EX-99.1 2 tm2229270d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

Condensed consolidated

interim financial statements

as of September 30, 2022

Inter & Co, Inc.

Contents

Management report	3
Report on review of interim financial information	7
Balance sheets	9
Statements of income	10
Statements of comprehensive income	11
Statements of cash flows	12
Statements of changes in equity	13
Statements of added value	14
Notes to the condensed consolidated interim financial statements	15

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

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. On June 23, 2022, the Company started trading its shares on Nasdaq, in New York, under the ticker symbol INTR. Inter & Co's main subsidiary is Banco Inter S.A., which, together with its subsidiaries, comprises a global services platform.

Inter

Inter is a Super App with an extensive portfolio of financial and non-financial products and services that are designed to simplify people’s lives.

Since the digitalization of our business model in 2015, we have managed to diversify our revenues, increasing the relevance of service-related revenue streams. The solutions that comprise the Inter ecosystem are integrated and completely interconnected – all in a single application. We offer several solutions to customers such as: current account, loans and financing, investments, foreign exchange, and insurance, in addition to the ability to buy products from major retail partners through Inter Shop, our digital shopping mall, simply and quickly.

Investments in Affiliates and/or Subsidiaries

On January 14, 2022, Banco Inter S.A. closed the acquisition of 100% of the capital of the subsidiary Inter & Co Payments, Inc, formerly Pronto Money Transfer Inc. (USEND), whose company name changed on July 11, 2022. USEND is a US company with 16 years of experience in foreign exchange and financial services, offering, among other products, a digital Global Account solution to conduct money transfers between countries. We describe the business combination in more detail in Note 4.3.

Operating highlights

Digital account

In the period ended September 30, 2022, we surpassed the mark of 22.7 million customers, which is equivalent to 64% growth in the period. Our NPS reached 84 points, reaching the excellence zone, and we recorded over 1 billion logins to our app during the nine months ending September 30, 2022.

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

Loan Portfolio

The balance of loan operations reached R$ 21.0 billion, resulting in a positive change of 22.1% over December 31, 2021. The real estate secured loan portfolio exceeded R$ 5.9 billion, or a 15.7% growth over the R$ 5.1 billion balance as of December 2021. The individual loan portfolio, which includes payroll loans and FGTS portfolios, reached R$ 5.1 billion, and the credit card portfolio reached R$ 6.4 billion; together they totaled R$ 11.5 billion, a 36.9% growth compared to December 31, 2021, when they totaled R$ 8.4 billion.

Funding

Total funding, which includes demand deposits, time deposits, savings deposits and securities issued, such as Real Estate Bills and debentures, amounted to R$ 28.4 billion as of September 30, 2022, which is 29.7% higher than the amount of R$ 21.9 billion recorded on December 31, 2021.

Economic and financial highlights

Profit (loss) for the period

We recorded an accumulated loss of R$ 42.9 million for the period nine-month period ended September 30, 2022, compared to a profit of R$ 1.2 million for the same period in 2021.

Revenues

Revenues reached R$ 4,036.6 million for the nine-months period ending September 30, 2022, recording an increase of R$ 2,130.4 million compared to the amount recorded in the same period of 2021. Interest income amounted to R$ 1,931,8 million, which implies a growth rate of 100.8% compared to the same period in 2021.

Administrative expenses

Accumulated administrative and personnel expenses incurred in the period ended September 30, 2022 totaled R$ 1,779.0 million, an increase of R$ 657.1 million in relation to the same period of 2021, a growth explained by the increase in volume of operations, expansion of services and products offered, and the growth of the customer base and number of employees.

Equity highlights

Total assets

Total assets reached R$ 43.8 billion in the period ended September 30, 2022, a 19.7% growth compared to December 2021.

Inter & Co, Inc. Condensed consolidated
interim financial statements as
of September 30, 2022

Equity

Equity totaled R$ 7.1 billion, showing a reduction of 15.5% when compared to December 31, 2021. The decrease arose from the impact of a corporate reorganization due to the payment of cash-out

Statement of the Executive Board

Inter & CO, Inc . Executive Board declares that it has discussed, reviewed, and agrees with the opinions expressed in the independent auditors’ report, and reviewed, discussed and agrees with the financial information for the period ended September 30, 2022.

Relationship with the independent auditors

In compliance with CVM Instruction No. 381, Inter & Co, Inc. informs that the other services contracted in addition to the auditing services for its condensed consolidated interim financial statements do not interfere with the policy adopted in relation to the principles that preserve the auditor's independence, in accordance with internationally accepted criteria, which are that the auditor should not audit his own work or exercise managerial functions at his client, or promote the client's interests. The institution 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 commitment 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 & Co, as well as internal policies and codes.

In the period ended September 30, 2022, no services were provided by KPMG Auditores Independentes Ltda. not related to the audit of the financial information in an amount that exceeded 5% of the total fees related to the independent audit services.

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 Inter & Co, Inc.'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

Inter & Co, Inc. Condensed consolidated
interim financial statements as
of September 30, 2022

September 30, 2022, did not affect the independence and objectivity in the conduct of the audit work performed at Inter & Co, Inc.

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, November 7, 2022.

The Management

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 Telephone number +55 (31) 2128-

5700

kpmg.com.br

Report on review of

interim financial information

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 September 30, 2022, which comprise the balance sheet as of September 30, 2022, and the statements of profit or loss and other comprehensive income for the three and nine-month periods then ended, and changes in equity and cash flows for nine-month period then ended, including 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 applicable to 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 persons 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

KPMG Auditores Independentes Ltda., uma sociedade simples brasileira, de responsabilidade limitada e firma-membro da organização global KPMG de firmas-membro independentes licenciadas da KPMG International Limited, uma empresa inglesa privada de responsabilidade limitada.

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.

accordance with the standards issued by the Brazilian Securities and Exchange Commission.

Other issues

Statements of value added

The interim financial information referred to above include the consolidated statement of value added for the nine-month period ended September 30, 2022, prepared under the responsibility of the Bank's management, and presented as supplementary information for the purposes of IAS 34. This statement has been submitted to review procedures performed together with the review of the interim financial information to conclude whether it is reconciled to the consolidated interim financial information and accounting records, if applicable, and whether its form and content are in accordance with the criteria set on Technical Pronouncement CPC 09 - Statement of Value Added. Based on our review, nothing has come to our attention that leads us to believe that this consolidated statement of value added has not been prepared, in all material respects, according to the criteria set by this Standard and in a manner consistent with the condensed consolidated interim financial information taken as a whole.

Belo Horizonte, November 7, 2022

KPMG Auditores Independentes Ltda.

CRC SP-014428/O-6 F-MG

Original report in Portuguese signed by

João Paulo Dal Poz Alouche

Contador CRC 1SP245785/O-2

Inter & Co, Inc.

Balance sheets as of September 30, 2022 and December 31, 2021

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

	Note	09/30/2022	12/31/2021
Assets
Cash and cash equivalents	8	838,310	500,446
Amounts due from financial institutions	9	3,417,500	2,051,862
Compulsory deposits at Central Bank of Brazil	9b	2,686,243	2,399,488
Loans and advances to customers	10	21,005,268	17,216,362
Provision for expected loss	10	(1,184,365)	(680,932)
Loans and advances to customers, net of provision for expected loss		19,820,903	16,535,429
Securities	11	13,373,465	12,757,687
Derivative financial assets	12	581	86,948
Non-current assets held for sale	13	165,703	129,793
Investments	14	76,849	82,445
Property and equipment	15	193,905	163,475
Intangible assets	16	1,209,471	430,504
Deferred tax assets	32	872,798	695,525
Other assets	17	1,188,339	792,735
Total assets		43,844,067	36,626,337

Liabilities
Liabilities with financial institutions	18	7,349,464	5,341,464
Liabilities with customers	19	21,452,026	18,333,543
Securities issued	20	6,916,919	3,572,093
Derivative financial liabilities	12	40,347	66,545
Borrowing and onlending	21	33,119	25,071
Income tax and social contribution		103,497	41,764
Other tax liabilities		50,229	36,642
Tax liabilities	22	153,726	78,406
Provisions	23	59,219	52,848
Deferred tax liabilities		-	89,235
Other liabilities	24	698,852	617,349
Total liabilities		36,703,672	28,176,554
Equity
Share capital	25a	13	13
Reserves	25b	7,870,186	2,728,396
Other comprehensive income reserve	25c	(825,789)	(72,284)
Equity attributable to owners of the Company		7,044,410	2,656,125
Non-controlling interest	25f	95,985	5,793,659
Total equity		7,140,395	8,449,784

Total liabilities and equity		43,844,067	36,626,337

The notes are an integral part of these condensed consolidated interim financial statements.

