Earnings Conference Call First of all, some instructions. This call is also available in Portuguese. To access it, press the globe icon on the lower right side of your Zoom screen, then select the Portuguese room. Please be advised that all participants will be in listen-only mode and that the conference is being recorded. You may submit online questions at any time today using the Q&A box on the webcast. A replay will be available at the company's IR website. Here with me today is João Vitor Menin, our CEO, Alexandre Riccio, our COO, Francisco Santos, our CGO, and Santiago Stel, our CFO. João will start sharing the strategic overview. João, please go ahead.

Thank you very much, Rafa. Good morning, everyone. Thanks for joining us again to discuss our third quarter results. First of all, before we go into any page, I want to leave you with one important message. I have great confidence in the model we have been building at Inter for a while. I call it the Bantec Model, and it works. Today, I will share how we built our story and how it gives us the strength to look at the future with excitement. And to explain where this company comes from, I would like to start at the origin. This is how we introduced Inter to the market back in 2018, when we did our IPO. I still remember presenting this page on the roadshow and how much it meant to all of us. At the time, the market saw traditional banks trying to become digital, and fintechs trying to become a bank. And Inter was in the intersection of it. That intersection was never a compromise. It was our conviction, and it is one of our biggest strengths to date. We were born from it, but also powered by tech. As a licensed bank, we offer the full set of banking products, such as credit, deposits, payments, investments, and insurance. As a tech company, we have speed, we run asset light, no branch network, distribution at fintech cost. We call this combination the Bantec model I told you before. And it still holds true today, maybe more than ever. I'm sure you have heard this story before. So why am I bringing it up again today? Because this design is what makes Inter resilient in any environment. We are not stuck in one product or in one specific credit cycle. The BUN Tech module creates something strong, and it is built for any cycle, for any moment. Let me explore it a bit further. First, our balance sheet portals. 70% of our loan book is secured, and our cost of funding is consistently lower than our peers. Digital and traditional banks. that give us resilience when the environment gets tougher and room to keep growing when it gets better. Second, regulation. The regulator is moving towards the book we have already built, secured credits, such as private payroll, real estate, or invoice discount. We are already where the market is heading. Third, the competitive landscape. In a crowded market of banks and fintechs, clients keep choosing interest. We are very proud that today, We have 90% of all the PIX transactions in Brazil. Our daily logins just hit a new record this month. We stand out because clients find everything in one place and use it every day. We call this the strong combination of serving clients with convenience, savings and trust. The fourth reason is technology. AI is already part of how we run Inter. And we are building on top of strong foundations, especially our data vaults. And most importantly, we have the DNA to innovate. If you ask me, how can Inter innovate so much? I would answer you, it's all about being bold. We don't adapt the future, we design it. And we have a track record of doing so. The first digital bank in Brazil back in 2015. The first bank to migrate to cloud in 2017. And also the first super app in the Americas in 2020. Every time, the same choice. To lead, to disrupt, And every time we have been building that with the best partners. Today, we are making the same choice with the next technological wave, AI. It is not a plan. It's a red run. And it's a great opportunity for Inter again. And we are already seizing it. Not only we have the better models and more efficiency in our teams, But we are going even further. As I mentioned at our honors days, we have the perfect combination of our data vault, our 3SA approach, and our agentic engine called 7. The same way we have launched hundreds of versions of our super app, I'm sure we will launch hundreds of versions of 7 ahead. Our ambition is for 7 to become the core of our client experience. And I'm sure that now we're just scratching the surface. As we did before on the previous technological waves, again, we're now parting with the best. We just recently connected with SpaceX AI. And they are now our strategic partner for us in the AI world. But AI does not work alone. It's fed by data. And data comes from the relationship with our clients. That is where the magic begins. And that's why our model shines. The Bantech approach created something bigger. A flywheel of learning effects. Now even more. Empowered by AI. Let me explain how our flywheel works. It starts with the relationship. Customers come to Inter first. And they come most often. The more of their financial life sits with us, the more data we have. And more they trust us. With more data comes intelligence. Every decision and its outcome feed our data vault. And AI turns that data into more personalized experience, better credit models, and faster operations. With that intelligence, our capabilities grow. The client is better served, uses more products with us, and brings more data to the vault. That is what makes each loop larger. And the flywheel restarts. More relationship, more data, more learning, each time faster and larger. When this flywheel runs, Inter captures continuous growth and sustainable profitability. And this is not theory. It's already showing up in our numbers. For instance, this quarter, our ARPAC reached its highest level ever. Santi will walk you through it later today. But the message is quite simple. The more the flywheel turns, the more value each client generates, and the more data flows into our data vault. This is what we call the learning effect. But technology alone does not turn the flywheel. People do. To lead Inter into the future, we are evolving our structure into two clear focuses, growth and operational excellence. We are welcoming Francisco Santos as our Chief Growth Officer. He will be focused on growth and monetization. Francisco will use the flywheel I just described to grow not only our client base, but also our monetization, with our data vault and our learning effects supporting that journey. Shanji, who you might know already, steps in as our COO, focused on operational excellence and on improving our credit and collection capabilities. He will turn the intelligence of our data vault and the power of AI into even smarter credit decisions and lighter operations. Also, Santi continues as our CFO, focused on profitability and capital allocation, turning growth into returns with discipline. Think about this flywheel. Francisco makes every turn bigger. Xande makes every turn run better, and Santiago makes sure each turn is profitable. And, as I said, it's people who turn the flywheel. Together with these leaders, our 4,000 employees do it every day, guided by our strong culture. With the right team and the right culture, I'm sure we will keep building Inter ahead. And now, it's my pleasure to invite Francisco to share a few words with you. He will share his first impressions of Inter. Francisco, welcome and the floor is yours.

