Inter & Co, Inc. (INTR) Earnings Call Transcript & Summary

Good morning, everyone, and welcome to Inter's Owners' Day. I'm Rafa Vitória, 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]

Great. 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 Belo, 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 Inter sets a target, sets the vision, we can execute. We have been doing that for a long time. We want 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 leading the Inter, building Inter 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 Inter, 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 Inter. 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. [indiscernible] 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 Inter 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, Sandy was a client, if I'm not mistaken, in 2007. We were a friend at the school. And I have been looking at cautiously 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 Sandy, 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 is 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 Marlos, 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 3SA. As I told you, we designed the first ever financial Super App in the Americas. The 3SA 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 Sandy 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, [indiscernible] 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 Seven 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 Seven. 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 3SA 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 60/30/30 North Star, which was very important to guide us. We were able to have all the team focused, connected with the right [indiscernible] 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 site 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 Inter, the future of Inter 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 Inter 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 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 Sanji's 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, Inter Loop, 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 hyper-personalization makes the results be stronger and stronger through time. On this slide, 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 Sanji'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. A 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 60, 30 and 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, BRL 2.4 billion of net revenues this quarter, up from BRL 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 [ BRL 496 million ] 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 then. 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 in 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 [ 12/22 ]. Capital or leverage, I should -- it's quite straightforward. We're at 9.6%, 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, not relative to the Selic, this 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. And 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 Inter Pac, Sandy 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. Hyper-personalization, we already see very tangible revenue or sales that have to do with the spaghetti chart of the product adoption. Seven, Joao 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 a bit 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 or [indiscernible] 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 Sandy 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 Sandy 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 3SA 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 hyper-personalization, 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. Again, it doesn't matter the size of our clients 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 [ Guil ] 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 depth 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 startling. 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. Mauro 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 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. Mauro 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 or principality, which is -- which was reason of 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. Mauro 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 interesterning 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. Santi 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. Mauro 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 [ Santi ] 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, [ Guil ] Ximenes 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 [indiscernible] 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 Mauro 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 transactional 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, Guil, 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 Rangel, 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 itself. 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 on 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 Marlos 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 Marlos Araújo, 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 [indiscernible] 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 approach 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 this whole picture for the company and also risk management, which not only make us more resilient and capable of facing changing economic environment, challenging competitive landscape within a global regulatory framework. And thus, altogether, this embedded risk capability. As Joao 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, boosting 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 Thais to join the stage. Thank you.

Thank you, Marlos. 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. I am Thais, CHRO at Inter, 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 60/30/30 journey. And of course, I'm very proud of everything that you have built until here. I'm the last speaker this morning, but probably my topic 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 mark, 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 50. Since 2022 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 Joao leads the company with a global vision. We also created a CEO Brazil role to have more focus on 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 levels 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 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 building 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 reskilling perspective, we have 3 priorities to continue to do that. First, hiring for the skills, 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 for Inter. So this is the way that we connect with our purpose. To create a world where interactions between people generate more value and supported by 5 strong culture pillars. Client centricity, as you could see during this whole presentation and especially Xandre, Pri and Rodrigo's presentation. Operational excellence, our discipline to execute our plan. Driven by innovation is our DNA and it was clear in all the words that Joao said today in the way that he leads the company. Winning mentality was clear when Santi presented the new plan. We have grit. And finally, enterprise thinking. We work as a team and a good example about that is our 3SA. All the avenues in one place to create the best experience for our clients. So -- but how do we ensure that everyone, all the employees will achieve this plan. In this last page, I will show the DAC, as Joao mentioned before, the framework that connected everything that I presented until here. Direction, our purpose plus the Rule of 50, our new North Star, 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 virtuous 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 building a high-performance organization to generate more value for all the stakeholders, including you that trust in us. And I would like to say thank you for the audience. And now I will invite Joao to his closing remarks. Thank you.

Good. 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 Thais explaining about our team, and not only that, the vision, the direction and the alignment that we have towards our goals, it makes me really confident that the best for Inter is yet to come. We have achieved a lot, but Rule of 50 is going to be also a very important milestone on Inter's 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 through all of them. First, our innovative DNA. If someone asked me, what is the trademark of Inter? I would definitely say that to have an innovative DNA that helps us to be focused, push the bar and keep executing and being ahead of the competition. Also, the 60/30/30 plan it showed 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 was 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 Thais' presentation. Fourth one, our tech, our vision. The combination of our 3SA approach, our data vault and everything that we deploy in terms of AI through SEVEN 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 principality, but also with monetization. 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 50 as we have been on track to achieve 60/30/30, we need to have the best unit economics. We need to keep improving our ARPAC and also our margins, putting our capital to work wisely. And last, the Rule of 50, 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 asked that, but thanks for the question. Sorry, I see someone really -- okay. So the lessons learned are quite simple -- 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 60/30/30 was an ambitious goal. Also the same applies for Rule of 50. And when we talk about the commitment of the team, we need 2 things. First, we need a very talented team that we have, but also the incentives needed to be right. What we did at 60/30/30, I was able with the right incentives and with the support of HR to 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 Rule of 50 also will be achievable. And at the end of the day, we generate value for our shareholders.

