Inter & Co. Inc.

Good afternoon and thank you for standing by. Welcome to Inter & Co's second quarter earnings conference call. Today's speakers are João Vitor Menem, Inter's global CEO, Alexandre Richo, Brazil CEO, Santiago Stel, Senior Vice President of Finance and Risks and CFO, and Rafaela Vittoria, Chief Economist and IRO. 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 & 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 Menon. Sir, the floor is yours.

Thank you, operator. Hello, everyone. As usual, I will begin with a brief overview of our strategy before handing over to Shanji and Santi that will cover operational and financial metrics. But before we begin, I want to express my gratitude to Shanji, our new Brazil CEO. Shanji, I'm confident that you will continue to do an amazing job in your new role, leading our business in Brazil into a bright future. Now let's deep dive into second quarter results. I'm very happy with our deliveries in our 6-30-30 plan this quarter. I can affirm that the combination of growth and profitability is propelling us to new heights. Once again, we are demonstrating our ability to deliver remarkable results by focusing on execution day after day. While constantly pushing for innovation and new ideas, we also delivered strong financial performance, ensuring that our business is here to last. I would like to express my gratitude and admiration for our group of 3.8 thousand employees. We are very proud to see that our company is producing alpha in the Brazilian banking market. A clear way to see this is in the pace of growth that we had in very important portfolios. We are growing multiple times faster than the industry, such as eight times faster in individual accounts and four times faster in FGTS loans. This reflects the beauty of our financial super app. and the great ability to attract clients and cross-sell our products within the platform, therefore maximizing our market share gains. To really understand what I'm trying to say, let's spend some time on page seven. We can see here the opportunity we have to fish in our own aquarium. We have scaled at the most difficult part, getting clients on board and building the product offering. now if we keep growing at the same pace for the following years we can reach greater market share just by fishing in our own aquarium meaning getting more business from our existing clients obviously on top of that we will continue bringing new clients as we have done consistently for many years As you know, we have one of the most complete product offerings in the market, serving multiple client profiles in one single app. To maximize conversion of our products, we rely on a strategy that are based on hybrid personalization, best-in-class UI and UX, and a unique digital journey for every moment inside the app. Shanji will present the details later, but just to give you a little sneak peek, our insurance vertical printed the best quarter ever thanks to the amazing impact of integrated data, target campaigns, and the strength of our connected platform. What I mean with that is we are seeing incredible results by leveraging our data effectively and constantly pushing the boundaries of innovation. I'm personally passionate about the client experience and driving innovation. We will continue to enhance our UX and UI and introduce new features to provide the best possible experience. Moving to page nine, we can see our seven verticals powerfully working together. As an engineer myself, I like to say that all cylinders are working in perfect coordination. And this makes me confident on the continued success of our platform. By providing a complete range of personalized products to each client, we observe amazing outcomes across all verticals, which Shanji will deep dive in the next phase. Shanji, please go ahead.

Thank you, João. Good afternoon, everyone, and thanks for joining us today. First of all, I'm extremely proud to assume the role of CEO Brazil and leading our operations. Having been part of Inter for 11 years, I can say that I have a deep passion for everything we have built so far and of what lies ahead. João, once again, thank you for your support and trust, as well as of your forward-looking vision that constantly pushes us to be innovation pioneers. Going into the results, I'll start by focusing on the most important topic, our clients. We're happy to announce that once again, we welcomed 1 million new active clients this quarter. This figure has led to a sixth consecutive quarter of increasing activation, now standing at 55.3%. Throughout the second quarter, we achieved a total of 33 million clients, successfully increasing the client base by 1.6 million. This demonstrates our ability not only to increase activation among existing clients, but also to attract a new pool of qualified clients who are activating faster and engaging more with our platform. In addition to the total clients, I would like to introduce everyone to some details of our business clients. We currently have over 2 million business accounts growing at a fast pace of 21% year over year. These 2 million clients are highly engaged with an impressive activation rate of 80% in addition to higher deposits, TPV and interchange levels. Last month, we announced the closing of the acquisition of Granito, renamed to Interpag, our acquiring business. We're excited about this transaction as we now will be able to fully integrate the business into our ecosystem. The transaction brings a long list of opportunities. Three examples are, first, cross-selling our banking products to all of Interpag's merchant clients. Second, cross-selling acquiring services to our existing base of merchants and individuals hundreds of thousands of which already flow their acquiring receivables into our account. And third, building powerful bundles of banking and acquiring services to address retail clients currently under-penetrated in our base. In summary, we see opportunity ahead of us and are already moving to capture it. Turning our attention to page 12, the total TPV has shown a remarkable increase of 47% year over year, reaching R$290 billion. Specifically, when we consider transactions made through PIX, we transacted over R$266 billion in a single quarter, capturing 8% market share of the total number of transactions. Also important was that, for the second consecutive quarter, volumes and growth from credit cards have surpassed debit, resulting in higher interchange revenue and further improving the TPV mix. Moreover, as we have consistently seen in the past few quarters, we're continuously increasing TPV levels among both new and existing cohorts. This demonstrates the growing engagement of our customers with our product offerings, ensuring continued success. Moving to the credit side, I want to provide a brief update on our new credit lines expansion. Pix Financing, Buy Now Pay Later, and our other unsecured lines. In the quarterly comparison, we had an inspiring increase of almost 90%, reaching a combined of 330 million reais in portfolio. This is one more important step in bringing our unsecured products to full potential. In the beginning of the third quarter, we expanded our PIX financing offering to the entire credit card base. One more element to sustain growth. Moving to page 13, in the e-commerce vertical, we have achieved the best growth level of the post-pandemic base. In the annual comparison, we increased our GMV by more than 50%, surpassing R$1.1 billion in the quarter, with more than 3 million clients making purchases within the period. On loyalty, a vertical that completed one year in June we achieved impressive 8 million clients, demonstrating our strength in launching and growing new products that have strategic fit with our platform. Those clients are highly engaged, spending 2.7 times more than non-loyalty clients and generating an RPAC that is 1.7 times higher. Moving to page 14, on the insurance front, we are very happy to report one of our best quarters ever. Our sales have exceeded 1 million for the first time ever, far exceeding what we have experienced in the previous quarter. And we have seen a 39% quarterly increase in the number of active clients. As a result, we now have 2.6 million active insurance clients, an amazing number. We're also proud to have successfully launched new products in this vertical, such as the FGTS Loan Insurance. This product integrated seamlessly into the FGTS Loan product user experience, and is a great example of our hyper-personalization strategy, as previously highlighted by João. Turning our attention to the investments vertical, we had a quarter of encouraging growth. Within a year, we have increased the number of active clients by around 60%, reaching 5.7 million. Furthermore, we have surpassed a significant milestone of 100 billion reais in AUC for the first time and are already close to 110 billion. This achievement showcases our cutting edge product offering in this vertical and the evolution of our distribution capacity. Moving to the next page, last but not least, on the global front, as mentioned by João, we're continuously advancing in replicating one of our key competitive advantages in the US, our robust deposit franchise. We're excited to report that our assets under custody and deposits in US dollars have reached the milestone of $516 million, reflecting an extraordinary 133% year-over-year growth. This achievement underscores our strong performance in the US market. Within this vertical, we have successfully acquired 3.3 million clients, comprising of higher income Brazilian clients who frequently travel and invest in the US. This means a higher quality customer profiles in terms of spending, engagement, and RPAC levels. This growth and engagement in our global operations encourages us more and more to dedicate to expanding our reach and delivering valuable financial solutions to our clients, regardless of geographical boundaries. With that, I'll pass the word to Santi, who will cover the financial performance section.