Brazilian Fintech Inter&Co Reports Robust Q2 Earnings Fueled by Credit Demand
Inter&Co Reports Impressive Q2 Growth and Record-High Profitability
Inter&Co, a leading Brazilian fintech, has announced strong financial results for Q2 2025, with a 53% jump in net income to $57.8 million and a record-high return on equity of 13.9%. The company's growth strategy in the private payroll loans sector has played a significant role in this success.
The quarter saw Inter&Co's revenue rise by 9%, while expenses increased by 5%. Despite the growth, the company's efficiency ratio improved to 47.1%, indicating efficiency gains. This improvement is a testament to Inter&Co's focus on operational efficiency and cost management.
Inter&Co's loan growth was driven largely by private-sector payroll loans, a sector that the company entered after Brazil opened the market in March 2025. These loans, backed by automatic salary deductions, are typically lower-risk, making them attractive to both borrowers and lenders. As a result, Inter&Co's private payroll loan book grew to R$730 million by June 2025, representing a 1.6% foothold in the market.
The growth in Inter&Co's loan portfolio outpaced the market, increasing by 8% from Q1 and 22% year-over-year. This rapid expansion came even as many competitors pulled back, demonstrating Inter&Co's aggressive stance in meeting growing credit demand without a significant rise in defaults. The company's non-performing loans remained steady at 4.6%, and its coverage ratio was raised to 143%.
Inter&Co's success in the private payroll loans sector is rooted in its multi-pronged growth strategy. The company operates a comprehensive financial super app, offering banking, credit, mortgages, investments, and cross-border tools. This integrated platform strengthens client engagement and cross-selling opportunities, deepening relationships with over 40 million clients.
In addition to its financial super app model, Inter&Co is deeply focusing on unsecured credit products. The company's "My Credit Journey" initiative guides clients to improve their credit scores, enabling sustainable credit relationships, reducing risk, and fostering long-term loyalty.
Inter&Co added 1.1 million new active users in Q2 2025, bringing its total client base to over 40 million. The surge in loan demand and Inter&Co's willingness to meet it contributed to the company's growth.
Analysts at BTG Pactual and Citi have cited strong fundamentals and a valuation that still trades at a discount as reasons for Inter&Co's broader business expansion. The fintech, listed on Nasdaq, continues to innovate, deliver client-centric solutions, and execute operationally, positioning itself for ongoing success in the Brazilian fintech market.
[1] Inter&Co Q2 2025 Earnings Release [2] Inter&Co 2025 Q2 Investor Presentation [3] Inter&Co Press Release: "My Credit Journey" Initiative Launched in Q2 2025
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