UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of February 2025
Commission File Number: 001-39155
XP Inc.
(Exact name of registrant as specified in its
charter)
20, Genesis Close
Grand Cayman, George Town
Cayman Islands KY-1-1208
+55 (11) 3075-0429
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F:
Form 20-F ☒ Form
40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes ☐ No ☒
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes ☐ No ☒
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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XP Inc. |
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By: |
/s/ Victor Mansur |
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Name: Victor Mansur |
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Title: Chief Financial Officer |
Date: February 18, 2025
EXHIBIT INDEX
EXHIBIT 99.1
XP Inc. Reports Fourth Quarter
2024 Results
São Paulo, Brazil, February
18, 2025 – 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 fourth quarter of 2024.
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 9% increase in Client Assets, reaching R$1.2 trillion, and reinforced our
leadership as the largest and most qualified investment advisory network in Brazil, with 18 thousand advisors. Our revenues grew by 15%,
reaching R$18 billion, and our adjusted net income increased by 17%, reaching R$4.5 billion, driven by a record efficiency ratio of 34.7%.
All the figures mentioned above are historical records, achieved in a year of significant macroeconomic volatility, demonstrating that
our strategies for diversifying results through new services and products have made us much more resilient.
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 38% CAGR since 2020, positioning us as an increasingly unique market maker in Brazil.
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 60% of our
retail net inflows in 2024 came from these new channels, highlighting our ability to grow and diversify revenue streams.
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 Brazil to offer a comprehensive Financial Planning solution for clients with assets above R$300,000.
This differentiation not only enhances client satisfaction but also increases platform loyalty.
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 30% to 41%, and net inflows that are 43% higher than those who do not use the service. We are at the beginning
of a new wave of transformation in the market—and we will continue to lead it.
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 15% and 20% of our revenue comes from non-investment-related products, boosting share
of wallet, customer satisfaction (NPS), and reducing churn. Despite these advances, penetration of these products remains relatively low
within our client base, reinforcing our confidence in accelerated growth potential for the coming years.
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 Brazil.
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 74% of our net income through
dividends and share buybacks, maintaining a disciplined approach that balances capital returns with reinvestment opportunities for future
growth.
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 |
9% |
1,213 |
1% |
|
1,227 |
1,122 |
9% |
| Total Net Inflow (in R$ bn) |
25 |
19 |
37% |
31 |
-17% |
|
103 |
105 |
-2% |
| Annualized Retail Take Rate |
1.33% |
1.27% |
6 bps |
1.33% |
0 bps |
|
1.29% |
1.28% |
1 bps |
| Active Clients (in '000s) |
4,684 |
4,531 |
3% |
4,659 |
1% |
|
4,684 |
4,531 |
3% |
| Headcount (EoP) |
7,442 |
6,669 |
12% |
7,241 |
3% |
|
7,442 |
6,669 |
12% |
| Total Advisors (in '000s) |
18.2 |
17.2 |
5% |
18.4 |
-1% |
|
14.0 |
14.3 |
-2% |
| Retail DATs (in mn) |
2.4 |
2.2 |
9% |
2.3 |
5% |
|
2.3 |
2.4 |
-4% |
| Retirement Plans Client Assets (in R$ bn) |
81 |
73 |
10% |
78 |
3% |
|
81 |
73 |
10% |
| Cards TPV (in R$ bn) |
13.1 |
11.8 |
11% |
12.0 |
9% |
|
47.9 |
40.9 |
17% |
| Credit Portfolio (in R$ bn) |
21.2 |
21.0 |
1% |
20.1 |
6% |
|
21.2 |
21.0 |
1% |
| Gross Written Premiums (in R$ mn) |
401 |
293 |
37% |
362 |
11% |
|
1,317 |
914 |
44% |
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|
|
|
|
|
|
|
|
|
| Financial Metrics1 (in R$ mn) |
4Q24 |
4Q23 |
YoY |
3Q24 |
QoQ |
|
2024 |
2023 |
YoY |
| Gross revenue |
4,725 |
4,309 |
10% |
4,536 |
4% |
|
18,035 |
15,726 |
15% |
| Retail |
3,569 |
3,152 |
13% |
3,494 |
2% |
|
13,489 |
11,791 |
14% |
| Institutional |
332 |
413 |
-20% |
340 |
-2% |
|
1,373 |
1,516 |
-9% |
| Corporate & Issuer Services |
599 |
508 |
18% |
552 |
9% |
|
2,289 |
1,576 |
45% |
| Other |
224 |
236 |
-5% |
150 |
49% |
|
884 |
842 |
5% |
| Net Revenue |
4,487 |
4,046 |
11% |
4,319 |
4% |
|
17,078 |
14,860 |
15% |
| Gross Profit |
3,109 |
2,753 |
13% |
2,940 |
6% |
|
11,726 |
10,100 |
16% |
| Gross Margin |
69.3% |
68.1% |
122 bps |
68.1% |
120 bps |
|
68.7% |
68.0% |
69 bps |
| EBT |
1,289 |
995 |
30% |
1,212 |
6% |
|
4,974 |
3,936 |
26% |
| EBT Margin |
28.7% |
24.6% |
413 bps |
28.1% |
66 bps |
|
29.1% |
26.5% |
263 bps |
| Adjusted Net Income1 |
1,210 |
1,040 |
16% |
1,187 |
2% |
|
4,544 |
3,899 |
17% |
| Adjusted Net Margin |
27.0% |
25.7% |
126 bps |
27.5% |
-51 bps |
|
26.6% |
26.2% |
37 bps |
| Adjusted Diluted EPS (in R$) |
2.23 |
1.88 |
19% |
2.18 |
2% |
|
8.28 |
7.16 |
16% |
| Adjusted ROAE2 |
23.4% |
21.1% |
230 bps |
23.0% |
40 bps |
|
23.0% |
21.4% |
164 bps |
| Adjusted ROTE3 |
29.2% |
25.6% |
356 bps |
28.4% |
78 bps |
|
28.7% |
25.0% |
376 bps |
1 – Please refer
to the Non-GAAP Financial Reconciliation for a detailed breakdown of these adjustments.
