XP Inc. Reports Fourth Quarter 2024 Results
XP Inc. (NASDAQ: XP) reported its Q4 2024 financial results, showing solid growth across key metrics. The company achieved a 9% increase in Client Assets to R$1.2 trillion, with total revenue growing 15% to R$18 billion and adjusted net income rising 17% to R$4.5 billion.
The company's strategic focus remains on three key pillars: Leadership in Core Business, Retail Cross-Sell, and Wholesale operations. XP maintained its position as Brazil's largest investment advisory network with 18,000 advisors. The company's Q4 performance showed a 37% YoY increase in Total Net Inflow to R$25 billion, while active clients grew to 4.7 million.
Notable achievements include a record efficiency ratio of 34.7% and strong performance in fixed-income trading, with daily trades reaching approximately 40,000. The company distributed 74% of net income through dividends and share buybacks in 2024, demonstrating commitment to shareholder returns.
XP Inc. (NASDAQ: XP) ha riportato i risultati finanziari del Q4 2024, mostrando una solida crescita in diversi indicatori chiave. L'azienda ha raggiunto un incremento del 9% degli Asset dei Clienti a R$1,2 trilioni, con un fatturato totale in crescita del 15% a R$18 miliardi e un utile netto rettificato in aumento del 17% a R$4,5 miliardi.
Il focus strategico dell'azienda rimane su tre pilastri chiave: Leadership nel Core Business, Vendita Incrociata al Dettaglio e operazioni all'Ingrosso. XP ha mantenuto la sua posizione di rete di consulenza agli investimenti più grande del Brasile con 18.000 consulenti. Le performance del Q4 hanno mostrato un aumento del 37% anno su anno nel Flusso Netto Totale a R$25 miliardi, mentre i clienti attivi sono cresciuti a 4,7 milioni.
Tra i risultati notevoli si segnala un rapporto di efficienza record del 34,7% e una forte performance nel trading di titoli a reddito fisso, con scambi giornalieri che hanno raggiunto circa 40.000. L'azienda ha distribuito il 74% dell'utile netto tramite dividendi e riacquisti di azioni nel 2024, dimostrando un impegno per i ritorni agli azionisti.
XP Inc. (NASDAQ: XP) informó sus resultados financieros del Q4 2024, mostrando un sólido crecimiento en métricas clave. La compañía logró un aumento del 9% en Activos de Clientes a R$1.2 billones, con ingresos totales creciendo 15% a R$18 mil millones y un ingreso neto ajustado que aumentó 17% a R$4.5 mil millones.
El enfoque estratégico de la compañía se mantiene en tres pilares clave: Liderazgo en el Negocio Principal, Venta Cruzada al por Menor y operaciones Mayoristas. XP mantuvo su posición como la red de asesoría de inversiones más grande de Brasil con 18,000 asesores. El desempeño del Q4 mostró un aumento del 37% interanual en el Flujo Neto Total a R$25 mil millones, mientras que los clientes activos crecieron a 4.7 millones.
Logros notables incluyen un ratio de eficiencia récord del 34.7% y un sólido desempeño en el trading de renta fija, con operaciones diarias alcanzando aproximadamente 40,000. La empresa distribuyó el 74% del ingreso neto a través de dividendos y recompra de acciones en 2024, demostrando un compromiso con los retornos para los accionistas.
XP Inc. (NASDAQ: XP)는 2024년 4분기 재무 결과를 발표하며 주요 지표에서 견고한 성장을 보여주었습니다. 이 회사는 고객 자산이 9% 증가하여 R$1.2 조에 달했으며, 총 수익은 15% 증가하여 R$18 억에 이르고, 조정된 순이익은 17% 증가하여 R$4.5 억에 도달했습니다.
회사의 전략적 초점은 세 가지 주요 기둥에 여전히 있습니다: 핵심 비즈니스에서의 리더십, 소매 교차 판매 및 도매 운영. XP는 18,000명의 상담사를 보유한 브라질 최대의 투자 자문 네트워크로서의 입지를 유지하고 있습니다. 4분기 실적은 총 순 유입이 전년 대비 37% 증가하여 R$25 억에 달했으며, 활성 고객 수는 470만 명으로 증가했습니다.
주목할 만한 성과로는 34.7%의 기록적인 효율성 비율과 함께 고정 수입 거래에서의 강력한 성과가 있으며, 일일 거래는 약 40,000 건에 달했습니다. 회사는 2024년 동안 순이익의 74%를 배당금과 자사주 매입을 통해 배분하여 주주 수익에 대한 의지를 보여주었습니다.
XP Inc. (NASDAQ: XP) a annoncé ses résultats financiers pour le 4ème trimestre 2024, montrant une solide croissance dans les indicateurs clés. L'entreprise a enregistré une augmentation de 9% des Actifs des Clients atteignant R$1,2 billion, avec un chiffre d'affaires total en hausse de 15% à R$18 milliards et un bénéfice net ajusté en hausse de 17% à R$4,5 milliards.
Le focus stratégique de l'entreprise reste sur trois piliers clés : Leadership dans le Core Business, Vente Croisée au Détail et opérations de Gros. XP a maintenu sa position de plus grand réseau de conseil en investissement au Brésil avec 18 000 conseillers. La performance du 4ème trimestre a montré une augmentation de 37% d'une année sur l'autre dans le Flux Net Total à R$25 milliards, tandis que le nombre de clients actifs a atteint 4,7 millions.
