Inter & Co. Inc.

Hi everyone, I'm Rafa Guetora, IR Officer at Inter, and I would like to welcome all to Inter & Co's first quarter, 2026, earnings conference call. First of all, some instructions. This call is also available in Portuguese. To access it, press the globe icon on the lower right side of your Zoom screen, then select the Portuguese room. Please be advised that all participants will be in listen-only mode and that the conference is being recorded. You may submit online questions at any time today using the Q&A box on the webcast. A replay will be available at the company's IR website. With me today are João Vitor Meni, our Global CEO, Alexandre Iesso, our Brazil CEO, and Santiago Stel, our CFO. To start with the CEO overview, I would like to invite João. João, please go ahead.

Thank you, Rafa. And thank you for joining us today to discuss our first quarter results for 2026. As you can see, we had a strong start of the year. And our first skill results reaffirm our path to sustainable and profitable growth. We have a strong momentum across several metrics. Some examples are our gross loan portfolio scaled to more than 50 billion reais. Our structural profitability is taking shape. Our net income reached almost 400 million reais on first kill and on a run rate of 1.6 billion on a year base. More than 1.7 trillion reais in run rate for the CPV on this first quarter. Sanji and Sanji will join me later on to elaborate more on that. And I want to highlight that these results were at the same time executed with discipline and they connect to our vision for the future. During Ernie's call, I usually speak about the strategic view of Inter, our vision. However, next Monday we're hosting our Honors Day and I will save the big picture for that event. which I am personally very excited about. We will showcase our ambition to lead through innovation and deliver growth and profitability together, creating a sustainable business model for our owners. I really encourage you to join us next Monday at NAPEC. For the first time, we will have our senior leadership sharing the perspectives on topics such as client principality, credit penetration, monetization through upsell and cross-sell, and of course, our latest tech evolutions. How we are unlocking the AI opportunities at Infer. We will discuss our vision, our financial strategy, our execution plan, and the core enablers behind all of it. As you are already familiar, In every earnings day, I like to present not only the financial KPIs, but also new products and solutions that we deliver to our clients. This quarter, I want to highlight the announcement we just made two days ago. For those who haven't seen it, we just launched SEVEN, our new multi-agent AI tool. It has massive potential. Because it is not just a user interface. It is a powerful agentic platform built from the ground up. It connects the full power of our data infrastructure to deliver the absolute best client experience. Since 2025, our AI evolved from simply answering questions to actually getting things done. It's now a fully transactional AI tool. Clients can ask for investment advice, make PIX transfers through texts, and also buy gift cards. They can also manage credit card installments and much more. 7 makes even the most complex products incredibly simple to understand and use. Here you see the full picture of it during our owner's day. where we will present how 7 plays a crucial role in our business model going forward. Now, I want to invite our Brazil CEO, Xande, to present the business update for the first Q of 2026. Xande, please, go on.

