Cover Page
Cover Page | 9 Months Ended |
Sep. 30, 2020 | |
Document Information [Line Items] | |
Document Type | F-1 |
Amendment Flag | false |
Entity Registrant Name | XP Inc. |
Entity Central Index Key | 0001787425 |
Entity Emerging Growth Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets £ in Thousands, R$ in Thousands | Sep. 30, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) |
Statement of financial position [abstract] | |||
Cash | R$ 642491 | R$ 109922 | R$ 68407 |
Financial assets | 84,432,999 | 41,888,778 | 16,582,616 |
Fair value through profit or loss | 51,850,286 | 26,528,396 | 7,983,002 |
Securities | 38,701,519 | 22,443,392 | 6,290,971 |
Derivative financial instruments | 13,148,767 | 4,085,004 | 1,692,031 |
Fair value through other comprehensive income | 9,588,773 | 2,616,118 | 695,778 |
Securities | 9,588,773 | 2,616,118 | 695,778 |
Evaluated at amortized cost | 22,993,940 | 12,744,264 | 7,903,836 |
Securities | 1,366,038 | 2,266,971 | 155,292 |
Securities purchased under agreements to resell | 18,243,688 | 9,490,090 | 6,570,609 |
Securities trading and intermediation | 1,483,507 | 504,983 | 898,312 |
Accounts receivable | 251,194 | 462,029 | 219,200 |
Loan operations | 1,369,234 | 386 | |
Other financial assets | 20,191 | 60,423 | |
Other financial assets | 280,279 | 19,805 | |
Other assets | 1,484,110 | 643,619 | 316,777 |
Recoverable taxes | 170,066 | 243,320 | 183,350 |
Prepaid expenses | 1,090,998 | 89,684 | 96,723 |
Rights-of-use assets | 182,014 | 227,478 | 133,870 |
Other | 41,032 | 83,137 | 36,704 |
Deferred tax assets | 378,726 | 284,533 | 152,425 |
Investments in associates and joint ventures | 696,742 | 0 | |
Property and equipment | 94,756 | 142,464 | 99,127 |
Goodwill and Intangible assets | 669,534 | 553,452 | 504,915 |
Total assets | 88,399,358 | 43,622,768 | 17,724,267 |
Financial liabilities | 69,388,840 | 31,842,054 | 15,216,037 |
Fair value through profit or loss | 13,841,366 | 5,250,943 | 2,250,978 |
Securities loaned | 1,111,770 | 2,021,707 | 1,259,579 |
Derivative financial instruments | 12,729,596 | 3,229,236 | 991,399 |
Evaluated at amortized cost | 55,547,474 | 26,591,111 | 12,965,059 |
Securities sold under repurchase agreements | 35,253,928 | 15,638,407 | 6,640,694 |
Securities trading and intermediation | 15,159,711 | 9,114,546 | 5,306,628 |
Deposits | 1,626,709 | 70,195 | |
Structured operations certificates | 1,142,457 | 19,474 | |
Borrowings and lease liabilities | 511,981 | 637,484 | 469,609 |
Debentures | 338,693 | 835,230 | 406,538 |
Accounts payables | 655,117 | 266,813 | 134,579 |
Other financial liabilities | 858,878 | 98,631 | 7,011 |
Other financial liabilities | 858,878 | 8,962 | |
Other liabilities | 10,298,861 | 4,619,623 | 404,493 |
Social and statutory obligations | 379,696 | 492,723 | 251,690 |
Taxes and social security obligations | 234,652 | 345,331 | 103,121 |
Private pension liabilities | 9,649,322 | 3,759,090 | 16,059 |
Provisions and contingent liabilities | 16,020 | 15,193 | 17,474 |
Other | 19,171 | 7,286 | 16,149 |
Deferred tax liabilities | 41,074 | 5,132 | 12,025 |
Total liabilities | 79,728,775 | 36,466,809 | 15,632,555 |
Equity attributable to owners of the Parent company | 8,669,470 | 7,153,396 | 2,084,777 |
Issued capital | 23 | 23 | 21 |
Capital reserves | 7,021,993 | 6,943,446 | 1,875,591 |
Other comprehensive income | 171,841 | 209,927 | 209,165 |
Retained earnings | 1,475,613 | 0 | |
Non-controlling interest | 1,113 | 2,563 | 6,935 |
Total equity | 8,670,583 | 7,155,959 | 2,091,712 |
Total liabilities and equity | R$ 88399358 | R$ 43622768 | R$ 17724267 |
Consolidated Statements of Inco
Consolidated Statements of Income and of Comprehensive Income R$ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Sep. 30, 2020BRL (R$)R$ / shares | Sep. 30, 2019BRL (R$)R$ / shares | Sep. 30, 2020BRL (R$)R$ / shares | Sep. 30, 2019BRL (R$)R$ / shares | Dec. 31, 2019BRL (R$)R$ / shares | Dec. 31, 2018BRL (R$)R$ / shares | Dec. 31, 2017BRL (R$)R$ / shares | ||||||||
Profit (loss) [abstract] | ||||||||||||||
Net revenue from services rendered | R$ 1277745 | R$ 944038 | R$ 3493231 | R$ 2341100 | R$ 3595772 | R$ 2054549 | R$ 1283616 | |||||||
Net income from financial instruments at amortized cost and at fair value through other comprehensive income | 189,527 | 26,513 | 298,585 | 204,023 | 199,947 | 114,442 | 79,380 | |||||||
Net income from financial instruments at fair value through profit or loss | 633,465 | 385,373 | 1,964,691 | 891,390 | 1,332,089 | 789,462 | 543,654 | |||||||
Total revenue and income | 2,100,737 | 1,355,924 | 5,756,507 | 3,436,513 | 5,127,808 | 2,958,453 | 1,906,650 | |||||||
Operating costs | (706,020) | (444,958) | (1,864,062) | (1,118,967) | (1,606,060) | (941,246) | (579,880) | |||||||
Selling expenses | (38,322) | [1] | (30,104) | [1] | (94,367) | [1] | (82,419) | [1] | (155,115) | (96,075) | (32,881) | |||
Administrative expenses | (809,596) | (481,605) | (2,077,587) | (1,294,039) | (1,891,481) | (1,176,805) | (649,585) | |||||||
Other operating income (expenses), net | 97,801 | 7,358 | 84,986 | 118,487 | 153,357 | (31,289) | (7,704) | |||||||
Interest expense on debt | (11,585) | (24,481) | (46,385) | (62,631) | (84,400) | (72,310) | (61,093) | |||||||
Share of profit or (loss) in joint ventures and associates | (564) | 0 | (564) | 0 | ||||||||||
Income before income tax | 632,451 | 382,134 | 1,758,528 | 996,944 | 1,544,109 | 640,728 | 575,507 | |||||||
Income tax expense | (91,167) | (121,336) | (279,427) | (297,646) | (454,625) | (175,398) | (151,966) | |||||||
Net income for the year | 541,284 | 260,798 | 1,479,101 | 699,298 | 1,089,484 | 465,330 | 423,541 | |||||||
Items that can be subsequently reclassified to income | ||||||||||||||
Foreign exchange variation of investees located abroad | 6,900 | 15,191 | 76,575 | 12,126 | 6,823 | 18,645 | 2,034 | |||||||
Gains (losses) on net investment hedge | (7,531) | (13,911) | (80,370) | (11,829) | (7,133) | (17,495) | (2,386) | |||||||
Changes in the fair value of financial assets at fair value through other comprehensive income | (45,072) | (8,118) | (33,914) | 986 | 698 | 4,160 | 210 | |||||||
Other comprehensive income (loss) for the year, net of tax | (45,703) | (6,838) | (37,709) | 1,283 | 388 | 5,310 | (142) | |||||||
Total comprehensive income for the year | 495,581 | 253,960 | 1,441,392 | 700,581 | 1,089,872 | 470,640 | 423,399 | |||||||
Net income attributable to: | ||||||||||||||
Owners of the Parent company | 540,434 | 257,814 | 1,475,613 | 692,011 | 1,080,484 | 461,440 | 413,874 | |||||||
Non-controlling interest | 850 | 2,984 | 3,488 | 7,287 | 9,000 | 3,890 | 9,667 | |||||||
Total comprehensive income attributable to: | ||||||||||||||
Owners of the Parent company | 494,731 | 250,976 | 1,437,904 | 693,294 | 1,080,872 | 466,750 | 413,732 | |||||||
Non-controlling interest | R$ 850 | R$ 2984 | R$ 3488 | R$ 7287 | R$ 9000 | R$ 3890 | R$ 9667 | |||||||
Earnings per share from total income attributable to the ordinary equity holders of the company | ||||||||||||||
Basic earnings per share | (per share) | R$ 0.9794 | R$ 0.5063 | R$ 2.6742 | R$ 1.3589 | R$ 2.1125 | [2] | R$ 0.9358 | [2] | R$ 0.8535 | [2] | ||||
Diluted earnings per share | (per share) | R$ 0.9710 | R$ 0.5063 | R$ 2.6534 | R$ 1.3589 | R$ 2.1115 | [2] | R$ 0.9358 | [2] | R$ 0.8535 | [2] | ||||
[1] | Selling expenses refers to advertising and publicity. | |||||||||||||
[2] | The basic and diluted earnings per common share are in effect with the reverse share split occurred on November 30, 2019. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - BRL (R$) | Total | Issued Capital [member] | Additional paid-in capital [member] | Other Reserves [member] | Other comprehensive income [member] | Retained earnings [member] | Equity attributable to owners of parent [member] | Non-Controlling interests [member] |
Beginning Balance at Dec. 31, 2016 | R$ 1094807000 | R$ 20000 | R$ 254602000 | R$ 586855000 | R$ 203683000 | R$ 1045160000 | R$ 49647000 | |
Comprehensive income for the period | ||||||||
Net income for the year | 423,541,000 | R$ 413874000 | 413,874,000 | 9,667,000 | ||||
Other comprehensive income, net | (142,000) | (142,000) | (142,000) | |||||
Transactions with shareholders—contributions and distributions | ||||||||
Subscriptions (redemptions) at funds by non-controlling interest | (45,550,000) | (45,550,000) | ||||||
Gain (loss) in changes in interest of subsidiaries, net | (2,078,000) | (95,000) | (95,000) | (1,983,000) | ||||
Allocations of the net income for the period | ||||||||
Transfer to capital reserves | 136,313,000 | (136,313,000) | ||||||
Dividends distributed | (318,856,000) | (37,437,000) | (277,561,000) | (314,998,000) | (3,858,000) | |||
Ending balance at Dec. 31, 2017 | 1,151,722,000 | 20,000 | 254,602,000 | 685,731,000 | 203,446,000 | 1,143,799,000 | 7,923,000 | |
Comprehensive income for the period | ||||||||
Net income for the year | 465,330,000 | 461,440,000 | 461,440,000 | 3,890,000 | ||||
Other comprehensive income, net | 5,310,000 | 5,310,000 | 5,310,000 | |||||
Transactions with shareholders—contributions and distributions | ||||||||
Capital contributions | 673,294,000 | 1,000 | 673,293,000 | 673,294,000 | ||||
Corporate reorganization | 525,000 | 525,000 | 525,000 | |||||
Gain (loss) in changes in interest of subsidiaries, net | (379,000) | 409,000 | 409,000 | (788,000) | ||||
Allocations of the net income for the period | ||||||||
Transfer to capital reserves | 261,440,000 | (261,440,000) | ||||||
Dividends distributed | (204,090,000) | (200,000,000) | (200,000,000) | (4,090,000) | ||||
Ending balance at Dec. 31, 2018 | 2,091,712,000 | 21,000 | 927,895,000 | 947,696,000 | 209,165,000 | 2,084,777,000 | 6,935,000 | |
Comprehensive income for the period | ||||||||
Net income for the year | 699,298,000 | 692,011,000 | 692,011,000 | 7,287,000 | ||||
Other comprehensive income, net | 1,283,000 | 1,283,000 | 0 | 1,283,000 | ||||
Transactions with shareholders—contributions and distributions | ||||||||
Gain (loss) in changes in interest of subsidiaries, net | (1,229,000) | 210,000 | 210,000 | (1,439,000) | ||||
Allocations of the net income for the period | ||||||||
Dividends distributed | (9,193,000) | (9,193,000) | ||||||
Ending balance at Sep. 30, 2019 | 2,781,871,000 | 21,000 | 927,895,000 | 947,696,000 | 210,658,000 | 692,011,000 | 2,778,281,000 | 3,590,000 |
Beginning Balance at Dec. 31, 2018 | 2,091,712,000 | 21,000 | 927,895,000 | 947,696,000 | 209,165,000 | 2,084,777,000 | 6,935,000 | |
Comprehensive income for the period | ||||||||
Net income for the year | 1,089,484,000 | 1,080,484,000 | 1,080,484,000 | 9,000,000 | ||||
Other comprehensive income, net | 388,000 | 388,000 | 388,000 | |||||
Transactions with shareholders—contributions and distributions | ||||||||
Capital contributions | 4,504,826,000 | 2,000 | 4,504,824,000 | 4,504,826,000 | ||||
Transactions costs from capital contributions | (22,824,000) | (22,824,000) | (22,824,000) | |||||
Share based incentive plan | 5,371,000 | 5,371,000 | 5,371,000 | |||||
Gain (loss) in changes in interest of subsidiaries, net | (1,855,000) | 374,000 | 374,000 | (2,229,000) | ||||
Allocations of the net income for the period | ||||||||
Transfer to capital reserves | 580,484,000 | (580,484,000) | ||||||
Dividends distributed | (511,143,000) | (500,000,000) | (500,000,000) | (11,143,000) | ||||
Ending balance at Dec. 31, 2019 | 7,155,959,000 | 23,000 | 5,409,895,000 | 1,533,551,000 | 209,927,000 | 0 | 7,153,396,000 | 2,563,000 |
Comprehensive income for the period | ||||||||
Net income for the year | 1,479,101,000 | 0 | 0 | 0 | 0 | 1,475,613 | 1,475,613,000 | 3,488,000 |
Other comprehensive income, net | (37,709,000) | 0 | 0 | 0 | (37,709,000) | 0 | (37,709,000) | 0 |
Transactions with shareholders—contributions and distributions | ||||||||
Share based incentive plan | 78,537,000 | 78,547,000 | 78,547,000 | (10,000) | ||||
Gain (loss) in changes in interest of subsidiaries, net | 831,000 | 0 | 0 | 0 | (377,000) | 0 | (377,000) | 1,208,000 |
Allocations of the net income for the period | ||||||||
Dividends distributed | (6,136,000) | 0 | 0 | 0 | 0 | 0 | 0 | (6,136,000) |
Ending balance at Sep. 30, 2020 | R$ 8670583000 | R$ 23000 | R$ 5409895000 | R$ 1612098000 | R$ 171841000 | R$ 1475613000 | R$ 8669470000 | R$ 1113000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - BRL (R$) R$ in Thousands | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities | |||||
Income before income tax | R$ 1758528 | R$ 996944 | R$ 1544109 | R$ 640728 | R$ 575507 |
Adjustments to reconcile income before income taxes | |||||
Depreciation of property, equipment and right-of-use assets | 52,972 | 38,409 | 53,080 | 24,470 | 9,338 |
Amortization of intangible assets | 52,928 | 23,992 | 37,630 | 28,318 | 18,065 |
Loss on impairment and write-off of property, equipment, intangible assets and leases, net | 61,888 | 7,606 | 11,245 | 19,915 | 4,491 |
Income from share in the net income of associates and joint ventures and other investments | 562 | ||||
Expected credit losses on accounts receivable, loan operations and other financial assets | 38,171 | 6,318 | 9,410 | 8,220 | 4,347 |
(Reversal of) Provision for contingencies, net | (53) | (2,207) | (1,601) | 7,897 | 3,531 |
Net foreign exchange differences | 2,981 | 571 | 3,636 | (25,832) | 36,271 |
Grant of share-based plan | 78,537 | 5,371 | |||
Interest accrued | 47,529 | 64,099 | 86,862 | 64,330 | 8,134 |
Changes in assets and liabilities | |||||
Securities (assets and liabilities) | (23,926,297) | (11,018,501) | (20,188,931) | (2,929,021) | (958,894) |
Derivative financial instruments (assets and liabilities) | 314,825 | 390,880 | 825,719 | (492,024) | (209,030) |
Securities trading and intermediation (assets and liabilities) | 5,066,641 | 1,986,946 | 4,201,246 | 1,969,621 | 1,036,957 |
Securities purchased (sold) under resale (repurchase) agreements | 10,861,923 | 6,094,987 | (2,919,480) | (5,635,630) | 262,377 |
Accounts receivable | 178,152 | (34,217) | (243,893) | (92,809) | (70,589) |
Loan operations | (1,375,823) | ||||
Prepaid expenses | (1,001,314) | (142) | 7,040 | (31,380) | (19,565) |
Other assets and other financial assets | (216,882) | 20,583 | (14,548) | (58,964) | (7,917) |
Securities sold under repurchase agreements | 8,997,713 | 6,126,676 | (258,118) | ||
Structured operations certificates | 1,122,983 | ||||
Accounts payable | 387,120 | 72,928 | 132,235 | 63,000 | 3,163 |
Deposits | 1,556,514 | ||||
Social and statutory obligations | (113,027) | 23,878 | 241,033 | 81,253 | 62,274 |
Tax and social security obligations | (262,915) | 6,930 | (9,223) | 4,463 | (2,459) |
Private pension liabilities | 5,890,232 | 1,705,647 | 3,743,031 | 16,059 | |
Other liabilities and other financial liabilities | 341,273 | 5,628 | 98,497 | 14,524 | (8,901) |
Cash from operations | 917,448 | 391,279 | (3,379,819) | (196,186) | 488,982 |
Income tax paid | (48,097) | (355,410) | (402,574) | (202,443) | (219,446) |
Contingencies paid | (592) | (1,062) | (3,172) | (3,933) | (7,169) |
Interest paid | (62,015) | (16,386) | (28,427) | (54,185) | |
Net cash flows from operating activities | 806,744 | 18,421 | (3,813,992) | (456,747) | 262,367 |
Investment activities | |||||
Acquisition of intangible assets | (79,127) | (39,974) | (88,949) | (53,517) | (20,627) |
Acquisition of property and equipment | (40,011) | (43,749) | (72,499) | (83,149) | (30,369) |
Acquisition of subsidiaries, net of cash acquired | (55,741) | (10,413) | (404,631) | ||
Investment in associates and joint ventures | (204,960) | ||||
Net cash flows used in investing activities | (379,839) | (83,723) | (161,448) | (147,079) | (455,627) |
Financing activities | |||||
Proceeds from borrowings | 325,370 | 826,000 | |||
Payments of borrowings and lease liabilities | (130,798) | (101,047) | (123,332) | (689,634) | |
Proceeds from issuance of debentures | 400,000 | 400,000 | 400,000 | ||
Payments of debentures | (400,000) | (11,815) | |||
Repurchase of debentures | (64,717) | ||||
Dividends paid to owners of the parent | (500,000) | (325,000) | (189,998) | ||
Proceeds from capital contributions, net | 4,482,002 | 673,294 | |||
Net subscriptions received (redemptions paid)—non-controlling interests | (45,550) | ||||
Transactions with non-controlling interests | 831 | (1,229) | (1,855) | 146 | (2,078) |
Dividends paid to non-controlling interests | (6,136) | (9,193) | (11,143) | (4,090) | (3,858) |
Net cash flows from (used in) financing activities | (600,820) | 288,531 | 4,233,857 | 380,086 | 584,516 |
Net increase (decrease) in cash and cash equivalents | (173,915) | 223,230 | 258,417 | (223,740) | 391,255 |
Cash and cash equivalents at the beginning of the fiscal year | 887,796 | 626,863 | 626,863 | 835,493 | 440,128 |
Effects of exchange rate changes on cash and cash equivalents | 33,814 | (4,116) | 2,516 | 15,110 | 4,110 |
Cash and cash equivalents at the end of the fiscal year | 747,695 | 845,977 | 887,796 | 626,863 | 835,493 |
Cash | 642,491 | 70,483 | 109,922 | 68,407 | 153,218 |
Securities purchased under agreements to resell | 0 | 684,964 | 654,057 | 488,809 | 420,958 |
Interbank certificate deposits | R$ 105204 | R$ 90530 | R$ 123817 | R$ 69647 | R$ 261317 |
Operations
Operations | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure Of Operations [Abstract] | ||
Operations | 1. Operations XP Inc. (the “Company”) is a Cayman Island exempted company with limited liability, incorporated on August 29, 2019. The registered office of the Company is Ugland House, 121 South Church Street in George Town, Grand Cayman. The Company’s principal executive office is located in the city of São Paulo, Brazil. XP Inc. is a holding company controlled by XP Controle Participações S.A., which holds 53.38% of voting rights and whose is ultimately controlled by a group of individuals. XP Inc. and its subsidiaries (collectively, the “Company”, “Group” or “XP Group”) is a leading, technology-driven financial services platform and a trusted provider of low-fee financial On November 29, 2019, the Group carried out a corporate reorganization in order to prepare the structure to the Initial Public Offering of its shares. As result, the capital contributed by the shareholders on XP Investimentos S.A. were transferred and incorporated on XP Inc. Therefore the shareholders have a direct stake on XP Inc. which controls XP Investimentos S.A. and the other operating companies of the Group. On November 30, 2019, the Company carried out a reverse share split of 4:1. As a result, the share capital represented by 2,036,988,542 shares decreased to 509,247,136 shares. The reverse share split has been applied retrospectively to all figures in the historical financial statements regarding number of shares (Note 27) and per share data as if the reverse share split had been in effect for all periods presented. 1.1 Initial Public Offering (“IPO”) and resulting transactions On December 13, 2019, the Company completed its Initial Public Offering (“IPO”), offering 72,510,641 of Class A common shares, of which 42,553,192 new shares were offered by the Company and the remaining 29,957,449 shares were offered by selling shareholders. Additionally, the underwriters executed an option to purchase 10,876,596 additional Class A common shares at the initial public offering price which resulted in a total of 83,387,237 Class A common shares sold. The initial offering price per Class A common share was US$ 27.00, resulting in gross proceeds of US$1,148,936 thousand (or R$4,705,803) to XP Inc, deducting R$200,977 thousand as underwriting discounts and commissions. Additionally, the Company incurred in R$44,726 thousand regarding other offering expenses, of which R$21,902 thousand was recognized directly in income statements and an amount of R$22,824 in equity as transaction costs. The shares offered and sold in the IPO were registered under the Securities Act of 1933, as amended, pursuant to the Company’s Registration Statement on Form F-1 333-234719), (“NASDAQ-GS”) 1.2 Follow-on On July 1, 2020, XP Inc. concluded an underwritten public offering of 22,465,733 Class A common shares offered by General Atlantic (XP) Bermuda, L.P. and XP Controle Participações S.A. (“selling shareholders”) at a public offering price of US$42.50 per share, including the full exercise of the underwriters’ option to purchase an additional 2,930,313 Class A common shares from the selling shareholders. The Company did not receive any proceeds from the sale of Class A common shares by the selling shareholders and there were no changes in the Company’s control structure as a result of such transaction. These unaudited interim condensed consolidated financial statements as of September 30, 2020 and for the three and nine month periods ended September 30, 2020 were approved by the Board of Director’s meeting on November 6, 2020. | 1. Operations XP Inc. (the “Company”), is a Cayman Island exempted company with limited liability, incorporated on August 29, 2019. The registered office of the Company is Ugland House, 121 South Church Street in George Town, Grand Cayman. The Company’s principal executive office is located in the city of São Paulo, Brazil. XP Inc. is a holding company controlled by XP Controle Participações S.A., which holds 64.61% of Class B common shares and whose is ultimately controlled by a group of individuals. XP Inc. and its subsidiaries (collectively, the “Company”, “Group” or “XP Group”) are principally engaged in providing its customers, represented by individuals and legal entities in Brazil and abroad, various financial products and services, mainly acting as broker-dealer, including securities brokerage, banking, private pension plans and financial advisory services, through three retail brands (XP Investimentos, Rico and Clear) that reach clients directly and through network of Independent Financial Advisers (“IFAs”). On May 11, 2017, the Company’s shareholders entered into a share purchase agreement with Itaú Unibanco S.A. (“Itaú Unibanco”) for the sale of non-controlling On August 10, 2017, the Group concluded the acquisition of the operations of Rico Corretora de Títulos e Valores Mobiliários S.A. (“Rico”), by acquiring whole control of its holding entity FLAFLU Participações S.A. (“FLAFLU”). Rico also operates in brokerage and securities distribution market to retail. See Note 5 for more information on the acquisition. On November 29, 2019, the Group carried out a corporate reorganization in order to prepare the structure to the Initial Public Offering of its shares. As result, the capital contributed by the shareholders on XP Investimentos S.A. were transferred and incorporated on XP Inc. Therefore the shareholders have a direct stake on XP Inc. which controls XP Investimentos S.A. and the other operating companies of the Group. On November 30, 2019, the Company carried out a reverse share split of 4:1. As a result, the share capital represented by 2,036,988,542 shares decreased to 509,247,136 shares. The reverse share split has been applied retrospectively to all figures in the historical financial statements regarding number of shares (Note 32) and per share data as if the reverse share split had been in effect for all periods presented. 1.1 Initial Public Offering and resulting transactions On December 13, 2019, the Company completed its Initial Public Offering (“IPO”), offering 72,510,641 of Class A common shares out, of which 42,553,192 new shares were offered by the Company and the remaining 29,957,449 shares were offered by selling shareholders. Additionally the underwrites executed an option to purchase 10,876,596 additional Class A common shares at the initial public offering price which resulted in a total of 83,387,237 Class A common shares sold. The initial offering price per Class A common share was US$ 27.00, resulting in gross proceeds of US$ 1,148,936 thousand (or R$4,705,803) to XP Inc, deducting R$200,977 thousand as underwriting discounts and commissions. Additionally, the Company incurred in R$44,726 thousand regarding other offering expenses out of, which R$21,902 thousand was recognized directly in income statement and the amount of R$22,824 in equity as transaction cost. The shares offered and sold in the IPO were registered under the Securities Act of 1933, as amended, pursuant to the Company’s Registration Statement on Form F-1 333-234719), (“NASDAQ-GS”) These consolidated financial statements were approved by the Board of Director’s meeting on April 27, 2020. |
Basis of preparation of the fin
Basis of preparation of the financial statements | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2019 | |
Disclosure of basis of preparation of financial statements [Abstract] | ||
Basis of preparation of the financial statements | 2. Basis of preparation of the financial statements and changes to the Group’s accounting policies a) Basis of preparation of the unaudited interim condensed consolidated financial statements The unaudited interim condensed consolidated financial statements as of September 30, 2020 and for the three and nine months period ended September, 2020 and 2019 have been prepared in accordance with IAS 34 Interim Financial Reporting The unaudited interim condensed consolidated financial statements have been prepared on a historical cost basis, except for financial instruments that have been measured at fair value. The unaudited interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group’s annual consolidated financial statements as of December 31, 2019. The list of notes that were not apresented in this unaudited interim condensed is presented below: Note to financial statements of December 31, 2019 Description 3. Summary of significant accounting policies 4. Significant estimated and judgements 5. Group structure 10. Accounts receivable 11. Recoverable taxes 19. Social and Statutory obligations 20. Tax and social security obligations 24. (a) Key-person 33. (b) to (f) Management of financial risks and financial instruments The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, except for the new accounting policies adopted for the current interim reporting period, see Note 2 (c). The unaudited interim condensed consolidated financial statements are presented in Brazilian reais (“R$”), which is the Group’s presentation currency and all amounts disclosed in the financial statements and notes have been rounded off to the nearest thousand currency units unless otherwise stated. b) New standards, interpretations and amendments not yet adopted The accounting policies adopted in the preparation of the unaudited interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group’s consolidated financial statements for the year ended December 31, 2019. Certain new accounting standards and interpretations have been published ,which include Amendments to IFRS 3: Definition of a Business; Amendments to IFRS 7, IFRS 9 and IAS 39: Interest Rate Benchmark Reform; and Amendments to IAS 1 and IAS 8: Definition of Material; and Conceptual Framework for Financial Reporting issued on March 29, 2018, that are not mandatory for the period ended September 30, 2020, and have not been early adopted by the group. These standards are not expected to have a material impact on the entity in the current or future financial statements periods and on foreseeable future transactions. c) New accounting policies adopted by the Group Derivative financial instruments and hedging activities In compliance with IFRS 9, as of September 30, 2020, the Group designated certain derivatives as fair value hedges for protection of the exposure of Fixed-Income carried out through structured operations certificates. The following accounting policy is adopted for theses fair value hedges: For the derivative financial instruments that are designated and qualify as fair value hedges, the following policies apply: a) the gain or loss resulting from the fair value appreciation or depreciation of the hedging instrument at fair value should be recorded in profit or loss; and b) the gain or loss resulting from fair value appreciation or depreciation of the hedged item, that is attributable to the effective portion of the hedged item should adjust the carrying amount of the hedged item, which will be recorded in profit or loss. If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used is amortized to profit or loss over the remaining period until maturity, using a recalculated effective interest rate. d) Basis of consolidation There were no changes since December 31, 2019 in the accounting practices adopted for consolidation of the Company’s direct and indirect interests in its subsidiaries for the purposes of these unaudited interim condensed consolidated financial statements, except for the following items: % of Group’s interest (i) Entity name Country of Principal activities September 30, December 31, Indirectly controlled XP Allocation Asset Management Ltda. (ii) Brazil Asset management 99.97 % — Track Índices Consultoria Ltda. (ii) Brazil Index Provider 100.00 % — XP Eventos Ltda. (ii) Brazil Media and Events 99.00 % — Carteira Online Controle de Investimentos Ltda.-ME Brazil Investment 99.99 % — Antecipa S.A. (iii) Brazil Receivables 100.00 % — Consolidated investments funds NIMROD Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior (ii) Brazil Investment fund 100.00 % — XP High Yield Fund SP (ii) Cayman Investment fund 100.00 % — XP International Fund SPC (ii) Cayman Investment fund 100.00 % — Spatha Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior (iv) Brazil Investment fund — 100.00% Balista Debentures Incentivadas Fundo de Investimento Multimercado Crédito Privado (iv) Brazil Investment fund — 100.00% (i) The percentage of participation represents the Group’s interest in total capital and voting capital of its subsidiaries. (ii) New subsidiaries and investment funds commenced operations in the period. (iii) New subsidiaries acquired in the period. (iv) Investiments funds closed during the period. e) Interests in associates and joint ventures i. Associates Associates are companies in which the investor has a significant influence but does not hold control. Investments in these companies are initially recognized at cost of acquisition and subsequently accounted for using the equity method. Investments in associates and joint ventures include the goodwill identified upon acquisition, net of any cumulative impairment loss. ii. Joint ventures The Group has joint venture whereby the parties that have joint control of the arrangement have rights to the net assets. iii. Equity method Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to recognise the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint ventures are recognised as a reduction in the carrying amount of the investment. Unrealised gains on transactions between the Group and its associates and joint ventures are eliminated to the extent of the Group’s interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity-accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Group. If its interest in the associates and joint ventures decreases, but the Group retains significant influence or joint control, only the proportional amount of the previously recognized amounts in Other comprehensive income is reclassified in Income, when appropriate. f) Business acquisitions The acquisitions of Fliper and Antecipa were recently completed and the allocation of the purchase price to acquired assets, including goodwill, and assumed liabilities is still preliminary pending receipt of the final fair value valuations of the acquired assets and assumed liabilities as of the closing date of the transaction. For the concluded acquisitions, the total consideration paid is R$83,925, being: i) R$55,741 paid in cash, ii) R$14,000 payable in three consecutives annual installments from 2020 to 2022 adjusted by the Interbank Certificates of Deposit (“CDI”) rate and iii) R$14,183 as a fair value of the contingent consideration. These acquisitions are not considered material for XP Inc. interim financial statements.The preliminary purchase prices were mostly allocated to goodwill, representing the value of expected synergies arising from the acquisition. Carteira Online Controle de Investimentos Ltda.-ME On June 5, 2020, the Group entered into an agreement, to acquire 100% of total share capital Fliper, an automated investment consolidation platform that offers its users connectivity and tools to perform intuitive and intelligent financial self-management. The transaction allows XP Inc. to offer its customers additional resources to manage their investments, as the open banking trend continues to accelerate in Brazil. On July 13, 2020, the acquisition was concluded, through approval of Central Bank (BACEN). Antecipa S.A. (“Antecipa”) On June 29, 2020, the Group entered into an agreement, through its for the acquisition of 100% of total share capital of Antecipa , a digital platform for the financing of receivables.Antecipa’s central objective is to offer an efficient alternative for companies to optimize cash flow management. For the Group, the acquisition represents an opportunity to further expand its product range and reinforce the company’s presence in the Small to Medium Enterprise (SME) and corporate segments in Brazil, similar to XP’s transformational initiatives across the Retail, High-Income and Private Market channels. On September 1, 2020, acquisition was consummated, through approval of Central Bank (BACEN). DM10 Corretora de Seguros e Assessoria Ltda. (“DM10”) On June 9, 2020, the Group entered into an agreement to acquire of 100% of total share capital of DM10, a marketplace that connects hundreds of independent distributors with Life Insurance and Pension Plan products, adding value through technology and education. With the transaction, the Group enhances its distribution network in the insurance division. This transaction is expected to close in the fourth quarter of 2020. g) Segment reporting In reviewing the operational performance of the Group and allocating resources, the chief operating decision maker of the Group (“CODM”), who is the Group’s Chief Executive Officer (“CEO”) and the Board of Directors (“BoD”), represented by statutory directors holders of ordinary shares of the immediate parent of the Company, reviews selected items of the statement of income and of comprehensive income. The CODM considers the whole Group as a single operating and reportable segment, monitoring operations, making decisions on fund allocation and evaluating performance based on a single operating segment. The CODM reviews relevant financial data on a combined basis for all subsidiaries and joint ventures. Disaggregated information is only reviewed at the revenue level (Note 22), with no corresponding detail at any margin or profitability levels. The Group’s revenue, results and assets for this one reportable segment can be determined by reference to the unaudited interim condensed consolidated statements of income and of comprehensive income and unaudited interim condensed consolidated balance sheet. See Note 22 (c) for a breakdown of total revenue and income and selected assets by geographic location h) Impacts related COVID-19 Starting from January 2020, it was reported that a novel strain of coronavirus, later named COVID-19, Although the Group have not identified relevant impacts to its financial performance as at September 30, 2020, the Group is monitoring COVID-19 As a consequence of this pandemic, most of the Group’s employees is working from home. Based on thorough assessments about the well-being and performance of our workforce, management announced on September 11, 2020, the permanent and company-wide adoption of the home-office model. i) Estimates The preparation of unaudited interim condensed consolidated financial statements of the Group requires management to make judgments and estimates and to adopt assumptions that affect the amounts presented referring to revenues, expenses, assets and liabilities at the reporting date. Actual results may differ from these estimates. In preparing these unaudited interim condensed consolidated financial statements, the significant judgements and estimates made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that are set the consolidated financial statements for the year ended December 31, 2019. | 2. Basis of preparation of the financial statements (i) Basis of preparation The consolidated financial statements of the Group have been prepared in accordance with the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements have been prepared on a historical cost basis, except for financial instruments that have been measured at fair value. The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in Note 4. The consolidated financial statements are presented in Brazilian reais (“R$”), and all amounts disclosed in the financial statements and notes have been rounded off to the nearest thousand currency units unless otherwise stated. As mentioned in the Note 1, the Group carried out a corporate reorganization in order to prepare the structure for the Initial Public Offering of its shares. As result, XP Inc. was incorporated in 2019 and is currently the entity which is registered with the Securities Exchange Commission and for which these financial statements are presented. The comparative historical figures presented in these financial statements are the ones of the predecessor entity, XP Investimentos S.A. The balance sheet is presented in order of liquidity of assets and liabilities. The timing of their realization or settlement is dependent not just on their liquidity, but also on management’s judgements on expected movements in market prices and other relevant aspects. (ii) New and amended standards adopted by the Group The Group applies, for the first time on January 1, 2019, IFRS 16 Leases Uncertainty over Income Tax Treatment Other amendments and interpretations apply for the first time in 2019, but do not have an impact on the annual consolidated financial statements of the Group. Certain new accounting standards and interpretations have been published that are not mandatory for 2019 reporting periods and have not been early adopted by the Group. These standards are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. (iii) Basis of consolidation The consolidated financial statements comprise the financial statements of the Company as of December 31, 2019 and 2018 and for each of the years ended December 31, 2019, 2018 and 2017. Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The acquisition method of accounting is used to account for business combinations by the Group (refer to Note 5. Intercompany transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Non-controlling (iv) Segment reporting In reviewing the operational performance of the Group and allocating resources, the chief operating decision maker of the Group (“CODM”), who is the Group’s Chief Executive Officer (“CEO”) and the Board of Directors (“BoD”), represented by statutory directors holders of ordinary shares of the immediate parent of the Company, reviews selected items of the statement of income and of comprehensive income. The CODM considers the whole Group as a single operating and reportable segment, monitoring operations, making decisions on fund allocation and evaluating performance based on a single operating segment. The CODM reviews relevant financial data on a combined basis for all subsidiaries. Disaggregated information is only reviewed at the revenue level (Note 26), with no corresponding detail at any margin or profitability levels. The Group’s revenue, results and assets for this one reportable segment can be determined by reference to the consolidated statement of income and of comprehensive income and consolidated balance sheet. See Note 26 (c) for a breakdown of revenues and income and selected assets from external customers by country of domicile. (v) Foreign currency translation (i) Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in Brazilian Reais (“R$”), which is the Group functional and presentation currency. The functional currency for all the Company’s subsidiaries in Brazil is also the Brazilian reais. Certain subsidiaries outside of Brazil have different functional currencies, including US Dollar (“USD”), Euro (“EUR”), Pound sterling (“GBP”) and Swiss Franc (“CHF”). (ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized in profit or loss. They are deferred in equity if they relate to qualifying cash flow hedges and qualifying net investment hedges or are attributable to part of the net investment in a foreign operation. Foreign exchange gains and losses that relate to borrowings are presented in the statement of income and other comprehensive income, within finance costs. All other foreign exchange gains and losses are presented in the statement of profit or loss on a net basis within interest expense on debt. Non-monetary non-monetary non-monetary (iii) Group companies The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: • assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet; • income and expenses for each statement of profit or loss and statement of comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and • all resulting exchange differences are recognized in other comprehensive income. On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of borrowings and other financial instruments designated as hedges of such investments, are recognized in other comprehensive income. When a foreign operation is sold or any borrowings forming part of the net investment are repaid, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of significant accounting policies [Abstract] | |
Summary of significant accounting policies | 3. Summary of significant accounting policies This note provides a description of the significant accounting policies adopted in the preparation of these consolidated financial statements in addition to other policies that have been disclosed in other notes to these consolidated financial statements. These policies have been consistently applied to all periods presented, unless otherwise stated. (i) Business combinations The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the: • fair values of the assets transferred; • liabilities incurred to the former owners of the acquired business; • equity interests issued by the Group; • fair value of any asset or liability resulting from a contingent consideration arrangement; and • fair value of any pre-existing Identifiable assets acquired, and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling acquisition-by-acquisition non-controlling Acquisition-related costs are expensed as incurred. The excess of the consideration transferred, amount of any non-controlling Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions. Contingent consideration, when applicable, is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognized in profit or loss. If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognized in profit or loss. (ii) Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. 1) Financial assets Initial recognition and measurement On initial recognition, financial assets are classified as instruments measured at amortized cost, fair value through other comprehensive income (“FVOCI”) and fair value through profit and loss (“FVPL”). The classification of financial assets at initial recognition is based on either (i) the Company’s business model for managing the financial assets and (ii) the instruments’ contractual cash flows characteristics. For a financial asset to be classified and measured at amortized cost or FVOCI, it needs to give rise to cash flows that are ‘Solely Payments of Principal and Interest’ (the “SPPI” criterion) on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model considers whether the Company’s objective is to receive cash flows from holding the financial assets, from selling the assets or a combination of both. Purchases or sales of financial assets that require delivery of assets within a time frame set by regulation or market practice (regular way trades) are recognized on the trade date, i.e., the date that the Group commits to purchase or sell the asset. Classification and subsequent measurement (i) Financial assets at FVPL Financial assets at FVPL include Securities, financial assets designated upon initial recognition at FVPL, or financial assets mandatorily required to be measured at fair value. This category includes securities and Derivative financial instruments, including equity instruments which the Group had not irrevocably elected to classify at FVOCI. Financial assets are classified as fair value through profit and loss if they either fail the contractual cash flow test or in the Group’s business model are acquired for the purpose of selling or repurchasing in the near term. Financial assets may be designated at FVPL on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch. Derivative financial instruments, including separated embedded derivatives, are also classified as Securities unless they are designated as effective hedging instruments. Financial assets with cash flows that do not meet the SPPI criteria are classified and measured at FVPL, irrespective of the business model. Financial assets at FVPL are carried in the statement of financial position at fair value with net changes in fair value recognized in the statement of income. The net gain or loss recognized in the statement of income includes any dividend or interest earned on the financial asset. Financial assets measured at FVTPL consist of Securities owned and sold short. A derivative embedded in a hybrid contract, with a financial liability or non-financial A derivative embedded within a hybrid contract containing a financial asset host is not accounted for separately. The financial asset host together with the embedded derivative is required to be classified in its entirety as a financial asset at fair value through profit or loss. (ii) Financial assets at FVOCI The Group measures financial assets at FVOCI if both of the following conditions are met: • The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and to sell. • The contractual terms of the financial asset give rise on specified dates to cash flows that meet the SPPI criteria. For financial assets at FVOCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognized in the statement of income and similarly to financial assets measured at amortized cost. The remaining fair value changes are recognized in OCI. Upon derecognition, the cumulative fair value change recognized in OCI is recycled to profit or loss. The Group’s financial assets at FVOCI includes certain debt instruments. Upon initial recognition, the Group can elect to classify irrevocably equity investments at FVOCI when they meet the definition of equity under IAS 32—“Financial Instruments: Presentation” and are not financial assets at FVPL. The classification is determined on an instrument-by-instrument Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognized as income in the statement of income when the right of payment has been established, except when the Group benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at FVOCI are not subject to impairment assessment. The Group has no equity instruments that have been irrevocably classified under this category. (iii) Financial assets at amortized cost A financial asset is measured at amortized cost if both of the following conditions are met: • The financial asset is held within a business model with the objective to hold the financial asset in order to collect contractual cash flows. • The contractual terms of the financial asset give rise on specified dates to cash flows that meet the SPPI criteria. Financial assets at amortized cost are subsequently measured using the Effective Interest Rate (“EIR”) method and are subject to impairment. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired. The Group’s financial assets at amortized cost mainly includes ‘Securities’, ‘Securities purchased under agreements to resell’, ‘Securities trading and intermediation’, ‘Accounts receivable’ and ‘Other financial assets. The Company reclassifies financial assets only when its business approach for managing those assets changes. Derecognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e., removed from the Group’s consolidated statement of financial position) when: • The contractual rights to receive cash flows from the asset have expired. • The Group has transferred its contractual rights to receive cash flows from the asset or has assumed a contractual obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset; or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Group has transferred its contractual rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all the risks and rewards of the asset, nor transferred control of the asset, the Group continues to recognize the transferred asset to the extent of its continuing involvement. In that case, the Group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay. Impairment of financial assets The Group recognizes an allowance for expected credit losses (“ECLs”) for all debt instruments not held at FVPL. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months 12-month For accounts receivables and other contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. For debt instruments at FVOCI, the Group applies the low credit risk simplification. At every reporting date, the Group evaluates whether the debt instrument is considered to have low credit risk using all reasonable and supportable information that is available without undue cost or effort. In making that evaluation, the Group reassesses the internal credit rating of the debt instrument. In addition, the Group considers that there has been a significant increase in credit risk when contractual payments are more than 30 days past due. The Group considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before considering any credit enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. 2) Financial liabilities Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at FVPL, amortized cost or as Derivative financial instruments designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of amortized cost, net of directly attributable transaction costs. The Group’s financial liabilities include ‘Securities Loaned’, ‘Derivative financial instruments’, ‘Securities purchased under agreements to resell’, ‘Securities trading and intermediation’, long-term debts such as ‘Borrowings and lease liabilities’ and ‘Debentures’, ‘Accounts payables’ and ‘Other financial liabilities’. Classification and subsequent measurement (i) Financial liabilities at FVPL Financial liabilities at FVPL include securities loaned and derivatives financial instruments designated upon initial recognition as at FVPL. Financial liabilities are classified as securities loaned if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered by the Group that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded derivatives are also classified as fair value through PL unless they are designated as effective hedging instruments. Gains or losses on liabilities at fair value through PL are recognized in the statement of income. Financial liabilities designated upon initial recognition at FVPL are designated at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied. Securities loaned, and derivative financial instruments are classified as fair value through PL and recognized at fair value. (ii) Amortized cost After initial recognition, these financial liabilities are subsequently measured at amortized cost using the Effective Interest Method (“EIR”) method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of income. This category generally applies to Securities sold under repurchase agreements, Securities trading and intermediation, ‘Borrowings and Lease Liabilities’, ‘Debentures’, ‘Accounts payables’ and ‘Other financial liabilities’. Derecognition A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of income. 3) Fair value of financial instruments The fair value of financial instruments actively traded in organized financial markets is determined based on purchase prices quoted in the market at the close of business at the reporting date, without deducting transaction costs. The fair value of financial instruments for which there is no active market is determined by using measurement techniques. These techniques may include the use of recent market transactions (on an arm’s length basis); reference to the current fair value of another similar instrument; analysis of discounted cash flows or other measurement models. See Note 32. 4) Derivative financial instruments and hedging activities Derivative financial instruments are financial contracts, the value of which is derived from the value of the underlying assets, interest rates, indexes or currency exchange rates. The Company uses derivative financial instruments to manage foreign exchange risk on pending security settlements in foreign currencies. The fair value of these contracts is nominal due to their short term to maturity. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, in the case of adoption of hedge accounting and, if so, the nature of the item being hedged. The Group adopts only net investment hedge to hedge a net investment in a foreign operation. In the case of the Derivative was not designated as a hedging instrument the initial recognition is at fair value on the date on which a derivative contract is entered and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Realized and unrealized gains and losses related to these contracts are recognized in the consolidated statements of income during the reporting period. The Company trades in futures contracts, which are agreements to buy or sell standardized amounts of a financial instrument at a predetermined future date and price, in accordance with terms specified by a regulated futures exchange, and subject to daily cash margining. The Company trades in futures in an attempt to mitigate interest rate risk, yield curve risk and liquidity risk. The Company also trades in forward contracts, which are non-standardized a) Net investment hedge Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognized in other comprehensive income within gains (losses) on net investment hedge. The gain or loss relating to the ineffective portion is recognized immediately in the statement of income within net income from financial instruments at fair value through profit or loss. Gains and losses accumulated in equity are included in the statement of income when the foreign operation is partially or fully disposed of or sold. b) Hedge ineffectiveness Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. To evaluate the effectiveness and to measure the ineffectiveness of such strategies, The Group uses the Dollar Offset Method. The Dollar Offset Method is a quantitative method that consists of comparing the change in fair value or cash flows of the hedging instrument with the change in fair value or cash flows of the hedged item attributable to the hedged risk. (iii) Cash and cash equivalents Cash is not subject to a significant risk of change in value and are held for the purpose of meeting short-term cash commitments and not for investments or other purposes. Transactions are considered short-term when they have maturities in three months or less from the date of acquisition. For purposes of consolidated statement of cash flows, cash equivalents refer to collateral held securities purchased under agreements to resell and bank deposit certificates measured at fair value through profit and loss that are readily convertible into a known cash amount and for which are no subject to a significant risk of change in value. (iv) Securities purchased under agreements to resell and obligations related to securities sold under repurchase agreements The Group has purchased securities with resale agreement (resale agreements) and sold securities with repurchase agreement (repurchase agreement) of financial assets. Resale and repurchase agreements are accounted for under Securities purchased under agreements to resell and Securities sold under repurchase agreements, respectively. The difference between the sale and repurchase prices is treated as interest and recognized over the life of the agreements using the effective interest rate method. The financial assets accepted as collateral in our resale agreements can be used by us, if provided for in the agreements, as collateral for our repurchase agreements or can be sold. (v) Securities trading and intermediation (receivable and payable) Refers to transactions at B3 S.A.