Parmi les réalisations notables, on note un ratio d'efficacité record de 34,7% et une forte performance dans le trading de titres à revenu fixe, avec environ 40 000 transactions par jour. L'entreprise a distribué 74% du bénéfice net par le biais de dividendes et de rachats d'actions en 2024, démontrant son engagement envers le retour sur investissement pour les actionnaires.
XP Inc. (NASDAQ: XP) hat seine finanziellen Ergebnisse für das 4. Quartal 2024 veröffentlicht, die ein solides Wachstum in allen wichtigen Kennzahlen zeigen. Das Unternehmen erzielte einen 9% Anstieg der Kundenvermögen auf R$1,2 Billionen, während die Gesamteinnahmen um 15% auf R$18 Milliarden wuchsen und das bereinigte Nettoergebnis um 17% auf R$4,5 Milliarden stieg.
Der strategische Fokus des Unternehmens bleibt auf drei Schlüsselbereichen: Führung im Kerngeschäft, Einzelhandels-Cross-Selling und Großhandelsoperationen. XP behielt seine Position als das größte Anlageberatungsnetzwerk Brasiliens mit 18.000 Beratern bei. Die Leistung im 4. Quartal zeigte einen 37% Anstieg des Gesamt-Nettozuflusses im Jahresvergleich auf R$25 Milliarden, während die aktiven Kunden auf 4,7 Millionen anstiegen.
Bemerkenswerte Erfolge umfassen ein Rekordeffizienzverhältnis von 34,7% und eine starke Leistung im Handel mit festverzinslichen Wertpapieren, wobei die täglichen Transaktionen etwa 40.000 erreichten. Das Unternehmen schüttete 2024 74% des Nettogewinns durch Dividenden und Aktienrückkäufe aus, was das Engagement für die Renditen der Aktionäre zeigt.
- 9% YoY increase in Client Assets to R$1.2 trillion
- 15% revenue growth to R$18 billion in 2024
- 17% increase in adjusted net income to R$4.5 billion
- 74% of net income distributed through dividends and buybacks
- 37% YoY increase in Total Net Inflow to R$25 billion in Q4
- Record efficiency ratio of 34.7%
- 2% decline in total net inflow for full year 2024 vs 2023
- 4% decrease in Retail DATs for full year 2024
- 9% decline in Institutional Revenue for full year 2024
- 20% YoY decrease in Institutional Revenue in Q4
Insights
XP's Q4 2024 results reveal a company successfully executing its transformation from a pure investment platform to a comprehensive financial services provider. The 17% growth in adjusted net income to
Three key developments stand out: First, the expansion in retail take rate to
The company's strategic focus on financial planning is showing early results, with clients using these services generating
The new corporate structure through Banco XP positions the company for higher capital efficiency and improved ROE. Currently operating with excess capital and an ROE of
The growth in client assets to
SÃO PAULO--(BUSINESS WIRE)--
XP Inc. (NASDAQ: XP) (“XP” or the “Company”), a leading tech-enabled platform and a trusted pioneer in providing low-fee financial products and services in
To our shareholders,
As we close out 2024, I want to begin this message by expressing my gratitude to all our clients, employees, and investors for the trust you have placed in XP Inc. over another year. We all know that this was a period marked by economic challenges, but as an entrepreneurial and resilient company, we faced each of them with the certainty that we were doing what was necessary to evolve in all aspects. Just as we have transformed the financial market over the past two decades with a strong and unique culture, I believe that this remains one of our greatest competitive advantages as we continue to challenge the status quo and lead the changes we want to see in the future.
I am proud to say that we have innovated by democratizing access to high-quality investment products and providing exclusive advisory services to Brazilian investors. Now, we want to go even further and are starting a new revolution in how Brazilians manage their financial lives. Our holistic financial planning approach considers much more than just investments. We aim to help our clients plan for their short- and long-term future, succession, tax structuring, and all financial needs throughout different life stages. This is how we envision our next steps—by delivering the best and most customized advisory and service experience. And our achievements and progress throughout 2024 show that we have advanced on this path, utilizing the full strength of our ecosystem.
As we continue down this path, I can assure you that we remain— and will continue to remain—focused on sustainable and long-term value creation for our shareholders, clients, and partners. Through disciplined execution and intensity, we have strengthened our competitive position, delivered solid revenue and profit growth, while maintaining our DNA of operational efficiency and cost control.
Highlights 2024
This year, we delivered solid operational results, growing our key performance indicators. We closed 2024 with a
Strategy
The strategic decisions made in recent years have transformed XP. I am convinced that today we are a much more prepared, efficient, and capable company, ready to fulfill our mission and deliver sustainable long-term growth. Our strategy is clear and focused on three key pillars, all centered on a culture of quality, resulting in the creation of a company that provides premium financial services, at scale, to our clients.
1. Leadership in Core Business To achieve market leadership—our primary objective—we must maintain and expand our competitive advantages, allowing us to continue growing across different investor segments. Within this strategic pillar, our key focus areas are:
A Differentiated Product Platform
We have made continuous investments in our investment platform, with a strong focus on technology and innovation. In 2024, this became even more evident. Our commitment to modernizing our fixed-income platform resulted in the launch of new liquidity products and private credit solutions, replicating banks’ ability to offer tax-exempt with daily liquidity products. These initiatives have driven daily fixed-income trades to approximately 40 thousand, representing a
Expansion and Diversification of Distribution Channels
Our distribution ecosystem is now larger, more sophisticated, and equipped with cutting-edge technology. Since 2020, we have developed three new distribution channels—Internal Advisory, Wealth Managers, and RIAs—which have gained relevance and are beginning to show significant returns.
