Inter : 1Q24 IFRS Financial Statements - Inter & Co

Unaudited interim condensed consolidated statements

For the three-month period

March 31, 2024

Contents

Management report Independent Auditor's Report

Unaudited interim condensed consolidated balance sheets Unaudited interim condensed consolidated income statements

Unaudited interim condensed consolidated statements of comprehensive income Unaudited interim condensed consolidated statements of cash flows Unaudited interim condensed consolidated statements of changes in equity Notes to the Unaudited interim condensed consolidated statements

Note 1. Activity and structure of Inter & Co, Inc. and its subsidiaries Note 2 Basis for preparation

Note 3 Significant changes of accounting policies Note 4 Material accounting policies

Note 5 Operational segments Note 6 Financial risk management

Note 7 Fair values of financial instruments Note 8 Cash and cash equivalents

Note 9 Amounts due from financial institutions, net of provisions for expected loss Note 10 Securities, net of provisions for expected loss

Note 11 Derivative financial instruments

Note 12 Loans and advances to customers, net of provisions for expected loss Note 13 Non-current assets held for sale

Note 14 Equity accounted investees Note 15 Property and equipment Note 16 Intangible assets

Note 17 Other assets

Note 18 Liabilities with financial institutions Note 19 Liabilities with customers

Note 20 Securities issued

Note 21 Borrowing and onlending Note 22 Tax liabilities

Note 23 Provisions and contingent liabilities Note 24 Other liabilities

Note 25 Equity

Note 26 Net interest income

Note 27 Income from securities and derivatives Note 28 Revenues from services and commissions Note 29 Other revenues

Note 30 Impairment losses on financial assets Note 31 Administrative expenses

Note 32 Personnel expenses Note 33 Tax expenses

Note 34 Current and deferred income tax and social contribution Note 35 Share-based payment

Note 36 Transactions with related parties Note 37 Other information

Note 38 Subsequent events

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Unaudited interim condensed consolidated statements

For the three-month period

March 31, 2024

Management report

Inter & Co, Inc.

Inter & Co, Inc (the Company and, together with its consolidated subsidiaries, the Group) is a holding company incorporated in the Cayman Island, with limited liability. In June 2022, the Company began to have its shares listed on Nasdaq, a North American stock exchange, with the ticker INTR, and BDRs listed on B3 a Brazilian stock exchange, with the ticker INBR32. Inter&Co is the controlling company of Grupo Inter and indirectly holds all the shares in Banco Inter.

Inter

Inter provides e-commerce and financial services, these solutions are offered in a single digital ecosystem that includes a complete range of baking services, investments, credit, insurance and cross-border banking, as well as a marketplace that brings together the largest retailers in Brazil and in the United States.

Operating highlights

Customers

As of March 31, 2024, we surpassed the mark of 31.7 million customers and increased the activation rate by 339bps when compared to March 31, 2023, reaching 54.9%.

Loan Portfolio

The balance of loan operations reached R$30.9 billion, representing a positive variation of 3.6% compared to December 31, 2023.

Economic and financial highlights

Profit (loss) for the period

We recorded an accumulated profit of R$195.2 million as of March 31, 2024, compared to a increase of 706.2% in the period ending March 31, 2023.

Revenues

The revenues as of March 31, 2024, reached R$2,197.2 million, recording an increase of R$464.6 million compared to the amount recorded in the same period in 2023.

Administrative expenses

Accumulated administrative and personnel expenses incurred as of March 31, 2024, totaled R$(395.2) million, an increase of R$(9.6) million compared to March 31, 2023.

Equity highlights

Total assets

Total assets reached R$R$62.5 billion as of March 31, 2024, a 3.6% increase compared to December 31, 2023.

Shareholder's equity

Shareholder's equity totaled R$8.5 billions billion, a 12.4% growth compared to December 31, 2023.

Relationship with the independent auditors

The Company also has a policy with requirements for contractual risk analysis which defines that the Board of Directors must evaluate the transparency, objectivity, governance aspects and the compromising of the independence of the contract, thus ensuring conformity between the parties involved. Additionally, it has an Audit Committee which, among its responsibilities and competencies, in addition to providing opinions and recommendations on the audit service provider, also evaluates the effectiveness of the independent and internal audits, including with regard to the verification of compliance with legal provisions and regulations applicable to Inter, as well as internal policies and codes.

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Unaudited interim condensed consolidated statements

For the three-month period

March 31, 2024

Furthermore, Inter & Co, Inc. confirms that KPMG Auditores Independentes Ltda. has procedures, policies, and controls in place to ensure its independence, which include an evaluation of the work provided, covering any service other than the independent audit of Company's financial information. This evaluation is based on the applicable regulations and accepted principles that preserve the auditor's independence. The acceptance and performance of non-audit professional services on the financial Information by its independent auditors during the period ended as of March 31, 2024 did not affect the independence and objectivity in the conduct of the audit work performed at Inter & Co, Inc. Information related to independent auditors' fees is made available annually in the reference form.

Acknowledgment

We would like to thank our shareholders, customers and partners for their trust, as well as each of our employees who build our history daily.

Belo Horizonte, May 09, 2024.

The Management

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KPMG Auditores Independentes Ltda

Rua Paraíba, 550 - 12º andar - Bairro Funcionários 30130-141 - Belo Horizonte/MG - Brasil

Caixa Postal 3310 - CEP 30130-970 - Belo Horizonte/MG - Brasil Telefone [phone]

kpmg.com.br

Report on review of interim financial statements

To the Shareholders, Board of Directors and Management of

Inter & Co, Inc.

