The following is a summary of the XP Inc. (XP) Q3 2024 Earnings Call Transcript:

Financial Performance:

• XP Inc. reported Q3 revenue growth of 12% year-over-year with net income reaching BRL3.3 billion, a 17% increase.

• Earnings Before Tax (EBT) posted a 25% growth year-over-year, marking BRL3.7 billion.

• Earnings per share (EPS) was at an all-time high of BRL2.18, with a Return on Tangible Equity (ROTE) increase of 258 basis points to 28.4%.

• Announced extra payout of BRL3 billion including dividends and share buybacks, reflecting a commitment to return capital to shareholders.

Business Progress:

• Achieved a net new money growth of 124% year-over-year, excluding Modal acquisition, with BRL31 billion, reflecting strong performance especially in fixed-income and retail segments.

• Expansion in total advisors to 18,400 and active client base to 4.7 million.

• Cross-selling initiatives in retail banking such as credit cards and life insurance showed significant growth, expanding market presence and product penetration.

Opportunities:

• Ongoing expansion and innovative product offerings in the retail investment sector, particularly in fixed income, credit card, and insurance products, suggest growth potential.

• Anticipated growth in corporate and SMB services, including new products like trade finance and corporate digital accounts, providing potential for increased market share and profitability.

Risks:

• Retail fixed-income and credit revenues dependent on securities warehousing and distribution could be affected by market volatility or shifts in interest rates affecting the distribution phase and profitability.

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