XP Inc. Reports Strong Fourth Quarter Results with Record Profitability and Asset Growth

XP Inc. (NASDAQ: XP), a leading Brazilian financial platform, reported an adjusted net income of R$1.2 billion ($200 million) in the fourth quarter of 2024, a 16% increase year-over-year and a 2% rise from the previous quarter.

This growth reflects strong revenue expansion and improved profitability, driven by robust retail performance and disciplined cost management. Gross revenue for the quarter reached R$4.7 billion ($783 million), up 10% year-over-year and 4% sequentially.

Net revenue totaled R$4.49 billion ($748 million), surpassing market expectations of R$4.45 billion. Retail investments accounted for nearly R$3.6 billion ($600 million) of revenue, increasing 13% year-over-year and 2% quarter-over-quarter.

While institutional segment revenue declined 20% year-over-year, corporate and capital markets services grew by 18%. This growth was supported by strong debt capital markets activity.

Earnings before taxes (EBT) rose to R$1.289 billion ($215 million), a 30% increase from the previous year and a 6% sequential gain, with the EBT margin improving to 28.7%. For the full year, EBT reached R$4.97 billion ($828 million), up 26%, reflecting sustained operational efficiency.

XP’s Strong Growth and Market Position

Client assets under management grew to R$1.227 trillion ($204.5 billion). This growth was supported by R$103 billion ($17.17 billion) in annual net inflows. It was also driven by R$2 billion ($333 million) in market appreciation.

Fourth-quarter net inflows totaled R$25 billion ($4.17 billion), up 37% year-over-year despite a sequential decline. XP ended the year with 4.684 million active clients, a 3% increase from 2023, and expanded its advisor network to 18,200 professionals, up from 17,200 a year earlier.

These results underscore XP’s ability to adapt to market dynamics while delivering consistent growth, highlighting its role as a key player in Brazil’s financial sector and offering valuable insights into evolving market trends for investors and stakeholders alike.

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