Thank you, João. It's a pleasure to be here. Inter has a remarkable journey and I've admired what this company has built for a long time. I'm finishing my second week at Inter. It's been great to see how customers choose Inter and actively engage with us. We have a customer base that most companies would love to have. And I see a tremendous potential to deepen relationships and increase monetization. Data, cloud and AI are not side projects here. They are embedded in how the company operates, allowing us to move faster and continuously learn and improve. And above all, I see the team highly motivated to achieve more and willing to do things differently. So my initial focus is on those three areas. First, retail banking. We want to enhance primary banking relationships and increase monetization. That means more customers choosing Inter as their main bank and generating more value for each relationship. Second, SMBs. I see significant opportunities here. Business customers already bring their deposits to Inter. The next step is to deepen those relationships through products, leveraging data and technology capabilities that have worked so well in retail. To help lead this effort, we brought Frederico Alves to Inter. He brings over 20 years of experience in payment and banking, having led products and businesses at Itaú and Fiserv, He is a great addition to the team. Last but not least, looking ahead, I want to bring fresh perspectives and work alongside the team to help shape the next chapter of Inter's growth. I am very grateful for the warm welcome I received and I am excited to be part of this team. I am looking forward to work closely with Xande because growth and operational excellence need to go hand in hand. Thanks, Xande, for receiving me. Thanks, Joao. Xande, over to you.

Thank you, Francisco. I'm looking forward to working side by side with you. Hello everyone! I'm very excited about this new chapter at Inter, and it is an honor to lead operations at such an important moment for the company. As João said, my mandate is to turn the intelligence of our data vault and the power of AI into even smarter credit decisions and lighter operations. In other words, Excellence in credit underwriting and AI-powered operations at scale. It rests on three focuses. First, credit. We're taking our next-gen foundation models to full scale, moving to one single model per client, so every decision is smarter and more consistent, using the data that our client relationships generate. Second, collections. We want to reach full maturity in collection execution and products, rebuilding our processes with GenAI and automation. Third, operations. We're scaling up the transformation of our processes using agentic AI, automating steps, and simplifying the experience for our clients. João showed that AI is already running at Inter. Our job is to take it to the core of our operations. The logic is the same in all three. Use technology to remove what does not add value and give our teams time for what does. That makes us more efficient, and efficiency is what turns operational excellence into financial results. Lower cost to serve, better credit decisions, and more profitable growth. As Francisco said, growth and operational excellence Have to move together. And you see this in the numbers. With that, I will hand it over to Santi who will take you through our financial performance of the quarter.

