Unaudited interim condensed consolidated statements
For the three-month period
March 31, 2024
Contents
Management report Independent Auditor's Report
Unaudited interim condensed consolidated statements of comprehensive income Unaudited interim condensed consolidated statements of cash flows Unaudited interim condensed consolidated statements of changes in equity Notes to the Unaudited interim condensed consolidated statements
Note 1. Activity and structure of Inter & Co, Inc. and its subsidiaries Note 2 Basis for preparation
Note 3 Significant changes of accounting policies Note 4 Material accounting policies
Note 5 Operational segments Note 6 Financial risk management
Note 7 Fair values of financial instruments Note 8 Cash and cash equivalents
Note 9 Amounts due from financial institutions, net of provisions for expected loss Note 10 Securities, net of provisions for expected loss
Note 11 Derivative financial instruments
Note 12 Loans and advances to customers, net of provisions for expected loss Note 13 Non-current assets held for sale
Note 14 Equity accounted investees Note 15 Property and equipment Note 16 Intangible assets
Note 17 Other assets
Note 18 Liabilities with financial institutions Note 19 Liabilities with customers
Note 20 Securities issued
Note 21 Borrowing and onlending Note 22 Tax liabilities
Note 23 Provisions and contingent liabilities Note 24 Other liabilities
Note 25 Equity
Note 26 Net interest income
Note 27 Income from securities and derivatives Note 28 Revenues from services and commissions Note 29 Other revenues
Note 30 Impairment losses on financial assets Note 31 Administrative expenses
Note 32 Personnel expenses Note 33 Tax expenses
Note 34 Current and deferred income tax and social contribution Note 35 Share-based payment
Note 36 Transactions with related parties Note 37 Other information
Note 38 Subsequent events
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Unaudited interim condensed consolidated statements
For the three-month period
March 31, 2024
Management report
Inter & Co, Inc.
Inter & Co, Inc (the Company and, together with its consolidated subsidiaries, the Group) is a holding company incorporated in the Cayman Island, with limited liability. In June 2022, the Company began to have its shares listed on Nasdaq, a North American stock exchange, with the ticker INTR, and BDRs listed on B3 a Brazilian stock exchange, with the ticker INBR32. Inter&Co is the controlling company of Grupo Inter and indirectly holds all the shares in Banco Inter.
Inter
Inter provides e-commerce and financial services, these solutions are offered in a single digital ecosystem that includes a complete range of baking services, investments, credit, insurance and cross-border banking, as well as a marketplace that brings together the largest retailers in Brazil and in the United States.
Operating highlights
Customers
As of March 31, 2024, we surpassed the mark of 31.7 million customers and increased the activation rate by 339bps when compared to March 31, 2023, reaching 54.9%.
Loan Portfolio
The balance of loan operations reached R$30.9 billion, representing a positive variation of 3.6% compared to December 31, 2023.
Economic and financial highlights
Profit (loss) for the period
We recorded an accumulated profit of R$195.2 million as of March 31, 2024, compared to a increase of 706.2% in the period ending March 31, 2023.
Revenues
The revenues as of March 31, 2024, reached R$2,197.2 million, recording an increase of R$464.6 million compared to the amount recorded in the same period in 2023.
Administrative expenses
Accumulated administrative and personnel expenses incurred as of March 31, 2024, totaled R$(395.2) million, an increase of R$(9.6) million compared to March 31, 2023.
Equity highlights
Total assets
Total assets reached R$R$62.5 billion as of March 31, 2024, a 3.6% increase compared to December 31, 2023.
Shareholder's equity
Shareholder's equity totaled R$8.5 billions billion, a 12.4% growth compared to December 31, 2023.
Relationship with the independent auditors
The Company also has a policy with requirements for contractual risk analysis which defines that the Board of Directors must evaluate the transparency, objectivity, governance aspects and the compromising of the independence of the contract, thus ensuring conformity between the parties involved. Additionally, it has an Audit Committee which, among its responsibilities and competencies, in addition to providing opinions and recommendations on the audit service provider, also evaluates the effectiveness of the independent and internal audits, including with regard to the verification of compliance with legal provisions and regulations applicable to Inter, as well as internal policies and codes.