We ended 2024 with nearly 3,000 internal advisors and solidified our leadership in the Wealth Services segment (Wealth Managers and RIAs)—a highly scalable, technology-driven business. The quality of our offering is an unmatched differentiator in the market. As a result of these advances, approximately
Smart Segmentation and Operational Efficiency
We redesigned our client segmentation framework, aligning different customer profiles with tailored service models across four key dimensions: advisory model, investment product offering, banking products, and post-sale support.
Additionally, by better aligning value propositions with specific customer segments, we have also been able to optimize serving costs, which should lead to higher margins in the future. We are just beginning to reap the benefits of this new structure, but its importance in driving market share expansion across diverse customer segments is already clear.
In this context, it is worth highlighting our Private segment, where we have made significant investments in recent years and are now starting to see the results. While segmentation played a key role in this progress, there is still a significant opportunity to unlock further potential. Today, our Private segment already outperforms in net inflows and client satisfaction compared to previous years. We are encouraged by the results of recent months and are confident in an excellent 2025.
High-Value-Added Services
Segmentation also plays a key role in how we serve different client profiles. We have customized our value proposition to different needs: retail clients receive advisory services, high-net-worth clients have access to Financial Planning, and Private clients benefit from Wealth Planning.
Financial Planning is a fundamental pillar of our strategy. XP is the only institution in
Initial results have been extremely positive. Clients utilizing Financial Planning demonstrate higher engagement, with twice the conversion rate in insurance purchases, an increase in retirement plans conversion rate from
2. Retail Cross-Sell Starting from our clients’ needs, we will expand our offer to serve their complete financial needs, aiming to break the link of investors with the incumbent banks once and for all.
The growth of our offering beyond investments has been a key pillar of this strategy. Today, between
3. Wholesale We want to fully explore the synergy of a Wholesale Bank offer with the investment universe, deepening our relationship with the main economic groups in
Our wholesale strategy is evolving rapidly, replicating the successful model we built in retail, now tailored to serve Middle Market and large corporate clients. Our competitive advantage lies in the combination of high-quality products and a differentiated service model, where we excel in quality, agility, client proximity, and cost-efficient service.
Unlike traditional banks, our model is less capital-intensive. We do not aim to accumulate assets but rather leverage our unique distribution capabilities to serve companies more efficiently. This approach allows us to operate with a higher payout ratio and ROE than industry standards, consolidating XP as an innovative alternative in the Wholesale Banking space.
Profitability Growth and New Corporate Structure
Throughout 2024, we communicated our progress on our corporate reorganization, which was concluded in November 2024. This new structure enhances our ability to deliver sustainable capital returns to our shareholders, leveraging the increased funding efficiency and higher leverage potential of Banco XP, which benefits both our Retail and Wholesale businesses.
In 2024, we distributed
Looking ahead, EPS growth and ROE expansion will be key indicators of value creation for our shareholders. We expect EPS to grow at a faster rate than net income in the coming years, primarily driven by our ongoing share repurchase programs.
Additionally, we believe that our current ROE does not yet reflect the full return on our marginally deployed capital. We continue to operate with excess capital, and we are still in the early stages of expanding our margins toward the levels outlined in our 2026 guidance.
Outlook for 2025
We believe that next year will provide another opportunity to demonstrate the counter-cyclical strength of our business model. The higher interest rate environment is expected to directly support the growth of Client Assets, which remains the key revenue driver for our main retail investment products. Additionally, we anticipate another strong year for fixed income, along with further market share expansion in strategic segments such as DCM.
Our new business verticals continue to outperform the broader market, contributing to greater revenue diversification and resilience. At the same time, we remain highly disciplined in expense management, ensuring we can adapt to changes in the economic cycle while preserving profitability.
We remain highly confident in delivering our 2026 guidance, as outlined during our 2023 Investor Day, despite the evolving macroeconomic environment.
Acknowledgments and Vision for the Future
I always say that a great legacy like ours is never built alone. Every achievement and milestone we reach is a direct reflection of the trust placed in our company and, above all, the dedication of our people. Having a strong team, deeply rooted in our culture, and sharing our ambitious vision has been essential since day one—and it continues to make all the difference. I have no doubt that we are on the right path, with the right people to achieve our ambitions and continue growing and creating value for our shareholders.
This year, I celebrated my 10-year anniversary at XP, and I can personally attest to the power of our culture in shaping our journey.
As we look ahead to 2025 and beyond, we see an immense opportunity to go even further than we have before. We remain fully confident in our strategy and increasingly committed to delivering best-in-class services to our clients, while continuously investing in our people and technologies to ensure our business scales with efficiency and a relentless focus on client needs.
I have great confidence in our advisors, which has been recognized as the best in the country for six consecutive years. We continue evolving, ensuring we are where our clients need us to be—listening, delivering better solutions, and supporting their financial journey at every stage of life.
The future of XP Inc. is also the future of Brazil’s financial market, and we will continue reinventing ourselves to transform the industry and improve people’s lives.