Thank you. Good morning, everyone. A public welcome here to Francisco. Really great to have you in the team. And Xande, it is great to have you focused on credit underwriting and operational excellence as they are key drivers to execute our ambitions. Now, let me walk you through the financial performance of the quarter. Starting on revenue, on a net basis we reached 2.7 billion reais, up 26% year on year, and up 3% quarter on quarter. This is a run rate net revenue of 10.9 billion reais, or gross of nearly 20 billion reais, a very substantial figure that shows the materiality of our performance. Net interest income was 2.1 billion reais, up 30% year on year, representing 78% of our revenue. Fee income was 611 million reais, up 13%, in line with the growth of our active client base. What matters is that these results show that our flywheel is working very well. Each quarter we have a larger client base, a fast growing loan portfolio, and a strong set of products and services to complement our revenue base. Now let me show you how this looks on a per client basis. We reached 46.8 million total clients, up 13% year on year, with more than 27 million of them being active. On monetization of these clients, we are making great progress quarter after quarter. Our gross ARPAC reached 59.7 GIs per month, up 5% year on year, establishing a new record. Net ARPAC after the deduction of interest expense was 35.6 GIs, up 7%, also a new record. Growing revenue higher than client growth is a key component of our strategy, especially considering the sizable existing client base we have already established. On the cost side, our cost to serve was 13.3 GIs per month, a flattish figure when you look at the prior quarters. This gap between ARPAC and cost to serve is our margin per active client, which reached 22.3 reais per month, establishing another quarter of record. Two factors are behind this performance. The first, deeper engagement and higher credit penetration as our flywheel gets faster, bigger and better, as Joao mentioned earlier. And the second, our newer cohorts are starting stronger. They begin with an ARPAC that is 10 reais greater than the one of the prior quarters. This is how client growth turns into returns and it is in the NIMH where we can see this. Our NIMH 2.0 reached 9.96% this quarter, staying very close to the 10% landmark figure. Let me walk you through two key points that played in this quarter. The first were 70 basis points higher year on year, with an average of 15 basis points greater on a quarter-on-quarter basis. This despite the increase in our leverage, so on a same capital structure basis, the need improvement is even stronger. Second, as we anticipated in our last earnings call, this quarter was marked by lower inflation, which impacted NII. If we were to normalize for the inflation effect, we also grew 10 to 15 basis points per quarter on average since the fourth quarter of 2025. That reflects the evolution of mix and pricing, with cards reshaping and private payroll being the main drivers. All of this to say, the roughly 40 basis points of NIM expansion that we expected to have in this calendar year 2026 is very well on track, and we expect to close the year with a NIM at around 10%, as we have been mentioning. On a risk-adjusted basis, We improved 12 basis points year-on-year despite the evolution of cost of risk. This margin expansion is built upon an ROE-driven credit strategy that we have been executing thoroughly year after year. Our expanded loan portfolio reached 58.1 billion reais, up 25% year-on-year and up 5% quarter-on-quarter. Our strategy here is clear. A credit mix that is sustainable for the client across the cycle, making it a real win-win value proposition. Today around 70% of the book has some type of guarantee and this matter especially in this current environment with high household leverage and high interest rates. Our growth is driven by this type of products with mortgages and private payroll being the main ones. Real estate loans reached 19.9 billion reais up 37% year on year and is now the largest portfolio of Product in our mix, representing 34% of the total. This is where expertise shows the most, the best experience and the least bureaucracy in the market to get these loans. That means an efficient operation, low delinquency, and a very profitable product. On private payroll, we reached 3.1 billion reais, two and a half times greater than what we had a year ago. We'll cover private payroll in depth in the following page. On cards, we grew 18% as we deliberately reshaped the book towards installments with interest income, which is now 37% up. Personal loans are almost flat, with FGTS running off, and our cautioned approach on unsecured credit lines such as buy now, pay later and overdraft. Overall, we are growing well above the credit market in Brazil, which is growing on a high single-digit basis. We're managing credit cycle with discipline. Let me take you through this page with care, starting with MPL and then MPL and stage three formations. MPL over 90 days reached 5.3% on the expanded portfolio, up 29 basis points. The increase came mainly from our portfolio mix into products that I will cover on a dedicated pages right after this one. Desenrola also had an effect of 14 basis points in this KPI. NPL from 90 to 15 days, which measures the short-term delinquency, decreased to 4.2% from 4.5% in the prior quarter and is an early sign that delinquency is improving. NPL formation, which is on the bottom left of this page, decreased from 1.83% last quarter to 1.74% this one. This improvement came mainly from private payroll, held by the automatic relinkage, and from credit cards. This is consistent with the early delinquency we just saw. Fewer and newer loans are entering delinquency. I will detail later this point. On stage 3 formation, on the bottom right of the page, it was 2.10% up from 2.12% in the prior quarter and is impacted by the Desenrola program. The program started in May and it targeted credit card debt and unsecured personal loans. Since we do not offer unsecured personal loans, for us it was the credit card, the one that entered in this program. At the end of September, we had renegotiated a little more than 160 million reais. This added close to 20 basis points of Stage 3 formation because it moved contracts that were fully written off into Stage 3. Excluding the program, the Stage 3 formation would have been flat at 1.9%, both in second and third quarter. Now, on the cost of risk and coverage, All-in cost of risk was 5.9% this quarter, pretty much in line with the prior one and consistent with the 6% figure that we have been