Document


Unaudited interim condensed consolidated statements
For the three-month period
March 31, 2024
Contents
Management report 2
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Tax expenses
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Unaudited interim condensed consolidated statements
For the three-month period
March 31, 2024
Management report
Inter & Co, Inc.
Inter & Co, Inc (the Company and, together with its consolidated subsidiaries, the Group) is a holding company incorporated in the Cayman Island, with limited liability. In June 2022, the Company began to have its shares listed on Nasdaq, a North American stock exchange, with the ticker INTR, and BDRs listed on B3 a Brazilian stock exchange, with the ticker INBR32. Inter&Co is the controlling company of Grupo Inter and indirectly holds all the shares in Banco Inter.
Inter
Inter provides e-commerce and financial services, these solutions are offered in a single digital ecosystem that includes a complete range of baking services, investments, credit, insurance and cross-border banking, as well as a marketplace that brings together the largest retailers in Brazil and in the United States.
Operating highlights
Customers
As of March 31, 2024, we surpassed the mark of 31.7 million customers and increased the activation rate by 339bps when compared to March 31, 2023, reaching 54.9%.
Loan Portfolio
The balance of loan operations reached R$30.9 billion, representing a positive variation of 3.6% compared to December 31, 2023.
Economic and financial highlights
Profit (loss) for the period
We recorded an accumulated profit of R$195.2 million as of March 31, 2024, compared to a increase of 706.2% in the period ending March 31, 2023.
Revenues
The revenues as of March 31, 2024, reached R$2,197.2 million, recording an increase of R$464.6 million compared to the amount recorded in the same period in 2023.
Administrative expenses
Accumulated administrative and personnel expenses incurred as of March 31, 2024, totaled R$(395.2) million, an increase of R$(9.6) million compared to March 31, 2023.
Equity highlights
Total assets
Total assets reached R$R$62.5 billion as of March 31, 2024, a 3.6% increase compared to December 31, 2023.
Shareholder's equity
Shareholder's equity totaled R$8.5 billions billion, a 12.4% growth compared to December 31, 2023.
Relationship with the independent auditors
The Company also has a policy with requirements for contractual risk analysis which defines that the Board of Directors must evaluate the transparency, objectivity, governance aspects and the compromising of the independence of the contract, thus ensuring conformity between the parties involved. Additionally, it has an Audit Committee which, among its responsibilities and competencies, in addition to providing opinions and recommendations on the audit service provider, also evaluates the effectiveness of the independent and internal audits, including with regard to the verification of compliance with legal provisions and regulations applicable to Inter, as well as internal policies and codes.
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Unaudited interim condensed consolidated statements
For the three-month period
March 31, 2024
Furthermore, Inter & Co, Inc. confirms that KPMG Auditores Independentes Ltda. has procedures, policies, and controls in place to ensure its independence, which include an evaluation of the work provided, covering any service other than the independent audit of Company's financial information. This evaluation is based on the applicable regulations and accepted principles that preserve the auditor's independence. The acceptance and performance of non-audit professional services on the financial Information by its independent auditors during the period ended as of March 31, 2024 did not affect the independence and objectivity in the conduct of the audit work performed at Inter & Co, Inc. Information related to independent auditors' fees is made available annually in the reference form.
Acknowledgment
We would like to thank our shareholders, customers and partners for their trust, as well as each of our employees who build our history daily.
Belo Horizonte, May 09, 2024.
The Management
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KPMG Auditores Independentes Ltda
Rua Paraíba, 550 - 12º andar - Bairro Funcionários
30130-141 - Belo Horizonte/MG - Brasil
Caixa Postal 3310 - CEP 30130-970 - Belo Horizonte/MG - Brasil
Telefone +55 (31) 2128-5700
kpmg.com.br
Report on review of interim financial statements
To the Shareholders, Board of Directors and Management of
Inter & Co, Inc.
Cayman Islands
Introduction
We have reviewed the condensed consolidated interim financial information of Inter & Co. Inc. ("Company"), included in the Interim Financial Information Form for the quarter ended March 31, 2024, which comprise the balance sheet as of March 31, 2024, and the income statements, statements of comprehensive income, changes in equity and cash flows for the three-month period then ended, including the explanatory notes.
Management is responsible for the preparation and presentation of this condensed consolidated interim financial information in accordance with IAS 34 Interim Financial Reporting, issued by the International Accounting Standards Board - (IASB). Our responsibility is to express a conclusion on this condensed consolidated interim financial information based on our review.
Scope of review
We conducted our review in accordance with Brazilian and international review standards on interim financial information (NBC TR 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of people responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with standards on auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion on the condensed consolidated interim financial information
Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial information referred to above is not prepared, in all material respects, in accordance with IAS 34, applicable to the preparation of interim financial information and presented in accordance with the standards issued by the Brazilian Securities and Exchange Commission.
Belo Horizonte, May 9, 2024
KPMG Auditores Independentes Ltda.
CRC SP 014428/O-6 F-MG
Original report Portuguese signed by
Jonas Moreira Salles
Accountant CRC SP-295315/O-4
KPMG Auditores Independentes Ltda., a Brazilian limited liability company and a member firm of KPMG's global organization of independent member firms licensed by KPMG International Limited, a private English company limited by guarantee. KPMG Auditores Independentes Ltda., a Brazilian limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.
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Unaudited interim condensed consolidated balance sheets
As of March 31, 2024 and December 31, 2023
(Amounts in thousands of Brazilian reais, unless otherwise stated)
Note 03/31/2024 12/31/2023
Assets
Cash and cash equivalents 2,830,310 4,259,379
Amounts due from financial institutions, net of provisions for expected loss 4,051,287 3,718,506
Deposits at Central Bank of Brazil 2,925,658 2,664,415
Securities, net of provisions for expected loss 18,167,251 16,868,112
Derivative financial assets 7,392 4,238
Loans and advances to customers, net of provisions for expected loss 28,826,999 27,900,543
Non-current assets held for sale 173,712 174,355
Equity accounted investees 89,569 90,634
Property and equipment 187,076 167,547
Intangible assets 1,596,177 1,345,304
Deferred tax assets 1,082,102 1,033,535
Other assets 2,609,027 2,125,229
Total assets 62,546,562 60,351,797
Liabilities
Liabilities with financial and similar institutions 10,483,087 9,522,469
Liabilities with customers 32,643,444 32,651,620
Securities issued 8,249,142 8,095,042
Derivative financial liabilities 13,893 15,063
Borrowing and onlending 102,020 107,412
Income tax and social contribution 360,850 287,978
Other tax liabilities 78,276 75,284
Tax liabilities 439,126 363,262
Provisions 70,003 70,452
Deferred tax liabilities 49,912 32,539
Other liabilities 1,957,483 1,897,248
Total liabilities 54,008,110 52,755,107
Equity
Share capital 13 13
Reserves 9,116,496 8,147,285
Other comprehensive income (711,252) (675,488)
Treasury shares (12,783) -
Equity attributable to owners of the Company 8,392,474 7,471,810
Non-controlling interest 145,978 124,881
Total equity 8,538,452 7,596,691
Total liabilities and equity 62,546,562 60,351,797

The notes are an integral part of the Unaudited interim condensed consolidated statements

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Unaudited interim condensed consolidated income statements
For the three-month period ended March 31, 2024 and 2023
(Amounts in thousands of Brazilian reais, except for earnings per share)
Note 03/31/2024 03/31/2023
Interest income 1,217,531 1,012,927
Interest expenses (762,247) (672,771)
Income from securities and derivatives 515,381 371,406
Net interest income and income from securities and derivatives 970,665 711,562
Net revenues from services and commissions 374,340 282,353
Expenses from services and commissions (34,022) (35,678)
Other revenues 89,957 65,877
Revenues 1,400,941 1,024,114
Impairment losses on financial assets (411,048) (350,681)
Administrative expenses (395,244) (385,615)
Personnel expenses (190,463) (172,412)
Tax expenses (86,331) (68,871)
Depreciation and amortization (41,900) (37,577)
Income from equity interests in associates (2,223) (3,061)
Profit before income tax 273,732 5,897
Income tax (78,512) 18,319
Profit for the year 195,220 24,216
Profit attributable to:
Owners of the Company 182,793 11,405
Non-controlling interest 12,427 12,811
Earnings (loss) per share
Basic earnings (loss) per share 0.43 0.03
Diluted earnings (loss) per share 0.43 0.03

The notes are an integral part of the Unaudited interim condensed consolidated statements

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Unaudited interim condensed consolidated statements of comprehensive income
For the three-month period ended March 31, 2024 and 2023
(Amounts in thousands of Brazilian reais, unless otherwise stated)
03/31/2024 03/31/2023
Profit for the year 195,220 24,216
Other comprehensive income
Item that are or may be reclassified subsequently to the income statement:
Change in fair value - financial assets at FVOCI (94,809) 32,221
Related tax - financial assets FVOCI 42,662 (14,500)
Net change in fair value - financial assets at FVOCI (52,147) 17,721
Fair value change - investments in operations abroad (7,620) -
Tax effect 5,931 -
Hedge of net investments in operations abroad (1,689) -
Foreign exchange differences on the translation of foreign operations 18,073 (554)
Others - 24
Other comprehensive income that may be reclassified subsequently to the income statement (35,763) 17,191
Total comprehensive income for the year 159,457 41,407
Allocation of comprehensive income
To owners of the company 147,030 28,596
To non-controlling interest 12,427 12,811

The notes are an integral part of the Unaudited interim condensed consolidated statements

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Unaudited interim condensed consolidated statements of cash flows
For the three-month period ended March 31, 2024 and 2023
(Amounts in thousands of Brazilian reais, unless otherwise stated)
03/31/2024 03/31/2023
Operating activities
Profit (loss) for the period 195,220 24,216
Adjustments to profit (loss)
Depreciation and amortization 41,900 37,382
Result of equity interests in associates 2,223 3,061
Impairment losses on financial assets 411,048 350,681
Expenses with provisions 9,534 10,226
Income tax and social contribution 78,512 (18,319)
Provisions/ (reversals) for loss of assets (42,343) (11,127)
Other capital gains (losses) (3,255) (2,938)
Provision for performance income (24,264) (28,285)
Result of foreign exchange variation (21,756) 131
(Increase)/ decrease in:
Compulsory deposits at Central Bank of Brazil (261,243) (138,838)
Loans and advances to customers, net of provision for expected loss (1,337,505) (1,341,932)
Amounts due from financial institutions (332,782) 488,782
Securities (373,610) 106,514
Derivative financial assets (3,154) (1,122)
Non-current assets held for sale 642 (11,470)
Other assets (454,250) (41,517)
Increase/ (decrease) in:
Liabilities with financial institutions 960,618 309,641
Liabilities with customers (8,176) 539,202
Securities issued 154,100 438,392
Derivative financial liabilities (1,170) (5,154)
Borrowing and onlending (5,392) 991
Tax liabilities 52,270 (23,087)
Provisions (9,983) (4,462)
Other liabilities (95,324) 58,694
Income tax paid (64,329) (17,762)
Net cash from operating activities (1,132,469) 721,900
Cash flow from investing activities
Acquisition of subsidiaries, net of cash acquired - (2,378)
Acquisition of property and equipment (21,405) (2,704)
Proceeds from sale of property and equipment - 7,248
Acquisition of intangible assets (93,572) (70,765)
Acquisition of financial assets at FVOCI (2,071,379) (930,710)
Proceeds from sale of financial assets at FVOCI 1,081,628 743,716
Acquisition of financial assets at FVTPL (30,060) (17,106)
Proceeds from sale of financial assets at FVTPL 42,134 27,967
Net cash used in investing activities (1,092,654) (244,732)
Cash flow from financing activities
Capital increase
782,037 -
Dividends and interest on shareholders' equity paid (2,271) -
Repurchase of treasury shares (16,409) (16,409)
Resources from non-controlling interest 10,941 (569)
Net cash used in from financing activities 774,298 (16,978)
Increase/(Decrease) in cash and cash equivalents (1,450,825) 460,190
Cash and cash equivalents at the beginning of the period 4,259,379 1,331,648
Effect of the exchange rate variation on cash and cash equivalents 21,756 (131)
Cash and cash equivalents at March 31 2,830,310 1,791,707

The notes are an integral part of the Unaudited interim condensed consolidated statements

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Unaudited interim condensed consolidated statements of changes in equity
For the three-month period ended March 31, 2024 and 2023
(Amounts in thousands of Brazilian reais, unless otherwise stated)
Share capital Reserves Other comprehensive income Retained earnings / accumulated losses Treasury shares Equity attributable to owners of the Company Non-controlling interest Total equity
Balance as of January 1, 2023 - Inter & Co, Inc. 13 7,817,670 (825,301) - - 6,992,382 96,722 7,089,104
Profit (loss) for the period - - - 11,405 - 11,405 12,811 24,216
Proposed allocations:
Constitution/ reversion of reserves - 11,405 - (11,405) - - - -
Net change in fair value - financial assets at FVOCI - - 17,721 - - 17,721 - 17,721
Foreign exchange differences on the translation of foreign operations - - (554) - - (554) - (554)
Repurchase of treasury shares - - - - (16,409) (16,409) - (16,409)
Reflex reserve - 26,397 - - - 26,397 - 26,397
Others - - 24 - - 24 (593) (569)
Balance as of March 31, 2023 - Inter & Co, Inc. 13 7,855,472 (808,110) - (16,409) 7,030,966 108,940 7,139,906
Balance as of January 1, 2024 - Inter & Co, Inc. 13 8,147,285 (675,488) - - 7,471,810 124,881 7,596,691
Profit for the period - - - 182,793 - 182,793 12,427 195,220
Proposed allocations:
Constitution/ reversion of reserves - 182,793 - (182,793) - - - -
Capital increase - 820,503 - - - 820,503 - 820,503
Cost associated with issuing equity securities - (38,466) - - - (38,466) - (38,466)
Interest on equity / dividends - - - - - - (2,271) (2,271)
Foreign exchange differences on the translation of foreign operations - - 18,073 - - 18,073 - 18,073
Gains and losses - Hedge - - (1,689) - - (1,689) - (1,689)
Net change in fair value - financial assets at FVOCI - - (52,147) - - (52,147) - (52,147)
Share-based payment transactions - (3,626) - - 3,626 - - -
Reflex reserve - 8,007 - - - 8,007 - 8,007
Repurchase of treasury shares - - - - (16,409) (16,409) - (16,409)
Others - - - - - - 10,941 10,941
Balance as of March 31, 2024 - Inter & Co, Inc. 13 9,116,496 (711,251) - (12,783) 8,392,475 145,978 8,538,453
The notes are an integral part of the Unaudited interim condensed consolidated statements

