you you you Hi everyone, I'm Rafa Vitória, IR officer at Inter, and I would like to welcome all to Inter & Co's Earnings Conference Call. First of all, some instructions. This call is also available in Portuguese. To access it, press the globe icon on the lower right side of your Zoom screen, then select the Portuguese room. Please be advised that all participants will be in listen-only mode and that the conference is being recorded. You may submit online questions at any time today using the Q&A box on the webcast. A replay will be available at the company's IR website. With me today are João Vitor Menin, our Global CEO, Alexandre Rício, our Brazil CEO and Santiago Stel, our CFO. To start with the CEO overview, I would like to invite João. João, please go ahead. Thank you, Rafa. Thank you all for joining us today to discuss our second quarter results for 2026. I want to start with something that is truly meaningful for Inter. Back in May, at our Honors Day, we introduced the Rule of 50 as our long-term plan, proving that growth and profitability are not a trade-off, but a combination we can deliver together. and here we are just one quarter after announcing the plan and the rule of 50 is already a reality total net revenue grew 32 percent roe reached over 16 percent we are already executing the plan the rule 50 does not stand alone it is built on top of our 60 30 30 north star The goal of 60 million clients, 30% efficiency ratio and 30% ROE. That compass continues to guide everything we do. The trend on this chart reflects years of disciplined capital allocation, high growth and consistent execution, supported by a solid balance sheet. But results like this don't happen by accident delivering the rule of 50 is only possible because of our inter by design approach it combines three reinforcing pillars sustainable revenue growth scalable distribution capabilities and unique cost efficiencies and that compounding effect is what you see in our numbers we tripled our revenue growth while simultaneously doubling our active client base meaning we are getting more engaged clients we are doing all of this while improving our efficiency ratio by 32 percentage points and expanding roe by 18 percentage points as well growth and profitability moving in the same direction at the same time that is what inter by design produce and when this flywheel runs at full speed the natural consequence is market share gains across every product and segment that is what i want to show you next more clients bring more transactions more transactions bring more data better data drives better products and smarter credit decisions better products attract even more clients and the cycle keeps compounding that is what the flywheel concept means for Inter. And what makes our flywheel particularly powerful is the breadth of our ecosystem. The more products we offer across more verticals, the more entry points we create for clients, and the faster the cycle spins. Whether you look at PICs, credit cards, investments, or home equity, our market share numbers are climbing across the board faster than many of the most important players in brazil we are not just grown we are grown in every segment at the same time but with discipline that's the strength of our ecosystem and it's only getting stronger this flywheel guides not just how we grow but also where we choose to grow the opportunity in front of us is bigger than ever because we are actively deepening and widening our addressable market our core is security lending that was a deliberate choice from the start mortgages home equity and payroll for instance nearly 82 percent of secured personal loans in brazil are still concentrated in the top five players that is massive under penetrated market and we have a distribution the product experience the data and the cost structure to keep gaining market share but we are not stopping there we are widening into unsecured as well and we are doing it carefully with discipline and the results are already showing up for the first time ever we surpassed two percent market share in credit cards tpv in brazil we have never been more profitable in this product than we are today. In summary, secured loans remains our foundation, strong asset quality, stable returns, resilient through different credit cycles. And on top of that, unsecured credit such as credit card, fixed credit and buy now pay later are deepening principality and widening our addressable market further on. We are seizing the opportunity in both, and that is what gives us the confidence to keep growing 30% or more for many years to come. And now, to conclude, as you can see on page 9, I would like to highlight three important milestones for our company. Number one, on gaining scale. For the first time ever, we reached over R$ 100 billion in total assets. Second, on expanding margins. For the first time, we crossed double-digit names. And third, on creating value. For the first, time we surpassed capital neutrality, meaning our business now generates more capital than it consumes to grow even in a fast pace of growth these are not just milestones they are proof that the model we have been building with discipline consistency and ambition is delivering real results for our shareholders now shanji and santi will bring this story to life with the full numbers behind it Shandy will walk you through the business update while Santi will take you through the financial performance in detail. Shandy, please go ahead. Thank you João and good morning everyone. Let's now dive into our second quarter operational results. We reached 45.3 million clients and over the last 12 months added 3.7 million new active clients but the size of our base is not the main story here the quality of it is we have been deliberate about how we grow being more selective prioritizing clients that engage faster that means a sharper focus on our pack growth building a stronger and more profitable base