Brazilian Inter&Co's second-quarter profit jumps as user base grows

By Kylie Madry

(Reuters) - Brazilian digital bank Inter&Co reported on Wednesday that its net income in the second quarter more than tripled, helped by a larger customer base and larger return on equity.

Inter&Co's profit rose to 223 million reais ($39.42 million) in the quarter, compared with 64 million reais in the same period last year.

The firm's return on equity (ROE) - a measure of financial performance - topped double-digits for the first time ever, hitting 10.4%, and up from an ROE of 3.6% in the second quarter of 2023.

"Our combination of growth and profitability is propelling us to new heights," CEO Joao Vitor Menin said in a statement. "The execution of our 60/30/30 plan continues at full speed."

Inter&Co has targeted 60 million clients, a 30% ROE and a 30% efficiency ratio by 2027.

Inter&Co reported more than 33 million clients at the end of the quarter, up from just under 28 million a year earlier. Of the 33 million, just over 55% were considered active clients.

The company also said that 3.3 million clients hold a U.S. dollar-denominated account, which Inter&Co calls a global account. Menin told Reuters in June that if growth rates held up, around 6 million of its total target clients could hold global accounts by 2027.

The bank's total payment volume grew 47% year-over-year to 290 billion reais.

($1 = 5.6567 reais)

(Reporting by Kylie Madry; Editing by Leslie Adler)

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