XP (XP) Q2 2024 earnings summary

Executive summary

• Achieved record highs in revenue, EBT, and net income for Q2 2024, with strong year-over-year growth across key metrics and core investment KPIs.

• Total client assets rose 14% year-over-year to BRL 1.2 trillion, with active clients up 16% to 4.6 million.

• Net new money reached BRL 32 billion, nearly doubling in Retail quarter-over-quarter, driven by maturing business levers and organic growth.

• Strategic focus remains on leadership in the investment market, expanding product offerings, and deepening client relationships.

• Net income for the six months ended June 30, 2024, was R$2,147 million, up from R$1,770 million year-over-year.

Financial highlights

• Gross revenue for Q2 2024 was BRL 4.5 billion, up 21% year-over-year and 5% quarter-over-quarter; net income hit BRL 1.1 billion, up 14% year-over-year.

• EBT reached BRL 1.4 billion, a 43% increase year-over-year and 27% sequentially, with a margin of 32.8%.

• EPS for Q2 2024 was BRL 2.03, a 10% increase year-over-year; ROTE was 27.2%, the highest in 2.5 years.

• Net revenue from services rendered for six months was R$3,572 million, up from R$2,829 million year-over-year.

• Net income from financial instruments at fair value through profit or loss was R$4,717 million for six months, up from R$2,734 million year-over-year.

Outlook and guidance

• Confident in achieving 2026 guidance for gross revenue and EBT margin, targeting a 19% CAGR in revenue and EBT margin of 30%-34%.

• Expecting improved results in the second half of 2024, with upward trends in revenue and net income.

• Corporate reorganization in Brazil is ongoing and expected to be completed by year-end 2024, with no material financial impact anticipated.