 billion, up 5% sequentially and 29% from a year earlier. The new expanded-portfolio measure includes private securities such as CDBs and debentures alongside lending products. Management said these investments represent client deposits deployed into market-originated credit and are part of its strategy to improve returns on equity. The company’s total assets surpassed BRL 100 billion for the first time. Funding totaled BRL 77.2 billion, up 24% year over year, while the cost of funding stood at 66% of CDI, which Stel described as one of the industry’s lowest and most stable levels. Brazil CEO Alexandre Riccio said Inter ended the quarter with 45.3 million clients and added 3.7 million active clients over the past 12 months. The company averaged 22 million daily logins during the quarter, compared with 18 million a year earlier. Riccio said Inter has become more selective in acquiring customers, focusing on clients that engage more quickly and generate higher average revenue per active client, or ARPA. New customer cohorts begin with initial ARPA roughly BRL 10 higher than older cohorts, he said. Cards and Pix total payment volume reached an annualized BRL 1.8 trillion. Inter said it now handles about 9% of Pix transactions in Brazil, gaining 31 basis points of share over the past year. It also exceeded 2% market share in Brazilian credit-card payment volume for the first time. Inter continued to emphasize secured lending, including mortgages, home equity and payroll-linked loans, while selectively expanding unsecured products such as credit cards, Pix Credit and buy now, pay later. Mortgages and home equity grew at an average rate of 40% since the second quarter of 2025, Stel said. Private payroll loans reached more than 600,000 clients. Riccio said those customers generate ARPA that is 3.7 times the company average. The company plans to launch insurance for private payroll borrowers in August, which it expects could reduce provisions and add fee revenue. Business accounts totaled 2.9 million, up 24% year over year. Riccio said business clients generate 2.8 times the ARPA of the average customer. Inter also pointed to subscription plans, investment advisory services, Inter Ads, card interchange, acquiring and credit insurance as potential drivers of faster fee-income growth. Management said it is deliberately accepting more risk in certain unsecured portfolios in pursuit of higher risk-adjusted returns. Credit-card interest income increased 64% year over year as the company shifted the portfolio toward interest-earning balances and installment usage. Stel said revenue growth in the credit-card book is outpacing provisions. Private payroll loans accounted for more than half of the year-over-year increase in nonperforming loans, Stel said. Delinquency has remained higher for longer than the company expected because of operational maturity issues, rather than deterioration in the product itself, he said. Riccio said Inter is implementing its own employee relinkage process, preparing insurance and introducing tools for loan renegotiations and credit-policy adjustments. Even at current delinquency levels, Stel said private payroll loans are generating return on equity of about 30%. Inter changed its credit-card write-off policy from 360 days past due to 330 days past due, citing accounting practices under Brazil’s Resolution 4966 and low recoverability after 330 days. Stel said the change reduced the overall NPL ratio by about 30 basis points but had no impact on cost of risk because those loans were already fully provisioned by that point. The coverage ratio stood near 134%, down from a prior level of 146% as private payroll loans matured. Stel said a coverage ratio of roughly 130% to 135% is a reasonable assumption for the coming quarters, although the outcome will depend on loan-product mix. Operating expenses rose 19% year over year, below the 32% increase in revenue. Headcount remained near 4,000 employees, the same level as four years ago, according to Stel. The efficiency ratio improved to a record low of 42.1%. Personnel costs rose 18%, driven primarily by profit sharing, while depreciation and amortization increased 44% as Inter amortized prior investments in its Super App. Administrative expenses increased 15%, which management said was broadly aligned with growth in clients and transaction volumes. At the holding-company level, Inter held BRL 2.3 billion in excess capital available for deployment in the bank. Its holding-level Basel ratio was 19.3%. Menin said Inter remains confident in its ability to expand lending at roughly 30% or more for years while managing credit risk through product mix, underwriting and its low-cost digital distribution model. Inter & Co, Inc Is a holding company, which engages in the provision of financial products and services. It operates through the following segments: Banking, Securities, Insurance Brokerage, Marketplace, Asset Management, Service, and Other. The Banking segment offers checking accounts cards, deposits, loans and advances, and other services through mobile application. The Securities segment is involved in the acquisition, sale and custody of securities, the structuring and distribution of securities in the capital market, and the provision of administration services to investment funds. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Inter & Co. Inc. Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

