United States
Securities and Exchange Commission
Washington, D.C. 20549

FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of November 2023
Commission File Number 132-02847

INTER & Co, INC.
(Exact name of registrant as specified in its charter)
N/A
(Translation of Registrant’s executive offices)
Av Barbacena, 1.219, 22nd Floor
Belo Horizonte, Brazil, ZIP Code 30 190-131
Telephone: +55 (31) 2138-7978

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒    Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes ☐    No ☒
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes ☐    No ☒



EXHIBIT INDEX
Exhibit No.Description of Exhibit
99.1
1


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
INTER & Co, INC.
By: /s/ Santiago Horacio Stel
Name:Santiago Horacio Stel
Title:Senior Vice President of Finance and Risks
Date: November 06, 2023


intercoinc_300923xen.jpg


logo_inter.jpg
Unaudited interim condensed consolidated financial statements
As of for the twelve-months period ended
September 30, 2023
Contents
Management report
Report of the independent auditors on the condensed consolidated interim financial statements
Other information
1

logo_inter.jpg
Unaudited interim condensed consolidated financial statements
As of for the twelve-months period ended
September 30, 2023
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 started trading its shares on Nasdaq, in New York, under the ticker symbol INTR, and its BDRs in B3 under ticker INBR32. Inter&Co is the parent company of the Inter Group and indirectly holds all of Banco Inter’s shares.
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 September 30, 2023, we surpassed the mark of 29.4 million customers and increased the activation rate by 165 bps when compared to December 31, 2022, reaching 52,7%.
Loan Portfolio
The balance of loan operations reached R$27.0 billion, representing a positive variation of 19% compared to December 31, 2022.
Funding
The total funding, which includes demand deposits, time deposits, savings deposits and securities issued, such as Real Estate Bills and Financial Bills, amounted to R$36.5 billion, representing a 22.4% increase compared to December 31, 2022.
Economic and financial highlights
Profit (loss) for the period
We recorded an accumulated profit of R$192.5 millionas of September 30, 2023, compared to a loss of R$42.9 million for the same period in 2022.
Revenues
The revenues as of September 30, 2023, reached R$5,674.7 million, recording an increase of R$1,638.1 million compared to the amount recorded in the same period in 2022.
Administrative expenses
Accumulated administrative and personnel expenses incurred as of September 30, 2023, totaled R$1,096.4 million, an decrease of R$9.0 million in relation to the same period of 2022.
Equity highlights
Total assets
Total assets reached R$55.1 billion as of September 30, 2023, a 18.9% growth compared to December 2022.
Shareholder’s equity
Shareholder’s equity totaled R$7.4 billion, a 3.9% growth compared to December 31, 2022.
2

logo_inter.jpg
Unaudited interim condensed consolidated financial statements
As of for the twelve-months period ended
September 30, 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.
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 quarter ended September 30, 2023 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, November 06, 2023.
The Management
3


relatriodereviso30092023-i.jpg
4


relatriodereviso30092023-ia.jpg
5

logo_inter.jpg
Consolidated interim balance sheets
As of September 30, 2023 and December 31, 2022
(Amounts in thousands of Brazilian reais)
Note09/30/202312/31/2022
Assets
Cash and cash equivalents84,297,078 1,331,648 
Amounts due from financial institutions93,474,244 4,258,856 
Compulsory deposits at Central Bank of Brazil2,190,872 2,854,778 
Securities1014,908,297 12,448,565 
Derivative financial assets119,389 — 
Loans and advances to customers, net of provisions for expected loss1225,296,620 21,379,916 
Non-current assets held for sale13169,347 166,943 
Equity accounted investees1471,884 72,090 
Property and equipment15173,677 188,019 
Intangible assets161,322,350 1,238,629 
Deferred tax assets33.c1,071,248 978,148 
Other assets172,093,833 1,425,508 
Total assets55,078,840 46,343,100 
Liabilities
Liabilities with financial and similar institutions189,418,245 7,906,897 
Liabilities with customers1929,063,988 23,642,804 
Securities issued207,462,565 6,202,165 
Derivative financial liabilities1121,059 37,768 
Borrowing and onlending2187,649 36,448 
Tax liabilities22332,845 166,865 
Provisions2335,040 57,449 
Deferred tax liabilities33.c28,895 30,073 
Other liabilities241,260,329 1,173,527 
Total liabilities47,710,613 39,253,996 
Equity
Share capital25.a13 13 
Reserves25.b.7,998,214 7,817,670 
Other comprehensive income25.c(729,442)(825,301)
Treasury shares25.g(8,417)— 
Equity attributable to owners of the Company7,260,368 6,992,382 
Non-controlling interest25.f107,859 96,722 
Total equity7,368,227 7,089,104 
Total liabilities and equity55,078,840 46,343,100 

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

6

logo_inter.jpg
Consolidated interim income statements
For the quarters ended September 30, 2023 and 2022
(Amounts in thousands of Brazilian reais)
Three-month periodNine-month period
Note09/30/202309/30/202209/30/202309/30/2022
Interest income261,106,935 788,343 3,270,967 1,931,815 
Interest expenses26(770,398)(579,678)(2,135,375)(1,381,490)
Income from securities and derivatives27482,020 346,923 1,196,602 1,109,761 
Net interest income818,557 555,588 2,332,193 1,660,086 
Revenues from services and commissions28347,780 248,862 928,657 693,596 
Expenses from services and commissions(32,271)(31,833)(99,672)(94,303)
Other revenues29131,430 77,687 278,465 301,466 
Revenues1,265,496 850,304 3,439,643 2,560,845 
Impairment losses on financial assets30(407,899)(263,113)(1,157,140)(818,523)
Net result of losses857,597 587,191 2,282,504 1,742,322 
Other administrative expenses31(362,877)(379,946)(1,096,360)(1,105,370)
Personnel expenses32(210,661)(176,232)(569,322)(493,818)
Tax expenses(94,072)(61,544)(235,406)(179,837)
Depreciation and amortization(40,561)(35,620)(119,268)(107,609)
Income from equity interests in associates14(4,071)(3,892)(30,597)(13,954)
Profit / (loss) before income tax145,354 (70,043)231,550 (158,266)
Income tax33(41,194)40,448 (39,002)115,374 
Profit / (loss) for the period104,161 (29,595)192,549 (42,892)
Profit (loss) attributable to:
Owners of the Company91,291 (30,008)151,442 (43,326)
Non-controlling interest12,870 413 41,107 434 
Earnings (loss) per share (in Brazilian Reais – BRL)
Basic earnings (loss) per share 25.e0.2272 (0.0744)0.3769 (0.1074)
Diluted earnings (loss) per share25.e0.2263 (0.0744)0.3753 (0.1074)

