Slide 1: 4Q24 Earnings Presentation
XP inc. 4Q24 Earnings Presentation XPwinc.
Slide 2: Important Disclosure
Important Disclosure IN REVIEWING THE INFORMATION CONTAINED IN THIS PRESENTATION, YOU ARE AGREEING TO ABIDE BY THE TERMS OF THIS DISCLAIMER. THIS INFORMATION IS BEING MADE AVAILABLE TO EACH RECIPIENT SOLELY FOR ITS INFORMATION AND IS SUBJECT TO AMENDMENT. This presentation is prepared by XP Inc. (th
Slide 3: Index
Index 01 Key Highlights 02 4Q24 Financials and Main KPIs 03 Final Remarks 04 Q&A 05 Appendix
Slide 4: 01. Key Highlights
01. Key Highlights XPwinc.
Slide 5: Highlights
Highlights A Well Succeeded Case in the Brazilian Market Core Investment KPIs R$ 1.2 trillion Client’s assets (+9% YoY) 18.2k Total Advisors (+5% YoY) 4.7 million Adj. Diluted EPS R$ Active Clients (+3% YoY) 8.28 7.16 Income Statement 6.26 6.25 2024 R$ 18.0 billion R$ 5.0 billion R$ 4.5 billion +31%
Slide 6: Strategy Tracker
Strategy Tracker Gross Revenue CAGR Guidance CAGR vs. 3Q23 Current R$ Billion R$bn 2024 20261 LTM Status 22% 26.8 CAGR 12% 22.8 17% CAGR CAGR Gross Revenue 14% - 20% 17% 18.0 18.0 14.8 Investments 11% - 15% 13% 14.2 New Verticals 26% - 35% 32% 2.6 3Q23 LTM 2024 2026 @ ID Guidance Corporate & S
Slide 7: Strategy Tracker Retail Investments
Strategy Tracker Retail Retail Corporate Investments Cross-Sell ] & SMB Leadership Grow with Our Premier Service in Core Business Clients’ Needs with Unique Value Our main goal is to achieve leadership in the investment market, our Starting from our clients’ needs, we will expand our offer to serve
Slide 8: Retail Investments – Consistent Net New Money
Retail Investments – Consistent Net New Money Serving Clients Wherever and However They Want Net New Money(1) Retail Strategy – Keeping Our Moats R$ Billion Expanding and Protecting our Core Business Retail Corporate Product Platform +45% 1 Best Investment Options – from Fixed-Income to Alternative
Slide 9: Retail Investments Strategy
Retail Investments Strategy Product Liquidity Provider Secondary Market Platform 1 Product Platform Innovation Best Investment Options Diversification Beyond To Illiquid Bank Notes Most Active Platform in the Market Equities Multi-Channel Distribution and Innovative Structuring & Technology Largest
Slide 10: Retail Investments Strategy
Retail Investments Strategy Product Platform Expansion & Diversification Way of Work & Service Model 1 Best Investment Options 2024 Daily Preparation & IFAs Review ▪ Performance reports Multi-Channel Distribution 2020 B2B Wealth Managers New Proprietary Tools ▪ Client satisfaction tracking 2 and Exp
Slide 11: Retail Investments Strategy
Retail Investments Strategy New Segment Framework Tailored value proposition aligned with each segment’s needs and cost-to-serve dynamics Product Platform 1 Best Investment Options Segment Digital Exclusive Premium Unique Private Investment Range <50k 50k – 300k 300k – 3mm 3mm – 10mm 10mm+ (R$) Tran
Slide 12: Retail Investments Strategy
Retail Investments Strategy Product Platform 1 Best Investment Options Strong Early Indicators for clients with Financial Planning Multi-Channel Distribution and Insurance 2 Expansion Through Internal Advisors and RIAs 2x higher conversion XP is the Only Player Providing Retirement Plans Segmentatio
Slide 13: Strategy Tracker