MIAMI, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Inter&Co Inc. (NASDAQ: INTR | B3: INBR32), the leading super app providing financial and digital commerce services to over 45 million customers, today reported its results for the second quarter of 2026. 2Q26 Highlights: Inter delivered another quarter of record results, demonstrating the compounding strength of its complete ecosystem and Inter by Design model. This quarter marked the realization of the “Rule of 50”, first introduced at Inter’s 2026 Owners’ Day in May, outlining the goal of achieving a combination of net revenue growth and Return on Equity exceeding 50%, while signaling scale and profitability are working in tandem. Rule of 50 is Already a Reality: With ROE reaching 16.3% and net revenue growing 32% year-over-year, Inter has achieved the Rule of 50, validating that disciplined, technology-driven growth can be both high and profitable. Net income for the quarter was US$81 million (R$421M), a 34% increase quarter-over-quarter. Consistent and Robust Revenue Growth: Total net revenue reached US$509.5 million (R$2.6B), growing approximately 32% year-over-year, maintaining Inter’s ~30% YoY growth trajectory, driven by strong Net Interest Income, improved underwriting, and an optimized portfolio mix. Additionally, Inter’s strategy around reshaping credit card access and its continued expansion of private payroll loans added to this growth. Efficiency Hits a Record Low: The efficiency ratio reached a new record low of 42%, as expenses grew a controlled 19% YoY — significantly outpaced by the 32% increase in total net revenue — a clear demonstration of the scalability embedded in Inter’s model. Asset Quality Behaving as Expected: Non-Performing Loan (NPL) trends remain manageable and traceable, with increases concentrated in Private Payroll and in Credit Cards, reflecting the broader macroeconomic environment, and in line with an expansion in Inter’s product portfolio. Inter’s robust underwriting standards and advanced collections capabilities continue to anchor asset quality. João Vitor Menin, Global CEO of Inter&Co, commented:"Our 2Q26 results showcase our ability to grow sustainably while continuing to gain market share across our verticals. Inter’s consistent momentum highlights the strength of our model and our unwavering focus on creating value for clients and investors.” He added: "Rule of 50 is already a reality, with revenue growth reaching 32% and an ROE surpassing 16%. This reflects our ability to achieve scalable and profitable growth, powered by a model that is becoming capital neutral — meaning our growth will increasingly be funded by our profitability." He concluded: "As we look ahead, we remain committed to growth, innovation, and delivering sustainable profitability. Our unique ability to gain market share and fund growth organically through our profitability sets Inter apart. We will continue to lead and shape the future of financial services, creating meaningful impact and lasting value." Alexandre Riccio, Brazil CEO of Inter&Co, noted: "Our credit portfolio continues to expand at a strong 29% year-over-year pace, with loans per active client growing 11% — a reflection of how deeply embedded Inter has become in our clients' financial lives. Private payroll loans remain a standout product, with a long runway of growth still ahead of us." Riccio continued: "Deeper client engagement is translating directly into higher ARPAC, as we deliver increasingly tailored financial solutions and convert strong relationships into sustainable value. This engagement is also demonstrated by our 9% market share of all Pix transactions in Brazil — a level of daily trust that few platforms can claim." Conference Call Inter&Co will discuss its 2Q26 financial results on August 6th, 2026, at 08:30 a.m. ET (09:30 a.m. BRT). The webcast details, along with the earnings materials, can be accessed on the company's Investor Relations website at https://investors.inter.co/en/. About Inter&Co Inter (NASDAQ: INTR) is a digital bank providing financial and lifestyle solutions to 45 million consumers. Our super app leverages technology to unlock simplicity, offering mortgages, credit, gift cards, investments, and international payments. Inter customers also enjoy access to a dynamic marketplace of shopping discounts, cashback rewards, and exclusive access to marquee events. Recognized by Forbes, CNBC, and others as one of the world’s leading FinTechs and digital banks, Inter leads with human innovation to empower the new economy. Learn more at US.Inter.Co. Investor Relations:Rafaela de Oliveira Vitó[email protected] Media Relations:[email protected] / [email protected] DisclaimerThis 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 could cause the company’s results or accrued results to differ materially from those anticipated and discussed herein. These statements are not guarantees of future performance. These risks and uncertainties include, but are not limited to, our ability to realize the number of projected synergies and the projected schedule, in addition