and the strategy is showing up directly into our numbers. Our new cohorts are starting with an initial ARPAC approximately 10 reais higher than other cohorts. A key driver of ARPAK growth is credit penetration. As clients deepen their relationship with Inter and adopt credit products, their monetization increases significantly private payroll is a great example of this and i'll explore this subject later we also see evidence of engagement in the behavior of our clients overall we averaged 22 million daily logins this quarter up from 18 million a year ago these clients are not only active they're truly engaged and bringing primary relationships to inter and that engagement is translating directly into monetization while we keep our costs to serve flat our pack goes up cts stays stable the gap is what drives margin expansion and the results speaks for themselves margin per active client just reached its best level ever This is the financial outcome of everything I just described. Better clients, deeper relationships, higher credit penetration. It compounds quarter after quarter. This engagement we talked about also translates into transaction volume. Our Cards and Picks TPV reached 1.8 trillion on a run rate basis. TPV is growing faster than our client base. evidence of deeper relationships. Two market share numbers tell this story best. First, we now hold approximately 9% of all PIX transactions in Brazil and we are still expanding, growing 31 basis points over the past year. Second, for the first time ever, we crossed 2% market share in credit card TPV, as João mentioned earlier. Our new cohorts are starting an engagement at an engagement level that's higher than ever before the flywheel is not just working it's accelerating now i want to deep dive into two of our hero credit products credit cards and private payroll loans santi will cover the full portfolio performance later but i want you give you the strategic view on both starting with credit cards and our reshaping strategy the thesis is simple shift our portfolio towards more interest earning balances more installment usage better monetization bringing higher revenues our interest earning portfolio keeps growing as a share of the total and now stands for 26 percent of the credit card book. The interest income of this product grew 64% year over year. And here is a key message. Interest income is growing faster than provisions. A larger interest earning portfolio does come with more provisioning. That's expected and we're comfortable with it. But the income is outpacing the costs and the margins are expanding. We'll To maintain our discipline in this strategy, growing the right balances with the right clients at the right time. Now let me turn to private payroll loans. We maintain our confidence in the product and its fit to our platform. It generates strong revenue expansion. It scales through our own digital distribution. And it is efficient to originate and serve. That's exactly the kind of product we want more of. In the second quarter, we surpassed 600,000 clients with private payroll loans. These clients have an ARPAC that's 3.7 times that of our average, making it a true principality and monetization accelerator. There are operational improvements in progress, and we're managing through them with discipline. But we believe the product will only get better as Dataprev introduces new features such as automatic employee relinkage. We're growing and we believe we're doing it at the right pace, building a proprietary portfolio that will be healthy and profitable for the long term and that will strengthen principality. The next step is already coming. launches in August, we estimate that insurance adoption can reduce provisions and increase fee revenues, a meaningful improvement in the product's overall performance. I will now talk about business accounts, a significant opportunity we have in front of us. We reached 2.9 million business clients, growing 24% year-over-year. Our market penetration is already at 12% in these types of accounts. Business clients generate 2.8 times the RPAC of our average client. We have built a complete suite of products for businesses including payments, investments, acquiring, cards and credit. The electronic trade invoice as a collateral or as called in Portuguese Duplicate Escritural, to be launched by the Central Bank of Brazil, is currently in testing and once live, it will deepen our product suite, drive higher ARPAC and compound directly into NII growth. The more products a business client uses, the more they consolidate their financial transactions at Inter. This is the same flywheel we see on the retail side. Now, on the business account side now let me shift to another important dimension of our business fee income credit is a powerful engine of our results but what makes inter truly unique is that we have seven verticals that reinforce each other and together generate a fee income base that is diversified and resilient We have two engines that will drive future growth. On the commission side, we're launching subscription plans, giving clients the opportunity to upgrade to our won, prime, and win segments and unlock more benefits. We are also expanding our investment advisory services for higher income clients. And, we just launched InterAds, a new ads monetization layer in our app with significant potential ahead. On the credit-related fees, InterChange is accelerating as our credit card TPV crosses the 2% market share for the first time and keeps outpacing debit. Interpag will resume growth as we mature the company and leverage the products amongst our business clients. And Private Payroll Loans Credit Insurance will add a meaningful new fee revenue stream to a product that is already profitable on the credit side. These are not just plans, they are initiatives already in motion And together, they are what will bring fee income growth back to the pace we want to see. The reason