Inter & Co, Inc.

Statements of income for the three- and nine-month periods ended September 30, 2022 and 2021

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

		Three-month period		Nine-month period
	Note	09/30/2022	09/30/2021	09/30/2022	09/30/2021

Interest income		788,343	367,406	1,931,815	962,070
Interest expenses		(579,678)	(138,587)	(1,381,490)	(290,407)
Net interest income	26	208,665	228,819	550,325	671,663

Revenues from services and commissions		248,862	149,283	693,596	361,159
Expenses from services and commissions		(31,833)	(26,430)	(94,303)	(71,550)
Net result from services and commissions	27	217,029	122,853	599,293	289,609

Income from securities	12	340,982	228,420	1,095,841	423,150
Net gains / (losses) from derivatives		5,941	(9,869)	13,920	(53,566)
Other revenues	28a	77,687	36,287	301,466	159,834
Revenues		850,304	606,510	2,560,845	1,490,690

Impairment losses on financial assets	29	(263,113)	(138,005)	(818,523)	(412,115)
Personnel expense	30	(176,232)	(121,250)	(493,818)	(296,157)
Depreciation and amortization		(35,620)	(30,883)	(107,609)	(75,387)
Other administrative expenses	31	(441,490)	(276,001)	(1,285,207)	(825,767)
Total other expenses (net of other revenues)		(66,151)	40,371	(144,312)	(118,736)

Income from equity interests in affiliates	13	(3,892)	(5,454)	(13,954)	(1,561)
Profit / (loss) before income tax		(70,043)	34,917	(158,266)	(120,297)

Current income tax and social contribution	32	(11,165)	(17,573)	(96,428)	(34,326)
Deferred income tax and social contribution	32	51,613	17,004	211,802	155,779
Income tax benefit		40,448	(569)	115,374	121,453

Profit / (loss) for the period		(29,595)	34,348	(42,892)	1,156

Profit attributable to:
Owners of the Company		(30,008)	35,029	(43,326)	14,341
Non-controlling interest		413	(682)	434	(13,185)

Earnings per share (in Brazilian Reais – BRL)
Basic and diluted earnings per share	25e	(0.0733)	0.0851	(0.1063)	0.0029

The notes are an integral part of these condensed consolidated interim financial statements.

Inter & Co, Inc.

Statements of comprehensive income

For the three- and nine-month periods ended September 30, 2022 and 2021

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

	Three-month period		Nine-month period
	09/30/2022	09/30/2021	09/30/2022	09/30/2021

Profit (loss) for the period	(29,595)	34,347	(42,892)	1,156

Other comprehensive income
Items that are or may be reclassified subsequently to the statement of income:

Result from fair value measurement of financial assets	94,465	(228,177)	(139,394)	(416,068)
Exchange variation result	-	-	(10,671)	-
Effects of corporate reorganization in non-controlling interest without a change in control	(51,955)	(29,843)	(665,673)	66,535
Related tax	(59,715)	228,177	62,233	274,756
Other comprehensive income for the period, net of income tax and social contribution	(17,205)	(29,843)	(753,505)	(74,777)

Total comprehensive income for the period	(46,800)	4,504	(796,397)	(73,621)
Allocation of comprehensive income
Part of comprehensive income to owners of the company	(47,213)	5,186	(796,831)	(60,436)
Part of comprehensive income to non-controlling interest	413	(682)	434	(13,185)

The notes are an integral part of these condensed consolidated interim financial statements.

Inter & Co, Inc.

Statements of cash flows

For the periods ended September 30, 2022 and 2021

(Amounts in thousands of Brazilian reais)

	Nine-month period
	09/30/2022	09/30/2021
Operating activities
Profit (loss) for the period	(42,892)	1,156
Adjustments to profit (loss)
Depreciation and amortization	107,609	75,387
Result of equity interests in affiliates	13,954	1,561
Impairment losses on financial assets	818,523	412,115
Expenses with provisions and contingent provisions	21,713	30,851
Deferred income tax and social contribution	(211,802)	(155,779)
Current income tax and social contribution	96,428	34,326
Provisions/(reversal) for loss of assets	23,363	(5,380)
Other capital gains (losses)	(63,565)	(25,002)
Provision for performance income	(123,702)	(93,462)
Result o foreign exchange variation	(321)	(2,163)

(Increase)/ decrease in:
Compulsory deposits at Central Bank of Brazil	(286,755)	(509,548)
Loans and advances to customers	(4,103,996)	(6,205,949)
Amounts due from financial institutions	(1,365,638)	(1,018,234)
Securities	(619,343)	(539,086)
Derivative financial assets	86,367	19,870
Non-current assets held for sale	(35,910)	(9,622)
Other assets	(296,504)	(318,234)
Increase/ (decrease) in:
Liabilities with financial institutions	2,008,000	2,438,822
Liabilities with customers	3,118,483	4,656,038
Securities issued	3,344,826	1,363,884
Derivative financial liabilities	(26,198)	24,601
Borrowing and onlending	8,048	(1,825)
Tax liabilities	26,197	23,730
Provisions	(15,342)	(12,615)
Other liabilities	17,687	94,342
	2,499,230	279,784
Income tax paid	(47,305)	(31,617)

Net cash from operating activities	2,451,925	248,167

Cash flow from investing activities
Acquisition of subsidiaries	-	(91,209)
Acquisition of property and equipment	(33,940)	(13,912)
Proceeds from sale of property and equipment	1,516	461
Net acquisition of property and equipment from subsidiaries	(5,966)	(1,164)
Acquisition of intangible assets	(275,147)	(232,719)
Proceeds of intangibles	77,805	47,567
Net acquisition of intangible assets from subsidiaries	(626,389)	(1,061)
Acquisition of financial assets at FVOCI	(7,306,475)	(20,210,468)
Proceeds from sale of financial assets at FVOCI	7,663,646	13,699,001
Acquisition of financial assets at FVTPL	(530,160)	(2,038,017)
Proceeds from sale of financial assets at FVTPL	99,393	1,494,755
Net cash used in financing activities	(935,717)	(7,346,766)

Cash flow from financing activities
Repurchase of treasury shares	-	(29,322)
Dividends and interest on equity paid	-	(19,680)
Effects of corporate reorganization in non-controlling interest without a change in control	(1,178,665)	5,442,525
Net cash from financing activities	(1,178,665)	5,393,523

(Decrease)/ Increase in cash and cash equivalents	337,543	(1,705,076)
Cash and cash equivalents at the beginning of the period	500,446	2,154,687
Effect of the exchange rate variation on cash and cash equivalents	321	2,163
Cash and cash equivalents at September 30	838,310	451,774

The notes are an integral part of these condensed consolidated interim financial statements.

Inter & Co, Inc.

