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 Brazil, reported today its
financial results for the first quarter of 2024.
Summary
Operating Metrics (unaudited)
1Q24
1Q23
YoY
4Q23
QoQ
Total Client Assets (in R$
bn)
1,141
954
20%
1,122
2%
Total Net Inflow (in R$ bn)
15
16
-10%
19
-22%
Annualized Retail Take Rate
1.24%
1.21%
3 bps
1.27%
-3 bps
Active Clients (in '000s)
4,587
3,966
16%
4,531
1%
Headcount (EoP)
6,579
6,146
7%
6,669
-1%
Total Advisors (in '000s)
17.7
15.2
16%
17.2
3%
Retail DATs (in mn)
2.2
2.4
-9%
2.2
-2%
Retirement Plans Client Assets
(in R$ bn)
74
62
19%
73
0%
Cards TPV (in R$ bn)
11.3
8.6
32%
11.8
-4%
Credit Portfolio (in R$ bn)
22.1
17.5
27%
21.0
5%
Gross Written Premiums (in R$
mn)
248
172
44%
273
-9%
Financial Metrics (in R$ mn)
1Q24
1Q23
YoY
4Q23
QoQ
Gross revenue
4,270
3,326
28%
4,309
-1%
Retail
3,131
2,569
22%
3,152
-1%
Institutional
354
332
7%
413
-14%
Corporate & Issuer
Services
509
266
91%
508
0%
Other
276
158
75%
236
17%
Net Revenue
4,053
3,134
29%
4,046
0%
Gross Profit
2,737
2,050
34%
2,753
-1%
Gross Margin
67.5%
65.4%
213 bps
68.1%
-52 bps
EBT
1,088
816
33%
995
9%
EBT Margin
26.9%
26.0%
81 bps
24.6%
226 bps
Net Income
1,030
796
29%
1,040
-1%
Net Margin
25.4%
25.4%
1 bps
25.7%
-30 bps
Basic EPS (in R$)
1.88
1.48
27%
1.90
-1%
Diluted EPS (in R$)
1.85
1.48
25%
1.88
-2%
ROAE1
20.7%
18.7%
198 bps
21.1%
-42 bps
ROTE2
25.4%
20.5%
491 bps
25.6%
-17 bps
________________________
1 – Annualized Return on Average
Equity.
2 – Annualized Return on Average
Tangible Equity. Tangible Equity excludes Intangibles and
Goodwill
Operating KPIs
As we are growing and diversifying our business, we want to
update and improve some of our main KPIs for the market. We are
adding new KPIs for our total salesforce (Total Advisors), Cards
breakdown by credit and debit, and Insurance gross written
premiums.
1. INVESTMENTS
Client Assets and Net Inflow (in R$ billion)
Client Assets totaled R$1.1 trillion in 1Q24, up 20% YoY
and 2% QoQ. Year-over-year growth was driven by R$103
billion net inflows and R$84 billion of market
appreciation.
In 1Q24, Net Inflow was R$15 billion, and Retail Net
Inflow was R$13 billion, 7% higher QoQ.
Active Clients (in ‘000s)
Active clients grew 16% YoY and 1% QoQ, totaling 4.6
million in 1Q24.
Total Advisors (in ‘000s)
Starting in the 1Q24, we will disclose the Total Advisors
connected to XP, which includes (1) IFAs, as previously, (2) XP
employees who offer advisory services, (3) Registered Investment
Advisors, which includes consultants and wealth managers, among
others. Total Advisors totaled 17.7 thousand, an increase of 16%
YoY.
Retail Daily Average Trades (in million)
Retail DATs totaled 2.2 million in 1Q24, down 9% YoY and
2% QoQ.
NPS
Our NPS, a widely known survey methodology used to measure
customer satisfaction, was 71 in 1Q24. Maintaining a high
NPS score remains a priority for XP since our business model is
built around client experience. The NPS calculation as of a given
date reflects the average scores in the prior six months.
