Slide 1: 3Q24 Earnings Presentation
XP inc. 3Q24 Earnings Presentation XPinc.
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 3Q24 Financials and Main KPIs 03 Final Remarks 04 Q&A 05 Appendix
Slide 4: 01. Key Highlights
01. Key Highlights XPinc.
Slide 5: Highlights
Highlights Our Clear Strategy Delivering Consistent Growth and Record Results Core Investment KPIs R$ 1.2 trillion Client’s assets (+12% YoY) 18.4k Total Advisors (+9% YoY) 4.7 million Diluted EPS R$ Active Clients (+6% YoY) 7.93 Income Statement 7.16 9M24 R$ 13.3 billion R$ 3.7 billion R$ 3.3 billi
Slide 6: Strategy Tracker
Strategy Tracker Gross Revenue R$ Billion Retail Retail Corporate Investments Cross-Sell & SMB 20% 26.8 CAGR 20% 22.8 Leadership Grow with Our Premier Service CAGR 12% CAGR in Core Business Clients’ Needs with Unique Value 17.6 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 – Consistent Net New Money
Retail Investments – Consistent Net New Money Strategy Execution Setting us Apart from Peers Net New Money(1) Retail Strategy – Keeping Our Moats R$ Million Expanding and Protecting our Core Business Retail Corporate +124% Product Platform 32 1 Best Investment Options – from Fixed-Income to Alternat
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 Main KPI Example: Revenue Per Client Improves with Cross-Sell +12% Penetration(1)(2) Across Different Client Segments (base 100) 12.0 50% 11.5 29% Cards 10.7 +100% TPV (in R$bn) 3Q23 2Q24 3Q24 3Q24 Peers Avg. +38% +46% Penetration(2)(3) Average 100 138 200 362 17% 307 248 Life Insu
Slide 11: Strategy Tracker: Corporate & SMB
Strategy Tracker Retail Retail Corporate Investments Cross-Sell & SMB Leadership Grow with Our Premier Service in Core Business Clients’ Needs with Unique Value Our main goal is to achieve leadership in the investment market, our Starting from our clients’ needs, we will expand our offer to serve th
Slide 12: Wholesale
Wholesale Main KPI -20% Market Share 13.6 25% 2nd 1st 10.8 8.6 14% Investment Banking DCM Volume1 Ranked 2nd in DCM Ranked 1st in CRA (in R$bn) 3Q23 2Q24 3Q24 3Q24 YTD Market Leader YTD and FII Institutional, Corporate and Issuer +19% Services Gross Revenue Market Share 179 177 18% R$ Million 149 In
Slide 13: 02. 3Q24 Financials
02. 3Q24 Financials XPinc.
Slide 14: Gross Revenue
Gross Revenue Gross Revenue Breakdown Gross Revenue Breakdown R$ Million % Retail Institutional Corporate & Issuer Services Other 4,503 4,536 100% 100% 100% 4,364 233 150 6% 5% 3% 281 552 12% 629 12% 14% 519 340 7% 346 9% 8% 386 3,494 77% 3,179 3,294 73% 73% 3Q23 2Q24 3Q24 3Q23 2Q24 3Q24 Retail Gain
Slide 15: Retail Revenue
Retail Revenue Retail Revenue Retail Revenue Breakdown R$ Million % Equities Fixed Income Funds Platform New Verticals Other +10% 3,494 3,500 100% 100% 100% 3,400 18% 15% 17% 3,294 3,300 3,200 3,179 16% 14% 15% 3,100 10% 11% 10% 3,000 2,900 23% 25% 2,800 27% 2,700 2,600 2,500 36% 34% 30% 2,400 2,300
Slide 16: Corporate & Issuer Services Revenue