Statements of changes in equity for the periods ended September 30, 2022 and 2021

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

	Share capital	Reserves	Other comprehensive income	Retained earnings	Treasury shares	Equity attributable to owners of the Company	Non-controlling interest	Total equity
Balances on January 1, 2021 - Banco Inter	3,216,455	150,709	25,991	-	(117,521)	3,275,634	48,581	3,324,215
Profit (loss) for the period	-	-	-	5,967	-	5,967	8,502	14,469
Contributions and distributions
Constitution/reversal of reserves	-	(39,179)	-	(5,967)	-	(45,146)	-	(45,146)
Dividends and interest on equity	-	(3,122)	-	-	-	(3,122)	(7,251)	(10,373)
Sale of treasury shares	-	(74,119)	-	-	81,159	7,040	-	7,040
Resources from non-controlling interest	-	-	-	-	-	-	33,998	33,998
Net change in fair value - financial assets at FVOCI	-	-	(141,312)	-	-	(141,312)	-	(141,312)
Balances on May 6, 2021 – Banco Inter	3,216,455	34,289	(115,321)	-	(36,362)	3,099,061	83,830	3,182,891

Corporate restructuring on May 7, 2021	(3,216,442)	1,150,944	74,555	-	36,362	(1,954,581)	1,954,581	-

Balances on May 7, 2021 – Inter & Co, Inc.	13	1,185,233	(40,766)	-	-	1,144,480	2,038,411	3,182,891
Profit (loss) for the period				8,374		8,374	(21,687)	(13,313)
Allocation from investee
Other comprehensive income	-	-	(8,020)	-	-	(8,020)	(79,506)	(87,526)
Treasury shares	-	-	-	-	-	-	(36,362)	(36,362)
Contributions and distributions	-	8,374	-	(8,374)	-	-	-	-
Dividends and interest on equity	-	-	-	-	-	-	(9,307)	(9,307)
Resources from non-controlling interest, including capital increase	-	1,539,616	-	-	-	1,539,616	3,962,328	5,501,944
Balances on September 30, 2021 - Inter & Co, Inc.	13	2,733,223	(48,786)	-	-	2,684,450	5,853,877	8,538,327

Balances on January 1, 2022 - Inter & Co, Inc.	13	2,728,396	(72,284)	-	-	2,656,125	5,793,659	8,449,784
Profit (loss) for the period	-	-	-	(43,326)	-	(43,326)	434	(42,892)
Contributions and distributions		-
Constitution/Reversion of reserves	-	(43,326)	-	43,326	-	-	-	-
Exchange variation adjustment	-	-	(10,671)	-	-	(10,671)	-	(10,671)
Net change in fair value - financial assets at FVTOCI	-	-	(77,161)	-	-	(77,161)	-	(77,161)
Effects of corporate reorganization in non-controlling interest without a change in control	-	5,185,116	(665,673)	-	-	4,519,443	(5,698,108)	(1,178,665)

Balances on September 30, 2022 - Inter & Co, Inc.	13	7,870,186	(825,789)	-	-	7,044,410	95,985	7,140,395

The notes are an integral part of this condensed consolidated interim financial statements.

Inter & Co, Inc.

Statements of added value for the periods ended September 30, 2022 and 2021

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

		09/30/2022	09/30/2021

Revenues		3,218,115	1,440,532
Interest income		3,041,576	1,331,654
Revenues from services and commissions		693,596	361,159
Impairment losses on financial assets		(818,523)	(412,115)
Other revenues		301,466	159,834

Expenses		(1,475,793)	(361,957)
Interest		(1,475,793)	(361,957)

Input from third parties		(1,070,578)	(707,962)
Materials, energy and others		(271,094)	(156,964)
Third-party services		(158,543)	(105,781)
Others		(640,941)	(445,217)
Telecommunications and data processing		(518,231)	(346,096)
Publicity and advertising		(122,710)	(99,121)

Gross added value		671,744	370,613

Deduction		(107,609)	(75,387)
Depreciation and amortization		(107,609)	(75,387)

Net added value produced by the company		564,135	295,226

Added value received in transfer		(13,954)	(1,561)
Income from equity interests in affiliates		(13,954)	(1,561)

Total added value to distribute		550,181	293,665

Distribution of added value		550,181	293,665
Personnel and tax		425,876	254,084
Remuneration		309,633	201,781
Benefits		97,242	39,862
FGTS		19,001	12,441
Taxes, contributions and fees		133,225	19,503
Federal		102,294	2,110
Municipal		30,931	17,393
State		1,326	-
Rent		32,646	18,922
Profit (losses) retained/reversed in the period	25	(43,326)	14,341
Non-controlling interest	25	434	(13,185)

The notes are an integral part of these condensed consolidated interim financial statements.

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

Notes to the condensed consolidated interim financial statements

(Amounts in thousands of Brazilian reais)

1	Activity and structure of Inter and its subsidiaries

Inter & Co, Inc., formerly Inter Platform Inc, is a company in the Cayman Island with limited liability, incorporated on January 26, 2021. On May 7, 2021, Inter Platform Inc (the Company and, together with its consolidated companies, the Group) completed the first step of its corporate reorganization process (the Restructuring) involving two new holding companies (non-operating) with no assets, liabilities or contingencies: the Company, located in the Cayman Islands, and Inter Holding Financeira S.A. (HoldFin), located in Brazil. In the first step of the restructuring, the Company and HoldFin have become the indirect and direct controlling entities of Banco Inter, respectively, thus the ultimate shareholders of Banco Inter and its voting and non-voting interest were the same before and after the restructuring. On April 8, 2022, the corporate name of "Inter Platform Inc" was changed to "Inter & Co, Inc" through an official company registration in the Cayman Islands.

In the second quarter of 2022, the shareholders of Inter approved the proposal for migration of the shares from B3 to the American stock exchange (Nasdaq). At the Extraordinary General Meeting (EGM) held on May 12, 2022, more than 85% of the attendees approved the corporate reorganization project, which allowed the Company’s listing in the United States.

This corporate reorganization project aimed to transfer the shareholding base from Banco Inter to Inter & Co, Inc. and, consequently, the compliance with certain corporate stages was necessary, as summarized below:

- On June 13, 2022, the Company received a contribution from one of the shareholders of Banco Inter through a capital increase made to New LA BI LLC (“New LLC”), a non-operating company with no assets, liabilities or contingencies, which became the holder of the shares of Banco Inter on that date. On the same date, New LLC became the holder of 100% of the shares of HoldFin.

- On June 20, 2022, HoldFin incorporated the free float shares held by the other shareholders of Banco Inter, through delivery of redeemable preferred shares of its own issue. These redeemable shares were repurchased on the same date by HoldFin, upon a cash-out payment and delivery of BDRs (Brazilian Depositary Receipts) backed by shares of Inter & Co previously contributed to HoldFin by the Company. After the afore mentioned movements, HoldFin. became the holder of 100% of the outstanding shares of Banco Inter S.A.

- On September 14, 2022, the Registry of Commerce of the State of Minas Gerais approved the incorporation of Inter&Co Participações Ltda., a wholly-owned subsidiary of Inter&Co, Inc. (Cayman). Additionally, Inter & Co Securities LLC was created in the US jurisdiction, both of which are in a non-operating stage, with no

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

assets, liabilities or contingencies. See illustration (second stage of the corporate reorganization).

After the conclusion of the previously described stages, Inter & Co, Inc. (INTR) started trading shares on Nasdaq, in New York, on June 23, 2022.

Inter & Co, Inc. accounted for the Restructuring as a common control transaction, and the pre-restructuring carrying amounts of Banco Inter were included in the Inter & Co, Inc consolidated financial statements at book value (carryover basis). Thus, these condensed consolidated interim financial statements reflect:

For the period ended September 30, 2021

The contribution of Banco Inter consolidated assets and liabilities at book value on May 7, 2021;

The recognition of non-controlling interest on May 7, 2021 relating to the Banco Inter shareholders that are not part of the Controlling Shareholder and Others, measured at the proportion of their economic interest in the book value of the consolidated net assets of Banco Inter at that date;

The consolidated statements of income of Banco Inter from January 1, 2021 to May 6, 2021 aggregated with the Group’s consolidated statements of income from May 7, 2021 to September 30, 2021;

The consolidated cash flows of Banco Inter from January 1, 2021 to May 6, 2021 aggregated with the consolidated cash flows of the Group from May 7, 2021 to September 30, 2021;

The Group’s consolidated balance sheet as of September 30, 2021;

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

For the period ended September 30, 2022

The historical operating results, cash flows and financial position of the Group, based on the balances of Banco Inter and its subsidiaries, which are operating companies.