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Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
Notes to the Unaudited interim condensed consolidated financial statement
(Amounts in thousands of Brazilian reais, unless otherwise stated)
1.Activity and structure of Inter & Co, Inc. and its subsidiaries
Inter & Co, Inc. ("Inter & Co"), is a company incorporated in the Cayman Islands with limited liability, on January 26, 2021.
Inter & Co, Inc. is registered with the U.S. Securities and Exchange Commission ("SEC"). Common shares are traded on Nasdaq under the symbol "INTR" and Brazilian Depositary Receipts ("BDRs") are traded on B3 - Brasil, Bolsa, Balcão ("B3"), the Brazilian stock exchange, under the symbol "INBR32" .
2.Basis for preparation
a.Compliance statement
The Group's Unaudited interim condensed consolidated financial statements was prepared in accordance with IAS 34 - interim financial reports issued by the International Accounting Standards Board (IASB).
This Unaudited interim condensed consolidated financial statements was prepared following the preparation basis and accounting policies consistent with those adopted in the preparation of the consolidated financial statements of Inter & Co, Inc., as of December 31, 2023, and is therefore intended only to provide an update of the content of the latest financial statements and must be read together, in accordance with IAS 34.
The information in the explanatory notes that did not undergo significant changes or that did not present new disclosures in relation to December 31, 2023 was not fully repeated in this condensed consolidated interim financial statements. However, information has been included to explain the main events and transactions that have occurred, allowing an understanding of the changes in the financial position and performance of the Group's operations since the publication of the consolidated financial statements as of December 31, 2023.
This Unaudited interim condensed consolidated financial statements was authorized for issuance by the Company's Board of Directors on May 09, 2024.
b.Functional and presentation currency
These Unaudited interim condensed consolidated financial statements are presented in Brazilian reais (BRL or R$). The functional currency of the Group companies is shown in note 4a. All balances were rounded to the nearest thousand, unless otherwise indicated.
c.Use of estimates and judgments
In preparing these Unaudited interim condensed consolidated financial statements, management has made judgments, estimates and assumptions that affect the application of the accounting policies of the Group and the reported amounts of assets, liabilities, revenues and expenses. Actual results may differ from such estimates. Estimates and assumptions are reviewed on an ongoing basis. Adjustments, if any, related to changes in estimates are recognized prospectively. The significant judgments made by management during the application of the Group's accounting policies and the sources of estimation uncertainty are described below:
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Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
Judgments
Information about the judgments made in the application of accounting policies that have the most relevant effects on the amounts recognized in financial projections are included in the following notes:
•Basis for consolidation (see note 4a): whether Inter has de facto control over an investee;
•Equity accounted investees (see note 14): whether Inter has significant influence over an investee.
Estimates
The estimates present a significant risk and may have a material impact on the values of assets and liabilities in the next year, and the actual results may differ from those previously established. They are disclosed below and are related to the following notes:
•Classification of financial assets (see notes 6 and 7) - evaluation of the business model in which the assets are held and evaluation if the contractual terms of the financial asset relate only to payments of principal and interest (SPPI test).
•Measuring the provision for expected credit losses on financial assets measured at amortized cost and fair value through other comprehensive income (FVOCI) requires the use of complex quantitative models and assumptions about future economic conditions and credit behavior. Several significant judgments are also necessary to apply accounting requirements to measure the expected credit loss, such as: determining the criteria for evaluating the significant increase in credit risk; select quantitative models and appropriate assumptions to measure expected credit loss; and establish different prospective scenarios and their weighting, among others.
•Business combination (see note 4b): determination of fair values of assets acquired and liabilities assumed in business combinations.
•Impairment test of intangible assets and goodwill (see notes 16 and 4(h)): for the purposes of impairment testing, each invested entity was considered a cash generating unit ("CGU").
•Deferred tax asset (note 34): the expected realization of the deferred tax asset is based on projected future taxable income and other technical studies.
3.Significant changes of accounting policies
New or revised accounting pronouncements adopted in 2024
The following new or revised standards have been issued by IASB, and were effective for the year covered by these Unaudited interim condensed consolidated financial statements, and had no material impact on these condensed consolidated interim financial statements.
•Definition of accounting estimates - Amendments to IAS 8: defines accounting estimates as monetary values susceptible to uncertainties in their measurement. Among these estimates we can mention the expected credit loss and the fair value of assets and liabilities.
•Disclosure of Accounting Policies - Changes to IAS 1 and IFRS Practice Statement 2: The Group adopted disclosure from January 1, 2023. Although the amendments made to the accounting policies did not result in any changes to the accounting policies themselves, they did have an impact on the disclosure of accounting policy information in the consolidated financial statements. The amendments require 'material' disclosure of policies instead of 'significant' disclosure. Additionally, they provide guidance on the application of materiality to the disclosure of accounting policies, thus assisting entities in providing useful and specific policy information that users require to understand other information in the financial statements. Management made certain updates to the information presented in Note 4, which pertains to Material Accounting Policies (previously referred to as Significant Accounting Policies), in line with the amendments.
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Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
•Deferred tax on leasing transactions - Amendments to IAS 12: clarify that the exemption for accounting for deferred taxes arising from temporary differences generated in the initial recognition of assets or liabilities does not apply to leasing transactions.
•Changes to IFRS 16 - Leases: the IASB has issued narrow-scope changes to the requirements for sale and leaseback transactions in IFRS 16, explaining how an entity accounts for a sale and leaseback after the date of the transaction. Sale and leaseback transactions in which some or all of the lease payments are variable lease payments that are not dependent on an index or rate and are more likely to be impacted.
•Insurance Contracts - IFRS 17: The standard on Insurance Contracts replaces IFRS 4 - Insurance Contracts, and brings important changes to the measurement, recognition and disclosure of these contracts, through specific methodologies for each type of agreement.
•Changes to IAS 7 and IFRS 7 - Supplier financing arrangements: these changes require disclosures to increase the transparency of supplier financing arrangements and their effects on a company's liabilities, cash flows and liquidity risk exposure. The disclosure requirements are the IASB's response to investor concerns that some companies' supplier financing arrangements are not sufficiently visible, making it difficult for investors to review.
Other new standards and interpretations issued but not yet effective
•Classification of Liabilities as Current or Non-Current - Amendments to IAS 1: clarifies when to take into account contractual conditions (covenants) that may impact the unconditional right to postpone the settlement of the liability for a minimum period of 12 months after the closure of the report, in addition to establish disclosure requirements for liabilities with covenants classified as non-current. These changes will come into effect from the start of the 2024 financial year, and there is no impact on the consolidated financial statements.
•Amendment to IAS 21 - Effects of Changes in Exchange Rates and Conversion of Financial Statements: the changes will require the application of a consistent approach when assessing whether one currency can be exchanged for another and the amendment clarifies how entities should determine the exchange rate to be used, and disclosures to be provided, when a currency is difficult, or cannot, be exchanged. The changes aim to improve the information that an entity provides in its financial statements. The changes to IAS 21 are effective from January 1, 2025, and their adoption may be brought forward. Management does not expect impacts on Grupo Inter's financial statements.
•New IFRS 18 - Presentation and Disclosure in Financial Statements: issued in April 2024, replaces IAS 1 and brings additional requirements to improve the disclosure of companies' financial performance. It defines three categories for income and expenses: operating, investments and financing, in addition to including new subtotals, such as operating profit. The standard also provides guidance on the disclosure of performance indicators defined by management and provides specific requirements for companies in the banking and insurance sector. IFRS 18 will come into force on January 1, 2027, and Management is currently analyzing its impacts on Grupo Inter's financial statements.
4.Material accounting policies
The accounting policies described below were applied in all years presented in the Unaudited interim condensed consolidated financial statements.
a.Basis for consolidation
Companies that Inter & Co controls are classified as subsidiaries. The Company controls an entity when it is exposed to or has the right to variable returns arising from its involvement with the entity and has the ability to use this power to affect the value of such returns.
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Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
The subsidiaries are consolidated in full as from the date the Company gains control of their activities until the date on which control ceases to exist. With regard to the significant restrictions on the Group's ability to access or use the assets and settle the Group's liabilities, only the regulatory restrictions, linked to the compulsory reserves maintained in compliance with the requirement of the Central Bank of Brazil, which restrict the ability of subsidiaries of Inter to transfer cash to other entities within the economic group. There are no other legal or contractual restrictions and no guarantees or other requirements that may restrict that dividends and other capital distributions are paid or that loans and advances are made or paid to (or by) other entities within the economic group.
The following table shows the subsidiaries in each year:
Entity Branch of Activity Common shares
and/or quotas 		Functional currency Country Share in the capital (%)
03/31/2024 12/31/2023
Direct subsidiaries
Inter&Co Participações Ltda. Holding Company 288,517,995 BRL Brazil 100.00 % 100.00 %
INTRGLOBALEU Serviços Administrativos, LDA Holding Company 1 EUR Portugal 100.00 % 100.00 %
Inter US Holding, Inc Holding Company 100 US$ USA 100.00 % 100.00 %
Inter Holding Financeira S.A. Holding 401,207,704 BRL Brazil 100.00 % 100.00 %
Indirect subsidiaries
Banco Inter S.A. Multiple Bank 1,297,308,713 BRL Brazil 100.00 % 100.00 %
Inter Distribuidora de Títulos e Valores Mobiliários Ltda. Securities 195,000,000 BRL Brazil 100.00 % 100.00 %
Inter Digital Corretora e Consultoria de Seguros Ltda. Insurance broker 59,750 BRL Brazil 60.00 % 60.00 %
Inter Marketplace Ltda. Marketplace 1,984,271,386 BRL Brazil 100.00 % 100.00 %
Inter Titulos Fundo de Investimento Investment Fund 499,388,000 BRL Brazil 98.30 % 98.30 %
BMA Inter Fundo De Investimento Em Direitos Creditórios Multissetorial Investment Fund 194,333,000 BRL Brazil 72.68 % 86.46 %
TBI Fundo De Investimento Renda Fixa Credito Privado Investment Fund 230,278,086 BRL Brazil 100.00 % 100.00 %
TBI Fundo De Investimento Crédito Privado Investimento Exterior Investment Fund 15,000,000 BRL Brazil 100.00 % 100.00 %
IG Fundo de Investimento Renda Fixa Crédito Privado Investment Fund 144,796,772 BRL Brazil 100.00 % 100.00 %
Inter Simples Fundo de Investimento em Direitos Creditórios Multissetorial Investment Fund 17,738 BRL Brazil 91.86 % 99.11 %
IM Designs Desenvolvimento de Software Ltda. Provision of services 50,000,000 BRL Brazil 50.00 % 50.00 %
Acerto Cobrança e Informações Cadastrais S.A. Provision of services 60,000,000,000 BRL Brazil 60.00 % 60.00 %
Inter & Co Payments, Inc Provision of services 1,000 US$ USA 100.00 % 100.00 %
Inter Asset Gestão de Recursos Ltda Asset management 750,814 BRL Brazil 70.87 % 70.87 %
Inter Café Ltda. Provision of services 3,010,000 BRL Brazil 100.00 % 100.00 %
Inter Boutiques Ltda. Provision of services 2,510,008 BRL Brazil 100.00 % 100.00 %
Inter Food Ltda. Provision of services 7,000,000 BRL Brazil 70.00 % 70.00 %
Inter Viagens e Entretenimento Ltda. Provision of services 94,515,000 BRL Brazil 100.00 % 100.00 %
Inter Conectividade Ltda. (d) Provision of services 33,533,805 BRL Brazil 100.00 % 100.00 %
Inter US Management, LLC Provision of services 100,000 US$ USA 100.00 % 100.00 %
Inter US Finance, LLC Provision of services 100,000 US$ USA 100.00 % 100.00 %
Inter&Co Securities, LLC (a) Securities - US$ USA 100.00 % 100.00 %
a.The reorganization of Inter&Co Securities, LLC ("Securities") was completed on February 22, 2024. Inter&Co, Inc. ("Inter&Co"), which was the sole owner of Securities, transferred Securities' shares to its direct subsidiary, Inter US Holding, Inc. ("US Holding"). With the completion of this reorganization, Securities is now a direct subsidiary of US Holding and, consequently, an indirect subsidiary of Inter&Co.
b.On March 27, 2024, the corporate reorganization of Inter Marketplace Intermediação De Negócios e Serviços Ltda. Banco Inter, which was the sole partner of Inter Marketplace Intermediação de Negócios e Serviços Ltda, transferred its shares to Inter&Co Participações Ltda, becoming the direct controller of Inter Marketplace, consequently, an indirect subsidiary of Inter&Co.
Non-controlling interest
The Group recognizes the portion related to non-controlling interests in shareholders' equity in the consolidated balance sheet. In transactions involving purchase of interests with non-controlling shareholders, the difference between the amount paid and the interest acquired is recorded in shareholders' equity. Gains or losses on sales to non-controlling shareholders are also recorded in shareholders' equity. The company owns 50% or more of the voting capital of all indirect subsidiaries.
Balances and transactions eliminated on consolidation
Intra-group balances and transactions, including any unrealized gains or losses arising from intra-group transactions, are eliminated in the consolidation process. Unrealized losses are eliminated only to the extent that there is no evidence of impairment.
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Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
5.Operational segments
Operating segments are disclosed based on internal information that is used by the chief operating decision maker to allocate resources and to assess performance. The chief operating decision-maker, responsible for allocating resources, evaluating the performance of the operating segments and responsible for making strategic decisions for the Group, is the CEO, together with the Board of Directors.
Profit by operating segment
Each operating segment is composed of one or more legal entities. The measurement of profit by operating segment takes into account all revenues and expenses recognized by the companies that make up each segment.
Transactions between segments are carried out under terms and rates compatible with those practiced with third parties, where applicable. The Group does not have any single customer accounting for more than 10% of its total net revenue.
a.Banking & Spending
This segment comprises a wide range of banking products and services, such as checking accounts, debit and credit cards, deposits, loans, advances to customers, debt collection services and other services, which are available to the customers primarily by means of Inter's mobile application. The segment also comprises foreign exchange services and money remittances between countries, including the Global Account digital solution, including investment funds consolidated by the Group.
b.Investments
This segment is responsible for operations related to the acquisition, sale and custody of securities, the structuring and distribution of securities in the capital market and operations related to the management of fund portfolios and other assets (purchase, sale, risk management). Revenues consist primarily of administration fees and commissions charged to investors for the rendering of such services.
c.Insurance Brokerage
This segment offers insurance products underwritten by insurance companies with which Inter has an agreement ('partner insurance companies'), including warranties, life, property and automobile insurance and pension products, as well as consortium products provided by a third party with whom Inter has a commercial agreement. The income from brokerage commissions is recognized in the income statement when services are provided, that is, when the performance obligation is fulfilled upon sale to the customer.
d.Inter Shop
This segment includes sales of goods and/or services with partner companies through our digital platform. The segment income basically comprises commissions received for sales and/or for the rendering of these services.
14
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
Segment information
As of and for March 31, 2024
Banking & Spending Investments Insurance Brokerage Inter Shop Total of reportable segments Others Eliminations Consolidated
Interest income 1,190,849 2,925 - 14,175 1,207,949 13,933 (4,351) 1,217,531
Interest expenses (776,296) (1,992) - - (778,288) (2,121) 18,162 (762,247)
Income from securities and derivatives 492,446 18,817 974 7,214 519,451 9,741 (13,811) 515,381
Net interest income and income from securities and derivatives 906,999 19,750 974 21,389 949,112 21,553 - 970,665
Net revenues from services and commissions 272,341 31,125 36,446 33,654 373,566 774 - 374,340
Expenses from services and commissions (33,925) (95) - - (34,020) (2) - (34,022)
Other revenues 103,616 3,141 14,930 6,412 128,099 13,347 (51,489) 89,957
Revenues 1,249,031 53,921 52,350 61,455 1,416,757 35,672 (51,489) 1,400,940
Impairment losses on financial assets (410,592) - - - (410,592) (456) (411,048)
Revenues net of impairment losses on financial assets 838,439 53,921 52,350 61,455 1,006,165 35,216 (51,489) 989,892
Administrative expenses (341,277) (18,221) (13,657) (14,304) (387,459) (7,785) - (395,244)
Personnel expenses (141,976) (22,537) (5,827) (10,772) (181,112) (9,351) - (190,463)
Tax expenses (68,128) (3,687) (4,338) (10,110) (86,263) (68) - (86,331)
Depreciation and amortization (37,751) (1,408) (339) (2,349) (41,847) (53) - (41,900)
Income from equity interests in associates (2,223) - - - (2,223) - - (2,223)
Profit / (loss) before income tax 247,084 8,068 28,189 23,920 307,261 17,959 (51,489) 273,731
Income tax (51,214) (2,608) (7,768) (17,412) (79,002) 490 - (78,512)
Profit / (loss) for the year 195,870 5,460 20,421 6,508 228,259 18,449 (51,489) 195,220
Total assets 61,528,193 627,440 273,804 635,047 63,064,484 1,178,881 (1,696,803) 62,546,562
Total liabilities 54,191,437 381,574 138,321 596,482 55,307,814 262,224 (1,561,928) 54,008,110
Total equity 7,336,756 245,866 135,483 38,565 7,756,670 916,657 (134,875) 8,538,452
15
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
As of and for March 31, 2023
Banking & Spending Investments Insurance Brokerage Inter Shop Total of reportable segments Others Eliminations Consolidated
Interest income 992,033 6,655 - - 998,688 23,252 (9,013) 1,012,927
Interest expenses (665,800) (11,438) - (515) (677,753) (3,438) 8,420 (672,771)
Income from securities and derivatives 371,476 9,541 589 4,870 386,476 6,794 (21,864) 371,406
Net interest income and income from securities and derivatives 697,709 4,758 589 4,355 707,411 26,608 (22,457) 711,562
Net revenues from services and commissions 166,352 20,250 27,261 66,959 280,822 1,531 - 282,353
Expenses from services and commissions (33,110) - - - (33,110) (2,568) - (35,678)
Other revenues 93,965 8,543 12,712 19,531 134,751 51,928 (120,802) 65,877
Revenues 924,916 33,551 40,562 90,845 1,089,874 77,499 (143,259) 1,024,114
Impairment losses on financial assets (345,921) 317 - (4,827) (350,431) (250) - (350,681)
Revenues net of impairment losses on financial assets 578,995 33,868 40,562 86,018 739,443 77,249 (143,259) 673,433
Administrative expenses (352,251) (11,379) (10,791) (7,765) (382,186) (3,250) (179) (385,615)
Personnel expenses (159,998) (4,302) (1,796) (4,514) (170,610) (1,802) - (172,412)
Tax expenses (54,768) (2,177) (3,823) (7,918) (68,686) (185) - (68,871)
Depreciation and amortization (34,578) (711) (238) (2,007) (37,534) (43) - (37,577)
Income from equity interests in associates (3,061) - - - (3,061) - - (3,061)
Profit / (loss) before income tax (25,661) 15,299 23,914 63,814 77,366 71,969 (143,438) 5,897
Income tax 41,566 (4,460) (8,125) (11,699) 17,282 1,037 - 18,319
Profit / (loss) for the year 15,905 10,839 15,789 52,115 94,648 73,006 (143,438) 24,216
Total assets 60,102,556 570,182 211,213 337,810 61,221,761 96,447 (966,411) 60,351,797
Total liabilities 52,501,608 326,926 96,198 141,600 53,066,332 (19,167) (292,059) 52,755,106
Total equity 7,600,948 243,256 115,015 196,210 8,155,429 115,614 (674,352) 7,596,691