2. RETIREMENT PLANS
Retirement Plans Client Assets (in R$ billion)
As per public data published by Susep, XPV&P continued to be
#1 in net portability for individual retirement plans in the
beginning of 2024, as of March, while our total Market Share went
up to 4.2% and individual’s market share (PGBL and VGBL) to
4.8%. Total Client Assets were R$73 billion in 1Q24, up 18%
YoY. Assets from XPV&P, our proprietary insurer, grew 20% YoY,
reaching R$59 billion.
3. CARDS
Cards TPV (in R$ billion)
In 1Q24, Total TPV was R$11.3 billion, a 32% growth YoY,
and 4% decrease versus 4Q23, due to seasonality.
Active Cards (in ‘000s)
Total Active Cards were 1.2 million in 1Q24, a growth of
49% YoY and 7% QoQ, being 1.0 million Credit Cards
and 0.3 million Active Debit Cards.
4. CREDIT3
Credit Portfolio (in R$ billion)
Total Credit Portfolio reached R$22 billion as of 1Q24,
expanding 29% YoY and 7% QoQ. Currently, this Credit
Portfolio is 92% collateralized with Investments.
________________________
3 - From 3Q22 onwards, the credit
portfolio is disclosed gross (versus previously net) of loan loss
provisions, also retroactively, not including Intercompany
transactions and Credit Card related loans and receivables
5. INSURANCE
Gross Written Premiums (in R$ 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 1Q24, Gross Written Premiums grew 44% YoY and was
down 15% QoQ.
Discussion of Financial Results
Total Gross Revenue
Gross Revenue was R$4.3 billion in 1Q24, down 1% QoQ and
up 28% YoY, primarily driven by growth both in our Retail and
Corporate & Issuer Services revenue year-over-year.
Retail Revenue
(in R$ mn)
1Q24
1Q23
YoY
4Q23
QoQ
Retail Revenue
3,131
2,569
22%
3,152
-1%
Equities
1,128
1,069
6%
1,180
-4%
Fixed Income
704
332
112%
690
2%
Funds Platform
316
313
1%
334
-5%
Retirement Plans
95
87
10%
94
2%
Cards
297
204
45%
306
-3%
Credit
55
41
35%
46
22%
Insurance
45
32
41%
46
-1%
Other Retail
490
490
0%
457
7%
Annualized Retail Take Rate
1.24%
1.21%
3 bps
1.27%
-3 bps
Retail revenue was R$3.1 billion in 1Q24, stable QoQ and
up 22% YoY. Sequential stable Retail revenue was driven by the
maintenance of a strong performance in Fixed Income revenue, which
increased 2% QoQ, and was partially offset by sequential decline in
Equities revenue in the quarter. YoY growth was also led by Fixed
Income, with a 112% revenue growth YoY, and Cards, with a 45%
growth.
Take Rate
Annualized Retail Take Rate was 1.24% in 1Q24, down 3 bps QoQ,
and up 3 bps YoY.
Institutional Revenue
Institutional revenue was R$354 million in 1Q24, down 14% QoQ
and up 7% YoY, mainly impacted by lower market activity by
Institutional Clients in Brazil sequentially.
Corporate & Issuer Services Revenue
Corporate & Issuer Services revenue totaled R$509 million in
1Q24, stable QoQ and up 91% YoY, reinforcing our strategy to
diversify our revenue stream through our Wholesale Bank, also
demonstrating XP is well positioned to continue benefiting from DCM
activity in Brazil.
Other Revenue
Other revenue was R$276 million in 1Q24, up 17% QoQ and 75%
YoY.
Costs of Goods Sold and Gross Margin
Gross Margin was 67.5% in 1Q24 versus 65.4% in 1Q23 and 68.1% in
4Q23. Sequential decrease in Gross Margin was mainly related to
revenue mix between products and channels in the quarter.