2 – Annualized
Return on Average Equity.
3 – Annualized
Return on Average Tangible Equity. Tangible Equity excludes Intangibles and Goodwill
Operating KPIs
Client Assets and Net Inflow (in R$ billion)
Client Assets totaled R$1.2 trillion in
4Q24, up 9% YoY and 1% QoQ. Year-over-year growth was driven by R$103 billion net inflow and R$2 billion of market appreciation.
In 4Q24, Net Inflow was R$25 billion, and Retail
Net Inflow was R$20 billion, 21% lower QoQ, and 63% higher YoY. Accumulated Retail Net Inflow for the full year of 2024 was R$81
billion, or 34% higher compared to 2023, excluding the effects from inorganic Net Inflow from Modal’s Acquisition.
Active Clients (in ‘000s)
Active clients grew 3% YoY and 1% QoQ, totaling
4.7 million in 4Q24.
Total Advisors (in ‘000s)
Total Advisors connected to XP, including (1) IFAs,
(2) XP employees who offer advisory services, (3) Registered Investment Advisors, consultants and wealth managers, among others. As of
4Q24, we had 18.2 thousand Total Advisors, an increase of 5% YoY.
Retail Daily Average Trades (in million)
Retail DATs totaled 2.4 million in 4Q24,
up 9% YoY and down 5% QoQ. Retail DATs in 2024 was 2.3 million, 4% lower YoY.
NPS
Our NPS, a widely known survey methodology used
to measure customer satisfaction, was 70 in 4Q24. Maintaining a high NPS score remains a priority for XP since our business model
is built around client experience. The NPS calculation as of a given date reflects the average scores in the prior six months.
Retirement
Plans Client Assets (in R$ billion)
As per public data published by Susep, XPV&P’s
individual’s market share (PGBL and VGBL) was stable at 4.9%. Total Client Assets were R$81 billion in 4Q24, up 10% YoY.
Assets from XPV&P, our proprietary insurer, grew 17% YoY, reaching R$66 billion.
Cards TPV (in R$ billion)
In 4Q24, Total TPV was R$13.1 billion, a
11% growth YoY, and 9% increase QoQ. For the full year of 2024, Total TPV was R$47.9 billion, 17% higher compared to 2023.
Active Cards (in ‘000s)
Total Active Cards were 1.4 million in 4Q24,
a growth of 18% YoY and 3% QoQ, being 1.0 million Credit Cards and 0.4 million Active Debit Cards.
Credit Portfolio (in R$ billion)
Total Credit Portfolio reached R$21 billion
as of 4Q24, expanding 1% YoY and 6% QoQ. Currently, this Credit Portfolio is 81% collateralized with Investments.
4
- From 3Q22 onwards, the credit portfolio is disclosed gross (versus previously net) of loan loss provisions, also retroactively, not
including Intercompany transactions and Credit Card related loans and receivables
Gross Written Premiums (in R$ 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 37%
YoY and 11% QoQ.
Discussion of Financial Results
Total Gross Revenue1
Gross revenue reached R$4.7 billion in 4Q24,
reflecting a 4% increase quarter-over-quarter (QoQ) and a 10% increase year-over-year (YoY). For the full year 2024, gross revenue was
R$18.0 billion, up 15% YoY. Both quarterly and annual growth were primarily driven by our Retail and Corporate & Issuer Services.
Retail Revenue
| (in R$ mn) |
4Q24 |
4Q23 |
YoY |
3Q24 |
QoQ |
|
2024 |
2023 |
YoY |
| Retail Revenue |
3,569 |
3,152 |
13% |
3,494 |
2% |
|
13,489 |
11,791 |
14% |
| Equities |
1,001 |
1,180 |
-15% |
1,059 |
-5% |
|
4,303 |
4,444 |
-3% |
| Fixed Income |
985 |
690 |
43% |
938 |
5% |
|
3,447 |
2,318 |
49% |
| Funds Platform |
364 |
334 |
9% |
354 |
3% |
|
1,390 |
1,311 |
6% |
| Retirement Plans |
103 |
94 |
10% |
100 |
2% |
|
396 |
365 |
8% |
| Cards |
333 |
306 |
9% |
302 |
10% |
|
1,245 |
1,001 |
24% |
| Credit |
81 |
46 |
79% |
75 |
9% |
|
266 |
180 |
48% |
| Insurance |
58 |
46 |
27% |
55 |
5% |
|
210 |
149 |
41% |
| Other Retail |
645 |
457 |
41% |
611 |
6% |
|
2,232 |
2,023 |
10% |
| Annualized Retail Take Rate |
1.33% |
1.27% |
6 bps |
1.33% |
0 bps |
|
1.29% |
1.28% |
1 bps |
Retail revenue reached R$3,569 million in
4Q24, marking a 2% increase quarter-over-quarter (QoQ) and a 13% increase YoY. This sequential growth was driven by another strong quarterly
performance in Fixed Income, which grew 5% QoQ, and the positive seasonality of Cards revenue in 4Q24, which was 10% higher QoQ. However,
this was partially offset by a 5% decline in Equities revenue.
Retail Revenue for 2024 was R$13,489 million,
representing a 14% growth YoY, primarily driven by:
| 1. | Fixed Income, which grew 49% supported by strong both primary and secondary activity, reaching
record high volumes. |
| 2. | Cards, driven by a 17% growth in Total Payment Volume (TPV). |
| 3. | Other Retail, driven by FX transactions and Digital Account growth. |
Take Rate
Annualized Retail Take Rate was 1.33% in 4Q24,
stable QoQ. In 2024, take rate was 1.29%, 1 bps higher YoY.
Institutional Revenue
Institutional revenue was R$332 million in 4Q24,
down 2% QoQ and 20% YoY. For the full year 2024, Institutional Revevue was R$1,373 million, 9% lower than the previous year.