16
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
6.Financial risk management
Risk management at Inter includes credit, market, liquidity and operational risks. Risk management activities are carried out by independent and specialized structures, in accordance with previously defined policies and strategies. In general, the activities and processes seek to identify, measure, and control the financial and non-financial risks to which Inter is subject.
The model adopted by Inter & Co, Inc., involves a structure of areas and committees that seek to ensure:
•Segregation of function;
•Specific unit for risk management;
•Defined management process;
•Clear norms and competence structure;
•Defined limits and margins; and
•Reference to best management practices.
a.Credit risk
Credit risk is defined as the possibility of losses associated with the failure of the borrower or counterparty to meet their respective financial obligations in the agreed-upon terms or the devaluation of a credit agreement arising from the increased risk of default by the borrower, among others.
The financial instruments subject to credit risk are submitted to careful credit evaluation prior to contracting, as well as throughout the term of the respective operations. The credit analyses are based on the borrower's (or counterparty's) economic and financial capacity behavior, including payment history and credit reputation, in addition to the terms and conditions of the respective credit operation, including terms, rates and guarantees.
Loans and advances to customers, as shown in Note 12, are mainly represented by the following operations:
•Credit card: credit operations related to credit card limits, mostly without attached guarantees;
•Business loans: working capital operations, receivables, discounts and loans in general, with or without attached guarantees;
•Real estate loans: loans and financing operations secured by real estate, with attached guarantees;
•Personal loans: loan and payroll card operations, personal loans with and without transfer guarantees; and
•Agribusiness loans:financing operations for costing, investment, commercialization and/or industrialization granted to rural producers, with or without attached guarantees.
Mitigation of Exposure
In order to maintain the exposures within the risk levels established by senior management, Inter adopts measures to mitigate credit risk. Exposure to credit risk is mitigated through the structuring of guarantees, adapting the risk level to be incurred to the characteristics of the collateral taken at the time of granting. Risk indicators are monitored on an on-going basis and proposal for alternatives forms of mitigation are assessed, whenever the exposure behavior to credit risk of any unit, region, product or segment requires it. Additionally, credit risk mitigation takes place through product repositioning and adjusting operational processes or operation approval levels.
17
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
In addition to the activities described above, goods pledged in guarantee are subject to a technical assessment / valuation at least once every twelve months. In the case of personal guarantees, an analysis of the financial and economic circumstances of the guarantor is made considering their other debts with third parties, including tax, social security and labor debt.
Credit standards guide operational units and cover, among other aspects, the classification, requirement, selection, assessment, formalization, control and reinforcement of guarantees, aiming to ensure the adequacy and sufficiency of mitigating instruments throughout the cycle of the loan.
In 2024 there were no material changes to the nature of the credit risk exposures, how they arise or the Group's objectives, policies and processes for managing them, although Inter continues to refine its internal risk management processes.
Measurement
The measurement of credit risk by Inter is carried out considering the following:
•At the time that credit is granted, an assessment of a customer's financial condition is undertaken through the application of qualitative and quantitative methods and using information collected from the market, in order to support the adequacy of the risk exposure being proposed;
•The assessment is carried out at the counterparty level, considering information on guarantors where applicable. The exposure to the credit risk is also measured in extreme scenarios, using stress techniques and scenario analysis. The models applied to determine the rating of customers and loans are reviewed periodically in order to ensure they reflect the macroeconomic scenario and actual loss experience, as per information in note 12;
•The aging of late payments in portfolios is monitored in order to identify trends or changes in the behavior of non-performing loans and allow the adoption of mitigating measures when required;
•Expected credit loss reflects the risk level of loans and allows monitoring and control of the portfolio's exposure level and the adoption of risk mitigation measures;
•The expected credit loss is a forecast of the risk levels of the credit portfolio. Its calculation is based on the historical payment behavior and the distribution of the portfolio by product and risk level. This is a key input to the process of pricing loans and advances to customers; and
•In addition to the monitoring and measurement of indicators under normal conditions, simulations of changes in business environment and economic scenario are also performed in order to predict the impact of such changes in levels of exposure to risks, provisions and balance of such portfolios and to support the process of reviewing the exposure limits and the credit risk policy.
b.Description of guarantees
The financial instruments subject to credit risk are subject to careful assessment of credit prior to being contracted and disbursed and risk assessment is ongoing throughout the term of the instruments. Credit assessments are based on an understanding of the customers' operational characteristics, their indebtedness capacity, considering cash flow, payment history and credit reputation, and any guarantees given.
Loans and advances to customers, as shown in Note 10, are mainly represented by the following operations:
•Working capital operations: are guaranteed by receivables, promissory notes, sureties provided by their owners and occasionally by property or other tangible assets, when applicable;
18
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
•Payroll loans repayments: are mainly represented by payroll loan cards and personal loans. These are deducted directly from the borrowers' pensions, income or salaries and settled directly by the entity responsible for making those payments (e.g. company or government body); The operations concerning FGTS (Guarantee Fund for Time of Service) , such as the anniversary withdrawal are guaranteed through transfer;
•Personal loans and credit cards: generally, do not have guarantees; and
•Real estate financing: is collateralized by the real estate financed.
Guarantees of real estate loans and financing
The tables below present the amount of loans and financing secured by property, broken down by loan-to-value. The loan-to-value is calculated by the ratio between the gross value of the exposure and the value of the guarantee at the origination date. Gross amounts exclude any provision for impairment:
03/31/2024 12/31/2023
Lower than 30% 1,181,987 1,210,884
31 - 50% 2,318,511 2,157,130
51 - 70% 3,417,831 3,227,703
71 - 90% 1,844,618 1,664,885
Higher than 90% 361,428 322,966
9,124,375 8,583,568
c.Liquidity risk
Liquidity risk is the possibility that the Group is not able to efficiently meet its expected or unexpected obligations, including those resulting from binding guarantees, without incurring significant losses. This also includes the possibility of the Group not being able to negotiate a sale of an asset at market price due to its volume in relation to the volume normally transacted or due to any discontinuity in the market.
The liquidity risk management structure is segregated and works proactively with the aim of monitoring and preventing any breach of limits on liquidity ratios. The monitoring of liquidity risk encompasses the entire flow of receipts and payments for the Group so that risk mitigating actions may be implemented. This monitoring is carried out primarily by the Assets and Liabilities Committee and the Risk and Capital Management Committee. These committees evaluate liquidity risk information that is available in the Group's systems, such as:
•Top 10 investors;
•Mismatch between assets and liabilities;
•Net Funding;Liquidity limits;Maturity forecast;
•Stress tests based on internally defined scenarios;
•Liquidity contingency plans;
•Monitoring of asset and liability concentrations;
•Monitoring of Liquidity Ratio and funding renewal rates; and
•Reports with information on positions held by Inter and its subsidiaries.
In 2024 there were no material changes to the nature of the liquidity risk exposures, how they arise or the Group's objectives, policies and processes for managing them, although the Group continues to refine its internal risk management processes.
19
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
The responsibilities of the Liquidity Risk Management Framework are distributed between different committees and hierarchical levels, including: Board of Directors, Asset and Liability Committee (ALC), Officer in charge of Risk Management, Superintendent of Compliance, Risk Management and Internal Controls and Risk Coordination. These consider the internal and external factors affecting the liquidity of the Group, and a detailed daily monitoring of incoming and outgoing movements of loans and advances to customers, time deposits, savings, Agribusiness Credit Bills (LCA), Real Estate Secured Bonds (LCI), Guaranteed Real Estate Letters (LIG) and demand deposits is performed. Time deposits are analyzed according to the concentration, maturities, renewals, repurchases and new funding.
d.Analyses of financial instruments by remaining contractual term
The table below presents the projected future realizable value of Inter's financial assets and liabilities by contractual term:
03/31/2024
Note Up to 3 months 3 months Up to 1 year Above 1 year Total
Financial assets
Cash and cash equivalents 2,830,310 - - 2,830,310
Amounts due from financial institutions 4,051,287 - - 4,051,287
Compulsory deposits at Central Bank of Brazil 2,925,658 - - 2,925,658
Securities 712,517 189,805 17,264,929 18,167,251
Derivative financial assets 7,392 - - 7,392
Loans and advances to customers 6,411,484 9,160,961 15,286,182 30,858,627
Other assets - - 112,410 112,410
Total 16,938,648 9,350,766 32,663,521 58,952,935
Financial liabilities
Liabilities with financial and similar institutions 8,801,945 1,681,142 - 10,483,087
Liabilities with customers 15,256,399 3,102,886 14,284,159 32,643,444
Securities issued 636,192 5,014,480 2,598,470 8,249,142
Derivative financial liabilities 15 9,195 4,683 13,893
Borrowing and onlending 6,222 75,974 19,824 102,020
Total 24,700,773 9,883,677 16,907,136 51,491,586
20
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
12/31/2023
Note Up to 3 months 3 months Up to 1 year Above 1 year Total
Financial assets
Cash and cash equivalents 4,259,379 - - 4,259,379
Amounts due from financial institutions 3,718,506 - - 3,718,506
Compulsory deposits at Central Bank of Brazil 2,664,415 - - 2,664,415
Securities 412,674 290,149 16,165,289 16,868,112
Derivative financial assets 4,238 - - 4,238
Loans and advances to customers 7,509,850 8,366,848 13,907,603 29,784,301
Other assets - - 109,682 109,682
Total 18,569,062 8,656,997 30,182,574 57,408,633
Financial liabilities
Liabilities with financial and similar institutions 18 7,913,830 1,608,639 - 9,522,469
Liabilities with customers 19 16,873,560 2,335,763 13,442,297 32,651,620
Securities issued 20 970,976 4,068,815 3,055,251 8,095,042
Derivative financial liabilities 11 295 9,686 5,082 15,063
Borrowing and onlending 21 5,283 81,839 20,290 107,412
Total 25,763,944 8,104,742 16,522,920 50,391,606
e.Financial assets and liabilities using a current/non-current classification
The table below represents Group's current financial assets (realized within 12 months of the reporting date), non-current financial assets (realized more than 12 months after the reporting date) and current financial liabilities (it is due to be settled within 12 months of the reporting date) and non-current financial liabilities (is due to be settled more than 12 months after the reporting date):
03/31/2024
Note Current Non-current Total
Assets
Cash and cash equivalents 2,830,310 - 2,830,310
Amounts due from financial institutions 4,051,287 - 4,051,287
Compulsory deposits at Central Bank of Brazil 2,925,658 - 2,925,658
Securities 902,322 17,264,929 18,167,251
Derivative financial assets 7,392 - 7,392
Loans and advances to customers, net of provisions for expected loss 13,706,014 15,120,985 28,826,999
Other assets - 112,410 112,410
Total 24,422,983 32,498,324 56,921,307
Liabilities
Liabilities with financial institutions 10,483,087 - 10,483,087
Liabilities with customers 18,359,285 14,284,159 32,643,444
Securities issued 5,650,672 2,598,470 8,249,142
Derivative financial liabilities 9,210 4,683 13,893
Borrowing and onlending 82,196 19,824 102,020
Total 34,584,450 16,907,136 51,491,586
21
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
12/31/2023
Note Current Non-current Total
Assets
Cash and cash equivalents 4,259,379 - 4,259,379
Amounts due from financial institutions 3,718,506 - 3,718,506
Compulsory deposits at Central Bank of Brazil 2,664,415 - 2,664,415
Securities 702,823 16,165,289 16,868,112
Derivative financial assets 4,238 - 4,238
Loans and advances to customers, net of provisions for expected loss 14,117,647 13,751,812 27,869,459
Other assets - 109,682 109,682
Total 25,467,008 30,026,783 55,493,791
Liabilities
Liabilities with financial institutions 9,522,469 - 9,522,469
Liabilities with customers 19,209,323 13,442,297 32,651,620
Securities issued 5,039,791 3,055,251 8,095,042
