Q2 2025 XP Inc Earnings Call Transcript
Key Points
- XP Inc (XP) achieved the highest net income in its history, reaching BRL1,321 million, representing an 18% year-over-year growth.
- The company posted a 24.4% return on equity (ROE) during the quarter, marking a 223 basis points expansion compared to the second quarter of 2024.
- XP Inc (XP) reported a 22% growth in diluted earnings per share (EPS) year over year, driven by its share buyback program.
- The company's total gross revenues for the quarter reached BRL4.7 billion, representing a 4% increase year over year.
- XP Inc (XP) continues to expand its ecosystem, with new verticals such as global accounts and consortium contributing to a 146% growth year over year in new product revenues.
- The company's earnings before taxes (EBT) decreased by 5% year over year, reaching BRL1.3 billion, due to positive impacts in the previous year.
- Net new money from corporate and institutional clients was negative, with a BRL6 billion outflow, reflecting challenges in the current macroeconomic environment.
- The corporate lending strategy faces challenges as banks demand reciprocity in terms of investments for credit lines, impacting XP Inc (XP)'s ability to retain corporate funds.
- SG&A expenses increased by 10% year over year, driven by higher marketing and technology investments, impacting the company's efficiency ratio.
- The company's fee-based model represents only 5% of total client assets, indicating a slower adoption compared to developed markets like the US.
(audio in progress) to our second quarter 2025 earnings call. Today's presentation will be led by our CEO Thiago Maffra; and our CFO, Victor Mansur' who will both be available for the Q&A session right after the presentation, and we will address them in order received. We also offer the option of simultaneous translation to Portuguese. If you'd like to activate it, please click the button below.
Before we begin, please refer to our legal disclaimers on page 2 where we provide additional information regarding forward-looking statements. You can also find more information in the SEC filing section of our IR website.
Thank you, Andrea. Good evening, everyone. I appreciate you all joining us today for the second quarter 2025 earnings call. So, half a year is already behind us, but there's much more to come. We are still working hard, I would say, in an obsessive way to keep evolving our client's journey experience and product
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