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Dec 31, 2024
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XP Q4 2024 Earnings Report
XP Inc. reported strong revenue growth and increased adjusted net income in Q4 2024.
Key Takeaways
XP Inc. delivered solid financial results in Q4 2024, with a 10% year-over-year increase in gross revenue, reaching R$4.725 billion. Adjusted net income rose 16% to R$1.21 billion, driven by a record efficiency ratio of 34.7%. Retail revenue grew 13% year-over-year, supported by strength in fixed income and cards. Operating efficiency and strategic expansion contributed to profitability improvements.
Gross revenue increased by 10% YoY to R$4.725 billion.
Adjusted net income rose 16% YoY to R$1.21 billion.
Retail revenue saw 13% growth YoY, led by fixed income and cards.
Efficiency ratio reached a record low of 34.7%, reflecting cost discipline.
XP
XP
XP Revenue by Segment
Revenue by Segment
Retail Revenue
CapyFin.comInstitutional Revenue
CapyFin.comIssuer Services Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
XP Inc. expects continued revenue growth and EPS expansion in 2025, driven by retail investment demand, fixed income momentum, and strategic market expansion.
Positive Outlook
- Higher interest rate environment expected to support client asset growth.
- Continued strong performance in fixed income and wealth management.
- Strategic expansion into wholesale banking to drive diversification.
- Ongoing cost discipline expected to improve efficiency metrics further.
- Share repurchase program to enhance EPS growth.
Challenges Ahead
- Macroeconomic volatility remains a key risk factor.
- Competitive pressure from traditional and digital financial institutions.
- Potential regulatory changes affecting investment platforms.
- Execution risks in expanding wholesale banking initiatives.
- Global market uncertainties impacting investor sentiment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income