Derivative financial liabilities 9,981 5,082 15,063
Borrowing and onlending 87,122 20,290 107,412
Total 33,868,686 16,522,920 50,391,606
f.Market risk
Market risk is the possibility of losses resulting from fluctuations in the fair value of financial instruments held by the Institution and its subsidiaries, including the risks of transactions subject to changes in foreign exchange rates, interest rates, stock prices and commodity prices.
At Inter&Co, market risk management has, among others, the objective of supporting the business areas, establishing processes and implementing tools necessary for the assessment and control of related risks, allowing the measurement and monitoring of risk levels, as defined by Senior Management.
The market risk policy is monitored by the Asset and Liability Committee. Market risk controls allow the analytical assessment of information and are in a constant process of improvements. The Institution and its subsidiaries have improved the internal aspects of risk management and mitigation.
Measurement
Within the risk management process, Inter&Co classifies its operations, including derivative financial instruments, as follows:
•Trading book: considers all operations intended to be traded before their contractual maturity or intended to hedge the trading portfolio and which are not subject to limitations on their negotiability.
•Banking book: considers operations not classified in the trading portfolio, the main characteristic of which is the intention to hold the respective operations until maturity
In line with market practices, Inter&Co manages its risks dynamically, seeking to identify, measure, evaluate, monitor, report, control and mitigate the exposures to market risks of its own positions. One of the methods of assessing the positions subject to market risk is the Value at Risk (VaR) model. The methodology used to calculate the VaR is the parametric model with a confidence level (CL) of 99% and a time horizon (TH) of twenty one days.
22
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
We present below the 21-day VaR of the trading book:
R$ thousand 03/31/2024 12/31/2023
Risk factor
Price index coupons 5,831 2,730
Pre fixed interest rate 464 1,074
Foreign currency coupons 9 665
Foreign currencies 1,407 2,346
Subtotal 7,711 6,815
Diversification effects (correlation) 2,144 3,794
Value-at-Risk 5,567 3,021
We present below the VaR of the banking book:
R$ thousand 03/31/2024 12/31/2023
Risk factor
Price index coupons 597,021 425,156
Interest rate coupons 112,259 108,716
Pre fixed interest rate 21,342 49,019
Foreign currency coupon 27,053 -
Others 535 22,538
Subtotal 758,210 605,429
Diversification effects (correlation) 125,201 164,555
Value-at-Risk 633,009 440,874
g.Sensitivity analysis
To determine the sensitivity of the positions to market movements, a sensitivity analysis was carried out in different scenarios, considering the relevant risk factors in the period analyzed, and using scenarios that would negatively affect our positions, as follows:
•Scenario I: based on market information, shocks were applied and 1 basis point for interest rates and 1% variation for prices (foreign currencies and shares);
•Scenario II: shocks of 25% variation in market curves and prices were determined;
•Scenario III: shocks of 50% variation in market curves and prices were determined.
It should be noted that the impacts reflect a static view of the portfolio and that the dynamism of the market and the composition of the portfolio means that these positions change continuously and do not necessarily reflect the position demonstrated here. The group has a process of continuous monitoring of market risk and, in the event of position/portfolio deterioration, mitigating actions are taken to minimize possible negative effects.
Exposures - R$ thousand
Banking and Trading book Scenarios 03/31/2024
Risk factor Rate variation in scenario 1 Scenario I Rate variation in scenario 2 Scenario II Rate variation in scenario 3 Scenario III
IPCA coupon increase (4,922) increase (632,825) increase (1,172,942)
IGP-M coupon increase (19) - (2,618) increase (5,079)
Pre-fixed rate increase (1,783) increase (438,939) increase (833,884)
TR coupon increase (749) increase (160,770) increase (283,702)
USD coupon increase (577) increase (66,577) increase (120,540)
23
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
Exposures - R$ thousand
Banking and Trading book Scenarios 12/31/2023
Risk factor Rate variation in scenario 1 Scenario I Rate variation in scenario 2 Scenario II Rate variation in scenario 3 Scenario III
IPCA coupon increase (4,737) increase (561,583) increase (1,046,456)
IGP-M coupon increase (16) 0 - increase (549)
Pre-fixed rate increase (1,533) increase (367,626) increase (707,232)
TR coupon increase (800) increase (163,354) increase (289,028)
USD coupon decrease (5) decrease (718) decrease (1,447)
h.Operational risk
Policy
Operational Risk Management aims to identify, evaluate and monitor risks, being defined as the risk of losses resulting from inadequate or failed internal processes, people and systems or external events. This definition includes legal risk, but excludes strategic and reputational risk.
The operational risk events can be classified:
•Internal fraud;
•External fraud;
•Employment practices and workplace safety;
•Clients, products and business practices;
•Damage of physical assets;
•Business disruption and system failures, execution; and
•Delivery and process management.
We adopt the three lines of defense model, the structure and activities of the three lines often varies, depending on the bank's portfolio of products, activities, processes and systems; the bank's size; and its risk management approach. A strong risk culture and good communication among the three lines of defense are important characteristics of good operational risk governance.
Phases of the Management Process
Qualitative Evaluation
The qualitative assessment uses a scale which considers measures for probability and impact, taking into account the vulnerabilities and threats that, combined, determine the level of risk exposure to each event. Identification and verification is performed by in-person monitoring, interviews and workshops with the managers and employees from all operational areas, business partners and business units.
The identified risks are categorized and organized by risk factors.
Quantitative Evaluation
In the quantitative assessment of operational risk, the Group maintains an internal database fed by various sources of information. This contains descriptions and details of operational losses. In the quantitative assessment, information from external sources deemed reliable and relevant to the businesses of the Group may also be used.
Monitoring
An effective risk management process requires a communication and review structure that ensures the correct, effective and timely identification and assessment of the risks. In addition, it also seeks to assure that controls and responses to these risks are implemented.
24
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
Control tests and regular audits intended to verify compliance with applicable policies and standards are performed. The monitoring and review process seeks to verify whether:
•The adopted measures have achieved the intended results;
•The procedures adopted and the information gathered to perform the assessment were appropriate;
•Higher levels of knowledge may have contributed to make better decisions; and
•There is an effective possibility of obtaining information for future assessments.
7.Fair values of financial instruments
a.Financial instruments - Classification and fair values
Financial Instruments are classified into the following categories:
•Amortized cost;
•Fair value through other comprehensive income (FVOCI); and
•Fair value through profit or loss (FVTPL).
The fair value of a financial asset or liability is measured using one of three approaches below, weighting the levels of the fair value hierarchy as follows:
•Level I - instruments with prices traded in the active market;
•Level II - using financial valuation techniques, weighing data and market variables; and
•Level III - uses meaningful variables that are not based on market data.
The following table sets forth the breakdown of financial assets and liabilities according to the accounting classification. It also shows the carrying amounts and fair values of financial assets and liabilities, including their levels in the fair value hierarchy. It does not include information on the fair value of financial assets and liabilities, when the carrying amount is a reasonable approximation of the fair value.
25
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
As of March 31, 2024
Financial assets Level 1 Level 2 Level 3 (*) Fair value Carrying amount
Amortized cost - - 112,410 112,410 39,892,081
Loans and advances to customers, net of provisions for expected loss - - - - 28,826,999
Amounts due from financial institutions - - - - 4,051,287
Deposits at Central Bank of Brazil - - - - 2,925,658
Cash and cash equivalents - - - - 2,830,310
Brazilian government securities - - - - 669,063
Rural product bill - - - - 439,425
Other assets 112,410 112,410 112,410
Debentures - - - - 36,929
Fair value through profit or loss 499,018 1,301,044 - 1,800,062 1,800,062
Bonds and shares issued by non-financial companies - 768,441 - 768,441 768,441
Brazilian government securities 499,018 - - 499,018 499,018
Investment funds quotas - 499,343 - 499,343 499,343
Securities issued by financial institutions - 33,260 - 33,260 33,260
Derivative financial assets - 7,392 - 7,392 7,392
Derivative financial assets - 7,392 - 7,392 7,392
Fair value through other comprehensive income 14,571,711 650,061 - 15,221,772 15,221,772
Brazilian government securities 14,571,711 - - 14,571,711 14,571,711
Bonds and shares issued by non-financial companies - 650,061 - 650,061 650,061
Total 15,070,729 1,958,497 112,410 17,141,636 56,921,307
Financial liabilities Level 1 Level 2 Level 3 (*) Fair value Carrying amount
Amortized cost - - - - 51,477,693
Liabilities with customers - - - - 32,643,444
Liabilities with financial institutions - - - - 10,483,087
Securities issued - - - - 8,249,142
Borrowing and onlending - - - - 102,020
Derivative financial liabilities - 13,893 - 13,893 13,893
Derivative financial liabilities - 13,893 - 13,893 13,893
Total - 13,893 - 13,893 51,491,586
(*) The financial assets classified as "Level 3" consists substantially of amounts relating to the variable portion of the sale of 40% of the subsidiary Inter Digital Corretora e Consultoria de Seguros Ltda. ("Inter Seguros") to Wiz Soluções e Corretagem de Seguros S.A. ("Wiz") on May 8, 2019. The purchase and sale contract included cash consideration of R$45,000 and contingent consideration will be based on the results of Inter Seguros' EBITDA in 2021, 2022, 2023 and 2024.
26
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
As of December 31, 2023
Financial assets Level 1 Level 2 Level 3 (*) Fair value Carrying amount
Amortized cost - - 109,682 109,682 39,810,016
Loans and advances to customers, net of provisions for expected loss - - - - 27,900,543
Cash and cash equivalents - - - - 4,259,379
Amounts due from financial institutions - - - - 3,718,506
Deposits at Central Bank of Brazil - - - - 2,664,415
Brazilian government securities - - - - 665,413
Rural product bill - - - - 459,298
Other assets - - 109,682 109,682 109,682
Debentures - - - - 32,780
Fair value through profit or loss 451,946 1,026,654 - 1,478,600 1,478,600
Bonds and shares issued by non-financial companies 60 629,237 - 629,297 629,297
Securities issued by financial institutions 447,912 - - 447,912 447,912
Investment funds quotas 3,974 354,358 - 358,332 358,332
Brazilian government securities - 43,059 - 43,059 43,059
Derivative financial assets - 4,238 - 4,238 4,238
Derivative financial assets - 4,238 - 4,238 4,238
Fair value through other comprehensive income 13,560,072 671,949 - 14,232,021 14,232,021
Brazilian government securities 13,560,072 - - 13,560,072 13,560,072
Bonds and shares issued by non-financial companies - 671,949 - 671,949 671,949
Total 14,012,018 1,702,841 109,682 15,824,541 55,524,875
Financial liabilities Level 1 Level 2 Level 3 (*) Fair value Carrying amount
Amortized cost - - - - 50,376,543
Liabilities with customers - - - - 32,651,620
Liabilities with financial institutions - - - - 9,522,469
Securities issued - - - - 8,095,042
Borrowing and onlending - - - - 107,412
Derivative financial liabilities - 15,063 - 15,063 15,063
Derivative financial liabilities - 15,063 - 15,063 15,063
Total - 15,063 - 15,063 50,391,606
(*) The financial assets classified as "Level 3" consists substantially of amounts relating to the variable portion of the sale of 40% of the subsidiary Inter Digital Corretora e Consultoria de Seguros Ltda. ("Inter Seguros") to Wiz Soluções e Corretagem de Seguros S.A. ("Wiz") on May 8, 2019. The purchase and sale contract included cash consideration of R$45,000 and contingent consideration will be based on the results of Inter Seguros' EBITDA in 2021, 2022, 2023 and 2024.
27
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
The methodology used for the measurement of financial assets and liabilities classified as "Level 2" (derivative financial instruments and securities) is the discounted present value technique, using the market rates disclosed by ANBIMA - "Brazilian Association of Financial and Capital Market Entities", IBGE - "Brazilian Institute of Geography and Statistics" and B3.
Reconciliation of Level 3 fair value
The following table shows a reconciliation of the opening balances to the closing balances investments categorized as Level 3:
Others assets
Financial assets at fair value through profit or loss
Balance at January 1, 2024 109,682
Total gains or losses (realized / unrealized) 2,728
Balance at March 31, 2024 112,410
During the period ended March 31, 2024, there were no change in the measurement method of financial assets and liabilities that entailed reclassification of financial assets and liabilities among the different levels of the fair value hierarchy.
8.Cash and cash equivalents