Thiago Maffra,
CEO XP Inc
Summary
Operating Metrics (unaudited) |
4Q24 |
4Q23 |
YoY |
3Q24 |
QoQ |
|
2024 |
2023 |
YoY |
Total Client Assets (in R$ bn) |
1,227 |
1,122 |
|
1,213 |
|
|
1,227 |
1,122 |
|
Total Net Inflow (in R$ bn) |
25 |
19 |
|
31 |
- |
|
103 |
105 |
- |
Annualized Retail Take Rate |
|
|
6 bps |
|
0 bps |
|
|
|
1 bps |
Active Clients (in '000s) |
4,684 |
4,531 |
|
4,659 |
|
|
4,684 |
4,531 |
|
Headcount (EoP) |
7,442 |
6,669 |
|
7,241 |
|
|
7,442 |
6,669 |
|
Total Advisors (in '000s) |
18.2 |
17.2 |
|
18.4 |
- |
|
14.0 |
14.3 |
- |
Retail DATs (in mn) |
2.4 |
2.2 |
|
2.3 |
|
|
2.3 |
2.4 |
- |
Retirement Plans Client Assets (in R$ bn) |
81 |
73 |
|
78 |
|
|
81 |
73 |
|
Cards TPV (in R$ bn) |
13.1 |
11.8 |
|
12.0 |
|
|
47.9 |
40.9 |
|
Credit Portfolio (in R$ bn) |
21.2 |
21.0 |
|
20.1 |
|
|
21.2 |
21.0 |
|
Gross Written Premiums (in R$ mn) |
401 |
293 |
|
362 |
|
|
1,317 |
914 |
|
|
|
|
|
|
|
|
|
|
|
Financial Metrics1 (in R$ mn) |
4Q24 |
4Q23 |
YoY |
3Q24 |
QoQ |
|
2024 |
2023 |
YoY |
Gross revenue |
4,725 |
4,309 |
|
4,536 |
|
|
18,035 |
15,726 |
|
Retail |
3,569 |
3,152 |
|
3,494 |
|
|
13,489 |
11,791 |
|
Institutional |
332 |
413 |
- |
340 |
- |
|
1,373 |
1,516 |
- |
Corporate & Issuer Services |
599 |
508 |
|
552 |
|
|
2,289 |
1,576 |
|
Other |
224 |
236 |
- |
150 |
|
|
884 |
842 |
|
Net Revenue |
4,487 |
4,046 |
|
4,319 |
|
|
17,078 |
14,860 |
|
Gross Profit |
3,109 |
2,753 |
|
2,940 |
|
|
11,726 |
10,100 |
|
Gross Margin |
|
|
122 bps |
|
120 bps |
|
|
|
69 bps |
EBT |
1,289 |
995 |
|
1,212 |
|
|
4,974 |
3,936 |
|
EBT Margin |
|
|
413 bps |
|
66 bps |
|
|
|
263 bps |
Adjusted Net Income1 |
1,210 |
1,040 |
|
1,187 |
|
|
4,544 |
3,899 |
|
Adjusted Net Margin |
|
|
126 bps |
|
-51 bps |
|
|
|
37 bps |
Adjusted Diluted EPS (in R$) |
2.23 |
1.88 |
|
2.18 |
|
|
8.28 |
7.16 |
|
Adjusted ROAE2 |
|
|
230 bps |
|
40 bps |
|
|
|
164 bps |
Adjusted ROTE3 |
|
|
356 bps |
|
78 bps |
|
|
|
376 bps |
______________________________ |
1 – Please refer to the Non-GAAP Financial Reconciliation for a detailed breakdown of these adjustments. |
2 – Annualized Return on Average Equity. |
3 – Annualized Return on Average Tangible Equity. Tangible Equity excludes Intangibles and Goodwill |
Operating KPIs
1. INVESTMENTS
Client Assets and Net Inflow (in R$ billion)
Client Assets totaled
In 4Q24, Net Inflow was
Active Clients (in ‘000s)
Active clients grew
Total Advisors (in ‘000s)
Total Advisors connected to XP, including (1) IFAs, (2) XP employees who offer advisory services, (3) Registered Investment Advisors, consultants and wealth managers, among others. As of 4Q24, we had 18.2 thousand Total Advisors, an increase of
Retail Daily Average Trades (in million)
Retail DATs totaled 2.4 million in 4Q24, up
NPS
Our NPS, a widely known survey methodology used to measure customer satisfaction, was 70 in 4Q24. Maintaining a high NPS score remains a priority for XP since our business model is built around client experience. The NPS calculation as of a given date reflects the average scores in the prior six months.
2. RETIREMENT PLANS
Retirement Plans Client Assets (in R$ billion)
As per public data published by Susep, XPV&P’s individual’s market share (PGBL and VGBL) was stable at
3. CARDS
Cards TPV (in R$ billion)
In 4Q24, Total TPV was
Active Cards (in ‘000s)
Total Active Cards were 1.4 million in 4Q24, a growth of
4. CREDIT4
Credit Portfolio (in R$ billion)
Total Credit Portfolio reached
______________________________ |
4 - From 3Q22 onwards, the credit portfolio is disclosed gross (versus previously net) of loan loss provisions, also retroactively, not including Intercompany transactions and Credit Card related loans and receivables |
5. INSURANCE
Gross Written Premiums (in R$ million)
Gross written premiums (GWP) refer to the total amount of premium income that XPs has written or sold during a particular reporting period before deductions for provisions, reinsurance and other expenses. This figure represents the total premiums that customers have agreed to pay for life insurance policies issued by the company, or sold by the company and issued by third-party insurers, including both new policies and renewals. It is a crucial metric for assessing the total business volume of an insurance company or insurance broker within that period.
