Inter & Co Aktie

Hi, everyone. I'm Rafa Vitoria, IR Officer at Inter, and I would like to welcome all to Inter & Co's earnings conference call. First of all, some instructions. [Operator Instructions] This call is also available conference is being recorded. A replay will be available at the company's IR website.

With me today are Joao Vitor Menin, our Global CEO; Alexandre Riccio, our Brazil CEO; and Santiago Stel, our CFO. To start with the CEO overview, I would like to invite Joao. Joao, please go ahead.

Thank you, Rafa. Thank you all for joining us today to discuss our second quarter results for 2026. I want to start with something that is truly meaningful for Inter. Back in May at our Owners Day, we introduced the Rule of 50 as our long-term plan, proving that growth and profitability are not a trade-off, but a combination we can deliver together. And here we are just 1 quarter after announcing the plan and the Rule of 50 is already a reality. Total net revenue grew 32%. ROE reached over 16%. We are already executing the plan. The Rule of 50 does not stand alone. It is built on top of our 60-30-30 North Star, the goal of 60 million clients, 30% efficiency ratio and 30% ROE. That compass continues to guide everything we do.

The trend on this chart reflects years of disciplined capital allocation, high growth and consistent execution, supported by a solid balance sheet. But results like these don't happen by accident. Delivering the Rule of 50 is only possible because of our Inter by design approach. It combines 3 reinforcing pillars: sustainable revenue growth, scalable distribution capabilities and unique cost efficiencies. And that compounding effect is what you see in our numbers. We tripled our revenue growth while simultaneously doubling our active client base, meaning we are getting more engaged clients. We are doing all of this while improving our efficiency ratio by 32 percentage points and expanding ROE by 18 percentage points as well. Growth and profitability moving in the same direction at the same time. That is what Inter by design produce.

And when this flywheel runs at full speed, the natural consequence is market share gains across every product and segment. That is what I want to show you next. More clients bring more transactions. More transactions bring more data. Better data drives better products and smarter credit decisions. Better products attract even more clients and the cycle keeps compounding. That is what the flywheel concept means for Inter. And what makes our flywheel particularly powerful is the breadth of our ecosystem. The more products we offer across more verticals, the more entry points we create for clients and the faster the cycle spins. Whether you look at PIX, credit cards, investments or home equity, our market share numbers are climbing across the board, faster than many of the most important players in Brazil.

We are not just growing. We are growing in every segment at the same time, but with discipline. That's the strength of our ecosystem, and it's only getting stronger. This flywheel guides not just how we grow, but also where we choose to grow. The opportunity in front of us is bigger than ever because we are actively deepening and widening our addressable market. Our core is secured lending. That was a deliberate choice from the start, mortgages, home equity and payroll, for instance. Nearly 82% of secured personal loans in Brazil are still concentrated in the top 5 players. That is massive, underpenetrated market, and we have the distribution, the product experience, the data and the cost structure to keep gaining market share. But we're not stopping there. We are widening into unsecured as well, and we're doing it carefully with discipline and the results are already showing up.

For the first time ever, we surpassed 2% market share in credit cards TPV in Brazil. We have never been more profitable in this product than we are today. In summary, secured loans remains our foundation, strong asset quality with stable returns, resilient through different credit cycles. And on top of that, unsecured credit such as credit card, PIX credit and buy now pay later are deepening principality and widening our addressable market further on. We are seizing the opportunity in both, and that is what gives us the confidence to keep growing 30% or more for many years to come.

And now to conclude, as you can see on Page 9, I would like to highlight 3 important milestones for our company. Number one, on gaining scale. For the first time ever, we reached over BRL 100 billion in total assets. Second, on expanding margins. For the first time, we crossed double-digit NIMs. And third, on creating value. For the first time, we surpassed capital neutrality, meaning our business now generates more capital than it consumes to grow even in a fast pace of growth. These are not just milestones. They are proof that the model we have been building with discipline, consistency and ambition is delivering real results for our shareholders.

Now Sandy and Santi will bring this story to life with the full numbers behind it. Sandy will walk you through the business update, while Santi will take you through the financial performance in detail. Sandy, please go ahead.

Thank you, Joao, and good morning, everyone. Let's now dive into our second quarter operational results. We reached 45.3 million clients and over the last 12 months, added 3.7 million new active clients. But the size of our base is not the main story here. The quality of it is. We have been deliberate about how we grow, being more selective, prioritizing clients that engage faster. That means a sharper focus on ARPAC growth, building a stronger and more profitable base. And the strategy is showing up directly into our numbers. Our new cohorts are starting with an initial ARPAC approximately BRL 10 higher than older cohorts.

A key driver of ARPAC growth is credit penetration. As clients deepen their relationship with Inter and adopt credit products, their monetization increases significantly. Private payroll is a great example of this, and I'll explore this subject later. We also see evidence of engagement in the behavior of our clients overall. We averaged 22 million daily log-ins this quarter, up from 18 million a year ago. These clients are not only active, they're truly engaged and bringing primary relationships to Inter. And that engagement is translating directly into monetization while we keep our cost to serve flat. ARPAC goes up, CPS stays stable. The gap is what drives margin expansion, and the results speak for themselves. Margin per active client just reached its best level ever.

This is the financial outcome of everything I just described, better clients, deeper relationships, higher credit penetration, it compounds quarter after quarter. This engagement we talked about also translates into transaction volume. Our cards and PIX TPV reached 1.8 trillion on a run rate basis. TPV is growing faster than our client base, an evidence of deeper relationships. True market share numbers tell the story best. First, we now hold approximately 9% of all fixed transactions in Brazil, and we are still expanding, growing 31 basis points over the past year. Second, for the first time ever, we crossed 2% market share in credit card TPV, as Joao mentioned earlier. Our new cohorts are starting an engagement at an engagement level that's higher than ever before. The flywheel is not just working, it's accelerating.

Now I want to deep dive into 2 of our hero credit products, credit cards and private payroll loans. Santi will cover the full portfolio performance later, but I want to give you the strategic view on both. Starting with credit cards and our reshaping strategy, the TPV is simple, shift our portfolio towards more interest-earning balances. more installment usage, better monetization, bringing higher revenues. Our interest-earning portfolio keeps growing as a share of the total and now stands for 26% of the credit card book. The interest income of this product grew 64% year-over-year. And here is the key message. Interest income is growing faster than provisions. A larger interest-earning portfolio does come with more provisioning that's expected, and we're comfortable with it. But the income is outpacing the costs and the margins are expanding. We'll maintain our discipline in this strategy, growing the right balances with the right clients at the right time.

Now let me turn to private payroll loans. We maintain our confidence in the product and its fit to our platform. It generates strong revenue expansion. It scales through our own digital distribution, and it is efficient to originate and serve. That's exactly the kind of product we want more of. In the second quarter, we surpassed 600,000 clients with private payroll loans. These clients have an ARPAC that's 3.7x that of our average, making it a true principality and monetization accelerator. There are operational improvements in progress, and we're managing through them with discipline. But we believe the product will only get better as DataPrev introduces new features such as automatic employee relinkage. We're growing, and we believe we're doing it at the right pace, building a proprietary portfolio that will be healthy and profitable for the long term and that will strengthen principality.

The next step is already coming. Insurance launches in August. We estimate that insurance adoption can reduce provisions and increase fee revenues, a meaningful improvement in the product's overall performance. I will now talk about business accounts, a significant opportunity we have in front of us. We reached 2.9 million business clients, growing 24% year-over-year. Our market penetration is already at 12% in these types of accounts. Business clients generate 2.8x the ARPAC of our average client. We have built a complete suite of products for businesses, including payments, investments, acquiring cards and credit. The electronic trade invoice as a collateral or as called in Portuguese producto bancario to be launched by the Central Bank of Brazil is currently in testing. And once live, it will deepen our product suite, drive higher ARPAC and compound directly into NII growth.

The more products a business client uses the more they consolidate their financial transactions at Inter. This is the same flywheel we see on the retail side now on the business account side. Now let me shift to another important dimension of our business, fee income. Credit is a powerful engine of our results. But what makes Inter truly unique is that we have 7 verticals that reinforce each other and together, generate a fee income base that is diversified and resilient. We have 2 engines that will drive future growth. On the commission side, we're launching subscription plans, giving clients the opportunity to upgrade to our One, Prime and Win segments and unlock more benefits. We are also expanding our investment advisory services for higher income clients. And we just launched Inter Ads, a new ads monetization layer in our app with significant potential ahead.

On the credit-related fees, Inter Change is accelerating as our credit card TPV crosses the 2% market share for the first time and keeps outpacing debit. Inter Pag will resume growth as we mature the company and leverage the products amongst our business clients. And private payroll loans, credit insurance will add a meaningful new fee revenue stream to a product that is already profitable on the credit side. These are not just plans. They are initiatives already in motion. And together, they are what will bring fee income growth back to the pace we want to see. The reason we're confident that fee income will accelerate is not just because of the initiatives I just described. It is the distribution power behind them. As seen on this slide, multiple products across our 7 verticals have already surpassed 1 million -- the mark of 1 million active clients. But what is even more remarkable is the speed. Each new product is reaching that milestone faster than the one before it. The curves are getting steeper. Adoption is accelerating.

This is what distribution at scale looks like. When you have 26 million active clients who log in 22 million times a day, launch a new product is not starting from 0. It is dropping a new solution into one of the most engaged financial ecosystems in Brazil. Clients are ready to adopt, and they are doing it faster every time. That is the compounding power of our flywheel. And that's what gives us the confidence that the fee income initiatives will gain traction quickly. With that, I'll hand it over to Santi for the financial performance. Santi, please go ahead.

Thank you, Sandy. Good morning, everyone. I'll jump directly into the financial performance of the quarter. The Rule of 50 that we introduced in New York back in May is showing up directly here with revenue growing 32% year-on-year. Joao refreshed the framework, and this slide is exactly what it looks like in practice. What I find even more compelling than the level itself is the consistency behind it. For 8 consecutive quarters, NII has been growing around 40% year-on-year, 8 quarters in a row. That is the result of intentional execution, a portfolio that keeps growing, and NIM that keeps expanding, private payroll gaining traction exactly as Sandy described and a credit book that his team has been deliberately reshaping towards higher-yielding balances. Fee income had a strong quarter, growing alongside our client base. And with the initiatives Sandy walked through, we have a clear and intentional path to accelerate this revenue going forward.

The result is a revenue base that is diversified, resilient and structurally built to keep compounding with strong momentum across every driver. And the consistency we just saw in NII has a direct driver, NIM. This quarter, our NIM reached 10.1%, the highest level we have ever recorded and the first time that we have crossed the double-digit mark. This is a milestone worth pausing on. Three factors drove the expansion this quarter. The first is structural and ongoing. The continued deployment of capital into high ROE products quarter after quarter. This is the compounding effect of disciplined capital allocation.

The second is strategic. Our hyper-personalization pricing approach, which we outlined on the Owners Day is working. On the asset side, we repriced buy now pay later, PIX Credit and private payroll. On the liability side, we reduced interest rates on LCIs. This is not a onetime adjustment. It is an active ongoing strategy that will continue to support our NIM expansion going forward. The third is one tailwind from our inflation hedge, which as we flagged in the first quarter of 2026, we expect to flow through in this quarter. That is exactly what happened. The underlying trend supported this impact.

Now I want to zoom out because there is a point that often gets overlooked. Since the 60-30-30 announcement back in January of 2023, our NIM 2.0 has expanded 30% from 7.8% to 10.1%. Our capital structure also changed significantly over the same time period with our leverage going from 6.7x to 9.7x today. When you normalize for that and hold the capital structure constant through time, the true NIM expansion is closer to 50%. That is a number that reflects the real depth of the improvement in our core banking economics. Taken together, these results reflect exactly what disciplined capital allocation and consistent execution of our producto bancario or our banking business looks like in practice. And that capital deployment we just described that is showing up directly in the loan growth. Our expanded loan portfolio reached BRL 55.4 billion, up 5% quarter-on-quarter and 29% year-on-year.

You will notice that we introduced a new concept this quarter, the expanded loan portfolio, which now includes our private securities book, FIC, debentures and similar instruments. We are bringing this into our core credit metrics because treasury optimization is one of the ROE drivers we committed to at the Owners Day as part of the Rule of 50. We ask ourselves the question, is deploying capital here a truly franchise accretive business? We think that the answer is yes. These are client deposits being deployed into market-originated credits, generating strong returns that we then reinvest back into our business. We should expect this business to continue growing.

Within the portfolio, each product line is pulling its own weight. Private payroll keeps gaining share and is progressively absorbing the natural runoff of the FGTS book. On credit cards, the reshaping strategy described continues to deliver strong performance with interest income from this product growing 64% year-on-year. Real estate remains a standout. Mortgages and home equity have grown at an average 40% since the second quarter of the last year, not a single strong quarter, but sustained compounding growth in one of the most important and most secured products in our portfolio. And one number ties all this together, loan balance per active client, which reached our highest level ever. Credit penetration, one of the key pillars of our Rule of 50 execution is not a future ambition. It's a reality that continues to move forward.

This diversification across products is what allows us to grow at pace without concentrating risk, neither credit nor regulatory with revenue, NIM and loan growth expansion, all moving in the same direction by design. Loan growth, NIM expansion, revenue consistency, all of that has a credit strategy behind it, and this slide is where we show it.

Before going into the numbers, let me frame how we think about asset quality strategically. Our goal is not to minimize NPL in isolation, is to maximize risk-adjusted NIM, efficiency and ultimately, returns. That means that we deliberately take more credit risk in certain portfolios, and those same portfolios are becoming an increasing driver of our profitability quarter after quarter. This is an intentional trade-off and one we are making with full conviction. We'll also notice this page is busier than usual as we introduced the expanded loan portfolio concept in the prior page, we apply the same lens here, showing NPL and Stage 3 formation and they both expanded and prior methodologies side by side. This allows investors to see both views clearly during the transition.

Now within the portfolio, there are 3 distinctive stories. The first is our secured portfolio, excluding private payroll, which is roughly about half of our loan book. Asset quality here is stable and performing well with strong ROE dynamics. This gives us confidence to keep deploying capital and growing this product accordingly. The second is on credit cards. NPLs performance here reflects a deliberate strategic choice, a growing interest-earning portfolio in an unsecured segment that still faces a challenging macro environment. But here, the key point is that revenues are growing significantly faster than provisions in this book. That is the metric that matters for us and is moving in the right direction. With our disciplined niche approach and interest rates on a downward trend, we expect NPL performance to improve in the coming quarters.

The third component is private payroll. I will cover that in the next page. As the NPL bridge shows, this product is the largest contributor of the NPL movement, responsible for over half of the yearly increase. We're not going to look past this number. We'll address it here. Delinquency has been running higher for longer than we planned, not because the product deteriorated, but because operationally, maturity is taking more time than expected. We're actively working on it. Our own relinkage solution is underway, insurance launch is in August and further data privy improvements are expected this month, as Sandy walked through. But here is what keeps our conviction intact. Even at current delinquency levels, the ROE on private payroll loans remains at around 30% -- so the economics are compelling for our clients and for us, and it fits very well in the Inter by design approach.

And when you look at private payroll and credit cards together, these 2 portfolios have been delivering strong returns, ROE holding strong even before the operational maturity of private payrolls and NIM expanding very strongly. This is intentional execution and our confidence continues to grow stronger as the results come in.

Now let me turn to funding, one of our most important competitive advantages. Our total funding reached BRL 77.2 billion this quarter, growing 24% year-on-year. This growth reflects the trust our clients place at us as our primary financial platform. The composition of that funding tells an equally important story. On the transactional side, deposits grew 17% year-on-year, and we generated nearly BRL 1 billion, nearly free funding just this quarter. This is a direct result of clients choosing us for their daily financial lives. On the higher-yielding deposits, time deposits grew 27% and securities issued grew 42%, reflecting the continued diversification of our funding base in an environment of high interest rates. We are attracting funding across the full spectrum and doing it efficiently.

Lastly and most importantly, deposits per active clients reached BRL 2,000.80, growing 6% year-on-year. And this is where our funding franchise truly shines. Our cost of funding stood at 66% of CDI this quarter, one of the lowest and most stable in the industry. And I want to emphasize the word stable here. Market rates have moved a lot over the past few years, and our cost of funding barely moved. This is by design. It comes from the depth of our transactional deposit base. These our clients as their primary bank, as Sandy mentioned. And this advantage compounds over time. A lower, more stable cost funding means we can price loans more competitively, protect our NIM through the cycle and generate better risk-adjusted return than peers. It's one of the most durable competitive advantages that we have built and honestly, one that is the hardest to replicate.

Now let me talk about expenses. There are 3 factors playing out here. The first is personnel. Headcount is stable at around 4,000 employees, which is the same number that we had 4 years ago when we announced the 60-30-30 plan. Costs grew 18% and the main driver here is the profit sharing, which we can think about it is actually good news. It means the team is being rewarded for stronger profitability that we are delivering. Second, D&A came in 44% higher year-on-year, the amortization of prior investments in our Super App. This line will keep growing as we launch new projects. But importantly, the ratio of intangibles to total assets continue to decrease.

And third, administrative expenses grew just 15%, broadly in line with the natural growth in clients and transactional volumes. We're handling significantly more scale without a proportional increase in costs. That is a digital model doing exactly what it's supposed to do. And this is what makes all of that sustainable, revenue growing at 32% year-on-year, expenses growing at 19%. That gap of 13 percentage points is operational leverage flowing directly to the bottom line. When we look at the client chart index, both since 2023 when we launched the 60-30-30 plan, the picture is clear. Revenue has compounded, expenses have grown in a controlled manner and the gap between the 2 keeps widening. That is the digital banking model at scale, no branches, no legacy systems, no linear cost growth as we add clients and products.

The efficiency ratio reached 42.1% this quarter, a new record low. That reflects years of consistent cost discipline, combined with the scaling dynamics of our model. There's more room to run on efficiency, and we're committed to continue delivering returns. Revenue, NIM, loan growth, asset quality and now operational leverage, all moving in the same direction. That is the financial picture of Inter this quarter. And everything we walk through comes together right in this page. Net income reached BRL 421 million this quarter, a new record. And ROE, also a record, reached 16.3%. But honestly, the quarterly number alone does not tell the full story. If we look at the trajectory of this chart, we have 13 consecutive quarters of net income growth. Quarter after quarter, year after year, net income and ROE keep moving in the same direction, up. That is not a quarter story. It's a compounding track record.

ROA also hit a record this quarter, now in line with some of the most established traditional banks in Brazil. If you think about it, a platform that is growing at 30% plus, delivering returns comparable to institutions that have been around for decades. Everything we have built, the disciplined capital allocation, the risk management and the cost control shows up here. Growth and profitability moving together, that is the Rule of 50 in action.

And finally, I'd like to close with capital. For the first time, our business is generating more capital than it consumes to fund its own loan growth. Inter is now self-sustained from a capital perspective. We grow and we fund the growth ourselves through growing profitability. Additionally, at Inter&Co level, we hold EUR 2.3 billion in excess capital, capital that sits ready to be deployed in the bank whenever we need. When you factor that in, the Basel ratio at the holding level reached 19.3%, a position of real strength.

With that, I'll turn it over to Rafa to open the Q&A questions. Thank you all.

Now we open the Q&A session. Our first question is from Eduardo Rosman.

Congrats on the numbers. I would like to follow up on the NIM and asset quality. I think Santiago explained well the 3 main drivers, and I think we're going to continue seeing improvement in the next couple of quarters. But this quarter, specifically, NIM was a little bit too strong, right? So I wanted to understand the magnitude of these 3 main drivers in this quarter. Trying to understand if we should assume that NIMs would still improve in the third quarter or if maybe in the third quarter, it should adjust a little bit and then continue moving up in the following quarters, right?

And then also on asset quality, right? I think early NPLs moved up again. I assume that, that matters more for provisions than 90 days NPLs. So, what are your expectations for the next couple of quarters? I know you are taking more -- a little bit more risks, and that's part of the plan. But just trying to understand here probably the trends for risk-adjusted NIM, how we should think about throughout the next couple of quarters? That's it.

So starting with NIM, let me back a quarter. So, what we said back then when we explained the first quarter performance is that we had an inflation dynamic playing out in the first quarter of around BRL 30 million or lower inflation hitting in that quarter, but that would have an effect going forward into the second, which is what we're seeing now with 10.1%. So the prior NIM was a bit lower than what it should have been on a normalized basis and the current one has a bit of that embedded in there as a consequence of inflation. So I'll walk you through that. We have approximately BRL 11 billion of inflation-linked exposure, which we hedged around BRL 6 billion of which -- of it, and that gets us a net long exposure of around BRL 5 billion, right? And with that, we have the timing mismatch where the BRL 30 million of lower revenues in the prior quarter are hitting positively in this quarter.

With that factored in, you should adjust around 15 basis points in this quarter, lower and 15 basis points in the prior quarter higher. Now that will be a more smooth performance, and that will reflect a bit more what really happened if the inflation would have been constant through time, and we wouldn't have hedged -- but what I would like to highlight is that when you look at the overall long-term curve of our NIM and our risk-adjusted NIM, it has performed quite stable and has become quite predictable despite inflation going from very low numbers to very high numbers throughout the year and also with the movement in CDI. So, we're able to manage that volatility. We'd like to have the NIM more predictable and stable, but we do see some dynamic throughout the year playing out, particularly in this first half.

And on an annual basis, we said this the last quarter, we expect a 40 basis points increase in the annual NIM from the prior year into this one. And we continue to think that will be the case considering the loan mix that we're having -- we're originating at. And then on asset quality, we are quite happy with the performance. It is in line with what we expected. Remember that we mentioned 3 drivers last quarter, 2 were internal, the additional growth that we're taking in private payroll and the credit card mix of reshaping that Sandy commented and then the external one, which has to do with higher interest rates and seasonality. So, on those 2 that the internal private payroll, we continue very excited with it. Sandy can touch upon in more detail, but this is a product that fits, as we said, perfectly well in the inter design.

And credit card has been our stellar P&L product internally. We are monetizing it a lot more, as you saw, 64% interest income increase in the last 12 months, that comes together with more delinquency, right? But we're not solving for lower delinquency. We're solving, as we mentioned, for higher returns. So the evolution or the shape of the delinquency curves going forward will depend a bit on the mix. But the guidance that we gave last time was cost of risk at around 6%. We continue to think that's the case. This quarter, we were a bit better than that. And the outlook for the rest of the year remains unchanged, both on the NIM side, as I mentioned in the first question as well as with the asset quality.

Our next question is from Henrique Navarro. Our next question is from Mario Pierry.

Congratulations on the results. Let me ask you a more general question about asset quality trends in Brazil, right? You continue to grow your loan book at a very rapid pace, close to 30%. You are seeing higher cost of risk, but you're compensating that with higher revenues. However, there's a perception that families in Brazil are highly indebted, debt service ratios are very high. We have an uncertain environment second half of the year with the elections. And then there's a perception that next year, the fiscal spending in Brazil is going to have to decline because the government has been very populous this year. So -- if you can discuss how are you seeing the operating environment in Brazil and key concerns that you have about asset quality going forward?

Mario, Joao Vitor speaking here. Thanks for the question, and I'm going to take this one. Look, we IPO-ed the company back in 2018. So it's been, what, 8 years or so that the analysts, the investors, they have been following Inter. And we have always been very, very careful on approaching credit risk, credit underwriting and so on. That said, we have a very, I'd say, good tailwind that helped Inter, and it's pretty much a simple thing. We are still a small loan portfolio with a lot of clients, a very good cost of funding and a very good distribution channel. That said, of course, that as Sandy just mentioned, we will adjust accordingly. So we might expand unsecured portfolio in a good credit cycle. We might reduce it in a bad credit cycle. But the opportunity ahead of us, the time ahead of us is just big.

When we see on the page that we show the growing opportunity, the BRL 2.7 trillion portfolio, the BRL 1.3 portfolio on the left side and the BRL 2.6 trillion portfolio addressable market on the right side, we have, as I mentioned, the tools to attack all of these 3 addressable markets. So still with inflation pressure on the with elections and everything, we can still grow at a 30%-ish. I'd say, maybe a few years to come. We can do that doing the right risk reward approach. This is very important. We are in a business of taking risks. We need to manage that. We need to use all the tools that we have, and we have been doing that carefully. But again, because we are still a small loan portfolio platform, we can keep growing on that pace ahead without putting the balance sheet of risk.

So that's the overall view from my side, from my end on how Inter will perform on this current credit cycle in Brazil. And when you think on the mid- to long term, we have all the tools on the platform to keep gaining momentum to produce enough. So again, the best cost of funding, the right distribution channel, a very efficient business model by being digital. So we see a very great opportunity for Inter to keep compounding our loan portfolio, both on secured and unsecured portfolios ahead, okay? That's the view for the business in terms of risk reward and credit cycles.

Let me ask then a second question really quick. You guys didn't mention anything about the debt renegotiation program in Brazil. So, I just wanted to know like did they have any impact on your asset quality ratios? Were you active renegotiating loans?

So Mario, the BACEN was good, much better than what we saw in the first. And what we saw was, first, renegotiations of BRL 100 million, so a good volume driven by BACEN, an overall impact in the P&L of around BRL 40 million, although we believe that half of this we would be -- we would have realized in other ways. So using collection company, also using our internal team, which is very strong and doing a lot of actions to control delinquency. So we can say that BACEN brought 12 million of EBT impact. When we look at delinquency metrics, we had minus 10 bps in NPLs. We had minus 15 bps in cost of risk and about 15 bps increase in Stage 3 formation. And why Stage 3 formation? Given 2 factors. The first one is as we renegotiate, we're also renegotiating credits that are past due beyond 360 days or they're written off. So we bring them back into the balance sheet and place them into Stage 3. And sometimes we renegotiate in a credits that are, say, between 90 and 360.

When we do that, we move them to Stage 3 and increase that proportion. The good news is that the Stage 3 is highly recoverable given that it has the FGO backing it. Joao will give in some additional comments.

So Mario, just going back to the first question about addressable market and how Inter will grow ahead. One thing that's important to mention and to give you some color on, I mean, how big the opportunity is. So again, connecting to the Page 8, where we have the BRL 1.3 trillion plus BRL 2.7 trillion, plus BRL 2.6 trillion addressable market. We are today pretty much only on the central column, and we are widening, as I said in my first speech. We're widening to the left and to the right side of the addressable market. And one thing to factor, we have the public information on the Central Bank on the credit exposure that our clients, they have on the system. And it's interesting that clients that have a primary relationship with us, PIX and salary and everything, and we have less than 5% of the credit exposure of those clients.

