Business
XP Inc. Reports 4Q19 and Fiscal Year 2019 Financial Results
SÃO PAULO, Brazil, March 17, 2020 (GLOBE NEWSWIRE) -- XP Inc. (NASDAQ: XP) (“XP” or the “Company”), a leading, technology-driven financial services platform
About this update from Xp Inc.
[{"type":"text","content":"SÃO PAULO, Brazil, March 17, 2020 (GLOBE NEWSWIRE) -- XP Inc. (NASDAQ: XP) (“XP” or the “Company”), a leading, technology-driven financial services platform and a trusted pioneer in providing low-fee financial products and services in Brazil, today reported its financial results for the fourth quarter of 2019.\n To our shareholders: 2019 was a memorable year for XP Inc., not just because of the successful IPO connecting us with major global investors, but also due to the solid performance across our main operating and financial KPIs. Through our mission-driven purpose (transform the financial market and improve peoples’ lives) and constant focus on client experience and satisfaction, we were able to achieve a superior NPS (73 points) and grow our Assets Under Custody by 103% (to R$409 billion) and Active Clients base by 91% (to 1.7 million) in 2019. This strong performance in Retail, coupled with a robust growth in our other businesses, drove Gross Revenue to expand 72% in 2019 vs 2018, reaching R$5.5 billion. Adjusted Net Income for the year was R$1.1 billion, 119% higher than in 2018, reinforcing our differentiated level of profitability (20.9% margin). Although we recognize the importance of those results, they are small when compared to the overall Brazilian financial system that counts with almost R$500 billion in revenue according to Oliver Wyman report. Therefore, we are more confident than ever that this is only the beginning of our journey, with a massive and concentrated market in Brazil providing significant opportunities going forward. As a matter of fact, I will probably repeat these same words in the coming quarters and years, trying to help the investment community better realize the opportunities we are aiming for in the long run, despite the volatility of quarterly results. Bank concentration in Brazil continues to be extremely high across all aspects. From an investment standpoint, approximately 90% of Brazilians' assets are still within large banks, with high fees, lower quality products and inefficient services. Also, according to Oliver Wyman, there are R$8.6 trillion in investments held by Brazilian individuals and companies, with most of these resources still concentrated in the unsophisticated fixed income products linked to our interest rate. Brazilians typically maintained a conservative investment appr...