The number of common shares issued by Inter & Co, Inc. is reflected retroactively to September 30, 2021, for purposes of calculating earnings per share.

The Group’s objective is to act as a multi-service digital bank for individuals and companies, and its main activities include real estate credit, payroll loans, corporate credit, rural credit, credit card operations, current accounts, investments, insurance services, and a marketplace for non-financial services provided through its subsidiaries. The operations are carried out in the context of the group of companies, operating in the market in an integrated manner.

2	Preparation basis

Compliance statement

The condensed consolidated interim financial statements of Inter & Co, Inc. have been prepared in accordance with IAS 34 - Interim Financial Reporting issued by the International Accounting Standards Board (IASB).

These condensed consolidated interim financial statements were authorized for issue by the Company’s Board of Directors on November 7, 2022.

Functional and presentation currency

These condensed consolidated interim financial statements are presented in Brazilian Reais (BRL or R$), the Group’s functional currency. All balances have been rounded to the nearest thousand, unless otherwise noted.

Use of estimates and judgments

In preparing these condensed consolidated interim financial statements, management has made judgments, estimates and assumptions that affect the application of the accounting policies of the Group and the reported amounts of assets, liabilities, revenues and expenses. Actual results may differ from such estimates.

Judgments

The information on judgments made in the application of the accounting policies that have significant effects on the amounts recognized in the financial statements is included in the following notes:

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

Classification of financial assets (see notes 6 and 7) - evaluation of the business model in which the assets are held and evaluation if the contractual terms of the financial asset relate only to payments of principal and interest (SPPI test).

The measurement of the provision for expected credit losses on financial assets measured at amortized cost and fair value through other comprehensive income (FVOCI) requires the use of complex quantitative models and assumptions about future economic conditions and credit behavior. Several significant judgments are also needed to apply the accounting requirements for measuring expected credit loss, such as: determining the criteria to evaluate the significant increase in credit risk; selecting quantitative models and appropriate assumptions for measuring expected credit loss; and establishing different prospective scenarios and their weighting, among others.

Consolidation (note 4.1): whether Inter has de facto control over an investee;

Equity accounted investees (Note 14): whether Inter has significant influence over an investee.

(i) Uncertainties related to assumptions and estimates

Information on the uncertainties related to assumptions and estimates with a significant risk of resulting in a material adjustment in accounting balances of assets and liabilities are included in the following notes:

Deferred tax assets (see note 32c) - availability of future taxable income.

Fair value of financial instruments, including derivative financial instruments (see notes 6, 7 and 12) - Determination of the fair value of financial instruments with significant non-observable inputs

Expected credit loss (see notes 6 and 10b) - determination of inputs into the ECL measurement model, including key assumptions used in estimating recoverable cash flows and incorporation of forward-looking information.

Note 23 – recognition and measurement of provisions and contingencies: key assumptions about the likelihood and magnitude of cash outflows (see note 23).

Fair value of the acquired assets in business combinations (see Note 4.2).

3	Changes to significant accounting policies

Severeal new standards, amendments and interpretations became effective from January 1, 2022, however, their adoption did not have a significant effect on the Group’s condensed consolidated interim financial statements. Below are presented the new and not yet effective standards:

New and not yet effective accounting standards

Amendments to IAS 8 - Definition of accounting estimates

Disclosure of Accounting Policies (Amendments to IAS 1)

Proposed amendments to IAS 21 - Lack of interchangeability

Amendments to IAS 12 - Deferred tax related to assets and liabilities arising from a single transaction

IFRS 17 Insurance contracts - IFRS 17 will be effective for annual reporting periods beginning on or after January 1, 2023.

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

The new and revised pronouncements, when adopted, will not have a material impact on the condensed consolidated interim financial statements.

4	Significant accounting policies

Except for the changes in the items described below (4.1, 4.2 and 4.3), the accounting policies applied in these condensed consolidated interim financial statements are the same applied in the consolidated financial statements of Inter & Co, Inc. for the year ended December 31, 2021, and, therefore, should be analyzed together with such statements. Part of the balances included in these financial statements have been rounded. Thus, the amounts indicated as total in some of the tables may not represent the arithmetic sum of the preceding numbers.

4.1.

Basis of consolidation

Companies under Inter’s control are classified as subsidiaries. The Company controls an entity when it is exposed to or has rights to the variable returns arising from its involvement with the entity and has the ability to use this power to affect the amount of their returns.

The subsidiaries are consolidated in full as from the date the Company gains control of their activities until the date on which control ceases to exist. With regard to the significant restrictions on the Group’s ability to access or use the assets and settle the Group's liabilities, only the regulatory restrictions, linked to the compulsory reserves maintained in compliance with the requirement of the Central Bank of Brazil, which restrict the ability of subsidiaries of Banco Inter to transfer cash to other entities within the economic group. There are no other legal or contractual restrictions and no guarantees or other requirements that may restrict that dividends and other capital distributions are paid or that loans and advances are made or paid to (or by) other entities within the economic group.

Additionally, Resolution No. 4,693 of the National Monetary Council stipulates limits on credit operations between related parties, the amounts of which cannot represent more than 10% of the institutions adjusted equity, less the value of the interests held by such institution in other institutions authorized to operate bythe Central Bank and in financial institutions abroad, as well as the individual maximum limits of (i) 1% for hiring natural personnel; and (ii) 5% for contracting with legal entities.

The following table shows the subsidiaries in each year:

		Share in the capital (%)
Entity	Branch of Activity	09/30/2022	12/31/2021
Direct subsidiaries
New LA BI LLC.	Holding Company	100.0%	-
Inter & Co Participações Ltda.	Holding Company	100.0%	-

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

Inter & Co Securities LLC.

Holding Company

100.0%

		Share in the capital (%)
Entity	Branch of Activity	09/30/2022	12/31/2021
Indirect subsidiaries
Inter Holding Financeira S.A.	Holding Company	100.0%	100%
Banco Inter S.A.	Multiple Bank	100.0%	31.4%
Inter Distribuidora de Títulos e Valores Mobiliários Ltda.	TVM Distributor	98.3%	30.9%
Inter Digital Corretora e Consultoria de Seguros Ltda.	Insurance broker	60.0%	18.8%
Inter Marketplace Ltda.	Marketplace	100.0%	31.4%
Inter Asset Holding S.A.	Asset management	70.0%	22.0%
Inter Titulos Fundo de Investimento	Investment Fund	98.3%	30.7%
BMA Inter Fundo De Investimento Em Direitos Creditórios Multissetorial	Investment Fund	90.7%	28.3%
TBI Fundo De Investimento Renda Fixa Credito Privado	Investment Fund	100.0%	31.4%
TBI Fundo De Investimento Crédito Privado Investimento Exterior	Investment Fund	100.0%	31.4%
IM Designs Desenvolvimento de Software Ltda.	Provision of services	50.0%	15.7%
Acerto Cobrança e Informações Cadastrais S.A.	Provision of services	60.0%	18.9%
Inter & Co Payments, Inc.	Provision of services	100.0%	-
Inter Asset Gestão de Recursos Ltda	Asset management	70.0%	22.0%
Inter Café Ltda.	Provision of services	100.0%	31.4%
Inter Boutiques Ltda.	Provision of services	100.0%	31.4%
Inter Food Ltda.	Provision of services	70.0%	22.0%

Non-controlling interest

The Group recognizes the portion related to non-controlling interests in equity in the consolidated balance sheet. In transactions involving purchase of interests with non-controlling shareholders, the difference between the amount paid and the interest acquired is recorded in equity. Gains or losses on sales to non-controlling shareholders are also recorded in equity. The participation percentages as of December 31, 2021 were impacted by the corporate reorganization and show the indirect share in the capital held by Inter & Co, Inc. The Company holds more than 50% of the voting capital of all the indirect subsidiaries.

Inter & Co, Inc.

