Inter & Co. Inc.

Good afternoon, and thank you for standing by. Welcome to Inter & Co.' 's third quarter of 2024 earnings conference call. Today's speakers are João Vitor Menem, Inter's Global CEO, Alexandre Richo, Brazil CEO, Santiago Stel, Senior Vice President and CFO, and Rafael Vitoria, 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 InternCo's 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 give the floor to Mr. João Vitor Menon. Sir, the floor is yours.

Thank you, Operator. Hello, everyone. Thanks for joining us on our call today. As always, I will start with an overview at our strategy before giving the floor to Shanji and Sanchi. Today, I would like to spend some time sharing my thoughts on how unique our financial super app is. I see it as having three key dimensions. First, our differentiated platform. It is complete, has the best UX UI, with a 4.8 rating in Apple Store. It goes far beyond banking and it is global by offering our products across many countries. Second, the massive number of clients that transact with us. We're proud of having reached 35 million clients, producing a massive level of interaction inside our ecosystem with, for instance, 15 million logins per day. And last but not least, the high level of principality. As most of you know, the relationship with our clients starts with the digital account, which has helped us drive principality, and from it, drive upsell and cross-sell into credit and services. These two dimensions shows how powerful our platform is. It creates a strong network effect that will enforce a virtual cycle that combines growth with profitability. To show the power of this network effect, we show how we were able to generate alpha across many verticals. People don't just use banking services. They engage across our different businesses, credit, investments, insurance, shopping, global, and look, our loyalty program. In each of these areas, we are growing at a much faster pace than the market. Two great examples are FX transactions. We are growing 74%, or 3.8 times more than the market. And credits, which are growing 3.5 times faster than the market. while consistently expanding our NIM and keeping sound asset quality metrics. In summary, this page shows our exceptional ability to attract clients and cross-sell our products, capturing market share gains. Promoting cross-selling, upselling, and engaging clients is one of my focuses. To achieve this, we work strongly to remain innovative. pushing the frontier of technology and bringing new solutions to our clients. We'd like to name a few of our recent initiatives in the innovation front. First, the hyper-personalization. We're getting better and better every day. And we're seeing excellent results by driving conversion and increasing sales. Second, the AI-powered Intershop concierge. It drives traffic and monetization in our e-commerce platform. We will be launched in our next Black Friday, and we have high expectations to continue driving growth of Intershop and soon into other verticals. Third, the forum, our content platform. which was launched last quarter and has now over 5 million users. It is designed to discuss personal finance, investments, market trends, product launch, tips, and much more. It's a new way to engage within the financial super app and promote cross-selling while fostering a sense of community among our clients. When it comes to engagement, our focus on clients has resulted in several impressive milestones. We achieved more than 1.2 trillion reais in a run rate TPV, showing how our clients use the platform daily in an exponential way. We also reached 122 billion reais in AUC, of which 50 billion reais in deposits, a great indicator of how much our clients trust us. To give a sense of dimension, we received around 21,000 deposits per hour this quarter from more than 18 million individual depositors. And we already have over 3.6 million clients investing, saving, buying, and banking in the U.S. We're changing the way people bank globally. Today, we can clear international transactions within a few seconds. The great thing about all of this is that there is much more to come, to improve and to explore. In summary, what I presented gives me strong confidence and excitement on what lies ahead. We have been working very diligently on executing the plan, quarter after quarter, and the results are paying off. Combining profitability with innovation has proved not only to be possible, but also an excellent recipe to remain competitive. As you can see on the page, the results of the 630 plan are very strong and speak for themselves. Now, I'd like to give the floor to Xande, who will provide more details about our opportunities and achievements in each of our verticals. Xande, please go ahead.

