Brazil’s digital banks come of age

Further reading

Inter’s CFO says cost control boosted RoE by 800bp in 2023

Banco Pan’s CEO sees profitability doubling in two years

A year ago, the return on equity of Brazilian digital lender Nubank was zero (or 0.001% to be precise). Today, it is 23%.

Similarly, a year ago the RoE of another digital firm, Banco Inter, was -0.2%, while today it is 8.5%, having grown by two percentage points in each of the past three quarters. Inter’s chief executive, João Menin, is targeting a RoE of 30% by 2028 and believes that the longer-term sustainable RoE is somewhere above that number.