Banco Inter reports profit in the third quarter before going for an IPO in the United States

The digital bank reported a BRL 19.2 million profit for the period, thanks to increased credit revenues and marketplace transactions

Softbank Banco Inter
Inter's headquarters, in the city of Belo Horizonte, Brazil. Photo: Courtesy
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Banco Inter released its earning results and reported a profit in the third quarter, at a time when it is seeking to show investors that its business is profitable before it will try an IPO in the United States.

The digital bank reported a net income of BRL 19.2 million in the third quarter. A year earlier, the company had had a loss of BRL 8.1 million. According to Banco Inter, the discrepancy was due to an increase in credit revenues and marketplace transactions.

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By the end of September, Banco Inter‘s extended credit portfolio reached BRL 15.9 billion, an increase of 116% year over year. The Gross Merchandise Value of its marketplace reached BRL 946 million in the quarter, an increase of 151% year over year.

Inter’s user base has also grown in the last three months. According to the report, the bank had 13.9 million customers at the end of the third quarter, an improvement of 94% in 12 months. Out of these, about 7.9 million were considered active users.

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Inter also informed that the cost of acquiring clients from July to September reached BRL 30.74 each, a growth of 39% year over year.

A recent report by Bank of America showed that for the first time since January 2015, the digital banking sector recorded a drop in the number of monthly active users. The only digital banks among the top 10 to grow their active user base in September were Nubank (35.4 million), Inter (8.4 million), and C6 (7.9 million).

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