Condensed consolidated interim financial statements as of September 30,
2022

The following table shows the amounts segregated of each subsidiary:

	Assets		Liabilities		Equity		Other comprehensive income		Revenue		Profit (loss) for the period		Dividends paid
	09/30/2022	12/31/2021	09/30/2022	12/31/2021	09/30/2022	12/31/2021	09/30/2022	12/31/2021	09/30/2022	09/30/2021	09/30/2022	09/30/2021	09/30/2022	12/31/2021
Direct subsidiaries
New LA BI LLC	7,041,619	-	-	-	7,041,619	-	4,470,232	-	-	-	(46,125)	-	-	-
Indirect subsidiaries
Inter Holding Financeira S.A.	8,260,339	2,670,530	1,218,720	14,405	7,041,619	2,656,124	(203,278)	-	-	18,780	(46,125)	10,251	-	-
Banco Inter S.A.	43,557,305	36,433,640	35,205,907	27,945,001	8,351,398	8,488,640	(281,522)	(212,195)	4,177,540	2,136,254	(38,607)	38,723	(38,056)	(41,491)
Inter Distribuidora de Títulos e Valores Mobiliários Ltda.	458,146	368,212	384,625	317,647	73,522	50,565	-	-	101,610	56,280	23,310	12,018	-	-
Inter Digital Corretora e Consultoria de Seguros Ltda.	125,989	124,671	87,268	69,890	38,721	54,781	-	-	98,802	63,700	48,471	46,132	-	(35,647)
Inter Marketplace Ltda.	355,160	231,051	104,483	90,756	250,677	140,295	-	-	251,945	150,493	111,101	73,535	-	-
Inter Asset Holding S.A.	4,486	7,148	1	3,098	4,485	4,050	-	-	7,127	6,536	4,980	1,769	(1,666)	-
Inter Titulos Fundo de Investimento	50,644	50,195	405	304	50,240	49,891	-	-	11,718	16,873	3,609	1,432	-	-
BMA Inter Fundo De Investimento Em Direitos Creditórios Multissetorial	519,889	389,497	2,647	1,339	517,242	388,158	-	-	70,313	9,976	57,342	8,068	-	-
Inter Infra Fic Infra Renda Fixa Crédito Privado	-	-	-	-	-	-	-	-	-	25,542	-	241	-	-
TBI Fundo De Investimento Renda Fixa Credito Privado	489,966	443,843	178	154	489,788	443,689	-	-	59,546	112,551	46,099	12,266	-	-
TBI Fundo De Investimento Crédito Privado Investimento Exterior	14,613	14,725	17	63	14,596	14,662	-	-	18,895	-	(66)	-	-	-
IM Designs Desenvolvimento de Software Ltda.	18,490	6,145	962	573	17,528	5,572	-	-	8,592	1,552	2,289	(659)	-	-
Acerto Cobrança e Informações Cadastrais S.A.	19,316	18,862	3,213	1,815	16,103	17,047	-	-	16,174	7,987	(944)	(2,435)	-	-
Inter & Co Payments, Inc.	184,693	-	126,848	-	57,845	-	(1,275)	-	43,739	-	(22,572)	-	-	-
Inter Asset Gestão de Recursos Ltda	8,251	7,128	3,812	3,097	4,439	4,031	-	-	12,686	10,244	7,132	1,704	-	-
Inter Café Ltda.	2,266	553	1,846	1,187	420	(634)	-	-	5,751	-	953	-	-	-
Inter Boutiques Ltda.	2,733	2,198	1,592	1,822	1,140	377	-	-	5,491	-	484	-	-	-
Inter Food Ltda.	47,804	2,729	2,596	333	45,207	2,396	-	-	57,466	617	42,905	(171)	-	-

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

ii.

Balances and transactions eliminated on consolidation

Intra-group balances and transactions, including any unrealized gains or losses arising from intra-group transactions, are eliminated in the consolidation process. Unrealized losses are eliminated only to the extent there is no evidence of impairment.

4.2.

Business combination

The cost of an acquisition is measured as the fair value of assets transferred, equity instruments issued, and liabilities incurred or assumed on the acquisition date. This amount is recorded in advance, at the book value, up to the conclusion of the Purchase Price Allocation (PPA).

Inter & Co Payments, Inc (USEND)

On January 14, 2022, Banco Inter S.A. closed the acquisition of 100% of the capital of the subsidiary Inter & Co Payments, Inc, formerly Pronto Money Transfer Inc. (USEND), whose company name was changed on July , 2022. 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. Inter & Co Payments is a US company over 16 years of experience in foreign exchange and financial services, offering, among other products, a digital Global Account solution to perform 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 customers 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 customers, 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.

Consideration transferred

The following table summarizes the amounts of consideration transferred: In thousands of Brazilian reais

Cash	631,901
Capital increase	37,644
Amounts payable (a)	89,434
Total consideration transferred	758,979

(a) Part of the amounts initially recorded at the acquisition date will be paid in the years 2022, 2023 and 2024.

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

Identifiable assets acquired, liabilities assumed and goodwill

The book value of identifiable assets and liabilities of USEND at the acquisition date is as follows:

In thousands of Brazilian reais

Assets	236,087
Cash and cash equivalents (note 8)	160,556
Loans and advances to financial institutions (note 10)	17,861
Securities (note 11)	4,486
Property and equipment (note 15)	6,227
Other assets (note 17)	46,957

Liabilities	(156,642)
Borrowing and onlending (note 21)	(2)
Other liabilities (note 24)	(156,640)

Total net identifiable assets	79,445

Goodwill on acquisition	679,534
Total consideration	758,979

(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, up to the date of these interim financial statements, the study is still in the preparation phase. The preliminary goodwill in the amount of R$ 679,534 resulting from the acquisition comprises the value of future economic benefits arising from the synergies from part of our internationalization strategy that will open our way to the global market even more, facilitating our operations abroad.

ii.

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.

iii.

Contribution to the Group's results

The contributions to the results for the period can be seen in note 4.1, “Revenues” column.

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

Inter Café Ltda.

On December 20, 2021, Marketplace acquired Inter Café, a company that provides cafeteria services selling food prepared for consumption at the cafeteria.

Consideration transferred

The consideration transferred for the acquisition of Inter Café was R$ 10 at fair value and was paid in a single payment.

ii.

Identifiable assets acquired, liabilities assumed and goodwill

The book value of identifiable assets and liabilities of Inter Café at the acquisition date is as follows:


Assets	553
Cash and cash equivalents (note 8)	51
Property and equipment (note 15)	244
Other assets (note 17)	258

Liabilities	(1,178)
Other liabilities (note 24)	(1,178)

Total net identifiable assets	(625)

Goodwill on acquisition	635
Total consideration	10

Inter Boutiques Ltda.

On December 20, 2021, Marketplace acquired Inter Boutiques, which is engaged in sale on the internet, intermediation of services and business in general; retail trade in department stores and holding of ownership interests in other companies a partner, shareholder or unitholder.

Consideration transferred

The consideration transferred for the acquisition of Inter Boutiques was R$ 10 at fair value and was paid in a single payment.

ii.

Identifiable assets acquired, liabilities assumed and goodwill

The book value of identifiable assets and liabilities of Inter Boutiques at the acquisition date is as follows:

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

In thousands of Brazilian reais

Assets	2,198
Cash and cash equivalents (note 8)	21
Other assets (note 17)	2,177

Liabilities	(1,822)
Other liabilities (note 24)	(1,822)

Total net identifiable assets	377

Goodwill on acquisition	(367)
Total consideration	10

IM Designs Desenvolvimento de Software Ltda.

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, augmented reality and mixed reality.

Consideration transferred

The consideration transferred for the acquisition of IM Designs was R$ 15,000 of which R$ 10,000 has already been paid and another R$ 5,000 is payable.

ii.

Identifiable assets acquired, liabilities assumed and goodwill

The book value of identifiable assets and liabilities of IM Designs at the acquisition date is as follows:

In thousands of Brazilian reais

Assets	652
Cash and cash equivalents (note 5)	230
Property and equipment (note 15)	112
Other assets (note 17)	310

Liabilities	(188)
Other liabilities (note 24)	(188)

Total net identifiable assets	464

Goodwill on acquisition	14,536
Total	15,000

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

4.3.

