Brazil should overcome the high inflation before the United States and may have a good second semester, despite the turmoil generated by the elections, evaluates João Menin, president of Banco Inter.
“We have headwinds and favorable winds. It is very difficult to know which one will prevail. There is an election but, on the other hand, Brazil was ahead of the curve [à frente da curva] instead of behind the curve [atrás da curva]. We raised interest rates before, this should make inflation drop faster in Brazil than in the US, for example, where it is still climbing”, he said, in an interview with Sheet at Nasdaq’s headquarters in New York.
“This helps families’ savings a lot. Employment in Brazil is good. The fiscal part of Brazil is good. So, despite having an election, which is a contrary point, you have positive things. I am optimistic for the second half of Brazil “, he continued.
Asked which economic measures he would like to see being debated by presidential candidates, the businessman declined to comment. “What we need to have in Brazil is a nice election, a smooth process, so the first step for us to come out on top,” he summarized.
Inter transferred this Thursday (23) its shares to the American stock exchange Nasdaq, at the same time that it withdrew its shares from the Brazilian stock exchange, B3. As a result, the company’s headquarters will be in the US, and only BDRs, certificates representing the company’s shares, will be traded in Brazil. The movement seeks to raise more funds from foreign investors and increase the bank’s presence in the American market.
The company started as a bank and is now positioning itself as a technology company that offers a variety of services, such as a marketplace, insurance and international money transfers. João is the son of Rubens Menin, owner of the construction company of MRV and CNN Brasil, among other businesses.
Although the US market is facing a turbulent time, in which IPOs are being postponed or reviewed, Menin also says he sees opportunities.
“The capital market suffers a little with the rise in interest rates. The stock market has been falling in the United States, Nasdaq, Dow Jones. On the one hand, it is an interesting time to make this migration. As we are not raising money, new capital, you are not taking anymore [recursos] because the price is higher or lower. Is different. On the other hand, you create an input point [ponto de entrada] interesting. When the market gives way a little, it stabilizes as people start to take a stand. Ah, at a price x I didn’t want to buy, but now at a price x minus 10%, I want to position”, he projects.
Asked about the risk of layoffs, at a time when other Brazilian technology companies have been laying off staff, Menin said that Inter is not at risk.
“We don’t need and aren’t laying off workers. Because we have a very robust business structure, revenues, capital. Unlike some technology companies that sometimes have very little capital, very little revenue, and are unable to sustain the base of employees. Our case is different. We made four offers in the markets. An IPO in Brazil in 2018 and three more follow-ons”.
“Banks are very much measured by the Basel index, and ours is 35%, very high. We are very capitalized, we have very robust revenue. Unlike some startups that cannot keep their good talents, we can keep , even because this is the best asset we have”, he said.
Inter had a profit of R$ 27 million in the first quarter of 2022 and has 20 million customers. The company has an expanded credit portfolio of R$19.8 billion, shareholders’ equity of R$8.5 billion and total assets of R$38.5 billion.
I have over 8 years of experience in the news industry. I have worked for various news websites and have also written for a few news agencies. I mostly cover healthcare news, but I am also interested in other topics such as politics, business, and entertainment. In my free time, I enjoy writing fiction and spending time with my family and friends.
