Slide 1: 1Q24 Earnings Presentation
1Q24 Earnings Presentation 1
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 1Q24 Financials and Main KPIs 03 Final Remarks 04 Q&A 05 Appendix 3
Slide 4: Key Highlights
1 Key Highlights
Slide 5: 1Q24 Highlights: Continuous Revenue Growth with Expenses Under Control
1Q24 Highlights Continuous Revenue Growth with Expenses Under Control Client R$ 1,141 Bn Net R$ 1.0 Bn Gross R$ 4.3 Bn Assets Income Revenue +20% YoY +29% YoY +28% YoY Efficiency EBT SG&A¹ R$ 1.4 Bn Ratio² 36.5 % Margin 26.9 % +35% YoY -384 bps YoY +81 bps YoY Diluted EPS R$ 1.85 ROTE 25.4 % +25% Yo
Slide 6: Strategy Tracker
Strategy Tracker Highlights Retail Retail Corporate Investments Cross-Sell & SMB Absolute Leadership Grow with Our Premier Service in Core Business Clients’ Needs with Unique Value ✓ New Private Banking CEO ✓ Top 2 ranking Estadão Melhores Serviços ✓ Better Solutions by Leveraging on Our 2024 Synerg
Slide 7: Financial Planning & Open Investments
Financial Planning & Open Investments Financial Planning Open Investments Improves the Financial Planning Service Opened Platform With More Than a 1,000 Increases Likelihood of Clients can Easily Share Data with Open Possibilities Client’s Consent Investments Regulation Largest and Best Trained Sale
Slide 8: 1Q24 Financials
2 1Q24 Financials
Slide 9: Core Operating KPIs
Core Operating KPIs Client Assets Active Clients Total Advisors1 R$ Billion (‘000s) (‘000s) Client Assets Retail Net Inflow Net Inflow IFAs Other Advisors ,150 1,141 4,600 40 4,587 18 17.7 1,122 4,531 17.2 4,500 ,100 16 15.2 3.1 35 4,400 2.9 ,050 4,300 14 2.2 30 ,000 4,200 4,100 12 954 25 950 3,966
Slide 10: Gross Revenue
Gross Revenue Gross Revenue Breakdown Gross Revenue Breakdown R$ Million % Retail Institutional Corporate & Issuer Services Other 4,309 4,270 100% 100% 100% 236 276 5% 5% 6% 8% 508 509 12% 12% 3,326 10% 413 354 10% 8% 158 266 332 3,152 3,131 77% 73% 73% 2,569 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 +28% YoY G
Slide 11: Retail Revenue – New Verticals
Retail Revenue – New Verticals¹ Retail Revenue Breakdown – New Verticals¹ R$ Million +35% 491 493 46 45 46 55 364 32 New Verticals¹ Growth 41 306 of 35% YoY 297 204 87 94 95 1Q23 4Q23 1Q24 Retirement Plans Cards Credit Insurance Notes: 1 – This number is consistent with our previous disclosure of Ne
Slide 12: Institutional and Corporate & Issuer Services Revenue
Institutional and Corporate & Issuer Services Revenue Institutional Corporate & Issuer Services Breakdown R$ Million R$ Million Corporate Issuer Services 450 +7% +91% 413 508 509 400 354 350 332 280 330 300 266 99 250 228 200 167 177 150 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 ▪ Corporate Posting Continuous G
Slide 13: Sales, General & Administrative Expenses (SG&A) and Ratios
Sales, General & Administrative Expenses (SG&A)¹ and Ratios SG&A¹ Efficiency and Compensation Ratios1 R$ Million LTM % People Non-people +36% 41.5% 40.4% 1,553 1,416 40.1% 36.3% 532 390 36.5% 1,045 285 29.8% 28.5% 1,022 1,027 28.9% 25.1% 760 25.2% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 4Q
Slide 14: Earning Before Taxes (EBT)
Earning Before Taxes (EBT) EBT EBT Margin R$ million % +33% 1,088 +81 bps 26.9% 995 Ability to expand EBT 816 26.0% Margin in a Challenging Scenario, Highlighting Business Resilience… 24.6% 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 14
Slide 15: Net Income
Net Income Net Income Net Margin R$ million % +29% +1 bps 1,040 1,030 25.4% 25.7% 25.4% …Flattish Net Margin YoY and 796 Slightly Lower QoQ Due to Higher Effective Tax Rate 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 15
Slide 16: Return on Tangible Equity
Return on Tangible Equity Annualized ROTE¹ and ROAE² % ROTE ROAE 25.6% 25.4% We Believe ROTE¹ Is A More 20.5% 21.1% 20.7% Accurate Reflection Of Our Core Operations 18.7% 1Q23 4Q23 1Q24 Notes: 1 – Annualized Return on Average Tangible Equity. Tangible Equity excludes Intangibles and Goodwill; 2 – An
Slide 17: Final Remarks
3 Final Remarks
Slide 18: Final Remarks
Strong 1 ✓ Best EBT for a 1st Quarter Quarter Final Remarks 2 Expenses ✓ Under Control, Healthy Efficiency Ratios 3 Quality ✓ Financial Planning at Scale 18
Slide 19: Q&A
4 Q&A
Slide 20: Appendix
BE Appendix
Slide 21: Total Loan Portfolio
Total Loan Portfolio¹ R$ billion Secured Unsecured Total Loans 20.7 1.8 22.5 Credit Card 4.9 2.5 7.4 Main Activities • Investment Banking Corporate Securities 2.5 13.1 15.6 • Fixed Income Distribution • Corporate Credit Credit Portfolio 28.1 17.4 45.5 Note: 1 – Gross of Expected Credit Losses. 21
Slide 22: 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 Adjusted Assets Assets [A] [B] Retirement Plans [C] Float [A-B-C] Total 278,922 58,654 16,395 203,872 [B
Slide 23: Net Asset Value
Net Asset Value (in R$ mn) 1Q24 4Q23 1Q24 4Q23 Financial Assets 261,880 231,903 (=) Adjusted Gross Financial Assets 20,332 19,506 Securities & Derivatives 189,656 177,934 (-) Gross Debt (10,960) (9,575) Loans 29,542 28,552 (-) Bonds (3,436) (3,322) Repos 30,291 14,889 (-) Debentures (2,280) (2,212)
Slide 24: Investor Relations
Investor Relations ir@xpi.com.br https://investors.xpinc.com/ 24