Foreign operations

The assets and liabilities of foreign operations are translated into Real at the exchange rates at the reporting date. Revenues and expenses from foreign operations are converted into real using average exchange rates for a monthly period, unless material changes are observed in the investee’s operations or in the fluctuation of exchange rates. The differences in foreign currencies generated for the translation into the presentation currency are recognized in other comprehensive income and accumulated in the equity valuation adjustments in equity account.

When an entity abroad is written off in whole or in part and results in the loss of control, significant influence or joint control, the accumulated amount of exchange rate changes related to that entity abroad is reclassified to profit (loss) as part of the gain or loss on the write-off. If the Group writes off part of its interest in a subsidiary, but maintains control, the relevant proportion of the accumulated value will be assigned to non-controlling shareholders.

5	Operating segments

Operating segments are disclosed based on the internal disclosures that are used by the chief operating decision maker to allocate resources and to assess performance. The chief operating decision maker, responsible for allocating resources, evaluating the performance of the operating segments and responsible for making strategic decisions for the Group, is the Board of Directors.

The operations of the Group are divided into five reportable segments: Banking; Inter Invest; Inter Seguros; Inter Shop and others.

The accounting policies applied in the financial information reported by operating segments are based on the accounting practices adopted in Brazil, and therefore differ from those described in the significant accounting policies in note 4. Banking and security segment are composed by financial institutions authorized to operate by the Central Bank of Brazil. The significant differences that impact profit for the period of the segments relate to:

Expected credit loss on securities at FVOCI

For segment reporting purposes, the expenses for expected credit loss on securities at FVOCI (fair value through other comprehensive income) are recognized in shareholders’ equity.

ii.

Deferral of financial charges

For segment reporting purposes commissions paid to correspondents for the origination of financial assets are recognized in the statement of income at the time of origination of the transaction.

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

iii.

Contract revenues

For segment reporting purposes, performance-based amounts due following the sale of non-controlling interest are recognized only when the performance criterion is met.

Profit by operating segment

Each operating segment is comprised of one or more legal entities. The measurement of profit by operating segment takes into account all revenues and expenses recognized by the companies that make up each segment.

Transactions between segments are carried out under terms and rates compatible with those practiced with third parties, where applicable. The Group does not have any single customer accounting for more than 10% of its total net revenue.

Banking segment

The banking segment comprises a wide range of banking products and services, such as checking accounts, cards, deposits, loans and advances and other services, which are available to the customers primarily by means of Inter’s mobile application. Part of this segment also comprises the debt collection service. This segment offers foreign exchange and financial services, as well as a Global Account digital solution for money remittances between countries, among others.

Inter Invest segment

This segment is responsible for operations inherent to the purchase, sale and custody of securities, structuring and distribution of securities in the capital market and operations related 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.

Inter Seguros segment

This segment offers insurance products underwritten by insurance companies with whom Inter has an agreement (‘partner insurance companies’), including warranties, life, property and automobile insurance and pension products, as well as consortium products provided by a third party with whom Inter has a commercial agreement. The income from brokerage commissions is recognized in the income statement when services are provided. The income is presented net of deductions, including tax on sales.

Inter Shop segment

The Group provides a digital platform through which companies with whom it has an agreement (‘partners’) offer goods and/or services to its customers. The Group acts as an agent in these transactions and recognizes commission income when the intermediation service is provided.

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

Others

Comprises investment funds that are consolidated by Banco Inter and the software development segment.

Inter & Co, Inc.

Condensed consolidated interim financial statements as of September 30, 2022

Segment information

	09/30/2022
	Banking	Inter Invest	Inter Seguros	Inter Shop	Total reported	Others	Combined	Eliminations and adjustments	Consolidated
Interest income	1,834,302	3,101	25	4	1,837,432	70,727	1,908,159	23,656	1,931,815
Interest expenses	(1,326,235)	(12,181)	(67)	-	(1,338,483)	(55,145)	(1,393,628)	12,138	(1,381,490)
Net interest income	508,067	(9,080)	(42)	4	498,949	15,582	514,531	35,794	550,325
Revenues from services and commissions	342,284	70,945	56,424	218,661	688,314	6,854	695,168	(1,572)	693,596
Expenses from services and commissions	(91,045)	-	-	(4)	(91,049)	(4,558)	(95,607)	1,304	(94,303)
Net result from services and commissions	251,239	70,945	56,424	218,657	597,265	2,296	599,561	(268)	599,293
Income from securities	1,120,281	18,103	977	10,108	1,149,469	48,370	1,197,839	(101,998)	1,095,841
Net gains / (losses) from derivatives	12,236	-	-	-	12,236	1,684	13,920	-	13,920
Other revenues	379,465	21,670	38,394	43,106	482,635	(85,441)	397,194	(95,728)	301,466
Net revenues	2,271,288	101,638	95,753	271,875	2,740,554	(17,509)	2,723,045	(162,200)	2,560,845
Impairment losses on financial assets	(751,649)	855	-	-	(750,794)	(117)	(750,911)	(67,612)	(818,523)
Personnel expenses	(458,927)	(11,766)	(5,542)	(13,678)	(489,913)	(3,905)	(493,818)	-	(493,818)
Depreciation and amortization	(151,347)	(2,041)	(447)	(3,176)	(157,011)	(88)	(157,099)	49,490	(107,609)
Other administrative expenses	(1,145,938)	(36,148)	(16,677)	(52,145)	(1,250,908)	(11,482)	(1,262,390)	(22,817)	(1,285,207)
Income from equity interests in affiliates	(13,954)	-	-	-	(13,954)	-	(13,954)	-	(13,954)
Profit (loss) before taxes	(250,527)	52,538	73,087	202,876	77,974	(33,101)	44,873	(203,139)	(158,266)
Current income tax and social contribution	(5,709)	(17,326)	(24,853)	(47,434)	(95,322)	(1,106)	(96,428)	-	(96,428)
Deferred income tax and social contribution	194,116	210	238	-	194,564	14,554	209,118	2,684	211,802
Profit (loss) for the period	(62,120)	35,422	48,472	155,442	177,216	(19,653)	157,563	(200,455)	(42,892)

Total assets	43,761,314	470,883	125,989	407,963	44,766,149	23,447,162	68,213,311	(24,369,244)	43,844,067
Total liabilities	35,335,970	388,437	87,268	110,518	35,922,193	1,223,465	37,145,658	(441,986)	36,703,672
Total equity	8,425,344	82,446	38,721	297,445	8,843,956	22,223,697	31,067,653	(23,927,258)	7,140,395

Inter & Co, Inc.

Condensed consolidated interim financial statements as of September 30, 2022

	09/30/2021
	Banking	Inter Invest	Inter Seguros	Inter Shop	Total reported	Others	Combined	Eliminations and adjustments	Consolidated
Interest income	941,816	189	-	-	942,005	23,798	965,803	(3,733)	962,070
Interest expenses	(292,681)	(232)	-	-	(292,913)	-	(292,913)	2,506	(290,407)
Net interest income	649,135	(43)	-	-	649,092	23,798	672,890	(1,227)	671,663

Revenues from services and commissions	162,975	43,748	37,335	115,368	359,426	1,733	361,159	-	361,159
Expenses from services and commissions	(71,550)	-	-	-	(71,550)	-	(71,550)	-	(71,550)
Net result from services and commissions	91,425	43,748	37,335	115,368	287,876	1,733	289,609	-	289,609

Income from securities	432,421	8,289	3,466	26	444,202	1,153	445,355	(22,205)	423,150
Net gains / (losses) from derivatives	(53,566)	-	-	-	(53,566)	-	(53,566)	-	(53,566)
Other revenues	242,839	17,615	22,602	471	283,527	18,774	302,301	(142,467)	159,834

Net revenues	1,362,254	69,609	63,403	115,865	1,611,131	45,458	1,656,589	(165,899)	1,490,690

