AGI Q3 2026 Earnings Date & Estimates

AGI (NYSE:AGBK)bank S.A. is a Brazilian financial services company that combines digital banking with a network of physical service locations. Its offerings include digital accounts, payment services, cards, personal credit and insurance, with a focus on serving individuals across Brazil.

The company is particularly known for payroll-deductible loans, including credit products for retirees and public-sector employees. Agibank traces its origins to Agiplan, established in 1999, and adopted the Agibank name as it expanded its digital banking operations.

Agibank is led by founder and chief executive officer Marciano Testa.

AGI Q3 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Credit origination rebounded: Q3 originations reached BRL 10.2 billion, up 77% year over year and 43% quarter over quarter. INSS payroll lending market share reached 10%, while private payroll lending also grew strongly.
• Positive Sentiment: Profitability and efficiency improved: Net income rose 31% year over year to BRL 276 million, and annualized ROE reached 22.4%. The operating efficiency ratio improved to 44.2%, as revenue grew while operating expenses were flat quarter over quarter.
• Positive Sentiment: Fee income and subscriptions gained momentum: Fee revenue increased 30% year over year to BRL 244 million, driven by insurance brokerage and Agi+ subscriptions. Agi+ reached more than 700,000 subscribers, which management expects to support recurring revenue and customer engagement.
• Negative Sentiment: Credit costs and margin measures faced pressure: 90-day NPLs rose 20 basis points quarter over quarter to 3.5%, and the 12-month cost of risk increased to 6.1%. Annualized NIM fell 20 basis points quarter over quarter, while NIM after provisions declined 50 basis points.
• Positive Sentiment: Management is investing in an AI-enabled platform: AGI said it is embedding AI across its business units, with a focus on operational efficiency, customer experience, and more precise credit-risk models. The company presented this as a potential source of scalability, though the benefits are still developing.

Presentation

[Operator]

Good afternoon, everyone, and welcome to AGI's third quarter 2026 earnings conference call. Today's conference call is being recorded. At this time, I would like to turn the call over to Felipe Gaspar Oliveira, Head of Investor Relations. Please go ahead.

[Felipe Gaspar Oliveira, Head of Investor Relations at AGI]

Hello, everyone, and welcome to AGI's third quarter 2026 earnings conference call. Thank you for joining us. I'm Felipe, Head of Investor Relations. Joining me today are Marciano Testa, Founder and CEO of AGI Inc, and Marcello Dubeux, our CFO and Investor Relations Officer. Before we begin, I'd like to highlight what makes this quarter especially important from an investor perspective. Throughout 2026, we have been focused on improving our operating platform, accelerating our commercial momentum, and expanding our sources of revenue. This quarter provides important evidence of that progress. We are seeing stronger credit origination, increasing customer engagement, growing fee revenues, and improvement in profitability and operating efficiency. These developments are particularly relevant because they reinforce the scalability and diversification of our business model. Throughout this conference call, we'll be presenting certain non-IFRS financial measures.

[Felipe Gaspar Oliveira, Head of Investor Relations at AGI]

These are important measures for AGI's management, but should not be considered in isolation or as a substitute for IFRS measures, and may not be comparable to similarly titled measures reported by the other companies. Reconciliations between non-IFRS and IFRS measures are available at our earnings release. Unless otherwise noted, all figures discussed today are presented in Brazilian reais. I'd also like to remind everyone that today's discussion may include forward-looking statements, which are based on management's current expectations and assumptions, and are subject to risks and uncertainties that could cause actual results to differ materially. These statements are not guarantees of future performance. This outlook reflects management's current expectations and assumptions, including, among others, assumptions regarding the trajectory of Brazil's benchmark interest rates, the pace of credit originations, the regulatory environment governing payroll-linked lending, and general macroeconomic conditions in Brazil, and is not a guarantee of future performance.

[Felipe Gaspar Oliveira, Head of Investor Relations at AGI]

The outlook is only effective as of the date given and should not be considered updated or affirmed unless and until we do so publicly. Moving to today's agenda, we have three main topics. First, Marciano will share a strategic update on how we are building an AI-driven banking platform. Second, he will discuss the rapid growth of Agi+ and how it's creating new opportunities for recurring revenues. Finally, Marcello will walk us through our third quarter results, highlighting our growth momentum, operating performance, and profitability. With that, let me hand it over to Marciano. Marciano, over to you.

