Exhibit 99.1
| Managerial Report 1st Quarter 2022 |
| Letter from our CEO 1 MANAGERIAL REPORT | 1Q22 We kicked-off the year with several milestones that will mark 2022 as a great year for Inter. During the first quarter, we grew our client base to 18.6 million, and at the current pace we are on track to surpass the 20mm mark in a matter of days. Just for reference, the number that we had envisioned at the time of the IPO, when we began being a publicly listed entity, was 3mm clients. We acknowledge that we are operating under a more complex macro scenario. Since these cycles are not new in Brazil, when we designed our strategy back in 2015/2016, we decided not to be a mono-liner but instead to have a robust and highly diversified business that would protect us precisely on times like these. Our loan mix has allowed us to show strong performance in the asset quality front, with a deterioration that has been lower than the market. We believe that throughout 2022 we will continue overperforming the market in this front. Our funding base remains solid. Given the rate environment and the seasonality of the quarter, the growth was more skewed to higher yielding products, though our demand deposit base, which is a key competitive strength remains close to 50% of our total funding base. Our balance sheet couldn't be stronger, as we continue to operate with a capital and liquidity levels that are multiple times higher than the industry's average. This will allow us to continue gaining market share across products. We continue highly of focused on client monetization, with our average revenue per client increasing while our cost to serve decreases, thus having the double-sided impact to expand our margins per client. This quarter the acquisition of USEND closed and the company is now fully owned by Inter. We have named this line of business as Cross Border Services, and it will be our sixth vertical. The core of the existing business is remittances from Brazilians who live in the US and send money to Brazil. We intend to deploy our SuperApp into the US, replacing USEND's current one, offering the full suite of transactional services to this clientele. Another important milestone is that our shareholders approved the migration of our shares from B3 to Nasdaq. This transaction will enable us to have greater visibility to the global tech investor base and stronger access to the international capital markets. Finally, our mission is to simplify people's life, and the way we achieve this is by having a best-in-class team that shares the "sangue laranja" values. I'm convinced that our culture is stronger than ever and will be key competitive advantage for the Inter's success in the coming years. João Vitor Menin CEO INTER |
| R$1.2 bn Total Revenue1 + 130% YoY 1 Total revenues = income from financial intermediation + service fee income (gross cashback) + other operating income 2 Gross Profit = NII - provision + fee income + other operating revenues; 2 18.6 mm Clients + 82% YoY R$14.1 bn TPV + 86% YoY R$19.8 bn Expanded Credit Portfolio + 81% YoY R$663 mm Gross Profit2 + 69% YoY R$27 mm Net Profit + 32% YoY Highlights MANAGERIAL REPORT | 1Q22 |
| • We increased investment revenue by 144% YoY, reaching R$36.6 million in 1Q22 • We reached 2 million investor clients on our platform, 34% YoY growth • We ended the quarter with R$ 58 billion in assets under custody (AuC), growth of 11% YoY • We reached 915 thousand active insurance customers in 1Q22, up 150% YoY • We surpassed R$29.8 million in revenues in 1Q22, 52% YoY growth • We made 195,000 insurance sales, up 32% YoY • We transacted R$1.1 billion (GMV) at Inter Shop in the quarter, growth of 56% YoY • We reached 3.1 million active customers (LTM) • We surpassed R$ 101 million in revenues, 145% higher than 1Q21 • We reached 9.6% take-rate in 1Q22, 3.5 p.p. above the 1Q21 take-rate 3 Inter Shop Inter Seguros Inter Invest MANAGERIAL REPORT | 1Q22 Cross Border Services • We started the integration of USEND services to Inter in 1Q22 • We surpassed USD 200 million in international remittance in the quarter • We reached peaks of 3,000 Global Accounts opened in just one day • We reached R$9.6 billion in demand deposits, a 37% growth YoY • We transacted R$14.1 billion in cards in 1Q22, a 86% growth YoY • We increased card revenues by 88% YoY, reaching R$154 million in the year • We reached R$ 19.8 billion in the expanded loan portfolio, growth of 81% YoY • Credit underwriting reached R$4.5 billion in 1Q22, +22% YoY • The provision for loan losses reached 3.0% of the expanded loan portfolio, while the NPL over 90 days remained stable at 3.3% Day to Day Banking Credit Highlights |
| 4 Market Cap* As of March 31, 2022 R$ 18.5 billion * Total Shares x BIDI4 Close Highlights Inter Shares | BIDI MANAGERIAL REPORT | 1Q22 |
| Growth Total Revenues We reached 18.6 million clients in the first quarter of 2022, 82% annual growth. We added more than 2.3 million clients in the quarter, 30% above 1Q21. Total revenues3 reached R$1.2 billion in 1Q22, a 130% growth YoY 3 Total Revenues = revenues from financial intermediation + fee income + other operating revenues. 5 Total revenues In R$ Million Number of clients In Million EARNINGS RELEASE 9.4 1Q22 1.2 18.6 10.2 17.4 0.8 1Q21 +82% Legal entities Individuals 2.3 1Q21 1Q22 1.8 +30% Added clients In Million 542 1Q22 1Q21 1,244 130% MANAGERIAL REPORT | 1Q22 Total net revenues In R$ Million 486 907 1Q22 1Q21 87% |
| 4 Fee income include service revenues, operating revenues, floating revenues, foreign exchange revenues and Inter Shop prepayment revenues. Revenue allocation is managerial, unaudited and subject to review. Fee income In 1Q22, our fee income4 reached R$ 522 millions, a 152% growth when compared to 1Q21. Revenues were mainly leveraged by the growth in floating and Inter Shop revenues, which totaled R$143 million and R$101 million respectively in the quarter. NII Gross revenues from financial intermediation before PDD (NII), comprised of revenues from credit operations, net of funding costs, plus financial revenues, reached R$ 544.5 million in 1Q22, growth of 78%. NII In R$ Million Fee income In R$ Million 41.2 36.6 522.0 1Q21 207.2 81.7 29.8 11.3 39.8 143.0 153.8 101.0 22.6 1Q22 19.6 18.1 15.0 15.8 +152% 1Q21 544.5 305.6 1Q22 78% Inter Invest revenue Credit-related revenue Inter Shop revenue Inter Seguros revenue Floating revenue Digital account and others revenues Card revenues MANAGERIAL REPORT | 1Q22 6 |
| 5 ARPAC = (Total Net Revenues * 4) / number of active clientes 6 CTS = [(Administrative expenses + personnel expenses + other operating expenses – cashback expenses) –(CAC * account opening number) *4] ÷ number of digital accounts. As of 2Q21, we changed the calculation of CTS metodology to annualise the CAC. Average revenue per cliente and Cost to serve (CTS) The average revenue per active client (ARPAC)5 presented a 11% growth YoY, reaching R$ 367 per active client in the quarter. CTS6 remained stable YoY and presented a increase of 17.6% over 1Q20. The expenses growth over the clientes growth is due to more investments in the platform and with employees. As a consequence, the margin per client continuous expanding. Average revenue per active cliente (ARPAC) In R$ annualized Client acquisition cost In R$ annualized Cost to Serve In R$ In 1Q22, the client acquisition costs reached R$ 29 per client, an increase of 4.6% in annual comparison. Client acquisition cost (CAC) 1Q21 330 367 1Q22 317 1Q20 +11% 14 16 14 13 28 1Q21 1Q22 29 +4.6% Marketing Costs Operational costs 1Q20 1Q22 110 1Q21 108 133 +1.9% MANAGERIAL REPORT | 1Q22 7 |
| Total deposits In R$ Billion Total deposits Floating revenue is calculated on a managerial basis and is represented by the balance of demand deposits free of compulsory invested at 100% of the CDI rate. Floating revenues grew 532% in 1Q22 in annual comparison and surpassed R$ 143 million. This growth can be explained by the increase in demand deposit balances and of the Selic rate. Floating revenue In R$ Million Pix In 1Q22, we reached 275 million in transactions done by Pix. There was transacted about R$ 97 billion trough Inter over the first quarter. 8 Inter Bank 143.0 1Q22 22.6 1Q21 +532% MANAGERIAL REPORT | 1Q22 Deposits volume surpassed R$ 23.2 billion, an increase of 54% in annual comparison. Demand deposits balance topped R$ 9.6 billion in 1Q22, 37 % YoY growth. 1.7 7.9 23.2 7.0 9.6 0.1 1.2 1Q21 1Q22 15.1 0.9 4.3 5.4 +54% Credit letters Savings deposits Time deposits Interbank accounts Demand deposits |
| No. of cards used In Million No. of debit users In Million No. of credit users In Million More than 5.8 million dual-function cards were used in 1Q22, a volume 68% higher than in 1Q21. The volume transacted with cards increased 86% year-on- year. Card revenues grew 88% YoY and totaled R$ 154 million in 1Q22. Cards Card TPV In R$ Billion Card revenues In R$ Million 9 5.8 1Q22 1Q21 3.5 +68% 1Q21 2.7 4.5 1Q22 +67% 2.9 1.6 1Q21 1Q22 +83% 6.4 2.9 7.6 14.1 1Q21 1Q22 7.7 4.7 +86% 1Q22 81.7 1Q21 153.8 +88% MANAGERIAL REPORT | 1Q22 Debit Credit |
| 7 Expanded credit portfolio includes debentures, CRAs e CRIs. Expanded credit portfolio In R$ Billion Credit underwriting In R$ Billion The expanded credit portfolio7 reached R$19.8 billion, an increase of 81% year-on-year. Credit underwriting reached R$4.5 billion, with a growth of 22% YoY and a highlight was SME, which grew 97% YoY. Credit portfolio 10 NPL > 90 days In % The 1Q22 provision for loan losses balance amount represented 3.0% of the expanded credit portfolio, while NPL over 90 days represented 3.3% of the portfolio. Provision / Expanded credit portfolio In % Credit 19.8 28.5% 3.9% 2.0% 1Q21 11.0 19.4% 37.8% 27.6% 19.0% 22.3% 1Q22 18.8% 20.5% 81% SME Credit Card Agrobusiness Loan Real Estate Payroll 1.3 0.1 3.7 0.7 0.6 3.1 1Q22 4.5 0.6 1Q21 1.6 0.0 22% Personal SME Agribusiness Real Estate 1Q22 3.3% 1Q21 2.6% 1Q22 3.0% 1Q21 2.2% MANAGERIAL REPORT | 1Q22 |
| Real estate credit The real estate loan portfolio reached R$5.5 billion in 1Q22, a 33% yearly expansion, with a Loan to Value (LTV) of 47.2% and NPL of 2.4%. Revenues from the real estate loan portfolio surpassed R$165 million in 1Q22, corresponding to a 15% growth YoY. With a 45% growth in real estate financing and greater exposure to SBPE financing, the composition of the real estate loan portfolio has significantly evolved towards a profile with lower defaults. Real estate financing In R$ Billion Payroll loan The balance of the payroll loan portfolio totaled R$3.9 billion, an increase of 84% YoY. Revenues8 reached R$ 220 million in 1Q22, growth of 100% YoY. 8 Includes card revenues and other payroll credits. 11 Real estate credit portfolio In R$ Billion Payroll credit portfolio In R$ Million 5.7 1Q22 4.2 1Q21 36% 2.4% 2.8% NPL > 90d / Real estate credit portfolio 55% 1Q22 4.0 2.8 45% 52% 1Q21 48% +45% SBPE SFI 2.1 1Q22 3.9 1Q21 84% 2.9% 2.9% NPL > 90d / Payroll credit portfolio MANAGERIAL REPORT | 1Q22 |
| 12 Credit card portfolio In R$ Million Credit card The credit card portfolio reached R$5.4 billion in 1Q22, growth of 126% When compared to 1Q21. Out of this amount, R$ 962 million correspond to revolving and installment credits that generates interest income. Credit card portfolio NPL reached 6.6%, with a growth of 2.3 p.p. YoY. It’s worth mentioning that the portfolio financed with interest income represents only 6% of the total loan portfolio. Agribusiness credit Agribusiness financing10 portfolio reached R$783.3 million in 1Q22, presenting a 249% annual growth. Revenues reached R$12 million in 1Q22. The NPL of the portfolio remains 0%. Agribusiness financing portfolio In R$ Million SMB credit In 1Q22, the expanded SMB loan portfolio9 reached R$4.1 billion, an increase of 97% YoY, mainly concentrated in Supply Chain Finance operations. Revenues totaled R$87 million in 1Q22, up 186% YoY. Although the positive variation of 0.16 p.p., NPL remains on low levels. SME credit portfolio In R$ Million 8 Includes debentures 9 Includes CRAs. 4.1 2.1 1Q22 1Q21 97% 0.21% 0.05% NPL > 90d / Corporate credit portfolio 773 211 2,094 5,441 1Q22 2,406 100 189 4,479 1Q21 +126% Carteira à vista Instalments with interest Revolving credit + overdue loans 783.3 224.1 1Q22 1Q21 249% MANAGERIAL REPORT | 1Q22 6.6% 4.3% NPL > 90d / Credit card portfolio |
| In 1Q22, we reached R$1.1 billion in gross merchandise volume (GMV), a 56% annual growth. In the same period, we had 6.8 million transactions and engaged 504 thousand new clientes to the platform. In LTM, 3.1 million clients used Inter Shop and 73% are recurring ones. 13 Gross merchandise volume (GMV) Inter Shop In R$ Billion Inter Shop Revenues In R$ Million Inter Shop 1.1 1Q22 0.7 1Q21 +56% 101.0 1Q21 41.2 1Q22 145% MANAGERIAL REPORT | 1Q22 Take-rate (%) Net take-rate (%) 6.1% 1.1% 9.6% 3.0% 1Q21 1Q22 +3,5 p.p. +1,9 p.p. Other Highlights: • More than 650’000 available SKUs • More than 827 selles in Super App • We closed partnerships with important sellers as Decathlon, Ri Happy and Camicado • We lauched a new UX for Travel section • Duo Gourmet + Black Card campaign resulted in more than 36’000 subscriptions In addition to GMV growth, we observed strong growth in the Inter Shop operating margin. The take-rate in 1Q22 reached 9.6%, an increase of 3.5 percentage points compared to the same period last year. Take-rate net of cashback expenses (net take-rate) also showed strong growth, to 3.0% in 1Q22, +1.9 p.p YoY. In a quarter in which the market was impacted by seasonality, Inter Shop not only maintained its 4Q21 performance in terms of GMV, but also increased profitability. |
| Inter Invest Number of investment active users In Million Assets under custody12 In R$ Billion 11 Inter Invest Revenues includes Inter DTVM and Inter Asset revenues. 12 Includes demand deposits; Inter Invest Revenues In R$ Million In 1Q22, Inter Invest's revenues11 reached R$ 37 million, an annual growth of 144%. We reached 2 million investor clients in 1Q22, an increase of 34% in the annual comparison. Of these, more than 438 thousand had shares under custody at Inter in 1Q22, an annual growth of 19%. 14 36.6 4Q21 15.0 4Q20 +144% 1Q21 1Q22 52.4 58.1 +11% 1.5 1Q22 2.0 1Q21 +34% • International Home broker with more than 54 Thousand accounts • InvestPro, subscription plan that includes trading, data, charts, instruments and exclusive benefits • Recurring investment in fixed income • Inter Invest Portal, with reccomendations, analysis and news • Structured products Best Digital Platform in Brazil iBest Plataform with most loyal clients FGV / Isto É Best Investment Banking Estadão Melhores Serviços Launches in 1Q22: MANAGERIAL REPORT | 1Q22 |
| 13 Insureds: customers or the object of the contract (home, car, social security, consortia, etc.) Inter Seguros active users13 In Thousand Inter Seguros ended the first quarter of the year with records in its main lines. We presented 11 consecutive quarters of growth in revenue and active customer base. In the latter, we grew almost 2.5x compared to the same period last year. In 1Q22, we focused on products with higher tickets and better commission mix. With a larger customer base, we have successfully worked on numerous up and cross selling initiatives. We observed a significant improvement in the premium/revenue ratio, which added to the gains resulting from the exclusivity contracts with partner insurance companies with Liberty and Sompo. Inter Seguros' operation has diversified and recurring revenues, with a flow contracted for years and completely scalable. We highlight that the EBITDA margin for this quarter had non-recurring effects and should converge to previous levels over the next readings. 15 Insurance revenues In BRL Million Sales In Thousand Inter Seguros 19,6 29,8 1Q22 1Q21 +52% 367 915 1Q21 1Q22 +149% 148 195 1Q21 1Q22 +32% MANAGERIAL REPORT | 1Q22 Net Premium In BRL Million 1Q21 34,7 43,7 1Q22 +26% |
| In 1Q22, we consolidated a new business avenue: Cross Border Services. It covers exchange products, international payments and transfers, account and card issued in the USA – Global Account – and the international home broker14, giving access to active investments traded on American exchanges. With the conclusion of the acquisition of USEND, in January 2022, we started a new journey, and we turned our efforts towards operational and technology integrations, seeking synergies of what has already been developed in our Super App, to allow the growth of existing products in the US and new product launches throughout 2022. 16 Cross Border Services 14Brazilian investors with a aggressive investment profile can invest in American stock exchanges via the Apex Platform, hosted on the Super App. In 1Q22, we had the following results: US$200 MM In remittance + 3’000 Peak of Global Accounts opened in onde day In the coming quarters, the Global Account and US debit card will be integrated into inter’s Super App, allowing for a simpler experience for our customers. With this, we will be able to serve Brazilian and US resident customers with a unique experience and a growing range of services. MANAGERIAL REPORT | 1Q22 |
| 17 ESG ADVANCES MANAGERIAL REPORT | 1Q22 In 1Q22, we increased our efforts to bring the ESG strategy to business verticals, supported by our materiality. Among the highlights of 1Q22 is the maintenance of the BIDI11 units in the Carbon Efficient Index (ICO2), recalibrated in January. Inter Diverso In the first quarter of 2022, we made significant progress in Inter's diversity agenda. At our corporate university, the Inter Academy, we offer Vieses Inconscientes training as a way of reinforcing the theme of unconscious bias and intensifying the culture of diversity and inclusion throughout Inter. We also held lives on gender equity in partnership with the institution Pro Mujer for all employees, promoted the Inter Diverso program and strengthened the awareness process through communications on literacy related to diversity and inclusion. Social Responsability Our Social Responsibility agenda is getting stronger and stronger. And recognizing who is part of this construction is one of our premises. Therefore, at the beginning of 2022 we recognized the most participatory volunteers, who provided time and effort in social actions and, together, impacted about 13,600 people in situations of socioeconomic vulnerability. Corporate Governance Commitments Board of Directors and the Audit Committee Annual Assessment In 1Q22, we implemented an annual evaluation system for Inter's Board of Directors and Audit Committee. Individual assessments were carried out by each member of the Boards for the year 2021. The purpose of such assessments is to ensure that the Board of Directors and the Audit Committee act with a focus on the strategic development of Inter and its subsidiaries and guide the proper management of the risks involved in the development of the group's activities. The performance of Organs collegiate bodies as a whole, the individual members, the governance secretariat and the other Inter teams involved in the preparation of materials and the necessary support for the activities of these bodies were evaluated. Advisory Board This quarter, Inter's Advisory Board was created. Comprised of a diverse team of international professionals, it aims to strengthen our capabilities in various topics such as internationalization, marketing, public relations, risks and growth drivers. The Advisory Board is composed of João Vitor Menin, CEO of Inter, Rafaela Vitória, Chief Economist and Director of Research, and advisors (i) Michel Combes, current CEO of Softbank Group International; (ii) Todd Chapman, served for more than 30 years as a US diplomat; (iii) Beatriz Perez, a consultant specializing in organizational development. |
| Consolidated balance sheet (R$ Thousand) 18 MANAGERIAL REPORT | 1Q22 |
| 19 Consolidated income statement (R$ Thousand) MANAGERIAL REPORT | 1Q22 |
| More than 4.1 million of followers on social networks Followers on social networks Evaluation of the App 4.4 on Google Play Store 4.8 on App Store Customer relationship We use technology to offer an even better platform and we establish a partnership relationship with our clients in each of our aspects. This relationship is very present on social networks, where engagement with us grows every day. 83 in March 2022 Net Promoter Score (NPS) 500 million access in March 2022 No of access App and Internet Banking Financial KPIs Appendix 20 MANAGERIAL REPORT | 1Q22 Engagement In 1Q22 we reached 9.9 million active clientes in the quarter. |
| Market risk management The Company manages the market risk of positions classified in the banking book as well as in the trading book. The risk management team monitors mismatches between indexes and terms of active and passive positions, checking the strategies (and risks) assumed on a daily basis. The Bank currently has an adequate market risk considering the strategy and complexity of the business, as well as in line with the Institution’s Risk Appetite Statement. Additionally, it is noteworthy that Inter currently uses tools such as Value-At-Risk (VaR), delta EVE and delta NII in the periodic management of market risk. Liquidity management The management of liquidity risk independently promotes the daily control and monitoring of Banco Inter’s liquidity in accordance with Resolution 4557 of the Central Bank of Brazil, as well as in line with the best market practices. The Bank regularly assesses its liquidity indicators and asset/liability mismatches, weighing minimum cash metrics, level of cash allocated to highly liquid assets (HQLA), potential cash requirements in a stress scenario, among others. Additionally, the Institution has a fragmented client base with demand deposits (and term deposits), as well as a robust (available) stock of collateral for the issuance of real estate credit notes (LCI) that potentially generate stability in liquidity management. 21 15 100% TIER I To better understand the revenues generated by each of our avenues and their respective products, we propose a managerial redistribution of our revenues. We allocate managerially part of the revenue that is recorded in the lines of “Revenues from financial intermediation” and “Other operating income” as revenue from services: Managerial allocation of fee income MANAGERIAL REPORT | 1Q22 |
| Glossary Active clients: Active clients are those with checking accounts that generated revenue during the quarter. Products from all business avenues are considered. Cross-Selling Index (CSI): The average of products consumed per active client in the quarter. It is calculated based on the total number of products consumed in the period divided by the number of active clients in the same period. Products from all business avenues are considered. Average revenue per active client (ARPAC): Average revenue per client is calculated by adding the average revenue per active client from credit and services. ARPAC credit = [(NII adjusted)*4] ÷ number of active clients + ARPAC services = [(Expanded service revenue)*4] ÷ active clients Net Interest Income (NII): The gross result of financial intermediation, before PDD. It can be calculated using the formula: Income from Financial Intermediation – Expenses from Financial Intermediation. Expanded service revenues: Considers revenues from cards (exchange + performance), floating, Inter Invest, Inter Seguros, Inter Shop (gross cashback expenses) and ancillary income from credit and digital accounts. Total Revenues: Revenues from financial intermediation plus revenues from the provision of services and other operating income. Net Interest Margin (NIM): A measure of profitability obtained from the difference between revenues from financial intermediation and the cost of funding, relative to profitable assets. It is calculated based on the ratio between the average of the last 5 quarters of the NII and the average profitable assets. Profitable assets, in turn, are calculated from the sum of cash and cash equivalents, interbank investments with immediate liquidity, securities, interbank relationships, interdependence relationships, other financial assets, credit operations, other credits and provisions. 22 MANAGERIAL REPORT | 1Q22 |
| Efficiency Index: A metric calculated according to the following ratio: 푃푒푟푠표푛푛푒푙 퐸푥푝푒푛푠푒푠 + 푂푡ℎ푒푟 푎푑푚𝑖푛𝑖푠푡푟푎푡𝑖푣푒 푒푥푝푒푛푠푒푠 + 푂푡ℎ푒푟 표푝푒푟푎푡𝑖푛푔 푒푥푝푒푛푠푒푠 + 푇푎푥 푒푥푝푒푛푠푒푠 + 푝푒푟푓표푟푚푎푛푐푒 퐹푒푒 𝑖푛푐표푚푒 + 푂푡ℎ푒푟 푎푑푚𝑖푛𝑖푠푡푟푎푡𝑖푣푒 푒푥푝푒푛푠푒푠 + 퐼푛푐표푚푒 푓푟표푚 퐹𝑖푛푎푛푐𝑖푎푙 퐼푛푡푒푟푚푒푑𝑖푎푡𝑖표푛 − 푝푒푟푓표푟푚푎푛푐푒 Resources under custody (AuC): AuC include the primary funding products issued by Inter, assets under custody (products issued by third parties, investment funds, shares and other securities) of Inter DTVM and assets under management by Inter Asset. Cost of Funding: The cost incurred with capturing clients. To calculate the percentage cost of funding, deposits and bills issued are weighted as a percentage of the CDI, considering the issuance fees, volumes and maturities of each one. In the percentage calculation certain bills indexed to inflation are not taken into account. Client Acquisition Cost (CAC): The average cost to add a client to the base, considering operating expenses for opening an account - such as onboarding personnel, embossing and sending cards and digital marketing expenses with a focus on client acquisition divided by the number of accounts opened in the quarter. Cost to Serve per client (CTS): CTS = [[(Administrative expenses + personnel expenses + other operating expenses – cashback expenses) – (CAC * number of account openings)] *4 ] ÷ number of digital accounts. Volume traded in Marketplace (GMV): Includes the volume transacted in purchases made through the shopping service, in the affiliated and end- to-end models, as well as recharging, gift cards and other products sold through Inter Marketplace. Expanded credit portfolio: Includes credit operations, credit card operations in cash, revolving and installments, in addition to certain TVM operations such as debentures and CRIs. Return on Average Equity (ROAE): ROAE = Sum (Net income for the last 4 quarters) / Average (Net equity for the last 5 quarters). Return on Average Assets (ROAA): ROAA = Sum (Net income for the last 4 quarters) / Average (Total assets for the last 5 quarters). 23 MANAGERIAL REPORT | 1Q22 |
| This report may contain forward-looking statements regarding Inter, anticipated synergies, growth plans, projected results and future strategies. While these forward-looking statements reflect our Management’s good faith beliefs, they involve known and unknown risks and uncertainties that could cause the company’s results or accrued results to differ materially from those anticipated and discussed herein. These statements are not guarantees of future performance. These risks and uncertainties include, but are not limited to, our ability to realize the amount of projected synergies and the projected schedule, in addition to economic, competitive, governmental and technological factors affecting the Bank, the markets, products and prices and other factors. In addition, this presentation contains managerial numbers that may differ from those presented in our financial statements. The calculation methodology for these managerial numbers is presented in Inter’s quarterly earnings release. Statements contained in this report that are not facts or historical information may be forward-looking statements under the terms of the Private Securities Litigation Reform Act of 1995. These forward- looking statements may, among other things, convictions related to the creation of value and any other statements regarding Inter. In some cases, terms such as “estimate”, “project”, “predict”, “plan”, “believe”, “can”, “expectation”, “anticipate”, “intend”, “aimed”, “potential”, “may”, “will/shall” and similar terms, or the negative of these expressions, may identify forward-looking statements. These forward-looking statements are based on Inter's expectations and convictions about future events and involve risks and uncertainties that could cause actual results to differ materially from current ones. The numbers for our key metrics (Unit Economics), which include monthly active users (MAU), average revenue per user (ARPU) and cross selling index (CSI), are calculated using Inter’s internal data. Whether based on what we believe to be reasonable estimates, there are challenges inherent in measuring the use of our products. In addition, we continually seek to improve estimates of our user base, which may change due to improvements or changes in methodology, in processes for calculating these metrics and, from time to time, we may discover inaccuracies and make adjustments to improve accuracy, including adjustments that may result in recalculating our historical metrics. The financial information, unless otherwise stated, is presented in millions of reais, in accordance with the consolidated financial statements, in BACEN GAAP. 24 DISCLAIMER MANAGERIAL REPORT | 1Q22 |
| Financial Statements |
Quarterly financial information |
March 31, 2022 |
Contents
| Management report | 3 | ||
| Independent auditors’ report on the individual and consolidated quarterly financial information | 6 | ||
| Individual and consolidated balance sheets | 8 | ||
| Individual and consolidated statements of income | 10 | ||
| Individual and consolidated statements of comprehensive income | 11 | ||
| Individual and consolidated statements of cash flows | 12 | ||
| Individual and consolidated statements of changes in shareholders’ equity | 13 | ||
| Individual and consolidated financial statements of added value | 14 | ||
| Notes to the individual and consolidated quarterly financial information | 15 |
Management report
The Management of Banco Inter S.A. and its subsidiaries (Inter), a private multiple-service bank operating through a digital platform, including financial and non-financial services, in accordance with legal and statutory provisions, hereby presents its shareholders with quarterly financial information for the period ended March 31, 2022. The information, except where otherwise indicated, is expressed in Brazilian local currency (in thousands of Reais) and was prepared with basis on accounting practices established by the Brazilian corporate law, rules and instructions of the National Monetary Council (CMN) and the Central Bank of Brazil (Bacen), when applicable.
Inter
We are a digital platform aiming to simplify the lives of our clients. We started our journey in 1994 and since 2015 we are one of the main agents in the modernization of the Brazilian banking industry, offering a disruptive value proposition with a new bank concept. We currently offer an extensive portfolio of financial and non-financial services and products through our Super App. Our more than 27 years of our experience in the Brazilian banking industry have provided credibility to provide quality services and products in a heavily regulated market. Concurrently, the fintech essence provided a modern, agile, scalable and digital business model to Inter, meeting the client demands and growth strategies in the best way possible.
Since the digitalization of our business model in 2015, we have managed to diversify our revenues, increasing the relevance of service revenues. Furthermore, the structure of a digital retail bank contributes to a low funding cost model, which is more resilient and dispersed among our account holders.
The products that today comprise the Inter ecosystem are integrated and completely interconnected, offering options to clients such as: current account, loans and financing, investments, consortia, foreign exchange, insurance, in addition to the possibility of buying products in the main retail stores within the country, through Inter Shop, our digital shopping mall, all in a single application, simply and quickly.
Operating highlights
Digital account
In the quarter ended March 31, 2022, we surpassed the mark of 18 million clients, which is equivalent to 93% growth in the period. Our NPS reached 83 points, reaching the excellence zone and over 1.5 billion logins to our app were made during the first quarter of 2022.
Loan Portfolio
The balance of loan operations reached R$18.3 billion, accounting for a positive change of 5.8% over December 31, 2021. The real estate secured loan portfolio exceeded R$ 5.2 billion, accounting for a growth of 4.0% compared to December 2021, when its balance was R$ 5.0 billion. The individual loan portfolio, which includes payroll loan and credit card portfolios, reached R$ 11.4 billion, recording a growth of 9.2% compared to December 31, 2021, when it totaled R$ 10.4 billion.
3
Funding
Total funding amounted to R$ 23.2 billion, 6.3% higher than the amount of R$ 21.8 billion recorded on December 31, 2021.
Economic and financial highlights
Net Income (Loss)
We present consolidated net income (loss) for the quarter ended March 31, 2022, of R$ 27.5 million, which represents an increase of R$ 6.7 million when compared to the quarter ended March 31, 2021. The difference in net income between the periods is due to the increase in revenues from loan operations and by the increase in transactions carried out on our Marketplace.
Gross income (loss) from financial intermediation
The Gross Income from Financial Intermediation reached R$ 544.5 million, recording an increase of R$ 238.9 million compared to the amount recorded in the same period in 2021. As a positive highlight, we can mention the results with loan operations, reaching the amount of R$ 485.0 million, with a growth of 70.1% when compared to the quarter of 2021, and with securities and derivative financial instruments, reaching the amount of R$ 351.3, growth of 301.2% compared to the same year of 2021.
