Inter & Co's 2025Q2 Earnings Call: Unpacking Contradictions in Payroll Demand, Efficiency Strategies, and Loan Growth

Private payroll product market share and demand, efficiency ratio improvement strategy, credit card strategy and installment growth, interest rate trends for personal loans, and credit card and personal loan growth strategy are the key contradictions discussed in Inter & Co's latest 2025Q2 earnings call.



Financial Performance:
- Inter reported BRL 3.6 billion in total gross revenues, with a year-over-year growth of 48% and 35% for net revenue.
- Quarterly growth levels were 13% for gross revenues and 9% for net revenues.
- The growth was driven by strong performance in fees, which exceeded NII, and increased engagement leading to higher client monetization across cohorts.

Credit Penetration and Loan Growth:
- Credit penetration among active clients reached 33.8%, showcasing healthy and sustainable growth.
- The total loan portfolio grew 8% quarter-on-quarter, with a run rate slightly over 30%.
- This was fueled by strong performance in secured products like mortgages and home equity, and unsecured products like private payroll loans.

Efficiency and Operational Leverage:
- Inter achieved a record operating efficiency ratio of 47.1% by excluding tax expenses.
- The improvement was driven by strategic investments in marketing and technology, as well as operational leverage through contract renegotiations with major vendors.

Asset Quality and Risk Management:
- The company reported a 15-90-day NPL improvement of 20 basis points, with stable trends in 90-day past due metrics.
- The risk-adjusted NIM performance demonstrated a stable trend, with a focus on expanding risk-adjusted NIM on a healthy and sustainable basis.