[Marciano Testa, Founder and CEO at AGI]

Good afternoon, everyone. I am excited to begin this quarter of 2026 earnings call with positive news. We are going to show you our platform engine. It's fully normalized. In this quarter, we grew over 62% in earnings before tax and around 40% in net income quarter-over-quarter. That is the best quarter result of this year, despite the macroeconomic scenario in Brazil. All of these results and the normalization pace of growth are based on the three anchor principles that guide our strategy decision for the long term. First, we live for the customer, which means that we prioritize client value when we make all of our decisions. Second, we win with technology, so we continuously enhance our technology capabilities, especially with AI or another new technology solution to serve and operate in a better way.

[Marciano Testa, Founder and CEO at AGI]

And third, we promote an entrepreneurial culture to figure out new perspectives of the business, diversify, and grow while maintaining discipline, focused on long-term return for our shareholders. In this slide, you can see AGI is one platform with many engines. Our business units face the customer, one proprietary foundation, tech stack, data, and intelligence, with AI embedded throughout, powering them all. We build once and share across every business unit. Every line of our customer base improves as we grow. Customer acquisition, cost to serve, funding, and especially cost of credit. That is the architecture behind our operating leverage.

[Marciano Testa, Founder and CEO at AGI]

As I said in our second principle, to continue enhancing our technology platform and attract new talent to join us, therefore, it is my pleasure to announce our new partner, Rafael Siqueira, the previous Latin AI leader in McKinsey, who is an important resource to drive our platformization technology through the integration of AI to support all of our business units. We keep pushing hard to become fully AI-driven in the next few months. We are already seeing very good signs in terms of gaining efficiency ratio and scalability, at the same time improving customer experience. But I believe the biggest positive impact will come from the data science by credit models that will become much more precise, especially in the prediction model to predict new delinquents and adjust in real time while we visualize the variables changes.

[Marciano Testa, Founder and CEO at AGI]

Deploying credit in different challenges cycle of the economy and maintain the cost of credit under control is a strong capability that we have in our organization, proven by over 10 years good long-term track record. But now, in the AI era, we can boost this capability even further. Even though the macroeconomy scenario will be more challenging, we see ourself as a countercyclical business. Now, I would like to highlight the bank by subscription. We had impressive result in the financial statement with our subscription program called Agi+. We have just begun collecting the result of this amazing project to diversify and increase the revenues with assets like capital allocation. We launched the pilot project at the end of the second quarter, and now, four months later, we reach over 700,000 subscribers, growing by close to 200% quarter-over-quarter.

[Marciano Testa, Founder and CEO at AGI]

That is a powerful, predictable revenue model going forward. Also, it is a function as a stickiness tool to keep our customer base highly engaged in our platform, while they enjoy all benefits as a member of Agi+. Here, you can see some examples of the benefits, such as prioritized exclusive access to the learning platform or mobile top-up, streaming platforms, also exclusive network of medical consultations, and on top of that, exclusive access to the pharmacy network with hard discount medicines. And other important benefits tailor-made for our customer base. As a result, we achieved 78 points NPS, one of the highest of the industry in Brazil. The improvements and the customer satisfaction that I mentioned translating our numbers. As you can see here, we grew almost 10% our customer base quarter-over-quarter. Our credit origination grew over 40% quarter-over-quarter.

[Marciano Testa, Founder and CEO at AGI]

With that, we surpassed our milestone by over 10% of market share in the payroll credit of INSS. Such market share places AGI in the top five payroll lending bank at the biggest payroll ecosystem in Latin America. Also, another impressive milestone in the fee side, over BRL 244 million in fee revenues in this quarter. Finally, we achieved BRL 276 million in net income in the third quarter. Before I hand over to Marcello, I would like to comment on the share repurchases program we announced on October 27, authorizing the repurchases of up to 3 million Class A shares over the next 12 months. On behalf of the board and the management team, this reflects our conviction in the long-term value of AGI and the strength of our business model. It is also a balanced decision.

