Slide 1: 2Q24 Earnings Presentation
2Q24 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 2Q24 Financials and Main KPIs 03 Final Remarks 04 Q&A 05 Appendix
Slide 4: Key Highlights
1 Key Highlights
Slide 5: 2Q24 Highlights
2Q24 Highlights Our Continuous Growth Story with a New All-time High Results Core Investment KPIs Net New Money R$ 1.2 trillion Client’s assets (+14% YoY) 18.3k Total Advisors (+11% YoY) 4.6 million Reacceleration Active Clients (+15% YoY) Income Statement R$ 4.5 billion R$ 1.4 billion R$ 1.1 billio
Slide 6: Strategy Tracker
Strategy Tracker Gross Revenue R$ Billion Retail Retail Corporate Investments Cross-Sell & SMB 19% 26.8 CAGR 25% 22.8 Leadership Grow with Our Premier Service CAGR 11% CAGR in Core Business Clients’ Needs with Unique Value 17.4 Our main goal is to achieve leadership in the Starting from our clients’
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 th
Slide 8: Retail Investments - Net New Money Improvement
Retail Investments - Net New Money Improvement Our Strategy Setting The Stage For Our Future Net New Money Retail Strategy – Keeping Our Moats R$ Million Expanding and Protecting our Core Business Retail Corporate +44% Product Platform 32 1 Best Investment Options – from Fixed-Income to Alternative
Slide 9: Strategy Tracker Retail Cross-Sell
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 10: Retail Cross-Sell
Retail Cross-Sell Highlights Strong Growth… But Still Underpenetrated Card’s TPV Life Insurance Gross Written Premiums R$ Billion R$ Million +19% +52% ~4 Months 12 307 11 XP Card Becomes Primary Credit Card 248 10 202 Investments Credit Card 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 Principality +7 % -13pp Reti
Slide 11: Strategy Tracker Corporate & SMB
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 12: Corporate & SMB
Corporate & SMB Leveraging Existing Relationships Expanding Product Platform Delivering to Bring New Clients to over 60k Revenue Growth clients… Active Corporate & SMB Clients Derivatives Ranking FX Ranking Corporate Gross Revenue in thousand R$ Million +22% 10th 5th 41st 16th 848 61 Since 2022 Sinc
Slide 13: 2Q24 Financials
2. 2Q24 Financials
Slide 14: CFO Priorities
CFO Priorities Corporate 1 ✓ Lower Cost of Capital Restructuring Guidance ✓ New Products Increasing Profitability and Strict Cost 2 Delivery Control, Keeping our Innovation DNA Higher Returns Capital ✓ Disciplined Capital Allocation and Recurring Capital 3 Allocation Distribution to Shareholders 14
Slide 15: Gross Revenue
Gross Revenue Gross Revenue Breakdown Gross Revenue Breakdown R$ Million % Retail Institutional Corporate & Issuer Services Other 4,503 100% 100% 100% 4,270 233 4% 6% 5% 276 8% 3,728 629 12% 14% 509 10% 167 283 346 8% 8% 354 385 3,294 78% 3,131 73% 73% 2,892 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 +21% YoY Gr
Slide 16: Retail Revenue
Retail Revenue Retail Revenue Retail Revenue Breakdown R$ Million % Equities Funds Platform Other Fixed Income New Verticals +14% 3,294 3,300 100% 100% 100% 3,200 18% 16% 15% 3,131 3,100 14% 16% 16% 3,000 2,900 2,892 12% 10% 11% 2,800 20% 22% 25% 2,700 2,600 2,500 37% 36% 34% 2,400 2,300 2Q23 1Q24 2
Slide 17: Corporate & Issuer Services Revenue
Corporate & Issuer Services Revenue Corporate & Issuer Services Breakdown Fostering New Investment Options R$ Million Corporate Issuer Services Corporate Underwriting & Retail +122% Issuer Warehousing Distribution 629 509 384 Market Making & 280 Liquidity Provider 283 Corporate Securities1 157 R$ Bi
Slide 18: 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 +14% 41.7% 1,416 1,420 41.5% 38.3% 1,246 410 442 36.5% 347 36.1% 29.8% 29.8% 26.8% 1,007 978 899 25.2% 24.6% 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 1Q24
Slide 19: Earning Before Taxes (EBT)
Earning Before Taxes (EBT) EBT EBT Margin R$ million % +43% +552 bps 1,384 32.8% Positive Business Dynamics based on Rising 1,088 968 Ecosystem Revenues and Strict Expenses Control 27.3% 26.9% Translates into the Highest EBT in our History 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 19
Slide 20: Net Income
Net Income Net Income Net Margin R$ million % -103 bps 27.5% +14% 26.5% 1,118 25.4% 1,030 977 Record-Setting Results, Despite the Higher Tax Rate 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 20
Slide 21: Capital Management
Capital Management Dividends Paid and Share Repurchases BIS Ratio R$ Million Dividends Paid Share Repurchases 24.2% 4,458 20.8% 20.5% 916 1,815 3,542 1,249 2022 2023 1H24 2Q23 1Q24 2Q24 In 2.5 years, we distributed + R$7.5bn Reducing excess capital through a more efficient capital In dividends and s
Slide 22: Return on Tangible Equity
Return on Tangible Equity EPS Annualized ROTE¹ and ROAE² % 3 Net Income (R$mm) Diluted EPS (R$) ROTE ROAE 1,600 2.03 2.2 27.2% 1.83 1.85 2.0 1,400 1.8 25.4% 24.1% 1,200 1,117 1.6 1,030 1,000 975 1.4 22.1% 1.2 800 1.0 20.7% 22.0% 600 0.8 400 0.6 0.4 200 0.2 0 0.0 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 ROTE of
Slide 23: Final Remarks
3 Final Remarks
Slide 24: Final Remarks
Solid 1 ✓ Guidance on Track Quarter Final Remarks 2 Net New ✓ Retail NNM Improvement Money 3 Moats ✓ Keeping and Enhancing our Differentiation 24
Slide 25: Q&A
4 Q&A
Slide 26: Appendix
BE Appendix
Slide 27: Total Loan Portfolio
Total Loan Portfolio¹ R$ billion Secured Unsecured Total Loans 17.7 1.6 19.3 Credit Card 5.0 2.4 7.4 Main Activities • Investment Banking Corporate Securities 5.7 20.3 26.0 • Fixed Income Distribution • Corporate Credit Credit Portfolio 24.3 17.4 52.7 Note: 1 – Gross of Expected Credit Losses. 27
Slide 28: 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 297.141 60.981 19.034 217.125 [B
Slide 29: Net Asset Value
Net Asset Value (in R$ mn) 2Q24 1Q24 2Q24 1Q24 Financial Assets 277,536 261,880 (=) Adjusted Gross Financial Assets 20,052 20,332 Securities & Derivatives 212,034 189,656 (-) Gross Debt (10,918) (10,960) Loans 26,321 29,542 (-) Bonds (3,775) (3,436) Repos 21,773 30,291 (-) Debentures (1,176) (2,280)
Slide 30: Investor Relations
Investor Relations ir@xpi.com.br https://investors.xpinc.com/ 30