Administrative expenses
Administrative and personnel expenses incurred in the quarter ended March 31, 2022 totaled R$ 465.3 million, an increase of R$ 180.2 million in relation to the same period of 2021, a growth explained by the volume of operations, expansion of services and products offered, in addition to the exponential growth of the client base.
Equity highlights
Total assets
Total assets reached R$ 38.6 billion in the quarter ended March 31, 2022, a 5.9% growth compared to December 2021.
Shareholders' equity
Shareholders’ equity totaled R$ 8.5 billion, showing a decrease of R$ 55.7 million when compared to December 31, 2021, explained by the marking of asset markets, reflected in other comprehensive income.
Inter closed the period as of March 31, 2022 with a Basel Ratio of 35.7%, maintaining a solid capital structure to maintain the growth rates.
4
Ratings
The Investment Grade rating assigned by the specialized rating agencies Fitch Ratings and Standard & Poor's, with long-term national scale ratings of “A-(bra)” and “brAA”, respectively, proves Inter’s adequate liquidity position and comfortable capitalization level. We also highlight the change in the rating assigned by Standard & Poor's as of July 2021, which raised Inter’s rating scale to “brAA+”, and the change in the outlook rating by the Fitch Ratings from negative to positive. The branches highlight the improvement in credit quality, the mitigation of the risks of maturity mismatches, the important advances in the cross-selling of products and in the autonomy of fundraising, reflecting the benefits of the exponential growth of the client base in recent years.
Securities portfolio
Pursuant to Article 8 of Bacen Circular 3068/01, Inter declares its intention and ability to hold R$ 963.0 million in the “Held to maturity securities” category.
Statement of the Executive Board
Inter’s Executive Board declares that it has discussed, reviewed, and agrees with the opinions expressed in the independent auditor’s report, and reviewed, discussed and agrees with financial information for period as of March 31, 2022.
Relationship with the independent auditors
In accordance with CVM Instruction 381, Inter informs that other services engaged in addition to audit services of its quarterly financial information do not interfere in the policy adopted fulfills the principles that preserve the independence of the auditor, in accordance with criteria accepted worldwide, which are that the auditor shall not audit his own work, or exercise management roles at his client or promote the interests thereof.
Acknowledgment
We would like to thank our shareholders, clients and partners for their trust, as well as each of our employees who build our history daily.
Belo Horizonte, May 16, 2022.
The Management
5
|
KPMG Auditores Independentes Ltda. Rua Paraíba, 550 - 12º andar - Bairro Funcionários 30130-141 - Belo Horizonte/MG - Brazil Caixa Postal 3310 - CEP 30130-970 - Belo Horizonte/MG - Brazil Telephone +55 (31) 2128-5700, Fax +55 (31) 2128-5702 www.kpmg.com.br |
| Report on the review of quarterly information - ITR |
To the Shareholders, Board of Directors and Administrators of Banco Inter S.A. Belo Horizonte – Minas Gerais
|
| Introduction |
We reviewed the consolidated interim financial information of Banco Inter S.A. (“Bank”), identified as the parent company and consolidated, respectively, which comprise the balance sheet as of March 31, 2022, and the respective statements of income, comprehensive income, changes of shareholders’ equity and cash flows for the three-month period then ended, including the notes.
Management is responsible for the preparation of this interim consolidated financial information in accordance with accounting practices adopted in Brazil, applicable to financial institutions authorized to operate by the Central Bank of Brazil - BACEN, as well as for the presentation of this information in a manner consistent with the standards issued by the Securities Commission, applicable to the preparation of the Quarterly Information. Our responsibility is to express a conclusion on these interim financial information based on our review.
|
| Scope of the review |
Our review was carried out in accordance with the Brazilian and international review standards for interim 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 information consists in asking questions, chiefly to the persons in charge of financial and accounting affairs, and in applying analytical procedures and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Brazilian and International 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. |
| KPMG Assurance Services Ltda., is a Brazilian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International (“KPMG International”), a Swiss cooperative. |
6
| Conclusion |
Based on our review, we are not aware of any facts that would lead us to believe that this consolidated interim financial information included in the quarterly information referred to above was not prepared, in all material respects, in accordance with the accounting practices adopted in Brazil applicable to financial institutions authorized to operate by Central Bank of Brazil and presented in a manner consistent with the standards issued by the Securities Commission - CVM.
|
| Other matters |
Statements of added value
The aforementioned quarterly information includes the consolidated statements of added value (DVA), referring to the three-month period ended March 31, 2022, prepared under the responsibility of the Bank’s management, whose presentation is not required in accordance with the accounting practices adopted in Brazil applicable to financial institutions authorized to operate by the Central Bank of Brazil. These statements have been subject to review procedures performed in conjunction with the review of the quarterly information, in order to determine whether they are reconciled with the interim financial information and book records, as applicable, and whether their form and content are in accordance with the criteria defined in Technical Pronouncement CPC 09 - Statement of Added Value. Based on our review, we are not aware of any other event that make us believe that those were not prepared, in all material respects, in accordance with consolidated interim financial information taken as a whole.
|
Consolidated financial statements
These consolidated financial statements for the quarter ended March 31, 2022, which were prepared in accordance with the accounting practices adopted in Brazil applicable to financial institutions authorized to operate by the Central Bank of Brazil – BACEN, are being presented in addition, as provided for in Art. 77 of CMN Resolution 4966, to the consolidated financial statements prepared in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). They were presented separately by the Bank on this date, and we have issued an independent auditor’s report on them, without any modification, dated May 16, 2022. |
Belo Horizonte, May 16, 2022
KPMG Auditores Independentes Ltda.
CRC SP-014428/O-6 F-MG
Original report in Portuguese signed by
João Paulo Dal Poz Alouche
Accountant CRC 1SP245785/O-2
| KPMG Assurance Services Ltda., is a Brazilian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International (“KPMG International”), a Swiss cooperative. |
7
Individual and consolidated balance sheets as of March 31, 2022 and December 31, 2021
(Amounts expressed in thousands of reais)
| Parent company | Consolidated | |||||||||||||||||||
| Note | 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | 5 | 501,525 | 464,337 | 730,309 | 464,853 | |||||||||||||||
| Financial instruments | 34,955,803 | 34,417,320 | 35,350,238 | 34,644,204 | ||||||||||||||||
| Marketable securities | 6 | 1,830,775 | 1,775,549 | 1,880,794 | 1,765,242 | |||||||||||||||
| Securities | 7 | 12,475,328 | 12,992,564 | 12,336,954 | 12,759,290 | |||||||||||||||
| Derivative financial instruments | 8 | 3,966 | 4,297 | 10,409 | 86,948 | |||||||||||||||
| Interbank accounts - assets | 9 | 2,729,569 | 2,720,395 | 2,729,569 | 2,720,395 | |||||||||||||||
| Interbank Investments - assets | - | 1,278 | 1 | 1,279 | ||||||||||||||||
| Loan portfolio | 10 | 17,365,852 | 16,542,093 | 17,653,931 | 16,785,083 | |||||||||||||||
| Loan operations | 11,432,749 | 10,906,428 | 11,721,138 | 11,149,717 | ||||||||||||||||
| Other credits with and without credit granting characteristic | 6,614,203 | 6,164,898 | 6,614,203 | 6,164,898 | ||||||||||||||||
| Provision for expected losses associated with credit risk | (681,100 | ) | (529,233 | ) | (681,410 | ) | (529,532 | ) | ||||||||||||
| Other financial assets | 11 | 550,313 | 381,144 | 738,580 | 525,967 | |||||||||||||||
| Deferred tax assets | 12 | 606,316 | 521,738 | 610,066 | 524,210 | |||||||||||||||
| Investments | 14 | 1,345,003 | 389,862 | 79,172 | 77,901 | |||||||||||||||
| Investments in subsidiaries’ interest | 1,265,831 | 311,961 | - | - | ||||||||||||||||
| Investments in interest in associated companies | 69,663 | 76,750 | 69,663 | 76,750 | ||||||||||||||||
| Other investments | 9,509 | 1,151 | 9,509 | 1,151 | ||||||||||||||||
| Property, plant and equipment | 35,535 | 34,253 | 42,980 | 36,150 | ||||||||||||||||
| Property, plant and equipment for use | 56,447 | 53,828 | 64,685 | 56,358 | ||||||||||||||||
| (Accumulated depreciation) | (20,912 | ) | (19,575 | ) | (21,705 | ) | (20,208 | ) | ||||||||||||
| Intangible assets | 15 | 342,630 | 297,289 | 1,306,741 | 421,156 | |||||||||||||||
| Intangible assets | 469,952 | 393,125 | 1,448,737 | 530,722 | ||||||||||||||||
| (Accumulated amortization) | (127,322 | ) | (95,836 | ) | (141,996 | ) | (109,566 | ) | ||||||||||||
| Other assets | 13 | 338,265 | 308,841 | 365,884 | 313,532 | |||||||||||||||
| Total assets | 38,125,077 | 36,433,640 | 38,485,390 | 36,482,006 | ||||||||||||||||
8
Individual and consolidated balance sheets as of March 31, 2022 and December 31, 2021
(Amounts expressed in thousands of reais)
| Parent company | Consolidated | |||||||||||||||||||
| Note | 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | ||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Deposits and other financial liabilities | 29,674,884 | 27,923,319 | 29,950,419 | 27,897,520 | ||||||||||||||||
| Deposits | 16 a | 18,944,492 | 18,534,977 | 18,878,677 | 18,213,184 | |||||||||||||||
| Demand deposits | 9,696,859 | 10,019,395 | 9,635,118 | 9,932,959 | ||||||||||||||||
| Savings deposits | 1,215,061 | 1,230,039 | 1,215,061 | 1,230,039 | ||||||||||||||||
| Time deposits | 7,894,003 | 7,157,418 | 7,889,929 | 6,922,061 | ||||||||||||||||
| Interbank deposits | 138,569 | 128,125 | 138,569 | 128,125 | ||||||||||||||||
| Money market borrowings | 1,239,139 | 1,151,344 | 1,239,141 | 1,317,844 | ||||||||||||||||
| Acceptances and endorsements | 16b | 4,323,118 | 3,598,194 | 4,280,956 | 3,572,093 | |||||||||||||||
| Interbank accounts - liabilities | 9 | 4,515,822 | 3,876,964 | 4,515,822 | 3,876,964 | |||||||||||||||
| Interbranch accounts - liabilities | 23,517 | 18,527 | 23,518 | 18,528 | ||||||||||||||||
| Borrowings and domestic onlendings | 32,836 | 24,877 | 33,001 | 25,071 | ||||||||||||||||
| Derivative financial instruments | 8 | 76,042 | 66,472 | 76,042 | 66,549 | |||||||||||||||
| Other financial liabilities | 17 | 519,918 | 651,964 | 903,262 | 807,287 | |||||||||||||||
| Provisions | 20 | 22,024 | 21,682 | 22,024 | 21,682 | |||||||||||||||
| Total liabilities | 29,696,908 | 27,945,001 | 29,972,443 | 27,919,202 | ||||||||||||||||
| Capital | 8,655,706 | 8,655,705 | 8,655,706 | 8,655,705 | ||||||||||||||||
| Capital reserve | 14,822 | 11,566 | 14,822 | 11,566 | ||||||||||||||||
| Profit reserve | 55,062 | 76,118 | 55,062 | 76,118 | ||||||||||||||||
| Other comprehensive income | (254,867 | ) | (212,195 | ) | (254,867 | ) | (212,195 | ) | ||||||||||||
| Treasury shares | (42,554 | ) | (42,555 | ) | (42,555 | ) | (42,555 | ) | ||||||||||||
| Total shareholders' equity of controlling shareholders | 21 | 8,428,169 | 8,488,639 | 8,428,169 | 8,488,639 | |||||||||||||||
| Non-controlling interest | - | - | 84,779 | 74,165 | ||||||||||||||||
| Shareholders’ equity | 8,428,169 | 8,488,639 | 8,512,948 | 8,562,804 | ||||||||||||||||
| Total liabilities and shareholders’ equity | 38,125,077 | 36,433,640 | 38,485,390 | 36,482,006 | ||||||||||||||||
9
Individual and consolidated financial statements of income
Quarters ended March 31, 2022 and 2021
(Amounts expressed in thousands of reais)
| Parent company | Consolidated | |||||||||||||||||||
| Note | 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | ||||||||||||||||
| Loan operations | 10g | 471,277 | 283,354 | 485,016 | 285,193 | |||||||||||||||
| Income from Foreign Exchange Operations | 8,827 | 2,859 | 8,827 | 2,859 | ||||||||||||||||
| Income (loss) from interbank funds applied | 6b | 25,310 | 6,420 | 26,053 | 6,420 | |||||||||||||||
| Income (loss) from securities and derivative financial instruments | 7c | 344,502 | 87,687 | 344,942 | 87,556 | |||||||||||||||
| Income (loss) from derivative financial instruments | 8d | 17,501 | (20,251 | ) | 16,469 | (20,251 | ) | |||||||||||||
| Financial intermediation revenues | 867,417 | 360,069 | 881,307 | 361,776 | ||||||||||||||||
| Money market repurchase agreements | (336,448 | ) | (56,744 | ) | (336,388 | ) | (55,777 | ) | ||||||||||||
| Loan operations and onlendings | (380 | ) | (378 | ) | (380 | ) | (378 | ) | ||||||||||||
| Financial intermediation expenses | (336,828 | ) | (57,122 | ) | (336,768 | ) | (56,155 | ) | ||||||||||||
| Gross income (loss) from financial intermediation | 530,589 | 302,948 | 544,539 | 305,622 | ||||||||||||||||
| Allowance for doubtful accounts | 10 f | (243,952 | ) | (94,792 | ) | (243,963 | ) | (94,797 | ) | |||||||||||
| Income (loss) from provisions for loss | (243,952 | ) | (94,792 | ) | (243,963 | ) | (94,797 | ) | ||||||||||||
| Revenues from services rendered | 22 | 144,813 | 73,982 | 288,017 | 139,382 | |||||||||||||||
| Personnel expenses | 23 | (128,637 | ) | (74,953 | ) | (145,121 | ) | (81,861 | ) | |||||||||||
| Other administrative expenses | 24 | (294,793 | ) | (188,068 | ) | (320,214 | ) | (203,256 | ) | |||||||||||
| Tax expenses | (38,335 | ) | (22,821 | ) | (56,406 | ) | (27,615 | ) | ||||||||||||
| Equity in income of subsidiaries | 14a | 53,417 | 28,736 | - | - | |||||||||||||||
| Equity in income of associated companies | (5,572 | ) | - | (5,572 | ) | - | ||||||||||||||
| Other operating revenues | 25 | 50,948 | 32,223 | 74,333 | 40,649 | |||||||||||||||
| Other operating expenses | 26 | (151,368 | ) | (67,579 | ) | (174,318 | ) | (76,999 | ) | |||||||||||
| Other operating revenues (expenses) | (369,527 | ) | (218,480 | ) | (339,281 | ) | (209,701 | ) | ||||||||||||
| Operating income | (82,890 | ) | (10,325 | ) | (38,705 | ) | 1,124 | |||||||||||||
| Other revenues | 46,973 | 11,354 | 46,981 | 11,354 | ||||||||||||||||
| Other expenses | (5,476 | ) | (6,875 | ) | (7,267 | ) | (7,256 | ) | ||||||||||||
| Other revenues and expenses | 27 | 41,497 | 4,479 | 39,714 | 4,098 | |||||||||||||||
| Income (loss) before tax on profit | (41,393 | ) | (5,846 | ) | 1,009 | 5,221 | ||||||||||||||
| Provision for income tax | - | (7,389 | ) | (23,111 | ) | (12,431 | ) | |||||||||||||
| Provision for social contribution | - | (6,061 | ) | (10,102 | ) | (7,885 | ) | |||||||||||||
| Deferred tax assets | 19 | 58,396 | 34,168 | 59,674 | 35,932 | |||||||||||||||
| Taxes and profit sharing | 58,396 | 20,718 | 26,461 | 15,616 | ||||||||||||||||
| Income (loss) for the quarter | 17,003 | 14,872 | 27,470 | 20,837 | ||||||||||||||||
| Interest of controlling shareholders | 17,003 | 14,872 | ||||||||||||||||||
| Minority interest in subsidiaries | 10,467 | 5,966 | ||||||||||||||||||
| Net earnings (losses) per share | ||||||||||||||||||||
| Basic earnings per share - R$ | 0.00662 | 0.01953 | ||||||||||||||||||
| Diluted earnings per share – R$ | 0.00661 | 0.01927 | ||||||||||||||||||
10
Individual and consolidated financial statements of comprehensive income
Quarters ended March 31, 2022 and 2021
(Amounts expressed in thousands of reais)
| Parent company | Consolidated | |||||||||||||||
| 3/31/2022 | 3/31/2021 | 3/31/2022 | 3/31/2021 | |||||||||||||
| Net income (loss) for the quarter | 17,003 | 14,872 | 27,470 | 20,837 | ||||||||||||
| Other comprehensive income for the quarter | ||||||||||||||||
| Items that can be subsequently reclassified to income (loss) | ||||||||||||||||
| Income (loss) from fair value appraisal of securities available for sale | (58,182 | ) | (146,761 | ) | (58,182 | ) | (146,562 | ) | ||||||||
| Income from exchange rate change | (10,672 | ) | - | (10,672 | ) | - | ||||||||||
| Tax effect | 26,182 | 66,042 | 26,182 | 65,953 | ||||||||||||
| Total comprehensive income for the quarter | (25,669 | ) | (65,847 | ) | (15,202 | ) | (59,772 | ) | ||||||||
| Allocation of comprehensive income | ||||||||||||||||
| Controlling shareholders’ comprehensive income portion | (25,669 | ) | (65,847 | ) | ||||||||||||
| Non-controlling shareholders’ income portion | 10,467 | 6,075 | ||||||||||||||
| Total comprehensive income for the quarter | (15,202 | ) | (59,772 | ) | ||||||||||||
11
Individual and consolidated statements of cash flows
Quarters ended March 31, 2022 and 2021
(Amounts expressed in thousands of reais)
| Parent company | Consolidated | |||||||||||||||
| 3/31/2022 | 3/31/2021 | 3/31/2022 | 3/31/2021 | |||||||||||||
| Prepared by indirect method | ||||||||||||||||
| Operating activities | ||||||||||||||||
| Net income (loss) for the period | 17,003 | 14,872 | 27,470 | 20,837 | ||||||||||||
| Provision for income tax and social contribution | - | (13,450 | ) | 33,213 | 20,316 | |||||||||||
| Provision for expected losses associated with credit risk | 243,952 | 94,792 | 243,963 | 94,797 | ||||||||||||
| Deferred taxes | (58,396 | ) | (34,168 | ) | (59,674 | ) | (35,932 | ) | ||||||||
| Civil, labor and tax (Reversals)/provisions | 4,092 | 3,704 | 4,092 | 3,704 | ||||||||||||
| Equity in income of subsidiaries | (53,417 | ) | (28,736 | ) | - | - | ||||||||||
| Equity in income of associated companies | 5,572 | - | 5,572 | - | ||||||||||||
| Exchange rate income or loss | (834 | ) | (1,006 | ) | (834 | ) | (1,006 | ) | ||||||||
| Depreciation and amortization | 34,869 | 17,340 | 36,848 | 17,685 | ||||||||||||
| Other capital gains (losses) | (38,487 | ) | (6,891 | ) | (36,930 | ) | (6,511 | ) | ||||||||
| Provision for revenues from performance | (26,772 | ) | (20,689 | ) | (40,734 | ) | (20,689 | ) | ||||||||
| Changes in assets and liabilities | ||||||||||||||||
| Increase (Decrease) in interbank funds applied | 350,276 | (5,949 | ) | 290,187 | (5,949 | ) | ||||||||||
| (Increase) Decrease in trading securities | (1,395 | ) | (338,893 | ) | (166,243 | ) | (328,669 | ) | ||||||||
| (Increase) Decrease in interbank accounts/relations | 629,684 | 361,714 | 629,684 | 361,714 | ||||||||||||
| Increase (Decrease) in interbranch accounts | 6,268 | (11,511 | ) | 6,268 | (11,511 | ) | ||||||||||
| (Increase) Decrease in loan operations | (1,067,711 | ) | (1,476,100 | ) | (1,112,811 | ) | (1,514,777 | ) | ||||||||
| (Increase) Decrease in other financial assets | (112,270 | ) | (161,590 | ) | (143,307 | ) | (172,596 | ) | ||||||||
| (Increase) Decrease in Deferred tax assets | (26,182 | ) | - | (26,182 | ) | - | ||||||||||
| (Increase) Decrease in other assets | (29,423 | ) | (22,984 | ) | (52,351 | ) | (20,865 | ) | ||||||||
| Increase (Decrease) in deposits | 409,515 | 938,289 | 665,493 | 947,178 | ||||||||||||
| Increase (Decrease) in money market repurchase commitments | 87,795 | 62,004 | (78,703 | ) | 67,271 | |||||||||||
| Increase (Decrease) in acceptances and endorsements | 724,924 | (24,595 | ) | 708,863 | (24,543 | ) | ||||||||||
| Increase (Decrease) in borrowings and domestic onlendings | 7,959 | (496 | ) | 7,930 | (496 | ) | ||||||||||
| Increase (decrease) in derivative financial instruments | 9,901 | 35,351 | 86,031 | 35,351 | ||||||||||||
| Increase (Decrease) in provisions | (3,750 | ) | (3,059 | ) | (3,750 | ) | (3,059 | ) | ||||||||
| Increase (Decrease) in Other financial liabilities | (350,452 | ) | 124,270 | (129,829 | ) | 115,562 | ||||||||||
| Cash generated by (used in) operating activities | 762,271 | (497,781 | ) | 894,266 | (462,188 | ) | ||||||||||
| Income tax and social contribution paid | - | (12,416 | ) | (25,819 | ) | (19,111 | ) | |||||||||
| Cash generated by (used in) operating activities | 762,271 | (510,197 | ) | 868,447 | (481,299 | ) | ||||||||||
| Investment activities | ||||||||||||||||
| Acquisition of investments | (917,275 | ) | (117,630 | ) | - | (90,058 | ) | |||||||||
| Disposal of fixed assets | (2,619 | ) | - | (8,954 | ) | - | ||||||||||
| Acquisition of fixed assets | - | (2,691 | ) | - | (3,349 | ) | ||||||||||
| Acquisition of intangible assets | (69,653 | ) | (60,071 | ) | (710,015 | ) | (95,635 | ) | ||||||||
| Disposal of intangible assets | - | - | 2,214 | - | ||||||||||||
| Increase in securities available for sale | (2,077,801 | ) | (295,760 | ) | (1,980,884 | ) | (295,760 | ) | ||||||||
| Disposal of securities available for sale | 2,662,965 | 253,864 | 2,657,740 | 253,864 | ||||||||||||
| Acquisition of securities held to maturity | (125,027 | ) | (535,500 | ) | (146,622 | ) | (535,500 | ) | ||||||||
| Disposal of securities held to maturity | 26,494 | - | 26,494 | - | ||||||||||||
| Dividends received | 760 | 22,965 | - | - | ||||||||||||
| Net cash invested in investment activities | (282,806 | ) | (734,823 | ) | (160,027 | ) | (766,438 | ) | ||||||||
| Financing activities | ||||||||||||||||
| Capital increase | - | - | - | - | ||||||||||||
| Purchase of options - Share-based payments | - | (670 | ) | - | (670 | ) | ||||||||||
| Repurchase of treasury shares | (38,059 | ) | - | - | - | |||||||||||
| Funds from treasury shares | - | 7,040 | - | 7,040 | ||||||||||||
| Interest on own capital paid | - | (10,373 | ) | (38,059 | ) | (10,373 | ) | |||||||||
| Acquisition of non-controlling interest with no change in control | - | - | - | (4,900 | ) | |||||||||||
| Net cash from (invested in) financing activities | (38,059 | ) | (4,003 | ) | (38,059 | ) | (8,903 | ) | ||||||||
| Increase (decrease) in cash and cash equivalents | 441,856 | (1,249,023 | ) | 670,361 | (1,256,640 | ) | ||||||||||
| Cash and cash equivalents at the beginning of the period | 464,337 | 2,139,626 | 500,444 | 2,177,652 | ||||||||||||
| Cash and cash equivalents at the end of the period | 907,027 | 891,609 | 1,171,639 | 922,018 | ||||||||||||
| Effect of changes in exchange rate on cash and cash equivalents | (834 | ) | (1,006 | ) | (834 | ) | (1,006 | ) | ||||||||
| Increase (decrease) in cash and cash equivalents | 441,856 | (1,249,023 | ) | 670,361 | (1,256,640 | ) | ||||||||||
| Transactions not involving cash | ||||||||||||||||
| Fair value adjustments of instruments available for sale | 58,182 | (80,719 | ) | 58,182 | (80,610 | ) | ||||||||||
12
Individual and consolidated statements of changes in shareholders’ equity
Quarters ended March 31, 2022 and 2021
(Amounts expressed in thousands of reais)
| Profit reserve | ||||||||||||||||||||||||||||||||||||||||||||||||
| Note | Capital | Capital reserve | Profit legal | Profit statutory | Other comprehensive income | Retained earnings (loss) | Treasury shares | Total Bank’s shareholders' equity | Other comprehensive income | Non-controlling interests in shareholders’ equity of subsidiaries | Total shareholders’ equity | |||||||||||||||||||||||||||||||||||||
| Balances at January 01, 2021 | 3,216,455 | 83,714 | 17,206 | 65,778 | 37,056 | - | (117,521 | ) | 3,302,688 | (780 | ) | 48,581 | 3,350,489 | |||||||||||||||||||||||||||||||||||
| Capital increase | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||
| Cost for the issue of shares | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||
| Share-based payments | - | (670 | ) | - | - | - | - | - | (670 | ) | - | - | (670 | ) | ||||||||||||||||||||||||||||||||||
| Income (loss) for the period | 21d | - | - | - | - | - | 14,872 | - | 14,872 | - | 5,966 | 20,837 | ||||||||||||||||||||||||||||||||||||
| Proposed allocations: | - | |||||||||||||||||||||||||||||||||||||||||||||||
| Formation of legal reserve | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||
| Formation of profit reserve payable | - | - | - | 4,499 | - | (4,499 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
| Interest on own capital | - | - | - | - | - | (10,373 | ) | - | (10,373 | ) | - | - | (10,373 | ) | ||||||||||||||||||||||||||||||||||
| Cost in the sale of treasury shares | - | (74,119 | ) | - | - | - | - | 74,119 | - | - | - | - | ||||||||||||||||||||||||||||||||||||
| Income in the sale of treasury shares | 7,040 | 7,040 | - | - | 7,040 | |||||||||||||||||||||||||||||||||||||||||||
| Acquisition of investment with non-controlling interest | - | - | - | - | - | - | - | - | - | (4,901 | ) | (4,901 | ) | |||||||||||||||||||||||||||||||||||
| Mark-to-Market | - | - | - | - | (80,719 | ) | - | - | (80,719 | ) | 109 | - | (80,610 | ) | ||||||||||||||||||||||||||||||||||
| Balances at March 31, 2021 | 3,216,455 | 8,925 | 17,206 | 70,277 | (43,663 | ) | - | (36,362 | ) | 3,232,838 | (671 | ) | 49,646 | 3,281,812 | ||||||||||||||||||||||||||||||||||
| Balances at January 01, 2022 | 8,655,706 | 11,566 | 18,937 | 57,181 | (212,195 | ) | - | (42,554 | ) | 8,488,641 | - | 74,165 | 8,562,806 | |||||||||||||||||||||||||||||||||||
| Share-based payments | - | 3,256 | - | - | - | - | - | 3,256 | - | - | 3,256 | |||||||||||||||||||||||||||||||||||||
| Income (loss) for the period | 21d | - | - | - | - | - | 17,003 | - | 17,003 | - | 10,467 | 27,470 | ||||||||||||||||||||||||||||||||||||
| Proposed allocations: | - | - | ||||||||||||||||||||||||||||||||||||||||||||||
| Formation of legal reserve | - | - | 850 | - | - | (850 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
| Formation of profit reserve payable | - | - | - | 16,153 | - | (16,153 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
| Interest on own capital | - | - | - | (38,059 | ) | - | - | - | (38,059 | ) | - | - | (38,059 | ) | ||||||||||||||||||||||||||||||||||
| Acquisition of investment with non-controlling interest | - | - | - | - | - | - | - | - | - | 147 | 147 | |||||||||||||||||||||||||||||||||||||
| Mark-to-Market | - | - | - | - | (32,000 | ) | - | - | - | - | - | (32,000 | ) | |||||||||||||||||||||||||||||||||||
| Exchange variation adjustment | - | - | - | - | (10,672 | ) | - | - | (10,672 | ) | - | - | (10,672 | ) | ||||||||||||||||||||||||||||||||||
| Balances at March 31, 2022 | 8,655,706 | 14,822 | 19,787 | 35,275 | (254,867 | ) | - | (42,554 | ) | 8,428,169 | - | 84,779 | 8,512,948 | |||||||||||||||||||||||||||||||||||
13
Individual and consolidated financial statements of value added
Quarters ended March 31, 2022 and 2021
(Amounts expressed in thousands of reais)
| Parent company | Consolidated | |||||||||||||||
| 3/31/2022 | 3/31/2021 | 3/31/2022 | 3/31/2021 | |||||||||||||
| 1. Revenues | 709,355 | 308,381 | 865,090 | 374,108 | ||||||||||||
| Financial Intermediation | 867,417 | 360,069 | 881,307 | 361,777 | ||||||||||||
| Rendering of services | 144,813 | 73,982 | 288,017 | 139,382 | ||||||||||||
| Allowance for doubtful accounts | (243,952 | ) | (94,792 | ) | (243,963 | ) | (94,797 | ) | ||||||||
| Other operating revenue and expenses | (58,923 | ) | (30,878 | ) | (60,271 | ) | (32,253 | ) | ||||||||
| 2. Financial intermediation expenses | (336,828 | ) | (57,122 | ) | (336,768 | ) | (56,154 | ) | ||||||||
| 3. Materials and services acquired from third-parties | (249,830 | ) | (165,392 | ) | (273,345 | ) | (180,113 | ) | ||||||||
| Materials, energy and other | (217,261 | ) | (149,083 | ) | (235,814 | ) | (152,954 | ) | ||||||||
| Third party services | (32,569 | ) | (16,309 | ) | (37,531 | ) | (27,159 | ) | ||||||||
| 4. Gross added value (1-2-3) | 122,697 | 85,867 | 254,977 | 137,841 | ||||||||||||
| 5. Retentions | (34,869 | ) | (17,340 | ) | (36,848 | ) | (17,685 | ) | ||||||||
| Depreciation and amortization | (34,869 | ) | (17,340 | ) | (36,848 | ) | (17,685 | ) | ||||||||
| 6. Net added value produced by the Entity (4+5) | 87,828 | 68,527 | 218,129 | 120,156 | ||||||||||||
| 7. Added value received as transfer | 47,845 | 28,736 | (5,572 | ) | - | |||||||||||
| Equity in net income of subsidiaries | 47,845 | 28,736 | (5,572 | ) | - | |||||||||||
| 8. Added value payable (6+7) | 135,673 | 97,264 | 212,557 | 120,156 | ||||||||||||
| 9. Distribution of added value | 135,673 | 97,264 | 212,557 | 120,156 | ||||||||||||
| Personnel and charges | 110,095 | 64,522 | 124,797 | 70,550 | ||||||||||||
| Direct remuneration | 88,545 | 51,407 | 100,841 | 56,445 | ||||||||||||
| Benefits | 15,923 | 10,084 | 17,836 | 10,806 | ||||||||||||
| FGTS | 5,627 | 3,031 | 6,120 | 3,299 | ||||||||||||
| Taxes, contributions and rates | (1,519 | ) | 12,535 | 49,846 | 23,311 | |||||||||||
| Federal | (6,335 | ) | 9,844 | 39,777 | 18,562 | |||||||||||
| Municipal | 4,816 | 2,691 | 10,069 | 4,749 | ||||||||||||
| Rentals | 10,094 | 5,336 | 10,444 | 5,458 | ||||||||||||
| Interest on own capital | - | 10,373 | - | 10,373 | ||||||||||||
| Retained earnings (losses) for the semester | 17,003 | 4,499 | 17,003 | 4,499 | ||||||||||||
| Non-controlling interest | - | - | 10,467 | 5,965 | ||||||||||||
14
Notes to the quarterly financial information
(In thousands of reais, unless otherwise indicated)
| 1 | Operations |
Banco Inter S.A. (“Bank”, “Inter” or “Group”) is a publicly-held company operating as a multiple-service bank based on a digital platform, as authorized by the Central Bank of Brazil and pursuant to applicable Brazilian legislation. Inter’s objective is to operate as a digital multi-service bank for individuals and companies, and among its main activities are real estate loans, payroll loans, loans for companies, rural loans, credit card operations, current account services, foreign exchange rate, investments, insurance, as well as a marketplace of non-financial services provided by means of its subsidiaries. The operations are conducted within the context of the Inter companies, working in the market in an integrated manner.
| 2 | Presentation of quarterly financial information |
This quarterly financial information has been prepared in accordance with the brazilian accounting practices applicable to the institutions authorized to operate by the Central Bank of Brazil (Bacen), and are in accordance with the accounting guidance issued by Law 4595/64 (Brazilian Financial System Law), Corporation Law, including the changes introduced by Law 11638, dated December 28, 2007 and Law 11941, dated May 27, 2009, to calculate the operations, in accordance with, when applicable, the standards and instruction of National Monetary Council (CMN), Brazilian Securities and Exchange Commission (CVM).