In the 4Q24, Gross Written Premiums grew
Discussion of Financial Results
Total Gross Revenue1
Gross revenue reached
Retail Revenue
(in R$ mn) |
4Q24 |
4Q23 |
YoY |
3Q24 |
QoQ |
|
2024 |
2023 |
YoY |
Retail Revenue |
3,569 |
3,152 |
|
3,494 |
|
|
13,489 |
11,791 |
|
Equities |
1,001 |
1,180 |
- |
1,059 |
- |
|
4,303 |
4,444 |
- |
Fixed Income |
985 |
690 |
|
938 |
|
|
3,447 |
2,318 |
|
Funds Platform |
364 |
334 |
|
354 |
|
|
1,390 |
1,311 |
|
Retirement Plans |
103 |
94 |
|
100 |
|
|
396 |
365 |
|
Cards |
333 |
306 |
|
302 |
|
|
1,245 |
1,001 |
|
Credit |
81 |
46 |
|
75 |
|
|
266 |
180 |
|
Insurance |
58 |
46 |
|
55 |
|
|
210 |
149 |
|
Other Retail |
645 |
457 |
|
611 |
|
|
2,232 |
2,023 |
|
Annualized Retail Take Rate |
|
|
6 bps |
|
0 bps |
|
|
|
1 bps |
Retail revenue reached
Retail Revenue for 2024 was
-
Fixed Income, which grew
49% supported by strong both primary and secondary activity, reaching record high volumes. -
Cards, driven by a
17% growth in Total Payment Volume (TPV). - Other Retail, driven by FX transactions and Digital Account growth.
Take Rate
Annualized Retail Take Rate was
Institutional Revenue
Institutional revenue was
Corporate & Issuer Services Revenue
Corporate & Issuer Services revenue totaled
Other Revenue
Other revenue was
Costs of Goods Sold and Gross Margin1
Gross Margin was
SG&A Expenses1
(in R$ mn) |
4Q24 |
4Q23 |
YoY |
3Q24 |
QoQ |
|
2024 |
2023 |
YoY |
Total SG&A |
(1,577) |
(1,553) |
|
(1,515) |
|
|
(5,927) |
(5,391) |
|
People |
(1,087) |
(1,022) |
|
(984) |
|
|
(4,056) |
(3,728) |
|
Salary and Taxes |
(390) |
(393) |
- |
(444) |
- |
|
(1,664) |
(1,510) |
|
Bonuses |
(582) |
(462) |
|
(405) |
|
|
(1,844) |
(1,705) |
|
Share Based Compensation |
(115) |
(166) |
- |
(135) |
- |
|
(548) |
(513) |
|
Non-people |
(490) |
(532) |
- |
(530) |
- |
|
(1,871) |
(1,663) |
|
LTM Compensation Ratio |
|
|
-134 bps |
|
-24 bps |
|
|
|
-134 bps |
LTM Efficiency Ratio |
|
|
-157 bps |
|
-78 bps |
|
|
|
-157 bps |
Headcount (EoP) |
7,442 |
6,669 |
|
7,241 |
|
|
7,442 |
6,669 |
|
SG&A expenses totaled
Our last twelve months (LTM) compensation ratio5 in 4Q24 was
Earnings Before Taxes1
EBT was
Adjusted Net Income and Adjusted EPS1
In 4Q24, Adjusted Net Income reached a record
For the full year 2024, adjusted net income also hit a record high of
______________________________ |
5 - Compensation ratio is calculated as People SG&A (Salary and Taxes, Bonuses and Share Based Compensation) divided by Net Revenue. |
6 - Efficiency ratio is calculated as SG&A ex-revenue from incentives from Tesouro Direto, B3, and others divided by Net Revenue. |
Adjusted ROTE1,7 and Adjusted ROAE1,8
We now present Return on Tangible Equity, which excludes Intangibles and Goodwill. We believe this metric allows a more meaningful comparison with our peers.
In 4Q24, annualized Adjusted ROTE7 was
For the full year of 2024, our Adjusted ROTE7 was
Capital Management9
We are enhancing our financial disclosures to include key capital management ratios, such as the BIS Ratio and Risk-Weighted Assets (RWA). These metrics will replace the former Adjusted Gross Financial Assets and Net Asset Value (NAV) metrics, which are no longer insightful in reflecting our current business activities.
In 4Q24, after our
______________________________ |
7 – Annualized Return on Tangible Common Equity, calculated as Annualized Net Income over Tangible Common Equity, which excludes Intangibles and Goodwill, net of deferred taxes. |
8 – Annualized Return on Average Equity. |
9 – Managerial BIS Ratio is calculated using the same methodology as the BIS Ratio for our Prudential Conglomerate. However, it is based on the total assets and equity of the entire group. |
Other Information
Webcast and Conference Call Information
The Company will host a webcast to discuss its fourth quarter financial results on Tuesday, February 18th, 2025, at 5:00 pm ET (7:00 pm BRT). To participate in the earnings webcast please subscribe at 4Q24 Earnings Web Meeting. The replay will be available on XP’s investor relations website at https://investors.xpinc.com/
Important Disclosure
In reviewing the information contained in this release, you are agreeing to abide by the terms of this disclaimer. This information is being made available to each recipient solely for its information and is subject to amendment. This release is prepared by XP Inc. (the “Company,” “we” or “our”), is solely for informational purposes. This release does not constitute a prospectus and does not constitute an offer to sell or the solicitation of an offer to buy any securities. In addition, this document and any materials distributed in connection with this release are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.
