Inter & Co reports 32% net revenue growth

Inter & Co (NASDAQ: INTR ) released second-quarter financial results and hosted an earnings call on Thursday. Read the complete transcript below. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

View the webcast at Summary Inter & Co reported a 32% increase in total net revenue, with a return on equity (ROE) exceeding 16%, demonstrating the effectiveness of their 'rule of 50' strategy. The company has successfully expanded its market share across multiple segments, including Pix transactions and credit card TPV, by leveraging its ecosystem and engaging more clients. Inter & Co surpassed 100 billion reais in total assets for the first time and achieved a double-digit net interest margin (NIM), highlighting significant financial milestones. 3 million clients, while focusing on high-quality client engagement to drive revenue per active client (RPAC).

Inter & Co introduced a write-off policy change for credit cards, aligning with best practices, and is implementing measures to manage delinquencies in private payroll loans effectively. Management emphasized the company's strong capital position, with a self-sustaining growth model, and expressed confidence in continuing to capture growth opportunities in the Brazilian market. Full Transcript Rapa Vittore, Investor Relations Hi everyone. I'm Rapa Vittore, IR Officer at Inter & Co, and I would like to welcome all to Inter & Co's earnings conference call.

First of all, some instructions. This call is also available in Portuguese. To access it, press the globe icon on the lower right side of your Zoom screen, then select the Portuguese room. Please be advised that all participants will be in listen-only mode and that the conference is being recorded.

You may submit online questions at any time today using the Q&A box on the webcast. A replay will be available at the company's IR website. With me today are Jean Vitormini, our Global CEO, Alessandri Jesu, our Brazil CEO, and Santiago Estelle, our CFO. To start with the CEO overview, I would like to invite Jerome.

Jerome, please go ahead. Jerome, CEO Thank you, Jacob. 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 one 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 this don't happen by accident. Delivering the rule of 50 is only possible because of our Inter by Design approach.

It combines three 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 produces. 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 five players.

That is a 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 remain our foundation: strong asset quality, stable returns, resilient through different credit cycles. And on top of that, unsecured credit such as credit card, fixed 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 nine, I would like to highlight three important milestones for our company. Number one, on gaining scale: for the first time ever, we reached over 100 billion reais 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 at a fast pace.

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 Shanji and Santi will bring this story to life with the full numbers behind it. Shanji will walk you through the business update, while Santi will take you through the financial performance in detail.

Sanji, please go ahead. Thank you, Joo, and good morning, everyone. Let's now dive into our second quarter operational results. 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 RPAC growth, building a stronger and more profitable base.

And the strategy is showing up directly in our numbers. Our new cohorts are starting with an initial RPAC approximately 10 reais higher than older cohorts. A key driver of RPAC growth is credit penetration. As clients deepen their relationship with Inter & Co 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 logins 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 & Co.

And that engagement is translating directly into monetization. While we keep our cost to serve flat, RPAC goes up, CTS 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. 8 trillion on a run-rate basis. TPV is growing faster than our client base, an evidence of deeper relationships. Two market share numbers tell this story best.

First, we now hold approximately 9% of all Pix 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 Ron mentioned earlier, our new cohorts are starting 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 two 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 thesis 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 did grow 64% year over year.

And here's a 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 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.

7 times 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 Datapress 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.

9 million business clients, growing 24% year over year. Our market penetration is already at 12% in these types of accounts. 8 times the RPAC 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 collateral, or as called in Portuguese, Duplicata Escritural, to be launched by the Central Bank of Brazil, is currently in testing. And once live, it will deepen our product suite, drive higher RPAC and compound directly into NII growth. The more products a business client uses, the more they consolidate their financial transactions at Inter & Co. 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 & Co truly unique is that we have seven verticals that reinforce each other and together generate a fee income base that is diversified and resilient. We have two 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, interchange is accelerating as our credit card TPV crosses the 2% market share for the first time and keeps outpacing debit.

Interpag resumed growth as we mature the company and leverage the products amongst our business clients. And in 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 seven verticals have already surpassed 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. Launching a new product here is not starting from zero; 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 are gaining traction quickly. With that, I'll hand it over to Santi for the financial performance. Santi, please go ahead. UNKNOWN, CFO Thank you, Sande.

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, Joel 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 eight consecutive quarters, NII has been growing around 40% year on year, eight quarters in a row. That is the result of intentional execution. A portfolio that keeps growing, a NIM that keeps expanding, private payroll gaining traction exactly as Chande 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 Chande 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 you just saw in NII has a direct driver: NIM. 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 reprice buy now, pay later, fixed credit, and private payroll. On the liability side we reduce interest rates on LCIs. This is not a one—time 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. 1%. 7 times today. When you normalize for that and hold the capital structure constant through time, the true unit 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 product—global, cardio or banking business looks like in practice, and that capital deployment we just described is showing up directly in the loan growth. 4 billion reais, 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, FIDCs, 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.