Impairment losses on financial assets	(310,358)	-	-	-	(310,358)	-	(310,358)	(101,757)	(412,115)
Personnel expenses	(276,461)	(7,098)	(4,937)	(6,242)	(294,738)	(1,419)	(296,157)	-	(296,157)
Depreciation and amortization	(71,034)	(438)	(221)	(1,531)	(73,224)	(36)	(73,260)	(2,127)	(75,387)
Other administrative expenses	(775,020)	(29,223)	(4,392)	(18,308)	(826,943)	(10,719)	(837,662)	11,895	(825,767)
Income from equity interests in affiliates	(1,561)	-	-	-	(1,561)	-	(1,561)	-	(1,561)

Income (loss) before taxes	(72,180)	32,850	53,853	89,784	104,307	33,284	137,591	(257,888)	(120,297)

Current income tax and social contribution	-	(8,686)	(7,721)	(16,421)	(32,828)	(1,498)	(34,326)	-	(34,326)
Deferred income tax and social contribution	108,473	(1,200)	-	-	107,273	-	107,273	48,506	155,779
Profit (loss) for the period	36,293	22,964	46,132	73,363	178,752	31,786	210,538	(209,382)	1,156

Total assets	36,452,503	379,389	124,670	232,470	37,189,032	6,231,057	43,420,089	(6,793,752)	36,626,337
Total liabilities	27,946,815	320,743	69,890	90,756	28,428,204	16,838	28,445,042	(268,488)	28,176,553
Total equity	8,505,688	58,646	54,780	141,714	8,760,828	6,214,220	14,975,047	(6,525,263)	8,449,784

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

Reconciliation of the management income by segment with consolidated results according to IFRS

Profit (loss) for the period	09/30/2022	09/30/2021
Total of reportable segments	177,216	178,752
Others	(19,653)	31,786
Adjustments and eliminations	(200,455)	(209,382)
Consolidated profit (loss)	(42,892)	1,156

Assets	09/30/2022	12/31/2021
Total of reportable segments	44,766,149	37,189,032
Others	23,447,162	6,231,057
Adjustments and eliminations	(24,369,244)	(6,793,752)
Total consolidated assets	43.844.067	36,626,337

Liabilities
Total of reportable segments	35,922,193	28,428,204
Others	1,223,465	16,838
Adjustments and eliminations	(441,986)	(268,488)
Total consolidated liabilities	36,703,672	28,176,554

Equity
Total of reportable segments	8,843,956	8,760,828
Others	22,223,697	6,214,219
Adjustments and eliminations	(23,927,258)	(6,525,263)
Consolidated equity	7,140,395	8,449,784

6	Financial risk management

Risk management in the Group includes credit, market, liquidity and operational risks. Management activities are carried out by specific and specialized structures, according to the policies, strategies and processes described in each of said risks.

The model adopted by the Group involves a structure of areas and committees ensuring:

	●	Segregation of function;
	●	Specific structure for risk management;
	●	Defined management process;
	●	Decisions at various hierarchical levels;
	●	Clear norms and competence structure;
	●	Defined limits and margins; and
	●	Reference to best management practices
	●

Risk management practices adopted by the Group are designed to be in line with the recommendations of Pillar III of the Basel Committee for both qualitative and quantitative aspects.

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

Credit risk

There have been no material changes in the nature of our credit risk exposures, how they arise, or regarding the Group’s objectives, policies and processes for managing them. That said, the Group continued to improve its internal risk management processes in the quarter ended September 30, 2022.

The following tables present the loans and advances to customers by product and risk:

		09/30/2022
	Low Risk	High Risk	Total
Loans and advances to customers	19,346,295	1,658,973	21,005,268
	19,346,295	1,658,973	21,005,268
Amounts due from financial institutions
Amounts due from financial institutions	3,417,500	-	3,417,500
	3,417,500	-	3,417,500
Derivative financial liabilities
Swap	40,347	-	40,347
	40,347	-	40,347

		12/31/2021
	Low Risk	High Risk	Total
Loans and advances to customers	16,156,725	1,059,637	17,216,362
	16,156,725	1,059,637	17,216,362
Amounts due from financial institutions
Amounts due from financial institutions	2,051,862	-	2,051,862
	2,051,862	-	2,051,862
Derivative financial liabilities
Swap	66,549	-	66,549
	66,549	-	66,549

Maximum exposure to credit risk

	09/30/2022	12/31/2021
Exposure to credit risk
Balances of “Cash and cash equivalents”	838,310	500,446
Loans to financial institutions (see note 9)	1,029,786	298,104
Derivative financial liabilities	581	86,948
Loans and advances to customers	21,005,268	17,216,362
Other financial assets	13,373,465	12,757,687
Total exposure to credit risk	36,247,410	30,859,547

The portfolio of securities at FVOCI and amortized cost consists primarily of federal government bonds, considered to have a low credit risk.

Description of guarantees

Financial instruments subject to credit risk are subject to a thorough credit assessment prior to contracting and disbursement and throughout the term of operations. Credit analyses are based on understanding the operational characteristics of customers, their indebtedness capacity, considering cash flow, payment history, credit reputation and, secondarily, considering the guarantees that can back such operations.

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

Loans and advances to customers, as presented in Note 10, are mainly represented by the following operations:

	●	Working capital operations: are guaranteed by receivables, promissory notes, sureties provided by their owners and occasionally by property or other tangible assets, when applicable;
	●	Amortizations of payroll-deductible loans: represented mainly by payroll card and personal loans and credit. These are deducted directly from the borrowers’ pensions, income or salaries and settled directly by the entity responsible for making those payments (e.g. company or government body); The operations of FGTS anniversary withdrawal are guaranteed by transfer;
	●	Personal loans and credit cards: generally, they have no guarantees;
	●	Real estate financing: it is guaranteed by the financed property.

Repossessed collateral is generally sold at public auctions, free of any charges or encumbrances with no guarantee or with guarantee.

Guarantees of real estate loans and financing

The following tables structure the credit exposures of real estate loans and advances to retail customers by loan-to-value ratio (LTV) scales. LTV is calculated as the ratio of the gross loan amount or the committed amount of loans to the collateral value. Gross amounts exclude any provision for impairment. The assessment of collateral on real estate loans is based on the updated value, based on changes in real estate price indices:

	09/30/2022	12/31/2021
< 30%	638,140	582,421
31 - 50%	1,694,559	1,584,454
51 - 70%	2,223,512	2,116,015
71 - 90%	1,332,970	756,870
> 90%	40,889	81,651
	5,930,070	5,121,411

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

Concentration of loan portfolio and advances to customers:

Analysis of the breakdown of balance of loans and advances to customers per sector of activity:

	09/30/2022		12/31/2021
	Balance	%	Balance	%
Private sector
Real estate loans	5,930,070	28.23%	5,121,411	29.75%
Personal loans and personal credit	5,057,444	24.08%	3,579,283	20.79%
Business loans	2,978,792	14.18%	3,017,159	17.52%
Credit card	6,411,572	30.52%	4,798,318	27.87%
Rural loans	627,390	2.99%	700,191	4.07%
Total Portfolio	21,005,268	100.00%	17,216,362	100.00%

The concentration of the Group’s portfolio of Loans and advances to customers is as follows:

	09/30/2022		12/31/2021
	Balance	% on Loans and advances to customers	Balance	% on Loans and advances to customers

Major debtor	240,682	1.15%	274,262	1.59%
Total of the 10 larger debtors	1,055,329	5.02%	1,610,203	9.35%
Total of the 20 largest debtors	1,427,595	6.80%	2,034,977	11.82%
Total of the 50 largest debtors	2,027,243	9.65%	2,627,038	15.26%
Total of the 100 largest debtors	3,037,236	14.46%	3,479,129	20.21%

The breakdown of loans and advances to customers by term is as follows:

	09/30/2022
	To fall due	Overdue	Total
Installments to become due
To fall due within 90 days	3,249,877	-	3,249,877
To fall due between 91 and 360 days	5,278,309	-	5,278,309
To fall due in more than 360 days	10,066,941	-	10,066,941
Total to become due	18,595,127	-	18,595,127

Overdue installments
Overdue by 15 days or more	-	2,410,141	2,410,141
Total overdue	-	2,410,141	2,410,141

Total Portfolio	18,595,127	2,410,141	21,005,268

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

	12/31/2021
	To fall due	Overdue	Total
Installments to become due
To fall due within 90 days	2,849,136	-	2,849,136
To fall due between 91 and 360 days	3,868,156	-	3,868,156
To fall due in more than 360 days	8,732,081	-	8,732,081
Total to become due	15,449,373	-	15,449,373

Overdue installments
Overdue by 15 days or more	-	1,766,989	1,766,989
Total overdue	-	1,766,989	1,766,989

Total Portfolio	15,449,373	1,766,989	17,216,362

Liquidity risk

The liquidity risk is the possibility that the Group may not be able to effectively meet its expected and unexpected obligations, including those arising from binding guarantees, without affecting its daily operations and incurring material losses; and possibility that the Group 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.