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

7

logo_inter.jpg
Consolidated interim statements of comprehensive income
For the quarters ended September 30, 2023 and 2022
(Amounts in thousands of Brazilian reais)
Three-month periodNine-month period
09/30/202309/30/202209/30/202309/30/2022
Profit (loss) for the three-month period104,161 (29,595)192,549 (42,892)
Fair value of financial assets (98,003)94,465 177,437 (139,394)
Related tax - financial assets44,100 (59,715)(79,848)62,233 
Financial assets at fair value through other comprehensive income(53,903)34,750 97,589 (77,161)
Hedge of net investments in operations abroad(4,351)(1,860)6,717 (8,692)
Fair value change(7,909)(1,860)6,841 (8,692)
Tax effect3,558 — (124)— 
Current translation adjustment in foreign entities11,039 1,860 (8,468)(1,979)
Effects of corporate reorganization on non-controlling interest without change in control (51,955) (665,673)
Others(3)— 21 — 
Total other comprehensive income that may be reclassified subsequently to the income statement(47,218)(17,205)95,859 (753,505)
Total comprehensive income for the quarters56,943 (46,800)288,408 (796,397)
Allocation of comprehensive income
To owners of the company44,073 (47,213)247,301 (796,831)
To non-controlling interest12,870 413 41,107 434 

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

8

logo_inter.jpg
Consolidated interim statements of cash flows
For the quarters ended September 30, 2023 and 2022
(Amounts in thousands of Brazilian reais)
09/30/202309/30/2022
Operating activities
Profit (loss) for the period192,549 (42,892)
Adjustments to profit (loss)
Depreciation and amortization119,268 107,609 
Result of equity interests in associates30,597 13,954 
Impairment losses on financial assets1,157,140 818,523 
Expenses with provisions27,104 20,218 
Income tax and social contribution39,002 (115,374)
Provisions/ (reversals) for deferred assets(20,646)23,363 
Other capital gains (losses)(34,428)(63,565)
Provision for performance income(104,840)(123,702)
Result of foreign exchange variation(67,769)(73,733)
(Increase)/ decrease in:
Compulsory deposits at Central Bank of Brazil663,906 (286,755)
Loans and advances to customers(5,073,844)(4,103,996)
Amounts due from financial institutions784,612 (1,365,638)
Securities443,693 (619,343)
Derivative financial assets(9,389)86,367 
Non-current assets held for sale(2,404)(35,910)
Other assets(424,299)(119,103)
Increase/ (decrease) in:
Liabilities with financial institutions1,511,348 2,008,000 
Liabilities with customers5,421,184 3,118,483 
Securities issued1,260,400 3,344,826 
Derivative financial liabilities(16,709)(26,198)
Borrowing and onlending50,394 8,048 
Tax liabilities130,813 26,197 
Provisions(49,513)(13,846)
Other liabilities112,545 (335,226)
Income tax paid(180,795)(47,305)
Net cash from operating activities5,959,919 2,203,002 
Cash flow from investing activities
Capital increase in subsidiary11,564 — 
Acquisition of investments, net of cash acquired(14,426)(545,983)
Acquisition of property and equipment(12,974)(33,940)
Proceeds from sale of property and equipment— 1,516 
Net acquisition of property and equipment from subsidiaries— 610 
Acquisition of intangible assets(194,228)(108,813)
Acquisition of financial assets at FVOCI(15,747,029)(7,306,475)
Proceeds from sale of financial assets at FVOCI12,801,310 7,663,646 
Acquisition of financial assets at FVTPL(590,236)(530,160)
Proceeds from sale of financial assets at FVTPL730,119 99,393 
Net cash used in investing activities(3,015,900)(760,206)
Cash flow from financing activities
Dividends and interest on shareholders' equity paid(19,704)— 
Repurchase of treasury shares(16,409)— 
Resources from non-controlling interest, including capital increase(10,245)(1,178,665)
Net cash from financing activities(46,358)(1,178,665)
(Decrease)/ Increase in cash and cash equivalents2,897,661 264,131 
Cash and cash equivalents at the beginning of the period1,331,648 500,446 
Effect of the exchange rate variation on cash and cash equivalents67,769 73,733 
Cash and cash equivalents at September 304,297,078 838,310 