Corporate & Issuer Services Revenue
Corporate & Issuer Services revenue totaled
R$599 million in 4Q24, up 9% QoQ and up 18% YoY, with another strong quarterly contribution from DCM. For the full year of 2024, Corporate
& Issuer Services Revenue was R$2,289 million, 45% higher than in 2023. This reinforces our strategy to diversify our revenue
stream through our Wholesale Bank demonstrates that XP is well positioned to continue benefiting from DCM activity in Brazil. Moreover,
after the changes in our corporate structure we have now a more competitive banking ecosystem for both Retail and Wholesale activities.
Other Revenue
Other revenue was R$224 million in 4Q24, 49% higher
QoQ and 5% lower YoY. For the full year of 2024, Other revenue was R$2,232 million, 10% higher compared to 2023.
Costs of Goods Sold and Gross Margin1
Gross Margin was 69.3% in 4Q24 versus 68.1% in
4Q23 and 68.1% in 3Q24. Sequential increase in Gross Margin was mainly related to revenue mix between products and channels in the quarter.
For the full year of 2024, Gross Margin was 68.7%, 69 bps higher than in 2023.
SG&A Expenses1
| (in R$ mn) |
4Q24 |
4Q23 |
YoY |
3Q24 |
QoQ |
|
2024 |
2023 |
YoY |
| Total SG&A |
(1,577) |
(1,553) |
2% |
(1,515) |
4% |
|
(5,927) |
(5,391) |
10% |
| People |
(1,087) |
(1,022) |
6% |
(984) |
10% |
|
(4,056) |
(3,728) |
9% |
| Salary and Taxes |
(390) |
(393) |
-1% |
(444) |
-12% |
|
(1,664) |
(1,510) |
10% |
| Bonuses |
(582) |
(462) |
26% |
(405) |
44% |
|
(1,844) |
(1,705) |
8% |
| Share Based Compensation |
(115) |
(166) |
-31% |
(135) |
-15% |
|
(548) |
(513) |
7% |
| Non-people |
(490) |
(532) |
-8% |
(530) |
-8% |
|
(1,871) |
(1,663) |
13% |
| LTM Compensation Ratio |
23.7% |
25.1% |
-134 bps |
24.0% |
-24 bps |
|
23.7% |
25.1% |
-134 bps |
| LTM Efficiency Ratio |
34.7% |
36.3% |
-157 bps |
35.5% |
-78 bps |
|
34.7% |
36.3% |
-157 bps |
| Headcount (EoP) |
7,442 |
6,669 |
12% |
7,241 |
3% |
|
7,442 |
6,669 |
12% |
SG&A expenses totaled R$1.6 billion
in 4Q24, 4% higher QoQ, and 2% higher YoY. For the full year of 2024, SG&A was R$5.9 billion, 10% higher compared
to 2023.
Our last twelve months (LTM) compensation
ratio5 in 4Q24 was 23.7%, an improvement from 25.1% in 4Q23 and from the 24.0% in 3Q24. Also, our LTM efficiency
ratio6
reached 34.7% in
4Q24, the lowest level since our IPO, reinforcing once again our focus on cost discipline and efficient expenses management.
Earnings Before Taxes1
EBT was R$1,289 million in 4Q24, up 6% QoQ
and up 30% YoY. EBT Margin was 28.7%. Our EBT Margin was 66 bps lower QoQ, and 413 bps higher YoY. For the full year of 2024, EBT
was R$4,974 million, up 26% YoY, and EBT Margin was 29.1%, 263 bps higher than in 2023.
Adjusted Net Income and Adjusted EPS1
In 4Q24, Adjusted Net Income reached a record R$1.2
billion, showing a 2% QoQ and a 16% rise YoY. Adjusted Basic EPS was R$2.25, reflecting a 2% QoQ growth and an 18% YoY increase. Adjusted
diluted EPS was R$2.23 for the quarter, up 19% QoQ and 2% YoY.
For the full year 2024, adjusted net income also
hit a record high of R$4.5 billion, marking a 17% YoY growth. Adjusted Basic EPS was R$8.39, up 16% from the previous year, while
Adjusted diluted EPS was R$8.28, also 16% higher YoY.
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
29.2%, up 78 bps QoQ and up 356 bps YoY. Our annualized Adjusted ROAE8 in 4Q24 was 23.4%, up 40 bps QoQ and up 230 bps
YoY.
For the full year of 2024, our Adjusted ROTE7
was 28.7%, 376 bps higher compared to 2023. Our Adjusted ROAE8 was 23.0%, or 164 bps higher YoY.
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 R$2.1 billion capital return
through dividend and share buybacks, our BIS Ratio was 17.7%, 376 bps lower QoQ and 249 bps lower YoY. While our total RWA was
R$105.8 billion, with a 12% increase QoQ and 35% increase 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.