There have been no material changes in the nature of liquidity risk exposures, how they arise or in the Group’s objectives, policies and processes for managing them, although the Group continues improving its internal risk management processes in the quarter ended September 30, 2022.

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

c.	Analyses of financial instruments by remaining contractual term

The table below presents the projected future realizable value of the Group’s financial assets and liabilities by contractual term:

	09/30/2022
	Note	Up to 3 months	3-12 months	>1 year	Total
Financial assets
Cash and cash equivalents	8	838,310	-	-	838,310
Compulsory deposits at Central Bank of Brazil	9b	2,686,243	-	-	2,686,243
Amounts due from financial institutions	9	3,417,500	-	-	3,417,500
Securities	11	501,892	384,581	12,486,992	13,373,465
Derivative financial assets	12	581	-	-	581
Loans and advances to customers	10	5,660,018	5,278,309	10,066,941	21,005,268
Other assets	17	173,677	460,803	553,859	1,188,339
Total financial assets		13,278,221	6,123,693	23,107,792	42,509,706

Financial liabilities
Liabilities with financial institutions	18	7,349,464	-	-	7,349,464
Liabilities with customers	19	12,682,252	849,420	7,920,354	21,452,026
Securities issued	20	1,863,824	421,032	4,632,063	6,916,919
Derivative financial liabilities	9	-	-	40,347	40,347
Borrowing and onlending	21	1,868	5,714	25,538	33,119
Other liabilities	24	372,637	155,816	170,399	698,852
Total financial liabilities		22,270,045	1,431,982	12,788,701	36,490,727

	12/31/2021
	Note	Up to 3 months	3-12 months	>1 year	Total
Financial assets
Cash and cash equivalents	8	500,446	-	-	500,446
Compulsory deposits at Central Bank of Brazil	9b	2,399,488	-	-	2,399,488
Amounts due from financial institutions	9	2,051,862	-	-	2,051,862
Securities	11	474,509	203,451	12,079,727	12,757,687
Derivative financial assets	12	86,948	-	-	86,948
Loans and advances to customers	10	4,616,124	3,868,156	8,732,082	17,216,362
Other assets	17	687,336	28,012	77,387	792,735
Total		10,816,713	4,099,619	20,889,196	35,805,528

Financial liabilities
Liabilities with financial institutions	18	5,306,020	35,444	-	5,341,464
Liabilities with customers	19	11,360,378	6,956,400	16,765	18,333,543
Securities issued	20	112,591	3,349,639	109,863	3,572,093
Derivative financial liabilities	9	-	29,452	37,093	66,545
Borrowing and onlending	21	99	1,087	23,886	25,071
Other liabilities	24	374,327	134,744	108,277	617,349
Total		17,153,415	10,506,766	295,884	27,956,065

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

d.	Market risk management

Market risk is the possibility of losses arising from fluctuations in the fair value of financial instruments held by the Institution and its subsidiaries, including risks arising from transactions subject to foreign exchange, interest rates, share prices and commodity prices.

At Inter&Co, market risk management has, among others, the objective of supporting the business areas, establishing processes and implementing tools necessary for the assessment and control of related risks, enabling the measurement and monitoring of risk levels, as defined by Senior Management.

Market risk positions are analyzed and monitored by the Asset and Liability Committee where the control reports and management positions are analyzed. Market risk controls allow the analytical assessment of information and are in a constant process of improvement, seeking to provide a view that is more in line with the current needs of Inter and its subsidiaries. The Institution and its subsidiaries have improved the internal aspects of risk management and mitigation.

Measurement

Inter & Co, in accordance with CMN Resolution No. 4,557/2017, aiming at greater efficiency in the management of its operations exposed to market risk, segregates its operations, including derivative financial instruments, as follows:

Trading Book: composed of operations contracted with the intention of being traded or for hedge of the trading book, for which there is an intention to be traded before their contractual term, subject to normal market conditions, and which do not contain a clause of non-tradability.

Banking Book: composed of operations not classified in the Trading Book, whose main characteristic is the intention of being held until their maturities.

In line with the best market practices, the Company 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 methods of assessing the positions subject to market risk is the Value at Risk (VaR) model. The methodology used to calculate the VaR is the parametric model with a confidence level (CL) of 99% and a time horizon (TH) of one day, scaled to 21 days.

We present below the set of operations recorded in the Trading Book:

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

R$ Thousand	09/30/2022	12/31/2021
Risk Factor	VaR 21 dias	VaR 21 Dias
Price Index Coupon	5,155	4,882
Fixed Interest Rate	683	83
Foreign Currency	3,298	80
Share price	233	1,599
Subtotal	9,368	6,645

Diversification Effect (correlation)	4,105	1,758
Value - At - Risk	5,264	4,887

The VaR of the Banking Portfolio by risk factor is presented in the following table:

R$ Thousand	09/30/2022	12/31/2021
Risk Factor	VaR 21 dias	VaR 21 Dias
Price Index Coupon	200,532	364,502
Fixed Interest Rate	78,162	36,555
Fixed Interest Rate	60,677	49,577
Others	8,280	-
Subtotal	347,651	450,634

Diversification Effect (correlation)	43,942	84,587
Value-At-Risk	303,708	367,458

e.	Sensitivity analysis

To determine the sensitivity of Inter's positions to movements in market variables, a sensitivity analysis was performed for relevant market risk factors. The largest losses, by risk factor, in each of the scenarios were presented with an impact on profit or loss, providing a view of the exposure by risk factor in specific scenarios.

Simulations were made with three possible scenarios in accordance with ICVM 475/2008, in order to estimate the impact on the fair value of the financial assets presented below:

Scenario I: Probable situation, which reflects the perception of the Bank's senior management in relation to the scenario with the highest probability of occurrence considering macroeconomic factors and market information (B3, Anbima etc.) observed in the period. Assumption used: deterioration and evolution in market variables through parallel shocks of 1 basis point in price index coupon rates, interest rate coupons, fixed rates, considering the worst

Inter & Co, Inc.

Condensed consolidated
interim financial statements as
of September 30, 2022

resulting losses by risk factor and, consequently, not considering the rationality between the macroeconomic variables.

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 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 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 following table presents the results obtained for the Trading Book and for the Banking Book in an aggregate manner.

Exposures	R$ Thousand
Banking and Trading Portfolios		scenarios				09/30/2022
Risk factor	Risk in variation in	Rate variation in scenario 1	Scenario I	Rate variation in scenario 2	Scenario II	Rate variation in scenario 3	Scenario III
IPCA coupon	Price index coupon	Increase	(2,968)	Increase	(73,250)	Increase	(144,562)
IGP-M coupon	Price index coupon	Increase	(28)	Increase	(700)	Increase	(1,388)
Fixed rate	Fixed rate	Increase	(631)	Increase	(15,830)	Increase	(31,782)
TR coupon	Interest rate coupon	Increase	(858)	Increase	(21,161)	Increase	(41,710)