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

9

logo_inter.jpg
Consolidated interim statements of changes in equity
For the quarters ended September 30, 2023 and 2022
(Amounts in thousands of Brazilian reais)
Share capitalReservesOther comprehensive income Retained earnings / accumulated lossesTreasury sharesEquity attributable to owners of the CompanyNon-controlling interest Total equity
Balance at 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 three-month period— — — (43,326)— (43,326)434 (42,892)
Proposed allocations:
Constitution/ reversion of reserves— (43,326)— 43,326 —  — — 
Net change in fair value - financial assets at FVTOCI— — (77,161)— — (77,161)— (77,161)
Share-based payment transactions— — — — —  — — 
Exchange rate change adjustment— — (1,979)— — (1,979)— (1,979)
Gains and losses - Hedge— — (8,692)— — (8,692)— (8,692)
Resources from non-controlling interest, including capital decrease— 5,185,116 (665,673)— — 4,519,443 (5,698,108)(1,178,665)
Balance at September 30, 2022 - Inter & Co, Inc.13 7,870,186 (825,789)  7,044,410 95,985 7,140,395 
Balance at January 1, 2023 - Inter & Co, Inc.13 7,817,670 (825,301)  6,992,382 96,722 7,089,104 
Profit (loss) for the period151,442151,44241,107192,549 
Proposed allocations:
Constitution/ reversion of reserves— 151,442 — (151,442)—  — — 
Interest on equity / dividends— — — — —  (19,704)(19,704)
Exchange rate change adjustment— — (8,468)— — (8,468)— (8,468)
Gains and losses - Hedge— — 6,717 — — 6,717 — 6,717 
Net change in fair value - financial assets at FVOCI— — 97,589 — — 97,589 — 97,589 
Share-based payment transactions— (7,992)— — 7,992  — — 
Reflex reserve— 37,094 — — — 37,094 — 37,094 
(-) Repurchase of treasury shares— — — — (16,409)(16,409)— (16,409)
Others— — 21 — — 21 (10,266)(10,245)
Balance at September 30, 2023 - Inter & Co, Inc.13 7,998,214 (729,442) (8,417)7,260,368 107,859 7,368,227 

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

10

logo_inter.jpg
Consolidated interim statements of added value
For the quarters ended September 30, 2023 and 2022
(Amounts in thousands of Brazilian reais)
Three-month periodNine-month period
Note09/30/202309/30/202209/30/202309/30/2022
Revenues1,627,995 1,166,869 4,417,879 3,123,812 
Interest income1,588,955 1,135,266 4,467,569 3,041,576 
Provision of services, net315,509 217,029 828,985 599,293 
Impairment losses on financial assets30(407,899)(263,113)(1,157,140)(818,523)
Other revenues29131,430 77,687 278,465 301,466 
Expenses (770,398)(579,678)(2,135,375)(1,381,490)
Interest26(770,398)(579,678)(2,135,375)(1,381,490)
Input from third parties(350,459)(366,190)(1,059,587)(1,070,660)
Materials, energy and others(66,823)(78,694)(195,359)(308,371)
Third-party services(70,414)(73,945)(201,122)(146,032)
Telecommunications and data processing(190,301)(190,128)(599,043)(518,014)
Publicity and advertising(22,921)(23,423)(64,063)(98,243)
Gross added value 507,138 221,001 1,222,917 671,662 
Deduction(40,561)(35,620)(119,268)(107,609)
Depreciation and amortization(40,561)(35,620)(119,268)(107,609)
Net added value produced by the company466,577 185,381 1,103,649 564,053 
Added value received in transfer(4,071)(3,892)(30,597)(13,954)
Income from equity interests in affiliates14(4,071)(3,892)(30,597)(13,954)
Total added value to distribute 462,506 181,489 1,073,052 550,099 
Distribution of added value462,506 181,489 1,073,052 550,099 
Personnel and tax189,069 151,494 502,578 425,940 
Remuneration100,174 105,337 314,692 296,921 
Benefits82,648 39,492 168,988 110,018 
FGTS6,247 6,665 18,898 19,001 
Taxes, contributions and fees156,878 48,241 341,153 134,457 
Federal144,037 36,422 304,917 102,231 
Municipal12,307 11,196 35,006 30,900 
State534 623 1,230 1,326 
Rent12,398 11,349 36,772 32,594 
Profit (losses) retained/reversed in the period91,291 (30,008)151,442 (43,326)
Non-controlling interest12,870 413 41,107 434 


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

11

logo_inter.jpg
Notes to the condensed consolidated interim financial statements
As of September 30, 2023
Notes to the condensed consolidated interim financial statements
(Amounts in thousands of Brazilian reais)
1.Activity and structure of Inter & Co, Inc. and its subsidiaries
Inter & Co, Inc. (“Inter & Co”), formerly Inter Platform Inc, is a Cayman Island exempted company with limited liability, incorporated on January 26, 2021. On May 7, 2021, Inter & Co, Inc. (the Company and, together with its consolidated subsidiaries, the “Group”) completed the first stage of its corporate reorganization (“Reorganization”) involving two new non-operating companies with no material assets, liabilities or contingencies: the Company, located in the Cayman Islands, and Inter Holding Financeira S.A. (HoldFin), located in Brazil. In this first stage of reorganization, the Company and HoldFin have become the indirect and direct shareholders of Banco Inter S.A (“Inter” or “Banco Inter”), respectively, thus the ultimate shareholders of Inter and their voting and non-voting interest were the same before and after this corporate reorganization.
Inter & Co, Inc. is currently the entity which is registered with the U.S. Securities and Exchange Commission (“SEC”). The common shares are traded on the Nasdaq under the symbol “INTR” and its Brazilian Depositary Receipts (“BDRs”) are traded on B3 - Brasil, Bolsa, Balcão (“B3”), the Brazilian stock exchange, under the symbol “INBR32”.
Banco Inter was a publicly held company with equity securities listed on B3 since April 2018. On June 23, 2022, Inter & Co and Banco Inter completed a corporate reorganization as an immediate result of which Inter & Co became indirectly, through Inter Holding Financeira S.A. (“HoldFin”), the owner of all shares of Banco Inter S.A. Thus, the shareholders of Banco Inter became shareholders of Inter&Co or received cash out. However our controlling shareholder received Class B common shares, which are entitled to 10 votes per share while all other shareholders received Class A common shares, which are entitled to 1 vote per share. Inter & Co accounted for this corporate reorganization as a reorganization of entities under common control, and the pre-reorganization historical values of Banco Inter’s consolidated assets and liabilities are reflected in these condensed consolidated interim financial statements, with no fair value adjustments. As a result, these audited condensed consolidated interim financial statements reflect:
The financial position of Inter & Co, Inc. at September 30, 2023 and December 31, 2022.
The recognition of non-controlling interest on June 23, 2022, relating to the transfer from non-controlling interest to equity of the Company, in which the shareholders of Banco Inter S.A. opted to exchange their shares or BDRs of Inter & Co, Inc. or opted to receive cash instead of shares or BDRs of the Company.
The Group provides financial and e-commerce services to more than 29.4 million customers. Functionalities are offered in the same digital ecosystem that includes a complete range of banking, investment, credit, insurance and cross-border services, in addition to a marketplace that brings together the best retailers in Brazil and the United States.
In January 2022, Inter&Co Payments, Inc. (formerly USEND or Pronto Money Transfer, Inc), a remittance platform and global provider of digital accounts, was acquired to accelerate the global expansion plan. As a result, global products were segmented into two categories: (i) Brazilian; and (ii) US residents. This new initiative contributes to the expansion of the app to the United States, offering a global account for Brazilian customers.
The operations are conducted within the context of the set of companies in the Group, working in the market in an integrated way.
12