03/31/2024
12/31/2023
Cash and cash equivalents in national currency 481,790 941,584
Cash and cash equivalents in foreign currency 367,680 225,308
Reverse repurchase agreements (a) 1,980,840 3,092,487
Total 2,830,310 4,259,379
(a) Refers to operations (substantially interbank deposit investments) whose maturity, on the investment date, was equal to or less than 90 days and present an insignificant risk of change in fair value.
9.Amounts due from financial institutions, net of provisions for expected loss

03/31/2024
12/31/2023
Interbank deposit investments 2,609,001 2,451,736
Loans to financial institutions (a) 1,284,997 1,236,536
Interbank onlending 158,603 31,487
Expected loss (1,313) (1,253)
Total 4,051,287 3,718,506
(a) Refers substantially to the anticipation of receivables.
28
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
10.Securities, net of provisions for expected loss
a.Composition of securities net of expected losses:
03/31/2024 12/31/2023
Fair value through other comprehensive income - FVOCI
Financial treasury bills (LFT) 10,123,475 9,212,930
National treasury notes (NTN) 3,841,327 3,931,671
National treasury bills (LTN) 606,909 415,471
Commercial promissory notes 318,130 214,157
Debentures 226,173 330,705
Certificates of real estate receivables 57,007 104,270
Certificates of agricultural receivables 48,751 22,817
Subtotal 15,221,772 14,232,021
Amortized cost
National treasury notes (NTN) 669,063 665,413
Rural product bill 439,425 459,298
Debentures 36,929 32,780
Subtotal 1,145,417 1,157,491
Fair value through profit or loss - FVTPL
Investment fund quotas 499,502 358,332
Financial treasury bills (LFT) 462,780 420,336
Debentures 314,599 281,566
Certificates of real estate receivables 250,782 182,319
Certificates of agricultural receivables 98,145 64,371
Financial bills 81,480 73,808
Bank deposit certificates 46,307 55,597
National treasury notes (NTN) 36,238 27,576
Agribusiness credit bills (LCA) 8,984 10,684
Real estate credit bills (LCI) 1,109 1,352
Commercial promissory notes 136 2,659
Subtotal 1,800,062 1,478,600
Total 18,167,251 16,868,112
As of March 31, 2024, the expected loss value of securities was R$ (27,262),(December 31, 2023: R$ (33,701))
29
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
b.Breakdown of the carrying amount of securities by maturity, net of losses
03/31/2024
Up to 3 months 3 months to 1 year 1 year to 3 years From 3 to 5 years Above 5 years Book value
Fair value through other comprehensive income - FVOCI - 15,536 1,837,493 5,650,547 7,718,196 15,221,772
Financial treasury bills (LFT) - - 412,414 4,562,720 5,148,341 10,123,475
National treasury notes (NTN) - - 1,234,775 437,563 2,168,989 3,841,327
National treasury bills (LTN) - - - 419,481 187,428 606,909
Commercial promissory notes - - 146,897 70,705 100,528 318,130
Debentures - 15,536 18,355 136,379 55,903 226,173
Certificates of real estate receivables - - - - 57,007 57,007
Certificates of agricultural receivables - - 25,052 23,699 - 48,751
Amortized cost 136,293 126,443 199,185 14,433 669,063 1,145,417
National treasury notes (NTN) - - - - 669,063 669,063
Rural product bill 115,685 126,443 182,864 14,433 - 439,425
Debentures 20,608 - 16,321 - - 36,929
Fair value through profit or loss - FVTPL 576,224 47,826 476,568 336,701 362,743 1,800,062
Investment fund quotas 493,814 1,987 - 3,701 - 499,502
Financial treasury bills (LFT) 50,304 21,574 367,944 1,472 21,486 462,780
Debentures 7,665 1,760 11,822 234,345 59,007 314,599
Certificates of real estate receivables 46 725 2,080 23,487 224,444 250,782
Certificates of agricultural receivables 52 132 29,147 41,138 27,676 98,145
Financial bills 11,087 12,850 27,833 21,204 8,506 81,480
Bank deposit certificates 12,820 7,105 9,425 9,922 7,035 46,307
National treasury notes (NTN) - 481 21,902 - 13,855 36,238
Agribusiness credit bills (LCA) 351 900 6,028 971 734 8,984
Real estate credit bills (LCI) 85 312 251 461 - 1,109
Commercial promissory notes - - 136 - - 136
Total 712,517 189,805 2,513,246 6,001,681 8,750,002 18,167,251
30
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
12/31/2023
Up to 3 months 3 months to 1 year 1 year to 3 years From 3 to 5 years Above 5 years Book value
Fair value through other comprehensive income - FVOCI - 22,176 478,209 4,389,513 9,342,123 14,232,021
Financial treasury bills (LFT) - - 135,277 2,478,757 6,598,896 9,212,930
National treasury notes (NTN) - - 177,973 1,288,316 2,465,382 3,931,671
National treasury bills (LTN) - - - 415,471 - 415,471
Debentures - 22,176 19,968 114,986 173,575 330,705
Commercial promissory notes - - 144,991 69,166 - 214,157
Certificates of real estate receivables - - - - 104,270 104,270
Certificates of agricultural receivables - - - 22,817 - 22,817
Amortized cost 44,649 212,869 218,201 16,359 665,413 1,157,491
National treasury notes (NTN) - - - - 665,413 665,413
Rural product bill 44,649 192,874 205,416 16,359 - 459,298
Debentures - 19,995 12,785 - - 32,780
Fair value through profit or loss - FVTPL 368,025 55,104 422,135 218,214 415,122 1,478,600
Financial treasury bills (LFT) 4,065 671 320,737 86,496 8,367 420,336
Investment fund quotas 358,332 - - - - 358,332
Debentures 3 5,974 25,383 18,422 231,784 281,566
Certificates of real estate receivables - 966 2,138 62,714 116,501 182,319
Financial bills 939 26,049 21,305 16,935 8,580 73,808
Certificates of agricultural receivables - 17 3,256 26,999 34,099 64,371
Bank deposit certificates 4,117 14,734 24,215 4,863 7,668 55,597
National treasury notes (NTN) - - 19,942 - 7,634 27,576
Agribusiness credit bills (LCA) 450 3,932 4,368 1,445 489 10,684
Commercial promissory notes - 2,659 - - - 2,659
Real estate credit bills (LCI) 119 102 791 340 - 1,352
Total 412,674 290,149 1,118,545 4,624,086 10,422,658 16,868,112
11.Derivative financial instruments
Inter engages in operations involving financial derivative instruments in the institution's risk management, as well as to meet the demands of its customers. These operations involve swaps, indices, and terms derivatives.
a.Derivative financial instruments - adjustment to fair value by maturity
Notional Amortized cost Fair value Up to 3 months 3 months to 1 year 1 year to 3 years Above 3 years 03/31/2024 12/31/2023
Assets
Forward derivatives 6,819 7,392 7,392 6,822 570 - - 7,392 4,213
Future derivatives 26,463 - - - - - - - 25
Total assets 33,282 7,392 7,392 6,822 570 - - 7,392 4,238
Liabilities
Swap derivatives 40,500 (13,811) (13,818) - (9,135) (4,683) - (13,818) (14,665)
Forward derivatives 4,830 (75) (75) (15) (60) - - (75) (398)
Future derivatives 7,466,784 - - - - - - - -
Total liabilities 7,512,114 (13,886) (13,893) (15) (9,195) (4,683) - (13,893) (15,063)
Net effect 7,545,396 (6,494) (6,501) 6,807 (8,625) (4,683) - (6,501) (10,825)
31
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
b.Forward, future and swap contracts - notional value
Below is the reference value of all derivatives by maturity:
Up to 3 months 3 months to 1 year 1 year to 3 years Above 3 years 03/31/2024 12/31/2023
Long position 30,269 5,739 - - 36,008 146,040
Forward derivatives 6,396 3,149 - - 9,545 24,223
Future derivatives 23,873 2,590 - - 26,463 121,817
Short position 1,154,388 1,331,813 2,403,084 2,620,103 7,509,388 6,380,611
Swap derivatives - 27,000 13,500 - 40,500 40,500
Forward derivatives - 2,103 - - 2,103 2,103
Future derivatives 1,154,388 1,302,710 2,389,584 2,620,103 7,466,785 6,338,008
Total 1,184,657 1,337,552 2,403,084 2,620,103 7,545,396 6,526,651
Swap derivatives: The swaps were carried out with the purpose of mitigating the market risk associated with the mismatch between the indexes of the mortgage loan portfolio and the indexes of the funding portfolio. As of March 31, 2024, Inter had swap contracts in which one leg is indexed to CDI and the other leg is indexed IGP-M, with deposit of guarantee margin and recognized at their fair value.
Forward derivatives: Forward derivatives were carried out both to mitigate the market risks arising from Inter's exposure and to meet specific customer demands. Forward derivatives consider the purchase or sale of a certain asset based on a previously agreed price, with settlement at a future date.
Futures derivatives: Futures derivatives were entered into with the aim of mitigating (i) the risks arising from exposures linked to the exchange rate, including investments abroad, as well as (ii) the risks arising from the mismatch of interest rates on asset positions and funding rates.
Transactions involving derivative financial instruments (futures, currency forwards and swaps) are held in custody at B3 S.A. - Brasil, Bolsa, Balcão.
c.Hedge accounting - exposure
Inter applies hedge accounting for certain of its loans and advances to customers. Inter's swaps are classified as hedging instruments in a Fair Value Hedge hedging the risks related to a portion of the real estate portfolio which is indexed to inflation rates. The hedged contracts from the real estate portfolio are measured at fair value in relation to the specific risk of being hedged.
Inter uses financial instruments to mitigate the impact of exchange rate variations on foreign investments in its accounting. Effective gains and losses on these instruments are recognized in a specific equity account in other comprehensive income, net of tax effects, and are only transferred to profit or loss in the event of hedge ineffectiveness or partial/total sale of the operation abroad. Ineffective hedge losses are recognized directly in profit or loss.
32
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
03/31/2024 12/31/2023
Hedge instruments 6,696,623 5,811,750
Future DI (a) 4,202,501 3,755,670
IPCA (c) 2,117,331 1,728,330
Future dollar (b) 305,002 256,589
Swap (c) 71,789 71,161
Hedge object 6,724,860 5,826,436
Loans (a) 4,218,944 3,761,467
Investment abroad (b) 303,660 262,947
Real estate loans (c) 2,202,256 1,802,022
(a) Refers to loan portfolios, including advance FGTS withdrawals and payroll loans;
(b) Used to protect investments in subsidiaries abroad.
(c) Refers to the real estate loan portfolio
12.Loans and advances to customers, net of provisions for expected loss
a.Breakdown of balance
03/31/2024 12/31/2023
Credit card 10,111,845 32.76 % 9,461,277 31.77 %
Real estate loans 9,124,375 29.57 % 8,583,568 28.82 %
Personal loans 7,437,795 24.10 % 7,138,744 23.97 %
Business loans 3,376,688 10.94 % 3,855,754 12.95 %
Agribusiness loans 807,924 2.62 % 744,958 2.50 %
Total 30,858,627 100.00 % 29,784,301 100.00 %
Provision for expected loss (2,031,628) (1,883,758)
Net balance 28,826,999 27,900,543
b.Concentration of the portfolio
03/31/2024 12/31/2023
Balance % on Loans and advances to customers Balance % on Loans and advances to customers
Largest debtor 377,380 1.22 % 339,130 1.14 %
10 largest debtors 1,382,094 4.48 % 1,520,664 5.11 %
20 largest debtors 1,939,755 6.29 % 2,140,098 7.19 %
50 largest debtors 2,856,778 9.26 % 3,225,766 10.83 %
100 largest debtors 3,647,139 11.82 % 4,147,360 13.92 %
c.Breakdown by maturity
03/31/2024 12/31/2023
Overdue by 1 day or more 2,989,093 3,599,256
To fall due in up to 3 months 3,422,391 3,910,594
To fall due between 3 to 12 months 9,160,961 8,366,848
To fall due in more than 12 months 15,286,182 13,907,603
Total 30,858,627 29,784,301
33
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
d.Concentration by economic sector
03/31/2024 12/31/2023
Financial activities 1,872,672 1,708,407
Construction 1,830,896 1,885,772
Industries 1,447,383 1,396,046
Trade 1,390,343 1,490,290
Administrative activities 1,097,119 1,529,880
Agriculture 174,469 150,896
Other segments (a) 1,092,090 1,433,467
Business clients 8,904,972 9,594,758
Individual clients 21,953,655 20,189,543
Total 30,858,627 29,784,301
(a) Mainly refers to real estate activities, communication services, transport, storage and mailing.
34
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
e.Analysis of changes in loans and advances to customers by stage:
Stage 1 Opening balance at 01/01/2024 Transfer to
Stage 2 		Transfer to
Stage 3 		Transfer from
Stage 2 		Transfer from
Stage 3 		Settled contracts Write-off for loss Origination/ receipt Ending balance at
03/31/2024 		Ending balance at
12/31/2023
Credit card 8,073,708 (343,168) - 22,750 - (964,105) - 1,783,330 8,572,515 8,073,708
Real estate loans 7,931,469 (396,721) - 208,916 - (248,099) - 844,068 8,339,633 7,931,469
Personal loans 6,533,589 (257,010) (322) 94,104 64 (412,417) - 762,556 6,720,564 6,533,589
Business loans 3,829,413 (29,702) - 8,081 - (2,260,773) - 1,791,501 3,338,520 3,829,413
Agribusiness loans 738,126 - - - - (71,855) - 134,799 801,070 738,126
Total 27,106,305 (1,026,601) (322) 333,851 64 (3,957,249) - 5,316,254 27,772,302 27,106,305
Stage 2 Opening balance at 01/01/2024 Transfer to
Stage 1 		Transfer to
Stage 3 		Transfer from
Stage 1 		Transfer from
Stage 3 		Settled contracts Write-off for loss Origination/ receipt Ending balance at
03/31/2024 		Ending balance at
12/31/2023
Credit card 405,996 (22,750) (509,535) 343,168 - (378,397) - 612,111 450,593 405,996
Real estate loans 515,047 (208,916) (149,580) 396,721 94,911 (22,077) - (5,857) 620,249 515,047
Personal loans 317,462 (94,104) (112,766) 257,010 31,810 (117,402) - 154,438 436,448 317,462
Business loans 10,200 (8,081) (15,224) 29,702 389 (11) - (479) 16,496 10,200
Agribusiness loans 3,441 - (3,463) - - - - 22 - 3,441
Total 1,252,146 (333,851) (790,568) 1,026,601 127,110 (517,887) - 760,235 1,523,786 1,252,146
Stage 3 Opening balance at 01/01/2024 Transfer to
Stage 1 		Transfer to
Stage 2 		Transfer from
Stage 1 		Transfer from
Stage 2 		Settled contracts Write-off for loss Origination/ receipt Ending balance at
03/31/2024 		Ending balance at
12/31/2023
Credit card 981,573 - - - 509,535 (140,219) (256,871) (5,281) 1,088,737 981,573
Real estate loans 137,052 - (94,911) - 149,580 (20,264) (5,285) (1,679) 164,493 137,052
Personal loans 287,693 (64) (31,810) 322 112,766 (43,521) (56,590) 11,987 280,783 287,693
Business loans 16,141 - (389) - 15,224 (1,887) (5,186) (2,231) 21,672 16,141
Agribusiness loans 3,391 - - - 3,463 - - - 6,854 3,391
Total 1,425,850 (64) (127,110) 322 790,568 (205,891) (323,932) 2,796 1,562,539 1,425,850
Consolidated Opening balance at 01/01/2024 Settled contracts Write-off for loss Origination/ receipt Ending balance at
03/31/2024 		Ending balance at
12/31/2023
Credit card 9,461,277 (1,482,721) (256,871) 2,390,160 10,111,845 9,461,277
Real estate loans 8,583,568 (290,440) (5,285) 836,532 9,124,375 8,583,568
Personal loans 7,138,744 (573,340) (56,590) 928,981 7,437,795 7,138,744
Business loans 3,855,754 (2,262,671) (5,186) 1,788,791 3,376,688 3,855,754
Agribusiness loans 744,958 (71,855) - 134,821 807,924 744,958
Total 29,784,301 (4,681,027) (323,932) 6,079,285 30,858,627 29,784,301
35
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
f.Analysis of changes in expected losses by stage
Stage 1 Opening balance at 01/01/2024 Transfer to
Stage 2 		Transfer to
Stage 3 		Transfer from
Stage 2 		Transfer from
Stage 3 		Write-off for loss Constitution/ (Reversal) Ending balance at 03/31/2024 Ending balance at 12/31/2023
Credit card 408,412 (173,492) - 5,190 - - 138,201 378,311 408,412
Real estate loans 49,930 (36,492) - 6,422 - - 35,001 54,861 49,930
Personal loans 106,635 (55,716) (278) 3,295 5 - 43,537 97,478 106,635
Business loans 12,859 (2,910) - 40 - - 969 10,958 12,859
Agribusiness loans 11,122 - - - - - 941 12,063 11,122
Total 588,958 (268,610) (278) 14,947 5 - 218,649 553,671 588,958
Stage 2 Opening balance at 01/01/2024 Transfer to
Stage 1 		Transfer to
Stage 3 		Transfer from
Stage 1 		Transfer from
Stage 3 		Write-off for loss Constitution/ (Reversal) Ending balance at 03/31/2024 Ending balance at 12/31/2023
Credit card 225,771 (5,190) (344,300) 173,492 - - 210,514 260,287 225,771
Real estate loans 39,710 (6,422) (31,584) 36,492 7,766 - 672 46,634 39,710
Personal loans 89,687 (3,295) (72,945) 55,716 4,562 - 46,111 119,836 89,687
Business loans 789 (40) (2,658) 2,910 29 - 1,032 2,062 789
Agribusiness loans 947 - (1,661) - - - 714 - 947
Total 356,904 (14,947) (453,148) 268,610 12,357 - 259,043 428,819 356,904
Stage 3 Opening balance at 01/01/2024 Transfer to
Stage 1 		Transfer to
Stage 2 		Transfer from
Stage 1 		Transfer from
Stage 2 		Write-off for loss Constitution/ (Reversal) Ending balance at 03/31/2024 Ending balance at 12/31/2023
Credit card 708,986 - - - 344,300 (256,871) 9,606 806,021 708,986
Real estate loans 44,092 - (7,766) - 31,584 (5,285) (9,258) 53,367 44,092
Personal loans 208,043 (5) (4,562) 278 72,945 (56,590) (12,680) 207,429 208,043
Business loans 6,231 - (29) - 2,658 (5,186) 2,302 5,976 6,231
Agribusiness loans 1,628 - - - 1,661 - 113 3,402 1,628
Total 968,980 (5) (12,357) 278 453,148 (323,932) (9,917) 1,076,195 968,980
Consolidated Opening balance at 01/01/2024 Write-off for loss Constitution/ (Reversal) (a) Ending balance at 3/31/2024 Ending balance at 12/31/2023
Credit card 1,343,169 (256,871) 358,321 1,444,619 1,343,169
Real estate loans 133,732 (5,285) 26,415 154,862 133,732
Personal loans 404,365 (56,590) 76,968 424,743 404,365
Business loans 19,879 (5,186) 4,303 18,996 19,879
Agribusiness loans 13,697 - 1,768 15,465 13,697
Total 1,914,842 (323,932) 467,775 2,058,685 1,914,842
(a) The movement includes the values of provisions for commitments as shown in note 23.
36
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
13.Non-current assets held for sale
The balance of non-current assets held for sale comprises assets originally received as collateral for loans and advances to customers, which were repossessed. The amount of real state held for sale on March 31, 2024 was R$ 173,712 (December 31, 2023: R$ 174,355).
14.Equity accounted investees
a.Equity:
% in share capital Equity accounted investees
Investees 03/31/2024 12/31/2023 03/31/2024 12/31/2023
Granito Soluções em Pagamento S.A. (a) 50.00 % 50.00 % 78,010 80,233
Total 78,010 80,233
Other investments 11,559 10,401
Total 89,569 90,634
b.Loss from equity interests in associates:
Investees 03/31/2024 03/31/2023
Granito Soluções em Pagamento S.A. (2,223) (3,061)
Total (2,223) (3,061)
15.Property and equipment
a.Breakdown of property and equipment:
03/31/2024
Annual depreciation rate Historical cost Accumulated depreciation Carrying Amount
Right-of-use assets - buildings and equipment 4% to 10% 129,593 (9,288) 120,305
Buildings 4% 39,088 (11,776) 27,312
Furniture and equipment 10% 45,101 (11,146) 33,955
Data processing systems 20% 16,912 (13,428) 3,484
Construction in progress - 2,020 - 2,020
Total 232,714 (45,638) 187,076
12/31/2023
Annual depreciation rate Historical cost Accumulated depreciation Carrying Amount
Right-of-use assets - buildings and equipment 4% to 10% 117,873 (9,193) 108,680
Buildings 4% 39,062 (10,896) 28,166
Furniture and equipment 10% 35,508 (10,370) 25,138
Data processing systems 20% 16,907 (13,364) 3,543
Construction in progress - 2,020 - 2,020
Total 211,370 (43,823) 167,547
37
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
b.Changes in property and equipment:

Balance at
12/31/2023 		Addition Transfer Write-offs Exchange rate changes Balance at
03/31/2024
Historical cost
Buildings 39,062 26 - - - 39,088
Furniture and equipment 35,508 9,654 - - (61) 45,101
Data processing systems 16,907 5 - - - 16,912
Construction in progress 2,020 - - - - 2,020
Total 93,497 9,685 - - (61) 103,121
Accumulated depreciation
Buildings (10,896) (880) - - - (11,776)
Furniture and equipment (10,370) (776) - - - (11,146)
Data processing systems (13,364) (64) - - - (13,428)
Total (34,630) (1,720) - - - (36,350)
Total 58,867 7,965 - - (61) 66,771
Balance at 12/31/2022 Addition Business Combination Transfer Write-offs Balance at 03/31/2023
Historical cost
Buildings 37,447 685 - 11 - 38,143
Furniture and equipment 23,601 1,913 - (11) (149) 25,075
Data processing systems 15,636 21 - - - 15,657
Construction in progress 1,794 85 - - - 1,879
Total 78,478 2,704 - - (149) 80,754
Accumulated depreciation
Buildings (25,149) (1,492) - - (26,641)
Furniture and equipment (2,069) (117) - 303 99 (1,645)
Data processing systems (11) (60) - (303) 3 (371)
Total (27,229) (1,669) - - 102 (28,657)
Total 51,249 1,035 - - (47) 52,097
c. Right-of-use assets
Buildings and equipment
Balance at January 1, 2024 108,680
Depreciation charge for the year (95)
Updates 11,720
Balance at March 31, 2024 120,305
Buildings and equipment
Balance at January 1, 2023 136,771
Additions to right-of-use assets 3,425
Depreciation charge for the year (1,577)
Lease termination of non-renewed contracts/write-offs (29,939)
Balance at December 31, 2023 108,680
38
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
16.Intangible assets
a.Breakdown of intangible assets
03/31/2024 12/31/2023
Annual amortization rate Historical cost (Accumulated amortization) Carrying
Amount 		Historical cost (Accumulated amortization) Carrying
Amount
Development costs 20% 371,045 (134,746) 236,299 360,818 (119,107) 241,711
Intangible assets in progress - 339,088 - 339,088 288,045 - 288,045
Software 17% 686,898 (307,973) 378,925 457,210 (283,993) 173,217
Customer portfolio 20% 13,965 (7,835) 6,130 13,965 (7,369) 6,596
Goodwill - 635,735 - 635,735 635,735 - 635,735
Total 2,046,731 (450,554) 1,596,177 1,755,773 (410,469) 1,345,304
b.Changes in intangible assets
12/31/2023 Addition Write-offs Transfers Business Combination Amortization 03/31/2024
Development costs 241,711 - - 10,227 - (15,639) 236,299
Intangible assets in progress 288,045 66,078 (6,343) (8,692) - - 339,088
Software 173,217 231,449 (226) (1,535) - (23,980) 378,925
Customer portfolio 6,596 - - - - (466) 6,130
Goodwill 635,735 - - - - - 635,735
Total 1,345,304 297,527 (6,569) - - (40,085) 1,596,177
12/31/2022 Addition Write-offs Transfers Business Combination Amortization 03/31/2023
Development costs 185,565 - - 33,680 - (25,887) 193,358
Intangible assets in progress 279,675 44,588 - (35,975) - - 288,288
Software 132,217 23,195 - 2,295 - (8,704) 149,003
Customer portfolio 8,376 - - - - (380) 7,996
Goodwill 632,796 - - - 2,982 - 635,778
Total 1,238,629 67,783 - - 2,982 (34,971) 1,274,423
39
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
17.Other assets

03/31/2024
12/31/2023
Recoverable taxes 449,950 327,585
Prepaid expenses (a) 412,723 351,627
Commissions and bonus receivable (b) 284,337 226,520
Premium or discount on transfer of financial assets 223,606 189,019
Pending settlements (c) 209,064 148,613
Sundry debtors (d) 166,115 171,143
Amount receivable from the sale of investments 112,410 109,682
Unbilled services provided 67,119 55,659
Agreements on sales of properties receivable 48,964 45,961
Dividends receivable 37,796 -
Advances to third parties 26,087 29,690
Early settlement of credit operations 22,946 79,278
Others (e) 547,910 390,452
Total 2,609,027 2,125,229
(a) Refer substantially to the cost of acquisition of digital account customers and expenses on portability to process;
(b) Refers mainly to bonus receivable from the commercial agreement signed with Mastercard, Liberty and Sompo;
(c) Pending settlements: mainly refers to settlement balances receivable from B3 and the transshipment of weekend settlements into the credit card product.
(d) Refers mainly to portability amounts to be processed, credit card amounts to be processed, negotiation and intermediation of amounts and debtors by judicial deposit. and;
(e) Previously presented as "Foreign Exchange Operations" and "Other Securities".
18.Liabilities with financial institutions

03/31/2024
12/31/2023
Payables with credit card network 7,642,608 6,801,035
Interbank deposits 1,681,142 1,647,866
Securities sold under agreements to repurchase 1,107,833 1,011,092
Others 51,504 62,476
Total 10,483,087 9,522,469
19.Liabilities with customers

03/31/2024
12/31/2023
Time deposits 29,169,019 28,158,459
Demand deposits 1,593,427 2,572,536
Savings deposits 1,549,652 1,540,604
Creditors by resources to release 331,346 380,021
Total 32,643,444 32,651,620
40
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
20.Securities issued

03/31/2024
03/31/2023
Real estate credit bills 7,937,181 7,898,500
Financial Bills 171,273 147,876
Agribusiness credit bills 140,688 48,666
Total 8,249,142 8,095,042
21.Borrowing and onlending

03/31/2024
12/31/2023
Onlending obligations - Tesouro Funcafé (a) 75,973 81,838
Onlending obligations - Caixa Econômica Federal (b) 19,825 20,291
Onlending obligations - BNDES (c) 6,222 5,283
Total 102,020 107,412
(a) Refers to rural credit operations with Funcafé (at a fixed rate of 8% p.a.);
(b) Refers to on-lending operations for real estate loans taken out with Caixa Econômica Federal (at rates of between 4.5% and 6% p.a.; and
(c) Refers to Working Capital operations with BNDES (at a fixed rate of up to 6.87% p.a.).
22.Tax liabilities

03/31/2024
12/31/2023
Income tax and social contribution 360,850 287,978
PIS/COFINS 31,367 27,717
INSS/FGTS 14,850 19,392
Others 32,059 28,175
Total 439,126 363,262
23.Provisions and contingent liabilities

