Inter & Co. Inc.

Good afternoon and thank you for standing by. Welcome to Interim Co.' 's fourth quarter of 2024 earnings conference call. Today's speakers are João Vitor Menem, Inter's applicable CEO, Alexandre Richo, Brazil CEO, Santiago Stel, Senior Vice President and CFO. 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 type no microphone at the end of your question. In this case, our operator will read your question out loud. 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 enter 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 Menin. Sir, the floor is yours.

Thank you, operator. Hello, everyone. Thanks for joining our fourth quarter earnings call. This is a very special earnings call for me. Let me tell you why. This year alone, we delivered more profits than in our entire history combined. I will repeat, 2024 net income was more than our prior years combined. I believe that this is a proof of the success of our business model. which we designed back in 2016 when we launched the first digital bank in Brazil. It also gives me strong confidence that we are in the right path. Following my remarks, Shanji and Santi will cover the operational and financial results for the quarter and year. Our business model has the beauty of combined growth and profitability, resulting in a positive network effect. Each new cycle reinforces the power of the platform, creating a virtual cycle. This is how it works. Our complete product offering, combined with a best-in-class UX, helps us attract and engage clients. The more clients we have, the more efficient we become. Our low-cost structure allows us to price our products competitively. Operating in a capital efficient manner, together with strong share in services, we increase profitability and ROE. And this growing profitability enables us to keep innovating. As this cycle repeats itself, the platform becomes stronger and stronger. Jumping into 2024, let me provide a few highlights of the year. On the credit front, we made significant progress with our 100% digital payroll offering, which now accounts for more than 50% of the new underwriters. We also continued scaling our consumer finance 2.0 portfolio and aim to increase the penetration rate within our current clients. Regarding products, Forum, launched in Q3 2024 now has millions and millions of users who share investment tips, news, and stay updated on interest products. Our commerce platform had an outstanding year in which we were able to crack the codes on combining commerce with finance. Loop, our loyalty program, is expanding its options for earning and redeeming points. and has surpassed 11 million clients. Now, let me take a moment to discuss our global expansion. By the end of 2024, we reached 3.9 million clients using our global account. This success comes from our attractive value proposition. Our global account makes it very easy to invest, travel, send money internationally, and more. We also expanded our offerings, with the highlight being the launch of our dollar credit cards last December. 2024 was also a year of welcoming new talents to our team, enhancing our skills and capabilities. Rui Leandro and Marcelo Dantas joined the finance team. Monica Saccarelli and Fernando Baquin came on board on the business side. Our newest hire, Marco Antonio Araújo, joined as our global head of legal. Xande was promoted to Brazil's CEO in the middle of the year. And also, Rafa Vitória stepped in as the new IR officer. Gui Ximenez, who held the CTO role since the launch of our digital bank, became our CIO last December. He is now our chief information officer. Flavio Queijo expanded his responsibilities and now manages the real estate portfolio, FGTS, and payroll loans. On the board side, we added Jim Allen, former Morgan Stanley senior banker. Additionally, on the advisory side, Nicola Calicchio, former McKinsey head of Brazil, is helping us as a senior advisor to the executive team, while Fernando Ferrari advised us on Treasury and ALM. To conclude, we successfully executed the second year of our 6-30-30 plan, which is key to continue growing and innovating our platform. Now, I'd like to hand it over to Shanji, who will provide more details on the business side. Shanji, please go ahead.