—Brasil, Bolsa, Balcão (“B3”) on behalf of and on account of third parties. Brokerages on these transactions are classified as revenues and service provision expenses are recognized at the time of the transactions. These balances are offset and the net amount shown in the balance sheet when, and only when, there is a legal and enforceable right to offset and the intention to liquidate them on a net basis, or to realize the assets and settle the liabilities simultaneously. Amounts due from and to customers represent receivables for securities sold and payables for securities purchased that have been contracted for but not yet settled or delivered on the balance sheet date respectively. The due from customers balance is held for collection. These amounts are subdivided into the following items: • Cash and settlement records—Represented by the registration of transactions carried out on the stock exchanges on its own behalf and for customers; and • Debtors/Creditors pending settlement account—debtor or creditor balances of customers, in connection with transactions with fixed income securities, shares, commodities and financial assets, pending settlement as of the statement of reporting date. Sales transactions are offset and in the event the final amount is a credit, it will be recorded in liabilities, on the other hand if this amount is debt, it will be recorded in assets, provided that the offset balances refer to the same counterparty. These amounts are recognized initially at fair value and subsequently measured at amortized cost. At each reporting date, the Group shall measure the loss allowance on amounts due from customer at an amount equal to the lifetime expected credit losses if the credit risk has increased significantly since initial recognition. If, at the reporting date, the credit risk has not increased significantly since initial recognition, the Group shall measure the loss allowance at an amount equal to 12-month Any contractual payment which is more than 90 days past due is considered credit impaired. The estimated credit losses for brokerage clients and related activity was immaterial for all periods presented. (vi) Prepaid expenses Prepaid expenses are recognized as an asset in the balance sheet. These expenditures include incentives to IFAs, prepaid software licenses, certain professional services and insurance premiums. (vii) Leases As of January 1, 2019 the Group has adopted IFRS 16, replacing IAS 17, which was applicable until December 31, 2018. Both accounting practices are explained below. IAS 17—Leases Leases in which a significant portion of the risks and rewards of ownership were not transferred to the Group as lessee were classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) were charged to profit or loss on a straight-line basis over the period of the lease. Lease income from operating leases where the Group is a lessor is recognized in income on a straight-line basis over the lease term. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the underlying asset and recognized as expense over the lease term on the same basis as lease income. The respective leased assets are included in the balance sheet based on their nature. The Group did not need to make any adjustments to the accounting for assets held as lessor as a result of adopting the new leasing standard. IFRS 16 Leases Effective from January 1, 2019, IFRS 16 was issued in January 2016 and supersedes IAS 17 Leases Determining whether an Arrangement contains a Lease SIC-15 Operating Leases-Incentives SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease The Group has adopted IFRS 16 from January 1, 2019 using the modified retrospective method of adoption, under which the standard is applied retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application and not restated comparatives for the 2018 and 2017 reporting period. The reclassifications and the adjustments arising from the new leasing rules are therefore recognized in the opening balance sheet on January 1, 2019. Practical expedients and exemptions applied In applying IFRS 16 for the first time, the Group has used the following permitted practical expedients: • applying only to contracts that were previously identified as leases applying IAS 17 and IFRIC 4 at the date of initial application; • applying a single discount rate to a portfolio of leases with reasonably similar characteristics; • relying on previous assessments on whether leases are onerous as an alternative to performing an impairment review – there were no onerous contracts as of January 1, 2019; • exempting leases contracts with a remaining lease term of less than 12 months as of January 1, 2019 and not containing a purchase option (short-term leases); • exempting lease contracts for which the underlying asset is of low value (low-value • excluding initial direct costs for the measurement of the right-of-use • using hindsight in determining the lease term where the contract contains options to extend or terminate the lease. i) Measurement of lease liabilities and right-of-use The Group leases its main offices and certain equipments under non-cancelable On adoption of IFRS 16, the Group recognized lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of IAS 17 These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of January 1, 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on January 1, 2019 was 9.0%. Operating lease commitments disclosed as of December 31, 2018 209,318 Discounted using the incremental borrowing rate of at the date of initial application (60,099 ) (Less): short-term leases recognized on a straight-line basis as expense (725 ) Lease liability recognized as of January 1, 2019 148,494 The associated right-of-use Lease liability recognized as of January 1, 2019 148,494 (Less): accrued lease payments as of December 31, 2018 (14,624 ) Total right-of-use 133,870 Represented by: Properties 123,262 Equipments 10,608 As a result of initial adoption, there is no impact to retained earnings in equity on January 1, 2019. Right-of-use “Right-of-use ii) Summary of new accounting policies Set out below are the new accounting policies of the Group upon adoption of IFRS 16, which have been applied from the date of initial application: Right-of-use The Group recognizes right-of-use Right-of-use The cost of right-of-use right-of-use Right-of Lease liabilities At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance Short-term leases and leases of low-value The Group applies the short-term lease recognition exemption to its short-term leases of properties (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value low-value Significant judgement in determining the lease term of contracts with renewal options The Group determines the lease term as the non-cancellable The Group has the option, under some of its leases to lease the assets for additional terms. The Group applies judgement in evaluating whether it is reasonably certain to exercise the option to renew. That is, it considers all relevant factors that create an economic incentive for it to exercise the renewal. After the commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise (or not to exercise) the option to renew (e.g., a change in business strategy). (viii) Property and equipment All property and equipment are stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditures that are directly attributable to the acquisition of the items and, if applicable, net of tax credits. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item is material and can be measured reliably. All other repairs and maintenance expenditures are charged to profit or loss during the period in which they are incurred. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows: Annual Rate (%) Data Processing Systems 20 % Furniture and equipment 10 % Security systems 10 % Facilities 10 % Assets’ residual values, useful lives and methods of depreciation are reviewed at each reporting date and adjusted prospectively, if appropriate. An asset’s carrying amount is written down immediately to its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use, if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals or derecognition are determined by comparing the disposal proceeds (if any) with the carrying amount and are recognized in profit or loss. (ix) Intangible assets i) Goodwill Goodwill arises on the acquisition of subsidiaries and represents the excess of (i) the consideration transferred; (ii) the amount of any non-controlling non-controlling Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. ii) Software and development costs Certain direct development costs associated with internally developed software and software enhancements of the Group’s technology platform is capitalized. Capitalized costs, which occur post determination by management of technical feasibility, include external services and internal payroll costs. These costs are recorded as intangible assets when development is complete, and the asset is ready for use, and are amortized on a straight-line basis, generally over a period of five years. Research and pre-feasibility iii) Other intangible assets Separately acquired intangible assets are measured at cost on initial recognition. The cost of intangible assets acquired in a business combination corresponds to their fair value at the acquisition date. After initial recognition, intangible assets are stated at cost, less any accumulated amortization and accumulated impairment losses. Internally generated intangible assets other than (i) above, are not capitalized and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred. The useful life of intangible assets is assessed as finite or indefinite. As of December 31, 2019 and 2018, the Group does not hold indefinite life intangible assets, except for goodwill. Intangible assets with finite useful lives are amortized over their estimated useful lives and tested for impairment whenever there is an indication that their carrying amount may be not be recovered. The period and method of amortization for intangible assets with finite lives are reviewed at least at the end of each fiscal year or when there are indicators of impairment. Changes in estimated useful lives or expected consumption of future economic benefits embodied in the assets are considered to modify the amortization period or method, as appropriate, and treated as changes in accounting estimates. The amortization of intangible assets with definite |
Significant estimated and judge
Significant estimated and judgements | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of accounting judgements and estimates [Abstract] | |
Significant estimated and judgements | 4. Significant estimated and judgements The preparation of the financial statements according to accounting policies described in Note 3 requires Management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts for assets, liabilities, revenues and expenses. Actual results may differ from these estimates. In addition, this note also explains where there have been actual adjustments this year as a result of and error and of changes to previous estimates. Information about uncertainties on assumptions and estimates that have a significant risk of resulting in a material adjustment in the future fiscal year is included as follows: (i) Estimation fair value of certain financial assets The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Group uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. (ii) Impairment of financial assets The loss allowances for financial assets are based on assumptions about risk of default and expected loss rates. The Group uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Group’s past history and existing market conditions, as well as forward-looking estimates at the end of each reporting period. (iii) Recognition of deferred tax asset for carried-forward tax losses Deferred tax assets are recognized for all unused tax losses to the extent that sufficient taxable profit will likely be available to allow the use of such losses. Significant judgment from management is required to determine the amount of deferred tax assets that can be recognized, based on the likely timing and level of future taxable profits, together with future tax planning strategies. The Group has concluded that the deferred assets will be recoverable using the estimated future taxable income based on the approved business plans and budgets for the subsidiaries where a deferred tax asset has been recognized. The losses can be carried forward indefinitely and have no expiry date. (iv) Property and equipment and intangible assets useful lives Property and equipment and intangible assets include the use of estimates to determine the useful life for depreciation and amortization purposes. Useful life determination requires estimates in relation to the expected technological advances and alternative uses of assets. There is a significant element of judgment involved in making technological development assumptions, since the timing and nature of future technological advances are difficult to predict. As of December 31, 2019, the Group did not identify evidence that could indicate that useful lives described in Note 3 ((viii) and (ix)) should be revised. Therefore, the Group concluded that changes to the estimated useful live was not deemed necessary. (v) Impairment of non-financial The Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. Intangible assets with indefinite useful lives and goodwill are tested for impairment annually at the level of the CGU, as appropriate, and when circumstances indicate that the carrying value may be impaired. Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. Technological obsolescence, suspension of certain services and other changes in circumstances that demonstrate the need for recording a possible impairment are also regarded in estimates. (vi) Provision for contingent liabilities Provisions for the judicial and administrative proceedings are recorded when the risk of loss of administrative or judicial proceeding is considered probable and the amounts can be reliably measured, based on the nature, complexity and history of lawsuits and the opinion of legal counsel internal and external. Provisions are made when the risk of loss of judicial or administrative proceedings is assessed as probable and the amounts involved can be measured with sufficient accuracy, based on best available information. They are fully or partially reversed when the obligations cease to exist or are reduced. Given the uncertainties arising from the proceedings, it is not practicable to determine the timing of any outflow (cash disbursement). |
Group structure
Group structure | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of basis of consolidation explanatory [Abstract] | |
Group structure | 5. Group structure (i) Subsidiaries The following are the direct and indirect interests of Company in its subsidiaries for the purposes of these consolidated financial statements: % of Group’s interest (i) Entity name Country of Principal activities 2019 2018 2017 Directly controlled XP Investimentos S.A. Brazil Holding 100.00 % 100.00 % 100.00 % Indirectly controlled XP Investimentos Corretora de Câmbio, Títulos e Valores Mobiliários S.A. Brazil Broker-dealer 100.00 % 100.00 % 100.00 % XP Investments US, LLC USA Broker-dealer 100.00 % 100.00 % 100.00 % XP Investments UK LLP UK Inter-dealer broker 100.00 % 100.00 % 99.90 % Sartus Capital LTD UK Investment advisor 100.00 % 100.00 % 100.00 % XP Private (Europe) S.A. UK Investment advisor 100.00 % 100.00 % 100.00 % XP Vida e Previdência S.A. (v) Brazil Private pension and insurance 100.00 % 100.00 % — Banco XP S.A. (vi) Brazil Multipurpose bank 100.00 % — — Xperience Market Services LLC (vi) USA Non-operational 100.00 % — — Chamaleon Bravery Unipessoal LDA (vi) Portugal Investment Advisor (pending 100.00 % — — XP Holding Investimentos S.A. Brazil Financial Holding — — 100.00 % XP Controle 3 Participações S.A. Brazil Financial Holding 100.00 % 100.00 % 100.00 % XPE Infomoney Educação Assessoria Empresarial e Participações Ltda. Brazil Digital Content services 99.99 % 99.70 % 96.69 % Tecfinance Informática e Projetos de Sistemas Ltda. Brazil Rendering of IT services 99.76 % 99.73 % 99.73 % XP Corretora de Seguros Ltda. Brazil Insurance Broker 99.99 % 99.82 % 99.81 % XP Gestão de Recursos Ltda. Brazil Asset management 93.70 % 92.80 % 91.65 % XP Finanças Assessoria Financeira Ltda. Brazil Investment consulting service 99.99 % 99.99 % 99.95 % Infostocks Informações e Sistemas Ltda. Brazil Mediation of information 99.99 % 99.99 % 99.99 % XP Advisory Gestão Recursos Ltda. Brazil Asset management 99.57 % 99.52 % 99.52 % XDEX Intermediação Ltda. (iii) Brazil Intermediary and service agency — — 99.99 % XP Holding International LLC USA International financial holding 100.00 % 100.00 % 100.00 % XP Advisory US USA Investment advisor 100.00 % 100.00 % 100.00 % XP Holding UK Ltd UK International financial holding 100.00 % 100.00 % 100.00 % XP Vista Asset Management Ltda. (iv) Brazil Asset management 99.42 % 99.60 % — XP Controle 4 Participações S.A. (v) Brazil Insurance holding 100.00 % 100.00 % — Leadr Serviços Online Ltda. (vi) Brazil Social media 99.99 % — — Spiti Análise Ltda. (vi) Brazil Research (pending regulatory 99.99 % — — Consolidated investments funds Falx Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior Brazil Investment fund 100.00 % 100.00 % 100.00 % Gladius Fundo de Investimento Multimercado Investimento no Exterior Brazil Investment fund 100.00 % 100.00 % 100.00 % Scorpio Debentures Incentivadas Fundo de Investimento Multimercado Crédito Privado Brazil Investment fund 100.00 % 100.00 % 100.00 % Galea Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior Brazil Investment fund 100.00 % 100.00 % 100.00 % Javelin Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior Brazil Investment fund 100.00 % 100.00 % 100.00 % Spatha Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior Brazil Investment fund 100.00 % 100.00 % — Frade Fundo de Investimento em Cotas de Fundos de Investimento em Direitos Creditórios NP Brazil Investment fund 100.00 % 100.00 % — Frade III Fundo de Investimento em Cotas de Fundo de Investimento Multimercado Crédito Privado (vi) Brazil Investment fund 100.00 % — — Balista Debentures Incentivadas Fundo de Investimento Multimercado Crédito Privado (vi) Brazil Investment fund 100.00 % — — Coliseu Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior (vi) Brazil Investment fund 100.00 % — — XP Short Brasil Alavancado Fundo de Investimento Multimercado Investimento no Exterior (vii) Brazil Investment fund — — 100.00 % XP Pacote Brasil Alavancado Fundo de Investimento Multimercado Investimento no Exterior (vii) Brazil Investment fund — — 100.00 % (i) The percentage of participation represents the Group’s interest in total capital and voting capital of its subsidiaries. (ii) Subsidiaries legally merged into their respective immediate parent, with no impact on the consolidated financial statements. (iii) Relates to subsidiary incorporated in 2017 sold to Company’s controlling shareholders in 2018 at its early stages. (iv) Subsidiary acquired in 2018. See further details in Note 5 (ii) below. (v) Subsidiaries incorporated in 2018 for operating in the private pension and life insurance business, which is regulated by the Superintendency of Private Insurance (SUSEP) in Brazil. (vi) New subsidiaries and investment funds incorporated in the year. (vii) Investment funds closed during the year. (ii) Business combinations Acquisition of Rico Corretora de Títulos e Valores Mobiliários S.A. On August 10th, 2017, following the approval of the Central Bank, the Group acquired Rico Corretora de Títulos e Valores Mobiliários S.A. (“Rico”) through the acquisition of its sole parent FLAFLU Participações S.A. (“FLAFLU”). With this transaction, the Group aimed to extend its operations in brokerage and securities distribution market to retail, through expanding the customer base and absorbing innovative technology in online market developed by Rico, in view of the complementary nature of positioning between the brands. Details of the net assets acquired, the goodwill and the purchase consideration are as follows: Fair value Assets Cash 96 Financial instruments (FVPL) 356,648 Financial instruments (FVOCI) 20,212 Accounts receivable 1,915 Other assets 11,582 Deferred tax assets 3,751 Property and equipment (Note 13 (a)) 1,728 Intangible assets (Note 13 (b)) 75,813 471,745 Liabilities Social and statutory obligations (560 ) Tax and social security obligations (12,651 ) Securities trading and intermediation (322,371 ) Provisions and continget liabilities (Note 25) (7,921 ) Other liabilities (5,217 ) (348,720 ) Total identifiable net assets at fair value 123,025 Goodwill arising on acquisition (Note 13 (b)) 281,702 Purchase consideration transferred 404,727 Analysis of cash flows on acquisition Consideration paid in cash 404,727 Net cash acquired with the subsidiary (96 ) Net of cash flow on acquisition (investing activities) 404,631 For the purchase price allocation, the following intangible assets were identified. The valuation techniques used for measuring the fair value of separately identified intangible assets acquired were as follows: Assets Amount Method Expected Customer list 50,077 Multi-period excess earning method 8 years Trademark 19,304 Relief from royalty 10 years Technology 2,028 Relief from royalty 3 years The fair value of the consideration given was R$ 404,727. The goodwill is attributable to the workforce and the high profitability of the acquired business. It will be deductible for tax purposes. The fair value and gross contractual amount of trade accounts receivable was the same—R$ 1,915. There was no other contingent liability recognized on the acquisition for a pending lawsuit, apart from R$ 7,921 already provisioned, related to tax contingencies (Note 25). Acquisition-related costs of R$ 690 are included in administrative expenses in profit or loss and in operating cash flows in the statement of cash flows. From the acquisition date, Rico contributed revenues of R$ 53,942 and net profit of R$ 12,125 to the Group’s consolidated statement of profit and loss for the year ended December 31, 2017. If the acquisition had occurred on January 1, 2017, consolidated pro-forma Acquisition of XP Vista On January 5, 2018, the Group acquired 99.60% of shares of XP Vista Asset Management Ltda. (“XP Vista”), an asset management entity, through the acquisition of its controlling shareholder Marathon Investimentos e Participações S.A for a consideration of R$ 10,938, mostly comprised of cash in the amount of R$ 525. Goodwill in the amount of R$ 9,799, attributable to sinergies expected from the combined operations within the Group. Marathon was subsequently incorporated by the Group. (iii) Subscription (redemptions) of non-controlling In 2016, certain non-controlling (iv) Other transactions with non-controlling In the course of its business, the Group admits individual partners to join the share capital of certain subsidiaries while others might decide to leave the subsidiaries resulting in gains or losses recorded directly to equity. For the year ended December 31, 2019, the Group recorded a gain of R$ 374 (2018 – R$ 409 gain), while non-controlling |
Securities purchased (sold) und
Securities purchased (sold) under resale (repurchase) agreements | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Securities purchased under agreements to resell [Abstract] | ||
Securities purchased (sold) under resale (repurchase) agreements | 3. Securities purchased (sold) under resale (repurchase) agreements a) Securities purchased under agreements to resell September 30, 2020 December 31, Available portfolio 1,883,825 971,991 National Treasury Notes (NTNs) 1,639,174 771,099 Financial Treasury Bills (LFTs) — 195,980 National Treasury Bills (LTNs) 244,651 4,912 Collateral held 16,359,863 8,518,099 National Treasury Bills (LTNs) 397,275 1,764,410 National Treasury Notes (NTNs) 15,962,588 6,753,689 Total 18,243,688 9,490,090 Investments in purchase and sale commitments backed by sovereign debt securities refer to transactions involving the purchase of sovereign debt securities with a commitment to sale originated in the subsidiary XP CCTVM and in exclusive funds and were carried out at an average fixed rate of 1.92% p.a. (December 31, 2019 – 4.63% p.a.). As of September 30, 2020 no amounts (December 31, 2019—R$ 654,057) from the total amount of available portfolio is being presented as cash equivalents in the statements of cash flows. b) Securities sold under repurchase agreements September 30, 2020 December 31, 2019 National Treasury Bills (LTNs) 12,682,922 5,653,994 National Treasury Notes (NTNs) 22,571,006 8,533,113 Financial Treasury Bills (LFTs) — 1,451,300 Total 35,253,928 15,638,407 As of September 30, 2020, securities sold under repurchase agreements were agreed with average interest rates of 1.89% p.a. (December 31, 2019—4.48% p.a.), with assets pledged as collateral. | 6. Securities purchased under agreements to resell 2019 2018 Available portfolio 971,991 488,809 National Treasury Notes (NTNs) 771,099 65,136 Financial Treasury Bills (LFTs) 195,980 38,014 National Treasury Bills (LTNs) 4,912 385,659 Collateral held 8,518,099 6,081,800 National Treasury Bills (LTNs) 1,764,410 4,911,635 National Treasury Notes (NTNs) 6,753,689 1,170,165 Total 9,490,090 6,570,609 Investments in purchase and sale commitments backed by sovereign debt securities refer to transactions involving the purchase of sovereign debt securities with a commitment to sale originated in the subsidiary XP CCTVM and in exclusive funds and were carried out at an average fixed rate of 4,63% p.a. (6.43% p.a. as of December 31, 2018). As of December 31, 2019, R$ 654,057 (2018 - R$ 488,809) from the total amount of available portfolio is being presented as cash equivalents in the statements of cash flows. |
Loan operations
Loan operations | 9 Months Ended |
Sep. 30, 2020 | |
Loan Operations [Abstract] | |
Loan operations | 7. Loan operations Following are the breakdown of the carrying amount of loan operations by class, sector of debtor, maturity and concentration: Loans by type September 30, December 31, Retail Pledged asset loan 947,449 388 Credit card 8,061 — Corporate Pledged asset loan 316,412 — Non-pledged 104,368 — Total Loans operations 1,376,290 388 Expected Credit Loss (7,056 ) (2 ) Total loans operations, net of Expected Loss 1,369,234 386 By maturity September 30, 2020 December 31, 2019 Due in 3 months or less 68,783 388 Due after 3 months through 12 months 287,720 — Due after 12 months 1,019,786 — Total Loans operations 1,376,289 388 XP Inc offers several loan products through Banco XP to its customers. The loan products offered to its customers are: (i) “Limite Express”: loans fully collaterized by customers’ investments on XP platform and (ii) “COE Alavancado”: credit product strictly related to investments in structured notes, in which the borrower is able to operate leveraged, retaining the structured note itself as guarantee for the loan. XP Inc uses client’s investments as collaterals to reduce potential losses and protect against credit risk exposure by managing these collaterals so that they are always sufficient, legally enforceable (effective) and viable, XP monitors the value of the collaterals. The Credit Risk Management provides subsidies to define strategies as risk appetite, to establish limits, including exposure analysis and trends as well as the effectiveness of the credit policy. As of September 30, 2020, these two products together represented 94% (December 31, 2019: nil) of the Company’s credit portfolio. The expected credit loss amounting to R$ 7,056 corresponds to approximately 0.5% of the total credit portfolio as of September 30, 2020 (December 31, 2019: nil). The loans operations have an high credit quality and the Group often uses risk mitigation measures, primarily through client’s investments as collaterals, which explains the low provision ratio. As of September 30, 2020, the loans and expected credit loss are classified as stage 1 in accordance with IFRS 9. This classification is periodically reassessed as provided for in XP Inc.’s credit risk policy. |
Securities
Securities | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure of financial assets [abstract] | ||
Securities | 4. Securities a) Securities classified at fair value through profit and loss and at fair value through other comprehensive income September 30, 2020 December 31, 2019 Gross Fair value Gross Fair Value Financial assets At fair value through profit and loss 38,569,036 38,701,519 22,332,936 22,443,392 Agribusiness receivables certificates 179,155 177,095 598,085 589,525 Bank deposit certificates (i) 368,845 370,385 244,071 246,827 Brazilian government bonds 25,239,874 25,280,046 15,404,300 15,494,046 Certificate of real estate receivable 126,791 124,056 75,922 75,123 Debentures 1,034,742 1,018,893 885,344 885,068 Financial credit bills 82,439 82,683 98,068 106,759 Investment funds (ii) 7,656,488 7,656,266 3,047,198 3,047,198 United States government bonds 666,870 702,869 — — Real estate credit bill 1,632 1,651 1,282 1,300 Stocks issued by public-held company 2,546,996 2,546,996 1,562,965 1,562,965 Structured operations certificate 410,022 470,652 237,112 256,381 Others (iii) 255,182 269,927 178,589 178,200 At fair value through other comprehensive income 9,637,582 9,588,773 2,608,325 2,616,118 National treasury bill 9,637,582 9,588,773 2,608,325 2,616,118 (i) Bank deposit certificates include R$ 105,204 (December 31, 2019—R$123,817) is being presented as cash equivalents in the statements of cash flows. (ii) Investments funds include R$ 7,230,918 (December 31, 2019—R$ 3,759,090) amounts related to Specially Constituted Investment Fund (“FIE”) as presented in Note 17. (iii) Mainly related to bonds issued and traded overseas. b) Securities evaluated at amortized cost September 30, 2020 December 31, 2019 Gross Book Value Gross Book Value Financial assets At amortized cost 1,366,038 1,366,038 2,266,971 2,266,971 Bonds 1,366,038 1,366,038 2,266,971 2,266,971 c) Securities on the financial liabilities classified at fair value through profit or loss September 30, 2020 December 31, 2019 Gross Book value Gross Book Value Financial liabilities At fair value through profit or loss 1,111,770 1,111,770 2,021,707 2,021,707 Securities 1,111,770 1,111,770 2,021,707 2,021,707 d) Securities classified by maturity Assets Liabilities September 30, December 31, September 30, December 31, Financial assets At fair value through P&L and at OCI Current 22,696,712 9,804,819 1,111,770 2,021,707 Non-stated 10,466,704 4,999,333 1,111,770 2,021,707 Up to 3 months 644,886 257,544 — — From 3 to 12 months 11,585,122 4,547,942 — — Non-current 25,593,580 15,254,691 — — After one year 25,593,580 15,254,691 — — Evaluated at amortized cost Current 1,366,038 2,266,971 — — Up to 3 months 194,334 807,218 — — From 3 to 12 months 1,171,704 1,459,753 — — Total 49,656,330 27,326,481 1,111,770 2,021,707 | 7. Securities a) Securities classified at fair value through profit and loss and at fair value through other comprehensive income are presented in the following table: 2019 2018 Gross carrying Fair value Gross carrying Fair value Financial assets At fair value through profit or loss 22,332,936 22,443,392 6,262,735 6,290,971 Agribusiness receivables certificates 598,085 589,525 85,668 85,874 Bank deposit certificates (i) 244,071 246,827 172,451 171,725 Brazilian government bonds 15,404,300 15,494,046 3,826,902 3,853,534 Certificate of real estate receivable 75,922 75,123 208,442 207,167 Debentures 885,344 885,068 325,459 326,403 Financial credit bills 98,068 106,759 45,040 44,663 Investment funds 3,047,198 3,047,198 279,013 279,013 Others (ii) 178,589 178,200 167,714 167,716 Real estate credit bill 1,282 1,300 3,697 4,883 Structured transaction certificate 237,112 256,381 21,275 22,949 Stocks issued by public-held company 1,562,965 1,562,965 1,127,074 1,127,044 At fair value through other comprehensive income 2,608,325 2,616,118 688,731 695,778 National treasury bill 2,608,325 2,616,118 688,731 695,778 (i) Bank deposit certificates include R$ 123,817 (2018 – R$ 69,647) is being presented as cash equivalents in the statements of cash flows. (ii) Mainly related to bonds issued and traded overseas. b) Securities evaluated at amortized cost are presented in the following table: 2019 2018 Gross carrying Book value Gross carrying Book value Financial assets At amortized cost Bonds 2,266,971 2,266,971 155,292 155,292 c) Securities on the financial liabilities classified at fair value through profit or loss are presented in the following table: 2019 2018 Gross carrying Book value Gross carrying Book value Financial liabilities At fair value through profit or loss Securities loaned 2,021,707 2,021,707 1,259,579 1,259,579 Below is presented the securities classified by maturity: Assets Liabilities 2019 2018 2019 2018 Financial assets At fair value through PL and at OCI Current 9,804,819 1,875,374 2,021,707 1,192,877 Non-stated 4,999,333 1,425,401 2,021,707 — Up to 3 months 257,544 192,208 — 1,184,972 From 3 to 12 months 4,547,942 257,765 — 7,905 Non-current 15,254,691 5,111,375 — 66,702 After one year 15,254,691 5,111,375 — 66,702 Evaluated at amortized cost Current 2,266,971 155,292 — — Non-staded 807,218 — — — From 3 to 12 months 1,459,753 155,292 — — Total 27,326,481 7,142,041 2,021,707 1,259,579 |
Derivative financial instrument
Derivative financial instruments | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [abstract] | ||
Derivative financial instruments | 5. Derivative financial instruments The Group trades derivative financial instruments with various counterparties to manage its overall exposures (interest rate, foreign currency and fair value of financial instruments) and to assist its customers in managing their own exposures. Below is the composition of the derivative financial instruments portfolio (assets and liabilities) by type of instrument, stated fair value and by maturity: September 30, 2020 Notional Fair Value % Up to 3 months From 3 to 12 months Above 12 months Assets Options 602,159,341 6,602,467 50 1,649,905 229,791 4,722,771 Swap contracts 16,819,387 637,693 5 38,784 156,750 442,159 Forward contracts 14,566,817 5,901,156 45 5,651,129 161,202 88,825 Future contracts 22,282,253 7,451 — 7,451 — — Total 655,827,798 13,148,767 100 7,347,269 547,743 5,253,755 Liabilities Options 574,319,779 6,524,516 52 1,372,572 153,207 4,998,737 Swap contracts 5,517,378 693,187 5 75,816 170,932 446,439 Forward contracts 10,248,842 5,492,148 43 5,458,963 13,058 20,127 Future contracts 20,343,451 19,745 — 19,745 — — Total 610,429,450 12,729,596 100 6,927,096 337,197 5,465,303 December 31, 2019 Notional Fair Value % Up to 3 months From 3 to 12 months Above 12 months Assets Options 498,484,022 2,742,035 67 1,837,073 577,177 327,785 Swap contracts 3,955,473 1,133,768 27 10,418 700,668 422,682 Forward contracts 1,857,542 187,392 5 159,163 28,175 54 Future contracts 15,920,584 21,809 1 21,809 — — Total 520,217,621 4,085,004 100 2,028,463 1,306,020 750,521 Liabilities Options 488,482,756 2,741,592 85 1,745,532 637,393 358,667 Swap contracts 3,420,857 485,164 14 15,838 40,687 428,639 Forward contracts 164,209 2,480 1 1,693 325 462 Total 492,067,822 3,229,236 100 1,763,063 678,405 787,768 | 8. Derivative financial instruments The Group uses the derivatives to manage its overall exposures of foreign exchange rates, interest rates and price of shares. The fair value of derivative financial instruments, comprised of futures, forward, options, and swaps operations, is determined in accordance with the following criteria: • Swap—These operations swap cash flow based on the comparison of profitability between two indexers, Thus, the agent assumes both positions – put in one indexer and call on another. • Forward—at the market quotation value, and the installments receivable or payable are prefixed to a future date, adjusted to present value, based on market rates published at B3. • Futures—Foreign exchange rates, prices of shares and commodities are commitments to buy or sell a financial instrument at a future date, at a contracted price or yield and may be settled in cash or through delivery. Daily cash settlements of price movements are made for all instruments. • Options—option contracts give the purchaser the right to buy the instrument at a fixed price negotiated at a future date. Those who acquire the right must pay a premium to the seller. This premium is not the price of the instrument, but only an amount paid to have the option (possibility) to buy or sell the instrument at a future date for a previously agreed price. Positions with derivative financial instruments as of December 31, 2019 and 2018 are shown below: 2019 Assets Liabilities Fair value Notional Fair value Notional Swaps 1,133,768 3,955,473 485,164 3,420,857 Forward contracts 187,392 1,857,542 2,480 164,209 Futures contracts 21,809 15,920,584 — — Options 2,742,035 498,484,022 2,741,592 488,482,756 Total 4,085,004 520,217,621 3,229,236 492,067,822 2018 Assets Liabilities Fair value Notional Fair value Notional Swaps 244,262 3,454,728 247,732 3,981,304 Forward contracts 573,963 809,202 17,170 19,142 Futures contracts 6,599 5,679,425 — — Options 867,207 78,746,383 726,497 82,579,675 Total 1,692,031 88,689,738 991,399 86,580,121 Below is the composition of the Derivative financial instruments portfolio (assets and liabilities) by type of instrument, stated fair value and by maturity: 2019 Fair Value % Up to From 3 to Above Assets Swap contracts 1,133,768 27 10,418 700,668 422,682 Forward contracts 187,392 5 159,163 28,175 54 Future contracts 21,809 1 21,809 — — Options 2,742,035 67 1,837,073 577,177 327,785 Total 4,085,004 100 2,028,463 1,306,020 750,521 Liabilities Options 2,741,592 85 1,745,532 637,393 358,667 Forward contracts 2,480 1 1,693 325 462 Swap contracts 485,164 14 15,838 40,687 428,639 Total 3,229,236 100 1,763,063 678,405 787,768 2018 Fair value % Up to 3 months From 3 to 12 Above 12 months Assets Swap contracts 244,262 14 4,675 25,054 214,533 Forward contracts 573,963 34 363,863 210,100 — Future contracts 6,599 1 4,613 1,986 — Options 867,207 51 255,281 234,742 377,184 Total 1,692,031 100 628,432 471,882 591,717 Liability Options 726,497 73 128,470 217,387 380,640 Forward contracts 17,170 2 16,972 25 173 Swap contracts 247,732 25 7,710 25,094 214,928 Total 991,399 100 153,152 242,506 595,741 Derivatives financial instruments by index: 2019 2018 Notional Fair Value Notional Fair Value Swap Contracts Asset Position Interest 3,955,473 1,133,768 3,454,728 244,262 Liability Position Interest 3,420,857 (485,164 ) 3,981,304 (247,732 ) Forward Contracts Asset Position Foreign exchange 1,710,648 40,499 239,478 4,239 Share — — 342,681 342,681 Interest 146,893 146,893 227,043 227,043 Liability Position Foreign exchange 162,551 (822 ) 2,234 (262 ) Shares 1,658 (1,658 ) 16,908 (16,908 ) Future Contracts Purchase commitments Foreign exchange 965 329 5,679,425 6,599 Interest 15,919,619 21,480 — — Options Purchase commitments Foreign exchange 37,500 82,369 1,734,063 115,570 Share 1,770,220 210,448 5,500,627 365,631 Commodities — — 213 1,582 Interest 496,676,302 2,449,218 71,511,480 384,424 Commitments to sell Foreign exchange 37,500 (94,612 ) 2,059,104 (171,918 ) Shares 2,511,960 (229,291 ) 3,245,796 (172,748 ) Commodities — — 130 (1,391 ) Interest 485,933,296 (2,417,689 ) 77,274,645 (380,440 ) Assets 4,085,004 1,692,031 Liabilities (3,229,236 ) (991,399 ) Net 855,768 700,632 |
Hedge accounting
Hedge accounting | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about hedging instruments [abstract] | ||
Disclosure of hedge accounting | 6. Hedge accounting The Group has two types of hedge relationships: hedge of net investment in foreign operations and fair value hedge. For hedge accounting purposes, the risk factors measured by the Group are: • Interest Rate: Risk of volatility in transactions subject to interest rate variations; • Currency: Risk of volatility in transactions subject to foreign exchange variation. The structure of risk limits is extended to the risk factor level, where specific limits aim at improving the monitoring and understanding processes, as well as avoiding concentration of these risks. The structures designed for interest rate and exchange rate categories take into account total risk when there are compatible hedging instruments. In certain cases, management may decide to hedge a risk for the risk factor term and limit of the hedging instrument. a) Hedge of net investment in foreign operations In the nine month period ended September 30, 2020 and in the year ended December 31, 2019, the objective for the Group was to hedge the risk generated by the US$ variation from investments in our subsidiaries in the United States, XP Holdings International and XP Advisors Inc. The Group has entered into forward contracts to protect against changes in future cash flows and exchange rate variation of net investments in foreign operations known as Non Deliverable Forward (“NDF”) contracts. The Group undertakes risk management through the economic relationship between hedge instruments and hedged item, in which it is expected that these instruments will move in opposite directions, in the same proportions, with the aim of neutralizing the risk factors. Hedged item Hedge instrument Book Value Variation in Nominal Variation in Strategies Assets Liabilities September 30, 2020 Foreign exchange risk Hedge of net investment in foreign operations 224,539 — 70,882 395,977 (80,370 ) Total 224,539 — 70,882 395,977 (80,370 ) December 31, 2019 Foreign exchange risk Hedge of net investment in foreign operations 186,412 — 5,946 248,896 (7,133 ) Total 186,412 — 5,946 248,896 (7,133 ) For the period ended of September 30, 2020, there was no ineffectiveness in relation to the foreign net investment hedge. b) Fair value hedge The fair value hedging strategy of the Group consists of hedging the exposure of Fixed-Income securities carried out through structured operations certificates. The market risk hedge strategy involves avoiding temporary fluctuations in earnings arising from changes in the interest rate market in Reais. Once this risk is offset, the Group seeks to index the portfolio to the CDI, through the use of derivatives (DI1 Futuro). The hedge is contracted in order to neutralize the total exposure to the market risk of the fixed-income funding portfolio, excluding the portion of the fixed-income compensation represented by the credit spread of Banco XP S.A, seeking to obtain the closest match deadlines and volumes as possible. The effects of hedge accounting on the financial position and performance of the Group are presented below: Hedged item Hedge instrument Book Value Variation in Nominal Variation in the amounts used to Strategies Assets Liabilities September 30, 2020 Interest rate risk Hedge of fixed-income securities — 1,142,457 51,787 1,159,250 (51,361 ) Total — 1,142,457 51,787 1,159,250 (51,361 ) For the period ended of September 30, 2020, there was no ineffectiveness in relation to the fair value hedge. September 30, Notional Book value (i) Variation in fair value Hedge ineffectiveness Hedge Instruments Assets Liabilities Interest rate risk Futures 1,159,250 — 1,142,457 (51,361 ) 427 (i) Amounts recorded under Derivatives. The table below presents, for each strategy, the notional amount and the fair value adjustments of hedge instruments and the book value of the hedged item: Strategies Hedge instruments September 30, Hedge instruments December 31, Notional Fair value Book value Notional Fair value Book value Hedge of Fair Value 1,159,250 51,787 (51,361 ) — — — Hedge of net investment in foreign operations 395,977 (80,370 ) (80,370 ) 248,896 5,946 (7,133 ) Total 1,555,227 (28,583 ) (131,731 ) 248,896 5,946 (7,133 ) The table below shows the breakdown by maturity of the hedging strategies: September 30, 2020 0-1 year 1-2 years 2-3 years 3-4 4-5 5-10 years Total Hedge of Fair Value (2 ) (14 ) (563 ) — (30,698 ) (20,084 ) (51,361 ) Hedge of net investment in foreign operations (8,732 ) — — (30,284 ) (41,354 ) — (80,370 ) Total (8,734 ) (14 ) (563 ) (30,284 ) (72,052 ) (20,084 ) (131,731 ) December 31, 0-1 1-2 2-3 3-4 4-5 5-10 Total Hedge of Fair Value — — — — — — — Hedge of net investment in foreign operations (198 ) — — (2,932 ) (4,003 ) — (7,133 ) Total (198 ) — — (2,932 ) (4,003 ) — (7,133 ) | 9. Hedge accounting In the year ended December 31, 2019,2018 and 2017 the objective for the Group was to hedge the risk generated by the USD variation from the investments in USA, XP Holding International and XP Advisors Inc. The Group contract Non-Deliverable The Group undertakes risk management through the economic relationship between hedge instruments and hedged item, in which it is expected that these instruments will move in opposite directions, in the same proportions, with the aim of neutralizing the risk factors. Hedged item Hedge instrument Book Value Variation in Nominal Variation in Strategies Assets Liabilities 2019 Foreign exchange risk Hedge of net investment in foreign operations 186,412 — 5,946 248,896 (7,133 ) Total 186,412 — 5,946 248,896 (7,133 ) 2018 Foreign exchange risk Hedge of net investment in foreign operations 147,179 — 18,645 225,901 (17,495 ) Total 147,179 — 18,645 225,901 (17,495 ) 2017 Foreign exchange risk Hedge of net investment in foreign operations 100,323 — 2,034 145,552 (2,386 ) Total 100,323 — 2,034 145,552 (2,386 ) There was no ineffectiveness during 2019, 2018 and 2017 in relation to the foreign net investment hedge. |
Accounts receivable
Accounts receivable | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other receivables [abstract] | |
Accounts receivable | 10. Accounts receivable 2019 2018 Customers (a) 458,776 203,604 Dividends and interest receivable on equity capital—Funds 7,052 18,852 Other 702 181 (-) Expected losses on accounts receivable (4,501 ) (3,437 ) Total 462,029 219,200 (a) Refers to receivables from management fee arising from the distribution of funds and amounts receivable related to service provision, which have an average term of 30 days. There is no concentration on the balances receivable as of December 31, 2019 and 2018. |
Recoverable Taxes
Recoverable Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Recoverable taxes | 11. Recoverable taxes 2019 2018 Prepayments of income taxes (IRPJ and CSLL) 225,465 182,021 Contributions over revenue (PIS and COFINS) 16,859 533 Taxes on services (ISS) 846 698 Value added taxes (VAT) 150 98 Total 243,320 183,350 Current 243,320 183,350 Non-current — — |
Prepaid Expenses
Prepaid Expenses | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | ||
Prepaid expenses | 8. Prepaid expenses September 30, December 31, Commissions and premiums paid in advance (a) 1,035,869 49,233 Marketing expenses 8,110 9,678 Services paid in advance 1,124 2,043 Other expenses paid in advance 45,895 28,730 Total 1,090,998 89,684 Current 461,304 56,605 Non-current 629,694 33,079 (a) Mostly comprised by long term investment programs implemented by XP CCTVM through its network of IFAs. These commissions and premiums paid are recognized at the signing date of each contract and are amortized in the statement of income of the Company, linearly, according to the investment term period. | 12. Prepaid expenses 2019 2018 Incentives for business acceleration program 11,349 22,125 Marketing expenses 9,678 41,276 Commissions and premiums paid in advance 49,233 21,431 Services paid in advance 2,043 5,180 Other expenses paid in advance 17,381 6,711 Total 89,684 96,723 Current 56,605 56,302 Non-current 33,079 40,421 |
Investments in associates and j
Investments in associates and joint ventures | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Associates Joint Ventures And Subsidiaries [Abstract] | |
Investments in associates and joint ventures | 10. Investments in associates and joint ventures Set out below are the associates and joint venture of the Group as of September 30, 2020. The entities listed below have share capital consisting solely of ordinary shares, which are held directly by the Group. The country of incorporation or registration is also their principal place of business, and the proportion of ownership interest is the same as the proportion of voting rights held. Name of entity % of Nature of Measurement Equity Carrying Du Agro Holdings S.A. 49 % Joint Venture (1) Equity method 479 235 VPL Gestão Patrimonial e Participações S.A. 49 % Associate (2) Equity method 150,000 74,851 O Primo Rico Mídia, Educacional e Participações Ltda. 20 % Associate (3) Equity method (520 ) (105 ) Total equity-accounted investments 149,959 74,981 (1) On June 23, 2020, the Company acquired a 49% interest in DuAgro Holdings S.A. (“DuAgro”), a joint venture involved in the agribusiness. DuAgro is an integrated platform that utilizes technology to finance the purchase of agricultural inputs. The focus is on small- and medium-sized (2) On September 8, 2020, the Company entered into an agreement to hold a 49.9% minority stake of the total share capital of VPL Gestão Patrimonial e Participações S.A..With this transaction XP Inc. is complementing the existing offering to ultra-high-net-worth (3) O Primo Rico is a company focused on digital content services, including developing and selling financial education courses and online events. Entity December 31, 2019 Acquisition/ Equity in Other Goodwill (i) September 30, VPL Gestão Patrimonial e Participações S.A. — 74,851 — — 621,248 696,099 Du Agro Holdings S.A. — 572 (337 ) — 408 643 O Primo Rico (ii) — 242 (227 ) (120 ) — (105 ) Total — 75,665 (564 ) (120 ) 621,656 696,637 (i) Related to the acquisitions of associates and joint ventures. As of September 30, 2020 the goodwill recognized is preliminary and includes the value of expected synergies arising from the investments. (ii) As of September 30, 2020 the entity presented a negative net equity. The amounts related to the negative net equity are recognized in Other liabilities. |
Property, Equipment, Goodwill,
Property, Equipment, Goodwill, Intangible Assets And Lease | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [abstract] | ||
Property, equipment, goodwill, intangible assets and lease | 11. Property, equipment, goodwill, intangible assets and lease a) Changes in the period Property and Goodwill and intangible As of January 1, 2019 99,127 504,915 Additions 43,749 39,974 Write-offs (7,550 ) (56 ) Depreciation / Amortization in the period (15,174 ) (23,992 ) As of September 30, 2019 120,152 520,841 Cost 165,314 604,298 Accumulated depreciation / amortization (45,162 ) (83,457 ) As of January 1, 2020 142,464 553,452 Additions 40,011 79,127 Business combination (Note 2(f)) — 83,925 Write-offs (i) (61,967 ) (185 ) Transfers (6,143 ) 6,143 Depreciation / Amortization in the period (19,609 ) (52,928 ) As of September 30, 2020 94,756 669,534 Cost 196,081 767,878 Accumulated depreciation / amortization (101,325 ) (98,344 ) (i) As previously mentioned on Note 2(h), as a result of the COVID-19 wrote-off b) Impairment test for goodwill Given the interdependency of cash flows and the merger of business practices, all Group’s entities are considered a single cash generating units (“CGU”) and, therefore, goodwill impairment test is performed at the single operating level. Therefore, the carrying amount considered for the impairment test represents the Company’s equity. The Group performs its annual impairment test in December and when circumstances indicates that the carrying value may be impaired. The Group’s impairment tests are based on value-in-use c) Leases Set out below, are the carrying amounts of the Group’s right-of-use Right-of-use assets Lease liabilities As of January 1, 2019 133,870 148,494 Additions (i) 104,487 105,694 Depreciation expense (23,235 ) — Interest expense — 12,447 Effects of exchange rate 6,259 6,460 Payment of lease liabilities — (26,194 ) As of September 30, 2019 221,381 246,901 Current — 28,970 Non-current 221,381 217,931 As of January 1, 2020 227,478 255,406 Additions (i) 45,377 45,129 Depreciation expense (33,363 ) — Write-offs (ii) (78,321 ) (78,322 ) Interest expense — 15,648 Revaluation (iii) (9,115 ) (10,050 ) Impairment, net 264 — Effects of exchange rate 29,694 32,675 Payment of lease liabilities — (45,903 ) As of September 30, 2020 182,014 214,583 Current — 31,566 Non-current 182,014 183,017 (i) Additions to right-of-use (ii) As previously mentioned on Note 2(h), as a result of the COVID-19 write-off right-of-use (iii) Revaluation of discount rate that represent the current market assessment. The Group recognized rent expense from short-term leases and low-value Depreciation and amortization expense have been charged in the following line items of consolidated statement of income: Nine months period ended Three months period ended 2020 2019 2020 2019 Property and equipment Depreciation in the period 19,609 15,174 6,616 5,298 Leases Depreciation in the period 33,363 23,235 10,313 8,796 Intangible assets Amortization in the period 52,928 23,992 19,451 9,361 105,900 62,401 36,380 23,455 | 13. Property, equipment, intangible assets and leases (a) Property and equipment Data Furniture Security Facilities Fixed Total Balance as of January 1, 2017 9,679 8,677 459 8,789 1,061 28,665 Additions 6,308 6,309 5,650 9,915 2,187 30,369 Business combination (Note 5 (ii)) 804 412 34 478 1,728 Write-offs (149 ) (1,690 ) (9 ) (2,503 ) — (4,351 ) Transfers 709 2,181 — 358 (3,248 ) — Depreciations in the year (3,608 ) (2,628 ) (1,227 ) (1,875 ) — (9,338 ) Balance as of December 31, 2017 13,743 13,261 4,907 15,162 — 47,073 Cost 27,400 19,124 6,403 19,281 — 72,208 Accumulated depreciation (13,657 ) (5,863 ) (1,496 ) (4,119 ) — (25,135 ) Balance as of January 1, 2018 13,743 13,261 4,907 15,162 — 47,073 Additions 22,319 10,448 376 9,930 40,076 83,149 Write-offs (40 ) (924 ) (30 ) (5,078 ) (553 ) (6,625 ) Transfers 31 2,109 192 37,191 (39,523 ) — Depreciation in the year (7,282 ) (3,253 ) (2,892 ) (11,043 ) — (24,470 ) Balance as of December 31, 2018 28,771 21,641 2,553 46,162 — 99,127 Cost 48,023 29,613 6,388 47,843 — 131,867 Accumulated depreciation (19,252 ) (7,972 ) (3,835 ) (1,681 ) — (32,740 ) Balance as of January 1, 2019 28,771 21,641 2,553 46,162 — 99,127 Additions 15,039 9,942 664 22,315 24,539 72,499 Write-offs (304 ) (2,047 ) — (6,112 ) — (8,463 ) Transfers — 2,409 — 22,130 (24,539 ) — Depreciation in the year (9,059 ) (4,189 ) (1,673 ) (5,778 ) — (20,699 ) Balance as of December 31, 2019 34,447 27,756 1,544 78,717 — 142,464 Cost 62,235 38,086 7,716 84,726 — 192,763 Accumulated depreciation (27,788 ) (10,330 ) (6,172 ) (6,009 ) — (50,299 ) (b) Intangible assets Software Goodwill Costumer Trademarks Other Total Balance as of January 1, 2017 16,871 90,999 9,179 1,799 4,422 123,270 Additions 12,243 — — 33 8,351 20,627 Business combination (Note 5 ii)) 4,404 281,702 50,077 19,304 2,028 357,515 Write-offs (140 ) — — — — (140 ) Transfers (799 ) — — — 799 — Amortization in the year (6,879 ) — (9,286 ) (898 ) (1,002 ) (18,065 ) Balance as of December 31, 2017 25,700 372,701 49,970 20,238 14,598 483,207 Cost 35,489 372,701 72,072 21,230 18,753 520,245 Accumulated Amortization (9,789 ) — (22,102 ) (992 ) (4,155 ) (37,038 ) Balance as of January 1, 2018 25,700 372,701 49,970 20,238 14,598 483,207 Additions 27,828 — — 1,009 24,680 53,517 Business combination — 9,799 — — — 9,799 Write-offs (15 ) — — — (13,275 ) (13,290 ) Amortization in the year (14,742 ) — (8,426 ) (2,024 ) (3,126 ) (28,318 ) Balance as of December 31, 2018 38,771 382,500 41,544 19,223 22,877 504,915 Cost 56,127 382,500 72,072 22,239 31,308 564,246 Accumulated amortization (17,356 ) — (30,528 ) (3,016 ) (8,431 ) (59,331 ) Balance as of January 1, 2019 38,771 382,500 41,544 19,223 22,877 504,915 Additions 51,348 — 27,000 — 10,601 88,949 Write-offs (2,283 ) — — (33 ) (466 ) (2,782 ) Amortization in the year (21,526 ) — (7,945 ) (2,702 ) (5,457 ) (37,630 ) Balance as of December 31, 2019 66,310 382,500 60,599 16,488 27,555 553,452 Cost 104,270 382,500 105,977 22,239 39,823 654,809 Accumulated amortization (37,960 ) — (45,378 ) (5,751 ) (12,268 ) (101,357 ) (c) Impairment test for goodwill Given the interdependency of cash flows and the merger of business practices, all Group’s entities are considered a single cash generating units (“CGU”) and, therefore, goodwill impairment test is performed at the single operating level. Therefore, the carrying amount considered for the impairment test represents the Company’s equity. The Group tests whether goodwill has suffered any impairment on an annual basis. For the years ended December 31, 2019 and 2018, the recoverable amount of the single CGU was determined based on value-in-use Cash flows beyond the four-year period are extrapolated using the estimated growth rates, which are consistent with forecasts included in industry reports specific to the industry in which the Group operates. The Group performed its annual impairment test as of December 31, 2019 and 2018 which did not result in the need to recognize impairment losses on the carrying value of goodwill. Key assumptions used in value-in-use Assumption Approach used to determine values Sales Average annual growth rate over the four-year forecast period; based on past performance and management’s expectations of market development. Budgeted gross margin Based on past performance and management’s expectations for the future. Other operating costs Fixed costs, which do not vary significantly with sales volumes or prices. Management forecasts these costs based on the current structure of the business, adjusting for inflationary increases but not reflecting any future restructurings or cost saving measures. The amounts disclosed above are the average operating costs for the four-year forecast period. Annual capital expenditure Expected cash costs. This is based on the historical experience of management, and the planned refurbishment expenditure. No incremental revenue or cost savings are assumed in the value-in-use Long-term growth rate This is the weighted average growth rate used to extrapolate cash flows beyond the budget period. The rates are consistent with forecasts included in industry reports. Pre-tax Reflect specific risks relating to the relevant segments and the countries in which they operate. Discount rates represent the current market assessment of the risks specific to the Group, taking into consideration the time value of the money and risks of the underlying assets that have not been incorporated in the cash flow estimates, The discount rate calculation is based on the specific circumstances of the Group and is derived from its weighted average cost of capital (WACC). The WACC takes into account both debt and equity. The cost of equity is derived from the expected return on investment by the Group’s investors. The cost of debt is based on the interest-bearing borrowings the Group has. Adjustments to the discount rate are made to factor in the specific amount and timing of the future tax flows in order to reflect a pre-tax pre-tax d) Leases Set out below, are the carrying amounts of the Group’s right-of-use Right-of-use assets Lease liabilities As of January 1, 2019 133,870 148,494 Additions (i) 123,529 124,283 Depreciation expense (32,831 ) — Interest expense — 17,613 Effects of exchange rate 2,910 2,995 Payment of lease liabilities — (37,979 ) As of December 31, 2019 227,478 255,406 Current — 52,771 Non-current 227,478 202,635 (i) Additions to right-of-use The Group recognized rent expense from short-term leases and low-value |