03/31/2024
12/31/2023
Provision for legal and administrative proceedings 42,946 39,368
Provision for expected credit losses on loan commitments (a) 27,057 31,084
Total 70,003 70,452
(a) Inter recognizes expected losses for financial assets on loan commitments that include both a used component and an unused loan commitment component. To the extent that the combined value of expected credit losses exceeds the gross carrying amount of the financial asset, the remaining balance is presented as a provision.
a.Provisions
The Group's legal entities, in the normal course of their activities, are parties to tax, social security, labor and civil lawsuits. The respective provisions were made taking into account the laws in force, the opinion of legal advisors, the nature and complexity of the cases, case law, past loss experience and other relevant criteria that allow the most adequate estimate.
i.Labor lawsuits
These are lawsuits filed seeking to obtain indemnities of a labor nature. Amounts provisioned are related to processes in which alleged labor rights are discussed, such as overtime and salary equalization. On an individual basis, amounts provided for labor lawsuits are not significant.
41
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
ii.Civil lawsuits
The majority of lawsuits refer to indemnities for material and moral damages related to the Group's products, such as payroll deductible loans, in addition to declaratory and remedial actions, compliance with the limit of a 30% deduction from a borrower's salary, presentation of documents and adjustment actions.
Changes in provisions
Labor Civil Total
Balance at December 31, 2023 5,982 33,386 39,368
Constitution/increase in provision 1,094 8,440 9,534
Payments (485) (5,471) (5,956)
Balance at March 31, 2024 6,591 36,355 42,946
Balance at December 31, 2022 3,788 24,330 28,118
Constitution/increase in provision 3,429 35,126 38,555
Payments (1,235) (26,070) (27,305)
Balance at December 31, 2023 5,982 33,386 39,368
b.Contingent tax liabilities classified as possible losses
The main proceedings with this classification are:
i.Income tax and social contribution on net income - IRPJ and CSLL
On August 30, 2013, a tax assessment notice was issued (referring to some expenses considered as non-deductible) requiring the payment of amounts of income tax and social contribution related to the calendar years 2008 to 2009. As of March 31, 2024, these amounted to R$29,347 (R$33,390 as of December 31, 2023).
ii.COFINS
The Company is discussing its COFINS obligations from 1999 to 2008 in court, due to the Federal Revenue Service's understanding that financial revenues should be included in the calculation basis of this contribution. Inter has a Federal Supreme Court decision, dated December 19, 2005, granting the right to collect COFINS based only on the revenue from services rendered, instead of the total revenue that would include financial revenues.
In 2005, Inter obtained a favorable final and unappealable decision from the Federal Supreme Court, granting it the right to pay COFINS based only on the revenue from services rendered, instead of the total revenue that would include financial revenues.
During the period from 1999 to 2006, Inter made judicial deposits and/or made the payment of the obligation. In 2006, through a favorable decision by the Supreme Federal Court and the express consent of the Federal Revenue Service, Inter's judicial deposit was released. Additionally, the authorization to use the credits, for amounts previously overpaid, against current obligations, was homologated without challenge by the Federal Revenue Service on May 11, 2006. Subsequently, the Federal Revenue Service challenged the procedures adopted by Inter, applying the understanding that financial revenues should be included in the COFINS calculation basis.
After the enactment of Law 12.973/14, Inter modified its procedures to include financial revenues in the COFINS calculation basis and, therefore, all the taxable events involved in Inter's discussions are prior to this law.
42
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
Currently, the application of the res judicial (final and unappealable ruling) is being discussed in a lawsuit that ensured Inter the right not to pay COFINS on financial revenues.
Process type - COFINS 03/31/2024 12/31/2023
Action for the annulment of a tax debt 39,981 39,651
Infraction notice 24,108 24,132
Clearing Statement 1,277 1,261
Total 65,366 65,044
24.Other liabilities

03/31/2024
12/31/2023
Payments to be processed (a) 1,108,782 1,150,536
Lease liabilities (Note 24.a) 132,265 120,395
Pending settlements (b) 120,125 118,307
Social and statutory provisions (c) 108,102 139,752
Agreements 50,292 27,979
Contract liabilities (d) 40,890 41,785
Other liabilities (e) 397,027 298,494
Total 1,957,483 1,897,248
(a) The balance is substantially composed of: credit operation installments to be transferred, payment orders to be settled, suppliers to be paid, liabilities from business combination and fees to be paid;
(b) Refer to customer operations intended for carrying out business with fixed income securities, shares, commodities and financial assets, which will be settled within a maximum period of D+5;
(c) Previously presented as "Provisions for salaries, vacations and other labor charges";
(d) The balance consists of amounts received, not yet recognized in the income statement arising from the exclusive contract for insurance products signed between the subsidiary Inter Digital Corretora and Consultoria de Seguros Ltda. ("Inter Seguros") and Liberty Seguros.
(e) Includes obligations for right of use, as per explanatory note 37.
a.Lease liabilities
The changes in lease liabilities as of March 31, 2024 and year ended December 31, 2023 are as follows:
Balance at January 1, 2024 120,395
New contracts -
Payments (10,045)
Accrued interest 21,915
Ending balance at March 31, 2024 132,265
Balance at January 1, 2023 146,705
New contracts 3,460
Payments (37,678)
Accrued interest 7,908
Ending balance at December 31, 2023 120,395
43
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
Lease maturity
The maturity of the lease liabilities as of March 31, 2024 and year ended December 31, 2023 is as follows:
03/31/2024 12/31/2023
Up to 1 year 4,678 6,016
From 1 year to 5 years 13,945 10,431
Above 5 years 113,642 103,948
Total 132,265 120,395
25.Equity
a.Share capita
Date Class A Class B Total

03/31/2024 		321,953,435 117,037,105 438,990,540
12/31/2023 285,153,435 117,037,105 402,190,540
During 2023, we issued a total of 317,394 new Class A common shares to the beneficiaries of our incentive plans. We have also transferred the shares we held in treasury to the beneficiaries of our incentive plans. On December 31, 2023, we had a total of 321,953,435 Class A common shares and 117,037,105 issued as class B shares.
At March 31, 2024, Inter & Co, Inc.'s authorized share capital is US$50,000 divided into 20,000,000,000 shares with par value of US$0.0000025 each, of which (i) 10,000,000,000 class A shares, (ii) 5,000,000,000 class B shares and (iii) 5,000,000,000 shares with rights designated by the Company's Board of Directors. The share capital comprising shares issued refers to the authorized capital. The paid-up share capital of Inter & Co. Inc was R$13 at March 31, 2024 (December 31, 2023: R$13).
On January 16, 2024, Inter&Co announced the beginning of the public offering of 36,800,000 (thirty-six million eight hundred thousand) class A common shares. The offering was priced on January 18, 2024 at R$21.74 (US$ 4.40) per share and the final settlement of the offer occurred on February 20, 2024, resulting in a gross funding of R$820,503 and an equity securities issuance cost of R$ (38,466).
b.Reserves
As of March 31, 2024, the reserves amounted to R$9,116,496 (December 31, 2023: R$8,147,285).
c.Other comprehensive income
As of March 31, 2024, Inter & Co, Inc's accumulated other comprehensive income in equity amounted to R$(711,252), (December 31, 2023: R$(675,488)), which comprises the fair value of financial assets at FVOCI and exchange rate change adjustments of subsidiary abroad and taxes.
d.Dividends and interest on equity
As of March 31, 2024, and for the year ended December 31, 2023, Inter & Co, Inc. did not announce the payment of dividends to its shareholders. As of March 31, 2024, Inter Food and Asset Gestão paid interest on equity/dividends to non-controlling shareholders in the amounts of R$1,396 and R$875. In the same period, Banco Inter and Marketplace made dividend payments in the amount of R$125,570 and R$433,752 to controlling shareholders.
In the year ended December 31, 2023, Banco Inter and Inter Holding distributed R$50,000 and R$25,781 in interest on equity to controlling shareholders. Inter Food paid dividends in the amount of R$23,600 to its non-controlling shareholders.
44
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
Company 03/31/2024 12/31/2023
Marketplace (a) 433,752 -
Banco Inter (b) 125,570 50,000
Inter Holding Fin (c) - 25,781
Inter Food (d) 1,396 23,600
Inter Digital (d) 875 -
Total 561,593 99,381
(a) Amount paid to the controlling company Banco Inter;
(b) Amount paid to the controlling company Inter Holding;
(c) Amount paid to the controlling company Inter & Co, inc.;
(d) Amount paid to non-controlling parties.
e.Basic and diluted earnings (loss) per share
Basic and diluted earnings/(loss) per share is as follows:
03/31/2024 03/31/2023
Profit (loss) attributable to Owners of the company (In thousands of Reais) 182,793 11,405
Average number of shares outstanding 425,997,486 401,558,541
Basic earnings (loss) per share (R$) 0.43 0.03
Diluted earnings (loss) per share (R$) 0.43 0.03
Basic and diluted earnings (loss) per share are presented based on the aggregate of the two classes, A and B, and are calculated by dividing the profit (loss) attributable to the parent company by the weighted average number of shares of each class outstanding in the years.
On March 31, 2024, Inter&Co reported dilutive effects for the purpose of calculating diluted earnings per share. These effects were due to shares granted under share-based payment plans, with a weighted average quantity of 2,488.947.
f.Non-controlling interest
As of March 31, 2024, the balance of non-controlling interests is R$145,978 (December 31, 2023: R$124,881).
g.Reflex reserve
As of March 31, 2024, the reserve reflex is R$8,007 (December 31, 2023: R$44,217). The reflex reserve is mainly composed by equity-settled share-based payment from Banco Inter.
h.Treasury shares
As of March 31, 2024, the treasury shares is R$(12,783), consisting of 125,325 class A shares.
45
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
26.Interest income
03/31/2024 03/31/2023
Interest income
Credit card 352,400 334,187
Personal loans 275,126 208,200
Real estate loans 296,201 215,670
Business loans 124,639 125,875
Amounts due from financial institutions 117,429 109,481
Prepayment of receivables (a) 59,662 -
Others (7,926) 19,514
Total 1,217,531 1,012,927
Interest expenses
Term deposits (432,673) (362,910)
Funding in the open market (b) (248,176) (250,263)
Financial institutions deposits (42,892) (34,960)
Saving (23,453) (22,812)
Others (15,053) (1,826)
Total (762,247) (672,771)
(a) Previously presented in the line of "Loans and advances to customers".
(b) Previously presented in the lines of "Securities issued" and "Securities acquired with agreements to resell".
27.Income from securities and derivatives
03/31/2024 03/31/2023
Income from securities (a) 446,719 370,924
Fair value through other comprehensive income 380,392 288,695
Fair value through profit or loss 49,226 39,277
Amortized cost 17,101 42,952
Income from Derivatives (a) 68,662 482
Future dolar contracts 3,594 13,826
Forward contracts (1,212) (180)
Futures contracts and swaps (b) 66,280 (13,164)
Total 515,381 371,406
(a) In 2023, management chose to change the form of disclosure of the explanatory note for the results of securities and derivatives for better presentation, with this, the "Results of securities" that were presented in explanatory note 10, came to be combined with the result of derivatives.
(b) For the period ended March 31, 2024, the fair value adjustment of the hedge object offset the effects of the result of derivatives subject to Hedge Accounting.
46
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
28.Net revenues from services and commissions
03/31/2024 03/31/2023
Interchange (a) 241,891 174,929
Commission and brokerage fees (b) 146,067 132,652
Banking and credit operations (d) 25,838 14,541
Investments (c) 28,732 20,220
Other 25,280 7,279
Cashback expenses (e) (63,382) (67,268)
Inter Loop (f) (30,086) -
Revenues from services and commissions 374,340 282,353
(a) Refers to card operations.
(b) Previously presented as "Commissions".
(c) Previously presented in the lines "Asset management fees" and "Securities placement, custody and brokerage".
(d) Previously presented as "Income from bank fees".
(e) Refer to amounts paid to customers as an incentive to purchase or use products. This balance is deducted directly from revenue from services and commissions; and.
(f) This is a loyalty and rewards program offered by Banco Inter. Through this program, bank customers accumulate points in their transactions and financial operations and can exchange them for benefits, discounts, products or services.
29.Other revenues
03/31/2024 03/31/2023
Performance fees (a) 24,264 28,285
Revenue foreign exchange 21,756 14,919
Capital gains 3,255 2,938
Revenue from sale of goods 4,315 3,288
Others 36,367 16,447
Total 89,957 65,877
(a) Consists substantially of the result of the commercial agreement between Inter and Mastercard, B3 and Liberty, which offers performance bonuses as the established goals are met.
30.Impairment losses on financial assets
03/31/2024 03/31/2023
Impairment expense for loans and advances to customers (467,775) (365,759)
Recovery of written-off credits 54,009 14,040
Others 2,718 1,038
Total (411,048) (350,681)
31.Administrative expenses
03/31/2024 12/31/2023
Data processing and information technology (207,445) (181,112)
Third party services and financial system services (a) (67,177) (92,025)
Advertisement and marketing (34,101) (20,038)
Rent, condominium fee and property maintenance (17,622) (16,030)
Provisions for contingencies (9,534) (10,228)
Insurance expenses (4,609) (8,195)
Portability expenses (3,770) (2,371)
Others (b) (50,986) (55,616)
Total (395,244) (385,615)
(a) Previously presented under the following lines: "Third party services" and "Financial system services".
47
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
(b) Previously presented in the following lines: (i) Communications; (ii) Customer refund resources; (iii) Expenses with Serasa; (iv) Transport and travel expenses; (v) Notary and court expenses; (vi) Discounts granted; (vii) Other expenses.
32.Personnel expenses
03/31/2024 03/31/2023
Salaries (a) (102,405) (98,186)
Benefits (b) (54,109) (35,540)
Social security charges (32,324) (29,563)
Others (1,625) (9,123)
Total (190,463) (172,412)
(a) Previously presented in the line of: (i) Salaries; (ii) Vacation expenses and 13th salary; and (iii) Remuneration of the executive board and the Board of Directors;
(b) Previously presented in the line of: (i) Benefits and (ii) Profit sharing.
33. Tax expenses
03/31/2024 03/31/2023
PIS/COFINS (68,327) (55,902)
ISSQN (4,350) (4,126)
INSS (3,554) (1,025)
Others (10,100) (7,818)
Total (86,331) (68,871)
34.Current and deferred income tax and social contribution
a.Amounts recognized in profit or loss for the period
03/31/2024 03/31/2023
Current income tax and social contribution expenses
Current year (87,923) (28,325)
Deferred income tax and social contribution benefits (expenses)
Provision for impairment losses on loans and advances 32,036 24,045
Provision for contingencies 1,590 2,135
Adjustment of financial assets to fair value (10,854) 5,764
Other temporary differences 26,404 (9,375)
Tax losses carried forward (39,765) 24,075
Total deferred income tax and social contribution 9,411 46,644
Total income tax (78,512) 18,319
48
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
b.Reconciliation of effective rate
03/31/2024 12/31/2023
Income tax Income tax
Profit before tax 273,732 5,897
Tax average (a) 45 % (123,179) 45 % (2,654)
Tax effect of
Interest on capital distribution 17,008 -
Non-taxable income (non-deductible expenses) net 5,061 722
Tax incentives 771 -
Subsidiaries not subject to real profit taxation 10,238 20,251
Others 11,589 -
Total income tax (78,512) 18,319
Effective tax rate (29)% 311%
Total deferred income tax and social contribution 9,411 46,644
Total income tax and social contribution expenses (87,923) (28,325)
(a) The result from Banco Inter represents the greatest impact on the total amount of taxes, so we present the tax rate of 45%, which is the nominal rate currently in force for banks under Brazilian legislation.
c.Changes in the balances of deferred taxes
12/31/2023 Constitution Realization 03/31/2024
Deferred tax assets
Provision for impairment losses on loans and advances 630,817 241,379 (208,545) 663,651
Adjustment of financial assets to fair value 137,729 142,165 (110,357) 169,537
Tax losses carried forward 164,831 14,337 (51,858) 127,310
Other temporary differences 82,438 40,669 (20,014) 103,093
Provision for contingencies 17,720 4,596 (3,805) 18,511
Subtotal 1,033,535 443,146 (394,579) 1,082,102
Deferred tax liabilities
Capital gains from assets in the business combination (27,902) - 869 (27,033)
Hedge Accounting (4,637) - 5,931 1,294
Ernout - (24,173) - (24,173)
Subtotal (32,539) (24,173) 6,800 (49,912)
Total net deferred tax assets (liabilities) (a) 1,000,996 418,973 (387,779) 1,032,190
(a) The recognition of these deferred tax assets are based on the expectation of generating future taxable income and supported by technical studies and income projections.
49
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
12/31/2022 Constitution Realization 03/31/2023
Deferred tax assets
Provision for impairment losses on loans and advances 407,766 162,317 (138,272) 431,811
Provision for contingencies 12,664 4,705 (2,570) 14,799
Adjustment of financial assets to fair value 312,159 47,426 (56,160) 303,425
Other temporary differences 33,668 12,534 (19,852) 26,350
Tax losses carried forward 202,184 22,153 - 224,337
Provision for expected loss on financial instruments 9,707 - (2,058) 7,649
Subtotal 978,148 249,135 (218,912) 1,008,371
Deferred tax liabilities
Others (30,073) - 435 (29,638)
Subtotal (30,073) - 435 (29,638)
Total net deferred tax assets (liabilities) (a) 948,075 249,135 (218,477) 978,733
(a) The recognition of these deferred tax assets are based on the expectation of generating future taxable income and supported by technical studies and income projections.

