XP Inc. Reports Strong Growth and Client Expansion in Q3 2024 Financial Results

XP Inc. Reports Robust Growth, Expanding Client Base and Services

XP Inc. (NASDAQ: XP), a leading technology-driven financial services platform in Brazil, reveals impressive third-quarter results for 2024, demonstrating substantial growth across key operational metrics. The company reports a total client asset value of R$1.213 trillion, which signifies a 12% increase year-over-year from R$1.080 trillion in 3Q23 and a 4% rise from R$1.167 trillion in the previous quarter. This growth underscores XP’s strong market position and commitment to enhancing its client offerings. Notably, XP has expanded its active client base by 6%, reaching 4.659 million compared to 4.413 million in the same quarter last year. This increase reflects XP's effective strategies in attracting and retaining clients amidst a competitive financial landscape.

While total net inflow has experienced a year-over-year decline of 36% to R$31 billion, the company continues to bolster its workforce, with a headcount increase of 8% to 7,241 employees. The rise in the number of financial advisors to 18,400—up 9%—highlights XP’s commitment to providing personalized financial services. Financially, XP marks a gross revenue of R$4.536 billion, representing a 4% year-over-year increase, while net revenue rises by 5% to R$4.319 billion. The net income also reflects a healthy growth rate of 9%, totaling R$1.187 billion, which translates to a basic earnings per share (EPS) of R$2.21, an 11% increase from the previous year. Despite a 12% drop in institutional revenue, XP’s overall performance illustrates resilience and a strong foothold in Brazil's evolving financial market.

In addition to operational growth, XP Inc. announces the approval of a new share repurchase program, allowing the company to buy back up to R$1.0 billion (approximately USD 200 million) of its outstanding Class A common shares. Set to commence on November 20, 2024, this initiative reflects XP's strategic approach to capital management and shareholder value enhancement. The repurchase will be funded by the company’s existing cash reserves, with management authorized to execute purchases in compliance with regulatory guidelines. This program is subject to market conditions and will be periodically reviewed by the board to ensure alignment with corporate objectives.

Furthermore, XP Inc. declares a cash dividend of $0.65 per common share, scheduled for distribution on December 18, 2024. This decision reinforces the company's commitment to returning value to shareholders while continuing to invest in its growth and technological capabilities. XP Inc. remains focused on democratizing access to financial services in Brazil, catering to various client segments with an extensive range of over 800 investment products, including equities and fixed-income securities, thereby solidifying its position as a trusted player in the financial services industry.