Yahoo Finance

• Client Assets: BRL1.22 trillion, 9% growth year over year.

• Number of Advisers: 18,200, 5% growth year over year.

• Client Base: 4.7 million, 3% growth year over year.

• Gross Revenue: BRL18 billion, 15% growth year over year.

• EBT: BRL5 billion, significant growth year over year.

• Adjusted Net Income: BRL1.2 billion in Q4 2024, BRL4.5 billion for the full year, 17% growth year over year.

• ROTE: 28.7% in 2024, 376 bps expansion versus 2023.

• ROE: 23%, 163 bps expansion.

• Adjusted Diluted EPS: 16% growth during the year.

• Net New Money (Retail): BRL20 billion per quarter, 67% growth year over year.

• Total Net New Money: BRL26 billion, 37% growth year over year.

• Credit Card TPV: BRL13.1 billion in Q4 2024, 11% growth year over year.

• Life Insurance Written Premium: 37% growth year over year in Q4, 44% growth for the full year.

• Retirement Plans Client Assets: 10% growth year over year in Q4, BRL81 billion.

• Retail Credit NII: 79% growth year over year, BRL81 million in revenues this quarter.

• Corporate & Issuer Services Revenue: BRL2,289 million, 45% growth in the year.

• SG&A Expenses: BRL5,927 million, 10% growth during the year.

• Efficiency Ratio: Improved by 157 basis points during the year, achieving 34.7%.

• Adjusted Net Income: BRL4,544 million for the year, 17% growth year over year.

• BIS Ratio: 17.7% at the end of 2024.

• Dividends and Buybacks: Close to BRL10 billion over the past three years.

• Earnings Per Share (EPS): BRL8.28, 16% increase year over year.

• ROTE: 29.2% in the quarter, 78 basis points higher quarter over quarter.

• ROAE: 23.4%, 40 basis points higher quarter over quarter.

• Warning! GuruFocus has detected 6 Warning Signs with XP.

Release Date: February 18, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• XP Inc (NASDAQ:XP) achieved a record-setting year in 2024, with gross revenues reaching BRL18 billion, marking a solid 15% growth year over year.

• The company reported the highest quarterly adjusted net income since its IPO, posting BRL1.2 billion in Q4 2024 and a total of BRL4.5 billion for the full year, representing a 17% expansion year over year.

• XP Inc (NASDAQ:XP) demonstrated strong growth in client assets, reaching BRL1.22 trillion, a 9% increase year over year.

• The company achieved a 28.7% ROTE in 2024, with a 376 basis points expansion versus 2023, indicating strong profitability.

• XP Inc (NASDAQ:XP) successfully expanded its retail fixed income and corporate & issuer services, contributing significantly to the company's revenue growth.

Negative Points

• The company faces challenges in maintaining its take rate due to the increasing share of fixed income products, which typically have lower margins.

• There is a potential risk of lower DCM volumes in 2025, which could impact XP Inc (NASDAQ:XP)'s growth in the corporate and institutional segments.

• The competitive environment with large banks, especially in high-interest rate scenarios, poses challenges for XP Inc (NASDAQ:XP) in terms of market share and pricing.

• The company's risk-weighted assets grew significantly, driven by the expansion of the wholesale banking franchise, which may impact capital efficiency.

• XP Inc (NASDAQ:XP) needs to focus on improving the productivity of its IFA channel to unlock further growth potential, which may require additional resources and strategic adjustments.