[Marciano Testa, Founder and CEO at AGI]

Our capital position, it's over 18% capital adequacy ratio, allows us to return value to shareholders while preserving the capital we need to fund customer growth and the technology. Any repurchase will be made at the management discretion. Our priority remains growing the business with disciplined returns. With that, I pass over to Marcello and Felipe to cover the figures in details. Thank you.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

Thank you, Marciano, and good afternoon, everyone. In the third quarter, the groundwork we laid in the first half began to show in our numbers. Record customer additions, our strongest origination in more than a year, a recovery in fee revenues, and higher earnings. We made further progress against our core strategic priorities, maintaining our position among Brazil's most efficient and trusted financial institutions. On today's call, I will walk you through our third quarter results and details behind them. In the third quarter, we saw the momentum built in the first half of 2026 translating into growth and results. We delivered our strongest quarterly credit origination in over a year at BRL 10.2 billion, up 77% year-over-year and 43% quarter-over-quarter.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

Private payroll loans reached BRL 2.3 billion, up 130% year-over-year and 61% quarter-over-quarter, with first payment default continuing to improve in newer cohorts. Fee revenues were BRL 244 million in the third quarter, up 30% year-over-year and 80% quarter-over-quarter, led by insurance brokerage and Agi+ subscriptions. Finally, net income was BRL 276 million, up 31% year-over-year and 38% quarter-over-quarter, with net margin up 107 basis points year-over-year and 226 basis points quarter-over-quarter. Taking a closer look at customer growth, as seen on slide 10, total active clients count increased 29% in the third quarter compared to the prior year period and 9% quarter-over-quarter.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

We reached 8.3 million active customers as of the end of the third quarter of 2026, which we define as those with at least one active product at quarter end, a 43% CAGR over the past six years. We believe this growth demonstrates the resilience of our acquisition channels and success in customer satisfaction and retention, as earlier explained by Marciano. Turning to our credit portfolio on slide 11, total loan balances grew 12% year-over-year and 5% quarter-over-quarter in the third quarter of 2026 to BRL 38.8 billion. Our credit portfolio maintains a healthy mix, with secured loans representing 88% of total, or BRL 34.3 billion, and unsecured loans representing 12%, or BRL 4.5 billion. We believe this mix brings sustainable balance of profitability, credit quality, and focus on long-term relationships with our clients.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

Unsecured lending, which is restricted to customers who maintain primary relationships with AGI, grew to BRL 4.5 billion in third quarter, reflecting the short-term duration of this portfolio. In the third quarter, we continued to grow our base of clients with principality, reaching approximately 1.7 million clients who receive their pensions or benefits in their AGI checking accounts. Year-to-date, AGI has added more of these clients than any other financial institution in Brazil. Within INSS payroll credit, we continue to successfully execute against our strategy of being the disruptor of this segment in Brazil, as you can see on slide 12. Based on our strong positioning with the INSS and leveraging our competitive advantages in this segment, our market share in Q3 reached 10%, AGI's first-ever two-digit market share in loans, an increase of 100 basis points year-over-year.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

It is worth mentioning that we were able to expand our market share by 40 basis points just in the third quarter after overcoming the recent periods of regulatory turmoil. In private payroll credit on slide 13, our portfolio has grown to BRL 2.3 billion, an increase of 61% quarter-over-quarter and 130% year-over-year. It is worth mentioning that our appetite for origination of this product continues strong, with incremental enhancements to its credit model and observing good evolution in its credit quality, especially with first-payment defaults of new cohorts showing signs of improvement. As a result, monthly origination sustained between BRL 250 million and BRL 300 million in the quarter. With regards to credit quality of the overall portfolio on slide 14, non-performing loans exceeding 90 days increased in the third quarter to 3.5%, up 20 basis points quarter-over-quarter.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

Nevertheless, NPLs for the overall portfolio remain comfortably below the average for consumer credit in Brazil of 6.2%, which increased 70 basis points only in this quarter. That demonstrates how AGI's credit strategy is structurally resilient even in challenging macro environments, such as what is currently seen in Brazil. Moreover, it is worth mentioning that short-term quality indicators we monitor internally continue to reflect stability and low-risk profile of our portfolios. Moving to slide 15, cost of risk last 12 months was 6.1%, up 20 basis points quarter-over-quarter and 70 basis points year-over-year, reflecting both our portfolio mix and the faster pace of our credit origination, as provisions for expected losses are recognized upfront on new vintages.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