CMN Resolution 4966 was published in November 2021 and addresses the accounting concepts and criteria applicable to financial instruments, as well as for the designation and recognition of hedging relationships (hedge accounting) seeking the convergence of the accounting criterion of the COSIF for the requirements of the international standard of IFRS 9. The Resolution becomes effective on January 1, 2025.
CMN Resolution 4975 was published by the Central Bank of Brazil in December 2021 and establishes compliance with the Technical Pronouncement of the Accounting Pronouncements Committee (CPC) 06 (R2) – Leases, in the recognition, measurement, presentation, and disclosure of leasing operations, which becomes effective on January 1, 2025.
As of January 1, 2022, CMN Resolutions 4818 and BCB 02 came into force, providing for the adoption of the International Accounting Standards (IFRS) for institutions that disclose or publish consolidated financial statements, voluntarily or by virtue of legal, regulatory, statutory or contractual provisions. It also applies to the consolidated financial statements for periods of less than one year.
Pursuant to Article 77 of Resolution 4966, the institutions mentioned in Article 1 of the same Resolution are allowed to prepare and disclose consolidated financial statements in accordance with the Accounting Standard for Institutions Regulated by the Central Bank of Brazil (Cosif).
In the preparation of the individual and consolidated financial information, equity interests, relevant balances receivable and payable, revenues and expenses arising from transactions between subsidiaries, and unrealized results between these companies were eliminated, and the interest of minority shareholders was recorded in the income (loss) and shareholders’ equity.
15
The individual and consolidated financial information prepared based on the international accounting standard issued by the International Accounting Standards Board (IASB) for the period ended March 31, 2022, will be disclosed, within the legal term, at https://ri.bancointer.com.br.
Banco Inter, together with the market and the Central Bank, has already started the impact assessments and necessary changes to meet its implementation, and assessments on the identification and treatment of expected impacts.
Management hereby declares that the disclosures made in Inter’s individual and consolidated financial information shows all the relevant information used in its management and that the accounting practices described have been consistently applied between the periods.
| a. | Authorization to issue quarterly financial information |
The issue of quarterly financial information was authorized by the Board of Directors during a meeting held on May 16, 2022.
| b. | Use of estimates and judgments |
The preparation of this quarterly financial information, Management used judgments, estimates and assumptions that affect the application of policies of the Bank, and the reported amounts of assets, liabilities, revenues and expenses. Actual results may differ from these estimates.
| (i) | Judgments |
Information about judgment referring to the adoption of accounting policies which impact significantly the amounts recognized in the quarterly financial information is included in the following notes:
| · | Note 3(a) – Consolidation: determination whether Inter has control over an investee; |
| · | Note 14 - Equity in net income in investees: determines if Inter has significant influence over an investee. |
| (ii) | Uncertainties on assumptions and estimates |
Estimates and assumptions are reviewed on a continuous basis. Reviews of estimates are recognized on a prospective basis. Information on uncertainties as to assumptions and estimates that pose a high risk of resulting in a material adjustment within the next quarter as of March 31, 2022 is included in the following notes:
| · | Note 7 – Estimates of fair value for certain financial instruments and impairment losses of securities classified into the category of securities for trading and available for sale; |
| · | Note 10 – Provisioning criteria: the measurement of expected losses associated with credit risk; |
| · | Note 12 – Recognition of deferred tax assets: availability of future taxable income against which tax losses may be used; |
| · | Note 14 – impairment of goodwill; |
| · | Note 20 - recognition and measurement of provisions and contingencies: main assumptions regarding the likelihood and magnitude of the outflows of funds. |
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| 3 | Significant accounting policies |
| a. | Basis of consolidation |
The following table presents the subsidiaries/funds included in the consolidated quarterly financial information for the period:
| Interest in capital (%) | ||||||||||||||
| Direct subsidiaries | Line of business | Common Shares and/or Units | 03/31/2022 | 12/31/2021 | ||||||||||
| Pronto Money Transfer Inc. (USEND) | Rendering of services | 16,000,000.00 | 100.0 | % | 0.0 | % | ||||||||
| Inter Marketplace Ltda. | Rendering of services | 4,999,999 | 99.9 | % | 99.9 | % | ||||||||
| Inter Distribuidora de Títulos e Valores Mobiliários Ltda. | Securities distributor | 24,583,333 | 98.3 | % | 98.3 | % | ||||||||
| Inter Asset Holding S.A. | Asset manager | 267,074,209 | 70.0 | % | 70.0 | % | ||||||||
| Acerto Cobrança e Informações S.A. | Collection | 100,000,000,000 | 60.0 | % | 60.0 | % | ||||||||
| Inter Digital Corretora e Consultoria de Seguros Ltda. | Insurance brokers | 59,750 | 60.0 | % | 60.0 | % | ||||||||
| IM Designs Desenvolvimento de Software Ltda. | Rendering of services | 100,000,000 | 50.0 | % | 50.0 | % | ||||||||
| Interest in capital (%) | ||||||||||||||
| Controlled Funds | Line of business | Common Shares and/or Units | 03/31/2022 | 12/31/2021 | ||||||||||
| TBI Fundo de Investimento Multimercado Crédito Privado Investimento no exterior | Investment Fund | 443,689,064 | 100.0 | % | 100.0 | % | ||||||||
| TBI Fundo De Investimento Renda Fixa Crédito Privado | Investment Fund | 388,157,511 | 100.0 | % | 100.0 | % | ||||||||
| Inter Titulos Fundo de Investimento | Investment Fund | 489,302 | 98.0 | % | 97.9 | % | ||||||||
| BMA Inter Fundo De Investimento Em Direitos Creditórios Multissetorial | Investment Fund | 349,494,000 | 90.7 | % | 90.0 | % | ||||||||
17
| Interest in capital (%) | ||||||||||||||
| Indirect subsidiaries | Line of business | Common Shares and/or Units | 03/31/2022 | 12/31/2021 | ||||||||||
| Inter Café LTDA. | Rendering of services | 10,000 | 100.0 | % | 100.0 | % | ||||||||
| Inter Boutiques Ltda. | Rendering of services | 10,000 | 100.0 | % | 100.0 | % | ||||||||
| Inter Food S.A | Rendering of services | 10,000,000 | 70.0 | % | 70.0 | % | ||||||||
| Inter Asset Gestão de Recursos LTDA | Fund management | 30,707 | 70.0 | % | 70.0 | % | ||||||||
| Interest in capital (%) | ||||||||||||||
| Entity (Associated company) | Line of business | Common Shares and/or Units | 03/31/2022 | 12/31/2021 | ||||||||||
| Granito Soluções em Pagamento S.A. | Acquirer | 19,042,315 | 45.0 | % | 45.0 | % | ||||||||
| (i) | Subsidiaries |
Inter controls an entity when it is exposed to, or has a right over, the variable returns arising from its involvement with the entity and can affect those returns exerting its power over the entity. The quarterly financial information of subsidiaries is included in the consolidated quarterly financial information as of the date on which Inter obtains control until the date on which control ceases to exist.
In the individual and consolidated quarterly financial information, when required, the individual quarterly financial information of the subsidiaries is recognized under the equity method.
| (ii) | Investments in entities are calculated under the equity method. |
The Group’s investment in entities numbered by the equity method is comprised of its participations in associated companies.
Associated companies are the entities in which Inter has, directly or indirectly, significant influence but not control or jointly-control on financial and operating policies. To be classified as a jointly controlled entity, there must be a contract allowing Inter to have shared control over the entity and giving Inter rights over net assets of the jointly owned entity, and not rights over its specific assets and liabilities.
Such investments are initially recognized by the cost, which includes expenses with transactions. After initial recognition, quarterly financial information includes Inter’s interest in investees net income or loss for the year and other comprehensive income up to the date in which significant influence or joint control no longer exists. In individual quarterly financial information of the parent company, investments in subsidiaries are also accounted for using such method.
18
| (iii) | Business combinations |
Business combinations are recorded using the acquisition method when the set of activities and acquired assets addresses the definition of a business and the control is transferred to Inter. When determining whether a set of activities and assets is a business, Inter assesses whether the set of assets and activities acquired includes, at least, an input and a substantive process that together contribute significantly to the ability to generate output.
Inter has the option of applying a “concentration test” that allows a simplified assessment if a set of acquired activities and assets is not a business. The optional concentration test is met if, substantially, the entire fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets.
The consideration transferred is usually measured at fair value, as well as the identifiable net assets acquired. Any goodwill arising from the transaction is evaluated for impairment loss. Gains in a bargain purchase are immediately recognized in profit or loss. Transaction costs are recorded in profit or loss as incurred, except the costs related to the issue of debt or equity instruments.
Transferred consideration does not include amounts referring to payment of pre-existing relations. These amounts are usually recognized in income (loss) for the period.
Any contingent consideration payable is measured at its fair value on acquisition date. If the payment is classified as an equity instrument, it is not remeasured and the liquidation is recorded in shareholders equity. The remaining contingent consideration is remeasured at fair value on each reporting date, and subsequent changes in fair value are recorded in the income statement for the period.
| (iv) | Acquisition of investments |
| (iv.1) Acquisition of subsidiaries |
| (iv.1.1) Acquisition of subsidiary Pronto Money Transfer Inc. (USEND). |
On January 14, 2022, Inter closed the transaction for the acquisition of 100% of the capital of the subsidiary Pronto Money Transfer Inc. (USEND). On January 25, the transaction was authorized by the Secretary of State of the State of California, and the acquisition by Inter was successfully completed. USEND is a U.S. company with 16 years of experience in the field of foreign exchange and financial services, offering, among other products, a digital Global Account solution to carry out money transfers between countries. It has licenses to act as a Money Transmitter in more than 40 US states, and can offer services such as digital wallet, debit card, bill payment, among others, to US residents. Its base of more than 150,000 clients also has access to purchase gift cards and recharge cell phones. With the acquisition of USEND, Inter started its financial activities in the United States, expanding its offer of financial and non-financial products both for U.S. residents and its Brazilian clients, integrating the solutions of the acquired company with the Inter's platform. USEND brought to Inter a portfolio of cross-border products already in operation, in addition to the infrastructure, licenses, and experience in the United States and Brazil necessary to enter this market, including the Global Account Inter.
19
| (iv.1.1.1) Identifiable assets acquired, liabilities assumed and goodwill |
The fair value of identifiable assets and liabilities of USEND at the acquisition date is as follows:
| In thousands of reais | ||||
| 2022 | ||||
| Assets | 236,088 | |||
| Cash and cash equivalents (8) | 160,556 | |||
| Loans and advances to financial institutions (10) | 17,861 | |||
| Securities (12) | 4,486 | |||
| Property, plant and equipment (14) | 6,227 | |||
| Other assets (17) | 46,957 | |||
| Liabilities | (156,642 | ) | ||
| Loans and onlendings (17) | (2 | ) | ||
| Other liabilities (24) | (156,640 | ) | ||
| Total net identifiable assets at fair value | 79,466 | |||
| Goodwill on acquisition (a) | 838,411 | |||
| (a) | Inter engaged an independent valuation service to prepare the study for the purchase price allocation (“PPA”) in the identifiable assets acquired, liabilities assumed and goodwill. However, as of the date of the present quarterly financial information, the study is still in the preparation phase. The preliminary goodwill in the amount of R$ 838,411 resulting from the acquisition comprises the value of future economic benefits arising from the synergies arising from part of our internationalization strategy that will open our way to the global market even more, facilitating our operations abroad. |
(iv.1.1.2) Acquisition costs
Inter incurred acquisition-related costs of R$ 5,821 on attorney’s fees, audit and due diligence costs. Attorney’s fees and costs of due diligence were recorded as “Administrative expenses” in the statement of income.
(iv.1.2) Acquisition of subsidiary Inter Café Ltda.
(iv.1.2.1) Consideration
On December 20, 2021, Inter (Marketplace) acquired Inter Café, a company that provides cafeteria services with the sale of food prepared for consumption on site.
(iv.1.2.2) Consideration transferred
The price paid for the acquisition of the company “Inter Café” was R$ 10 at fair value, paid in one installment.
20
(iv.1.3) Acquisition of subsidiary Inter Boutiques Ltda.
(iv.1.3.1) Consideration
On December 20, 2021, Marketplace acquired Inter Boutiques, a non-specialized out-of-store trade via the internet, providing intermediation of services and business in general; The retail trade carried out in department stores and interest in other companies, as a partner, shareholder or quota holder.
This new investment has online and offline experiences throughout Brazil. This acquisition complements the service provision segment for the sale of goods on the digital platform offered by Marketplace.
(iv.1.3.2) Consideration transferred
The price paid for the acquisition of the company “Inter Boutiques” was R$ 10 at fair value, paid in one installment.
(iv.1.4) Acquisition of subsidiary IM Designs Desenvolvimento de Software Ltda.
(iv.1.4.1) Consideration
On July 1, 2021, Inter acquired IM Designs, a company specialized in developing 3D tools for the creation of visualization projects for indoor and outdoor environments, through virtual reality (VR), augmented reality (AR) and mixed reality (XR).
Thinking about the potential of new technologies and their applications in the market, Inter acquired IM Designs to bring more innovative products and services to the super app.
(iv.1.4.2) Consideration transferred
The price paid for the acquisition of the company “IM Designs” was R$ 15,000.
(iv.1.4.3) Identifiable assets acquired, liabilities assumed and goodwill
Inter engaged an independent valuation service to prepare the study for the purchase price allocation (“PPA”) in the identifiable assets acquired, liabilities assumed and goodwill. However, up to the date of presentation of quarterly financial information, the study is still in the preparation phase and should be completed and account for its effects by the end of 2022.
On a provisional basis, the differences between the amounts paid in the acquisition total R$ 15,000, of which R$ 10,000 has already been paid and another R$ 5,000 is payable. The amounts of net assets (R$ 3,257) in the investees were allocated as goodwill at Inter, in the amount of R$ 11,743.
21
(iv.1.5) Acquisition of subsidiary Duo Gourmet
(iv.1.5.1) Consideration
On April 13, 2021, Inter obtained control of “Duo Gourmet”, engaged in offering a benefits program via app to consumers and restaurants through the Duo Gourmet brand, by acquiring 70% of the shares of the voting capital of such entity.
With the transaction, the Duo Gourmet operation will be developed by a new subsidiary of Inter Marketplace, Inter Food S.A., and will rely on the experience brought by the founding partners of the Duo Gourmet brand, a platform already consolidated in a loyalty program in the food market, operating in 14 cities in 10 Brazilian States and many partner restaurants.
This new investment, combined with the recently announced partnership with Delivery Center, strengthens the value proposition for the clients and consolidates Inter Shop’s food vertical, which will now have online and offline experiences throughout Brazil.
(iv.1.5.2) Consideration transferred
The acquisition price of the company “Duo Gourmet” was R$ 3,810, of which R$ 2,810 in the form of payment to the partners and R$ 1,000 as capital contribution to the investee.
(iv.1.5.3) Identifiable assets acquired, liabilities assumed and goodwill
Inter engaged an independent valuation service to prepare the study for the purchase price allocation (“PPA”) in the identifiable assets acquired, liabilities assumed and goodwill. However, up to the date of presentation of this quarterly financial information, the study is still in the preparation phase and should be completed and account for its effects in 2022.
On a provisional basis, the differences between the amounts paid in the acquisitions and the values of the net assets in the investees were allocated as goodwill on Inter Marketplace.
(iv.1.6) Acquisition of subsidiary Acerto Cobrança e Informação Cadastral S.A.
(iv.1.6.1) Consideration
On February 12, 2021, Inter obtained equity control of Acerto Cobrança e Informação Cadastral S.A. (“Meu Acerto”), focused on debt renegotiation, collection, reactivation, retention of client bases and upselling, by acquiring 60% of the shares of the voting capital of that entity.
The acquisition of control of Meu Acerto intends to strengthen Inter’s collection activity, accelerating the evolution of the Winback model, which comprises the Reactivation and Retention pillars of client bases, in addition to upselling, aiming to bring competitive advantages relevant not only for Inter, but also for several players operating in the digital market.
22
(iv.1.6.2) Consideration transferred
The acquisition price of Meu Acerto was R$ 45,000, of which R$ 25,000 in the form of payment to the partners (R$ 7,250 paid in cash and R$ 17,750 to be paid in two installments, in 2022 and 2023, adjusted by the CDI rate), as well as R$ 20,000 in the form of a capital contribution to the investee.
(iv.1.6.3) Identifiable assets acquired, liabilities assumed and goodwill
Inter engaged an independent valuation service to prepare the study for the purchase price allocation (“PPA”) in the identifiable assets acquired, liabilities assumed and goodwill.
The table that follows summarizes the assets acquired and liabilities assumed on the acquisition date.
| In thousands of reais | 2021 | |||
| Financial instruments | 20,212 | |||
| Other financial assets | 2,257 | |||
| Property, plant and equipment | 499 | |||
| Intangible assets | 13,208 | |||
| Borrowings and onleading’s | (1,445 | ) | ||
| Other liabilities | (1,976 | ) | ||
| Net assets | 32,755 | |||
The goodwill arising from the acquisition was determined as follows.
| In thousands of reais | 2021 | |||
| Consideration transferred | 45,000 | |||
| Non-controlling interest, based on the proportionate interest in the acquired assets and recognized liabilities. | 13,053 | |||
| Net assets | (32,755 | ) | ||
| Goodwill | 25,298 | |||
(iv.1.1.4) Acquisition costs
Inter incurred acquisition-related costs on attorney’s fees and due diligence costs. Such costs were recorded as “Administrative expenses” in the statement of income.
(iv.2) Acquisition of associated companies
(iv.2.1) Acquisition of investment in associated company - BMG Granito Soluções em Pagamento S.A.
(iv.2.1.1) Consideration
On March 5, 2021, Inter concluded the acquisition of a 45% equity interest in BMG Granito Soluções em Pagamento S.A. (“Granito”). The interest in Granito is part of Inter’s strategy to acquire new companies with a strong technological basis and innovative profile.
Founded in 2015, Granito operates in the payment capture sector (acquisition), developing customized products for its clients.
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(iv.2.1.2) Consideration transferred
The acquisition price of the investment in the company “Granito” was R$ 90,000, in the form of a capital contribution to the investee.
(iv.2.1.3) Identifiable assets acquired, liabilities assumed and goodwill
Inter engaged an independent valuation service to prepare the study for the purchase price allocation (“PPA”) in the identifiable assets acquired, liabilities assumed and goodwill. However, up to the date of presentation of quarterly financial information, the study is still in the preparation phase and should be completed and account for its effects in 2022.
On a provisional basis, the differences between the amounts paid in the acquisitions and the values of the net assets in the investees were allocated as goodwill (See Note 14).
| (v) | Interest of non-controlling shareholders |
Inter accounts for the portion related to non-controlling interest under shareholder’s equity in the consolidated balance sheet. In the purchase transactions of non-controlling interest, the difference between the amount paid and the interest acquired is recorded in income (loss) for the period.
Income or loss attributable to non-controlling shareholders is presented in the consolidated statement of income as income or loss attributable to non-controlling shareholders.
| (vi) | Balances and transactions eliminated in consolidation |
Balances and transactions between companies of Inter, including any unrealized gains or losses arising from intercompany transactions, are eliminated in the consolidation process. Unrealized losses are eliminated in the same way as unrealized gains, but only up to the point where there is evidence of loss due to impairment.
| b. | Measuring basis |
The quarterly financial information was prepared based on the historical cost, except for certain financial instruments measured at its fair values, as described in the following accounting practices. The historical cost is usually based on the fair value of consideration paid in exchange of non-financial assets and under the interest effective rate method for financial instruments which are not measured at fair value.
| c. | Functional currency |
This quarterly financial information is presented in Brazilian reais, Inter’s functional currency. All quarterly financial information presented in Brazilian reais has been rounded to the nearest thousand, unless otherwise indicated.
Transactions in foreign currency are translated into the respective functional currency (Real) at the exchange rate on the transaction date.
Monetary assets and liabilities denominated and calculated in foreign currency are translated into the functional currency (Real) at the exchange rate on the date. Non-monetary assets and liabilities denominated in foreign currency that are measured at fair value are translated into the functional currency (Real) at the foreign exchange rate on the date the fair value was disclosed. Non-monetary items that are measured based on the historical cost in foreign currency are translated using the rate of the transaction date. Exchange differences arising from the conversion are charged to income.
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| d. | Statement of Income |
Revenues and expenses are recorded under the accrual method and are recognized in profit and loss, simultaneously, regardless of receipt or payment. Formal transactions with fixed rate financial charges are updated on a daily pro rata basis, based on the variation of the respective agreed ratios, and transactions with fixed rate financial charges are recorded at the redemption value, restated for unearned income or expenses corresponding to the future period. Transactions pegged to foreign currencies are restated up to the balance sheet date under current tax criteria.
| e. | Cash and cash equivalents |
Cash and cash equivalents include cash, bank deposits, money market repurchase commitments an in interbank deposits, highly liquid short-term investments with a negligible risk of change in values and limits, maturity date equal or lower than 90 days, on acquisition date, which are used by Inter to manage its short-term commitments.
| f. | Interbank funds applied |
Interbank funds applied are recorded at acquisition cost, including income earned up to the balance sheet date, less provision for devaluation losses, when applicable.
| g. | Securities |
Securities are registered and classified in accordance with Bacen Circular Letter 3068/01, which establishes the criteria for assessing and accounting for these securities. Inter has securities classified as:
| · | Securities available for sale: Include securities stated at market value, while their intrinsic yields recognized in the statement of income and gains and losses resulting from the variations of the market value and not yet realized are recorded in a specific account in shareholders' equity (equity valuation adjustment) up to its realization for sale, net of corresponding tax effects, when applicable. |
| · | Trading securities: Those acquired with the purpose of being actively and frequently negotiated must be under the “trading securities” category. Gains and losses derived from changes in market value are recognized in the statement of income. |
| · | Securities held to maturity: It refers to securities which the Bank intends and has financial capacity to maintain them until the maturity date. The financial capacity is supported by a cash flow projection that does not consider the possibility of trading these securities. These securities are marked-to-market. |
Securities classified in the available for sale categories, as well as derivative financial instruments are shown in the consolidated balance sheet at their estimated fair value.
The fair value is generally based on market price quotes or market price quotes for assets or liabilities with similar characteristics. If these market prices are not available, the fair values are based on quotes from market operators, pricing models, discounted cash flow or similar techniques, for which the determination of the fair value may require judgment or significant estimate by management.
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| h. | Derivative financial instruments |
Derivative financial instruments are valued at market value in the monthly trial balances and balance sheets. Increases or decreases in value are recorded in revenue or expense accounts of the respective financial instruments.
The mark-to-market methodology of derivative financial instruments was established considering the average price of trading on the date of calculation, or, in the absence thereof, conventional and proven methodologies, pricing models that reflect the net realizable value, according to derivative characteristics.
Transactions are recorded at fair value considering the mark-to-market methodologies adopted by Inter. Moreover, their adjustment may be recorded in income (loss) or shareholders’ equity, depending on the classification between accounting hedge, its categories and economic hedge.
Derivative financial instruments used to offset, in whole or in part, the risks arising from exposure to changes in market value or in cash flow of assets or financial liabilities, commitment or predicted future transaction, are considered hedge instruments and are classified according to their nature as:
| · | Market risk hedge: financial instruments classified like this, as well as of the hedged item, have the valuations or depreciations recognized in the income (loss) for the year accounts; |
| · | Cash flow hedge: the financial instruments classified into this category, the effective portion of gains or losses is recorded, net of tax effects in “Equity valuation adjustments in shareholders’ equity” account. Effective portion is understood as that one for which change in hedged item, directly related to corresponding risk, is offset by change in financial instrument used for hedge, considering transaction’s accumulated effect. Other changes verified in these instruments are recognized directly in income (loss) for the year. |
For derivatives classified in the accounting hedge category, the effectiveness of the strategy is monitored, through prospective and retrospective effectiveness tests, and the mark-to-market of the hedging instruments.
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| (i) | Pricing and record |
Securities classified in the trading, available for sale category, as well as derivative financial instruments, are shown in the balance sheet at their estimated fair value. The fair value is generally based on market price quotes or market price quotes for assets or liabilities with similar characteristics. If these market prices are not available, the fair values are based on quotes from market operators, pricing models, discounted cash flow or similar techniques, for which the determination of the fair value may require judgment or significant estimate by management.
Government bonds securities are held in custody at the Special System of Settlement and Custody - SELIC and contracts of derivatives and private securities are recorded at B3 S.A. – Brasil, Bolsa, Balcão.
| i. | Loan operations and provision for expected losses associated with credit risk |
Formed, basically, by loans and financing bearing fixed or floating rates. They are stated at realizable values, including income earned based on the evolution of the contractual terms of the operations, and are classified in the respective risk levels, observing: (i) the parameters established by CMN Resolution 2682/99, which requires its classification in one of nine levels (from “AA” to “H” - maximum risk); and (ii) Management's assessment of the risk level.
Such assessment, carried out periodically, considers the economic situation, past experience and specific and global risks regarding operations, debtors and guarantors. Moreover, the default periods defined in CMN Resolution 2682/99 are also considered, for the assignment of client rating levels as follows:
| Period of delinquency (days) | Minimum rating | |
| Up to 14 days | A | |
| 15–30 days | B | |
| 31–60 days | C | |
| 61–90 days | D | |
| 91–120 days | E | |
| 121–150 days | F | |
| 151–180 days | G | |
| Higher than 180 days | H |
The restatement of loan operations overdue up to the 59th day is recorded in revenues from loan operations and, as of the 60th day, in unearned income, and will only be appropriated to income (loss) when they are received.
Renegotiated operations are maintained, at a minimum, at the same level at which they were rated. Renegotiations of loans that had already been written off against provision that were in memorandum accounts are rated as level H and any gains from renegotiation are only recognized as revenue when effectively received.
Operations in arrears classified as level “H” remain in this classification for six months, when they are then written off against the existing provision and controlled in a memorandum account for at least five years. For operations with a maturity of more than 36 months, double counting of the delay periods described above is allowed.
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The provision for losses associated with credit risk is calculated in an amount sufficient to cover potential losses, in accordance with the rules and instructions of the Central Bank of Brazil, based on assessments carried out by Management in the determination of credit risks, defined based on consistent and verifiable criteria, supported by internal and external information.
To determine the amount to be provisioned, the assessment of the rating of a contract consists of a joint analysis of the economic and financial capacity of the counterparty, the respective behavior of the counterparty with Inter and the market, as well as the guarantees involved in the transaction. In this case, at first, the provision is based on the potential exposure at the time of default, weighted by (i) the probability of default and (ii) potential loss in the event of default.
Additionally, guarantees are also used to determine the carryover criterion (contamination) of rating (credit risk) between different operations of the same client. Thus, for example, a real estate loan agreement (which has collateral security) and a coverage ratio (guarantee) greater than 100% is not contaminated by any default on the credit card.
| j. | Other assets |
Basically comprised by non-operating assets and prepaid expenses. Non-operating assets corresponding to properties available for sale are classified as goods received in kind and recorded at the book value of the loan or financing, or at the appraised value of the real estate, whichever is lower.
Prepaid expenses correspond to investments of funds whose resulting benefits will occur in future periods.
| k. | Investments |
Investments are valued under the equity method when there is control or significant influence in the Management. In the absence of significant control or influence, investments are recorded at acquisition cost. A provision for impairment loss is recognized in the income (loss) for the period when the book value of an investment, including the goodwill, exceeds its recoverable value.
| l. | Property, plant and equipment |
Corresponds to the rights relating to intangible assets intended for the maintenance of activities or exercised for this purpose, including those resulting from operations that transfer the risks, benefits and control of the assets to the entity.
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses, when applicable. Depreciation is calculated using the straight-line method, based on the following annual rates: furniture and equipment in use and communication system, 10% and data processing systems, 10%.
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| m. | Intangible assets |
Intangible assets correspond to the rights that refer to incorporeal personal property intended for the maintenance of the Company or exercised with this purpose. It is mainly comprised of: (i) Rights of use, amortized according to the terms of the contracts or as the economic benefits flow to the company; and (ii) Software and internally generated intangible assets amortized over up to 10 years.
Intangible assets with defined useful life are amortized on a straight-line basis over their estimated useful lives. Inter has no intangible assets with undefined useful life on March 31, 2022.
| n. | Asset impairment |
Financial and non-financial assets are evaluated to verify if there is objective evidence that a book value was impaired.
Objective evidence that financial assets were impaired can include default or delinquency by a debtor, indications of bankruptcy or even a material or extensive decline in the amount of the asset.
Impairment loss of a financial or non-financial asset is recognized in income for the year if book value of the asset or cash generating unit exceeds its recoverable value.
