Slide 1: 2Q24 Earnings Presentation
1 2Q24 Earnings Presentation
Slide 2: Important Disclosure
2 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
Slide 3: Index
Index 2Q24 Financials and Main KPIs 02 Final Remarks 03 01 Key Highlights Q&A 04 Appendix 05
Slide 4: Key Highlights
41 Key Highlights
Slide 5: 2Q24 Highlights
5 R$ 4.5 billion Gross Revenue ( +21% YoY) R$ 1.2 trillion Client’s assets ( +14% YoY) 2Q24 Highlights Core Investment KPIs Income Statement Balance Sheet and Profitability Notes: 1 – Annualized Return on Average Tangible Equity. Tangible Equity excludes Intangibles and Goodwill; 2 – Managerial BIS
Slide 6: Strategy Tracker
6 14.8 17.4 3Q23 LTM @ ID 2Q24 LTM 2026 Guidance 26.8 Strategy Tracker 22.8 25% CAGR 11% CAGR 19% CAGR Gross Revenue R$ Billion Retail Investments Leadership in Core Business Our main goal is to achieve leadership in the investment market, our core business. To do this, we need to maintain and expan
Slide 7: Strategy Tracker: Retail Investments Leadership in Core Business
7 Strategy Tracker Retail Investments Leadership in Core Business Our main goal is to achieve leadership in the investment market, our core business. To do this, we need to maintain and expand our differentials and continue to grow in all customer segments . Retail Cross - Sell Grow with Our Clients
Slide 8: Retail Strategy – Keeping Our Moats
8 19 13 24 3 2 8 2Q23 1Q24 2Q24 22 15 32 +44% Retail Corporate Net New Money R$ Million Retail Strategy – Keeping Our Moats Expanding and Protecting our Core Business Multi - Channel Distribution and Expansion Through Internal Advisors and RIAs 2 Product Platform Best Investment Options – from Fixed
Slide 9: Strategy Tracker: Retail Cross-Sell
9 Strategy Tracker Retail Investments Leadership in Core Business Our main goal is to achieve leadership in the investment market, our core business. To do this, we need to maintain and expand our differentials and continue to grow in all customer segments . Retail Cross - Sell Grow with Our Clients
Slide 10: Retail Cross-Sell: Strong Growth But Still Underpenetrated
10 Investments Credit Card Principality ~ 4 Months XP Card Becomes Primary Credit Card + 7 % More Custody Per year - 13 pp Lower Churn Per Year 202 248 307 2Q23 1Q24 2Q24 +52% Retail Cross - Sell Notes: 1 – Includes FX, Digital Account and Global Investments Highlights Strong Growth… But Still Under
Slide 11: Strategy Tracker: Corporate & SMB
11 Strategy Tracker Retail Investments Leadership in Core Business Our main goal is to achieve leadership in the investment market, our core business. To do this, we need to maintain and expand our differentials and continue to grow in all customer segments . Retail Cross - Sell Grow with Our Client
Slide 12: Corporate & SMB: Leveraging Existing Relationships
12 Corporate & SMB Derivatives Ranking 10 th Since 2022 5 th Leveraging Existing Relationships to Bring New Clients to over 60k clients… … And More to Come Trade Finance Digital Account FX Ranking Active Corporate & SMB Clients in thousand 50 58 61 2Q23 1Q24 2Q24 +22% 626 848 3Q23 LTM 2Q24 LTM Corpo
Slide 13: 2Q24 Financials
2 2Q24 Financials
Slide 14: CFO Priorities
14 CFO Priorities Corporate Restructuring x Lower Cost of Capital 1 Guidance Delivery x New Products Increasing Profitability and Strict Cost Control, Keeping our Innovation DNA 2 Capital Allocation x Disciplined Capital Allocation and Recurr ing Capital Distribution to Shareholders 3 Higher Returns
Slide 15: Gross Revenue Breakdown
15 78% 10% 8% 4% 2Q23 73% 8% 12% 6% 1Q24 73% 8% 14% 5% 2Q24 100% 100% 100% Gross Revenue +21% YoY Growth in Gross Revenue Corporate & Issuer Services as a Highlight Gross Revenue Breakdown % Gross Revenue Breakdown R$ Million Retail Institutional Corporate & Issuer Services Other 2,892 3,131 3,294 3
Slide 16: Fixed Income as the Main Highlight Again