we're confident that fee income will accelerate is not just because of the initiatives I just described. It is the distribution power behind them. As seen on this slide, multiple products across our seven verticals have already surpassed 1 million, the mark of 1 million active clients. But what is even more remarkable is the speed. Each new product is reaching that milestone faster than the one before it. The curves are getting steeper. Adoption is accelerating. This is what distribution at scale looks like. When you have 26 million active clients who log in 22 million times a day, launching a new product isn't starting from zero. It is dropping a new solution into one of the most engaged financial ecosystems in Brazil. Clients are ready to adopt and they are doing it faster every time. That is the compounding power of our flywheel. And that's what gives us the confidence that the fee income initiatives I just described will gain traction quickly. With that, I'll hand it over to Santi for the financial performance. Santi, please go ahead. Thank you, Xande. Good morning, everyone. I'll jump directly into the financial performance of the quarter. The Rule of 50 that we introduced in New York back in May is showing up directly here, with revenue growing 32% year-on-year. Joao refreshed the framework, and this slide is exactly what it looks like in practice what i find even more compelling than the level itself is the consistency behind it for eight consecutive quarters nai has been growing around 40 percent year on year eight quarters in a row that is the result of intentional execution a portfolio that keeps growing a name that keeps expanding private payroll gaining traction exactly as Shande described, and a credit book that his team has been deliberately reshaping towards higher yielding balances. Fee income had a strong quarter, growing alongside our client base, and with the initiatives Shande walked through, we have a clear and intentional path to accelerate this revenue going forward. The result is a revenue base that is diversified, resilient, and structurally built to keep compounding with strong momentum across every driver and the consistency you just saw in nai has a direct driver nim this quarter our name reached 10.1 percent the highest level we have ever recorded and the first time that we have crossed the double digit mark this is a milestone worth pausing on three factors drove the expansion this quarter the first is structural and ongoing The continued deployment of capital into high ROE products quarter after quarter. This is the compounding effect of disciplined capital allocation. The second is strategic. Our hyper-personalization pricing approach, which we outlined on the owner's day, is working. On the asset side, we reprice buy now, pay later, pick credit, and private payroll. On the liability side, we reduced interest rates on LCIs. This is not a one-time adjustment, it is an active ongoing strategy that will continue to support our NIM expansion going forward. The third is one tailwind from our inflation hedge, which as we flagged in the first quarter of 2026, we expect to flow through in this quarter. That is exactly what happened. the underlying trend supported this impact now I want to zoom out because there is a point that often gets overlooked since the 60-30-30 announcement back in January of 2023 our NIM 2.0 has expanded 30% from 7.8 to 10.1% but our capital structure also changed significantly over the same time period, with our leverage going from 6.7x to 9.7 times today. When you normalize for that and hold the capital structure constant through time, the true NIM expansion is closer to 50%. That is a number that reflects the real depth of the improvement in our core banking economics. Taken together, these results reflect exactly what DCPC and consistent execution of our producto bancario, or our banking business, looks like in practice. And that capital deployment we just described, that is showing up directly in the loan growth. Our expanded loan portfolio reached 55.4 billion reais, up 5% quarter on quarter and 29% year on year. You will notice that we introduced a new concept this quarter, the expanded loan Portfolio, which now includes our private securities book, FIDICIs, debentures, and similar instruments. We are bringing this into our core credit metrics because treasury optimization is one of the ROE drivers we committed to at the owner's day as part of the rule of 50. We ask ourselves the question, is deploying capital here a truly franchise-accretive business? We think that the answer is yes, these are client deposits being deployed into market originated credits, generating strong returns that we then reinvest back into our business. You should expect this business to continue growing. Within the portfolio, each product line is pulling its own weight. Private payroll keeps gaining share and is progressively absorbing the natural runoff of the FGTS book. On credit cards, the reshaping strategy described continues to deliver strong performance, with interest income from this product growing 64% year-on-year. Real estate remains a standout. Mortgages and home equity have grown at an average 40% since the second quarter of the last year. Not a single strong quarter, but sustained compounding growth in one of the most important and most secure products in our portfolio. And one number ties all this together. Loan balance per active client, which reached our highest level ever credit penetration one of the key pillars of our rule of 50 execution is not a future ambition is a reality that continues to move forward this diversification across products is what allows us to grow at pace without concentrating risk neither credit nor regulatory with revenue name and long growth expansion all moving in the same direction by design long growth name expansion revenue consistency all of that has a credit strategy behind it and this slide is