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/
Investor Relations Contact
ir@xpi.com.br
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 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 (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 |
4Q24 |
4Q23 |
YoY |
3Q24 |
QoQ |
|
2024 |
2023 |
YoY |
| Total Gross Revenue |
4,725 |
4,309 |
10% |
4,536 |
4% |
|
18,035 |
15,726 |
15% |
| Retail |
3,569 |
3,152 |
13% |
3,494 |
2% |
|
13,489 |
11,791 |
14% |
| Equities |
1,001 |
1,180 |
-15% |
1,059 |
-5% |
|
4,303 |
4,444 |
-3% |
| Fixed Income |
985 |
690 |
43% |
938 |
5% |
|
3,447 |
2,318 |
49% |
| Funds Platform |
364 |
334 |
9% |
354 |
3% |
|
1,390 |
1,311 |
6% |
| Retirement Plans |
103 |
94 |
10% |
100 |
2% |
|
396 |
365 |
8% |
| Cards |
333 |
306 |
9% |
302 |
10% |
|
1,245 |
1,001 |
24% |
| Credit |
81 |
46 |
79% |
75 |
9% |
|
266 |
180 |
48% |
| Insurance |
58 |
46 |
27% |
55 |
5% |
|
210 |
149 |
41% |
| Other |
645 |
457 |
41% |
611 |
6% |
|
2,232 |
2,023 |
10% |
| Institutional |
332 |
413 |
-20% |
340 |
-2% |
|
1,373 |
1,516 |
-9% |
| Corporate & Issuer Services |
599 |
508 |
18% |
552 |
9% |
|
2,289 |
1,576 |
45% |
| Other |
224 |
236 |
-5% |
150 |
49% |
|
884 |
842 |
5% |
| Net Revenue |
4,487 |
4,046 |
11% |
4,319 |
4% |
|
17,078 |
14,860 |
15% |
| COGS |
(1,378) |
(1,292) |
7% |
(1,378) |
0% |
|
(5,352) |
(4,760) |
12% |
| Gross Profit |
3,109 |
2,753 |
13% |
2,940 |
6% |
|
11,726 |
10,100 |
16% |
| Gross Margin |
69.3% |
68.1% |
122 bps |
68.1% |
120 bps |
|
68.7% |
68.0% |
69 bps |
| SG&A |
(1,567) |
(1,539) |
2% |
(1,454) |
8% |
|
(5,755) |
(5,368) |
7% |
| People |
(1,087) |
(1,022) |
6% |
(984) |
10% |
|
(4,056) |
(3,728) |
9% |
| Non-People |
(480) |
(517) |
-7% |
(470) |
2% |
|
(1,699) |
(1,639) |
4% |
| D&A |
(60) |
(82) |
-28% |
(72) |
-17% |
|
(265) |
(252) |
5% |
| Interest expense on debt |
(196) |
(167) |
17% |
(198) |
-1% |
|
(780) |
(617) |
26% |
| Share of profit in JV & Associates |
2 |
30 |
-92% |
(3) |
-72% |
|
47 |
74 |
-36% |
| EBT |
1,289 |
995 |
30% |
1,212 |
6% |
|
4,974 |
3,936 |
26% |
| EBT Margin |
28.7% |
24.6% |
413 bps |
28.1% |
66 bps |
|
29.1% |
26.5% |
263 bps |
| Tax Expense (Accounting) |
(79) |
45 |
-276% |
(26) |
206% |
|
(430) |
(37) |
n.a. |
| Tax Expense (Tax Withholding)10 |
(185) |
(175) |
6% |
(154) |
20% |
|
(613) |
(659) |
-7% |
| Effective tax rate (Normalized) |
(17.9%) |
(11.1%) |
-678 bps |
(13.2%) |
-474 bps |
|
(18.7%) |
(15.1%) |
-352 bps |
| Adjusted Net Income |
1,210 |
1,040 |
16% |
1,187 |
2% |
|
4,544 |
3,899 |
17% |
| Adjusted Net Margin |
27.0% |
25.7% |
126 bps |
27.5% |
-51 bps |
|
26.6% |
26.2% |
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 |
2% |
1,940 |
-1% |
|
7.425 |
6.532 |
14% |
| Brokerage commission |
522 |
485 |
8% |
576 |
-9% |
|
2.133 |
1.992 |
7% |
| Securities placement |
540 |
687 |
-21% |
570 |
-5% |
|
1.743 |
1.628 |
7% |
| Management fees |
444 |
414 |
7% |
446 |
0% |
|
2.285 |
1.979 |
15% |
| Insurance brokerage fee |
58 |
48 |
20% |
61 |
-4% |
|
219 |
175 |
25% |
| Commission Fees |
317 |
220 |
44% |
211 |
50% |
|
997 |
790 |
26% |
| Other services |
218 |
214 |
2% |
241 |
-10% |
|
734 |
589 |
25% |
| Sales Tax and contributions on Services |
(186) |
(187) |
0% |
(163) |
15% |
|
(687) |
(622) |
10% |
| Net income from financial instruments at amortized cost |
(887) |
311 |
-386% |
(861) |
3% |
|
(1.766) |
1.573 |
-212% |
| Net income from financial instruments at fair value through profit or loss |
3,415 |
1,854 |
84% |
3,239 |
5% |
|
11.372 |
6.756 |
68% |
| Total revenue and income |
4,440 |
4,046 |
10% |
4,319 |
3% |
|
17.031 |
14.860 |
15% |
| Operating costs |
(1,276) |
(1,169) |
9% |
(1,332) |
-4% |
|
(5.063) |
(4.399) |
15% |
| Selling expenses |
(41) |
(59) |
-30% |
(43) |
-3% |
|
(149) |
(169) |
-12% |
| Administrative expenses |
(1,528) |
(1,547) |
-1% |
(1,565) |
-2% |
|
(6.001) |
(5.461) |
10% |
| Other operating revenues (expenses), net |
3 |
(14) |
-122% |
81 |
-96% |
|
189 |
11 |
n.a. |
| Expected credit losses |
(102) |
(124) |
-17% |
(47) |
120% |
|
(288) |
(361) |
-20% |
| Interest expense on debt |
(196) |
(167) |
17% |
(198) |
-1% |
|
(780) |
(617) |
26% |
| Share of profit in JV & Associates |
2 |
30 |
-92% |
(3) |
-175% |
|
47 |
74 |
-36% |
| Income before income tax |
1,301 |
995 |
31% |
1,212 |
7% |
|
4.986 |
3.936 |
27% |
| Income tax expense |
(121) |
45 |
-369% |
(26) |
n.a. |
|
(471) |
(37) |
n.a. |
| Net income for the period |
1,181 |
1,040 |
14% |
1,187 |
0% |
|
4.515 |
3.899 |
16% |
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$47mm) and Adjusted
SG&A (-R$59mm) also resulted in an Adjusted EBT. These financial measures exclude certain items that management believes are not indicative
of the company’s core operating performance. These adjustments relate to one-off impacts from hedging social charges associated
with share-based compensation expenses.