Inter assesses whether there is an indication of asset impairment and, if there is evidence of impairment, the asset's recoverable amount is estimated and compared with the book value. The recoverable value is the greater of the fair value less selling costs and its value in use.
| o. | Provisions, contingent liabilities and contingent assets |
The recognition, measuring and disclosure of contingent assets, contingent liabilities and legal obligations are carried out according to CMN Resolution 3823/09 as the following criteria:
| · | Contingent assets: these are not recognized, except when there are sufficient evidence ensuring a high level of trust in realization, usually represented by the final lawsuit judgment and confirmation of their recovery through receipt or offset against another payable. |
| · | Contingent liabilities (when applicable): they basically originate from legal and administrative proceedings, inherent to the normal course of business, filed by third parties, former employees and public agencies in civil, labor, tax and social security lawsuits and other risks. These contingencies are assessed by legal advisors and consider the probability of financial funds being required to settle obligations, whose amount of liabilities can be soundly estimated. |
Provisions and/or contingent liabilities are classified as: (a) probable, for which provisions are formed; (b) possible, which are only disclosed without being provisioned; and (c) remote, provision and disclosure are not required. Contingency amounts are defined using models and criteria that allow proper measurement, despite uncertainties inherent to terms and amount.
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Regarding the measurement basis of provisions, the entity considers, the best estimate of the disbursement required to settle the present obligation at the balance sheet date, considering the risks and uncertainties involved. Where relevant, the financial effect produced by the discount at present value of future cash flows required to settle the obligation; and future events that may change the amount required to settle the obligation.
The provision for civil, tax and labor risks is recorded in quarterly financial information when, based on the opinion of the legal advisors and the risk of loss of a lawsuit or administrative proceeding is considered probable, with a probable outflow of financial resources for the settlement of obligations and when the sums involved are reliably measured, and quantified upon summon/judicial notification and monthly reviewed monthly.
For cases related to causes considered similar and usual, whose value is not considered material, the mass method is used, which considers a statistical parameter. Civil provisions are recorded based on the historical average ticket of convictions in the last 24 months; and labor provisions are recorded based on the historical average ticket of convictions in the last 36 months.
We consider the lawsuits already judged and the historical value of convictions as the calculation basis. Thus, we project the average ticket for all lawsuits in progress where there is a possibility of outflow of funds assuming a reliable estimate.
Legal, tax and social security obligations arise from tax obligations provided for in the law which, regardless of the likelihood of success of lawsuits, have their amounts recognized (when applicable) in full in the financial information.
| p. | Taxes |
The provisions for Income Tax, Social Contribution, PIS/PASEP, COFINS and ISS, recorded at the following rates, considered the calculation bases provided for in the legislation in force for each tax:
| Rates | Rates as of 07/01/2021 | Rates at | ||||
| up to 06/30/2021 | up to 12/31/2021 | as of 01/01/2022 | ||||
| Income taxes | ||||||
| Income tax | 15% | 15% | 15% | |||
| Additional income tax | 10% | 10% | 10% | |||
| Social contribution on net income | 20% | 25% | 20% | |||
| Other taxes | ||||||
| PIS/PASEP | 0.65% | 0.65% | 0.65% | |||
| COFINS | 4% | 4% | 4% | |||
| ISS | Up to 5% | Up to 5% | Up to 5% |
Deferred tax assets (tax credits) and deferred tax liabilities are recognized through the application of prevailing tax rates on respective bases. For the formation, maintenance and write-off of tax credits on temporary differences will be realized upon the use and/or reversal of the respective provisions on which they were formed. The tax credits on tax loss and negative basis of social contribution tax will be realized in accordance with the generation of taxable income, with a limit of 30% of the taxable income of the base period.
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Provisional Measure 1034, effective as of March 1, 2021, increased the rate of the Social Contribution on Net Income (CSLL) for banks by 5%, totaling 25% until December 31, 2021. Such increase resulted in an adjustment to the balances of deferred CSLL assets and liabilities used based on the new rules taking effect as of July 1, 2021, in compliance with the constitutional principle of a 90-day period. However, considering the expiration of the aforementioned legislation, the tax credits related to the increase in the CSLL rate were written-off on December 31, 2021, so that they are recorded at the rate expected for their realization, 20%.
| q. | Expenses with income tax and social contribution - current |
Current tax expense is the tax payable or receivable on the taxable income or loss for the year and any adjustments to taxes payable in relation to prior years. The amount of current taxes payable or receivable is recognized in the balance sheet as an asset or tax liability under the best estimate of the expected amount of taxes to be paid or received reflecting the uncertainties related to its calculation, if any. It is measured based on tax rates enacted at the balance sheet date.
Current tax assets and liabilities are offset only if certain criteria are met.
| r. | Expenses with income tax and social contribution - deferred |
Deferred tax assets and liabilities are recognized in relation to the temporary differences between the book values of assets and liabilities for quarterly financial information and used for taxation purposes. The changes in deferred assets and liabilities for the year are recognized as deferred income and social contribution tax expense. Deferred taxes are not recognized for:
| · | Temporary differences that do not affect the taxable income or loss nor the income (loss). |
| · | Temporary differences related to investments in subsidiaries, associated companies and joint ventures, to the extent that Inter is able to control the timing of the reversal of the temporary difference and it is probable that they will not be reversed in the foreseeable future. |
A deferred tax asset is recognized for unused tax losses, tax credits and unused deductible temporary differences, to the extent that it is probable that future taxable income will be available against which the credits can be utilized. Deferred tax assets are reviewed at each balance sheet date and reduced when their realization is no longer probable.
Deferred tax assets and liabilities are measured at tax rates expected to be applied to temporary differences when they are reversed, based on rates decreed up to the balance sheet date.
The measurement of deferred tax assets and liabilities reflects the tax consequences arising from the way in which Inter expects to recover or settle its assets and liabilities.
| s. | Other liabilities |
They are stated at known or calculable amounts, plus, when applicable, the corresponding charges, adjusted at present value.
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| t. | Subsequent events |
An event subsequent to the period to which the quarterly financial information refers is that event, favorable or unfavorable, that occurs between the end date of the period to which quarterly financial information is related and the date on which the issue of this information is authorized. There are two kinds of events:
| · | Those that describe conditions existing on the closing date of the year to which the quarterly financial information refers (event subsequent to the accounting year to which information is related and give rise to adjustments); and |
| · | Those indicating conditions that arise subsequent to the reporting year to which the quarterly financial information refers (event subsequent to the reporting year to which the information refers that do not cause adjustments). |
| u. | Statement of added value (SAV) |
Inter prepares, in a spontaneous manner, the statement of added value under the terms of Technical Pronouncement CPC 09 - Statement of Added Value, which is presented as part of quarterly financial information.
| v. | Earnings per share |
Inter's basic earnings per share are calculated by dividing net income attributable to shareholders by the weighted average number of outstanding common and preferred shares held by shareholders in the period.
The calculation of diluted earnings per share are based on net income attributed to common and preferred shareholders and the weighted average of common shares outstanding and in the period after adjustments for all potential dilutive shares.
| w. | Share-based payments |
The fair value of share-based payment agreements is recognized at the grant date, as expenses, with a corresponding increase in shareholder’s equity, over the period when employees become unconditionally entitled to the premiums.
| x. | Recurring/non-recurring income (loss) |
Inter’s internal policies consider as recurring and non-recurring the results arising or not from the operations carried out in accordance with Inter’s corporate purpose provided for in its Bylaws; that is, “the practice of active, passive and ancillary operations and authorized services to multiple banks with commercial, investment, loan, financing, investment and lease portfolios, including foreign exchange, and the management of the securities portfolio, as well as holding interests in other companies, pursuant to the legal and regulatory provisions applicable to its type of financial institution”.
In addition, Inter's management considers as non-recurring income those that are not expected to occur in the following 2 years. In compliance with the regulation, it is worth highlighting that, of the net income of R$ 27,470 for the quarter ended March 31, 2022, R$ 1,883 were recorded as non-recurring income, and R$ 21,838 as recurring income, net of taxes. The net results for the quarters ended March 31, 2021, in the amount of R$ 20,837, were obtained exclusively based on recurring results.
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| 4 | Operating segments |
The segment reporting was prepared considering the criteria used by the main operational decision maker in the performance evaluation, in the decision making regarding the allocation of funds for investment and other purposes, considering the regulatory environment and the similarities between products and services.
Inter’s operations are basically divided into the following segments: banking, securities distribution, insurance brokerage, marketplace, asset management, service provision, among others.
| a. | Managerial income (loss) per segment |
The measurement of management results by segments considers all revenues and expenses calculated by the companies that make up each segment, as presented below. There are no common revenues or expenses allocated among the segments by any distribution criteria. When applicable, such inter-segment transactions are practiced on terms and at rates compatible with values practiced with third parties. Said operations do not involve abnormal receipt risks.
| b. | Bank segment |
The banking segment is responsible for a substantial portion of Inter’s income, and comprises a wide range of products and services, such as current accounts and cards, deposits, loans and advances to clients and provision of services, which are made available to clients mainly through the Inter app.
| c. | Segment of securities’ distribution |
This segment is essentially responsible for operations inherent to the purchase, sale and custody of securities, structuring and distribution securities in the capital market and management of investment funds (institution, organization, custody). Revenues arise mainly from commissions and management fees charged to investors for providing these services.
| d. | Insurance brokerage segment |
In this segment, products and services are offered (sale of products and services from partner insurance companies), related to guarantees, life, property and automobile insurance, consortia, pension plans, among others. The revenues from insurance brokerage commissions are recognized when the performance obligation is fulfilled. Revenues comprise the consideration received or receivable for the service provision.
| e. | Marketplace segment |
In this segment, sales of goods and/or services are offered through a digital platform for partner companies. Segment revenues mainly comprise commissions received from the sales and/or provision of such services.
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| f. | Asset management segment |
Mainly composed of operations inherent to the management of fund portfolios and other assets (purchase, sale, risk management). Revenues arise mainly from commissions and management fees charged to investors for providing these services.
| g. | Service rendering segment |
This segment offers collection activities and registration information, development and licensing of customizable software, development and licensing of non-customizable software, technical support, maintenance, development of custom software, web design, data processing, internet hosting service providers, and other information technology services.
| h. | Other segments |
Comprises the segments of real estate investment funds and private credit fixed income.
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| (i) | Statement of managerial income per segment |
| 03/31/2022 | ||||||||||||||||||||||||||||||||||||||||
| Bank | Distribution of securities | Insurance brokerage | Marketplace | Asset management | Rendering of services | Other segments | Combined | Adjustments and eliminations | Consolidated | |||||||||||||||||||||||||||||||
| Loan operations | 471,277 | 866 | - | 1 | - | - | 15,259 | 487,403 | (2,387 | ) | 485,016 | |||||||||||||||||||||||||||||
| Income from Foreign Exchange Operations | 8,827 | - | - | - | - | - | - | 8,827 | - | 8,827 | ||||||||||||||||||||||||||||||
| Income (loss) from interbank funds applied | 25,310 | 743 | - | - | - | - | - | 26,053 | - | 26,053 | ||||||||||||||||||||||||||||||
| Securities income | 344,502 | 6,163 | 1,997 | 1,621 | 73 | 433 | 11,603 | 366,392 | (21,450 | ) | 344,942 | |||||||||||||||||||||||||||||
| Derivative financial instruments | 17,501 | - | - | - | - | - | (1,032 | ) | 16,469 | - | 16,469 | |||||||||||||||||||||||||||||
| Financial intermediation income | 867,417 | 7,772 | 1,997 | 1,622 | 73 | 433 | 25,830 | 905,144 | (23,837 | ) | 881,307 | |||||||||||||||||||||||||||||
| Money market repurchase agreements | (336,448 | ) | (74 | ) | - | - | - | - | - | (336,522 | ) | 134 | (336,388 | ) | ||||||||||||||||||||||||||
| Loan operations and onlendings | (380 | ) | (2,387 | ) | - | - | - | - | - | (2,767 | ) | 2,387 | (380 | ) | ||||||||||||||||||||||||||
| Operations with derivatives | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
| Financial intermediation expenses | (336,828 | ) | (2,461 | ) | - | - | - | - | - | (339,289 | ) | 2,521 | (336,768 | ) | ||||||||||||||||||||||||||
| Gross income (loss) from financial intermediation | 530,589 | 5,311 | 1,997 | 1,622 | 73 | 433 | 25,830 | 565,855 | (21,316 | ) | 544,539 | |||||||||||||||||||||||||||||
| Provision for expected losses associated with credit risk | (243,952 | ) | - | - | - | - | - | (10 | ) | (243,962 | ) | - | (243,962 | ) | ||||||||||||||||||||||||||
| Income (loss) from provisions for loss | (243,952 | ) | - | - | - | - | - | (10 | ) | (243,962 | ) | - | (243,962 | ) | ||||||||||||||||||||||||||
| Service fee income | 144,813 | 17,192 | 18,546 | 92,883 | 3,692 | 10,891 | - | 288,017 | - | 288,017 | ||||||||||||||||||||||||||||||
| Personnel expenses | (128,637 | ) | (2,718 | ) | (2,079 | ) | (4,290 | ) | (673 | ) | (6,724 | ) | - | (145,121 | ) | - | (145,121 | ) | ||||||||||||||||||||||
| Other administrative expenses | (294,793 | ) | (6,973 | ) | (462 | ) | (4,202 | ) | (268 | ) | (10,237 | ) | (3,279 | ) | (320,214 | ) | - | (320,214 | ) | |||||||||||||||||||||
| Tax expenses | (38,335 | ) | (1,820 | ) | (3,340 | ) | (11,888 | ) | (316 | ) | (708 | ) | - | (56,407 | ) | - | (56,407 | ) | ||||||||||||||||||||||
| Equity in net income of subsidiaries | 53,417 | - | - | - | - | - | - | 53,417 | (53,417 | ) | - | |||||||||||||||||||||||||||||
| Equity in income (loss) of associated companies | (5,572 | ) | - | - | - | - | - | - | (5,572 | ) | - | (5,572 | ) | |||||||||||||||||||||||||||
| Other operating revenues | 50,948 | 5,153 | 9,222 | 3,578 | - | 5,299 | 133 | 74,333 | - | 74,333 | ||||||||||||||||||||||||||||||
| Other operating expenses | (151,368 | ) | (1,054 | ) | (2,366 | ) | (19,352 | ) | - | (72 | ) | (106 | ) | (174,318 | ) | - | (174,318 | ) | ||||||||||||||||||||||
| Other operating revenues (expenses) | (369,527 | ) | 9,780 | 19,521 | 56,729 | 2,435 | (1,551 | ) | (3,252 | ) | (285,865 | ) | (53,417 | ) | (339,282 | ) | ||||||||||||||||||||||||
| Operating income | (82,890 | ) | 15,091 | 21,518 | 58,351 | 2,508 | (1,118 | ) | 22,568 | 36,028 | (74,733 | ) | (38,705 | ) | ||||||||||||||||||||||||||
| Other revenues | 46,973 | - | 8 | 46,981 | 46,981 | |||||||||||||||||||||||||||||||||||
| Other expenses | (5,476 | ) | - | - | - | (1,510 | ) | (281 | ) | - | (7,267 | ) | (7,267 | ) | ||||||||||||||||||||||||||
| Other income and expenses | 41,497 | - | - | - | (1,510 | ) | (281 | ) | 8 | 39,714 | - | 39,714 | ||||||||||||||||||||||||||||
| Income (loss) before income tax | (41,393 | ) | 15,091 | 21,518 | 58,351 | 998 | (1,399 | ) | 22,576 | 75,742 | (74,733 | ) | 1,009 | |||||||||||||||||||||||||||
| - | ||||||||||||||||||||||||||||||||||||||||
| Provision for income tax | - | (3,767 | ) | (5,954 | ) | (12,866 | ) | (312 | ) | (212 | ) | - | (23,111 | ) | - | (23,111 | ) | |||||||||||||||||||||||
| Provision for social contribution | - | (3,175 | ) | (2,146 | ) | (4,587 | ) | (114 | ) | (80 | ) | - | (10,102 | ) | - | (10,102 | ) | |||||||||||||||||||||||
| Deferred tax assets | 58,396 | 3 | 790 | - | - | 485 | - | 59,674 | - | 59,674 | ||||||||||||||||||||||||||||||
| 58,396 | (6,939 | ) | (7,310 | ) | (17,453 | ) | (426 | ) | 193 | - | 26,461 | - | 26,461 | |||||||||||||||||||||||||||
| Income (loss) for the period | 17,003 | 8,152 | 14,208 | 40,898 | 572 | (1,206 | ) | 22,576 | 102,203 | (74,733 | ) | 27,470 | ||||||||||||||||||||||||||||
| Total assets | 38,125,077 | 207,082 | 147,639 | 267,940 | 6,724 | 25,183 | 1,268,282 | 40,047,927 | (1,562,538 | ) | 38,485,390 | |||||||||||||||||||||||||||||
| Total liabilities | 29,696,908 | 148,364 | 78,651 | 86,605 | 3,190 | 2,900 | 236,924 | 30,253,542 | (281,101 | ) | 29,972,443 | |||||||||||||||||||||||||||||
| Total shareholders' equity | 8,428,169 | 58,718 | 68,988 | 181,335 | 3,534 | 22,283 | 1,031,358 | 9,794,385 | (1,281,437 | ) | 8,512,947 | |||||||||||||||||||||||||||||
39
| 03/31/2021 | ||||||||||||||||||||||||||||||||||||||||
| Bank | Distribution of securities | Insurance brokerage | Marketplace | Asset management | Rendering of service | Other segments | Combined | Adjustments and eliminations | Consolidated | |||||||||||||||||||||||||||||||
| Loan operations | 283,354 | - | - | - | - | - | 2,005 | 285,359 | (167 | ) | 285,192 | |||||||||||||||||||||||||||||
| Income from Foreign Exchange Operations | 2,859 | - | - | - | - | - | - | 2,859 | - | 2,859 | ||||||||||||||||||||||||||||||
| Income (loss) from interbank funds applied | 6,420 | - | 882 | - | - | - | 85 | 7,387 | (967 | ) | 6,420 | |||||||||||||||||||||||||||||
| Securities income | 87,687 | 889 | - | - | 7 | - | 557 | 89,140 | (1,582 | ) | 87,558 | |||||||||||||||||||||||||||||
| Derivative financial instruments | (20,251 | ) | - | - | - | - | - | - | (20,251 | ) | - | (20,251 | ) | |||||||||||||||||||||||||||
| Financial intermediation income | 360,069 | 889 | 882 | - | 7 | - | 2,647 | 364,494 | (2,716 | ) | 361,778 | |||||||||||||||||||||||||||||
| Money market repurchase agreements | (56,744 | ) | - | - | - | - | - | - | (56,744 | ) | 967 | (55,777 | ) | |||||||||||||||||||||||||||
| Loan operations and onlendings | (378 | ) | (167 | ) | - | - | - | - | - | (545 | ) | 167 | (378 | ) | ||||||||||||||||||||||||||
| Operations with derivatives | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
| Financial intermediation expenses | (57,122 | ) | (167 | ) | - | - | - | - | - | (57,289 | ) | 1,134 | (56,155 | ) | ||||||||||||||||||||||||||
| Gross income (loss) from financial intermediation | 302,947 | 722 | 882 | - | 7 | - | 2,647 | 307,205 | (1,582 | ) | 305,623 | |||||||||||||||||||||||||||||
| Provision for expected losses associated with credit risk | (94,792 | ) | - | - | - | - | - | (5 | ) | (94,797 | ) | - | (94,797 | ) | ||||||||||||||||||||||||||
| Income (loss) from provisions for loss | (94,792 | ) | - | - | - | - | - | (5 | ) | (94,797 | ) | - | (94,797 | ) | ||||||||||||||||||||||||||
| Service fee income | 73,982 | 7,958 | 13,006 | 38,538 | 3,173 | 2,725 | - | 139,382 | - | 139,382 | ||||||||||||||||||||||||||||||
| Personnel expenses | (74,953 | ) | (1,361 | ) | (1,748 | ) | (1,518 | ) | (546 | ) | (1,735 | ) | - | (81,861 | ) | - | (81,861 | ) | ||||||||||||||||||||||
| Other administrative expenses | (188,068 | ) | (10,551 | ) | (262 | ) | (1,808 | ) | (196 | ) | (1,690 | ) | (682 | ) | (203,257 | ) | - | (203,257 | ) | |||||||||||||||||||||
| Tax expenses | (22,821 | ) | (837 | ) | (1,135 | ) | (2,402 | ) | (247 | ) | (174 | ) | - | (27,616 | ) | - | (27,616 | ) | ||||||||||||||||||||||
| Equity in net income of subsidiaries | 28,736 | - | - | - | - | - | - | 28,736 | (28,736 | ) | - | |||||||||||||||||||||||||||||
| Other operating revenues | 32,223 | 2,749 | 5,680 | - | 1 | (3 | ) | - | 40,650 | - | 40,650 | |||||||||||||||||||||||||||||
| Other operating expenses | (67,579 | ) | (434 | ) | (147 | ) | (8,674 | ) | - | (24 | ) | (141 | ) | (76,999 | ) | - | (76,999 | ) | ||||||||||||||||||||||
| Other operating revenues (expenses) | (218,480 | ) | (2,476 | ) | 15,394 | 24,136 | 2,185 | (901 | ) | (823 | ) | (180,965 | ) | (28,736 | ) | (209,701 | ) | |||||||||||||||||||||||
| Operating income | (10,325 | ) | (1,754 | ) | 16,276 | 24,136 | 2,192 | (901 | ) | 1,819 | 31,443 | (30,318 | ) | 1,125 | ||||||||||||||||||||||||||
| Other revenues | 11,354 | - | - | - | - | - | - | 11,354 | - | 11,354 | ||||||||||||||||||||||||||||||
| Other expenses | (6,875 | ) | - | - | - | (381 | ) | - | - | (7,256 | ) | - | (7,256 | ) | ||||||||||||||||||||||||||
| Other income and expenses | 4,479 | - | - | - | (381 | ) | - | - | 4,098 | - | 4,098 | |||||||||||||||||||||||||||||
| Income (loss) before tax on profit | (5,846 | ) | (1,754 | ) | 16,276 | 24,136 | 1,811 | (901 | ) | 1,819 | 35,541 | (30,318 | ) | 5,223 | ||||||||||||||||||||||||||
| Provision for income tax | (7,389 | ) | - | (1,711 | ) | (3,089 | ) | (243 | ) | - | - | (12,432 | ) | - | (12,432 | ) | ||||||||||||||||||||||||
| Provision for social contribution | (6,061 | ) | - | (618 | ) | (1,114 | ) | (92 | ) | - | - | (7,885 | ) | - | (7,885 | ) | ||||||||||||||||||||||||
| Deferred tax assets | 34,168 | 1,458 | - | - | - | 306 | - | 35,932 | - | 35,932 | ||||||||||||||||||||||||||||||
| 20,718 | 1,458 | (2,329 | ) | (4,203 | ) | (335 | ) | 306 | - | 15,615 | - | 15,615 | ||||||||||||||||||||||||||||
| Income (loss) for the period | 14,872 | (296 | ) | 13,947 | 19,933 | 1,476 | (595 | ) | 1,819 | 51,156 | (30,318 | ) | 20,838 | |||||||||||||||||||||||||||
| Total assets | 21,202,398 | 68,247 | 70,570 | 90,734 | 6,094 | 22,737 | 569,448 | 22,030,228 | (782,688 | ) | 21,247,540 | |||||||||||||||||||||||||||||
| Total liabilities | 17,969,560 | 39,207 | 56,523 | 49,374 | 2,502 | 2,258 | 9,384 | 18,128,808 | (163,079 | ) | 17,965,729 | |||||||||||||||||||||||||||||
| Total shareholders' equity | 3,232,838 | 29,040 | 14,047 | 41,360 | 3,592 | 20,479 | 560,064 | 3,901,420 | (619,609 | ) | 3,281,811 | |||||||||||||||||||||||||||||
40
| 5 | Cash and cash equivalents |
| Parent company | Consolidated | |||||||||||||||
| 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | |||||||||||||
| Cash and cash equivalents | 501,525 | 464,337 | 730,309 | 464,853 | ||||||||||||
| Interbank funds applied (a) | 405,502 | - | 441,330 | 35,591 | ||||||||||||
| Total | 907,027 | 464,337 | 1,171,639 | 500,444 | ||||||||||||
(a) Refer to transactions whose maturity on the date of effective investment was equal to or lower than 90 days and presents insignificant risk of fair value change (See Note 6a).
| 6 | Interbank funds applied |
They are mainly represented by repurchase and resale agreements backed by government bonds and investments in CDI, mainly those linked to rural loans.
