XP Inc. (XPBR31) has achieved a significant financial milestone, posting a first-quarter net profit of R$ 1.03 billion ($201 million) from January to March 2024.
This 29% increase from the previous year showcases XP’s strategic strength in a challenging economy with double-digit interest rates.
XP, Inc. is a leading Brazilian investment management company and the largest investment bank in Latin America.
The quarter also saw a record pre-tax profit of R$ 1.08 billion ($211 million), a 33% rise from last year, enhancing the EBT margin from 26% to 26.9%.
Revenue streams flourished, with net revenue reaching R$ 4.05 billion ($789 million) and gross revenue hitting R$ 4.27 billion ($823 million), up by 29% and 28%, respectively.
The “Large Enterprises and Capital Markets” vertical surged by 91% to R$509 million ($100 million). Meanwhile, the “institutional” sector grew by 7%, amassing R$ 354 million ($69 million).
Retail also performed well, with revenue climbing to R$ 3.13 billion ($612 million), driven by a 112% increase in fixed income, generating R$ 704 million ($137 million).
Resilience and Growth in Financial Services
Bruno Constantino, CFO of XP Inc., praised the synergy between the wholesale banking and retail operations. He highlighted their crucial role in the ecosystem’s strong performance.
He noted significant achievements in fixed-income retail and large enterprises, ready for continuous growth despite economic challenges.
Even with high interest rates, the variable income sector brought in over R$ 1.12 billion ($217 million), up 6% year-over-year.
Client assets under custody grew significantly, totaling R$ 1.14 trillion ($222 billion).
This growth was propelled by net inflows of R$ 103 billion ($20 billion) and market appreciation of R$ 84 billion ($16 billion).
As XP Inc. moves forward, it focuses on operational efficiency, demonstrated by a reduced efficiency ratio of 36.5%.
Additionally, the company prioritizes governance, as evidenced by upcoming board changes aimed at aligning with global best practices.
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