16 Fixed Income as the Main Highlight Again Retail Revenue Breakdown % Retail Revenue R$ Million 37% 20% 12% 14% 18% 2Q23 36% 22% 10% 16% 16% 1Q24 34% 25% 11% 16% 15% 2Q24 100% 100% 100% Retail Revenue 2,892 3,131 3,294 2,300 2,400 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 2Q23 1Q24 2Q24
Slide 17: Corporate & Issuer Services Revenue
17 ▪ Strong DCM Activity ▪ Corporate Posting Continuous Growth Corporate & Issuer Services Revenue Note 1: Corporate Securities considered in our Total Loan Portfolio. Corporate & Issuer Services Breakdown R$ Million 126 228 245 157 280 384 2Q23 1Q24 2Q24 283 509 629 +122% Corporate Issuer Services
Slide 18: Efficiency and Compensation Ratios
18 Efficiency and Compensation Ratios 1 LTM % Sales, General & Administrative Expenses (SG&A)¹ and Ratios Notes: 1 – Calculated as SG&A ex - revenue from incentives from Tesouro Direto , B3, and others divided by Net Revenue. 2 – Calculated as People SG&A (Salary and Taxes, Bonuses and Share Based C
Slide 19: Earning Before Taxes (EBT)
19 Earning Before Taxes (EBT) 2Q23 1Q24 2Q24 27.3% 26.9% 32.8% +552 bps 968 1,088 1,384 2Q23 1Q24 2Q24 +43% EBT Margin % EBT R$ million Positive Business Dynamics based on Rising Ecosystem Revenues and Strict Expenses Control Translates into the Highest EBT in our History
Slide 20: Net Income
20 977 1,030 1,118 2Q23 1Q24 2Q24 +14% Net Margin % Net Income R$ million 2Q23 1Q24 2Q24 27.5% 25.4% 26.5% - 103 bps Record - Setting Results , Despite the Higher Tax Rate Net Income
Slide 21: Capital Management
21 Reducing excess capital through a more efficient capital management BIS Ratio 1,815 3,542 1,249 916 2022 2023 1H24 4,458 Capital Management In 2.5 years, we distributed + R$7.5bn In dividends and share repurchases Dividends Paid Share Repurchases Dividends Paid and Share Repurchases R$ Million 2Q
Slide 22: Return on Tangible Equity
22 Annualized ROTE¹ and ROAE² % Notes: 1 – Annualized Return on Average Tangible Equity. Tangible Equity excludes Intangibles and Goodwill; 2 – Annualized Retur n on Average Equity. 24.1% 25.4% 27.2% 22.0% 20.7% 22.1% 2Q23 1Q24 2Q24 ROTE ROAE Return on Tangible Equity 975 1,030 1,117 1.83 1.85 2.03
Slide 23: Final Remarks
3 Final Remarks
Slide 24: Final Remarks
24 Solid Quarter x Guidance on Track 1 2 x Retail NNM Improvement Net New Money 3 x Keeping and Enhancing our Differentiation Moats Final Remarks
Slide 25: Q&A
4 Q&A
Slide 26: Appendix
5 Appendix
Slide 27: Total Loan Portfolio
27 Total Loan Portfolio¹ Note: 1 – Gross of Expected Credit Losses. Total Unsecured Secured R$ billion 19.3 1.6 17.7 Loans 7.4 2.4 5.0 Credit Card 26.0 20.3 5.7 Corporate Securities 52.7 17.4 24.3 Credit Portfolio Main Activities • Investment Banking • Fixed Income Distribution • Corporate Credit
Slide 28: Non-GAAP Financial Information
28 Non - GAAP Financial Information Adjusted Assets (from the factors listed below) reflects our business more realistically [B] Retirement Plans ▪ AUM from XP Vida & Previdência is accounted in both assets and liabilities [C] Float ▪ Uninvested cash from clients allocated in sovereign bonds Key fac
Slide 29: Net Asset Value
29 (in R $ mn ) 1Q24 2Q24 261.880 277.536 Financial Assets 189.656 212.034 Securities & Derivatives 29.542 26.321 Loans 30.291 21.773 Repos 12.391 17.410 Other (227.665) (242.890) ( - ) Financial Liabilities (58.654) (60.981) ( - ) Retirement Plans Liabilities (57.107) (67.198) ( - ) Market Funding
Slide 30: Investor Relations
30 Investor Relations ir@xpi.com.br https://investors.xpinc.com/
Slide 31: Adjusted Gross Financial Assets
1Q24 2Q24 261.880 277.536 Financial Assets 189.656 212.034 Securities & Derivatives 29.542 26.321 Loans 30.291 21.773 Repos 12.391 17.410 Other (227.665) (242.890) ( - ) Financial Liabilities (58.654) (60.981) ( - ) Retirement Plans Liabilities (57.107) (67.198) ( - ) Market Funding Operations (49.0