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Unaudited interim condensed consolidated statements
For the three-month period
March 31, 2024
Furthermore, Inter & Co, Inc. confirms that KPMG Auditores Independentes Ltda. has procedures, policies, and controls in place to ensure its independence, which include an evaluation of the work provided, covering any service other than the independent audit of Company's financial information. This evaluation is based on the applicable regulations and accepted principles that preserve the auditor's independence. The acceptance and performance of non-audit professional services on the financial Information by its independent auditors during the period ended as of March 31, 2024 did not affect the independence and objectivity in the conduct of the audit work performed at Inter & Co, Inc. Information related to independent auditors' fees is made available annually in the reference form.
Acknowledgment
We would like to thank our shareholders, customers and partners for their trust, as well as each of our employees who build our history daily.
Belo Horizonte, May 09, 2024.
The Management
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KPMG Auditores Independentes Ltda
Rua Paraíba, 550 - 12º andar - Bairro Funcionários 30130-141 - Belo Horizonte/MG - Brasil
Caixa Postal 3310 - CEP 30130-970 - Belo Horizonte/MG - Brasil Telefone +55 (31) 2128-5700
kpmg.com.br
Report on review of interim financial statements
To the Shareholders, Board of Directors and Management of
Inter & Co, Inc.
Cayman Islands
Introduction
We have reviewed the condensed consolidated interim financial information of Inter & Co. Inc. ("Company"), included in the Interim Financial Information Form for the quarter ended March 31, 2024, which comprise the balance sheet as of March 31, 2024, and the income statements, statements of comprehensive income, changes in equity and cash flows for the three-month period then ended, including the explanatory notes.
Management is responsible for the preparation and presentation of this condensed consolidated interim financial information in accordance with IAS 34 Interim Financial Reporting, issued by the International Accounting Standards Board - (IASB). Our responsibility is to express a conclusion on this condensed consolidated interim financial information based on our review.
Scope of review
We conducted our review in accordance with Brazilian and international review standards on interim financial information (NBC TR 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of people responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with standards on auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion on the condensed consolidated interim financial information
Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial information referred to above is not prepared, in all material respects, in accordance with IAS 34, applicable to the preparation of interim financial information and presented in accordance with the standards issued by the Brazilian Securities and Exchange Commission.
Belo Horizonte, May 9, 2024
KPMG Auditores Independentes Ltda.
CRC SP 014428/O-6F-MG
Original report Portuguese signed by
Jonas Moreira Salles
Accountant CRC SP-295315/O-4
KPMG Auditores Independentes Ltda., a Brazilian limited liability company and a member firm of KPMG's global organization of independent member firms licensed by KPMG International Limited, a private English company limited by guarantee.
KPMG Auditores Independentes Ltda., a Brazilian limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.