INSS payroll loans remain the anchor of our portfolio, stable at 72.3%, while private payroll loans, a currently fast-growing product, more than doubled their share in the portfolio to 5.8% from 2.8% a year ago. At the same time, unsecured loans represented 11.6% of the portfolio, and other secured loans, 10.2%. The coverage ratio was 157% at the end of September, down from 183% in June, as a result of the provisions balance divided by NPLs over 90 days, a level which we consider adequate for a portfolio that is 88% secured. Turning to our revenues on slide 16, in the third quarter, we delivered total revenue of BRL 3.2 billion, an increase of 15% year-over-year, favored by a growing credit portfolio as well as growing in fee revenues, which represented 8% of the total in the quarter, up from 4% in the previous quarter.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

On slide 17, we see net interest income of BRL 1.3 billion in the quarter, up 10% year-over-year and 1% quarter-over-quarter. The slight decline in NIM is primarily to asset mix, as the share of secured loans reached 88.4% of the portfolio, up from 86.2% a year ago, with a lower relative contribution from personal loans. Annualized NIM was 11.8%, down 20 basis points quarter-over-quarter, while NIM after provisions was 6.3%, compressing 50 basis points on a quarterly basis, reflecting the faster pace of credit origination in the quarter. Fee revenues on slide 18 reached BRL 244 million in the third quarter, up 30% year-over-year and 80% quarter-over-quarter. Such growth was driven by insurance brokerage as well as the first quarter with revenues from Agi+ subscriptions.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

Now going to efficiency on slide 19, which highlights the operating leverage embedded in our unique and highly scalable business model. Our operating efficiency ratio improved to 44.2%, 470 basis points better than the second quarter and 340 basis points better than a year ago. Our operating efficiency ratio is calculated as operating and personnel expenses divided by NII plus fee revenues net of tax expenses. This improvement mainly reflects NII plus fees growing 9% quarter-over-quarter, while operating expenses were flat in the third quarter. Reaching the bottom line, net income in the third quarter was BRL 276 million, an increase of 38% over the previous quarter and 31% year-over-year, representing annualized ROE of 22.4%, more than 500 basis points up from the 16.9% in the second quarter.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

This is the best level of quarterly profitability year-to-date, supported by the growth of 63% on earnings before taxes in this third quarter. Now, onto our funding approach on slide 21. As a regular debt issuer, AGI maintains established relationship with Brazil's credit markets, diversifying funding sources to support portfolio expansion. As a result, total funding reached BRL 40.8 billion, an increase of 15% from the third quarter of 2025. Institutional counterparties now represent 64% of total funding, while retail sources account for 36%. In August, AGI also received its most recent credit rating upgrade from S&P Global, who raised the bank's credit rating from brAA- to brAA. So all three agencies now rate the bank at the brAA level. We consider these upgrades as a significant demonstration of confidence in Agibank's business model.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

On slide 22, we can see that our total assets have grown to BRL 54.6 billion in the quarter, an increase of 22% year-over-year, with return on assets over the last 12 months of 1.8%, up 10 basis points quarter-over-quarter, driven by higher profitability in the period. Moving to equity on slide 23, shareholders' equity reached BRL 5.1 billion, up 64% year-over-year, reflecting the IPO proceeds added in February of 2026, and up 5% quarter-over-quarter, now driven by retained earnings. Lastly, our capital adequacy ratio, consolidated at the holding level, was 18.1% in the third quarter, down 60 basis points in the quarter and up 440 basis points year-over-year. Tier I capital ratio stood at 17.2%, also reflecting the receipt of the net proceeds from the IPO.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

We understand that these levels of capital adequacy allow us to continue investing in customer growth and technology while maintaining focus on long-term returns. To close, the third quarter gave us evidence in origination, in fees, and in earnings that the inflection we described last quarter is underway. We enter the fourth quarter with that momentum and remain focused on execution. On behalf of AGI, thank you for your interest and support. Now, we would like to open the call for the Q&A session. Operator?