Securities Sold Under Repurchas
Securities Sold Under Repurchase Agreements | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Detailed Information on Securities Sold under Repurchase Agreements [Abstract] | |
Securities sold under repurchase agreements | 14. Securities sold under repurchase agreements 2019 2018 National Treasury Notes (NTNs) 8,533,113 1,153,547 National Treasury Bills (LTNs) 5,653,994 5,142,881 Financial Treasury Bills (LFTs) 1,451,300 344,266 Total 15,638,407 6,640,694 As of December 31, 2018, securities sold under repurchase agreements were agreed with average interest rates of 4,48% p.a. (2018—6,40% p.a.), with assets pledged as collateral (Note 6). |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2020 | |
Categories of financial liabilities [abstract] | |
Deposits | 12. Deposi t September 30, December 31, Demands deposit s 40,310 70,190 Time deposits 1,586,399 4 Total 1,626,709 70,194 Current 997,285 70,194 Non-Current 629,424 — Maturity—As of Class Within From 31 to From 61 to From 91 to From 181 to After 360 days Total Demand deposits 40,310 — — — — — 40,310 Time deposit s — — 141,895 34,544 780,536 629,424 1,586,399 Total 40,310 — 141,895 34,544 780,536 629,424 1,626,709 Maturity—As of December 31, 2019 Class Within 30 From 31 to From 61 to From 91 From 180 After 360 Total Demand deposits 70,190 — — — — — 70,190 Time deposits 4 — — — — — 4 Tota l 70,194 — — — — — 70,194 |
Structured Operations Certifica
Structured Operations Certificates | 9 Months Ended |
Sep. 30, 2020 | |
Categories of financial liabilities [abstract] | |
Structured operations certificates | 13. Structured operations certificates September 30, December 31, Maturity From 91 to 180 days 1,918 — After 360 days 1,140,539 19,474 Total 1,142,457 19,474 Current 1,918 — Non-Current 1,140,539 19,474 |
Borrowings And Lease Liabilitie
Borrowings And Lease Liabilities | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Borrowings And Lease Liabilities [Abstract] | ||
Borrowings and lease liabilities | 14. Borrowings and lease liabilities Interest Maturity September 30, December 31, Bank borrowings—domestic (i) 113% of CDI(*) March 2021 21,292 52,668 Related parties 21,292 52,668 Financial institution (ii) CDI (*)+ 0.774% April 2023 276,106 329,410 Third parties 276,106 329,410 Total borrowings 297,398 382,078 Lease liabilities 214,583 255,406 Total borrowings and lease liabilities 511,981 637,484 Current 61,226 116,450 Non-current 450,755 521,034 (*) Brazilian Interbank Offering Rate (CDI) (i) Loan agreement with Itaú Unibanco with maturity on March 8, 2021, payable in 36 monthly installments. (ii) Loan agreement entered into on March 28, 2018 with the International Finance Corporation (IFC). The principal amount is due on the maturity date and accrued interests payable at every six months. All the obligations above contain financial covenants, which comply with certain performance conditions. The Group has complied with these covenants throughout the reporting period (Note 30 (b)). | 15. Borrowings and lease liabilities Interest rate % Maturity 2019 2018 Bank borrowings—domestic (i) 113% of CDI (*) March 2021 52,668 94,921 Related parties 52,668 94,921 Bank borrowings—domestic (ii) 111% of CDI (*) July 2019 — 44,352 Financial institution (iii) CDI (*) April 2023 329,410 330,336 Third parties 329,410 374,688 Total borrowings 382,078 469,609 Lease liabilities (Note 13.(d)) 255,406 — Total borrowings and lease liabilities 637,484 469,609 Current 116,450 114,489 Non-current 521,034 355,120 (*) Brazilian Interbank Offering Rate (CDI) (i) Loan agreement with Itaú Unibanco with maturity on March 8, 2021, payable in 36 monthly installments. (ii) Loan agreement with Banco JP Morgan S.A., hired in connection with the acquisition of Rico, payable in seven quarterly installments. In July 2019, the loan was fully settled. (iii) Loan agreement entered into on March 28, 2018 with the International Finance Corporation (IFC). The principal amount is due on the maturity date and accrued interests payable at every six months. All the obligations above contain financial covenants, which comply with certain performance conditions. The Group has complied with these covenants throughout the reporting period (Note 34 (ii)). |
Debentures
Debentures | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [abstract] | ||
Debentures | 15. Debentures On May 15, 2019 and September 28, 2018, the Company issued Debentures, non-convertible Issuance Quantity Annual rate Issuance Maturity Unit value at issuance Unit value at period-end Book value 1st 400,000 108.0% CDI 9/28/2018 9/28/2020 R$ 1,000.00 R$ 1,108.56 — 2nd 400,000 107.5% CDI 5/15/2019 5/15/2022 R$ 1,000.00 R$ 1,009.05 338,693 Total 800,000 338,693 September 30, December 31, Principal 400,000 800,000 Interest 23,746 47,127 Payments (20,336 ) (11,897 ) Repurchase (a) (64,717 ) — Total 338,693 835,230 Current — 435,230 Non-current 338,693 400,000 (a) As of September 30, 2020 the Group repurchased 65,611 units of the second series of non-convertible The principal amount and accrued interest payable related to the first issuance are due on the maturity date, while for the second issuance, 50% of the principal amount is due on May 15, 2021 and the remaining balance on the maturity date, and accrued interest payable every 12 months from the issuance date. There were no interest amounts paid in the period ended of September 30, 2020. On September 28, 2020 the first series of non-convertible Debentures are subject to financial covenants, which comply with certain performance conditions. The Group has complied with these covenants throughout the reporting period (Note 30(b)). | 16. Debentures On May 15, 2019 and September 28, 2018, the Company issued Debentures, non-convertible Issuance Quantity (units) Annual rate Issuance date Maturity date Unit value at Unit value at period-end Book value 1st 400,000 108,0% CDI 9/28/2018 9/28/2020 R$ 1,000.00 R$ 1,082.01 433,262 2st 400,000 107,5% CDI 5/15/2019 5/15/2022 R$ 1,000.00 R$ 1,005.88 401,968 Total 800,000 835,230 2019 2018 Principal 800,000 400,000 Interest 47,127 6,538 Payments (11,897 ) — Total 835,230 406,538 Current 435,230 — Non-current 400,000 406,538 The principal amount and accrued interest payables related to the first issuance are due on the maturity date, while for the second issuance, 50% of the principal amount is due on May 15, 2021 and the remaining balance on the maturity date, and accrued interest payable every 12 months from the issuance date. There were no amounts paid in 2019. Debentures are subject to financial covenants, which comply with certain performance conditions. The Group has complied with these covenants throughout the reporting period (Note 34(ii)). |
Other Financial Liabilities
Other Financial Liabilities | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure of financial liabilities [abstract] | ||
Other Financial Liabilities | 16. Other financial liabilities September 30, 2020 December 31, Foreign exchange portfolio 249,394 8,962 Contingent consideration (i) 462,000 — Financial bills (ii) 16,311 — Credit cards operations (ii) 8,294 — Others (iii) 122,879 — Total 858,878 8,962 Current 380,567 8,962 Non-current 478,311 — (i) Contractual contingent considerations mostly associated to the investment acquisition of VPL, as described in Note 10. The maturity of the total contingent consideration payment is up to 6 years and the contractual maximum amount payable is R$653,222 (the minimum amount is zero). (ii) Related to operations of Banco XP S.A. (iii) Include R$58,526 payable through our acquisitions (Note 2(f)) and investments in associates and joint ventures. | 18. Other financial liabilities 2019 2018 Customer deposits (a) 70,191 — Structured operations certificates (b) 19,474 — Foreign exchange portfolio 8,962 7,011 Other financial liabilities 4 — Total 98,631 7,011 Current 79,157 7,011 Non-current 19,474 — (a) Mainly related to the financial resources of XP Vida e Previdência participant which is in process to be invested. (b) Related to structured operations certificates of Banco XP. |
Private Pension Liabilities
Private Pension Liabilities | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Text Block [Abstract] | ||
Private pension liabilities | 17. Private pension liabilities As of September 30, 2020, active plans are principally accumulation of financial resources through products PGBL and VGBL structured in the form of variable contribution, for the purpose of granting participants with returns based on the accumulated capital in the form of monthly withdraws for a certain term or temporary monthly withdraws. In this respect, such financial products represent investment contracts that have the legal form of private pension plans, but which do not transfer insurance risk to the Group. Therefore, contributions received from participants are accounted for as liabilities and balance consists of the balance of the participant in the linked Specially Constituted Investment Fund (“FIE”) at the reporting date (Note 4 (a)). Changes in the period: Nine months period ended September 30, 2020 2019 As of January 1 3,759,090 16,059 Contributions received 984,816 211,396 Transfer with third party plans 5,087,561 1,466,444 Redemptions paid (162,218 ) (7,911 ) Gain (loss) from FIE (19,927 ) 35,718 As of September 30 9,649,322 1,721,706 | 21. Private pension liabilities As of December 31, 2019, active plans are principally accumulation of financial resources through products PGBL and VGBL structured in the form of variable contribution, for the purpose of granting participants with returns based on the accumulated capital in the form of monthly withdraws for a certain term or temporary monthly withdraws. In this respect, such financial products represent investment contracts that have the legal form of private pension plans but which do not transfer insurance risk to the Group. Therefore, contributions received from participants are accounted for as liabilities and balance consists of the balance of the participant in the linked FIE at the reporting date (Note 7 (a)). Changes in the period 2019 2018 As of January 1 16,059 — Contributions received 609,639 16,059 Transfer with third party plans 3,047,492 — Withdraws (20,153 ) — Interest received from FIE 106,053 — As of December 31 3,759,090 16,059 Contributions invested in FIEs 3,759,090 16,059 |
Income Tax
Income Tax | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Text Block [Abstract] | ||
Income Tax | 18. Income tax a) Deferred income tax Deferred tax assets (DTA) and deferred tax liabilities (DTL) are comprised of the main following components: Balance Sheet September 30, December 31, Tax losses carryforwards 38,616 17,146 Goodwill on business combinations (i) 28,430 22,303 Provisions for IFAs’ commissions 72,222 68,041 Revaluations of financial assets at fair value (9,993 ) 25,259 Expected losses (ii) 20,578 5,666 Financial instruments taxed on redemption (18 ) — Profit sharing plan 79,727 141,136 Net gain on hedge instruments 32,927 (36,384 ) Share based plan 47,824 2,950 Other provisions 27,339 33,284 Total 337,652 279,401 Deferred tax assets 378,726 284,533 Deferred tax liabilities (41,074 ) (5,132 ) Net change in the nine months Net change in the three months 2020 2019 2020 2019 Tax losses carryforwards 21,470 (41,725 ) 24,769 (7,064 ) Goodwill on business combinations (i) 6,127 (25,845 ) (5,861 ) (8,153 ) Provisions for IFAs’ commissions 4,181 21,103 1,718 7,698 Revaluations of financial assets at fair value (35,252 ) (9,374 ) 3,513 (1,178 ) Expected losses (ii) 14,912 1,563 4,248 1,411 Financial instruments taxed on redemption (18 ) (11,637 ) (18 ) (18,980 ) Profit sharing plan (61,409 ) 76,105 (97,272 ) (38,295 ) Net gain (loss) on hedge instruments 69,311 (1,885 ) 5,805 3,675 Share based plan 44,874 — 17,533 — Other provisions (5,945 ) 5,142 (17,750 ) 239 Total 58,251 13,447 (63,315 ) (60,647 ) (i) For tax purposes, goodwill is amortized over 5 years on a straight-line basis when the entity acquired is sold or merged into another entity. (ii) Include expected credit loss on accounts receivable, loan operations and other financial assets. The changes in the net deferred tax were recognized as follows: Nine months period ended September 30, 2020 2019 As of January 1 279,401 140,400 Foreign exchange variations 22,721 21,883 Charges to statement of income (28,561 ) (8,564 ) Tax relating to components of other comprehensive income 64,091 128 As of September 30 337,652 153,847 Unrecognized deferred taxes Deferred tax assets are recognized for tax losses to the extent that the realization of the related tax benefit against future taxable profits is probable. The Group did not recognize deferred tax assets of R$ 20,610 (September 30, 2019—R$ 18,731) mainly in respect of losses from subsidiaries overseas and that can be carried forward and used against future taxable income. A deferred tax asset was not recorded as taxable income is not expected. b) Income tax expense reconciliation The tax on the Group’s pre-tax Nine months period Three months period 2020 2019 2020 2019 Income before taxes 1,758,528 996,944 632,451 382,134 Combined tax rate in Brazil (i) 34 % 34 % 34 % 34 % Tax expense at the combined rate 597,900 338,961 215,034 129,926 Income (loss) from entities not subject to taxation (11,358 ) (8,228 ) (2,630 ) (3,659 ) Effects from entities taxed at different rates 36,792 16,208 17,630 7,170 Effects from entities taxed at different taxation regimes (ii) (285,529 ) (24,816 ) (111,061 ) (9,138 ) Intercompany transactions with different taxation (46,775 ) (27,989 ) (19,645 ) (5,711 ) Tax incentives (2,491 ) (2,220 ) (4,521 ) (2,220 ) Non deductible expenses (non-taxable (12,693 ) 8,687 (3,434 ) 4,310 Others 3,581 (2,957 ) (206 ) 658 Total 279,427 297,646 91,167 121,336 Effective tax rate 15.89 % 29.86 % 14.41 % 31.75 % Current 250,866 306,210 (6,732 ) 49,189 Deferred 28,561 (8,564 ) 97,899 72,147 Total expense 279,427 297,646 91,167 121,336 (i) Considering that XP Inc. is domiciled in Cayman and there is no income tax in that jurisdiction, the combined tax rate of 34% demonstrated above is the current rate applied to XP Investimentos S.A. which is the holding company of all operating entities of XP Inc. in Brazil. (ii) Certain eligible subsidiaries adopted the PPM tax regime and the effect of the presumed profit of subsidiaries represents the difference between the taxation based on this method and the amount that would be due based on the statutory rate applied to the taxable profit of the subsidiaries. Additionally, some entities and investment funds adopt different taxation regimes according to the applicable rules in their jurisdictions. Other comprehensive income The tax (charge)/credit relating to components of other comprehensive income is as follows: Before tax (Charge) / After tax Foreign exchange variation of investees located abroad 12,126 — 12,126 Gains (losses) on net investment hedge (17,591 ) 5,762 (11,829 ) Changes in the fair value of financial assets at fair value 1,494 (508 ) 986 As of September 30, 2019 (3,971 ) 5,254 1,283 Foreign exchange variation of investees located abroad 76,575 — 76,575 Gains (losses) on net investment hedge (121,772 ) 41,402 (80,370 ) Changes in the fair value of financial assets at fair value (56,603 ) 22,689 (33,914 ) As of September 30, 2020 (101,800 ) 64,091 (37,709 ) | 22. Income tax (a) Deferred income tax Deferred tax assets (DTA) and deferred tax liabilities (DTL) are comprised of the main following components: Balance Sheet Net change in the year 2019 2018 2019 2018 2017 Tax losses carryforwards 17,146 55,358 (38,212 ) 37,774 17,584 Goodwill on business combinations (i) 22,303 59,993 (37,690 ) (56,789 ) (51,327 ) Provisions for IFAs’ commissions 68,041 31,031 37,010 4,744 26,156 Revaluations of financial assets at fair value 25,259 1,397 23,862 (2,427 ) 4,030 Expected credit losses 5,666 3,079 2,587 (2,345 ) 4,329 Financial instruments taxed on redemption — (13,041 ) 13,041 (6,230 ) (6,811 ) Profit sharing plan 141,136 — 141,136 — — Net gain on hedge instruments (36,384 ) (1,441 ) (34,943 ) (51,423 ) 49,382 Share-base compensation 2,950 — 2,950 Other provisions 33,284 4,024 29,260 (2,572 ) 5,251 Total 279,401 140,400 139,001 (79,268 ) 48,594 Deferred tax assets 284,533 152,425 Deferred tax liabilities (5,132 ) (12,025 ) (i) For tax purposes, goodwill is amortized over 5 years on a straight-line basis when the entity acquired is sold or merged into another entity. The changes in the net deferred tax were recognized as follows: 2019 2018 2017 At January 1 140,400 219,668 171,074 Foreign exchange variations (3,461 ) (9,259 ) (1,155 ) Business combination (Note 5 (ii)) — — 3,751 Charges to statement of income 139,411 (76,455 ) 45,325 Tax relating to components of other comprehensive income 3,051 6,446 673 At December 31 279,401 140,400 219,668 Unrecognized deferred taxes Deferred tax assets are recognized for tax losses to the extent that the realization of the related tax benefit against future taxable profits is probable. The Group did not recognize deferred tax assets of R$ 18,402 (2018—R$ 12,025) mainly in respect of losses from subsidiaries overseas and that can be carried forward and used against future taxable income. (b) Income tax expense reconciliation The tax on the Group’s pre-tax 2019 2018 2017 Income before taxes 1,544,109 640,728 575,507 Combined tax rate in Brazil (a) 34,00 % 34,00 % 34,00 % Tax expense at the combined rate 524,997 217,848 195,672 Income from entities not subject to taxation (9,551 ) (3,647 ) (5,101 ) Effects from entities taxed at different rates 25,948 16,444 9,078 Effects from entities taxed at different method (b) (24,089 ) (18,183 ) (25,971 ) Intercompany transactions with different taxation (50,138 ) (38,255 ) (30,264 ) Tax incentives (9,772 ) (1,408 ) (265 ) Non-deductible (non-taxable 10,888 (689 ) 175 Others (13,658 ) 3,288 8,642 Total 454,625 175,398 151,966 Effective tax rate 29,44 % 27,20 % 26,38 % Current 594,037 98,943 197,291 Deferred (139,412 ) 76,455 (45,325 ) Total expense 454,625 175,398 151,966 (a) Considering that XP Inc. is domiciled in Cayman and there is no income tax in that jurisdiction, the combined tax rate of 34% demonstrated above is the current rate applied to XP Investimentos S.A. which is the holding company of all operanting entities of XP Inc. in Brazil. (b) Certain eligible subsidiaries adopted the PPM tax regime and the effect of the presumed profit of subsidiaries represents the difference between the taxation based on this method and the amount that would be due based on the statutory rate applied to the taxable profit of the subsidiaries. Other comprehensive income The tax (charge)/credit relating to components of other comprehensive income is as follows: Before tax (Charge) / Credit After tax Foreign exchange variation of investees located abroad 2,034 — 2,034 Gains (losses) on net investment hedge (3,124 ) 738 (2,386 ) Changes in the fair value of financial assets at fair value 275 (65 ) 210 As of December 31, 2017 (815 ) 673 (142 ) Foreign exchange variation of investees located abroad 18,645 — 18,645 Gains (losses) on net investment hedge (26,508 ) 9,013 (17,495 ) Changes in the fair value of financial assets at fair value 6,727 (2,567 ) 4,160 As of December 31, 2018 (1,136 ) 6,446 5,310 Foreign exchange variation of investees located abroad 6,823 — 6,823 Gains (losses) on net investment hedge (10,543 ) 3,410 (7,133 ) Changes in the fair value of financial assets at fair value 1,058 (360 ) 698 As of December 31, 2019 (2,662 ) 3,050 388 |
Social and Statutory Obligation
Social and Statutory Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Social and statutory obligations | 19. Social and Statutory obligations Social and Statutory obligations is mainly composed from the Group sharing program for its employees which does not extend to the Executive Board. As of December 31, 2019, the balance of unrealized gains on the balance sheet under the “Social and statutory obligations” line item is R$ 492,723 (R$ 251,690 as of December 31, 2018). 2019 2018 Obligations to non-controlling 35,666 27,137 Employee profit-sharing (a) 395,568 173,202 Salaries and other benefits payable 61,489 51,351 Total 492,723 251,690 (a) The Group has a bonus scheme for its employees based on profit sharing program as agreed under collective bargaining, which does not extend to the Executive Board. The bonus is calculated at each half of the year and payments made in the February and August. |
Tax and Social Security Obligat
Tax and Social Security Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Tax and Social Security Obligations [Abstract] | |
Tax and Social Security Obligations | 20. Tax and social security obligations 2019 2018 Income Tax (IRPJ and CSLL) (a) 264,258 69,001 Contributions over revenue (PIS and COFINS) 34,247 16,368 Taxes on services (ISS) 18,141 9,399 Contributions for Social Security (INSS) 7,712 3,368 Others 20,973 4,985 Total 345,331 103,121 Current 345,331 103,121 Non-current — — (a) The Group income tax liability is presented net of tax assets which the entities are allowed to offset during current year. The line includes current Corporate Income Tax (CIT) liability of R$ 594,037 (R$ 98,943—2018) and Prepayments CIT of R$ 361,771 (R$ 58,139—2018). The line also includes taxes that XP is responsible to pay on behalf of its clients (i.e., withholding taxes over client’s investments) in the amount of R$ 31,992 (R$ 28,197—2018). |
Securities Trading and Intermed
Securities Trading and Intermediation | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Summary of Securities Trading and Intermediation Assets and Liabilities [Abstract] | ||
Securities Trading and Intermediation | 9. Securities trading and intermediation (receivable and payable) Represented by operations at B3 on behalf of and on account of third parties, with liquidation operating cycle between D+1 and D+3. September 30, 2020 December 31, Cash and settlement records 378,727 13,823 Debtors pending settlement 967,599 477,646 Other 137,181 13,514 Total Assets 1,483,507 504,983 Cash and settlement records 378,030 474,759 Creditors pending settlement 14,781,681 8,639,787 Total Liabilities 15,159,711 9,114,546 | 17. Securities trading and intermediation Represented by operations at B3 on behalf of and on account of third parties, with liquidation operating cycle between D+1 and D+3. 2019 2018 Cash and settlement records 13,823 164,322 Debtors pending settlement 477,646 731,611 Other 13,514 2,379 Total Assets 504,983 898,312 Cash and settlement records 474,759 90,056 Creditors pending settlement 8,639,787 5,216,572 Total Liabilities 9,114,546 5,306,628 |
Equity
Equity | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Text Block [Abstract] | ||
Equity | 19. Equity (a) Issued capital The Company has an authorized share capital of US$ 35 thousand, corresponding to 3,500,000,000 authorized shares with a par value of US$ 0,00001 each of which: • 2,000,000,000 shares are designated as Class A common shares and issued; and • 1,000,000,000 shares are designated as Class B common shares and issued. The remaining 500,000,000 authorized but unissued shares are presently undesignated and may be issued by XP Inc. Board of Directors as common shares of any class or as shares with preferred, deferred or other special rights or restrictions. Therefore, the Company is authorized to increase capital up to this limit, subject to approval of the Board of Directors. As of September 30, 2020 and December 31, 2019, the Company have US$ 23 thousand of issued capital which were represented by 354,181,346 Class A common shares and 197,618,980 Class B common shares. In the IPO that took place on December 11, 2019, the Company issued 83,387,238 new Class A common shares, with a corresponding increased of US$ 2 in the issued capital of the Company. (b) Additional paid-in In December 2019, immediately prior the completion of the IPO, the Company had 257,456,251,558 Class A common shares and 251,790,558 Class B common shares of its authorized share capital issued. Class A and Class B common shares. At the Board of Directors meetings on November 30, 2019, the Company’s shareholders approved a reverse share split of 4:1 (four for one) for an initial consideration to IPO with a conversion of 2,036,988,542 into 509,247,134 shares. On the same event shareholders also approved the conversion of 30,807,911 Class B common shares of the Company into Class A common shares. In December 2019, as a result of the completion of the IPO describe in Note 1.1, 42,553,192 new Class A common shares were issued. As mentioned in Note 26, the Board of Directors approved on December 2019 a share based long-term incentive plan, which the maximum number of shares should not exceed 5% of the issued and outstanding shares. As of September 30, 2020, the Company has 3,759,867 (December 31, 2019—1,921,669) restricted share units (“RSUs”) and 2,190,377 (December 31, 2019—2,190,377) performance restricted units (“PSUs”) to be issued at the vesting date. The additional paid-in (c) Dividends distribution The Group has not adopted a dividend policy with respect to future distributions of dividends. The amount of any distributions will depend on many factors such as the Company’s results of operations, financial condition, cash requirements, prospects and other factors deemed relevant by XP Inc. board of directors and, where applicable, the shareholders. The proposal and payment of dividends recorded in the Company’s financial statements, subject to the approval of the shareholders in General Meetings. For the nine months period ended September 30, 2020, the Company has not declared and paid dividends to the shareholders. (d) Other comprehensive income Increases or decreases in value attributed to assets and liabilities are classified as equity valuation adjustments, while not being computed in the income for the period in accordance with the accrual basis as a result of their valuation at fair value. | 23. Equity (a) Issued capital The Company has an authorized share capital of US$ 35 thousand, corresponding to 3,500,000,000 authorized shares with a par value of US$ 0,00001 each of which: • 2,000,000,000 shares are designated as Class A common shares and issued; and • 1,000,000,000 shares are designated as Class B common sharesand issued. The remaining 500,000,000 authorized but unissued shares are presently undesignated and may be issued by our board of directors as common shares of any class or as shares with preferred, deferred or other special rights or restrictions.Therefore, the Company is authorized to increase capital up to this limit, subject to approval of the Board of Directors. As of December 31, 2019, the Company have US$ 23 thousand of issued capital which were represented by 354,181,346 Class A common shares and 197,618,980 Class B common shares. In the IPO that took place on December 11, 2019, the Company issued 83,387,238 new Class A common shares, with a corresponding increased of US$ 2 in the issued capital of the Company. (b) Additional paid-in In December 2019, immediately prior the completion of the IPO, we had 257,456,251,558 Class A common shares and 251,790,558 Class B common shares of our authorized share capital issued. Class A and Class B common shares, have the following rights: • Each holder of a Class B common share is entitled, in respect of such share, to 10 votes per share, whereas the holder of a Class A common share is entitled, in respect of such share, to one vote per share. • Each holder of Class A common shares and Class B common shares vote together as a single class on all matters (including the election of directors) submitted to a vote of shareholders, except as provided below and as otherwise required by law. • Class consents from the holders of Class A common shares and Class B common shares, as applicable, shall be required for any modifications to the rights attached to their respective class of shares the rights conferred on holders of Class A common shares shall not be deemed to be varied by the creation or issue of further Class B common shares and vice versa; and • the rights attaching to the Class A common shares and the Class B common shares shall not be deemed to be varied by the creation or issue of shares with preferred or other rights, including, without limitation, shares with enhanced or weighted voting rights. The Articles of Association provide that at any time when there are Class A common shares in issue, Class B common shares may only be issued pursuant to: (a) a share split, subdivision of shares or similar transaction or where a dividend or other distribution is paid by the issue of shares or rights to acquire shares or following capitalization of profits; (b) a merger, consolidation, or other business combination involving the issuance of Class B common shares as full or partial consideration; or (c) an issuance of Class A common shares, whereby holders of the Class B common shares are entitled to purchase a number of Class B common shares that would allow them to maintain their proportional ownership and voting interests in XP Inc. Below is a summary of the issuances and conversions of shares during 2019, 2018 and 2017, after giving effect to the share split mentioned before: Class A (prior Class B (prior Total Shares As of January 1, 2017 325,011,655 159,906,862 484,918,517 Transfer of classes (49,011,642 ) 49,011,642 — As of December 31, 2017 276,000,013 208,918,504 484,918,517 Issued for cash — 24,328,617 24,328,617 Transfer of classes (20,867,198 ) 20,867,198 — As of December 31, 2018 255,132,815 254,114,319 509,247,134 Corporate reorganization 30,807,911 (30,807,911 ) — Transfer of classes 25,687,428 (25,687,428 ) — Initial public offering 42,553,192 — 42,553,192 As of December 31, 2019 354,181,346 197,618,980 551,800,326 In March 2017, along with the reverse share split, shareholders also approved the conversion of 196,046,598 common shares (or 49,011,649 Class A common shares after reverse share split and reclassification) of the Company into preferred shares including the conversion of 28 preferred shares (or 7 Class B common shares after the reverse share split and reclassification) into common shares, with no contributions or changes in the share capital. On August 9, 2018, shareholders also approved the conversion of 83,468,792 (20,867,198 Class A common reverse shares after reverse share split and reclassification) of the Company into preferred shares, with no contributions or changes in the share capital. On August 31, 2018, the Company received capital contributions in the amount of R$ 673,294, upon the issuance of 97,314,470 (24,328,617 Class B common shares after reverse share split) new preferred shares. At the Board of Directors meetings on November 30, 2019, the Company’s shareholders approved a reverse share split of 4:1 (four for one) for a initial consideration to IPO with a conversion of 2,036,988,542 into 509,247,134 shares. On the same event shareholders also approved the conversion of 30,807,911 Class B common shares of the Company into Class A common shares. In December 2019, as a result of the completion of the IPO describe in Note 1.1, 42,553,192 new Class A common shares were issued. As mentioned in Note 30, the Board of Directors approved on December, 2019 a share based long-term incentive plan, which the maximum number of shares should not exceed 5% of the issued and outstanding shares. As of December 31, 2019, the Company granted 1,921,669 restricted share units (“RSUs”) and 2,190,377 performance restricted units (“PSUs”) to be issued at the vesting date. The additional paid-in (c) Dividends distribution The Group has not adopted a dividend policy with respect to future distributions of dividends. The amount of any distributions will depend on many factors such as our results of operations, financial condition, cash requirements, prospects and other factors deemed relevant by our board of directors and, where applicable, our shareholders. The proposal and payment of dividends recorded in the Company’s financial statements, subject to the approval of the shareholders in General Meetings, is detailed below: 2019 2018 2017 Net income 1,089,485 465,330 423,541 Total dividends 500,000 200,000 314,998 At January 1 — 125,000 — Amount recognized in the year 500,000 200,000 314,998 Dividends paid in the year (500,000 ) (325,000 ) (189,998 ) At December 31 — — 125,000 In 2017, shareholders decided in general meeting for distribution of dividends in total of R$ 314,998, out of which R$ 37,437 to be distributed from Other reserves. |
Related Party Transactions
Related Party Transactions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
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Related Party Transactions | 20. Related party transactions The main transactions carried with related parties, under commutative conditions, including interest rates, terms and guarantees, and period-end Assets/(Liabilities) Revenue/(Expenses) Nine months period Three months Relation and transaction September December 31, 2020 2019 2020 2019 Shareholders with significant influence (3,891,015 ) (732,420 ) (36,541 ) (14,905 ) (13,509 ) (18,863 ) Securities 105,100 123,813 9,154 7,279 1,895 2,915 Securities purchased under agreements to resell 14,999 196,009 3,557 — 650 — Accounts receivable 10,178 594 233 — (163 ) (2,270 ) Securities sold under repurchase agreements (4,000,000 ) (1,000,168 ) (48,243 ) (18,313 ) (15,514 ) (18,313 ) Borrowings (21,292 ) (52,668 ) (1,242 ) (3,871 ) (377 ) (1,195 ) Mostly represent transactions with Itaú Unibanco who became a shareholder of the Company in 2018 and since than a related party. Transactions with related parties also includes transactions among the Company and its subsidiaries in the ordinary course of operations include services rendered such as: (i) education, consulting and business advisory; (ii) financial advisory and financial consulting in general; (iii) management of resources and portfolio management; (iv) information technology and data processing; and (v) insurance. The effects of these transactions have been eliminated and do not have effects on the unaudited interim condensed consolidated financial statements. | 24. Related party transactions Transactions and remuneration of services with related parties are carried out in the ordinary course of business and under commutative conditions, including interest rates, terms and guarantees, and do not involve risks greater than normal collection or present other disadvantages. (a) Key-person Key management includes executive statutory directors, members of the Board of Directors and Executive Boards. The compensation paid or payable to key management for their services is shown below: 2019 2018 2017 Fixed compensation 4,821 3,329 2,708 Variable compensation 22,060 30,316 18,316 Total 26,881 33,645 21,024 On December 2019, the Board of Directors approved the grant of performance share unit (“PSUs”) to certain directors. The executive statutory directors of XP Inc control XP Controle Participações S.A. (b) Transactions with related parties The main transactions carried with related parties for year-end Assets/(Liabilities) Revenue/(Expenses) Relation and transaction 2019 2018 2019 2018 2017 Shareholders with significant influence (i) (732,420 ) (451,481 ) (49,779 ) (40,585 ) — Securities 123,813 69,647 10,381 147,258 — Securities purchased under agreements to resell 196,009 — 1,550 — — Accounts receivable 594 — 1,025 — — Securities sold under repurchase agreements (1,000,168 ) (426,207 ) (58,078 ) (3,586 ) — Borrowings (52,668 ) (94,921 ) (4,657 ) (184,257 ) — (i) These transactions are related to Itaú Unibanco who became shareholder of the Company in 2018 and since then a related party. Therefore, transactions and balances with Itaú Unibanco in 2017 are not being reported as transactions with related parties. Transactions with related parties also includes transactions among the Company and its subsidiaries in the course of normal operations include services rendered such as: (i) education, consulting and business advisory; (ii) financial advisory and financial consulting in general; (iii) management of resources and portfolio management; (iv) information technology and data processing; and (v) insurance. The effects of these transactions have been eliminated and do not have effects on the consolidated financial statements. |
Provisions and Contingent Liabi
Provisions and Contingent Liabilities | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
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Provisions and Contingent Liabilities | 21. Provisions and contingent liabilities The Company and its subsidiaries are party to judicial and administrative litigations before various courts and government bodies, arising from the ordinary course of operations, involving tax, civil and labor matters and other issues. Periodically, Management evaluates the tax, civil and labor and risks, based on legal, economic and tax supporting data, in order to classify the risks as probable, possible or remote, in accordance with the chances of them occurring and being settled, taking into consideration, case by case, the analyses prepared by external and internal legal advisors. September 30, December 31, Tax contingencies 10,062 9,878 Civil contingencies 3,660 2,673 Labor contingencies 2,298 2,642 Total provision 16,020 15,193 Judicial deposits (i) 10,168 18,403 (i) There are circumstances in which the Group is questioning the legitimacy of certain litigations or claims filed against it. As a result, either because of a judicial order or based on the strategy adopted by management, the Group might be required to secure part or the whole amount in question by means of judicial deposits, without this being characterized as the settlement of the liability. These amounts are classified as “Other assets” on the consolidated balance sheets and referred above for information. Changes in the provision during the period Nine months period Three months period September 30, September 30, 2020 2019 2020 2019 At the beginning of period 15,193 17,474 15,479 17,171 Monetary correction 1,472 1,499 499 809 Provision accrued 912 1,726 333 1,657 Provision reversed (965 ) (3,933 ) (78 ) (3,931 ) Payments (592 ) (1,062 ) (213 ) (2 ) At the end of period 16,020 15,704 16,020 15,704 Nature of claims a) Tax As of September 30, 2020, the Group has claims classified as probable risk of loss in the amount of R$ 10,062 (December 31, 2019—R$ 9,878), regarding social contributions on revenue (PIS and COFINS), questioning the definition of the calculation base of revenues to pay correctly. This proceeding was pending the expert technical report following the decision of the second instance court to grant the right to provide evidence and send the proceeding back to the lower court. These lawsuits are supported by court deposits in its entirety. b) Civil The majority of the civil claims involve matters that are normal and specific to the business, and refer to demands for indemnity primarily due to: (i) financial losses in the stock market; (ii) portfolio management; and (iii) alleged losses generated from the liquidation of costumers assets in portfolio due to margin cause and/or negative balance. As of September 30, 2020, there were 58 civil claims for which the likelihood of loss has been classified as probable, in the amount of R$ 3,660 (December 31, 2019—R$ 2,673). An amount of R$ 112 was deposited in court as of September 30, 2020 (December 31, 2019—R$ 9,744). c) Labor Labor claims to which the Group is party primarily concern: (i) the existence (or otherwise) of a working relationship between the Group and IFAs; and (ii) severance payment of former employees. As of September 30, 2020, the Company and its subsidiaries are the defendants in approximately 9 cases involving labor matters for which the likelihood of loss has been classified as probable, in the amount of R$ 2,298 (December 31, 2019—R$2,642). Contingent liabilities—probability of loss classified as possible In addition to the provisions constituted, the Company and its subsidiaries have several labor, civil and tax contingencies in progress, in which they are the defendants, and the likelihood of loss, based on the opinions of the internal and external legal advisors, is considered possible. These contingencies are not recorded as provisions. As of September 30 2020, for claims classified as possible loss the estimated risk is approximately R$ 191,941 (December 31, 2019—R$ 153,951). Below is summarized these possible claims by nature: September 30, December 31, Tax (i) 70,700 69,386 Civil (ii) 114,669 81,414 Labor 6,572 3,151 Total 191,941 153,951 (i) In December 2019, the Group was notified by tax authorities for a requirement of social security contributions due to employee profit sharing payments related to the calendar year 2015, allegedly in violation of Brazilian Law 10,101/00. Currently, the first appeal was denied by the first administrative level of the Revenue Service Office. The Group will provide the ordinary appeal to Administrative Council of Tax Appeals (“CARF”). There are other favorable CARF precedents on the subject and the Group obtained legal opinions that support the Group’s defense and current practice. (ii) The Group is defendant in 592 civil claims by customers and investment agents, mainly related to portfolio management, risk rating, copyrights and contract termination. The total amount represents the collective maximum value to which the Group is exposed based on the claims’ amounts monetarily restated. | 25. Provisions and contingent liabilities The Company and its subsidiaries are party to judicial and administrative litigations before various courts and government bodies, arising from the normal course of operations, involving tax, civil and labor matters and other issues. Periodically, Management evaluates the tax, civil and labor and risks, based on legal, economic and tax supporting data, in order to classify the risks as probable, possible or remote, in accordance with the chances of them occurring and being settled, taking into consideration, case by case, the analyses prepared by external and internal legal advisors. 2019 2018 Tax contingencies 9,878 9,392 Civil contingencies 2,673 5,610 Labor contingencies 2,642 2,472 Total provision 15,193 17,474 Judicial deposits (a) 18,403 14,850 (a) There are circumstances in which the Group is questioning the legitimacy of certain litigations or claims filed against us. As a result, either because of a judicial order or based on the strategy adopted by management, the Group might be required to secure part or the whole amount in question by means of judicial deposits, without this being characterized as the settlement of the liability. These amounts are classified as “Other assets” on the consolidated balance sheets, and referred above for information. Changes in the provision during the year 2019 2018 2017 Balance at January 1 17,474 11,843 5,334 Monetary correction 2,492 1,667 2,226 Provision/(Reversal) (1,601 ) 7,897 3,531 Business combination (Note 5 (ii)) — — 7,921 Payments (3,172 ) (3,933 ) (7,169 ) Balance at December 31 15,193 17,474 11,843 Nature of claims a) Tax As of December 31, 2019, the Group has claims classified as probable risk of loss in the amount of R$ 9,878 (December 31, 2018—R$ 9,392), regarding social contributions on revenue (PIS and COFINS), questioning the exclusion of this own taxes on the calculation basis over revenues. In accordance with Brazilian laws and tax regulations, this practice is legal for VAT (ICMS) taxes, and other companies have recently obtained significant success in applying this concept for PIS and COFINS taxes. These lawsuits are supported by court deposits in its entirety. b) Civil The majority of the civil claims involve matters that are normal and specific to the business, and refer to demands for indemnity primarily due to: (i) financial losses in the stock market; (ii) portfolio management; and (iii) alleged losses generated from the liquidation of costumers assets in portfolio due to margin cause and/or negative balance. As of December 31, 2019, there were 29 civil claims for which the likelihood of loss has been classified as probable, in the amount of R$ 2,673 (December 31, 2018 - R$ 5,610). An amount of R$ 9,744 was deposited in court as of December 31, 2019 (December 31, 2018 – R$ 4,500). c) Labor Labor claims to which the Group is party primarily concern: (i) the existence (or otherwise) of a working relationship between the Group and IFAs; and (ii) severance payment of former employees. As of December 31, 2019, the Company and its subsidiaries are the defendants in approximately 9 cases involving labor matters for which the likelihood of loss has been rated as probable, in the amount of R$ 2,642 (December 31, 2018 - R$ 2,472). Contingent liabilities—probability of loss classified as possible In addition to the provisions constituted, the Company and its subsidiaries have several labor, civil and tax contingencies in progress, in which they are the defendants, and the likelihood of loss, based on the opinions of the internal and external legal advisors, is considered possible, and the contingencies amount to approximately R$ 153,951 (December 31, 2018 - R$ 89,323). Below is summarized these claims by nature: 2019 2018 Tax (i) 69,386 19,971 Civil (ii) 81,414 64,820 Labor 3,151 4,532 Total 153,951 89,323 (i) In December 2019, the Group was notified by tax authorities for a requirement of social security contributions due to employee profit sharing payments related to the calendar year 2015, allegedly in violation of Brazilian Law 10,101/00. Currently, the case at administrative level in assessment by the Administrative Council of Tax Appeals (“CARF”), awaiting the decision on the Group’s appeal. There are other favorable CARF precedents on the subject and the Group obtained legal opinions that support the Group’s defense and current practice. (ii) The Group is defendant in 6 civil claims by customers and investment agents, mainly related to portfolio management, risk rating, copyrights and contract termination. The total amount represents the collective maximum value to which the Group is exposed based on the claims’ amounts monetarily restated. |
Total revenue and income
Total revenue and income | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
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Total revenue and income | 22. Total revenue and income a) Net revenue from services rendered Revenue from contracts with customers derives mostly from services rendered and fees charged at daily transactions from customers, therefore mostly recognized at a point in time. Disaggregation of revenue by major service lines are as follows: Nine months period ended Three months period ended 2020 2019 2020 2019 Major service lines Brokerage commission 1,595,435 935,998 547,862 349,554 Securities placement 922,057 693,198 388,283 328,224 Management fees 809,024 591,591 274,353 207,070 Insurance brokerage fee 74,299 69,367 17,624 27,344 Educational services 95,627 75,037 25,474 32,782 Other services 334,470 212,874 155,063 85,388 Gross revenue from services rendered 3,830,912 2,578,065 1,408,659 1,030,362 (-) Sales taxes and contributions on services (i) (337,681 ) (236,965 ) (130,914 ) (86,324 ) 3,493,231 2,341,100 1,277,745 944,038 (i) Mostly related to taxes on services (ISS) and contributions on revenue (PIS and COFINS). b) Net income from financial instruments Nine months period ended September 30, Three months period ended September 30, 2020 2019 2020 2019 Net income from financial instruments at fair value through profit or loss 2,007,466 913,110 647,076 395,838 Net income from financial instruments measured at amortized cost and at fair value through other comprehensive income 303,388 204,023 189,527 26,513 Total income from financial instruments 2,310,854 1,117,133 836,603 422,351 (-) Taxes and contributions on financial income (47,578 ) (21,720 ) (13,611 ) (10,465 ) 2,263,276 1,095,413 822,992 411,886 c) Disaggregation by geographic location Breakdown of total net revenue and income and selected assets by geographic location: Nine months period ended Three months period 2020 2019 2020 2019 Brazil 5,156,387 3,207,076 1,721,542 1,273,565 United States 570,738 205,830 368,524 74,917 Europe 29,382 23,607 10,671 7,442 Net revenue and income 5,756,507 3,436,513 2,100,737 1,355,924 September 30, December 31, Brazil 1,175,503 1,208,737 United States 375,565 224,244 Europe 29,634 16,476 Selected assets (i) 1,580,702 1,449,457 (i) Selected assets are total assets of the Group, less: cash, financial assets and deferred tax assets and are presented by geographic location. None of the customers represented more than 10% of Group’s revenues for the periods presented. | 26. Total revenue and income a) Net revenue from services rendered Revenue from contracts with customers derives mostly from services rendered and fees charged at daily transactions from customers, therefore mostly recognized at a point in time. Disaggregation of revenue by major service lines are as follows: 2019 2018 2017 Major service lines Brokerage commission 1,288,135 861,068 639,615 Securities placement 1,154,786 631,949 401,402 Management fees 1,035,224 527,644 221,936 Insurance brokerage fee 106,438 56,713 29,167 Educational services 97,986 42,653 18,682 Other services 275,467 160,409 111,647 3,958,036 2,280,436 1,422,449 (-) Sales taxes and contributions on revenue (i) (362,264 ) (225,887 ) (138,833 ) 3,595,772 2,054,549 1,283,616 (i) Mostly related to taxes on services (ISS) and contributions on revenue (PIS and COFINS). b) Net income from financial instruments 2019 2018 2017 Net Income of financial instruments at fair value through profit or loss 1,360,207 821,617 562,895 Net Income of financial instruments measured at amortized cost and at fair value through other comprehensive income 199,947 114,442 79,380 (-) Taxes and contributions on financial income (28,118 ) (32,155 ) (19,241 ) 1,532,036 903,904 623,034 c) Disaggregation by geographic location 2019 2018 2017 Brazil 4,790,236 2,716,459 1,751,419 United States 307,456 204,207 131,198 Europe 30,116 37,787 24,033 Total Revenue and Income 5,127,808 2,958,453 1,906,650 2019 2018 Brazil 1,208,737 881,434 United States 224,244 31,829 Europe 16,476 7,556 Selected assets (i) 1,449,457 920,819 (i) Selected assets are Total assets of the Company, less: financial assets and deferred tax assets and are presented by geographic location. None of the clients represented more than 10% of our revenues for the periods presented. |
Operating costs
Operating costs | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
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Operating costs | 23. Operating costs Nine months period ended Three months period 2020 2019 2020 2019 Commission and incentive costs 1,442,670 877,502 549,249 353,825 Operating losses and provisions 65,584 14,825 16,984 7,344 Clearing house fees 240,806 141,251 104,922 54,796 Other costs (a) 115,003 85,389 34,865 28,993 Total 1,864,063 1,118,967 706,020 444,958 (a) Other cost include third parties’services and other costs. | 27. Operating costs 2019 2018 2017 Commission costs 1,269,309 750,103 455,241 Operating losses and provisions 23,332 9,989 7,148 Other costs 313,419 181,154 117,491 Clearing house fees 201,083 96,896 71,419 Third parties’ services 76,669 53,124 28,953 Other 35,667 31,134 17,119 Total 1,606,060 941,246 579,880 |
Operating expenses by nature
Operating expenses by nature | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
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Operating expenses by nature | 24. Operating expenses by nature Nine months period ended Three months period 2020 2019 2020 2019 Selling Expenses (a) 94,367 82,419 38,322 30,104 Administrative expenses 2,077,587 1,294,039 809,596 481,605 Personnel expenses 1,484,596 859,653 577,614 291,485 Compensation 565,640 256,323 203,419 107,474 Employee profit-sharing and bonus 566,353 466,219 240,763 127,591 Executives profit-sharing 156,988 50,230 52,662 20,415 Other personnel expenses (b) 195,615 86,881 80,770 36,005 Other taxes expenses 26,193 29,699 9,907 11,419 Depreciation of property and equipment and right-of-use 52,972 38,409 16,928 14,094 Amortization of intangible assets 52,928 23,992 19,451 9,361 Data processing 212,074 124,260 89,018 49,775 Technical services 66,284 39,560 25,563 13,102 Third parties’ services 116,086 112,571 43,663 65,854 Other administrative expenses (c) 66,454 65,895 27,452 26,515 Total 2,171,954 1,376,458 847,918 511,709 (a) Selling expenses refers to advertising and publicity. (b) Other personnel expenses include benefits, social charges and others. (c) Other administrative expenses include rent, communication and travel expenses, legal and judicial and other expenses. | 28. Operating expenses by nature 2019 2018 2017 Selling expenses 155,115 96,075 32,881 Advertising and publicity 155,115 96,075 32,881 Administrative expenses 1,891,481 1,176,805 649,585 Personnel expenses 1,261,887 712,060 428,772 Compensation 408,394 221,746 134,535 Employee profit-sharing and bonus 645,992 356,938 217,982 Executives profit-sharing 67,547 50,656 28,802 Benefits 47,457 35,922 16,697 Social charges 88,960 45,115 28,836 Other 3,537 1,683 1,920 Other taxes expenses 39,691 43,945 20,749 Depreciation of property and equipment and right-of-use 53,530 26,278 9,338 Amortization of intangible assets 37,630 26,510 18,065 Other administrative expenses 498,743 368,012 172,661 Data processing 178,860 130,678 71,861 Technical services 85,782 76,476 26,985 Third parties’ services 145,730 63,333 19,006 Rent expenses 10,575 41,950 16,492 Communication 17,495 11,457 11,276 Travel 21,676 13,804 9,791 Legal and judicial 3,406 9,023 2,638 Other 35,219 21,291 14,612 Total 2,046,596 1,272,880 682,466 |
Other operating income (expense
Other operating income (expenses), net | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Text Block [Abstract] | ||