So within our own clients, the clients that are already using our platform that are already investing with us, doing things with us, using our products, we can penetrate a lot. So that's what I -- how I try to put some numbers and some color on this big opportunity, this big addressable market and the fact that we're still, from a credit perspective, a small platform. We're a big platform from a transactional perspective. But from a credit perspective, we're still a small platform in Brazil. So I see that as a very good news for us.

Our next question is from Tito Labarta.

A couple of questions. Actually, just a couple of follow-ups, both on NII and provisioning. On the NII, and Santi, you kind of explained a little bit, right, the inflation impact. But just looking at the financials, right, the big jump came in the income from securities, derivatives and FX, which is almost BRL 200 million quarter-over-quarter. If you look at just interest income, it was less than BRL 100 million increase. So just going forward, can you still do the 10 to 20 bps NIM expansion per quarter? Just should we consider this sort of the higher income from securities as the right level? I know there's adjustments from quarter-to-quarter, but just think about that incremental NIM expansion, given that this quarter was -- NIM was higher probably than expected. How do you think about that quarterly NIM expansion just given this movement in the income from securities?

And then just following up also on provisions. Your coverage ratio did come down. I know part of the NPL increase was more mix. But just given the current sort of macro environment, how are you thinking about that coverage ratio? Why is it coming down? Should you be increasing it in the current environment given some of the macro concerns? Just want to think about sort of the provision levels and coverage given the credit cycle that the market is somewhat concerned about.

Tito, I'll take that question. Thank you. Starting with the first one on NII, we do provide in the earnings -- in the Investor Relations detailed Excel where we open up the interest income. That's tab #6 called NII. And there, what you can see is that the income from securities has 2 things inside it. One is the proper income from securities, from the securities themselves as well as the income from the derivatives. And the income from the derivatives that come from the portfolio needs to be added to the interest income from the loan portfolio. We do that in that tab, and we reconcile the implied interest rate from the interest income from each of the products with the associated loan portfolio so that you can see the interest income of each of the portfolios after the hedge and before the hedge, both.

So from that delta of this quarter of BRL 186 million in income from securities, approximately BRL 130 million of those were from the portfolios themselves. So, you need to add that back to interest income. Again, that's in the Excel that we provide in the Investor Relations website, tab #6 called NII.

Then jumping to the second one on provisions, what you do see in the coverage ratio is an increase that we had throughout the last couple of quarters in anticipation of the seasoning of the private payroll product. It was -- we have been running for a long time at around 130%. When we were growing the early quarters of the private payroll product, we took it up to 146, but the delinquency being hit in as the product was very early on. And then as the product matures, then that consumption happens. And we're now around 134% coverage ratio. That answers the past. Going to the future, it will ultimately depend on the loan mix as the growth of this product and the future reshaping takes place.

There are some uncertainties there on the pace and speed at which those products will evolve and also the pace at which real estate, which has the opposite effect also will evolve. You saw last year, particularly in the second half, we had an amazing growth in real estate that pulls the number up because the coverage ratio of real estate, which has a high guarantee is lower than the average of the total. There are a few moving pieces. But to answer and give you a sense, we think that the number of around 130% to 135%, at least for the coming quarters is something safe to assume.

Our next question is from Neha Agarwala.

I have 2 questions, but can we first talk about the write-off policy change that you made this quarter? What drove that decision? What is the new write-off policy? I understand it's only on the credit card segment or were any other segments impacted? And I believe the benefit on the 90-day NPL ratio is 30 basis points, as you called out in your earnings release. But if you can just give more color on that.

Neha, I'll take that one as well. So yes, we did migrate a write-off for credit cards specifically from 360 days to 330 days in line with Resolution 4966 Best Practices and our ongoing commitment to aligning our accounting methodology with the highest industry standards. That's exactly the kind of proactive technical rigorosity that we want to have. And the rationale behind it is that our data shows that beyond 330 days, the recoverability of credit cards, in fact, is very low and trends to 0. Therefore, it's more accurate to move it to 330. In terms of financial impact, there is no effect in the cost of risk as this was fully provisioned by the day 330, 100% provision by them. And yes, on the NPLs, as the product lives shorter in our balance sheet, it has an impact of around 30 basis points.

On the overall NPL ratio, right?

Correct. We report overall.

The other question is on the private payroll segment. You mentioned that you recently started doing the linkages on your own because the data privy linkages is taking longer than anticipated. So how should we think about the delinquencies with that new connection being made? What are the early results that you're seeing? And I believe it started in last 1 or 2 months. So why didn't we start a bit earlier on that, which would have made delinquencies better in this particular product? If you can shed some light on that?

This is Sandy speaking. I'll take the private payroll loans on one. And I think it's useful to talk about 3 dimensions here, growth, credit quality and profitability. As you asked about credit quality, I will start there. So the first point is, we are operating on the higher band of our expectations in terms of cost of risk for the product. But despite that, the profitability is within what we expect. We're solving for like a marginal ROE of around 30% in the product, and we're moving all the levers internally to converge to this number as we go. So, since the beginning, maybe we were running at a marginal ROE a little bit higher than that. It came down with the delinquency, and we're moving it, but it's important for everybody to understand that we manage the process to deliver this marginal ROE of 30% in the product.

We have very good actions in process. You mentioned the relinkage. So, the relinkage is now being done with discipline, and it's helping the NPLs. This is an action that's already in place, but we do have more coming up. So to give you a few examples, we have the credit insurance, which is about to be launched in the next few days. We're doing -- and we're also doing the -- implementing some features to do easier renegotiations with clients and to do that in scale. This is specifically good for clients that have a new job but this job is with a lower salary. So you need to do renegotiations in this case. And we're also doing credit policy tune-ups that help this cost of risk. So the idea is to keep bringing and pushing this credit risk down to levels that are closer to low teens. That's kind of the view we have and what we're working towards in terms of credit quality.

Coming back now to growth. So we're very confident in the market size. We've been vocal about believing in between 200 and 300 in the relatively short-term. We believe it will convert to that. We're confident to keep on growing as the market grows. Today, our market share in terms of portfolio is at about 2.5%. And there are external factors that make the underwriting volumes adjust, for example, the interest rate caps, although we do see some positiveness in the interest rate caps. So, we had super high interest rates coming from some players, and we don't believe that's good for the long-term health of the product in Brazil. So, I think this is a good summary on the product. We're positive. We're moving the underwriting leverage to keep growing the portfolio, and we believe it's very well connected with what Inter needs in the future.

Just to clarify, any impact on the rate caps in your origination? I believe you're originating with the higher rate cap and without the FGTS guarantee. Right?

Neha, in the first -- there were 2 movements. In the first movement, we had a very, very small change because it moved from being free to having 4.99%, if I'm not wrong, or 4.9% cap. So we had a reduction of less than 5%, given that a very small percentage of our loans went beyond the 5%. In the second cap, we had a little bit stronger movement in the volume, but now it's under adjustment. So as I mentioned, it's -- we're going to keep on adjusting the process to underwrite more. And as we put the credit insurance in the next few days, it's going to help on profitability and could allow us to increase underwriting again.

Thank you all for the questions. In order to be conscious of the time, we're going to move to Joao's closing remarks. Joao, please go ahead.

Thank you very much, Rafa. Thanks for the audience. Thanks for everyone that just joined us. I'd like to share with you how happy and confident I am with Inter, happy because, as you can see, we delivered our best earnings ever, as we can see 13 consecutive quarters growing our net income. but also confident that we still have a big addressable market to go on, both on secured, unsecured, on fee income across the board. We still can bring a lot of clients to deep our relations with them. So this is very important.

And second, I'd like to highlight that you all know that Inter has been mastering the UX, the UI, the technology, the platform since we launched the first ever digital bank in Brazil back in 2016. But back then, we were still consuming capital. We're not deepening our credit underwrite portfolio with the clients. But fast forward 2026, we're able to manage that to improve the credit underwrite, to grow our loan portfolio to turn from capital consumption to capital origination creation at our balance sheet. This is very important. We have been doing the brilliant basics of a good banking operation. So when you combine the good banking operation with the best-in-class UX, UI and digital platform, it does take us to a very, I'd say, a very good future ahead of us.

Thank you all. And mostly -- I'd like to thank our employees for helping us on this journey, and I'm sure that the best is still yet to come. Thank you very much, and have all a great day.

Good morning, everyone, and welcome to Inter's Owners' Day. I'm Rafa Vitoria, Inter's Investor Relations Officer, and it's a pleasure to host you here today at NASDAQ. Thank you for joining us in a very busy week for Brazilian investors in New York City, and thanks to the audience online. Today, we'd like to take you on a journey through our growth road map. We'll talk about where we've been and where we are going and exactly how we plan to get there. We hope to give you a deeper and updated perspective into our future.

This is the agenda for today. In the first module, João, our Global CEO, will talk about the vision. We'll talk about the tremendous success of the 60-30-30 plan in the last 3 years and our forward-looking into the next 3 years. Next, the financial strategy will be detailed by Santiago, our CFO. He will tell about the Inter by design model, how that gives us a competitive edge, and he will unveil our approach to future growth and profitability. The strategic framework is what leads everything you will see in Part 3, led by Alexandre, our Brazil CEO, alongside Priscila, Rodrigo and myself. We'll talk about principality, deposits, credit growth and unit economics, how we engage with our clients and create value. We'll take a quick pause for a coffee break. And when we come back, we'll talk about the core enablers that makes our execution possible, our advanced tech and AI, our solid risk management, enhanced credit underwriting and most importantly, people who lead this transformation. João will come back for the closing remarks, and then we'll open for the Q&A. We'll take questions from the audience here as well as from online. You can send your questions through the e-mail, the [email protected]. We are very excited to take you on this journey.

Joao, the floor is yours.

So good morning again. It's a pleasure to be here to present to you Owners' Day for Inter 2026. As Rafa just mentioned, we're going to have a very exciting agenda. And I'm really happy to share with you what we're going to go over today. Before we start, I want you to watch a short video of Inter. Please, let's watch it.

[Presentation]

Every time I watched this video, believe me, I have watched it many times, I do get emotional. And let me explain why I get emotional. For those who don't know, I started in Inter back in 2004 as an intern. Back then, the company was a fraction of today. We were in the downtown of [ Del ], my hometown, in a 2,000 square foot office. We had back then maybe 50 employees, about $1 million, $1.5 million in book value and $2 million in revenue. So fast forward 2026, we see a company that's thousands of times bigger.

And what are the emotions that comes to my mind when I see this video, for instance. First, proud. I'm proud of what we have achieved. I couldn't imagine that back then, when I joined, I would be here today overseeing this company. I'm proud also of the execution that we're able to put since then. And I do thank all the employees for helping me to do that and to join me on this amazing journey. Also, confidence. I do see that every time that India sets a target, sets the vision, we can execute. We have been doing that for a long time. We went to IPO, we go there, we make it. We want to get the business more profitable, we will go there and we make it. And last, excitement. When I think what could this company turns out to be maybe 5, 10 years from now on, something even more amazing than today. So this is just to share with you how I feel about lead the Inter, build the Iter and be the one taking care of the vision of this company.

So let me share with you the agenda for my part. I'm going to divide it in 2 different parts. First, I'm going to cover the past 3 years. You all know that we unveiled 60/30/30 back in Belo on January 2023. You're going to see how we have been evolving, and I'm going to recap some good things that we have already accomplished. But later, on the second part, I'm going to take you to the future of India, how the company is prepared, how I'm steering the business in order to keep building value to our fellow owners.

Quick recap. Let's talk about 60/30/30, our North Star back then. We wanted to achieve 60 million clients. We wanted to reach a 30% efficiency ratio. And of course, as important as these 2 first metrics, we want to be profitable, and we were aiming for 30% ROE. When you see 3 years on the road, we have pretty much been on track on all these 3 KPIs. On clients, almost double the number of clients that we have today. Not only that, on active clients, we are improving even faster. When you say about efficiency ratio, this is very important. When we designed the first digital bank in Brazil, one of the questions was, is this business sustainable? Can it be efficient? And we can see that the efficiency ratio is the one that we are best positioned so far.

And last but not least, ROE. We know that for us to have a sustainable business going forward, we need to have a very good ROE, ROE that can surpass our cost of capital and can make us sustainable from a capital perspective. We're almost there. We have come a long way also. We were minus 1.7% back then, and now we are above 15%. So we're able to add around 70% on that metric. But as important as the numbers we achieved, it's what happened with 2 main stakeholders, our clients and our owners, shareholders. Our clients has always been a very important asset for us, an asset that myself, I do oversee personally. I like to see how they are behaving, how they are reacting and how do they feel about using [indiscernible]. I do that on a daily basis through social media and other tools. They have been ranked as the #1 app on Google Play and Apple Store. Also, from a brand perspective, we were named the seventh strong brands in Brazil. And of course, on the financial segment, the second best brand.

Now talking about our owners, our shareholders. Since we unveiled 60/30/30 in Belo on January 18, our share almost tripled. That's a lot of value creation. But not only we're able to print a good returns, but everything that is around that is also important. It's a validation from you, the sell-side analysts, the buy-side industry that Inter is executing the right things on the right direction. Now that I have showed you how we are on the achievements of 60/30/30, how our clients have been recognizing us and also how the shareholders are supporting our growth and our performance, I want to explain why and how we were able to execute.

Everything starts with the vision, which, by the way, is the name of my session today. What was the vision back then? We invented, we designed the first ever financial super app in the Americas, one that is 100% cloud-based, 100% digital, no brands at all and also the super app approach, the ability to put a lot of products in one single relationship. The super app has a complete banking solutions, commerce and service and also lastly, our global capabilities. But also around that vision, we're able to perform and to execute in 3 key areas: First, on the marketplace. As I told you, I'm personally overseeing how we relate with our customers, how they are perceiving our business and how they are interacting.

That said, we have always been printing a very good NPS, which today stands at 85 points. But also across the company, we have been improving the execution and the innovation across the board. A good example, it's our NIMs that Santi will deep dive later on. We have improved more than 200 basis points on our NIM due to a very good capital allocation and credit underwriting. And last, on our stakeholders, we have been implementing a lot of good things for our leadership. is going to share on the last session what we have been doing to make sure we have the right team, the right direction, the right alignment and a strong commitment. We call this framework DAC, direction, alignment and commitment. Personally, on the commitment side, I'd like to take a look what are the right incentives in place to make sure that we are focused to deliver what the plan tell us where to go, the 60/30/30.

Great. So I want to share here some achievements that we had so far, but also as important as the achievements, the opportunities ahead. I'd like to say that India is always celebrating what we have achieved, but we are always trying to raise the bar and looking for the future. Where can we take this company later? What do we want to achieve? Where do we want to improve? This is the spirit that we have at Inter. So let's take a quick look here. On the achievements, as I told you, we doubled the number of clients since we launched 60/30/30. Priscila, our Chief Client Officer, will talk about that later on. We not only improved the number of clients, but also the principality with these clients are growing faster. We also were able to improve how we allocate our capital, which is a very important resource for our bank.

As I just showed you, our NIMs are expanding. We are capital neutral, and we are going to keep improving our ROE to make sure that we have no constraint on capital. Deposit franchise. I'm going to take a break here because this is something also very personal for me. When I told you that I joined Inter in 2004, my first role was literally to go to the family and friends and ask them to deposit at Inter. And by the way, [indiscernible] was a client, if I'm not mistaken, in 2007. We were a friend at the school. And I have been looking at cautious and with a lot of focus since then. I do check our cost of funding and the quality of funding every single day through my Tableau report. And I reached out to [indiscernible], to Monica, to our treasurer and talk to them about that.

That said, I'm proud that Inter has the best funding in Brazil, not only on cost, but also on the quality, diversified in millions and millions of clients. But now let's talk about the opportunities. First, AI, which is the hot topic now. We have been using AI for a while, mostly on the back end. Gui, were going to show later on his session how we're using it, what we have ahead. But we also see AI playing a crucial role also with the relationship of our clients.

Cross-sell. Also on this section, we're going to see how the right engagement, the right principality drives upsell and cross-sell that help us on NIM and also on the fee ratio. Last thing, credit penetration. We have 2 important sessions, Mauro and also Marcus, which will show -- which will highlight to you how our credit engine is working and how we are protecting the balance sheet from a risk management perspective. Now that we have covered the past 3 years, let's talk about the future, the next 3, 4 or 5 years at Inter.

I'm going to start with this slide and I'd like you to bear with me because it's a very important one. When people ask me, what is behind the hood? What is on the back end that helps Inter to perform, to grow, to innovate and to gain principality. These are the 3 key pillars that matters. I'm going to deep dive in each one of them, our 3SA approach, which stands for single Smart Super App, our data vault concept and 7, our latest unveil, our multi-agent platform. Let's start with SA. As I told you, we designed the first ever financial super app in the Americas. The SA concept is behind the scenes to make it possible. What does it stand for? So single, we have only one login for you to use on your checking account, on your brokerage account, with your Brazilian account and also with your U.S. account. This is true for the Americans that use our app for the Brazilians and now also for the Argentinians. One login to access all the products that we have.

Also, it's smart. We have different types of apps with different interactions for every single client. So we can really help them to achieve and to get what they need at the time that they need. This creates more credit penetration, more collection capability and more cross-sell. Last, the super app approach, which, again, I'm really proud to be the one behind this innovation in Brazil. What does it really stand for? It stands for having 180 products around 7 different verticals. credit, banking, investments, shopping, which Fabric will cover later on, also insurance, loop, our loyalty program and also our global account capabilities.

Now let's talk about Inter Data Vault. Since we started with this approach, no brands, 100% of the interaction digital, we start collecting a lot of data, a lot of data signals. Data signals from, as I just mentioned, transactional behaviors, photo post or social media from banking, shopping, investments and insurance. All that starts in our AWS partner. Gui also will talk how much of data we're bringing nowadays. We later use this data to improve credit underwriting, fraud prevention, cross-sell and upsell. Now 7. As you might know, we just released 7 to our customers, to our clients a few weeks ago. We have been running it on the back end for our testers, and now it's open for everyone. Back then, we used to have maybe twice a month a new version of our app released.

Now we are aiming to have one new agent every 15 days being deployed at 7. These agents will help our clients to cross-sell, upsell get more credits and so on. Pri and Gui will talk a little bit about that later on. When you combine these 3 elements together, we really built a flywheel. So more touch points with the SA concept help us to bring more data signals that we store in our data vault. Therefore, we can use them to cross-sell more, interact more. And therefore, we get more data, more information, and we get this flywheel keep going and going and going.

Okay. Now that I have covered the foundation behind the future of Inter, I'm going to talk about the balance of growth and profitability. As I told you, I have always been focused on growing Inter and also making it profitable. I do believe that this balance is what makes us myself as a controlling shareholder and my fellow owners proud of the company that we are building. We need to have this sustainability approach in our mindset. So as you are very familiar, we had back then the 60/3030 North Star, which was very important to guide us. We were able to have all the team focused connected with the right to achieve the balance of growth and profitability. But at Inter, we always want something more, something different. And with this long term in our mind, with this right balance of growth and ROE, we're adding another layer on top of 60/30/30. I'm sure that you are curious about what I'm going to present here. But it's a very good thing, a very challenging approach that will make 60/30/30 even better and help us to keep growing.

So I present to you firsthand our new North Star that, again, we're building on top of 60/30/30 that will guide Inter for the years to come. We call it the Rule of 50. For those that are familiar with the Rule of 40 on most of the tech companies, you know what we're talking about. But here, we're putting a notch above. We're taking it to 50. And what does it stand for? What does it stand for? The right combination of growth and ROE because Santi will share with you later, size matters. We want to have profitability, ROE, sustainable capital formation, but also we want to have size. We want to bring clients, but we want to bring revenue. That said, this is what we're going to be guiding. This is how we're going to be guiding us for the next years. Santi will deep dive on that plan and show you how it will translate to unit economics, growth and profitability.

Great. So now that I have shared with you our new North Star, just to finalize our better plan for the future. So first, our execution focus. We want to keep being diligent with our deposit franchise, which I shared with you is something important for me. Also, we want to improve credit penetration. I believe that after you see what Santi will tell you on the front that we have and our credit engine that Mauro will show you, you'll be confident that we can keep growing credit penetration. and also principality. We know that every relationship with Index matters. Every client matters, and we have the opportunity to upsell and cross-sell.

One important thing on principality. I'd like to say that our brand today is bigger than our transactional business. We have 9% of the fixed market share in Brazil. But on most of the credit portfolios, only what, 1.5% to 2% market share. We know that with the right deposit franchise, with the right engine behind, we can grow to something close to this 9% market share. Also important, what are going to help us and to enable us to keep pursuing this trajectory. We call it our core enablers.

Tech and data. We do have the best data in the market. Again, we get the data from different signals every single day, and we have the best tech. We started from the scratch, a digital bank, 100% cloud-based with 180 products. Also, we have the right risk management approach. You see on Mauro's presentation that we are overseeing all the risk from capital perspective, asset liabilities. So we are growing fast, but on a protected environment. And last, people. Thais, our HRO, will show you how we are approaching that important resource from different perspective, the right talent, the right direction and also the commitment that we bring in place.

Now that I have covered the past of FES, the future of FES and that I have presented you Rule of 50, I'm going to invite Santiago to the stage to share with you the economics behind that plan. Santi, please join us.

Good morning, good morning. We are excited to be presenting here the new plan. In the next 25 minutes, I'll be talking about 3 fronts specifically. First one, a very quick overview of the industry and how we fit in it with a different angle, which we think is important to connect to the financial components. Then the inter by design formula, the way we see our magic secret sauce on how to operate and produce Alpha. And lastly, deep dive on the Rule of 50 that João already introduced.

So let's kick it off. How was the industry 10 years ago? You are very familiar with it. I'll pass it first just to set the stage on where we want to go. It was highly concentrated and [indiscernible] in all of its terms. Super terrible distribution going to a branch was known to be more painful than going to the dentist at lunchtime and highly overcharged consumers. That was the fact, all of the IPO pages of the Brazilian fintechs had the same intra page. But the good thing is that 3 waves came to change that. The first one, the best regulatory agenda globally that we know of with many different initiatives. PIX is the most iconic one, but now private payroll is very interesting.

There's a clearing house of invoice discounting for SMBs that's coming, which is also very exciting, a really differentiated agenda that many other countries or central banks try to mean it, but very few did it so well as the Brazilian Central Bank did it. So kudos to them. Mobile banking, this is a worldwide phenomenon. The cost of smartphones decreased exponentially and now everyone has a smartphone in their pocket, therefore, a branch and banking doesn't need branches, as you know, and that makes it easier for the digital native players like us. And then a massive inflow of capital, $25 billion between private and public came to finance all of the different initiatives. And this led to a massive growing accounts, although this is known, but it's important to connect with what's coming later. So that number of accounts grew to BRL 1.4 billion, and there are no longer fees for things that make no sense, right? No one charges for opening account, keeping an account open, transfer money to individual.

That is gone, and therefore, the fee incomes in the industry went from roughly 40 to 20. And we were instrumental in that space with the launching of the first free digital account back in '17. The not-so good part of this disruption was a massive growth on the unsecured credit. It went from BRL 240 billion to over BRL 1 trillion by now. This is our debt that have more than 100% of APR. It's a combination of credit cards and personal loans. We do operate on credit cards, a lot more on the transactional side. That's why we have so much transactors on our TPV. But the reality is that the consequence of this is that the cost for the Brazilian families went from roughly 20% to 30% of the disposable income to serve this debt. And this is despite the size of the debt not being that high, household banking over GDP relative to what we see in other economies. The issue is that it's a very expensive one.

We can see this from the TAM and this is not the revenue, this is the loans market. There's a BRL 6 trillion industry composed in 3 columns. I post this slide has a lot of information. But on SMEs and corporate that we operate very little yet, BRL 2.7 trillion; secured lending, BRL 2.6 trillion and over BRL 1 trillion on unsecured. The path we took to attack that TAM, we think is differentiated versus what we see elsewhere. We want to disrupt the middle column, the orange column. If we see that the market share that the first one has is 63%. So there was around 20 percentage points that was disrupted already on credit cards and personal loans. But the market share from the 5 incumbents in secured is still above 80%.

So this is why don't perform disruption. The question that comes is, well, what are the unit economics of those products? We will talk about that. But the reality is that here, there's a huge opportunity. And this, as one of you investors, I'm not going to say who tells us, these are products that we would sell to our families. We would recommend to someone, get a mortgage, get an FGTS loan, get a home equity loan, get a payroll loan, it makes sense. And we think that with our cost advantage, I'm going to talk about in the second point, we have a lot of value to create for us and for the client. And that's the winning formula in our view, which takes me to the second point, the formula, the inter by design, the way we call it.

First component, sustainable revenue growth. The key word there is sustainable. João touched upon it a bit. It means that it's for long, it's good for the client, it's good for us. It's diversified. scalable distribution capabilities and unique cost efficiencies. Here, the keyword is unique due to the combination of the 2 cost advantages that we have. Page 8. I'll walk you through it. The first one, sustainable lending. These are the interest rates in the industry as published in the Central Bank. By the way, same as what we did in the 60-30-30 announcement. All of the numbers that are in the presentation, we're going to provide an Excel with all of the links and sources that's going to be downloadable from our Investor Relations website.

You're going to be able to trace where these numbers are coming from. This is Central Bank data on the stock of the interest rates of these products. So therefore, 14% in the stock is a bit lower than, for example, the new originations that are happening now. But anyway, the point is the orange products are the ones we service. We think that those are a lot more sustainable for the client and therefore, for us as well. Private payroll is obviously starting up higher because it's still rough around the edges in terms of operational recoveries and so on, but that's improving day by day. We'll touch upon that in [indiscernible] section at detail. And the part that we think is not that sustainable, which is the 100% plus products. This is the sustainable component.

This page has a lot of data, but we like it a lot because it represents -- it shows the beauty of our super app. On the left-hand side, we can see the number of quarters that it takes for a product to scale. I'm going to choose 2 extreme examples just to make the point. On savings deposits, it took us 30 quarters to reach 2 million clients. And a more recent product, Interloop, our loyalty program was born with more than 2 million products. So what we see is an acceleration in the adoption. Obviously, we have more clients as we grow, but also the speed at which they adopted as a consequence of the selling strategy that we have, knowing when to sell the product through hyperpersonalization makes the results be stronger and stronger through time.