logo_inter.jpg
Notes to the condensed consolidated interim financial statements
As of September 30, 2023
2.Basis for preparation
a.Compliance statement
The condensed consolidated interim financial statements of the Group 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 have been prepared using the basis for preparation and accounting policies consistent with those adopted in the preparation of the consolidated financial statements of Inter & Co, Inc. as of December 31, 2022, and therefore they are intended only to provide an update on the content of the latest financial statements and should be read together, as set forth in IAS 34.
The information of the notes that has not been significantly changed or that has not presented new disclosures in relation to December 31, 2022 has not been fully repeated in these condensed consolidated interim financial statements. However, information has been included to explain the main events and transactions occurred, allowing an understanding of the changes in the financial position and in the performance of the Group’s operations since the publication of the consolidated financial statements as of December 31, 2022.
These condensed consolidated interim financial statements were approved by the Board of Director’s meeting on November 06, 2023.
b.Functional and presentation currency
These condensed consolidated interim financial information are presented in Brazilian reais (BRL or R$). The functional currency of the Group companies is shown in note 4a. All balances were rounded to the nearest thousand, unless otherwise indicated.
c.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. Estimates and assumptions are reviewed on an ongoing basis. Adjustments, if any, related to changes in estimates are recognized prospectively.
d.Judgments
The significant judgments made by management during the application of the Group’s accounting policies and the main sources of estimation uncertainty were materially the same as those described in the last annual financial statements.
3.Changes to significant accounting policies
New or revised accounting pronouncements adopted in 2023
The following new or revised standards have been issued by IASB, were effective for the period covered by these condensed consolidated interim financial statements, and had no material impact.
Definition of Accounting Estimates – Amendments to IAS 8
Classification of Liabilities as Current or Non-Current – Amendments to IAS 1
Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2
Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12.
Insurance Contracts – IFRS 17
13

logo_inter.jpg
Notes to the condensed consolidated interim financial statements
As of September 30, 2023
4.Significant accounting policies
The accounting policies applied in these condensed consolidated interim financial statements are the same as those applied in the consolidated financial statements of Inter & Co, Inc. for the year ended December 31, 2022, except for the changes in items a and b described below.
a.Basis for consolidation
Companies that Inter controls 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 its power over such entity 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 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.
The following table shows the subsidiaries in each period:
EntityBranch of ActivityCommon shares
and/or quotas
Functional currencyCountryShare in the capital (%)
09/30/202312/31/2022
Direct subsidiaries
Inter&Co Securities LLC Holding Company— US$USA100.00 %100.00 %
Inter&Co Participações Ltda. Holding Company1,500,000 BRLBrazil100.00 %100.00 %
INTRGLOBALEU Serviços Administrativos, LDAHolding Company— EURPortugal100.00 %100.00 %
Inter US Holding, LLC (c)Holding Company50,000 US$USA100.00 %— 
Inter Holding Financeira S.A.Holding401,159,540 BRLBrasil100.00 %100.00 %
EntityBranch of ActivityCommon shares
and/or quotas
Functional currencyCountryShare in the capital (%)
09/30/202312/31/2022
Indirect subsidiaries
Inter Holding Financeira S.A.Holding Company401,159,540 BRLBrazil100.00 %100.00 %
Banco Inter S.A.Multiple Bank1,297,308,713 BRLBrazil100.00 %100.00 %
Inter Distribuidora de Títulos e Valores Mobiliários Ltda. (a)TVM Distributor25,000,000 BRLBrazil100.00 %98.30 %
Inter Digital Corretora e Consultoria de Seguros Ltda.Insurance broker59,750 BRLBrazil60.00 %60.00 %
Inter Marketplace Ltda.Marketplace5,000,000 BRLBrazil100.00 %100.00 %
Inter Asset Holding S.A.Asset management7,000,000 BRLBrazil70.00 %70.00 %
Inter Titulos Fundo de InvestimentoInvestment Fund489,302 BRLBrazil98.30 %98.30 %
BMA Inter Fundo De Investimento Em Direitos Creditórios MultissetorialInvestment Fund5,000,000 BRLBrazil86.46 %90.70 %
TBI Fundo De Investimento Renda Fixa Credito PrivadoInvestment Fund388,157,511 BRLBrazil100.00 %100.00 %
TBI Fundo De Investimento Crédito Privado Investimento ExteriorInvestment Fund443,689,064 BRLBrazil100.00 %100.00 %
IG 30 Fundo de Investimento Renda Fixa Crédito PrivadoInvestment Fund144,796,772 BRLBrazil100.00 %— %
Inter Simples Fundo de Investimento em Direitos Creditórios MultissetorialInvestment Fund6,147 BRLBrazil86.80 %— %
IM Designs Desenvolvimento de Software Ltda.Provision of services50,000,000 BRLBrazil50.00 %50.00 %
Acerto Cobrança e Informações Cadastrais S.A.Provision of services60,000,000,000 BRLBrazil60.00 %60.00 %
Inter & Co Payments, IncProvision of services16,000,000 US$USA100.00 %100.00 %
Inter Asset Gestão de Recursos LtdaAsset management30,680 BRLBrazil70.00 %70.00 %
Inter Café Ltda.Provision of services10,000 BRLBrazil100.00 %100.00 %
Inter Boutiques Ltda.Provision of services10,000 BRLBrazil100.00 %100.00 %
Inter Food Ltda.Provision of services7,000,000 BRLBrazil70.00 %70.00 %
Inter Viagens e Entretenimento Ltda. Provision of services1,000 BRLBrazil100.00 %100.00 %
Inter Conectividade Ltda. (b)Provision of services33,533,805 BRLBrazil100.00 %— 
Inter US Management LLC (c)Provision of services100,000 US$USA100.00 %— 
Inter US Finance LLC (c)Provision of services100,000 US$USA100.00 %— 
(a)    On February 15, 2023, Banco Inter S.A. completed the acquisition of the remaining shares of its subsidiary "Inter Distribuidora de Títulos e Valores Mobiliários Ltda", acquiring the remaining 416,667 shares at nominal value of R$1.00 each, fully subscribed and paid up.
(b)    On April 1, 2023, the partial spin-off of the investment held in Inter Marketplace Ltda. to a new company, forming Inter Conectividade Ltda., which was later incorporated by Inter Marketplace Ltda.
(c)    Inter US Holding, Inc.” (formerly known as Inter Mortgage Holding, Inc.), Inter US Finance, LLC (formerly known as YellowFi Mortgage, LLC), and Inter US Management, LLC (formerly known as YellowFI Management, LLC), had their corporate name updated on April 26, 2023.
14