SG&A Expenses4
(in R$ mn)
1Q24
1Q23
YoY
4Q23
QoQ
Total SG&A
(1,416)
(1,045)
36%
(1,553)
-9%
People
(1,007)
(760)
33%
(1,022)
-1%
Salary and Taxes
(432)
(378)
14%
(393)
10%
Bonuses
(410)
(329)
25%
(462)
-11%
Share Based Compensation
(164)
(53)
207%
(166)
-1%
Non-people
(410)
(285)
44%
(532)
-23%
LTM Compensation Ratio5
25.2%
28.5%
-328 bps
25.1%
10 bps
LTM Efficiency Ratio6
36.5%
40.4%
-384 bps
36.3%
24 bps
Headcount (EoP)
6,579
6,146
7%
6,669
-1%
SG&A4 expenses totaled R$1.4 billion in 1Q24, 9%
lower QoQ and up 36% YoY.
Our last twelve months (LTM) compensation ratio5 in 1Q24 was
25.2%, an improvement from 28.5% in 1Q23 and slightly higher
than 25.1% in 4Q23, respectively. Also, our LTM efficiency ratio6
reached 36.5% in 1Q24, reinforcing once again our focus on
cost discipline and efficient expenses management.
_______________________
4 - Total SG&A and non-people SG&A
exclude revenue from incentives from Tesouro Direto, B3.
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.
Earnings Before Taxes
EBT was R$1,088 million in 1Q24, a record number for a
first quarter, up 9% QoQ and up 33% YoY. EBT Margin was
26.9% up 226 bps QoQ and 81 bps YoY.
Net Income and EPS
In 1Q24, Net Income was R$1.0 billion, also a record
number for a first quarter, down 1% QoQ and up 29% YoY. Basic
EPS was R$1.88, down 1% QoQ and up 27% YoY. Fully diluted EPS was
R$1.85 for the quarter, down 4% QoQ and up 25% YoY.
ROTE7 and ROAE8
We now present Return on Tangible Equity, which excludes
Intangibles and Goodwill. We believe this is a more accurate
reflection of our company’s true operations, allowing investors
more meaningful comparisons with our peers.
In 1Q24, ROTE7 was 25.4%, down 17 bps QoQ and up 491 bps
YoY. Our ROAE8 in 1Q24 was 20.7%, down 42 bps QoQ and up 198 bps
YoY.
_______________________
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.
Other Information
Webcast and Conference Call Information
The Company will host a webcast to discuss its fourth quarter
financial results on Tuesday, May 21st, 2024, at 5:00 pm ET (6:00
pm BRT). To participate in the earnings webcast please subscribe at
1Q24 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 Brazil, as well
as any other countries we may serve in the future and their impact
on our business; (2) fluctuations in interest, inflation and
exchange rates in Brazil and any other countries we may serve in
the future; (3) competition in the financial services industry; (4)
our ability to implement our business strategy; (5) our ability to
adapt to the rapid pace of technological changes in the financial
services industry; (6) the reliability, performance, functionality
and quality of our products and services and the investment
performance of investment funds managed by third parties or by our
asset managers; (7) the availability of government authorizations
on terms and conditions and within periods acceptable to us; (8)
our ability to continue attracting and retaining new
appropriately-skilled employees; (9) our capitalization and level
of indebtedness; (10) the interests of our controlling
shareholders; (11) changes in government regulations applicable to
the financial services industry in Brazil and elsewhere; (12) our
ability to compete and conduct our business in the future; (13) the
success of operating initiatives, including advertising and
promotional efforts and new product, service and concept
development by us and our competitors; (14) changes in consumer
demands regarding financial products, customer experience related
to investments and technological advances, and our ability to
innovate to respond to such changes; (15) changes in labor,
distribution and other operating costs; (16) our compliance with,
and changes to, government laws, regulations and tax matters that
currently apply to us; (17) other factors that may affect our
financial condition, liquidity and results of operations.
