Inter & Co. Inc.

Good afternoon and thank you for standing by. Welcome to Inter & Co's first quarter earnings conference call. Today's speakers are João Vitor Menem, Inter's CEO, Alexander Riccio, Senior Vice President of Retail Banking, and Santiago Stel, Senior Vice President of Finance and Risks. Please be advised that today's conference is being recorded and a replay will be available at the company's IR website. At this time, all participants are in listen-only mode. After the prepared remarks, there will be a question and answer session. For this session, we ask you to write down your question via the Q&A icon on your screen. Your name will then be announced, and you will be able to ask your question live. At that point, a request to activate your microphone will appear on your screen. If you do not want to open your microphone live, please write down no microphone at the end of your question. In this case, our operator will read your question for you. Please note that there is an interpretation button on your screen where you can choose the language you want to hear, English or Portuguese. Throughout this conference call, we will be presenting non-IFRS financial information. These are important financial measures for the company but are not financial measures as defined by IFRS. Reconciliations of the company's non-IFRS financial information to the IFRS financial information are available in inter and co. earnings release and earnings presentation. Appendix. Today's discussion might include forward-looking statements which are not guarantees of future performance. Please refer to the forward-looking statements disclosure in the company's earnings release and earnings presentation. Now, I would like to yield the floor to Mr. João Vitor Menem. Sir, the floor is yours.

Thank you, operator. Hello, everyone. Thanks for joining us for our first Q&A release. As we generally do, I will start with a quick overview of our strategy to then pass it to Shanji and Santi that will cover the rest of the presentation. I will then close with a final remark and open it for Q&A session. Jumping to page five. I will start with a quick update on this quarter performance and how this connects to our North Star, which is the 63030 plant. I'm glad to say that we reached almost 32 million clients this quarter. This increase in number of clients came together with an increase in our activation rate. We reached 55%, an improvement of 86 bits just this quarter. On efficiency ratio, we continue making great progress quarter by quarter. It stands today at 47.7%, which implies a strong improvement of 3.6 percentage points again just this quarter. And last but not least, our ROE is approaching the two-digit mark, closing the first quarter at 9.7%. We think this number is even more remarkable considering the high level of excess capital we hold. As I mentioned in the last earnings call, we are proud to be ahead of our North Star plan. It is strategically important for us to continue to be ahead of the plan while continuing to grow and innovate. Now, moving to page six. Here we see Inter from a growth perspective and how we are disrupting the Brazilian banking market. We can see this disruption from three angles. First, on clients. We have experienced strong expansion in our client base, with a steady increase in the number of customers choosing to transact in our platform. Second, on loans. Our portfolio has been growing steadily. as more individuals and business finance their needs through our lending options. Third, on revenues, we have achieved robust growth, driven by increased client monetization across fees, savings, and credit products. This result shows how Inter is delivering alpha by consistently over-delivering growth across client, balance sheet, and income statements. metrics. Moving to page 7, here I will cover our main business achievements this quarter. There are three particular things I would like to highlight. First, look, we are disrupting an outdated industry by integrating our existing verticals into a comprehensive rewards program. This initiative aims to drive client engagement and spending in our entire ecosystem. Second, we are scaling up our new private lines. These are mainly fixed financing and buy-now-pay-later in our infoshop. Lastly, we are strategically building our globe accounts. We're doing this by leveraging the robust app infrastructure we have established in Brazil and replicating it to the U.S. These three groups of business opportunities are strategically important to continue reinforcing the power of our financial super app. And to conclude on my side, before handing over to Shanji, I'd like to point the three priorities that we have for the remaining of 2024. First, on the growth side, we expect to continue growing clients, loans, deposits, and top-line revenue. We will do that by continuing to innovate and delight our clients. Second, on the business side, we remain focused on increasing client engagement and principalities. We are doing that by offering the broadest digital solutions on the market. Lastly, on the financial side, our priority is to continue to improve operational leverage and expand our NIM. Streamlining our operations, optimizing the efficiency, and improving the portfolio mix, we aim to enhance profitability and financial growth. We believe that these factors will allow us to continue operating in a positive trajectory that balance growth with profitability. Now, Xande will walk you through our business updates. Thank you very much.

Thank you, João. Good afternoon, everyone, and thanks for joining us today. As Ron mentioned previously, from day one, we have been disruptors in the banking industry, allowing us to gain market share in one of the largest banking markets in the world. Our focus on innovation has been instrumental to our success. The first quarter of this year was not different. We once again welcomed 1 million new active clients, bringing our total increment to 3.9 million in the last 12 months. This growth is on par with the previous 12-month period, however, with a 340 basis points higher activation rate. All of this while maintaining an extremely comfortable level of customer acquisition costs. This consistency in growth has put us in a very good position to compete in our industry. And each day, we see market share gains across the markets we participate. Moving to page 11, we can see that the day-to-day banking remains the backbone of our financial super app. Total TPV increased 42% in a year-over-year basis. This reflects the strong growth and adoption of our platform. This quarter, volumes from credit cards surpassed debit for the very first time. This shift contributed to a stable interchange revenue, even when compared to the seasonally strong fourth quarter. When looking at cohort basis, we observe an encouraging trend. Newer cohorts show a steady increase in spending, reflecting their growing engagement with our offerings. Simultaneously, older cohorts continue to demonstrate robust growth as they mature. Moving to page 12, I'll talk about Intershop, insurance, and investments, all of which had great performance this quarter. Starting with Intershop, we were able to resume GMV growth while increasing net take rate. We delivered 1 billion GMV. in a quarter typically marked by seasonal contraction. On insurance, we also had another great quarter, reaching more than 404,000 sales and 1.9 million active clients. These operating numbers supported a record-breaking 52 million reais in net revenue for insurance. On investments, Our cutting-edge product offering resulted in an impressive 61% year-over-year growth and an AUC reaching 95 billion reais. On the global front, we're successfully replicating one of our most important competitive advantages, but now in the U.S., our strong deposit franchise. Our assets under custody and deposits in U.S. dollars have reached the impressive milestone of $460 million, reflecting a remarkable 223% year-over-year growth. We achieved almost 3 million clients in a vertical that is strategically important given its typical customer profile. I'd also like to emphasize that this quarter, we introduced a new investment option for our clients, time deposits. Despite being a recent addition to our lineup, we're thrilled to see the rapid adoption and growing interest in the product. Jumping into our seventh vertical, loyalty, we achieved 6.6 million active clients. bringing a net increase of 1.2 million. Loop, as we call it, is an evolution of our cashback program and had one more quarter of success. A few highlights are we have rolled out more than 40 missions to enhance client spending, engagement, and activation. These missions influenced the behavior of nearly 1 million clients. Second, we have observed that loop clients have a spending lift of 66% as compared to non-loop clients. Third, we are consolidating all sources of cash back into points, and customer feedback has been extremely positive. And last, from a financial perspective, we are observing a variety of benefits that go from profits made when selling points to interest earned on float to making spreads when points are burned we're excited with all possibilities loop will keep bringing us especially after the launch of our new experience a week ago finally Before giving the floor to Santi, I want to talk about the expansion of our new credit lines. First, we're observing consistent growth in PIX financing. Second, our buy now, pay later offering is fine-tuned and gaining traction, supporting GMV expansion in Intershop. These two products, along with bill pay financing, cash financing, and overdraft, are growing and showing great potential. Delinquency readings are within our expectations. We're continuously fine-tuning user experience and flexibilizing credit policies to make the offering more broad. There is a lot of room to grow within our base. The portfolio reached 170 million in the quarter and is evolving at an encouraging pace. Now, I'll pass the word to Santi to present our financial performance.