logo_inter.jpg
Notes to the condensed consolidated interim financial statements
As of September 30, 2023
Non-controlling interest
The Group recognizes the portion related to non-controlling interests in shareholders’ 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 shareholders’ equity. Gains or losses on sales to non-controlling shareholders are also recorded in shareholders’ equity. The company owns 50% or more of the voting capital of all indirect subsidiaries.
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 that there is no evidence of impairment.
b.    Business combination
Business combinations are recorded using the acquisition method when the set of acquired activities and assets meets the definition of a business and control is transferred to the Group. In determining whether a set of activities and assets is a business, Inter assesses whether the acquired set of assets and activities includes at least one input and one substantive process that together contribute significantly to the ability to generate outputs.
Inter has the option to apply a "concentration test" that allows for a simplified assessment of whether a set of acquired activities and assets is not a business. The optional concentration test is met if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets.
The consideration transferred is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill arising on the transaction is tested annually for impairment. Gains on an bargain purchase are recognized immediately in the income statement. Transaction costs are recorded in the income statement as incurred, except for costs related to the issue of debt or equity instruments. The consideration transferred does not include amounts relating to the payment of pre-existing relationships. These amounts are generally recognized in the income statement.
Any contingent consideration payable is measured at its acquisition-date fair value. If the contingent consideration is classified as an equity instrument, then it is not remeasured and settlement is recorded within equity. The remaining contingent consideration is remeasured at fair value at each reporting date and subsequent changes in fair value are recorded in the income statement.
Inter US Finance, LLC and Inter US Management, LLC
On January 24, 2023, through the holding company "Inter Mortgage Holding, Inc.," (formerly known as Inter Mortgage Holding, Inc.), 100% of the share capital of Inter US Finance LLC (formerly known as YellowFi Mortgage, LLC) and Inter US Management LLC were acquired (formerly known as YellowFi Management, LLC).
Inter US Finance, LLC, is a company based is a US-based mortgage company with operations in Florida, Georgia, and Colorado, providing real estate-focused credit. The company holds licenses in all three operating states and obtains funding from investors. The business specializes in originating and distributing mortgages, enabling the development of other loan portfolios in the US. With this acquisition, Inter & Co customers will have access to a wider range of financial services.
15

logo_inter.jpg
Notes to the condensed consolidated interim financial statements
As of September 30, 2023
i.    Consideration transferred
The following table summarizes the amounts of consideration transferred:
In thousands of Brazilian reaisInter US Finance, LLCInter US Management, LLC
Cash1,990 939 
Share based compensation— 388 
Total consideration transferred1,990 1,327 
Identifiable assets acquired, liabilities assumed and goodwill
The book value of identifiable assets and liabilities of Inter US Finance, LLC and Inter US Management, LLC. at the acquisition date is as follows:
In thousands of Brazilian reaisInter US Finance, LLCInter US Management, LLC
Assets879 238 
Cash and cash equivalents860 
Other assets19 235 
Liabilities(807)(25)
Borrowing and onlending(807)— 
Other liabilities— (25)
Total net identifiable assets at fair value72 213 
Goodwill on acquisition (a)1,918 1,114 
Total consideration transferred1,990 1,327 
(a)Inter contracted an independent valuation service to develop a study on the allocation of the purchase price (“PPA”) of the identifiable assets acquired, liabilities assumed and goodwill. However, as of the date of this quarterly publication of financial information, the study is still in the preparation phase. The preliminary goodwill resulting from the acquisition of Inter US Finance, LLC and Inter US Management, LLC is R$1,918 and R$1,114, respectively. This amount represents the future economic benefits arising from the synergies generated by our expansion in US operations and by offering a broader range of financial services to our customers. Although the PPA study is not yet complete, we believe that the preliminary goodwill amounts are fair and substantially reflect the growth potential of our US business. We will continue to carefully evaluate the purchase price allocation and provide timely updates on any material changes to our financial statements.
ii.    Acquisition costs
Inter incurred acquisition-related costs of R$362 on attorney’s fees and due diligence costs. These costs were recorded as “Administrative expenses” in the income statement.
5.Operating segments
Operating segments are disclosed based on internal information that is 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 CEO, together with the Board of Directors.
Profit by operating segment
Each operating segment is composed 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.
16