signaling as our new steady state. As we said, two internal decisions explain most of the increase versus last year, the growth of private payroll to the reshaping of credit cards. Excluding private payroll, cost of risk was 5.3%. Coverage ratio, on the other hand, increased slightly from 134 to 135%. Our provisions cover the delinquent balance with a comfortable margin. Here we added a dedicated page for private payroll so we can deep dive in it. One year ago, our loan portfolio of this product was 1.3 billion and now is 3.1 billion reais. Our active clients went from 282,000 to 759,000 clients. As I mentioned, this has been the product that drove delinquency up, but most of the missed payments happen when an employee changes employer, and we have two levers to solve this. The first, the automatic relinkage. Around 30% of the delinquent balance has already been relinked, so we can follow the client to the new employer and keep collecting. And second, the private payroll insurance with about 40% penetration. The effect is showing in asset quality. NPL formation in private payroll fell to 3.2% in the quarter from 4.9% in the prior one. State 3 formation was 5.8% up from 4.8% because our state transfer policy keeps loans under observation before they move across stages. So it does not mean new delinquency and NPL formation confirms that. On the right hand side you can see the J curve of this product with a break even on month 3 and then a positive return profile. Now moving on to funding, our total funding reached 81 billion reais, up 19% year on year and 5% quarter on quarter. It is a high growth and diversified funding franchise. Demand deposits reached 20.7 billion, up 13% year on year. Time deposits reached 37 billion, up 20% year on year. And securities issued reached 17.8 billion reais, up 45%, as we keep diversifying our sources beyond just deposits. Deposits per active client, a key metric, reached 2.1 billion reais, a new high, up 3% year on year. Our loans to deposit ratio is 69% up from 65% a year ago, which means that we are putting our excess liquidity to work in the credit book. Let me show you how this follows in terms of funding costs. Our cost of funding, as we have mentioned many times, is one of our greatest competitive advantages. This quarter we reached 70% of CDI. There were two factors playing out. The first one was seasonality. As you can see in the chart, the third quarter goes up because the number of business days, 65 this quarter, is higher than the 61 in the second quarter. Normalized by business days, our cost of funding would have been 68% in line with the prior quarters. The second factor is SELIC and therefore the mix of our deposits. With the SELIC still high, our deposit needs are training towards higher yielding deposits, pushing the funding cost high. That explains most of the difference versus last year. As we have said many times, our cost of funding remains one of our key competitive advantages. We have kept expenses controlled while we keep scaling the business. And this is one of the advantages of the digital banking model that we have built. Total expenses, which little over a billion reais, up 3% quarter on quarter. There are a few drivers of this performance. The first, administrative expenses, which grew 2% this quarter, or 17% on a yearly basis, driven by branding and technology costs. Other lines benefited from scale, which balanced the overall evolution. Second was personal expenses, which grew 4% in the quarter and only 10% in the year, with average headcount staying roughly flat. Third, depreciation and amortization, which grew 6% in the quarter and 38% in the year because of the amortization of prior investments in technology infrastructure and our super app. Looking ahead, we expect a fourth quarter with seasonally higher expenses, but a 2027 with an important gain in operational leverage as we collect the benefits of our business model. Jumping to operational leverage, our efficiency ratio reached 41.9%, more than three percentage points better than a year ago. Since first quarter of 2023, our revenue has grown 2.7 times while personal administrative expenses grew 1.8 times. This is operational leverage in action. In three and a half years, our efficiency ratio went from 62% to 42%. The pace over the quarter was smaller, 15 basis points, because revenue growth was more moderated, in part because of the inflation impact that I commented before. But the direction is clear, and there is still room to improve, as we collect more benefits from the new investments. And jumping into profitability, this page, as we mentioned many times, gets us very proud. We delivered the 14th consecutive quarter of net income growth. 14th consecutive quarter of net income growth, reaching 425 million reais this quarter, up 26% relative to the 336 million of the third quarter of last year. Annualized ROE reached 15.8%, up 160 basis points relative to a year ago. This quarter was marginally more timid than the prior one because of inflation and also because the average equity, meaning the denominator in the ROE formula, increased due to the positive mark-to-market insecurities. But overall, this page shows a clear trend that makes us very proud and we expect to continue delivering. When we compare our profitability in the context of the banking industry, we can see that on an ROE and an ROA basis. On the top, on ROE, we are the 12th in the ranking when we look at the first semester of the banking industry. But more importantly, on ROA, which adjusts for the capital structure that is very different across banks, we are in the top third of the industry. When we factor the fact that we are growing and investing heavily, Being the top third of the industry is something that makes us very proud considering the size that we have, which is still a lot lower than what we expect as we continue being a disruptor and a fast-growth player in the industry. Last quarter, we mentioned that we were capital neutral. What we can see in this quarter is an even stronger pattern. Our CT1 ratio reached 12.2% at Banco Inter level, up 70 basis points from the 11.5% that we had in the prior quarter. Banco Inter profits generated 100 basis points of capital and the growth in trade and operational risk consumed 70 basis points. So the operational result added 30 net basis points of capital, while our loan portfolio grew 5% this quarter. As we can see in the middle chart, we have significant excess capital ready to be deployed in our business. This is the result of our corporate structure that is highly efficient. With that said, I'll pass it back to Joao for his closing remarks. Thank you.