On this side, we show the market shares that we had when we announced the 60-30-30 in January '23 versus today. And what we see is that in many cases, the market share grew multiple times. Now for example, Treasury Direct, FGTS loans, home equity loans and so on, even in peaks, which started at a high level, we continue to grow. We used to say that our target market share for the credit product was the PIX market share, and we wanted to have the credit catch up to the transactional side. Unfortunately, we see that already in home equity, for example, we passed that market share. It is a niche product, but it's a product that we like a lot. We have around 10% market share, and we think it's a TAM that will grow significantly.

So good progress on market shares as a consequence of product adoption and selling products that are sustainable with quality. Third component of the formula is the combination of 2 very strong cost advantages. We talked a lot about cost of funding, and I will touch upon it later on Sander's section. But what I would share with you is since I joined Inter, I get the question, how much longer can this cost advantage last? If SELIC goes to 15%, what will happen with your deposit mix? This is not here to stay. million times, the same question. We're back in -- we're now in 2026, May, SELIC at 14.5%, was at 15 until very recently. The cost advantage is still there because the clients use Inter for their day-to-day banking needs. They keep the money in the account. They use it to pay their daily needs, and that's a very powerful cost advantage. And even more with something that did change since the last Investor Day is our cost to serve went down very strongly.

This is an all-in cost to serve or fully loaded, which means SG&A, we added active clients, no exclusions whatsoever. So a fraction of what we see in the incumbent banks. Another question we get, when will the incumbents catch up? We don't see that yet. And then the other one is the difference versus the other fintechs. We're very close to them, in some cases, even a bit better when we put the entire cost base. All of these 3 elements together, we get this combination, which we think is really powerful. Revenue growth, 30% plus. We can see revenue on gross net of cost of funding or net of cost of risk is 30% plus in whichever way you want to see it. And if you choose different starting points, 30% plus consistency. This is what we try to pursue, and it's in the spirit of gaining critical mass, as João said, with size matters.

That level of growth, which requires investing upfront in provisioning CAC and so on, still enabled us to have ROE growing and passing the cost of capital. This for us is very important. We printed BRL 1.4 billion last 12 months, was roughly BRL 400 million, which means the run rate is BRL 1.6 billion, ROE of 15.5%. We put this on the earnings presentation, the return on tangible equity, 19.5%. -- true that we have some CapEx there. But if we take out just the intangibles from the formula that one of the investors mentioned is 18% return on tangible equity. And on ROA, which is another way that we see it, we reached 1.6%, which is more than the 5 -- any of the 5 large incumbents, 1.6% ROA. So very powerful combination, 30% plus ROE -- revenue growth with ROE expansion, which takes me to the third topic, the Rule of 50.

So first, I want to address the 60/30/30 a bit more detail. the 3 numbers or 6 characters, the 30, we are a lot more convinced that they are achievable and that we will achieve them now than when we announced them a while back. 60 million clients, it's a matter of time, how much we want to spend in CAC. 30% efficiency, we came a long way from the 75% to the 44%, a lot more to come, particularly this year, and that still has very little of AI embedded in those improvements, a lot more to come. And 30% ROE as well. I will talk about marginal ROEs in a second. And on top of this, we create the Rule of 50. And the Rule of 50 has the beauty that it combines growth and profitability. And the reason why we wanted to present it is because that's how we think about the business and we make decisions. So we wanted to have a metric that is consistent for the market with the way it is for us internally when we make strategic decisions at the company.

On the base, we have the profitability or ROE. What you can see first is that this line grows. So we expect to continue to have incremental improvements of ROE quarter after quarter. Obviously, life is not linear. So you have some buffer there, but we expect it to continue growing as it has been. We'll talk about what this final number will be as well. And second, the growth element, super important matters, I'll cover in the next page. And 2 observations. First, the 60/30/30 was our North Star by the end of a period, which was a 5-year term. Here, we have the Rule of 50. So you see the 50%, 4x -- so we want to hit it here. We want to hit it here, here and here. So it's not an ambition of we want to get there. We have been operating at 46%, 45% in the last 2 years, and we're raising the bar this year where we have a pretty good visibility on our performance.

So I'll touch a bit on growth and then a lot more on ROE and profitability. On growth, just a snapshot of where we -- how we got to where we are now, EUR 2.4 billion of net revenues this quarter, up from EUR 850 million. So we tripled them. How do we get that? Asset growth was roughly 50%. NIM expansion, 30%, a lot of work there on capital allocation and making NIM expands and fees, which is approximately 20%. The accounting with 496 makes that number look a bit lower than what it really was, but still 20% at least on the books. And on profitability. This is the last page that we had in the 60-30-30 announcement back in January '23. We closed the full day with this slide, which showed us the path to get to approximately 30%.

It has 3 components: growth, which comprised of CAC, expected credit losses and excess personnel for the size of the business that we had back then. The repricing, we used to talk about this a lot. We had a lot of loans issued when the Selic was at 2% on mortgages and payroll. And then a lot of excess capital, our CET1 ratio was 44% back. So we had 3x the level of capital that we needed. What did we achieve in 60% of the time? Because remember, this was a 5-year plan, end of 2027, where in 2026. we achieved I'm going to start in the middle. Almost the entire repricing, so this diligency on putting our capital to work on ROE accretive ways was very meaningful, and we repriced a big component of real estate and payroll. There's a bit more to come, but a majority of it already happened, and we canceled a debt that we had in the holding that was required to relisting NASDAQ.

On excess capital or growth, we delivered 6 points out of 11. Here, we have a lot of the efficiencies improvement as well. The bridges are never perfect because they require combining a few factors, but a pretty good progress on capital efficiency. And on growth, not so much, we still spend on CAC and expected credit losses. We still have more room for operational leverage with employees as well. So that front was intentional and we wanted to continue spending on growth as we see this opportunity to get more sites and materiality. By going from where we are today to the future, we see our target ROE, again, as I mentioned, around 30%, 28%.

We keep the 28% as base with a range of 26% to 30%. This is for 2029, right? It's a 3.5-year plan and not a 5-year. Why? Because we think that it's more prudent to model a bit shorter in the world that we're living now with many things that are moving faster. our components from 15.5% to 28%. First on credit underwriting. The stock of our loan book is running at 12%, and we are originating at 22% right? So the point is to take the loan book to 22%. This is the largest ROE driver that we have going forward. We think that we have improved a lot here, and we have more to provide to the financial statements through more disciplined capital allocation. Second one is capital efficiency. We're underlevered 9.6%. We can take it to 11%. The market is running at close to 13%. That's natural 1 to 2 percentage points of ROE expansion. Treasury optimization, we are still early stages on this path.

We have hired a lot of people from treasury, many from your industry. We have a few low-hanging fruits to improve ROE from treasury as well. And last, cost efficiencies and revenue expansion, we have also opportunities here. This number may be understated because it's difficult to quantify how much efficiency we can have from AI. So we have some sense here. So I'll break down this in 4 components. So what do I mean by going from 12% to 22%? The marginal ROE that we're putting our capital to work today is 19%, which is the sum of this. Every week, we have the report from treasury portfolio by portfolio, we put all that together. We are originating at 19% ROE. The money that leaves the treasury to the credit book has a marginal ROE of 19%. But inside that 19%, we have short-term loans like supply chain finance, invoice discountable.

We buy residuals of credit cards from other places that are guaranteed by the flows. That's temporary allocation of capital in products that are CDI plus 50, CDI plus 75, 100 with a low ROE, but we get -- but they are NII accretive, like we like to say in our executive committee meetings. And those will be transferred to the core book as long as we have credit demand to put that capital to work in there. So in the meantime, we park the excess liquidity in things that are not super efficient from an ROE perspective, but are accretive to results. So the plan 2 Capital or leverage, it's quite straightforward. [indiscernible] We want to take it to around 11%, not so much as the median of the large banks as we grow more. So we want a bit more cushion. On treasury optimization, 2 notes. These are simple examples that allows us to picture. We still have inflation-linked notes at inflation plus 3.5%, which are low relative to the Selic, is roughly 8%, 9%. And just by the passing of time, a few of them will mature or will be closer to maturity. And then we have a point of ROE expansion there by doing nothing and letting time go by.

On [indiscernible], these are the SPVs in Brazil. I'm sure you're all familiar with them. We hired someone from your industry that created the private book to invest the excess liquidity, not at this ROE that is lower, but at higher levels. We already deployed BRL 1 billion. We want to get to BRL 7 billion by '29, very low RWA if the structure of the subordination is well made, at least a point on ROE. These are not franchise-enhancing features, but ROE enhancing features and where we will pursue them too. And then on the last point of the prior page, we have 2 elements to say. We have a J-curve naturally on certain products that we started recently. We are investing to sustain that 30% ROE growth through the future, and there's no way to avoid the initial investment that happens in them. SMBs and Interpac, Sander will talk a lot about that. On SMBs, we are very advanced on the transactional deposit side, not so much on the credit side.

We're investing, acquiring the same and global as well. João mentioned it a bit. And then on AI from the financial lens, things that we know and things that we don't know. Things that we know, headcount with no growth. Thais will mention about that. We are running at 4,000 employees, same number of employees we had in the 60/30/30 despite the company being more than twice bigger in revenues. And we likely will continue with that and maybe even lower. Hyperpersonalization, we already see very tangible revenue or sales that have to do with the [indiscernible] chart of the product adoption. Seven, Joe also mentioned. Things that we don't know is when we look at the list of our top providers, I don't want to mention names because a few may be around, but big global tech companies that provide Software-as-a-Service functions, those costs will go down.

How to model that going forward, difficult to do with precision, but they're not going up, right? And we see a lot of pitches from AI companies who were in San Francisco 2 weeks ago saying, test us, we can do this for you, and we'll do it at a fraction of the cost. So a lot to come here on the big ventures. Consulting fees, for example, we have over 30 law firms advising in Sao Paulo and on different fronts. We can shrink that also a lot as we go along, no offense to the lawyers. And then the last one to close to give a bit more precision, one of the feedbacks we got to 60/30/30 was it's a North Star what happens in the middle. So that's the reason why we put the 50 Rule of 50 every year.

So we give a bit of clarity on how that moves year-by-year. And we also provide this page, which shows an indication of the ROE in the near term, and I get the question what does near term mean and in the medium term. And the ending point is end of '29, right? So 2 to 3 percentage points of ROE expansion in the next 12 months or 4 quarters. We have pretty good visibility. It's more of the same. This is independently of the asset quality, independent of the J curve, independent of AI. We see 3 to 4 percentage points of doing the same that we're doing and maintaining the growth profile that we have been maintaining. And the remaining in the medium term from now to the end of '29 is not linear. There's a bit more percentage-wise here than here, we acknowledge that. But this is a year where the NIM expansion, the risk-adjusted NIM expansion will be more impacted by the scenario macro that we're living, and that's the reason why it's not so linear. We have a better prospect on that going forward from 2027 onwards.

To conclude, point number one, huge opportunity to disrupt the secured lending market that's wide open for disruption, and we're in the middle of the fairway, uniquely positioned to make that opportunity capitalized. Second, profitable growth. No one has the combination of cost of funding with cost to serve, scalable distribution and sustainable, sustainable revenue growth. And lastly, a Rule of 50 that has a commitment year after year from now to 2029, balancing growth with profitability by selling products that we would sell to our families.

Thank you very much. I'll pass it to Alexandre for the execution.

Hello, everyone. I hope everybody is as excited as I am with what we have learned and learned listening about Rule of 50 and everything we have ahead of us. My mission this morning is to get everybody absolutely convinced that we're ready to execute, that we have everything in place to deliver each piece of the plan. And I'm Alexandre Riccio. If you hear Sanji or Alex, that's me. I'm Brazil CEO at Inter. And for this part, I'm going to have Priscila, Rodrigo and Rafaela with me on stage. And to talk about execution, we have simplified our business into 3 building blocks: principality, deposits and credit penetration. These 3 blocks together build our monetization, and that's exactly what we're going to talk about.

And to start, I invite to the stage, Priscila. Pri, please join me.

Hello, everyone. Good morning. My name is Priscila. It's a pleasure to be here today. I have been with Inter for more than 15 years, and it's amazing to see how much we have evolved since then. From day 1, I have been obsessed with delivering a great customer experience while driving revenue growth and engagement. And that's the reason why today, I'll talk about principality and why this strategy is so important for our business plan. But before I start that, let's start with our foundation of growth. We have been very successful in adding more accounts.

Since 2015, we have been able to grow from almost 0 to more than 44 million of clients. That's amazing. That's incredible. But again, scale alone does not create value. What really matters is engagement. And that's exactly what we have been doing at Inter. We have been able to activate more accounts, make our clients adopt more products and, of course, making them use Inter as a primary financial relationship, and that matters. We will get there.

How does this connect to the Rule of 50 that João and Sanji just mentioned? And why is that so important for our business model? Well, deeper engagement leads to stronger principality and stronger principality is equal to monetization. So let's take a look on their economics. As Chief Client Officer, I am highly focused on unit economics, CAC to LTV, ARPAC, engagement metrics, churn and of course, principality. We have been very successful in adding more accounts. We grew in 2025, 20%, our account base. But in principality, we're able to grow by 30%. So this is very important. Me and my team are very and highly committed with that. Let's take a look on their economics in 3 ways. First, their ARPAC is much higher. They are very engaged with us. It's actually twice as high as the average client.

On the CSI, the cross-sell index, it is also much higher. They adopt more products. It's much easier for them to go log in and buy more products. And of course, for lifetime value, principality matters. They stay longer with us. They don't churn. In fact, their churn is almost 0. Again, we can fulfill their needs in only one app. It's pretty simple as that. Well, so principality is not just an engagement metric. It is a powerful economic engine. And why is that? Again, deeper engagement, deeper relations takes us to higher engagement and also a greater cross-sell and, of course, higher monetization. And that's exactly what we have been building at Inter.

But how do we do this at scale? How do we increase pity? We do it by our SA approach that João has mentioned earlier. Again, 3SA stands for Single Smart Super App. Let's start with single. One app, one experience, everything combined in only one place. You can find everything that you need in only one place from investments to your balance, everything that you need credit, you'll find in our app. This is great for us. And I'll tell you 2 things that is great. One, for cross-sell, it's perfect. If a client comes in and check their balance, it's a great opportunity to sell investments or any other product. And the second thing, it is great for lifetime value because it doesn't create friction. You don't have to go in multiple apps. You just have to come to Inter and find everything that you need.

Look at most competitors do. They have multiple apps for investments, for credit cards for global accounts. Here at Inter, they can find everything in only one place. And again, that matters. Friction leads us to churn, and we are on that. Now let's jump into smart. By hyperpersonalization, we understand each client. We use AI to understand and adapt our app. In this room, right now, we have more than 100 apps running for sure. And I know that many of you have been the app. So I invite you all to log in, chat your home screen and compare with the person sitting next to you. You will see, for sure, different apps. I'm confident about that. And that's very important.

You will see, for sure, different apps. I'm confident about that. And that's very important. Again, it doesn't matter the size of our client where they come from, their age, their income, we will adapt to their reality. And this matter for engagement and it matters for cross-sell as well.

And Seven, we just launched, and Guy will deep dive on that later on. It's our AI hyper personalization that helps us to not even -- there's no need to search. We anticipate everything that the client needs. We prioritize. We help them to navigate and help us to cross-sell and to engage more.

With that, I'll call Rodrigo over to the stage to talk about our super app. Thank you all.

Thank you, Priscilla. Very impressive to see how smart we've got so far and also delivering hyper-personalized content as well as intelligent tools, now with Seven, our new AI, right. And single being single is also very important because we don't have to download so many apps nowadays, creating unnecessary friction in the end of the day. So that's quite interesting. And for me, it's very special to be here today because 7 years ago, when we launched the strategy, the concept of Super App, Inter Shop was a key element on that. And fast forward that to today, we're delivering over $1 billion in terms of revenue of GMV and sales. So that's very interesting. But today, what I want to share with you is why our Super App is very important to diversify, monetize and engage.

We have over 180 different products, financial and nonfinancial products, all spread out across the 7 different business verticals that we have. No other digital bank has this [indiscernible] of offers that we do. So that puts us in a very, very strong position and very unique to deliver a one-stop ecosystem. And the transactional products are the key engine to deliver day-to-day engagement, especially as we mentioned about engagement a lot. Let me give an example.

Loop, our loyalty program. Loop, you can earn points as a loyalty program, you can redeem those points. But what becomes interesting is that, for instance, when we think about shopping, you can shop at Inter Shop, earn those points and redeem for future purchases. When we think about credit card spending, you're also earning points. But what is great is that you can redeem those points to pay your credit card statement, which is something very new. And my favorite, you can also redeem points to get dollars into your global checking account, like most of you have a global account today, I hope, and you can use that on an everyday basis.

So this really creates an engagement piece where we feel that it's less transactional and it's more rewarding. And that's quite important because it creates a daily routine to our clients. And when we understand this relationship and we see that Loop is really driving engagement, we see that today, clients that use Loop, they have 2.3x more product usage than no Loop clients. Bear in mind with me with that. That creates a very, very long flywheel for everything that we do.

Most important, in fact, we have 18 million clients today who are looped in already with our offer. And we just started that less than 3 years ago. So we're growing very fast, just getting started. And not only Loop, but across different verticals, we can see principality playing through different mechanisms. Let me give you some examples here.

On the left side here, when we see frequency of views, we have global account, and we also have shopping. Let me explain a little bit more. With global, you have trips and you have remittances that are driving daily routines across. We're going to talk a little bit more how many transactions we are making across the board with global through fast rails. Shopping, we're creating day-to-day new routine for our clients, new lifestyles with credit attached to it. In fact, we have 1.6 transactions per second happening going through our Inter Shop, which is delivering a lot of things.

And on the -- if you look on the -- sorry, on the left side -- on the right side of view, the long-term relationships. So when we think about investments, we're creating from the Piggy Bank to the international investments a focus that is democratizing investment in a way, but we're also delivering sticky balances where the custody of wealth, it is very, very hard to move from one institution to the other.

And the other part, the last one, insurance. When we think about insurance, we're also generating our insurance brokerage franchise, generating cross-sell to protect all these assets that I've mentioned. So in the end of the day, guys, what we're seeing here is that it's not only one product -- transactional product over the other, but it's the combination of all these products together that generates the engagement. And we see on the bottom, lots of millions of clients that are already using and being organized that.

So after talking about diversification and about engagement, I want to finish talking about monetization, right, otherwise, we can be the Rule of 50, correct? And when we think about our fee revenue from all these products that I mentioned, today, it represents more than 20% of Inter's total revenue. So this is why having a Super App is very, very important. And we are just getting started.

With that, I resume the first module here with principality and I love to call Sandy to talk a little bit more about deposits and credit. Thank you very much for your time today.

Thank you, Rodrigo. It's great to hear about 3SA, Seven and Principality. And we see that Inter is all about the ecosystem. It's not about a single product. It's not about a single service. It's really a very robust ecosystem, 180 products being potentialized by technology, whether it's 3SA with the app, whether it's Seven conversational environments, that's what it's all about. But we know that great banks are built on great deposits. That's why it's so important for Joao. That's why he looks at this all the time. That's why I look at this all the time, and that's why we want to keep having a very strong funding and deposit franchise. And to talk about our deposit franchise, I'll go through 3 dimensions: so our transaction platform, our deposit base and through some key aspects of our value proposition. And to start, I'm going to talk about transactions.

When we think about transactions, it reminds me of 2016 when we started looking and we were ready to launch the digital banking scale. So believe me, we had, at that point, 30,000 transactions monthly. Fast forward 10 years, today, we have 1 billion financial transactions every month. That's our running rate. So we did bring a lot of transactions. And what do we get by getting transactions? You get flow, you get a lot of flow. You get through retail relationships. We become the bank and the platform of the day-to-day of these clients. Flow brings float, float expands revenue, so we see Inter with a cost of funding of 64% of CDI. Where is this coming from? From money in the clients' accounts that's parked there and this money has zero cost. That's what is dragging this cost to 64% of CDI.

Also very important, this transactionality is improving. Why is it improving? Because our platform is improving. Back in the day, what was the advantage? Free check-in accounts, so free transactions. What are the advantages today? If you're an SME, we have all the suite of APIs so you can connect through your ERP through many different ways and do all your transactions. If you're an individual, you have the best PIX in the country. If we look at Central Bank ratings, we've been forever with a AA score in PIX. And we've been evolving the platform to deliver great in-app experience, but also experiences at Seven, experience through WhatsApp. So we are with the client where the client is. Result of this is another spaghetti chart. We like spaghetti, and we've been growing transactionality and relationships are coming faster and more intense as we move as we can see on the darker spaghetti over there.

With this flow, it's not -- we see that it's not only about the money on the accounts, it's also about helping clients save to helping clients deposit. And that's what we see in the growth of our deposit base. We're at BRL 74 billion number -- 1Q '26 numbers, with a CAGR of about 30%. So strong growth. Important to mention here that BRL 74 billion is, I'm going to say, only what we have in Inter's balance sheet, in the bank's balance sheet. We're approaching BRL 200 billion in AUC. What is this? The flow of money that we get in the platform and as we help people diversify, doesn't go only into CDs and LCIs, which is a letter of credit. It goes into their diversification. They may be buying CDs from other banks. They may be buying treasury direct from Inter and many other products. That's why we keep on growing the base of funding, but we also use this excess capacity to monetize in products like investments.

So we're proud about this. This is a very well-diversified deposit base. It's all retail, about 60% individuals, 40% in businesses. It's sticky. We say that these are true core deposits. For those who don't know what a core deposit is, it's a deposit that comes from a sticky relationship, a long-lasting relationship. And what comes with a deposit like this is that it stays with you for a long time. And when is this important? If you have a growing credit base, which is exactly what we have because you need to have consistency and you need to have abundance. We have an 80% loan to deposit, which is really good to support the lending activities.

Finally, our value proposition. Through this, say, 10 years since we launched the digital account, we've built a lot of trust. So where do we see this? Super high NPS, Joao talked about it already. This year, we were positioned as the second best bank in Brazil according to Forbes. And last year, we got many, many, many -- in many, many different rankings of strong brands. We do have one of the strongest brands in the country when we think about retail banks within not only retail banks, but also with retail brands in general. And also very important when we think about investments and it's linked to deposits, it's the variety of products.

Today, we have 32 different investment products -- investment classes and subclasses so people can truly diversify with Inter. And what this gets us to is our crown jewel. We're confident we have the best deposit franchise in the country today. And what this is bringing is a very low cost of funding, as I mentioned, it brings a lot of data, both from transactions and from the deposit business as people are giving all this information that can be used for credit underwriting, but also for cross-sell and a lot of different activities that we do at Inter. It brings us the lending power, as I mentioned, the 80% -- consistently at an 80% loan-to-deposit ratio, which is a number that we're able to adjust as we need. If we wanted to have a 75%, we would do it. We're comfortable with 80% loan to deposit. And finally, all this together brings in the stickiness that we need in the deposit base.

So with this, I move next to credit penetration, which is something that became extremely important to us, primarily in the last 6 to 7 years. That's why we have dedicated a lot of focus on getting all the capabilities and these capabilities allowed us to keep on growing in this business. And to start, I'll talk about something that Santi and Joao talked about, which is size matters. We do have today a base of 44 million clients. This is a strong base. We have 25 million active clients and the credit underwriting and penetration journey is not starting. We're already at 9 million active clients, so 9 million clients that have an active credit product. We do have -- we do see this growth in number of clients also close to 30% at 28% 3Q '22, when we launched 60/30/30, we had 3.7 million active clients with credit. Today, we are approaching this 9 million mark. And we know that we have a lot of room to grow as we see that our share of wallet in the clients of the 44 million base is still low, giving us a lot of room to keep improving as we were able to cross-sell. And this is something that AI is going to help a lot.

As most of you know, our credit strategy is based on the secured and unsecured strategy. 2/3 of our portfolio is secured, 1/3 of our portfolio is unsecured. Marvel is going to deep dive a little bit more on this. And we have a variety of products. But today, I'm going to focus a little bit more time into 3 of them, private payroll loans, real estate loans and credit cards as they are the key drivers of results in the short term.

So private payroll loans, this is a large opportunity, and it proves that it is possible to do secured lending in scale in retail banking. So this is a product that after 1 year, we already have a portfolio of BRL 2.5 billion, very close to 600,000 clients engaged with the product. We have a 2.4% -- 2.5% market share, and we've been underwriting with our style, which is like move forward with caution, executing and growing as much as we can given our credit appetite, very consistent. The market is growing. End of March already passed BRL 100 billion. We do see this market going beyond BRL 200 billion as we move forward. And it's truly a product where it's on meter by design. So it's sustainable. It has a lower interest rate than personal loans. That's why we believe we need to keep expanding our portfolio on it.

Where do we want to go? We want to double our market share by 2029. So we're going to keep on investing on the product, and we believe we have what it takes to get there. So the distribution is there. We're doing a lot of credit underwriting through the app, through the CPT apps, which is the government website, which this website -- this app is actually a smaller part of our underwriting. And we recently launched WhatsApp, which already started as a very powerful distribution channel. So we can distribute. We don't have any product conflict meaning that we're not going to cannibalize other credit lines to expand on private payroll loans. We have the track record. This is important as on a very similar product that was the FGTS loans, we have more than 3.3 million clients. These are clients that come back in the FGTS, for example. We're talking about 5 to 6 contracts on average per client. So it's not like a one-shot relationship. People come, they do one, they come, they do again. And we believe the same thing is going to happen with the private payroll loans.

And finally, we do have the structural advantages that allow us to keep on growing in credit, which are Santi mentioned, cost to serve and cost of funding. These are 2 very important aspects.

Little bit more juice on what we get from the private payroll clients. So first, a lot of cross-selling, 50% more products per client if a client is a private payroll client. So this is, once again, not a single product relationship. These are deep relationships. ARPAC does get a lot higher than the average client. We go from 57 to like a 4x that number at 232, and we operate at a high ROE. This is especially important for us. Every credit product that we're underwriting today, we have a clear strategy on. Private payroll loans, we know that it's -- again, it's a core strategy product. It's a high maturity product. We need to underwrite at a high ROE. We are underwriting at 30%-plus ROE on a marginal basis. And it's really something that's within the culture now. We've been making sure it's on everyone's mindset, and we're delivering on it.

Moving to mortgages and home equity, which are the real estate-backed lending products. These products, we believe we must be -- we need to keep on growing on them for a few reasons. We've done them for the last 20 years. That's when we started them. And we know that these products are about special moments in our clients' lives. They may be buying their home, which is a once-in-a-lifetime event. They may be reorganizing their finances, and we can help them with home equity, also a very important moment in the clients' life. They may be building a business and they need cash. We can do that also through home equity, and we can do it profitably. Result for now for us recently is that we've been growing a lot, 4x the market was our growth in mortgages last year, 2x the market was our growth in home equity last year despite the fact that in-home equity specifically is a product that we already have a very good penetration and the market share around 10%. And in these 2 products, we're talking about a gigantic market, almost BRL 1.4 trillion, which makes it the single largest credit business in Brazil. We will keep on growing on it.