[Operator]

Thank you. We're going to start the question and answer session for investors and analysts. If you would like to ask a question, please click on raise hand. Our first question is from Tito Labarta with Goldman Sachs.

[Tito Labarta, Analyst at Goldman Sachs]

Hi, good evening. Thank you for the call and taking my questions. Congratulations on the strong results. Good to see the INSS loans growing again. My question, how do you think about loan growth from here? Now that you are growing INSS loans again, do you think, I mean, you're just probably getting started there. Should we see a big acceleration into next year? On the other hand, the personal loans still didn't really grow that much, but on that side, you probably have to worry a bit about the macro environment, the credit cycle, which there's a lot of concerns in the market about that. How do you think about both INSS loans, but also unsecured personal loans and the growth outlook for that? Then maybe some of the other, like the private payroll continuing to grow? Thank you.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

Thank you, Tito. Good to talk to you. Thank you for the question. Regarding, I'll break up the question in our portfolios. Regarding growth for the next quarter and next year, and the environment as well. First of all, in terms of the INSS portfolio, we continue to see space to continue to increase our market share. One thing that is important to remember, we reached 10% market share is an important mark for us. This quarter, we grew only this quarter, 40 basis points in terms of market share, and we see space to continue occupying this market and growing going forward. INSS, yes, will continue to be a big driver of our growth going forward. Going to the private payroll loans, that was not part of your question, but I think is also important to mention.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

We had a 60% growth in this portfolio this quarter, and continue in the pace that we've been mentioning, that we have appetites to growth from BRL 250 million to BRL 300 million a month. In terms of origination, we see demand for that. We see the operations of the product improving consistently over time, and we have appetites to continue to have this part of the portfolio growing and occupying some space in our growth. Finally, the unsecured loans. The good news is that this portfolio stabilized this quarter. It was the first quarter where we saw that portfolio not reducing, right? It's the first time that it's growing. From now on, we expect this portfolio to have more participation. It is the portfolio that has higher yields in our portfolio, and we expect that to have more participation, continue to grow over time.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

One thing also that is important to talk about is that in this year, in the beginning of the year, we had all these disruptions derived from last year, and we did not take advantage of the increase of the minimum wages that happened in the beginning of the year. We still have this effect to happen in the beginning of the year, and could be another factor of growth that will be seen only in the first quarter next year, but it's still also another boost from our growth.

[Tito Labarta, Analyst at Goldman Sachs]

Great. Thanks, Marcello. Maybe just one quick follow-up. Now that you are growing INSS loans again, so a big jump in fees, should that also accelerate from here? Only because how big the jump was, or was there anything one time on the fees to think about?

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

No. Regarding the INSS, we had an acceleration this quarter. A smaller portion of this acceleration was due the month of September, that we had the expiration of the provisional measure that had an impact on the demand, on the space that the clients had to lend against their salary, right? Remember, we had a 5% reduction in the space of where the clients could lend against. So that had a big impact in the month of September, but that has been normalized for the month of October, and we'll probably have a growth in the fourth quarter, but not as the same as the third quarter probably. It's more normalized this quarter. On top of that, we were able and will continue to be able to see fees contributing for the revenues in this fourth quarter going forward.

[Tito Labarta, Analyst at Goldman Sachs]

Okay. Just wanted to be clear on the fee income that jumped. Does that also accelerate from here, or is it just a one-time because you started to accelerate this quarter on INSS?

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

No, no. The fee income is, I will break down that for you also. The fee income is, one hand, insurance brokerage that is due to the business model that we have, that we can be together with the client, in front of the client. So as we grow the portfolio, we have the cross-sell opportunity to sell insurance. So that will continue, so it's not a one time. Remember, in the beginning of the year, we redesigned the journey of selling insurance, and that has been in full effect and operating. So this is the first quarter where we could see really growing this line. On top of that, the Agi+ started to contribute this quarter. It will be a more recurring revenue going forward in the fourth quarter. So adding up to the number that we already showed this quarter.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

It is not a one time, and the fee business will continue to grow from the number that we are seeing this third quarter.