Thank you, João. We're excited to share our long-term plans with all of you at the owner's day on May 11th. But first, Let us dive into our first quarter results. Let me start with our client base. Our total number of clients keeps growing, and our base is stronger than ever. We reached 44 million total clients. We just achieved our highest quarterly jump in activation rates since 2024, reaching almost 60%. People are not just opening accounts. They're actively using them. We're achieving this high engagement while maintaining a deliberately disciplined low customer acquisition cost. Our absolute focus remains on increasing principality and becoming the primary bank for every single user. This means increasing cross-sell and driving much higher monetization levels. That's another topic we will explore during our upcoming owner's day. These high activation levels translate directly into massive payment volumes. As you can see in the cohort chart on the right side of the slide, our clients are transacting more than ever before. In the first quarter, our combined cards and PIX volume reached 1.7 trillion reais run rate, with a 25% growth year over year. We're the solution people use for their daily needs. Because of this daily engagement, 8.5% of the PIX transactions made in Brazil flow through Inter. Moving to the credit side, we continue to see healthy and balanced growth across our entire credit portfolio. We're growing fast at more than 30% year-over-year, but we're doing it in a diversified way. Nearly 70% our portfolio is secured with some type of collateral. We do this by balancing our growth across products like mortgages, payroll loans, and credit cards. This strategic mix ensures steady returns are protecting our asset quality. Private payroll has been our main highlight over the past year. We maintain a positive view on this product. We reached 2.5 billion reais portfolio and 600,000 active clients. This shows the true strength of our digital distribution and our ability to scale a new product quickly. On credit cards, we are making progress in increasing the volume of the installments and the overall interest earning volume. We call this process reshaping. These interest earning portfolios now represent over 25% of our credit card portfolio, up from 21% last year. Revolving grew as clients are no longer mandatorily moved to installments. Santi will provide more details on our strong loan book performance later. I'll finish with a view on our market shares. business keeps increasing materiality consolidating our position as a high volume high engagement platform for dozens of millions of people because of our complete ecosystem we're gaining market share across every key product whether you look at peaks credit cards mortgages or investments our numbers are climbing steadily our foundation is solid and we're ready to build another solid year and an even more remarkable future. Now, I'll pass the word to Santiago, who will detail our financial performance. Thank you, Xande. Hello, everyone. Let's jump into financial performance. As Xande mentioned, our loan portfolio is growing at a strong pace. We nearly reached 50 billion reais, which is a 33% growth in the last 12 months, or 3% relative to last quarter. If we exclude the SME portfolio, which has short duration and usually decreases during the first quarter, our growth is even stronger at 37% year-on-year and 5% versus last quarter. In terms of low balance per active client, a very important KPI that drives ARPA growth, we remained at 1,930 HEIs following a very strong growth in the prior quarter. Now let me break down this growth by each of the products, starting with the bottom of the page. On the real estate side, mortgages grew 42% year-on-year, while home equity grew an impressive 43%. On the payroll and personal loans portfolio, which includes both private and private payroll, we grew 38% year-on-year. The highlight in this group was private payroll, which reached 2.5 billion reais portfolio, just as Sandy highlighted before. Finally, credit cards grew 27% year-on-year, supported by solid risk management and continued progress from our reshaping strategy, driving improved monetization and profitability in the product. To close this slide, it's worth highlighting that we have three products growing at nearly 40%. At the same time, credit cards are growing at around 30% year-on-year. This enables us to continue building a powerful balance sheet, driving NIM and ARPAC expansion while maintaining strict control risk management. This fast loan growth we just covered came together with sound asset quality metrics. We had three factors playing out in this quarter. On the macro side, as you all know, delinquency in the system is increasing. On seasonality, first quarters tend to have a bit more pressure in these metrics. And third, on growth strategy, we are growing private payroll, plus working on cars reshaping, which pay off in new sites, but do pressure on the asset quality metrics. All these factors put together, we have increased in MPLs from 4.7% to 5.1%. In terms of NPL and Stage 3 formation, we had a stable quarter, having almost the same metrics as we had in the prior quarter. In terms of cost of risk, though it did increase as consequence of private payroll being in our books for several quarters, you can see that excluding it, it remained fairly flat during the past three quarters. Lastly, on credit cards, our cohorts continued to perform well, significantly better than two to three years ago, and now with much greater monetization. Moving to the funding side, our total funding reached 74 billion reais, which is a 25% annual growth. Another great number to highlight is the loans to deposit ratio. It increased four percentage points in one year, as our loan growth is expanding faster than our deposit base. Our deposits per active client remain strong, sitting above €2,000 per active client. The