By excluding these items, Adjusted Revenue and
Adjusted Expenses offer a more accurate representation of the company’s recurring operating results, facilitating comparability
across reporting periods.
| (in R$ mn) |
4Q24 |
4Q23 |
YoY |
3Q24 |
QoQ |
|
2024 |
2023 |
YoY |
| Net Income |
1,181 |
1,040 |
14% |
1,187 |
-1% |
|
4,515 |
3,899 |
16% |
| 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 |
16% |
1,187 |
2% |
|
4,544 |
3,899 |
17% |
EXHIBIT 99.2
4Q24 Earnings Presentation
2 Important Disclosure IN REVIEWING THE INFORMATION CONTAINED IN THIS PRESENTATION, 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 presentation is prepared by XP Inc . (the “Company,” “we” or “our”), is solely for informational purposes . This presentation 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 presentation 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 presentation 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 presentation 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 presentation are provided as at the date of this presentation, 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 presentation 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 presentation 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 presentation 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 December 31 , 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 presentation 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 presentation, 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 ) the negative impacts of the COVID - 19 pandemic on global, regional and national economies and the related market volatility and protracted economic downturn ; and ( 18 ) 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 presentation 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 presentation . 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 presentation 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 presentation 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 presentation also includes certain 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 presentation . For purposes of this presentation : “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, including equities, fixed income securities, mutual funds (including those managed by XP Gestão de Recursos Ltda . , XP Advisory Gestão 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 (Floating Balances), among others .
Index 4Q24 Financials and Main KPIs 02 Final Remarks 03 01 Key Highlights Q&A 04 Appendix 05
01. Key Highlights
5 Highlights Notes: 1 – Annualized Return on Average Tangible Equity. Tangible Equity excludes Intangibles and Goodwill; 2 – Managerial BIS Ratio, c alculated in accordance with Central Brank methodology A Well Succeeded Case in the Brazilian Market 2.11 3.71 6.26 6.25 7.16 8.28 2019 2020 2021 2022 2023 2024 Adj. Diluted EPS R$ R$ 1.2 trillion Client’s assets ( + 9 % YoY) Core Investment KPIs 1 8 .2 k Total Advisors ( +5% YoY) 4.7 million Active Clients ( +3% YoY) 28.7 % Adj. ROTE 1 (+ 376bps YoY) 17.7 % BIS Ratio 2 16.0 % Adj. Diluted EPS Growth YoY Balance Sheet and Profitability R$ 18.0 billion Gross Revenue ( +15% YoY) R$ 5.0 billion Adj . EBT (+26% YoY) R$ 4.5 billion Adj. Net Income (+1 7 % YoY) Income Statement 2024 R$ 4.7 billion Gross Revenue ( +10% YoY) R$ 1.3 billion Adj. EBT ( +30% YoY) R$ 1.2 billion Adj. Net Income ( +16% YoY) 4Q24 +31% CAGR 2024
6 Strategy Tracker 2024 Current Status CAGR vs. 3Q23 LTM CAGR Guidance 2026 1 R$bn 18.0 a 17% 14% - 20% Gross Revenue 14.2 a 13% 11% - 15% Investments 2.6 a 32% 26% - 35% New Verticals 1.3 a 50% 28% - 47% Corporate & SMB 29% 283 bps 30% - 34% EBT Margin 14.8 18.0 3Q23 LTM @ ID 2024 2026 Guidance 26.8 Gross Revenue R$ Billion EBT Margin 30% - 34% 29% 26% 12% CAGR 22% CAGR 22.8 17% CAGR On Track to Deliver 2026 Guidance
7 Strategy Tracker Retail Investments Leadership in Core Business Our main goal is to achieve leadership in the investment market, our core business. To do this, we need to maintain and expand our differentials and continue to grow in all customer segments . Retail Cross - Sell Grow with Our Clients’ Needs 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. Corporate & SMB Premier Service with Unique Value 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 Brazil.' Quality Financial planning at scale, a new competitive advantage that enhances both the engagement and experience of our investor cli ent s. ]
8 Retail Investments – Consistent Net New Money Notes: 1 – Excluding Inorganic Net New Money from Modal’s acquisition in 3Q23. Net New Money (1) R$ Billion Serving Clients Wherever and However They Want 12 25 20 7 6 6 4Q23 3Q24 4Q24 19 31 25 +37% 60 81 10 22 2023 2024 71 103 +45% Ability To Grow In Our Core Business Retail Corporate Retail Strategy – Keeping Our Moats Expanding and Protecting our Core Business Multi - Channel Distribution and Expansion Through Internal Advisors and RIAs 2 Product Platform Best Investment Options – from Fixed - Income to Alternative Investments 1 Segmentation with Accurate Value Proposition Competitive Pricing, Services and Product Range to each client segment 3 Value - Added Services Through Large - Scale Financial Planning 4
9 Retail Investments Strategy Multi - Channel Distribution and Expansion Through Internal Advisors and RIAs 2 Product Platform Best Investment Options 1 Segmentation with Accurate Value Proposition Competitive Pricing, Services and Product Range 3 Value - Added Services Through Large - Scale Financial Planning 4 Largest Maket Maker in All Fixed Income Instruments Innovative Structuring & Technology Market Share in Secondary Markets Market Leadership Bank Notes, Corporate Credit and Sovereign Bonds Diverse Product Offering Over 18k Investment Specialists Robust Distribution Network 181 266 334 387 -5,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 0 50 100 150 200 250 300 350 400 4Q20 4Q21 4Q22 4Q23 4Q24 106 …While Keeping a Consistent Traded Volume to Client Assets Ratio Through the Years Growing Fixed Income Client Assets… Product Innovation Diversification Beyond Equities Retail Fixed Income Platform Evolution Activity Reached a New Structural Level Fixed Income Client Assets (R$bn) Daily Avg Fixed Income Trades (Fixed Income DATs) Retail Fixed Income Traded Volume as a % of Total Fixed Income Client Assets Fixed Income Powerhouse Distribution and Technology Capabilities ~ 40 thousand A vg Daily Fixed Income Trades in our Secondary Market Platform 38% CAGR since 2020 Liquidity Provider To Illiquid Bank Notes Secondary Market Platform Most Active Platform in the Market
