XP Inc. (Nasdaq: XP), a leading, technology-driven platform and
a trusted provider of low-fee financial products and services in
Brazil, announced today its 3Q22 KPIs. The Portuguese version of
this release can be accessed in the Press Release section on the IR
website.
Disclaimer: Corporate Clients
From this quarter onwards, XP Inc. will report Client Assets,
Net Inflow, Credit Portfolio and Gross Revenue for the Corporate
client segment (previously part of Retail), which encompasses
companies with annual revenues over R$700 million. Retail,
therefore, encompasses all individuals as well as companies below
the stated revenue threshold.
Such change follows the recent growth of Corporate, which
reached nearly R$230 million gross revenue in 1H22, a 240% increase
over 1H21. Representing roughly 3% of total revenues, the segment
has great potential and strategical value for XP, being a key
component of the overall companies’ revenue pool of more than R$320
billion (2021). Additionally, given its nature, more volatile and
driven by large transactions, we believe that segregating it from
Retail eases comprehension of each client profile.
Additional KPI details and historical data can be found in our
financial spreadsheet.
Investments
Client Assets (in R$ billion)
Client Assets (former AUC) were R$925 billion as of September
30, up 17% YoY and 9% QoQ. Year-over-year growth was driven by
R$172 billion net inflows and R$37 billion of market
depreciation.
Net Inflow1 (in R$ billion)
3Q22
3Q21
YoY
2Q22
QoQ
Retail
32
43
-25%
40
-20%
Retail - Concentrated1
-
(5)
n.a
-
n.a
Total Retail
32
38
-15%
40
-20%
Corporate
3
(1)
n.a
2
10%
Total Net inflow
35
37
-7%
43
-19%
Active Clients
Active clients grew 5% QoQ and 15% YoY, totaling 3.8 million in
3Q22.
IFA Network
Our network reached 11.6 thousand IFAs in 3Q22, up 3% QoQ and
21% YoY.
Retail Daily Average Trades2
Retail DATs totaled 2.3 million in 3Q22, down 11% YoY and up 3%
QoQ.
NPS (Net Promoter Score)
Our NPS, a widely known survey methodology used to measure
customer satisfaction, was 73 in September 2022. Maintaining a high
NPS score remains a priority for XP since our business model is
built around client experience. The NPS calculation as of a given
date reflects the average scores in the prior six months.
Individual Retirement Plans
Individual Retirement Plans Client Assets3 (in R$
billion)
As per public data published by Susep, XPV&P continued to be
#1 in net portability for individual retirement plans in 2022, as
of August. Despite our consistent growth, we still represent 3.6%
of the market. Total Client Assets achieved R$58 billion in 3Q22,
up 36% YoY and 7% QoQ. Assets from XPV&P, our proprietary
insurer, grew over 60% YoY.
Cards
Cards TPV
Total TPV reached R$6.6 billion in 3Q22, a 103% growth versus
R$3.3 billion in 3Q21, and 21% growth versus 2Q22.
Active Credit and Debit Cards
Total active cards surpassed 516 thousand in 3Q22, a growth of
35% QoQ and 171% YoY. We ended 3Q22 with 342 thousand active
digital accounts. We expect the full experience of the credit card,
combined with both debit card and digital account, to further
enhance client journey, increasing both our share of wallet and
share of spending.
Credit
Credit Portfolio2 (in R$ billion)
Credit portfolio reached R$16.3 billion as of September 2022,
expanding 26% QoQ and 88% YoY. The average maturity of our credit
book was 3.2 years, with a 90-day Non-Performing Loan (NPL) ratio
of 0.0%.
Non-GAAP Measures
This release includes certain non-GAAP financial information We
believe that such information is meaningful and useful in
understanding the activities and business metrics of the Company’s
operations. We also believe that these non-GAAP financial measures
reflect an additional way of viewing aspects of the Company’s
business that, when viewed with our International Financial
Reporting Standards results, as issued by the International
Accounting Standards Board, provide a more complete understanding
of factors and trends affecting the Company’s business.
Furthermore, investors regularly rely on non-GAAP financial
measures to assess operating performance and such measures may
highlight trends in the Company’s business that may not otherwise
be apparent when relying on financial measures calculated in
accordance with IFRS. We also believe that certain non-GAAP
financial measures are frequently used by securities analysts,
investors, and other interested parties in the evaluation of public
companies in the Company’s industry, many of which present these
measures when reporting their results. The non-GAAP financial
information is presented for informational purposes and to enhance
understanding of the IFRS financial statements. The non-GAAP
measures should be considered in addition to results prepared in
accordance with IFRS, but not as a substitute for, or superior to,
IFRS results. As other companies may determine or calculate this
non-GAAP financial information differently, the usefulness of these
measures for comparative purposes is limited.
About XP
XP is a leading, technology-driven platform and a trusted
provider of low-fee financial products and services in Brazil. XP’s
mission is to disintermediate the legacy models of traditional
financial institutions by:
- Educating new classes of investors;
- Democratizing access to a wider range of financial
services;
- Developing new financial products and technology applications
to empower clients; and
- Providing high-quality customer service and client experience
in the industry in Brazil.
XP provides customers with two principal types of offerings, (i)
financial advisory services for retail clients in Brazil,
high-net-worth clients, international clients and corporate and
institutional clients, and (ii) an open financial product platform
providing access to over 800 investment products including equity
and fixed income securities, mutual and hedge funds, structured
products, life insurance, pension plans, real-estate investment
funds (REITs) and others from XP, its partners and competitors.
Forward Looking Statements
This press release contains "forward-looking statements" within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are made as of the date they were first issued and were
based on current expectations, estimates, forecasts and projections
as well as the beliefs and assumptions of management. Words such as
"expect," "anticipate," "should," "believe," "hope," “aim,”
"target," "project," "goals," "estimate," "potential," "predict,"
"may," "will," "might," "could," "intend," variations of these
terms or the negative of these terms and similar expressions are
intended to identify these statements. Forward-looking statements
are subject to a number of risks and uncertainties, many of which
involve factors or circumstances that are beyond XP Inc’s control.
XP, Inc’s actual results could differ materially from those stated
or implied in forward-looking statements due to several factors,
including but not limited to: competition, change in clients,
regulatory measures, a change the external forces among other
factors.
1 Equity custodies greater than R$5 billion per client/economic
group.
2 Daily Average Trades, including Stocks, Listed Funds, Options
and Futures.
3 Total Pension Funds Clients’ Assets includes assets from XP
Vida e Previdência and from third party funds distributed in our
platform.
4 From 3Q22 onwards, the credit portfolio is disclosed gross
(versus previously net) of loan loss provisions, also
retroactively, not including Intercompany transactions and Credit
Card related loans and receivables.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221020005979/en/
Investor Contact: ir@xpi.com.br IR Website:
investors.xpinc.com
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