Other operating income (expenses), net | 25. Other operating income (expenses), net Nine months period Three months period 2020 2019 2020 2019 Other operating income 273,809 152,674 196,445 18,588 Revenue from incentives from Tesouro Direto, B3 and Others (a) 258,306 52,069 190,900 13,020 Other operating income (b) 15,503 100,605 5,545 5,568 Other operating expenses (188,823 ) (34,187 ) (98,644 ) (11,230 ) Legal, administrative proceedings and agreement with customers (43,844 ) (3,503 ) (36,262 ) (1,790 ) Losses on write-off (59,216 ) (6,583 ) (29,809 ) (48 ) Charity (40,512 ) (5,917 ) (13,668 ) (1,842 ) Other operating expenses (c) (45,251 ) (18,184 ) (18,905 ) (7,550 ) Total 84,986 118,487 97,801 7,358 (a) Includes incentives received from third parties, mainly due to the joint development of retail products, and also the association of such entities with the XP ecosystem. (b) Other operating income include recovery of charges and expenses, reversal of operating provisions, interest received on tax and others. (c) Other operating expenses include fines and penalties, association and regulatory fees and other expenses. | 29. Other operating income, net 2019 2018 2017 Other operating income 208,245 20,682 23,764 Recovery of charges and expenses 53,453 6,873 3,165 Reversal of operating provisions 9,767 2,641 2,684 Revenue from incentives from Tesouro Direto and B3 101,615 9,931 4,226 Other 43,410 1,237 13,689 Other operating expenses (54,888 ) (51,971 ) (31,468 ) Legal proceedings and agreement with customers (9,499 ) (16,385 ) (18,370 ) Tax incentive expenses (10,265 ) (2,015 ) (2,980 ) Losses on write-off (7,060 ) (11,064 ) (1,503 ) Fines and penalties (1,191 ) (7,446 ) (2,755 ) Associations and regulatory fees (4,216 ) (3,059 ) (2,073 ) Charity (6,751 ) (5,938 ) (50 ) Other (15,906 ) (6,064 ) (3,737 ) Total 153,357 (31,289 ) (7,704 ) |
Share-Based Plan
Share-Based Plan | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Sharebased plan [Abstract] | ||
Share-Based Plan | 26. Share-based plan a) Share-based Plan The establishment of the Plan was approved by the Board of Director’s meeting on December 6, 2019 and the first grant of RSUs and PSUs was on December 10, 2019. Under the Restricted Stock Unit plan, stocks are awarded at no cost to the recipient upon their grant date. RSUs are granted semi-annually, their vesting conditions are service related and they vest at a rate of 20% after three years, 20 60 Under the Performance Share Unit, stocks are awarded at no cost to eligible participants and their vesting conditions are based on five-year period metrics and also based on the total shareholder return (TSR), including share price growth, dividends and capital returns. If an eligible participant ceases to be employed by the Company, within the vesting period, the rights will be forfeited, except in limited circumstances that are approved by the board on a case-by-case Once the PSUs are vested, the shares of common stock that are delivered must be held for an additional one-year b) Fair value of shares granted Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model and underlying assumptions, which depends on the terms and conditions of the grant and the information available at the grant date. The Company uses certain methodologies to estimate fair value which include the following: • Estimation of fair value based on equity transactions with third parties close to the grant date; and • Other valuation techniques including share pricing models such as Monte Carlo. These estimates also require determination of the most appropriate inputs to the valuation models including assumptions regarding the expected life of a share-based payment or appreciation right, expected volatility of the price of the Group’s shares and expected dividend yield. c) Outstanding shares granted and valuation inputs The maximum number of shares available for issuance under the share-based plan shall not exceed 5 5,950,244 4,112,046 3,759,867 1,921,669 2,190,377 2,190,377 For the nine and three months period ended September 2020 , total compensation expense of both plans were R$ 113,464 44,352 34,917 12,578 The original weighted-average grant-date fair value of RSU and PSU shares was US$ 27 34.56 52.41 45,92 During the nine months period ended September 30, 2020, there were 298,750 1,934,000 | 30. Share-based plan a) Share-based Plan The establishment of the Plan was approved by the Board of Director’s meeting on December 6, 2019 and the first grant of RSUs and PSUs was on December 10, 2019. Under the Restricted Stock Unit plan, stocks are awarded at no cost to the recipient upon their grant date. RSUs are granted semi-annually, their vesting conditions are service related and they vest at a rate of 20% after three years, 20% after four years, and 60% after five years. After the vesting periods, common shares will be issued to the recipients. For the PSUs, the vesting is the following: (i) 33% will vest on the third year after the grant, (ii) 33%% will vest on the fourth year after the grant and (iii) 34% will vest on the fifth year after the grant date. Under the Performance Share Unit, stocks are granted to eligible participants and their vesting conditions are based on five-year period metrics and also based on the total shareholder return (TSR), including share price growth, dividends and capital returns. If an elegible participant ceases to be employed by the Company, within the vesting period, the rights will be forfeited, except in limited circumstances that are approved by the board on a case-bycase basis. Once the PSUs are vested, the shares of common stock that are delivered must be held for an additional one-year b) Fair value of shares granted Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model and underlying assumptions, which depends on the terms and conditions of the grant and the information available at the grant date. The Company uses certain methodologies to estimate fair value which include the following: • Estimation of fair value based on equity transactions with third parties close to the grant date; and • Other valuation techniques including share pricing models such as Monte Carlo. These estimates also require determination of the most appropriate inputs to the valuation models including assumptions regarding the expected life of a share-based payment or appreciation right, expected volatility of the price of the Group’s shares and expected dividend yield. c) Outstanding shares granted and valuation inputs The maximum number of shares available for issuance under the share-based plan shall not exceed 5% of the issued and outstanding shares. As of December 31, 2019, the outstanding number of Company reserved under the plans were 4,112,046 including 1,921,669 RSUs and 2,190,377 PSUs. For the year ended December 31, 2019, total compensation expense of both plans were R$7,502, including R$ 2,131 of tax provisions and does not include any tax benefits on total share-based compensation expense once, this expense is not deductible for tax purposes. The tax benefits will be perceived when the shares are converted into common shares. The weighted-average grant-date fair value of RSU and PSU shares was US$27 and US$ 34,56 respectively. There was no shares exercised, forfeited, expired or vested during 2019. |
Earnings Per Share (Basic And D
Earnings Per Share (Basic And Diluted) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Earnings per share basic and diluted [Abstract] | ||
Earnings Per Share (Basic And Diluted) | 27. Earnings per share (basic and diluted) The Company implemented a four-to-one The following table reflects the net income and share data used in the basic and diluted earnings per share (“EPS”) calculations: Nine months period Three months period 2020 2019 2020 2019 Net income 1,475,613 692,011 540,434 257,814 Basic weighted average quantity of shares (a) 551,800 509,247 551,800 509,247 Basic earnings per share—R$ 2.6742 1.3589 0.9794 0.5063 Share-based incentive program 4,323 — 4,774 — Diluted weighted average quantity of shares 556,574 509,247 556,574 509,247 Diluted earnings per share—R$ 2.6534 1.3589 0.9710 0.5063 (a) Thousands of shares. | 31. Earnings per share (basic and diluted) The Company implemented a four-to-one 2019 2018 2017 Net income 1,080,484 461,440 413,874 Basic weighted average quantity of shares (1) 511,462 493,117 484,919 Basic earnings per share 2,1125 0,9358 0,8535 Share-based incentive program (1)(2) 248 — — Diluted weighted average quantity of shares (1) 511,710 493,117 484,919 Diluted earnings per share 2,1115 0,9358 0,8535 (1) Thousands of shares. (2) See Note 30. |
Determination Of Fair Value
Determination Of Fair Value | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Determination of fair value [Abstract] | ||
Determination Of Fair Value | 28. Determination of fair value The Group measures financial instruments such as certain financial investments and derivatives at fair value at each balance sheet date. Level 1: The fair value of financial instruments traded in active markets is based on quoted market prices at the end of the reporting period. The financial instruments included in the level 1 consist mainly in public financial instruments and financial instruments negotiated on active markets (i.e. Stock Exchanges). Level 2: The fair value of financial instruments that are not traded in active markets is determined using valuation techniques, which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value as instrument are directly or indirectly observable, the instrument is included in level 2. The financial instruments classified as level 2 are composed mainly from private financial instruments and financial instruments negotiated in a secondary market. Level 3: If one or more of the significant inputs is unobservable, the instrument is included in level 3. This is the case for unlisted equity securities. Specific valuation techniques used to value financial instruments include: • Financial assets (other than derivatives)—The fair value of securities is determined by reference to their closing prices on the date of presentation of the consolidated financial statements. If there is no market price, fair value is estimated based on the present value of future cash flows discounted using the observable rates and market rates on the date of presentation. • Swap—These operations swap cash flow based on the comparison of profitability between two indexers. Thus, the agent assumes both positions—put in one indexer and call on another. • Forward—at the market quotation value, and the installments receivable or payable are prefixed to a future date, adjusted to present value, based on market rates published at B3. • Futures—Foreign exchange rates, prices of shares and commodities are commitments to buy or sell a financial instrument at a future date, at a contracted price or yield and may be settled in cash or through delivery. Daily cash settlements of price movements are made for all instruments. • Options—option contracts give the purchaser the right to buy the instrument at a fixed price negotiated at a future date. Those who acquire the right must pay a premium to the seller. This premium is not the price of the instrument, but only an amount paid to have the option (possibility) to buy or sell the instrument at a future date for a previously agreed price. • Other financial assets and liabilities—Fair value, which is determined for disclosure purposes, is calculated based on the present value of the principal and future cash flows, discounted using the observable rates and market rates on the date the financial statements are presented. • Loans—Fair value is determined through the present value of expected future cash flows discounted using the observable rates and market rates on the date the financial statements are presented. • Contingent consideration: Fair value of the contingent consideration liability related to acquisitions is estimated by applying the income approach and discounting the expected future payments to selling shareholders under the terms of the purchase and sale agreements. Below are the Group financial assets and liabilities by level within the fair value hierarchy. The Group assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels: September 30, 2020 Level 1 Level 2 Level 3 Fair Value Book Value Financial Assets Financial assets at Fair value through profit or loss Securities 35,825,631 2,875,888 — 38,701,519 38,701,519 Derivative financial instruments 7,451 13,141,316 — 13,148,767 13,148,767 Fair value through other comprehensive income Securities 9,588,773 — — 9,588,773 9,588,773 Evaluated at amortized cost Securities — 1,371,040 — 1,371,040 1,366,038 Securities purchased under agreements to resell — 18,229,920 — 18,229,920 18,243,688 Securities trading and intermediation — 1,483,507 — 1,483,507 1,483,507 Accounts receivable — 251,194 — 251,194 251,194 Loan operations — 1,392,375 — 1,392,375 1,369,234 Other financial assets — 280,279 — 280,279 280,279 Financial liabilities Fair value through profit or loss Securities loaned 1,111,770 — — 1,111,770 1,111,770 Derivative financial instruments 19,745 12,709,851 — 12,729,596 12,729,596 Evaluated at amortized cost Securities sold under repurchase agreements — 35,192,715 — 35,192,715 35,253,928 Securities trading and intermediation — 15,159,711 — 15,159,711 15,159,711 Deposits — 1,573,958 — 1,573,958 1,626,709 Structured operations certificates — 1,142,457 — 1,142,457 1,142,457 Borrowings and lease liabilities — 565,723 — 565,723 511,981 Debentures — 331,981 — 331,981 338,693 Accounts payables — 655,117 — 655,117 655,117 Other financial liabilities — 396,878 462,000 858,878 858,878 46,553,370 106,753,910 462,000 153,769,280 153,821,839 December 31, 2019 Level 1 Level 2 Fair Value Book Value Financial Assets Financial assets at Fair value through profit or loss Securities 20,277,031 2,166,361 22,443,392 22,443,392 Derivative financial instruments 21,809 4,063,195 4,085,004 4,085,004 Fair value through other comprehensive income Securities 2,616,118 — 2,616,118 2,616,118 Evaluated at amortized cost Securities — 3,914,923 3,914,923 2,266,971 Securities purchased under agreements to resell — 9,490,090 9,490,090 9,490,090 Securities trading and intermediation — 504,983 504,983 504,983 Accounts receivable — 462,029 462,029 462,029 Loan operations — 386 386 386 Other financial assets — 19,805 19,805 19,805 Financial liabilities Fair value through profit or loss Securities loaned 2,021,707 — 2,021,707 2,021,707 Derivative financial instruments — 3,229,236 3,229,236 3,229,236 Evaluated at amortized cost Securities sold under repurchase agreements — 15,638,407 15,638,407 15,638,407 Securities trading and intermediation — 9,114,546 9,114,546 9,114,546 Borrowings and lease liabilities — 633,781 633,781 637,484 Debentures — 836,001 836,001 835,230 Accounts payables — 266,813 266,813 266,813 Structured operations certificates — 19,474 19,474 19,474 Other financial liabilities — 79,127 79,127 79,157 24,936,665 50,439,157 75,375,822 72,979,125 As of September 30, 2020, the total contingent consideration liability is reported at fair value and is dependent on the profitability of the acquired associate (VPL) and businesses (Flipper and Antecipa) is classified within Level 3 of the fair value hierarchy. The contigent consideration liability represents the maximum amount payable under the purchase and sale agreements discounted using a weighted average rate of 8.9% p.a. Change in the discount rate by 100 bps would increase/decrease the fair value by R$22,500. The change in the fair value in the contingent consideration between the acquisition date and September 30, 2020 was not material. Transfers into and out of fair value hierarchy levels are analysed at the end of each consolidated financial statements. As of September 30, 2020 the Group had no transfers between Level 2 and Level 3. | 32. Determination of fair value The Group measures financial instruments such as certain financial investments and derivatives at fair value at each balance sheet date. Level 1: The fair value of financial instruments traded in active markets is based on quoted market prices at the end of the reporting period. The financial instruments included in the level 1 consist mainly in public financial instruments and financial instruments negotiated on active markets (i.e., Stock Exchanges). Level 2: The fair value of financial instruments that are not traded in active markets is determined using valuation techniques, which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value as instrument are directly or indirectly observable, the instrument is included in level 2. The financial instruments classified as level 2 are composed mainly from private financial instruments and financial instruments negotiated in a secondary market. Level 3: If one or more of the significant inputs is unobservable, the instrument is included in level 3. This is the case for unlisted equity securities. As of December 31, 2019, 2018 and 2017 there were no financial instruments classified as level 3. Fair values have been assessed for purposes of measurement based on the methods below, (a) Cash and cash equivalents, Securities purchased under agreements to resell and Securities sold under repurchase agreements The fair value of cash and cash equivalents, securities purchased under agreements to resell and securities sold under repurchase agreements approximates the carrying amount. (b) Financial assets (other than derivatives) The fair value of securities is determined by reference to their closing prices on the date of presentation of the consolidated financial statements. If there is no market quotation, fair value is estimated based on the present value of future cash flows discounted using the observable rates and market rates on the date of presentation. (c) Derivative financial instruments Criteria and methodologies for calculating the fair value of derivative financial instruments are described in Note 8. (d) Other financial assets and liabilities Fair value, which is determined for disclosure purposes, is calculated based on the present value of the principal and future cash flows, discounted using the observable rates and market rates on the date the financial statements are presented. Financial instruments not measured at fair value (securities trading and intermediation, accounts receivable and accounts payables) were not disclosed as their carrying amounts approximates their fair values. Below are the Group financial assets and liabilities by level within the fair value hierarchy. The Group assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels: 2019 Level 1 Level 2 Fair Value Book Value Financial Assets Financial assets at Fair value through profit or loss Securities 20,277,031 2,166,361 22,443,392 22,443,392 Derivative financial instruments 21,809 4,063,195 4,085,004 4,085,004 Fair value through other comprehensive income Securities 2,616,118 — 2,616,118 2,616,118 Evaluated at amortized cost Securities — 3,914,923 3,914,923 2,266,971 Securities purchased under agreements to resell — 9,490,090 9,490,090 9,490,090 Securities trading and intermediation — 504,983 504,983 504,983 Accounts receivable — 462,029 462,029 462,029 Other financial assets — 20,191 20,191 20,191 Financial liabilities Fair value through profit or loss Securities loaned 2,021,707 — 2,021,707 2,021,707 Derivative financial instruments — 3,229,236 3,229,236 3,229,236 Evaluated at amortized cost Securities sold under repurchase agreements — 15,638,407 15,638,407 15,638,407 Securities trading and intermediation — 9,114,546 9,114,546 9,114,546 Borrowings and lease liabilities — 633,781 633,781 637,484 Debentures — 836,001 836,001 835,230 Accounts payables — 266,813 266,813 266,813 Other financial liabilities — 98,601 98,601 98,631 2018 Level 1 Level 2 Fair Value Book Value Financial Assets Financial assets at Fair value through profit or loss Securities 5,259,591 1,031,380 6,290,971 6,290,971 Derivative financial instruments 6,599 1,685,432 1,692,031 1,692,031 Fair value through other comprehensive income Securities 695,778 — 695,778 695,778 Evaluated at amortized cost Securities — 153,709 153,709 155,292 Securities purchased under agreements to resell — 6,568,246 6,568,246 6,570,609 Securities trading and intermediation — 898,312 898,312 898,312 Accounts receivable — 219,200 219,200 219,200 Other financial assets — 60,423 60,423 60,423 Financial liabilities Fair value through profit or loss Securities loaned 1,259,579 — 1,259,579 1,259,579 Derivative financial instruments — 991,399 991,399 991,399 Evaluated at amortized cost Securities sold under repurchase agreements — 6,792,316 6,792,316 6,640,694 Securities trading and intermediation — 5,306,628 5,306,628 5,306,628 Borrowings — 459,487 459,487 469,609 Debentures — 406,540 406,540 406,538 Accounts payables — 134,579 134,579 134,579 Other financial liabilities — 7,011 7,011 7,011 |
Management Of Financial Risks A
Management Of Financial Risks And Financial Instruments | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure Of Management Of Financial Risks And Financial Instruments [Abstract] | ||
Management Of Financial Risks And Financial Instruments | 29. Management of financial risks and financial instruments The Group’s activities are exposed to a variety of financial risks: credit risk, liquidity risk, market risk (including currency risk, interest rate risk and price risk), and operating risk. The Group’s overall risk management structure focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial performance. The Group uses derivative financial instruments to mitigate certain risk exposures. It is the Group’s policy that no trading in derivatives for speculative purposes may be undertaken. Management has overall responsibility for establishing and supervising the risk management structure of the Group. Risk Management is under a separated structure from business areas, reporting directly to senior management, to ensure exemption of conflict of interest, and segregation of functions appropriate to good corporate governance and market practices. The risk management policies of the Group are established to identify and analyze the risks faced, to set appropriate risk limits and controls, and to monitor risks and adherence to the limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and in the activities of the Group. The Group, through its training and management standards and procedures, developed a disciplined and constructive control environment within which all its employees are aware of their duties and obligations. Regarding one specific subsidiary XP CCTVM, the organizational structure is based on the recommendations proposed by the Basel Accord, in which procedures, policies and methodology are formalized consistent with risk tolerance and with the business strategy and the various risks inherent to the operations and/or processes, including market, liquidity, credit and operating risks. The Group seek to follow the same risk management practices as those applying to all companies. Such risk management processes are also related to going concern management procedures, mainly in terms of formulating impact analyses, business continuity plans, contingency plans, backup plans and crisis management. The unaudited interim condensed consolidated financial statements do not include all financial risk management information and disclosures required in the annual financial statements; they should be read in conjunction with the Group’s annual financial statements as of December 31, 2019. There have been no changes in the risk management department or in any risk management policies since the year-end. | 33. Management of financial risks and financial instruments (a) Overview The Group is exposed to the following risks: (i) Credit risk; (ii) Liquidity risk; (iii) Market risk; • Currency risk; • Interest rate risk; • Price risk. (iv) Operating risk. (b) Risk management structure Management has overall responsibility for establishing and supervising the risk management structure of the Group. Risk Management is under a separated structure from business areas, reporting directly to senior management, to ensure exemption of conflict of interest, and segregation of functions appropriate to good corporate governance and market practices. The risk management policies of the Group are established to identify and analyze the risks faced, to set appropriate risk limits and controls, and to monitor risks and adherence to the limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and in the activities of the Group. The Group, through its training and management standards and procedures, developed a disciplined and constructive control environment within which all its employees are aware of their duties and obligations. Regarding the subsidiary XP CCTVM and the others subsidiaries components of XP Prudential Conglomerate (Brazilian Central Bank oversight definition), the organizational structure is based on the recommendations proposed by the Basel Accord, in which procedures, policies and methodology are formalized consistent with risk tolerance and with the business strategy and the various risks inherent to the operations and/or processes, including market, liquidity, credit and operating risks. The Group seek to follow the same risk management practices as those applying to all companies. Such risk management processes are also related to going concern management procedures, mainly in terms of formulating impact analyses, business continuity plans, contingency plans, backup plans and crisis management. (c) Credit risk Credit risk is defined as the possibility of losses associated with the failure, by the borrower or counterparty, of their respective financial obligations under the agreed terms, the devaluation of the credit agreement resulting from the deterioration in the borrower’s risk rating, the reduction gains or remuneration, the advantages granted in the negotiation and the costs of recovery. The Risk Management document establishes its credit policy based on the composition of the portfolio by security, by internal rating of issuer and/or the issue, by the current economic activity, by the duration of the portfolio, by the macroeconomic variables, among others. The Credit Analysis department is also actively involved in this process and it is responsible for assessing the credit risk of issues and issuers with which it maintains or intends to maintain credit relationships, also using an internal credit risk allocation methodology (rating) to classify the likelihood of loss of counterparties. Management undertakes credit quality analysis of assets that are not past due or reduced to recoverable value. As of December 31, 2019 and 2018, such assets were substantially represented by Securities purchased under agreements to resell of which the counterparties are Brazilian banks with low credit risk, securities issued by the Brazilian government, as well as derivative financial instruments transactions, which are mostly traded on the stock exchange (B3 S.A. – Brasil, Bolsa, Balcão) and which, therefore, have its guarantee. The carrying amount of the financial assets representing the maximum exposure to credit risk is shown in the table below: 2019 2018 Financial assets Securities purchased under agreements to resell 9,490,090 6,570,609 Securities 27,326,481 7,142,041 Public securities 20,381,125 4,704,604 Private securities 6,945,356 2,437,437 Derivative financial instruments 4,085,004 1,692,031 Securities trading and intermediation 504,983 898,312 Accounts receivable 462,029 219,200 Other financial assets 20,191 60,423 Total 41,888,778 16,582,616 (d) Liquidity risk Liquidity risk is the possibility that the institution will not be able to efficiently honor its expected, unexpected, current or future obligations. Liquidity management operates in line with the Group’s strategy and business model, being compatible with the nature of operations, the complexity of its products and the relevance of risk exposure. This liquidity management policy establishes actions to be taken in cases of liquidity contingency, and these must be sufficient to generate a new meaning for cash within the required minimum limits. The group maintains an adequate level of liquidity at all times, always working with a minimum cash limit. This is done through management that is compatible and consistent with your ability obtaining resources in the market, with its budgetary targets for the evolution of the volume of its assets and is based on the management of cash flows, observing the minimum limits of daily cash balances and cash needs projections, in the management of stocks of highly liquid assets and simulations of adverse scenarios. Risk structure and management are the responsibility of the Risk department, reporting to the Executive Board, thus avoiding any conflict of interest with departments that require liquidity. (d1) Maturities of financial liabilities The tables below summarizes the Group’s financial liabilities into groupings based on their contractual maturities: 2019 Liabilities Up to From 2 to From 3 to From 1 to Above Contractual Securities loaned 2,021,707 — — — — 2,021,707 Derivative financial instruments 1,557,088 211,882 685,566 732,286 42,414 3,229,236 Securities sold under repurchase agreements 15,638,407 — — — — 15,638,407 Securities trading and intermediation 9,114,546 — — — — 9,114,546 Borrowings and lease liabilities 8,239 26,258 81,953 521,034 — 637,484 Debentures — — 435,230 400,000 — 835,230 Accounts payables 266,813 — — — — 266,813 Other financial liabilities 79,157 — — — 19,474 98,631 Total 28,685,957 238,140 1,167,519 1,688,550 61,888 31,842,054 2018 Liabilities Up to From 2 to 3 months From 3 to From 1 to 5 years Above Contractual Securities loaned 770,270 478,741 10,568 — — 1,259,579 Derivative financial instruments 152,971 182 242,506 560,798 34,942 991,399 Securities sold under repurchase agreements 68,738 5,439,405 1,132,551 — — 6,640,694 Securities trading and intermediation 5,306,628 — — — — 5,306,628 Borrowings and lease liabilities 19,032 22,752 72,705 355,120 — 469,609 Debentures — — — 406,538 — 406,538 Accounts payables 134,579 — — — — 134,579 Other financial liabilities 7,011 — — — — 7,011 Total 6,459,229 5,941,080 1,458,330 1,322,456 34,942 15,216,037 (e) Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises mainly three types of risk: foreign exchange variation, interest rates and share prices. The aim of market risk management is to control exposure to market risks, within acceptable parameters, while optimizing return. Market risk management for operations is carried out through policies, control procedures and prior identification of risks in new products and activities, with the purpose to maintain market risk exposure at levels considered acceptable by the Group and to meet the business strategy and limits defined by the Risk Committee. The main tool used to measure and control the exposure risk of the Group to the market, mainly in relation to their trading assets portfolio, is the Maps Luna program, which calculates the capital allocation based on the exposure risk factors in the regulations issued by Brazil Central Bank (“BACEN”) for financial institutions, which are taken as a basis for the verification of the risk exposure of the assets of the Group. In order to comply with the provisions of the regulatory body, the financial institutions of the Group make daily control of the exposure by calculating the risk portions, recording the results in Document 2011—Daily Statement of Capital Requirements (DDR) in BACEN Circular Letter No, 3,331/08, submitting it daily to this institution. With the formalized rules, the Risk Department has the objective of controlling, monitoring and ensuring compliance with the pre-established non-compliance In addition to the control performed by the tool, the Group adopt guidelines to control the risk of the assets that mark the Treasury operations so that the own portfolios of the participating companies are composed of assets that have low volatility and, consequently, less exposure to risk, In the case of non-compliance (e1) Currency risk The Group is subject to foreign currency risk as they hold interest in XP Holding International, XP Advisors Inc, and XP Holding UK Ltd, whose equity as of December 31, 2019 was USD 43,323 thousand (US$ 37,671 thousand as of December 31, 2018), US$ 744 thousand (US$ 313 thousand as of December 31, 2018) and GBP 3,059 thousand (GBP 4,337 thousand as of December 31, 2018) respectively. The risk of the XP Holding International and XP Advisors Inc, is hedged with the objective of minimizing the volatility of the functional currency (BRL) against the US$ arising from foreign investment abroad (see Note 9). The foreign currency exposure risk of XP Holding UK Ltd, is not hedged. On December 31, 2017, the Company had a borrowing denominated in US$, which was settled in the amount of R$ 778,481 on August 31, 2018. (e2) Interest rate risk It arises from the possibility that the Group incur in gains or losses arising from fluctuations in interest rates on its financial assets and liabilities. Below are presented the risk rates that The Group are exposed: • Selic/DI • IGPM • IPCA • PRE • TJLP • Foreign exchange coupon (e3) Price risk Price risk is the risk arising from the change in the price of the investment fund portfolio and of shares listed on the stock exchange, held in the portfolio of the Group, which may affect its profit or loss, The price risk is controlled by the management of the Group, based on the diversification of its portfolio and/or through the use of derivatives contracts, such as options or futures. (e4) Sensitivity analysis According to the market information, the Group performed the sensitivity analysis by market risk factors considered relevant. The largest losses, by risk factor, in each of the scenarios were presented with an impact on the profit or loss, providing a view of the exposure by risk factor of the Group in exceptional scenarios. The following sensitivity analyzes do not consider the functioning dynamics of risk and treasury areas, since once these losses are detected, risk mitigation measures are quickly triggered, minimizing the possibility of significant losses. 2019 Trading portfolio Exposures Scenarios Risk factors Risk of variation in: I II III Pre-fixed Pre-fixed (907 ) (163,057 ) (445,866 ) Exchange coupons Foreign currencies coupon rate (67 ) 570 (854 ) Foreign currencies Exchange rates (2,102 ) (1,493 ) 43,908 Price indexes Inflation coupon rates (63 ) (782 ) (301 ) Shares Shares prices (442 ) (8,780 ) (57,390 ) (3,581 ) (173,542 ) (460,503 ) 2018 Trading portfolio Exposures Scenarios Risk factors Risk of variation in: I II III Pre-fixed Pre-fixed (559 ) (11,441 ) (22,881 ) Exchange coupons Foreign currencies coupon rate (9 ) (5,764 ) (11,529 ) Foreign currencies Exchange rates (386 ) (978 ) (5,027 ) Price indexes Inflation coupon rates (16 ) (798 ) (1,597 ) Shares Shares prices 877 (6,584 ) 4,873 (93 ) (25,565 ) (36,161 ) Scenario I: Increase of 1 basis point in the rates in the fixed interest rate yield, exchange coupons, inflation and 1 percentage point in the prices of shares and currencies; Scenario II: Project a variation of 25 percent in the rates of the fixed interest yield, exchange coupons, inflation, both rise and fall, being considered the largest losses resulting by risk factor; and Scenario III: Project a variation of 50 percent in the rates of the pre-fixed (f) Operating risk Operational risk is characterized by the possibility of losses resulting from external events or failure, deficiency or inadequacy of internal processes, people and systems, including legal risk. Operational risk events include the following categories: internal fraud; external fraud; labor demands and poor workplace safety; inappropriate practices relating to customers, products and services; damage to physical assets owned or used by XP; situations that cause the interruption of XP’s activities; and failures in information technology systems, processes or infrastructure. The Group’s main objective is to ensure the identification, classification and monitoring of situations that may generate financial losses, given the companies’ reputation, as well as any regulatory assessment due to the occurrence of an operational risk event, XP adopts the model of 3 lines of defense, in which the main responsibility for the development and implementation of controls to deal with operational risks is attributed to the Management within each business unit, seeking to manage mainly: (i) Requirements of segregation of functions, including independent authorization for transactions; (ii) Requirements of reconciliation and monitoring of transactions; (iii) Compliance with legal and regulatory requirements; (iv) Documentation of controls and procedures; (v) Requirements of periodic assessment of the operating risks faced and the adequacy of the controls and procedures for dealing with the identified risks; (vi) Development of contingency plans; (vii) Professional training and development; and (viii) Ethical and business standards; In addition, the Group’s financial institutions, in compliance with the provisions of Article 4, paragraph 2, of Resolution No, 3,380 / 06 of the National Monetary Council (“CMN”) of June 27, 2006, have a process that covers institutional policies, procedures, contingency and business continuity plans and systems for the occurrence of external events, in addition to formalizing the single structure required by the regulatory agency. |
Capital Management
Capital Management | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure Of Capital Management [Abstract] | ||
Capital Management | 30. Capital Management The Group’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital, In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Group also monitors capital on the basis of the net debt and the gearing ratio. Net debt is calculated as total debt (including borrowings, lease liabilities and debentures as shown in the consolidated balance sheet) less cash and cash equivalent (including cash, Securities purchased under agreements to resell and certificate deposits as shown in the consolidated statement of cash flows). The gearing ratio corresponds to the net debt expressed as a percentage of total capital. The net debt and corresponding gearing ratios as of September 30, 2020 and December 31, 2019 were as follows: September 30, 2020 December 31, Borrowings and lease liabilities 511,981 637,484 Debentures 338,693 835,230 Total debt 850,674 1,472,714 Cash (642,491 ) (109,922 ) Securities purchased under agreements to resell — (654,057 ) Certificate deposits (Securities) (105,204 ) (123,817 ) Net debt 102,979 584,918 Total equity 8,669,470 7,153,396 Total capital 8,772,449 7,738,313 Gearing ratio % 1.17 % 7.56 % a) Minimum capital requirements Although capital is managed considering the consolidated position, certain subsidiaries are subject to minimum capital requirement from local regulators. The subsidiary XP CCTVM, leader of the Prudential Conglomerate (which includes Banco XP), under BACEN regulation regime, is required to maintain a minimum capital and follow aspects from the Basel Accord, with the current strategy of maintaining its capital 1% above the minimum capital requirement. The subsidiary XP Vida e Previdência operates in Private Pension Business and is oversight by the SUSEP, being required to present Adjusted Shareholders’ Equity (PLA) equal to or greater than the Minimum Required Capital (“CMR”) and Venture Capital Liquidity (“CR”), CMR is equivalent to the highest value between base capital and venture capital. At September 30, 2020 the subsidiaries XP CCTVM, Banco XP and XP Vida e Previdência were in compliance with all capital requirements. There is no requirement for compliance with a minimum capital for the other Group companies. b) Financial covenants In relation to the long-term debt contracts, including multilateral instruments, recorded within “Borrowing and lease liabilities” and “Debentures” (Notes 14 and 15), the Group is required to comply with certain performance conditions, such as profitability and efficiency indexes. As of September 30, 2020, the contracts under financial covenants corresponds to the amount of R$ 636,091 (December 31, 2019 – R$ 1,217,308). The Group has complied with these covenants throughout the reporting period. Eventual failure of the Group to comply with such covenants may be considered as breach of contract and, as a result, considered for early settlement of related obligations. | 34. Capital Management The Group’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital, In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Group also monitors capital on the basis of the net debt and the gearing ratio. Net debt is calculated as total debt (including borrowings, lease liabilities and debentures as shown in the consolidated balance sheet) less cash and cash equivalent (including cash, Securities purchased under agreements to resell and certificate deposits as shown in the consolidated statement of cash flows). The gearing ratio corresponds to the net debt expressed as a percentage of total capital. The net debt and corresponding gearing ratios at December 31, 2019 and 2018 were as follows: 2019 2018 Borrowings and lease liabilities 637,484 469,609 Debentures 835,230 406,538 Total debt 1,472,714 876,147 Cash (109,922 ) (68,407 ) Securities purchased under agreements to resell (654,057 ) (488,809 ) Certificate deposits (Securities) (123,817 ) (69,647 ) Net debt 584,918 249,284 Total equity 7,153,396 2,084,777 Total capital 7,738,313 2,334,061 Gearing ratio % 7,56 % 10,68 % (i) Minimum capital requirements Although capital is managed considering the consolidated position, certain subsidiaries are subject to minimum capital requirement from local regulators. The subsidiary XP CCTVM, leader of the Prudential Conglomerate, under BACEN regulation regime, is required to maintain a minimum capital and follow aspects from the Basel Accord, with the current strategy of maintaining its capital 1% above the minimum capital requirement. The subsidiary XP Vida e Previdência operates in Private Pension Business and is oversight by the SUSEP, being required to present Adjusted Shareholders’ Equity (PLA) equal to or greater than the Minimum Required Capital (“CMR”) and Venture Capital Liquidity (“CR”), CMR is equivalent to the highest value between base capital and venture capital. At December 31, 2019 the subsidiaries XP CCTVM and XP Vida e Previdência were in compliance with all capital requirements. There is no requirement for compliance with a minimum capital for the other Group companies. (ii) Financial covenants In relation to the long-term debt contracts, including multilateral instruments, recorded within “Borrowing and lease liabilities” and “Debentures” (Notes 15 and 16), the Group is required to comply with certain performance conditions, such as profitability and efficiency indexes. At December 31, 2019, the amount of contracts under financial covenants is R$ 1,217,308 (December 31, 2018 – R$ 876,147). The Group has complied with these covenants throughout the reporting period. Eventual failure of the Group to comply with such covenants may be considered as breach of contract and, as a result, considered for early settlement of related obligations. |
Cash Flow Information
Cash Flow Information | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure Of Cash Flow Information [Abstract] | ||
Cash Flow Information | 31. Cash flow information (i) Debt reconciliation Borrowings lease Debentures Total Total debt as of January 1, 2019 469,609 148,494 406,538 1,024,641 Acquisitions / Issuance — 105,694 400,000 505,694 Payments (74,853 ) (26,194 ) — (101,047 ) Net foreign exchange differences — 6,460 — 6,460 Interest accrued 20,869 12,447 29,284 62,600 Interest paid (16,386 ) — — (16,386 ) Total debt as of September 30, 2019 399,239 246,901 835,822 1,481,962 Total debt as of January 1, 2020 382,078 255,406 835,230 1,472,714 Acquisitions / Issuance — 45,129 — 45,129 Write-off — (78,322 ) — (78,322 ) Payments (84,895 ) (45,903 ) (400,000 ) (530,798 ) Repurchase (Note 15) — — (64,717 ) (64,717 ) Revaluation (Note 11(c)) — (10,050 ) — (10,050 ) Net foreign exchange differences — 32,675 — 32,675 Interest accrued 10,281 15,648 20,128 46,057 Interest paid (10,067 ) — (51,948 ) (62,015 ) Total debt as of September 30, 2020 297,397 214,583 338,693 850,673 (ii) Non-cash Non-cash | 35. Cash flow information (i) Debt reconciliation Borrowings Lease Debentures Total Total debt as of January 1, 2017 — — — — Acquisitions / Issuance 826,000 — — 826,000 Net foreign exchange differences 35,116 — — 35,116 Interest accrued 5,908 — — 5,908 Total debt as of January 1, 2018 867,024 — — 867,024 Acquisitions / Issuance 325,370 — 400,000 725,370 Payments (689,634 ) — — (689,634 ) Net foreign exchange differences (35,091 ) — — (35,091 ) Interest accrued 56,125 — 6,538 62,663 Interest paid (54,185 ) — — (54,185 ) Total debt as of December 31, 2018 469,609 — 406,538 876,147 Change in accounting policy (Note 3.xxi) — 148,494 — 148,494 Total debt as of January 1, 2019 469,609 148,494 406,538 1,024,641 Acquisitions / Issuance — 124,196 400,000 524,196 Payments (85,353 ) (37,979 ) (11,815 ) (135,147 ) Net foreign exchange differences — 3,085 — 3,085 Interest accrued 26,250 17,610 40,507 84,367 Interest paid (28,428 ) — — (28,428 ) Total debt as of December 31, 2019 382,078 255,406 835,230 1,472,714 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Events After Reporting Period Explanatory [Abstract] | |
Subsequent Events | 36. Subsequent events (i) Visa Agreement On March 04, 2020, Banco XP (wholly owned subsidiary of XP Inc) entered into an agreement with Visa do Brasil Empreendimentos Ltda. (“Visa”) as an issuing partner of debit and credit cards. The initiative marks the entrance of XP Inc. in the credit card segment in Brazil. (ii) Impacts of COVID-19 Starting from January 2020, it was reported that a novel strain of coronavirus, later named COVID-19, which COVID-19 |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure of significant accounting policies [Abstract] | ||
Basis of preparation of the unaudited interim condensed consolidated financial statements | a) Basis of preparation of the unaudited interim condensed consolidated financial statements The unaudited interim condensed consolidated financial statements as of September 30, 2020 and for the three and nine months period ended September, 2020 and 2019 have been prepared in accordance with IAS 34 Interim Financial Reporting The unaudited interim condensed consolidated financial statements have been prepared on a historical cost basis, except for financial instruments that have been measured at fair value. The unaudited interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group’s annual consolidated financial statements as of December 31, 2019. The list of notes that were not apresented in this unaudited interim condensed is presented below: Note to financial statements of December 31, 2019 Description 3. Summary of significant accounting policies 4. Significant estimated and judgements 5. Group structure 10. Accounts receivable 11. Recoverable taxes 19. Social and Statutory obligations 20. Tax and social security obligations 24. (a) Key-person 33. (b) to (f) Management of financial risks and financial instruments The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, except for the new accounting policies adopted for the current interim reporting period, see Note 2 (c). The unaudited interim condensed consolidated financial statements are presented in Brazilian reais (“R$”), which is the Group’s presentation currency and all amounts disclosed in the financial statements and notes have been rounded off to the nearest thousand currency units unless otherwise stated. | |
New standards, interpretations and amendments not yet adopted | b) New standards, interpretations and amendments not yet adopted The accounting policies adopted in the preparation of the unaudited interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group’s consolidated financial statements for the year ended December 31, 2019. Certain new accounting standards and interpretations have been published ,which include Amendments to IFRS 3: Definition of a Business; Amendments to IFRS 7, IFRS 9 and IAS 39: Interest Rate Benchmark Reform; and Amendments to IAS 1 and IAS 8: Definition of Material; and Conceptual Framework for Financial Reporting issued on March 29, 2018, that are not mandatory for the period ended September 30, 2020, and have not been early adopted by the group. These standards are not expected to have a material impact on the entity in the current or future financial statements periods and on foreseeable future transactions. | |
New accounting policies adopted by the Group | c) New accounting policies adopted by the Group Derivative financial instruments and hedging activities In compliance with IFRS 9, as of September 30, 2020, the Group designated certain derivatives as fair value hedges for protection of the exposure of Fixed-Income carried out through structured operations certificates. The following accounting policy is adopted for theses fair value hedges: For the derivative financial instruments that are designated and qualify as fair value hedges, the following policies apply: a) the gain or loss resulting from the fair value appreciation or depreciation of the hedging instrument at fair value should be recorded in profit or loss; and b) the gain or loss resulting from fair value appreciation or depreciation of the hedged item, that is attributable to the effective portion of the hedged item should adjust the carrying amount of the hedged item, which will be recorded in profit or loss. If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for which the effective interest method is used is amortized to profit or loss over the remaining period until maturity, using a recalculated effective interest rate. | |
Basis of Consolidation | d) Basis of consolidation There were no changes since December 31, 2019 in the accounting practices adopted for consolidation of the Company’s direct and indirect interests in its subsidiaries for the purposes of these unaudited interim condensed consolidated financial statements, except for the following items: % of Group’s interest (i) Entity name Country of Principal activities September 30, December 31, Indirectly controlled XP Allocation Asset Management Ltda. (ii) Brazil Asset management 99.97 % — Track Índices Consultoria Ltda. (ii) Brazil Index Provider 100.00 % — XP Eventos Ltda. (ii) Brazil Media and Events 99.00 % — Carteira Online Controle de Investimentos Ltda.-ME Brazil Investment 99.99 % — Antecipa S.A. (iii) Brazil Receivables 100.00 % — Consolidated investments funds NIMROD Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior (ii) Brazil Investment fund 100.00 % — XP High Yield Fund SP (ii) Cayman Investment fund 100.00 % — XP International Fund SPC (ii) Cayman Investment fund 100.00 % — Spatha Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior (iv) Brazil Investment fund — 100.00% Balista Debentures Incentivadas Fundo de Investimento Multimercado Crédito Privado (iv) Brazil Investment fund — 100.00% (i) The percentage of participation represents the Group’s interest in total capital and voting capital of its subsidiaries. (ii) New subsidiaries and investment funds commenced operations in the period. (iii) New subsidiaries acquired in the period. (iv) Investiments funds closed during the period. | (iii) Basis of consolidation The consolidated financial statements comprise the financial statements of the Company as of December 31, 2019 and 2018 and for each of the years ended December 31, 2019, 2018 and 2017. Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The acquisition method of accounting is used to account for business combinations by the Group (refer to Note 5. Intercompany transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Non-controlling |
Interests in associates and joint ventures | e) Interests in associates and joint ventures i. Associates Associates are companies in which the investor has a significant influence but does not hold control. Investments in these companies are initially recognized at cost of acquisition and subsequently accounted for using the equity method. Investments in associates and joint ventures include the goodwill identified upon acquisition, net of any cumulative impairment loss. ii. Joint ventures The Group has joint venture whereby the parties that have joint control of the arrangement have rights to the net assets. iii. Equity method Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to recognise the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint ventures are recognised as a reduction in the carrying amount of the investment. Unrealised gains on transactions between the Group and its associates and joint ventures are eliminated to the extent of the Group’s interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity-accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Group. If its interest in the associates and joint ventures decreases, but the Group retains significant influence or joint control, only the proportional amount of the previously recognized amounts in Other comprehensive income is reclassified in Income, when appropriate. | |
Business acquisitions | f) Business acquisitions The acquisitions of Fliper and Antecipa were recently completed and the allocation of the purchase price to acquired assets, including goodwill, and assumed liabilities is still preliminary pending receipt of the final fair value valuations of the acquired assets and assumed liabilities as of the closing date of the transaction. For the concluded acquisitions, the total consideration paid is R$83,925, being: i) R$55,741 paid in cash, ii) R$14,000 payable in three consecutives annual installments from 2020 to 2022 adjusted by the Interbank Certificates of Deposit (“CDI”) rate and iii) R$14,183 as a fair value of the contingent consideration. These acquisitions are not considered material for XP Inc. interim financial statements.The preliminary purchase prices were mostly allocated to goodwill, representing the value of expected synergies arising from the acquisition. Carteira Online Controle de Investimentos Ltda.-ME On June 5, 2020, the Group entered into an agreement, to acquire 100% of total share capital Fliper, an automated investment consolidation platform that offers its users connectivity and tools to perform intuitive and intelligent financial self-management. The transaction allows XP Inc. to offer its customers additional resources to manage their investments, as the open banking trend continues to accelerate in Brazil. On July 13, 2020, the acquisition was concluded, through approval of Central Bank (BACEN). Antecipa S.A. (“Antecipa”) On June 29, 2020, the Group entered into an agreement, through its for the acquisition of 100% of total share capital of Antecipa , a digital platform for the financing of receivables.Antecipa’s central objective is to offer an efficient alternative for companies to optimize cash flow management. For the Group, the acquisition represents an opportunity to further expand its product range and reinforce the company’s presence in the Small to Medium Enterprise (SME) and corporate segments in Brazil, similar to XP’s transformational initiatives across the Retail, High-Income and Private Market channels. On September 1, 2020, acquisition was consummated, through approval of Central Bank (BACEN). DM10 Corretora de Seguros e Assessoria Ltda. (“DM10”) On June 9, 2020, the Group entered into an agreement to acquire of 100% of total share capital of DM10, a marketplace that connects hundreds of independent distributors with Life Insurance and Pension Plan products, adding value through technology and education. With the transaction, the Group enhances its distribution network in the insurance division. This transaction is expected to close in the fourth quarter of 2020. | |
Segment Reporting | g) Segment reporting In reviewing the operational performance of the Group and allocating resources, the chief operating decision maker of the Group (“CODM”), who is the Group’s Chief Executive Officer (“CEO”) and the Board of Directors (“BoD”), represented by statutory directors holders of ordinary shares of the immediate parent of the Company, reviews selected items of the statement of income and of comprehensive income. The CODM considers the whole Group as a single operating and reportable segment, monitoring operations, making decisions on fund allocation and evaluating performance based on a single operating segment. The CODM reviews relevant financial data on a combined basis for all subsidiaries and joint ventures. Disaggregated information is only reviewed at the revenue level (Note 22), with no corresponding detail at any margin or profitability levels. The Group’s revenue, results and assets for this one reportable segment can be determined by reference to the unaudited interim condensed consolidated statements of income and of comprehensive income and unaudited interim condensed consolidated balance sheet. See Note 22 (c) for a breakdown of total revenue and income and selected assets by geographic location | (iv) Segment reporting In reviewing the operational performance of the Group and allocating resources, the chief operating decision maker of the Group (“CODM”), who is the Group’s Chief Executive Officer (“CEO”) and the Board of Directors (“BoD”), represented by statutory directors holders of ordinary shares of the immediate parent of the Company, reviews selected items of the statement of income and of comprehensive income. The CODM considers the whole Group as a single operating and reportable segment, monitoring operations, making decisions on fund allocation and evaluating performance based on a single operating segment. The CODM reviews relevant financial data on a combined basis for all subsidiaries. Disaggregated information is only reviewed at the revenue level (Note 26), with no corresponding detail at any margin or profitability levels. The Group’s revenue, results and assets for this one reportable segment can be determined by reference to the consolidated statement of income and of comprehensive income and consolidated balance sheet. See Note 26 (c) for a breakdown of revenues and income and selected assets from external customers by country of domicile. |