| a. | Breakdown of interbank funds applied |
| Parent company | Consolidated | |||||||||||||||
| 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | |||||||||||||
| Money market repurchase agreements | 405,502 | - | 441,330 | 35,591 | ||||||||||||
| Financial Treasury Bills (LFT) | 42,690 | - | 71,481 | - | ||||||||||||
| National Treasury Bills (LTN) | 11,820 | - | 18,022 | 30,448 | ||||||||||||
| National Treasury Notes (NTN) | 350,992 | - | 351,721 | 1,048 | ||||||||||||
| Bank deposit certificates | - | - | 106 | 4,095 | ||||||||||||
| Interbank deposit investments | 1,425,273 | 1,775,549 | 1,439,464 | 1,729,651 | ||||||||||||
| CDI - Not linked | 203,570 | 556,349 | 217,761 | 510,452 | ||||||||||||
| CDI - Operations linked to rural credit | 1,221,703 | 1,219,200 | 1,221,703 | 1,219,199 | ||||||||||||
| Total | 1,830,775 | 1,775,549 | 1,880,794 | 1,765,242 | ||||||||||||
The maturity of the securities is presented below:
| Parent company | ||||||||||||||||
| Title | Up to 3 months | 3–12 months | Total at 03/31/2022 | Total on 12/31/2021 | ||||||||||||
| Investments in CDI | 173,393 | 1,251,880 | 1,425,273 | 1,775,549 | ||||||||||||
| Financial Treasury Bills - LFT | 42,691 | - | 42,691 | - | ||||||||||||
| National Treasury Bills (LTN) | 11,820 | - | 11,820 | - | ||||||||||||
| National Treasury Notes (NTN) | 350,991 | - | 350,991 | - | ||||||||||||
| Total | 578,895 | 1,251,880 | 1,830,775 | 1,775,549 | ||||||||||||
| Consolidated | ||||||||||||||||
| Title | Up to 3 months | 3–12 months | Total at 03/31/2022 | Total on 12/31/2021 | ||||||||||||
| Investments in CDI | 173,393 | 1,266,071 | 1,439,464 | 1,729,651 | ||||||||||||
| Financial Treasury Bills - LFT | 71,481 | - | 71,481 | - | ||||||||||||
| National Treasury Bills (LTN) | 18,022 | - | 18,022 | 30,448 | ||||||||||||
| National Treasury Notes (NTN) | 351,721 | - | 351,721 | 1,048 | ||||||||||||
| Debentures | - | - | - | - | ||||||||||||
| Bank deposit certificates | 106 | - | 106 | 4,095 | ||||||||||||
| Total | 614,723 | 1,266,071 | 1,880,794 | 1,765,242 | ||||||||||||
41
| b. | Income from interbank funds applied |
Income from interbank funds applied are highlighted as follows:
| Parent company | Consolidated | |||||||||||||||
| 03/31/2022 | 03/31/2021 | 03/31/2022 | 03/31/2021 | |||||||||||||
| Own portfolio | 2,851 | 4,854 | 2,851 | 4,854 | ||||||||||||
| Financed position | 8,134 | 618 | 8,134 | 618 | ||||||||||||
| Interbank deposits | 14,325 | 948 | 15,068 | 948 | ||||||||||||
| Total | 25,310 | 6,420 | 26,053 | 6,420 | ||||||||||||
| 7 | Securities |
| a. | Breakdown of securities |
| Parent company | Consolidated | |||||||||||||||
| 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | |||||||||||||
| Own portfolio | 11,962,136 | 12,540,923 | 11,807,304 | 12,291,414 | ||||||||||||
| Government bonds | 9,767,453 | 10,412,325 | 9,818,437 | 10,494,449 | ||||||||||||
| Financial Treasury Bills (LFT) | 5,016,665 | 5,750,093 | 5,034,701 | 5,799,587 | ||||||||||||
| National Treasury Bills (LTN) | 432,890 | 412,963 | 432,890 | 412,963 | ||||||||||||
| National Treasury Notes (NTN) | 4,317,898 | 4,249,269 | 4,350,846 | 4,281,899 | ||||||||||||
Private securities | 2,194,683 | 2,128,598 | 1,988,627 | 1,796,965 | ||||||||||||
| Certificates of real estate receivables | 297,805 | 309,010 | 359,189 | 349,246 | ||||||||||||
| Bank Deposit Certificates | - | - | 32,894 | 25,092 | ||||||||||||
| Certificates of Agricultural Receivables | 1,010 | - | 7,829 | 10,648 | ||||||||||||
| Real estate credit Bill | - | - | 1,667 | 7,322 | ||||||||||||
| Agribusiness Credit Bill | - | - | 9,705 | 14,552 | ||||||||||||
| Financial Bills | 45,612 | 68,115 | 105,932 | 108,499 | ||||||||||||
| Debentures | 590,243 | 634,499 | 980,990 | 899,380 | ||||||||||||
| Commercial Promissory Note | 30,106 | 30,087 | 30,106 | 30,087 | ||||||||||||
| Rural Product Bill | 132,281 | 28,075 | 132,281 | 28,075 | ||||||||||||
| Investment fund quotas | 1,097,626 | 1,058,812 | 328,034 | 324,064 | ||||||||||||
| Subject to guarantees provided | 513,192 | 451,641 | 529,890 | 467,876 | ||||||||||||
Government bonds | 513,192 | 451,641 | 529,890 | 467,876 | ||||||||||||
| Financial Treasury Bills (LFT) | 513,192 | 451,641 | 529,890 | 467,876 | ||||||||||||
| Total securities | 12,475,328 | 12,992,564 | 12,336,954 | 12,759,290 | ||||||||||||
| Current | 622,373 | 1,331,273 | 1,367,408 | 1,065,837 | ||||||||||||
| Non-current | 11,852,955 | 11,661,291 | 10,969,546 | 11,693,453 | ||||||||||||
| b. | Classification of securities per category and maturity |
| Parent company | ||||||||||||||||||||||||||||||||||||||||||||
| 03/31/2022 | 12/31/2021 | |||||||||||||||||||||||||||||||||||||||||||
| Up
to 3 months | 3–12 months | 1–3 years | 3–5 years | >5 years | Market
/ book value | Restated Acquisition Cost | Unrealized gains (losses) | Market
/ book value | Restated Acquisition Cost | Unrealized gains (losses) | ||||||||||||||||||||||||||||||||||
| Available for sale | - | 320,018 | 550,532 | 3,252,218 | 7,222,820 | 11,345,588 | 11,789,580 | (443,992 | ) | 11,962,752 | 12,348,446 | (385,694 | ) | |||||||||||||||||||||||||||||||
| Financial Treasury Bills (LFT) | - | 274,346 | 57,438 | 1,665,917 | 3,532,156 | 5,529,857 | 5,510,464 | 19,393 | 6,201,734 | 6,194,881 | 6,853 | |||||||||||||||||||||||||||||||||
| Debentures | - | - | 67,717 | 143,580 | 203,308 | 414,605 | 420,634 | (6,029 | ) | 440,092 | 444,663 | (4,571 | ) | |||||||||||||||||||||||||||||||
| Certificates of real estate receivables | - | - | 47,876 | 88,375 | 149,771 | 286,022 | 286,228 | (206 | ) | 307,734 | 308,241 | (507 | ) | |||||||||||||||||||||||||||||||
| Investment fund units | - | - | - | - | 916,357 | 916,357 | 916,357 | - | 870,694 | 870,594 | 100 | |||||||||||||||||||||||||||||||||
| Financing bills | - | - | 701 | 4,997 | 27,929 | 33,627 | 33,627 | - | 56,439 | 56,439 | - | |||||||||||||||||||||||||||||||||
| National Treasury Notes (NTN) | - | - | 24,764 | 1,284,061 | 2,393,299 | 3,702,124 | 4,151,175 | (449,051 | ) | 3,643,009 | 4,029,369 | (386,360 | ) | |||||||||||||||||||||||||||||||
| National Financial Treasury Bills (LTN) | - | 45,672 | 352,036 | 35,182 | - | 432,890 | 440,989 | (8,099 | ) | 412,963 | 414,172 | (1,209 | ) | |||||||||||||||||||||||||||||||
| Commercial Promissory Note | - | - | - | 30,106 | - | 30,106 | 30,106 | - | 30,087 | 30,087 | - | |||||||||||||||||||||||||||||||||
| Held to maturity | 11,985 | 90,745 | 187,103 | 24,508 | 615,774 | 930,115 | 930,115 | - | 831,582 | 831,582 | - | |||||||||||||||||||||||||||||||||
| Debentures | - | 50,581 | 94,986 | 24,508 | - | 170,075 | 170,075 | - | 185,571 | 185,571 | - | |||||||||||||||||||||||||||||||||
| Financing bills | 11,985 | - | - | - | - | 11,985 | 11,985 | - | 11,676 | 11,676 | - | |||||||||||||||||||||||||||||||||
| National Treasury Notes (NTN) | - | - | - | - | 615,774 | 615,774 | 615,774 | - | 606,260 | 606,260 | - | |||||||||||||||||||||||||||||||||
| Rural Product Bill | - | 40,164 | 92,117 | - | - | 132,281 | 132,281 | - | 28,075 | 28,075 | - | |||||||||||||||||||||||||||||||||
| For trading (a) | 181,269 | - | 2,034 | 9,749 | 6,573 | 199,625 | 200,079 | (454 | ) | 198,230 | 198,230 | - | ||||||||||||||||||||||||||||||||
| Investment fund units | 181,269 | - | - | - | - | 181,269 | 181,269 | - | 188,118 | 188,118 | - | |||||||||||||||||||||||||||||||||
| Certificates of real estate receivables | - | - | 2,034 | 9,749 | - | 11,783 | 11,761 | 22 | 1,276 | 1,276 | - | |||||||||||||||||||||||||||||||||
| Certificates of Agricultural Receivables | - | - | - | - | 1,010 | 1,010 | 1,010 | - | - | - | - | |||||||||||||||||||||||||||||||||
| Debentures | - | - | - | - | 5,563 | 5,563 | 6,039 | (476 | ) | 8,836 | 8,836 | - | ||||||||||||||||||||||||||||||||
| Total | 193,254 | 410,763 | 739,669 | 3,286,475 | 7,845,167 | 12,475,328 | 12,919,774 | (444,446 | ) | 12,992,564 | 13,378,258 | (385,694 | ) | |||||||||||||||||||||||||||||||
| Consolidated | ||||||||||||||||||||||||||||||||||||||||||||
| 03/31/2022 | 12/31/2021 | |||||||||||||||||||||||||||||||||||||||||||
| Up
to 3 months | 3–12 months | 1–3 years | 3–5 years | >5 years | Market
/ book value | Restated Acquisition Cost | Unrealized gains (losses) | Market
/ book value | Restated Acquisition Cost | Unrealized gains (losses) | ||||||||||||||||||||||||||||||||||
| Available for sale | - | 320,018 | 550,532 | 3,252,218 | 6,306,463 | 10,429,231 | 10,873,223 | (443,992 | ) | 11,137,938 | 11,491,572 | (385,794 | ) | |||||||||||||||||||||||||||||||
| Financial Treasury Bills (LFT) | - | 274,346 | 57,438 | 1,665,917 | 3,532,156 | 5,529,857 | 5,510,464 | 19,393 | 6,201,734 | 6,194,881 | 6,853 | |||||||||||||||||||||||||||||||||
| Debentures | - | - | 67,717 | 143,580 | 203,308 | 414,605 | 420,634 | (6,029 | ) | 440,093 | 444,664 | (4,571 | ) | |||||||||||||||||||||||||||||||
| Certificates of real estate receivables | - | - | 47,876 | 88,375 | 149,771 | 286,022 | 286,228 | (206 | ) | 307,667 | 308,241 | (507 | ) | |||||||||||||||||||||||||||||||
| Investment fund units | - | - | - | - | - | - | - | - | 13,719 | 13,719 | - | |||||||||||||||||||||||||||||||||
| Financing bills | - | - | 701 | 4,997 | 27,929 | 33,627 | 33,627 | - | 56,439 | 56,439 | - | |||||||||||||||||||||||||||||||||
| National Treasury Notes (NTN) | - | 45,672 | 24,764 | 1,284,061 | 2,393,299 | 3,702,124 | 4,151,175 | (449,051 | ) | 3,675,236 | 4,029,369 | (386,360 | ) | |||||||||||||||||||||||||||||||
| National Financial Treasury Bills (LTN) | - | - | 352,036 | 35,182 | - | 432,890 | 440,989 | (8,099 | ) | 412,963 | 414,172 | (1,209 | ) | |||||||||||||||||||||||||||||||
| Commercial Promissory Note | - | - | - | 30,106 | - | 30,106 | 30,106 | - | 30,087 | 30,087 | - | |||||||||||||||||||||||||||||||||
| Held to maturity | 11,985 | 90,745 | 187,103 | 24,508 | 648,722 | 963,063 | 965,625 | - | 842,935 | 842,935 | - | |||||||||||||||||||||||||||||||||
| Debentures | - | 50,581 | 94,986 | 24,508 | - | 170,075 | 170,075 | - | 185,571 | 185,571 | - | |||||||||||||||||||||||||||||||||
| Financing bills | 11,985 | - | - | - | - | 11,985 | 11,985 | - | 11,676 | 11,676 | - | |||||||||||||||||||||||||||||||||
| National Treasury Notes (NTN) | - | - | - | - | 648,722 | 648,722 | 651,284 | - | 606,260 | 606,260 | - | |||||||||||||||||||||||||||||||||
| Rural Product Bill | - | 40,164 | 92,117 | - | - | 132,281 | 132,281 | - | 11,353 | 11,353 | - | |||||||||||||||||||||||||||||||||
| Certificates of real estate receivables | - | - | - | - | - | - | - | - | 28,075 | 28,075 | - | |||||||||||||||||||||||||||||||||
| For trading (a) | 357,981 | 26,992 | 152,513 | 236,568 | 170,606 | 944,660 | 938,797 | 5,863 | 778,417 | 757,680 | 20,737 | |||||||||||||||||||||||||||||||||
| Investment fund units | 328,034 | - | - | - | - | 328,034 | 328,078 | (44 | ) | 298,992 | 298,992 | - | ||||||||||||||||||||||||||||||||
| Certificates of real estate receivables | 17,891 | 3,258 | 17,547 | 22,196 | 12,275 | 73,167 | 72,298 | 869 | 41,579 | 41,579 | - | |||||||||||||||||||||||||||||||||
| Certificates of Agricultural Receivables | - | 414 | 108 | 2,991 | 4,316 | 7,829 | 6,475 | 1,354 | 273,716 | 252,979 | 20,737 | |||||||||||||||||||||||||||||||||
| Debentures | - | 6,159 | 64,895 | 177,627 | 147,629 | 396,310 | 394,809 | 1,501 | 65,729 | 65,729 | - | |||||||||||||||||||||||||||||||||
| Financial Treasury Bills (LFT) | - | 1,668 | 5,380 | 27,686 | - | 34,734 | 34,678 | 56 | 403 | 403 | - | |||||||||||||||||||||||||||||||||
| National Financial Treasury Bills (LTN) | - | - | - | - | - | - | - | - | 40,384 | 40,384 | - | |||||||||||||||||||||||||||||||||
| Financing bills | - | 5,031 | 47,170 | 3,365 | 4,754 | 60,320 | 60,320 | - | 25,092 | 25,092 | - | |||||||||||||||||||||||||||||||||
| Bank deposit certificates | 11,728 | 6,232 | 11,397 | 2,148 | 1,389 | 32,894 | 29,740 | 3,154 | 10,648 | 10,648 | - | |||||||||||||||||||||||||||||||||
| Agribusiness Credit Bills (LCA) | - | 3,731 | 5,176 | 555 | 243 | 9,705 | 10,182 | (477 | ) | 14,552 | 14,552 | - | ||||||||||||||||||||||||||||||||
| Real Estate Credit Bills (LCI) | 328 | 499 | 840 | - | - | 1,667 | 2,217 | (550 | ) | 7,322 | 7,322 | - | ||||||||||||||||||||||||||||||||
| Total | 369,966 | 437,755 | 890,148 | 3,513,294 | 7,125,791 | 12,336,954 | 12,777,645 | (438,129 | ) | 12,759,290 | 13,092,187 | (365,057 | ) | |||||||||||||||||||||||||||||||
| c. | Securities income |
| Parent company | Consolidated | |||||||||||||||
| 03/31/2022 | 03/31/2021 | 03/31/2022 | 03/31/2021 | |||||||||||||
| Income from fixed income securities | 293,351 | 92,363 | 313,914 | 94,356 | ||||||||||||
| Income (loss) from investments in investment funds | 51,151 | (4,676 | ) | 31,028 | (6,800 | ) | ||||||||||
| Securities income | 344,502 | 87,687 | 344,942 | 87,556 | ||||||||||||
| 8 | Derivative financial instruments |
Inter participates in operations involving derivative financial instruments recorded in balance sheet and memorandum accounts, whose purpose is to meet own needs to manage its risk exposure, as well as meet clients’ requests to manage its exposure. These operations involve derivatives on swaps, indices and terms. Inter's risk management is based on the use of derivative financial instruments with the main purpose of mitigating the risks arising from the operations performed.
The swaps comprising Inter’s portfolio were formed as a strategy to lock the spread of the active operation, carrying out the hedge equivalence with the specific risk portion (IGPM and IPCA).
Thus, for these swaps (IGPM and IPCA), the mark-to-market methodology was the same: Mark-to-market of the Swap Asset Position (100% of CDI), consists of updating the base value until the reference date, projecting such value at 100% of the exponentially interpolated curve from the “DI x PRE” vertices available on the B3 S.A., corresponding to the maturity of the transaction, discounting 100% of the CDI to determine the fair value. In the liability position, it consists of updating the base reference percentage value defined at the time of the hedge, adjusted by the IGPM or IPCA (according to the swap), projecting this value at the contracted rate until maturity and discounting 100% of the interpolated curve exponentially from the “DI X IGPM” vertices for the IGPM swaps and “DI x IPCA” vertices for the IPCA swaps available on the B3 S.A. corresponding to the transaction term.
| Parent company | Consolidated | |||||||||||||||
| 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | |||||||||||||
| Derivative financial instruments – assets | 3,966 | 4,297 | 10,409 | 86,948 | ||||||||||||
| Derivative financial instruments – liabilities | (76,042 | ) | (66,472 | ) | (76,042 | ) | (66,549 | ) | ||||||||
45
| a. | Breakdown of derivative financial instruments (assets and liabilities) stated at their updated cost, market and terms |
| Parent company | ||||||||||||||||||||||||||||||||||||
| 03/31/2022 | 12/31/2021 | |||||||||||||||||||||||||||||||||||
| Restated
cost | Mark-to-Market | Market
value | Up
to 3 months | 3–12
months | 1–3
years | 3–5 years | Total | Total | ||||||||||||||||||||||||||||
| Assets (A) | ||||||||||||||||||||||||||||||||||||
| Forward purchases receivable | 4,033 | (67 | ) | 3,966 | 3,966 | - | - | - | 3,966 | 4,297 | ||||||||||||||||||||||||||
| Liabilities (B) | ||||||||||||||||||||||||||||||||||||
| Adjustment payable - swap | (76,042 | ) | - | (76,042 | ) | - | (34,138 | ) | (29,160 | ) | (12,744 | ) | (76,042 | ) | (66,472 | ) | ||||||||||||||||||||
| Net effect (A-B) | (72,009 | ) | (67 | ) | (72,076 | ) | 3,966 | (34,138 | ) | (29,160 | ) | (12,744 | ) | (72,076 | ) | (62,175 | ) | |||||||||||||||||||
| Consolidated | ||||||||||||||||||||||||||||||||||||
| 03/31/2022 | 12/31/2021 | |||||||||||||||||||||||||||||||||||
| Restated cost | Mark-to-Market | Market value | Up
to 3 months | 3–12 months | 1–3 years | 3–5 years | Total | Total | ||||||||||||||||||||||||||||
| Assets (A) | ||||||||||||||||||||||||||||||||||||
| Forward purchases receivable | 10,476 | (67 | ) | 10,409 | 10,409 | - | - | - | 10,409 | 86,948 | ||||||||||||||||||||||||||
| Liabilities (B) | ||||||||||||||||||||||||||||||||||||
| Adjustment payable - swap | (76,042 | ) | - | (76,042 | ) | - | (34,138 | ) | (29,160 | ) | (12,744 | ) | (76,042 | ) | (66,549 | ) | ||||||||||||||||||||
| Net effect (A-B) | (65,566 | ) | (67 | ) | (65,633 | ) | 10,409 | (34,138 | ) | (29,160 | ) | (12,744 | ) | (65,633 | ) | 20,399 | ||||||||||||||||||||
| b. | Aging of forward and swap contracts (Notional) |
| Parent company | ||||||||||||||||||||||||
| Up to 3 months | 3–12 months | 1–3 years | 3–5 years | Total 03/31/2022 | Total 12/31/2021 | |||||||||||||||||||
| Forward contracts - assets | 3,966 | - | - | - | 3,966 | 4,297 | ||||||||||||||||||
| Swap contracts - liabilities | - | 94,856 | 53,500 | 24,500 | 172,856 | 172,856 | ||||||||||||||||||
| Total | 3,966 | 94,856 | 53,500 | 24,500 | 176,822 | 177,153 | ||||||||||||||||||
| Consolidated | ||||||||||||||||||||||||
| Up to 3 months | 3–12 months | 1–3 years | 3–5 years | Total 03/31/2022 | Total 12/31/2021 | |||||||||||||||||||
| Forward contracts - assets | 10,409 | - | - | - | 10,409 | 86,948 | ||||||||||||||||||
| Swap contracts - liabilities | - | 94,856 | 53,500 | 24,500 | 172,856 | 172,933 | ||||||||||||||||||
| Total | 10,409 | 94,856 | 53,500 | 24,500 | 183,265 | 259,881 | ||||||||||||||||||
| c. | Index swap contracts |
The operations were carried out via B3 and have a guaranteed margin and control by this Stock Exchange. On March 31, 2022, Inter had 8 CDI x IGP-M asset swaps contracts, with a total notional amount of R$ 112,856 and 2 CDI x IPCA asset swaps contracts, with a total notional amount of R$ 60,000 registered at B3 and have a margin deposit whose value can be adjusted at any time. The swap operation is the exchange of risks between two parties, consisting of an agreement for two parties to exchange the risk of an asset (creditor) or liability (debtor) position, on a specified date, with previously established conditions.
46
Inter’s swap operations are classified as Hedge Accounting (Fair Value Hedge), to hedge against exposure to changes in the fair value of recognized loan operations, or an identified part of such an asset attributable to a particular risk that could affect the result.
The hedge instrument (swap) was used to hedge against risks related to the mismatch of indices between asset and liability portfolios, specifically between interest rate and price index variations, and are recognized at fair value in income (loss) for the period. The fair value is the value which, according to market conditions, would be received for the assets and paid upon settlement of liabilities, being calculated based on the rates practiced in the stock exchange markets.
| Parent company and Consolidated | |||||||||||||||||||
| 03/31/2022 | |||||||||||||||||||
| Reference | Cost value | Market value | Gain (loss) from | ||||||||||||||||
| Indices | value | Bank | Counterparty | Bank | Counterparty | hedge operation | |||||||||||||
| CDI x IGPM | 112,856 | 127,296 | 195,420 | 127,296 | 191,486 | (64,190 | ) | ||||||||||||
| CDI x IPCA | 60,000 | 68,386 | 80,385 | 68,386 | 80,238 | (11,852 | ) | ||||||||||||
| Grand total | 172,856 | 195,682 | 275,805 | 195,682 | 271,724 | (76,042 | ) | ||||||||||||
| Parent company | |||||||||||||||||||
| 12/31/2021 | |||||||||||||||||||
| Reference | Cost value | Market value | Gain (loss) from | ||||||||||||||||
| Indices | value | Bank | Counterparty | Bank | Counterparty | hedge operation | |||||||||||||
| CDI x IGPM | 112,856 | 124,282 | 184,140 | 124,282 | 180,520 | (56,238 | ) | ||||||||||||
| CDI x IPCA | 60,000 | 66,767 | 77,401 | 66,767 | 77,002 | (10,234 | ) | ||||||||||||
| Grand total | 172,856 | 191,049 | 261,541 | 191,049 | 257,522 | (66,472 | ) | ||||||||||||
| Consolidated | ||||||||||||||||||
| 12/31/2021 | ||||||||||||||||||
| Reference | Cost value | Market value | Gain (loss) from | |||||||||||||||
| Indices | value | Bank | Counterparty | Bank | Counterparty | hedge operation | ||||||||||||
| CDI x IGPM | 112,856 | 124,282 | 184,140 | 124,282 | 180,520 | (56,238 | ) | |||||||||||
| CDI x IPCA | 60,000 | 66,767 | 77,401 | 66,767 | 77,002 | (10,331 | ) | |||||||||||
| Grand total | 172,856 | 191,049 | 261,541 | 191,049 | 257,522 | (66,569 | ) | |||||||||||
47
| d. | Income (loss) from securities and derivative financial instruments |
| Parent company | Consolidated | |||||||||||||||
| 03/31/2022 | 03/31/2021 | 03/31/2022 | 03/31/2021 | |||||||||||||
| Operations with forward derivatives | 86 | 240 | 445 | 240 | ||||||||||||
| Operations with future derivatives | 23,692 | - | 22,685 | - | ||||||||||||
| Operations with derivatives - swap | (6,277 | ) | (20,491 | ) | (6,661 | ) | (20,491 | ) | ||||||||
| Total | 17,501 | (20,251 | ) | 16,469 | (20,251 | ) | ||||||||||
| 9 | Interbank accounts/relations |
| Parent company and Consolidated | ||||||||
| Assets | 03/31/2022 | 12/31/2021 | ||||||
| Other settlement systems | 433,814 | 295,103 | ||||||
| Central Bank of Brazil deposits - other | 334,200 | 309,580 | ||||||
| Central Bank Deposits - Compulsory Reserves | 1,516,653 | 1,570,371 | ||||||
| Central Bank of Brazil deposits - Pix | 424,351 | 519,420 | ||||||
| Correspondent relations | 20,551 | 25,921 | ||||||
| Total | 2,729,569 | 2,720,395 | ||||||
| Liabilities | ||||||||
| Payment transactions (a) | 4,420,058 | 3,876,964 | ||||||
| Other settlement systems | 95,764 | - | ||||||
| Total | 4,515,822 | 3,876,964 | ||||||
| (a) | Amounts payable to payment institutions participating in a payment arrangement in connection with card transactions. |
48
| 10 | Loan portfolio and provisions for losses associated with credit risk |
| a. | Breakdown of the portfolio by loan operation |
| Parent company | Consolidated | |||||||||||||||||||||||||||||||
| Loan operations and other credits | 03/31/2022 | % Portfolio | 12/31/2021 | % Portfolio | 03/31/2022 | % Portfolio | 12/31/2021 | % Portfolio | ||||||||||||||||||||||||
| Loans and discounted notes | 6,129,037 | 34.0 | % | 5,802,431 | 34.0 | % | 6,417,426 | 35.0 | % | 6,045,720 | 34.9 | % | ||||||||||||||||||||
| Real estate financing | 3,763,530 | 20.8 | % | 3,669,432 | 21.5 | % | 3,763,530 | 20.5 | % | 3,669,432 | 21.2 | % | ||||||||||||||||||||
| Credit card operations | 901,146 | 5.0 | % | 738,416 | 4.3 | % | 901,146 | 4.9 | % | 738,416 | 4.3 | % | ||||||||||||||||||||
| Rural financing | 643,194 | 3.6 | % | 700,191 | 4.1 | % | 643,194 | 3.5 | % | 700,191 | 4.0 | % | ||||||||||||||||||||
| Other receivables (a) | 6,614,203 | 36.6 | % | 6,164,898 | 36.1 | % | 6,614,203 | 36.1 | % | 6,164,898 | 35.6 | % | ||||||||||||||||||||
| Total loan operations and other credits | 18,051,110 | 100.0 | % | 17,075,368 | 100.0 | % | 18,339,499 | 100.0 | % | 17,318,657 | 100.0 | % | ||||||||||||||||||||
| Total current | 9,813,353 | 8,803,515 | 10,101,742 | 9,046,804 | ||||||||||||||||||||||||||||
| Total non-current | 8,237,757 | 8,271,853 | 8,237,757 | 8,271,853 | ||||||||||||||||||||||||||||
| Mark-to-market of loan operations - hedged item | (4,158 | ) | (4,042 | ) | (4,158 | ) | (4,042 | ) | ||||||||||||||||||||||||
| Total loan portfolio before provision for estimated losses | 18,046,952 | 17,071,326 | 18,335,341 | 17,314,615 | ||||||||||||||||||||||||||||
| Provision for estimated losses | ||||||||||||||||||||||||||||||||
| (-) Expected losses from loan operations | (502,313 | ) | (451,811 | ) | (502,623 | ) | (452,110 | ) | ||||||||||||||||||||||||
| (-) Expected losses from other receivables | (178,787 | ) | (77,422 | ) | (178,787 | ) | (77,422 | ) | ||||||||||||||||||||||||
| Total provision for expected losses associated with credit risk | (681,100 | ) | (529,233 | ) | (681,410 | ) | (529,532 | ) | ||||||||||||||||||||||||
| Total net loan portfolio | 17,365,852 | 16,542,093 | 17,653,931 | 16,785,083 |
| (a) | Refers to other credits with and without credit granting characteristics, in the amount of R$ 2,132 million (as of December 31, 2021: R$ 2,040 million), and credit card – Cash purchases and merchant installment payment, in the amount of R$ 4,482 million (as of December 31, 2021: R$ 4,125 million). |
| b. | Maturity bracket |
| Parent company | ||||||||||||||||||||
| Installments | Payments falling due | |||||||||||||||||||
| past due as of 15 days | Up
to 90 days | 91–360
days | >360
days | Total
on 03/31/2022 | Total
on 12/31/2021 | |||||||||||||||
| Loans and discounted notes | 76,184 | 392,788 | 1,272,819 | 4,387,246 | 6,129,037 | 5,802,431 | ||||||||||||||
| Real estate financing | 14,894 | 85,125 | 188,471 | 3,475,040 | 3,763,530 | 3,669,432 | ||||||||||||||
| Credit card operations | 612,348 | 190,603 | 55,693 | 42,502 | 901,146 | 738,416 | ||||||||||||||
| Rural financing | 652 | 143,887 | 419,254 | 79,401 | 643,194 | 700,191 | ||||||||||||||
| Other receivables | 22,137 | 5,023,721 | 1,314,777 | 253,568 | 6,614,203 | 6,164,898 | ||||||||||||||
| Total loan operations and other credits | 726,215 | 5,836,124 | 3,251,014 | 8,237,757 | 18,051,110 | 17,075,368 | ||||||||||||||
49
| Consolidated | ||||||||||||||||||||||||
| Installments | Payments falling due | |||||||||||||||||||||||
| past due as | Up to 91 | 91–360 | >360 | Total on | Total on | |||||||||||||||||||
| of 15 days | days | days | days | 03/31/2022 | 12/31/2021 | |||||||||||||||||||
| Loans and discounted notes | 76,184 | 681,177 | 1,272,819 | 4,387,246 | 6,417,426 | 6,045,720 | ||||||||||||||||||
| Real estate financing | 14,894 | 85,125 | 188,471 | 3,475,040 | 3,763,530 | 3,669,432 | ||||||||||||||||||
| Credit card operations | 612,348 | 190,603 | 55,693 | 42,502 | 901,146 | 738,416 | ||||||||||||||||||
| Rural financing | 652 | 143,887 | 419,254 | 79,401 | 643,194 | 700,191 | ||||||||||||||||||
| Other receivables | 22,137 | 5,023,721 | 1,314,777 | 253,568 | 6,614,203 | 6,164,898 | ||||||||||||||||||
| Total loan operations and other credits | 726,215 | 6,124,513 | 3,251,014 | 8,237,757 | 18,339,499 | 17,318,657 | ||||||||||||||||||
| c. | Breakdown of portfolio and provision for losses by risk levels (rating) |
| Parent company | ||||||||||||||||||||
| % minimum of | 03/31/2022 | 12/31/2021 | ||||||||||||||||||
| Rating | provision | Portfolio | Total provision (a) | Portfolio | Total provision (a) | |||||||||||||||
| AA | - | 6,350,035 | (15,631 | ) | 6,268,516 | (15,277 | ) | |||||||||||||
| A | 0.50 | % | 8,985,185 | (63,387 | ) | 8,621,738 | (95,606 | ) | ||||||||||||
| B | 1.00 | % | 836,615 | (15,425 | ) | 738,198 | (13,518 | ) | ||||||||||||
| C | 3.00 | % | 943,753 | (48,892 | ) | 769,900 | (39,622 | ) | ||||||||||||
| D | 10.00 | % | 208,643 | (34,831 | ) | 218,136 | (36,833 | ) | ||||||||||||
| E | 30.00 | % | 135,866 | (44,721 | ) | 100,651 | (33,223 | ) | ||||||||||||
| F | 50.00 | % | 103,593 | (51,796 | ) | 76,430 | (38,568 | ) | ||||||||||||
| G | 70.00 | % | 88,915 | (62,241 | ) | 84,042 | (58,829 | ) | ||||||||||||
| H | 100.00 | % | 398,505 | (344,176 | ) | 197,757 | (197,757 | ) | ||||||||||||
| Total | 18,051,110 | (681,100 | ) | 17,075,368 | (529,233 | ) | ||||||||||||||
| Consolidated | ||||||||||||||||||||
| % minimum of | 03/31/2022 | 12/31/2021 | ||||||||||||||||||
| Rating | provision | Portfolio | Total provision (a) | Portfolio | Total provision (a) | |||||||||||||||
| AA | - | 6,248,783 | (15,631 | ) | 6,169,651 | (15,277 | ) | |||||||||||||
| A | 0.50 | % | 9,374,826 | (63,697 | ) | 8,963,892 | (95,905 | ) | ||||||||||||
| B | 1.00 | % | 836,615 | (15,425 | ) | 738,198 | (13,518 | ) | ||||||||||||
| C | 3.00 | % | 943,753 | (48,892 | ) | 769,900 | (39,622 | ) | ||||||||||||
| D | 10.00 | % | 208,643 | (34,831 | ) | 218,136 | (36,833 | ) | ||||||||||||
| E | 30.00 | % | 135,866 | (44,721 | ) | 100,651 | (33,223 | ) | ||||||||||||
| F | 50.00 | % | 103,593 | (51,796 | ) | 76,430 | (38,568 | ) | ||||||||||||
| G | 70.00 | % | 88,915 | (62,241 | ) | 84,042 | (58,829 | ) | ||||||||||||
| H | 100.00 | % | 398,505 | (344,176 | ) | 197,757 | (197,757 | ) | ||||||||||||
| Total | 18,339,499 | (681,410 | ) | 17,318,657 | (529,532 | ) | ||||||||||||||
| (a) | In addition to the minimum required provision, a supplementary provision is formed considering the provisioning model, which is based on statistical models that capture historical and prospective information, and on Management’s experience, to reflect our expectation of losses in different economic scenarios. |
50
| d. | Breakdown by sectors of economic activity |
| Parent company | Consolidated | |||||||||||||||
| Activities per segment | 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | ||||||||||||
| Extractive industries | 1,101,420 | 324,703 | 1,101,420 | 324,703 | ||||||||||||
| Construction | 847,397 | 804,111 | 847,397 | 804,111 | ||||||||||||
| Commerce; repair of motor vehicles and motorcycles | 642,653 | 628,262 | 642,653 | 628,262 | ||||||||||||
| Administrative activities and complementary services | 571,688 | 592,057 | 571,688 | 592,057 | ||||||||||||
| Agriculture, livestock, forestry, fisheries and aquaculture | 343,236 | 94,965 | 343,236 | 94,965 | ||||||||||||
| Financial, insurance activities and related services | 259,561 | 237,967 | 259,561 | 481,256 | ||||||||||||
| Real estate activities | 259,396 | 263,083 | 259,396 | 263,083 | ||||||||||||
| Other segments | 353,844 | 649,833 | 353,844 | 649,833 | ||||||||||||
| Legal entity | 4,379,195 | 4,366,078 | 4,379,195 | 4,609,367 | ||||||||||||
| Individuals | 13,671,915 | 12,709,290 | 13,960,304 | 12,709,290 | ||||||||||||
| Total loan operations and other credits | 18,051,110 | 17,075,368 | 18,339,499 | 17,318,657 | ||||||||||||
| e. | Renegotiated loan operations |
During the period ended March 31, 2022, the total amount of renegotiated credits was R$ 32,381 (March 31, 2021: R$33,445).
