Inter's Q4 2024: Conflicting Signals on Cost of Risk, Credit Card Strategy, and Loan Growth

These are the key contradictions discussed in Inter's latest 2024Q4 earnings call, specifically including: Cost of Risk Expectations, Credit Card Portfolio Strategies, and Loan Growth Outlook:



Record Revenue and Profit Growth:
- Inter & Co reported revenue of over BRL 10 billion in 2024, marking a 40% year-over-year increase.
- The growth was driven by significant progress in the credit sector and expansion in commerce platforms.

Deposit and Loan Growth:
- The company's loans reached BRL 41 billion, up 33% year-over-year, with strong contributions from FGTS and home equity loans.
- The growth was supported by a robust transactional deposit base and prudent capital allocation strategies.

Credit Card Expansion:
- Credit cards grew to BRL 11.8 billion, with a 10% quarter-on-quarter and 25% year-on-year increase.
- This expansion was driven by successful credit underwriting and strategic product offerings.

Investment and Insurance Growth:
- AuC for investments increased by 54% year-over-year, and insurance reached over 5 million active contracts, growing 312% in 2024.
- Growth was fueled by targeted product strategies and integrated digital platforms.

Global Expansion Success:
- Inter & Co reached 3.9 million global clients, representing 19% of its active base.
- This was enabled by attractive value propositions and the expansion of dollar credit cards and investment products.