Accordingly, you should not place undue reliance on forward-looking
statements. The forward-looking statements included herein speak
only as at the date of this release and the Company does not
undertake any obligation to update these forward-looking
statements. Past performance does not guarantee or predict future
performance. Moreover, the Company and its affiliates, officers,
employees and agents do not undertake any obligation to review,
update or confirm expectations or estimates or to release any
revisions to any forward-looking statements to reflect events that
occur or circumstances that arise in relation to the content of the
release. You are cautioned not to unduly rely on such
forward-looking statements when evaluating the information
presented and we do not intend to update any of these
forward-looking statements.
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 our Float, Adjusted Gross Financial
Assets, Net Asset Value, and Adjustments to Reported Net Income,
which are 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 (Europe) brands, with Client Assets above R$100.00 or that
have transacted at least once in the last thirty days. For purposes
of calculating this metric, if a client holds an account in more
than one of the aforementioned entities, such client will be
counted as one “active client” for each such account. For example,
if a client holds an account in each of XP Investimentos and Rico,
such client will count as two “active clients” for purposes of this
metric.
“Client Assets” means the market value of all client assets
invested through XP’s platform and that is related to reported
Retail Revenue, including equities, fixed income securities, mutual
funds (including those managed by XP Gestão de Recursos Ltda., XP
Advisory Gestão de Recursos Ltda. and XP Vista Asset Management
Ltda., as well as by third-party asset managers), pension funds
(including those from XP Vida e Previdência S.A., as well as by
third-party insurance companies), exchange traded funds, COEs
(Structured Notes), REITs, and uninvested cash balances (Float
Balances), among others. Although Client Assets includes custody
from Corporate Clients that generate Retail Revenue, it does not
include custody from institutional clients (asset managers, pension
funds and insurance companies).
Rounding
We have made rounding adjustments to some of the figures
included in this release. Accordingly, numerical figures shown as
totals in some tables may not be an arithmetic aggregation of the
figures that preceded them.
Unaudited Managerial Income Statement
(in R$ mn)
Managerial Income Statement
1Q24
1Q23
YoY
4Q23
QoQ
Total Gross Revenue
4,270
3,326
28%
4,309
-1%
Retail
3,131
2,569
22%
3,152
-1%
Equities
1,128
1,069
6%
1,180
-4%
Fixed Income
704
332
112%
690
2%
Funds Platform
316
313
1%
334
-5%
Retirement Plans
95
87
10%
94
2%
Cards
297
204
45%
306
-3%
Credit
55
41
35%
46
22%
Insurance
45
32
41%
46
-1%
Other
490
490
0%
457
7%
Institutional
354
332
7%
413
-14%
Corporate & Issuer
Services
509
266
91%
508
0%
Other
276
158
75%
236
17%
Net Revenue
4,053
3,134
29%
4,046
0%
COGS
(1,316)
(1,084)
21%
(1,292)
2%
Gross Profit
2,737
2,050
34%
2,753
-1%
Gross Margin
67.5%
65.4%
213 bps
68.1%
-52 bps
SG&A
(1,406)
(1,042)
35%
(1,539)
-9%
People
(1,007)
(760)
33%
(1,022)
-1%
Non-People
(400)
(282)
42%
(517)
-23%
D&A
(68)
(48)
42%
(82)
-17%
Interest expense on debt
(181)
(163)
11%
(167)
9%
Share of profit in joint ventures
and associates
7
19
-63%
30
-102%
EBT
1,088
816
33%
995
9%
EBT Margin
26.9%
26.0%
81 bps
24.6%
226 bps
Tax Expense (Accounting)
(59)
(20)
192%
45
-231%
Tax expense (Tax Withholding in
Funds)9
(167)
(147)
13%
(175)
-5%
Effective tax rate
(Normalized)
(18.0%)
(17.4%)
-61 bps
(11.1%)
-688 bps
Net Income
1,030
796
29%
1,040
-1%
Net Margin
25.4%
25.4%
1 bps
25.7%
-30 bps
_______________________
9 - Tax adjustments are related to tax
withholding expenses that are recognized net in gross revenue.