logo_inter.jpg
Notes to the condensed consolidated interim financial statements
As of September 30, 2023
Transactions between segments are carried out under terms and rates compatible with those practiced with third parties, where applicable.
a.Banking & Spending
This segment comprises a wide range of banking products and services, such as checking accounts, debit and credit cards, deposits, loans, advances to customers, debt collection services and other services, which are available to the customers primarily by means of Inter’s mobile application. The segment also comprises foreign exchange services and money remittances between countries, including the Global Account digital solution, including investment funds consolidated by the Group.
b.Investments
This segment is responsible for operations related to the acquisition, sale and custody of securities, the 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 consist primarily of administration fees and commissions charged to investors for the rendering of such services.
c.Insurance Brokerage
This segment offers insurance products underwritten by insurance companies with which 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, that is, when the performance obligation is fulfilled upon sale to the customer.
d.Inter Shop & Commerce Plus
This segment includes sales of goods and/or services with partner companies through our digital platform. The segment income comprises basically commissions received for sales and/or for the rendering of these services.
e. Others
Include eliminations between the aforementioned groups and the following companies: (i) Inter US Management; (ii) Inter US Finance; (iii) IM Design; (iv) Holding Fin; and (v) Inter&Co Inc.
17

logo_inter.jpg
Notes to the condensed consolidated interim financial statements
As of September 30, 2023
Segment information
09/30/2023
Banking & SpendingInvestmentsInsurance BrokerageInter Shop & Commerce PlusOthersConsolidated
Interest income3,257,024 14,857 — 25,217 (26,131)3,270,967 
Interest expenses(2,131,885)(28,381)— — 24,891 (2,135,375)
Income from securities and derivatives1,142,562 33,045 1,513 23,849 (4,367)1,196,602 
Net interest income2,267,701 19,521 1,513 49,066 (5,607)2,332,193 
Revenues from services and commissions643,107 66,496 87,090 125,969 5,995 928,657 
Expenses from services and commissions(99,496)(155)— (2)(19)(99,672)
Other revenues326,484 12,694 37,349 21,986 (120,048)278,465 
Revenues3,137,796 98,556 125,952 197,019 (119,679)3,439,643 
Impairment losses on financial assets(1,151,127)— — (6,013)— (1,157,140)
Net result of losses1,986,669 98,556 125,952 191,006 (119,679)2,282,504 
Other administrative expenses(956,943)(51,138)(33,610)(44,364)(10,305)(1,096,360)
Personnel expenses(469,772)(49,314)(13,238)(26,700)(10,298)(569,322)
Tax expenses(176,365)(8,305)(11,596)(25,468)(13,672)(235,406)
Depreciation and amortization(108,752)(3,012)(626)(6,732)(146)(119,268)
Income from equity interests in associates(30,597)— — — — (30,597)
Profit / (loss) before income tax244,240 (13,213)66,882 87,742 (154,100)231,550 
Income tax14,746 7,194 (22,723)(36,202)(2,017)(39,002)
Profit / (loss) for the period258,986 (6,019)44,159 51,540 (156,117)192,549 
Total assets54,572,478 639,017 193,302 439,042 (764,999)55,078,840 
Total liabilities47,664,585 401,384 93,542 194,260 (643,158)47,710,613 
Total equity6,907,893 237,633 99,760 244,782 (121,841)7,368,227 
18

logo_inter.jpg
Notes to the condensed consolidated interim financial statements
As of September 30, 2023
09/30/2022
Banking & SpendingInvestmentsInsurance BrokerageInter Shop & Commerce PlusOthersConsolidated
Interest income1,940,819 3,101 25 (12,134)1,931,815 
Interest expenses(1,327,920)(12,181)(67)— (41,322)(1,381,490)
Income from securities and derivatives1,181,401 18,103 977 10,108 (100,828)1,109,761 
Net interest income1,794,300 9,023 935 10,112 (154,284)1,660,086 
Revenues from services and commissions342,265 70,945 56,424 218,661 5,301 693,596 
Expenses from services and commissions(95,871)— — (4)1,572 (94,303)
Other revenues379,648 21,670 38,394 43,106 (181,352)301,466 
Revenues2,420,342 101,638 95,753 271,875 (328,763)2,560,845 
Impairment losses on financial assets(819,378)855 — — — (818,523)
Net result of losses1,600,964 102,493 95,753 271,875 (328,763)1,742,322 
Other administrative expenses(1,045,286)(29,067)(6,659)(20,423)(3,935)(1,105,370)
Personnel expenses(458,927)(11,766)(5,542)(13,678)(3,905)(493,818)
Tax expenses(130,450)(7,081)(10,018)(31,722)(566)(179,837)
Depreciation and amortization(101,857)(2,041)(447)(3,176)(88)(107,609)
Income from equity interests in associates(13,954)— — — — (13,954)
Profit / (loss) before income tax(149,510)52,538 73,087 202,876 (337,257)(158,266)
Income tax191,091 (17,116)(24,615)(47,434)13,448 115,374 
Profit / (loss) for the period41,581 35,422 48,472 155,442 (323,809)(42,892)
Total assets47,516,376 464,654 148,411 490,752 (2,277,093)46,343,100 
Total liabilities39,356,904 380,246 93,001 183,568 (759,723)39,253,996 
Total equity8,159,472 84,408 55,410 307,184 (1,517,370)7,089,104 

19

logo_inter.jpg
Notes to the condensed consolidated interim financial statements
As of September 30, 2023
6.Financial risk management
Risk management at Inter includes credit, market, liquidity and operational risks. Risk management activities are carried out by independent and specialized structures, in accordance with previously defined policies and strategies. In general, the activities and processes seek to identify, measure, and control the financial and non-financial risks to which Inter is subject.
The model adopted by Inter&co, Inc., involves a structure of areas and committees that seek to ensure:
Segregation of function;
Specific unit for risk management;
Defined policies and standards;
Decisions at various hierarchical levels; and
Statutory and non-statutory committees.
a.Credit risk
Credit risk is defined as the possibility of losses associated with the failure of the borrower or counterparty to meet their respective financial obligations in the agreed-upon terms, the devaluation of a credit agreement arising from the increased risk of default by the borrower, among others.
The financial instruments subject to credit risk are submitted to careful credit evaluation prior to contracting, as well as throughout the term of the respective operations. The credit analyses are based on the borrower's (or counterparty's) economic and financial capacity behavior, including payment history, credit reputation, in addition to the terms and conditions of the respective credit operation, including terms, rates and guarantees.
Loans and advances to customers, as shown in Note 12, are mainly represented by the following operations:
Credit card: credit operations related to credit card limits, without attached guarantees;
Business loans: working capital operations, receivables, discounts and loans in general, with or without attached guarantees;
Real estate loans: loans and financing operations secured by real estate;
Personal loans: loan and payroll card operations, personal loans with and without transfer guarantees; and
Agribusiness loans: financing operations for costing, investment, commercialization and/or industrialization granted to rural producers, with or without attached guarantees.
20