Thank you, Sanchi, Francisco, and Shanjin. Hearing your perspectives on Inter and also the opportunities ahead and how the results were on this quarter makes me even more excited about our future. Now I would like to go back to what matters most from this quarter. Here are four takeaways that I would like to reinforce. First, credit growth. We grew our expanded credit portfolio 25%, almost 3x the market. That was driven by our strongest products, real estate, private payroll and cards. That's the Bantec in credit, banking products with the power of technology. Second, Asset Quality Our cost of risk is at 5.9%, flat versus the last quarter, even with the market deteriorating further. This is the balance sheet we built for any cycle, with 70% of our book secured. It is not luck, it is design. Third, our names. We are around 10%, 70 basis points above a year ago, even with the impact of IPCA. This is our data vault empowered by AI turning into even smarter pricing and better credit decisions. And last, efficiency. Our efficiency ratio this quarter hit 41.9%. 322 base points better than last year with operating leverage in action. So, growth, asset quality, margins and efficiency all moving together. This is a flywheel in motion and a model built for any cycle. I'm sure that the best for Inter is yet to come. Thank you very much.

Now we open the Q&A session. Our first question is from Fernanda Sayo from JP Morgan. Fernanda, your mic is open. Please go ahead.

Thank you for the opportunity to ask questions. My question is about private payroll. So since the operational improvements went live in September, how are newer cohorts behaving compared to older ones? And also, how is the cost of risk trending at the margin? And just the last one, if you could also comment on the impact you're seeing from the bundled insurance. Thank you.

Hi, Fernanda. This is Shant speaking. Thank you for your question. So I'll take a step back on the private payroll loans. And the first point is about the excitement with the product. So we remain excited with the future prospects for the product, the profitability, and see it as strategic for Inter, aligned with our distribution channels. So this is the first message. As far as the processes goes, we know and we've been saying in the earnings calls since last year that it would be a journey and it has been a journey. So maybe a little bit slower than what everybody initially imagined. But in the last quarter, reality is that we did have a material improvement with the automatic relinkage. Having said that, I'd say that we have three very important things that happened with the product in this last quarter. So the first one, again, is relinkage. The relinkage helped us both on NPLs and on cost of risk. Roughly 2% improvements on NPLs and 1% improvement in cost of risk. As we move along, we're gonna see these improvements mature more. That's our expectation. The second point is insurance. as we mentioned in the last call we were starting to do the insurances now we're at about 40 penetration and it's also a process that matures as we go and which links to your question on cohorts our expectation is that the newer cohorts are going to start behaving Thank you very much. And the thing about pricing is it leads to the production. So the volume of underwriting for us is a lot more an output than an input. So we drive it through ROE. We drive it through observing how the behavior of the delinquency is. And as we adjust, as we make adjustments in pricing, we see sensitivity in underwriting volume and we've been laser focused on guaranteeing that we grow at a steady pace. Thank you, Fernanda.

Thank you. Our next question is from Tito Labarta. Tito, your mic is open. Please go ahead.

Okay, thanks, Rafa. Good morning, everyone. Thank you for the call and taking my question. My question is on loan growth. You're thinking about 2027 and concerns about macro, right? On credit cards, you mentioned you're kind of deliberately slowing down a little bit because of that, although you also mentioned that credit card MPLs are maybe nearing their peak. So... And now with private payroll, maybe that can kind of help to grow. But just how should we think about loan growth, given the challenging macro scenario? Will you focus primarily on the secure lines? Can you grow unsecured if credit card NPLs, as you mentioned, are peaking? Or is there more risk there that you will continue to be cautious there? Thank you.

Tito, João Vitor speaking. Thank you for your question. Before I answer you about how we see the portfolio growing on 2027, it's important just to connect with my speech earlier today on the call. I'm super... Happy that we have been, since 2015, when we launched the first digital bank in Brazil, we have been building our capabilities to face a tougher macro scenario as we are living today. So we have, again, the right funding in place. We have the number of clients, a lot of clients also in place. We have a secure portfolio that we have been building consistently for the past 10 years. And we have a better credit and collection capability ahead. We acknowledge that the macro is not in the best. It's not at the best moment at all. But considering that we see an edge from our competitors, we see an edge on the funding, we see that the regulator is moving toward the secured portfolio, and super important, Tito, we still have a modest credit portfolio size. In Brazil, only, let's say, only 60 billion reais. With that in place, we are comfortable on growing between 20% to 25% going forward, which is, I'd say, almost 2.5 tracks the market. I think that everyone that follows Inter for a while knows that we have always been cautious and prudent with credit underwriting, mostly on the unsecured. But again, thinking about the opportunities that we still have on cards, private payroll, mortgage, home equity, and SMEs, I do see that 20% to 25% range quite feasible and prudent. Last, it's about team. I mean, we're doing the best we can to be able to grow consistently without jeopardizing our balance sheet, our economics. As I mentioned, we have now, in my view, a dream team here to help us on that. So Francisco just joined us, 100% focused on client growth and client monetization. He might add later about few opportunities that we have. Also, Shanji 100% focus on operational excellence and credit and underwriting capabilities. With all that in place, Tito, despite of the macro, I see a great chance for Inter to differentiate against our competitors. So the message is prudent but excited with the pace of growth ahead.

