Here are 1-3 brief analogies to describe Inter (INTR):

• Essentially, it's like SoFi if it also had a full e-commerce marketplace integrated into its app.
• Picture Ally Bank, but expanded to offer investment services and with an Amazon-like shopping portal built right in.
• Imagine if Chime and Robinhood merged and then added an Amazon-style shopping section to their combined app.

• Digital Banking Services: Provides comprehensive digital checking and savings accounts, payment processing, and money transfers directly through its mobile application.
• Investment Platform: Offers access to a wide range of investment products including stocks, fixed income, mutual funds, and private pension plans.
• Credit Solutions: Includes various lending products such as credit cards, personal loans, payroll-deductible loans, and mortgages.
• Insurance Services: Facilitates the purchase of various insurance policies, including life, auto, home, and travel insurance, through its digital platform.
• Inter Shop (Marketplace): An integrated e-commerce platform within the Inter app where users can purchase products and services from various retail partners, often with cashback benefits.
• Inter Travel: A travel booking service integrated into the app allowing users to search and book flights, hotels, and travel packages.

Inter (INTR) Major Customers

Inter & Co. Inc. (INTR) is a Brazilian digital bank and financial services platform that primarily sells its services directly to individuals and small and medium-sized enterprises (SMEs), rather than to large corporate customers.

Based on Inter's business model and reporting, its major customer categories are:

• Individual Consumers (Retail Clients): This is the largest customer segment, comprising millions of users across Brazil. Inter provides these customers with a comprehensive suite of digital banking services, including checking and savings accounts, credit cards, personal loans, investment products (brokerage services), and insurance.
• Small and Medium-sized Enterprises (SMEs): Inter offers tailored digital financial solutions for businesses. This includes business accounts, payment processing solutions, payroll services, credit facilities, and investment options designed to meet the operational and financial needs of small and medium-sized companies.

• Mastercard (MA)
• Amazon.com, Inc. (AMZN)

João Vitor Menin T. de Souza Global Chief Executive Officer

João Vitor Menin is the Global CEO of Inter & Co, having assumed the role in 2015. He has extensive experience in the financial and capital markets, leading the group's main projects for fifteen to twenty years, starting in 2004. Recognized as the "Father of Digital Banking," Menin spearheaded the transformation of Inter & Co from a traditional family banking business into the first digital bank in Latin America. Under his leadership, the company successfully went public on Nasdaq in 2022. He is the son of Rubens Menin, co-founder and chairman of the construction company MRV. João Vitor Menin initially interned as an engineer at MRV but joined Intermedium (which later became Banco Inter), a family business focused on real estate financing, in 2004. He holds a degree in Civil Engineering and an MBA in Finance.

Santiago Horacio Stel Senior Vice President of Finance and Risks (CFO)

Santiago Horacio Stel is the Senior Vice President of Finance and Risks and CFO at Inter & Co. He joined Inter in April 2022 as Chief Strategy and Investor Relations Officer. Before joining Inter, he spent 10 years in New York at Morgan Stanley's Investment Banking Division, where he advised Latin American financial companies on mergers & acquisitions and capital raising, including advising Inter in its IPO in 2018. Prior to Morgan Stanley, he worked at Barclays in Capital Markets and at Itaú in the Market Risk division. He holds a degree in Economics from the University of Buenos Aires and an MBA from Duke University.

Alexandre Riccio de Oliveira Senior Vice President of Retail Banking & CEO of Banco Inter (Brazil operations)

Alexandre Riccio de Oliveira serves as the Senior Vice President of Retail Banking at Inter & Co and as CEO of Banco Inter for its Brazil operations. He joined Banco Inter in 2013 and has held various positions, including Development Superintendent, Officer, Chief Operating Officer, and Vice-President. Prior to his tenure at Inter, he worked as a consultant with The Boston Consulting Group (2011-2013), an Operations Manager with Gerdau Ameristeel (2006-2010), and a consultant with Falconi (2004-2006). He also has entrepreneurial experience in the sports nutrition sector. Mr. Riccio holds a degree in Civil Engineering and an MBA from the Kellogg School of Management.

Guilherme Ximenes de Almeida Chief Information Officer (CIO)

Guilherme Ximenes de Almeida is the Chief Information Officer (CIO) at Inter & Co. He joined Banco Inter in 2015 as a technology manager, focusing on solutions for digital products, and was appointed technology officer in 2017. Before joining Inter, he worked as a project coordinator and IT specialist at Gol Linhas Aéreas from 2009 to 2012, and at Smiles S.A. from 2012 to 2015.

Ray Tarick Pereira Chalub Chief Operations Officer (COO)

Ray Tarick Pereira Chalub is the Chief Operations Officer (COO) at Inter & Co. He joined the company in 2015 to contribute to product development and operations for Banking and Investments. Throughout his career at Inter, Mr. Chalub has been responsible for various areas, including Accounts, Pix, Payments, Open Banking, Procurement, Credit Operations, and Investments Operations. He holds an Electronics and Telecommunication Engineering Degree, an MBA in Project Management, and a Master's Degree in Innovation.