Impacts related COVID-19 in the current period | h) Impacts related COVID-19 Starting from January 2020, it was reported that a novel strain of coronavirus, later named COVID-19, Although the Group have not identified relevant impacts to its financial performance as at September 30, 2020, the Group is monitoring COVID-19 As a consequence of this pandemic, most of the Group’s employees is working from home. Based on thorough assessments about the well-being and performance of our workforce, management announced on September 11, 2020, the permanent and company-wide adoption of the home-office model. | |
Estimates | i) Estimates The preparation of unaudited interim condensed consolidated financial statements of the Group requires management to make judgments and estimates and to adopt assumptions that affect the amounts presented referring to revenues, expenses, assets and liabilities at the reporting date. Actual results may differ from these estimates. In preparing these unaudited interim condensed consolidated financial statements, the significant judgements and estimates made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that are set the consolidated financial statements for the year ended December 31, 2019. | |
Foreign Currency Translation | (v) Foreign currency translation (i) Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in Brazilian Reais (“R$”), which is the Group functional and presentation currency. The functional currency for all the Company’s subsidiaries in Brazil is also the Brazilian reais. Certain subsidiaries outside of Brazil have different functional currencies, including US Dollar (“USD”), Euro (“EUR”), Pound sterling (“GBP”) and Swiss Franc (“CHF”). (ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognized in profit or loss. They are deferred in equity if they relate to qualifying cash flow hedges and qualifying net investment hedges or are attributable to part of the net investment in a foreign operation. Foreign exchange gains and losses that relate to borrowings are presented in the statement of income and other comprehensive income, within finance costs. All other foreign exchange gains and losses are presented in the statement of profit or loss on a net basis within interest expense on debt. Non-monetary non-monetary non-monetary (iii) Group companies The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: • assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet; • income and expenses for each statement of profit or loss and statement of comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and • all resulting exchange differences are recognized in other comprehensive income. On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of borrowings and other financial instruments designated as hedges of such investments, are recognized in other comprehensive income. When a foreign operation is sold or any borrowings forming part of the net investment are repaid, the associated exchange differences are reclassified to profit or loss, as part of the gain or loss on sale. Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate. | |
Business Combinations | (i) Business combinations The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the: • fair values of the assets transferred; • liabilities incurred to the former owners of the acquired business; • equity interests issued by the Group; • fair value of any asset or liability resulting from a contingent consideration arrangement; and • fair value of any pre-existing Identifiable assets acquired, and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling acquisition-by-acquisition non-controlling Acquisition-related costs are expensed as incurred. The excess of the consideration transferred, amount of any non-controlling Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions. Contingent consideration, when applicable, is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognized in profit or loss. If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognized in profit or loss. | |
Financial Instruments | (ii) Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. 1) Financial assets Initial recognition and measurement On initial recognition, financial assets are classified as instruments measured at amortized cost, fair value through other comprehensive income (“FVOCI”) and fair value through profit and loss (“FVPL”). The classification of financial assets at initial recognition is based on either (i) the Company’s business model for managing the financial assets and (ii) the instruments’ contractual cash flows characteristics. For a financial asset to be classified and measured at amortized cost or FVOCI, it needs to give rise to cash flows that are ‘Solely Payments of Principal and Interest’ (the “SPPI” criterion) on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model considers whether the Company’s objective is to receive cash flows from holding the financial assets, from selling the assets or a combination of both. Purchases or sales of financial assets that require delivery of assets within a time frame set by regulation or market practice (regular way trades) are recognized on the trade date, i.e., the date that the Group commits to purchase or sell the asset. Classification and subsequent measurement (i) Financial assets at FVPL Financial assets at FVPL include Securities, financial assets designated upon initial recognition at FVPL, or financial assets mandatorily required to be measured at fair value. This category includes securities and Derivative financial instruments, including equity instruments which the Group had not irrevocably elected to classify at FVOCI. Financial assets are classified as fair value through profit and loss if they either fail the contractual cash flow test or in the Group’s business model are acquired for the purpose of selling or repurchasing in the near term. Financial assets may be designated at FVPL on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch. Derivative financial instruments, including separated embedded derivatives, are also classified as Securities unless they are designated as effective hedging instruments. Financial assets with cash flows that do not meet the SPPI criteria are classified and measured at FVPL, irrespective of the business model. Financial assets at FVPL are carried in the statement of financial position at fair value with net changes in fair value recognized in the statement of income. The net gain or loss recognized in the statement of income includes any dividend or interest earned on the financial asset. Financial assets measured at FVTPL consist of Securities owned and sold short. A derivative embedded in a hybrid contract, with a financial liability or non-financial A derivative embedded within a hybrid contract containing a financial asset host is not accounted for separately. The financial asset host together with the embedded derivative is required to be classified in its entirety as a financial asset at fair value through profit or loss. (ii) Financial assets at FVOCI The Group measures financial assets at FVOCI if both of the following conditions are met: • The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and to sell. • The contractual terms of the financial asset give rise on specified dates to cash flows that meet the SPPI criteria. For financial assets at FVOCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognized in the statement of income and similarly to financial assets measured at amortized cost. The remaining fair value changes are recognized in OCI. Upon derecognition, the cumulative fair value change recognized in OCI is recycled to profit or loss. The Group’s financial assets at FVOCI includes certain debt instruments. Upon initial recognition, the Group can elect to classify irrevocably equity investments at FVOCI when they meet the definition of equity under IAS 32—“Financial Instruments: Presentation” and are not financial assets at FVPL. The classification is determined on an instrument-by-instrument Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognized as income in the statement of income when the right of payment has been established, except when the Group benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at FVOCI are not subject to impairment assessment. The Group has no equity instruments that have been irrevocably classified under this category. (iii) Financial assets at amortized cost A financial asset is measured at amortized cost if both of the following conditions are met: • The financial asset is held within a business model with the objective to hold the financial asset in order to collect contractual cash flows. • The contractual terms of the financial asset give rise on specified dates to cash flows that meet the SPPI criteria. Financial assets at amortized cost are subsequently measured using the Effective Interest Rate (“EIR”) method and are subject to impairment. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired. The Group’s financial assets at amortized cost mainly includes ‘Securities’, ‘Securities purchased under agreements to resell’, ‘Securities trading and intermediation’, ‘Accounts receivable’ and ‘Other financial assets. The Company reclassifies financial assets only when its business approach for managing those assets changes. Derecognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e., removed from the Group’s consolidated statement of financial position) when: • The contractual rights to receive cash flows from the asset have expired. • The Group has transferred its contractual rights to receive cash flows from the asset or has assumed a contractual obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset; or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Group has transferred its contractual rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all the risks and rewards of the asset, nor transferred control of the asset, the Group continues to recognize the transferred asset to the extent of its continuing involvement. In that case, the Group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay. Impairment of financial assets The Group recognizes an allowance for expected credit losses (“ECLs”) for all debt instruments not held at FVPL. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months 12-month For accounts receivables and other contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. For debt instruments at FVOCI, the Group applies the low credit risk simplification. At every reporting date, the Group evaluates whether the debt instrument is considered to have low credit risk using all reasonable and supportable information that is available without undue cost or effort. In making that evaluation, the Group reassesses the internal credit rating of the debt instrument. In addition, the Group considers that there has been a significant increase in credit risk when contractual payments are more than 30 days past due. The Group considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before considering any credit enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. 2) Financial liabilities Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at FVPL, amortized cost or as Derivative financial instruments designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of amortized cost, net of directly attributable transaction costs. The Group’s financial liabilities include ‘Securities Loaned’, ‘Derivative financial instruments’, ‘Securities purchased under agreements to resell’, ‘Securities trading and intermediation’, long-term debts such as ‘Borrowings and lease liabilities’ and ‘Debentures’, ‘Accounts payables’ and ‘Other financial liabilities’. Classification and subsequent measurement (i) Financial liabilities at FVPL Financial liabilities at FVPL include securities loaned and derivatives financial instruments designated upon initial recognition as at FVPL. Financial liabilities are classified as securities loaned if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered by the Group that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded derivatives are also classified as fair value through PL unless they are designated as effective hedging instruments. Gains or losses on liabilities at fair value through PL are recognized in the statement of income. Financial liabilities designated upon initial recognition at FVPL are designated at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied. Securities loaned, and derivative financial instruments are classified as fair value through PL and recognized at fair value. (ii) Amortized cost After initial recognition, these financial liabilities are subsequently measured at amortized cost using the Effective Interest Method (“EIR”) method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of income. This category generally applies to Securities sold under repurchase agreements, Securities trading and intermediation, ‘Borrowings and Lease Liabilities’, ‘Debentures’, ‘Accounts payables’ and ‘Other financial liabilities’. Derecognition A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of income. 3) Fair value of financial instruments The fair value of financial instruments actively traded in organized financial markets is determined based on purchase prices quoted in the market at the close of business at the reporting date, without deducting transaction costs. The fair value of financial instruments for which there is no active market is determined by using measurement techniques. These techniques may include the use of recent market transactions (on an arm’s length basis); reference to the current fair value of another similar instrument; analysis of discounted cash flows or other measurement models. See Note 32. 4) Derivative financial instruments and hedging activities Derivative financial instruments are financial contracts, the value of which is derived from the value of the underlying assets, interest rates, indexes or currency exchange rates. The Company uses derivative financial instruments to manage foreign exchange risk on pending security settlements in foreign currencies. The fair value of these contracts is nominal due to their short term to maturity. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, in the case of adoption of hedge accounting and, if so, the nature of the item being hedged. The Group adopts only net investment hedge to hedge a net investment in a foreign operation. In the case of the Derivative was not designated as a hedging instrument the initial recognition is at fair value on the date on which a derivative contract is entered and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Realized and unrealized gains and losses related to these contracts are recognized in the consolidated statements of income during the reporting period. The Company trades in futures contracts, which are agreements to buy or sell standardized amounts of a financial instrument at a predetermined future date and price, in accordance with terms specified by a regulated futures exchange, and subject to daily cash margining. The Company trades in futures in an attempt to mitigate interest rate risk, yield curve risk and liquidity risk. The Company also trades in forward contracts, which are non-standardized a) Net investment hedge Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognized in other comprehensive income within gains (losses) on net investment hedge. The gain or loss relating to the ineffective portion is recognized immediately in the statement of income within net income from financial instruments at fair value through profit or loss. Gains and losses accumulated in equity are included in the statement of income when the foreign operation is partially or fully disposed of or sold. b) Hedge ineffectiveness Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. To evaluate the effectiveness and to measure the ineffectiveness of such strategies, The Group uses the Dollar Offset Method. The Dollar Offset Method is a quantitative method that consists of comparing the change in fair value or cash flows of the hedging instrument with the change in fair value or cash flows of the hedged item attributable to the hedged risk. | |
Cash and Cash Equivalents | (iii) Cash and cash equivalents Cash is not subject to a significant risk of change in value and are held for the purpose of meeting short-term cash commitments and not for investments or other purposes. Transactions are considered short-term when they have maturities in three months or less from the date of acquisition. For purposes of consolidated statement of cash flows, cash equivalents refer to collateral held securities purchased under agreements to resell and bank deposit certificates measured at fair value through profit and loss that are readily convertible into a known cash amount and for which are no subject to a significant risk of change in value. | |
Securities Purchased Under Agreements to Resell and Obligations Related to Securities Sold Under Repurchase Agreements | (iv) Securities purchased under agreements to resell and obligations related to securities sold under repurchase agreements The Group has purchased securities with resale agreement (resale agreements) and sold securities with repurchase agreement (repurchase agreement) of financial assets. Resale and repurchase agreements are accounted for under Securities purchased under agreements to resell and Securities sold under repurchase agreements, respectively. The difference between the sale and repurchase prices is treated as interest and recognized over the life of the agreements using the effective interest rate method. The financial assets accepted as collateral in our resale agreements can be used by us, if provided for in the agreements, as collateral for our repurchase agreements or can be sold. | |
Securities Trading and Intermediation (Receivable and Payable) | (v) Securities trading and intermediation (receivable and payable) Refers to transactions at B3 S.A.—Brasil, Bolsa, Balcão (“B3”) on behalf of and on account of third parties. Brokerages on these transactions are classified as revenues and service provision expenses are recognized at the time of the transactions. These balances are offset and the net amount shown in the balance sheet when, and only when, there is a legal and enforceable right to offset and the intention to liquidate them on a net basis, or to realize the assets and settle the liabilities simultaneously. Amounts due from and to customers represent receivables for securities sold and payables for securities purchased that have been contracted for but not yet settled or delivered on the balance sheet date respectively. The due from customers balance is held for collection. These amounts are subdivided into the following items: • Cash and settlement records—Represented by the registration of transactions carried out on the stock exchanges on its own behalf and for customers; and • Debtors/Creditors pending settlement account—debtor or creditor balances of customers, in connection with transactions with fixed income securities, shares, commodities and financial assets, pending settlement as of the statement of reporting date. Sales transactions are offset and in the event the final amount is a credit, it will be recorded in liabilities, on the other hand if this amount is debt, it will be recorded in assets, provided that the offset balances refer to the same counterparty. These amounts are recognized initially at fair value and subsequently measured at amortized cost. At each reporting date, the Group shall measure the loss allowance on amounts due from customer at an amount equal to the lifetime expected credit losses if the credit risk has increased significantly since initial recognition. If, at the reporting date, the credit risk has not increased significantly since initial recognition, the Group shall measure the loss allowance at an amount equal to 12-month Any contractual payment which is more than 90 days past due is considered credit impaired. The estimated credit losses for brokerage clients and related activity was immaterial for all periods presented. | |
Prepaid Expenses | (vi) Prepaid expenses Prepaid expenses are recognized as an asset in the balance sheet. These expenditures include incentives to IFAs, prepaid software licenses, certain professional services and insurance premiums. | |
Leases | (vii) Leases As of January 1, 2019 the Group has adopted IFRS 16, replacing IAS 17, which was applicable until December 31, 2018. Both accounting practices are explained below. IAS 17—Leases Leases in which a significant portion of the risks and rewards of ownership were not transferred to the Group as lessee were classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) were charged to profit or loss on a straight-line basis over the period of the lease. Lease income from operating leases where the Group is a lessor is recognized in income on a straight-line basis over the lease term. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the underlying asset and recognized as expense over the lease term on the same basis as lease income. The respective leased assets are included in the balance sheet based on their nature. The Group did not need to make any adjustments to the accounting for assets held as lessor as a result of adopting the new leasing standard. IFRS 16 Leases Effective from January 1, 2019, IFRS 16 was issued in January 2016 and supersedes IAS 17 Leases Determining whether an Arrangement contains a Lease SIC-15 Operating Leases-Incentives SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease The Group has adopted IFRS 16 from January 1, 2019 using the modified retrospective method of adoption, under which the standard is applied retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application and not restated comparatives for the 2018 and 2017 reporting period. The reclassifications and the adjustments arising from the new leasing rules are therefore recognized in the opening balance sheet on January 1, 2019. Practical expedients and exemptions applied In applying IFRS 16 for the first time, the Group has used the following permitted practical expedients: • applying only to contracts that were previously identified as leases applying IAS 17 and IFRIC 4 at the date of initial application; • applying a single discount rate to a portfolio of leases with reasonably similar characteristics; • relying on previous assessments on whether leases are onerous as an alternative to performing an impairment review – there were no onerous contracts as of January 1, 2019; • exempting leases contracts with a remaining lease term of less than 12 months as of January 1, 2019 and not containing a purchase option (short-term leases); • exempting lease contracts for which the underlying asset is of low value (low-value • excluding initial direct costs for the measurement of the right-of-use • using hindsight in determining the lease term where the contract contains options to extend or terminate the lease. i) Measurement of lease liabilities and right-of-use The Group leases its main offices and certain equipments under non-cancelable On adoption of IFRS 16, the Group recognized lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of IAS 17 These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of January 1, 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on January 1, 2019 was 9.0%. Operating lease commitments disclosed as of December 31, 2018 209,318 Discounted using the incremental borrowing rate of at the date of initial application (60,099 ) (Less): short-term leases recognized on a straight-line basis as expense (725 ) Lease liability recognized as of January 1, 2019 148,494 The associated right-of-use Lease liability recognized as of January 1, 2019 148,494 (Less): accrued lease payments as of December 31, 2018 (14,624 ) Total right-of-use 133,870 Represented by: Properties 123,262 Equipments 10,608 As a result of initial adoption, there is no impact to retained earnings in equity on January 1, 2019. Right-of-use “Right-of-use ii) Summary of new accounting policies Set out below are the new accounting policies of the Group upon adoption of IFRS 16, which have been applied from the date of initial application: Right-of-use The Group recognizes right-of-use Right-of-use The cost of right-of-use right-of-use Right-of Lease liabilities At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance Short-term leases and leases of low-value The Group applies the short-term lease recognition exemption to its short-term leases of properties (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value low-value Significant judgement in determining the lease term of contracts with renewal options The Group determines the lease term as the non-cancellable The Group has the option, under some of its leases to lease the assets for additional terms. The Group applies judgement in evaluating whether it is reasonably certain to exercise the option to renew. That is, it considers all relevant factors that create an economic incentive for it to exercise the renewal. After the commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise (or not to exercise) the option to renew (e.g., a change in business strategy). | |
Property and Equipment | (viii) Property and equipment All property and equipment are stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditures that are directly attributable to the acquisition of the items and, if applicable, net of tax credits. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item is material and can be measured reliably. All other repairs and maintenance expenditures are charged to profit or loss during the period in which they are incurred. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows: Annual Rate (%) Data Processing Systems 20 % Furniture and equipment 10 % Security systems 10 % Facilities 10 % Assets’ residual values, useful lives and methods of depreciation are reviewed at each reporting date and adjusted prospectively, if appropriate. An asset’s carrying amount is written down immediately to its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use, if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals or derecognition are determined by comparing the disposal proceeds (if any) with the carrying amount and are recognized in profit or loss. | |
Intangible Assets | (ix) Intangible assets i) Goodwill Goodwill arises on the acquisition of subsidiaries and represents the excess of (i) the consideration transferred; (ii) the amount of any non-controlling non-controlling Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. ii) Software and development costs Certain direct development costs associated with internally developed software and software enhancements of the Group’s technology platform is capitalized. Capitalized costs, which occur post determination by management of technical feasibility, include external services and internal payroll costs. These costs are recorded as intangible assets when development is complete, and the asset is ready for use, and are amortized on a straight-line basis, generally over a period of five years. Research and pre-feasibility iii) Other intangible assets Separately acquired intangible assets are measured at cost on initial recognition. The cost of intangible assets acquired in a business combination corresponds to their fair value at the acquisition date. After initial recognition, intangible assets are stated at cost, less any accumulated amortization and accumulated impairment losses. Internally generated intangible assets other than (i) above, are not capitalized and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred. The useful life of intangible assets is assessed as finite or indefinite. As of December 31, 2019 and 2018, the Group does not hold indefinite life intangible assets, except for goodwill. Intangible assets with finite useful lives are amortized over their estimated useful lives and tested for impairment whenever there is an indication that their carrying amount may be not be recovered. The period and method of amortization for intangible assets with finite lives are reviewed at least at the end of each fiscal year or when there are indicators of impairment. Changes in estimated useful lives or expected consumption of future economic benefits embodied in the assets are considered to modify the amortization period or method, as appropriate, and treated as changes in accounting estimates. The amortization of intangible assets with definite lives is recognized in profit or loss in the expense category consistent with the use of intangible assets. The useful lives of the intangible assets are shown below: Estimate useful life (years) Software 3-5 Internally developed intangible 3-7 Customer list 2-8 Trademarks 10-20 Gains and losses resulting from the disposal or derecognition of intangible assets are measured as the difference between the net disposal proceeds (if any) and their carrying amount and are recognized in profit or loss. | |
Impairment of Non-Financial Assets | (x) Impairment of non-financial Assets that have an indefinite useful life, for example goodwill, are not subject to amortization and are tested annually for impairment. Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. Assets that are subject to depreciation or amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized when the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (Cash-generating units (CGU’s)). For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the CGUs (or groups of CGUs) that is expected to benefit from the synergies of the combination, which are identified at the operating segment level. Non-financial | |
Taxes | (xi) Taxes i) Current income and social contribution taxes Each of Group’s entities pay Federal Income Tax (IRPJ) and Social Contribution on Net Income (CSLL) under one of two different methods: • APM—Actual Profit Method, where the taxpayer calculates both taxes based on its actual taxable income, after computing all income, gains and tax-deductible • PPM—Presumed Profit Method, where taxpayer calculates IRPJ and CSLL applying a presumed profit margin over the operating revenues. It is important to emphasize that the profit margin is defined by Brazilian Revenue Service (RFB) according to type of services rendered and/or goods sold. Under the PPM method, both taxes are due on a quarterly basis and no prepayment are required during the quarters. This method can be adopted only by entities with gross revenue up to a annually revised threshold determined by tax authorities. The tax rates applicable to APM or PPM are also defined according to entities’ main activity: • Federal Income Tax (IRPJ)—tax rate of 15% calculated on taxable income and a surcharge of 10% calculated on the taxable income amount that exceeds R$ 20 per month (or R$ 240 annually). • Social Contribution on Net Income (CSLL)—tax rate of 9% calculated on taxable income. However, financial institutions (i.e., XP CCTVM and Banco XP) and insurance companies (i.e., XP Vida e Previdência) are subject to a higher CSLL rate of 15%. From 2015 to 2018, this rate was temporarily increased to 20% by means of federal Law 12.169/2015 ii) Deferred income and social contribution taxes Deferred income tax and social contribution are recognized, using the liability method, on temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred taxes are not accounted for if they arise from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax assets are recognized only to the extent it is probable that future taxable profit will be available against which the temporary differences and/or tax losses can be utilized. In accordance with the Brazilian tax legislation, loss carryforwards can be used to offset up to 30% of taxable profit for the year and do not expire. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except for a deferred tax liability where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets and liabilities are presented net in the statement of financial position when there is a legally enforceable right and the intention to offset them upon the calculation of current taxes, generally when related to the same legal entity and the same jurisdiction. Accordingly, deferred tax assets and liabilities in different entities or in different countries are generally presented separately, and not on a net basis. iii) Sales and other taxes Revenues, expenses and assets are recognized net of sales tax, except: • When the sales taxes incurred on the purchase of goods or services are not recoverable from tax authorities, in which case the sales tax is recognized as part of the cost of acquiring the asset or expense item, as applicable; • When the amounts receivable or payable are stated with the amount of sales taxes included. The net amount of sales taxes, recoverable or payable to the tax authority, is included as part of receivables or payables in the balance sheet, and net of corresponding revenue or cost / expense, in the statement of income. Sales revenues in Brazil are subject to taxes and contributions, at the following statutory rates: • PIS and COFINS are contributions levied by the Brazilian Federal government on gross revenues. These amounts are invoiced to and collected from the Group’s customers and recognized as deductions to gross revenue (Note 26) against tax liabilities, as we are acting as tax withholding agents on behalf of the tax authorities. PIS and COFINS paid on certain purchases may be claimed back as tax credits to offset PIS and COFINS payable. These amounts are recognized as Recoverable taxes (Note 11) and are offset monthly against Taxes payable and presented net, as the amounts are due to the same tax authority. PIS and COFINS are contributions calculated on two different regimes according to Brazilian tax legislation: cumulative method and non-cumulative The non-cumulative Otherwise, the cumulative method should be adopted by entities under the Presumed Profit Method (PPM) and is also mandatory to Financial and Insurance Companies. The rate applicable to companies under PPM are PIS 0.65% and COFINS 3.00%. Financial entities (i.e., XP CCTVM) and Insurance companies (i.e., XP Vida e Previdência) have a different percentage of COFINS with the surcharge of 1.00%, totaling 4.00%. • ISS is a tax levied by municipalities on revenues from the provision of services. ISS tax is added to amounts invoiced to the Group’s customers for the services the Group renders. These are recognized as deductions to gross revenue (Note 26) against tax liabilities, as the Group acts as agent collecting these taxes on behalf of municipal governments. The rates may vary from 2.00% to 5.00%. The ISS stated in the table is applicable to the city of São Paulo and Rio de Janeiro refers to the rate most commonly levied on the Group’s operations. • INSS is a social security charge levied on wages paid to employees. | |
Equity Security Loans | (xii) Equity security loans Represent liabilities to return cash proceeds from security lending transactions. Securities lending transactions are used primarily to earn spread income which relates mainly to equity securities received with a fixed term payable, based on the fair value of the securities plus pro rata interest over the period of the loan. Equity securities borrowed are recognized as unrestricted assets on the statement of financial position and may be sold to third parties. The Equity security loans is recorded as a trading liability and measured at fair value with any gains or losses included in the income statement under net fair value gains/(losses) on financial instruments (Note 26 b). | |
Borrowings and Debentures | (xiii) Borrowings and debentures Borrowings and debentures are recognized initially at fair value, net of transaction costs incurred, and subsequently carried at amortized cost. Any difference between the proceeds (net of transaction costs) and the total amount payable is recognized in the statement of income over the period of the borrowings using the effective interest rate method. Borrowing and debentures costs are recognized as interest expense on debt in the period in which they are incurred. The Group does not have qualifying assets to which costs could be capitalized. | |
Accounts Payables | (xiv) Accounts payables Accounts payables are obligations to pay for goods or services that have been acquired in the ordinary course of business. Accounts payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest rate method. | |
Private Pension Liabilities | (xv) Private pension liabilities Private pension plans, relates to accumulation of financial resources, called PGBL (Plan Generator of Benefits), a plan that aims at accumulating funds for participant’s retirement in life, and VGBL (Redeemable Life Insurance), a financial product structured as a pension plan. In both products, the contribution received from the participant is applied to a Specially Constituted Investment Fund (“FIE”) and accrues interest based on FIE investments. The private pension products offered by Company do not contain significant insurance risk where the Company accepts significant insurance risk from participants by agreeing to compensate them if a specified uncertain future event adversely affects them. These products also do not contain any discretionary participation features. Therefore, the contracts are accounted for under the scope of IFRS 9, Financial Instruments (“IFRS 9”). | |
Provisions | (xvi) Provisions Provisions for legal claims (labor, civil and tax) are recognized when: (i) the Group has a present legal or constructive obligation as a result of past events; (ii) it is probable that an outflow of resources will be required to settle the obligation; and (iii) the amount can be reliably estimated. Provisions do not include future operating losses. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognized even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax | |
Employee Benefits | (xvii) Employee benefits i) Short-term obligations Liabilities in connection with short-term employee benefits are measured on a non-discounted The liability is recognized for the expected amount to be paid under the plans of cash bonus or short-term profit sharing if the Group has a legal or constructive obligation of paying this amount due to past service provided by employees and the obligation may be reliably estimated. ii) Share-based plan The establishment of the shared-based plan was approved by the board of Director’s meeting on December 6, 2019. The Company launched two share-based plans, the Restricted Stock Unit “RSU” and the Performance Share Unit (“PSU”). The shared-based plans are designed to provided long-term incentives to certain employees, directors, and other eligible service providers in exchange for their services. For both plans, management commits to grant shares of XP Inc to the defined participants. The cost of share-based compensation is measured using the fair value at the grant date. The cost is expensed together with a corresponding increase in equity over the service period or on the grant date when the grant relates to past services. The total amount to be expensed is determined by reference to the fair value of the tranche shares granted at the grant date, which is also based on: • Including any market performance conditions; • Including the impact of any non-market • Including the impact of any non-vesting The total expense is recognized over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of shares that are expected to vest based on the non-market When the shares are vested, the Company transfers the correspondent number of shares to the participant. The shares received by the participants, net of any directly attributable transactions costs (including withholding taxes) are credited directly to equity. The significant judgments, estimates and assumptions regarding share-based payments and activity relating to share-based payments are discussed further in Note 30. iii) Profit-sharing and bonus plans The Group recognizes a liability and an expense for bonuses and profit-sharing based on a formula that takes into consideration the profit attributable to the owners of the Company after certain adjustments, and distributed based on individual and collective performance, including qualitative and quantitative indicators. Employee profit-sharing terms are broader established by means of annual collective bargaining with workers’ unions. The Group recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation. | |
Share Capital | (xviii) Share capital Common shares are classified in equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. | |
Earnings Per Share | (xix) Earnings per share Basic earnings per share is calculated by dividing the profit attributable to owners of the Company, excluding any costs of servicing equity other than ordinary and preferred shares by the weighted average number of ordinary and preferred shares outstanding during the year, adjusted for bonus elements in ordinary and preferred shares issued during the year and excluding treasury shares (Note 31). Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after-income tax effect of interest and other financing costs associated with dilutive potential common and preferred shares, and the weighted average number of additional common and preferred shares that would have been outstanding assuming the conversion of all dilutive potential common and preferred shares. | |
Revenue and Income | (xx) Revenue and income 1) Revenue from contracts with customers Revenue is recognized when the Group has transferred control of the services to the customers, in an amount that reflects the consideration the Group expects to collect in exchange for those services. The Group applies the following five steps: i) identification of the contract with a customer; ii) identification of the performance obligations in the contract; iii) determination of the transaction price; iv) allocation of the transaction price to the performance obligations in the contract; and v) recognition of revenue when or as the entity satisfies a performance obligation. Revenue is recognized net of taxes collected from customers, which are subsequently remitted to governmental authorities. The Group has discretion to involve and contract a third-party providers in providing services to the customer on its behalf. The Group presents the revenues and associated costs to such third-party providers on a gross basis where it is deemed to be the principal and on a net basis where it is deemed to be the agent. Generally, the Group is deemed to be the principal in these arrangements because the Group controls the promised services before they are transferred to customers, and accordingly presents the revenue gross of related costs. The Group main types of revenues contracts are: i) Brokerage commission Brokerage commission revenue consist of revenue generated through commission-based brokerage services on each transaction carried out on i.e. the stock exchanges for customers, recognized at a point in time (trade date) as the performance obligation is satisfied. ii) Securities placement Securities placement revenue refers to fees and commissions earned on the placement of a wide range of securities on behalf of issuers and other capital raising activities, such as mergers and acquisitions, including related finance advisory services. The act of placing the securities is the sole performance obligation and revenue is recognized at the point in time when the underlying transaction is complete under the engagement terms and it is probable that a significant revenue reversal will not occur. iii) Management fees Management fees relates substantially to (i) services as investments advisor from funds, investment clubs and wealth management; and (ii) distributions of quotas from investments funds managed by others. Revenue is recognized over the period of time when this performance obligation is delivered, and generally based on an agreed-upon fixed percentage of the net asset value of each fund on a monthly basis. A part of management fees are performance-based (performance fees), which are recognized for the delivery of asset management services and calculated based on appreciation of the net asset value of the funds, subject to certain thresholds, such as internal rates of returns or hurdle rates in accordance with the terms of the fund’s constitution. Performance fees, which includes variable consideration, are only recognized after an assessment of the facts and circumstances and when it is highly probable that significant reversal of the amount of cumulative revenue recognized will not occur when the uncertainty is resolved. iv) Insurance brokerage fee Refers to insurance brokerage, capitalization, pension plans and health insurance through the intermediation of the sale of insurance services. Revenues are recognized after the provision of brokerage services to insurers. Products that were sold through XP Corretora de Seguros are inspected monthly, and amounts received from commission are recognized as revenue at a point in time as the performance obligation is satisfied. v) Educational services Educational revenue relates to advising and consulting on finance, financial planning, business management and the development of courses and business training programs in the national territory through the development and management of courses. vi) Other services Other services refers to revenue related to finance advisory services, advertisements on the Group’s website and sponsorship on events held by the Group. 2) Net income from financial instruments Net income from financial instruments include realized gains and losses on the sales of investments, unrealized gains and losses resulting from our investments measured at fair value and interest earned on both cash balances and investments in connection with our trading activities. These gains and losses are outside the scope of IFRS 15 but in scope of IFRS 9 – Financial Instruments, and the related accounting policies are disclosed in Note 3. | |
Changes in Accounting Policies | (xxi) Changes in accounting policies (xx.1) IFRS 16—Leases As indicate in note above the group has adopted IFRS 16 Leases, starting from January 1, 2019, leases of property, plant and equipment where the group, as lessee, has substantially all the risks and rewards of ownership were classified as operating leases (note 3(vii)). The new policy is described Note 3(vii) and the impact of the change in Note 13(d). (xx.2) IFRIC Interpretation 23—Uncertainty over Income Tax Treatment The interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12 Income Taxes • Whether an entity considers uncertain tax treatments separately; • The assumptions an entity makes about the examination of tax treatments by taxation authorities; • How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates; • How an entity considers changes in facts and circumstances. An entity has to determine whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments. The approach that better predicts the resolution of the uncertainty needs to be followed. The Group applied the interpretation and did not have significant impact on the consolidated financial statements. |
Basis of preparation of the f_2
Basis of preparation of the financial statements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Text Block [Abstract] | |
Summary of direct and indirect interests of Company | There were no changes since December 31, 2019 in the accounting practices adopted for consolidation of the Company’s direct and indirect interests in its subsidiaries for the purposes of these unaudited interim condensed consolidated financial statements, except for the following items: % of Group’s interest (i) Entity name Country of Principal activities September 30, December 31, Indirectly controlled XP Allocation Asset Management Ltda. (ii) Brazil Asset management 99.97 % — Track Índices Consultoria Ltda. (ii) Brazil Index Provider 100.00 % — XP Eventos Ltda. (ii) Brazil Media and Events 99.00 % — Carteira Online Controle de Investimentos Ltda.-ME Brazil Investment 99.99 % — Antecipa S.A. (iii) Brazil Receivables 100.00 % — Consolidated investments funds NIMROD Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior (ii) Brazil Investment fund 100.00 % — XP High Yield Fund SP (ii) Cayman Investment fund 100.00 % — XP International Fund SPC (ii) Cayman Investment fund 100.00 % — Spatha Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior (iv) Brazil Investment fund — 100.00% Balista Debentures Incentivadas Fundo de Investimento Multimercado Crédito Privado (iv) Brazil Investment fund — 100.00% (i) The percentage of participation represents the Group’s interest in total capital and voting capital of its subsidiaries. (ii) New subsidiaries and investment funds commenced operations in the period. (iii) New subsidiaries acquired in the period. (iv) Investiments funds closed during the period. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of significant accounting policies [Abstract] | |
Summary of Adoption of IFRS 16 On Lease Liabilities | On adoption of IFRS 16, the Group recognized lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of IAS 17 These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of January 1, 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on January 1, 2019 was 9.0%. Operating lease commitments disclosed as of December 31, 2018 209,318 Discounted using the incremental borrowing rate of at the date of initial application (60,099 ) (Less): short-term leases recognized on a straight-line basis as expense (725 ) Lease liability recognized as of January 1, 2019 148,494 |
Summary of Right-Of-Use Assets Related to Property and Equipment Leases | The associated right-of-use Lease liability recognized as of January 1, 2019 148,494 (Less): accrued lease payments as of December 31, 2018 (14,624 ) Total right-of-use 133,870 Represented by: Properties 123,262 Equipments 10,608 |
Summary of Depreciation of Property and Equipment | Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows: Annual Rate (%) Data Processing Systems 20 % Furniture and equipment 10 % Security systems 10 % Facilities 10 % |
Summary of Useful Lives of the Intangible Assets | The amortization of intangible assets with definite lives is recognized in profit or loss in the expense category consistent with the use of intangible assets. The useful lives of the intangible assets are shown below: Estimate useful life (years) Software 3-5 Internally developed intangible 3-7 Customer list 2-8 Trademarks 10-20 |
Group structure (Tables)
Group structure (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of subsidiaries [abstract] | |
Summary of Direct and Indirect Interests of Company in Its Subsidiaries | The following are the direct and indirect interests of Company in its subsidiaries for the purposes of these consolidated financial statements: % of Group’s interest (i) Entity name Country of Principal activities 2019 2018 2017 Directly controlled XP Investimentos S.A. Brazil Holding 100.00 % 100.00 % 100.00 % Indirectly controlled XP Investimentos Corretora de Câmbio, Títulos e Valores Mobiliários S.A. Brazil Broker-dealer 100.00 % 100.00 % 100.00 % XP Investments US, LLC USA Broker-dealer 100.00 % 100.00 % 100.00 % XP Investments UK LLP UK Inter-dealer broker 100.00 % 100.00 % 99.90 % Sartus Capital LTD UK Investment advisor 100.00 % 100.00 % 100.00 % XP Private (Europe) S.A. UK Investment advisor 100.00 % 100.00 % 100.00 % XP Vida e Previdência S.A. (v) Brazil Private pension and insurance 100.00 % 100.00 % — Banco XP S.A. (vi) Brazil Multipurpose bank 100.00 % — — Xperience Market Services LLC (vi) USA Non-operational 100.00 % — — Chamaleon Bravery Unipessoal LDA (vi) Portugal Investment Advisor (pending 100.00 % — — XP Holding Investimentos S.A. Brazil Financial Holding — — 100.00 % XP Controle 3 Participações S.A. Brazil Financial Holding 100.00 % 100.00 % 100.00 % XPE Infomoney Educação Assessoria Empresarial e Participações Ltda. Brazil Digital Content services 99.99 % 99.70 % 96.69 % Tecfinance Informática e Projetos de Sistemas Ltda. Brazil Rendering of IT services 99.76 % 99.73 % 99.73 % XP Corretora de Seguros Ltda. Brazil Insurance Broker 99.99 % 99.82 % 99.81 % XP Gestão de Recursos Ltda. Brazil Asset management 93.70 % 92.80 % 91.65 % XP Finanças Assessoria Financeira Ltda. Brazil Investment consulting service 99.99 % 99.99 % 99.95 % Infostocks Informações e Sistemas Ltda. Brazil Mediation of information 99.99 % 99.99 % 99.99 % XP Advisory Gestão Recursos Ltda. Brazil Asset management 99.57 % 99.52 % 99.52 % XDEX Intermediação Ltda. (iii) Brazil Intermediary and service agency — — 99.99 % XP Holding International LLC USA International financial holding 100.00 % 100.00 % 100.00 % XP Advisory US USA Investment advisor 100.00 % 100.00 % 100.00 % XP Holding UK Ltd UK International financial holding 100.00 % 100.00 % 100.00 % XP Vista Asset Management Ltda. (iv) Brazil Asset management 99.42 % 99.60 % — XP Controle 4 Participações S.A. (v) Brazil Insurance holding 100.00 % 100.00 % — Leadr Serviços Online Ltda. (vi) Brazil Social media 99.99 % — — Spiti Análise Ltda. (vi) Brazil Research (pending regulatory 99.99 % — — Consolidated investments funds Falx Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior Brazil Investment fund 100.00 % 100.00 % 100.00 % Gladius Fundo de Investimento Multimercado Investimento no Exterior Brazil Investment fund 100.00 % 100.00 % 100.00 % Scorpio Debentures Incentivadas Fundo de Investimento Multimercado Crédito Privado Brazil Investment fund 100.00 % 100.00 % 100.00 % Galea Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior Brazil Investment fund 100.00 % 100.00 % 100.00 % Javelin Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior Brazil Investment fund 100.00 % 100.00 % 100.00 % Spatha Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior Brazil Investment fund 100.00 % 100.00 % — Frade Fundo de Investimento em Cotas de Fundos de Investimento em Direitos Creditórios NP Brazil Investment fund 100.00 % 100.00 % — Frade III Fundo de Investimento em Cotas de Fundo de Investimento Multimercado Crédito Privado (vi) Brazil Investment fund 100.00 % — — Balista Debentures Incentivadas Fundo de Investimento Multimercado Crédito Privado (vi) Brazil Investment fund 100.00 % — — Coliseu Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior (vi) Brazil Investment fund 100.00 % — — XP Short Brasil Alavancado Fundo de Investimento Multimercado Investimento no Exterior (vii) Brazil Investment fund — — 100.00 % XP Pacote Brasil Alavancado Fundo de Investimento Multimercado Investimento no Exterior (vii) Brazil Investment fund — — 100.00 % (i) The percentage of participation represents the Group’s interest in total capital and voting capital of its subsidiaries. (ii) Subsidiaries legally merged into their respective immediate parent, with no impact on the consolidated financial statements. (iii) Relates to subsidiary incorporated in 2017 sold to Company’s controlling shareholders in 2018 at its early stages. (iv) Subsidiary acquired in 2018. See further details in Note 5 (ii) below. (v) Subsidiaries incorporated in 2018 for operating in the private pension and life insurance business, which is regulated by the Superintendency of Private Insurance (SUSEP) in Brazil. (vi) New subsidiaries and investment funds incorporated in the year. (vii) Investment funds closed during the year. |