to economic, competitive, governmental and technological factors affecting Inter, the markets, products and prices and other factors. In addition, this presentation contains managerial figures that may differ from those presented in our financial statements. The calculation methodology for these managerial numbers is presented in Inter’s quarterly earnings release. Statements contained in this report that are not facts or historical information may be forward looking statements under the terms of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may, among other things, beliefs related to the creation of value and any other statements regarding Inter. In some cases, terms such as “estimate”, “project”, “predict”, “plan”, “believe”, “can”, “expectation”, “anticipate”, “intend”, “aimed”, “potential”, “may”, “will/shall” and similar terms, or the negative of these expressions, may identify forward looking statements. These forward-looking statements are based on Inter's expectations and beliefs about future events and involve risks and uncertainties that could cause actual results to differ materially from current ones. Any forward-looking statement made by us in this document is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether because of new information, future developments or otherwise. The definition of each such operational metric is included in the earnings release available on our Investor Relations website. For additional information that about factors that may lead to results that are different from our estimates, please refer to sections “Cautionary Statement Concerning Forward Looking Statements” and “Risk Factors” of Inter&Co Annual Report on Form 20-F. The numbers for our key metrics (Unit Economics), which include, among other, active clients and average revenue per active client (ARPAC), are calculated using Inter’s internal data. Although we believe these metrics are based on reasonable estimates, there are challenges inherent in measuring the use of our business. In addition, we continually seek to improve our estimates, which may change due to improvements or changes in methodology, in processes for calculating these metrics and, from time to time, we may discover inaccuracies and adjust to improve accuracy, including adjustments that may result in recalculating our historical metrics. About Non-IFRS Financial MeasuresTo supplement the financial measures presented in this press release and related conference call, presentation, or webcast in accordance with IFRS, Inter&Co also presents non-IFRS measures of financial performance, as highlighted throughout the documents. The non-IFRS Financial Measures include, among others: Adjusted Net Income, Cost of Funding, Efficiency Ratio, Cost of Risk, Cards+PIX TPV, Gross ARPAC, Global Clients, Total Gross Revenues, and Return on average equity (ROE). A “non-IFRS financial measure” refers to a numerical measure of Inter&Co’s historical or financial position that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS in Inter&Co’s financial statements. Inter&Co provides certain non-IFRS measures as additional information relating to its operating results as a complement to results provided in accordance with IFRS. The non-IFRS financial information presented herein should be considered together with, and not as a substitute for or superior to, the financial information presented in accordance with IFRS. There are significant limitations associated with the use of non-IFRS financial measures. Further, these measures may differ from the non-IFRS information, even where similarly titled, used by other companies and therefore should not be used to compare Inter&Co’s performance to that of other companies.

Columbia Financial (CLBK) came out with quarterly earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +200.00%. A quarter ago, it was expected that this company would post earnings of $0.07 per share when it actually produced earnings of $0.07, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Columbia Financial, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $73.75 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.40%. This compares to year-ago revenues of $63.88 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Columbia Financial shares have added about 54.5% since the beginning of the year versus the S&P 500's gain of 6.9%. While Columbia Financial has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Columbia Financial was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.07 on $131.48 million in revenues for the coming quarter and $0.33 on $407.82 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the bottom 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Inter & Co. Inc. (INTR), another stock in the same industry, has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +30.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Inter & Co. Inc.'s revenues are expected to be $511.81 million, up 44.