XP (XP) Q3 2024 earnings summary

Executive summary

• Achieved record net income of R$1.2 billion in 3Q24, up 9% year-over-year, with client assets rising 12% to R$1.21 trillion and active clients up 6% to 4.7 million.

• Gross revenues for 9M24 grew 17% year-over-year to R$13.3 billion; EBT up 25% to R$3.7 billion; net income up 17% to R$3.3 billion.

• Strategy focused on investment market leadership, expanding product offerings, and deepening client relationships.

• Announced R$2 billion dividend and R$1 billion share buyback for 2024, with over R$10.5 billion distributed in three years.

• Total number of advisors reached 18,400, up 9% year-over-year.

Financial highlights

• Gross revenue for the last 12 months reached R$17.6 billion, up 20%.

• 3Q24 gross revenue was R$4.5 billion, up 4% year-over-year; net revenue reached R$4.32 billion, up 5%.

• Retail revenue was R$3.49 billion, up 10% year-over-year, led by fixed income (+31%) and cards (+17%).

• Corporate & Issuer Services revenue reached R$552 million, up 6% year-over-year.

• Efficiency ratio at a record low of 35%, with LTM compensation ratio at 24.0%.

Outlook and guidance

• Guidance for 2026 remains on track, targeting a BIS ratio between 16%-19% and payout above 50% in the next two years.

• 2026 guidance projects gross revenue CAGR of 12% and EBT margin between 30%-34%.

• Management focuses on cost discipline, efficiency, and capital optimization.

• ROTE expected to remain in the mid to high 20s after guidance is met.

• No intention to significantly grow the credit book; focus remains on capital recycling and collateralized lending.