where we show it before going into the numbers let me frame how we think about asset quality strategically our goal is not to minimize MPL in isolation is to maximize risk adjusted name efficiency and ultimately returns that means that we deliberately take more credit risk in certain portfolios and those same portfolios are becoming an increasing driver of our profitability quarter after quarter this is an intentional trade-off and one we are making with full conviction we'll also notice this page is busier than usual as we introduce the expanded loan portfolio concept in the prior page we apply the same lens here showing MPL and stage 3 formation and they're both expanded and prior methodologies side by side this allows investors to see both views clearly during the transition now within the portfolio there are three distinctive stories the first is our secured portfolio excluding private payroll which is roughly about half of our long book asset quality here is stable and performing well with strong roe dynamics This gives us confidence to keep deploying capital and growing these products accordingly. The second is on credit cards. NPL's performance here reflects a deliberate strategic choice, a growing interest earning portfolio in an unsecured segment that still faces a challenging macro environment. But here the key point is that revenues are growing significantly faster than provisions in this book that is the metric that matters for us and is moving in the right direction with our discipline niched approach and interest rates on a downward trend we expect mpl performance to improve in the coming quarters the third component is private payroll but i will cover that in the next page as the mpl bridge shows this product is the largest contributor of the MPL movement responsible for over half of the yearly increase. We're not going to look past this number, we'll address it here. Delinquency has been running higher for longer than we planned, not because the product deteriorated but because operationally maturity is taking more time than expected. We are actively working on it, our own relinkage solution is underway, insurers launches is in august and further data previ improvements are expected this month as chande walked through but here is what keeps our conviction intact even at current delinquency levels the roe on private payroll loans remains at around 30 percent so the economics are compelling for our clients and for us and it fits very well in the inter by design approach and when you look at private payroll and credit cards together, these two portfolios have been delivering strong returns, ROE holding strong even before the operational maturity of private payrolls and NIM expanding very strongly. This is intentional execution and our confidence continues to grow stronger as the results come in. Now let me turn to funding, one of our most important competitive advantages. Our total funding reached 77.2 billion reais this quarter, growing 24% year-on-year. This growth reflects the trust our clients place at us as our primary financial platform. The composition of that funding tells an equally important story. On the transactional side, the proceeds grew 17% year on year and we generated nearly 1 billion reais in nearly free funding just this quarter. This is the direct result of clients choosing us for their daily financial lives. On the higher yielding deposits, time deposits grew 27 percent and securities issued grew 42 percent, reflecting the continued diversification of our funding base in an environment of high interest rates. We are attracting funding across the full spectrum and doing it efficiently lastly and most importantly deposits per active clients reach 2 000.08 000 reais growing six percent year on year and this is where funding franchise truly shines our cost of funding stood at 66 percent of cdi this quarter one of the lowest and most stable in the industry and i want to emphasize the word stable here market rates have moved a lot over the the past few years, and our cost of funding barely moved. This is by design. It comes from the depth of our transactional deposit base. These are clients who keep Inter as their primary bank, as Shandy mentioned, and this advantage compounds over time. A lower, more stable cost funding means we can price loans more competitively, protect our NIM through the cycle, and generate better risk-adjusted return than peers is one of the most durable competitive advantages that we have built and honestly one that is the hardest to replicate now let me talk about expenses there are three factors playing out here the first is personal headcount is stable at around 4 000 employees which is the same number that we had four years ago when we announced the 60 30 30 plan. Cost grew 18% and the main driver here is the profit sharing which we can think about it is actually good news. It means the team is being rewarded for stronger profitability that we are delivering. Second, DNA came in 44% higher year on year reflecting the amortization of private investments in our super app. This line will keep growing as we launch new projects but importantly the ratio of intangibles to total assets continued to decrease. And third, administrative expenses grew just 15%, broadly in line with the natural growth in clients and transactional volumes. We're handling significantly more scale without a proportional increase in costs. That is the digital model doing exactly what it's supposed to do. And this is what makes all of that sustainable. Revenue growing at 32% year-on-year, expenses growing at 19. That gap of 13 percentage points is operational leverage flowing directly to the bottom line. When we look at the client chart index, both since 2023, when we launched the 60-30-30 plan, the picture is clear. Revenue has compounded, expenses have grown in a controlled manner, and the gap between the two keeps widening. That is the digital banking