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Columbia Financial (CLBK) : Free Stock Analysis Report Inter & Co. Inc. (INTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Trustmark (TRMK) came out with quarterly earnings of $0.97 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this holding company for Trustmark National Bank would post earnings of $0.87 per share when it actually produced earnings of $0.95, delivering a surprise of +9.2%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Trustmark, which belongs to the Zacks Banks - Southeast industry, posted revenues of $211.13 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.06%. This compares to year-ago revenues of $201.3 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Trustmark shares have added about 18.9% since the beginning of the year versus the S&P 500's gain of 8.3%. While Trustmark has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Trustmark was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.00 on $215 million in revenues for the coming quarter and $3.92 on $847.67 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southeast is currently in the top 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Inter & Co. Inc. (INTR), another stock in the broader Zacks Finance sector, has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +30.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Inter & Co. Inc.'s revenues are expected to be $511.81 million, up 44.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Trustmark Corporation (TRMK) : Free Stock Analysis Report Inter & Co. Inc. (INTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the record net income of BRL 395 million to structural profitability taking shape through disciplined capital allocation and high operating leverage. The credit strategy is heavily focused on collateralized lending, with approximately 70% of the portfolio now secured by assets like mortgages and payroll loans. The 'reshaping' of the credit card portfolio has increased interest-earning installments to over 25% of the book, up from 21% last year, to drive higher monetization. Operational efficiency reached a record low ratio of 43.8%, driven by keeping headcount stable at 4,000 employees while doubling revenue over the last two years. The launch of 'Seven,' a multi-agent transactional AI tool, marks a strategic pivot from simple customer service to a fully integrated, data-driven banking interface. Management views the current macro deterioration in Brazil as a competitive opportunity to gain market share due to their low cost of funding and digital distribution model. Management expects NIM expansion to continue at a pace of approximately 10 basis points per quarter, driven by repricing older portfolios and deploying liquidity at higher yields. Cost of risk guidance for 2026 has been adjusted to approximately 6% to account for the upfront provisioning required by the rapid scaling of private payroll loans. The private payroll product is expected to reach a typical cohort breakeven in approximately 6 months, following a natural J-Curve of upfront expenses followed by interest income. Future asset quality improvements in the payroll segment are contingent on operational upgrades like using severance funds (FGTS) as collateral and automatic re-inclusion across employers. Strategic focus for the remainder of the year remains on increasing 'principality,' aiming to become the primary bank for users through cross-selling and ecosystem engagement. NPLs (90 days) increased from 4.7% to 5.1%, which management attributes roughly half to seasonality and half to the growth of the private payroll and card reshaping strategies. The efficiency ratio target remains at 30% long-term, though management is currently prioritizing growth and senior management investments over immediate nominal expense reduction. The 'Desenrola' debt renegotiation program is viewed as a positive but non-material factor, with over 50% of Inter's delinquent base potentially eligible for participation. Regulatory changes to payroll loan interest rate caps are expected to have a minimal impact, affecting less than 5% of Inter's current underwriting due to their already competitive rates. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that the increase in NPLs is a deliberate trade-off for higher-margin products like private payroll, which requires upfront provisioning before interest income matures. The cost of risk is now expected to be closer to 6% for the year as the bank maximizes risk-adjusted NIM through more aggressive payroll and card installments. The slight 3 basis point dip in NIM compared to Q4 2025 was attributed to seasonal fluctuations in cheap deposit balances following year-end bonuses. Management reaffirmed the long-term trend of 10-20 basis points of NIM expansion per quarter as they continue to optimize their treasury and liquidity management. Management defended a 20% increase in personnel expenses by highlighting a strategic shift toward hiring more senior talent to improve credit underwriting and innovation. They emphasized that revenue per employee has doubled over the last 2.5 years, proving that the investment in seniority is driving the record efficiency ratio. The SME business currently provides 40% of the bank's deposit base but has only 3% credit penetration, representing a massive future monetization opportunity. Growth in the acquired Granito (Inter Pag) business is expected to remain flat for a few quarters during a modernization phase before resuming expansion.

