Why this direct-listed digital bank is outperforming Brazil stocks

American retail investors looking to diversify into emerging markets often find themselves restricted by the high fees and custody hurdles of American Depositary Receipts (ADRs). However, a select group of foreign companies bypasses this structure entirely by listing their primary shares directly on US exchanges. These direct listings trade exactly like domestic blue chips on everyday brokerage apps, eliminating the conversion friction that usually keeps retail capital at home.

One of the most prominent players in this category, the digital financial platform Inter&Co, surged 4.7% to close at $4.15 on November 13, 2026, following its latest quarterly earnings release. The company operates Inter, a Brazilian digital "super app" that serves 46.8 million customers with a mix of banking, credit, insurance, and shopping services. By listing directly on the Nasdaq, the company allows US investors to trade its primary Class A common shares under the ticker INTR without dealing with the administrative fees of traditional ADR programs.

The stock's upward move came on the heels of its third-quarter 2026 financial results, which were presented by management on November 13, 2026. Inter&Co reported record net income, driven by a 26% year-over-year increase in net revenue. The digital bank successfully improved its efficiency ratio to 41.9%, representing a 322 basis point advancement compared to the same period in 2025, as revenue growth comfortably outpaced a 17% increase in operational expenses.

Navigating High Interest Rates

This operational efficiency is proving crucial as Brazil's financial sector navigates a challenging macroeconomic cycle. The Central Bank of Brazil has held its benchmark Selic interest rate at a restrictive 13.75%, a policy designed to cool domestic inflation, which stood at a 12-month rate of 4.63% as of November 2026. High interest rates typically squeeze consumer credit, but Inter&Co has insulated its balance sheet by focusing on secured lending.

According to Chief Executive Officer João Vitor Menin during the November 13, 2026 earnings call, approximately 70% of the bank's 58.1 billion reais ($10.3 billion) loan portfolio is backed by collateral, such as real estate and private payroll guarantees. This structural design helped the bank maintain its cost of risk flat at 5.9% quarter-over-quarter, even as broader household leverage in Brazil deteriorated.

Furthermore, the bank's net interest margin (NIM) expanded to approximately 10%, up 70 basis points from the prior year. By keeping its funding costs low through a diversified deposit franchise that reached 81 billion reais ($14.3 billion) in total funding, the digital lender has managed to grow its loan book at nearly three times the average domestic market rate.

In your brokerage app

Inter&Co is listed in New York on the Nasdaq under the ticker INTR. Because it is a direct listing of Class A common shares rather than an ADR, US retail investors can buy and sell the stock directly through standard brokerage accounts with no foreign transaction or depositary fees. For broader exposure to the region, the iShares MSCI Brazil ETF also holds Brazilian equities, though it is heavily weighted toward traditional commodity and state-controlled enterprises.