| f. | Changes in the provision for losses associated with credit risk |
| Parent company | Consolidated | |||||||||||||||
| 03/31/2022 | 03/31/2021 | 03/31/2022 | 03/31/2021 | |||||||||||||
| Opening balance | (529,233 | ) | (205,685 | ) | (529,532 | ) | (205,785 | ) | ||||||||
| Provision formed (a) | (249,731 | ) | (112,346 | ) | (250,694 | ) | (112,352 | ) | ||||||||
| Reversal of provision (a) | 5,779 | 17,554 | 6,731 | 17,554 | ||||||||||||
| Write-offs to loss | 92,085 | 46,344 | 92,085 | 46,272 | ||||||||||||
| Closing balance | (681,100 | ) | (254,133 | ) | (681,410 | ) | (254,311 | ) | ||||||||
| (a) | It is comprised by the expense with “Allowance for doubtful accounts”. |
| g. | Income from loan operations |
| Parent company | Consolidated | |||||||||||||||
| 03/31/2022 | 03/31/2021 | 03/31/2022 | 03/31/2021 | |||||||||||||
| Loans and discounted notes | 240,131 | 72,844 | 253,869 | 74,682 | ||||||||||||
| Real estate financing | 98,511 | 89,154 | 98,511 | 89,154 | ||||||||||||
| Rural financing | 12,463 | - | 12,463 | - | ||||||||||||
| Credit card operations | 114,632 | 110,570 | 114,633 | 110,570 | ||||||||||||
| Recovery of loans written off as loss | 5,540 | 10,786 | 5,540 | 10,786 | ||||||||||||
| Total | 471,277 | 283,354 | 485,016 | 285,192 | ||||||||||||
51
| h. | Concentration of loan operations |
| Parent company | ||||||||||||||||
| 03/31/2022 | % of portfolio | 12/31/2021 | % of portfolio | |||||||||||||
| Major debtor | 214,963 | 1.2 | % | 274,262 | 1.6 | % | ||||||||||
| 10 greatest debtors | 1,302,755 | 7.2 | % | 1,610,203 | 9.4 | % | ||||||||||
| 20 greatest debtors | 1,818,893 | 10.1 | % | 2,034,977 | 11.9 | % | ||||||||||
| 50 greatest debtors | 2,800,371 | 15.5 | % | 2,627,038 | 15.4 | % | ||||||||||
| 100 main debtors | 3,580,146 | 19.8 | % | 3,136,975 | 18.4 | % | ||||||||||
| Consolidated | ||||||||||||||||
| 03/31/2022 | % of portfolio | 12/31/2021 | % of portfolio | |||||||||||||
| Major debtor | 214,963 | 1.2 | % | 274,262 | 1.6 | % | ||||||||||
| 10 greatest debtors | 1,302,755 | 7.1 | % | 1,610,203 | 9.3 | % | ||||||||||
| 20 greatest debtors | 1,818,893 | 9.9 | % | 2,034,977 | 11.8 | % | ||||||||||
| 50 greatest debtors | 2,800,371 | 15.3 | % | 2,627,038 | 15.2 | % | ||||||||||
| 100 main debtors | 3,969,787 | 21.6 | % | 3,479,129 | 20.1 | % | ||||||||||
| i. | Acquisition of a loan operation with substantial retention of risks and rewards |
On March 29, 2022, an operational agreement was entered into between Banco Inter and Banco Mercantil do Brasil S.A. for the purpose of jointly carrying out credit granting operations, with Inter as the acquirer and Mercantil as the seller. The balance of portfolio acquired on March 31, 2022, is R$ 176,574. The acquisition resulted in a premium of R$ 29,562 (difference between the traded value and the book value of the portfolio), as presented in Note 11.
| 11 | Other financial assets |
| Parent company | Consolidated | |||||||||||||||
| 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | |||||||||||||
| Sundry debtors (a) | 287,106 | 192,668 | 310,424 | 210,340 | ||||||||||||
| Other income receivable | 125,678 | 121,160 | 175,147 | 171,435 | ||||||||||||
| Advances to third parties | 55,057 | 17,745 | 97,671 | 59,288 | ||||||||||||
| Taxes and contributions recoverable | 43,502 | 40,888 | 62,042 | 49,554 | ||||||||||||
| Premium on financial asset transfer operation (b) | 29,562 | - | 29,562 | - | ||||||||||||
| Other | 9,408 | 8,684 | 63,735 | 35,350 | ||||||||||||
| Total | 550,313 | 381,144 | 738,581 | 525,967 | ||||||||||||
| Current | 549,802 | 380,666 | 735,962 | 523,497 | ||||||||||||
| Non-current | 511 | 478 | 2,619 | 2,470 | ||||||||||||
| (a) | The balance is substantially composed of amounts to be processed from cards, early settlement of credit operations, disputes on card transactions (Chargeback), and Associated Company/Partner Marketplace receivables. |
| (b) | Premium recognized on the acquisition of the loan portfolio in the quarter, as described in Note 10 (i). |
52
| 12 | Deferred tax assets |
Deferred tax assets arise from temporary differences (related to provisions on loan operations, provision for civil and labor claims, mark-to-market of securities classified as available for sale or held for trading, tax loss carryforwards and negative social contribution tax basis, among others). These credits are estimated to be realized until 2031.
| a. | Origin and changes in deferred tax assets |
| Parent company | ||||||||||||||||
| Balance at 12/31/2021 | Formation | Realization | Balance at 03/31/2022 | |||||||||||||
| Recomposition of deferred assets | ||||||||||||||||
| Provision for impairment loss on loans and advances | 195,882 | 82,913 | (34,807 | ) | 243,988 | |||||||||||
| Provision for contingencies | 9,721 | 188 | (331 | ) | 9,578 | |||||||||||
| Mark-to-market of financial assets | 190,602 | 49,225 | (19,619 | ) | 220,208 | |||||||||||
| Sundry temporary differences | 1,251 | 2,040 | (354 | ) | 2,937 | |||||||||||
| Tax loss | 93,102 | 29,014 | (26,518 | ) | 95,598 | |||||||||||
| Hedge operations | 31,180 | 4,494 | (1,667 | ) | 34,007 | |||||||||||
| 521,738 | 167,874 | (83,296 | ) | 606,316 | ||||||||||||
| Consolidated | ||||||||||||||||
| Balance at 12/31/2021 | Formation | Realization | Balance at 03/31/2022 | |||||||||||||
| Recomposition of deferred assets | ||||||||||||||||
| Provision for impairment loss on loans and advances | 195,882 | 82,913 | (34,806 | ) | 243,989 | |||||||||||
| Provision for contingencies | 9,769 | 188 | (330 | ) | 9,627 | |||||||||||
| Mark-to-market of financial assets | 191,283 | 49,225 | (19,619 | ) | 220,889 | |||||||||||
| Sundry temporary differences | 750 | 2,420 | (731 | ) | 2,439 | |||||||||||
| Tax loss | 95,346 | 29,768 | (25,999 | ) | 99,115 | |||||||||||
| Hedge operations | 31,180 | 4,494 | (1,667 | ) | 34,007 | |||||||||||
| 524,210 | 169,008 | (83,152 | ) | 610,066 | ||||||||||||
| Parent company | ||||||||||||||||
| Balance at 12/31/2020 | Formation | Realization | Balance at 12/31/2021 | |||||||||||||
| Recomposition of deferred assets | ||||||||||||||||
| Provision for impairment loss on loans and advances | 66,684 | 165,355 | (36,157 | ) | 195,882 | |||||||||||
| Provision for contingencies | 9,294 | 3,855 | (3,428 | ) | 9,721 | |||||||||||
| Mark-to-market of financial assets | (501 | ) | 438,585 | (247,482 | ) | 190,602 | ||||||||||
| Sundry temporary differences | 371 | 2,451 | (1,571 | ) | 1,251 | |||||||||||
| Tax loss | 57,291 | 44,828 | (9,017 | ) | 93,102 | |||||||||||
| Hedge operations | 22,195 | 132,322 | (123,337 | ) | 31,180 | |||||||||||
| 155,334 | 787,396 | (420,992 | ) | 521,738 | ||||||||||||
53
| Consolidated | ||||||||||||||||
| Balance at 12/31/2020 | Formation | Realization | Balance at 12/31/2021 | |||||||||||||
| Recomposition of deferred assets | ||||||||||||||||
| Provision for impairment loss on loans and advances | 66,684 | 165,355 | (36,157 | ) | 195,882 | |||||||||||
| Provision for contingencies | 8,840 | 3,855 | (2,926 | ) | 9,769 | |||||||||||
| Mark-to-market of financial assets | (501 | ) | 438,764 | (246,980 | ) | 191,283 | ||||||||||
| Sundry temporary differences | 371 | 2,451 | (2,072 | ) | 750 | |||||||||||
| Tax loss | 58,794 | 51,134 | (14,582 | ) | 95,346 | |||||||||||
| Hedge operations | 22,195 | 132,322 | (123,337 | ) | 31,180 | |||||||||||
| 156,383 | 793,881 | (426,054 | ) | 524,210 | ||||||||||||
Present value of tax credits was calculated based on average rate of Interbank Deposit Certificates (CDI) projected for corresponding periods, CDI of 10.82% p.a. (2021: CDI of 5.90% p.a.).
| b. | Provision for realization of tax credits |
The expected realization of tax credits is supported by a study of realization of tax credit, as presented below:
| Parent company | |||||||||||||||||||||||||||||||||
| 03/31/3022 | |||||||||||||||||||||||||||||||||
| Basis of deferred credits | Income tax | Basis of deferred credits | CSLL | ||||||||||||||||||||||||||||||
| Period | Credit basis | Present value | Value of credit | Present value | Credit basis | Present value | Value of credit | Present value | |||||||||||||||||||||||||
| 2022 | 757,295 | 683,372 | 189,323 | 170,843 | 749,669 | 676,490 | 149,934 | 135,298 | |||||||||||||||||||||||||
| 2023 | 144,980 | 126,868 | 36,245 | 32,707 | 143,520 | 125,591 | 28,704 | 25,902 | |||||||||||||||||||||||||
| 2024 | 88,979 | 74,922 | 22,245 | 20,073 | 88,083 | 74,168 | 17,617 | 15,897 | |||||||||||||||||||||||||
| 2025 | 132,625 | 105,449 | 33,156 | 29,920 | 131,289 | 104,387 | 26,258 | 23,695 | |||||||||||||||||||||||||
| 2026 | 150,298 | 150,298 | 37,574 | 33,907 | 148,784 | 111,706 | 29,757 | 26,852 | |||||||||||||||||||||||||
| 2027–2031 | 79,249 | 47,334 | 19,812 | 17,878 | 78,451 | 46,857 | 15,690 | 14,159 | |||||||||||||||||||||||||
| Grand total | 1,353,426 | 1,188,243 | 338,355 | 305,328 | 1,339,796 | 1,139,200 | 267,961 | 241,803 | |||||||||||||||||||||||||
| Consolidated | |||||||||||||||||||||||||||||||||
| 03/31/2022 | |||||||||||||||||||||||||||||||||
| Basis of deferred credits | Income tax | Basis of deferred credits | CSLL | ||||||||||||||||||||||||||||||
| Period | Credit basis | Present value | Value of credit | Present value | Credit basis | Present value | Value of credit | Present value | |||||||||||||||||||||||||
| 2022 | 763,382 | 688,865 | 192,056 | 173,308 | 755,792 | 682,015 | 150,952 | 136,217 | |||||||||||||||||||||||||
| 2023 | 146,145 | 127,888 | 36,245 | 32,707 | 144,692 | 126,616 | 28,704 | 25,902 | |||||||||||||||||||||||||
| 2024 | 89,694 | 75,524 | 22,245 | 20,073 | 88,803 | 74,773 | 17,617 | 15,897 | |||||||||||||||||||||||||
| 2025 | 133,691 | 106,297 | 33,156 | 29,920 | 132,361 | 105,240 | 26,258 | 23,695 | |||||||||||||||||||||||||
| 2026 | 151,506 | 113,749 | 37,574 | 33,907 | 150,000 | 112,618 | 29,757 | 26,852 | |||||||||||||||||||||||||
| 2027–2031 | 79,886 | 47,714 | 19,812 | 17,878 | 79,092 | 47,240 | 15,690 | 14,159 | |||||||||||||||||||||||||
| Grand total | 1,364,304 | 1,160,037 | 341,088 | 307,793 | 1,350,740 | 1,148,502 | 268,978 | 242,722 | |||||||||||||||||||||||||
54
| Parent company | ||||||||||||||||||||||||||||||||
| 12/31/2021 | ||||||||||||||||||||||||||||||||
| Basis of deferred credits | Income tax | Basis of CSLL deferred credits | CSLL | |||||||||||||||||||||||||||||
| Period | Credit basis | Present value | Value of credit | Present value | Credit basis | Present value | Value of credit | Present value | ||||||||||||||||||||||||
| 2022 | 597,039 | 538,759 | 163,248 | 147,313 | 647,805 | 584,570 | 128,685 | 116,123 | ||||||||||||||||||||||||
| 2023 | 114,300 | 100,021 | 31,253 | 28,202 | 124,019 | 108,526 | 24,636 | 22,231 | ||||||||||||||||||||||||
| 2024 | 70,150 | 59,067 | 19,181 | 17,309 | 76,115 | 64,090 | 15,120 | 13,644 | ||||||||||||||||||||||||
| 2025 | 104,559 | 83,134 | 28,590 | 25,799 | 113,450 | 90,203 | 22,536 | 20,337 | ||||||||||||||||||||||||
| 2026 | 118,492 | 118,492 | 32,399 | 29,237 | 128,568 | 96,527 | 25,540 | 23,047 | ||||||||||||||||||||||||
| 2027–2031 | 62,478 | 37,317 | 17,084 | 15,416 | 67,791 | 40,490 | 13,466 | 12,152 | ||||||||||||||||||||||||
| Grand total | 1,067,018 | 936,791 | 291,755 | 263,276 | 1,157,747 | 984,406 | 229,983 | 207,533 | ||||||||||||||||||||||||
| Consolidated | ||||||||||||||||||||||||||||||||
| 12/31/2021 | ||||||||||||||||||||||||||||||||
| Basis of deferred credits | Income tax | Basis of deferred credits | CSLL | |||||||||||||||||||||||||||||
| Period | Credit basis | Present value | Value of credit | Present value | Credit basis | Present value | Value of credit | Present value | ||||||||||||||||||||||||
| 2022 | 657,006 | 592,872 | 164,251 | 148,218 | 651,818 | 588,191 | 129,065 | 116,466 | ||||||||||||||||||||||||
| 2023 | 125,780 | 110,067 | 31,445 | 28,376 | 124,787 | 109,198 | 24,709 | 22,297 | ||||||||||||||||||||||||
| 2024 | 77,196 | 65,000 | 19,299 | 17,415 | 76,586 | 64,487 | 15,165 | 13,684 | ||||||||||||||||||||||||
| 2025 | 115,061 | 91,484 | 28,765 | 25,957 | 114,152 | 90,762 | 22,603 | 20,397 | ||||||||||||||||||||||||
| 2026 | 130,394 | 97,898 | 32,598 | 29,416 | 129,364 | 97,125 | 25,615 | 23,115 | ||||||||||||||||||||||||
| 2027–2031 | 68,754 | 41,066 | 17,188 | 15,511 | 68,211 | 40,741 | 13,506 | 12,188 | ||||||||||||||||||||||||
| Grand total | 1,174,190 | 998,387 | 293,547 | 264,893 | 1,164,919 | 990,504 | 230,663 | 208,146 | ||||||||||||||||||||||||
| c. | Tax credit realization study |
Considering the non-compliance of Inter in Article 4, head provision, of the Resolution of the National Monetary Council (CMN) 4842/20, regarding the formation of tax credits, a claim was filed with the Central Bank of Brazil claiming the waiving of the requirement to comply with item II, Article 4 of said Resolution, referring to the base date of December 31, 2021, based on a tax credit realization study, as provided for in Paragraph 40 of the same Article. The request was accepted by the regulator on February 15, 2022. On 06/30/2022, a new protocol will be carried out, if the situation of non-compliance with the requirement provided for in article 4, caput, of the Resolution of the Brazilian Monetary Council – CMN 4842/20, persists, as provided for in the aforementioned regulation. We emphasize that the best efforts are being made to ensure that the projections are met.
55
| 13 | Other assets |
| Parent company | Consolidated | |||||||||||||||
| 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | |||||||||||||
| Non-operating assets (a) | ||||||||||||||||
| Assets not for own use | 156,119 | 149,746 | 156,119 | 149,746 | ||||||||||||
| Other | - | - | 14,091 | 2,961 | ||||||||||||
| 156,119 | 149,746 | 170,210 | 152,707 | |||||||||||||
| Prepaid expenses | ||||||||||||||||
| Other prepaid expenses | 182,146 | 159,095 | 195,674 | 160,825 | ||||||||||||
| 182,146 | 159,095 | 195,674 | 160,825 | |||||||||||||
| Total | 338,265 | 308,841 | 365,884 | 313,532 | ||||||||||||
| Current | 58,490 | 282,059 | 72,581 | 286,750 | ||||||||||||
| Non-current | 279,775 | 26,782 | 293,303 | 26,782 | ||||||||||||
| (a) | Non-operating assets refer to properties received upon payment in kind of loans and consolidations. When applicable, the provision for devaluation of these real estate properties is formed based on appraisal reports made by specialized companies hired by the Management. |
56
| 14 | Investments |
| a. | Breakdown of investments in subsidiaries |
| Value of the investments | Equity in income of subsidiaries | |||||||||||||||||||||||
| Entity - Subsidiaries | Adjusted shareholders’ equity | Net income (loss) | 03/31/2022 | 12/31/2021 | 03/31/2022 | 03/31/2021 | ||||||||||||||||||
| Inter Digital Corretora e Consultoria de Seguros Ltda. | 68,988 | 14,208 | 41,220 | 32,731 | 8,489 | 8,333 | ||||||||||||||||||
| Inter Distribuidora de Títulos e Valores Mobiliários Ltda. | 58,718 | 8,152 | 57,740 | 49,722 | 8,017 | (291 | ) | |||||||||||||||||
| Inter Marketplace Ltda. | 177,614 | 40,898 | 177,533 | 139,576 | 37,957 | 19,934 | ||||||||||||||||||
| Inter Asset Holding S.A. | 3,534 | 572 | 2,474 | 2,835 | 399 | 1,116 | ||||||||||||||||||
| Acerto Cobrança e Informações | 15,871 | (1,176 | ) | 9,523 | 10,228 | (706 | ) | (357 | ) | |||||||||||||||
| IM Designs Desenvolvimento de Software Ltda. | 6,412 | 1,173 | 3,206 | 2,786 | 420 | - | ||||||||||||||||||
| USEND | 69,348 | (1,159 | ) | 69,348 | - | (1,159 | ) | - | ||||||||||||||||
| Goodwill due to expected future profitability | - | - | 904,787 | 74,083 | - | - | ||||||||||||||||||
| Total | 400,485 | 62,668 | 1,265,831 | 311,961 | 53,417 | 28,736 | ||||||||||||||||||
| Value of the investments | Equity in income of subsidiaries | |||||||||||||||||||||||
| Entities (Associated companies) | Adjusted shareholders’ equity | Net income (loss) | 03/31/2022 | 12/31/2021 | 03/31/2022 | 03/31/2021 | ||||||||||||||||||
| Granito Soluções em Pagamento S.A. | 31,946 | (11,994 | ) | 15,133 | 20,706 | (5,572 | ) | - | ||||||||||||||||
| Goodwill due to expected future profitability | - | - | 54,530 | 56,044 | - | - | ||||||||||||||||||
| Total | 69,663 | 76,750 | (5,572 | ) | - | |||||||||||||||||||
| Value of the investments | Equity in income of subsidiaries | |||||||||||||||||||||||
| Other investments | Adjusted shareholders’ equity | Net income (loss) | 03/31/2022 | 12/31/2021 | 03/31/2022 | 03/31/2021 | ||||||||||||||||||
| Other investments | - | - | 9,509 | 1,151 | - | - | ||||||||||||||||||
| Total | - | - | 9,509 | 1,151 | - | - | ||||||||||||||||||
Adjustments resulting from valuation by the equity method of accounting of investments, recorded in income and expense accounts, under the column of “Income (loss) from interest in subsidiaries” and “Income (loss) from interest in associated companies”.
57
| b. | Summarized information on subsidiaries |
| Total assets | Shareholders' equity | Capital | ||||||||||||||||||||||
| Subsidiaries | 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | ||||||||||||||||||
| Inter Digital Corretora e Consultoria de Seguros Ltda. | 147,638 | 124,670 | 68,988 | 54,781 | 100 | 100 | ||||||||||||||||||
| Inter DTVM Ltda | 207,082 | 368,212 | 58,718 | 50,562 | 25,000 | 25,000 | ||||||||||||||||||
| Inter Marketplace Ltda. | 267,940 | 231,051 | 181,335 | 140,295 | 5,000 | 5,000 | ||||||||||||||||||
| Inter Asset Holding S.A. | 6,724 | 7,148 | 3,534 | 4,050 | 1,015 | 1,015 | ||||||||||||||||||
| Acerto Cobrança e Informações | 18,093 | 18,862 | 15,871 | 17,047 | 21,032 | 21,032 | ||||||||||||||||||
| IM Designs Desenvolvimento de Software S.A. | 7,088 | 6,145 | 6,412 | 5,572 | 5,138 | 5,138 | ||||||||||||||||||
| USEND | 304,429 | - | 69,348 | - | 172,467 | - | ||||||||||||||||||
| c. | Changes in investments |
The details of investment acquisition are presented in Note 3(a).
| Opening balance at 01/01/2022 | Acquisition of investment | Equity in net income of subsidiaries | Amortization of goodwill | Distribution of dividends | Capital again | Closing balance at 03/31/2022 | Closing balance at 12/31/2021 | |||||||||||||||||||||||||
| Inter Digital Corretora e Consultoria de Seguros Ltda. | 32,731 | - | 8,489 | - | - | - | 41,220 | 41,220 | ||||||||||||||||||||||||
| Inter DTVM Ltda. | 49,722 | - | 8,017 | - | - | - | 57,739 | 57,739 | ||||||||||||||||||||||||
| Inter Marketplace Ltda. | 139,576 | - | 37,957 | - | - | - | 177,533 | 177,533 | ||||||||||||||||||||||||
| Inter Asset Holding S.A. | 2,835 | - | 399 | - | (760 | ) | - | 2,474 | 2,474 | |||||||||||||||||||||||
| Acerto Cobrança e Informações | 10,228 | - | (706 | ) | - | - | - | 9,522 | 9,522 | |||||||||||||||||||||||
| Granito Soluções em Pagamento S.A. | 20,705 | - | (5,572 | ) | - | - | - | 15,133 | 15,133 | |||||||||||||||||||||||
| IM Designs Desenvolvimento de Software S.A. | 2,786 | - | 420 | - | - | - | 3,206 | 3,206 | ||||||||||||||||||||||||
| Usend | - | 70,507 | (1,159 | ) | - | - | - | 69,348 | 69,348 | |||||||||||||||||||||||
| Goodwill due to expected future profitability | 130,128 | 838,411 | - | (9,070 | ) | - | - | 959,319 | 959,469 | |||||||||||||||||||||||
| Other investments | 1,152 | - | - | - | - | 8,358 | 9,509 | 9,510 | ||||||||||||||||||||||||
| Total | 389,863 | 908,918 | 47,845 | (9,070 | ) | (760 | ) | 8,358 | 1,345,003 | 1,345,153 | ||||||||||||||||||||||
| (a) | Goodwill on the acquisition of investments, as disclosed in Note 3 (vi.1). |
| Opening
balance |
Equity
in net income of subsidiaries |
Amortization
of goodwill |
Capital
again |
Closing balance at 03/31/2022 |
Closing
balance at 12/31/2021 |
|||||||||||||||||||
| Granito Soluções em Pagamento S.A. | 20,706 | (5,572 | ) | - | - | 15,133 | 20,705 | |||||||||||||||||
| Goodwill due to expected future profitability - Granito | 56,044 | - | (1,515 | ) | - | 54,529 | 56,044 | |||||||||||||||||
| Other investments | 1,151 | - | - | 8,358 | 9,510 | 1,152 | ||||||||||||||||||
| Total | 77,901 | (5,572 | ) | (1,515 | ) | 8,358 | 79,172 | 77,901 | ||||||||||||||||
58
| 15 | Intangible assets and goodwill |
| a. | Breakdown of intangible assets |
| Parent company | ||||||||||||||||||||||||||||
| 03/31/2022 | 12/31/2021 | |||||||||||||||||||||||||||
| Average rate of amortization (p.a.) | Historical cost | (Accumulated amortization) | Net value | Historical cost | (Accumulated amortization) | Net value | ||||||||||||||||||||||
| Right-of-use (a) | 100% | 171,718 | (103,454 | ) | 68,264 | 124,484 | (78,512 | ) | 45,972 | |||||||||||||||||||
| Development costs (b) | 20% | 150,359 | (19,598 | ) | 130,761 | 124,508 | (13,585 | ) | 110,923 | |||||||||||||||||||
| Client portfolio | 20% | 9,341 | (4,270 | ) | 5,071 | 9,341 | (3,739 | ) | 5,602 | |||||||||||||||||||
| Intangible in progress | - | 138,534 | - | 138,534 | 134,792 | - | 134,792 | |||||||||||||||||||||
| Total intangible assets | 469,952 | (127,322 | ) | 342,630 | 393,125 | (95,836 | ) | 297,289 | ||||||||||||||||||||
| Consolidated | ||||||||||||||||||||||||||||
| 03/31/2022 | 12/31/2021 | |||||||||||||||||||||||||||
| Average rate of amortization (p.a.) | Historical cost | (Accumulated amortization) | Net value | Historical cost | (Accumulated amortization) | Net value | ||||||||||||||||||||||
| Right-of-use (a) | 100% | 176,703 | (107,209 | ) | 69,494 | 129,231 | (82,083 | ) | 47,148 | |||||||||||||||||||
| Development costs (b) | 20% | 164,933 | (21,379 | ) | 143,554 | 129,948 | (14,531 | ) | 115,417 | |||||||||||||||||||
| Client portfolio | 20% | 9,341 | (4,270 | ) | 5,071 | 9,341 | (3,739 | ) | 5,602 | |||||||||||||||||||
| Goodwill due to expected future profitability | - | 921,805 | (9,804 | ) | 912,001 | 90,569 | (9,213 | ) | 81,356 | |||||||||||||||||||
| Intangible in progress | - | 176,734 | (113 | ) | 176,621 | 171,633 | - | 171,633 | ||||||||||||||||||||
| Total intangible assets | 1,449,516 | (142,775 | ) | 1,306,741 | 530,722 | (109,566 | ) | 421,156 | ||||||||||||||||||||
| (a) | Right-of-use: refer to software and licenses acquired from third parties and used to provide information processing services. |
| (b) | Development costs refer to development expenditures of new products or services intended to increase Inter’s revenue. |
| b. | Changes in intangible assets |
| Parent company | ||||||||||||||||||||||||||||
| Historical cost | Amortization | |||||||||||||||||||||||||||
| 12/31/2021 | Addition | Write-off | Transfers | Addition | Write-off | 03/31/2022 | ||||||||||||||||||||||
| Right to use | 45,972 | 47,235 | - | - | (24,942 | ) | - | 68,264 | ||||||||||||||||||||
| Development costs | 110,923 | - | - | 25,851 | (6,013 | ) | - | 130,761 | ||||||||||||||||||||
| Client portfolio | 5,602 | - | - | - | (531 | ) | - | 5,071 | ||||||||||||||||||||
| Intangible in progress | 134,792 | 29,593 | - | (25,851 | ) | - | - | 138,534 | ||||||||||||||||||||
| Total intangible assets | 297,289 | 76,828 | - | - | (31,486 | ) | - | 342,630 | ||||||||||||||||||||
| Consolidated | ||||||||||||||||||||||||||||
| Historical cost | Amortization | |||||||||||||||||||||||||||
| 12/31/2021 | Addition | Write-off | Transfers | Addition | Write-off | 03/31/2022 | ||||||||||||||||||||||
| Right to use | 47,148 | 41,247 | (950 | ) | 7,175 | (26,075 | ) | 950 | 69,494 | |||||||||||||||||||
| Development costs | 115,417 | - | - | 34,985 | (7,042 | ) | 194 | 143,554 | ||||||||||||||||||||
| Client portfolio | 5,602 | - | - | - | (531 | ) | - | 5,071 | ||||||||||||||||||||
| Goodwill due to expected future profitability | 81,356 | 838,411 | - | (7,175 | ) | (591 | ) | - | 912,001 | |||||||||||||||||||
| Intangible in progress | 171,633 | 41,350 | (1,264 | ) | (34,985 | ) | (113 | ) | - | 176,621 | ||||||||||||||||||
| Total intangible assets | 421,156 | 921,008 | (2,214 | ) | - | (34,352 | ) | 1,144 | 1,306,741 | |||||||||||||||||||
59
| 16 | Deposits and acceptances and endorsements |
| a. | Deposits |
| Parent company | ||||||||||||||||||||||||
1–30 days | 31–180 days | 181–360 days | >360 days | Total at 03/31/2022 | Total on 12/31/2021 | |||||||||||||||||||
| Demand deposits | 9,696,859 | - | - | - | 9,696,859 | 10,019,395 | ||||||||||||||||||
| Savings deposits | 1,215,061 | - | - | - | 1,215,061 | 1,230,039 | ||||||||||||||||||
| Time Deposits | 61,195 | 510,442 | 709,488 | 6,612,878 | 7,894,003 | 7,157,418 | ||||||||||||||||||
| Interbank deposits | 10,369 | 128,200 | - | - | 138,569 | 128,125 | ||||||||||||||||||
| Grand total | 10,983,484 | 638,642 | 709,488 | 6,612,878 | 18,944,492 | 18,534,977 | ||||||||||||||||||
| Current | 12,331,614 | 12,510,531 | ||||||||||||||||||||||
| Non-current | 6,612,878 | 6,024,446 | ||||||||||||||||||||||
| Consolidated | ||||||||||||||||||||||||
1–30 days | 31–180 days | 181–360 days | >360 days | Total at 03/31/2022 | Total on 12/31/2021 | |||||||||||||||||||
| Demand deposits | 9,635,118 | - | - | - | 9,635,118 | 9,932,959 | ||||||||||||||||||
| Savings deposits | 1,215,061 | - | - | - | 1,215,061 | 1,230,039 | ||||||||||||||||||
| Time Deposits | 61,195 | 510,442 | 709,488 | 6,608,804 | 7,889,929 | 6,922,061 | ||||||||||||||||||
| Interbank deposits | 10,369 | 128,200 | - | - | 138,569 | 128,125 | ||||||||||||||||||
| Grand total | 10,921,743 | 638,642 | 709,488 | 6,608,804 | 18,878,677 | 18,213,184 | ||||||||||||||||||
| Current | 12,269,873 | 12,424,094 | ||||||||||||||||||||||
| Non-current | 6,608,804 | 5,789,090 | ||||||||||||||||||||||
| b. | Acceptances and endorsements |
| Parent company | ||||||||||||||||||||||||
1–30 days | 31–180 days | 181–360 days | >360 days | Total at 03/31/2022 | Total on 12/31/2021 | |||||||||||||||||||
| Real estate credit note | 56,618 | 292,323 | 231,526 | 3,714,014 | 4,294,481 | 3,596,104 | ||||||||||||||||||
| Financial Bills | - | - | - | 28,637 | 28,637 | 2,090 | ||||||||||||||||||
| Grand total | 56,618 | 292,323 | 231,526 | 3,742,651 | 4,323,118 | 3,598,194 | ||||||||||||||||||
| Current | 580,467 | 455,356 | ||||||||||||||||||||||
| Non-current | 3,742,651 | 3,142,838 | ||||||||||||||||||||||
| Consolidated | ||||||||||||||||||||||||
1–30 days | 31–180 days | 181–360 days | >360 days | Total at 03/31/2022 | Total on 12/31/2021 | |||||||||||||||||||
| Real estate credit note | 56,618 | 250,161 | 231,526 | 3,714,014 | 4,252,319 | 3,546,938 | ||||||||||||||||||
| Financial Bills | - | - | - | 28,637 | 28,637 | 25,155 | ||||||||||||||||||
| Grand total | 56,618 | 250,161 | 231,526 | 3,742,651 | 4,280,956 | 3,572,093 | ||||||||||||||||||
| Current | 538,305 | 429,255 | ||||||||||||||||||||||
| Non-current | 3,742,651 | 3,142,838 | ||||||||||||||||||||||
66
| c. | Expenses with money market repurchase agreements |
| Parent company | Consolidated | |||||||||||||||
| 03/31/2022 | 03/31/2021 | 03/31/2022 | 03/31/2021 | |||||||||||||
| Interbank deposits | (3,835 | ) | (218 | ) | (3,836 | ) | (218 | ) | ||||||||
| Saving deposits expense | (17,703 | ) | (2,738 | ) | (17,703 | ) | (2,738 | ) | ||||||||
| Time Deposits | (206,680 | ) | (29,876 | ) | (206,753 | ) | (28,909 | ) | ||||||||
| Real Estate Credit Bills | (107,285 | ) | (23,912 | ) | (107,151 | ) | (23,912 | ) | ||||||||
| Financial Bills | (945 | ) | - | (945 | ) | - | ||||||||||
| Total expenses with money market repurchase agreements | (336,448 | ) | (56,744 | ) | (336,388 | ) | (55,777 | ) | ||||||||
| 17 | Other financial liabilities |
| Parent company | Consolidated | |||||||||||||||
| 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | |||||||||||||
| Sundry payments (a) | 204,558 | 383,386 | 305,782 | 445,559 | ||||||||||||
| Creditors’ funds to be released | 191,680 | 152,825 | 191,037 | 153,860 | ||||||||||||
| Taxes due | 52,097 | 41,454 | 69,747 | 54,777 | ||||||||||||
| Payables to related companies | 26,141 | 29,653 | - | - | ||||||||||||
| Assignments payable | 36,565 | 41,000 | 36,565 | 41,000 | ||||||||||||
| Liabilities from securities clearing accounts | - | - | 234,110 | - | ||||||||||||
| Provision for income tax and social contribution | - | - | 31,026 | 23,616 | ||||||||||||
| Other liabilities | 8,877 | 3,646 | 34,995 | 31,067 | ||||||||||||
| Deferred income | - | - | - | 57,408 | ||||||||||||
| Total | 519,918 | 651,964 | 903,262 | 807,287 | ||||||||||||
| Current | 519,918 | 651,964 | 903,262 | 692,827 | ||||||||||||
| Non-current | - | - | - | 114,460 | ||||||||||||
(a) The balance is substantially composed of creditors and sundry suppliers, payments to be processed, provisions, benefits and labor charges, and financing to be released.