Interested in Inter & Co. Inc.? Here are five stocks we like better. Strong profitability and revenue momentum: Inter reported nearly BRL 400 million in Q1 net income (BRL 1.6 billion annualized), with record metrics like ROE 15.5% and revenues up 37% YoY to BRL 4.3 billion, while NIM (disclosed as NIM 2.0) was 9.54% and management expects NIM to expand roughly 10–20 bps per quarter on average. Robust client and loan growth but rising credit costs: The bank reached 44 million clients with a ~60% activation spike and BRL 1.7 trillion payments run-rate (+25% YoY); the loan book neared BRL 50 billion (+33% YoY) across mortgages, payroll and cards, while NPLs rose to 5.1% and management now guides cost of risk closer to ~6% for the remainder of the year. Product and monetization push with AI launch: Inter introduced Seven, a multi-agent transactional AI tool aimed at driving conversational sales and transactions, as fee revenue and ARPAC climbed (fees +18% YoY, ARPAC BRL 34), even as expenses rose 20% and the efficiency ratio improved to a record-low 43.8%. Inter & Co. Inc. (NASDAQ:INTR) executives used the company’s first-quarter 2026 earnings call to emphasize what Global CEO João Vitor Menin described as “a strong start of the year,” pointing to continued growth in the client base, payments volumes, and the loan book, alongside expanding profitability. The call also highlighted Inter’s latest product launch, a multi-agent artificial intelligence tool called Seven, and included detailed discussion with analysts on credit quality trends, cost of risk expectations, and the outlook for net interest margin (NIM). Menin said Inter’s “structural profitability is taking shape,” noting net income of “almost BRL 400 million” in the quarter, which he framed as a BRL 1.6 billion annualized run rate. CFO Santiago Stel later reported net income of BRL 395 million, with record profitability metrics including 15.5% return on equity (ROE) and 1.59% return on assets (ROA). He added that Inter introduced return on tangible equity as a new metric this quarter, at 19.5%. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% Stel said gross revenues surpassed BRL 4.3 billion, up 37% year-over-year, while total net revenue rose 33% to BRL 2.4 billion. According to Stel, net interest margin (using what he called “NIM 2.0” as the primary disclosed metric going forward) was 9.54%, the “second best on record,” only 3 basis points below fourth-quarter 2025. Brazil CEO Alexandre Riccio said Inter reached 44 million total clients and posted its “highest quarterly jump in activation rate since 2024,” at nearly 60%. He said Inter is focused on increasing “principality” (becoming the primary bank for users) through cross-sell and higher monetization while keeping customer acquisition cost “deliberately disciplined.” → Years in the Making, AMD’s Upside Movement Has Just Begun Riccio said client engagement translated into higher transaction volumes, with combined cards and Pix volume reaching a BRL 1.7 trillion run-rate in the quarter, a 25% year-over-year increase. He also stated that 8.5% of Pix transactions in Brazil “flow through Inter.” Inter’s executives repeatedly pointed to continued credit growth. Menin cited a gross loan portfolio “scaled to more than BRL 50 billion,” while Stel said the loan portfolio “nearly reached BRL 50 billion,” up 33% year-over-year. Excluding the SME portfolio, Stel said growth would be 37% year-over-year. → Light Speed Returns: Corning Cashes In on NVIDIA Growth Stel broke out growth by product, reporting: Mortgages up 42% year-over-year and home equity up 43% Payroll and personal loans up 38% year-over-year, with private payroll highlighted Credit cards up 27% year-over-year Riccio said nearly 70% of the loan portfolio is secured with collateral, describing a strategy balanced across mortgages, payroll loans, and credit cards. He added that Inter’s private payroll loan portfolio reached BRL 2.5 billion with 600,000 active clients. He also said Inter’s credit card “reshaping” effort increased the share of interest-earning portfolios to over 25% from 21% last year, with revolving balances growing as clients were no longer “mandatorily moved to installments.” On asset quality, Stel said non-performing loans (NPLs) rose to 5.1% from 4.7%, citing three drivers: macro pressures as system delinquency rises, first-quarter seasonality, and portfolio effects from growth in private payroll and credit card reshaping. He said NPL and Stage III formation were “stable” versus the prior quarter, while cost of risk increased as private payroll loans stayed on the books longer. In the Q&A, Citi’s Gustavo Schroden questioned recurring deterioration in credit metrics and sought more detail on private payroll dynamics. Menin argued that Brazil’s tougher credit cycle can create opportunity for Inter due to what he described as a strong funding franchise and lower-cost digital distribution. He said that positioning should allow Inter to keep expanding, with emphasis on secured lending alongside controlled unsecured growth. Stel said private payroll delinquency is behaving as expected for an early-stage product, and that Inter saw record originations after adding WhatsApp distribution. He described operational improvements, including the ability to move contracts when clients switch employers and smoother employer collections, and referenced additional potential enhancements tied to severance funds and FGTS collateralization. Stel also addressed profitability and timing for the product, stating that at current delinquency levels, “the ROE of the product at the rates at which we are originating are around 30%.” He said the product’s “natural J-curve” involves