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Unaudited interim condensed consolidated balance sheets As of March 31, 2024 and December 31, 2023
(Amounts in thousands of Brazilian reais, unless otherwise stated)
Note | 03/31/2024 | 12/31/2023 | |||
Assets | |||||
Cash and cash equivalents | 8 | 2,830,310 | 4,259,379 | ||
Amounts due from financial institutions, net of provisions for expected loss | 9 | 4,051,287 | 3,718,506 | ||
Deposits at Central Bank of Brazil | 2,925,658 | 2,664,415 | |||
Securities, net of provisions for expected loss | 10 | 18,167,251 | 16,868,112 | ||
Derivative financial assets | 11 | 7,392 | 4,238 | ||
Loans and advances to customers, net of provisions for expected loss | 12 | 28,826,999 | 27,900,543 | ||
Non-current assets held for sale | 13 | 173,712 | 174,355 | ||
Equity accounted investees | 14 | 89,569 | 90,634 | ||
Property and equipment | 15 | 187,076 | 167,547 | ||
Intangible assets | 16 | 1,596,177 | 1,345,304 | ||
Deferred tax assets | 34.c | 1,082,102 | 1,033,535 | ||
Other assets | 17 | 2,609,027 | 2,125,229 | ||
Total assets | 62,546,562 | 60,351,797 | |||
Liabilities | |||||
Liabilities with financial and similar institutions | 18 | 10,483,087 | 9,522,469 | ||
Liabilities with customers | 19 | 32,643,444 | 32,651,620 | ||
Securities issued | 20 | 8,249,142 | 8,095,042 | ||
Derivative financial liabilities | 11 | 13,893 | 15,063 | ||
Borrowing and onlending | 21 | 102,020 | 107,412 | ||
Income tax and social contribution | 360,850 | 287,978 | |||
Other tax liabilities | 78,276 | 75,284 | |||
Tax liabilities | 22 | 439,126 | 363,262 | ||
Provisions | 23 | 70,003 | 70,452 | ||
Deferred tax liabilities | 34.c | 49,912 | 32,539 | ||
Other liabilities | 24 | 1,957,483 | 1,897,248 | ||
Total liabilities | 54,008,110 | 52,755,107 | |||
Equity | |||||
Share capital | 25.a | 13 | 13 | ||
Reserves | 25.b. | 9,116,496 | 8,147,285 | ||
Other comprehensive income | 25.c | (711,252) | (675,488) | ||
Treasury shares | 25.h | (12,783) | - | ||
Equity attributable to owners of the Company | 8,392,474 | 7,471,810 | |||
Non-controlling interest | 25.f | 145,978 | 124,881 | ||
Total equity | 8,538,452 | 7,596,691 | |||
Total liabilities and equity | 62,546,562 | 60,351,797 | |||
The notes are an integral part of the Unaudited interim condensed consolidated statements
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Unaudited interim condensed consolidated income statements
For the three-month period ended March 31, 2024 and 2023 (Amounts in thousands of Brazilian reais, except for earnings per share)
Note | 03/31/2024 | 03/31/2023 | ||
Interest income | 26 | 1,217,531 | 1,012,927 | |
Interest expenses | 26 | (762,247) | (672,771) | |
Income from securities and derivatives | 27 | 515,381 | 371,406 | |
Net interest income and income from securities and derivatives | 970,665 | 711,562 | ||
Net revenues from services and commissions | 28 | 374,340 | 282,353 | |
Expenses from services and commissions | (34,022) | (35,678) | ||
Other revenues | 29 | 89,957 | 65,877 | |
Revenues | 1,400,941 | 1,024,114 | ||
Impairment losses on financial assets | 30 | (411,048) | (350,681) | |
Administrative expenses | 31 | (395,244) | (385,615) | |
Personnel expenses | 32 | (190,463) | (172,412) | |
Tax expenses | 33 | (86,331) | (68,871) | |
Depreciation and amortization | (41,900) | (37,577) | ||
Income from equity interests in associates | 14 | (2,223) | (3,061) | |
Profit before income tax | 273,732 | 5,897 | ||
Income tax | 34 | (78,512) | 18,319 | |
Profit for the year | 195,220 | 24,216 | ||
Profit attributable to: | ||||
Owners of the Company | 182,793 | 11,405 | ||
Non-controlling interest | 12,427 | 12,811 | ||
Earnings (loss) per share | ||||
Basic earnings (loss) per share | 25.e | 0.43 | 0.03 | |
Diluted earnings (loss) per share | 25.e | 0.43 | 0.03 |
The notes are an integral part of the Unaudited interim condensed consolidated statements