[Tito Labarta, Analyst at Goldman Sachs]

Okay, great. Thanks, Marcello.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

Thank you, Tito.

[Operator]

The next question comes from Ricardo Buchpiguel with BTG Pactual.

[Ricardo Buchpiguel, Analyst at BTG Pactual]

Hi, everyone, and thank you for the opportunity of making questions. Over the past 12 months, we have seen several changes in the INSS regulation with stricter authentication requirements, more restrictions on what can be offered to customers and how. It seems that from the last couple of results that this disruption seems to be easing and the impact seems to be reducing. I wanted to understand whether, do you think any of these changes that happened had any structural impact on the bank's most profitable products, which are the life insurance and the unsecured loans? Looking ahead, where do you see the bank's normalized ROE today compared to the 35%-40% levels that you reported in the past couple of years? Thank you.

[Marciano Testa, Founder and CEO at AGI]

Thank you, Ricardo, for the question. Marciano here. We don't see some concern about the new regulation, especially in the INSS. When you're looking ahead, we see the regulatory environment as a business as usual. All banks, fintechs, and financial institutions operate under regulatory environment, and it's our job to be compliant quickly and offer the customer the best experience as you can. When you're thinking what happened in INSS the last year, as a low probability and high impact, as one-off situation, it's in the Social Security Administration. In the truth, we do not see probable risks to something happening again in the coming years. In terms of the new regulatories, specifically in, we see these improvements in the sector related to the customer protections.

[Marciano Testa, Founder and CEO at AGI]

As a, for example, new biometric, we see this positive giving us of our business model opportunity to continue growth based on our hybrid model that we can advise the customers and continue growth. Marcello, can you complement?

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

Yeah, Ricardo. In terms of the growth that you asked in the end, yes, we are, as you saw in this third quarter, our earnings before taxes already demonstrating strength to growth, growing more than 60%. We are on our path to show operational leverage. You see our efficiency ratio going down more than 400 basis points, and we believe we have space to continue to do that. Gradually, the return on equity will continue to grow, as we've been mentioning in the previous quarters. We are confident that we are in position to, as we grow the portfolio, maintaining growing the margins that we expect to grow as we continue to work with products with higher margins as the unsecured loans, as we continue to grow fee business. We see the operational expenses controlled.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

We don't see necessity to add headcount in the corporate levels, for example, due to high intensity investments in AI and technology. The operational leverage, we have a setup to see that happening going forward over the next quarters.

[Ricardo Buchpiguel, Analyst at BTG Pactual]

Thank you. That's clear. Just one quick follow-up. I think an important part of the equation for the ROE to improve meaningfully with a normalized tax rate is the unsecured lending, right? If you could elaborate on if in Q4—

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

Yes.

[Ricardo Buchpiguel, Analyst at BTG Pactual]

—already you are seeing any improvement here would be also helpful.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

Sure. I think, unsecured loans, first of all, we saw impacts throughout the year. We saw that we have been working with the unsecured loans with a shorter duration type of portfolio. Because of that and the interruptions that we've gone through over the last year, we saw that reducing over time, and we said that that would stabilize as we grew more, and that's what happened. The product already stabilized and started to grow. As we continue to produce more and originate more credit in this type of loan, that will show growth. How do we show growth, right? How do we elaborate that? We are the financial institution in Brazil that, in percentage terms, grew the most in terms of new beneficiaries of the INSS in the base this year.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

We reached 1.7 million clients with principality that received their benefits in their AGI accounts. Based on that, we are able to accurately price what we can offer to them in terms of unsecured loans and have that in a controlled NPL way. We focus on that to continue to grow this portfolio. On top of that, all of these events that happened the beginning of the year that I mentioned, such as the increase in the minimum wage, also impacts the possibility of cross-selling with unsecured loans. More than that, we will continue to work with this product to have more participation in the, I mean, not percentage way, but growing in a stable way to maintain this participation that we have in the mix of the portfolio. Excellent. Okay.

[Ricardo Buchpiguel, Analyst at BTG Pactual]

Thank you.

[Operator]

The next question comes from Pedro Leduc with Itaú BBA.