Summary of the Net Assets Acquired, the Goodwill | Details of the net assets acquired, the goodwill and the purchase consideration are as follows: Fair value Assets Cash 96 Financial instruments (FVPL) 356,648 Financial instruments (FVOCI) 20,212 Accounts receivable 1,915 Other assets 11,582 Deferred tax assets 3,751 Property and equipment (Note 13 (a)) 1,728 Intangible assets (Note 13 (b)) 75,813 471,745 Liabilities Social and statutory obligations (560 ) Tax and social security obligations (12,651 ) Securities trading and intermediation (322,371 ) Provisions and continget liabilities (Note 25) (7,921 ) Other liabilities (5,217 ) (348,720 ) Total identifiable net assets at fair value 123,025 Goodwill arising on acquisition (Note 13 (b)) 281,702 Purchase consideration transferred 404,727 Analysis of cash flows on acquisition Consideration paid in cash 404,727 Net cash acquired with the subsidiary (96 ) Net of cash flow on acquisition (investing activities) 404,631 |
Summary of Intangible Assets Acquired | For the purchase price allocation, the following intangible assets were identified. The valuation techniques used for measuring the fair value of separately identified intangible assets acquired were as follows: Assets Amount Method Expected Customer list 50,077 Multi-period excess earning method 8 years Trademark 19,304 Relief from royalty 10 years Technology 2,028 Relief from royalty 3 years |
Securities purchased (sold) u_2
Securities purchased (sold) under resale (repurchase) agreements (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Summary of securities purchased under agreements to resell [Abstract] | ||
Summary of securities purchased under agreements to resell | a) Securities purchased under agreements to resell September 30, 2020 December 31, Available portfolio 1,883,825 971,991 National Treasury Notes (NTNs) 1,639,174 771,099 Financial Treasury Bills (LFTs) — 195,980 National Treasury Bills (LTNs) 244,651 4,912 Collateral held 16,359,863 8,518,099 National Treasury Bills (LTNs) 397,275 1,764,410 National Treasury Notes (NTNs) 15,962,588 6,753,689 Total 18,243,688 9,490,090 | 2019 2018 Available portfolio 971,991 488,809 National Treasury Notes (NTNs) 771,099 65,136 Financial Treasury Bills (LFTs) 195,980 38,014 National Treasury Bills (LTNs) 4,912 385,659 Collateral held 8,518,099 6,081,800 National Treasury Bills (LTNs) 1,764,410 4,911,635 National Treasury Notes (NTNs) 6,753,689 1,170,165 Total 9,490,090 6,570,609 |
Summary of Securities sold under repurchase agreements | b) Securities sold under repurchase agreements September 30, 2020 December 31, 2019 National Treasury Bills (LTNs) 12,682,922 5,653,994 National Treasury Notes (NTNs) 22,571,006 8,533,113 Financial Treasury Bills (LFTs) — 1,451,300 Total 35,253,928 15,638,407 |
Loan operations (Tables)
Loan operations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Loan Operations [Abstract] | |
Summary of loan operations | Following are the breakdown of the carrying amount of loan operations by class, sector of debtor, maturity and concentration: Loans by type September 30, December 31, Retail Pledged asset loan 947,449 388 Credit card 8,061 — Corporate Pledged asset loan 316,412 — Non-pledged 104,368 — Total Loans operations 1,376,290 388 Expected Credit Loss (7,056 ) (2 ) Total loans operations, net of Expected Loss 1,369,234 386 |
Summary of loan operations based on maturity | By maturity September 30, 2020 December 31, 2019 Due in 3 months or less 68,783 388 Due after 3 months through 12 months 287,720 — Due after 12 months 1,019,786 — Total Loans operations 1,376,289 388 |
Securities (Tables)
Securities (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure of financial assets [abstract] | ||
Summary of securities classified at fair value through profit and loss and at fair value through other comprehensive income | a) Securities classified at fair value through profit and loss and at fair value through other comprehensive income September 30, 2020 December 31, 2019 Gross Fair value Gross Fair Value Financial assets At fair value through profit and loss 38,569,036 38,701,519 22,332,936 22,443,392 Agribusiness receivables certificates 179,155 177,095 598,085 589,525 Bank deposit certificates (i) 368,845 370,385 244,071 246,827 Brazilian government bonds 25,239,874 25,280,046 15,404,300 15,494,046 Certificate of real estate receivable 126,791 124,056 75,922 75,123 Debentures 1,034,742 1,018,893 885,344 885,068 Financial credit bills 82,439 82,683 98,068 106,759 Investment funds (ii) 7,656,488 7,656,266 3,047,198 3,047,198 United States government bonds 666,870 702,869 — — Real estate credit bill 1,632 1,651 1,282 1,300 Stocks issued by public-held company 2,546,996 2,546,996 1,562,965 1,562,965 Structured operations certificate 410,022 470,652 237,112 256,381 Others (iii) 255,182 269,927 178,589 178,200 At fair value through other comprehensive income 9,637,582 9,588,773 2,608,325 2,616,118 National treasury bill 9,637,582 9,588,773 2,608,325 2,616,118 | a) Securities classified at fair value through profit and loss and at fair value through other comprehensive income are presented in the following table: 2019 2018 Gross carrying Fair value Gross carrying Fair value Financial assets At fair value through profit or loss 22,332,936 22,443,392 6,262,735 6,290,971 Agribusiness receivables certificates 598,085 589,525 85,668 85,874 Bank deposit certificates (i) 244,071 246,827 172,451 171,725 Brazilian government bonds 15,404,300 15,494,046 3,826,902 3,853,534 Certificate of real estate receivable 75,922 75,123 208,442 207,167 Debentures 885,344 885,068 325,459 326,403 Financial credit bills 98,068 106,759 45,040 44,663 Investment funds 3,047,198 3,047,198 279,013 279,013 Others (ii) 178,589 178,200 167,714 167,716 Real estate credit bill 1,282 1,300 3,697 4,883 Structured transaction certificate 237,112 256,381 21,275 22,949 Stocks issued by public-held company 1,562,965 1,562,965 1,127,074 1,127,044 At fair value through other comprehensive income 2,608,325 2,616,118 688,731 695,778 National treasury bill 2,608,325 2,616,118 688,731 695,778 (i) Bank deposit certificates include R$ 123,817 (2018 – R$ 69,647) is being presented as cash equivalents in the statements of cash flows. (ii) Mainly related to bonds issued and traded overseas. |
Summary of securities evaluated at amortized cost | b) Securities evaluated at amortized cost September 30, 2020 December 31, 2019 Gross Book Value Gross Book Value Financial assets At amortized cost 1,366,038 1,366,038 2,266,971 2,266,971 Bonds 1,366,038 1,366,038 2,266,971 2,266,971 | b) Securities evaluated at amortized cost are presented in the following table: 2019 2018 Gross carrying Book value Gross carrying Book value Financial assets At amortized cost Bonds 2,266,971 2,266,971 155,292 155,292 |
Summary of securities on the financial liabilities classified at fair value through profit or loss | c) Securities on the financial liabilities classified at fair value through profit or loss September 30, 2020 December 31, 2019 Gross Book value Gross Book Value Financial liabilities At fair value through profit or loss 1,111,770 1,111,770 2,021,707 2,021,707 Securities 1,111,770 1,111,770 2,021,707 2,021,707 | c) Securities on the financial liabilities classified at fair value through profit or loss are presented in the following table: 2019 2018 Gross carrying Book value Gross carrying Book value Financial liabilities At fair value through profit or loss Securities loaned 2,021,707 2,021,707 1,259,579 1,259,579 |
Summary of securities classified by maturity | d) Securities classified by maturity Assets Liabilities September 30, December 31, September 30, December 31, Financial assets At fair value through P&L and at OCI Current 22,696,712 9,804,819 1,111,770 2,021,707 Non-stated 10,466,704 4,999,333 1,111,770 2,021,707 Up to 3 months 644,886 257,544 — — From 3 to 12 months 11,585,122 4,547,942 — — Non-current 25,593,580 15,254,691 — — After one year 25,593,580 15,254,691 — — Evaluated at amortized cost Current 1,366,038 2,266,971 — — Up to 3 months 194,334 807,218 — — From 3 to 12 months 1,171,704 1,459,753 — — Total 49,656,330 27,326,481 1,111,770 2,021,707 | Below is presented the securities classified by maturity: Assets Liabilities 2019 2018 2019 2018 Financial assets At fair value through PL and at OCI Current 9,804,819 1,875,374 2,021,707 1,192,877 Non-stated 4,999,333 1,425,401 2,021,707 — Up to 3 months 257,544 192,208 — 1,184,972 From 3 to 12 months 4,547,942 257,765 — 7,905 Non-current 15,254,691 5,111,375 — 66,702 After one year 15,254,691 5,111,375 — 66,702 Evaluated at amortized cost Current 2,266,971 155,292 — — Non-staded 807,218 — — — From 3 to 12 months 1,459,753 155,292 — — Total 27,326,481 7,142,041 2,021,707 1,259,579 |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [abstract] | ||
Summary of positions with derivative financial instruments | Positions with derivative financial instruments as of December 31, 2019 and 2018 are shown below: 2019 Assets Liabilities Fair value Notional Fair value Notional Swaps 1,133,768 3,955,473 485,164 3,420,857 Forward contracts 187,392 1,857,542 2,480 164,209 Futures contracts 21,809 15,920,584 — — Options 2,742,035 498,484,022 2,741,592 488,482,756 Total 4,085,004 520,217,621 3,229,236 492,067,822 2018 Assets Liabilities Fair value Notional Fair value Notional Swaps 244,262 3,454,728 247,732 3,981,304 Forward contracts 573,963 809,202 17,170 19,142 Futures contracts 6,599 5,679,425 — — Options 867,207 78,746,383 726,497 82,579,675 Total 1,692,031 88,689,738 991,399 86,580,121 | |
Summary of the Derivative financial instruments portfolio (assets and liabilities) by type of instrument | Below is the composition of the derivative financial instruments portfolio (assets and liabilities) by type of instrument, stated fair value and by maturity: September 30, 2020 Notional Fair Value % Up to 3 months From 3 to 12 months Above 12 months Assets Options 602,159,341 6,602,467 50 1,649,905 229,791 4,722,771 Swap contracts 16,819,387 637,693 5 38,784 156,750 442,159 Forward contracts 14,566,817 5,901,156 45 5,651,129 161,202 88,825 Future contracts 22,282,253 7,451 — 7,451 — — Total 655,827,798 13,148,767 100 7,347,269 547,743 5,253,755 Liabilities Options 574,319,779 6,524,516 52 1,372,572 153,207 4,998,737 Swap contracts 5,517,378 693,187 5 75,816 170,932 446,439 Forward contracts 10,248,842 5,492,148 43 5,458,963 13,058 20,127 Future contracts 20,343,451 19,745 — 19,745 — — Total 610,429,450 12,729,596 100 6,927,096 337,197 5,465,303 December 31, 2019 Notional Fair Value % Up to 3 months From 3 to 12 months Above 12 months Assets Options 498,484,022 2,742,035 67 1,837,073 577,177 327,785 Swap contracts 3,955,473 1,133,768 27 10,418 700,668 422,682 Forward contracts 1,857,542 187,392 5 159,163 28,175 54 Future contracts 15,920,584 21,809 1 21,809 — — Total 520,217,621 4,085,004 100 2,028,463 1,306,020 750,521 Liabilities Options 488,482,756 2,741,592 85 1,745,532 637,393 358,667 Swap contracts 3,420,857 485,164 14 15,838 40,687 428,639 Forward contracts 164,209 2,480 1 1,693 325 462 Total 492,067,822 3,229,236 100 1,763,063 678,405 787,768 | Below is the composition of the Derivative financial instruments portfolio (assets and liabilities) by type of instrument, stated fair value and by maturity: 2019 Fair Value % Up to From 3 to Above Assets Swap contracts 1,133,768 27 10,418 700,668 422,682 Forward contracts 187,392 5 159,163 28,175 54 Future contracts 21,809 1 21,809 — — Options 2,742,035 67 1,837,073 577,177 327,785 Total 4,085,004 100 2,028,463 1,306,020 750,521 Liabilities Options 2,741,592 85 1,745,532 637,393 358,667 Forward contracts 2,480 1 1,693 325 462 Swap contracts 485,164 14 15,838 40,687 428,639 Total 3,229,236 100 1,763,063 678,405 787,768 2018 Fair value % Up to 3 months From 3 to 12 Above 12 months Assets Swap contracts 244,262 14 4,675 25,054 214,533 Forward contracts 573,963 34 363,863 210,100 — Future contracts 6,599 1 4,613 1,986 — Options 867,207 51 255,281 234,742 377,184 Total 1,692,031 100 628,432 471,882 591,717 Liability Options 726,497 73 128,470 217,387 380,640 Forward contracts 17,170 2 16,972 25 173 Swap contracts 247,732 25 7,710 25,094 214,928 Total 991,399 100 153,152 242,506 595,741 |
Summary of derivatives financial instruments by index | Derivatives financial instruments by index: 2019 2018 Notional Fair Value Notional Fair Value Swap Contracts Asset Position Interest 3,955,473 1,133,768 3,454,728 244,262 Liability Position Interest 3,420,857 (485,164 ) 3,981,304 (247,732 ) Forward Contracts Asset Position Foreign exchange 1,710,648 40,499 239,478 4,239 Share — — 342,681 342,681 Interest 146,893 146,893 227,043 227,043 Liability Position Foreign exchange 162,551 (822 ) 2,234 (262 ) Shares 1,658 (1,658 ) 16,908 (16,908 ) Future Contracts Purchase commitments Foreign exchange 965 329 5,679,425 6,599 Interest 15,919,619 21,480 — — Options Purchase commitments Foreign exchange 37,500 82,369 1,734,063 115,570 Share 1,770,220 210,448 5,500,627 365,631 Commodities — — 213 1,582 Interest 496,676,302 2,449,218 71,511,480 384,424 Commitments to sell Foreign exchange 37,500 (94,612 ) 2,059,104 (171,918 ) Shares 2,511,960 (229,291 ) 3,245,796 (172,748 ) Commodities — — 130 (1,391 ) Interest 485,933,296 (2,417,689 ) 77,274,645 (380,440 ) Assets 4,085,004 1,692,031 Liabilities (3,229,236 ) (991,399 ) Net 855,768 700,632 |
Hedge accounting (Tables)
Hedge accounting (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about hedging instruments [abstract] | ||
Summary of detailed information about hedging instruments | The Group undertakes risk management through the economic relationship between hedge instruments and hedged item, in which it is expected that these instruments will move in opposite directions, in the same proportions, with the aim of neutralizing the risk factors. Hedged item Hedge instrument Book Value Variation in Nominal Variation in Strategies Assets Liabilities September 30, 2020 Foreign exchange risk Hedge of net investment in foreign operations 224,539 — 70,882 395,977 (80,370 ) Total 224,539 — 70,882 395,977 (80,370 ) December 31, 2019 Foreign exchange risk Hedge of net investment in foreign operations 186,412 — 5,946 248,896 (7,133 ) Total 186,412 — 5,946 248,896 (7,133 ) | The Group undertakes risk management through the economic relationship between hedge instruments and hedged item, in which it is expected that these instruments will move in opposite directions, in the same proportions, with the aim of neutralizing the risk factors. Hedged item Hedge instrument Book Value Variation in Nominal Variation in Strategies Assets Liabilities 2019 Foreign exchange risk Hedge of net investment in foreign operations 186,412 — 5,946 248,896 (7,133 ) Total 186,412 — 5,946 248,896 (7,133 ) 2018 Foreign exchange risk Hedge of net investment in foreign operations 147,179 — 18,645 225,901 (17,495 ) Total 147,179 — 18,645 225,901 (17,495 ) 2017 Foreign exchange risk Hedge of net investment in foreign operations 100,323 — 2,034 145,552 (2,386 ) Total 100,323 — 2,034 145,552 (2,386 ) |
Summary of detailed information about hedging accounting on the financial position | The effects of hedge accounting on the financial position and performance of the Group are presented below: Hedged item Hedge instrument Book Value Variation in Nominal Variation in the amounts used to Strategies Assets Liabilities September 30, 2020 Interest rate risk Hedge of fixed-income securities — 1,142,457 51,787 1,159,250 (51,361 ) Total — 1,142,457 51,787 1,159,250 (51,361 ) | |
Summary of detailed information about ineffectiveness in relation to the fair value hedging | For the period ended of September 30, 2020, there was no ineffectiveness in relation to the fair value hedge. September 30, Notional Book value (i) Variation in fair value Hedge ineffectiveness Hedge Instruments Assets Liabilities Interest rate risk Futures 1,159,250 — 1,142,457 (51,361 ) 427 | |
Summary of detailed information about fair value adjustment of hedging instruments | The table below presents, for each strategy, the notional amount and the fair value adjustments of hedge instruments and the book value of the hedged item: Strategies Hedge instruments September 30, Hedge instruments December 31, Notional Fair value Book value Notional Fair value Book value Hedge of Fair Value 1,159,250 51,787 (51,361 ) — — — Hedge of net investment in foreign operations 395,977 (80,370 ) (80,370 ) 248,896 5,946 (7,133 ) Total 1,555,227 (28,583 ) (131,731 ) 248,896 5,946 (7,133 ) | |
Summary of detailed information about breakdown by maturity of hedging strategies | The table below shows the breakdown by maturity of the hedging strategies: September 30, 2020 0-1 year 1-2 years 2-3 years 3-4 4-5 5-10 years Total Hedge of Fair Value (2 ) (14 ) (563 ) — (30,698 ) (20,084 ) (51,361 ) Hedge of net investment in foreign operations (8,732 ) — — (30,284 ) (41,354 ) — (80,370 ) Total (8,734 ) (14 ) (563 ) (30,284 ) (72,052 ) (20,084 ) (131,731 ) December 31, 0-1 1-2 2-3 3-4 4-5 5-10 Total Hedge of Fair Value — — — — — — — Hedge of net investment in foreign operations (198 ) — — (2,932 ) (4,003 ) — (7,133 ) Total (198 ) — — (2,932 ) (4,003 ) — (7,133 ) |
Accounts receivable (Tables)
Accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trade and other receivables [abstract] | |
Summary of Accounts receivable | 2019 2018 Customers (a) 458,776 203,604 Dividends and interest receivable on equity capital—Funds 7,052 18,852 Other 702 181 (-) Expected losses on accounts receivable (4,501 ) (3,437 ) Total 462,029 219,200 (a) Refers to receivables from management fee arising from the distribution of funds and amounts receivable related to service provision, which have an average term of 30 days. There is no concentration on the balances receivable as of December 31, 2019 and 2018. |
Recoverable Taxes (Tables)
Recoverable Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Summary of Recoverable Taxes | 2019 2018 Prepayments of income taxes (IRPJ and CSLL) 225,465 182,021 Contributions over revenue (PIS and COFINS) 16,859 533 Taxes on services (ISS) 846 698 Value added taxes (VAT) 150 98 Total 243,320 183,350 Current 243,320 183,350 Non-current — — |
Prepaid Expenses (Tables)
Prepaid Expenses (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | ||
Summary of Prepaid Expenses | September 30, December 31, Commissions and premiums paid in advance (a) 1,035,869 49,233 Marketing expenses 8,110 9,678 Services paid in advance 1,124 2,043 Other expenses paid in advance 45,895 28,730 Total 1,090,998 89,684 Current 461,304 56,605 Non-current 629,694 33,079 (a) Mostly comprised by long term investment programs implemented by XP CCTVM through its network of IFAs. These commissions and premiums paid are recognized at the signing date of each contract and are amortized in the statement of income of the Company, linearly, according to the investment term period. | 2019 2018 Incentives for business acceleration program 11,349 22,125 Marketing expenses 9,678 41,276 Commissions and premiums paid in advance 49,233 21,431 Services paid in advance 2,043 5,180 Other expenses paid in advance 17,381 6,711 Total 89,684 96,723 Current 56,605 56,302 Non-current 33,079 40,421 |
Investments in associates and_2
Investments in associates and joint ventures (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Associates Joint Ventures And Subsidiaries [Abstract] | |
Summary of detail of interest in other entities | Name of entity % of Nature of Measurement Equity Carrying Du Agro Holdings S.A. 49 % Joint Venture (1) Equity method 479 235 VPL Gestão Patrimonial e Participações S.A. 49 % Associate (2) Equity method 150,000 74,851 O Primo Rico Mídia, Educacional e Participações Ltda. 20 % Associate (3) Equity method (520 ) (105 ) Total equity-accounted investments 149,959 74,981 (1) On June 23, 2020, the Company acquired a 49% interest in DuAgro Holdings S.A. (“DuAgro”), a joint venture involved in the agribusiness. DuAgro is an integrated platform that utilizes technology to finance the purchase of agricultural inputs. The focus is on small- and medium-sized (2) On September 8, 2020, the Company entered into an agreement to hold a 49.9% minority stake of the total share capital of VPL Gestão Patrimonial e Participações S.A..With this transaction XP Inc. is complementing the existing offering to ultra-high-net-worth (3) O Primo Rico is a company focused on digital content services, including developing and selling financial education courses and online events. |
Summary of movement in equity method investments in associates joint ventures and subsidiaries | Entity December 31, 2019 Acquisition/ Equity in Other Goodwill (i) September 30, VPL Gestão Patrimonial e Participações S.A. — 74,851 — — 621,248 696,099 Du Agro Holdings S.A. — 572 (337 ) — 408 643 O Primo Rico (ii) — 242 (227 ) (120 ) — (105 ) Total — 75,665 (564 ) (120 ) 621,656 696,637 (i) Related to the acquisitions of associates and joint ventures. As of September 30, 2020 the goodwill recognized is preliminary and includes the value of expected synergies arising from the investments. (ii) As of September 30, 2020 the entity presented a negative net equity. The amounts related to the negative net equity are recognized in Other liabilities. |
Property, Equipment, Goodwill_2
Property, Equipment, Goodwill, Intangible Assets And Lease (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [abstract] | ||
Summary of Property and Equipment | Property and Goodwill and intangible As of January 1, 2019 99,127 504,915 Additions 43,749 39,974 Write-offs (7,550 ) (56 ) Depreciation / Amortization in the period (15,174 ) (23,992 ) As of September 30, 2019 120,152 520,841 Cost 165,314 604,298 Accumulated depreciation / amortization (45,162 ) (83,457 ) As of January 1, 2020 142,464 553,452 Additions 40,011 79,127 Business combination (Note 2(f)) — 83,925 Write-offs (i) (61,967 ) (185 ) Transfers (6,143 ) 6,143 Depreciation / Amortization in the period (19,609 ) (52,928 ) As of September 30, 2020 94,756 669,534 Cost 196,081 767,878 Accumulated depreciation / amortization (101,325 ) (98,344 ) (i) As previously mentioned on Note 2(h), as a result of the COVID-19 wrote-off | (a) Property and equipment Data Furniture Security Facilities Fixed Total Balance as of January 1, 2017 9,679 8,677 459 8,789 1,061 28,665 Additions 6,308 6,309 5,650 9,915 2,187 30,369 Business combination (Note 5 (ii)) 804 412 34 478 1,728 Write-offs (149 ) (1,690 ) (9 ) (2,503 ) — (4,351 ) Transfers 709 2,181 — 358 (3,248 ) — Depreciations in the year (3,608 ) (2,628 ) (1,227 ) (1,875 ) — (9,338 ) Balance as of December 31, 2017 13,743 13,261 4,907 15,162 — 47,073 Cost 27,400 19,124 6,403 19,281 — 72,208 Accumulated depreciation (13,657 ) (5,863 ) (1,496 ) (4,119 ) — (25,135 ) Balance as of January 1, 2018 13,743 13,261 4,907 15,162 — 47,073 Additions 22,319 10,448 376 9,930 40,076 83,149 Write-offs (40 ) (924 ) (30 ) (5,078 ) (553 ) (6,625 ) Transfers 31 2,109 192 37,191 (39,523 ) — Depreciation in the year (7,282 ) (3,253 ) (2,892 ) (11,043 ) — (24,470 ) Balance as of December 31, 2018 28,771 21,641 2,553 46,162 — 99,127 Cost 48,023 29,613 6,388 47,843 — 131,867 Accumulated depreciation (19,252 ) (7,972 ) (3,835 ) (1,681 ) — (32,740 ) Balance as of January 1, 2019 28,771 21,641 2,553 46,162 — 99,127 Additions 15,039 9,942 664 22,315 24,539 72,499 Write-offs (304 ) (2,047 ) — (6,112 ) — (8,463 ) Transfers — 2,409 — 22,130 (24,539 ) — Depreciation in the year (9,059 ) (4,189 ) (1,673 ) (5,778 ) — (20,699 ) Balance as of December 31, 2019 34,447 27,756 1,544 78,717 — 142,464 Cost 62,235 38,086 7,716 84,726 — 192,763 Accumulated depreciation (27,788 ) (10,330 ) (6,172 ) (6,009 ) — (50,299 ) |
Summary of Intangible Assets | (b) Intangible assets Software Goodwill Costumer Trademarks Other Total Balance as of January 1, 2017 16,871 90,999 9,179 1,799 4,422 123,270 Additions 12,243 — — 33 8,351 20,627 Business combination (Note 5 ii)) 4,404 281,702 50,077 19,304 2,028 357,515 Write-offs (140 ) — — — — (140 ) Transfers (799 ) — — — 799 — Amortization in the year (6,879 ) — (9,286 ) (898 ) (1,002 ) (18,065 ) Balance as of December 31, 2017 25,700 372,701 49,970 20,238 14,598 483,207 Cost 35,489 372,701 72,072 21,230 18,753 520,245 Accumulated Amortization (9,789 ) — (22,102 ) (992 ) (4,155 ) (37,038 ) Balance as of January 1, 2018 25,700 372,701 49,970 20,238 14,598 483,207 Additions 27,828 — — 1,009 24,680 53,517 Business combination — 9,799 — — — 9,799 Write-offs (15 ) — — — (13,275 ) (13,290 ) Amortization in the year (14,742 ) — (8,426 ) (2,024 ) (3,126 ) (28,318 ) Balance as of December 31, 2018 38,771 382,500 41,544 19,223 22,877 504,915 Cost 56,127 382,500 72,072 22,239 31,308 564,246 Accumulated amortization (17,356 ) — (30,528 ) (3,016 ) (8,431 ) (59,331 ) Balance as of January 1, 2019 38,771 382,500 41,544 19,223 22,877 504,915 Additions 51,348 — 27,000 — 10,601 88,949 Write-offs (2,283 ) — — (33 ) (466 ) (2,782 ) Amortization in the year (21,526 ) — (7,945 ) (2,702 ) (5,457 ) (37,630 ) Balance as of December 31, 2019 66,310 382,500 60,599 16,488 27,555 553,452 Cost 104,270 382,500 105,977 22,239 39,823 654,809 Accumulated amortization (37,960 ) — (45,378 ) (5,751 ) (12,268 ) (101,357 ) | |
Summary of Right-of-use Assets and Lease Liabilities | Set out below, are the carrying amounts of the Group’s right-of-use Right-of-use assets Lease liabilities As of January 1, 2019 133,870 148,494 Additions (i) 104,487 105,694 Depreciation expense (23,235 ) — Interest expense — 12,447 Effects of exchange rate 6,259 6,460 Payment of lease liabilities — (26,194 ) As of September 30, 2019 221,381 246,901 Current — 28,970 Non-current 221,381 217,931 As of January 1, 2020 227,478 255,406 Additions (i) 45,377 45,129 Depreciation expense (33,363 ) — Write-offs (ii) (78,321 ) (78,322 ) Interest expense — 15,648 Revaluation (iii) (9,115 ) (10,050 ) Impairment, net 264 — Effects of exchange rate 29,694 32,675 Payment of lease liabilities — (45,903 ) As of September 30, 2020 182,014 214,583 Current — 31,566 Non-current 182,014 183,017 (i) Additions to right-of-use (ii) As previously mentioned on Note 2(h), as a result of the COVID-19 write-off right-of-use (iii) Revaluation of discount rate that represent the current market assessment. | d) Leases Set out below, are the carrying amounts of the Group’s right-of-use Right-of-use assets Lease liabilities As of January 1, 2019 133,870 148,494 Additions (i) 123,529 124,283 Depreciation expense (32,831 ) — Interest expense — 17,613 Effects of exchange rate 2,910 2,995 Payment of lease liabilities — (37,979 ) As of December 31, 2019 227,478 255,406 Current — 52,771 Non-current 227,478 202,635 (i) Additions to right-of-use |
Summary of Depreciation and Amortization Expense | Depreciation and amortization expense have been charged in the following line items of consolidated statement of income: Nine months period ended Three months period ended 2020 2019 2020 2019 Property and equipment Depreciation in the period 19,609 15,174 6,616 5,298 Leases Depreciation in the period 33,363 23,235 10,313 8,796 Intangible assets Amortization in the period 52,928 23,992 19,451 9,361 105,900 62,401 36,380 23,455 |
Securities Sold Under Repurch_2
Securities Sold Under Repurchase Agreements (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure of Detailed Information on Securities Sold under Repurchase Agreements [Abstract] | ||
Summary of Securities Sold under Repurchase Agreements | September 30, 2020 December 31, 2019 National Treasury Bills (LTNs) 12,682,922 5,653,994 National Treasury Notes (NTNs) 22,571,006 8,533,113 Financial Treasury Bills (LFTs) — 1,451,300 Total 35,253,928 15,638,407 | 2019 2018 National Treasury Notes (NTNs) 8,533,113 1,153,547 National Treasury Bills (LTNs) 5,653,994 5,142,881 Financial Treasury Bills (LFTs) 1,451,300 344,266 Total 15,638,407 6,640,694 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Categories of financial liabilities [abstract] | |
Summary of deposit from customers | September 30, December 31, Demands deposit s 40,310 70,190 Time deposits 1,586,399 4 Total 1,626,709 70,194 Current 997,285 70,194 Non-Current 629,424 — |
Summary of deposit from customers of maturity | Maturity—As of Class Within From 31 to From 61 to From 91 to From 181 to After 360 days Total Demand deposits 40,310 — — — — — 40,310 Time deposit s — — 141,895 34,544 780,536 629,424 1,586,399 Total 40,310 — 141,895 34,544 780,536 629,424 1,626,709 Maturity—As of December 31, 2019 Class Within 30 From 31 to From 61 to From 91 From 180 After 360 Total Demand deposits 70,190 — — — — — 70,190 Time deposits 4 — — — — — 4 Tota l 70,194 — — — — — 70,194 |
Structured Operations Certifi_2
Structured Operations Certificates (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Categories of financial liabilities [abstract] | |
Disclosure detail of maturity analysis of structured operations certificate | September 30, December 31, Maturity From 91 to 180 days 1,918 — After 360 days 1,140,539 19,474 Total 1,142,457 19,474 Current 1,918 — Non-Current 1,140,539 19,474 |
Borrowings and lease liabilit_2
Borrowings and lease liabilities (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [abstract] | ||
Summary of Detailed Information About Borrowings | Interest Maturity September 30, December 31, Bank borrowings—domestic (i) 113% of CDI(*) March 2021 21,292 52,668 Related parties 21,292 52,668 Financial institution (ii) CDI (*)+ 0.774% April 2023 276,106 329,410 Third parties 276,106 329,410 Total borrowings 297,398 382,078 Lease liabilities 214,583 255,406 Total borrowings and lease liabilities 511,981 637,484 Current 61,226 116,450 Non-current 450,755 521,034 (*) Brazilian Interbank Offering Rate (CDI) (i) Loan agreement with Itaú Unibanco with maturity on March 8, 2021, payable in 36 monthly installments. (ii) Loan agreement entered into on March 28, 2018 with the International Finance Corporation (IFC). The principal amount is due on the maturity date and accrued interests payable at every six months. | Interest rate % Maturity 2019 2018 Bank borrowings—domestic (i) 113% of CDI (*) March 2021 52,668 94,921 Related parties 52,668 94,921 Bank borrowings—domestic (ii) 111% of CDI (*) July 2019 — 44,352 Financial institution (iii) CDI (*) April 2023 329,410 330,336 Third parties 329,410 374,688 Total borrowings 382,078 469,609 Lease liabilities (Note 13.(d)) 255,406 — Total borrowings and lease liabilities 637,484 469,609 Current 116,450 114,489 Non-current 521,034 355,120 (*) Brazilian Interbank Offering Rate (CDI) (i) Loan agreement with Itaú Unibanco with maturity on March 8, 2021, payable in 36 monthly installments. (ii) Loan agreement with Banco JP Morgan S.A., hired in connection with the acquisition of Rico, payable in seven quarterly installments. In July 2019, the loan was fully settled. (iii) Loan agreement entered into on March 28, 2018 with the International Finance Corporation (IFC). The principal amount is due on the maturity date and accrued interests payable at every six months. |
Debentures (Tables)
Debentures (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [abstract] | ||
Summary of Detailed Information About Debentures Issued | Issuance Quantity Annual rate Issuance Maturity Unit value at issuance Unit value at period-end Book value 1st 400,000 108.0% CDI 9/28/2018 9/28/2020 R$ 1,000.00 R$ 1,108.56 — 2nd 400,000 107.5% CDI 5/15/2019 5/15/2022 R$ 1,000.00 R$ 1,009.05 338,693 Total 800,000 338,693 | Issuance Quantity (units) Annual rate Issuance date Maturity date Unit value at Unit value at period-end Book value 1st 400,000 108,0% CDI 9/28/2018 9/28/2020 R$ 1,000.00 R$ 1,082.01 433,262 2st 400,000 107,5% CDI 5/15/2019 5/15/2022 R$ 1,000.00 R$ 1,005.88 401,968 Total 800,000 835,230 |
Summary of Detailed Information on Debentures Outstanding | September 30, December 31, Principal 400,000 800,000 Interest 23,746 47,127 Payments (20,336 ) (11,897 ) Repurchase (a) (64,717 ) — Total 338,693 835,230 Current — 435,230 Non-current 338,693 400,000 (a) As of September 30, 2020 the Group repurchased 65,611 units of the second series of non-convertible | 2019 2018 Principal 800,000 400,000 Interest 47,127 6,538 Payments (11,897 ) — Total 835,230 406,538 Current 435,230 — Non-current 400,000 406,538 |
Other Financial Liabilities (Ta
Other Financial Liabilities (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure of financial liabilities [abstract] | ||
Summary of Other Financial Liabilities | September 30, 2020 December 31, Foreign exchange portfolio 249,394 8,962 Contingent consideration (i) 462,000 — Financial bills (ii) 16,311 — Credit cards operations (ii) 8,294 — Others (iii) 122,879 — Total 858,878 8,962 Current 380,567 8,962 Non-current 478,311 — (i) Contractual contingent considerations mostly associated to the investment acquisition of VPL, as described in Note 10. The maturity of the total contingent consideration payment is up to 6 years and the contractual maximum amount payable is R$653,222 (the minimum amount is zero). (ii) Related to operations of Banco XP S.A. (iii) Include R$58,526 payable through our acquisitions (Note 2(f)) and investments in associates and joint ventures. | 2019 2018 Customer deposits (a) 70,191 — Structured operations certificates (b) 19,474 — Foreign exchange portfolio 8,962 7,011 Other financial liabilities 4 — Total 98,631 7,011 Current 79,157 7,011 Non-current 19,474 — (a) Mainly related to the financial resources of XP Vida e Previdência participant which is in process to be invested. (b) Related to structured operations certificates of Banco XP. |
Private Pension Liabilities (Ta
Private Pension Liabilities (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2019 | |
Text Block [Abstract] | ||
Summary Of Net Defined Benefit Liability (Asset) | Changes in the period: Nine months period ended September 30, 2020 2019 As of January 1 3,759,090 16,059 Contributions received 984,816 211,396 Transfer with third party plans 5,087,561 1,466,444 Redemptions paid (162,218 ) (7,911 ) Gain (loss) from FIE (19,927 ) 35,718 As of September 30 9,649,322 1,721,706 | Changes in the period 2019 2018 As of January 1 16,059 — Contributions received 609,639 16,059 Transfer with third party plans 3,047,492 — Withdraws (20,153 ) — Interest received from FIE 106,053 — As of December 31 3,759,090 16,059 Contributions invested in FIEs 3,759,090 16,059 |
Income Tax (Tables)
Income Tax (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Text Block [Abstract] | ||
Summary Of Temporary Difference, Unused Tax Losses And Unused Tax Credit | Balance Sheet September 30, December 31, Tax losses carryforwards 38,616 17,146 Goodwill on business combinations (i) 28,430 22,303 Provisions for IFAs’ commissions 72,222 68,041 Revaluations of financial assets at fair value (9,993 ) 25,259 Expected losses (ii) 20,578 5,666 Financial instruments taxed on redemption (18 ) — Profit sharing plan 79,727 141,136 Net gain on hedge instruments 32,927 (36,384 ) Share based plan 47,824 2,950 Other provisions 27,339 33,284 Total 337,652 279,401 Deferred tax assets 378,726 284,533 Deferred tax liabilities (41,074 ) (5,132 ) Net change in the nine months Net change in the three months 2020 2019 2020 2019 Tax losses carryforwards 21,470 (41,725 ) 24,769 (7,064 ) Goodwill on business combinations (i) 6,127 (25,845 ) (5,861 ) (8,153 ) Provisions for IFAs’ commissions 4,181 21,103 1,718 7,698 Revaluations of financial assets at fair value (35,252 ) (9,374 ) 3,513 (1,178 ) Expected losses (ii) 14,912 1,563 4,248 1,411 Financial instruments taxed on redemption (18 ) (11,637 ) (18 ) (18,980 ) Profit sharing plan (61,409 ) 76,105 (97,272 ) (38,295 ) Net gain (loss) on hedge instruments 69,311 (1,885 ) 5,805 3,675 Share based plan 44,874 — 17,533 — Other provisions (5,945 ) 5,142 (17,750 ) 239 Total 58,251 13,447 (63,315 ) (60,647 ) (i) For tax purposes, goodwill is amortized over 5 years on a straight-line basis when the entity acquired is sold or merged into another entity. (ii) Include expected credit loss on accounts receivable, loan operations and other financial assets. | Balance Sheet Net change in the year 2019 2018 2019 2018 2017 Tax losses carryforwards 17,146 55,358 (38,212 ) 37,774 17,584 Goodwill on business combinations (i) 22,303 59,993 (37,690 ) (56,789 ) (51,327 ) Provisions for IFAs’ commissions 68,041 31,031 37,010 4,744 26,156 Revaluations of financial assets at fair value 25,259 1,397 23,862 (2,427 ) 4,030 Expected credit losses 5,666 3,079 2,587 (2,345 ) 4,329 Financial instruments taxed on redemption — (13,041 ) 13,041 (6,230 ) (6,811 ) Profit sharing plan 141,136 — 141,136 — — Net gain on hedge instruments (36,384 ) (1,441 ) (34,943 ) (51,423 ) 49,382 Share-base compensation 2,950 — 2,950 Other provisions 33,284 4,024 29,260 (2,572 ) 5,251 Total 279,401 140,400 139,001 (79,268 ) 48,594 Deferred tax assets 284,533 152,425 Deferred tax liabilities (5,132 ) (12,025 ) (i) For tax purposes, goodwill is amortized over 5 years on a straight-line basis when the entity acquired is sold or merged into another entity. |
Summary Of Reconciliation Of Changes In Deferred Tax Liability Asset | The changes in the net deferred tax were recognized as follows: Nine months period ended September 30, 2020 2019 As of January 1 279,401 140,400 Foreign exchange variations 22,721 21,883 Charges to statement of income (28,561 ) (8,564 ) Tax relating to components of other comprehensive income 64,091 128 As of September 30 337,652 153,847 | The changes in the net deferred tax were recognized as follows: 2019 2018 2017 At January 1 140,400 219,668 171,074 Foreign exchange variations (3,461 ) (9,259 ) (1,155 ) Business combination (Note 5 (ii)) — — 3,751 Charges to statement of income 139,411 (76,455 ) 45,325 Tax relating to components of other comprehensive income 3,051 6,446 673 At December 31 279,401 140,400 219,668 |
Summary Of Income Tax Calculation | Nine months period Three months period 2020 2019 2020 2019 Income before taxes 1,758,528 996,944 632,451 382,134 Combined tax rate in Brazil (i) 34 % 34 % 34 % 34 % Tax expense at the combined rate 597,900 338,961 215,034 129,926 Income (loss) from entities not subject to taxation (11,358 ) (8,228 ) (2,630 ) (3,659 ) Effects from entities taxed at different rates 36,792 16,208 17,630 7,170 Effects from entities taxed at different taxation regimes (ii) (285,529 ) (24,816 ) (111,061 ) (9,138 ) Intercompany transactions with different taxation (46,775 ) (27,989 ) (19,645 ) (5,711 ) Tax incentives (2,491 ) (2,220 ) (4,521 ) (2,220 ) Non deductible expenses (non-taxable (12,693 ) 8,687 (3,434 ) 4,310 Others 3,581 (2,957 ) (206 ) 658 Total 279,427 297,646 91,167 121,336 Effective tax rate 15.89 % 29.86 % 14.41 % 31.75 % Current 250,866 306,210 (6,732 ) 49,189 Deferred 28,561 (8,564 ) 97,899 72,147 Total expense 279,427 297,646 91,167 121,336 (i) Considering that XP Inc. is domiciled in Cayman and there is no income tax in that jurisdiction, the combined tax rate of 34% demonstrated above is the current rate applied to XP Investimentos S.A. which is the holding company of all operating entities of XP Inc. in Brazil. (ii) Certain eligible subsidiaries adopted the PPM tax regime and the effect of the presumed profit of subsidiaries represents the difference between the taxation based on this method and the amount that would be due based on the statutory rate applied to the taxable profit of the subsidiaries. Additionally, some entities and investment funds adopt different taxation regimes according to the applicable rules in their jurisdictions. | 2019 2018 2017 Income before taxes 1,544,109 640,728 575,507 Combined tax rate in Brazil (a) 34,00 % 34,00 % 34,00 % Tax expense at the combined rate 524,997 217,848 195,672 Income from entities not subject to taxation (9,551 ) (3,647 ) (5,101 ) Effects from entities taxed at different rates 25,948 16,444 9,078 Effects from entities taxed at different method (b) (24,089 ) (18,183 ) (25,971 ) Intercompany transactions with different taxation (50,138 ) (38,255 ) (30,264 ) Tax incentives (9,772 ) (1,408 ) (265 ) Non-deductible (non-taxable 10,888 (689 ) 175 Others (13,658 ) 3,288 8,642 Total 454,625 175,398 151,966 Effective tax rate 29,44 % 27,20 % 26,38 % Current 594,037 98,943 197,291 Deferred (139,412 ) 76,455 (45,325 ) Total expense 454,625 175,398 151,966 (a) Considering that XP Inc. is domiciled in Cayman and there is no income tax in that jurisdiction, the combined tax rate of 34% demonstrated above is the current rate applied to XP Investimentos S.A. which is the holding company of all operanting entities of XP Inc. in Brazil. (b) Certain eligible subsidiaries adopted the PPM tax regime and the effect of the presumed profit of subsidiaries represents the difference between the taxation based on this method and the amount that would be due based on the statutory rate applied to the taxable profit of the subsidiaries. |
Summary Of Analysis Other Comprehensive Income By Item | The tax (charge)/credit relating to components of other comprehensive income is as follows: Before tax (Charge) / After tax Foreign exchange variation of investees located abroad 12,126 — 12,126 Gains (losses) on net investment hedge (17,591 ) 5,762 (11,829 ) Changes in the fair value of financial assets at fair value 1,494 (508 ) 986 As of September 30, 2019 (3,971 ) 5,254 1,283 Foreign exchange variation of investees located abroad 76,575 — 76,575 Gains (losses) on net investment hedge (121,772 ) 41,402 (80,370 ) Changes in the fair value of financial assets at fair value (56,603 ) 22,689 (33,914 ) As of September 30, 2020 (101,800 ) 64,091 (37,709 ) | The tax (charge)/credit relating to components of other comprehensive income is as follows: Before tax (Charge) / Credit After tax Foreign exchange variation of investees located abroad 2,034 — 2,034 Gains (losses) on net investment hedge (3,124 ) 738 (2,386 ) Changes in the fair value of financial assets at fair value 275 (65 ) 210 As of December 31, 2017 (815 ) 673 (142 ) Foreign exchange variation of investees located abroad 18,645 — 18,645 Gains (losses) on net investment hedge (26,508 ) 9,013 (17,495 ) Changes in the fair value of financial assets at fair value 6,727 (2,567 ) 4,160 As of December 31, 2018 (1,136 ) 6,446 5,310 Foreign exchange variation of investees located abroad 6,823 — 6,823 Gains (losses) on net investment hedge (10,543 ) 3,410 (7,133 ) Changes in the fair value of financial assets at fair value 1,058 (360 ) 698 As of December 31, 2019 (2,662 ) 3,050 388 |
Social and Statutory Obligati_2
Social and Statutory Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Summary Of Social And Statutory Obligations | 2019 2018 Obligations to non-controlling 35,666 27,137 Employee profit-sharing (a) 395,568 173,202 Salaries and other benefits payable 61,489 51,351 Total 492,723 251,690 (a) The Group has a bonus scheme for its employees based on profit sharing program as agreed under collective bargaining, which does not extend to the Executive Board. The bonus is calculated at each half of the year and payments made in the February and August. |
Tax and Social Security Oblig_2
Tax and Social Security Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Summary Of Tax And Social Security Obligations | 2019 2018 Income Tax (IRPJ and CSLL) (a) 264,258 69,001 Contributions over revenue (PIS and COFINS) 34,247 16,368 Taxes on services (ISS) 18,141 9,399 Contributions for Social Security (INSS) 7,712 3,368 Others 20,973 4,985 Total 345,331 103,121 Current 345,331 103,121 Non-current — — (a) The Group income tax liability is presented net of tax assets which the entities are allowed to offset during current year. The line includes current Corporate Income Tax (CIT) liability of R$ 594,037 (R$ 98,943—2018) and Prepayments CIT of R$ 361,771 (R$ 58,139—2018). The line also includes taxes that XP is responsible to pay on behalf of its clients (i.e., withholding taxes over client’s investments) in the amount of R$ 31,992 (R$ 28,197—2018). |
Securities Trading and Interm_2
Securities Trading and Intermediation (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Summary of Securities Trading and Intermediation Assets and Liabilities [Abstract] | ||
Summary of Securities Trading and Intermediation Assets and Liabilities | Represented by operations at B3 on behalf of and on account of third parties, with liquidation operating cycle between D+1 and D+3. September 30, 2020 December 31, Cash and settlement records 378,727 13,823 Debtors pending settlement 967,599 477,646 Other 137,181 13,514 Total Assets 1,483,507 504,983 Cash and settlement records 378,030 474,759 Creditors pending settlement 14,781,681 8,639,787 Total Liabilities 15,159,711 9,114,546 | Represented by operations at B3 on behalf of and on account of third parties, with liquidation operating cycle between D+1 and D+3. 2019 2018 Cash and settlement records 13,823 164,322 Debtors pending settlement 477,646 731,611 Other 13,514 2,379 Total Assets 504,983 898,312 Cash and settlement records 474,759 90,056 Creditors pending settlement 8,639,787 5,216,572 Total Liabilities 9,114,546 5,306,628 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Summary Of Issuances And Conversions Of Shares | Below is a summary of the issuances and conversions of shares during 2019, 2018 and 2017, after giving effect to the share split mentioned before: Class A (prior Class B (prior Total Shares As of January 1, 2017 325,011,655 159,906,862 484,918,517 Transfer of classes (49,011,642 ) 49,011,642 — As of December 31, 2017 276,000,013 208,918,504 484,918,517 Issued for cash — 24,328,617 24,328,617 Transfer of classes (20,867,198 ) 20,867,198 — As of December 31, 2018 255,132,815 254,114,319 509,247,134 Corporate reorganization 30,807,911 (30,807,911 ) — Transfer of classes 25,687,428 (25,687,428 ) — Initial public offering 42,553,192 — 42,553,192 As of December 31, 2019 354,181,346 197,618,980 551,800,326 |
Summary Of Dividends Distribution | The proposal and payment of dividends recorded in the Company’s financial statements, subject to the approval of the shareholders in General Meetings, is detailed below: 2019 2018 2017 Net income 1,089,485 465,330 423,541 Total dividends 500,000 200,000 314,998 At January 1 — 125,000 — Amount recognized in the year 500,000 200,000 314,998 Dividends paid in the year (500,000 ) (325,000 ) (189,998 ) At December 31 — — 125,000 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Text Block [Abstract] | ||
Summary of Key Management Personnel Compensation Expense | Key management includes executive statutory directors, members of the Board of Directors and Executive Boards. The compensation paid or payable to key management for their services is shown below: 2019 2018 2017 Fixed compensation 4,821 3,329 2,708 Variable compensation 22,060 30,316 18,316 Total 26,881 33,645 21,024 | |
Summary of Transactions Between Related Parties Explanatory | The main transactions carried with related parties, under commutative conditions, including interest rates, terms and guarantees, and period-end Assets/(Liabilities) Revenue/(Expenses) Nine months period Three months Relation and transaction September December 31, 2020 2019 2020 2019 Shareholders with significant influence (3,891,015 ) (732,420 ) (36,541 ) (14,905 ) (13,509 ) (18,863 ) Securities 105,100 123,813 9,154 7,279 1,895 2,915 Securities purchased under agreements to resell 14,999 196,009 3,557 — 650 — Accounts receivable 10,178 594 233 — (163 ) (2,270 ) Securities sold under repurchase agreements (4,000,000 ) (1,000,168 ) (48,243 ) (18,313 ) (15,514 ) (18,313 ) Borrowings (21,292 ) (52,668 ) (1,242 ) (3,871 ) (377 ) (1,195 ) | The main transactions carried with related parties for year-end Assets/(Liabilities) Revenue/(Expenses) Relation and transaction 2019 2018 2019 2018 2017 Shareholders with significant influence (i) (732,420 ) (451,481 ) (49,779 ) (40,585 ) — Securities 123,813 69,647 10,381 147,258 — Securities purchased under agreements to resell 196,009 — 1,550 — — Accounts receivable 594 — 1,025 — — Securities sold under repurchase agreements (1,000,168 ) (426,207 ) (58,078 ) (3,586 ) — Borrowings (52,668 ) (94,921 ) (4,657 ) (184,257 ) — (i) These transactions are related to Itaú Unibanco who became shareholder of the Company in 2018 and since then a related party. Therefore, transactions and balances with Itaú Unibanco in 2017 are not being reported as transactions with related parties. |
Provisions and Contingent Lia_2
Provisions and Contingent Liabilities (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Text Block [Abstract] | ||
Summary Of Other Provisions | September 30, December 31, Tax contingencies 10,062 9,878 Civil contingencies 3,660 2,673 Labor contingencies 2,298 2,642 Total provision 16,020 15,193 Judicial deposits (i) 10,168 18,403 (i) There are circumstances in which the Group is questioning the legitimacy of certain litigations or claims filed against it. As a result, either because of a judicial order or based on the strategy adopted by management, the Group might be required to secure part or the whole amount in question by means of judicial deposits, without this being characterized as the settlement of the liability. These amounts are classified as “Other assets” on the consolidated balance sheets and referred above for information. | 2019 2018 Tax contingencies 9,878 9,392 Civil contingencies 2,673 5,610 Labor contingencies 2,642 2,472 Total provision 15,193 17,474 Judicial deposits (a) 18,403 14,850 (a) There are circumstances in which the Group is questioning the legitimacy of certain litigations or claims filed against us. As a result, either because of a judicial order or based on the strategy adopted by management, the Group might be required to secure part or the whole amount in question by means of judicial deposits, without this being characterized as the settlement of the liability. These amounts are classified as “Other assets” on the consolidated balance sheets, and referred above for information. |
Summary Of Changes In Other Provisions | Changes in the provision during the period Nine months period Three months period September 30, September 30, 2020 2019 2020 2019 At the beginning of period 15,193 17,474 15,479 17,171 Monetary correction 1,472 1,499 499 809 Provision accrued 912 1,726 333 1,657 Provision reversed (965 ) (3,933 ) (78 ) (3,931 ) Payments (592 ) (1,062 ) (213 ) (2 ) At the end of period 16,020 15,704 16,020 15,704 | Changes in the provision during the year 2019 2018 2017 Balance at January 1 17,474 11,843 5,334 Monetary correction 2,492 1,667 2,226 Provision/(Reversal) (1,601 ) 7,897 3,531 Business combination (Note 5 (ii)) — — 7,921 Payments (3,172 ) (3,933 ) (7,169 ) Balance at December 31 15,193 17,474 11,843 |
Summary Of Contingent Liabilities | Below is summarized these possible claims by nature: September 30, December 31, Tax (i) 70,700 69,386 Civil (ii) 114,669 81,414 Labor 6,572 3,151 Total 191,941 153,951 (i) In December 2019, the Group was notified by tax authorities for a requirement of social security contributions due to employee profit sharing payments related to the calendar year 2015, allegedly in violation of Brazilian Law 10,101/00. Currently, the first appeal was denied by the first administrative level of the Revenue Service Office. The Group will provide the ordinary appeal to Administrative Council of Tax Appeals (“CARF”). There are other favorable CARF precedents on the subject and the Group obtained legal opinions that support the Group’s defense and current practice. (ii) The Group is defendant in 592 civil claims by customers and investment agents, mainly related to portfolio management, risk rating, copyrights and contract termination. The total amount represents the collective maximum value to which the Group is exposed based on the claims’ amounts monetarily restated. | Below is summarized these claims by nature: 2019 2018 Tax (i) 69,386 19,971 Civil (ii) 81,414 64,820 Labor 3,151 4,532 Total 153,951 89,323 (i) In December 2019, the Group was notified by tax authorities for a requirement of social security contributions due to employee profit sharing payments related to the calendar year 2015, allegedly in violation of Brazilian Law 10,101/00. Currently, the case at administrative level in assessment by the Administrative Council of Tax Appeals (“CARF”), awaiting the decision on the Group’s appeal. There are other favorable CARF precedents on the subject and the Group obtained legal opinions that support the Group’s defense and current practice. (ii) The Group is defendant in 6 civil claims by customers and investment agents, mainly related to portfolio management, risk rating, copyrights and contract termination. The total amount represents the collective maximum value to which the Group is exposed based on the claims’ amounts monetarily restated. |
Total revenue and income (Table
Total revenue and income (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Text Block [Abstract] | ||
Summary Of Disaggregation Of Revenue By Major Service Lines | Disaggregation of revenue by major service lines are as follows: Nine months period ended Three months period ended 2020 2019 2020 2019 Major service lines Brokerage commission 1,595,435 935,998 547,862 349,554 Securities placement 922,057 693,198 388,283 328,224 Management fees 809,024 591,591 274,353 207,070 Insurance brokerage fee 74,299 69,367 17,624 27,344 Educational services 95,627 75,037 25,474 32,782 Other services 334,470 212,874 155,063 85,388 Gross revenue from services rendered 3,830,912 2,578,065 1,408,659 1,030,362 (-) Sales taxes and contributions on services (i) (337,681 ) (236,965 ) (130,914 ) (86,324 ) 3,493,231 2,341,100 1,277,745 944,038 (i) Mostly related to taxes on services (ISS) and contributions on revenue (PIS and COFINS). | a) Net revenue from services rendered Revenue from contracts with customers derives mostly from services rendered and fees charged at daily transactions from customers, therefore mostly recognized at a point in time. Disaggregation of revenue by major service lines are as follows: 2019 2018 2017 Major service lines Brokerage commission 1,288,135 861,068 639,615 Securities placement 1,154,786 631,949 401,402 Management fees 1,035,224 527,644 221,936 Insurance brokerage fee 106,438 56,713 29,167 Educational services 97,986 42,653 18,682 Other services 275,467 160,409 111,647 3,958,036 2,280,436 1,422,449 (-) Sales taxes and contributions on revenue (i) (362,264 ) (225,887 ) (138,833 ) 3,595,772 2,054,549 1,283,616 (i) Mostly related to taxes on services (ISS) and contributions on revenue (PIS and COFINS). |
Summary Of Net Income From Financial Instruments | b) Net income from financial instruments Nine months period ended September 30, Three months period ended September 30, 2020 2019 2020 2019 Net income from financial instruments at fair value through profit or loss 2,007,466 913,110 647,076 395,838 Net income from financial instruments measured at amortized cost and at fair value through other comprehensive income 303,388 204,023 189,527 26,513 Total income from financial instruments 2,310,854 1,117,133 836,603 422,351 (-) Taxes and contributions on financial income (47,578 ) (21,720 ) (13,611 ) (10,465 ) 2,263,276 1,095,413 822,992 411,886 | b) Net income from financial instruments 2019 2018 2017 Net Income of financial instruments at fair value through profit or loss 1,360,207 821,617 562,895 Net Income of financial instruments measured at amortized cost and at fair value through other comprehensive income 199,947 114,442 79,380 (-) Taxes and contributions on financial income (28,118 ) (32,155 ) (19,241 ) 1,532,036 903,904 623,034 |
Summary Of Disaggregation By Geographic Location | Breakdown of total net revenue and income and selected assets by geographic location: Nine months period ended Three months period 2020 2019 2020 2019 Brazil 5,156,387 3,207,076 1,721,542 1,273,565 United States 570,738 205,830 368,524 74,917 Europe 29,382 23,607 10,671 7,442 Net revenue and income 5,756,507 3,436,513 2,100,737 1,355,924 September 30, December 31, Brazil 1,175,503 1,208,737 United States 375,565 224,244 Europe 29,634 16,476 Selected assets (i) 1,580,702 1,449,457 (i) Selected assets are total assets of the Group, less: cash, financial assets and deferred tax assets and are presented by geographic location. | c) Disaggregation by geographic location 2019 2018 2017 Brazil 4,790,236 2,716,459 1,751,419 United States 307,456 204,207 131,198 Europe 30,116 37,787 24,033 Total Revenue and Income 5,127,808 2,958,453 1,906,650 2019 2018 Brazil 1,208,737 881,434 United States 224,244 31,829 Europe 16,476 7,556 Selected assets (i) 1,449,457 920,819 (i) Selected assets are Total assets of the Company, less: financial assets and deferred tax assets and are presented by geographic location. |
Operating costs (Tables)
Operating costs (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Text Block [Abstract] | ||
Summary Of Operating Costs | Nine months period ended Three months period 2020 2019 2020 2019 Commission and incentive costs 1,442,670 877,502 549,249 353,825 Operating losses and provisions 65,584 14,825 16,984 7,344 Clearing house fees 240,806 141,251 104,922 54,796 Other costs (a) 115,003 85,389 34,865 28,993 Total 1,864,063 1,118,967 706,020 444,958 (a) Other cost include third parties’services and other costs. | 2019 2018 2017 Commission costs 1,269,309 750,103 455,241 Operating losses and provisions 23,332 9,989 7,148 Other costs 313,419 181,154 117,491 Clearing house fees 201,083 96,896 71,419 Third parties’ services 76,669 53,124 28,953 Other 35,667 31,134 17,119 Total 1,606,060 941,246 579,880 |