model at scale. No branches, no legacy systems, no linear cost growth, as we add clients and products. The efficiency ratio reached 42.1% this quarter, a new record low. That reflects years of consistent cost discipline combined with the scaling dynamics of our model. There is more room to run on efficiency and we are committed to continue delivering returns. Revenue, NIM, loan growth, asset quality and now operational leverage, all moving in the same direction. That is the financial picture of Inter this quarter. And everything we walked through comes together right in this page. Net income reached 421 million reais this quarter, a new record. And ROE, also a record, reached 16.3%. But honestly, the quarterly number alone does not tell the full story. If we look at the trajectory of this chart, we have 13 consecutive quarters of net income growth. Quarter after quarter, year after year, net income and ROE keep moving in the same direction, up. That is not a one-quarter story, it is a compounding track record. ROE also hit a record this quarter, now in line with some of the most established traditional banks in Brazil. We think about it, a platform that is growing at 30% plus, delivering returns comparable to institutions that have been around for decades. Everything we have built, the discipline capital allocation, the risk management and the cost control shows up here. Growth and profitability moving together, that is the rule of 50 in action. And finally, I like to close with capital. For the first time, our business is generating more capital than it consumes to fund its loan growth. Inter is now self-sustained from a capital perspective. We grow and we fund the growth ourselves through growing profitability. Additionally, at Inter and Co. level, we hold 2.3 billion in excess capital, capital that sits ready to be deployed in the bank whenever we need. When you factor that in, the Basel ratio at the holding level reached 19.3%, a position of real strength. With that, I'll turn it over to Rafa to open the Q&A questions. Thank you all. Now we'll open the q&a session. Our first question is from Eduardo Hosman. Hosman, please go ahead. hi hi everyone congrats on the numbers and thanks for the opportunity here i would like to to follow up on the nim and asset quality i think santiago explained well you know the three main drivers and i think uh we're gonna continue seeing improvements in the next couple of quarters but these quarters specifically nim was was a little bit too strong right so so i wanted to understand you know that the magnitude of these three main drivers in this quarter trying to understand know if we should uh assume you know the names would still improve in the third quarter or if you know maybe in the third quarter you know it should adjust a little but you know uh and then you know continue moving up you know in the following quarters right and and then you know also on asset quality right i think early npl was you know moved moved up again i assume that that matters more for provisions than the 90 days npls you know what what are your expectations for the next couple of quarters right i know you are taking more a little bit more risks and that's part of the plan but just trying to understand here uh the the probably the the trends for risk adjusting them Let me know how we should think about, you know, throughout the next couple of quarters. That's it. Thanks. Good morning, Rosman. So starting with NIM, let me back a quarter. So what we said back then when we explained the first quarter performance is that we had an inflation dynamic playing out in the first quarter of around 30 million reais or lower inflation hitting in that quarter. But that would have an effect going forward into the second, which is what we're seeing now with 10.1. So the prior NIM was a bit lower than what it should have been on a normalized basis. And the current one has a bit of that embedded in there as a consequence of inflation. So I'll walk you through that. We have approximately 11 billion reais of inflation linked exposure, which we hedge around 6 billion of it. And that gets us a net long exposure of around 5 billion. Right. And with that, we have the timing mismatch where the 30 million reais of lower revenues in the prior quarter are hitting positively in this quarter. With that factored in, you should adjust around 15 basis points in this quarterly lower and 15 basis point in the quarterly higher. Now, that would be a more smooth performance, and that would reflect a bit more what really happened if the inflation would have been constant through time and we wouldn't have the hedge. But what I would like to highlight is that when you look at the overall long-term curve of our NIM and our risk-adjusted NIM, it has performed quite stable and has become quite predictable, despite inflation going from very low numbers to very high numbers throughout the year and also with the movement in CDI. So we were able to manage that volatility. We'd like to have the NIM more predictable and stable, but we do see some dynamic throughout the years playing out, particularly in this first half. And on an annual basis, we said this the last quarter, we expect a 40 basis points increase in the annual NIM from the prior year into this one. And we continue to think that will be the case considering the loan mix that we're originating at. And then on asset quality, we're quite happy with the performance. It is in line with what we expected. Remember that we mentioned three drivers last quarter. Two were internals. The additional growth that we were taking in private payroll and the credit card mix or reshaping that Chande commented. And then the external one, which has to do with high interest rates and seasonality. So on those two that are internal, private payroll, we continue very excited with it. Chandler can touch upon in more detail, but this is a product that fits, as we said, perfectly