Overview
Inter & Co., a Brazilian digital bank, reported significant growth since its 2022 NASDAQ listing, expanding its customer base from 18 million to over 44 million and achieving record profits in 2025.
U.S. Branch Launch
The company opened a banking branch in Miami, authorized by the Federal Reserve and the Florida Office of Financial Regulation, positioning it among a limited set of foreign banks with a U.S. presence. The branch is intended to serve Brazilian, Argentine and other international clients for remittances, cards, mortgages and brokerage services, and to help lower Inter’s overall funding costs.
Strategic Framework – “Rule of 50”
Inter’s CFO Santiago Stel explained the “Rule of 50”, which targets combined annual revenue growth and return on equity (ROE) of at least 50%. The longer‑term ROE objective is set at 28‑30% by 2029. The framework allows flexibility in how the 50% target is split between top‑line growth and profitability, with a focus on profitability and asset quality if macroeconomic pressures compress margins.
Credit Portfolio and Profitability
The bank’s credit book is roughly two‑thirds secured and one‑third unsecured, anchored by private payroll and real‑estate lending. Risk‑adjusted net interest margin (NIM) rose from 3.9% to 5.9% despite a tougher macro backdrop. Revenue is supported by a diversified fee base covering investments, insurance and a shopping platform.
Funding and Cost Structure
Inter’s cost of funding is 64% of Brazil’s benchmark CDI rate. The loan‑to‑deposit ratio stands near 80%. Funding reached 74 billion reais in the first quarter of 2026, representing a 25% year‑over‑year increase. The deposit franchise processes about 8% of all Pix transactions in Brazil and roughly 1 billion financial transactions each month.
Private Payroll Lending Expansion
The private payroll lending product grew to a 2.5 billion‑real portfolio with approximately 600,000 clients within about a year. Inter aims to double its market share in this segment by 2029.
Technology and Efficiency
Inter’s AI platform, Seven, lifted the efficiency ratio to 43% in Q1 2026. Gross revenue per client is 57 reais, while cost‑to‑serve is 13.1 reais, indicating scope for further margin improvement without additional headcount.
Outlook
The “Rule of 50” now guides Inter’s strategy for the next three years. The CFO noted that achieving the ROE target will be challenging amid current macro headwinds, but the bank can rely on levers such as repricing the loan book, optimizing funding costs and emphasizing secured portfolios to enhance risk‑adjusted returns.