Accounting Income Statement (in R$
mn)
Accounting Income Statement
1Q24
1Q23
YoY
4Q23
QoQ
Net revenue from services
rendered
1,624
1,346
21%
1,881
-14%
Brokerage commission
495
494
0%
485
2%
Securities placement
490
249
97%
687
-29%
Management fees
411
382
8%
414
-1%
Insurance brokerage fee
49
41
19%
48
1%
Commission Fees
208
189
10%
220
-5%
Other services
128
114
12%
214
-40%
Sales Tax and contributions on
Services
(157)
(123)
27%
(187)
-16%
Net income from financial
instruments at amortized cost
227
502
-55%
311
-27%
Net income from financial
instruments at fair value through profit or loss
2,202
1,286
71%
1,854
19%
Total revenue and
income
4,053
3,134
29%
4,046
0%
Operating costs
(1,219)
(1,017)
20%
(1,169)
4%
Selling expenses
(32)
(15)
115%
(59)
-46%
Administrative expenses
(1,452)
(1,094)
33%
(1,547)
-6%
Other operating revenues
(expenses), net
9
19
n.a.
(14)
-164%
Expected credit losses
(97)
(68)
43%
(124)
-22%
Interest expense on debt
(181)
(163)
11%
(167)
9%
Share of profit or (loss) in
joint ventures and associates
7
19
-63%
30
-76%
Income before income
tax
1,088
816
33%
995
9%
Income tax expense
(59)
(20)
192%
45
n.a.
Net income for the
period
1,030
796
29%
1,040
-1%
Balance Sheet (in R$ mn)
Assets
1Q24
4Q23
Cash
3,939
3,943
Financial assets
257,761
229,197
Fair value through profit or
loss
144,887
127,016
Securities
112,185
103,282
Derivative financial
instruments
32,702
23,733
Fair value through other
comprehensive income
40,310
44,063
Securities
40,310
44,063
Evaluated at amortized
cost
72,564
58,119
Securities
4,459
6,855
Securities purchased under
agreements to resell
30,291
14,889
Securities trading and
intermediation
2,512
2,932
Accounts receivable
639
681
Loan Operations
29,542
28,552
Other financial assets
5,121
4,209
Other assets
9,006
7,812
Recoverable taxes
437
245
Rights-of-use assets
251
282
Prepaid expenses
4,477
4,418
Other
3,842
2,867
Deferred tax assets
2,184
2,104
Investments in associates and
joint ventures
3,115
3,109
Property and equipment
395
373
Goodwill & Intangible
assets
2,523
2,502
Total Assets
278,922
249,041
Liabilities
1Q24
4Q23
Financial liabilities
198,444
171,237
Fair value through profit or
loss
51,917
45,208
Securities
17,528
20,423
Derivative financial
instruments
34,389
24,785
Evaluated at amortized
cost
146,527
126,029
Securities sold under repurchase
agreements
49,054
33,341
Securities trading and
intermediation
16,395
16,944
Financing instruments payable
63,037
60,366
Accounts payables
954
948
Borrowings
2,267
2,199
Other financial liabilities
14,820
12,231
Other liabilities
59,935
58,266
Social and statutory
obligations
625
1,146
Taxes and social security
obligations
501
560
Retirement plans liabilities
58,654
56,409
Provisions and contingent
liabilities
101
98
Other
53
54
Deferred tax
liabilities
118
86
Total Liabilities
258,497
229,590
Equity attributable to owners
of the Parent company
20,421
19,449
Issued capital
0
0
Capital reserve
19,332
19,190
Other comprehensive income
186
376
Treasury
(127)
(117)
Retained earnings
1,030
-
Non-controlling
interest
4
1
Total equity
20,425
19,451
Total liabilities and
equity
278,922
249,041
Float, Adjusted Gross Financial Assets and Net Asset Value
(in R$ mn)
We present Adjusted Gross Financial Assets because we believe
this metric captures the liquidity that is, in fact, available to
us, net of the portion of liquidity that is related to our Float
Balance (and therefore attributable to clients). We calculate
Adjusted Gross Financial Assets as the sum of (1) Cash and
Financial Assets (comprised of Cash plus Securities – Fair value
through profit or loss, plus Securities – Fair value through other
comprehensive income, plus Securities – Evaluated at amortized
cost, plus Derivative financial instruments, plus Securities
(purchased under agreements to resell), plus Loans and Foreign
exchange portfolio (assets) less (2) Financial Liabilities
(comprised of the sum of Securities loaned, Derivative financial
instruments, Securities sold under repurchase agreements and
Private pension liabilities), Deposits, Structured Operation
Certificates (COE), Financial Bills, Foreign exchange portfolio
(liabilities), Credit cards operations and (3) less Float
Balance.