Strategy Tracker Retail Retail Corporate Investments Cross-Sell & SMB Leadership Grow with Our Premier Service in Core Business Clients’ Needs with Unique Value Our main goal is to achieve leadership in the investment market, our Starting from our clients’ needs, we will expand our offer to serve th
Slide 14: Increasingly Higher Penetration and Revenue Contribution
Retail Cross-Sell Main KPI +11% Penetration(1)(2) 13.1 50% 11.8 12.0 29% Cards TPV (in R$bn) 4Q23 3Q24 4Q24 4Q24 Peers Avg. +37% Penetration(2)(3) 362 401 17% 293 Life Insurance Gross Written 2% Premium (in R$mm) 4Q23 3Q24 4Q24 4Q24 Market Avg. Increasingly Higher 73 +10% 78 81 Market Share 27% Pene
Slide 15: Strategy Tracker
Strategy Tracker Retail Retail Corporate Investments Cross-Sell & SMB Leadership Grow with Our Premier Service in Core Business Clients’ Needs with Unique Value Our main goal is to achieve leadership in the investment market, our Starting from our clients’ needs, we will expand our offer to serve th
Slide 16: Wholesale
Wholesale Main KPI +31% Market Share 8.6 9.3 23% 3rd 1st 1st 7.1 Investment 13% Banking DCM Volume1 in DCM in CRA Corporate Credit (in R$bn) 4Q23 3Q24 4Q24 2024 Market Leader and FII Broker in Brazil Institutional, Corporate and Issuer -1% Services Gross Revenue Market Share 488 481 18% R$ Million 1
Slide 17: 2025 Solid Pillars Supporting our Growth Story
2025 Solid Pillars Supporting our Growth Story Gross Revenue Drivers >10% >10% Growth Lower DCM … but Higher Higher Avg. Volumes in the Market Selic Rate Industry… Share for XP Growing above Local Market ▪ New Credit Card ▪ Digital Account R$18bn ▪ Consortium Client Assets growing with Selic Rate an
Slide 18: 02. 4Q24 Financials
02. 4Q24 Financials XPwinc.
Slide 19: Gross Revenue
Gross Revenue Gross Revenue Breakdown Gross Revenue Breakdown R$ Million % Retail Institutional Corporate & Issuer Services Other Retail Institutional Corporate & Issuer Services Other 5% 3% 5% 5% 5% +15% 12% 13% 10% 12% 13% 18,035 4,725 884 7% 10% 10% 7% 8% 4,536 224 4,309 150 15,726 2,289 236 599
Slide 20: Retail Gross Revenue
Retail Gross Revenue Double Digit Growth Underpinned by Revenue Diversification Retail Revenue Retail Gross Revenue Breakdown R$ Million % Equities Fixed Income Funds Platform New Verticals Other Retail +14% 13,489 15% 17% 17% 17% 18% +13% 11,791 16% 3,494 3,569 15% 14% 16% 16% 3,152 11% 10% 11% 10%
Slide 21: Corporate & Issuer Services Revenue
Corporate & Issuer Services Revenue Corporate & Issuer Services Breakdown R$ Million Corporate Issuer Services +18% +45% Bringing Competitive 552 599 2,289 Edge to our 508 Ecosystem… 323 337 1,576 1,324 330 ...With +45% YoY 908 Growth 229 262 965 177 668 4Q23 3Q24 4Q24 2023 2024 21
Slide 22: Sales, General & Administrative Expenses (SG&A)
Sales, General & Administrative Expenses (SG&A)¹ SG&A¹ R$ Million People Non-people +2% +10% 1,553 1,577 5,927 1,515 5,391 ...Expenses Discipline 532 490 1,871 530 1,663 Translating into Higher Efficiency 1,022 1,087 4,056 984 3,728 4Q23 3Q24 4Q24 2023 2024 Notes: 1 – Excludes Revenue from incentive
Slide 23: Efficiency & Compensation Ratios
Efficiency & Compensation Ratios Efficiency and Compensation Ratios1 LTM % Compensation Ratio Efficiency Ratio 42.0% Better Efficiency While 36.3% Enhancing Client Experience… 34.7% 29.5% ...With Efficiency Ratio Reaching All Time Low in Our History 25.1% 23.7% 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q2
Slide 24: Earning Before Taxes (EBT)
