Inter & Co Surpasses Expectations with Strong Q1 2025 Performance
Inter & Co, a leading financial institution, has reported a robust first quarter in 2025, showcasing its ability to navigate the rapidly changing banking industry. In a recent earnings conference call, Inter's Global CEO Joao Vitor Menin and Senior Vice President and CFO Santiago Stel highlighted the company's unique positioning, diversified revenue streams, and impressive market share growth.
According to Mr. Menin, Brazil's concentrated banking industry has undergone significant shifts since 2016, with a threefold increase in unsecured credit lending. However, Inter & Co took a different approach by focusing on sustainable products with high levels of diversification, both on fees and credit. This strategy has enabled the company to maintain a strong retail funding franchise and promote client engagement through its complete digital platform.
Inter & Co's business model is built around seven verticals, offering a large and complete set of products and solutions. The company added 1 million new active clients in the first quarter, achieving a 57% activation rate. This represents the fifth consecutive quarter with significant growth, driven by enhanced onboarding processes, hyper-personalization, and early activation strategies.
Moreover, Inter & Co's business clients experienced a 23% year-over-year growth, reaching 2.4 million clients. These clients demonstrated high engagement levels and increased Average Revenue Per Active Client (ARPAC) levels. While transactional volumes were affected by seasonality effects in the first quarter, TPV still increased by 33% compared to last year, reaching BRL 342 billion.
Inter & Co's market share growth has been remarkable, with market shares growing towards an 80.2% fixed share in recently launched products such as mortgages, home equity, FGTS loans, and private payroll loans. The company is poised to capture opportunities arising from the secular shift towards digitalization and financial inclusion.
Inter & Co's CEO Joao Vitor Menin emphasized that the market is moving towards a model that fits the company perfectly, creating huge opportunities for growth. With its diversified revenue streams, strong retail funding franchise, and commitment to sustainable products, Inter & Co appears well-equipped to navigate the changing banking landscape.