Thank you, João. And thanks everyone for being with us. I'd like to begin by focusing on those who are the center of everything we do, our clients. We're excited to report that we have reached 35 million clients and welcomed 1.1 million new active clients this quarter. For seven consecutive quarters, we have successfully increased our activation rate, which now stands at 56%, the highest since the fourth quarter of 2021. Our refined onboarding process, combined with the app's hyper-personalization, has significantly improved our ability to engage clients after the onboarding conclusion. For example, between the third quarter of 2022 and the third quarter of 2024, our early activation ratio increased by 12 percentage points, going from 40 to 52%. I would like to focus on our business clients. As we have highlighted in previous quarters, we believe that traditional banking solutions for businesses are falling short of effectively meeting their needs. This is an opportunity for us, and we're seizing it. We've seen growth once again, with the number of business accounts increasing by 22% year over year, reaching 2.2 million. representing a 10% penetration in all businesses across Brazil. Our focus has been particularly strong among small and medium-sized businesses, which tend to exhibit higher activation rates and RPAC. We're dedicated to enhance client experience in this segment, recognizing the opportunity it presents. Now moving to slide 13, I'll deep dive into our seven business verticals. In banking, the TPV has shown an increase of 46% year over year, reaching 320 billion reais. Transactions made through PIX total 294 billion reais in a single quarter, with Inter capturing 8.1% of this market. This quarter, volumes and growth from credit cards have once again surpassed those from debt, resulting in higher interchange revenue and consolidating the improvement of quality of our TPV. The improvement in this mix has led to a 38% year-over-year increase in interchange revenues. Moreover, as we have consistently observed in the past two quarters, we're continuously increasing TPV levels among both new and existing cohorts. This is a direct result of our strategies to better understand our clients' life cycles and use the right tools at the right moments to engage them effectively with our products. Now moving to credit, I'm pleased to report strong growth in our new credit lines. consumer finance 2.0, which includes fixed financing, buy now, pay later, and overdraft. In a quarterly comparison, we saw a solid 52% increase, reaching a combined total of 503 million reais in portfolio. This quarter, we expanded our products to a broader client base and implemented user experience improvements that are already yielding results such as acceleration of adoption and higher duration in the portfolio. We expect to maintain healthy growth in these product lines. Shifting to our marketplace, the third quarter had an encouraging performance with a growth in an annual basis of 59% in our GMV that reached 1.4 billion reais. Our hyper-personalization approach is increasing our conversion rates for sales as the offerings that each client sees are more and more aligned to their moment. Additionally, our buy now, pay later product achieved around 6% of the total GMV, an impressive number for a payment method that is still new for many of our clients. Regarding loyalty, we achieved 10 million clients, continuing Loop's growth path. This quarter, we launched new ways to redeem points, including fixed insurance and soccer tickets, leveraging our strategic partnerships in soccer. Moreover, clients can now earn points by spending with debit cards in their global accounts. We continue to see loop clients as more engaged than non-loop clients as they generate a two times higher RPAC. In investments, we surpassed R$122 billion in assets under custody, serving over 6.3 million active clients in the vertical, which represents a 50% increase year over year. This was the fastest increase in AUC that we have observed in a single quarter. Piggy Bank, or Mil Porquinho in Portuguese, has demonstrated an impressive adoption and achieved over 2 million clients and 48% quarter-over-quarter growth in AUC. This product has become an important funding distribution asset for Inter. reaching 3.4 billion in AUC and accounting for nearly 7% of our total funding. On the insurance front, we continue to witness accelerated growth. Our sales have now surpassed 1.3 million, driven by new growth initiatives. Furthermore, this quarter we achieved 3.4 million active contracts in insurance. with 115% year-over-year growth in a high-margin vertical, all supported by our asset-light and highly scalable business model. Additionally, our focus on hyper-personalization has unlocked numerous opportunities within this vertical, enabling us to deliver the right products to the right clients and significantly boost our sales, even for niche offerings. Finally, on the global front, our deposits, along with assets under custody and assets under management, have reached the milestone of $1.4 billion, as we now are able to offer managed accounts for our clients investing abroad. This achievement is an important milestone and an evidence of our strong performance in the U.S. business. Within this vertical, we have reached 3.6 million clients, which are typically higher income Brazilians who frequently travel and invest in the U.S. This growth and engagement in our global operations affirms our dedication to expanding our reach and delivering valuable financial solutions to our clients, regardless of geographical boundaries. Now, let's turn to page 22. In this light, we zoom into the evolution of products that have more than 1 million active clients. As we evolve, we've been able to reduce the cycle time to achieve large-scale adoption of the products we launch, reflecting not only client engagement, but also our ability to make the right choices and to execute properly our product strategy. This progress is an evidence of the three-dimensional approach that Ron highlighted earlier. Most importantly, this momentum is translating into noticeable improvements in our market share for several products, enhancing our competitive positioning in the industries we participate. Talking about market share, on page 23, we dive in our share evolution for a few products. One year ago, we held a significant PIX market share, showcasing the highly engaged clients based within our financial super app. We emphasized that an important part of our mission was to close this gap between PIX share and our share in other products. The results have been positive. We're effectively providing our clients with access to our extensive product range and increasing our share of wallets. Important to highlight that this evolution is happening both on credit and fee businesses. One more evidence of our well-executed three-dimensional strategy. As we continue to expand our product offerings and enhance client engagement, I am confident that we'll further solidify our position in the market. to finish on slide 24 we show that despite the significant evolution market share we're just beginning our client-centric approach boosted by hyper personalization optimize our sales efficiency as we fish in our own aquarium there is still significant potential to grow business by conquering share of wallet and on top of that we maintain our focus on new client acquisition We believe that maintaining product evolution, improving client service, and having an edge on our overall value proposition will be key to maintaining the positive trends to deepen market share and increase principality. Now, I would like to pass the word to Santi, who will take us through the financial section. Santi, the floor is yours.