35.Share-based payment
a.Share-based compensation agreements
a.1) Stock option plan - Banco Inter S.A.
Between February 2018 and January 2022, Banco Inter S.A. established stock option programs through which Inter managers and executives were granted options for the acquisition of Banco Inter S.A. Shares.
The Extraordinary General Meeting of Inter&Co, Inc. held on January 4, 2023 approved the migration of share-based payment plans, with the assumption by Inter&Co of the obligations of Banco Inter S.A. arising from the active plans and the respective programs. As a result of the corporate reorganization, the number of options held by each beneficiary was proportionally changed. Thus, for every 6 options to purchase common shares or preferred shares of Banco Inter S.A. the beneficiaries will have 1 option to purchase a Class A share of Inter&Co. In addition, the repricing of the exercise price of the options granted in 2022, which had not yet been granted, was approved. On the occasion of the repricing, the fair value of the options granted and not exercised was recalculated, and an additional amount of R$15,990 of incremental expense was calculated, to be appropriated until the final vesting period.
The main characteristics of the plans are described below:
Grant Date Final strike date Options (shares INTR) Vesting Average strike price Participants
02/15/2018 02/15/2025 5,452,464 Up to 5 years R$1.80 Officers, managers and key employees

07/09/2020
07/09/2027 		3,182,250 Up to 5 years R$21.50 Officers, managers and key employees
01/31/2022 12/31/2028 3,250,000 Up to 5 years R$15.50 Officers, managers and key employees
50
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
Changes in the options of each plan for the period ended March 31, 2024 and supplementary information are shown below:
Grant Date 12/31/2023 Granted Expired/Cancelled Exercised 03/31/2024
2018 115,799 - - 14,400 101,399
2020 2,519,138 - 4,125 4,500 2,510,513
2022 2,815,750 - 32,375 16,650 2,766,725
Total 5,450,687 - 36,500 35,550 5,378,637
Weighted average price of the shares R$ 17.98 R$ - R$ 16.18 R$ 10.69 R$ 18.04
Grant Date 12/31/2022 Granted Expired/Cancelled Exercised 12/31/2023
2018 135,599 - - 19,800 115,799
2020 2,829,225 - 309,412 675 2,519,138
2022 2,838,500 50,000 69,000 3,750 2,815,750
Total 5,803,324 50,000 378,412 24,225 5,450,687
Weighted average price of the shares R$ 18.15 R$ 15.50 R$ 20.41 R$ 4.47 R$ 17.98
The fair values of the period of 2018 and 2020 plans were estimated based on the Black & Scholes option valuation model considering the terms and conditions under which the options were granted, and the respective compensation expense is recognized during the vesting period.
2018

2020
Strike price 1.80 21.50
Risk-free rate 9.97 % 9.98 %
Duration of the strike (years) 7 7
Expected annualized volatility 64.28 % 64.28 %
Fair value of the option at the grant/share date: 0.05 0.05
For the 2022 program, the fair value was estimated based on the Binomial model:
2022
Strike price 15.50
Risk-free rate 11.45 %
Duration of the strike (years) 7
Expected annualized volatility 38.81 %
Weighted fair value of the option at the grant/share date: 4.08
In the period ended March 31, 2024, costs amounting to R$4.231 (March 31, 2023: R$9.912) were recognized in employee benefit expenses.
51
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
a.2) Share-based payment related to Inter & Co Payments, Inc., acquisition
In the context of the acquisition of Inter&Co Payments by Inter, it was established that part of the payment to key executives of the acquired entity would be made by migrating the share-based payment plan of Inter & Co Payments, Inc., with stock options for class A shares and restricted class A shares of Inter & Co, in addition to the granting of shares issued by the Company. Considering the characteristics of the contract signed between the parties, the expense associated with the options granted are treated as a compensation expense which will be expensed over the term of the vested options and based on continued employment of such key executives.
Inter has the right to repurchase the restricted shares if these key executives cease to provide services to the Company within the term of the acquisition contract. Nevertheless, all shares will remain subject to other transfer restrictions established in the contract and in the applicable legislation.
The main characteristics of these stock-based payments are described below:

Grant Date Options Vesting Average strike price (a) Participants Final exercise date
2022 489,386 Up 3 years R$ 9,59 por ação classe A Key Executives 12/30/2024
(a) Number of options and strike price from Inter & Co Payments, Inc.'s equity incentive plan has been agreed by the Parties at the time of the acquisition. The number of options and strike price, after the Company's reorganization and listingas on Nasdaq have been recalculated in accordance with the rate between Inter's shares and the Company's Class A Shares. According to the contract signed between the parties, the corresponding amount is USD 1.92. The values presented in reais were converted using the dollar FX rate as of March 31, 2024.
Stock options exercised:
Grant Date Shares Participants Final exercise date
2023 643,500 Key Executives 12/30/2024
Changes in Inter & Co Payments, Inc.'s granted instruments for March 31, 2024 and supplementary information are shown below:
Grant Date 12/31/2023 Granted Options Expired/Cancelled Exercised 3/31/2024
2022 489,386 - - - 489,386
Total 489,386 - - - 489,386
Weighted average price of the shares R$ 9.30 R$ - R$ - R$ - R$ 9.59
Grant Date 12/31/2022 Granted Options Expired/Cancelled Exercised 12/31/2023
2022 489,286

-

-

-

489,286
Total -

-

-

-

489,286
Weighted average price of the shares R$ 9.30

R$ -

R$ -

R$ -

R$ 9.30
Grant Date 12/31/2023 Granted Shares Expired/Cancelled Put option exercise 3/31/2024
2022 482,625 - - 199,942 282,683
Total 482,625 - - 199.942 282.683
Grant Date 12/31/2022 Granted Shares Expired/Cancelled Put option exercise 12/31/2023
2022 643,500 - - 160,875 482,625
Total 643,500 - - 160.875 482.625
In the period ended March 31, 2024, the amount of R$4.815 (March 31, 2023: R$ 6.355) was recognized as employee benefit expenses in the income statement of the Company.
52
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
a.3) Restricted shares agreement (RSU) - Inter.
The Extraordinary General Meeting of Inter&Co, Inc. held on January 4, 2023 approved the creation of the Omnibus Incentive Plan, which aims to promote the interests of the Company and its shareholders, strengthening the Company's ability to attract, retain and motivate employees who are expected to make contributions to the Company and to provide these people with incentives to align their interests with those of the Company's shareholders.
The Omnibus Incentive Plan is managed by the Board of Directors of Inter&Co, Inc., which has the authority to approve program grants to the Company's employees.
On June 1, 2023, the Company granted 2,140,500 restricted share units (RSUs) under the Omnibus Incentive Plan with a vesting schedule of 25% on December 1 of 2023, 2024, 2025, and 2026. Additionally, on November 1, 2023, the Company granted 15,000 restricted share units (RSUs) under the Omnibus Incentive Plan with a vesting schedule of 25% on October 23 of 2024, 2025, 2026 and 2027, to various executives and employees of the Company and/or its direct or indirect subsidiaries. 553,875 RSUs already vested on December 1. On March 31, 2024, 12,500 RSUs were canceled/prescribed.
On February 1, 2024, the Company granted 10,000 restricted stock units (RSUs) under the Omnibus Incentive Plan with a vesting schedule of 25% on December 1, 2024, 2025, 2026 and 2027 to various executives and employees of Company and/or its direct or indirect subsidiaries.
See table below:
03/31/2024
Date of grant Exercise rate per vesting Fair value of share (in R$) Remaining term of the vesting period (in years) Vesting period (years) Total granted Total not vested yet

06/01/2023 		25% R$14.15 3.5 4.0 2,140,500 1,574,125

11/01/2023 		25% R$22.99 4.0 4.0 15,000 15,000
02/01/2024 25% R$25.22 4.0 4.0 10,000 10,000
Total 2,165,500 1,599,125
12/31/2023
Date of grant Exercise rate per vesting Fair value of share (in R$) Remaining term of the vesting period (in years) Vesting period (years) Total granted Total not vested yet

06/01/2023 		25% R$14.15 3.5 4.0 2,140,500 1,586,625

11/01/2023 		25% R$22.99 4.0 4.0 15,000 15,000
2,155,500 1,601,625
In the period ended March 31, 2024, the amount of R$2.960 was recognized as employee benefit expenses in the statement of income.
53
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
36.Transactions with related parties
Transactions with related parties are defined and controlled in accordance with the Related-Party Policy approved by Inter's Board of Directors. The policy defines and ensures transactions involving Inter and its shareholders or direct or indirect related parties. Transactions related to subsidiaries are eliminated in the consolidation process, not affecting the Unaudited interim condensed consolidated financial statements. Related-party transactions were undertaken as follows:
Parent Company (a) Associates (b) Key management personnel (c) Other related parties (d) Total
03/31/2024 12/31/2023 03/31/2024 12/31/2023 03/31/2024 12/31/2023 03/31/2024 12/31/2023 03/31/2024 12/31/2023
Assets 3,086 3,839 708,066 1,470,694 16,017 16,403 816,144 620,131 1,543,313 2,111,067
Loans and advances to customers 3,086 3,839 - - 16,017 16,403 816,144 620,131 835,247 640,373
Amounts due from financial institutions - - 708,066 1,470,694 - - - - 708,066 1,470,694
Liabilities (11,956) (5,261) (21) (9) (22,748) (22,391) (130,138) (250,608) (164,863) (278,269)
Liabilities with customers - Demand deposits (266) - - - (1,269) (406) (49,120) (47,091) (50,655) (47,497)
Liabilities with customers - Term deposits (11,690) (5,261) (21) (9) (21,479) (21,985) (81,018) (203,517) (114,208) (230,772)
Parent Company (a) Associates (b) Key management personnel (c) Other related parties (d) Total
03/31/2024 03/31/2023 03/31/2024 03/31/2023 03/31/2024 03/31/2023 03/31/2024 03/31/2023 03/31/2024 03/31/2023
Profit/ (loss) (90) (562) - - (4,513) (270) 985 (154) (3,618) (986)
Interest income - 129 - - 1,189 450 10,290 229 11,479 808
Interest expenses (88) (692) - - (158) (764) (656) (2,520) (902) (3,976)
Other administrative expenses (2) 1 - - (5,544) 44 (8,649) 2,137 (14,195) 2,182
(a) Inter & Co is directly controlled by Costellis International Limited, SBLA Holdings and Hottaire;
(b) Entities with significant influence by Inter & Co;
(c) Directors and members of the Board of Directors and Supervisory Board of Inter & Co; and
(d) Any immediate family members of key management personnel or companies controlled by them, including: companies which are controlled by immediate family members of the controlling shareholder of Inter & Co; companies over which the controlling shareholder or his/hers immediate family members have significant influence; other investors that have significant influence over Inter & Co and their close family members.
Compensation of key management personnel
The global remuneration of administrators approved at the group's Ordinary General Meeting was R$78,961. In 2023, the approved global remuneration was R$99,791.
54
Notes to the Unaudited interim condensed consolidated financial statement
As of March 31, 2024
37. Other information
On January 18, 2024, Inter&Co announced the acquisition of the naming rights to the stadium where Orlando City, from MLS, and Orlando Pride, from NWSL, play in Florida. From now on, the arena will be known as Inter&Co Stadium. The contract corresponds to the period from 2024 to 2033 and the right of use was recorded as an intangible asset, as described in explanatory note 16.
In April 2024, Inter&Co declared the distribution of cash dividends of US$0.03 per Class A share.
38. Subsequent events
There were no relevant subsequent events up to the date of approval of this financial statement.
55

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Inter & Co. Inc. published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 11:08:59 UTC.