Operating expenses by nature (T
Operating expenses by nature (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Text Block [Abstract] | ||
Summary Of Operating Expense By Nature | Nine months period ended Three months period 2020 2019 2020 2019 Selling Expenses (a) 94,367 82,419 38,322 30,104 Administrative expenses 2,077,587 1,294,039 809,596 481,605 Personnel expenses 1,484,596 859,653 577,614 291,485 Compensation 565,640 256,323 203,419 107,474 Employee profit-sharing and bonus 566,353 466,219 240,763 127,591 Executives profit-sharing 156,988 50,230 52,662 20,415 Other personnel expenses (b) 195,615 86,881 80,770 36,005 Other taxes expenses 26,193 29,699 9,907 11,419 Depreciation of property and equipment and right-of-use 52,972 38,409 16,928 14,094 Amortization of intangible assets 52,928 23,992 19,451 9,361 Data processing 212,074 124,260 89,018 49,775 Technical services 66,284 39,560 25,563 13,102 Third parties’ services 116,086 112,571 43,663 65,854 Other administrative expenses (c) 66,454 65,895 27,452 26,515 Total 2,171,954 1,376,458 847,918 511,709 (a) Selling expenses refers to advertising and publicity. (b) Other personnel expenses include benefits, social charges and others. (c) Other administrative expenses include rent, communication and travel expenses, legal and judicial and other expenses. | 2019 2018 2017 Selling expenses 155,115 96,075 32,881 Advertising and publicity 155,115 96,075 32,881 Administrative expenses 1,891,481 1,176,805 649,585 Personnel expenses 1,261,887 712,060 428,772 Compensation 408,394 221,746 134,535 Employee profit-sharing and bonus 645,992 356,938 217,982 Executives profit-sharing 67,547 50,656 28,802 Benefits 47,457 35,922 16,697 Social charges 88,960 45,115 28,836 Other 3,537 1,683 1,920 Other taxes expenses 39,691 43,945 20,749 Depreciation of property and equipment and right-of-use 53,530 26,278 9,338 Amortization of intangible assets 37,630 26,510 18,065 Other administrative expenses 498,743 368,012 172,661 Data processing 178,860 130,678 71,861 Technical services 85,782 76,476 26,985 Third parties’ services 145,730 63,333 19,006 Rent expenses 10,575 41,950 16,492 Communication 17,495 11,457 11,276 Travel 21,676 13,804 9,791 Legal and judicial 3,406 9,023 2,638 Other 35,219 21,291 14,612 Total 2,046,596 1,272,880 682,466 |
Other operating income (expen_2
Other operating income (expenses), net (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Text Block [Abstract] | ||
Summary Of Other Operating Income Net | Nine months period Three months period 2020 2019 2020 2019 Other operating income 273,809 152,674 196,445 18,588 Revenue from incentives from Tesouro Direto, B3 and Others (a) 258,306 52,069 190,900 13,020 Other operating income (b) 15,503 100,605 5,545 5,568 Other operating expenses (188,823 ) (34,187 ) (98,644 ) (11,230 ) Legal, administrative proceedings and agreement with customers (43,844 ) (3,503 ) (36,262 ) (1,790 ) Losses on write-off (59,216 ) (6,583 ) (29,809 ) (48 ) Charity (40,512 ) (5,917 ) (13,668 ) (1,842 ) Other operating expenses (c) (45,251 ) (18,184 ) (18,905 ) (7,550 ) Total 84,986 118,487 97,801 7,358 (a) Includes incentives received from third parties, mainly due to the joint development of retail products, and also the association of such entities with the XP ecosystem. (b) Other operating income include recovery of charges and expenses, reversal of operating provisions, interest received on tax and others. (c) Other operating expenses include fines and penalties, association and regulatory fees and other expenses. | 2019 2018 2017 Other operating income 208,245 20,682 23,764 Recovery of charges and expenses 53,453 6,873 3,165 Reversal of operating provisions 9,767 2,641 2,684 Revenue from incentives from Tesouro Direto and B3 101,615 9,931 4,226 Other 43,410 1,237 13,689 Other operating expenses (54,888 ) (51,971 ) (31,468 ) Legal proceedings and agreement with customers (9,499 ) (16,385 ) (18,370 ) Tax incentive expenses (10,265 ) (2,015 ) (2,980 ) Losses on write-off (7,060 ) (11,064 ) (1,503 ) Fines and penalties (1,191 ) (7,446 ) (2,755 ) Associations and regulatory fees (4,216 ) (3,059 ) (2,073 ) Charity (6,751 ) (5,938 ) (50 ) Other (15,906 ) (6,064 ) (3,737 ) Total 153,357 (31,289 ) (7,704 ) |
Earnings Per Share (Basic And_2
Earnings Per Share (Basic And Diluted) (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Earnings per share basic and diluted [Abstract] | ||
Summary of Earnings Per Share | The following table reflects the net income and share data used in the basic and diluted earnings per share (“EPS”) calculations: Nine months period Three months period 2020 2019 2020 2019 Net income 1,475,613 692,011 540,434 257,814 Basic weighted average quantity of shares (a) 551,800 509,247 551,800 509,247 Basic earnings per share—R$ 2.6742 1.3589 0.9794 0.5063 Share-based incentive program 4,323 — 4,774 — Diluted weighted average quantity of shares 556,574 509,247 556,574 509,247 Diluted earnings per share—R$ 2.6534 1.3589 0.9710 0.5063 (a) Thousands of shares. | 2019 2018 2017 Net income 1,080,484 461,440 413,874 Basic weighted average quantity of shares (1) 511,462 493,117 484,919 Basic earnings per share 2,1125 0,9358 0,8535 Share-based incentive program (1)(2) 248 — — Diluted weighted average quantity of shares (1) 511,710 493,117 484,919 Diluted earnings per share 2,1115 0,9358 0,8535 (1) Thousands of shares. (2) See Note 30. |
Determination Of Fair Value (Ta
Determination Of Fair Value (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Determination of fair value [Abstract] | ||
Summary Of Fair Value Measurement Of Assets And Liabilities | Below are the Group financial assets and liabilities by level within the fair value hierarchy. The Group assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels: September 30, 2020 Level 1 Level 2 Level 3 Fair Value Book Value Financial Assets Financial assets at Fair value through profit or loss Securities 35,825,631 2,875,888 — 38,701,519 38,701,519 Derivative financial instruments 7,451 13,141,316 — 13,148,767 13,148,767 Fair value through other comprehensive income Securities 9,588,773 — — 9,588,773 9,588,773 Evaluated at amortized cost Securities — 1,371,040 — 1,371,040 1,366,038 Securities purchased under agreements to resell — 18,229,920 — 18,229,920 18,243,688 Securities trading and intermediation — 1,483,507 — 1,483,507 1,483,507 Accounts receivable — 251,194 — 251,194 251,194 Loan operations — 1,392,375 — 1,392,375 1,369,234 Other financial assets — 280,279 — 280,279 280,279 Financial liabilities Fair value through profit or loss Securities loaned 1,111,770 — — 1,111,770 1,111,770 Derivative financial instruments 19,745 12,709,851 — 12,729,596 12,729,596 Evaluated at amortized cost Securities sold under repurchase agreements — 35,192,715 — 35,192,715 35,253,928 Securities trading and intermediation — 15,159,711 — 15,159,711 15,159,711 Deposits — 1,573,958 — 1,573,958 1,626,709 Structured operations certificates — 1,142,457 — 1,142,457 1,142,457 Borrowings and lease liabilities — 565,723 — 565,723 511,981 Debentures — 331,981 — 331,981 338,693 Accounts payables — 655,117 — 655,117 655,117 Other financial liabilities — 396,878 462,000 858,878 858,878 46,553,370 106,753,910 462,000 153,769,280 153,821,839 December 31, 2019 Level 1 Level 2 Fair Value Book Value Financial Assets Financial assets at Fair value through profit or loss Securities 20,277,031 2,166,361 22,443,392 22,443,392 Derivative financial instruments 21,809 4,063,195 4,085,004 4,085,004 Fair value through other comprehensive income Securities 2,616,118 — 2,616,118 2,616,118 Evaluated at amortized cost Securities — 3,914,923 3,914,923 2,266,971 Securities purchased under agreements to resell — 9,490,090 9,490,090 9,490,090 Securities trading and intermediation — 504,983 504,983 504,983 Accounts receivable — 462,029 462,029 462,029 Loan operations — 386 386 386 Other financial assets — 19,805 19,805 19,805 Financial liabilities Fair value through profit or loss Securities loaned 2,021,707 — 2,021,707 2,021,707 Derivative financial instruments — 3,229,236 3,229,236 3,229,236 Evaluated at amortized cost Securities sold under repurchase agreements — 15,638,407 15,638,407 15,638,407 Securities trading and intermediation — 9,114,546 9,114,546 9,114,546 Borrowings and lease liabilities — 633,781 633,781 637,484 Debentures — 836,001 836,001 835,230 Accounts payables — 266,813 266,813 266,813 Structured operations certificates — 19,474 19,474 19,474 Other financial liabilities — 79,127 79,127 79,157 24,936,665 50,439,157 75,375,822 72,979,125 | Below are the Group financial assets and liabilities by level within the fair value hierarchy. The Group assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels: 2019 Level 1 Level 2 Fair Value Book Value Financial Assets Financial assets at Fair value through profit or loss Securities 20,277,031 2,166,361 22,443,392 22,443,392 Derivative financial instruments 21,809 4,063,195 4,085,004 4,085,004 Fair value through other comprehensive income Securities 2,616,118 — 2,616,118 2,616,118 Evaluated at amortized cost Securities — 3,914,923 3,914,923 2,266,971 Securities purchased under agreements to resell — 9,490,090 9,490,090 9,490,090 Securities trading and intermediation — 504,983 504,983 504,983 Accounts receivable — 462,029 462,029 462,029 Other financial assets — 20,191 20,191 20,191 Financial liabilities Fair value through profit or loss Securities loaned 2,021,707 — 2,021,707 2,021,707 Derivative financial instruments — 3,229,236 3,229,236 3,229,236 Evaluated at amortized cost Securities sold under repurchase agreements — 15,638,407 15,638,407 15,638,407 Securities trading and intermediation — 9,114,546 9,114,546 9,114,546 Borrowings and lease liabilities — 633,781 633,781 637,484 Debentures — 836,001 836,001 835,230 Accounts payables — 266,813 266,813 266,813 Other financial liabilities — 98,601 98,601 98,631 2018 Level 1 Level 2 Fair Value Book Value Financial Assets Financial assets at Fair value through profit or loss Securities 5,259,591 1,031,380 6,290,971 6,290,971 Derivative financial instruments 6,599 1,685,432 1,692,031 1,692,031 Fair value through other comprehensive income Securities 695,778 — 695,778 695,778 Evaluated at amortized cost Securities — 153,709 153,709 155,292 Securities purchased under agreements to resell — 6,568,246 6,568,246 6,570,609 Securities trading and intermediation — 898,312 898,312 898,312 Accounts receivable — 219,200 219,200 219,200 Other financial assets — 60,423 60,423 60,423 Financial liabilities Fair value through profit or loss Securities loaned 1,259,579 — 1,259,579 1,259,579 Derivative financial instruments — 991,399 991,399 991,399 Evaluated at amortized cost Securities sold under repurchase agreements — 6,792,316 6,792,316 6,640,694 Securities trading and intermediation — 5,306,628 5,306,628 5,306,628 Borrowings — 459,487 459,487 469,609 Debentures — 406,540 406,540 406,538 Accounts payables — 134,579 134,579 134,579 Other financial liabilities — 7,011 7,011 7,011 |
Management Of Financial Risks_2
Management Of Financial Risks And Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Management Of Financial Risks And Financial Instruments [Abstract] | |
Summary Of Financial Assets Representing The Maximum Exposure To Credit Risk | The carrying amount of the financial assets representing the maximum exposure to credit risk is shown in the table below: 2019 2018 Financial assets Securities purchased under agreements to resell 9,490,090 6,570,609 Securities 27,326,481 7,142,041 Public securities 20,381,125 4,704,604 Private securities 6,945,356 2,437,437 Derivative financial instruments 4,085,004 1,692,031 Securities trading and intermediation 504,983 898,312 Accounts receivable 462,029 219,200 Other financial assets 20,191 60,423 Total 41,888,778 16,582,616 |
Summary Of Financial Liabilities Into Groupings Based On Their Contractual Maturities | The tables below summarizes the Group’s financial liabilities into groupings based on their contractual maturities: 2019 Liabilities Up to From 2 to From 3 to From 1 to Above Contractual Securities loaned 2,021,707 — — — — 2,021,707 Derivative financial instruments 1,557,088 211,882 685,566 732,286 42,414 3,229,236 Securities sold under repurchase agreements 15,638,407 — — — — 15,638,407 Securities trading and intermediation 9,114,546 — — — — 9,114,546 Borrowings and lease liabilities 8,239 26,258 81,953 521,034 — 637,484 Debentures — — 435,230 400,000 — 835,230 Accounts payables 266,813 — — — — 266,813 Other financial liabilities 79,157 — — — 19,474 98,631 Total 28,685,957 238,140 1,167,519 1,688,550 61,888 31,842,054 2018 Liabilities Up to From 2 to 3 months From 3 to From 1 to 5 years Above Contractual Securities loaned 770,270 478,741 10,568 — — 1,259,579 Derivative financial instruments 152,971 182 242,506 560,798 34,942 991,399 Securities sold under repurchase agreements 68,738 5,439,405 1,132,551 — — 6,640,694 Securities trading and intermediation 5,306,628 — — — — 5,306,628 Borrowings and lease liabilities 19,032 22,752 72,705 355,120 — 469,609 Debentures — — — 406,538 — 406,538 Accounts payables 134,579 — — — — 134,579 Other financial liabilities 7,011 — — — — 7,011 Total 6,459,229 5,941,080 1,458,330 1,322,456 34,942 15,216,037 |
Summary Of Sensitivity Analysis | 2019 Trading portfolio Exposures Scenarios Risk factors Risk of variation in: I II III Pre-fixed Pre-fixed (907 ) (163,057 ) (445,866 ) Exchange coupons Foreign currencies coupon rate (67 ) 570 (854 ) Foreign currencies Exchange rates (2,102 ) (1,493 ) 43,908 Price indexes Inflation coupon rates (63 ) (782 ) (301 ) Shares Shares prices (442 ) (8,780 ) (57,390 ) (3,581 ) (173,542 ) (460,503 ) 2018 Trading portfolio Exposures Scenarios Risk factors Risk of variation in: I II III Pre-fixed Pre-fixed (559 ) (11,441 ) (22,881 ) Exchange coupons Foreign currencies coupon rate (9 ) (5,764 ) (11,529 ) Foreign currencies Exchange rates (386 ) (978 ) (5,027 ) Price indexes Inflation coupon rates (16 ) (798 ) (1,597 ) Shares Shares prices 877 (6,584 ) 4,873 (93 ) (25,565 ) (36,161 ) |
Capital Management (Tables)
Capital Management (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Net Debt And Corresponding Gearing Ratios [Abstract] | ||
Summary Of Net Debt And Corresponding Gearing Ratios | The net debt and corresponding gearing ratios as of September 30, 2020 and December 31, 2019 were as follows: September 30, 2020 December 31, Borrowings and lease liabilities 511,981 637,484 Debentures 338,693 835,230 Total debt 850,674 1,472,714 Cash (642,491 ) (109,922 ) Securities purchased under agreements to resell — (654,057 ) Certificate deposits (Securities) (105,204 ) (123,817 ) Net debt 102,979 584,918 Total equity 8,669,470 7,153,396 Total capital 8,772,449 7,738,313 Gearing ratio % 1.17 % 7.56 % | The net debt and corresponding gearing ratios at December 31, 2019 and 2018 were as follows: 2019 2018 Borrowings and lease liabilities 637,484 469,609 Debentures 835,230 406,538 Total debt 1,472,714 876,147 Cash (109,922 ) (68,407 ) Securities purchased under agreements to resell (654,057 ) (488,809 ) Certificate deposits (Securities) (123,817 ) (69,647 ) Net debt 584,918 249,284 Total equity 7,153,396 2,084,777 Total capital 7,738,313 2,334,061 Gearing ratio % 7,56 % 10,68 % |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure Of Cash Flow Information [Abstract] | ||
Schedule Of Debt Reconciliation | (i) Debt reconciliation Borrowings lease Debentures Total Total debt as of January 1, 2019 469,609 148,494 406,538 1,024,641 Acquisitions / Issuance — 105,694 400,000 505,694 Payments (74,853 ) (26,194 ) — (101,047 ) Net foreign exchange differences — 6,460 — 6,460 Interest accrued 20,869 12,447 29,284 62,600 Interest paid (16,386 ) — — (16,386 ) Total debt as of September 30, 2019 399,239 246,901 835,822 1,481,962 Total debt as of January 1, 2020 382,078 255,406 835,230 1,472,714 Acquisitions / Issuance — 45,129 — 45,129 Write-off — (78,322 ) — (78,322 ) Payments (84,895 ) (45,903 ) (400,000 ) (530,798 ) Repurchase (Note 15) — — (64,717 ) (64,717 ) Revaluation (Note 11(c)) — (10,050 ) — (10,050 ) Net foreign exchange differences — 32,675 — 32,675 Interest accrued 10,281 15,648 20,128 46,057 Interest paid (10,067 ) — (51,948 ) (62,015 ) Total debt as of September 30, 2020 297,397 214,583 338,693 850,673 | (i) Debt reconciliation Borrowings Lease Debentures Total Total debt as of January 1, 2017 — — — — Acquisitions / Issuance 826,000 — — 826,000 Net foreign exchange differences 35,116 — — 35,116 Interest accrued 5,908 — — 5,908 Total debt as of January 1, 2018 867,024 — — 867,024 Acquisitions / Issuance 325,370 — 400,000 725,370 Payments (689,634 ) — — (689,634 ) Net foreign exchange differences (35,091 ) — — (35,091 ) Interest accrued 56,125 — 6,538 62,663 Interest paid (54,185 ) — — (54,185 ) Total debt as of December 31, 2018 469,609 — 406,538 876,147 Change in accounting policy (Note 3.xxi) — 148,494 — 148,494 Total debt as of January 1, 2019 469,609 148,494 406,538 1,024,641 Acquisitions / Issuance — 124,196 400,000 524,196 Payments (85,353 ) (37,979 ) (11,815 ) (135,147 ) Net foreign exchange differences — 3,085 — 3,085 Interest accrued 26,250 17,610 40,507 84,367 Interest paid (28,428 ) — — (28,428 ) Total debt as of December 31, 2019 382,078 255,406 835,230 1,472,714 |
Operations - Additional Informa
Operations - Additional Information (Detail) $ / shares in Units, R$ in Thousands, $ in Thousands | Jul. 01, 2020$ / sharesshares | Dec. 13, 2019BRL (R$)shares | Dec. 13, 2019USD ($)$ / sharesshares | Nov. 30, 2019shares | Dec. 31, 2019BRL (R$)shares | Sep. 30, 2020 |
Disclosure of classes of share capital [line items] | ||||||
Percentage of ownership held by holding company | 64.61% | 53.38% | ||||
Reverse share split ratio | 4:1 | |||||
Issued capital before share split | 2,036,988,542 | |||||
Issued capital after share split | 509,247,136 | |||||
Number of shares issued new shares | 42,553,192 | |||||
Equity transaction cost | R$ | R$ 22824 | |||||
Class A Common Share [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares issued | 72,510,641 | |||||
Number of shares issued new shares | 42,553,192 | 42,553,192 | ||||
Number of shares issued existing shares | 29,957,449 | 29,957,449 | ||||
Shares issued to underwriters | 10,876,596 | 10,876,596 | ||||
Aggregate number of shares issued in public offering | 83,387,237 | 83,387,237 | ||||
Shares issued price per share | $ / shares | $ 27 | |||||
Gross proceeds from shares issued | R$ 4705803 | $ 1,148,936 | ||||
Underwriting discounts and commissions | R$ | 200,977 | |||||
Other offering expenses | R$ | 44,726 | |||||
Equity issuance costs recognized in income statement | R$ | 21,902 | |||||
Equity transaction cost | R$ | R$ 22824 | |||||
Class A Common Share [Member] | General Atlantic XP Bermuda And XP Control Paricipacoes [Member] | Follow On Public Offer [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares offered for sale | 22,465,733 | |||||
Number of shares offered for sale price per share | $ / shares | $ 42.50 | |||||
Class A Common Share [Member] | General Atlantic XP Bermuda And XP Control Paricipacoes [Member] | Underwriters Option [Member] | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares offered for sale | 2,930,313 |
Basis of preparation of the f_3
Basis of preparation of the financial statements and changes to the Group's accounting policies - Summary of Direct and Indirect Interests of Company (Detail) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of associates [line items] | |||
Country of incorporation | Cayman | ||
XP Allocation Asset Management Ltd [Member] | |||
Disclosure of associates [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Asset management | ||
% of Group's interest | 99.97% | ||
Track Indices Consultoria Ltda [Member] | |||
Disclosure of associates [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Index Provider | ||
% of Group's interest | 100.00% | ||
XP Eventos Ltd [Member] | |||
Disclosure of associates [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Media and Events | ||
% of Group's interest | 99.00% | ||
Carteira Online Controle de Investimentos Ltda ME [Member] | |||
Disclosure of associates [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investmentconsolidationplatform | ||
% of Group's interest | 99.99% | ||
Antecipa SA [Member] | |||
Disclosure of associates [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | ReceivablesFinancing Market | ||
% of Group's interest | 100.00% | ||
NIMROD Fundo De Investimento Multimercado Credito Privado Investimento No Exterior [Member] | |||
Disclosure of associates [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
% of Group's interest | 100.00% | ||
XP High Yield Fund SP [Member] | |||
Disclosure of associates [line items] | |||
Country of incorporation | Cayman | ||
Principal activities | Investment fund | ||
% of Group's interest | 100.00% | ||
XP International Fund SPC [Member] | |||
Disclosure of associates [line items] | |||
Principal activities | Investment fund | ||
% of Group's interest | 100.00% | ||
Spatha Fundo de Investimento Multimercado Crdito Privado Investimento no Exterior [member] | |||
Disclosure of associates [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
% of Group's interest | 100.00% | 100.00% | |
% of Group's interest | 100.00% | ||
Balista Debentures Incentivadas Fundo de Investimento Multimercado Crdito Privado vi [member] | |||
Disclosure of associates [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
% of Group's interest | 100.00% | ||
% of Group's interest | 100.00% |
Basis of preparation of the f_4
Basis of preparation of the financial statements and changes to the Group's accounting policies - Additional Information (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Jun. 29, 2020 | Jun. 09, 2020 | Jun. 05, 2020 |
Fliper And Antecepia [Member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Business combination total consideration | R$ 83925 | |||
Business combination cash consideration | 55,741 | |||
Business combination remaining consideration payable | 14,000 | |||
Business combination fair value of contingent consideration | R$ 14183 | |||
Carteira Online Controle de Investimentos Ltda ME [Member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Business combination percentage of voting rights | 100.00% | |||
Antecipa SA [Member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Business combination percentage of voting rights | 100.00% | |||
Corretora De Seguros E Accessoria Ltd [Member] | ||||
Disclosure of detailed information about business combination [line items] | ||||
Business combination percentage of voting rights | 100.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Summary of Significant Accounting Policies [Line Items] | ||||||||
Incremental borrowing rate applied to lease liabilities | 9.00% | |||||||
Tax rate on taxable income | 34.00% | 34.00% | 34.00% | 34.00% | 34.00% | 34.00% | 34.00% | |
Surcharge on taxable income | 10.00% | |||||||
Monthly minimum income for surcharge | R$ 20 | |||||||
Annual minimum income for surcharge | R$ 240 | |||||||
Social contribution tax on net income | 9.00% | |||||||
Social contribution tax on net income, temporary increase | 20.00% | |||||||
Loss carryforwards used to offset taxable profit | 30.00% | |||||||
PIS tax rate | 1.65% | |||||||
COFINS tax rate | 7.60% | |||||||
Rate applicable to companies under PPM PIS | 0.65% | |||||||
Rate applicable to companies under PPM COFINS | 3.00% | |||||||
Federal Income Tax [member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Tax rate on taxable income | 15.00% | |||||||
Top of range [member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Percentage of taxes reducing gross revenues | 5.00% | |||||||
Bottom of range [member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Percentage of taxes reducing gross revenues | 2.00% | |||||||
Financial Institutions and Insurance Companies [member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Social contribution tax on net income | 15.00% | |||||||
Rate applicable to companies under PPM PIS | 1.00% | |||||||
Rate applicable to companies under PPM COFINS | 4.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Adoption of IFRS 16 On Lease Liabilities (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | |
Accounting Policies [Abstract] | |||||
Operating lease commitments disclosed as of December 31, 2018 | R$ 209318 | ||||
Discounted using the incremental borrowing rate of at the date of initial application | (60,099) | ||||
(Less): short-term leases recognized on a straight-line basis as expense | (725) | ||||
Lease liability recognized as of January 1, 2019 | R$ 148494 | R$ 214583 | R$ 255406 | R$ 246901 | R$ 148494 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Right-Of-Use Assets Related to Property and Equipment Leases (Detail) - BRL (R$) R$ in Thousands | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Summary of Significant Accounting Policies [Line Items] | |||||
Lease liability recognized as of January 1, 2019 | R$ 214583 | R$ 246901 | R$ 255406 | R$ 148494 | R$ 148494 |
(Less): accrued lease payments as of December 31, 2018 | (45,903) | (26,194) | (37,979) | (14,624) | |
Rights-of-use assets | R$ 182014 | R$ 221381 | R$ 227478 | R$ 133870 | 133,870 |
Properties [member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Rights-of-use assets | 123,262 | ||||
Equipments [member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Rights-of-use assets | R$ 10608 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Depreciation of Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Data Processing Systems [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation Annual Rate | 20.00% |
Furniture and equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation Annual Rate | 10.00% |
Security Systems [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation Annual Rate | 10.00% |
Facilities [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation Annual Rate | 10.00% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Useful Lives of the Intangible Assets (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Software [member] | Bottom of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Estimate useful life (years) | 3 years |
Software [member] | Top of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Estimate useful life (years) | 5 years |
Internally Developed Intangible [member] | Bottom of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Estimate useful life (years) | 3 years |
Internally Developed Intangible [member] | Top of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Estimate useful life (years) | 7 years |
Customer list [member] | Bottom of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Estimate useful life (years) | 2 years |
Customer list [member] | Top of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Estimate useful life (years) | 8 years |
Trademarks [member] | Bottom of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Estimate useful life (years) | 10 years |
Trademarks [member] | Top of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Estimate useful life (years) | 20 years |
Group structure - Summary of Di
Group structure - Summary of Direct and Indirect Interests of Company in Its Subsidiaries (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
XP Investimentos SA [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Holding | ||
% of Group's interest (i) | 100.00% | 100.00% | 100.00% |
XP Investimentos Corretora de Cmbio Ttulos e Valores Mobilirios SA [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Broker-dealer | ||
% of Group's interest (i) | 100.00% | 100.00% | 100.00% |
XP Investments US LLC [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | USA | ||
Principal activities | Broker-dealer | ||
% of Group's interest (i) | 100.00% | 100.00% | 100.00% |
XP Investments UK LLP [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | UK | ||
Principal activities | Inter-dealer broker and Organized Trading Facility (OTF) | ||
% of Group's interest (i) | 100.00% | 100.00% | 99.90% |
Sartus Capital LTD [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | UK | ||
Principal activities | Investment advisor | ||
% of Group's interest (i) | 100.00% | 100.00% | 100.00% |
XP Private Europe SA [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | UK | ||
Principal activities | Investment advisor | ||
% of Group's interest (i) | 100.00% | 100.00% | 100.00% |
XP Vida e Previdncia SA v [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Private pension and insurance | ||
% of Group's interest (i) | 100.00% | 100.00% | |
Banco XP SA vi [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Multipurpose bank | ||
% of Group's interest (i) | 100.00% | ||
Xperience Market Services LLC vi [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | USA | ||
Principal activities | Non-operational | ||
% of Group's interest (i) | 100.00% | ||
Chamaleon Bravery Unipessoal LDA vi [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Portugal | ||
Principal activities | Investment Advisor (pending regulatory approval) | ||
% of Group's interest (i) | 100.00% | ||
XP Holding Investimentos SA [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Financial Holding | ||
% of Group's interest (i) | 100.00% | ||
XP Controle 3 Participaes SA [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Financial Holding | ||
% of Group's interest (i) | 100.00% | 100.00% | 100.00% |
XPE Infomoney Educao Assessoria Empresarial e Participaes Ltda [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Digital Content services | ||
% of Group's interest (i) | 99.99% | 99.70% | 96.69% |
Tecfinance Informtica e Projetos de Sistemas Ltda [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Rendering of IT services | ||
% of Group's interest (i) | 99.76% | 99.73% | 99.73% |
XP Corretora de Seguros Ltda [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Insurance Broker | ||
% of Group's interest (i) | 99.99% | 99.82% | 99.81% |
XP Gesto de Recursos Ltda [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Asset management | ||
% of Group's interest (i) | 93.70% | 92.80% | 91.65% |
XP Finanas Assessoria Financeira Ltda [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment consulting service | ||
% of Group's interest (i) | 99.99% | 99.99% | 99.95% |
Infostocks Informaes e Sistemas Ltda [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Mediation of information systems | ||
% of Group's interest (i) | 99.99% | 99.99% | 99.99% |
XP Advisory Gesto Recursos Ltda [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Asset management | ||
% of Group's interest (i) | 99.57% | 99.52% | 99.52% |
XDEX Intermediao Ltda iii [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Intermediary and service agency | ||
% of Group's interest (i) | 99.99% | ||
XP Holding International LLCii [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | USA | ||
Principal activities | International financial holding | ||
% of Group's interest (i) | 100.00% | 100.00% | 100.00% |
XP Advisory US [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | USA | ||
Principal activities | Investment advisor | ||
% of Group's interest (i) | 100.00% | 100.00% | 100.00% |
XP Holding UK Ltd [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | UK | ||
Principal activities | International financial holding | ||
% of Group's interest (i) | 100.00% | 100.00% | 100.00% |
XP Vista Asset Management Ltda iv [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Asset management | ||
% of Group's interest (i) | 99.42% | 99.60% | |
XP Controle 4 Participaes SA v [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Insurance holding | ||
% of Group's interest (i) | 100.00% | 100.00% | |
Leadr Servios Online Ltda vi [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Social media | ||
% of Group's interest (i) | 99.99% | ||
Spiti Anlise Ltda vi [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Research (pending regulatory approval) | ||
% of Group's interest (i) | 99.99% | ||
Falx Fundo de Investimento Multimercado Crdito Privado Investimento no Exterior [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
% of Group's interest (i) | 100.00% | 100.00% | 100.00% |
Gladius Fundo de Investimento Multimercado Investimento no Exterior [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
% of Group's interest (i) | 100.00% | 100.00% | 100.00% |
Scorpio Debentures Incentivadas Fundo de Investimento Multimercado Crdito Privado [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
% of Group's interest (i) | 100.00% | 100.00% | 100.00% |
Galea Fundo de Investimento Multimercado Crdito Privado Investimento no Exterior [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
% of Group's interest (i) | 100.00% | 100.00% | 100.00% |
Javelin Fundo de Investimento Multimercado Crdito Privado Investimento no Exterior [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
% of Group's interest (i) | 100.00% | 100.00% | 100.00% |
Spatha Fundo de Investimento Multimercado Crdito Privado Investimento no Exterior [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
% of Group's interest (i) | 100.00% | 100.00% | |
Frade Fundo de Investimento em Cotas de Fundos de Investimento em Direitos Creditrios NP [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
% of Group's interest (i) | 100.00% | 100.00% | |
Frade III Fundo de Investimento em Cotas de Fundo de Investimento Multimercado Crdito Privado vi [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
% of Group's interest (i) | 100.00% | ||
Balista Debentures Incentivadas Fundo de Investimento Multimercado Crdito Privado vi [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
% of Group's interest (i) | 100.00% | ||
Coliseu Fundo de Investimento Multimercado Crdito Privado Investimento no Exterior vi [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
% of Group's interest (i) | 100.00% | ||
XP Short Brasil Alavancado Fundo de Investimento Multimercado Investimento no Exterior vii [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
% of Group's interest (i) | 100.00% | ||
XP Pacote Brasil Alavancado Fundo de Investimento Multimercado Investimento no Exterior vii [member] | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
% of Group's interest (i) | 100.00% |
Group structure - Summary of th
Group structure - Summary of the Net Assets Acquired, the Goodwill (Detail) - BRL (R$) R$ in Thousands | Aug. 10, 2017 | Sep. 30, 2020 | Dec. 31, 2018 | Dec. 31, 2017 |
Analysis of cash flows on acquisition [abstract] | ||||
Net of cash flow on acquisition (investing activities) | R$ 55741 | R$ 10413 | R$ 404631 | |
Rico Corretora de Ttulos e Valores Mobilirios SA [Member] | ||||
Assets [abstract] | ||||
Cash | R$ 96 | |||
Accounts receivable | 1,915 | |||
Other assets | 11,582 | |||
Deferred tax assets | 3,751 | |||
Property and equipment (Note 13 (a)) | 1,728 | |||
Intangible assets (Note 13 (b)) | 75,813 | |||
Assets acquired as of acquisition date | 471,745 | |||
Liabilities [abstract] | ||||
Social and statutory obligations | (560) | |||
Tax and social security obligations | (12,651) | |||
Securities trading and intermediation | (322,371) | |||
Provisions and contingent liabilities (Note 25) | (7,921) | |||
Other liabilities | (5,217) | |||
Liabilities assumed as of acquisition date | (348,720) | |||
Total identifiable net assets at fair value | 123,025 | |||
Goodwill arising on acquisition (Note 13 (b)) | 281,702 | |||
Purchase consideration transferred | 404,727 | |||
Analysis of cash flows on acquisition [abstract] | ||||
Consideration paid in cash | 404,727 | |||
Net cash acquired with the subsidiary | (96) | |||
Net of cash flow on acquisition (investing activities) | 404,631 | |||
Rico Corretora de Ttulos e Valores Mobilirios SA [Member] | Financial assets at fair value through profit or loss, category [member] | ||||
Assets [abstract] | ||||
Financial instruments | 356,648 | |||
Rico Corretora de Ttulos e Valores Mobilirios SA [Member] | Financial assets at fair value through other comprehensive income, category [member] | ||||
Assets [abstract] | ||||
Financial instruments | R$ 20212 |
Group structure - Summary of In
Group structure - Summary of Intangible Assets Acquired (Detail) - BRL (R$) R$ in Thousands | Aug. 10, 2017 | Dec. 31, 2019 |
Customer list [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Amount | R$ 50077 | |
Method | Multi-period excess earning method | |
Expected amortization period | 8 years | |
Trademarks [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Amount | R$ 19304 | |
Method | Relief from royalty | |
Expected amortization period | 10 years | |
Technology [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Amount | R$ 2028 | |
Method | Relief from royalty | |
Expected amortization period | 3 years |
Group structure - Additional In
Group structure - Additional Information (Detail) - BRL (R$) R$ in Thousands | Aug. 10, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 05, 2018 |
Disclosure of detailed information about business combination [line items] | ||||||
Noncontrolling interests subscribed | R$ 43000 | |||||
Noncontrolling interests redeemed | R$ 2229 | R$ 788 | R$ 45550 | |||
Gain on redemption of noncontrolling interest | R$ 374 | R$ 409 | ||||
Rico Corretora de Ttulos e Valores Mobilirios SA [member] | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Fair value of consideration | R$ 404727 | |||||
Fair value trade accounts receivable | 1,915 | |||||
Contingent liability recognized on acquisition | 7,921 | |||||
Acquisition-related costs | 690 | |||||
Contributed revenues | 53,942 | |||||
Contributed net profit | 12,125 | |||||
Consolidated pro-forma revenue | 133,411 | |||||
Consolidated pro-forma net profit | R$ 29919 | |||||
Assets acquired, cash | 96 | |||||
Assets acquired, goodwill | R$ 281702 | |||||
XP Vista Asset Management Ltda iv [member] | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Fair value of consideration | R$ 10938 | |||||
Percentage of shares acquired | 99.60% | |||||
Assets acquired, cash | R$ 525 | |||||
Assets acquired, goodwill | R$ 9799 |
Securities purchased (sold) u_3
Securities purchased (sold) under resale (repurchase) agreements - Summary of securities purchased under agreements to resell (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of securities purchased under agreements to resell [Line Items] | |||||
Securities purchased under agreements to resell | R$ 0 | R$ 654057 | R$ 684964 | R$ 488809 | R$ 420958 |
Available portfolio [member] | |||||
Summary of securities purchased under agreements to resell [Line Items] | |||||
Securities purchased under agreements to resell | 1,883,825 | 971,991 | 488,809 | ||
Available portfolio [member] | National Treasury Notes [member] | |||||
Summary of securities purchased under agreements to resell [Line Items] | |||||
Securities purchased under agreements to resell | 1,639,174 | 771,099 | 65,136 | ||
Available portfolio [member] | Financial Treasury Bills [member] | |||||
Summary of securities purchased under agreements to resell [Line Items] | |||||
Securities purchased under agreements to resell | 195,980 | 38,014 | |||
Available portfolio [member] | National Treasury Bills [member] | |||||
Summary of securities purchased under agreements to resell [Line Items] | |||||
Securities purchased under agreements to resell | 244,651 | 4,912 | 385,659 | ||
Collateral held [member] | |||||
Summary of securities purchased under agreements to resell [Line Items] | |||||
Securities purchased under agreements to resell | 16,359,863 | 8,518,099 | 6,081,800 | ||
Collateral held [member] | National Treasury Notes [member] | |||||
Summary of securities purchased under agreements to resell [Line Items] | |||||
Securities purchased under agreements to resell | 15,962,588 | 6,753,689 | 1,170,165 | ||
Collateral held [member] | National Treasury Bills [member] | |||||
Summary of securities purchased under agreements to resell [Line Items] | |||||
Securities purchased under agreements to resell | 397,275 | 1,764,410 | 4,911,635 | ||
Securities purchased under agreements to resell [member] | |||||
Summary of securities purchased under agreements to resell [Line Items] | |||||
Securities purchased under agreements to resell | R$ 18243688 | R$ 9490090 | R$ 6570609 |
Securities purchased (sold) u_4
Securities purchased (sold) under resale (repurchase) agreements - Additional Information (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of securities purchased under agreements to resell [Abstract] | |||||
Investments in purchase and sale commitments, interest rate | 4.63% | 6.43% | |||
Securities purchased under agreements to resell | R$ 0 | R$ 654057 | R$ 684964 | R$ 488809 | R$ 420958 |
Securities Sold Under Repurchase Agreements Interest Rate | 1.89% | 4.48% | 6.40% |
Securities purchased (sold) u_5
Securities purchased (sold) under resale (repurchase) agreements - Summary of Securities Sold Under Repurchase Agreements (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Detailed Information on Securities Sold under Repurchase Agreements [Line Items] | |||
Financial Liabilities at Amortised Cost Securities Sold Under Repurchase Agreements | R$ 35253928 | R$ 15638407 | R$ 6640694 |
National treasury notes [member] | |||
Disclosure of Detailed Information on Securities Sold under Repurchase Agreements [Line Items] | |||
Financial Liabilities at Amortised Cost Securities Sold Under Repurchase Agreements | 22,571,006 | 8,533,113 | 1,153,547 |
National Treasury Bills [member] | |||
Disclosure of Detailed Information on Securities Sold under Repurchase Agreements [Line Items] | |||
Financial Liabilities at Amortised Cost Securities Sold Under Repurchase Agreements | R$ 12682922 | 5,653,994 | 5,142,881 |
Financial Treasury Bills [member] | |||
Disclosure of Detailed Information on Securities Sold under Repurchase Agreements [Line Items] | |||
Financial Liabilities at Amortised Cost Securities Sold Under Repurchase Agreements | R$ 1451300 | R$ 344266 |
Loan operations - Summary of Lo
Loan operations - Summary of Loan Operations (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Disclosure Detail Of Loan Operations [Line Items] | ||
Total Loans operations | R$ 1376290 | R$ 388 |
Expected Credit Loss | (7,056) | (2) |
Total loans operations, net of Expected Loss | 1,369,234 | 386 |
Retail | Pledged asset loan | ||
Disclosure Detail Of Loan Operations [Line Items] | ||
Total Loans operations | 947,449 | 388 |
Retail | Credit card | ||
Disclosure Detail Of Loan Operations [Line Items] | ||
Total Loans operations | 8,061 | 0 |
Corporate | Pledged asset loan | ||
Disclosure Detail Of Loan Operations [Line Items] | ||
Total Loans operations | 316,412 | 0 |
Corporate | Non-pledged loan | ||
Disclosure Detail Of Loan Operations [Line Items] | ||
Total Loans operations | R$ 104368 | R$ 0 |
Loan operations - Summary of _2
Loan operations - Summary of Loan Operations Based on Maturity (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Disclosure Detail Of Loan Operations Based On Maturity [Line Items] | ||
Total Loans operations | R$ 1376290 | R$ 388 |
Due in 3 months or less | ||
Disclosure Detail Of Loan Operations Based On Maturity [Line Items] | ||
Total Loans operations | 68,783 | 388 |
Due after 3 months through 12 months | ||
Disclosure Detail Of Loan Operations Based On Maturity [Line Items] | ||
Total Loans operations | 287,720 | 0 |
Due after 12 months | ||
Disclosure Detail Of Loan Operations Based On Maturity [Line Items] | ||
Total Loans operations | R$ 1019786 | R$ 0 |
Loan operations - Additional In
Loan operations - Additional Information (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Disclosure Detail Of Loan Operations [Line Items] | ||
Expected credit loss on financial assets at amortised cost loans from operations | R$ 7056 | R$ 2 |
Pledged Asset Loan and Credit Card | ||
Disclosure Detail Of Loan Operations [Line Items] | ||
Percentage of the total credit porfolio | 94.00% | 0.00% |
Expected credit loss on financial assets at amortised cost loans from operations | R$ 7056 | |
Expected credit loss as a percentage of the total credit portfolio | 0.50% | 0.00% |
Securities - Summary of securit
Securities - Summary of securities classified at fair value through profit and loss and at fair value through other comprehensive income (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | R$ 51850286 | R$ 26528396 | R$ 7983002 |
Financial assets at fair value through other comprehensive income | 9,588,773 | 2,616,118 | 695,778 |
Fair value [member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 38,701,519 | 22,443,392 | 6,290,971 |
Financial assets at fair value through other comprehensive income | 9,588,773 | 2,616,118 | 695,778 |
Fair value [member] | Agribusiness receivables certificates [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 177,095 | 589,525 | 85,874 |
Fair value [member] | Bank deposit certificates [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 370,385 | 246,827 | 171,725 |
Fair value [member] | Brazilian government bonds [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 25,280,046 | 15,494,046 | 3,853,534 |
Fair value [member] | Certificate of real estate receivable [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 124,056 | 75,123 | 207,167 |
Fair value [member] | Debentures [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 1,018,893 | 885,068 | 326,403 |
Fair value [member] | Financial credit bills [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 82,683 | 106,759 | 44,663 |
Fair value [member] | Investment funds [member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 7,656,266 | 3,047,198 | 279,013 |
Fair value [member] | United States government bonds [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 702,869 | ||
Fair value [member] | Real estate credit bill [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 1,651 | 1,300 | 4,883 |
Fair value [member] | Stocks issued by public-held company [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 2,546,996 | 1,562,965 | 1,127,044 |
Fair value [member] | Structured transaction certificate [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 470,652 | 256,381 | 22,949 |
Fair value [member] | Others [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 269,927 | 178,200 | 167,716 |
Fair value [member] | National treasury bill [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through other comprehensive income | 9,588,773 | 2,616,118 | 695,778 |
Cost [member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 38,569,036 | 22,332,936 | 6,262,735 |
Financial assets at fair value through other comprehensive income | 9,637,582 | 2,608,325 | 688,731 |
Cost [member] | Agribusiness receivables certificates [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 179,155 | 598,085 | 85,668 |
Cost [member] | Bank deposit certificates [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 368,845 | 244,071 | 172,451 |
Cost [member] | Brazilian government bonds [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 25,239,874 | 15,404,300 | 3,826,902 |
Cost [member] | Certificate of real estate receivable [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 126,791 | 75,922 | 208,442 |
Cost [member] | Debentures [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 1,034,742 | 885,344 | 325,459 |
Cost [member] | Financial credit bills [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 82,439 | 98,068 | 45,040 |
Cost [member] | Investment funds [member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 7,656,488 | 3,047,198 | 279,013 |
Cost [member] | United States government bonds [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 666,870 | ||
Cost [member] | Real estate credit bill [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 1,632 | 1,282 | 3,697 |
Cost [member] | Stocks issued by public-held company [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 2,546,996 | 1,562,965 | 1,127,074 |
Cost [member] | Structured transaction certificate [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 410,022 | 237,112 | 21,275 |
Cost [member] | Others [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through profit or loss | 255,182 | 178,589 | 167,714 |
Cost [member] | National treasury bill [Member] | |||
Disclosure of financial assets [line items] | |||
Financial assets at fair value through other comprehensive income | R$ 9637582 | R$ 2608325 | R$ 688731 |
Securities - Summary of secur_2
Securities - Summary of securities classified at fair value through profit and loss and at fair value through other comprehensive income (Parenthetical) (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial assets [abstract] | |||||
Short-term deposits, classified as cash equivalents | R$ 105204 | R$ 123817 | R$ 90530 | R$ 69647 | R$ 261317 |
Investment in specially constituted investment fund | R$ 7230918 | R$ 3759090 |
Securities - Summary of secur_3
Securities - Summary of securities evaluated at amortized cost (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial assets [line items] | |||
Bonds | R$ 1366038 | R$ 2266971 | R$ 155292 |
Cost [member] | |||
Disclosure of financial assets [line items] | |||
Bonds | R$ 1366038 | R$ 2266971 | R$ 155292 |
Securities - Summary of secur_4
Securities - Summary of securities on the financial liabilities classified at fair value through profit or loss (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of offsetting of financial liabilities [line items] | |||
Securities loaned | R$ 1111770 | R$ 2021707 | R$ 1259579 |
Cost [member] | |||
Disclosure of offsetting of financial liabilities [line items] | |||
Securities loaned | R$ 1111770 | R$ 2021707 | R$ 1259579 |
Securities - Summary of secur_5
Securities - Summary of securities classified by maturity (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of offsetting of financial liabilities [line items] | |||
Financial assets | R$ 84432999 | R$ 41888778 | R$ 16582616 |
Financial liabilities | 69,388,840 | 31,842,054 | 15,216,037 |
Fair value [member] | |||
Disclosure of offsetting of financial liabilities [line items] | |||
Financial assets | 49,656,330 | 27,326,481 | 7,142,041 |
Financial liabilities | 1,111,770 | 2,021,707 | 1,259,579 |
Financial assets at fair value through P&L and at OCI | |||
Disclosure of offsetting of financial liabilities [line items] | |||
Current financial assets | 22,696,712 | 9,804,819 | 1,875,374 |
Non-current financial assets | 25,593,580 | 15,254,691 | 5,111,375 |
Current financial liabilities | 1,111,770 | 2,021,707 | 1,192,877 |
Non-current financial liabilities | 66,702 | ||
Financial assets at amortised cost | |||
Disclosure of offsetting of financial liabilities [line items] | |||
Current financial assets | 1,366,038 | 2,266,971 | 155,292 |
Non-stated maturity | Financial assets at fair value through P&L and at OCI | |||
Disclosure of offsetting of financial liabilities [line items] | |||
Current financial assets | 10,466,704 | 4,999,333 | 1,425,401 |
Current financial liabilities | 1,111,770 | 2,021,707 | |
Non-stated maturity | Financial assets at amortised cost | |||
Disclosure of offsetting of financial liabilities [line items] | |||
Current financial assets | 807,218 | ||
Up to 3 months | Financial assets at fair value through P&L and at OCI | |||
Disclosure of offsetting of financial liabilities [line items] | |||
Current financial assets | 644,886 | 257,544 | 192,208 |
Current financial liabilities | 1,184,972 | ||
Up to 3 months | Financial assets at amortised cost | |||
Disclosure of offsetting of financial liabilities [line items] | |||
Current financial assets | 194,334 | 807,218 | |
From 3 to 12 months | |||
Disclosure of offsetting of financial liabilities [line items] | |||
Financial liabilities | 1,167,519 | 1,458,330 | |
From 3 to 12 months | Financial assets at fair value through P&L and at OCI | |||
Disclosure of offsetting of financial liabilities [line items] | |||
Current financial assets | 11,585,122 | 4,547,942 | 257,765 |
Current financial liabilities | 7,905 | ||
From 3 to 12 months | Financial assets at amortised cost | |||
Disclosure of offsetting of financial liabilities [line items] | |||
Current financial assets | 1,171,704 | 1,459,753 | 155,292 |
After one year | Financial assets at fair value through P&L and at OCI | |||
Disclosure of offsetting of financial liabilities [line items] | |||
Non-current financial assets | R$ 25593580 | R$ 15254691 | 5,111,375 |
Non-current financial liabilities | R$ 66702 |
Derivative financial instrume_3
Derivative financial instruments - Summary of Positions with derivative financial instruments (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | R$ 13148767 | R$ 4085004 | R$ 1692031 |
Derivative financial assets, notional amount | 655,827,798 | 520,217,621 | 88,689,738 |
Derivative financial liabilities | 12,729,596 | 3,229,236 | 991,399 |
Derivative financial liabilities, notional amount | 610,429,450 | 492,067,822 | 86,580,121 |
Swap contract [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 637,693 | 1,133,768 | 244,262 |
Derivative financial assets, notional amount | 16,819,387 | 3,955,473 | 3,454,728 |
Derivative financial liabilities | 693,187 | 485,164 | 247,732 |
Derivative financial liabilities, notional amount | 5,517,378 | 3,420,857 | 3,981,304 |
Forward contract [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 5,901,156 | 187,392 | 573,963 |
Derivative financial assets, notional amount | 14,566,817 | 1,857,542 | 809,202 |
Derivative financial liabilities | 5,492,148 | 2,480 | 17,170 |
Derivative financial liabilities, notional amount | 10,248,842 | 164,209 | 19,142 |
Futures contract [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 7,451 | 21,809 | 6,599 |
Derivative financial assets, notional amount | 22,282,253 | 15,920,584 | 5,679,425 |
Derivative financial liabilities | 19,745 | ||
Derivative financial liabilities, notional amount | 20,343,451 | ||
Option contract [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 6,602,467 | 2,742,035 | 867,207 |
Derivative financial assets, notional amount | 602,159,341 | 498,484,022 | 78,746,383 |
Derivative financial liabilities | 6,524,516 | 2,741,592 | 726,497 |
Derivative financial liabilities, notional amount | R$ 574319779 | R$ 488482756 | R$ 82579675 |
Derivative financial instrume_4
Derivative financial instruments - Summary of the Derivative financial instruments portfolio (assets and liabilities) by type of instrument (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets, notional amount | R$ 655827798 | R$ 520217621 | R$ 88689738 |
Derivative financial assets | R$ 13148767 | R$ 4085004 | R$ 1692031 |
Percentage of derivative financial assets | 100.00% | 100.00% | 100.00% |
Derivative financial liabilities, notional amount | R$ 610429450 | R$ 492067822 | R$ 86580121 |
Derivative financial liabilities | R$ 12729596 | R$ 3229236 | R$ 991399 |
Percentage of derivative financial liabilities | 100.00% | 100.00% | 100.00% |
Not later than three months [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | R$ 7347269 | R$ 2028463 | R$ 628432 |
Derivative financial liabilities | 6,927,096 | 1,763,063 | 153,152 |
Later than three months and not later than one year [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 547,743 | 1,306,020 | 471,882 |
Derivative financial liabilities | 337,197 | 678,405 | 242,506 |
From 3 to 12 months [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 5,253,755 | 750,521 | 591,717 |
Derivative financial liabilities | 5,465,303 | 787,768 | 595,741 |
Swap contract [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets, notional amount | 16,819,387 | 3,955,473 | 3,454,728 |
Derivative financial assets | R$ 637693 | R$ 1133768 | R$ 244262 |
Percentage of derivative financial assets | 5.00% | 27.00% | 14.00% |
Derivative financial liabilities, notional amount | R$ 5517378 | R$ 3420857 | R$ 3981304 |
Derivative financial liabilities | R$ 693187 | R$ 485164 | R$ 247732 |
Percentage of derivative financial liabilities | 5.00% | 14.00% | 25.00% |
Swap contract [member] | Not later than three months [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | R$ 38784 | R$ 10418 | R$ 4675 |
Derivative financial liabilities | 75,816 | 15,838 | 7,710 |
Swap contract [member] | Later than three months and not later than one year [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 156,750 | 700,668 | 25,054 |
Derivative financial liabilities | 170,932 | 40,687 | 25,094 |
Swap contract [member] | From 3 to 12 months [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 442,159 | 422,682 | 214,533 |
Derivative financial liabilities | 446,439 | 428,639 | 214,928 |
Forward contract [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets, notional amount | 14,566,817 | 1,857,542 | 809,202 |
Derivative financial assets | R$ 5901156 | R$ 187392 | R$ 573963 |
Percentage of derivative financial assets | 45.00% | 5.00% | 34.00% |