It is a measure that we track internally daily, and it more
intuitively reflects the effect of the operational profits we
generate and the variations between working capital assets and
liabilities (cash flows from operating activities), investments in
fixed and intangible assets and investments in the IFA Network
(cash flows from investing activities) and inflows and outflows
related to equity and debt securities in our capital structure
(cash flows from financing activities). Our management treats all
securities and financial instrument assets, net of financial
instrument liabilities, as balances that compose our total
liquidity, with subline items (such as, for example, “securities at
fair value through profit and loss” and “securities at fair value
through other comprehensive income”) expected to fluctuate
substantially from quarter to quarter as our treasury manages and
allocates our total liquidity to the most suitable financial
instruments.
In order to explain how we measure our cash position or
generation internally, we are introducing the Net Asset Value
concept. Since we are a financial institution, we hold several
types of financial instruments with different characteristics,
hence the definition of net cash that makes more sense from a
business perspective is the Net Asset Value. It is basically the
adjusted gross financial assets net of debt instruments.
Adjusted Gross Financial
Assets
1Q24
4Q23
Assets
261,880
231,903
(+) Cash
3,939
3,943
(+) Securities - Fair value
through profit or loss
112,185
103,282
(+) Securities - Fair value
through OCI
40,310
44,063
(+) Securities - Evaluated at
amortized cost
4,459
6,855
(+) Derivative financial
instruments
32,702
23,733
(+) Securities purchased under
agreements to resell
30,291
14,889
(+) Loans and credit card
operations
29,542
28,552
(+) Foreign exchange
portfolio
3,335
1,022
(+) Energy
3,624
2,606
(+) Central Bank Deposits
1,494
2,957
Liabilities
(227,665)
(198,386)
(-) Securities
(17,528)
(20,423)
(-) Derivative financial
instruments
(34,389)
(24,785)
(-) Securities sold under
repurchase agreements
(49,054)
(33,341)
(-) Retirement Plans
Liabilities
(58,654)
(56,409)
(-) Deposits
(27,657)
(27,494)
(-) Structured Operations
(19,135)
(18,015)
(-) Financial Bills
(10,315)
(9,020)
(-) Foreign exchange
portfolio
(3,675)
(1,362)
(-) Credit card operations
(7,044)
(7,234)
(-) Other Funding
(213)
(303)
(-) Float
(13,883)
(14,011)
(=) Adjusted Gross Financial
Assets
20,332
19,506
Net Asset Value
1Q24
4Q23
(=) Adjusted Gross Financial
Assets
20,332
19,506
Gross Debt
(10,960)
(9,575)
(-) Borrowings
(2,267)
(2,199)
(-) Debentures
(2,280)
(2,212)
(-) Structured financing
(2,976)
(1,842)
(-) Bonds
(3,436)
(3,322)
(=) Net Asset Value
9,372
9,931
Float (=net uninvested clients'
deposits)
1Q24
4Q23
Assets
(2,512)
(2,932)
(-) Securities trading and
intermediation
(2,512)
(2,932)
Liabilities
16,395
16,944
(+) Securities trading and
intermediation
16,395
16,944
(=) Float
13,883
14,011
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240521454554/en/
Investor Relations Contact ir@xpi.com.br
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