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Unaudited interim condensed consolidated statements of comprehensive income For the three-month period ended March 31, 2024 and 2023
(Amounts in thousands of Brazilian reais, unless otherwise stated)
03/31/2024 | 03/31/2023 | ||
Profit for the year | 195,220 | 24,216 | |
Other comprehensive income | |||
Item that are or may be reclassified subsequently to the income statement: | |||
Change in fair value - financial assets at FVOCI | (94,809) | 32,221 | |
Related tax - financial assets FVOCI | 42,662 | (14,500) | |
Net change in fair value - financial assets at FVOCI | (52,147) | 17,721 | |
Fair value change - investments in operations abroad | (7,620) | - | |
Tax effect | 5,931 | - | |
Hedge of net investments in operations abroad | (1,689) | - | |
Foreign exchange differences on the translation of foreign operations | 18,073 | (554) | |
Others | - | 24 | |
Other comprehensive income that may be reclassified subsequently to the income statement | (35,763) | 17,191 | |
Total comprehensive income for the year | 159,457 | 41,407 | |
Allocation of comprehensive income | |||
To owners of the company | 147,030 | 28,596 | |
To non-controlling interest | 12,427 | 12,811 |
The notes are an integral part of the Unaudited interim condensed consolidated statements
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Unaudited interim condensed consolidated statements of cash flows
For the three-month period ended March 31, 2024 and 2023 (Amounts in thousands of Brazilian reais, unless otherwise stated)
03/31/2024 | 03/31/2023 | ||
Operating activities | |||
Profit (loss) for the period | 195,220 | 24,216 | |
Adjustments to profit (loss) | |||
Depreciation and amortization | 41,900 | 37,382 | |
Result of equity interests in associates | 2,223 | 3,061 | |
Impairment losses on financial assets | 411,048 | 350,681 | |
Expenses with provisions | 9,534 | 10,226 | |
Income tax and social contribution | 78,512 | (18,319) | |
Provisions/ (reversals) for loss of assets | (42,343) | (11,127) | |
Other capital gains (losses) | (3,255) | (2,938) | |
Provision for performance income | (24,264) | (28,285) | |
Result of foreign exchange variation | (21,756) | 131 | |
(Increase)/ decrease in: | |||
Compulsory deposits at Central Bank of Brazil | (261,243) | (138,838) | |
Loans and advances to customers, net of provision for expected loss | (1,337,505) | (1,341,932) | |
Amounts due from financial institutions | (332,782) | 488,782 | |
Securities | (373,610) | 106,514 | |
Derivative financial assets | (3,154) | (1,122) | |
Non-current assets held for sale | 642 | (11,470) | |
Other assets | (454,250) | (41,517) | |
Increase/ (decrease) in: | |||
Liabilities with financial institutions | 960,618 | 309,641 | |
Liabilities with customers | (8,176) | 539,202 | |
Securities issued | 154,100 | 438,392 | |
Derivative financial liabilities | (1,170) | (5,154) | |
Borrowing and onlending | (5,392) | 991 | |
Tax liabilities | 52,270 | (23,087) | |
Provisions | (9,983) | (4,462) | |
Other liabilities | (95,324) | 58,694 | |
Income tax paid | (64,329) | (17,762) | |
Net cash from operating activities | (1,132,469) | 721,900 | |
Cash flow from investing activities | |||
Acquisition of subsidiaries, net of cash acquired | - | (2,378) | |
Acquisition of property and equipment | (21,405) | (2,704) | |
Proceeds from sale of property and equipment | - | 7,248 | |
Acquisition of intangible assets | (93,572) | (70,765) | |
Acquisition of financial assets at FVOCI | (2,071,379) | (930,710) | |
Proceeds from sale of financial assets at FVOCI | 1,081,628 | 743,716 | |
Acquisition of financial assets at FVTPL | (30,060) | (17,106) | |
Proceeds from sale of financial assets at FVTPL | 42,134 | 27,967 | |
Net cash used in investing activities | (1,092,654) | (244,732) | |
Cash flow from financing activities | |||