This release was prepared by the Company. Neither the Company nor any of its affiliates, officers, employees or agents, make any representation or warranty, express or implied, in relation to the fairness, reasonableness, adequacy, accuracy or completeness of the information, statements or opinions, whichever their source, contained in this release or any oral information provided in connection herewith, or any data it generates and accept no responsibility, obligation or liability (whether direct or indirect, in contract, tort or otherwise) in relation to any of such information. The information and opinions contained in this release are provided as at the date of this release, are subject to change without notice and do not purport to contain all information that may be required to evaluate the Company. The information in this release is in draft form and has not been independently verified. The Company and its affiliates, officers, employees and agents expressly disclaim any and all liability which may be based on this release and any errors therein or omissions therefrom. Neither the Company nor any of its affiliates, officers, employees or agents makes any representation or warranty, express or implied, as to the achievement or reasonableness of future projections, management targets, estimates, prospects or returns, if any.
The information contained in this release does not purport to be comprehensive and has not been subject to any independent audit or review. Certain of the financial information as of and for the periods ended of December 31, 2021 and December 31, 2020, 2019, 2018 and 2017 has been derived from audited financial statements and all other financial information has been derived from unaudited interim financial statements. A significant portion of the information contained in this release is based on estimates or expectations of the Company, and there can be no assurance that these estimates or expectations are or will prove to be accurate. The Company’s internal estimates have not been verified by an external expert, and the Company cannot guarantee that a third party using different methods to assemble, analyze or compute market information and data would obtain or generate the same results.
Statements in the release, including those regarding the possible or assumed future or other performance of the Company or its industry or other trend projections, constitute forward-looking statements. These statements are generally identified by the use of words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate” and “potential,” among others. By their nature, forward-looking statements are necessarily subject to a high degree of uncertainty and involve known and unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside the control of the Company. Such factors may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements and there can be no assurance that such forward-looking statements will prove to be correct. These risks and uncertainties include factors relating to: (1) general economic, financial, political, demographic and business conditions in
Market data and industry information used throughout this release are based on management’s knowledge of the industry and the good faith estimates of management. The Company also relied, to the extent available, upon management’s review of industry surveys and publications and other publicly available information prepared by a number of third-party sources. All of the market data and industry information used in this release involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Although the Company believes that these sources are reliable, there can be no assurance as to the accuracy or completeness of this information, and the Company has not independently verified this information.
The contents hereof should not be construed as investment, legal, tax or other advice and you should consult your own advisers as to legal, business, tax and other related matters concerning an investment in the Company. The Company is not acting on your behalf and does not regard you as a customer or a client. It will not be responsible to you for providing protections afforded to clients or for advising you on the relevant transaction.
This release includes Adjustments to Reported Net Income, which is non-GAAP financial information. We believe that such information is meaningful and useful in understanding the activities and business metrics of the Company’s operations. We also believe that these non-GAAP financial measures reflect an additional way of viewing aspects of the Company’s business that, when viewed with our International Financial Reporting Standards (“IFRS”) results, as issued by the International Accounting Standards Board, provide a more complete understanding of factors and trends affecting the Company’s business. Further, investors regularly rely on non-GAAP financial measures to assess operating performance and such measures may highlight trends in the Company’s business that may not otherwise be apparent when relying on financial measures calculated in accordance with IFRS. We also believe that certain non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of public companies in the Company’s industry, many of which present these measures when reporting their results. The non-GAAP financial information is presented for informational purposes and to enhance understanding of the IFRS financial statements. The non-GAAP measures should be considered in addition to results prepared in accordance with IFRS, but not as a substitute for, or superior to, IFRS results. As other companies may determine or calculate this non-GAAP financial information differently, the usefulness of these measures for comparative purposes is limited. A reconciliation of such non-GAAP financial measures to the nearest GAAP measure is included in this release.
For purposes of this release:
“Active Clients” means the total number of retail clients served through our XP Investimentos, Rico, Clear, XP Investments and XP Private (
“Client Assets” means the market value of all client assets invested through XP’s platform and that is related to reported Retail Revenue, including equities, fixed income securities, mutual funds (including those managed by XP Gestão de Recursos Ltda., XP Advisory Gestão de Recursos Ltda. and XP Vista Asset Management Ltda., as well as by third-party asset managers), pension funds (including those from XP Vida e Previdência S.A., as well as by third-party insurance companies), exchange traded funds, COEs (Structured Notes), REITs, and uninvested cash balances (Float Balances), among others. Although Client Assets includes custody from Corporate Clients that generate Retail Revenue, it does not include custody from institutional clients (asset managers, pension funds and insurance companies).
Rounding
We have made rounding adjustments to some of the figures included in this release. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them.
