Inter & Co(INTR)2025-04-30 18:45Financial Performance - Gross Loan Portfolio increased to R 31,020,837 in 2023, representing a growth of 32.7%[26] - SG&A expenses rose to R 2,412,527 in 2023, marking an increase of 20.9%[27] - Efficiency Ratio improved to 49.2% in 2024 from 54.5% in 2023, indicating better cost management relative to revenues[29] - Return On Average Equity (ROAE) increased to 11.7% in 2024, up from 4.8% in 2023, reflecting enhanced profitability[30] - Cost of Risk decreased to 5.0% in 2024 from 5.5% in 2023, suggesting improved credit quality[32] - Net Fee Revenue reached R 1,544,488 in 2023, representing a growth of 30.7%[35] - Total Gross Revenue for 2024 was R 4,752,576 in 2023, reflecting a growth of 34.5%[29] - Total Gross Revenue for 2024 reached R8,078,784 in 2023[43] - Interest income increased to R4,549,827 in 2023[43] - Net Interest Margin (NIM) improved to 7.8% in 2024, compared to 7.4% in 2023[49] - Interest Earning Portfolio grew to R48,491,399 in 2023[46] - NIM Excluding Credit Card Transactor Portfolio rose to 9.2% in 2024, up from 8.7% in 2023[53] Funding and Costs - Funding increased to R 43,513,032 in 2023, representing a growth of 26.5%[39] - Cost of Funding improved to 6.7% in 2024 from 7.6% in 2023, indicating a reduction in average interest expenses[41] Client Engagement and Market Expansion - Active clients metric reflects engagement, with a focus on retaining previously acquired clients[55] - Card + PIX Total Payment Volume (TPV) is monitored to assess the appeal of payment products[56] - The company aims to expand its business into markets outside of Brazil, integrating operations from acquisitions[59] - Future growth opportunities are anticipated despite uncertainties in the global economy[59] - The company emphasizes the importance of client engagement metrics to enhance its financial services[55] Risk Management - The company has established a comprehensive financial risk management framework covering credit, market, liquidity, and operational risks[771] - Credit risk management focuses on identifying, evaluating, controlling, and mitigating risk exposure to safeguard financial solidity and solvency[772] - Liquidity risk management aims to ensure the company can meet expected or unexpected obligations without incurring significant losses[773] - The company employs a structured approach to risk management, including segregation of functions and defined management processes[774] - Market risk is associated with potential losses from fluctuations in stock prices, interest rates, exchange rates, and commodity prices[775] - Operational risk is defined as potential losses from failures in internal processes, people, systems, or external events[776]