upfront provisioning before interest income builds, and that Inter “passed the break-even point a quarter ago.” In follow-up, he said a typical cohort reaches break-even in “around two quarters or six months.” Schroden also asked about Inter’s cost of risk outlook. Stel said the company now expects something “closer to 6%” for the remainder of the year, compared with prior expectations of 5% to 5.5%, attributing the shift to the current scenario and continued exposure to private payroll and credit card reshaping. In response to Goldman Sachs’ Tito Labarta, Stel said the NPL increase was “roughly half and half” seasonality versus internal factors, with private payroll growth and credit cards as the main internal contributors. On NIM, BTG Pactual’s Ricardo Buchpiguel asked what to expect in coming quarters. Stel reiterated that Inter expects NIM to expand 10 to 20 basis points per quarter on average over time and said the first quarter’s near-flat quarter-over-quarter performance was driven largely by seasonality on the funding side, contrasting with the more favorable fourth quarter. He said Inter still expects further NIM expansion, “closer to around 10 basis points on average” in the quarter, and pointed to initiatives on the treasury front. Stel said net fee revenue grew 18% year-over-year, and he linked fee generation to Inter’s ecosystem of “seven verticals and 180 products.” He reported net ARPAC of BRL 34, up 9% year-over-year, and margin per active client of BRL 21, up 15% year-over-year. He also said mature clients generate more than BRL 130 in gross ARPAC. JPMorgan’s Yuri Fernandes questioned fee momentum, and Riccio acknowledged “pressure on fees” while noting positive highlights such as Intershop growing 30% year-over-year. Riccio said Inter expects interchange growth to improve from 16% over the last 12 months to “closer to 20%, +20%,” and said additional product launches—citing insurance as an example—could support growth. He also tied future fee opportunities to “Seven efforts” and what he described as “conversational sales.” On expenses and efficiency, Bank of America’s Mario Pierry pressed management on personnel expense growth and why Inter’s efficiency ratio remains higher than peers. Stel had reported a record-low efficiency ratio of 43.8%, improving 170 basis points sequentially, while also saying expenses rose 20% year-over-year versus 33% revenue growth. Menin responded that Inter is “still a growth story” and highlighted that headcount remained around 4,000 employees while revenue doubled versus roughly 2.5 years ago, attributing that to higher revenue per employee and investments in more senior talent to strengthen underwriting, collections, and innovation. Menin also used prepared remarks to announce Seven, which he described as a “multi-agent AI tool” and “fully transactional” platform. He said it can handle tasks such as investment guidance, Pix transfers via text, gift card purchases, and managing credit card installments, adding that Inter’s AI has evolved “from simply answering questions to actually getting things done.” Menin framed the company’s direction as part of what he called a “banking AI revolution,” drawing parallels to Inter’s earlier shift to a mobile-only digital bank. Management repeatedly encouraged investors to attend Inter’s Owner’s Day event at Nasdaq on May 11, where executives said they plan to expand on strategy topics including client principality, credit penetration, monetization, and AI initiatives. Inter & Co, Inc Is a holding company, which engages in the provision of financial products and services. It operates through the following segments: Banking, Securities, Insurance Brokerage, Marketplace, Asset Management, Service, and Other. The Banking segment offers checking accounts cards, deposits, loans and advances, and other services through mobile application. The Securities segment is involved in the acquisition, sale and custody of securities, the structuring and distribution of securities in the capital market, and the provision of administration services to investment funds. The article "Inter & Co. Inc. Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Inter & Co. Inc. (INTR) came out with quarterly earnings of $0.17 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.98%. A quarter ago, it was expected that this company would post earnings of $0.15 per share when it actually produced earnings of $0.16, delivering a surprise of +6.67%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Inter & Co. Inc., which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $463.49 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.43%. This compares to year-ago revenues of $313.42 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Inter & Co. Inc. shares have lost about 7.6% since the beginning of the year versus the S&P 500's gain of 7.6%. While Inter & Co. Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Inter & Co. Inc. was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.18 on $481.07 million in revenues for the coming quarter and $0.76 on $1.97 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Marathon Digital Holdings, Inc. (MARA), another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 11. This company is expected to post quarterly loss of $0.25 per share in its upcoming report, which represents a year-over-year change of +37.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Marathon Digital Holdings, Inc.'s revenues are expected to be $192.68 million, down 9.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inter & Co. Inc. (INTR) : Free Stock Analysis Report Marathon Digital Holdings, Inc. (MARA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research