Unaudited Managerial Income Statement (in R$ mn)
Managerial Income Statement |
4Q24 |
4Q23 |
YoY |
3Q24 |
QoQ |
|
2024 |
2023 |
YoY |
Total Gross Revenue |
4,725 |
4,309 |
|
4,536 |
|
|
18,035 |
15,726 |
|
Retail |
3,569 |
3,152 |
|
3,494 |
|
|
13,489 |
11,791 |
|
Equities |
1,001 |
1,180 |
- |
1,059 |
- |
|
4,303 |
4,444 |
- |
Fixed Income |
985 |
690 |
|
938 |
|
|
3,447 |
2,318 |
|
Funds Platform |
364 |
334 |
|
354 |
|
|
1,390 |
1,311 |
|
Retirement Plans |
103 |
94 |
|
100 |
|
|
396 |
365 |
|
Cards |
333 |
306 |
|
302 |
|
|
1,245 |
1,001 |
|
Credit |
81 |
46 |
|
75 |
|
|
266 |
180 |
|
Insurance |
58 |
46 |
|
55 |
|
|
210 |
149 |
|
Other |
645 |
457 |
|
611 |
|
|
2,232 |
2,023 |
|
Institutional |
332 |
413 |
- |
340 |
- |
|
1,373 |
1,516 |
- |
Corporate & Issuer Services |
599 |
508 |
|
552 |
|
|
2,289 |
1,576 |
|
Other |
224 |
236 |
- |
150 |
|
|
884 |
842 |
|
Net Revenue |
4,487 |
4,046 |
|
4,319 |
|
|
17,078 |
14,860 |
|
COGS |
(1,378) |
(1,292) |
|
(1,378) |
|
|
(5,352) |
(4,760) |
|
Gross Profit |
3,109 |
2,753 |
|
2,940 |
|
|
11,726 |
10,100 |
|
Gross Margin |
|
|
122 bps |
|
120 bps |
|
|
|
69 bps |
SG&A |
(1,567) |
(1,539) |
|
(1,454) |
|
|
(5,755) |
(5,368) |
|
People |
(1,087) |
(1,022) |
|
(984) |
|
|
(4,056) |
(3,728) |
|
Non-People |
(480) |
(517) |
- |
(470) |
|
|
(1,699) |
(1,639) |
|
D&A |
(60) |
(82) |
- |
(72) |
- |
|
(265) |
(252) |
|
Interest expense on debt |
(196) |
(167) |
|
(198) |
- |
|
(780) |
(617) |
|
Share of profit in JV & Associates |
2 |
30 |
- |
(3) |
- |
|
47 |
74 |
- |
EBT |
1,289 |
995 |
|
1,212 |
|
|
4,974 |
3,936 |
|
EBT Margin |
|
|
413 bps |
|
66 bps |
|
|
|
263 bps |
Tax Expense (Accounting) |
(79) |
45 |
- |
(26) |
|
|
(430) |
(37) |
n.a. |
Tax Expense (Tax Withholding)10 |
(185) |
(175) |
|
(154) |
|
|
(613) |
(659) |
- |
Effective tax rate (Normalized) |
( |
( |
-678 bps |
( |
-474 bps |
|
( |
( |
-352 bps |
Adjusted Net Income |
1,210 |
1,040 |
|
1,187 |
|
|
4,544 |
3,899 |
|
Adjusted Net Margin |
|
|
126 bps |
|
-51 bps |
|
|
|
37 bps |
______________________________ |
10 - Tax adjustments are related to tax withholding expenses that are recognized net in gross revenue. |
Accounting Income Statement (in R$ mn)
Accounting Income Statement |
4Q24 |
4Q23 |
YoY |
3Q24 |
QoQ |
|
2024 |
2023 |
YoY |
Net revenue from services rendered |
1,912 |
1,881 |
|
1,940 |
- |
|
7.425 |
6.532 |
|
Brokerage commission |
522 |
485 |
|
576 |
- |
|
2.133 |
1.992 |
|
Securities placement |
540 |
687 |
- |
570 |
- |
|
1.743 |
1.628 |
|
Management fees |
444 |
414 |
|
446 |
|
|
2.285 |
1.979 |
|
Insurance brokerage fee |
58 |
48 |
|
61 |
- |
|
219 |
175 |
|
Commission Fees |
317 |
220 |
|
211 |
|
|
997 |
790 |
|
Other services |
218 |
214 |
|
241 |
- |
|
734 |
589 |
|
Sales Tax and contributions on Services |
(186) |
(187) |
|
(163) |
|
|
(687) |
(622) |
|
Net income from financial instruments at amortized cost |
(887) |
311 |
- |
(861) |
|
|
(1.766) |
1.573 |
- |
Net income from financial instruments at fair value through profit or loss |
3,415 |
1,854 |
|
3,239 |
|
|
11.372 |
6.756 |
|
Total revenue and income |
4,440 |
4,046 |
|
4,319 |
|
|
17.031 |
14.860 |
|
Operating costs |
(1,276) |
(1,169) |
|
(1,332) |
- |
|
(5.063) |
(4.399) |
|
Selling expenses |
(41) |
(59) |
- |
(43) |
- |
|
(149) |
(169) |
- |
Administrative expenses |
(1,528) |
(1,547) |
- |
(1,565) |
- |
|
(6.001) |
(5.461) |
|
Other operating revenues (expenses), net |
3 |
(14) |
- |
81 |
- |
|
189 |
11 |
n.a. |
Expected credit losses |
(102) |
(124) |
- |
(47) |
|
|
(288) |
(361) |
- |
Interest expense on debt |
(196) |
(167) |
|
(198) |
- |
|
(780) |
(617) |
|
Share of profit in JV & Associates |
2 |
30 |
- |
(3) |
- |
|
47 |
74 |
- |
Income before income tax |
1,301 |
995 |
|
1,212 |
|
|
4.986 |
3.936 |
|
Income tax expense |
(121) |
45 |
- |
(26) |
n.a. |
|
(471) |
(37) |
n.a. |
Net income for the period |
1,181 |
1,040 |
|
1,187 |
|
|
4.515 |
3.899 |
|
Balance Sheet (in R$ mn)
Assets |
|
|
|
4Q24 |
3Q24 |
Cash |
|
|
|
5,611 |
4,626 |
Financial assets |
|
|
|
321,698 |
