Inter & Co, Inc. (INTR) Income Statement

The explosive NII growth, particularly the sequential jump from $818 million to $1.8 billion, indicates a substantial increase in loan volume, likely from the company's aggressive credit card and personal loan expansion. This volume-driven growth is now the primary engine, overshadowing the more modest NIM of 1.8% in the latest quarter. The trajectory suggests management's focus on scaling the credit book is successfully translating into top-line growth, but it also raises questions about the sustainability of such rapid asset growth without corresponding increases in risk.

The NIM recovery in Q2 2026 is a positive signal, likely reflecting a more favorable rate environment or improved asset-liability management. However, the margin remains compressed compared to historical peaks, which may indicate that the loan book is growing into lower-yielding segments or that deposit betas are rising. The significant swing in fee income contribution (from 66.5% to 33.9% of revenue) also suggests that NIM trends are being influenced by the relative growth of interest-earning assets versus fee-generating activities.

The steady improvement in the efficiency ratio is a critical indicator that Inter's fixed-cost technology platform is being leveraged across a larger revenue base. This trend supports the thesis that the company's 'Super App' model can achieve superior unit economics at scale. However, the improvement appears to be driven more by revenue growth than by absolute cost discipline, as provisions for credit losses remain a significant and volatile component of total expenses.

The provision expense, while necessary for a growing credit portfolio, is a key headwind to profitability. The fact that provisions are growing at a meaningful clip alongside NII indicates that management is likely building reserves for anticipated deterioration in the consumer credit environment. This dynamic is the primary reason profitability remains 'Moderate' despite strong top-line growth, and it warrants close monitoring as the company pursues its aggressive user and loan growth targets.

The sharp decline in fee income quarter-over-quarter underscores the dependency on seasonal peaks, such as the Q4 holiday period, and the transactional nature of the Inter Shop marketplace. While the fee contribution remains a vital part of the revenue mix, its volatility makes it a less reliable earnings driver than the more predictable net interest income. Investors should assess whether the company can grow its recurring fee streams, such as wealth management and insurance brokerage, to smooth out this cyclicality.