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Inter & Co (INTR) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Financials· Aug 6, 2026

Source: earnings call transcript

Executive summary

Inter & Co, Inc. Q2 FY26 — Rule of 50 Achieved with Record Profitability and Strong Growth

Inter & Co achieved its 'Rule of 50' target this quarter, demonstrating simultaneous growth and profitability. The company reported record ROE and NIM, driven by disciplined capital allocation and strategic product reshaping. While early NPLs increased, particularly in private payroll, management emphasized that revenue growth is outpacing provisions, maintaining strong risk-adjusted returns. The digital model continues to deliver significant operational leverage, with revenue growth outpacing expense growth.

Highlights

5

  • Total net revenue grew 32% year-over-year, demonstrating strong top-line expansion.

  • Return on Equity (ROE) reached a record 16.3%, reflecting enhanced profitability.

  • Net Interest Margin (NIM) crossed double-digits for the first time, reaching 10.1%.

  • Expanded loan portfolio grew 29% year-over-year to BRL 55.4 billion, driven by strategic capital deployment.

  • Efficiency ratio reached a new record low of 42.1%, showcasing strong operational leverage.

Concerns

3

  • Early NPLs moved up, with private payroll being the largest contributor to the yearly NPL increase.

  • Delinquency in the private payroll product has been running higher for longer than planned due to operational maturity taking more time.

  • The BACEN debt renegotiation program resulted in a BRL 12 million EBT impact, despite overall positive volume.

Guidance & targets

CategoryTargetConfidence
Annual NIM increase
40 basis points increase
high materiality
High
Cost of risk
around 6%
high materiality
Medium
Private payroll NPLs
low teens
medium materiality
Medium
Allowance coverage ratio
around 130% to 135%
medium materiality
Medium

Product announcements

ProductTypeDetails
Credit Insurancelaunch
Inter Adslaunch
Subscription Plans (One, Prime, Win)launch
Investment Advisory Servicesexpansion
Electronic Trade Invoice (Producto Bancario)milestone

Risks & headwinds

Higher-than-planned delinquency in private payroll ongoing

responsible for over half of the yearly NPL increase

Mitigation:Actively working on operational improvements, own relinkage solution underway, insurance launch in August, further DataPrev improvements expected this month.

Challenging macro environment for unsecured credit ongoing

unsecured segment that still faces a challenging macro environment

Mitigation:Disciplined niche approach, expectation for NPL performance to improve with downward trend in interest rates.

Uncertain environment in H2 with elections and fiscal spending concerns H2 FY26 and next year

uncertain environment second half of the year with the elections

Mitigation:Careful approach to credit risk, ability to adjust unsecured portfolio based on credit cycles, leveraging small loan portfolio and efficient distribution to maintain growth.

What to watch in Q3 FY26

Private payroll delinquency improvement

coming quarters
Current running higher for longer than planned
Target closer to low teens

Why it matters

Improvement in private payroll delinquency is crucial for overall asset quality and sustained profitability in this high-ROE product.

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.

Find out whether INTR delivers this. Inve re-checks your case every morning.

Q&A highlights

Clarify the drivers of the strong NIM expansion this quarter, particularly the inflation impact, and provide an outlook for NIM in Q3. Also, discuss expectations for early NPLs and risk-adjusted NIM trends given the deliberate risk-taking strategy.

Management explained that Q2 NIM included a positive inflation tailwind of approximately 15 bps, offsetting a similar negative impact in Q1. They expect a 40 bps annual NIM increase for FY26. On asset quality, they are comfortable with the performance, noting that higher NPLs in credit cards and private payroll are a deliberate trade-off for higher returns, with credit card interest income growing faster than provisions. Cost of risk is expected to remain around 6%.

“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.”

asked by Eduardo Rosman · answered by Santiago Stel

2 min read 5 chapters

Detailed narrative

Rule of 50 and 60-30-30 North Star

Inter & Co has successfully achieved its 'Rule of 50' plan, demonstrating that growth and profitability are not a trade-off. Total net revenue grew 32% and ROE reached over 16%. This achievement is built upon the long-term '60-30-30 North Star' goal: 60 million clients, 30% efficiency ratio, and 30% ROE. The company's 'Inter by design' approach, combining sustainable revenue growth, scalable distribution, and cost efficiencies, is driving these results.

Client Engagement and Monetization

The company's strategy focuses on growing a higher quality client base, prioritizing engagement and ARPAC growth. New client cohorts exhibit an initial ARPAC approximately BRL 10 higher than older cohorts. Daily log-ins increased to 22 million this quarter, up from 18 million a year ago, indicating deep client engagement. This engagement translates into higher monetization, with margin per active client reaching its best level ever, while cost to serve remains flat.

Strategic Credit Portfolio Reshaping

Inter & Co is deliberately reshaping its credit portfolio towards higher-yielding balances, particularly in credit cards and private payroll loans. The interest-earning portion of the credit card book now stands at 26%, with interest income growing 64% year-over-year, outpacing provisions. Private payroll loans, despite higher-than-planned delinquencies, maintain an ROE of around 30%, making them economically compelling. The company is actively implementing operational improvements and new features like credit insurance to enhance the product's performance.

Fee Income Growth Initiatives

While credit is a powerful engine, Inter & Co is diversifying its revenue streams through seven verticals that reinforce each other. New initiatives to accelerate fee income growth include launching subscription plans (One, Prime, Win segments), expanding investment advisory services, and introducing 'Inter Ads' for app monetization. Credit-related fees are also accelerating, driven by increased credit card TPV and the upcoming credit insurance for private payroll loans. The company's strong distribution power, with multiple products surpassing 1 million active clients, supports rapid adoption of new offerings.

Capital Generation and Strength

For the first time, Inter & Co's business is generating more capital than it consumes to fund its own loan growth, making the company self-sustained from a capital perspective. Total assets surpassed BRL 100 billion. At the Inter&Co holding level, the company holds EUR 2.3 billion in excess capital, resulting in a strong Basel ratio of 19.3%. This capital strength provides flexibility for future growth and deployment.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.