Inter&Co Reports Record Q2, Touts Rule of 50; Credit Quality Remains Key

What happened

Inter&Co announced record second-quarter results, with net income of US$81 million and management declaring that its 'Rule of 50'—the sum of revenue growth and ROE exceeding 50%—has become a reality. The upbeat release highlights strong customer growth and ecosystem momentum, but omits the critical asset-quality and capital metrics that weakened during the first quarter, such as rising NPLs and a declining Basel ratio. The prior DeepValue WAIT thesis was built on needing proof that secured-loan mix, funding quality, and primary-account conversion could offset deteriorating credit trends, and this headline alone does not provide that proof. Investors must scrutinize the accompanying earnings release and call for details on net ARPAC, risk-adjusted NIM, 15-90 day NPLs, and Basel, as these will determine whether the Rule of 50 achievement represents genuine improvement or simply headline optics. Without visible stabilization in credit quality, the record income may still mask a cycle of provisioning that could pressure future earnings, leaving the WAIT rating intact until more complete figures confirm a durable turnaround.

Implication

While Inter’s Q2 net income of $81M and the Rule of 50 milestone signal continued expansion, the earnings release must address the Q1 deterioration in ARPAC ($34.1), 15-90 day NPL (5.6%), and Basel (14.0%). If these metrics have improved, the bull case for secured-loan scaling and primary-account monetization strengthens, narrowing the gap to an attractive entry. Conversely, if credit costs remain elevated and capital consumption persists, the record profit may be driven by unsustainable volume rather than quality, reinforcing the WAIT. The next 3-6 months will hinge on whether growth can be sustained without eroding asset quality, and this release alone does not resolve that uncertainty. Investors should watch the full Q2 earnings presentation for concrete evidence of stabilization before re-rating the stock.

Thesis delta

The Rule of 50 claim suggests operating momentum may be improving, but without detailed metrics it does not alter the core thesis that growth quality must be proven. The WAIT stance persists pending confirmation that net ARPAC has rebounded, NPLs have not worsened, and Basel has strengthened.