By Brazil Stock Guide – Inter&Co (Nasdaq: INTR), one of Brazil’s fastest-scaling digital banking platforms, reported a record third-quarter 2025 net income of R$336 million, up 39% from a year earlier, driven by faster credit origination, stronger spreads, and sustained gains in operating efficiency. The credit portfolio expanded 30% YoY to R$43.8 billion, tripling the growth rate of the Brazilian market and reinforcing the bank’s push into secured, higher-quality assets.
Net revenue climbed 29% YoY to R$2.16 billion, supported by rising net interest income and one of the lowest funding costs in the fintech sector at 68.2% of CDI. Inter added 1.2 million active customers during the quarter, reaching 23.9 million, while its total customer base surpassed 41 million.
Credit Engine Accelerates
Inter’s lending businesses remain at the core of its earnings strength. Private-sector payroll loans, launched only six months earlier, generated R$1.3 billion in new originations and are rapidly becoming one of the bank’s most scalable products due to their fully digital, collateral-backed structure. Mortgage lending grew 37% YoY, while home-equity loans expanded 33%, reflecting more competitive market rates and reduced public-sector subsidies.
Credit-card balances advanced 29.7% YoY, and SME lending stabilized after a period of macro pressure. Asset quality held firm: NPLs over 90 days improved to 4.5%, from 5.1% a year ago, and short-term NPLs (15–90 days) remained steady at 4.1%. The coverage ratio rose to 146%, highlighting the bank’s shift toward collateralized and better-scored portfolios.
Efficiency Gains, Below-Consensus ROE — and a Jab at High Rates
Inter achieved an efficiency ratio of 45.2%, its strongest level on record, driven by scale gains, automation and disciplined cost management. ARPAC gross reached R$56.8, while ARPAC net rose to R$33.2, boosted mainly by credit revenues and interchange fees.
Although return on equity strengthened for a fifth consecutive quarter, reaching 14.2%, the figure came in slightly below market expectations, with analysts forecasting something closer to 15% or higher, according to consensus cited by local research desks.
Even so, Inter continued delivering expanding spreads under Brazil’s still-elevated interest-rate environment — a point frequently criticized by founder and controlling shareholder Rubens Menin, who argues that persistently high rates distort credit allocation and discourage long-term investment. The quarter’s resilience suggests the bank is navigating that backdrop with improving profitability and deepening customer engagement.
Funding totaled R$68 billion, a 35% YoY increase, propelled by a 46% rise in time deposits and continued demand for the “Meu Porquinho” savings product. Deposits per active client surpassed R$2,060, reinforcing Inter’s role as a primary account for day-to-day financial activity.
Ecosystem Expansion and Monetization
Daily engagement continues to accelerate, with 20.1 million logins and 28 million financial transactions per day. The NPS held at 85, confirming the platform’s ability to retain and monetize customers across multiple verticals: credit, investments, insurance, shopping and global accounts.
Shopping GMV reached R$1.4 billion with a 7.3% net take rate, while BNPL accounted for 9% of on-us e-commerce. Investments surpassed R$170 billion in AuC, insurance contracts surged 214% YoY to 11 million, and global accounts reached 4.9 million clients with US$2.0 billion in assets.
Capital Headroom and the 60/30/30 Target
Inter closed the quarter with a 14.6% BIS ratio, pressured by loan growth but supported by capital reinforcement at the holding level, where excess capital reached R$1.9 billion. CEO João Vitor Menin reiterated the long-term ambition of 60 million clients, 30% efficiency ratio and 30% ROE, underscoring Inter’s confidence in scale-driven profitability and a maturing portfolio mix.
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