Okay, very helpful. Joao Vitor, thank you. Maybe just one follow up, I guess, by segment, should we expect the secured lending to grow faster? How do you think about unsecured lending in 27?

Tito, I mean, we have been answering these questions for many, many quarters already. People thought that we were going to grow super fast on the credit card once we, let's say, cracked the code on the right in the collection. The true story is we still see a lot of opportunities on the security portfolio. Going back to the size of our portfolio, our market share at PIX is at 9%. But our market share at private payroll, public payroll, SMEs, collateralized by receivables, home equity, mortgage is still small in a sense. So I do see a lot of opportunities for us to keep growing strongly on the secured portfolio. Again, a good opportunity on cards as well, as Xande was mentioning, better collections, better underwriting. That said, overall, pretty much this 7%-ish ratio between secured and unsecured should keep this trend, I'd say, ahead for at least the next, I'd say, one or two years. So that's how I foresee the balance between secured and unsecured ahead.

Okay, perfect. Thank you very much, Joao Vitor.

Our next question is from Thiago Batista. Thiago, please go ahead.

Hello. Hi, João, Alexandre, Francisco, Vicente, Rafa. Hi, everyone. I have a follow up on Tito's questions about the long growth next year, but focus on the asset quality. Do you believe it's possible to say already that we are achieving to a kind of peak in this asset quality cycle or not yet? And then my question would be on the capital of Inter. So how is the best way to look and to think about Inter's capital position? When I look for the tier one ratio of Inter and if I include the 2.1 billion reais that you have in the holding company, Tier 1 would be almost 18%. And you show in the slide that you are almost in a kind of stabilizing the pace of consumption of the capital. In my question, probably you consume a little bit. But how we can think about capital over time of Inter? Is possible to see higher payout ratio, buyback, or don't believe that we are already in this point of discuss a kind of higher capital distribution?

Yeah, good morning. I'll take that one here. Santiago speaking. So on asset quality, we're very proud of what we're showing this quarter. There are many metrics in the presentation that you can see that it's pointing to an improvement. Early delinquency, 15 to 90 day. NPR Formation. This is the result of a very strong work that we have been doing on several fronts and maybe on the most iconic portfolio, which is credit cards and private payroll, which have been driving NIM growth. But we want to, as you know, drive risk adjusted NIM growth. Rafaela de Oliveira Vitoria de Oliveira and the credit side as well on UX, on collection, and so on. So when we see that, we get to a cost of risk that we reported, 5.9%, same number as prior quarter, or actually three basis points lower. And that's consistent with what we have been signaling, which is at around 6% cost of risk. We have Desenrola playing out also. That benefited us in the second and third quarter. Rafaela de Oliveira Vitoria de Souza Rafaela de Oliveira Vitoria Rafaela de Oliveira The total number is around 19.5% of the total capital consolidated. What will we do with that excess capital? Our primary role would be to deploy it in the business. That's the reason why we have it. We would like to do it with caution, as Joao mentioned. And then the shareholders will decide the policy as they see fit. But the primary goal of excess capital is to be deployed in the business to grow it through time. Thanks a lot, Santiago.

Very clear.

Our next question is from Pedro Leduc. Pedro, please go ahead.

Hi, everybody. Thanks for the call, question, and congrats on the numbers. A bit more on credit cards, please. For a while, you've been flagging that you've been de-risking probably since late last year, early this year. Rafaela de Oliveira Vitoria de Oliveira How are you comfortable you are with the mix of this with an interest bearing still, you know, growing a bit faster? And yeah, just give us an overview how to think about the product within this journey and in the macro context. Thank you.

Hi, Leduc. This is Xande speaking. So, let's go. There are a few steps here to cover when we look at the credit cards. The first point that we like what we're seeing internally is we've been able to use everything that we've developed in credit to drive the delinquency. So, this is very important to us. We know that Thank you very much. What we're discussing in our management meetings is when is the time to re-accelerate. And for that, obviously we have to observe macro and see what are the reactions. Typically, the end of the year is not the best time to open credit in credit cards. So if I was to ask when is time to accelerate, I would look more into the beginning of next year than in the end of this year in this fourth quarter, given both macro and the cyclical delinquency that we observe every year in this time of the year. Now, I think it's important to highlight also all the focus that we're going to give Thank you for watching! that allowed us to get to the 16, 17 billion credit card portfolio. So this is a structural message. That's the first point, a lot of focus. And where does it go? And when does it go? So the long-term view is to have, not long, but the 2027 end of year view is to have the foundation models operational, both for individuals And for business accounts, these foundation models are going to allow us to underwrite better, so sorting better through the client base to approve more credit card limits. Again, for individuals and for businesses, these are generic models, so they're going to be able to help us improve on collections, help us improve on propensity models for cross-selling, AMLs. So there is a lot to come as we move along. And along with that, we're going to keep focusing on three points, which are like controlling, optimizing and scaling. The controlling part is what I began talking about, optimizing something that we're doing and scaling. The scaling is what we expect to be able to do more next year. And I'll say that given these model improvements, we should be able to resume growth even in a deteriorated macro if that happens. So we want to be ready to grow regardless of the macro environment. Thanks, Leduc.