How much do we want to grow? We want to expand 2x our market share in the combined products in the next -- until 2029. And we -- why do we believe this is possible? For one, the market is changing when we think about mortgages. What's the change? It used to be based on Poupanca, which are the Brazilian savings accounts. The balance of Poupanca is consistently declining. Why is that? People are learning that there are better investment alternatives so this balance declines. What becomes the solution for mortgage lending and home equity lending in Brazil, market-based pricing, market-based funding, which is exactly where we do, which is exactly what we operate. So we believe this is a trend that's going to continue important and it's going to help. And this is a tailwind that's external, but we don't limit ourselves to that. The main gain comes from internal improvements. And these are coming from our operating areas that can do all the underwriting process much faster than we could using a lot of AI to do the processes quicker and also all the underwriting, the credit underwriting part.

[indiscernible] and his team were able to move us to today about 90% automated decisions. This is super fast, and this drives demand. So just to give everyone an idea, about 18 months ago, we would have 1 billion demand per month. Now we have 3.5 billion to 4 billion demand every month on the top of the funnel for the product. And the result is we can mine all these proposals and underwrite at a much faster rate than we were underwriting before.

Why does this matter? Again, these are very high cross-selling products. We are more than twice as the average client in terms of cross-selling. These are super high ARPACs as these are usually large tickets, BRL 400,000 to BRL 600,000 is the average ticket that we operate in these products. And last, but extremely important, we operate at a very high ROE in this product. Back in the past, as it was this earmarked savings-based product, it did used to have a lower ROE, but we're able to find a model that's extremely high ROE, and we have more than 25 going on.

Finally, our third hero product. And here, I'd like to talk about 2 aspects of credit cards. One is growth. The second one is profitability, very aligned also with Rule of 50. And why are credit cards so important? And why do we want to grow it? Because we do know that it's linked to profitability principality, which is -- which was [indiscernible] Rodrigo's explanation. So credit cards are one of the main drivers of principality. This makes them important to us. And we've been able to deliver it lately. So 23% CAGR in TPV since the launch of 60/30/30, credit portfolio growing in the ballpark of 30%, and the important -- the most important fact is, are we comfortable growing credit cards? And the answer is yes. Where do we see it? In another spaghetti chart. And what do we see here that I'd like everybody to take home is whether the cohort delinquency changes a bit up or down, we can control it. So it's not by accident what's going on, it's by design. [indiscernible] and his team can predict where the delinquency is going to go. They can adjust. Sometimes we test. We see a little bit higher and in a few days or -- not in a few days, but in less than a month, they can already predict where things are going and they can bring it back. The result of this is comfort growing and comfort knowing that we're going to be able to absorb losses. And most importantly, we will bring principality. This is on the transaction piece.

The second piece is the profitability. How do we work on the profitability of credit cards? We work in 2 different ways, which basically 2 different mindsets. One mindset is more internal. The second mindset is more external. Internally, what are we looking at? Increasing the [indiscernible] portfolio. How do we do this? Doing what we call reshaping. What's reshaping? Reshaping is changing the format of the portfolio, and we can see it in the first chart really clearly. The shape was 80% transactors. The shape after 2 years of doing this reshaping is 75% transactors. What changed? A lot more interesterning. This -- what does this bring? More margins, and with more margins, we get a better EBT. In the last 24 months, we're able to increase this -- the EBT of the P&L of the cards product by 14 percentage points. This is now a profitable product for Inter. It wasn't when we launched 60/30/30.

And the second piece is on clients. We don't -- we want clients to pay the lowest interest rate possible. [indiscernible] talked about our strategy of going to the secured lending products. We want to move them when possible to lower interest rate products. And the same thing happens on credit cards. So how do we do this reshaping, and how do we help clients at the same time that we're helping margins? If the client is a transactor, and he's going through hardship, he's not going to be able to pay his statement in full. [indiscernible] tried to predict that this is happening, and we offer collection products. We went last year from 5 to 9 different collection products, meaning different offerings that people can engage with and move to installments. If the client is already into revolving or delinquent, we do the same thing. We try to bring them over to installments. And what that brings is a lower interest rate. We showed the revolving from 16% to 9%, which is much better, but not only that, also, this brings predictability.

In Brazil, to clients, it's a lot more important to have a predictable payment than to have a super low interest rate when we think about short term, when we think about retail. And that's exactly what we do with the installments. We tell people, hey, if before on revolve, you don't know how much you want to pay. When we put them on an installment plan, they know exactly what they have to pay. And this is important to the client and important to us as it's a key driver of profitability.

With this, we finish the building blocks of execution. Once again, principality, strong deposit base, bringing all this flow and credit penetration, which we're going to keep on -- which is going to keep on moving the needle. And to take this to like the IR or the investors' language, I invite Rafa to the stage to talk about the monetization and the unit economics.

Thank you, [indiscernible]. After hearing about our priorities in execution, principality, deposits, credit, I want to walk you through our unit economics. This is really important. This is how we monetize.

So how do we monetize? [indiscernible] talked about our client growth. We started with a few thousand clients back in 2015 to over 44 million clients today. But this is not just about adding numbers. We are adding engaged clients. And this engagement is already reflected in our ARPAC composition. Our diversified ARPAC is distributed in fee-based revenue, liquidity from deposits and interest from credit, which I will comment in a moment. So we already have a diversified revenue per client. But this diversification goes beyond the ARPAC composition. A lot of investors ask me, Rafa, what's Inter client profile? And this is where our diversified approach really makes a difference. It goes beyond. We serve clients from childhood to retirement with a diversified revenue profile in each group.

Starting with the young ones, clients under 17. ARPAC today stands at BRL 3, mostly from transactional deposits and debit cards, but this is where we are building early financial habits, promoting financial education and creating loyalty. Most of the time, this is their first bank account and has the potential to be their primary relationship through life. The kids account is a very popular product at Inter. We've opened over 5 million accounts, kids accounts so far. Today, they stand at 2 million. Some of them have turned 18. And that's where ARPAC jumps to BRL 30. And here, we can see credit playing an important role, starting primarily with consumer credit, with credit cards and PIX finance, but adding to the diversification of the revenue profile. And as clients age, ARPAC continues to increase and becomes even more diversified among credit products. [indiscernible] mentioned our sustainable approach to credit growth. And this we can see in clients in the older cohorts with public payroll, mortgages and home equity making a difference in client -- in revenue diversification.

And when we look at the ARPAC growing through life stages, this is a steepening curve. And when we compare that to our current client distribution skewed to the left side, we can see a significant potential for revenue to increase in the next years as clients age. Milestones such as savings with My Piggy Bank, getting married and buying a house with mortgage or traveling abroad using a global account will be interesting opportunities to continue to increase cross-sell. And cross-sell is another component of ARPAC growth in the future. When we look at the incremental ARPAC per vertical, we can see that these clients already generate higher revenue compared to the average revenue at Inter. Investments, shopping, insurance and global, all of those clients already have a higher ARPAC coming from those verticals.

But the most interesting element of revenue expansion in the next years we see in credit. As [indiscernible] mentioned, the credit opportunity is quite significant. ARPAC for a credit client is already 3x higher than the ARPAC of an average client. And not only that, we are also growing the number of clients with the credit product. That number grew from 3.7 million in 2022 to currently 8.7 million, as Sanji mentioned. So we are increasing the credit penetration. At the same time, we are earning more from these clients.

Last, I want to conclude with 3 key messages about revenue growth. The first one is the strong ARPAC composition. Diversification is the name of the game with cross-sell opportunities and revenue potential to grow through life stages as clients age. Second is the credit opportunity. We already presented credit growth in the last few years more accelerated than our client growth. Just last year, we grew credit by 36% in our portfolio, but we still have an underpenetrated client base with credit products. So the potential is quite significant.

And last, we are already seizing it. You can see another spaghetti chart, [indiscernible] spaghetti card loading for the runs. ARPAC is accelerating faster with the more recent cohorts. So we are already seizing the opportunity. We can already see the early results of our strategy. So execution is already connected to the Rule of 50 strategy.

With this, we conclude Part 3. We'd like to invite you for a quick break, a 7-minute break. And after that, we'll come back with our core enablers, tech and AI, credit underwriting, risk management and people. See you in 7 minutes.

[Break]

So to start with our core enablers, the capabilities that will help us execute, I call to the stage, [indiscernible] to talk about tech and AI.

Thank you, Rafa. Good morning, everyone. It's great to be back here. I'm Guilherme Ximenes, the CIO at Inter. And I was here in 2024 on our Tech Day, and I presented to you how we were building a robust solution using technology and data. Today, I will show what we delivered and how technology and data is a key enabler to our long-term plan and the Rule of 50 that Joan and Santi just presented.

We have evolved a lot. I'll walk you through today the evolution of 3 pillars: one, our technology, how we are growing our data advantages; and three, how we are scaling AI across Inter and to our clients.

Let's go to the first one, tech. We have always thought around standardization and reusability to facilitate scale. Now we are building what we're calling the platformization of our tech. Think of it like building a car. You have the chassis, the drivetrain, the core components of a car, you standardize it and reuse it. This way, you can expand into new models and expand to new geographies. And that's exactly what we're doing with our technology. We are not only reinforcing standardization, but we're also making our features more reusable from banking statements to member get member, from credit cards to investing. This way, we can extend to more products and expand our products to more geographies.

This is something that compounds over time and creates a competitive advantage. We are launching products faster and easier, and that's the tech machine that builds the machine, in this case, the SA that Joao and [indiscernible] presented. It's one code base, one platform, efficient, scalable and now going global.

Going to our second pillar and how we're growing our data advantages. We increased the average data points per client 180% from 2024 to today, going from 500 to 1,400. We have 7 business verticals. And to give you a sense of this scale, let's take the banking vertical. We do 18 million daily PIX transactions. That's 35,000 transactions per minute. And each one of them tells a different story. You have the destination of that money, what is the amount that's being made, what is the time, what is the frequency and so on. On the credit vertical, our robust data platform allows [indiscernible] to run 600 million predictions for credit analysis per month. On the global account, we have 6.5 geolocation triggers to offer gift cards and promotions to our clients that helps them save money. And the forum, our social network that our clients are using it to express themselves in many ways. It's a social platform, and it's a unique and rich source of data that help us to better understand our clients.

And all of this data is stored on our data vault. It's data from hundreds of sources running on top of hundreds of data pipelines to bring quality, real-time speed when needed and governance in each layer of our data stack. This help us to build better underwriting models, better cross-selling and better experiences. Data vault is key to the next pillar of AI. And as everybody knows, what makes a good AI, what makes a good AI model is a good data foundation.

Now going to the third pillar and how we are scaling AI across Inter. In 2024, I presented a blueprint of our generative AI platform that is now live right here. It's live for the past 12 months. We have connected it to more than 20 enterprise-grade LLM models through the hyperscalers of AWS, Microsoft and Google that give us direct access to the frontier models of Anthropic, XAI, Gemini and OpenAI. With this platform, we have deployed hundreds of agents in productions of all types, quality checkers on our tech pipelines, ratings and Q&As around our internal processes and the one that I'm personally involved, which is revolutionizing our software development life cycle from end to end. Think about the idea and building the business plan with AI, building the product requirement document to the cogeneration, deploying it to production and monitoring it, creating a positive feedback loop that reinforces that process.

I want to pause here for a second because it's really important, the software development life cycle. If we master this process, which we will, it unlocks great value. Adding to that, we have surpassed 1 trillion tokens consumed, placing us among a small group of global companies operating AI at this scale. 400 billion tokens are used on day-to-day tests across our business areas and 600 billion tokens are driven by our software engineers building software using Cursor, which is an AI top-notch software development tool.

So this is no longer experimentation at Inter. This is AI at enterprise scale, truly AI at enterprise scale.

Now going to the outside to the customer-facing AI. Joao presented Seven. We built Seven. It's a platform that is still on its early days and has huge potential. It's not only user interface, as you can see here, but it's the agentic platform that we're building beneath it. From 2025 at the beginning, we launched our conversational AI that was helping our customers with frequently asked questions, FAQs, and questions around our products. And we ended up 2025 with transaction AI, doing PIX through text, buying gift cards, making installments with your U.S. credit card and also high-end loans. And this last one is very interesting because it is a complex product, and we are seeing AI helping our customers to better understand that, and we are seeing conversion rates increase, bringing more revenue to that vertical.

In summary and as expected, AI is going everywhere to everything all at once. Again, another technology wave, and I love surfing technology waves. We are scaling AI everywhere. In 2024, we had 80 AI models in production. Today, we have 550. On our pipelines, we have 600 user cases across this chart here that goes over all Inter. That's going to bring more revenue to our business. more principality with our customers, more efficiency to our operations and more profitability to our shareholders.

Now I'll hand over to Mauro, who will show how he's leveraging our technology and data to build better underwriting models and processes in the credit landscape. Thank you. Mauro, the floor is yours.

Thanks, Guy, and good morning, everyone. It's a privilege to be here to share with you the work we have been doing on Inter credit platform. I am Mauro Rergel, and I have been working in credit cycle for almost 20 years, a lot of credit cycles. Our entire credit chapter is divided into 3 pillars of investments: governance, underwriting and collections. Let's start with a big change we made in our process.

In the past, each product line operates its own pricing logic. It's -- it was fully centralized. Now we have built an interconnected framework with clear rules and responsibilities. Credit underwrites and manage collections. The treasurer sets pricing guidelines based on cost of risk, cost of funding and target ROEs, providing a holistic view and risk monitors the portfolio health and risk limits.

The results is better profitabilities and faster decision-making. The second pillar is our underwriting gene. And the challenge we faced was not a lack of data. Inter is a moat vertical and moat product platform, over 40 million daily transactions and more than 13 external data source feeding our models. The challenge was for implementation, and we have fundamentally changed that.

Now our underwriting gene is built around the 360 credit signals. We have a unique single and longitudinal client view. On top of that, we overlay 2 intelligence layers. The first one, unstructured data. We convert documents, interactions into credit signals. And the second one, the real-time data. And this goes far beyond the traditional credit data structure. But it didn't stop improving the data, we also improve the model themselves.

Our credit models now operate in a continuous feedback loop, meaning we have a -- we monitor the client behavior, observe new information and reassess the risk. It is not a static scorecard, it's a learning system. And one of the outputs of all this intelligence is our hyper-personalized pricing model. In the past, between 2023 and 2025, we operate with 100 pricing combinations. Now starting 2026, powered by AI, we have moved to hundreds of thousands of combinations, producing a specific price for each individual client. And more precise in pricing means more clients served, more credit penetration and more revenue.

The products we have deployed this new pricing model are showing increased net income 10% higher, and we are just getting started.

The third and last pillar is our collection, and we are investing heavily here to make our collection engine one of the most sophisticated in the industry. Everything we build for underwriting has been fully deployed in collections, the same data structure, the same behavior intelligence and the same AI capabilities. And now we have smart decision, hyper-personalized journey, and we have deployed an AI engine that negotiates and guide the client to resolution. And the results speaks for itself. In 2022, 70% of our recovered volume came through digital channels. This number in 2026 is 9%. And why does it matter? In digital channel, we recover more, faster, at a lower cost, maintaining the client relationship. Everything I described here today is not a collection of point in time movements. It's a platform designed to compound, ones that gets better as it grows because every new clients, every new transaction, every new data point makes our models smarter, our price more precise and our collection more effective. And the outcomes, our loan portfolio has grown 2.4x with controlled asset quality metrics. The NPL has moved and is a consequence of the part, the part is a consequence of the private payroll loan. But it's important to see at the same time, our risk-adjusted NIM expanded from 3.9% to 5.6%. We have improved collection. We have improved credit underwriting, but none of this stands alone. It's supported by a solid and dependent risk teams. And I have to say that Marlus has been a key partner to -- on credit side. And now I would like to invite our global CRO to take you beyond credit risk. Thank you for your time.

Hello, everyone. I'm Arzorraujo, the Chief Risk Officer for Inter, also known as the bad cop. I have more than 25 years of experience in financial industry, mainly in Bradesco and also [indiscernible] and specifically in risk management, about 10 years. And I do firmly believe that risk management can contribute a lot to the business in order to produce a more controlled environment and this controlled environment can give room for innovation and also sustainable growth. And let's talk more about our risk management capabilities here in Inter.

Risk management Inter is designed to support our sustainable growth within a healthy risk position. And the key instruments to do this are already in place and working really well. First, a robust governance; second, a full infrastructure; and third but not least, well-designed processes. This all combined with a culture of simplicity and transparency within a secure and data-driven environment. And all these elements are together in order to protect our balance sheet.

Let's talk a little more about our balance sheet. And first, our asset side. On the asset side, first, what I'd like to point out is that most of our assets are secured. What do I mean? About 65% of our whole asset portfolio is composed of secured credit through time. And this is not only by [indiscernible], but it's by intention. Consistently, we maintain our portfolio with this kind of composition.

And moving on to the unsecured portfolio, which is also an important part of our balance sheet, it's about 35% of our balance sheet. We must say that we have been keeping this consistently and intentionally well provisioned. About -- we have been keeping about 130% of the total portfolio provision when we consider just the portfolio that is on Stage 3. And dynamically, the transfer that we made from Stage 1 and 2 to Stage 3 is also well provisioned as we can see that the provision is in line with the transfers that we made. So it's our policy to keep it this way, to keep it secure and well provisioned.

Now I'm going to talk a little bit more about the other side of our balance sheet, which is our liability side. As pointed out by Alex, we have seen that we have one of the best cost of funding, the lowest cost of funding in the industry. But from a risk perspective, this is not the most important thing. The most important thing is that it's sustainable. Our strategy has been able to produce a highly diversified funding base, which we see on the left-hand side of the slide. And this interconnection has been able to give us a very comfortable liquidity position. Our liquidity position now is almost twice the minimum regulatory requirement level and above -- roughly 20 percentage points above market peers. This is really important to sustain our growth strategy in the future.

On the whole, considering the whole picture, we can see that both assets and deposits have grown steady, fast and balanced. And this is really important to keep us on track for the future that is to come.

And to conclude this topic, I'd like to pinpoint 2 important features and consequences of the strategy we've maintained. First, we've been able to produce a structurally stronger balance sheet. We have a higher proportion of interest-earning assets compared to interest-bearing liabilities even when we compare this to market peers. And also, which is really important, we have a higher flexibility to reprice and to review our exposure due to its shorter maturity. And this is important because we can produce and maintain consistent results over time.

Now moving on to our equity position, which is our ultimate strength. As Santi has already mentioned, we've been able to put our capital to work over time, becoming more efficiently -- more efficient and more profitable. But we still have a large room to grow. As we can see, we have not only capital capacity at the bank level, represented by Tier 1 and Tier 2 capital, but also at the holding level, where we keep capital because it's economically more efficient, but we can easily move it to the bank. And not only those 2 opportunities, we have also potential to issue new subordinated debt. And this altogether can produce almost a new loan portfolio that it's almost the size of the one that we have today. So we can almost double our loan portfolio instantly.

On top of that, as we grow and our return on equity increases, we approached self-funding with capital neutrality. Our demand for capital now just grows a little faster than our capital accumulation rate, which means that we're going to probably reach capital neutrality and also retain capital buffer to seize opportunities that may appear.

Given that, we have the whole picture for the company and also risk management, which not only make us more resilient and capable of facing change in economic environment, challenging competitive landscape within a global regulatory framework.

And this, altogether, this embedded risk capability. As Jean mentioned, can help us deliver and support safe growth through new growth opportunities, support consistent return and ease the achievement of the Rule 50 and also flawless execution, busting principality and deposit and credit growth.

So I firmly believe that the whole picture makes us a unique opportunity to the future. Now this is the inter by design applied to risk management. Now I'd like to thank you all. Thank you for the audience. Thank you for your attention, and I invite [indiscernible] and by place to join the stage. Thank you.

Good morning. Hello, everyone. I'm very glad to be here today to talk about how we build a high-performance organization to generate more value for all the stakeholders. And as CHRO and I have been working here for almost 10 years. During this time, I have had the opportunity to lead and drive several projects to support Inter's growth.

For example, our evolution in 2023 and the 6330 journey. And of course, I'm very proud of everything that you have built until here. And the less speaker this morning, but probably my thought is the most important one, and I will explain why. Because I'm responsible, and I will talk today about the strategy that makes everything possible, the people strategy.

This means understand the capabilities that we need attracting the right people from the marketing, engage them and in addition, retain the high performers. And today, we will see why we are confident that our people are ready to deliver the rule of CT. Since we have evolved our structure to be faster and more aligned with our ambition. And I would like to highlight 3 important changes that we made during this period.

First, we created a global CEO position, and now Jean leads the company with a global vision. We also created a CEO Brazil role to have more focus in our core business. And finally, we reinforced 2 key areas in our global structure, legal and compliance and risk. But it's important to say that this strategy is not only for our C level.

We have applied the same approach across all levers of Inter. Since 2022, we have brought more than 15 new officers from the market. It's a continued strategy for us year after year. And why do they want to be part of Inter? And I know the answer because we have a strong culture an exceptional ability to execute everything.

They clearly see our potential and in our upside opportunity. So for this reason, for us, bringing new talent from the market is not enough. We strongly believe in this combination top tier external experience with our homegrown talent. This is our competitive advantage, and it works. Besides the best team, we are efficient. We doubled our active client per employee, if you compare 2022 to 2025.

With a strong focus on our results, we also increased our revenue per employee by more than 120%. And from a risk killing perspective, we have 3 priorities to continue to do that. First, hiring for the SKUs, the future demands. Second, developing our team skills to lead in the AI world, and finally, deploying our human capabilities where they can create more value from there.

So this is the way that we connect with our purpose. To create awards where interactions between people generate more value and supported by 5 strong culture pillars. Clients and reset, as you could see during this whole presentation in specialty [indiscernible] presentation, operational excellence, our discipline to execute our plan.

Driven by innovation is our and it was clear in all the words that Jean said today in the way that he leads the company. We in mentality was clear when an presented the new plan. We have grit. And finally, Enterprise thinking. We work as a team and a good example about that is our 3S. All the avenues in one place to create the best experience for our clients. But how do we ensure that everyone, all the employees will achieve this plan. In this last page, I will show the back, as Ron mentioned before, the framework that connected everything that I presented until here.

Direction, our purpose plus the rule of [indiscernible], our new [ Norte ] alignment, having the right team work in a coordinated way supported by the right incentives and commitment, strong culture to accelerate our execution. So if you have clear direction, right people and strong culture.

You have more results, more resources to invest in people to attract more talent from the market to have more results. So we really believe in this virtual cycle and believe that this drives the traction, engagement and retain the high-performance team. And that's the way we believe is the best way to build a sustainable business for the future.

And I will close my session reinforcing our commitment to keep build a high-performance organization to generate more value for all the stakeholders, including you that the trust and I would like to say thank you for the audience.

And now I will invite Joao to his closing remarks. Thank you.

So we're about to close the session and move to Q&A. But as they say, normally, we save the best for the last. And indeed, when we see is explaining about our team, and not only that, the vision, the direction and the alignment that we have towards our goals and makes me really confident that the best for inter is yet to come. We have achieved a lot, but roll off is going to be also a very important milestone on interest history.

Before we move to Q&A, I'd like to leave you with 7 key takeaways from this session. Let me just go quickly to [indiscernible] First, our innovative DNA. If someone asked me, what is the trademark of Inter? I would definitely say that we have an innovative DNA that help us to be focused, push the bar and keep executing and being ahead of the competition.

Also, the [indiscernible] it shows us that when we have the right direction and the right commitment to the right incentives, we can execute towards our goals and deliver value for our stakeholders as a very important lesson learned for our team.

Also, the tools that we have. And the team is indeed the most important one, as you could see on [ Tai's ] presentation. Fourth one, our tech, our vision. The combination of our 3 asset approach, our data vault and everything that we deploy in terms of AI will help us to increase monetization, profitability and, therefore, keep building a sustainable franchise.

Fifth, the right battle plan. We know what we need. We know what we're going to drive, and we're going to execute. We're going to keep increasing deposits. This will help us with principals, but also [ depositization. ]

In order to keep increased deposits, we need to keep having the best deposit franchise. Sixth, improving unit economics for us to achieve the rule of it as we have been on track to achieve parity, we need to have the best unit economics. We need to keep improving our APAC and also our margins, putting our capital to work wisely.

And last, the rule of -- we believe that being focused, diligent and executing we will bring to our shareholders the best combination of growth and ROE. This is key to keep building a sustainable business model forward. Thank you very much for your attention. Thanks for being here. Now I'm going to jump to the Q&A session.

[Operator Instructions] Joao for you. The first question is, what do you think were the lessons learned with the 60-30-30 and how they connect to the new rule of 50?

Indeed is a very good question. I know who have that, but thanks for the question. Sorry, I see someone [indiscernible] Okay. So the lessons to learn are quite simple have -- we have learned that when you have, as we explained here, the right direction, the right alignment and most important, the commitment from the team, we can execute our goals. And we know that 6-30-30 was an ambitious goal. Also the same applies for rule of 50. And when we talk about the commitment of the team, we this. First, we need a very talent in that we have but also the incentives need to be right.

What we did at 60-30-30, I was able with the right incentives and with the support of HR 2 cascade how these directions, the right KPIs throughout the team, not only the senior leadership, but also to our superintendents and the other employees working at Inter.

With that clear direction with the good execution, we're able to deliver growth from a number of clients but without the cost of losing profitability and jeopardizing our efficiency ratio. It was a very coordinated thing which, by the way, amplifies the concept of enterprise thinking. I'm sure that using the same approach, the same framework the right incentives and having the right team, the role of it also will be achievable. And at the end of the day, we generate value for our shareholders.

Congrats on the Investor Day. I have just a clarification regarding the new guidance, the [indiscernible] Center. When we check the footnote, there is a 35% cost to income implied on that . So I'm just checking if that's correct.

Because I think, the guidance is 6030. So I know it's not 2030 yet, but maybe I was expecting a little bit of better efficiency within the guidance.

Why the cost incomes 35 and not 30. So that's one question. And also regarding the guidance, why are you forecasting a little bit more challenging near term, and most of the improvements in the midterm. So if you can also comment, I think it's a growth are having higher provision private payroll, but also if you can explain a little bit the difference in the timing line also I think it's important for over congrats again.

