Brazil’s Inter&Co released its results for Q1 2025, during which it recorded a 57% year-on-year increase in net profit.
The group posted a net income of 287 million reais (about $56.4 million), excluding minority interests, emphasising the balance between revenue stability driven by strong operational performance and the positive impact of the strategic cost control process.
The company, which has been building a digital financial services platform, said in a statement that strong quarterly result was driven by the consistent focus over the quarter on managing expenses while continuing to support productivity.
This focus further widened the difference between revenue and costs, reinforcing the bank with a stronger balance sheet.
Key metrics are improving across the board
Inter&Co’s return on equity (ROE), a crucial metric, was 12.9% in the first quarter ended in March.
This was an improvement over previous times, indicating rising investor value and operational advances.
The bank’s efficiency ratio—a metric that measures how successfully a corporation manages costs concerning revenue—also improved, falling to 48.8% for the quarter.
Lower numbers in this ratio are typically interpreted as good, indicating greater cost management.
Credit quality metrics also showed improvement. The non-performing loan (NPL) rate for loans more than 90 days past due fell for the third quarter in a row, hitting 4.1% by the end of March.
This compares to 4.2% in the fourth quarter of 2024 and 4.8% in the first quarter of the previous year, indicating tighter risk controls and better borrower performance.
João Vitor Menin, Global CEO of Inter&Co, stated: “Inter, by design, represents the transformation of the banking industry.”
“From our emphasis on innovation and efficient digital distribution of financial products and services to extending benefits and cutting costs for all of our clients, we are establishing trust and long-term partnerships that will be mutually beneficial for years to come”, he said.
Customer base keeps growing
The company also reported a steady growth in its user base, solidifying its presence against the backdrop of Brazil’s highly competitive digital banking industry.
Inter&Co recorded 37.7 million registered customers as of March 31, with 21.6 million active users.
This is a clear jump from its 17.4 million active clients in the same quarter a year ago.
This growth is evidence of increasing demand for digital banking services in Brazil, and Inter&Co is still investing in user acquisition and retention.
The company has also scaled up its acquisition of new users using its digital platform and ecosystem strategy, but has also been able to keep existing users on board.
Strategic focus on sustainable growth
Inter&Co’s first-quarter result demonstrates the company’s commitment to long-term, profitable growth.
The group’s operational discipline, particularly its ability to control costs while maintaining service quality and customer acquisition, has resulted in higher margins and better financial performance.
The decrease in the NPL ratio suggests a more resilient loan portfolio, perhaps reducing provisions for bad debts and freeing up resources for future expansion or innovation.
At the same time, the increase in ROE indicates higher shareholder returns and greater investor confidence in the company’s business plan.
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