Inter & Co (INTR) Q4 2024 earnings summary

Executive summary

• Achieved record net income of R$973 million in 2024, a threefold increase year-over-year, surpassing all prior years combined, with ROE at 11.7% for the year and 13.2% in 4Q24, driven by a scalable digital banking model and strong operational execution.

• Client base grew to 36.1 million, with a 57% activation rate, adding over 4 million clients during the year and 20.6 million active clients.

• Significant progress in global expansion, reaching 3.9 million global account clients (+79% YoY), launching new products such as dollar credit cards and Digital Payroll.

• Continued innovation with launches such as Consumer Finance 2.0 and Forum, driving engagement and cross-selling across seven business verticals.

• Entered 2025 with a strong balance sheet, low funding costs, diversified credit portfolio, and improving asset quality.

Financial highlights

• Net income tripled to R$973 million in 2024, with annualized ROE of 11.7% and 4Q24 net income of R$295 million (ROE 13.2%).

• Gross revenues exceeded R$10.3 billion (+28% YoY); net revenues reached R$6.4 billion (+32% YoY), with NII and net fees up 37% and 31% YoY, respectively.

• Loans grew 33% YoY to R$41 billion, with FGTS and home equity loans up about 50%.

• Funding surpassed R$55 billion, up 27% YoY, with a record R$2,000 average deposit per active client.

• Efficiency ratio improved to 50.1% by year-end, reflecting operational leverage.

Outlook and guidance

• Confident in sustaining 25%-30% loan growth and further NIM expansion in 2025, despite a cautious macro environment.

• Efficiency ratio targeted to move toward 30% as per the 60-30-30 Plan, with disciplined cost management and company-wide engagement.

• Dividend payout expected to remain at 20%-25%, balancing growth and shareholder returns.

• Targeting 60 million clients and 30% ROE by 2027 as part of a five-year strategic plan.

• Platform is well positioned for further success in 2025, with ongoing focus on innovation and client engagement.