Thank you, Yuri. I'll take that one. So on the -- first, the rule of 50 is built as we foreplan on top of the CV territory. But the way that we want to be question or analyzed or evaluated is by the combination of growth and profitability. And the ROE has incorporates all of the metrics that go behind that. .

Given that we want to keep the ROE as high growth as high as possible, we expect more investment. So potentially, the efficiency ratio could be a bit above 30%. As we mentioned, there are a lot of opportunities on we still don't know how much they will impact.

So there is a potential to be closer to 30% or even below. Another 35, but it's difficult to model them with precision today to be able to say for a complete I mentioned, assuming keeping them flat. We continue to compensate talent better and bring new talent and that has made growth beyond inflation.

But again, that's a moving target. The 35% is a conservative number to have in the assumptions. Then the second question was the more conservative year of 2026. So we do see the macro in Brazil a bit weaker. We are driving the outcome in terms of asset quality by taking more risk with private pay or we talked about it in the earnings call. We are working on the reshaping.

Alexandre mentioned that as well. We also said that the cost of risk will be closing closer to 6% or around 6% for the remaining of the year, which implies an increase. But we also showed the cost of risk without private payroll. So a 50 basis points of that, that is prior payroll so if you compare it without by payroll is 5.5%, which is 50 basis points increase relative to 4.

That's roughly BRL 270 million to BRL 118 million of EBT cost. We compare that to additional revenue that, for example, only the credit cards gas, it's marginal. Credit cards, the interest income of credit cards this past quarter was BRL 700 million. and the same quarter of the prior year was BRL 400 million. So just on credit cards is adenof300 million per quarter, which is more than compensated a single quarter what that aside.

In all, and I'm more color on that equity, which has been a topic. We are quite happy with the evolution of the NIM and the risk-adjusted NIM or solving for risk at NIM. We mentioned this in the call a lot, it will still grow. So we use the calendar year 25 risked NIM versus what we expect to have this year, even with the curve at the beginning, it would be 5% higher risk-adjusted NIM. And on top of that, we'll have a loan growth growing north of 25%. Therefore, revenues we end up about 30%, which is what we expect for this year.

Congrats for [indiscernible] Again, following up a little bit on that question because as you mentioned, asset quality has become a little bit top of mind right now. When you think about the growth from here and maybe by products, right, because there's some issues still with private payroll and how that will evolve given the macro, maybe unsecured grows a little bit less in the short term.

Just how are you thinking about the different products given the credit cycle? And then, I guess, eventually, how will that cost of risk? I know it's hard to predict, but -- does it say 6, could that come down as we get through the credit cycle, just the kind of evolution that you think how that can evolve.

There are 3 products that have been growing at 40%. That's a 2 slightly up and 1 slightly below, which are home equity, mortgages and our version of personal loans, which has mainly private payroll with the [indiscernible] payroll as well. Those going forward, will grow closer to 30% now with some upside in some cases, by per we don't know.

Mortgages is a dynamic with the incumbents stepping down because [indiscernible] is not growing. So they're all competitive and there we can try and credit cards growing a bit closer to 20%, the loan balance or the receivable balance.

Within that, the revenue grows more than that as a consequence of the strategy that Alessandro mentioned -- and therefore, the growth of the NII, which is what matters the most is cooling purposes will be closer to 35% when you put all that combined together -- provision core mentioned going to 6 and the extent, how long will the 6 we once within the year and probably better -- we see the second and the third quarter as it takes one.

Hopefully, then we can still start the thing down. But again, what makes us happy is the NIM will end up very close to 10% and cost of risk in the entire year 2026 versus the entire year of 2025, it's going to be also above close to 5% cost of risk calendar year versus primary year, which is positive for us.

I have another one online. This is for you, Sanjiv. Can you elaborate a little bit more on the credit card reshaping? And how do you see the credit card growing?

So when we look back in 2023, the vision we have for credit cards was of an engagement product. So when we think about profitability of it, it was -- if we got to new strategy, it would already be good. And as we evolve, especially in the last 18 to 24 months, we saw a big opportunity to bring profitability and help clients at the same time. That's when we started investing on the reshaping process. How did the reshaping process come about?

We went from 5, I'm going to say, only 5 collection products which led to affect that we have disproportionately high volume of revolvers and clients that were in default in the credit card portfolio. And we developed the other 4 collection products to try to get them to on-time payments.

That's what we -- how we invested on getting the reshaping going. All these products are up and running since the end of last year. We've been focusing a lot on growth strategies to keep on growing the interserting and we're getting to a place very similar to where we want to be. Right now, we're at 25% interest earning -- we don't see this getting to 50%, something like that, maybe closer to 30%, and we see that as great, again, profitable portfolio and happy clients. As they pay less interest and they have more predictable payments every month, every month.

Thank you. Another question here from [indiscernible]

Congrats on the event. I wanted to ask about your loan strategy today, I think you said 2/3 secured, 1/3 unsecured. And whether that leaves you vulnerable to the rate cycle in Brazil evidently as you're sitting on longer term. Normally, the secured products are longer-term assets with not our repricing capability -- does that just permanently you vulnerable to the rate cycle in Brazil, which is a roller coaster?

And second, it leaves you also exposed to regulatory risk as many of the secured products are highly regulated or increasingly will become more regulated. I think it is a matter of time before the government starts relating the private payroll product as well as the way they regulate the public product.

And third, I think the value of data, you're investing a lot of the data at major value of data isn't that valuable, if you will, when you're doing secure products, the guarantee is probably more valuable than the data itself.

So I guess the question is, with that backdrop, why not leaning more on risk and more maybe balance the portfolio more towards more unsecured and also the risk return profile would look, hopefully, compensate that with better margins, better returns on equity as you take on more risk.

Okay. So let me start here and feel free to jump in to help me such and change. So let me talk about, first, the strategy that we have behind Inter. As we have been showing here on the presentation, we have always been trying to both have more secured many portfolio and also a diversified lending portfolio.

Many ask us about how the regulatory change that we see most on the secured portfolios we are kind of protected because we are not a niche player on, for instance, FGTS, private payroll, mortgage or home maker. So this is the first approach that we have in terms of risk management to avoid this kind of change.

Also in terms of the balance between secured and unsecured -- we do know that having this unsecured portfolio will probably bring us more reg upfront. But as Santi was exploring on his presentation, we want to have more of the sustainable lending portfolio moving forward.

And as we could see here, I believe, on Shane's presentation, the ROE that you can print having 2 key differentiated elements, cost of fund cost to serve and also the cost to distribute these products lead us to something between 25% to 30%, and we own a secured portfolio.

And last but not least, we're talking about address market of premiums, BRL 2.7 trillion on that segment. So without that online, we can keep producing for our size, the returns that we lost close to 30% very good discipline towards our balance sheet and our P&L.

So that's the overall vision, the overall strategy that we are putting behind also connecting to data -- you see that, as Sean mentioned, we have slightly improving the reshape of the credit card portfolio. That said, trying to use the data to help us to bring more revenue and better with reward compared to build the income that we see.

So we are also having that as an important step to help us on the monetization -- to complement on the regulatory risk or we are quite aligned with the Central Bank and the authorities because that slide that I showed of the cost of funding or the impact that it has in the disposable income we have discussed them with them multiple times and the design of the private payroll and now with the invoice discounting [indiscernible] appreciated to shift away from those expensive products.

So by design, we have an alignment. There have been some regulatory taps and [indiscernible] and privates there on the horizon. Generally, we operate below the cap. So our cost advantages allow us to operate below them. We were below in terms of we see, but we are originating at 3.6%.

We think that, that rate should go down when the product is cleaned up in terms of collection improvements that are coming. On interest rate, another point, we learn from the past when we show that ROE bridge of the 33 premium closing page, the repricing was precisely that. longer loans originally at great rate environment we changed dramatically.

We are hedging the longer rates from fixed to float or from inflation to float, which end up hedging that redecide as well on the sale. So which is 1 of your points in your last report monetization, which I take the opportunity to comment, we view the opportunity amortization on net RPAC, which complicates the metric as others, we show both since we had up to others.

But [indiscernible] shows that increasing monetization, isolating the interest rate environment as well. But credit penetration is right under delevered to improve that load more and strategy to do that.

Yes, Jorge. So when we look at the credit growth and where we want to go, we're comfortable growing secured and unsecured. So it's not like we're going to go to secured and we're going to forget about unsecured. It's all about growing sustainably. So we say move forward with caution needs to say that we're going to grow credit cards.

We're going to grow other unsecured as fast as possible with a lot of control with our approach. This can be -- short term, we believe this is more like a 20% is growth in that portfolio, maybe 25 this year given the macro that [indiscernible] but it's still a very good growth. And the future as models improve, we could even see more of that. But as Ron mentioned also, we'll keep growing along with reshaping making this portfolio a profitable one..

Very detailed. I'm going to ask, though, something that you didn't talk about flowing and it's the U.S. strategy. I do think that you spend a lot of time here in the U.S. and you have these aspirations of having like a presence in the U.S.

So can you tell us a little bit how much of the investments that you're making today are in developing the U.S. franchise? And how do you see this evolving in how big can this be for you over the next few years?

Okay, Mario, that's a great question. Actually, we're debating a few weeks ago with research analysts about our expansion strategy and it came to me that maybe it's not really clear how we are moving forward with it. So it's a very good opportunity for me to try to clarify that. If you recall, we bought 3 years ago sent a copy specialized remittance, remittance from U.S. to Brazil and from Brazil to U.S.

What that indicates -- our approach for expansion is kind of different from what we have been hearing from other competitors. We don't want to come to United States and start to compete for retail clients within the U.S. We believe that is a very competitive market. The economics are not good.

It's a very big investment on that front, and that's not our approach. What we're planning to do and we're executing as we speak. We have built is a very strong foundation from a regulatory standpoint of view and also from product offering.

Today, we have a red debit card, credit card, lysis, gift cards, remittance, mortgage and a full broker-dealer offering. With that in place, we like to call this strategy inside outside in approach. We want to have this foundation in U.S. to serve millions of clients across the globe.

How did we start? Of course, with Brazilians. We have a lot of positions already using our product in Brazil. What was the adoption pace of it? Incredible. Everything we showed here, we have almost 6 million clients using our globe account today. We are putting deposits in the United States, they are using our market platform. We are investing in our broker dealer here. They are using our shop capabilities here. They are sending money back and forth.

And with that in place, no, we can have as an outcome retail clients, mostly Latin Americas and parades uses our products here. So it's a very clear strategy around how we want to leverage on the foundation that we're building here. And we believe that this is something unique.

We don't see other players trying to compete on this arena. And at the end of the day, what do we put in place to help us to succeed again, the 3 asset approach, the super app approach and data, we can offer today for our Brazilian read for Argentina and latest geographies a full experience in 1 single app with 1 single men with 1 single credentials.

You just load in our account, you travel, you're living in the U.S., you're doing business in the U.S., you want to pay, get paid you want to buy what, I don't know, SpaceX, stock on the to. It's easy to tap and are there. This is the cost behind.

And I just see that we're going to have a very successful go-to-market to other geographies as with ibis.

Some are numerical so that helps a lot. Very good. On the rule of revenue growth plus ROE. From the chart you showed, maybe it's just a chart it is -- it looks to be like showing up or accelerating maybe in the near term that you also gave the ROE guidance there. .

What lines of revenue growth do you feel more comfortable with accelerating if that's really what is implied, I'm sorry, if it's not okay? And then the second question would be completely different part of capital allocation.

You're reaching self-funded growth, as Malo pointed out, if from here, you could maybe, I don't know, buyback more dividend distribution? Or you want to prefer to keep the balance sheet stronger?

Thank you, [indiscernible] for the question. I'm going to start and maybe at you pick the capital. So we are -- we're going to be -- so when we think about rule of 50, there was -- there are a few pieces, right? So growth in revenues and ROE growth.

Growth, we've been able to deliver, like, I'm going to say, forever. Since 2018, we've been delivering growth in revenue above 30%. So it's something we know how to do. We're comfortable in doing it as we look forward.

What we didn't have there is a high ROE. Actually, Ross said we were in like about 0 ROE when we launched 60-30-30, and we built the capabilities. As Sandy said, we learned from the past, we hedge our portfolio to guarantee the profitability and we're delivering the ROE already at the 15.5% level.

We'll keep doing this. As [indiscernible] said, we have the guidance for ROE. So the plan is to continue growing revenues and continue growing ROE? And where is the growth going to come from? A lot from the credit portfolio.

So we are comfortable maintaining the growth that we are -- that we have been delivering. Last year was a very strong year at 36%. And will -- the size of this growth obviously depends a little bit on the competitive scenario, but we're confident we're going to be continuing to grow above but we will also focus on fee.

So fee was a little bit below 25% last year at 23%. We wanted to keep very close to the 25% level. Last year, we grew a little bit less than what we expected with a component of the new resolution [indiscernible] that decreased the volume of fee income that we could recognize upfront.

So there is a normalization factor to go there, but we also want to keep on growing on fee, trying to infer this 25% and many different sources of growth to come to bring revenues from in the fee side. RAI that everybody talked about 7 is part of helping that.

We have the context to bring clients products and we'll keep growing every vertical. There are things coming up. So we don't talk about global insurance, we have several products that are being launched in the short term, several products that are already performing and are going well.

Cards will keep being a booster of growth in that side of the revenue base. So exciting times to come. And we'll be delivering this [indiscernible] rate.

So we look before [indiscernible] complements, I'd like to touch base on the question that you did about buybacks and these type of things.

As I have shown today, and I hope you have figured out, I mean, it is about growth, innovation, move forward. Again, look what we transformed this call into on the past yes.

Look what you can imagine what we can transform this comment in the next 10 years, going global, having more products, deploying AI, growing our credit portfolio from a market share of 1.5%, 2% to the same market share that we have a 9% or 10% or 11%.

So this is a business that will demand this organic capital formation. We want it to be a growth business. We don't want it to be a bond that just produce yields. So we are not thinking about reducing the pace of growth, stopping orating stop thinking about new projects, new market, new jobs.

This is actually the opposite of the -- this period that we have at in. But the good news is having this is self-sustainable business from a capital perspective, help us to keep this vision life despite of the macro. It doesn't matter if the cost of equity is low or high.

We can feel our own growth, our own vision, our own expectation is. The most interesting about it, we will be able to have the balance of keep growing, innovating because we are producing ROE on the other side.

That's exactly what we wanted to show with the rule of this to balance these 2 things, we will generate more value. And we have room to grow. If you were a gigantic business, what's the upside? That's something big. You already have whatever, 25%, 30% market share. In our case, the room to grow is really clearly big.

So that's where we're going to deploy future earnings. And on -- well, first, on the comment of the billing loss, we intentionally try to break it down so that when we have the discussions and the follow-up question whichever piece and then assign the execution risk or the certainty to its block and have more detailed and helpful conversations.

So that was the intention behind it despite some resistance from lawyers. But in terms of capital, it's kind of a moving target depending on the loan growth. Obviously, we were able to grow last year calendar year loan growth when we were expecting 25% to 30%, hoping to be at the high end of the 30 and the at being more as a consol payroll and opportunities.

So it is a moving target. The ROTE that we mentioned before, helps a bit more factor the capital base because when you look at the patrimonial residential or regulatory reference capital it grows more proportionally with the ROP and the ROE, which is higher as another factor.

Same as we have improved on the ALM front, also with the advisory of [indiscernible] we have begun getting a bit more sophisticated on Tier 1 Tier 2 in Brazil, they are actually pretty favorable old-style type of instruments with spreads oversedated and that was helped extend also the maturity of the funding not to the point of ore, which have also helped.

So we are making progress there, and we still have a lot more to do in terms of optimizing other strategically to some opportunities we have, [indiscernible] being one win. So that's an evolution the buybacks in the support decision eventually. And in the meantime, the management is due to seize those opportunities to operate more efficiently.

Next question, I think from Neha.

You mentioned the [indiscernible] remains a the star for the company. On the -- you said you have a lot of clarity on this year's pipeline and high conviction in achieving the Rule of 50. .

For the coming 3 years, '27, '28, 29, what is the level of conviction that you have in terms of achieving the rule of 50 -- or should we see that as a bit more ambitious and where you want to be rather than where you will be?

My second question is on your positioning. You mentioned that you're focused more on secured lending products, whereas a lot of your competitors are focused on unsecured. Does that give you a bit more opening with the higher income segment and how do you see in the position with as you try to move upmarket or be a little bit above the mass market segment.

So how do you see in the disposition in that segment? And lastly, on the credit card reshipping portfolio. You're taking more risk there. You're saying that the risk-adjusted margins are as you expect and going up -- have you been able to deploy AI in any way to improve the risk you've been able to concrete pricing, but how about controlling risk, improving correction with the use of AI.

Is that something that you're able to do to improve the risk profile of the credit card book.

Okay. So Santi will take the first one, let me take the second one, and Sean will take the third question. I think the easy one.

So in terms of rules net revenues plus ROE. Net revenues, we see growing north of 30%. It's a continuation of what we have. We see a loan book around '25 and the NIM is going to grow 10 percentage points -- 10% relative to the prior calendar year.

So NIM of NIM 2.0, which now we simplify, we have only one in on to something very close to 10%, 25% versus 2020. So there, we have around 10% more of NII coming a bit of operational leverage as well, continuing with the cure. We are really happy with the improvement in the efficiency ratio.

We had this quarter of 170 bps. So the visibility for year 1, at least, which as a former banker, we always said the first year -- the first quarter after the IPO, you had to hit it well, the first year of the plan after we announced the plan, we have very high conviction of being at 0, which is 10% more than the 45%, 46% that we operate in the prior 2 years.

So confident there. And then we will have to go year-by-year pursuing it. We think that with strategy that we mentioned on the part of the TAM, which is open for disruption. We have cost advantages, and we are clients still having very long credit proactive client.

It's a big -- we have opportunity them and drive the continuation of that revenue growth. So Neha, on that distinction between secure unsecured, it's actually a very good question because what we have been seen in Brazil for the past 20 years or so is that despite of who is in charge, which governs the charge, we do see Brazil trying to optimize how they build a good legal framework in order to provide sustainable credit for the whole population, not only for the high income as we mentioned.

Let's see, for instance, mortgage and home equity. We have that for both the high end and also for the low income. And why did that market share grow because the legal framework was in place. Fast forward, and you see what happened with the payroll and in Brazil, which today is about BRL 700 million to BRL 800 billion portfolio.

They put a very good legal framework, a good way for you to pledge your income to collective and its skyrocket. And today, on the pain the payroll land, we have most of the affordable clients using it than the high income. Fast forward, and we have, for instance, [indiscernible] started a few years ago and now private payrolling.

These 2 products also connected with the mass market, not with the high income. So when we think that it has million and million of clients and we are not focused toward the high income segment but to see that trend from the government, it's playing towards reducing the debt service on the population. We have a lot of opportunity to keep growing a secured portfolio at scale. So you see that we have, as Santi mentioned, the key advantage cost of funding, cost of just to build is very important.

But also the regulatory agenda is helping us. It's almost like a tailwind for where we want to operate on the secured credit portfolio. And this really connects with what Santi showed on his presentation. First is by design and also that's the right trend happening in Brazil. So we're very comfortable in keeping a lot fast secured and on high income, middle income and low income segments.

Yes. And so touching a little bit on the last point. The platform is super complete. So we look at credit, we have the secured lending and the product variety that we have allows it for inter to be interesting for the lowest income person to the highest income person.

So if you have to invest a large amount of money, we have investment products that we will very -- a higher than typical market using products without fine print because many people and many companies are growing based on the fine print. You invest, but if it's more than BRL 10,000, then your yield gets lower.

We don't have that, which makes us attractive to the high-income people. but also low income people can invest at the same high-yield product just to mention 1 example. Moving to AI on credit underwriting. It's really something we do end-to-end.

So it starts with AI and it ends with in the underwriting part of the business, a lot of AI models is what's guaranteeing continuous improvement in underwriting for onboarding, underwriting for behavior very consistent improvement.

That's what explains the control we can deliver on this [indiscernible] charts on the cohorts of delinquency. We do have next-generation models coming up. It's a constant evolution. So we should be deploying foundation models soon in the credit underwriting process.

And we also use a lot of AI in collections. So to understand propensity to prioritize the efforts that you're going to do to collect to understand who you're going to collect visually, who do you have to call, all this comes from AI modeling and last also Mauro mentioned that we have like Gen AI to have conversations with clients and optimize collections.

Why does this matter? We figure that people feel more comfortable talking to a machine than talking to another person when you're talking about being delinquent because nobody wants to say that they're delinquent.

And AI in this position gets people super comfortable to talk, discuss, tell about what's going on to them. And that's what explains that 70% to 90% improvement that Mauro talked about. It's all about AI. So end-to-end AI.

Thank you, Sanjay. I have one that came on line for you, Santi. You showed in the ROE bridge, 2 to 3 percentage points assurances in the near term. How that relates to consensus expectations? And what's your view on some recent revision we see?

We're very confident on continuing with the performance trend that we've had in the past few quarters. And again, this is something that Trio mentioned before. The evolution that we had in the ROE, the ROA and the something we're very proud, and we like that continuous improvement.

For this year, we see the evolution of that continuous improvement despite the environment, we see, as I mentioned, the [ Nexsan ] in close to 10%, which gets growing more operational leverage, and we will be positioned to start the 2027 year, as in a position of strength in all of those fronts.

The consensus, we don't give guidance, but the consensus is around 100 or so slightly higher, at least until the last week, and we feel very comfortable on hitting that. This number of the first quarter was BRL 400 million, so run BRL 1.6 million. And on top of that, we have the continuous improvement quarter after quarter.

We have time for one more question. So I think from Marshall.

Santi, can we just go through on private payroll, the cost, the income statement is bearing today from the scaling. And I just want to better understand the sequencing of the profitability sort of like maximization curve from private payroll.

So today, in provisions, and where are we versus where we should be over time.

I can on economics and -- so the versus a promising transition. As I mentioned, it's a from the edge, it will improve with several layers that are coming. But with the delinquency now being in mid-teens, that product has close to 2 quarters, 4 to 6 months depending on -- to breakeven with the cost of rate we have to at the beginning and the expenses that we have.

Therefore, the cohorts that were originated from March when the product started up until October already allowed the water and then the other ones are not. We are able to -- I don't want to go into an to accelerate to several other initiatives.

So the cohorts -- the more recent cables are bigger, right, what distribution and so on, which is an investment that we're intentionally doing passion before I stick on the business.

So Marshall, the interesting part on private payroll loans is it's a profitable product. But yes, there is -- there can be a little drag in profitability as compared to doing nothing. Where is it? If we look at the portfolio end of first quarter, it's a BRL 2.5 billion portfolio. That would bring us close to, say, BRL 100 million if it was in treasury's margin before overhead, we're getting a margin of around BRL 30 million already in the portfolio. So it's profitable. It's coming, but there is a cost on this J curve that we mentioned.

We're comfortable with the J-curve, and that the portfolio matures in size -- it's going to be more just profit. But I hope it's a problem that we sustained for some time, the product being profitable, running beyond 30% in ROE and growing a lot. This is exactly what we want. So we are we are ready and we want to keep in the J curve in many cohorts for as long as possible.

Marshall, let me be crystal clear about private payroll. I just answered a few minutes ago that -- we want to be unsecured credit portfolios that grow fast a lot with a good debt service and where we have distinctive capabilities, good cost of funding, good distribution channel and good cost to serve.

The private payroll is a perfect example of that. Is it perfect? As Santi mentioned, the government is doing the best they can to make sure that all these small new ones are fixed. And then we have a smooth collection process. But it's perfect for inter we're going to keep growing, of course.

On a cautious pace, we also are trying to get the best clients, the best ROE, the best risk reward because it's not 100% secured and you have some issues. But we are very constructive on this portfolio. And I wish we could have more of these new products available for instance, so with private payroll and, we were able to reactivate Sp. I'd like to say, 20% of the clients that were inactive. So this return to interest they were applied for a private parole. So when you think about cross-sell, upsell, the ROE perspective on a steady run base without the issues on collection in place.

It's really a very good portfolio, and we are attacking it as [indiscernible]

[indiscernible]

It's already out the water, and it's picking up as the older cohorts create more. But we have the opportunity to accelerate originations with WhatsApp and therefore, that that's got a bit flatter than what we thought it would be before going more of the loan book.

Thank you for your question in respect of time. And now we invite you to stay for lunch and mingle with the team. Thank, Santi, Joao [indiscernible] and hope you have enjoyed.

Hi, everyone. I'm Rafaela Vitoria, IR Officer at Inter, and I would like to welcome all to Inter & Co's First Quarter 2026 Earnings Conference Call. [Operator Instructions] that the conference is being recorded. A replay will be available at the company's IR website.

With me today are João Vitor Menin, our Global CEO; Alexandre Riccio, our Brazil CEO; and Santiago Stel, our CFO. To start with the CEO overview, I would like to invite João. João, please go ahead.

Thank you for joining us today to discuss our first quarter results for 2026. As you can see, we had a strong start of the year, and our first Q results reaffirm our path to sustainable and profitable growth. We have a strong momentum across several metrics.

Some examples are our gross loan portfolio scaled to more than BRL 50 billion. Our structural profitability is taking shape. Our net income reached almost BRL 400 million on first Q and on a run rate of BRL 1.6 billion on a year base, more than BRL 1.7 trillion in run rate for the TPV on this first quarter. Xandre and Santi will join me later on to elaborate more on that. And I want to highlight that these results were at the same time executed with discipline and they connect to our vision for the future.

During earnings call, I usually speak about the strategic view of Inter, our vision. However, next Monday, we're hosting our Owners Day, and I will save the big picture for that event, which I'm personally very excited about. We will showcase our ambition to lead through innovation and deliver growth and profitability together, creating a sustainable business model for our owners. I really encourage you to join us next Monday at Nasdaq.

For the first time, we will have our senior leadership sharing the perspectives on topics such as client principality, credit penetration, monetization through upsell and cross-sell and of course, our latest tech evolutions, how we are unlocking the AI opportunities at Inter. We will discuss our vision, our financial strategy, our execution plan and the core enablers behind all of it.

As you are already familiar, in every earnings day, I'd like to present not only the financial KPIs, but also new products and solutions that we deliver to our clients.

This quarter, I want to highlight the announcement we just made 2 days ago. For those who haven't seen it, we just launched Seven, our new multi-agent AI tool. It has massive potential because it is not just a user interface. It is a powerful Agentic platform built from the ground up. It connects the full power of our data infrastructure to deliver the absolute best client experience.