Cayman Islands

Introduction

We have reviewed the condensed consolidated interim financial information of Inter & Co. Inc. ("Company"), included in the Interim Financial Information Form for the quarter ended March 31, 2024, which comprise the balance sheet as of March 31, 2024, and the income statements, statements of comprehensive income, changes in equity and cash flows for the three-month period then ended, including the explanatory notes.

Management is responsible for the preparation and presentation of this condensed consolidated interim financial information in accordance with IAS 34 Interim Financial Reporting, issued by the International Accounting Standards Board - (IASB). Our responsibility is to express a conclusion on this condensed consolidated interim financial information based on our review.

Scope of review

We conducted our review in accordance with Brazilian and international review standards on interim financial information (NBC TR 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of people responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with standards on auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion on the condensed consolidated interim financial information

Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial information referred to above is not prepared, in all material respects, in accordance with IAS 34, applicable to the preparation of interim financial information and presented in accordance with the standards issued by the Brazilian Securities and Exchange Commission.

Belo Horizonte, May 9, 2024

KPMG Auditores Independentes Ltda.

CRC SP 014428/O-6F-MG

Original report Portuguese signed by

Jonas Moreira Salles

Accountant CRC SP-295315/O-4

KPMG Auditores Independentes Ltda., a Brazilian limited liability company and a member firm of KPMG's global organization of independent member firms licensed by KPMG International Limited, a private English company limited by guarantee.

KPMG Auditores Independentes Ltda., a Brazilian limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

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Unaudited interim condensed consolidated balance sheets As of March 31, 2024 and December 31, 2023

(Amounts in thousands of Brazilian reais, unless otherwise stated)

	Note	03/31/2024	12/31/2023
Assets
Cash and cash equivalents	8	2,830,310	4,259,379
Amounts due from financial institutions, net of provisions for expected loss	9	4,051,287	3,718,506
Deposits at Central Bank of Brazil		2,925,658	2,664,415
Securities, net of provisions for expected loss	10	18,167,251	16,868,112
Derivative financial assets	11	7,392	4,238
Loans and advances to customers, net of provisions for expected loss	12	28,826,999	27,900,543
Non-current assets held for sale	13	173,712	174,355
Equity accounted investees	14	89,569	90,634
Property and equipment	15	187,076	167,547
Intangible assets	16	1,596,177	1,345,304
Deferred tax assets	34.c	1,082,102	1,033,535
Other assets	17		2,609,027		2,125,229
Total assets		62,546,562	60,351,797
Liabilities
Liabilities with financial and similar institutions	18	10,483,087	9,522,469
Liabilities with customers	19	32,643,444	32,651,620
Securities issued	20	8,249,142	8,095,042
Derivative financial liabilities	11	13,893	15,063
Borrowing and onlending	21	102,020	107,412
Income tax and social contribution		360,850	287,978
Other tax liabilities			78,276		75,284
Tax liabilities	22		439,126		363,262
Provisions	23	70,003	70,452
Deferred tax liabilities	34.c	49,912	32,539
Other liabilities	24		1,957,483		1,897,248
Total liabilities		54,008,110	52,755,107
Equity
Share capital	25.a	13	13
Reserves	25.b.	9,116,496	8,147,285
Other comprehensive income	25.c	(711,252)	(675,488)
Treasury shares	25.h		(12,783)		-
Equity attributable to owners of the Company			8,392,474		7,471,810
Non-controlling interest	25.f		145,978		124,881
Total equity			8,538,452		7,596,691
Total liabilities and equity		62,546,562	60,351,797

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

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Unaudited interim condensed consolidated income statements

For the three-month period ended March 31, 2024 and 2023 (Amounts in thousands of Brazilian reais, except for earnings per share)

	Note	03/31/2024		03/31/2023
Interest income	26	1,217,531	1,012,927
Interest expenses	26	(762,247)	(672,771)
Income from securities and derivatives	27	515,381	371,406
Net interest income and income from securities and derivatives		970,665	711,562
Net revenues from services and commissions	28	374,340	282,353
Expenses from services and commissions		(34,022)	(35,678)
Other revenues	29	89,957		65,877
Revenues		1,400,941	1,024,114
Impairment losses on financial assets	30	(411,048)	(350,681)
Administrative expenses	31	(395,244)	(385,615)
Personnel expenses	32	(190,463)	(172,412)
Tax expenses	33	(86,331)	(68,871)
Depreciation and amortization		(41,900)	(37,577)
Income from equity interests in associates	14	(2,223)	(3,061)
Profit before income tax		273,732	5,897
Income tax	34	(78,512)	18,319
Profit for the year		195,220	24,216
Profit attributable to:
Owners of the Company		182,793	11,405
Non-controlling interest		12,427	12,811
Earnings (loss) per share
Basic earnings (loss) per share	25.e	0.43	0.03
Diluted earnings (loss) per share	25.e	0.43	0.03

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

6

Unaudited interim condensed consolidated statements of comprehensive income For the three-month period ended March 31, 2024 and 2023

(Amounts in thousands of Brazilian reais, unless otherwise stated)

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

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

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Unaudited interim condensed consolidated statements of cash flows

For the three-month period ended March 31, 2024 and 2023 (Amounts in thousands of Brazilian reais, unless otherwise stated)

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

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

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Unaudited interim condensed consolidated statements of changes in equity For the three-month period ended March 31, 2024 and 2023

(Amounts in thousands of Brazilian reais, unless otherwise stated)

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

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

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