Earning Before Taxes (EBT) EBT1 R$ Million EBT Margin Our Strategy +26% 30% Resulted an 1,300 1,289 45 5,000 4,974 45 1,212 Unprecedented 1,200 4,500 40 3,936 40 4,000 Performance… 1,100 35 35 995 28.7% 3,500 29.1% 1,000 28.1% 30 30 26.5% Margin EBT 900 24.6% 3,000 25 2,500 25 800 20 20 Expanded +26
Slide 25: Adjusted Net Income
Adjusted Net Income Adjusted Net Income1 R$ Million Adjusted Net Margin 1,400 45 5,000 +17% 45 All Time High Results 16% 1,187 1,210 4,500 40 4,544 40 in the Quarter… 1,200 4,000 3,899 1,040 35 35 1,000 … With 17% Growth in 3,500 27.5% 27.0% 30 30 25.7% 26.2% 26.4% 800 3,000 25 25 the Year 600 2,500
Slide 26: Capital Management
Capital Management BIS Ratio1 Risk-Weighted Assets and VaR Common Equity Tier 1 Additional Tier 1 Tier 2 Credit RWA Market RWA Operational RWA RWA / Total Assets 21.5% 0.9% 31% 30% 30% 20.2% 0.9% 1.1% 26% 24% 17.7% 36% 0.8% 0.8% 28% 36% 16% 19.1% 19.6% 16.1% 48% 45% 40% 4Q23 3Q24 4Q24 4Q23 3Q24 4Q24
Slide 27: Capital Management
Capital Management Dividends Paid and Share Repurchases Payout Ratio R$ Million Dividends Paid Share Repurchases 114% 4,458 >50% 916 3,354 74% 1,354 51% 1,815 3,542 2,000 2022 2023 2024 (1) 2022 2023 2024 2025-2026E In Three Years ~ R$10bn Consistent Capital Distribution to Shareholders In Dividends
Slide 28: EPS and Return on Tangible Equity
EPS and Return on Tangible Equity Adjusted EPS4 Adjusted Annualized ROTE¹ and ROAE² % ROTE ROAE Net Income Diluted EPS (R$) 29.2% 28.7% 2.5 1,600 9 5,000 28.4% 2.23 8.28 2.18 8 4,500 1,400 7.16 2.0 1.88 7 4,000 1,200 25.6% 25.0% 3,500 6 1.5 1,000 3,000 5 800 2,500 23.0% 23.4% 23.0% 4 4,543 1.0 1,186
Slide 29: Corporate Structure Update
Corporate Structure Update Cost of Capital Evolution @ XP Prudential Conglomerate Dec 24 15.5% 13.5% Target BIS Ratio @Prudenial Target BIS Ratio @Prudential Conglomerate Conglomerate 0% 3.5% AT1 and T2 AT1 and T2 Approximately ~35% Lower CET1 From ~15.5% to 10% More Competitive Banking Ecosystem fo
Slide 30: 03. Final Remarks
03. Final Remarks XPwinc.
Slide 31: Final Remarks
All Weather 1 Business ✓ All-Guidance on Track Solid Year Net New 2 ✓ Retail NNM Consistency Money Final Remarks 3 Moats ✓ Financial Planning at Scale as a New Edge 4 Capital Return ✓ Strong Capital Distribution and EPS Increase 31
Slide 32: 04. Q&A
04. Q&A XPwinc.
Slide 33: Total Loan Portfolio
Total Loan Portfolio¹ R$ billion Secured Unsecured Total Loans 17.2 4.1 21.2 Credit Card 6.0 2.4 8.4 Main Activities • Investment Banking Corporate Securities 5.6 26.3 31.9 • Fixed Income Distribution • Corporate Credit Credit Portfolio 28.8 32.7 61.5 Note: 1 – Gross of Expected Credit Losses. 33
Slide 34: Non-GAAP Financial Information
Non-GAAP Financial Information Adjusted Assets (from the factors listed below) reflects our business more realistically Simplified Balance Sheet (in R$ mn) Key factors inflating our balance sheet [B] Retirement Adjusted Assets Assets [A] [C] Float Plans [A-B-C] Total 347.457 66.224 18.475 262.757 [B
Slide 35: Non-GAAP Financial Information
Non-GAAP Financial Information Adjusted Net Income (in R$ mn) 4Q24 4Q23 YoY 3Q24 QoQ 2024 2023 YoY Net Income 1,181 1,040 14% 1,187 -1% 4,515 3,899 16% Hedge of Social Charges (1) 47 - - - - 47 - - Social Charges / Hedge of Social Charges (2) (59) - - - - (59) - - Tax Expenses 41 - - - - 41 - - Adju
Slide 36: 4Q24 Earnings Presentation
4Q24 Earnings Presentation Investor Relations ir@xpi.com.br https://investors.xpinc.com/