Questions, Yuri here. Thank you, Yuri.

Congrats on the Investor Day. I have just a clarification regarding the new guidance, the 28% ROE. When we checked 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 60/30/30. 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 to income is 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, you are having higher provision on private payroll, but also if you can explain a little bit the difference in the time line. Also I think it's important for investors. Congrats again.

Thank you, Yuri. I'll take that one. So on the -- first, the Rule of 50 is built as we tried to explain, on top of the 60/30/30. But the way that we want to be questioned 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 -- the 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 AI that 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 that. For example, on employees I mentioned, assuming keeping them flat. We continue to compensate talent better and bring new talent and that has made it grow 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 payroll. 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 cruising 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 our 50 basis points of that, that is private payroll so if you compare it without private payroll is 5.5%, which is 50 basis points increase relative to before. That's roughly BRL 270 million to BRL 280 million of EBT cost. But when we add -- we compare that to additional revenue that, for example, only the credit cards has, 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 a delta of BRL 300 million per quarter, which is -- more than compensates a single quarter what that additional EBITDA. So in all, I'm adding more color on the asset quality, which has been a topic. We are quite happy with the evolution of the NIM and the risk-adjusted NIM. We're solving for risk-adjusted NIM. We mentioned this in the call a lot, it will still grow. So if you see the calendar year 2025 risk-adjusted NIM versus what we expect to have this year, even with the curve at the beginning, it will be 5% higher risk-adjusted NIM. And on top of that, we'll have a loan growth growing north of 25%. Therefore, revenues are going to be -- end up above 30%, which is what we expect for this year.

Thank you. Next, Tito.

Congrats to Joao, Xandre, Santi. 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 stay at 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%. Actually 2 slightly above and 1 slightly below, which are home equity, mortgages and our version of personal loans, which has mainly private payroll with a bit of public payroll as well. Those going forward, will grow closer to 30% now with some upside. In some cases, private payroll we don't know. Mortgages that's the dynamic with the incumbents stepping down because [indiscernible] is not growing. So therefore they're all competitive and there we can thrive 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 Alexandre mentioned -- and therefore, the growth of the NII, which is what matters the most, at least for modeling purposes will be closer to 35% when you put all that -- combine it together. Cost of risk, I mentioned, going to 6%. The extent, how long will it stay at 6%, we don't see. We think the year is going to end up probably better. We see the second and the third quarter as the toughest ones. Hopefully, then we can start seeing it 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 of 2026 versus the entire year of 2025 is going to be also above close to 5% cost of risk calendar year versus calendar year, which is positive for us.

I have another one online. This is for you, Xandre. 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 had for credit cards was of an engagement product. So when we think about profitability of it, it was -- if we got to neutrality, it would already be good. And as we evolved, 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 the fact that we had 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 9 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 interest earning 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%, nothing 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.

Thank you. Another question here from Kuri.