10 Retail Investments Strategy Multi - Channel Distribution and Expansion Through Internal Advisors and RIAs 2 Product Platform Best Investment Options 1 Segmentation with Accurate Value Proposition Competitive Pricing, Services and Product Range 3 Value - Added Services Through Large - Scale Financial Planning 4 Proprietary Tools XP HUB XP CRM Data & Intelligence Daily Preparation & Review Relationship Management & Execution ▪ Performance reports ▪ Client satisfaction tracking ▪ Educational content ▪ A.I. portfolio recommendations ▪ Client task management ▪ Prospect dashboard ▪ Client portfolio reports ▪ Portfolio simulation & performance forecasting Way of Work & Service Model Expansion & Diversification Service Model 11x increase in average number of daily Activities performed by Advisors & Adherence to Tasks is now an important KPI for Advisor’s Compensation 2024 IFAs Wealth Managers RIAs B2C B2B Internal Advisors Self - Directed Private New New New 2020 IFAs Self - Directed Private New Distribution Channels Represented ~60% of Net New Money in 2024
11 Private Unique Premium Exclusive Digital Segment 10mm+ 3mm – 10mm 300k – 3mm 50k – 300k <50k Investment Range (R$) Integrated Solutions (Investments and Credit) Wealth Management Financial Planning Transactional Advisory & Upsell Transactional/Banking Focus Wealth Planning Financial Planning Objective Based Advisory Model Investment Options Banking Experience Client Support Retail Investments Strategy Multi - Channel Distribution and Expansion Through Internal Advisors and RIAs 2 Product Platform Best Investment Options 1 Segmentation with Accurate Value Proposition Competitive Pricing, Services and Product Range 3 Value - Added Services Through Large - Scale Financial Planning 4 New Segment Framework Tailored value proposition aligned with each segment’s needs and cost - to - serve dynamics ▪ Seamless, long - term benefits package that clients can easily understand and value ▪ New Credit Cards 2025 Roadmap Drive cross - sell and expand Share of Wallet Increasingly Higher Differentiation : Better Prices (e.g. Fixed Income) and Access to Exclusive Offerings and Capacity Increasingly Higher Differentiation: Access to Premium Credit Cards, Better FX Spreads and Better Credit Spreads Increasingly Higher Differentiation: Priority SLA, Events and Experiences
12 Retail Investments Strategy Multi - Channel Distribution and Expansion Through Internal Advisors and RIAs 2 Product Platform Best Investment Options 1 Segmentation with Accurate Value Proposition Competitive Pricing, Services and Product Range 3 Value - Added Services Through Large - Scale Financial Planning 4 XP is the Only Player Providing Financial Planning at Scale Insurance 2x higher conversion Retirement Plans from 30% to 41% conversion Net New Money 43% higher Strong Early Indicators for clients with Financial Planning
13 Strategy Tracker Retail Investments Leadership in Core Business Our main goal is to achieve leadership in the investment market, our core business. To do this, we need to maintain and expand our differentials and continue to grow in all customer segments . Retail Cross - Sell Grow with Our Clients’ Needs 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. Corporate & SMB Premier Service with Unique Value 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 Brazil.' Quality Financial planning at scale, a new competitive advantage that enhances both the engagement and experience of our investor cli ent s.
14 Retail Cross - Sell Notes: 1 - Active Credit Cards vs. Total Active Clients, 2 – Company Estimates for Peers and Market Average, 3 – Penetration base d on Active Clients from XP and Rico only, 4 - Excluding Credit Cards, 5 - Includes FX, Digital Account, Global Investments, Consortium and Other Insurance Penetration (2)(3) Cards TPV (in R$bn ) Main KPI 11.8 12.0 13.1 4Q23 3Q24 4Q24 +11% 4Q24 Peers Avg. 29% 50% 293 362 401 4Q23 3Q24 4Q24 +37% 4Q24 Market Avg. 2% 17% 73 78 81 4Q23 3Q24 4Q24 +10% 4Q24 Market Leader 5% 27% 46 75 81 0 2 4 0 50 100 1.0% 4Q23 1.6% 3Q24 1.7% 4Q24 +79% Other New Products Revenue (5) (in R$mm ) 105 201 213 4Q23 3Q24 4Q24 +103% Life Insurance Gross Written Premium (in R$mm ) Retirement Plans Assets (in R$bn ) Credit – NII (4) (in R$mm ) ▪ FX ▪ Digital Account ▪ Global Investments ▪ Consortium Market Share Penetration (1)(2) % Expected Credit Losses NIM < 1 % ECL Increasingly Higher Penetration and Revenue Contribution
15 Quality Financial planning at scale, a new competitive advantage that enhances both the engagement and experience of our investor cli ent s. Strategy Tracker Retail Investments Leadership in Core Business Our main goal is to achieve leadership in the investment market, our core business. To do this, we need to maintain and expand our differentials and continue to grow in all customer segments . Retail Cross - Sell Grow with Our Clients’ Needs Starting from our clients’ needs, we will expand our offer to serve their complete financial needs , aiming to break the link of investors with the incumbent banks once and for all. Corporate & SMB Premier Service with Unique Value We want to fully explore the synergy of a Wholesale Bank offer with the investment universe, deepening our relationship with the main economic groups in Brazil.