well in the inter-buy design. And credit card has been our stellar P&L product internally. We are monetizing it a lot more. As you saw, 64% interest income increase in the last 12 months. that comes together with more delinquency, right? But we're not solving for lower delinquencies. We're solving, as we mentioned, for higher returns. So the evolution or the shape of the delinquancy curves going forward will depend a bit on the mix. But the guidance that we gave last time was cost of risk at around 6%. We continue to think that's the case. This quarter, we're a bit better than that. And the outlook for the rest of the year remains unchanged, both on the NIMS side, as I mentioned in the first question, as well as with the asset quality. Okay. Thanks a lot, Santiago. Our next question is from Enrique Navarro. Navarra, please go ahead. Navarro, your mic is open. Our next question is from Mario Pierre. Mario, please go ahead. Good morning. Thanks for taking my question. Congratulations on the results. Let me ask you a more general question about asset quality trends in Brazil, right? You continue to grow your loan book at a very rapid pace, close to 30%. You are seeing higher cost of risk, you're compensating that with higher revenues. However, there's a perception that families in Brazil are highly embedded, that service ratios are very high, we have an uncertain environment second half of the year of the elections, and then there's the perception that next year the fiscal spending in Brazil is going to have to decline because the government has been very populist this year. So, if you can discuss how are you seeing the operating environment in Brazil and key concerns that you have about asset quality going forward? Thank you. Mário, João Vitor speaking here. Thanks for the question, and I'm going to take this one. look we IPO the company back in 2018 so it's been what eight years or so that the analysts the investors they have been following Inter and we have always been very very careful on approaching credit risk credit underwriting and so on that said we have a very I'd say good tailwind that helped Inter. And it's pretty much a simple thing. We are still a small loan portfolio with a lot of clients, very good cost of funding, and a very good distribution channel. That said, of course, as Santi just mentioned, we will adjust accordingly. So we might expand an unsecured portfolio in a good credit cycle. We might reduce it in a bad credit cycle, but the opportunity ahead of us, the time ahead of us is just big. When we see on the page that we show, the growing opportunity, the 2.7 trillion reais portfolio, the 1.3 reais portfolio on the left side, and the 2,6 trillion reais portfolios addressable market on the right side, we have, as I mentioned, the tools to attack all of these three addressable markets. So still, with inflation pressure on the families, with elections and everything, we can still grow at a 30%-ish, I'd say maybe a few years to come. We can do that, doing the right risk-reward approach. This is very important. We are in a business of taking risks. We need to manage that. We need use all the tools that we have, and we have been doing that. carefully, but again, because we are still a small loan portfolio platform, we can keep growing on that pace ahead without putting the balance sheet of risk. So that's the overall view from my side, from my end, on how Interreal performs on this current credit cycle in Brazil. And when you think on the mid-long term, we have all the tools on the platform to keep gaining momentum, be produced in alpha so again the best cost of funding the right distribution channel a very efficient business model by being digital so we see a very great opportunity for inter to keep compounding our loan portfolio both on secured and unsecured portfolios ahead okay that's the the view for the business in terms of risk reward and credit cycles very very clear as well thank you let me ask you then a second question really quick um you guys didn't mention anything about the debt renegotiation program in Brazil, BISENHOLA. So I just wanted to know, did they have any impact on your asset quality ratios? Were you active renegotiating loans? Shandri will take this one, Mario. Thank you. Hi, Mario, good morning. So, Mario... So, the BISBENHALA was good, much better than what we saw in the first Desenrola and what we saw was first renegotiation renegotiations of 100 million so a good volume driven by Desenhola an overall impact in the P&L of around 40 million although we believe that half of this we would be we would have realized in other ways so using a SIR to our collection company, also using our internal team, which is very strong and doing a lot of actions to control delinquency. So we can say that Desenrola brought 12 million of EBT impact. When we look at delinquancy metrics, we had minus 10 bps in NPLs, we have minus 15 bps in cost of risk and about 15 bps increase in stage 3 formation. And why stage 3 formation? Given two factors. The first one is as we renegotiate, we're also renegitiating credits that are past due beyond three, six days or they're written off. So we bring them back into the balance sheet and place them into stage three. And sometimes we renegotiate in the Zenrola credits that are, say, between 90 and 360. When we do that, we move them to stage three and increase that proportion. The good news is that this stage three is highly recoverable, given that it has the FGO backing it. João will give me some additional comments so mario just going back to the first question about addressable market and how inter will grow ahead one thing that's important to mention to give you some color on i mean how big the opportunity is so again connecting to the page eight where we have the one point 1.3 plus 2.7 plus 2 point 6 trillion reais addressable markets we are today pretty much only on the central column, and we are widening, as I said