slight decrease in the first quarter is seasonal. This happens when compared to the fourth quarter when people received their 13th salary and year-end bonuses. Our annual growth was driven primarily by time deposits. Due to the high level of the Selic rate and the ongoing success of my piggy bank product, that now has over 5 million clients. As we said many times in prior calls, our strong funding franchise remains being one of our key competitive advantages, given that our cost of funding remains one of the lowest and most stable in the industry. While market rates fluctuate very strongly, we are able to keep our funding costs very stable. This quarter, our cost of funding stood at 64% of CDI, an improvement from the 66% of the prior quarter and almost identical to the level we had one year ago. On the revenue front, both our net interest income and our fee income continue growing at a strong pace. Our total gross revenue surpassed 4.3 billion reais. This marks an impressive 37% year-over-year growth. This magnitude clearly highlights the scale and momentum of our business as we continue to expand. Total net revenue also delivered significant results, growing 33% year-on-year to 2.4 billion reais. The standard driver behind this growth was our credit portfolio. Our NIM increased by 38% year-on-year. This acceleration was heavily driven by strong performance in payroll loans, credit card, mortgages and home equity loans. These are key segments where we have built significant scale and efficiency. On the fee side, net free revenue grew 18% year on year. This reinforces the importance of our complete ecosystem. having seven verticals and 180 products allows us to easily cross-sell and increase our fee composition. The completeness of our platform enables cross-selling and further monetization. Because of this, most brokers are monetizing better quarter after quarter. This increases our ARPAC while our cost to serve remains flat. This dynamic is a key driver of our structural profitability. As a result, our net ARPAC reached 34 reais. This is a solid 9% growth year-on-year, despite strong active client growth. Furthermore, our margin per active client stands at 21 reais, marking a 15% improvement on an annual basis and recording the second best quarter ever. Our mature clients demonstrate even greater potential. They are already generating over 130 reais in gross ARPAC, further underscoring the attractive opportunity ahead once clients mature in our base. This performance is a true testament to the strength of our ecosystem. We will dive on this much deeper in our Unity Economics and Principality efforts during our Owner's Day on May 11th. Now, I go through the main page. The first comment I'll make is that this year we will be using the NIM 2.0 as our primary NIM. This NIM has the interest earnings portfolio in the denominator and is in line with what we see in the industry both on incumbents and disruptors disclosure. Now jumping into the metric itself, our NIM of 9.54% was the second best on record only 3 basis points lower than in Q4 2025, which had a very strong performance. On a 12-month comparison, it is an increase of 70 basis points, or 15 basis points per quarter on average, exactly in the middle of the 10 to 20 basis points per quarter that we have signaled to the market. On a risk-adjusted basis, we are seeing the impact of the upfront provisioning of private payroll loans as those expenses come in before the interest of the product through the natural J-curve. Overall, the results that we see in this page makes us very proud as it is the consequence of disciplined and consistent capital allocation. We're delivering growing and stable margins despite volatility in macro variables and a more levered balance sheet as we continue to grow and scale. While revenue grew 33% in the last 12 months, our cost control approach allowed us to grow expenses by 20%, a delta of 13 percentage points. There are a few factors that I would like to explain on this page. First, on personal loans, Our headcount remains stable at approximately 4,000 employees over the last 12 months, but we continue to seniorize multiple teams. Second, our administrative expenses rose 17% year-on-year at almost half the top line growth level, despite the much higher transaction volumes in our super app as it continues to scale. And third, a topic that touches both personal and administrative were seizing AI opportunities across the company. By now, it's much more than just fraud, customer service, and credit underwriting, as it has scaled across all divisions and became part of our day-to-day. We will deep dive on this in the Invest Today of May 11th. Putting both revenue and expenses in the same page, here we can see the essence of our digital banking model, which is high operating leverage potential. On the left side, we can see it indexed since beginning of 2023. And then on the right hand side, the efficiency ratio shows that we had a very strong quarter, reaching a record low of 43.8%, meaning 170 basis points improvement versus the prior quarter. that starts in the year with a very strong momentum on this metric. Operating leverage is in full action and is driving incredible results straight to our bottom line. All of this strong execution combined is reflected on this profitability page, which makes us again very proud. We reached a net income of 395 million reais this quarter, meaning a run rate of almost 1.6 billion reais. we delivered 15.5% ROE and 1.59% ROA, both record numbers. A new metric that we added this quarter, which we think is interesting to follow, is a return on tangible equity, which reached 19.5%, a very impressive level in our view. To close on my end, I would like to highlight that these results speak to the discipline in capital allocation, risk management, and cost control, all with an ambitious growth mindset. Now, Jovita will take the stage for closing remarks. Thank you.