Very useful, Shonji. Thank you.

Our next question is from Gustavo Schroding Gustavo, please go ahead

Hi guys, good morning everybody and thanks for taking my question. So I'd like to ask your help to understand or to reconcile some things here because it was indeed a very good border, especially when we analyzed the fundamentals, right? So loan growth stood at 25%, so we saw improvement in the efficiency ratio. Rafaela de Oliveira Net income grew only 1% quarter-on-quarter, which is compared to previous quarters. There was a deceleration in this evolution. Margin per active customer is also almost stable quarter-on-quarter. So I'd like to understand what is your diagnostic regarding the quarter? Because, as I said, we saw good fundamentals, good trends. But when we analyzed the bottom line and also the margin per active customer, there was some, let's say, stabilization. I wonder if you could help us to reconcile and to understand what we are missing in the quarter and this disconnection between the fundamentals and the numbers perceived. Thank you.

Gustavo Santiago here. I'll take that one. Thank you for the question. We agree on the fundamentals. I would say there are three things that we are particularly happy with. They were able to maintain the growth at 25 percent. The asset quality metrics that I mentioned before and stabilizing and showing some improvement, particularly on the early stages. and then the evolution of the NIM is another one that I would like to highlight too we said this year that we would deliver around 40 basis points of NIM expansion and we are very close to 10 and we ended the last year at 9.6 so on a fundamental basis the machinery is working we think in the right direction and in a way that is sustainable through time in terms of the net income growth Rafaela De Oliveira Vitoria Thank you very much. We don't want to settle with that, but we are happy and we continue to search the growth going forward. This is a continuous game. As we say, it's not linear, but in general, we're happy with the quarter and we see that this stabilization of the net income growth is something that is a subject of the quarter and not of the story. I see. Thank you, Sanchi.

So, you think that excluding these, let's say, items that you mentioned, you think that 2027 would be reasonable to expect earnings growing above 20%? You think this is the plan, that it's something that we can dream? Of course, OELs for Eco and

Well, we don't give yearly guidance, as you all know. Joao gave some indications on the loan growth, which you can interpolate with 20% to 25%. We aim to continue to gain market share, and we aim to continue to have an increasing improvement in operational leverage. So all of those things will play in that evolution of the matrix. All right. Thank you, guys.

Our next question is from Marcelo Mizrahi. Marcelo, please go ahead.

Hello, everyone. Thank you for the opportunity to do a question here. So, regarding the credit card product, so we saw some increase on the Stage 3 and you guys have said that adjusting by the Zinrola issue, the dynamic were pretty stable. So, can you explain a little bit more How do you guys are seeing these last new vintages? So it seems that the new vintages are better. Can we think that on the credit card side we will see some stabilization or even more on the growth? Or you are seeing that those new clients, new vintages are gaining share and probably there are more room to growth in the next couple of quarters? Thank you.

Marcelo, I'll take that one. The new vintages are still relatively small in the overall mix. So yes, they should favor the Lincoln Symmetrics in a better way, but they need to gain more materiality and that will depend on how much they continue growing and how they mix. Vitoria de Oliveira Vitoria de Oliveira and of having a well provisioned portfolio on cards we did that above 110 percent now when you look at that relative to the history of the product itself and the one that is a bit below is on the personal loans a Consequence is private payroll, which is coming with better performance. And then the Desenrola impact that has with the FGO guarantee. So overall, we were quite confident that this factor on the provision, which reflected an increase in the coverage ratio, is managing this well. And the operational improvements in private payroll should make that improvement even more prudent Going forward, there's a specific page of Private Peril that we added this quarter where you can see the NPL formation there and that performed very well. It's a great leading indicator that I will invite you all to follow. The stage three follows that metric with one quarter delay, right? And that is also a consequence of the new vintages coming in with better performance.

Okay, can I do another one regarding margins? So in this year, yes, margins were pretty in line with our forecast in terms of gross margin, I mean gross NIMS, pretty stable around this 10%. Makes sense to, so in my view, so it still makes a lot of sense to see an improvement on these margins going forward. So that's the base case scenario for you guys, even assuming the reduction of the growth.