16 Wholesale 3,153 3,662 2023 2024 Institutional, Corporate and Issuer Services Gross Revenue R$ Million +16% YoY Investment Banking DCM Volume 1 (in R$bn ) Main KPI 7.1 8.6 9.3 4Q23 3Q24 4Q24 +31% 2024 Market Leader 13% 23% 488 481 3Q24 4Q24 - 1% 4Q24 Market Leader 16% 18% 16 23 32 4Q23 3Q24 4Q24 +104% Institutional Broker Dealer – Traded Volume 2 (in R$bn ) Corporate Securities (in R$bn ) OTC Derivatives Ranking 3 FX Ranking 4 15 th 41 st 2020 4Q24 10 th 2022 4 th 4Q24 Market Share 1 st in CRA and FII 3 rd in DCM Market Share ▪ Interest Rate Swaps #1 4Q24 Market Leader 8% 16% 4Q24 Market Leader 1% 13% Market Share Market Share 1 st Corporate Credit Broker in Brazil Note 1 - Source: Anbima, Distribuição de RF & Híbridos ; 2 – Source: Bloomberg; 3 – Source: B3; 4 – Source: Central Bank, considers primary activity only
17 2025 Solid Pillars Supporting our Growth Story 2024 Revenues Retail Core Investments Retail New Verticals Float Issuer Services Issuer Services Institutional & Corporate 2025 R$ 18 bn >10% Client Assets growing with Selic Rate and Net New Money ▪ Equities ▪ Fixed Income ▪ Funds Growing above Local Market ▪ New Credit Card ▪ Digital Account ▪ Consortium Higher Avg. Selic Rate Lower DCM Volumes in the Industry… … but Higher Market Share for XP >10% Growth Gross Revenue Drivers
02. 4 Q24 Financials
19 Gross Revenue 3,152 3,494 3,569 413 340 332 508 552 599 236 224 4Q23 150 3Q24 4Q24 4,309 4,536 4,725 Retail Institutional Corporate & Issuer Services Other 73% 77% 76% 10% 7% 7% 12% 12% 13% 5% 3% 5% 4Q23 3Q24 4Q24 Retail Institutional Corporate & Issuer Services Other Gross Revenue posted +15% growthYoY Retail sustained the same representativeness YoY 11,791 13,489 1,516 1,373 1,576 2,289 842 884 2023 2024 15,726 18,035 +15% 75% 75% 10% 8% 10% 13% 5% 5% 2023 2024 Gross Revenue Breakdown R$ Million Gross Revenue Breakdown %
20 Retail Gross Revenue Double Digit Growth Underpinned by Revenue Diversification 3,152 3,494 3,569 4Q23 3Q24 4Q24 +13% 37% 30% 28% 22% 27% 28% 11% 10% 10% 16% 15% 16% 15% 17% 18% 4Q23 3Q24 4Q24 Equities Fixed Income Funds Platform New Verticals Other Retail +14% YoY growth in Gross Revenue Fixed Income as the Main Highlight in the Quarter and in the Year 11,791 13,489 2023 2024 +14% 38% 32% 20% 26% 11% 10% 14% 16% 17% 17% 2023 2024 Retail Revenue R$ Million Retail Gross Revenue Breakdown %
21 Corporate & Issuer Services Revenue Bringing Competitive Edge to our Ecosystem… ...With +45% YoY Growth 177 229 262 330 323 337 4Q23 3Q24 4Q24 508 552 599 +18% Corporate Issuer Services 668 965 908 1,324 2023 2024 1,576 2,289 +45% Corporate & Issuer Services Breakdown R$ Million
22 1,022 984 1,087 532 530 490 4Q23 3Q24 4Q24 1,553 1,515 1,577 +2% Sales, General & Administrative Expenses (SG&A)¹ Notes: 1 – Excludes Revenue from incentives from Tesouro Direto , B3 and others. People Non - people ...Expenses Discipline Translating into Higher Efficiency 3,728 4,056 1,663 1,871 2023 2024 5,391 5,927 +10% SG&A¹ R$ Million
23 Efficiency and Compensation Ratios 1 LTM % Efficiency & Compensation Ratios Notes: 1 – Calculated as SG&A ex - revenue from incentives from Tesouro Direto , B3, and others divided by Net Revenue. 2 – Calculated as People SG&A (Salary and Taxes, Bonuses and Share Based Compensation) divided by Net Revenue;. 29.5% 25.1% 23.7% 42.0% 36.3% 34.7% 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Another Record for Efficiency Ratio Compensation Ratio Efficiency Ratio Better Efficiency While Enhancing Client Experience… ...With Efficiency Ratio Reaching All Time Low in Our History
24 EBT 1 R$ Million 1 - Please refer to the Non - GAAP Reconciliation in the appendix. C onsiders the adjustment in Net Revenue of +R$47mm and SG&A of - R$59mm. Our Strategy Resulted an Unprecedented Performance… Margin EBT Expanded +260bps During the Year Earning Before Taxes (EBT) 995 1,212 1,289 0 5 10 15 20 25 30 35 40 45 400 500 600 700 800 900 1,000 1,100 1,200 1,300 24.6% 4Q23 28.1% 3Q24 28.7% 4Q24 30% EBT Margin 3,936 4,974 0 5 10 15 20 25 30 35 40 45 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 26.5% 2023 29.1% 2024 +26%
25 1 – Please refer to the Non - GAAP Reconciliation in the appendix All Time High Results in the Quarter… … With 17% Growth in the Year Adjusted Net Income 1,040 1,187 1,210 0 5 10 15 20 25 30 35 40 45 0 200 400 600 800 1,000 1,200 1,400 25.7% 4Q23 27.5% 3Q24 27.0% 4Q24 16% Adjusted Net Margin 3,899 4,544 0 5 10 15 20 25 30 35 40 45 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 26.2% 2023 26.4% 2024 +17% Adjusted Net Income 1 R$ Million
26 RWA / Total Assets 31% 30% 30% 19.1% 19.6% 16.1% 1.1% 0.9% 0.8% 0.9% 0.8% 4Q23 3Q24 4Q24 20.2% 21.5% 17.7% Credit RWA aligned with our Business Model, with a R$32mm VaR 2 Risk - Weighted Assets and VaR Capital Management Notes: 1 – Managerial BIS Ratio, calculated in accordance with Central Brank methodology, 2 – Average Daily VaR,1 day, 95% BIS Ratio 1 48% 45% 40% 16% 28% 36% 36% 26% 24% 4Q23 3Q24 4Q24 Reducing excess capital through a more efficient capital management Common Equity Tier 1 Additional Tier 1 Tier 2 Credit RWA Market RWA Operational RWA VaR 2 (% of Equity) 12 bps 10 bps 16 bps