[Pedro Leduc, Analyst at Itaú BBA]

Hi, everybody. Thanks so much for the call, taking the question. Congrats on reigniting the origination and the service fees. One last missing link, though, that we're looking for is the NII performance. Maybe it's because you originated towards the end of the quarter. You already mentioned mix, but you also mentioned that in September, a lot came in. I'm just trying to put it together here, the timing difference. I know in the fourth quarter, the yield curve again went up, but maybe you guys hedged. Just trying to see how NIMs could perform now that origination is back on track. Thank you.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

Hi, Leduc. Thank you for the question. Yes, you're correct. I mean, we still could not have the time for the portfolio to age enough to show the impact on the NIMs, but we are already seeing that in the month of October, as our portfolio continue to growth in all of the products that we mentioned here, be it the INSS, be it the private payroll, or the unsecured, and the NIMs are happening. We will certainly see NIMs now in a different trend in this fourth quarter, in line with the mix that we have, in line, although we have a challenging macro scenario going forward next year, but we did see a slight decrease in the interest rates in this third quarter.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

We probably won't see that anymore for the rest of the year, but also contributes a few bips also in the NIMs for the rest of the year. Felipe will complement here the question.

[Felipe Gaspar Oliveira, Head of Investor Relations at AGI]

Yeah, just to complement Marcello, in terms of asset and liability management, we are very conservative on that. So it helps as well to protect in terms of macro backdrops that we could see ahead.

[Pedro Leduc, Analyst at Itaú BBA]

Thank you, Felipe and Marcello. Congrats again.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

Thank you, Leduc.

[Operator]

I would like to remind you that to ask your question, you need to click on raise hand. Our next question comes from Marcelo Mizrahi with Bradesco BBI.

[Marcelo Mizrahi, Analyst at Bradesco BBI]

Hello, everyone. Thanks for the opportunity. My question is regarding the new reality of the cost of funding that we are seeing right now. My question is, at those levels of cost of funding, if it still makes sense to maintain the new outstanding credit to origination of the pensioners, so the payroll to pensioners at these interest rates, makes sense to maintain the origination right now, and how do you guys are dealing with these interest rates, the future interest rates on the funding side that we are seeing right now? Thank you.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

Hi, Mizrahi. Thanks for the question. Mizrahi, that's a great question, important for us to clarify again our business model, right? We don't see the INSS payroll as a product itself. We see the client as a potential portfolio of products. We see our long-term relationship with this client as what generates yield and returns for the company. So, the INSS payroll lending, it is a very powerful tool of CAC, of cross-selling, of long-term relationship, of stickiness with this client. So we've navigated with higher rates than that, remember that, in these last 12 months.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

If you remember, one year ago, rates were higher than we are now, and we did see other financial institutions not providing these products for the client, but we did, because we really believe in the business model that we have and how we can cross-sell and offer the unsecured, offer the fee business, and maintain relationship with the long term. So we will see us continue to improve in market share, in the presence in the market. With that, I'll pass to Marciano to also complement my question.

[Marciano Testa, Founder and CEO at AGI]

Thank you, Marcello. Just to complement here, our business model, we can navigate in this macroeconomic scenario better than others, competitors, especially on the assets side, because part of the government spending flow through our platform into our client checking accounts. Also, the increase in the minimum wage annually represent a massive opportunity to expand our credit portfolio across our entire customer base. As I said in the call before, ultimately, we have a lower exposure to the unemployment risk based on our customer profile. Of course, the cost of funding is a challenge for everyone, but as that in case, we will have a more focus on in the high-margin products to be able to at least maintain our net interest margin, or I can say increase the NIM the next quarters. Thank you.

[Marcello Dubeux, CFO and Investor Relations Officer at AGI]

Thank you.

[Operator]

With no further questions, today's conference is now closed. We thank you for your participating and wish you a nice evening.

Participants

Executives

• Felipe Gaspar Oliveira, Head of Investor Relations
• Marciano Testa, Founder and CEO
• Marcello Dubeux, CFO and Investor Relations Officer

Analysts

• Tito Labarta, Analyst at Goldman Sachs
• Ricardo Buchpiguel, Analyst at BTG Pactual
• Pedro Leduc, Analyst at Itaú BBA
• Marcelo Mizrahi, Analyst at Bradesco BBI