Since 2025, our AI evolved from simply answering questions to actually getting things done. It's now a fully transactional AI tool. Clients can ask for investment advice, make PIX transfers through text and also buy gift cards. They can also manage credit card installments and much more. Seven makes even the most complex products incredibly simple to understand and use. You will see the full picture of it during our Owners Day, where we will present how Seven plays a crucial role in our business model going forward. Now I want to invite our Brazil CEO, Xandre, to present the business update for the first Q of 2026. Xandre, please go on.

Thank you, João. We're excited to share our long-term plans with all of you at the Owners Day on May 11. But first, let us dive into our first quarter results. Let me start with our client base. Our total number of clients keeps growing, and our base is stronger than ever. We reached 44 million total clients. We just achieved our highest quarterly jump in activation rate since 2024, reaching almost 60%. People are not just opening accounts, they're actively using them.

We're achieving this high engagement while maintaining a deliberately disciplined low customer acquisition cost. Our absolute focus remains on increasing principality and becoming the primary bank for every single user. This means increasing cross-sell and driving much higher monetization levels. That's another topic we will explore during our upcoming Owners Day.

These high activation levels translate directly into massive payment volumes. As you can see in the cohort chart on the right side of the slide, our clients are transacting more than ever before. In the first quarter, our combined cards and PIX volume reached BRL 1.7 trillion run rate with a 25% growth year-over-year, where the solution people use for their daily needs. Because of this daily engagement, 8.5% of the PIX transactions made in Brazil flow through Inter.

Moving to the credit side. We continue to see healthy and balanced growth across our entire credit portfolio. We're growing fast at more than 30% year-over-year, but we're doing it in a diversified way. Nearly 70% of our portfolio is secured with some type of collateral. We do this by balancing our growth across products like mortgages, payroll loans and credit cards. This strategic mix ensures steady returns are protecting our asset quality.

Private payroll has been our main highlight over the past year. We maintain a positive view on this product. We reached BRL 2.5 billion portfolio and 600,000 active clients. This shows the true strength of our digital distribution and our ability to scale a new product quickly.

On credit cards, we are making progress in increasing the volume of the installments and the overall interest-earning volume. We call this process reshaping. These interest-earning portfolios now represent over 25% of our credit card portfolio, up from 21% last year. Revolving grew as clients are no longer mandatorily moved to installments. Santi will provide more details on our strong loan book performance later.

I'll finish with a view on our market shares. Business keeps increasing materiality, consolidating our position as a high-volume, high engagement platform for dozens of millions of people. Because of our complete ecosystem, we're gaining market share across every key product. Whether you look at PIX, credit cards, mortgages or investments, our numbers are climbing steadily. Our foundation is solid, and we're ready to build another solid year and an even more remarkable future. Now I'll pass the word to Santiago, who will detail our financial performance.

Thank you, Xandre. Hello, everyone. Let's jump into financial performance. As Santi mentioned, our loan portfolio is growing at a strong pace. We nearly reached BRL 50 billion, which is a 33% growth in the last 12 months or 3% relative to last quarter. If we exclude the SME portfolio, which has short duration and usually decreases during the first quarter, our growth is even stronger at 37% year-on-year and 5% versus last quarter. In terms of loan balance per active client, a very important KPI that drives ARPAC growth, we remained at BRL 1,930 following a very strong growth in the prior quarter.

Now let me break down this growth by each of the products, starting with the bottom of the page. On the real estate side, mortgages grew 42% year-on-year, while home equity grew an impressive 43%.

On the payroll and personal loans portfolio, which includes both private and private payroll, we grew 38% year-on-year. The highlight in this group was private payroll, which reached BRL 2.5 billion portfolio, just as Xandre highlighted before. Finally, credit cards grew 27% year-on-year, supported by solid risk management and continued progress from our reshaping strategy, driving improved monetization and profitability in the product.

To close this slide, it's worth highlighting that we have three products growing at nearly 40%. At the same time, credit cards are growing at around 30% year-on-year. This enables us to continue building a powerful balance sheet, driving NIM and ARPAC expansion while maintaining strict control risk management.

This fast loan growth we just covered came together with sound asset quality metrics. We have three factors playing out in this quarter. On the macro side, as you all know, delinquency in the system is increasing. On seasonality, first quarters tend to have a bit more pressure in these metrics. And third, on growth strategy, we are growing private payroll plus working on cards reshaping, which pay off in NIM side but do pressure on the asset quality metrics. All these factors put together, we had increase in NPLs from 4.7% to 5.1%.

In terms of NPL and Stage 3 formation, we had a stable quarter, having almost the same metrics as we had in the prior quarter.

In terms of cost of risk, though it did increase as a consequence of private payroll being in our books for several quarters, you can see that excluding it, it remained fairly flat during the past 3 quarters.

Lastly, on credit cards, our cohorts continue to perform well, significantly better than 2 to 3 years ago and now with much greater monetization.

Moving to the funding side. Our total funding reached BRL 74 billion, which is a 25% annual growth. Another great number to highlight is the loan-to-deposit ratio. It increased 4 percentage points in 1 year as our loan growth is expanding faster than our deposit base.

Our deposits per active client remains strong, sitting above BRL 2,000 per active client. The slight decrease in the first quarter is seasonal. This happens when compared to the fourth quarter when people received their 13th salary and year-end bonuses.

Our annual growth was driven primarily by time deposits due to the high level of the Selic rate and the ongoing success of My Piggy Bank product that now has over 5 million clients.

As we said many times in prior calls, our strong funding franchise remains being one of our key competitive advantages, given that our cost of funding remains one of the lowest and most stable in the industry. While market rates fluctuate very strongly, we are able to keep our funding costs very stable. This quarter, our cost of funding stood at 64% of CDI, an improvement from the 66% of the prior quarter and almost identical to the level we had 1 year ago.

On the revenue front, both our net interest income and our fee income continue growing at a strong pace. Our total gross revenue surpassed BRL 4.3 billion. This marks an impressive 37% year-over-year growth. This magnitude clearly highlights the scale and momentum of our business as we continue to expand.

Total net revenue also delivered significant results, growing 33% year-on-year to BRL 2.4 billion. The standout driver behind this growth was our credit portfolio. Our NIM increased by 38% year-on-year. This acceleration was heavily driven by strong performance in payroll loans, credit card, mortgages and home equity loans. These are key segments where we have built significant scale and efficiency.

On the fee side, net fee revenue grew 18% year-on-year. This reinforces the importance of our complete ecosystem, having Seven verticals and 180 products allows us to easily cross-sell and increase our fee composition.

The completeness of our platform enables cross-selling and further monetization. Because of this, most cohorts are monetizing better quarter after quarter. This increases our ARPAC while our cost to serve remains flat. This dynamic is a key driver of our structural profitability. As a result, our net ARPAC reached BRL 34. This is a solid 9% growth year-on-year despite strong active client growth. Furthermore, our margin per active client stands at BRL 21, marking a 15% improvement on an annual basis and recording the second best quarter ever.

Our mature clients demonstrate even greater potential. They are already generating over BRL 130 in gross ARPAC, further underscoring the attractive opportunity ahead once clients mature in our base. This performance is a true testament to the strength of our ecosystem. We will dive on this much deeper in our unit economics and principality efforts during our Owners Day on May 11.

Now I'll go through the NIM page. The first comment I'll make is that this year, we will be using the NIM 2.0 as our primary NIM. This NIM has the interest earnings portfolio in the denominator and is in line with what we see in the industry, both on incumbents and disruptors disclosure.

Now jumping into the metric itself. Our NIM of 9.54% was the second best on record, only 3 basis points lower than in fourth quarter 2025, which had a very strong performance. On a 12-month comparison, it is an increase of 70 basis points or 15 basis points per quarter on average, exactly in the middle of the 10 to 20 basis points per quarter that we have signaled to the market.

On a risk-adjusted basis, we are seeing the impact of the upfront provisioning of private payroll loans as those expenses come in before the interest of the product through the natural J-Curve.

Overall, the results that we see in this page makes us very proud as it is the consequence of disciplined and consistent capital allocation. We're delivering growing and stable margins despite volatility in macro variables and a more levered balance sheet as we continue to grow and scale.

While revenue grew 33% in the last 12 months, our cost control approach allowed us to grow expenses by 20%, a delta of 13 percentage points. There are a few factors that I would like to explain on this page.

First, on personal loans, our headcount remained stable at approximately 4,000 employees over the last 12 months, where we continue to seniorize multiple teams. Second, our administrative expenses rose 17% year-on-year at almost half the top line growth level despite the much higher transaction volumes in our super app as it continues to scale. And third, a topic that touches both personal and administratives, we're seizing AI opportunities across the company. By now, it's much more than just fraud, customer service and credit underwriting, as it has scaled across all divisions and became part of our day-to-day. We will deep dive on this in the Investor Day of May 11.

Putting both revenue and expenses in the same page, here, we can see the essence of our digital banking model, which is high operating leverage potential.

On the left side, we can see it indexed since beginning of 2023. And then on the right-hand side, the efficiency ratio shows that we had a very strong quarter, reaching a record low of 43.8%, meaning 170 basis points improvement versus the prior quarter, thus starting the year with a very strong momentum on this metric. Operating leverage is in full action and is driving incredible results straight to our bottom line. All of this strong execution combined is reflected on this profitability page, which makes us again very proud.

We reached a net income of BRL 395 million this quarter, meaning a run rate of almost BRL 1.6 billion. We delivered 15.5% ROE and 1.59% ROA, both record numbers. A new metric that we added this quarter, which we think is interesting to follow is our return on tangible equity, which reached 19.5%, a very impressive level in our view. To close on my end, I would like to highlight that these results speak to the discipline in capital allocation, risk management and cost control, all with an ambitious growth mindset. Now João Vitor will take the stage for the closing remarks. Thank you.

Thank you, Santiago. On top of the great results the team just presented, I want to add one final thought. 10 years ago, we completely transformed our business. We decided to go mobile only, not just mobile first. We launched the first digital bank in Brazil, placing a strategic path on the banking revolution concept.

Today, 10 years later, we are experiencing a true deja vu moment. We are entering a new trend that is as big as the banking revolution back then. We call it the banking AI revolution. It is a massive new technological wave and at Inter, we are seizing it. Our first quarter results prove we have the perfect combination of growth and profitability.

On top of this strong momentum, we can aspire to transform the retail banking market again, exactly as we did in 2016. There is much more to come. Stay tuned. Thank you very much for joining us today. Rafa, now let's open for the Q&A session.

Thank you, Joao. We are very proud of this quarter, but we are even more excited about the future. Before we open for Q&A, I would like to invite all of you to join us on May 11 for our Owners Day. It will be an exciting opportunity to reflect on our incredible journey and share insights into the future we are building together.

We will be live at the NASDAQ market site in New York City starting at 9:00 a.m. next Monday. For those who can attend in person, the event will be broadcast live. You can use the QR code on the screen to register for the live broadcast. Hope to see you all there. Now let's start the Q&A session.

Our first question comes from Gustavo Schroden.

I'd like to explore the asset quality trend because we have been seeing a recurring deterioration in these indicators over the last few quarters. And as a consequence, it has impacted the cost of risk as well.

And you mentioned that it is related to this acceleration in private payroll loans as it requires upfront provisions. But I'd like -- maybe you could explain us the dynamics of this private payroll loan. I mean, what is the level of expected credit loss you have to build in the beginning? What is the expectations regarding breakeven point? So I think that would be great because we have received a lot of questions from investors about this, let's say, increase in NPLs and NPLs formation and increase in the cost of risk. And what is the level of cost of risk we should expect during the year?

I'm going to cover first the answer from a strategic point of view, how we see that delinquency going forward and how it can impact our growth. And then Santi will cover more on the cost of risk NPLs going forward.

So important to mention that it might look contradictory, but I do see opportunity for Inter at this moment. We know that it's a hot topic today, most in Brazil that there is a big pressure on cost of risk. The macro scenario is not good. And why do I see that as an opportunity? Let me just try to be clear about that.

As you might know, the ones that have been following Inter for a while, we have been working hard for the past 10 years since we launched the first digital bank in Brazil to build a very strong funding franchise. So we have the best funding to keep underwriting well.

Also, due to the digital model, digital distribution model, we can distribute loans and serve loans cheaper than our competitors.

That said, we see that the last credit cycle was positive. And now we see some deterioration on the credit cycle in Brazil. We see that Inter is well positioned to be ahead of the competition and therefore, keep growing at the 30%-ish level that we have been growing for the past year or so.

We do see that our transactional part of the business, the TPV, the fixed volume are working really well. It will help us to keep bringing the best cost of funding, the best distribution channel and the best way to serve. With all that in place, we're excited for keep producing more loans, mostly on the secured portfolio, important to highlight, as of today, roughly 70% of our portfolio is collateralized and also keep growing on the unsecured part of it through credit cards. Xandre has already explained on his remarks. And now with all that said, I'm going to hand over to Santi to cover about the delinquency and the NPLs going forward.

So on private payroll and its delinquency, this product continues to show the expected behavior that an early-stage book has and its performance remains within our assumptions. This quarter, we had record volume of originations as we started to also sell it through WhatsApp in addition to the app and the portal. And this channel is driving more conversion of clients. So we're pleased with the dynamic that it's taking from a commercial point of view. Xandre can comment on this later in greater depth.

Private payroll did drive NPL 90 days up, mainly because it came from around 0 last year and its share of the provisions and delinquency mix keeps growing within the portfolio. This quarter, we saw operational improvements such as, one, the possibility of moving contracts from one company to another when clients switches jobs as well as two, a smoother process of collecting payments from employers.

We still see many other operational improvements coming, such as, for example, the possibility to use the severance funds as a collateral when the employees are terminated and the automatic re-inclusion across employers and lastly, the use of FGTS as collateral. These are improvements that we think that eventually will come and will also impact positively delinquency.

It's also important, Gustavo, to know that the current pricing of this product already implies a double-digit delinquency. And with these current levels of delinquency, the ROE of the product at the rates at which we are originating are around 30%. And as we have also mentioned in prior calls, the product has its natural J-Curve where first, we have to provision upfront and then as the interest income comes through the P&L, we see the positiveness of the results. We passed the breakeven point a quarter ago. And as the portfolio starts growing -- stock of the portfolio starts growing more than the new originations, that NPL should continue moving forward.

So in all, we are happy with it. This is an investment for the future. It fits very well in the inter by design formula. The people that get these loans are benefiting from this versus more expensive alternatives. And as we continue to capitalize this opportunity, we will do so.

All right. If I may, just a follow-up here. What is the period on average to reach a breakeven point, right? Because I imagine that is, as you mentioned, is a J-Curve. So you originate in the beginning of the contract, you have this higher cost of risk and then you reach the breakeven. So what is the average period to reach a breakeven point is?

Vintages of private payroll at the rates that we're originating and with the delinquency that we're seeing reach breakeven in around 2 quarters or 6 months, Gustavo. We did accelerate originations in the last quarter through that. So we had a steepness on the volumes coming in, but a typical cohort breaks even in 6 months.

Okay. And just a final one, is the expected cost of risk for the year is still 5% to 5.5% or it has changed?

On the current scenario that we're seeing, we are expecting something closer to 6%. And we -- again, as we have mentioned many times, in the business of maximizing or solving for risk-adjusted NIM. And the cost of risk in this particular year with the scenarios that we're seeing and taking more marginal exposure to private payroll and within cards also with the reshaping, we see closer to 6% for the remaining of the year.

Ricardo Buchpiguel.

We saw that NIM was roughly stable in this quarter despite changes in the portfolio mix, as you mentioned, the private payroll loan that has higher yields and that also kind of drove higher cost of risk. So it would be helpful if you could help us understand what makes sense to expect for NIM in the coming quarters? And what drove this effect in Q1, perhaps it's something to do with seasonality and also the J-Curve that you mentioned, but just wanted to hear your thoughts on that.

Thank you, Ricardo. This is Santiago again. So on NIM, we -- first, let me give a longer-term answer. We've been saying that the NIM should grow 10 to 20 basis points per quarter on average. And if we look at the growth in the metrics for the past 12 months, it grew 70%, so 15 basis points on average, which makes us very pleased that we see that improvement continuously happening.

In the fourth quarter, we have a greater increase from 9.28% to 9.57%. Everything plays favorably for the NIM in the fourth quarter. A bit of the opposite happens in the first quarter, particularly with deposit balance on the cheapest type of deposits being lower in this quarter, and that generates that opposing view. So it's relative to last quarter, we have 3 basis points difference, 9.57% versus 9.54%, we call it roughly flat. But we are continuing to see more NIM expansion.

We see it closer to around 10 bps on average for this quarter, NIM expansion as a consequence of a lot of the lower-hanging fruits in terms of repricing of older portfolio and putting the liquidity to work at higher yields. We still have a lot to be done. We have many initiatives on the treasury front as well. But again, this first quarter is more -- the stableness has more to do with seasonality in the funding side for the first quarter, which had the opposite effect in the fourth quarter. And therefore, we were roughly flat versus fourth quarter '25.

That's clear. And on another topic, I wanted to ask if you could comment a little bit on the impact from the changes in payroll loan rules that we saw this week, either in the short term, medium term. I'm not sure if that would be relevant for you guys.

So this is Alexandre speaking, Ricardo. Thank you for the question. So first, on the private payroll, we're very constructive with the product. It's important to say this. And the changes in the caps do not change materially our underwriting. If we look back since the beginning, that would be less than 5% of the total underwriting. And what's happening with our underwriting dynamics is that we're evolving the distribution channels and our own distribution channels, which will -- which we're confident that's going to offset the impact of this 5% that we might see as potential reduction.

To give you a few numbers, we reached the BRL 2.5 billion portfolio. The average rate is at 3.7%, which is considerably lower than what we see in the caps. And also talking about a few dynamics on the private payroll loans and how good it is for Inter. So the cross-selling is at about 2x the average cross-selling of the product. The ARPAC is about 4x the average ARPAC of the clients. That's very good. And last quarter, we talked about WhatsApp origination that we would start it during the first quarter of this year.

We started -- and in these early days, it's still early days. We're already seeing about 30% of our origination coming from the WhatsApp channel. So that would be good.

And also I would like to finish talking a little bit about the public payroll. So we also saw rules changing a little bit. The most -- the biggest impact comes on the public payroll cards, which we don't operate, also the benefit cards, which we also don't operate. So we shouldn't see any impact on business, and we see the changes as positive for the population, positive for our clients. So anything that's positive for our clients will be positive for Inter in the long term. Thank you, Ricardo.

And just a quick follow-up on that. The reduction in payroll margins for public employees to reaching eventually 30% wouldn't have a negative impact on you guys or perhaps that's not that relevant? If you could also elaborate on this part?

Yes. From an underwriting volume perspective and as we look at the penetration of this product in our overall portfolio, it's not significant. And we believe, as we're still growing the portfolio, we shouldn't see any material changes as we look for the future of the products.

Our next question comes from Tito Labarta.

Follow-up, I guess, on asset quality. Are you able to quantify, I guess, how much of the pickup in NPLs was one related to the private payroll and two, seasonality? Just trying to understand a little bit how much is like underlying deterioration versus some of the other mix and seasonality?

And then second -- and also, I guess, as the private payroll sort of stabilizes and the collateral and all the systems are working, where do you think the write-offs or NPLs for private payroll will eventually end up?

And then my second question, Santi, you mentioned, right, cost of risk will probably be closer to 6% this year. I think you're keeping the NIM expansion guidance. But I guess, how are you thinking from a risk-adjusted NIM perspective, given that cost of risk is probably going to be a little bit higher. Do you think you'll be able to compensate for that with better NIM? Or is the risk from asset quality a little bit greater than the NIM expansion that you expect?

Tito, thank you for the question. So on the first one to quantify seasonality versus internal dynamics in the portfolio, it's roughly half and half, the split of both. We see -- if you look at the last year, our NPLs grew around 30 basis points, and we see a similar amount of delinquency increase this quarter as a consequence of seasonality.

And then the remaining is two factors, private payroll growing the portfolio and also the additional delinquency from credit cards that is obviously paying off very, very nicely on the credit card portfolio P&L. So it's partially seasonality and partially internal and within internal, both private payroll and credit cards being the two main factors.

On the delinquency level of private payroll, it will depend, as I mentioned, with all of the factors that are still to be seen on the collateral and the severance and so on. We think that it would make sense for this product to have a delinquency level in the high single digit, potentially even mid-single digit depending on how well those things play out. It's still above 10%, but it should converge, we think, to something around those levels on the continuous improvements continue to happen.

And then on risk-adjusted NIM, first, decomposing on NIM, we expect the continuous improvement closer to 10 basis points on average in the quarter. And then with risk-adjusted -- with cost of risk growing, we think that the risk-adjusted NIM will be a bit more stable this year throughout the year than when it was before. And then it would continue to resume the upward trend going forward. But it will ultimately depend on the loan mix that we operate with. So what we're seeing with the current loan mix, we see it more stable throughout the year, meaning end of 2026 similar level to 2025 with NIM expansion and cost of risk both growing marginally.

Okay. That's helpful. And I guess just one follow-up on the private payroll. So as the delinquencies will come down, would you expect the NIM to come down as well? So maybe risk-adjusted NIM stay the same? Or would those dynamics change at all?

Tito, this is Xandre speaking. We see -- so it's going to depend a lot on the competitive dynamics. Short term, we don't expect to see the average rates coming down as the market is still adapting the market is still learning and trying to reach these long-term NPL levels and the long-term cost of risk levels. So we believe for now, we should see stability.

Longer term, as everything is in place because Santi talked about the high single-digit NPLs. When will that happen? It's uncertain. It could be in the end of this year, could be mid next year, and it heavily depends on the implementation of all the improvements that Dataprev is working on. So as we see these NPLs in the high single digits, longer term, we may see a compression in NIMs, but João will fill in also with a few more info.

So Tito, just to connect with my first comment on how we see the business, the loan growth portfolio moving forward. Interesting to see that these first two questions connected to delinquency and some change on the regulatory part of private payroll loan, public payroll loan, it's important to see that, as I told, I has been preparing ourselves to be well positioned to capture to seize the opportunity.

So just to recap, by having the best cost of funding, we can, for instance, be more competitive when we see a cap on the interest rate for private payroll and for public payroll loan. When you see, for instance, that we can distribute most of our private payroll loan through our own app and not on the open market. Therefore, we can be more competitive when, for instance, we have a cap on the rate.

So when we combine delinquencies picking up on the industry, some regulatory change, we see Inter more positioned than before to keep growing on the portfolios that we want to evolve, such as the private payroll loan, public payroll loan, mortgage, home equity and also even on credit card.

On credit card, by instance, although we see most of it as our unsecured credit portfolio, we're now shifting our underwriting to older clients to clients that have been with us for a while and avoiding the new underwriting. So this combination lead us to be confident that the pace of growth that we have been experiencing so far, it's solid, it's good, and we keep delivering in that trend. This is very important to mention.

Again, it might look contradictory, but the overall macro deterioration in terms of delinquency and how this change that we see on private payroll loan and public payroll loan creates opportunities for Inter to keep growing and to keep penetrating and keep gaining market share. This is a very important measure that I'd like to highlight here.

Makes sense. I mean I think the fintechs should be in a good position to potentially take advantage of look.

Our next question comes from Mario Pierry.

Let me ask two questions. Still on asset quality, if you can comment a little bit about this new debt renegotiation program in Brazil. How do you think that's going to impact your business? And if you think that any of your clients could be participating in this program?

And then a second question, completely unrelated, João, and I keep focusing on this is on operating expenses, right? You showed a significant improvement in the efficiency ratio this quarter. However, right, your efficiency ratio still is at 44%. Everyone else is running in the 20% level, and your target was 30%. I feel like it's always personnel expenses growing 20% that concerns me the most. You showed that your number of employees stayed stable at 4,000 and still expenses up 20. You talked about having a more senior management team, but I wanted to understand exactly what that means.

Because, yes, expenses are growing less than revenues, but they're growing like 5x inflation. And if you think -- and maybe you're going to touch on this on Monday, but there's going to be a point where your expense growth starts to normalize. And if you think that we still are like 2 years away from the happening or 1 year away, especially, right, as you talked a lot in your remarks about AI and the benefits of the AI banking. So just help us first understand why it's okay to grow personnel expenses 20%? And when do you think that this growth rate should start to normalize?

Thank you, Mario. This is Xandre speaking. I'll take the first part on the Desenrola and the renegotiations, and then I'll pass the mic to João.

So on the Desenrola, the fast answer is that it's a positive program. We participated in the discussions as the program was developed and believe that it's going to be better than the first one. But the reality is it's not going to materially change the business. It's going to help for sure, but it's not going to materially change the dynamics, the overall macro conditions that we see.

Having said that, what percentage of our portfolio or of our delinquent base can participate? The answer is more than half. So we have the volume between 90 days and 720 days delinquent today that we have that's addressable is higher than 50%. So we have a lot of room to renegotiate with clients, and we see that as positive.

Positive, it should bring positive results short term. Long term, we still believe there is a lot of structural issues in the country to resolve. And our mission here is try to help as many clients as possible. And if we can do this, it's going to positively impact the results, bottom line and cost of risk. Thank you. And I'll pass the mic to João.

Mario, here. Thanks for your question. And it's actually a very interesting question because let's just try to put that on the perspective. When we see about the number of employees that you just mentioned, 2, 2.5 years ago, we had the same number of employees, roughly at 4,000 employees at Inter. Back then, we had half of the revenue that we're producing today. So this is mostly because we have been optimizing how much revenue we are producing per employee.

And just to remind, India is still a growth story. So we're not solving for only the expense on a nominal base. As we just mentioned, we are solving for a lower growth on expense compared to the growth on our revenue side. And this is exactly what we have been printing for the, let's say, maybe 4 or 6 quarters already.

Also, just to connect to your question, we do have spending more on our senior management. We believe that this is very important for us to keep improving our credit underwriting collections, how we keep innovating, how we keep pushing the bar, how we can keep growing our business on a sustainable way with the right risk management approach. So yes, so we are bringing more senior managers. It's not an expensive investment, and we're proud of that. We're going to share a lot about that on our Owners Day next Monday. I think you're going to be pleased with what we're going to see there.

But also to remember, we doubled our revenues with the same number of employees, and this equals to efficiency ratio. Of course, could we be having a better efficiency ratio. As of today, if we're not growing fast, not innovating, not putting new products, probably yes.

But again, at the end of the day, we believe that we want to produce more value, more momentum to our shareholders. And we believe the right thing to do now is to keep growing, to keep innovating and to keep pushing the bar in terms of new clients, more clients, more engagement, more monetization, more revenues, more products and so on. So that's the arbitrage that we're doing here, maybe postponing a little bit how good you can get into efficiency ratio in order to build and to produce a better platform for our owners. That's the view behind it.