Risk-adjusted NIMH will be a consequence of the low mix that we will have going forward. We have grown a lot. Remember when we started at 60-30-30, it was at 4. Now it's a bit below 6. The expansion of risk-adjusted NIMH was very substantial. Going forward, it will depend on the mix. We would like to keep it flat, if not higher going forward. But again, it will depend a lot on the mix. As we continue going to next year, if private payroll grows more as a consequence of the improvement that we've had, that could push it up a bit. But we want to see a bit more quarters on how that evolves to give a bit more precise answer.

Okay, thank you. Thank you.

Our next question is from Mario Pierre. Mario, please go ahead.

Hey, guys. Good morning. Thanks for taking my question. Most of my questions have been answered. So I'd like to focus a little bit, João, on this partnership that you created with SpaceX AI. Exactly what does it mean? Like, are you trying to improve efficiency? Or is it to improve revenue generation? Or is it to improve your credit models? And how does it work? Is there some type of revenue sharing partnership? So if you can just give us more details on the benefits of this strategic partnership. Thank you.

Well, Mário, thank you for the question. Maybe I would say it's the best question of the Q&A, to be honest. As you know, I have been very focused on always trying to disrupt ourselves, to think about the next wave of internet. I'd like to say that we did a 10x thing for the past 10 years, so from 5,000 clients, 45 million clients, a small company in a few cities in Brazil to 100% of clients in all of Brazil. And that was possible mainly because we were able to tackle all the technology available back then, and we had the right mindset. I know that back then we had a few banks trying to be more efficient on how they were open brands, how they were trying to optimize the cost with their own data centers, and Inter did something completely different. And I like to say, Mario, I call this cognitive change, so not to think linearly, but how to disrupt the way you have been doing things. So we launched the first digital bank in Brazil. Ten years later, so 2026, I really see AI, despite all the buzz and all the excitement, but I really see AI as the next technological wave. I have been working alongside with Guilherme Ximenes, our CTO, to again, to try to disrupt the way Inter are doing our business today. As I told, we are super well positioned. We are better than the competition funding on a lot of things, the portfolio is secure, but that's not enough. And when we're trying to figure out how to Put AI at the center of it, how I run the business. There are three things that's important. Like I said, first people, so how we do this cognitive change around our scenario. It's what I'm working hard on that. The second thing is about the process, how we do it more efficient. But the main one, the main important one, It's about the product itself. So how can we have a new type of product, a new type of serving our clients, a new type of relationship? And this is what I would say that I like to do the most. So how can we think about the future, bring it faster ahead of the competition? And I do see, Mário, that AI is going to play a way more crucial role on how we serve our clients, how we interact with them, always with the tricky elements that I told on the call. Before in place, convenience, savings and trust. And in that sense, we decided to team up, which we believe is the best company Available today. So we did some research, some interactions, a lot of work on our end. And we believe that XAI is the best for us to put 7, which is our core engine, to seize this opportunity of AI. So to put 7 on the core of it. Actually, we just launched a new version of our website. We launched a website called 7.co, which is focused on that AI center, AI first approach. We don't have the agreement with them. It's not about profit share. So we're just using them as a strategic vendor. And also we are participating in a client advisory board. Guilherme is there. I'm super excited that we have the same opportunity today. I mean, how fast? How impactful will it be to India? I don't know. The thing is that I'm doing the best I can and I'm putting all my efforts. That's what I, to be honest, I like to do the most. And that's what I believe are my better skills on connecting the technology to how we serve clients in a different way, different from where the markets had. And so... A long answer, but that's how I see this partnership. That's how I see this technological wave. And I believe that we're going to disrupt ourselves like we disrupted the incumbent banks back then. So I think that we're going to have an amazing journey ahead. And in spite of the macro, in spite of everything that some headwinds, I think that the tailwind there, it's super nice.

And João, just to get a little bit more color, then this partnership, is there like a time, a period, and is there like a revenue sharing or how does it work?

No, Maru. There is no profit share, as I mentioned. It's just that we elected SpaceX AI as our main partner for developing everything on cloud using Cursor, that is a component now that belongs to the group. How are we going to do the software development lifecycle? How are we going to power seven with our core engine thing? And as I mentioned, how we put XAI to help on the three pieces, the people, the process, and the product. So that's about having the best... We believe in the world available to support Inter going forward. So no partnerships in terms of revenue, but just being able to access first with this client advisor board that I mentioned, and Guilherme is super on top of it, to again disrupt ourselves. So we avoid that someone else will disrupt Inter as we did 10 years ago. That's pretty much the vision behind this partnership with them.

Clear. And are you the only bank in Latin America that has this partnership, or are you aware... of this partnership of other banks.

Pierre, as far as we know, we are the only bank in Latin America on this client advisor board with them. So, super excited with that.

Great. Thank you.

Thanks, João. This concludes our earnings conference call. Thank you all and see you next time.