Threat 1: Expansion of Large Technology Companies into Financial Services

Major technology companies, particularly Meta (with WhatsApp's widespread adoption in Brazil), Google, and Apple, are increasingly leveraging their vast user bases, data insights, and established ecosystems to expand their financial service offerings. Beyond basic payments, these companies are moving into areas such as lending, credit, and potentially more comprehensive banking and investment products. This expansion presents a direct competitive challenge to Inter's ambition of being the primary financial super app for its customers, as users may opt to conduct more financial activities within their existing, frequently used tech platforms.

Threat 2: Disintermediation through Embedded Finance

The clear emergence of embedded finance allows non-financial companies, such as e-commerce platforms, retailers, and SaaS providers, to integrate financial services directly into their core customer journeys. Enabled by Banking-as-a-Service (BaaS) providers, this trend empowers non-banks to offer products like credit, payments, and insurance seamlessly within their own ecosystems. This can disintermediate dedicated digital banks like Inter by capturing specific financial transactions and customer relationships directly, reducing the necessity for customers to engage with a separate banking application for a growing range of financial needs.

Inter (INTR) primarily operates in Brazil, with a growing presence in the United States. The addressable markets for its main products and services in Brazil are substantial:

• Neobanking/Digital Banking (Brazil): The Brazil neobanking market size reached approximately USD 4.20 Billion in 2024. This market is projected to grow significantly, reaching an estimated USD 118.05 Billion by 2033, exhibiting a compound annual growth rate (CAGR) of 44.80% during 2025-2033.
• Fintech Digital Investment (Brazil): The Brazil fintech digital investment market was valued at approximately US$ 11.74 Billion in 2023. Projections indicate a strong growth trajectory, with the market expected to hit US$ 373.61 Billion by 2032, driven by an estimated CAGR of 48.4% from 2024 to 2032.
• Credit Card Financing (Brazil): Brazil's credit card financing market reached a historic milestone, with R$611.2 billion (approximately USD 124 billion) in outstanding balances at the close of 2024. This represents a 12.8% increase over 2023.
• E-commerce (Brazil): The Brazil e-commerce market size was approximately USD 455.6 Billion in 2024. This market is anticipated to expand to USD 1,499.3 Billion by 2033, showing a CAGR of 12.65% during the period of 2025-2033.

Expected Drivers of Future Revenue Growth for Inter (INTR)

Over the next 2-3 years, Inter (INTR) is expected to drive revenue growth through several key initiatives:

1. Client Base Expansion and Engagement: Inter is focused on continuously expanding its client base and increasing user engagement across its platforms. The company successfully added over 1 million new active clients each quarter in the past year, with business clients growing by 21% year-over-year to 2.2 million. Its total client base has reached 40 million, with 21 million active users, demonstrating strong engagement with services like Pix and the Loop loyalty program. Total Payment Volume (TPV) has also seen a significant increase of 33% year-over-year, reaching BRL 374 billion, with Pix being a major contributor.
2. Loan Portfolio Growth and Focus on High ROE Products: Inter aims for substantial expansion of its loan portfolio, targeting a 30% growth and an ambitious goal of BRL 100-250 billion. The company's loan portfolio grew 8% quarter-on-quarter, with a strategic shift towards higher Return on Equity (ROE) products and a focus on maintaining a diversified and collateralized portfolio, making it resilient and profitable. The company has also launched new loan products to support this growth.
3. Growth in Marketplace and Fee-Based Services: The company is experiencing strong growth in its marketplace and other fee-generating verticals. Its marketplace saw a 79% year-over-year growth in net revenues and a 42% growth in Gross Merchandise Volume (GMV), reaching nearly BRL 5 billion across over 6 million active clients. Fee-based services now account for 32% of net revenues, driven by cross-selling opportunities like Buy Now Pay Later, which generated 7% of GMV in Q4 2024. Additionally, the investments vertical reached 7.9 million active clients, growing 38% year-over-year, and insurance adoption surged with 10 million active contracts, up 272% year-over-year.
4. Global Expansion and New Product Launches: Inter is strategically expanding its global footprint and introducing new products to attract and retain clients. The company’s global client base has grown to 3.9 million, representing 19% of its active base. This expansion is supported by an attractive value proposition and the introduction of new offerings, such as dollar credit cards and new loan products, including an expansion into the Argentinian market.
5. Digital Payroll Offering: The digital payroll offering is a significant and growing area for Inter, accounting for over 50% of new underwritings. This indicates a strong adoption of its digital solutions in the payroll segment, contributing to overall revenue growth.

Share Repurchases

• On January 3, 2022, Banco Inter S.A. (parent company of Inter & Co) approved a share buyback program authorizing the acquisition of up to 4,000,000 common shares and up to 8,000,000 preferred shares, to be executed by July 2, 2022.
• The number of Inter & Co's shares outstanding significantly decreased by 81.57% from 2.18 billion in 2020 to 0.40 billion in 2021.

Share Issuance

• In January 2024, Inter & Co Inc. announced a follow-on public offering of up to 32,000,000 Class A common shares, with an additional option for underwriters to purchase up to 4,800,000 shares.
• Inter & Co's outstanding shares increased from 0.40 billion in 2023 to 0.43 billion in 2024, an 8.25% increase.

Outbound Investments

• Banco Inter became the sole owner of Granito, a payment solutions company, in an operation valued at R$110 million.

Capital Expenditures

• Capital expenditures for Inter & Co, Inc. were R$10.42 million in 2020, R$11.91 million in 2021, R$34.29 million in 2022, R$17.88 million in 2023, and are forecasted to be R$81.97 million in 2024.