Our next question comes from Pedro Leduc.

First one on the interest income from personal loans, I like the way you disclosed it, it's a few quarters now that the implied yield declines, which is not too intuitive given that FGTS has been losing share there and private payroll gaining, which has a much higher rate than that's implied. So if you can help us understand that implied yield drop there in personal loans. That will be the first.

And then second, just a general view on your SME initiatives, where you stand? I mean it's been a while since you acquired Granito. We haven't heard much since then. Just a general overview on SMEs and what we can expect here for this year.

So the implied yield, start more general and then touch on specifically on your point on personal loans. But the implied yield on our interest earning assets increased from 18.4% to 21.7% comparing to the same period of last year. This is 3 percentage points improvement.

On personal loans and credit cards, there's a mixed or cross effects. Now with the reshaping strategy that Santi has several times alluded to, part of those interest are remaining in the product of credit cards when before they were transferred to the personal loan portfolio. So that additional interest or interest rate increase that was outside of credit cards, but the loan to credit cards is now staying within it. That's why that curve is increasing more.

And then on the personal loans, the positive angle is that private payroll is pushing that product rates up, while you have the offsetting one-off of cards remaining within the car. So the good way to see it in summary is when you see both of them together and they're going up very nicely on a quarter-by-quarter and even more on a year-by-year basis. And that's the way we think about. So there is some cross effects between the two products that makes the joint view more accurate.

I'll talk about the SME business. So we're very -- I'm a big enthusiastic of this business at Inter. So we've been doing it for a few years now. And what's the dynamics that we see today?

So first, in terms of client acquisition, very positive. So we're in our best year ever in terms of client acquisition, both for SMEs and base in the ballpark of close to 100,000 accounts a month. So very positive acquisition dynamics. The transactional business is strong, and it ends up bringing the majority of the profitability that we see in this segment at Inter.

Today, within our overall deposit base, about 40% is coming from the SMEs, which is also reflects a little bit the power that we have in this business. But reality is that SMEs are still an enormous opportunity for future prospects for Inter. Why is this? Cross-selling is still to be done when we think about credit. So the transactional business is very intense, the cross-selling of credit is still on the early days. And that's why I said that I'm so enthusiastic about it because we have a lot of touch points with this client. We have an activation rate of about 80% with this public, which is much higher than the activation rate of the individual accounts, meaning that as we evolve the solutions and the credit solutions, we will see this penetration of credit products that today is at about 3%, only 3% growth. So it's easy to see 3% to 6% to 10% and to see something closer to what we see in the individuals where we're above 30% credit penetration today.

To finish, you talked about the Granito acquisition, so it's Inter Pag. On Inter Pag, we are on a modernization agenda to make sure we can serve their clients. So we should still see a few quarters until we resume growth there.

Our next question comes from Yuri Fernandes.

I have a similar question to Leduc. But for real estate, the yield also moved down. I'm not sure if this is inflation that sometimes is lower. But when we do interest income for real estate lending, it was also a little bit down. And just checking on the credit card because I get that the private pay is polluting the asset quality metrics. But when we go for credit cards and we check the Stage 2, Stage 3, there was increase in the product, and you did provision for most of this formation.

But just checking Santi's answer that if this is related also for you migrating some of the personal loans towards credit cards, like I guess, the refinanced loans that were cards now migrating from personal to loans to credit cards, I think this may explain.

And then I have a second question regarding fees. If you can comment a little bit why fees have been a little bit more like luster, you're growing clients, you're growing loans, but we don't see fees picking up.

Maybe I'll take the first two on rates and cards delinquency and I'll pass it to Xandre for fees. So on interest rates, there is a delay between the increase in inflation and the rate that the mortgage, particularly mortgage and also the mainly mortgage products reflect and then we will see the improvement that happened in the metric in the first quarter reflected in our financials in the second quarter. So there's a bit of a delay factor there that we're seeing already playing -- we saw in April and more to come in May.

On the credit cards, with the reshaping, what we see is that the length at which certain clients stage in Stage 2 is longer, right, relative to what we had a year or more longer ago. So it's a continuation of the life of the client in Stage 2 for longer, and that's what led to the increase on the card front. I'll pass it to Xandre on the last one.

Thank you for the question. So we did see this pressure on fees, especially when we look at the overall picture, right? So the net revenues grew at 33%, 18% on fee, 38% on NII. Looking at the 18% year-on-year, still a positive growth. We did have some positive highlights there, for example, Inter Shop growing at 30% despite the pressures that we see in the segment. And we do have several plans in the different verticals to resume growth and try to bring it to the pace above 30%. So we have a lot of product launches coming in, for example, in insurance so that we can pick up a little bit more growth there.

Despite the delinquency, we are very constructive on growing credit cards. So we should keep seeing interchange revenues growing more than what we saw in the last 12 months. So in the last 12 months, we saw 16% growth on interchange. We expect to see it getting closer to 20%, 20-plus percent. So we're constructive. We have very good plans. And we also truly believe that with all the Seven efforts when we think about the conversational sales, it's going to become -- it's going to bring us an opportunity to engage more with the clients and sell more in products that bring fee income.

The point about fees is there was some help on cash back moving lower and other income being higher. If you normalize for that, I guess some of the fees like the interchange, for instance, that is a highly transactional fee line. It's growing like 11% that is less. So this is why I asked. But perhaps more importantly, a broad question for you, for Santi, João.

The stock is down 12% today, right? And you are very positive on the speech. I think asset quality has seasonality. You just mentioned Santi just mentioned that he's looking for better trends ahead on already on the second quarter. What do you think we are missing here? Like what the market is missing on these results?

Actually, you made a very good question. It's very hard to understand market reaction. But at the end of the day, we're still here working hard. We're confident with the outcome for the business, not only on the short term, but also on the long term.

And as I mentioned on my opening remarks, we are confident that Inter has been for many years, building our banking franchise. So let's just look at. We have the best momentum on our deposit franchise. We have a very good momentum on our transaction platform, the volume of PIX above 90% of the market.

So all that put in context, we're really happy with the earnings. We're really happy with the momentum of the company. And also, we're really happy with what we're going to show on our Owners Day next Monday on NASDAQ.

So anyways, I mean, we need to keep doing what we have been doing in the past. always focus, always diligent and not working only harder, but also smarter. So we're confident that we will be able to show very good results, not only for the rest of the year, but also for the years to come.

That's how we take this market reaction. I mean it helps us to just keep focusing and keep delivering strong momentum for the business.

Thanks, everyone. With that, this ends the first quarter results conference call. We hope to see you all on Monday, 11 at NASDAQ in New York. Thank you very much.

Hello, and welcome to Inter IR talks. I'm Rafaela Vitoria, Inter Investor Relations Officer, and this video cast is produced by the IR team in order to bring valuable insights into our business.

Today, we welcome Andrea Nocciolini, our Marketing and Branding Director in order to deep dive into our branding strategy, how we have differentiated ourselves and how we transform marketing into sustainable growth. Thank you for joining us, and welcome, Andrea.

Hi, Rafaela, thank you very much for the invitation. I'm loving to be here. It's a pleasure to be with everybody.

So before we start, we'd like to talk to our guests a little bit about their background. So tell us about how you come to Inter -- it's been 4 years and a little bit of your experience before that.

It's been a long journey. It's been 25 years already of experience. I started in the sales department, and then I went to a communication agency and then managing iconic brands in Brazil. First, the sales life is very dynamic. So it's running crazy, running after targets, monthly targets, daily targets and celebrating every closed deal.

Then at your communication agency, I worked at DM9 DDB, managing big brands also and having the strategic priorities for the clients in the creative campaigns, very interesting also. And then we say I went to the other side of the counter and then managing big brands in Brazil. So first at Whirlpool Corporation, which is a multinational, one of the largest in home appliances. Managing big brands, most important brands in Brazil, Brastemp and Consul, very interesting for many years, more than 8 years at Whirlpool.

And then I went to BR Malls, which is one of the largest shopping center companies. Then it's a different retail life. So having our storekeepers sell, have traffic clients coming in, so very dynamic also retail life. And then I went to iFood, which is a large company in Brazil today, one of the most iconic brands, which is an app delivery and very different ways of working, testing, learning, very dynamic also, and I got an iFood in the pandemic. So which it was in moment, where iFood was getting very, very big. It was like an essential product at the moment. So it was very interesting also.

And then I came to Inter, which almost 4 years and managing this iconic brand that has so much story to tell, and that's what we've been doing these 4 years and making it healthy, big and bringing lots of results.

What do you say is the importance, the relevance of branding for a company like Inter? How do you connect the branding with our strategy with -- especially our growth strategy?

Branding has been something very important to all big large companies and CMOs because a big brand is totally connected to results, to growth results. So a brand that is not remembered at first will not be considered and will not be [ buyed ]. So branding is very important. And big brands, powerful brands, they have a larger mental availability. So it's a brand that comes to your mind very fast. It has elevated results of preference, so has this emotional connecting bond with clients also.

You have loyal customers. So it connects to Inter strategies because we are in a very competitive market. It's a very high competitive market. In Brazil, we know that there are about 25 to 30 financial brands our customers, people know about 8 to 10, and they have in their wallet like 6 brands. So it's a market where we are looking for engagement. We're looking for being the main financial institution. So having a powerful brand is game changing because clients, customers that connect emotionally to a brand is what will really make the difference.

And Inter as a DNA disruptive platform that brings anticipating trends and bringing solutions to our clients and our customers, we're part of the Brazilian life today. So we want our clients to be using the most quantity of products possible and understanding our value proposition. So branding is about understanding first customers, our clients' needs and how can we be a strong brand that really is part of their lives.

So today, we have about 40 million -- over 40 million clients, but Inter actually started as a small regional bank in Belo Horizonte. How do you see how our brand evolved over time?

Yes. First, I'd like to -- I would give a step back and think about how we position ourselves as -- in the financial industry. So first of all, we were a bank for many years, Banco Inter. And then we took the inline bank out of our name because it didn't make sense anymore calling us only a bank because, as I just said on the previous answer that we are this robust platform with 180 products, 7 verticals.

We were the first marketplace, the first complete investment platform, the first social media inside an app. So first, I'd like to say that we evolved as a product, as a solution in the market. And we almost don't see ourselves just as a bank. We are an evolution. So we are at 3.0 of the bank of the banking industry, positioning ourselves as a financial super app.

So first, I think it's important to understand where we are bringing differentiation versus competitors in the digital bank industry. And our brand position evolved from an app that simplifies your life to smarter financial life, which is a more robust vision of how we get into our clients' life.

So yes, it's a positioning that brings all the potential that we see of being a financial global brand that is relevant in our clients' day-to-day and how we make them have a moment, where they can speak about money, which is not easy, where we can be a brand that is beside their life to bring the best way to use their money in a smarter way and have a healthier life, smart financial life.

You also mentioned building trust as a relevant part of branding. And in the financial services sector, that is super relevant. How do you connect earning trust to our brand today?

Yes. Definitely, trust is a primary attribute for the category because it's all about money. So you're not going to put your money in an institution, you don't trust. If you need to make any transactions, money passes through everything of our lives. So trust is very important. I would say it's basic. But when we think about the financial industry, that looks rigid because it's all about money and it's all these numbers and it's very emotional because speaking about money is not easy.

And having a healthy financial life can change your life too good or too bad. It's all about emotions because money also can make you have your dreams come true. It's all about possibilities. So it brings you lots of energy of how you really want a smart financial life. We studied a lot about that, how Brazilians see this as a challenge in their lives. And it's there that we find as a customer-centric company that we have to speak the same language.

So the last campaign we brought here in Brazil was how do we speak about something, which is a taboo in Brazil? How do we speak about money in a very light way where Brazilians will understand, will identify themselves and will be a brand that understand their challenges. So this is where we find that Inter as this robust platform with so many solutions can guide our clients to have a smart financial life.

We think this is very strong because it's about human understanding and understanding our clients and putting our customers and our clients in first place is our top 1 priority.

It's interesting because you put that in the prospect of the branding. But when you think about the super app, we have a lot of examples such as My Piggy Bank by Goal that reflects exactly that positioning in branding, how we build trust, how we connect with our clients' goals, thinking about the long term. So the branding is also connected to our product strategy and our growth strategy.

Yes, totally. And being a super app and having all the technology that we have, we're able to understand each client as one client. So it's what we say, when you open your app, it's one app for each customer, one app for each client because it's all about -- and we're going to guide you along the way aligned to this position to make your life healthier and smarter. And that's why I -- it's a lot of what Inter is here for.

So you've mentioned about how our brand has evolved in the recent 3 years. And we've also talked to investors how we have invested a bit more in branding over the last couple of years. Some of the accomplishments from these investments have been to be highlighted as the seventh strongest brand in Brazil. What else can you tell us about some of the results of the investments we have done in branding in the last 2 years?

Yes. Rafa, we were recognized as the seventh most strong brand in Brazil from brand finance, together with large brands in Brazil, so very nice. And we were also the most preferred brand in digital banks for the Gen Z for Forma Turismo, which is also very nice. When we think Gen Z, are these clients getting into the market and being a favorite brand for these customers is having them forever. That's what we want.

So it's very nice. Yes, we've been in these 2 big rankings -- brand rankings. And it's totally connected with what has been happening with the brand. So yes, the brand has been growing. The last 3 years, we've been growing considerably in spontaneous awareness, which is first brand that comes to your mind. It's more than 8 percentage points. We've been -- all our brand funnel is much healthier.

So in consideration and preference also, preference is not easy to move because it's the most emotional. So these results are totally connected to a healthier brand. And it's connected also to what we want in the next years. So we have this ambition to be among the largest and most preferred brands in Brazil. And what makes us confidence of this journey that we're taking our brand is that it's more about -- it's more than just the marketing investments or our campaigns, but we see our customers happier having a best offer in the app, the best experience, everything grows our branding experience, not only communication.

So we're very confident that we are on the right track and that, as I said in the beginning, large brand, brands that understand their clients and speak the same language consistently along the year. It's something we've been doing also speaking the same language as the Brazilians, connecting emotionally and understanding how to speak about something that is not so easy, as I said already, is taking us to the right path.

And so this year was -- we're in 2 of these rankings, but we hope to see ourselves much more in the next months, next years as the brand grows together, not only, again, communication, but the product, their experience.

And I think another KPI that relates to that is the number of active clients. We've grown a record number of active clients as of the third quarter. And although we have seen some saturation in Brazil, not for us, Inter was the financial institution with the largest number of new clients as of September. So I think all the branding investments has also translated into new active clients in our platform. So it makes a lot of sense.

Yes. Active clients is something that we look -- it's one of the KPIs that we look monthly together with the client vision, because we understand that an active client is an active client that understands our value proposition that again connects with what the brand is bringing of maybe products they didn't know how to use or they didn't even know there was in the platform. So active clients is totally connected to a client that has a best experience with the brand and has the best experience in their financial lives.

So yes, active clients is something totally connected. As I said in the beginning, strong brands drive larger growth results. So it's one of the KPIs that we look every day. The other KPI that we monitor monthly is all we call our brand health, which is all the funnel. It is how much we have clients knowing us, considering us, coming to the institution and buying us and preferring.

So this is our marketing funnel. So a healthy brand is a brand that has the best conversion all over this funnel. And one of the most important KPIs that we look and that we got much larger that we grew, that we increased in the last years is the spontaneous recall the spontaneous awareness. We grew 8 to 9 percentage points in spontaneous awareness, and that's very important because we have lots of research that show a brand that is remembered, is most remembered has 3x the chances to be convert -- to convert in sales.

So this is one thing very important. And the other number that we -- research we have also says that only 5% of the customers are ready to buy your product when you bring some communication when you talk to them. 95% are not in the moment to buy your product. So if you have a high mental availability, if you are one of the first brands that come to their mind, the probability that you will convert is larger. So yes, we grew almost 9 percentage points in the last year. So we're very happy.

We already were in 3 years -- the last 3 years, we were a known brand, but now we're an even stronger and larger brand in Brazil. So we have more and more clients out there recognizing Inter, understanding our value proposition and understanding that coming to Inter is having a smarter financial life.

So before we go, there's one topic that is dominating the discussions today, which is AI. Specifically in branding, how do you see AI helping our branding strategy or helping the efficiency in your team? How do you see the impact of AI in branding today?

Yes, Rafa, we're very excited about AI in branding. Today, we're using AI to scale creativity with consistency, which is very important for any brand. So -- and it goes from different fronts. So for example, when we're going to put something -- a campaign on air, we can pretest very fast to see if it's a good idea or not. That's one example.

The other one, we have different formats, when we put a campaign on air. How do we put all formats to go in a consistent and easier and faster way with AI also. And so all the creation images, all the text optimization today, it's you're able to choose digital influencers. And for example, with influencer, digital influencers, Imagine choosing more than 1,000 digital influencers and having to understand what's going to be the script for everyone, for each of the creators, digital creators. So yes, we're using AI for that.

And thinking about our reputation, all the search engines, which is basic today, everybody looks about the search engines to understand about brands and institutions. What do we want to -- image, what is about our reputation? What are executives going to say on interviews. So this is something that we're -- it's called GO. We're doing also. So we're very optimistic. And we see AI as an alley and not to substitute, because I understand that the professionals that will be in the market and will be doing an excellent job is how you manage AI to have better results, faster results.

And Inter as a company is very strong in AI, always was. And in branding, we're using everything that is possible, so we have the best result for the brand also.

That's very exciting. That was a great conversation, Andrea, thank you very much. Thank you all for listening, and we'll see you next time.

Thank you very much.

Hello, everyone. I'm Rafael Vittore, IR Officer at Inter, and I would like to welcome all to Inter & Co's Third Quarter 2025 Earnings Conference Call. [Operator Instructions]. This call is also available in conference is being recorded. A replay will be available at the company's IR website. With me on today's call are Joao Vitor Menin, Inter's Global CEO; Alexandre Riccio, Brazil CEO; and Santiago Stel, Senior Vice President and CFO. Throughout this conference call, we'll be presenting non-IFRS financial information. These are important financial measures for the company, but are not financial measures as defined by the IFRS. Reconciliations to the IFRS financial information are available in our earnings release and earnings presentation appendix.

I would also like to remind everyone that today's discussion might include forward-looking statements, which are not guarantees of future performance. Please refer to the forward-looking statements disclosure in the company's earnings release and earnings presentation. Today, Joao will discuss Inter's strategy and business overview. After that, Alexandre and Santiago will take you through our financial and operating results in more detail. We'll then open the call for questions.

I will now turn the call over to Joao. Joao, please go ahead.

Thank you, Rafaela. Hello, everyone.

I'm excited to share that we have accomplished yet another remarkable quarter of growth while continuing to build Inter for the future. This year is a very special one for us. It marks the 10-year anniversary of the launch of Brazil's first digital account. It's a moment of pride and reflection as we look back to 2015 and remember the challenge we overcame to get where we are today.

What makes us even prouder is that we have never lost our essence, creating value for every single stakeholder and truly walking the talk of transforming Brazil's financial system into a better, more inclusive environment. For our clients, our no hidden fees approach and more importantly, our sustainable credit products offer an inclusive and accessible way to meet their financial needs. This has led us to come from 0 to 41 million clients in this amazing journey. For regulators, being the pioneer, launched the first digital bank back in 2015, we act as a partner of a better financial system, one that is efficient, transparent and client focused.

For our shareholders, the disciplined execution of our 6th 3030 plan allow us to deliver attractive balance of profitability and growth and sharing long-term value as shown in our path of growing our ROE. For our employees, Inter remains an exciting dynamic work environment where our people are empowered to innovate, grow and contribute to meaningful change every day.

As we celebrate a decade of innovation, we remain true to our disruptive spirit. Inter is built for the future, and I believe that our next decade will be even more exciting than this one. As we celebrate our 10-year anniversary, I'm sure that our mission statement was the secret sauce that made it possible. Our mission statement is crystal clear: to create a world where interactions between people generate more value. This mission captures what drives us every day. We create products, services and solutions that simplify lives, empower people and build stronger connection. Whether through innovation, flawless execution or a customer-first approach, every interaction brings meaningful value. Our mission is deeply rooted in our culture, which is built on 4 core pillars.

First is customer centricity, always prioritizing our clients' needs and delivering great experiences. Second, we lead through innovation. We are always looking ahead to anticipate our clients' needs. Third, our operational excellence. This means we aim on flawless execution for everything we do at India. And fourth, our winning mentality by delivering the extra mile and achieving great results together as a team. By living these pillars every day, we are setting the foundation to make our mission a reality. With these pillars as our foundation, my focus for the next steps is clear: keep innovation alive within the company by leveraging AI, hyper-personalization and introducing new features to our app.

Today, we already have 380 AI initiatives live at Inter. For perspective, during our 2024 Tech Day, we had just 80. Second, driving our global expansion, enhancing our global account with new products and exploring opportunities in new markets to strengthen our international footprint. three, investing in our talent team by developing our executives, bringing market experts and continuously nurturing the cultural pillars that makes Inter unique. I'm tremendously proud of what we are building and the ability we have to create meaningful value for every client we serve.

With that in place, I will pass to Santiago Stel, who will present our operational and financial performance. Santiago, please go ahead.

Thank you, João. Hello, everyone.

Guided by our core pillars, we are on track for another outstanding year of execution. We're the fastest-growing large financial institution in Brazil, among those with over 20 million clients, pursuing what we believe is our market fair share.

Our Net Promoter Score remains at the excellent zone at 85 points. These results come from clients who use our platform at a high frequency. In September, we saw more than 20 million daily log-ins. That's 14,000 per minute. On average, we processed 20,000 financial transactions per minute, totaling over 850 million in a single month. This level of engagement shows how well our platform works and proves the value created by the synergy between our 7 verticals. In the third quarter, we set a new record performance in new active clients and accounts opened.

We welcomed 2 million new clients, our highest number ever, beating the second quarter of 2022. This reinforce clients' view of Inter's strong value proposition. Our focus on quality remains strong. Of these new clients, 1.2 million were active, bringing our overall activation rate to 58%. I'd like to stress 3 aspects that make us confident with the future. First, we have improved onboarding dynamics, and that's seen throughout the onboarding funnel, so several improvements helping us increase the number of new accounts. Second, we have been running an efficient client early activation journey. and that explains why we can consistently increase our activation rate.

And finally, the sum of these 2 points is resulting in a fast payback of around 2 months after clients on board. This engagement translates into high transaction volumes. Our active clients transacted over BRL 412 billion in our platform, a year-over-year growth of around 30%. A large part of this volume comes from PIX, which is a strong indicator of clients using Inter as a primary bank. Moving to our credit cards. Volume reached a new record, surpassing BRL 15 billion for the first time. This represents a 20% growth in a yearly basis. This growth in TPV levels is consistent across all cohorts, but our newer clients present impressive results, transacting more and faster than older ones.

Moving to our credit vertical, I have 3 key highlights. First, we continue disciplined in our strategy of high growth, respecting ROE targets and a balanced ratio of secured to unsecured loans, roughly 2/3 of our portfolio is secured, 1/3 of our portfolio is unsecured. Second, private payroll loans have been the main highlight of the year, and we keep a very positive view on the product. We reached a BRL 1.3 billion portfolio with over 300,000 clients. This shows the strength of our digital distribution and our ability to scale a new product quickly. We're also seeing operational improvements coming from data Trev and company's HRs, which increases product quality and our confidence with the delinquency levels that we're going to see long term. We also expect clients from the FGTS loan products to migrate to this product, given the similar profile and the new regulatory changes. that came in the last few months. And third, 2 quarters ago, I introduced the concept of reshaping of our credit card portfolio as a key focus for the year. We're making good progress in moving clients from being pure transactors to our interest-earning portfolio. IPs now represent over 23% of our credit card portfolio, up from 20% last year. This is happening through key initiatives like PIX financing, monthly limit reassessments and new installment plan offerings.

Sand will provide more details on our strong loan book performance. Talking about market shares, consistency is the name of the game. We have always used our market share in PIX as an internal benchmark. Our goal was for other products to reach that same level of success. This quarter, I'm proud to announce that 2 of our key products have surpassed that goal. First, home equity for individuals. Thanks to the amazing work of our credit and distribution teams, we're now the second largest underwriter of the product in Brazil. We have reached 8.9% market share in portfolio balance. Second, FX transaction. The success here is driven by the high engagement in our global account and the amazing UX of this product. We have reached 8.4% of the market transactions. I have highlighted 2 products, but this product -- this progress is visible across all of our businesses with consistent growth quarter after quarter. I am confident we will keep strengthening our position in the market and that more and more products will surpass the PIX benchmark.

To finish, I want to emphasize how these outstanding results are powered by our 7 verticals and our commitment to continuous innovation. Each vertical contributes to our growth, working seamlessly and interconnected to enhance client value and compound our profitability. This ecosystem is what makes Inter unique and drives us forward.

Now I'll pass the word to Santi, who will walk us through our financial performance.

Thank you, Sander, and good morning, everyone. Moving to our loan portfolio. We delivered another quarter of strong results. Our loan book grew 30% year-on-year with quarterly growth accelerating to 9%, 6% on an annualized basis. Within collateralized loans, we achieved an impressive growth led by private payroll loans. In credit cards, the reshaping strategy mentioned by Sandi, together with our continuously improving underwriting and collection processes gives us confidence to continue growing at a pace of around 30% year-on-year.

Looking at SMBs, we have been prioritizing profitability over loan growth, though we see a great potential to accelerate growth soon with the upcoming centralized invoice discounting clearinghouse known in Portuguese as DuplicatasK, which is set to be launched by the Central Bank early next year. Once again, we outpaced the market in our key portfolios, private payroll, home equity and credit cards. In payroll and personal loans, we're moving quickly to capture the private payroll market opportunity. And in just 6 months, we built a BRL 1.3 billion portfolio from scratch. The overall market also considering public and other personal loans grew 22%, while we reached a growth of 38%. In mortgages, we are differentiating our offering through digital distribution, and we have been able to grow at 37% on an annual comparison, reaching a BRL 9 billion portfolio.

In home equity, we're the #2 player in originations, growing 33% year-on-year, significantly outpacing the market growth of 21%. And in credit cards, we reached 30% growth while maintaining our conservative approach to risk underwriting. As Sandy mentioned, we are also successfully reshaping this portfolio to further improve its profitability.

