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    INTR
    Earnings call· Jun 2026(Q2 FY26)

    Inter & Co Q2 FY26 earnings call INTR

    Aug 6, 2026 Source

    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

    4
    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

    Operational metrics

    39
    Total net revenue growth
    32%YoY
    Q2 FY26

    Total net revenue growth for the quarter.

    Total assets
    BRL 100 billionfirst time ever
    Q2 FY26

    Company reached over BRL 100 billion in total assets for the first time.

    Active client base growth
    doubled
    since 60-30-30 plan

    The active client base doubled while tripling revenue growth.

    ARPAC (new cohorts)
    BRL 10 highervs older cohorts
    initial

    New client cohorts are starting with a higher initial ARPAC.

    Daily log-ins
    22 millionup from 18 million a year ago
    Q2 FY26

    Increased client engagement reflected in daily log-ins.

    Margin per active client
    best level ever
    Q2 FY26

    Financial outcome of better clients, deeper relationships, and higher credit penetration.

    PIX transactions market share
    9%growing 31 bps over past year
    Q2 FY26

    Market share in fixed transactions in Brazil.

    Credit card TPV market share
    2%first time ever
    Q2 FY26

    Market share in credit card TPV in Brazil.

    Interest-earning portfolio (credit cards)
    26%
    Q2 FY26

    Share of the credit card book that is interest-earning.

    Interest income growth (credit cards)
    64%YoY
    Q2 FY26

    Interest income from credit cards grew significantly.

    Private payroll clients
    600,000surpassed
    Q2 FY26

    Number of clients with private payroll loans.

    ARPAC (private payroll clients)
    3.7xvs average client
    Q2 FY26

    ARPAC for private payroll clients is significantly higher than the average.

    Business clients
    2.9 milliongrowing 24% year-over-year
    Q2 FY26

    Number of business clients.

    Business clients market penetration
    12%
    Q2 FY26

    Market penetration for business accounts.

    ARPAC (business clients)
    2.8xvs average client
    Q2 FY26

    ARPAC for business clients is significantly higher than the average.

    Cost of funding
    66%
    Q2 FY26

    One of the lowest and most stable in the industry.

    Inflation-linked exposure
    BRL 11 billion
    Q2 FY26

    Company's exposure to inflation-linked assets and hedging strategy.

    Inflation impact on NIM
    15 bpshigher
    Q2 FY26

    Inflation dynamics caused a timing mismatch, positively impacting Q2 NIM after a negative impact in Q1.

    Secured personal loans market concentration
    82%
    current

    Highlights the underpenetrated market for secured personal loans.

    Addressable market (secured personal loans)
    BRL 1.3 trillion
    current

    The market size for secured personal loans.

    Addressable market (total secured loans)
    BRL 2.7 trillion
    current

    The total addressable market for secured loans.

    Addressable market (widening unsecured loans)
    BRL 2.6 trillion
    current

    The addressable market as the company widens into unsecured products.

    Income from securities, derivatives and FX
    BRL 200 millionquarter-over-quarter
    Q2 FY26

    Component of NII, with a significant portion from the portfolios themselves.

    Private payroll market share
    2.5%
    current

    Current market share in private payroll portfolio.

    Private payroll rate cap
    4.99%
    recent

    The rate cap for private payroll loans, which had a small impact on origination.

    BACEN renegotiation volume
    BRL 100 million
    Q2 FY26

    Volume of loans renegotiated through the BACEN program.

    BACEN renegotiation P&L impact
    BRL 40 million
    Q2 FY26

    Overall P&L impact from the BACEN program.

    BACEN renegotiation EBT impact
    BRL 12 million
    Q2 FY26

    EBT impact from the BACEN program.

    NPL impact from BACEN
    -10 bps
    Q2 FY26

    Impact on NPLs from the BACEN renegotiation program.

    Cost of risk impact from BACEN
    -15 bps
    Q2 FY26

    Impact on cost of risk from the BACEN renegotiation program.

    Stage 3 formation impact from BACEN
    15 bpsincrease
    Q2 FY26

    Increase in Stage 3 formation due to the BACEN program, as renegotiated credits are moved to Stage 3.

    NPL impact from credit card write-off policy
    30 bps
    Q2 FY26

    Impact on NPLs from changing credit card write-off policy from 360 to 330 days.

    ROE (private payroll loans)
    30%
    Q2 FY26

    ROE for private payroll loans, even with current delinquency levels.

    Excess capital (holding level)
    EUR 2.3 billion
    Q2 FY26

    Excess capital held at the holding company level.

    Headcount
    4,000stable
    Q2 FY26

    Headcount has remained stable despite significant growth.

    Personnel costs growth
    18%YoY
    Q2 FY26

    Personnel costs grew, primarily driven by profit sharing linked to stronger profitability.

    D&A growth
    44%YoY
    Q2 FY26

    Depreciation and amortization increased due to prior investments, though the ratio of intangibles to total assets continues to decrease.

    Administrative expenses growth
    15%
    Q2 FY26

    Administrative expenses grew broadly in line with client and transactional volume growth.

    Operational leverage gap
    13 percentage points
    Q2 FY26

    The gap between revenue and expense growth, indicating strong operational leverage.

    Industry KPIs

    13
    MetricValueDetails
    LoansBRL 55.4 billionBRL
    DepositsBRL 77.2 billionBRL
    Rotce ROE16.3%%
    Cet1 ratio19.3%%
    Capital returns—
    Fee income lines—
    Allowance reserves134%%
    Net interest income—
    Net interest margin10.1%%
    Net charge offs npls—
    Total operating expenses—
    Provision for credit losses—
    Efficiency ratio operating leverage42.1%%

    Product announcements

    5
    ProductTypeDetails
    Credit Insurancelaunch
    Inter Adslaunch
    Subscription Plans (One, Prime, Win)launch
    Investment Advisory Servicesexpansion
    Electronic Trade Invoice (Producto Bancario)milestone

    Risks & headwinds

    3
    Higher-than-planned delinquency in private payrollongoing

    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 creditongoing

    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 concernsH2 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

    4

    Private payroll delinquency improvement

    coming quarters
    Currentrunning higher for longer than planned
    Targetcloser 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.

    Q&A highlights

    6

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.