logo_inter.jpg
Notes to the condensed consolidated interim financial statements
As of September 30, 2023
Guarantees of real estate loans and financing
The tables below present the amount of loans and financing secured by property, broken down by loan-to-value. The loan-to-value is calculated by the ratio between the gross value of the exposure and the value of the guarantee. Gross amounts exclude any provision for impairment:
09/30/202312/31/2022
Lower than 30%761,440 693,322 
31 - 50%1,822,041 1,689,190 
51 - 70%2,750,187 2,308,020 
71 - 90%2,143,947 1,503,703 
Higher than 90%50,195 57,577 
7,527,810 6,251,812 
b.Liquidity risk
Liquidity risk is the possibility of the Group not being able to meet its expected or unexpected financial obligations efficiently, including those obligations arising from guarantees provided or even unexpected customer redemptions. Thus, liquidity risks also include the possibility that Inter is unable to negotiate the sale of assets at market prices and, in turn, incur additional losses. There were no material changes in the nature of liquidity risk exposures as of September 30, 2023.

c.Analyses of financial instruments by remaining contractual term
The table below presents the projected future realizable value of Inter’s financial assets and liabilities by contractual term:
09/30/2023
NoteUp to 3 months3 months Up to 1 yearAbove 1 yearTotal
Financial assets
Cash and cash equivalents4,297,078 — — 4,297,078 
Amounts due from financial institutions3,474,244 — — 3,474,244 
Compulsory deposits at Central Bank of Brazil2,190,872 — — 2,190,872 
Securities478,410 172,499 14,257,388 14,908,297 
Derivative financial assets9,389 — — 9,389 
Loans and advances to customers
12.e
6,965,993 6,910,440 13,167,168 27,043,601 
Other assets— — 107,977 107,977 
Total17,415,986 7,082,939 27,532,533 52,031,458 
Financial liabilities
Liabilities with financial and similar institutions9,418,245 — — 9,418,245 
Liabilities with customers14,488,579 2,221,181 12,354,228 29,063,988 
Securities issued1,260,814 2,447,535 3,754,216 7,462,565 
Derivative financial liabilities7,466 5,416 8,177 21,059 
Borrowing and onlending10,945 58,025 18,679 87,649 
Total25,186,049 4,732,157 16,135,300 46,053,506 
21

logo_inter.jpg
Notes to the condensed consolidated interim financial statements
As of September 30, 2023
12/31/2022
NoteUp to 3 months3 months Up to 1 yearAbove 1 yearTotal
Financial assets
Cash and cash equivalents1,331,648 — — 1,331,648 
Amounts due from financial institutions4,258,856 — — 4,258,856 
Compulsory deposits at Central Bank of Brazil2,854,778 — — 2,854,778 
Securities666,788 272,489 11,509,288 12,448,565 
Loans and advances to customers
12.e
6,199,963 5,916,020 10,582,345 22,698,328 
Other assets— — 87,318 87,318 
Total15,312,033 6,188,509 22,178,951 43,679,493 
Financial liabilities
Liabilities with financial and similar institutions7,906,897 — — 7,906,897 
Liabilities with customers14,873,030 849,420 7,920,354 23,642,804 
Securities issued1,149,070 421,032 4,632,063 6,202,165 
Derivative financial instruments— — 37,768 37,768 
Borrowing and onlending4,987 4,138 27,323 36,448 
Total23,933,984 1,274,590 12,617,508 37,826,082 

d.Financial assets and liabilities using a current/non-current classification
The following table represents the Group's financial assets and liabilities, segregated into current and non-current, taking into account their contractual maturity at the date of the condensed consolidated interim financial information:
09/30/2023
NoteCurrentNon-current Total
Assets
Cash and cash equivalents84,297,078 — 4,297,078 
Amounts due from financial institutions93,474,244 — 3,474,244 
Compulsory deposits at Central Bank of Brazil2,190,872 — 2,190,872 
Securities10650,909 14,257,388 14,908,297 
Derivative financial assets119,389 — 9,389 
Loans and advances to customers, net of provisions for expected loss1212,277,314 13,019,306 25,296,620 
Other assets17— 107,977 107,977 
Total22,899,806 27,384,671 50,284,477 
Liabilities
Liabilities with financial institutions189,418,245 — 9,418,245 
Liabilities with customers1916,709,760 12,354,228 29,063,988 
Securities issued203,708,349 3,754,216 7,462,565 
Derivative financial liabilities1112,882 8,177 21,059 
Borrowing and onlending2168,970 18,679 87,649 
Total29,918,206 16,135,300 46,053,506 
22

logo_inter.jpg
Notes to the condensed consolidated interim financial statements
As of September 30, 2023
12/31/2022
NoteCurrentNon-current Total
Assets
Cash and cash equivalents81,331,648 — 1,331,648 
Amounts due from financial institutions94,258,856 — 4,258,856 
Compulsory deposits at Central Bank of Brazil2,854,778 — 2,854,778 
Securities10939,277 11,509,288 12,448,565 
Loans and advances to customers, net of provisions for expected loss1211,159,852 10,220,064 21,379,916 
Other assets17— 87,318 87,318 
Total20,544,411 21,816,670 42,361,081 
Liabilities
Liabilities with financial institutions187,906,897 — 7,906,897 
Liabilities with customers1915,722,450 7,920,354 23,642,804 
Securities issued201,570,102 4,632,063 6,202,165 
Derivative financial liabilities11— 37,768 37,768 
Borrowing and onlending219,126 27,322 36,448 
Total25,208,575 12,617,507 37,826,082 