in my first speech, we're widening to the left and to the right side of the addressable market. And one thing to factor, we have the public information on the Central Bank on the credit exposure that our clients, they have on the system. And it's interesting that clients that have a primary relationship with us, picks and salary and everything and we have less than five percent of the credit exposure of those clients so within our own clients the clients that already use our platform that are already investing with us doing picks with us using our products we can penetrate a lot so that's what i how i try to to put some numbers and some some color on this big opportunity this big address market and the fact that we're still from a credit perspective a small platform we're a big platform from a transactional perspective but from a creative perspective we're still a small platter from brazil so i see that as a very good news for us very clear thank you thank you shanjin joel thank you our next question is from tito labarta tito please go ahead Hi, good morning. Thanks for the call and taking my question. A couple of questions, actually, just a couple of follow-ups, both on NII and provisioning. On the NII, and Santi, you kind of explained a little bit, right, the inflation impact, but, you know, just looking at the financials, right? The big jump came in the same income from securities, derivatives, and FX, which is almost 200 million reais quarter over quarter. If you look at just interest income, it was less than 100 million reais increase. So just going forward, can you still do the 10 to 20 bps NIM expansion per quarter? um just should we consider this sort of the higher income from securities as the right level i know there's adjustments from quarter to quarter but just think about that incremental name expansion given that this quarter was um name was higher um probably than expected um how do you think about that quarterly name expansion uh just given this movement in the income from security And then just following up also on provisions, your coverage ratio did come down. I know part of the MPL increase was more mixed. But just given the current sort of macro environment, how are you thinking about that coverage ratio? Why is it coming down? Should you be increasing it in the current environment given some of the macro concerns? I just want to think about sort of the provision levels and coverage, given the credit cycle that the market is somewhat concerned about. Thank you. Tito, I'll take that question. Thank you for starting with the first one on NII. We do provide in the earnings in investor relations website a very detailed Excel where we open up the interest income. That's tab number six called NII. And there what you can see is that the income from securities has two things inside it. One is the proper income from security from the securities themselves, as well as the income from the derivatives. And the income for the derivatives that come from the portfolio needs to be added to the interest income from loan portfolio. We do that in that tab and we reconcile the implied interest rates from the interest income from each of the products with the associated loan portfolio so that you can see the interest outcome of each of their portfolios after the hedge and before the hedge both. So from that delta of this quarter of 186 million reais in income from securities, approximately 130 of those were from the portfolios themselves. So you need to add that back to interest income. Again, that's in the Excel that we provide in the Investor Relations website, tab number six called NII. Then jump into the second one on provisions. What you do see in the coverage ratio is an increase that we had throughout the last couple of quarters in anticipation of the seasoning of the private payroll product. We have been running for a long time at around 130%. When we were growing the early quarters of the public payroll product, we took it up to 146. But the delinquency didn't hit in as the product was very early on. And then as the product matures, then that consumption happens. And we're now around 134% coverage ratio. That answers the past. Going to the future, it will ultimately depend on the loan mix as the growth of this product and the future reshaping takes place. There are some uncertainties there on the pace and speed at which those products will evolve. And also the pace at which real estate, which has the opposite effect, also will evolve. You saw last year, particularly in the second half, we had an amazing growth in real estate that pulls the number up because the coverage ratio of real estate which has a high guarantee, it's lower than the average of the total. So there are a few moving pieces, but to answer and give you a sense, we think that the number of around 130 to 135% at least for the coming quarters is something safe to assume. Okay, that's very helpful. Thank you, Sankara. Our next question is from Neha Agarwala. Neha, please go ahead. Hi, thank you for taking my question. I have two questions, but can we first talk about the right of policy change that you made this quarter? What drove that decision? What is the new write-off policy. I understand it's only on the credit card segment or any other segments impacted. And I believe the benefit on the 90-day NPL ratio is 30 basis points, as you called out in your earnings release. But if we can just give him a color on that. good morning i'll take that one as well so yes we did migrate a write-off for credit cards specifically from 360 days to 330 days in line with resolution 4966 best practices and our own ongoing commitment to aligning our accounting methodology with the highest industry standards. That's exactly the kind of proactive technical rigorosity that we want to have. And the rationale behind it is that our data shows that beyond 330 days the recoverability of credit cards in fact is very low and