Corporate & Issuer Services Revenue Corporate & Issuer Services Breakdown Fostering New Investment Options R$ Million Corporate Issuer Services +6% Corporate Underwriting & Retail Issuer Warehousing Distribution 629 552 519 384 Market Making & 323 Liquidity Provider 322 Corporate Securities1 R$ Bill
Slide 17: 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 Compensation Ratio Efficiency Ratio 41.7% -2% 1,547 1,515 38.3% 1,420 36.5% 499 530 442 35.5% 29.8% 1,048 26.8% 978 984 25.2% 24.0% 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1
Slide 18: Earning Before Taxes (EBT)
Earning Before Taxes (EBT) EBT R$ million EBT Margin +5% +25% 70 1,384 1,400 42 4,000 3,685 60 40 1,300 3,500 38 Solid EBT Results 50 1,157 1,212 1,200 36 2,941 3,000 40 with Different 30 28.0% 32.8% 28.1% 34 1,100 32 2,500 1,000 Revenue Mix 20 30 29.3% 2,000 900 28 27.2% 10 26 1,500 0 800 24 700 1,
Slide 19: Net Income
Net Income Net Income R$ million Net Margin +9% +17% 34 1,187 1,200 32 3,500 3,334 1,118 Another Quarter with 32 1,087 1,100 30 2,859 3,000 30 Record-Setting 28 27.5% 1,000 28 2,500 26.4% 26.5% Results, with +118bps 26 26.3% 26.5% 900 26 2,000 Net Margin YoY 24 800 24 1,500 22 700 22 1,000 20 18 600
Slide 20: Capital Management
Capital Management BIS Ratio(1) Risk-Weighted Assets and VaR Common Equity Tier 1 Additional Tier 1 Tier 2 Credit RWA Market RWA Operational RWA RWA / Total Assets 22.9% 1.2% 21.5% 30% 31% 30% 20.5% 0.9% 0.9% 0.9% 23% 18.3% 26% 0.9% 38% Assuming R$2bn Dividend Distribution 18% And R$1bn Share 28% 21
Slide 21: Capital Management
Capital Management Dividends Paid and Share Repurchases(1) Payout Ratio(1)(2) R$ Million Dividends Paid Share Repurchases 114% 4,458 4,249 >90% 916 2,249 51% 1,815 3,542 2,000 2022 2023 2024E (1) 2022 2023 2024E In Three Years + R$10.5bn Consistent Capital Distribution to Shareholders In Dividends a
Slide 22: EPS and Return on Tangible Equity
EPS and Return on Tangible Equity EPS Annualized ROTE¹ and ROAE² % 3 Net Income (R$mm) Diluted EPS (R$) ROTE ROAE 28.4% 2.18 1,600 2.03 2.2 27.2% 1.96 25.8% 2.0 1,400 1.8 1,200 1,186 1,086 1,117 1.6 1,000 1.4 23.0% 22.1% 1.2 800 22.6% 1.0 600 0.8 400 0.6 0.4 200 0.2 0 0.0 3Q23 2Q24 3Q24 3Q23 2Q24 3Q
Slide 23: 03. Final Remarks
03. Final Remarks XPinc.
Slide 24: Final Remarks
Solid 1 ✓ Guidance on Track Quarter Net New 2 ✓ Retail NNM Consistency Money Final Remarks 3 Moats ✓ Financial Planning at Scale as a New Edge 4 Capital Return ✓ Strong Capital Distribution and EPS Increase 24
Slide 25: 04. Q&A
04. Q&A XPinc.
Slide 26: Total Loan Portfolio
Total Loan Portfolio¹ R$ billion Secured Unsecured Total Loans 17.0 3.1 20.1 Credit Card 5.2 2.6 7.8 Main Activities • Investment Banking Corporate Securities 5.4 17.4 22.8 • Fixed Income Distribution • Corporate Credit Credit Portfolio 27.7 23.0 50.7 Note: 1 – Gross of Expected Credit Losses. 26
Slide 27: 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 316,400 64,126 20,040 232,233 [B
Slide 28: 3Q24 Earnings Presentation – Investor Relations
3Q24 Earnings Presentation Investor Relations ir@xpi.com.br https://investors.xpinc.com/