Thank you, João. Hello, everyone, and thank you for joining us today. I'll go through an update of our seven business verticals, which together build our super app platform. As Ron said on the virtuous cycle, we have created a powerful network effect, with clients actively using our account, credit, investments, insurance, marketplace, and global services, all tied together by Loop, our loyalty program. This engagement across our financial super app enables us to effectively cross-sell our products and continuously increase our market share. Attracting customers is a key priority for us, and we're proud to finish one more year adding more than 4 million clients while boosting activation. We finished 2024 with over 36 million clients, achieving a 57% activation rate. Throughout the year, we successfully welcomed more than 1 million new active clients each quarter. Our business clients grew by 21% year over year, reaching a total of 2.2 million. They show high engagement and increased our PAC levels. Now, moving to the next slide, let's take a deeper look into our verticals. In banking, TPV has increased by 45% year-over-year, reaching 1.5 trillion reais run rate in 4Q24. Transactions made through PIX totaled 1.1 trillion reais for the year. In the fourth quarter, Inter gained an additional 14 basis points in PIX market share, reaching 8.3%. Our mix between credit and debit volumes continues to improve, with credit card transaction growth surpassing debit card transaction growth, leading to higher interchange revenues. TPV levels across cohorts is steadily increasing, with newer clients transacting more and faster than older clients. On the credit front, we want to highlight the Consumer Finance 2.0 portfolio, which includes fixed financing, buy-now-pay-later, and overdraft. We started to scale this portfolio this year, and now it stands at almost 700 million reais, a 38% growth quarter over quarter. We're seeing consistent performance from these products from a credit quality perspective, eliminating the need to slow down our underwriting. While we remain cautious in our risk appetite, We found opportunities to underwrite card limits as our credit models continue to evolve, allowing us to better understand our clients. Speaking of client behavior, another innovation this year was the launch of our credit hub, as called CLIM, where clients can follow a step-by-step journey to earn their credit card limits with us. These steps involve actions like bringing their salary, direct deposits to Inter, paying bills before the due date, and more. We allocate small limits as clients complete these steps, and by the end of the journey, we have enough data to provide them with the appropriate credit card limit. Moving to investments on the next slide, we see that AUC increased by 54% on a yearly basis. with active clients growing to over 6.8 million. For the second consecutive quarter, we had record growth in AUC. One highlight of this quarter is that we achieved 20% market share in the number of investors of Tesouro Direto, which is Brazil's Treasury Direct. On the next page, I'll talk about insurance. The performance of this vertical was remarkable in 2024. the charts on the left hand side show the significant growth and penetration we can achieve with the right targeting quality products hyper personalization and contextualized journeys we reached over 5 million active contracts with more than 5 million units sold in 24 achieving a 312 percent growth in the year we raised the bar with the introduction of FGTS life insurance, and Sochezinha, two low-ticket but recurrent products that we offered within existing product journeys. This strategy involves zero marginal cost to attract clients, taking full advantage of our integrated platform. Shifting to our marketplace, we had an exciting year with a 79% year-over-year growth in net revenues, 42% growth year-over-year in GMV that reached nearly R$5 billion, and all that done across more than 6 million active clients. In the fourth quarter, 7% of our on-us GMV was generated through buy-now-pay-later, reinforcing our cross-selling opportunities. This unique combination enables us to leverage our fee revenues while also generating interest income from higher margin unsecured credit operations. In the next page, we highlight our global expansion continuous growth. We reached 3.9 million clients, which is 19% of our active base. The deposits balance increased by 52% in one year. Within this vertical, we typically serve higher-income Brazilians who typically travel and save money in the U.S. We continue evolving on the product offering by replicating the Brazilian products into the U.S. account. Recently, we launched our dollar-denominated credit card, points for our U.S. dollar debit card, purchases, and new investment products. On the next stage, we talk about Loop, our seventh vertical. We finished 2024 with over 11 million clients and continue to evolve in ways for people to earn and burn points. Clients can now redeem points for extra cash back on purchases in our marketplace, transfer points among family and friends, redeem points for PIX insurance, and more. Clients who engage consistently with Loop are among those that are most active within our platform. In the next slide, we talk about market share and show some of the evolution that we've been able to deliver in a few of our products. PIX market share, which reached 8.3%, continues to be a benchmark we use to set the ambition of market share potential for the other products. We are excited with the evolution, both in banking and in non-banking products. Three highlights are FX transactions, the balance of our home equity portfolio, and our FGTS loans, products that are strategic for engagement and profitability. We are confident in our capacity to continue expanding share, and you'll see part of why on the next slide. I finished the business section showing how much room we have to grow. We're operating in markets with enormous stamps and having a large client base facilitates access to a good part of this market. And it explains why our share is moving so fast. Strategies like hyper personalization for activating and retaining clients have optimized our sales efficiency. We're confident that our continuous product evolution, improved client service, and enhanced overall value proposition are key to sustain our positive trends. Now, I would like to pass the word to Santi, who will take us through the financial section.