XP Reaches Record Financial Milestone in Q1

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).

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).

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