Q2 2024 XP Inc Earnings Call Transcript
Key Points
- XP Inc (XP) reported a 14% year-over-year increase in total client assets, reaching BRL1.2 trillion.
- The company achieved an all-time high in revenue, EBT, and net income, with gross revenue up 21% year over year.
- XP Inc (XP) set a new record in the total number of advisors, reaching 18,300, and expanded its sales force by 11% year over year.
- The company reported a return on tangible equity of 27.2%, the highest in the past 2.5 years.
- XP Inc (XP) achieved a 43% year-over-year growth in EBT, reaching BRL1.4 billion, and a 26% net income margin.
- The effective tax rate increased significantly this quarter, attributed to the revenue mix and higher tax business segments.
- Despite the growth, the net margin decreased by 103 basis points year over year.
- The credit portfolio saw a 14% decline quarter on quarter, attributed to securitization and risk recycling.
- There was a noted drop in monthly spend for the credit card business for the second consecutive quarter.
- The company faced challenges in maintaining consistent net inflows, with previous quarters showing lower levels.
Good evening, everyone. I'm Andre Parize, IRO at XP Inc. It's a pleasure to be here with you today.
On behalf of the company, I'd like to thank you all for the interest and welcome you to our 2024 second-quarter earnings call. This quarter, the results will be presented by our CEO, Thiago Maffra; and our CFO, Victor Mansur, who will both be available for the Q&A session right after the presentation. (Event Instructions)
And before we begin our presentation, please refer to our legal disclaimers on page 2, on which we clarify forward-looking statements. Additional information on forward-looking statements can also be found on the SEC Filings section of the IR website.
So now, I will turn it over to Thiago Maffra. Good evening, Maffra.
Thank you, Andre. Good evening to all. I appreciate everyone joining us for our 2024 second-quarter earnings call. It's a pleasure to be here tonight.
Let's delve into our quarterly
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