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 a lot of repricing capability. Does that just permanently leave 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 just a matter of time before the government starts regulating 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 secured 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, you would 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 Santi and Xandre. 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 lending portfolio and also a diversified lending portfolio. When you ask us about all 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 equity. 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 revenue upfront. But as Santi was exploring on his presentation, we want to have more of this sustainable lending portfolio moving forward. And as we could see here, I believe, on Xandre'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% ROE on a secured portfolio. And last but not least, we're talking about addressable market of trillions, BRL 2.7 trillion on that segment. So with all that combined, we can keep producing for our size, the returns that we want, close to 30%, very good disciplined NIMs towards our balance sheet and our P&L. So that's the overall vision, the overall strategy that we are putting behind Inter. Also connecting to data, you see that, as Xandre 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, a better risk reward compared to delinquency 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, Jorge, 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 with them multiple times and the design of the private payroll and now with the invoice discounting clearing house called [ duplicata escritural ] are precisely to shift away from those expensive products. So by design, we have an alignment. There have been some regulatory caps and [indiscernible] and private payroll is there on the horizon. Generally, we operate below the cap. So our cost advantages allow us to operate below them. We were below [indiscernible] in terms of private payroll, we'll 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 and the improvements that are coming. On interest rate, another point, we learned from the past when we show that ROE bridge of the 60/30/30, the famous closing page, the repricing was precisely that. Longer loans originated at rates -- at a rate environment will change dramatically. We are hedging the longer rates from fixed to float or from inflation to float, which ends up hedging that liability side as well on the Selic. So which is one of your points in your last report on monetization, which I take the opportunity to comment, we view the opportunity monetization on net ARPAC, which complicates the metric because others show ARPAC, we show both, since we're small we adapt to others. But net ARPAC shows that increasing monetization, isolating the interest rate environment as well. But credit penetration is right, Xandre, the lever to improve that a lot more and we have a 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, needless 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%-ish growth in that portfolio, maybe 25% this year given the macro that Santi said, but it's still a very good growth. And the future, as models improve, we could even see more of that. But as Joao mentioned also, we'll keep growing along with reshaping making this portfolio a profitable one, so yes.

Next question from Mario.

Very detailed. I'm going to ask, though, something that you didn't talk about, Joao, 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 and 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 our 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 USEND, a company specialized in remittance, remittance from U.S. to Brazil and from Brazil to U.S. What that indicates to us, 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 in U.S. a very strong foundation from a regulatory standpoint of view and also from product offering. Today, we have [ a global account, a checking account ] debit card, credit card, loyalty, gift cards, remittance, mortgage and a full broker-dealer offering. With that in place, we like to call this strategy inside out 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 Brazilians already using our product in Brazil. What was the adoption pace of it? Incredible. As I think we showed here, we have almost 6 million clients using our global account today. They are putting deposits in the United States, they are using our mortgage platform. They 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, Mario, we can have as an outcome retail clients, mostly Latin Americans and expatriates using our products here. So it's a very clear strategy around how we want to leverage on the foundation that we're building here in the U.S. And we believe that this is something unique. We don't see other players trying to compete in this arena. And at the end of the day, what do we put in place to help us to succeed again, the 3SA approach, the Super App approach and data, we can offer today for our Brazilians, [indiscernible] for Argentina and later to other geographies, a full experience in 1 single app with 1 single log-in with 1 single credentials. You just log in our account, you travel to U.S., 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 IPO. It's easy, two taps and you are there. This is the concept behind. And I do see that we're going to have a very successful go-to-market to other geographies as we did in Brazil.

Thank you, Joao. Next question, I think, it is from Leduc.

Thank you for the presentation, Santi. Very numerical so that helps a lot. Very good. Here on 50 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 upward 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 Marlo 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, Leduc for the question. I'm going to start and maybe Santi, 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. At least 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, Joao said we were in like about 0 ROE when we launched 60/30/30, and we built the capabilities. As Santi said, we learned from the past, we hedged our portfolio to guarantee the profitability and we're delivering the ROE already at the 15.5% level. We'll keep doing this. As Santi 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%. 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 30% 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 4966 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 aim for this 25% and many different sources of growth to come -- to bring revenues from in the fee side. Our AI that everybody talked about 7 is part of helping that. We have the context to bring clients these products and we'll keep growing every vertical. There are things coming up. So Joao talked 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 Rule of 50, Leduc.

So right, Leduc, before Santi 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 company into in the past 10 years. Look what you can imagine, what we can transform this company 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 at PIX, 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 produces yields. So we are not thinking about reducing the pace of growth, stop innovating, stop thinking about new projects, new markets, new geographies. This is actually the opposite of the spirit that we have at Inter. But the good news is having this self-sustainable business from a capital perspective, helps us to keep this vision alive despite of the macro. It doesn't matter if the cost of equity is low or high. We can fuel our own growth, our own vision, our own expectation. This is the most interesting about Inter. 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 50 to balance these 2 things, we will generate us more value. And we have room to grow. If you were a gigantic business, what's the upside? You are already at something big. You rather have whatever, 25%, 30% market share. In our case, the room to grow is really, really big. So that's where we're going to deploy our future earnings.