trends to zero. Therefore, it's more accurate to move it to 330. In terms of financial impacts, there is no effect in the cost of risk as this fully provisioned by the day 330, 100% provisioned by then. And yes, on the NPLs, as the product lives shorter in our balance sheet, it has an impact of around 30 basis points. On the overall NPL ratio, right? Correct. On the overhaul. On the under-overhaul. We report overhauled. Okay, great. The other question is on the private payroll segment. You mentioned that you recently started doing the linkages on your own because the data previ linkages is taking longer than anticipated. So how should we think about the delinquencies with that new connection being made? What are the early results that you're seeing? And I believe it started in last one or two months. So why didn't we start a bit earlier on that, which would have made the frequency is better in this particular product if you can shed some light on that good morning this is shanj speaking i'll take the private payroll loans on one and i think it's useful to talk about three dimensions here growth credit quality and profitability as you asked about credit quality i will start there So the first point is we are operating on the higher band of our expectations in terms of cost of risk for the product. But despite that, the profitability is within what we expect. We're solving for like a marginal ROE of around 30% in the product, and we're moving all the levers internally to converge to this number as we go. So since the beginning, maybe we were running at a marginal ROE a little bit higher than that. It came down with the delinquency and we're moving it. But it's important for everybody to understand that we manage the process to deliver this marginal ROe of 30% in the product. We have very good actions in process. You mentioned the relinkage. So, the relinkage is now being done with discipline and it's helping the NPLs. This is an action that's already in place, but we do have more coming up. So, to give you a few examples, we have the credit insurance, which is about to be launched in the next few days. we're doing and we're also doing the the implementing some features to do easier renegotiations with clients and to do that in scale this is specifically good for clients that had that have a new job but this job is with a lower salary so you need to do renegoliations in this case and we are also doing credit policy tune-ups that help this cost of risk So the idea is to keep bringing and pushing this credit risk down to levels that are closer to low teams. That's kind of the view we have and what we're working towards in terms of credit quality. Coming back now to growth, so we're very confident in the market size. We've been vocal about believing in between 200 and 300 in the relatively short term. We believe it will convert to that. We're confident to keep on growing as the market grows. Today, our market share in terms of portfolio is at about 2.5%. And there are external factors that make the underwriting volumes adjust. For example, the interest rate caps. Although we do see some positiveness in the interest rates caps. So we had super high interest rates coming from some players, and we don't believe that's good for the long-term health of the product in Brazil. So I think this is a good summary on the product. We're positive. We are moving the underwriting levers to keep growing the portfolio, and we believe it's very well connected with what Inter needs in the future. just to clarify any impact on the rate caps in your origination i believe you're originating with the higher rate cap and without the fgts guarantee right yeah in the first there were two movements in the First Movement we had a very very small change because it moved from being free to have in 4.99, if I'm not wrong, or 4.9 cap. So we had a reduction of less than 5%, given that a very small percentage of our loans went beyond the 5%. In the second cap, we had the little bit stronger movement in the volume, but now it's under adjustment. So So, as I mentioned, we're going to keep on adjusting the process to underwrite more. And as we put the credit insurance in these next few days, it's going to help on profitability and could allow us to increase underwriting again. Thank you so much for the comprehensive answers. thank you all for the questions in order to be conscious of the time we're going to move to joan's closing remarks joan please go ahead thank you very much hafa thanks for the audience thanks for everyone that just joined us i'd like to share with you how happy and confident i am with inter happy because as you can see we delivered our best earnings ever. As we can see 13 consecutive quarters growing our net income but also confident that we still have a big addressable market to go on. Both on secured, unsecured, on fee income across the board. We still can bring a lot of clients to dip our relations with them. So this is very important. And second, I would like to highlight that you all know that Inti has been mastering the UX, the UI, the technology, the platform since we launched the first ever digital bank in Brazil back in 2016. But back then, we were still consuming capital. We were not deepening our credit underwrite portfolio with the clients. But fast forward to 2026, we were able to manage that to improve the credit underwrite, to grow our loan portfolio, to turn from capital consumption to capital origination creation at our balance sheet. This is very important. We have been doing the brilliant basics of a good banking operation. So when you combine the good banking operation with the best-in-class UX, UI, and digital platform, it does take us to a very, I'd say, a very good future ahead of us. Thank you all, and mostly I'd like to thank our employees for helping us on this journey, and I'm sure that the best is still yet to come. Thank you very much, and have all a great day. Thank you.