Moving to asset quality. Our metrics showed strong performance this quarter. The 15- to 90-day NPL ratio stayed stable at 4.1%, while the 90-day past due metric improved 10 basis points while decreasing from 4.6% to 4.5%. The credit card NPLs when analyzed across cohorts continue to show strong performance, validating the improvement made in our underwriting and collection models.

And finally, NPL formation and Stage 3 formation stood at 1.65% and 1.46%, respectively, in line with historical trends. Here, we see the evolution of our cost of risk, which reached 5.35% this quarter. The main driver of the recent increase is the new private payroll portfolio, which requires upfront provisioning. The coverage ratio shows the increase associated with those provisions. On the right-hand side, we show an illustrative chart of the return profile of the new portfolio in which we have been investing throughout this year as we build the portfolio and now pass the breakeven point. And from now on, we expect high profitability.

Our funding franchise had another great quarter, growing 35% year-on-year, reaching BRL 68 billion. This growth was primarily led by time deposits, driven by the higher Selic rate and the success of -- my Pig Bank, our product that makes fixed income investing easy for our clients. Our transactional deposits, which are a core competitive advantage of our platform also had a strong quarter, growing BRL 1.3 billion or 7% this quarter. And lastly, on this page, our active clients surpassed for the first time ever an average of BRL 2,000 in deposits, which is a great milestone that shows how our clients trust our platform with their deposits. This strong funding franchise translates directly into a key competitive advantage, our low cost of funding, which this quarter reached 68.2% of CDI. Where we add this quarter is a complementary metric, which fixes the number of business days, making the comparison across quarters better. In that sense, our ratio reached 55.1%, which was the best one so far this year.

Our strong operational performance translates directly into strong revenue growth. In that sense, our net revenue reached BRL 2.1 billion, up 29% year-on-year and 8% sequentially. The key driver this quarter was our growth in our credit book with NII increasing 39% in a yearly comparison. As already mentioned, this was fueled by strong results in private payroll, credit cards, mortgages and home equity portfolios. As Andre showed, higher client engagement is driving faster monetization across our cohort. As Andre showed, higher client engagement is driving faster monetization across cohorts. This quarter, net ARPAC reached BRL 3.2. This shows our potential as our mature clients are already generating close to BRL 90. When we combine this strong monetization with our low cost to serve of BRL 13.1, the result is our best ever gross margin per active client, which reached BRL 20.2. We are confident that the success of new products like private payroll will continue to drive monetization even higher in the coming quarters.

Now let's deep dive in our net interest margins. Both our NIM 1.0 and our NIM 2.0, which excludes the noninterest receivables of credit cards, are consistently showing growth quarter after quarter and achieving new record levels. As you can see in the page, we have improved our risk-adjusted NIM by an average of 14 basis points per quarter. In this quarter, in particular, our NIM was positively impacted by private payroll and credit cards given the reshaping of this portfolio. However, we faced lower inflation, which impacts our real estate portfolio and higher number of business days, which increases cost of funding. With all these impacts together, our NIM continued to expand both before and after cost of risk.

Lastly, we continue to optimize the use of our capital structure with our assets to equity ratio increasing from 7.9x to 9.4x year-on-year. On the expense side, this quarter allows us to have a comparable basis given the acquisition of Inter Pag back in the third quarter of 2024. Our strong cost control focus allowed us to report a total expense growth of 5% quarter-on-quarter and 16% year-on-year. This growth is approximately half of the pace of our annual net revenue growth, showcasing the strong operational leverage of our business. The quarterly growth in personnel expenses reflects mandatory annual salary adjustments as well as bonus linked to our growing earnings.

As our business continues to expand rapidly, we remain focused on renegotiating contracts with major vendors to reduce our cost per transaction and further improve our efficiency. And in terms of ratios, the result of our cost control is an efficiency ratio improving from 47.1% to 45.2% this quarter. This 190 bps improvement is a very significant one, which demonstrates that the operating leverage of our digital banking model is very promising.

Finally, I'd like to highlight the progress we've made in profitability. This quarter, we reached 14.2% ROE and delivered a record net income of BRL 336 million, a true milestone in our journey. What makes this quarter even more meaningful is that we maintain this profitability while investing heavily in innovation, enhancing the client experience and improving operational excellence. These efforts lay a strong foundation as we continue positioning Inter as a world-class financial institution. Thank you all. I'll pass it now to Joao for his final remarks.

Thank you, Santi and [indiscernible]...

After hearing what they shared, it's clear that our powerful ecosystem is running seamlessly, and we are exceptionally well positioned within the evolving banking trends being shaped by the regulators in Brazil. The focus on sustainable credit, client-centric solutions and lowering borrowing cost is perfectly aligned with the Inter by design concept. We are laser-focused on finishing 2025 with strong momentum, setting the stage to start 2026 energized. We are committed to keeping pushing forward, creating value for our clients, shareholders, partners and employees.

Rafaela, let's now open the Q&A session. Thank you all.

[Operator Instructions] Our first question is from Tito L.

I guess my question is more thinking about the longer-term guidance that you've given of the 60 30-30, right? Because I mean, trends are looking very healthy, right? NIM is expanding, risk-adjusted NIM expanding, loan growth is doing well. Efficiency is improving and ROE is up to 14%. But just to think about to get to that 30% in the next 2 years, what else would need to drive that? I mean you mentioned that you're delivering this ROE despite investing a lot in the business, do you expect some of these investments to begin to subside or will pay off and that's going to boost the ROE? Just because looking at the trends, right? I mean, NIM, I think you've mentioned in the past, should continue to expand through next year, you're still repricing the loan book. But just help us kind of bridge from where you are today to sort of that longer-term view that you had previously given and what can drive that continued ROE improvement?

Tito, Joan Vitor speaking. Thank you for the question. So let me start by saying that we are really happy with what we have achieved, having this 6330 plan as a guideline for us for the past, let's say, almost 3 years. If you recap, we came from a 0% ROE back down to almost 15% ROE now on a running base for. So this is something that highlights what we have achieved in terms of profitability. Also on the first number of it, the 60, talking about the 6 million clients that we want to achieve, this quarter was the best quarter ever in terms of client addition. And also October was the best month ever for the past 3 years.

So we're really doing a great job in bringing clients to our ecosystem. on the efficiency ratio also this quarter was a very good one. We dropped almost 200 bps in that. So we see that we are on the right direction. About the ROE, which was your specific question, to be honest, we know that we have a tough environment in terms of Selic different from when we predict the 63 plan. And therefore, our credit portfolio exposure today is lower than it was supposed to be. But we see very good trends ahead, such as the private payroll loan. We see coming in next year, the factoring clearing house that is going to help us to grow a lot our exposure to SMEs which we are very excited. And with all that in place, it's hard for us to predict if we're going to be on the 30% ROE by the end of 2027 or later on. But the important thing is that the trend is good, the team is committed. And last but not least, we do have a very strong -- a very positive room to grow our credit portfolio ahead. I'd like to say that it's good that we have been growing 30% ratio year-over-year, but we still have most of the portfolios that we operate today, single digit -- low single-digit market share. With all that in place and maybe with the SELIC going now, we can grow faster on the credit portfolio that will help us to get to the 30% ROE by end of 2027 or I don't know, somewhere on 2028. So very committed, excited, and I believe that the platform is well turned for us to keep achieving the...

Very helpful, J. I guess maybe just to ask it a slightly different way, but maybe to paraphrase a little bit what you said. Would the biggest headwind, do you think be more macro, just given that rates, as you mentioned, are at 15%. Is that the biggest headwind to be able to achieve that 30%? Because execution-wise, I mean, you seem to be doing everything that you said, right? So just what the biggest risk to achieving that could be?

Yes, Tito. I would say that as of today, the biggest headwind is the Selic. So therefore, for instance, the payroll segment grows lower, the margin and everything grows is lower. But as you mentioned, everything that is on our hands, we're doing well. I mean we're bringing deposits. We're improving the asset side. We are improving the efficiency by being more diligent on the expense, trying to use AI to optimize how we run the machine. So that's it. I see that as of today, our biggest headwind is the interest rate in Brazil, it's a right assumption.

Our next question is from Gustavo.

Congrats on the high-quality results. My question is specifically about this higher cost of risk that we saw in the quarter. You mentioned that it is related to private payroll loans, while we saw the NPLs totally under control. So my question is, this is a new level of cost of risk that we should work with for the coming quarters or the increase in coverage ratio that you did in this quarter is enough for the coming quarters?

Thank you for the question. Yes, so what happens in the sequence of factors as we build a new portfolio, cost of risk picks up first since we have the expected credit loss model, and we have to provision upfront. And then as the quarters go by, the delinquency starts passing the 90-day mark and then the NPL follows. We haven't seen that NPL increase yet or it was very minimal yet given the life of the book is close to 6 months right now. And the majority of that was built on the second part of those 6 months, meaning in this last third quarter.

So the NPL should start to catch up a bit and the cost of risk will likely stabilize very close to the current level of around 5.5%. But again, as we mentioned many times, we are working to maximize risk-adjusted NIM, not to minimize cost of risk. That's the variable we aim for in a sustainable way, as we call in the inter by design by providing our clients with products that are actually good for them and tends to lower the cost of -- or borrowing cost relative to alternative products that they have in the market. So we think we're driving the outcome there in the proper way. The coverage ratio also anticipates in that way together with the cost of risk. But Stage 3 and NPLs are the ones that follow later, we should see that going up a bit in the next quarters without increasing further the cost of risk to the level that we have reported this quarter.

So great. A follow-up on this private pay loan because even with this higher cost of risk that you mentioned in the product, we showed a nice slide, a nice chart demonstrating that the product has reached the breakeven in the second quarter and now it is at a positive territory, right? So my question is, could you share with us what is the level of profitability you are delivering in this product and if there is further room to improve the profitability in the private payroll loan.

It's super high. By now, we are starting to see the cost of risk or delinquency level converge towards the high single-digit level in the prior cohorts of the first few months was higher. And as the months go by and the system starts working as it was designed originally, then the cost of risk hits the high single digit. With the high single digits, this is significantly higher than 30% ROE.

What we think will likely happen is that the interest rate on the asset side will probably go down as more competition comes in. For now, we're seeing it in the high 3s percent per month. And with that level of interest rate, the ROE, as I mentioned, is highly above the 30% mark. It's the highest ROE product we have in the portfolio. Nicely, it's BRL 1.3 billion and counting in the loan book. So it starts moving the NIM in the right direction. It's, as I mentioned in the prior question, a product that will the clients have available to go away from more expensive alternatives. And this one, it's one that they can use their income to finance their daily needs or their financing needs in a much better way, which is what we call the interbal design. So it's a really win-win product, hats off to the regulators in having it designed this way.

We think that the TAM is really significant. It should be multiple times more than the public payroll TAM given that you have 3x more employees in the private sector than in the public sector. But we'll see how much continues growing in the future. But so far, we're very pleased with the results.

Congrats on the execution.

Our next question is from Mario.

Congrats on the quarter. Let me ask you 2 questions. First one is on your net interest margin expansion, right? You're growing your margins 10 to 20 basis points per quarter as you had talked about at the beginning of the year. And in part, that reflects some of the repricing that you had done to your portfolio in the past.

So have we seen the full benefits of the repricing yet? And should we think about margins now going forward being more stable, especially as the mix of the loan book is shifting, right? Like I would imagine, right, the rates you charge on the private payroll product is lower than a credit card. So help us understand how you're thinking about the outlook for net interest margin? And then I'll ask my second question later.

Mario, thank you for the question. So the 3 drivers of NIM expansion are: one, repricing; two, better mix; and three, investment yield going up. Those are the 3 drivers. On repricing, we have done a very high share of that repricing since we started this a few years ago. Surprisingly, we did more on mortgages than on payroll because mortgages have higher growth than public payroll, even though it has a higher -- longer duration. And then on payroll, we still have a significant part of our loans that are at rate not very far from 1%, 1.2% per month that have some upside on repricing.

So there is some element. It's no longer the higher driver of NIM expansion as it was in the early days of the 60, 30 30, but there is still some potential. I would say that around 1/3 of those portfolios still have upside in terms of interest rates. And the good thing is that on public payroll, which hasn't grown for several quarters, public payroll specifically, it has grown in the last 2 quarters. And therefore, that accelerates the repricing or the increase in the yield of that portfolio. In terms of better mix within the loan book, the 2 main drivers were FGTS and home equity in the prior years. This year is a bit more led by private payroll and credit cards through the reshaping that Sand alluded to. And then on the investment yield also, we have been improving in that sense. But we still have to go to make some more progress on is on optimizing capital. We haven't done much very complicated structures yet in terms of or structured rates to optimize the capital more than what we could.

That's another lever that could be added to the list of the 3 that I mentioned before. But when you put all that together to summarize the answer, Mario, we think that the trend of NIM expansion still has an ample room to continue to improve. We have answered this in the prior calls, at least in the next 4 quarters, we see a continuation in the trend of the risk-adjusted NIM in line with what we have seen in the prior quarters.

Okay. So that's clear. And now my second question then on Slide 19, right, you show that you're growing faster than the market in all the products. what gives you confidence, right? Because when we talk to the big incumbent banks, they are -- they seem more concerned about the economic outlook. They seem like they are derisking their loan books. And while you're doing the opposite, right? You're trying to accelerate growth. And maybe this is the best time to grow, right? When the competition is slowing down, you probably can get like very good clients at attractive spreads. So first of all, so then the question is, what makes you comfortable to be growing your loan book at 30% pace when everyone expects the economy to decelerate? And how do you think you can maintain this growth once the traditional banks start to accelerate again?

Mario, this is Sean speaking. Thank you for your question. So there is a lot here, right? I think the first thing is about what we call our right to win. So we're very well positioned to grow overall and to expand in the markets we're operating.

So large client base, our brand is getting stronger and stronger as we go and the products are there. And these products, we derive to the next portion of why we believe we can keep growing, which is about the inter by design. So we positioned our credit portfolio with those 2/3 in secured lending, 1/3 in unsecured. Within the secured lending, we're talking about Brazil's largest credit markets, which includes mortgages and also payroll loans. All these products are growing. And when we think about mortgages specifically, -- we see a decline in the balance of savings accounts in Brazil when the Pana linked mortgages. And this is really good for Inter. So we have been originating for more than 10 years mortgages at market-based pricing. And this gives us confidence that we're going to keep on growing both mortgages and home equity as the entire market should derive to a more market-based solution that we believe is a lot more sustainable long term.

So this takes care of mortgages, payroll loans, as Santi mentioned already, having the client base, having the digital experience and being playing in a market that should achieve between BRL 250 billion and BRL 30 we should keep on growing. Credit cards, another point that we have been growing fast, and we believe we can stay there. And in here, we talk a lot about share of wallet. So we're occupying still a relatively small part of the share of wallet of our customers. And as we improve -- as we keep doing all the improvements that we have been doing in underwriting, in growth in UX, we will keep expanding our penetration. So having said all of this, it's a lot about continuity of good execution, and our team is getting stronger and stronger, and we'll keep on it to sustain these growth levels that we have been seeing.

Our next question is from Pedro Leduc.

Congrats on the journey so far. Question on credit cards. We've been watching it carefully. simple math, interest minus provisions was negative, breakeven. Now this quarter, positive, sustainably positive. So if you could share with us maybe what you have learned, what actions have led to this? And now at these that look to be much more healthy ROE levels for the product stand-alone, if we could expect a more meaningful penetration increase within your client base, which is still fairly underpenetrated, I would say.

So just trying to see if now this product is at the economics that seems fruitful for you to roll it out a little bit more aggressively. I'm imagining that maybe could grow ahead of the overall loan book in 2026 again, maybe even faster than it grew this year, considering also the income tax boost that a lot of your clients are going to have.

Luc, this is speaking. Thank you for your question. So yes, we're very positive on what's been happening in the credit card portfolio. So as you know, we've been evolving on a 360 view. So both credit team getting more and more mature and models getting more and more mature collections, same thing and the product team very engaged on making this evolution that we saw in the last periods.

So this is the first to say that like the ground to keep the good execution is set, and we're very positive on that. When we get on the metrics and the portfolio, we go back to the reshaping that we talked also during the call. So about 2 quarters ago, we started saying that the percentage of interest earning portfolio at Inter was asymmetrical as compared to the market. We were at only about 20% interest earning and the idea is to expand this.

So the result that we see in interest is all about the execution or the good execution of the reshaping of the portfolio. We're now at more than 23% interest earning. And as we execute, we should see this interest-earning portfolio expanding. And the good thing about the lessons learned, and you asked about the lessons learned that -- that it's important to explore is as we increase interest-earning portfolio, and we want to get to, say, 25%, 26%, we're also helping clients.

Before, we didn't have the number of collection products that we have today. And as we implement them, we help clients pass through moments where they need more time to pay. So it's truly a win-win for the portfolio, and we'll keep on it to deliver this, let's say, this first goal of interest-earning portfolio at 25%, 26%.

And about maybe rolling out [indiscernible]

João speaking here. On that, I think that was explaining how we are more confident on underwriting more credit cards, and we're doing that. But also on the other hand, when connecting to Mario Pierre question about the market being not too aggressive in credit underwriting, we always connect that type of question to inter design where we want to have -- to explore more the collateralized credit solutions, private payroll, the receivables for the SME company that is going to roll out next year.

On credit card, we believe that we're growing in the right pace, to be honest. I mean, we're growing a lot, I would say, but we don't want to just go all in on that product. We know that this is the product that gets more impacted when the economy is not doing well. So as we always say, we like to produce alpha on our credit portfolio to try to get away from the debt. So even though the employment might not be doing well next year or whatever the interest rate is too high, we don't want to get that exposure.

So what we're trying to do at India, we are building exposure to credit, as you can see, growing 30% year-over-year, but doing that in a cautious way, a good balance between unsecured and secured, which is today is 1/3, 2/3 and that's how we want to keep doing ahead. So I wouldn't expect -- we should not expect I to massively growing our exposure to credit cards going forward. I would say that we want to compound our portfolio, increase NIMs, as Santi mentioned, but without doing unforced errors. So -- and consumer finance is a segment that we need to be cautious. So that's how we are running the business for the years to come.

Our next question is from Yuri...

Congrats on the journey. A follow-up, and I think João already clarified part of my questions here on Stage 3 and Stage 2. Like on Stage 2, my question is what drove the increase quarter-over-quarter like on your total balance? I think last quarter was a little bit low, so maybe it's a base. I'm not sure what happened in the second quarter, but Stage 2 balance, they went up 28% quarter-over-quarter. So just trying to understand what drove it. And regarding Stage 3, like your new Stage 3 formation is mostly stable. There was a marginal increase. But when we break it down by products, and we take a look on personal loans and credit cards. And usually, we look together, right, because sometimes refinance, they are part of personal loans and all this. These 2 products together, they are up 20% quarter-over-quarter. And I think Medco was very happy in mentioning interest income because in the end, I think you are building more provisions, but you are pricing the risk and your interest income is higher.

But given we are in a moment that people are getting a little bit more concerned about asset quality in Brazil, what explains this increase in information for those 2 products? Is the private payroll within personal loans? Like is there anything on credit cards? And again, I think João was very clear saying that it's cautious and not the time to be super aggressive on cards. But I would love to understand a little bit the moving parts here on Stage 2 and Stage 3.

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Here. So starting with Stage 3 -- you are correct that on a by product basis, it varies, but it's personal loans category, which includes private payroll, the one that led the growth. It went from 2.1% last quarter to 3.4%. The remaining ones, including credit cards, were quite stable quarter-over-quarter.

So the driver was the private payroll, and that's the main one on Stage 2 as well, even more pronounced on Stage 2, given the fact that the tenors of the Stage 2 captures in the life of the portfolio being a 6 months old portfolio is more predominant by now in Stage 2 and Stage 3. But both drivers are having private payroll. We think that's going to be hitting more proportionately in Stage 3 in the coming quarters and 90 NPL as well as the portfolio continues to grow in size.

And regarding the Stage 3 that you really 90 days at an absolute figure -- the increase on private Peru is because of operational risk is too high and like this should be the level because it was -- just trying to understand because given these are new product, Stage 2 is fine, but I would not be expecting Stage 3 to be a problem for this product right now.

It's within the expected losses that we had. Nothing out of the ordinary in terms of the expectation. It is the way we modeled it, Yuri differentiated operational risk from credit risk in a product that is very early stage, sometimes is a bit blurry. But as we mentioned, we are converting to a high single-digit delinquency level in this product. And with that, the return profile is, as I mentioned in a prior question, north of 30%. So it's very accretive for the results.

Congrats on pricing [indiscernible]

Our next question is from Marcelo M.

Congratulations for a very solid results. My question is regarding the fee business. So we were seeing in the last couple of quarters this deceleration, especially in this last one on the growth of the fees. Can you share a little bit your ideas and the strategy here? So there are a lot of investment here in insurance, in the international accounts. So why do you believe that the growth is slowing down and how to reaccelerate that?

Marcelo speaking, thank you for your question. Santi will deep dive on the numbers and on the KPIs and economics later on. But just to highlight, we have been since, I would say, the launch of our digital account, trying to put more and more service business on our platform that will get us more fees, a better fee ratio. We were running between 25% and 30% back then. What happened is because we're growing more on credit recently due to private payroll, mortgage and everything that we just discussed on this call, the ratio was lower. There are some one-offs here, Santi will cover. But the thing is out of our 7 verticals, 5 of them are focused on fees.

So we have FX, as we mentioned, global account, we have investments, insurance, loyalty, our Loop program and our Intershop. So this is something that it's in our DNA, putting new products and we'll keep doing that, increasing the addressable market for that. We don't know how our breakdown between fees and NII will behave going forward because, as again, as I mentioned, we're growing fast on NII. But we see still a good opportunity for us to keep running on this 25% range going forward. And again, I'm sure that once some of these verticals get more mature, we believe that this could be a tailwind for us. So and Santi will mention about the change between quarter-over-quarter and year-over-year on that metric, okay?

Just to complement Joao, we had 2 one-offs in the fee side impacting negatively. One was we shut down IM Design, which is a company that we co-owned, was a graphic design company acquired many, many years ago, and that had an impact of BRL 15 million in the fee line as well. And another one is the BRL 4,966 impact of deferred fees associated with credit of around another BRL 15 million.

So those 2 one-offs together would have given us BRL 30 million of additional NII to make it on an apples-to-apples basis to what we had in the same third quarter of last year. And with that, the growth would have been 7% instead of 1%. So it's a line that is growing less than NII. As we mentioned, NII is growing consistently around 40%. Last 5 quarters, we had a growth in that level. Fees is swelling a bit behind that, but we continue to have high hopes on this being a key driver of revenue growth and profitability.

Our next question is from Neha Agarwala.

Congratulations on the results. Just following up on the fee income discussion here. So we do understand these one-offs which led to the weakness. But would it be fair like, as Joao mentioned, that going forward, we could still see net fees growing in the 20% range? Or is that too high?

Nick, Sandeep here. So yes, that's quite accurate. So if we decompose a bit by line, the biggest component of fees is credit card, and that's highly associated with TPV growth. As Chandra showed, TPV grew 20%. So this fee line is growing quite in line with it. An interesting thing to mention is that Intershop or e-commerce platform has a big part of the monetization now being driven on the NII through buy now, pay later or Credio, how we call it in Portugal.

So that's a fee driver of NII directly. And then FX is performing very well. It's still a smaller line, but it's growing very, very high. So all of that together, we think in the 20s or around 20% is a fair assumption to have, which is lower than NII, but still it's a high -- an important component of our revenue base.

Perfect. Perfect. Then on the private payroll, we already had a lot of discussion on that. But it seems from your comments that things have been improving. The collateral is still not fully functional. The FGTS collateral has been delayed to next year. But it seems like things are going in the right direction. Have you seen more competition from maybe not the incumbent banks, but from other smaller players become a bit more aggressive if the product seems much more viable than it was 6 months ago?

So I'm going to talk a little bit -- this is Alex speaking, and thank you for your question. So talking about the payroll loans, looking at the product as a whole, we're very happy with what we're seeing from any angle we look at.

So from the capacity of underwriting more -- we're happy. So we're growing underwriting. We're doing evolutions in our credit model and our credit policies. And this has been driving increased underwriting volumes day after day. So very happy there. From a collection standpoint, we're also seeing improvements. And as Santi mentioned, we should converge longer term to high single digits, which is much better than what we initially forecasted or how we initially calculated the profitability of the product that, as we mentioned before, we had a scenario of up to 15%. And now we're looking at long-term high single digits, much lower, much higher ROE. And from a competitive standpoint, we don't see any concerns yet. As we mentioned also earlier, we're talking about the BRL 250 billion to BRL 300 billion potential portfolio that today is running close to BRL 90 billion.

So a lot of expansion to happen. And the idea now and the idea in the upcoming quarters is to keep absorbing as much demand as we can. On a static basis, the market share is at 2.1%, but on an underwriting basis, we're executing at a much higher percentage of market share, probably in the -- getting close to the 10% range of market share, and we'll keep on it. And João will follow up also on the question...

Joao speaking. Just more of a high-level view in terms of competition, as you asked. We see Inter in, I would say, in a sweet spot in terms of competing in Brazil. We have elements that the incumbents they do have, such as a massive number of clients, all the products. We do have elements that only the FinTech players have such as digital distribution, good NPS, good service. And also, we have elements that the incumbent banks they do have and the fintechs they don't have, which is a very good cost of funding.

So when you combine all of that, and I really think that we're in a sweet spot between the incumbents and between the FinTech players in on the north of 30% year-over-year. So -- and again, we have been building this platform for many, many years to be in that position. We started from the beginning from the basics of a -- from a good banking approach. So we started having the clients. We started doing the digital distribution. We start to bring very good deposit base. So we have all that in place. So I don't see competition as an issue, as I mentioned. And again, just to repeat, we are in a position to keep producing alpha in terms of credit underwriting and not just to follow the market to follow the trends. And last but not least, when we think about the incumbent banks that they have already a huge market share on most of the products out there on the credit products, we still have small market share on that product.

But when we connect that to our market share on PIX, which is about 8.5%, we do see that's going to -- our clients will be flowing to the credit products with us soon. So we are very excited with the future ahead, and we don't think that competition between the digital players will be a headwind for us going forward. Thank you...

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With that, we conclude the Q&A session. I will now pass it to Joao for his closing remarks.

Thank you, Rafaela. Thank you, everyone, for being with us for this last hour. I would like also to thank our employees. We have a very good team working hard every day to put I ahead of the competition to drive us to the next chapter. Thank you for all the shareholders that have been supporting us since 2018 when we listed the company. And hope to see you soon in a few months for us to discuss the 4Q results. Thank you very much, and have a good day. Bye-bye.