And on -- well, first, on the comment of the building blocks, we intentionally try to break it down so that when we have the discussions and the follow-ups, they then question whichever piece and then assign the execution risk or the certainty to each 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 at 36% calendar year loan growth when we were expecting 25% to 30%, hoping to be at the high end of the 30% and ended up being more as a consequence of private payroll and other 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 reference or regulatory reference capital it grows more proportionally with the ROTE than the ROE, which is higher that's another factor. Same as we have improved on the ALM front, also with the advisory of Marlos. 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 over Selic that are right type that will help extend also the maturity of the funding, to the point of Jorge, which has also helped. So we are making progress there, and we still have a lot more to do in terms of optimizing RWA strategically through some opportunities we have, Selic being one. So that's an evolution. Then buybacks, dividends that's a Board decision eventually. But in the meantime, the management is trying to seize those opportunities to operate more efficiently.

Thank you, Santi. Next question, I think is from Neha.

You mentioned the 60/30/30 remains the North Star for the company. On the Rule of 50, 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 Inter's position with as you try to move upmarket or be a little bit above the mass market segment. So how do you see Inter's position in that segment? And lastly, on the credit card reshaping 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 differentiate pricing, but how about controlling risk, improving collection 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 Xandre will take the third question.

I will take the easy one. So in terms of Rule of 50 is net revenues plus ROE. Net revenues, we see growing north of 30%. It's a continuation of what we had. 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 NIM, goes from 9% to something very close to 10%, 2025 versus 2026. So there, we have around 10% more of NII coming a bit of operational leverage as well, continuing with the curve. We are actually 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 50, which is 10% more than the 45%, 46% that we operated 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. With our cost advantages and with our clients still having very long credit per active client. It's a big -- we have a big opportunity to monetize them and drive the continuation of that revenue growth.

So Neha, on that distinction between secured and unsecured, it's actually a very good question because what we have been seeing in Brazil for the past 20 years or so is that despite of who is in charge, which government is in 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 lending in Brazil, which today is about BRL 700 billion to BRL 800 billion portfolio. They put a very good legal framework, a good way for you to pledge your income to collect it and it skyrocketed. And today, on the private -- on the payroll lending, you have most of the affordable clients using it than the high income. Fast forward, and we have, for instance, FGTS that started a few years ago and now private payroll lending. These 2 products also connected with the mass market, not with the high income. So when we think that Inter has millions and millions of clients and we are not focused toward the high income segments, 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 we see that we have, as Santi mentioned, the key advantage of cost of funding and cost to distribute 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 on keep growing 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 unsecured, 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 will yield a very -- a higher than typical market yielding 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 one 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 AI. In the underwriting product 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 the spaghetti 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 GenAI 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, Xandre. I have one that came on line for you, Santi. You showed in the ROE bridge 2 to 3 percentage points, I assume, of growth increase 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 I tried to mention before. The evolution that we had in the ROE, in the ROA and the ROTE is 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 NIM expanding close to 10%. Risk-adjusted NIM growing 5%, more operational leverage, and we will be positioned to start the 2027 year, actually in a position of strength in all of those fronts. And the consensus, we don't give guidance, but the consensus is around 100 or so and 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 rate is BRL 1.6 billion. And on top of that, we have the continuous improvement quarter after quarter.

We have time for one more question, 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 in NII where are we versus where we should be over time, like...

Unit economics and -- so the -- first, it's a product that's in transition. As I mentioned, it's rough around the edges, 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 risk we have to do at the beginning and the expenses that it has. Therefore, the cohorts that were originated from March when the product started up until October already [indiscernible] and then the other ones are not. We are able to -- and I don't want to get into the business, I want to accelerate to several other initiatives. So the cohorts -- the more recent cohorts are bigger, right, WhatsApp distribution and so on, which is an investment that we're intentionally doing. I'll pass it to Xandre before I step on the business side.

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 as the portfolio matures in size -- it's going to be more just profit. But I hope it's a problem that will sustain 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 [indiscernible] ? As Santi mentioned, the government is doing the best they can to make sure that all these small nuance 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. You do have some issues. But we are very constructive on this portfolio. And I wish we could have more of these new products available for Inter -- for instance, sorry. With private payroll lending we were able to reactivate, as we like to say, 20% of the clients that were inactive at Inter. So this return to Inter because they were applying for a private payroll lending. So when you think about cross-sell, upsell, the ROE perspective on a steady running base without the issues on collection in place. It's really a very good portfolio, and we are attacking it as Xandre mentioned.

What are the odds -- I was asking this question because mathematically there is going to be a quarter or 2 quarters with a profitability above that product is going to step up significantly based on the duration of [indiscernible]?

It's already out of the water, and it's picking up as the older cohorts wait 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 growing more of the loan book. because we're growing more the loan book.

Thank you for your questions. In respect of time, we'll end now, but we invite you to stay for lunch and mingle with the team. Thank you, Santi, Joao and Xandre, and hope you have enjoyed.