e.Market risk
Market risk is the possibility of losses resulting from fluctuations in the fair value of financial instruments held by the Institution and its subsidiaries, including the risks of transactions subject to changes in foreign exchange rates, interest rates, stock 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, allowing the measurement and monitoring of risk levels, as defined by Senior Management.
The market risk policy is monitored by the Asset and Liability Committee. Market risk controls allow the analytical assessment of information and are in a constant process of improvements. The Institution and its subsidiaries have improved the internal aspects of risk management and mitigation.
Measurement
Within the risk management process, Inter&Co classifies its operations, including derivative financial instruments, as follows:
Trading book: considers all operations intended to be traded before their contractual maturity or intended to hedge the trading portfolio.
Banking book: considers operations not classified in the trading portfolio, the main characteristic of which is the intention to hold the respective operations until maturity
In line with market practices, Inter&Co 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 twenty one days.
23

logo_inter.jpg
Notes to the condensed consolidated interim financial statements
As of September 30, 2023
We present below the 21-day VaR of the trading book:
R$ thousand09/30/202312/31/2022
Risk factor
Price index coupons4,827 4,133 
Pre fixed interest rate40 541 
Foreign currency coupons93 883 
Foreign currencies4,298 624 
Share price— 528 
Subtotal9,258 6,709 
Diversification effects (correlation)3,076 1,958 
Value-at-Risk6,182 4,751 
The VaR of the banking book:
R$ thousand09/30/202312/31/2022
Risk factor
Price index coupons496,644 234,172 
Interest rate coupons41,287 77,448 
Pre fixed interest rate21,717 55,003 
Others13,697 1,398 
Subtotal573,345 368,021 
Diversification effects (correlation)53,467 30,767 
Value-at-Risk519,878 337,254 
f.Sensitivity analysis
To determine the sensitivity of the positions to market movements, a sensitivity analysis was carried out in different scenarios, considering the relevant risk factors.
Scenario I: Parallel shocks of 1 basis point in the coupon rates of the price index, dollar coupon, interest rate and fixed rate, considering the worst losses resulting by risk factor and, consequently, not considering the correlation between the macroeconomic variables .
Scenario II: 25% shock on the price index coupon, dollar coupon, interest rate and prefixed rate, considering the worst resulting losses per risk factor and, consequently, not considering the correlation between macroeconomic variables
Scenario III: 50% shock on price index, dollar coupon, interest rate and fixed rate coupon rates, considering the worst resulting losses by risk factor and, consequently, not considering the correlation between macroeconomic variables.






24

logo_inter.jpg
Notes to the condensed consolidated interim financial statements
As of September 30, 2023
The table below shows the results of the above scenarios:
Exposures - R$ thousand
Banking and Trading bookScenarios09/30/2023
Risk factorRate variation in scenario 1Scenario IRate variation in scenario 2Scenario IIRate variation in scenario 3Scenario III
IPCA couponincrease(4,046)increase(512,831)increase(955,548)
IGP-M couponincrease(17)increase(2,003)increase(3,848)
Pre-fixed rateincrease(1,671)increase(439,281)increase(837,480)
TR couponincrease(900)increase(193,964)increase(343,490)
Othersdecrease(5)decrease(489)decrease(988)
Exposures - R$ thousand
Banking and Trading bookScenarios12/31/2022
Risk factorRate variation in scenario 1Scenario IRate variation in scenario 2Scenario IIRate variation in scenario 3Scenario III
IPCA couponincrease(3,085)increase(421,495)increase(784,028)
IGP-M couponincrease(21)increase(2,949)increase(5,542)
Pre-fixed rateincrease(470)increase(162,809)increase(338,073)
TR couponincrease(850)increase(188,954)increase(334,415)
g.Operational risk
Operational risk is defined as the possibility of losses resulting from failure, deficiency or inadequacy of any internal processes involving people, systems or from external and unexpected events. This definition includes possible losses from fraud, labor risk, as well as legal risks associated with regulatory or even contractual aspects. In line with best governance practices, Inter has an area dedicated to managing and monitoring operational risk, with defined policies and controls implemented according to the nature and complexity of the products, services and activities.
7.Fair values of financial instruments
a.Financial instruments – Classification and fair values
Financial Instruments are classified into the following categories:
Amortized cost;
Fair value through other comprehensive income (FVOCI); and
Fair value through profit or loss (FVTPL).
The fair value of a financial asset or liability is measured using one of three approaches below, weighting the levels of the fair value hierarchy as follows:
Level I – instruments with prices traded in the active market;
Level II – using financial valuation techniques, weighing data and market variables; and
Level III – uses meaningful variables that are not based on market data.
The following table sets forth the breakdown of financial assets and liabilities according to the accounting classification. It also shows the carrying amounts and fair values of financial assets and liabilities, including their levels in the fair value hierarchy. It does not include information on the fair value of financial assets and liabilities, when the carrying amount is a reasonable approximation of the fair value.
25

logo_inter.jpg
Notes to the condensed consolidated interim financial statements
As of September 30, 2023
Book valueFair value
Fair value through profit or lossFair value through other comprehensive incomeAmortized costTotalLevel 1Level 2Level 3 (*)Total
As of September 30, 2023
Financial assets
Cash and cash equivalents— — 4,297,078 4,297,078 — — — — 
Amounts due from financial institutions— — 3,474,244 3,474,244 — — — — 
Compulsory deposits at Central Bank of Brazil— — 2,190,872 2,190,872 — — — — 
Securities1,069,515 12,704,526 1,134,256 14,908,297 12,228,668 1,545,373  13,774,041 
Fair value through other comprehensive income - FVOCI 12,704,526  12,704,526 11,807,593