67
| 18 | Related party transactions |
Transactions with related parties are defined and controlled in accordance with the Related-Party Policy approved by the Group’s Board of Directors. The policy defines and ensures transactions involving the Group and its shareholders or direct or indirect related parties.
The transactions with related parties are detailed below:
| Controlling shareholder (a) | Subsidiaries (b) | Key management personnel (c) | Other related parties (d) | Total | |||||||||||||||||||||||||||
| 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | 03/31/2022 | 03/31/2021 | 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | ||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||
| Loan operations | 14,848 | 14,396 | 148,039 | 144,873 | 836 | 19,789 | 316,861 | 426,967 | 480,584 | 606,025 | |||||||||||||||||||||
| Inter Holding Financeira S.A. | 14,782 | 14,388 | - | - | - | - | - | - | 14,782 | 14,388 | |||||||||||||||||||||
| Granito soluções em pagamentos S.A. | - | - | 45,882 | 45,882 | - | - | - | - | 45,882 | 45,882 | |||||||||||||||||||||
| Inter Distribuidora de Títulos e Valores Mobiliários Ltda. (h) | - | - | 101,727 | 98,865 | - | - | - | - | 101,727 | 98,865 | |||||||||||||||||||||
| Log Commercial Properties e Participação S/A (g) | - | - | - | - | - | - | 62,022 | 61,914 | 62,022 | 61,914 | |||||||||||||||||||||
| MRV Engenharia e Participações S/A (e) | - | - | - | - | - | - | 142,060 | 243,648 | 142,060 | 243,648 | |||||||||||||||||||||
| Stone Pagamentos S.A. (f) | - | - | - | - | - | - | 105,131 | 103,732 | 105,131 | 103,732 | |||||||||||||||||||||
| Key management personnel (c) | - | - | - | - | 836 | 19,789 | - | - | 836 | 19,789 | |||||||||||||||||||||
| Other (k) | 66 | 8 | 430 | 126 | - | - | 7,648 | 17,673 | 8,144 | 17,807 | |||||||||||||||||||||
| Securities | 158 | 371 | 22,545 | 87,557 | 11,510 | 25,962 | 43,517 | 146,085 | 77,730 | 259,975 | |||||||||||||||||||||
| Inter Marketplace Intermediacao de Negocios e Servicos Ltda. | - | - | 20,726 | 20,235 | - | - | - | - | 20,726 | 20,235 | |||||||||||||||||||||
| Inter Distribuidora de Títulos e Valores Mobiliários Ltda. | - | - | 4 | 59,779 | - | - | - | - | 4 | 59,779 | |||||||||||||||||||||
| Inter Digital Corretora e Consultoria de Seguros Ltda | - | - | 1,307 | 3,429 | - | - | - | - | 1,307 | 3,429 | |||||||||||||||||||||
| Conedi Participações Ltda | - | - | - | - | - | - | 34,469 | 88,231 | 34,469 | 88,231 | |||||||||||||||||||||
| Key management personnel (c) | - | - | - | - | 11,510 | 25,962 | - | - | 11,510 | 25,962 | |||||||||||||||||||||
| Other (k) | 158 | 371 | 508 | 4,114 | - | - | 9,048 | 57,854 | 9,714 | 62,339 | |||||||||||||||||||||
| Other assets (j) | - | - | 26,384 | 32,341 | - | - | - | - | 26,384 | 32,341 | |||||||||||||||||||||
| Inter Marketplace Intermediacao de Negocios e Servicos Ltda. | - | - | 25,510 | 30,479 | - | - | - | - | 25,510 | 30,479 | |||||||||||||||||||||
| Inter Distribuidora de Títulos e Valores Mobiliários Ltda. | - | - | 146 | 1,602 | - | - | - | - | 146 | 1,602 | |||||||||||||||||||||
| Inter Digital Corretora e Consultoria de Seguros Ltda | - | - | 715 | 258 | - | - | - | - | 715 | 258 | |||||||||||||||||||||
| Other (k) | - | - | 13 | 2 | - | - | - | - | 13 | 2 | |||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||
| Cash deposits(i) | (249 | ) | (318 | ) | (61,134 | ) | (86,679 | ) | (1,321 | ) | (800 | ) | (192,821 | ) | (9,318 | ) | (255,525 | ) | (97,115 | ) | |||||||||||
| Inter Distribuidora de Títulos e Valores Mobiliários Ltda. | - | - | (31,251 | ) | (20,427 | ) | - | - | - | - | (31,251 | ) | (20,427 | ) | |||||||||||||||||
| Inter Marketplace Intermediacao de Negocios e Servicos Ltda. | - | - | (20,685 | ) | (53,535 | ) | - | - | - | - | (20,685 | ) | (53,535 | ) | |||||||||||||||||
| Acerto Cobrança e Informações Cadastrais Ltda. | - | - | (8 | ) | (1,966 | ) | - | - | - | - | (8 | ) | (1,966 | ) | |||||||||||||||||
| Inter Digital Corretora e Consultoria de Seguros Ltda | - | - | (7,900 | ) | (9,985 | ) | - | - | - | - | (7,900 | ) | (9,985 | ) | |||||||||||||||||
| Urba Desenvolvimento Urbano AS (l) | - | - | - | - | - | - | (104,069 | ) | (18 | ) | (104,069 | ) | (18 | ) | |||||||||||||||||
| MRV Engenharia e Participações S/A (m) | - | - | - | - | - | - | (80,604 | ) | (78 | ) | (80,604 | ) | (78 | ) | |||||||||||||||||
| Key management personnel (c) | - | - | - | - | (1,321 | ) | (800 | ) | - | - | (1,321 | ) | (800 | ) | |||||||||||||||||
| Other (k) | (249 | ) | (318 | ) | (1,290 | ) | (766 | ) | - | - | (8,148 | ) | (9,222 | ) | (9,687 | ) | (10,306 | ) | |||||||||||||
| Time deposits(i) | (158 | ) | (371 | ) | (22,545 | ) | (87,557 | ) | (11,510 | ) | (25,962 | ) | (43,517 | ) | (146,085 | ) | (77,730 | ) | (259,975 | ) | |||||||||||
| Inter Marketplace Intermediacao de Negocios e Servicos Ltda. | - | - | (20,726 | ) | (20,235 | ) | - | - | - | - | (20,726 | ) | (20,235 | ) | |||||||||||||||||
| Inter Distribuidora de Títulos e Valores Mobiliários Ltda. | - | - | (4 | ) | (59,779 | ) | - | - | - | - | (4 | ) | (59,779 | ) | |||||||||||||||||
| Inter Digital Corretora e Consultoria de Seguros Ltda | - | - | (1,307 | ) | (3,429 | ) | - | - | - | - | (1,307 | ) | (3,429 | ) | |||||||||||||||||
| Conedi Participações Ltda | - | - | - | - | - | - | (34,469 | ) | (88,231 | ) | (34,469 | ) | (88,231 | ) | |||||||||||||||||
| Key management personnel (c) | - | - | - | - | (11,510 | ) | (25,962 | ) | - | - | (11,510 | ) | (25,962 | ) | |||||||||||||||||
| Other (k) | (158 | ) | (371 | ) | (508 | ) | (4,114 | ) | - | - | (9,048 | ) | (57,854 | ) | (9,714 | ) | (62,339 | ) | |||||||||||||
| Other liabilities (j) | - | - | (45,434 | ) | (32,341 | ) | - | - | - | - | (45,434 | ) | (32,341 | ) | |||||||||||||||||
| Inter Marketplace Intermediacao de Negocios e Servicos Ltda. | - | - | (36,091 | ) | (30,479 | ) | - | - | - | - | (36,091 | ) | (30,479 | ) | |||||||||||||||||
| Inter Distribuidora de Títulos e Valores Mobiliários Ltda. | - | - | (4,826 | ) | (1,602 | ) | - | - | - | - | (4,826 | ) | (1,602 | ) | |||||||||||||||||
| Inter Digital Corretora e Consultoria de Seguros Ltda | - | - | (4,226 | ) | (258 | ) | - | - | - | - | (4,226 | ) | (258 | ) | |||||||||||||||||
| Other (k) | - | - | (291 | ) | (2 | ) | - | - | - | - | (291 | ) | (2 | ) | |||||||||||||||||
64
| Controlling shareholder (a) | Subsidiaries (b) | Key management personnel (c) | Other related parties (d) | Total | |||||||||||||||||||||||||||
| 03/31/2022 | 03/31/2021 | 03/31/2022 | 03/31/2021 | 03/31/2022 | 03/31/2021 | 03/31/2022 | 03/31/2021 | 03/31/2022 | 03/31/2021 | ||||||||||||||||||||||
| Income from loan operations | - | - | (2,387 | ) | 167 | - | - | - | - | (2,387 | ) | 167 | |||||||||||||||||||
| Inter Distribuidora de Títulos e Valores Mobiliários Ltda. | - | - | (2,387 | ) | 167 | - | - | - | - | (2,387 | ) | 167 | |||||||||||||||||||
| Financial intermediation expenses | (40 | ) | (108 | ) | (937 | ) | (1,079 | ) | (251 | ) | (165 | ) | (1,050 | ) | (431 | ) | (2,278 | ) | (1,783 | ) | |||||||||||
| Inter Distribuidora de Títulos e Valores Mobiliários Ltda. | - | - | (593 | ) | (1,079 | ) | - | - | - | - | (593 | ) | (1,079 | ) | |||||||||||||||||
| Inter Marketplace Intermediação de Negócios e Serviços Ltda. | - | - | (306 | ) | - | - | - | - | - | (306 | ) | - | |||||||||||||||||||
| Conedi Participações Ltda | - | - | - | - | - | - | (482 | ) | - | (482 | ) | - | |||||||||||||||||||
| Key management personnel (c) | - | - | - | - | (251 | ) | (165 | ) | - | - | (251 | ) | (165 | ) | |||||||||||||||||
| Other | (40 | ) | (108 | ) | (38 | ) | - | - | - | (568 | ) | (431 | ) | (646 | ) | (539 | ) | ||||||||||||||
| Other administrative expenses | - | - | - | - | - | - | (120 | ) | (164 | ) | (120 | ) | (164 | ) | |||||||||||||||||
| Conedi Participações Ltda | - | - | - | - | - | - | (120 | ) | (164 | ) | (120 | ) | (164 | ) | |||||||||||||||||
| Other operating revenues (expenses) | - | - | (53,053 | ) | (26,479 | ) | - | - | - | - | (53,053 | ) | (26,479 | ) | |||||||||||||||||
| Inter Marketplace Intermediacao de Negocios e Servicos Ltda. | - | - | (53,053 | ) | (26,479 | ) | - | - | - | - | (53,053 | ) | (26,479 | ) | |||||||||||||||||
| (a) | Inter is directly controlled by Inter Holding financeira S.A., and indirectly by Inter & CO; |
| (b) | Entities directly controlled by Inter; |
| (c) | Any director, board member or tax council member; |
| (d) | Any immediate family members of key management personnel or companies controlled by them; |
| (e) | Income related to the receipt of interest from the loan transaction with Inter Distribuidora de títulos e valores mobiliários Ltda; |
| (f) | They refer to intermediation expenses for fixed-income products; |
| (g) | Investment of Inter with Log Comercial Properties as Debentures, subject to a rate of 116% of Interbank Deposit - DI. There is also the investment in the quotas of fund LOGCP Inter fundo de Investimento imobiliário. |
| (h) | It refers to working capital operations – Floating-rate with Inter Distribuidora de títulos e valores mobiliários Ltda, with a rate lower than the other operations carried out by Inter with its clients. The average rate applied is approximately 0.5% per month together with 110% to 120% of the monthly CDI (due to being short-term operations). |
| (i) | Demand deposits and time deposits are composed of floating-rate CDBs and LCIs, carried out with rates compatible with the average of clients, with an average term of 16 to 20 months, and average rates from 99% to 102% of CDI; |
| (j) | It refers to reimbursements between Inter’s subsidiaries; |
| (k) | The group “Others” refers to diversified balances, which are not relevant for the opening; |
| (l) | Balance referring to receipt from Urba Desenvolvimento Urbano S/A for the credit granting made to Inter. The assignment by Urba was carried out on March 31, 2022, with an average rate of 2.25% p.m.; |
Balance referring to receipt from MRV Engenharia e Participações S/A for the credit granting made to Inter. The assignment by MRV was carried out on March 31, 2022, with an average rate of 2.3% p.m.
65
| (i) | Bank’s Management remuneration |
The Group has a preferred stock option plan for its key management personnel. More information on the plan is detailed in Note 28.
The remuneration of the Group’s Management for the period ended March 31, 2022 is presented in Note 23, under “Fees”, ad referendum to the Annual Shareholders’ Meeting.
| 19 | Income tax and social contribution |
Income tax and social contribution expenses are as follows:
| Parent company | ||||||||||||||||
| 03/31/2022 | 03/31/2021 | |||||||||||||||
| Income tax | Social contribution | Income tax | Social contribution | |||||||||||||
| Income (loss) before income tax and social contribution | (41,393 | ) | (41,393 | ) | (5,846 | ) | (5,846 | ) | ||||||||
| Net additions (exclusions): | - | - | ||||||||||||||
| Interest on own capital | (38,059 | ) | (38,059 | ) | (10,373 | ) | (10,373 | ) | ||||||||
| Equity in net income of subsidiaries | (47,845 | ) | (47,845 | ) | (28,790 | ) | (28,790 | ) | ||||||||
| 87,415 | 87,415 | 56,642 | 56,642 | |||||||||||||
| Provision for expected losses associated with credit risk, net | (399 | ) | (399 | ) | (399 | ) | (399 | ) | ||||||||
| Provisions for contingencies | ||||||||||||||||
| Hedge | 6,283 | 6,283 | 21,939 | 21,939 | ||||||||||||
| Mark-to-market of securities | 7,608 | 7,608 | 9,272 | 9,272 | ||||||||||||
| Other, net | 18,915 | 23,273 | 850 | 850 | ||||||||||||
| Calculation basis (before offsetting the tax loss) | (7,475 | ) | (3,117 | ) | 43,295 | 43,295 | ||||||||||
| Deduction - 30% tax loss | - | - | (12,988 | ) | (12,988 | ) | ||||||||||
| Calculation basis | (7,475 | ) | (3,117 | ) | 30,306 | 30,306 | ||||||||||
| Effective rate | - | (4,546 | ) | (6,061 | ) | |||||||||||
| Additional rate (10%) | - | - | (3,025 | ) | - | |||||||||||
| Tax incentives | - | - | 182 | - | ||||||||||||
| Deferred income tax and social contribution | 32,057 | 26,340 | 19,156 | 15,012 | ||||||||||||
| Income tax and social contribution expense | 32,057 | 26,340 | 11,767 | 8,951 | ||||||||||||
| Provision for income tax | - | (7,389 | ) | |||||||||||||
| Provision for social contribution | - | (6,061 | ) | |||||||||||||
| Deferred tax assets with effect on income (loss) | 58,396 | 34,168 | ||||||||||||||
| Deferred tax assets with effect on shareholders’ equity | 26,182 | - | ||||||||||||||
| Total income tax and social contribution | 84,578 | 20,718 | ||||||||||||||
64
| Consolidated | ||||||||||||||||
| 03/31/2022 | 03/31/2021 | |||||||||||||||
| Income tax | Social contribution | Income tax | Social contribution | |||||||||||||
| Determination of taxable income | ||||||||||||||||
| Income (loss) before income tax and social contribution | 47,717 | 47,717 | (10,392 | ) | (10,392 | ) | ||||||||||
| Net additions (exclusions): | - | - | ||||||||||||||
| Interest on own capital | (38,059 | ) | (38,059 | ) | (10,373 | ) | (10,373 | ) | ||||||||
| Equity in net income of subsidiaries | (55,025 | ) | (55,025 | ) | (28,790 | ) | (28,790 | ) | ||||||||
| Provision for expected losses associated with credit risk, net | 89,709 | 89,709 | 56,642 | 56,642 | ||||||||||||
| Provisions for contingencies | (399 | ) | (399 | ) | (399 | ) | (399 | ) | ||||||||
| Hedge | 7,608 | 7,608 | 21,939 | 21,939 | ||||||||||||
| Mark-to-market of securities | 7,616 | 7,616 | 9,272 | 9,272 | ||||||||||||
| Cost with issuance of shares | - | - | - | - | ||||||||||||
| Other, net | 21,237 | 25,596 | 850 | 850 | ||||||||||||
| Calculation basis | 80,404 | 84,763 | 38,749 | 38,749 | ||||||||||||
| Deduction - 30% tax loss | - | - | (12,988 | ) | (11,234 | ) | ||||||||||
| Taxable income and calculation basis | 80,404 | 84,763 | 25,760 | 27,514 | ||||||||||||
| Determination of deemed profit | ||||||||||||||||
| Revenue from services | 16,248 | 16,248 | 59,496 | 59,532 | ||||||||||||
| Deemed profit (32%) | 5,199 | 5,199 | 19,039 | 19,050 | ||||||||||||
| Other revenues | 156 | 156 | 901 | 901 | ||||||||||||
| Calculation basis | 5,355 | 5,355 | 19,940 | 19,951 | ||||||||||||
| Effective rate | (14,022 | ) | (10,102 | ) | (7,586 | ) | (7,885 | ) | ||||||||
| Additional rate (10%) | (9,089 | ) | - | (5,031 | ) | - | ||||||||||
| Tax incentives / Legal deductions | - | - | 186 | - | ||||||||||||
| Deferred income tax and social contribution | 32,996 | 26,678 | 20,293 | 15,639 | ||||||||||||
| Income tax and social contribution expense | 9,885 | 16,576 | 7,862 | 7,754 | ||||||||||||
| Provision for income tax | (23,112 | ) | (12,431 | ) | ||||||||||||
| Provision for social contribution | (10,102 | ) | (7,885 | ) | ||||||||||||
| Deferred tax assets with effect on income (loss) | 59,674 | 35,932 | ||||||||||||||
| Deferred tax assets with effect on shareholders’ equity | 26,182 | |||||||||||||||
| Total income tax and social contribution on income | 52,643 | 15,616 | ||||||||||||||
| 20 | Provisions, contingent assets and liabilities and legal obligations - Tax and social security |
| a. | Classified as probable losses |
Inter is party to labor, civil and tax lawsuits, arising from normal course of its activities. Provisions for contingencies are estimated considering the opinion of the legal advisors, the nature of the lawsuits, similarity with previous cases, complexity and the pronouncements of Tribunals, whenever the loss is considered probable.
The Management understands that the provision formed is sufficient to cover losses resulting from the respective lawsuits. See changes in balances in item “b.1”.
The liabilities related to the legal obligation under litigation are maintained until the final rendering of judgment of the lawsuit in favor of the company, represented by favorable verdicts, which are no longer appealable, or their prescription.
65
| a.1 | Changes in provisions and classification per type |
| Parent company and Consolidated | ||||||||||||||||
| Nature | Labor | Civil | Tax | Total | ||||||||||||
| Balance at December 31, 2021 | 3,312 | 18,370 | - | 21,682 | ||||||||||||
| Formations/updates | 135 | 3,957 | - | 4,092 | ||||||||||||
| Payments | (64 | ) | (3,686 | ) | - | (3,750 | ) | |||||||||
| Balance at March 31, 2022 | 3,383 | 18,641 | - | 22,024 | ||||||||||||
| Balance at December 31, 2020 | 3,173 | 16,423 | 1,017 | 20,613 | ||||||||||||
| Formations/updates | 1,601 | 17,401 | - | 19,002 | ||||||||||||
| Payments | (1,462 | ) | (15,454 | ) | (1,017 | ) | (17,933 | ) | ||||||||
| Balance at December 31, 2021 | 3,312 | 18,370 | - | 21,682 | ||||||||||||
| b. | Classified as possible losses |
| b.1 | Tax contingent liabilities |
| (i) | Income tax and social contribution on net income – IRPJ and CSLL |
On August 30, 2013, a tax assessment notice was issued to establish IRPJ and CSLL tax credits related to the calendar years from 2008 to 2009, plus an ex officio fine (qualified) of 150% and default interest, as well as to apply an isolated fine of 50% on estimated values of IRPJ and CSLL.
The tax assessment notices aims to disallow expenses incurred with the provision of services. Considering the factual situation under discussion and Inter’s defense arguments, the legal advisors assess the expected outcome as possible, but with a lower likelihood of loss. The value at risk on 03/31/2022 is R$ 28,205.
| (ii) | Contribution for Social Security Funding - COFINS |
Inter is legally discussing COFINS debts for the period from 1999 to 2008, due to the Federal Government’s understanding that financial revenues should form the basis for calculating said contribution. However, Inter has a favorable decision from the Federal Supreme Court, dated December 19, 2005, guaranteeing the right to collect COFINS based on the revenue from services rendered. During the period from 1999 to 2006, Inter made a judicial deposit and/or made the payment of the obligation. Upon a favorable decision of the Federal Supreme Court and express agreement of the Brazilian Federal Revenue Service, it withdrew the aforementioned judicial deposit. Furthermore, the authorization of credits on tax collection was approved without questioning by the Brazilian Federal Revenue Service on May 11, 2006. The value at risk on 03/31/2022 is R$ 42,676.
66
| 21 | Shareholders’ equity |
| a. | Capital |
On March 31, 2022, the fully subscribed and paid-up capital amounts to R$ 8,655,706, it is comprised of 2,578,603,643 nominative shares: 1,293,373,691 are common and 1,285,229,952 are preferred, all with no par value.
| b. | Legal reserve |
It is recorded at the rate of 5% of the net income calculated, up to the limit of 20% of the capital.
| c. | Profit reserve |
In previous years, after the recording of the Legal Reserve, Inter Management chose to allocate the remaining balance of profits to the formation of the Profit Reserve.
| d. | Dividends and interest on own capital |
Inter adopts a capital remuneration policy by distributing interest on own capital up to the amount calculated complying with the applicable legislation, which are added, net of Withholding Income, in the calculation of mandatory dividends for the fiscal year provided for in the by-laws and art. 202 of Law 6404/1976.
The payment of Interest on Own Capital for the period was made using reserves, as approved by Management.
| e. | Treasury shares |
As of March 31, 2022, the balance of treasury shares amounted to R$ 42,708 (December 31, 2021: R$ 42,555), comprising 2,347,560 common shares and 1,114,020 preferred shares, totaling 3,461,580 shares.
| f. | Other comprehensive income |
The balance of Inter’s other comprehensive income is R$ (254,867). As of December 31, 2021, it totaled R$ (212,195). The amount corresponds to the change to market value of securities available for sale and the adjustment of exchange rate change on investment abroad.
| g. | Earnings per share |
| Basic income (loss) | Diluted earnings (losses) | |||||||||||||||
| 03/31/2022 | 12/31/2021 | 03/31/2022 | 12/31/2021 | |||||||||||||
| Outstanding shares | 2,577,490 | 2,577,490 | 2,577,490 | 2,577,490 | ||||||||||||
| Effect of the average of outstanding shares’ period | (12,522 | ) | (16,662 | ) | (12,522 | ) | (16,662 | ) | ||||||||
| Effects of treasury shares | 3,462 | 3,462 | 3,462 | 3,462 | ||||||||||||
| Effect of stock plans to be exercised | - | - | 2,413 | 11,975 | ||||||||||||
| Weighted average of outstanding shares | 2,568,430 | 2,564,290 | 2,570,843 | 2,576,265 | ||||||||||||
67
| Parent company | ||||||||
| 03/31/2022 | 03/31/2021 | |||||||
| Net income (loss) attributable to shareholders (In thousands of Reais) | 17,003 | 14,872 | ||||||
| Average number of shares | 2,568,429,243 | 761,584,825 | ||||||
| Basic earnings per share (R$) | 0.00662 | 0.00579 | ||||||
| Diluted earnings per share (R$) | 0.00661 | 0.00578 | ||||||
| h. | Interest of non-controlling shareholders |
Inter has interests in companies in the insurance brokerage, asset manager, collection, service provision, securities distributor and investment fund segments, substantially retaining its economic risks and rewards. As a result, in the consolidation of the financial information as of March 31, 2022, there is the amount of R$ 84,780 (December 31, 2021: R$ 74,165) referring to non-controlling interest in Inter.
| 22 | Revenue from services rendered |
| Parent company | Consolidated | |||||||||||||||
| 03/31/2022 | 03/31/2021 | 03/31/2022 | 03/31/2021 | |||||||||||||
| Exchange income (a) | 127,049 | 60,977 | 127,049 | 60,977 | ||||||||||||
| Income from bank fees (b) | 10,580 | 9,897 | 10,580 | 9,897 | ||||||||||||
| Management and structuring fees | 3,423 | 527 | 3,423 | 527 | ||||||||||||
| Other services | 3,761 | 2,581 | 10,315 | 5,225 | ||||||||||||
| Business intermediation in Marketplace (c) | - | - | 92,884 | 38,682 | ||||||||||||
| Insurance brokerage | - | - | 18,546 | 13,006 | ||||||||||||
| Income from commissions and placing of securities | - | - | 11,032 | 5,898 | ||||||||||||
| Financial intermediation at USEND | - | - | 4,948 | - | ||||||||||||
| Fund management | - | - | 4,786 | 3,665 | ||||||||||||
| Income from brokerage activities in exchange operations | - | - | 4,454 | 1,505 | ||||||||||||
| Total | 144,813 | 73,982 | 288,017 | 139,382 | ||||||||||||
| (a) | Revenue is linked to the volume of transactions carried out with cards issued by Inter. | |
| (b) | Mainly refer to fees and service charges for clearing services and interbank fees. | |
| (c) | Mainly composed of the take rate (percentage gain on each transaction) recorded in sales through our Marketplace. |
| 23 | Personnel expenses |
| Parent company | Consolidated | |||||||||||||||
| 03/31/2022 | 03/31/2021 | 03/31/2022 | 03/31/2021 | |||||||||||||
| Salaries | (67,741 | ) | (35,333 | ) | (76,145 | ) | (38,638 | ) | ||||||||
| Social and social security charges | (24,168 | ) | (13,462 | ) | (26,739 | ) | (14,611 | ) | ||||||||
| Benefits | (15,582 | ) | (9,567 | ) | (17,458 | ) | (10,356 | ) | ||||||||
| Expenses with vacation and 13th salary | (12,183 | ) | (7,021 | ) | (13,627 | ) | (7,635 | ) | ||||||||
| Fees | (4,623 | ) | (5,271 | ) | (5,710 | ) | (6,213 | ) | ||||||||
| Profit sharing | (3,537 | ) | (3,400 | ) | (4,601 | ) | (3,490 | ) | ||||||||
| Other | (803 | ) | (899 | ) | (841 | ) | (919 | ) | ||||||||
| Total | (128,637 | ) | (74,953 | ) | (145,121 | ) | (81,861 | ) | ||||||||
| 68 |
| 24 | Other administrative expenses |
| Parent company | Consolidated | |||||||||||||||
| 03/31/2022 | 03/31/2021 | 03/31/2022 | 03/31/2021 | |||||||||||||
| Data processing | (121,664 | ) | (75,671 | ) | (126,905 | ) | (77,714 | ) | ||||||||
| Advertising and publicity | (41,450 | ) | (25,931 | ) | (42,497 | ) | (27,356 | ) | ||||||||
| Amortization / Depreciation | (34,869 | ) | (17,340 | ) | (36,848 | ) | (17,685 | ) | ||||||||
| Communication | (31,370 | ) | (21,709 | ) | (32,036 | ) | (21,748 | ) | ||||||||
| Other administrative expenses (a) | (20,350 | ) | (17,231 | ) | (27,139 | ) | (19,423 | ) | ||||||||
| Specialized technical services | (19,142 | ) | (6,671 | ) | (25,227 | ) | (7,475 | ) | ||||||||
| Bank expenses | (13,760 | ) | (18,179 | ) | (17,066 | ) | (26,386 | ) | ||||||||
| Rent | (12,188 | ) | (5,336 | ) | (12,496 | ) | (5,470 | ) | ||||||||
| Total | (294,793 | ) | (188,068 | ) | (320,214 | ) | (203,257 | ) | ||||||||
| (a) | It substantially refers to the provision of services by third parties, rents, notary and legal expenses, maintenance, and conservation of assets. |
| 25 | Other operating revenues |
| Parent company | Consolidated | |||||||||||||||
| 03/31/2022 | 03/31/2021 | 03/31/2022 | 03/31/2021 | |||||||||||||
| Performance revenues | 26,772 | 20,689 | 40,734 | 26,360 | ||||||||||||
| Revenue from exchange rate changes | 12,164 | 5,210 | 17,030 | 5,210 | ||||||||||||
| Discounts obtained | 3,611 | - | 3,611 | - | ||||||||||||
| Income from compulsory deposit | 3,548 | - | 3,548 | - | ||||||||||||
| Business intermediation commission | 1,861 | - | 1,860 | - | ||||||||||||
| Other operating revenues | 2,992 | 6,324 | 7,550 | 9,079 | ||||||||||||
| Total | 50,948 | 32,223 | 74,333 | 40,649 | ||||||||||||
| 26 | Other operating expenses |
| Parent company | Consolidated | |||||||||||||||
| 03/31/2022 | 03/31/2021 | 03/31/2022 | 03/31/2021 | |||||||||||||
| Cashback expenses | (63,847 | ) | (29,436 | ) | (82,044 | ) | (38,486 | ) | ||||||||
| Foreign exchange rate expenses | (29,440 | ) | (8,208 | ) | (29,440 | ) | (8,210 | ) | ||||||||
| Card withdrawal fee expense | (23,150 | ) | (16,242 | ) | (23,150 | ) | (16,242 | ) | ||||||||
| Reimbursement/return of amounts | (25,275 | ) | (4,702 | ) | (25,275 | ) | (4,702 | ) | ||||||||
| Portability expenses | (4,072 | ) | (3,497 | ) | (4,072 | ) | (3,497 | ) | ||||||||
| Other | (5,584 | ) | (5,494 | ) | (10,337 | ) | (5,862 | ) | ||||||||
| Total | (151,368 | ) | (67,579 | ) | (174,318 | ) | (76,999 | ) | ||||||||
| 27 | Other revenues and expenses |
| Parent company | Consolidated | |||||||||||||||
| 03/31/2022 | 03/31/2021 | 03/31/2022 | 03/31/2021 | |||||||||||||
| Other capital gains (a) | 38,487 | 6,891 | 36,930 | 6,510 | ||||||||||||
| Gains from disposal of assets | 5,297 | 1,408 | 5,297 | 1,408 | ||||||||||||
| Other non-operating income. | (2,287 | ) | (3,820 | ) | (2,513 | ) | (3,820 | ) | ||||||||
| Total | 41,497 | 4,479 | 39,714 | 4,098 | ||||||||||||
| (a) | Other capital gains comprise R$ 29,317 related 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 SA (“Wiz”), for contingent consideration to be paid based on Inter Seguros’ EBITDA in 2022; R$ 8,358 refers to the gain from the revaluation of the investment with the Interbank Payments Chamber (CIP), resulting from the demutualization and R$ 812 and R$ 4,121 from other gains in the Parent Company and in the Consolidated, respectively. |
| 69 |
| 28 | Share-based payments |
The Stock Option Plan, established under the terms of Article 168, § 3, of Law 6404/1976, is an initiative of the Board of Directors of Inter, through which Inter’s managers, executives and employees were granted options for the acquisition of Inter Shares, with a view to encourage performance and favoring the retention of Inter’s managers, executives and employees, insofar as their participation in Inter’s capital will allow them to benefit from the results to which they have contributed and which will be reflected in the appreciation of the price of their shares, thus forming, with the shareholders, a common interest.