291,996 |
Fair value through profit or loss |
196,185 |
167,489 |
|||
Securities |
149,985 |
133,717 |
|||
Derivative financial instruments |
46,200 |
33,773 |
|||
Fair value through other comprehensive income |
50,880 |
50,552 |
|||
Securities |
50,880 |
50,552 |
|||
Evaluated at amortized cost |
74,633 |
73,955 |
|||
Securities |
2,836 |
3,152 |
|||
Securities purchased under agreements to resell |
22,057 |
26,153 |
|||
Securities trading and intermediation |
6,499 |
2,934 |
|||
Accounts receivable |
779 |
958 |
|||
Loan Operations |
29,228 |
27,512 |
|||
Other financial assets |
|
|
|
13,233 |
13,246 |
Other assets |
|
|
|
10,657 |
10,743 |
Recoverable taxes |
453 |
523 |
|||
Rights-of-use assets |
313 |
347 |
|||
Prepaid expenses |
4,363 |
4,479 |
|||
Other |
|
|
|
5,528 |
5,394 |
Deferred tax assets |
2,888 |
2,572 |
|||
Investments in associates and joint ventures |
3,519 |
3,431 |
|||
Property and equipment |
450 |
435 |
|||
Goodwill & Intangible assets |
|
|
|
2,634 |
2,596 |
Total Assets |
|
|
|
347,457 |
316,400 |
Liabilities |
|
|
|
4Q24 |
3Q24 |
Financial liabilities |
|
|
|
257,965 |
228,018 |
Fair value through profit or loss |
55,301 |
51,216 |
|||
Securities |
15,253 |
18,602 |
|||
Derivative financial instruments |
40,048 |
32,614 |
|||
Evaluated at amortized cost |
202,664 |
176,802 |
|||
Securities sold under repurchase agreements |
71,780 |
51,135 |
|||
Securities trading and intermediation |
18,475 |
20,040 |
|||
Financing instruments payable |
95,248 |
90,589 |
|||
Accounts payables |
763 |
806 |
|||
Borrowings |
1,666 |
- |
|||
Other financial liabilities |
|
|
|
14,731 |
14,231 |
Other liabilities |
|
|
|
69,179 |
66,781 |
Social and statutory obligations |
1,311 |
751 |
|||
Taxes and social security obligations |
418 |
508 |
|||
Retirement plans liabilities |
66,224 |
64,126 |
|||
Provisions and contingent liabilities |
146 |
135 |
|||
Other |
|
|
|
1,080 |
1,262 |
Deferred tax liabilities |
265 |
243 |
|||
Total Liabilities |
|
|
|
327,410 |
295,042 |
Equity attributable to owners of the Parent company |
|
|
|
20,044 |
21,353 |
Issued capital |
0 |
0 |
|||
Capital reserve |
20,940 |
18,401 |
|||
Other comprehensive income |
(674) |
(265) |
|||
Treasury |
(222) |
(117) |
|||
Retained earnings |
- |
3,333 |
|||
Non-controlling interest |
|
|
|
4 |
5 |
Total equity |
|
|
|
20,047 |
21,358 |
Total liabilities and equity |
|
|
|
347,457 |
316,400 |
Reconciliation of Adjusted Net Income
Adjusted Net Income is a financial measure that reflects the company’s net income, excluding certain non-recurring or non-cash items that management believes do not reflect the company’s core operating performance. In the current period, this includes adjustments related to social charges and deferred tax assets associated with Performance Stock Units (PSUs) that expired unvested.
These adjustments exclude accounting charges that neither impact cash flow nor reflect recurring earnings volatility. By removing these effects, Adjusted Net Income provides a more accurate view of the company’s underlying profitability.
Additionally, Adjusted Revenue (+R
By excluding these items, Adjusted Revenue and Adjusted Expenses offer a more accurate representation of the company’s recurring operating results, facilitating comparability across reporting periods.
(in R$ mn) |
4Q24 |
4Q23 |
YoY |
3Q24 |
QoQ |
|
2024 |
2023 |
YoY |
Net Income |
1,181 |
1,040 |
|
1,187 |
- |
|
4,515 |
3,899 |
|
Hedge of Social Charges |
47 |
- |
- |
- |
- |
|
47 |
- |
- |
Social Charges / Hedge of Social Charges |
(59) |
- |
- |
- |
- |
|
(59) |
- |
- |
Tax Expenses |
41 |
- |
- |
- |
- |
|
41 |
- |
- |
Adjusted Net Income |
1,210 |
1,040 |
|
1,187 |
|
|
4,544 |
3,899 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250218032943/en/
Investor Relations Contact
ir@xpi.com.br
Source: XP Inc.
FAQ
What was XP's total revenue growth in 2024?
How much did XP's Client Assets increase in Q4 2024?
What percentage of net income did XP distribute to shareholders in 2024?
How many active clients did XP have in Q4 2024?