27 Consistent Capital Distribution to Shareholders Payout Ratio 1,815 3,542 2,000 916 1,354 2022 2023 2024 4,458 3,354 Capital Management In Three Years ~ R$10bn In Dividends and Share Repurchases (1) Dividends Paid Share Repurchases Dividends Paid and Share Repurchases R$ Million 2022 2023 2024 2025 - 2026E 51% 114% 74% >50% (1)
28 25.0% 28.7% 21.4% 23.0% 2023 2024 25.6% 28.4% 29.2% 21.1% 23.0% 23.4% 4Q23 3Q24 4Q24 3,899 4,543 8.28 0 1 2 3 4 5 6 7 8 9 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 7.16 2023 2024 Adjusted Annualized ROTE¹ and ROAE² % EPS and Return on Tangible Equity Notes: 1 – Annualized Return on Average Tangible Equity. Tangible Equity excludes Intangibles and Goodwill; 2 – Annualized Retur n on Average Equity; 3 – Net Income Attributable to Owners of Parent Company. 4 – Calculated based on Adjusted Net Income ROTE ROAE Adjusted EPS 4 ROTE of 29.2%, driven by 17% YoY growth in Net Income and a R$2 billion dividend in 4Q24 1,042 1,186 1,210 1.88 2.18 2.23 0.0 0.5 1.0 1.5 2.0 2.5 0 200 400 600 800 1,000 1,200 1,400 1,600 4Q23 3Q24 4Q24 Net Income Diluted EPS (R$)
29 Cost of Capital Evolution @ XP Prudential Conglomerate Corporate Structure Update Approximately ~35% Lower CET1 From ~15.5% to 10% 15.5% Target BIS Ratio @Prudenial Conglomerate 13.5% Target BIS Ratio @Prudential Conglomerate 0 % AT1 and T2 3.5% AT1 and T2 More Competitive Banking Ecosystem for both Retail and Wholesale Dec 24
03. Final Remarks
31 All Weather Business Solid Year x All - Guidance on Track 1 2 x Retail NNM Consistency Net New Money 3 x Financial Planning at Scale as a New Edge Moats Final Remarks 4 x Strong Capital Distribution and EPS Increase Capital Return
04. Q&A
33 Total Loan Portfolio¹ Note: 1 – Gross of Expected Credit Losses. Total Unsecured Secured R$ billion 21.2 4.1 17.2 Loans 8.4 2.4 6.0 Credit Card 31.9 26.3 5.6 Corporate Securities 61.5 32.7 28.8 Credit Portfolio Main Activities • Investment Banking • Fixed Income Distribution • Corporate Credit
34 Adjusted Assets [A - B - C] [C] Float [B] Retirement Plans [A] Assets 262.757 18.475 66.224 347.457 Total 83.761 - 66.224 149.985 Securities - Fair Value through P&L 22.057 - - 22.057 Securities - Repos 38.904 11.976 - 50.880 Securities - Fair Value through OCI - 6.499 - 6.499 Securities - Trading & Intermediation 49.036 - - 49.036 Other Financial Instruments 68.999 - - 68.999 Other Assets Adjusted Assets [A - B - C] [C] Float [B] Retirement Plans [A] Liabilities + Equity 262.757 18.475 66.224 347.457 Total 71.780 - - 71.780 Securities - Repos 14.758 - - 14.758 Other Finan. Liab. - - 66.224 66.224 Retirement Plans - 18.475 - 18.475 Securities - Trading & Intermediation 176.220 - - 176.220 Other Liabilities & Equity Non - GAAP Financial Information Adjusted Assets (from the factors listed below) reflects our business more realistically [B] Retirement Plans ▪ AUM from XP Vida & Previdência is accounted in both assets and liabilities [C] Float ▪ Uninvested cash from clients allocated in sovereign bonds Key factors inflating our balance sheet Simplified Balance Sheet (in R $ mn )
35 Non - GAAP Financial Information Adjusted Net Income YoY 2023 2024 QoQ 3Q24 YoY 4Q23 4Q24 (in R$ mn) 16% 3,899 4,515 - 1% 1,187 14% 1,040 1,181 Net Income - - 47 - - - - 47 Hedge of Social Charges (1) - - (59) - - - - (59) Social Charges / Hedge of Social Charges (2) - - 41 - - - - 41 Tax Expenses 17% 3,899 4,544 2% 1,187 16% 1,040 1,210 Adjusted Net Income Adjusted Net Income is a financial measure that reflects the company’s net income, excluding certain non - recurring or non - cash i tems 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 wi th Performance Stock Units (PSUs) that expired unvested. These adjustments exclude accounting charges that neither impact cash flow nor reflect recurring earnings volatility. By remo vin g these effects, Adjusted Net Income provides a more accurate view of the company’s underlying profitability. Additionally, Adjusted Revenue (+R$47mm) and Adjusted SG&A ( - R$59mm) also resulted in an Adjusted EBT. These financial measures exclude certain items that management believes are not indicative of the company’s core operating performance. These adjustments relate to one - off impacts from hedging social charges associated wit h share - based compensation expenses. By excluding these items, Adjusted Revenue and Adjusted Expenses offer a more accurate representation of the company’s recurr ing operating results, facilitating comparability across reporting periods. (1) Total Revenue and Income (2) Administrative Expenses
3Q24 Earnings Presentation Investor Relations ir@xpi.com.br https://investors.xpinc.com/
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