Capital increase | 782,037 | - | |
Dividends and interest on shareholders' equity paid | (2,271) | - | |
Repurchase of treasury shares | (16,409) | (16,409) | |
Resources from non-controlling interest | 10,941 | (569) | |
Net cash used in from financing activities | 774,298 | (16,978) | |
Increase/(Decrease) in cash and cash equivalents | (1,450,825) | 460,190 | |
Cash and cash equivalents at the beginning of the period | 4,259,379 | 1,331,648 | |
Effect of the exchange rate variation on cash and cash equivalents | 21,756 | (131) | |
Cash and cash equivalents at March 31 | 2,830,310 | 1,791,707 | |
The notes are an integral part of the Unaudited interim condensed consolidated statements
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Unaudited interim condensed consolidated statements of changes in equity For the three-month period ended March 31, 2024 and 2023
(Amounts in thousands of Brazilian reais, unless otherwise stated)
Share | Other | Retained | Treasury | Equity | Non- | ||||||||||
earnings / | attributable to | ||||||||||||||
Reserves | comprehensive | controlling | Total equity | ||||||||||||
capital | accumulated | shares | owners of the | ||||||||||||
income | interest | ||||||||||||||
losses | Company | ||||||||||||||
Balance as of January 1, 2023 - Inter & Co, Inc. | 13 | 7,817,670 | (825,301) | - | - | 6,992,382 | 96,722 | 7,089,104 | |||||||
Profit (loss) for the period | - | - | - | 11,405 | - | 11,405 | 12,811 | 24,216 | |||||||
Proposed allocations: | |||||||||||||||
Constitution/ reversion of reserves | - | 11,405 | - | (11,405) | - | - | - | - | |||||||
Net change in fair value - financial assets at | - | - | 17,721 | - | - | 17,721 | - | 17,721 | |||||||
FVOCI | |||||||||||||||
Foreign exchange differences on the translation | - | - | (554) | - | - | (554) | - | (554) | |||||||
of foreign operations | |||||||||||||||
Repurchase of treasury shares | - | - | - | - | (16,409) | (16,409) | - | (16,409) | |||||||
Reflex reserve | - | 26,397 | - | - | - | 26,397 | - | 26,397 | |||||||
Others | - | - | 24 | - | - | 24 | (593) | (569) | |||||||
Balance as of March 31, 2023 - Inter & Co, Inc. | 13 | 7,855,472 | (808,110) | - | (16,409) | 7,030,966 | 108,940 | 7,139,906 | |||||||
Balance as of January 1, 2024 - Inter & Co, Inc. | 13 | 8,147,285 | (675,488) | - | - | 7,471,810 | 124,881 | 7,596,691 | |||||||
Profit for the period | - | - | - | 182,793 | - | 182,793 | 12,427 | 195,220 | |||||||
Proposed allocations: | |||||||||||||||
Constitution/ reversion of reserves | - | 182,793 | - | (182,793) | - | - | - | - | |||||||
Capital increase | - | 820,503 | - | - | - | 820,503 | - | 820,503 | |||||||
Cost associated with issuing equity securities | - | (38,466) | - | - | - | (38,466) | - | (38,466) | |||||||
Interest on equity / dividends | - | - | - | - | - | - | (2,271) | (2,271) | |||||||
Foreign exchange differences on the translation | - | - | 18,073 | - | - | 18,073 | - | 18,073 | |||||||
of foreign operations | |||||||||||||||
Gains and losses - Hedge | - | - | (1,689) | - | - | (1,689) | - | (1,689) | |||||||
Net change in fair value - financial assets at | - | - | (52,147) | - | - | (52,147) | - | (52,147) | |||||||
FVOCI | |||||||||||||||
Share-based payment transactions | - | (3,626) | - | - | 3,626 | - | - | - | |||||||
Reflex reserve | - | 8,007 | - | - | - | 8,007 | - | 8,007 | |||||||
Repurchase of treasury shares | - | - | - | - | (16,409) | (16,409) | - | (16,409) | |||||||
Others | - | - | - | - | - | - | 10,941 | 10,941 | |||||||
Balance as of March 31, 2024 - Inter & Co, Inc. | 13 | 9,116,496 | (711,251) | - | (12,783) | 8,392,475 | 145,978 | 8,538,453 | |||||||
The notes are an integral part of the Unaudited interim condensed consolidated statements
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Inter & Co. Inc. published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 May 2024 09:50:02 UTC.