In 2016, the third Stock Option Plan (“Plan 3”) was launched, with vesting periods from 2017 to 2021. The options that become exercisable may be exercised by the participant within three years of the last vesting period. Employees who do not exercise the option within the deadline or who are dismissed by Inter lose the right to exercise it.
On February 5, 2018, Inter’s Board of Directors approved the purchase option called “Plan 4”, as well as the grant of Program 1 of Plan 4. Program 2 of “Plan 4” was approved on July 9, 2020, with a vesting period starting from January 2021 to January 2025. Program 3 of “Plan 4” was approved on January 31, 2022, with a vesting period starting from December 2022 to December 2026. The options of Program 2 and Program 3 may be exercised within the period of 2 (two) years, counted from the respective vesting periods. If they are not exercised within the specified period, the right to the shares will be automatically extinguished, without any right to compensation.
The strike price of the options granted under Plan 3 and Program 1 of Plan 4 is equivalent to the book value per share at the end of the year prior to the grant. For the Program 2 of Plan 4, the strike price is equivalent to the division by three of the result of the average quotation of the Units issued by the Bank (BIDI11 – formed by the set of 1 common share and 2 preferred shares), as determined at the closing of the last 90 sessions of the special trading segment of B3 S.A. – Brasil, Bolsa e Balcão. For Program 3 of Plan 4, the exercise price is equivalent to the division by 3 (three) of the result of the average quotation of the Units (BIDI11 – formed by the set of 1 common share and 2 preferred shares), as determined at the closing of the trading sessions of the special trading segment of B3 S.A. – Brasil, Bolsa, Balcão carried out in the period from 01/03/2022 to 01/28/2022 (including).
The rules for exercising and terminating options are part of the plan’s regulation and filed at Inter’s headquarters.
The main characteristics of the Plans are described below (per share):
| Plan | Approval | Options (shares) |
Vesting | Average strike price |
Participants | Final year-end deadline | ||||||
| 3 (Program 1) | 09/30/2016 | 10,584,000 | Up to 05 years | R$0.26 | Key directors, managers and employees | 12/31/2023 | ||||||
| 4 (Program 1) | 02/15/2018 | 32,714,784 | Up to 05 years | R$0.25 | Key directors, managers and employees | 02/15/2025 | ||||||
| 4 (Programa2) | 07/09/2020 | 19,093,500 | Up to 05 years | R$3.60 | Key directors, managers and employees | 12/31/2027 | ||||||
| 4 (Program 3) | 01/31/2022 | 19,500,000 | Up years to 05 | R$8.08 | Key directors, managers and employees | 12/31/2028 |
| 70 |
Changes in the options of each plan for the period ended March 31, 2022 and supplementary information are shown below:
| Changes - 03/31/2022 (Shares) | ||||||||||||||||||||||||||||||
| Plan | Number of employees | Opening balance | Granted | Prescribed/ Cancelled | Exercised | Closing balance | ||||||||||||||||||||||||
| 3 | 2 | 4,060,800 | - | - | 1,296,000 | 2,764,800 | ||||||||||||||||||||||||
| 4 (1) | 30 | 14,748,390 | - | - | 5,481,994 | 9,266,396 | ||||||||||||||||||||||||
| 4 (2) | 74 | 17,792,100 | - | 81,900 | 468,450 | 17,241,750 | ||||||||||||||||||||||||
| 4 (3) | 88 | - | 17,061,000 | - | - | 17,061,000 | ||||||||||||||||||||||||
| Total | 36,601,290 | 17,061,000 | 81,900 | 7,246,444 | 46,333,964 | |||||||||||||||||||||||||
| Weighted average price of shares | R$ | 2.39 | R$ | 8.08 | R$ | 3.60 | R$ | 0.45 | R$ | 4.38 | ||||||||||||||||||||
| Changes - 12/31/2021 (Shares) | ||||||||||||||||||||||||||||||
| Plan | Number of employees | Opening balance | Granted | Prescribed/ Cancelled | Exercised | Closing balance | ||||||||||||||||||||||||
| 3 | 3 | 7,128,000 | 648,000 | - | 3,715,200 | 4,060,800 | ||||||||||||||||||||||||
| 4 (1) | 31 | 19,652,310 | - | 2,131,200 | 2,772,720 | 14,748,390 | ||||||||||||||||||||||||
| 4 (2) | 59 | 14,978,700 | 4,114,800 | 135,000 | 1,166,400 | 17,792,100 | ||||||||||||||||||||||||
| Total | 41,759,010 | 4,762,800 | 2,266,200 | 7,654,320 | 36,601,290 | |||||||||||||||||||||||||
| Weighted average price of shares | R$ | 1.46 | R$ | 4.06 | R$ | 0.50 | R$ | 0.91 | R$ | 2.39 | ||||||||||||||||||||
| Other information - 03/31/2022 | ||||||||||||||||||||||||||
| Plan | Number of shares exercised | Number of exercisable shares | Premium cost during the year | Unrecognized premium cost | Remaining period of remuneration cost (in years) | Remaining contractual life (in years) | ||||||||||||||||||||
| 3 | 1,296,000 | 2,764,800 | - | - | - | 1.8 | ||||||||||||||||||||
| 4 (1) | 5,481,994 | 9,266,396 | - | - | - | 2.9 | ||||||||||||||||||||
| 4 (2) | 468,450 | 17,241,750 | 1,599 | 15,325 | 4.0 | 5.8 | ||||||||||||||||||||
| 4 (3) | - | 17,061,000 | 1,660 | 77,708 | 5.0 | 7 | ||||||||||||||||||||
| Other information - 12/31/2021 | ||||||||||||||||||||||||||
| Plan | Number of shares exercised | Number of exercisable shares | Premium cost during the year | Unrecognized premium cost | Remaining period of remuneration cost (in years) | Remaining contractual life (in years) | ||||||||||||||||||||
| 3 | 3,715,200 | 4,060,800 | - | - | - | 2.0 | ||||||||||||||||||||
| 4 (1) | 2,772,720 | 14,748,390 | - | - | - | 3.2 | ||||||||||||||||||||
| 4 (2) | 1,166,400 | 17,792,100 | 3,089 | 16,924 | 4.0 | 6.1 | ||||||||||||||||||||
(a) The premium cost referring to the first tranche of Plan is the responsibility of the participants, and no cost is recognized by Inter.
The estimated impact refers to the value of the premiums for the options granted to employees in the quarterly financial information, based on their fair value. The fair values of plans 3, 4 (Program 1), and 4 (Program 2) were estimated based on the Black & Scholes option valuation model.
| 71 |
| Plan program | ||||||||||||
| 3(2016) | 4(2018) | 4(2020) | ||||||||||
| Strike price | 0.77 | 0.9 | 10.75 | |||||||||
| Risk-free rate | 11.68 | % | 9.97 | % | 9.98 | % | ||||||
| Duration of the year (years) | 7 | 7 | 7 | |||||||||
| Expected annualized volatility | 60.33 | % | 64.28 | % | 64.28 | % | ||||||
| Fair value of the stock option at grant/share date | 0.19 | 0.05 | 0.05 | |||||||||
For Program 3 of Plan 4, the fair value was estimated based on the Binomial model:
| 4(2022) | ||||
| Strike price | 8.08 | |||
| Risk-free rate | 11.45 | % | ||
| Duration of the year (years) | 7 | |||
| Expected annualized volatility | 38.81 | % | ||
| Weighted fair value of the stock option at grant/share date: | 4.08 |
| 29 | Risk Management |
Risk management at Inter is considered the set of activities and processes established to identify, assess, measure, control, mitigate and monitor risks considered material (or priority risks) by the Board of Directors.
In this context, risk management is carried out through a prospective approach, always seeking an adequate understanding of the sources and primary risk factors, the characteristics, interdependencies and correlations existing between the risks, as well as the potential impacts on the business.
Risk management at Inter seeks to maintain a risk management framework appropriate to the complexity (and strategy) of Inter’s activities, products and services, fostering the continuous development of processes, systems and disseminating a culture to all Bank organizational levels.
Details on Inter’s risk management framework are available on the website http://ri.bancointer.com.br, under the Risk Management section.
| a. | Management of liquidity risk |
The liquidity risk is the possibility that Inter may not be able to meet its expected and unexpected (current and future) obligations, including those arising from binding guarantees, without affecting its operations and incurring material losses; and possibility that Inter may not be able to trade a position at market price due to its large size in relation to the usually traded volume, or due to market discontinuity.
The liquidity risk management functions comprise a set of activities and processes that consider the daily follow-up (and monitoring) of cash positions, treasury, concentration, funding portfolio, loan portfolio, among other relevant points associated with liquidity control.
Furthermore, to increase the governance level of strategic decisions, and reinforce the monitoring of risks, Inter established an Assets and Liabilities Committee that, among several attributions, acts effectively in the management of liquidity and market risks.
| 72 |
| b. | Market risk management |
Market risk is defined as the possibility of losses arising from the change in the market value of positions held by Inter and its subsidiaries, including the risks of operations subject to exchange-rate change, interest rates, prices of shares and commodities.
In Inter, the market risk management has, among others, the aim of support business areas, establish the processes and implement the tools required for assessing and related risks, enabling the measurement and follow-up of the risk levels as defined by Top Management.
The Market Risk Policy is followed and monitored by the Assets and Liabilities Committee, where the control reports and management positions are analyzed. Market risk controls allow the analytical assessment of information, and are in a constant improvement process, seeking to provide a view that is more aligned with the current needs of Inter and its subsidiaries. Inter and its subsidiaries have been improving the internal aspects of risk management and mitigation.
| (i) | Measuring |
Inter, in accordance with CMN Resolution 4557/2017 and with Bacen Circular 3354/2007, aiming at providing greater efficiency in the management of its operations exposed to market risk, segregates its operations, including derivative financial instruments, as follows:
| · | Trading Book: formed by all operations with own positions, carried out with the intention of trading or intended to hedge the trading portfolio, for which there is an intention to be traded before their contractual term, subject to normal market conditions, and which do not contain a non-negotiability clause. |
| · | Banking Book: formed by operations not classified in the Trading Portfolio, whose main characteristic is the intention to hold such operations to maturity. |
In line with the best market practices, Inter 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 ways of evaluating positions subject to market risk is carried out through a Value at Risk (VaR) model. The methodology used to calculate VaR considers a parametric model with a 99% confidence level (CL) and a time horizon (TH) of one day, scaled to 21 days.
We present below the VaR of the set of operations recorded in the trading and banking portfolios, as well as the individual VaR by risk factor, both calculated with a 99% confidence level and a time horizon of 21 days.
| 73 |
| In thousands | 03/31/2022 | 12/31/2021 | ||||||
| Risk factor | VaR 21 (du) | VaR 21 (du) | ||||||
| IPCA coupon | 353,155 | 365,669 | ||||||
| IGP-M coupon | 8,609 | 4,978 | ||||||
| Interest rate coupon (reference rate) | 47,035 | 36,555 | ||||||
| Interest fixed rates | 73,681 | 41,983 | ||||||
| Foreign currency coupon | 3,960 | - | ||||||
| Foreign exchange rates | 1,831 | 80 | ||||||
| Share price | 1,513 | 2,639 | ||||||
| Other | 27,036 | 19,278 | ||||||
| Subtotal | 516,820 | 471,182 | ||||||
| Diversification effect | 67,890 | 91,811 | ||||||
| VaR | 448,930 | 379,371 | ||||||
| (ii) | Fair value hierarchy |
The fair value of assets and liabilities are measured according to the information levels available:
| · | Level 1: They are used prices quoted in active markets for similar financial instruments. A financial instrument is considered to be quoted in an active market if quoted prices are readily and regularly available, and if said prices represent actual and regularly occurring market transactions on a basis in which there is no relationship between the parties. |
| · | Level 2: Other available information is used, except for that in Level 1, where prices are quoted in non-active markets or similar assets and liabilities, or other information that is available is used or that may be supported by information observed in the market to support the evaluation of assets and liabilities. |
| · | Level 3: Information that is not available in the market is used in the definition of fair value. If the market for a financial instrument is not active, Inter establishes the fair value using a valuation technique that considers internal data, but that is consistent with accepted economic methodologies for the pricing of financial instruments. |
| 74 |
| Parent company | ||||||||||||||||
| 03/31/2022 | Level 1 | Level 2 | Level 3 | |||||||||||||
| Assets | 13,379,954 | 1,830,775 | 11,235,599 | - | ||||||||||||
| Interbank funds applied | 1,830,775 | 1,830,775 | - | - | ||||||||||||
| Securities for trading at market value | 199,625 | 7,597 | 192,028 | - | ||||||||||||
| Securities available for sale at market value | 11,345,588 | 305,983 | 11,039,605 | - | ||||||||||||
| Derivative financial instruments | 3,966 | - | 3,966 | - | ||||||||||||
| Liabilities | (76,042 | ) | - | (76,042 | ) | - | ||||||||||
| Derivative financial instruments | (76,042 | ) | - | (76,042 | ) | - | ||||||||||
| Parent company | ||||||||||||||||
| 12/31/2021 | Level 1 | Level 2 | Level 3 | |||||||||||||
| Assets | 13,940,828 | 1,775,549 | 12,165,279 | - | ||||||||||||
| Interbank funds applied | 1,775,549 | 1,775,549 | - | - | ||||||||||||
| Securities for trading at market value | 198,230 | - | 198,230 | - | ||||||||||||
| Securities available for sale at market value | 11,962,752 | - | 11,962,752 | - | ||||||||||||
| Derivative financial instruments | 4,297 | - | 4,297 | - | ||||||||||||
| Liabilities | (66,472 | ) | - | (66,472 | ) | - | ||||||||||
| Derivative financial instruments | (66,472 | ) | - | (66,472 | ) | - | ||||||||||
| Consolidated | ||||||||||||||||
| 03/31/2022 | Level 1 | Level 2 | Level 3 | |||||||||||||
| Assets | 13,254,685 | 2,546,838 | 10,707,847 | - | ||||||||||||
| Interbank funds applied | 1,880,794 | 1,880,794 | - | - | ||||||||||||
| Securities for trading at market value | 944,660 | 383,609 | 584,599 | - | ||||||||||||
| Securities available for sale at market value | 10,429,231 | 305,983 | 10,123,248 | - | ||||||||||||
| Derivative financial instruments | 3,966 | - | 3,966 | - | ||||||||||||
| Liabilities | (76,042 | ) | - | (76,042 | ) | - | ||||||||||
| Derivative financial instruments | (76,042 | ) | - | (76,042 | ) | - | ||||||||||
| Consolidated | ||||||||||||||||
| 12/31/2021 | Level 1 | Level 2 | Level 3 | |||||||||||||
| Assets | 13,759,161 | 1,765,242 | 11,993,919 | - | ||||||||||||
| Interbank funds applied | 1,765,242 | 1,765,242 | - | - | ||||||||||||
| Securities for trading at market value | 769,033 | - | 769,033 | - | ||||||||||||
| Securities available for sale at market value | 11,137,938 | - | 11,137,938 | - | ||||||||||||
| Derivative financial instruments | 86,948 | - | 86,948 | - | ||||||||||||
| Liabilities | (66,549 | ) | - | (66,549 | ) | - | ||||||||||
| Derivative financial instruments | (66,549 | ) | - | (66,549 | ) | - | ||||||||||
| (iii) | Sensitivity analysis |
To determine the sensitivity of capital of Inter’s positions to changes in market variables, a sensitivity analysis was carried out for market risk factors considered relevant. Greater losses per risk factor in each of the scenarios were presented with impact on income, providing a view of Inter’s exposure per risk factor in specific scenarios.
Simulations were performed with three possible scenarios, in accordance with ICVM 475/2008, aiming to estimate the impact on the fair value of the financial assets presented below:
| · | Scenario I: Probable situation, which reflects Bank's Top Management in relation to the scenario with greater probability of occurring, considering the macroeconomic factors and market information (B3, Anbima, etc.) observed in the period. Assumptions used: deterioration and evolution in market variables through parallel shocks, shock of 1 basis point in price index coupon rates, interest rate coupons, fixed interest rates, considering the worst losses resulting from a risk factor and, consequently, not considering the rationality between the macroeconomic variables. |
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| · | Scenario II: Possible situation of deterioration and evolution in market variables through a 25% shock in the curves of price index coupon rates, interest rate coupons, fixed interest based on the market conditions observed in each period, being considering the worst losses resulting from each risk factor and, consequently, not considering the rationality between the macroeconomic variables. |
| · | Scenario III: Possible situation of deterioration and evolution in market variables through a 50% shock in the curves of price index coupon rates, interest rate coupons, fixed interest based on the market conditions observed in each period, being considering the worst losses resulting from each risk factor and, consequently, not considering the rationality between the macroeconomic variables. |
The table below summarizes the results for the Trading Portfolio and for the Banking Portfolio in an aggregated manner.
| Exposures | R$ thousand | March, 2022 | ||||||||||||||||||
| Banking and Trading Portfolios | Scenarios | |||||||||||||||||||
| Risk factor | Risk in the changes in | Rate
change in Scenario I | Scenario I | Rate
change in Scenario II | Scenario
II | Rate
change in Scenario III | Scenario III | |||||||||||||
| IPCA coupon | Price index coupon | Increase | (3,068 | ) | Increase | (362,269 | ) | Increase | (679,695 | ) | ||||||||||
| IGP-M coupon | Price index coupon | Increase | (40 | ) | Increase | (5,222 | ) | Increase | (9,998 | ) | ||||||||||
| FIXED RATE | Fixed rate | Decrease | (374 | ) | Decrease | (109,096 | ) | Decrease | (225,861 | ) | ||||||||||
| Reference rate coupon | Interest rate coupon | Increase | (828 | ) | Increase | (159,057 | ) | Increase | (283,745 | ) | ||||||||||
| Exposures | R$ thousand | 2021 | ||||||||||||||||||
| Banking and Trading Portfolios | Scenarios | |||||||||||||||||||
| Risk factor | Risk in the changes in | Rate
change in Scenario I | Scenario I | Rate
change in Scenario II | Scenario
II | Rate
change in Scenario III | Scenario III | |||||||||||||
| IPCA coupon | Price index coupon | Increase | (3,045 | ) | Increase | (350,577 | ) | Increase | (658,147 | ) | ||||||||||
| IGP-M coupon | Price index coupon | Increase | (42 | ) | Increase | (5,281 | ) | Increase | (10,118 | ) | ||||||||||
| FIXED RATE | Fixed rate | Increase | (334 | ) | Increase | (166,292 | ) | Increase | (551,209 | ) | ||||||||||
| Reference rate coupon | Interest rate coupon | Increase | (813 | ) | Increase | (149,209 | ) | Increase | (266,744 | ) | ||||||||||
| c. | Operating risk management |
Operational risks permeate Inter and are present in all activities and processes, as these are susceptible to failures and errors arising from processes, people, systems and external events.
Considering Inter’s current business model, especially regarding the digital strategy, Inter promotes the continuous improvement of processes, systems and controls that seek to mitigate events of operational instability, reduce the risk of cyber-attacks, among others.
Operational risk incidents are monitored and reported through several steering committees, where the respective criticality, as well as action plans to be implemented, are defined.
To allocate capital for operational risk, Inter adopted the Basic Indicator Approach (BIA) methodology, as provided for in Article 1 of Bacen Circular Letter 3640/2013.
| d. | Credit risk management |
The management of credit risks at Inter’s prudential conglomerate aims to maintain the risk profile and profitability of the loan portfolio within the limits defined in the Risk Appetite Statement (“RAS”).
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The credit risk management area has a control structure independent of the business units, being responsible for the process of monitoring risk levels, as well as ensuring compliance with Inter’s policies.
Credit risk management is based on certain pillars:
| · | Credit granting and collection policies and guidelines segmented by products and/or client categories. |
| · | Statistical models for measuring and classifying risks for individuals and a conservative (and restrictive) policy on guarantees and/or risk for operations with companies. |
| · | Definition and approval of concentration limits, mitigating the accumulation of risks by categories and/or segments. |
| · | Monitoring the portfolio’s risk profile through a prospective vision to anticipate possible risks and/or imbalances. |
| · | Evaluation of guarantees, collaterals and other risk mitigating instruments. |
| · | Use of statistical models that include projection of default probabilities, as well as default recovery levels (in case of default). |
Furthermore, it is worth highlighting that credit risk management considers a structured process of risk rating (and provisioning) based on judicious and consistent models, considering the complexity of operations, guarantees involved, among other issues.
Thus, finally, it is worth highlighting that the models adopted in the management of credit risks meet the guidelines and best market practices and show compliance with the complexity (and risks) of Inter’s operations.
| e. | Basel Index |
On February 23, 2017, the Central Bank of Brazil (Bacen) released CMN Resolution 4557/2017, which established the need to implement a capital management framework for financial institutions.
Inter has mechanisms that enable the identification and assessment of the relevant risks incurred, including those not covered by the Minimum Required Reference Equity (PRMR). Policies and strategies, as well as the capital plan, make it possible to maintain capital at levels compatible with the risks incurred by Inter. Stress tests are performed periodically and their impacts are evaluated from a capital perspective. Management reports on capital adequacy are reported to the intervening areas and strategic committees, representing a subsidy for the decision-making process by Inter’s Senior Management.
Basel ration was calculated according to the criteria set by CMN Resolutions 4192/2013 and 4193/2013, which refer to the calculation of Regulatory Capital (PR) and the Minimum Regulatory Capital (PRMR) in relation to Risk-Weighted Assets (RWA).
The methodology for determining the regulatory capital, which continues to be divided into Levels I and II, where Level I is comprised of the Core Capital (less Prudential Adjustments) and Supplementary Capital, and the scope used for consolidation and verification of operational limits considers the Prudential Conglomerate formed by Inter and Inter Distribuidora de Títulos e Valores Mobiliários and investment funds, when applicable.
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| (i) | DLO – Document of requirement margins in relation to RWA |
| 03/31/2022 | 12/31/2021 | |||||||
| Referential Equity (PR) | 7,042,015 | 7,955,238 | ||||||
| Tier I Referential Shareholders’ Equity | 7,042,015 | 7,955,238 | ||||||
| Core capital (CP) | 7,042,015 | 7,955,238 | ||||||
| Risk Weighted Assets - RWA | 19,739,307 | 17,953,263 | ||||||
| RWA for Credit Risk by Standardized Approach - RWACPAD | 17,444,892 | 16,198,394 | ||||||
| RWA for market risk - RWAMPAD | 356,818 | 323,581 | ||||||
| RWA for Operating Risk by Standard Approach - RWAOPAD | 1,937,597 | 1,431,287 | ||||||
| Capital requirement | ||||||||
| Minimum principal capital required for RWA | 888,269 | 807,897 | ||||||
| Tier I Minimum Reference Equity required to RWA | 1,184,358 | 1,077,196 | ||||||
| Minimum Reference Equity required to RWA | 1,579,145 | 1,436,261 | ||||||
| Margin on capital requirements | ||||||||
| Margin on required principal capital | 6,153,746 | 7,147,341 | ||||||
| Margin on the Tier I Required Reference Equity | 5,857,656 | 6,878,042 | ||||||
| Core capital ratio (CP/RWA) | 35.7 | % | 44.3 | % | ||||
| Tier I Capital ratio (Tier I /RWA) | 35.7 | % | 44.3 | % | ||||
| Basel Ratio (PR/RWA) | 35.7 | % | 44.3 | % | ||||
| 30 | Other information |
| (i) | Ombudsman |
Inter’s Ombudsman acts as a relationship channel between clients and users of the products and services offered and in addressing and mediating conflicts. The Ombudsman’s scope is to seek agile and effective solutions, acting with transparency and impartiality, and is also committed to promoting improvements in the services provided. Occurrences received by the Ombudsman are analyzed and addressed in a conclusive and formal manner, within 10 working days, in strict accordance with CMN Resolution 4860/2020.
| (ii) | Social and environmental responsibility |
In addition to what CMN Resolution 4327/2014 establishes, socio-environmental responsibility for Inter is when the organization itself, clients, users, suppliers or service providers voluntarily adopt postures, behaviors and actions that foster the well-being of its internal (employees, shareholders, etc.) and external (community, partners, environment, etc.) audiences. It is a voluntary practice, which involves the benefit of the community and should not be confused exclusively with compulsory actions imposed by the regulator.
| (iii) | Sureties and guarantees |
The balance of sureties and guarantees provided by Inter, on an individual and consolidated basis, amounts to R$ 70,335 (December 31, 2021: R$ 0), with a provision of R$ 358 (December 31, 2021: R$ 0).
| (iv) | Insurance contracted |
Inter is insured for their major assets in amounts considered adequate by management to cover possible losses on claims.
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| (v) | Coronavirus (COVID-19) |
In the quarter ended March 31, 2022, events and conditions generated by the spread of the novel Coronavirus (COVID-19) continue to be monitored.
Due to COVID-19, several decisions were taken to maintain the quality of the services provided, as well as to ensure the safety of Inter’s clients, employees and suppliers. All impacts arising from the pandemic have been closely monitored by Management, together with the future impacts of the pandemic, where they are still uncertain as to the degree of relevance and its duration.
| 31 | Subsequent events |
| (i) | Capital increase |
On April 4, 2022, the Board of Directors approved the increase in Inter’s capital to R$ 8,801,365, divided into 1,295,789,173 common shares and 1,290,060,916 preferred shares. The purpose of this capital increase is to face the exercise of options issued by Inter, granted within the scope of Programs I and II of the Inter’s IV Stock Option Plan (“Stock Plan). The capital increase proposal was accepted by the Central Bank of Brazil on May 9, 2022.
| (ii) | Increase in the CSLL rate |
Executive Order 1115 was published on April 20, 2022, providing for an increase of one percentage point in the Social Contribution on Net Income (CSLL) rate of financial institutions, and insurance and capitalization companies. This collection will begin 90 days after the date of publication of the Executive Order (as of August 1, 2022), in accordance with the 90-day period determined by the Constitution.
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Board of Directors
Rubens Menin Teixeira de Souza - President
José Felipe Diniz – Board Member
Leonardo Guimarães Corrêa - Board member
Maria Fernanda Nazareth Menin Teixeira de Souza – Board Member
Carlos Henrique Carneiro de Medeiros – Board Member
Cristiano Henrique Vieira Gomes – Board Member
Thiago dos Santos Piau - Board Member
Luiz Antônio Nogueira de França - Independent Board Member
André Guilherme Cazzaniga Maciel - Independent Board Member
Presidency
João Vitor Nazareth Menin Teixeira de Souza
Vice-Presidency
Alexandre Riccio de Oliveira
Marco Túlio Guimarães
Executive Board
Ana Luiza Vieira Franco Forattini
André Jacques Luciano Uchoa Costa
Felipe Bottino
Frederico Correa Ferreira de Melo
Guilherme Ximenes de Almeida
Janderson de Miranda Facchin
Helena Lopes Caldeira
Leonardo Guimarães Corrêa
Lucas de Souza Bernardes
Priscila Salles Vianna de Paula
Ray Tarick Pereira Chalub
Sebastião Luiz da Silva
Thiago Garrides Cabral de Lima
Tax Council
Paulino Ferreira Leite – Board Member
Thiago da Costa e Silva Lott – Board Member
Fernando Henrique da Fonseca – Board Member
Accountant in charge
Vanderson Gonçalves Brandão- CRC-1SP 253.620/O-7 “S” MG
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Opinion of the Supervisory Board
The Fiscal Council of Banco Inter S.A., a publicly traded corporation, registered with CNPJ/ME under 00.416.968/0001-01, with its registered office at Av. Barbacena, 1219 - Santo Agostinho, in the city of Belo Horizonte, State of Minas Gerais, ZIP Code: 30.190-131, in compliance with the legal and statutory provisions, in accordance with the provisions of art. 163, item VI, of Law No. 6,404/76, examined the results for the quarter ended March 31, 2022 and the Quarterly Information Form – 01ITR2022, including explanatory notes, management reports and opinion of the independent auditor.
Based on the examinations carried out and considering the results for the quarter ended March 31, 2022 and the Quarterly Information Form – 01ITR2022, including explanatory notes, management reports and, furthermore, the opinion of the independent auditors, KPMG Auditores Independentes, dated May 16, 2022, the Fiscal Council unanimously opines that these documents adequately represent, in all relevant respects, the equity and financial position of Banco Inter S.A. as of March 31, 2022 and are in a position to be assessed and approved by the Board of Directors.
Belo Horizonte, May 16, 2022.
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