Derivative financial liabilities, notional amount | R$ 10248842 | R$ 164209 | R$ 19142 |
Derivative financial liabilities | R$ 5492148 | R$ 2480 | R$ 17170 |
Percentage of derivative financial liabilities | 43.00% | 1.00% | 2.00% |
Forward contract [member] | Not later than three months [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | R$ 5651129 | R$ 159163 | R$ 363863 |
Derivative financial liabilities | 5,458,963 | 1,693 | 16,972 |
Forward contract [member] | Later than three months and not later than one year [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 161,202 | 28,175 | 210,100 |
Derivative financial liabilities | 13,058 | 325 | 25 |
Forward contract [member] | From 3 to 12 months [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 88,825 | 54 | |
Derivative financial liabilities | 20,127 | 462 | 173 |
Futures contract [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets, notional amount | 22,282,253 | 15,920,584 | 5,679,425 |
Derivative financial assets | 7,451 | R$ 21809 | R$ 6599 |
Percentage of derivative financial assets | 1.00% | 1.00% | |
Derivative financial liabilities, notional amount | 20,343,451 | ||
Derivative financial liabilities | 19,745 | ||
Futures contract [member] | Not later than three months [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 7,451 | R$ 21809 | R$ 4613 |
Derivative financial liabilities | 19,745 | ||
Futures contract [member] | Later than three months and not later than one year [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 1,986 | ||
Option contract [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets, notional amount | 602,159,341 | 498,484,022 | 78,746,383 |
Derivative financial assets | R$ 6602467 | R$ 2742035 | R$ 867207 |
Percentage of derivative financial assets | 50.00% | 67.00% | 51.00% |
Derivative financial liabilities, notional amount | R$ 574319779 | R$ 488482756 | R$ 82579675 |
Derivative financial liabilities | R$ 6524516 | R$ 2741592 | R$ 726497 |
Percentage of derivative financial liabilities | 52.00% | 85.00% | 73.00% |
Option contract [member] | Not later than three months [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | R$ 1649905 | R$ 1837073 | R$ 255281 |
Derivative financial liabilities | 1,372,572 | 1,745,532 | 128,470 |
Option contract [member] | Later than three months and not later than one year [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 229,791 | 577,177 | 234,742 |
Derivative financial liabilities | 153,207 | 637,393 | 217,387 |
Option contract [member] | From 3 to 12 months [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets | 4,722,771 | 327,785 | 377,184 |
Derivative financial liabilities | R$ 4998737 | R$ 358667 | R$ 380640 |
Derivative financial instrume_5
Derivative financial instruments - Summary of derivatives financial instruments by index (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets, notional amount | R$ 655827798 | R$ 520217621 | R$ 88689738 |
Derivative financial liabilities, notional amount | 610,429,450 | 492,067,822 | 86,580,121 |
Derivative financial assets | 13,148,767 | 4,085,004 | 1,692,031 |
Derivative financial liabilities | (12,729,596) | (3,229,236) | (991,399) |
Derivative financial assets liabilities, net | 855,768 | 700,632 | |
Swap contract [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets, notional amount | 16,819,387 | 3,955,473 | 3,454,728 |
Derivative financial liabilities, notional amount | 5,517,378 | 3,420,857 | 3,981,304 |
Derivative financial assets | 637,693 | 1,133,768 | 244,262 |
Derivative financial liabilities | (693,187) | (485,164) | (247,732) |
Swap contract [member] | Interest [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets, notional amount | 3,955,473 | 3,454,728 | |
Derivative financial liabilities, notional amount | 3,420,857 | 3,981,304 | |
Derivative financial assets | 1,133,768 | 244,262 | |
Derivative financial liabilities | (485,164) | (247,732) | |
Forward contract [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets, notional amount | 14,566,817 | 1,857,542 | 809,202 |
Derivative financial liabilities, notional amount | 10,248,842 | 164,209 | 19,142 |
Derivative financial assets | 5,901,156 | 187,392 | 573,963 |
Derivative financial liabilities | (5,492,148) | (2,480) | (17,170) |
Forward contract [member] | Foreign exchange [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets, notional amount | 1,710,648 | 239,478 | |
Derivative financial liabilities, notional amount | 162,551 | 2,234 | |
Derivative financial assets | 40,499 | 4,239 | |
Derivative financial liabilities | (822) | (262) | |
Forward contract [member] | Shares [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets, notional amount | 342,681 | ||
Derivative financial liabilities, notional amount | 1,658 | 16,908 | |
Derivative financial assets | 342,681 | ||
Derivative financial liabilities | (1,658) | (16,908) | |
Forward contract [member] | Interest [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets, notional amount | 146,893 | 227,043 | |
Derivative financial assets | 146,893 | 227,043 | |
Futures contract [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets, notional amount | 22,282,253 | 15,920,584 | 5,679,425 |
Derivative financial liabilities, notional amount | 20,343,451 | ||
Derivative financial assets | 7,451 | 21,809 | 6,599 |
Derivative financial liabilities | (19,745) | ||
Futures contract [member] | Foreign exchange [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets, notional amount | 965 | 5,679,425 | |
Derivative financial assets | 329 | 6,599 | |
Futures contract [member] | Interest [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets, notional amount | 15,919,619 | ||
Derivative financial assets | 21,480 | ||
Option contract [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets, notional amount | 602,159,341 | 498,484,022 | 78,746,383 |
Derivative financial liabilities, notional amount | 574,319,779 | 488,482,756 | 82,579,675 |
Derivative financial assets | 6,602,467 | 2,742,035 | 867,207 |
Derivative financial liabilities | R$ 6524516 | (2,741,592) | (726,497) |
Option contract [member] | Foreign exchange [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets, notional amount | 37,500 | 1,734,063 | |
Derivative financial liabilities, notional amount | 37,500 | 2,059,104 | |
Derivative financial assets | 82,369 | 115,570 | |
Derivative financial liabilities | (94,612) | (171,918) | |
Option contract [member] | Shares [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets, notional amount | 1,770,220 | 5,500,627 | |
Derivative financial liabilities, notional amount | 2,511,960 | 3,245,796 | |
Derivative financial assets | 210,448 | 365,631 | |
Derivative financial liabilities | (229,291) | (172,748) | |
Option contract [member] | Commodities [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets, notional amount | 213 | ||
Derivative financial liabilities, notional amount | 130 | ||
Derivative financial assets | 1,582 | ||
Derivative financial liabilities | (1,391) | ||
Option contract [member] | Interest [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial assets, notional amount | 496,676,302 | 71,511,480 | |
Derivative financial liabilities, notional amount | 485,933,296 | 77,274,645 | |
Derivative financial assets | 2,449,218 | 384,424 | |
Derivative financial liabilities | R$ 2417689 | R$ 380440 |
Hedge accounting - Summary of d
Hedge accounting - Summary of detailed information about hedging instruments (Detail) Unit_pure in Thousands, R$ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) | Dec. 31, 2017BRL (R$) | |
Disclosure of detailed information about hedging instruments [line items] | ||||
Hedge instrument, Nominal amount | 1,555,227 | 248,896 | ||
Hedge of net investment in foreign operations [member] | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Hedged item, Book value of assets | R$ 80370 | R$ 7133 | ||
Hedge instrument, Nominal amount | 395,977 | 248,896 | ||
Currency risk [member] | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Hedged item, Book value of assets | R$ 224539 | R$ 186412 | R$ 147179 | R$ 100323 |
Hedged item, Book value of liabilities | 0 | 0 | 0 | 0 |
Hedged item, Variation in value recognized in Other comprehensive income | R$ 70882 | R$ 5946 | R$ 18645 | R$ 2034 |
Hedge instrument, Nominal amount | 395,977 | 248,896 | 225,901 | 145,552 |
Hedge instrument, Variation in the amounts used to calculate hedge ineffectiveness | R$ 80370 | R$ 7133 | R$ 17495 | R$ 2386 |
Currency risk [member] | Hedge of net investment in foreign operations [member] | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Hedged item, Book value of assets | 224,539 | 186,412 | 147,179 | 100,323 |
Hedged item, Book value of liabilities | 0 | 0 | 0 | 0 |
Hedged item, Variation in value recognized in Other comprehensive income | R$ 70882 | R$ 5946 | R$ 18645 | R$ 2034 |
Hedge instrument, Nominal amount | 395,977 | 248,896 | 225,901 | 145,552 |
Hedge instrument, Variation in the amounts used to calculate hedge ineffectiveness | R$ 80370 | R$ 7133 | R$ 17495 | R$ 2386 |
Hedge accounting - Summary of_2
Hedge accounting - Summary of detailed information about hedging accounting on the financial position (Detail) mo in Thousands, Unit_pure in Thousands, R$ in Thousands | 9 Months Ended | |
Sep. 30, 2020BRL (R$)mo | Dec. 31, 2019 | |
Disclosure of detailed information about hedging instruments [line items] | ||
Hedge instrument, Nominal amount | 1,555,227 | 248,896 |
Interest rate risk [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedged item, Book value of liabilities | R$ 1142457 | |
Hedged item, Variation in value recognized in income | R$ 51787 | |
Hedge instrument, Nominal amount | mo | 1,159,250 | |
Hedge instrument, Variation in the amounts used to calculate hedge ineffectiveness | R$ 51361 | |
Interest rate risk [member] | Fixed Income Securities [Member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedged item, Book value of liabilities | 1,142,457 | |
Hedged item, Variation in value recognized in income | R$ 51787 | |
Hedge instrument, Nominal amount | 1,159,250 | |
Hedge instrument, Variation in the amounts used to calculate hedge ineffectiveness | R$ 51361 |
Hedge accounting - Summary of_3
Hedge accounting - Summary of detailed information about ineffectiveness in relation to the fair value hedging (Detail) mo in Thousands, Unit_pure in Thousands, R$ in Thousands | 9 Months Ended | |
Sep. 30, 2020BRL (R$)mo | Dec. 31, 2019 | |
Disclosure of detailed information about hedging instruments [line items] | ||
Hedge instrument, Nominal amount | 1,555,227 | 248,896 |
Interest rate risk [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedge instrument, Nominal amount | mo | 1,159,250 | |
Hedged item, Book value of liabilities | R$ 1142457 | |
Hedge instrument, Variation in the amounts used to calculate hedge ineffectiveness | (51,361) | |
Hedged item, Variation in value recognized in income | R$ 51787 | |
Interest rate risk [member] | Futures contract [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedge instrument, Nominal amount | 1,159,250 | |
Hedged item, Book value of liabilities | R$ 51361 | |
Hedge instrument, Variation in the amounts used to calculate hedge ineffectiveness | (51,361) | |
Hedged item, Variation in value recognized in income | R$ 427 |
Hedge accounting - Summary of_4
Hedge accounting - Summary of detailed information about fair value adjustment of hedging instruments (Detail) mo in Thousands, Unit_pure in Thousands, R$ in Thousands | Sep. 30, 2020BRL (R$)mo | Dec. 31, 2019BRL (R$) |
Disclosure of detailed information about hedging instruments [line items] | ||
Hedge instrument, Nominal amount | 1,555,227 | 248,896 |
Fair value adjustments, Total | R$ 28583 | R$ 5946 |
Hedged Item, Total | R$ 131731 | R$ 7133 |
Interest rate risk [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedge instrument, Nominal amount | mo | 1,159,250 | |
Hedged item, Book value of liabilities | R$ 1142457 | |
Futures contract [member] | Interest rate risk [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedge instrument, Nominal amount | 1,159,250 | |
Fair value adjustments, Hedge of Fair Value | R$ 51787 | |
Hedged item, Book value of liabilities | R$ 51361 | |
Hedge of net investment in foreign operations [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedge instrument, Nominal amount | 395,977 | 248,896 |
Fair value adjustments, Hedge of net investment in foreign operations | R$ 80370 | R$ 5946 |
Hedged item, Book value of assets | R$ 80370 | R$ 7133 |
Hedge accounting - Summary of_5
Hedge accounting - Summary of detailed information about breakdown by maturity of hedging strategies (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about hedging instruments [line items] | ||
Hedged Item, Total | R$ 131731 | R$ 7133 |
Interest rate risk [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedged item, Book value of liabilities | (1,142,457) | |
Futures contract [member] | Interest rate risk [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedged item, Book value of liabilities | (51,361) | |
Hedges of net investment in foreign operations [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedged item, Book value of assets | (80,370) | (7,133) |
0-1 Years [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedged Item, Total | (8,734) | (198) |
0-1 Years [member] | Futures contract [member] | Interest rate risk [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedged item, Book value of liabilities | (2) | |
0-1 Years [member] | Hedges of net investment in foreign operations [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedged item, Book value of assets | (8,732) | (198) |
1-2 Years [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedged Item, Total | (14) | |
1-2 Years [member] | Futures contract [member] | Interest rate risk [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedged item, Book value of liabilities | (14) | |
2-3 Years [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedged Item, Total | (563) | |
2-3 Years [member] | Futures contract [member] | Interest rate risk [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedged item, Book value of liabilities | (563) | |
3-4 Years [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedged Item, Total | (30,284) | (2,932) |
3-4 Years [member] | Hedges of net investment in foreign operations [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedged item, Book value of assets | (30,284) | (2,932) |
4-5 Years [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedged Item, Total | (72,052) | (4,003) |
4-5 Years [member] | Futures contract [member] | Interest rate risk [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedged item, Book value of liabilities | (30,698) | |
4-5 Years [member] | Hedges of net investment in foreign operations [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedged item, Book value of assets | (41,354) | R$ 4003 |
5-10 Years [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedged Item, Total | (20,084) | |
5-10 Years [member] | Futures contract [member] | Interest rate risk [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Hedged item, Book value of liabilities | R$ 20084 |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts receivable (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Trade and other receivables [abstract] | ||
Customers | R$ 458776 | R$ 203604 |
Dividends and interest receivable on equity capital—Funds | 7,052 | 18,852 |
Other | 702 | 181 |
(-) Expected losses on accounts receivable | (4,501) | (3,437) |
Total | R$ 462029 | R$ 219200 |
Recoverable Taxes - Summary of
Recoverable Taxes - Summary of Recoverable Taxes (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Subclassifications Of Assets Liabilities And Equities [Line Items] | |||
Recoverable taxes | R$ 170066 | R$ 243320 | R$ 183350 |
Recoverable taxes, Current | 243,320 | 183,350 | |
Recoverable taxes, Non-current | |||
Prepayments of Income Taxes (IRPJ and CSLL) [Member] | |||
Subclassifications Of Assets Liabilities And Equities [Line Items] | |||
Recoverable taxes | 225,465 | 182,021 | |
Contributions Over Revenue (PIS) and (COFINS) [Member] | |||
Subclassifications Of Assets Liabilities And Equities [Line Items] | |||
Recoverable taxes | 16,859 | 533 | |
Taxes on Services (ISS) [Member] | |||
Subclassifications Of Assets Liabilities And Equities [Line Items] | |||
Recoverable taxes | 846 | 698 | |
Value Added Taxes [Member] | |||
Subclassifications Of Assets Liabilities And Equities [Line Items] | |||
Recoverable taxes | R$ 150 | R$ 98 |
Prepaid Expenses - Summary of P
Prepaid Expenses - Summary of Prepaid Expenses (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of Prepaid Expenses [Line Items] | |||
Prepaid expenses | R$ 1090998 | R$ 89684 | R$ 96723 |
Current | 461,304 | 56,605 | 56,302 |
Non-current | 629,694 | 33,079 | 40,421 |
Incentives for business acceleration program [Member] | |||
Summary of Prepaid Expenses [Line Items] | |||
Prepaid expenses | 11,349 | 22,125 | |
Marketing expenses [Member] | |||
Summary of Prepaid Expenses [Line Items] | |||
Prepaid expenses | 8,110 | 9,678 | 41,276 |
Commissions and premiums paid in advance [Member] | |||
Summary of Prepaid Expenses [Line Items] | |||
Prepaid expenses | 1,035,869 | 49,233 | 21,431 |
Services paid in advance [Member] | |||
Summary of Prepaid Expenses [Line Items] | |||
Prepaid expenses | 1,124 | 2,043 | 5,180 |
Other expenses paid in advance [Member] | |||
Summary of Prepaid Expenses [Line Items] | |||
Prepaid expenses | R$ 45895 | 28,730 | |
Other expenses paid in advance [Member] | |||
Summary of Prepaid Expenses [Line Items] | |||
Prepaid expenses | R$ 17381 | R$ 6711 |
Investments in associates and_3
Investments in associates and joint ventures- Summary of interest in other entities (Detail) - BRL (R$) R$ in Thousands | Sep. 08, 2020 | Jun. 23, 2020 | Sep. 30, 2020 |
Disclosure Detail Of Interest In Other Entities Line Items [Line Items] | |||
Total equity-accounted investments | R$ 149959 | ||
Total equity-accounted investments Carrying amount | R$ 74981 | ||
VPL Gesto Patrimonial e Participaes SA [Member] | |||
Disclosure Detail Of Interest In Other Entities Line Items [Line Items] | |||
Associate % of ownership interest | 49.90% | 49.00% | |
Associate Nature of relationship | Equity method | ||
Equity Investments in associates | R$ 150000 | ||
Carrying amount- Associate | R$ 74851 | ||
O Primo Rico Mdia Educacional e Participaes Ltda [Member] | |||
Disclosure Detail Of Interest In Other Entities Line Items [Line Items] | |||
Associate % of ownership interest | 20.00% | ||
Associate Nature of relationship | Equity method | ||
Equity Investments in associates | R$ 520 | ||
Carrying amount- Associate | R$ 105 | ||
Du Agro Holdings SA [Member] | |||
Disclosure Detail Of Interest In Other Entities Line Items [Line Items] | |||
Joint Venture % of ownership interest | 49.00% | 49.00% | |
Joint Venture Nature of relationship | Equity method | ||
Equity Investments in joint ventures | R$ 479 | ||
Carrying amount- Joint Venture | R$ 235 |
Investments in associates and_4
Investments in associates and joint ventures- Summary of interest in other entities (Parenthetical) (Detail) | Sep. 08, 2020 | Jun. 23, 2020 | Sep. 30, 2020 |
VPL Gesto Patrimonial e Participaes SA [Member] | |||
Disclosure Detail Of Interest In Other Entities Line Items [Line Items] | |||
Proportion of ownership interest in associate | 49.90% | 49.00% | |
Du Agro Holdings SA [Member] | |||
Disclosure Detail Of Interest In Other Entities Line Items [Line Items] | |||
Proportion of onweship interest in joint venture | 49.00% | 49.00% |
Investments in associates and_5
Investments in associates and joint ventures- Summary of movement in equity method investments in associates joint ventures and subsidiaries (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disclosure detail of movement in equity method investments in associates joint ventures and subsidiaries [Line Items] | ||||
Acquisition/ Equity | R$ 75665 | |||
Equity in earnings | R$ 564 | R$ 0 | (564) | R$ 0 |
Other comprehensive income | (120) | |||
Goodwill | 621,656 | |||
Investments in subsidiaries, joint ventures and associates | 696,637 | 696,637 | ||
VPL Gesto Patrimonial e Participaes SA [Member] | ||||
Disclosure detail of movement in equity method investments in associates joint ventures and subsidiaries [Line Items] | ||||
Acquisition/ Equity | 74,851 | |||
Goodwill | 621,248 | |||
Investments in subsidiaries, joint ventures and associates | 696,099 | 696,099 | ||
O Primo Rico Mdia Educacional e Participaes Ltda [Member] | ||||
Disclosure detail of movement in equity method investments in associates joint ventures and subsidiaries [Line Items] | ||||
Acquisition/ Equity | 242 | |||
Equity in earnings | (227) | |||
Other comprehensive income | (120) | |||
Investments in subsidiaries, joint ventures and associates | (105) | (105) | ||
Du Agro Holdings SA [Member] | ||||
Disclosure detail of movement in equity method investments in associates joint ventures and subsidiaries [Line Items] | ||||
Acquisition/ Equity | 572 | |||
Equity in earnings | (337) | |||
Goodwill | 408 | |||
Investments in subsidiaries, joint ventures and associates | R$ 643 | R$ 643 |
Property, Equipment, Goodwill_3
Property, Equipment, Goodwill, Intangible Assets And Lease - Summary of Property and Equipment (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | R$ 142464 | R$ 99127 | R$ 99127 | R$ 47073 | R$ 28665 | ||
Additions | 40,011 | 43,749 | 72,499 | 83,149 | 30,369 | ||
Business combination | 1,728 | ||||||
Write-offs | (61,967) | (7,550) | (8,463) | (6,625) | (4,351) | ||
Transfers | (6,143) | ||||||
Depreciation / Amortization in the period | R$ 6616 | R$ 5298 | (19,609) | (15,174) | (20,699) | (24,470) | (9,338) |
Ending balance | 94,756 | 120,152 | 94,756 | 120,152 | 142,464 | 99,127 | 47,073 |
Property and equipment | 94,756 | 120,152 | 142,464 | 120,152 | 142,464 | 47,073 | 47,073 |
Cost [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 192,763 | 131,867 | 131,867 | 72,208 | |||
Ending balance | 196,081 | 165,314 | 196,081 | 165,314 | 192,763 | 131,867 | 72,208 |
Property and equipment | 196,081 | 165,314 | 196,081 | 165,314 | 192,763 | 131,867 | 72,208 |
Accumulated depreciation / Amortization [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | (50,299) | (32,740) | (32,740) | (25,135) | |||
Ending balance | (101,325) | (45,162) | (101,325) | (45,162) | (50,299) | (32,740) | (25,135) |
Property and equipment | R$ 101325 | R$ 45162 | (101,325) | (45,162) | (50,299) | (32,740) | (25,135) |
Data Processing Systems [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 34,447 | 28,771 | 28,771 | 13,743 | 9,679 | ||
Additions | 15,039 | 22,319 | 6,308 | ||||
Business combination | 804 | ||||||
Write-offs | (304) | (40) | (149) | ||||
Transfers | 31 | 709 | |||||
Depreciation / Amortization in the period | (9,059) | (7,282) | (3,608) | ||||
Ending balance | 34,447 | 28,771 | 13,743 | ||||
Property and equipment | 34,447 | 28,771 | 34,447 | 28,771 | 13,743 | ||
Data Processing Systems [member] | Cost [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 62,235 | 48,023 | 48,023 | 27,400 | |||
Ending balance | 62,235 | 48,023 | 27,400 | ||||
Property and equipment | 62,235 | 48,023 | 62,235 | 48,023 | 27,400 | ||
Data Processing Systems [member] | Accumulated depreciation / Amortization [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | (27,788) | (19,252) | (19,252) | (13,657) | |||
Ending balance | (27,788) | (19,252) | (13,657) | ||||
Property and equipment | (27,788) | (19,252) | (27,788) | (19,252) | (13,657) | ||
Fixtures and fittings [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 27,756 | 21,641 | 21,641 | 13,261 | 8,677 | ||
Additions | 9,942 | 10,448 | 6,309 | ||||
Business combination | 412 | ||||||
Write-offs | (2,047) | (924) | (1,690) | ||||
Transfers | 2,409 | 2,109 | 2,181 | ||||
Depreciation / Amortization in the period | (4,189) | (3,253) | (2,628) | ||||
Ending balance | 27,756 | 21,641 | 13,261 | ||||
Property and equipment | 27,756 | 21,641 | 27,756 | 21,641 | 13,261 | ||
Fixtures and fittings [member] | Cost [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 38,086 | 29,613 | 29,613 | 19,124 | |||
Ending balance | 38,086 | 29,613 | 19,124 | ||||
Property and equipment | 38,086 | 29,613 | 38,086 | 29,613 | 19,124 | ||
Fixtures and fittings [member] | Accumulated depreciation / Amortization [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | (10,330) | (7,972) | (7,972) | (5,863) | |||
Ending balance | (10,330) | (7,972) | (5,863) | ||||
Property and equipment | (10,330) | (7,972) | (10,330) | (7,972) | (5,863) | ||
Security Systems [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 1,544 | 2,553 | 2,553 | 4,907 | 459 | ||
Additions | 664 | 376 | 5,650 | ||||
Business combination | 34 | ||||||
Write-offs | (30) | (9) | |||||
Transfers | 192 | ||||||
Depreciation / Amortization in the period | (1,673) | (2,892) | (1,227) | ||||
Ending balance | 1,544 | 2,553 | 4,907 | ||||
Property and equipment | 1,544 | 2,553 | 1,544 | 2,553 | 4,907 | ||
Security Systems [member] | Cost [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 7,716 | 6,388 | 6,388 | 6,403 | |||
Ending balance | 7,716 | 6,388 | 6,403 | ||||
Property and equipment | 7,716 | 6,388 | 7,716 | 6,388 | 6,403 | ||
Security Systems [member] | Accumulated depreciation / Amortization [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | (6,172) | (3,835) | (3,835) | (1,496) | |||
Ending balance | (6,172) | (3,835) | (1,496) | ||||
Property and equipment | (6,172) | (3,835) | (6,172) | (3,835) | (1,496) | ||
Facilities [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 78,717 | 46,162 | 46,162 | 15,162 | 8,789 | ||
Additions | 22,315 | 9,930 | 9,915 | ||||
Business combination | 478 | ||||||
Write-offs | (6,112) | (5,078) | (2,503) | ||||
Transfers | 22,130 | 37,191 | 358 | ||||
Depreciation / Amortization in the period | (5,778) | (11,043) | (1,875) | ||||
Ending balance | 78,717 | 46,162 | 15,162 | ||||
Property and equipment | 78,717 | 46,162 | 78,717 | 46,162 | 15,162 | ||
Facilities [member] | Cost [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 84,726 | 47,843 | 47,843 | 19,281 | |||
Ending balance | 84,726 | 47,843 | 19,281 | ||||
Property and equipment | 84,726 | 47,843 | 84,726 | 47,843 | 19,281 | ||
Facilities [member] | Accumulated depreciation / Amortization [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | (6,009) | (1,681) | (1,681) | (4,119) | |||
Ending balance | (6,009) | (1,681) | (4,119) | ||||
Property and equipment | R$ 6009 | R$ 1681 | (6,009) | (1,681) | (4,119) | ||
Construction in progress [member] | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Beginning balance | 1,061 | ||||||
Additions | 24,539 | 40,076 | 2,187 | ||||
Write-offs | (553) | ||||||
Transfers | R$ 24539 | R$ 39523 | (3,248) | ||||
Property and equipment | R$ 1061 |
Property, Equipment, Goodwill_4
Property, Equipment, Goodwill, Intangible Assets And Lease - Summary of Intangible Assets (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||||
Beginning balance | R$ 553452 | R$ 504915 | R$ 504915 | R$ 483207 | R$ 123270 | ||
Additions | 79,127 | 39,974 | 88,949 | 53,517 | 20,627 | ||
Business combination (Note 5 ii)) | 83,925 | 9,799 | 357,515 | ||||
Write-offs | (185) | (56) | (2,782) | (13,290) | (140) | ||
Transfers | 6,143 | ||||||
Amortization in the year | R$ 19451 | R$ 9361 | (52,928) | (23,992) | (37,630) | (28,318) | (18,065) |
Ending balance | 669,534 | 520,841 | 669,534 | 520,841 | 553,452 | 504,915 | 483,207 |
Intangible assets and goodwill | 669,534 | 520,841 | 553,452 | 520,841 | 553,452 | 483,207 | 483,207 |
Cost [member] | |||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||||
Beginning balance | 654,809 | 564,246 | 564,246 | 520,245 | |||
Ending balance | 767,878 | 604,298 | 767,878 | 604,298 | 654,809 | 564,246 | 520,245 |
Intangible assets and goodwill | 767,878 | 604,298 | 767,878 | 604,298 | 654,809 | 564,246 | 520,245 |
Accumulated depreciation / Amortization [member] | |||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||||
Beginning balance | (101,357) | (59,331) | (59,331) | (37,038) | |||
Ending balance | (98,344) | (83,457) | (98,344) | (83,457) | (101,357) | (59,331) | (37,038) |
Intangible assets and goodwill | R$ 98344 | R$ 83457 | (98,344) | (83,457) | (101,357) | (59,331) | (37,038) |
Software [member] | |||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||||
Beginning balance | 66,310 | 38,771 | 38,771 | 25,700 | 16,871 | ||
Additions | 51,348 | 27,828 | 12,243 | ||||
Business combination (Note 5 ii)) | 4,404 | ||||||
Write-offs | (2,283) | (15) | (140) | ||||
Transfers | (799) | ||||||
Amortization in the year | (21,526) | (14,742) | (6,879) | ||||
Ending balance | 66,310 | 38,771 | 25,700 | ||||
Intangible assets and goodwill | 66,310 | 38,771 | 66,310 | 38,771 | 25,700 | ||
Software [member] | Cost [member] | |||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||||
Beginning balance | 104,270 | 56,127 | 56,127 | 35,489 | |||
Ending balance | 104,270 | 56,127 | 35,489 | ||||
Intangible assets and goodwill | 104,270 | 56,127 | 104,270 | 56,127 | 35,489 | ||
Software [member] | Accumulated depreciation / Amortization [member] | |||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||||
Beginning balance | (37,960) | (17,356) | (17,356) | (9,789) | |||
Ending balance | (37,960) | (17,356) | (9,789) | ||||
Intangible assets and goodwill | (37,960) | (17,356) | (37,960) | (17,356) | (9,789) | ||
Goodwill [member] | |||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||||
Beginning balance | 382,500 | 382,500 | 382,500 | 372,701 | 90,999 | ||
Business combination (Note 5 ii)) | 9,799 | 281,702 | |||||
Ending balance | 382,500 | 382,500 | 372,701 | ||||
Intangible assets and goodwill | 382,500 | 382,500 | 382,500 | 382,500 | 372,701 | ||
Goodwill [member] | Cost [member] | |||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||||
Beginning balance | 382,500 | 382,500 | 382,500 | 372,701 | |||
Ending balance | 382,500 | 382,500 | 372,701 | ||||
Intangible assets and goodwill | 382,500 | 382,500 | 382,500 | 382,500 | 372,701 | ||
Customer list [member] | |||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||||
Beginning balance | 60,599 | 41,544 | 41,544 | 49,970 | 9,179 | ||
Additions | 27,000 | 0 | |||||
Business combination (Note 5 ii)) | 50,077 | ||||||
Amortization in the year | (7,945) | (8,426) | (9,286) | ||||
Ending balance | 60,599 | 41,544 | 49,970 | ||||
Intangible assets and goodwill | 60,599 | 41,544 | 60,599 | 41,544 | 49,970 | ||
Customer list [member] | Cost [member] | |||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||||
Beginning balance | 105,977 | 72,072 | 72,072 | 72,072 | |||
Ending balance | 105,977 | 72,072 | 72,072 | ||||
Intangible assets and goodwill | 105,977 | 72,072 | 105,977 | 72,072 | 72,072 | ||
Customer list [member] | Accumulated depreciation / Amortization [member] | |||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||||
Beginning balance | (45,378) | (30,528) | (30,528) | (22,102) | |||
Ending balance | (45,378) | (30,528) | (22,102) | ||||
Intangible assets and goodwill | (45,378) | (30,528) | (45,378) | (30,528) | (22,102) | ||
Trademarks [member] | |||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||||
Beginning balance | 16,488 | 19,223 | 19,223 | 20,238 | 1,799 | ||
Additions | 1,009 | 33 | |||||
Business combination (Note 5 ii)) | 19,304 | ||||||
Write-offs | (33) | ||||||
Amortization in the year | (2,702) | (2,024) | (898) | ||||
Ending balance | 16,488 | 19,223 | 20,238 | ||||
Intangible assets and goodwill | 16,488 | 19,223 | 16,488 | 19,223 | 20,238 | ||
Trademarks [member] | Cost [member] | |||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||||
Beginning balance | 22,239 | 22,239 | 22,239 | 21,230 | |||
Ending balance | 22,239 | 22,239 | 21,230 | ||||
Intangible assets and goodwill | 22,239 | 22,239 | 22,239 | 22,239 | 21,230 | ||
Trademarks [member] | Accumulated depreciation / Amortization [member] | |||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||||
Beginning balance | (5,751) | (3,016) | (3,016) | (992) | |||
Ending balance | (5,751) | (3,016) | (992) | ||||
Intangible assets and goodwill | (5,751) | (3,016) | (5,751) | (3,016) | (992) | ||
Other intangible assets [member] | |||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||||
Beginning balance | 27,555 | 22,877 | 22,877 | 14,598 | 4,422 | ||
Additions | 10,601 | 24,680 | 8,351 | ||||
Business combination (Note 5 ii)) | 2,028 | ||||||
Write-offs | (466) | (13,275) | |||||
Transfers | 799 | ||||||
Amortization in the year | (5,457) | (3,126) | (1,002) | ||||
Ending balance | 27,555 | 22,877 | 14,598 | ||||
Intangible assets and goodwill | 27,555 | 22,877 | 27,555 | 22,877 | 14,598 | ||
Other intangible assets [member] | Cost [member] | |||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||||
Beginning balance | 39,823 | 31,308 | 31,308 | 18,753 | |||
Ending balance | 39,823 | 31,308 | 18,753 | ||||
Intangible assets and goodwill | 39,823 | 31,308 | 39,823 | 31,308 | 18,753 | ||
Other intangible assets [member] | Accumulated depreciation / Amortization [member] | |||||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||||||
Beginning balance | (12,268) | (8,431) | (8,431) | (4,155) | |||
Ending balance | (12,268) | (8,431) | (4,155) | ||||
Intangible assets and goodwill | R$ 12268 | R$ 8431 | R$ 12268 | R$ 8431 | R$ 4155 |
Property, Equipment, Goodwill_5
Property, Equipment, Goodwill, Intangible Assets And Lease - Summary of Right-of-use Assets and Lease Liabilities (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of quantitative information about right-of-use assets [abstract] | ||||||
Right-of-use-assets, Beginning balance | R$ 227478 | R$ 133870 | R$ 133870 | |||
Additions to right-of-use assets | 45,377 | 104,487 | 123,529 | |||
Depreciation, right-of-use assets | R$ 10313 | R$ 8796 | (33,363) | (23,235) | (32,831) | |
Right of Use Assets, Write-offs | (78,321) | |||||
Right of Use Assets, Revaluation | (9,115) | |||||
Right of Use Assets Impairment,net | 264 | |||||
Right of Use Assets Effects of Exchange Rate | 29,694 | 6,259 | 2,910 | |||
Right-of-use-assets, Ending balance | 182,014 | 221,381 | 182,014 | 221,381 | 227,478 | R$ 133870 |
Right of Use Assets Current | 0 | 0 | 0 | 0 | 0 | |
Right of Use Assets Noncurrent | 182,014 | 221,381 | 182,014 | 221,381 | 227,478 | |
Lease liabilities, Beginning balance | 255,406 | 148,494 | 148,494 | |||
Additions To Lease Liabilities | 45,129 | 105,694 | 124,283 | |||
Write-offs lease liabilities | (78,322) | |||||
Interest expense on lease liabilities | 15,648 | 12,447 | 17,613 | |||
Revaluation lease | (10,050) | |||||
Effects Of Exchange Rate on Lease Liabilities | 32,675 | 6,460 | 2,995 | |||
Payment of lease liabilities | (45,903) | (26,194) | (37,979) | (14,624) | ||
Lease liabilities, Ending balance | 214,583 | 246,901 | 214,583 | 246,901 | 255,406 | R$ 148494 |
Current lease liabilities | 31,566 | 28,970 | 31,566 | 28,970 | 52,771 | |
Non-current lease liabilities | R$ 183017 | R$ 217931 | R$ 183017 | R$ 217931 | R$ 202635 |
Property, Equipment, Goodwill_6
Property, Equipment, Goodwill, Intangible Assets And Lease - Additional Information (Detail) - BRL (R$) R$ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [abstract] | ||
Average pre-tax discount rate applied to cash flow projections | 1322.00% | |
Rent expense from short-term leases and low-value assets | R$ 1523 | R$ 1746 |
Rent expense on lease liabilities | R$ 7853 | R$ 9225 |
Property, Equipment, Goodwill_7
Property, Equipment, Goodwill, Intangible Assets And Lease - Summary of Depreciation and Amortization Expense (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |||||||
Property and equipment Depreciation in the period | R$ 6616 | R$ 5298 | R$ 19609 | R$ 15174 | R$ 20699 | R$ 24470 | R$ 9338 |
Leases Depreciation in the period | 10,313 | 8,796 | 33,363 | 23,235 | 32,831 | ||
Intangible assets Amortization in the period | 19,451 | 9,361 | 52,928 | 23,992 | R$ 37630 | R$ 28318 | R$ 18065 |
Total | R$ 36380 | R$ 23455 | R$ 105900 | R$ 62401 |
Securities Sold Under Repurch_3
Securities Sold Under Repurchase Agreements - Additional Information (Detail) | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Detailed Information on Securities Sold under Repurchase Agreements [Abstract] | |||
Securities sold under repurchase agreements, interest rate | 1.89% | 4.48% | 6.40% |
Deposits - Summary of deposit f
Deposits - Summary of deposit from customers (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Categories of financial liabilities [abstract] | ||
Demands deposits | R$ 40310 | R$ 70190 |
Time deposits | 1,586,399 | 4 |
Total | 1,626,709 | 70,194 |
Current | 997,285 | R$ 70191 |
Non-Current | R$ 629424 |
Deposits - Summary of deposit_2
Deposits - Summary of deposit from customers of maturity (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Disclosure Of Maturity Details Of Deposits From Customers [Line Items] | ||
Demands deposits | R$ 40310 | R$ 70190 |
Time deposits | 1,586,399 | 4 |
Total | 1,626,709 | 70,194 |
Within 30 days [member] | ||
Disclosure Of Maturity Details Of Deposits From Customers [Line Items] | ||
Demands deposits | 40,310 | 70,190 |
Time deposits | 0 | 4 |
Total | 40,310 | R$ 70194 |
From 31 to 60 days[member] | ||
Disclosure Of Maturity Details Of Deposits From Customers [Line Items] | ||
Total | ||
From 61 to 90 days [member] | ||
Disclosure Of Maturity Details Of Deposits From Customers [Line Items] | ||
Time deposits | 141,895 | |
Total | 141,895 | |
From 91 to 180 days [member] | ||
Disclosure Of Maturity Details Of Deposits From Customers [Line Items] | ||
Time deposits | 34,544 | |
Total | 34,544 | |
From 181 to 360 days [member] | ||
Disclosure Of Maturity Details Of Deposits From Customers [Line Items] | ||
Time deposits | 780,536 | |
Total | 780,536 | |
After 360 days [member] | ||
Disclosure Of Maturity Details Of Deposits From Customers [Line Items] | ||
Time deposits | 629,424 | |
Total | R$ 629424 |
Structured Operations Certifi_3
Structured Operations Certificates- Structured Operations Certificates (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Disclosure Detail Of Maturity Analysis Of Structured Operations Certificate [Line Items] | ||
Structured operations certificates | R$ 1142457 | R$ 19474 |
Current | 1,918 | |
Non-Current | 1,140,539 | 19,474 |
Later than three months and not later than six months [member] | ||
Disclosure Detail Of Maturity Analysis Of Structured Operations Certificate [Line Items] | ||
Structured operations certificates | 1,918 | |
Later than one year [member] | ||
Disclosure Detail Of Maturity Analysis Of Structured Operations Certificate [Line Items] | ||
Structured operations certificates | R$ 1140539 | R$ 19474 |
Borrowings And Lease Liabilit_3
Borrowings And Lease Liabilities - Summary of Detailed Information About Borrowings (Detail) - BRL (R$) R$ in Thousands | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Jan. 01, 2019 | ||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | R$ 297398 | R$ 382078 | R$ 469609 | |||
Lease liabilities | 214,583 | 255,406 | 148,494 | R$ 246901 | R$ 148494 | |
Total borrowings and lease liabilities | 511,981 | 637,484 | 469,609 | |||
Borrowings and Lease Liabilities Current | 61,226 | 116,450 | 114,489 | |||
Borrowings and Lease Liabilities Noncurrent | 450,755 | 521,034 | 355,120 | |||
Related parties [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | R$ 21292 | R$ 52668 | R$ 94921 | |||
Related parties [member] | Bank Borrowings Domestic [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Interest rate | [1] | 113.00% | 113.00% | 113.00% | ||
Maturity | March 2021 | March 2021 | March 2021 | |||
Borrowings | [2] | R$ 21292 | R$ 52668 | R$ 94921 | ||
Third Parties [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings | R$ 276106 | R$ 329410 | R$ 374688 | |||
Third Parties [Member] | Bank Borrowings Domestic [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Interest rate | [1] | 111.00% | 111.00% | |||
Maturity | July 2019 | July 2019 | ||||
Borrowings | [3] | R$ 44352 | ||||
Third Parties [Member] | Financial Institution Borrowings [Member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Interest rate | [1] | 0.774% | 774.00% | 774.00% | ||
Maturity | April 2023 | April 2023 | April 2023 | |||
Borrowings | [4] | R$ 276106 | R$ 329410 | R$ 330336 | ||
[1] | Brazilian Interbank Offering Rate (CDI) | |||||
[2] | Loan agreement with Itaú Unibanco with maturity on March 8, 2021, payable in 36 monthly installments. | |||||
[3] | Loan agreement with Banco JP Morgan S.A., hired in connection with the acquisition of Rico, payable in seven quarterly installments. In July 2019, the loan was fully settled. | |||||
[4] | Loan agreement entered into on March 28, 2018 with the International Finance Corporation (IFC). The principal amount is due on the maturity date and accrued interests payable at every six months. |
Borrowings And Lease Liabilit_4
Borrowings And Lease Liabilities - Additional Information (Detail) - Ita Unibanco [Member] | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [line items] | ||
Maturity | March 8, 2021 | March 8, 2021 |
Borrowings Term | 36 months | 36 months |
Debentures - Additional Informa
Debentures - Additional Information (Detail) - BRL (R$) R$ in Thousands | 9 Months Ended | ||||
Sep. 30, 2020 | Dec. 31, 2019 | May 15, 2019 | Dec. 31, 2018 | Sep. 28, 2018 | |
Disclosure of detailed information about borrowings [line items] | |||||
Debentures issued | R$ 400000 | R$ 800000 | R$ 800000 | R$ 400000 | R$ 800000 |
Non Convertible Debentures [Member] | Debenture One [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Early repayment of debentures | R$ 432793 | ||||
Non Convertible Debentures [Member] | Debenture Two [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Cumulative number of debentures repurchased | 65,611 |
Debentures - Summary of Detaile
Debentures - Summary of Detailed Information About Debentures Issued (Detail) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020BRL (R$)units | Dec. 31, 2019BRL (R$)units | Dec. 31, 2018BRL (R$) | |
Disclosure of detailed information about borrowings [line items] | |||
Quantity | units | 800,000 | 800,000 | |
Book value | R$ 338693000 | R$ 835230000 | R$ 406538000 |
Debenture One [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Quantity | units | 400,000 | 400,000 | |
Annual rate | 108.00% | 1080.00% | |
Issuance date | 9/28/2018 | 9/28/2018 | |
Maturity date | 9/28/2020 | 9/28/2020 | |
Unit value at issuance | R$ 1000000 | R$ 1000000 | |
Unit value at period-end | 1,108,560 | 1,082,010 | |
Book value | R$ 0 | R$ 433262000 | |
Debenture Two [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Quantity | units | 400,000 | 400,000 | |
Annual rate | 107.50% | 1075.00% | |
Issuance date | 5/15/2019 | 5/15/2019 | |
Maturity date | 5/15/2022 | 5/15/2022 | |
Unit value at issuance | R$ 1000000 | R$ 1000000 | |
Unit value at period-end | 1,009,050 | 1,005,880 | |
Book value | R$ 338693000 | R$ 401968000 |
Debentures - Summary of Detai_2
Debentures - Summary of Detailed Information on Debentures Outstanding (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | May 15, 2019 | Dec. 31, 2018 | Sep. 28, 2018 |
Disclosure of detailed information about borrowings [line items] | |||||
Principal | R$ 400000 | R$ 800000 | R$ 800000 | R$ 400000 | R$ 800000 |
Interest | 23,746 | 47,127 | 6,538 | ||
Payments | (20,336) | (11,897) | |||
Repurchase | (64,717) | ||||
Total | 338,693 | 835,230 | 406,538 | ||
Current | 435,230 | ||||
Non-current | R$ 338693 | R$ 400000 | R$ 406538 |
Other Financial Liabilities - S
Other Financial Liabilities - Summary of Other Financial Liabilities (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Subclassifications of assets, liabilities and equities [abstract] | |||
Customer deposits | R$ 997285 | R$ 70191 | |
Structured operations certificates | 19,474 | ||
Foreign exchange portfolio | 249,394 | 8,962 | R$ 7011 |
Contingent consideration | 462,000 | ||
Financial bills | 16,311 | ||
Credit cards operations | 8,294 | ||
Other financial liabilities | 122,879 | 4 | |
Total | 858,878 | 98,631 | 7,011 |
Total | 858,878 | 8,962 | |
Current | 79,157 | R$ 7011 | |
Current | 380,567 | 8,962 | |
Non-current | R$ 478311 | R$ 19474 |
Other Financial Liabilities -_2
Other Financial Liabilities - Summary of Other Financial Liabilities (Parenthetical) (Detail) R$ in Thousands | Sep. 30, 2020BRL (R$) |
Disclosure of financial liabilities [line items] | |
Other financial liabilities payable through acquistion and investment in associates and joint ventures | R$ 58526 |
VPL Gesto Patrimonial e Participaes SA [Member] | Top of range [member] | Contractual Contingent Consideration [Member] | |
Disclosure of financial liabilities [line items] | |
Contractual contingent consideration | 653,222 |
VPL Gesto Patrimonial e Participaes SA [Member] | Bottom of range [member] | Contractual Contingent Consideration [Member] | |
Disclosure of financial liabilities [line items] | |
Contractual contingent consideration | R$ 0 |
Private Pension Liabilities - S
Private Pension Liabilities - Summary Of Net Defined Benefit Liability (Asset) (Detail) - BRL (R$) R$ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of defined benefit plans [abstract] | ||||
Beginning balance | R$ 3759090 | R$ 16059 | R$ 16059 | |
Contributions received | 984,816 | 211,396 | 609,639 | R$ 16059 |
Transfer with third party plans | 5,087,561 | 1,466,444 | 3,047,492 | |
Redemptions paid | (162,218) | (7,911) | (20,153) | |
Gain (loss) from FIE | (19,927) | 35,718 | ||
Withdraws | (162,218) | (7,911) | (20,153) | |
Interest received from FIE | 106,053 | |||
Contributions invested in FIEs | 3,759,090 | 16,059 | ||
Ending Balance | R$ 9649322 | R$ 1721706 | R$ 3759090 | R$ 16059 |
Income Tax - Summary Of Tempora
Income Tax - Summary Of Temporary Difference, Unused Tax Losses And Unused Tax Credits (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||
Deferred tax liability (asset) | R$ 337652 | R$ 153847 | R$ 337652 | R$ 153847 | R$ 279401 | R$ 140400 | R$ 219668 | R$ 171074 |
Deferred tax expense (income) | (63,315) | (60,647) | 58,251 | 13,447 | 139,001 | (79,268) | 48,594 | |
Deferred tax assets | 378,726 | 378,726 | 284,533 | 152,425 | ||||
Deferred tax liabilities | (41,074) | (41,074) | (5,132) | (12,025) | ||||
Tax Losses Carry forwards [member] | ||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||
Deferred tax liability (asset) | 38,616 | 38,616 | 17,146 | 55,358 | ||||
Deferred tax expense (income) | 24,769 | (7,064) | 21,470 | (41,725) | (38,212) | 37,774 | 17,584 | |
Goodwill on Business Combinations [member] | ||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||
Deferred tax liability (asset) | 28,430 | 28,430 | 22,303 | 59,993 | ||||
Deferred tax expense (income) | (5,861) | (8,153) | 6,127 | (25,845) | (37,690) | (56,789) | (51,327) | |
Provisions for IFAs Commissions [member] | ||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||
Deferred tax liability (asset) | 72,222 | 72,222 | 68,041 | 31,031 | ||||
Deferred tax expense (income) | 1,718 | 7,698 | 4,181 | 21,103 | 37,010 | 4,744 | 26,156 | |
Revaluations of Financial Assets at Fair Value [member] | ||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||
Deferred tax liability (asset) | (9,993) | (9,993) | 25,259 | 1,397 | ||||
Deferred tax expense (income) | 3,513 | (1,178) | (35,252) | (9,374) | 23,862 | (2,427) | 4,030 | |
Expected losses | ||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||
Deferred tax liability (asset) | 20,578 | 20,578 | 5,666 | 3,079 | ||||
Deferred tax expense (income) | 4,248 | 1,411 | 14,912 | 1,563 | 2,587 | (2,345) | 4,329 | |
Financial Instruments Taxed on Redemption [Member] | ||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||
Deferred tax liability (asset) | (18) | (18) | (13,041) | |||||
Deferred tax expense (income) | (18) | (18,980) | (18) | (11,637) | 13,041 | (6,230) | (6,811) | |
Profit Sharing Plan [member] | ||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||
Deferred tax liability (asset) | 79,727 | 79,727 | 141,136 | |||||
Deferred tax expense (income) | (97,272) | (38,295) | (61,409) | 76,105 | 141,136 | |||
Net Gain on Hedge Instruments [member] | ||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||
Deferred tax liability (asset) | 32,927 | 32,927 | (36,384) | (1,441) | ||||
Deferred tax expense (income) | 5,805 | 3,675 | 69,311 | (1,885) | (34,943) | (51,423) | 49,382 | |
ShareBase Compensation [member] | ||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||
Deferred tax liability (asset) | 47,824 | 47,824 | 2,950 | |||||
Deferred tax expense (income) | 17,533 | 44,874 | 2,950 | |||||
Other provisions [member] | ||||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||||
Deferred tax liability (asset) | 27,339 | 27,339 | 33,284 | 4,024 | ||||
Deferred tax expense (income) | R$ 17750 | R$ 239 | R$ 5945 | R$ 5142 | R$ 29260 | R$ 2572 | R$ 5251 |
Income Tax - Summary Of Reconci
Income Tax - Summary Of Reconciliation Of Changes In Deferred Tax Liability Asset (Detail) - BRL (R$) R$ in Thousands | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract] | |||||
Beginning balance | R$ 279401 | R$ 140400 | R$ 140400 | R$ 219668 | R$ 171074 |
Foreign exchange variations | 22,721 | 21,883 | (3,461) | (9,259) | (1,155) |
Business combination | 3,751 | ||||
Charges to statement of income | (28,561) | (8,564) | 139,411 | (76,455) | 45,325 |
Tax relating to components of other comprehensive income | 64,091 | 128 | 3,050 | 6,446 | 673 |
Ending Balance | R$ 337652 | R$ 153847 | R$ 279401 | R$ 140400 | R$ 219668 |
Income Tax - Summary Of Income
Income Tax - Summary Of Income Tax Calculation (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||||||
Income before taxes | R$ 632451 | R$ 382134 | R$ 1758528 | R$ 996944 | R$ 1544109 | R$ 640728 | R$ 575507 |
Combined tax rate in Brazil | 34.00% | 34.00% | 34.00% | 34.00% | 34.00% | 34.00% | 34.00% |
Tax expense at the combined rate | R$ 215034 | R$ 129926 | R$ 597900 | R$ 338961 | R$ 524997 | R$ 217848 | R$ 195672 |
Income (loss) from entities not subject to taxation | (2,630) | (3,659) | (11,358) | (8,228) | 25,948 | 16,444 | 9,078 |
Effects from entities taxed at different rates | 17,630 | 7,170 | 36,792 | 16,208 | (24,089) | (18,183) | (25,971) |
Effects from entities taxed at different taxation regimes | (111,061) | (9,138) | (285,529) | (24,816) | (50,138) | (38,255) | (30,264) |
Intercompany transactions with different taxation | (19,645) | (5,711) | (46,775) | (27,989) | (9,551) | (3,647) | (5,101) |
Tax incentives | (4,521) | (2,220) | (2,491) | (2,220) | (9,772) | (1,408) | (265) |
Non deductible expenses (non-taxable income), net | (3,434) | 4,310 | (12,693) | 8,687 | 10,888 | (689) | 175 |
Others | (206) | 658 | 3,581 | (2,957) | (13,658) | 3,288 | 8,642 |
Total | R$ 91167 | R$ 121336 | R$ 279427 | R$ 297646 | R$ 454625 | R$ 175398 | R$ 151966 |
Effective tax rate | 14.41% | 31.75% | 15.89% | 29.86% | 29.44% | 27.20% | 26.38% |
Current | R$ 6732 | R$ 49189 | R$ 250866 | R$ 306210 | R$ 594037 | R$ 98943 | R$ 197291 |
Deferred | 97,899 | 72,147 | 28,561 | (8,564) | (139,412) | 76,455 | (45,325) |
Total expense | R$ 91167 | R$ 121336 | R$ 279427 | R$ 297646 | R$ 454625 | R$ 175398 | R$ 151966 |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Income Tax [Abstract] | |||||||
Deferred tax assets not recognized | R$ 20610 | R$ 18731 | R$ 20610 | R$ 18731 | R$ 18402 | R$ 12025 | |
Brazilian statutory rates | 34.00% | 34.00% | 34.00% | 34.00% | 34.00% | 34.00% | 34.00% |
Income Tax - Disclosure Of Anal
Income Tax - Disclosure Of Analysis Other Comprehensive Income By Item (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of analysis of other comprehensive income by item [abstract] | |||||||
Foreign exchange variation of investees located abroad, Before tax | R$ 76575 | R$ 12126 | R$ 6823 | R$ 18645 | R$ 2034 | ||
Foreign exchange variation of investees located abroad, (Charge) / Credit | 0 | 0 | 0 | 0 | 0 | ||
Foreign exchange variation of investees located abroad, After tax | R$ 6900 | R$ 15191 | 76,575 | 12,126 | 6,823 | 18,645 | 2,034 |
Gains (losses) on net investment hedge, Before tax | (121,772) | (17,591) | (10,543) | (26,508) | (3,124) | ||
Gains (losses) on net investment hedge, (Charge) / Credit | 41,402 | 5,762 | 3,410 | 9,013 | 738 | ||
Gains (losses) on net investment hedge, After tax | (7,531) | (13,911) | (80,370) | (11,829) | (7,133) | (17,495) | (2,386) |
Changes in the fair value of financial assets at fair value, Before tax | (56,603) | 1,494 | 1,058 | 6,727 | 275 | ||
Changes in the fair value of financial assets at fair value, (Charge) / Credit | 22,689 | (508) | (360) | (2,567) | (65) | ||
Changes in the fair value of financial assets at fair value, After tax | (45,072) | (8,118) | (33,914) | 986 | 698 | 4,160 | 210 |
Other comprehensive income, before tax | (101,800) | (3,971) | (2,662) | (1,136) | (815) | ||
Income tax relating to components of other comprehensive income | 64,091 | 128 | 3,050 | 6,446 | 673 | ||
Income tax relating to components of other comprehensive income | 64,091 | 5,254 | |||||
Other comprehensive income | R$ 45703 | R$ 6838 | R$ 37709 | R$ 1283 | R$ 388 | R$ 5310 | R$ 142 |
Social and Statutory Obligati_3
Social and Statutory Obligations - Summary Of Social And Statutory Obligations (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Subclassifications of assets, liabilities and equities [abstract] | |||
Obligations to non-controlling interest | R$ 35666 | R$ 27137 | |
Employee profit-sharing | 395,568 | 173,202 | |
Salaries and other benefits payable | 61,489 | 51,351 | |
Total | R$ 379696 | R$ 492723 | R$ 251690 |
Social and Statutory Obligati_4
Social and Statutory Obligations - Additional Information (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Subclassifications of assets, liabilities and equities [abstract] | |||
Social and statutory obligations | R$ 379696 | R$ 492723 | R$ 251690 |
Tax and Social Security Oblig_3
Tax and Social Security Obligations - Summary Of Tax And Social Security Obligations (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Tax and Social Security Obligations [Abstract] | |||
Income Tax (IRPJ and CSLL) | R$ 264258 | R$ 69001 | |
Contributions over revenue (PIS and COFINS) | 34,247 | 16,368 | |
Taxes on services (ISS) | 18,141 | 9,399 | |
Contributions for Social Security (INSS) | 7,712 | 3,368 | |
Others | 20,973 | 4,985 | |
Total | R$ 234652 | 345,331 | 103,121 |
Current | 345,331 | 103,121 | |
Non-current |
Tax and Social Security Oblig_4
Tax and Social Security Obligations - Summary Of Tax And Social Security Obligations (Parenthetical) (Detail) - BRL (R$) R$ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Tax and Social Security Obligations [Abstract] | ||
Corporate Income Tax (CIT) liability | R$ 594037 | R$ 98943 |
Corporate Income Tax (CIT) Prepaid | 361,771 | 58,139 |
Withholding taxes payable | R$ 31992 | R$ 28197 |
Securities Trading and Interm_3
Securities Trading and Intermediation - Summary of Securities Trading and Intermediation Assets and Liabilities (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of Securities Trading and Intermediation Assets and Liabilities [Abstract] | |||
Cash and settlement records | R$ 378727 | R$ 13823 | R$ 164322 |
Debtors pending settlement | 967,599 | 477,646 | 731,611 |
Other | 137,181 | 13,514 | 2,379 |
Total Assets | 1,483,507 | 504,983 | 898,312 |
Cash and settlement records | 378,030 | 474,759 | 90,056 |
Creditors pending settlement | 14,781,681 | 8,639,787 | 5,216,572 |
Total Liabilities | R$ 15159711 | R$ 9114546 | R$ 5306628 |
Equity - Additional Information
Equity - Additional Information (Detail) $ / shares in Units, R$ in Thousands | Dec. 11, 2019USD ($)shares | Nov. 30, 2019shares | Aug. 31, 2018USD ($)shares | Aug. 09, 2018shares | Mar. 31, 2017shares | Sep. 30, 2020BRL (R$)shares | Sep. 30, 2019BRL (R$) | Dec. 31, 2019BRL (R$)Votesshares | Dec. 31, 2018BRL (R$)shares | Dec. 31, 2017BRL (R$)shares | Sep. 30, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 01, 2019shares | Dec. 31, 2016shares |
Disclosure of classes of share capital [line items] | ||||||||||||||
Authorized share capital | $ | $ 35,000 | $ 35,000 | ||||||||||||
Authorized shares | 3,500,000,000 | 3,500,000,000 | 3,500,000,000 | 3,500,000,000 | ||||||||||
Authorized shares, par value | $ / shares | $ 1 | $ 1 | ||||||||||||
Authorized shares but unissued | 500,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | ||||||||||
Issued capital | R$ | R$ 23 | R$ 23 | R$ 21 | |||||||||||
Number of shares outstanding | 551,800,326 | 509,247,134 | 484,918,517 | 551,800,326 | 484,918,517 | |||||||||
Capital contributions received | R$ | R$ 4504826 | R$ 673294 | ||||||||||||
Reverse Share Split Ratio | 4:1 | |||||||||||||
Issued Capital Before Share Split | 2,036,988,542 | |||||||||||||
Issued Capital After Share Split | 509,247,136 | |||||||||||||
Number of shares issued new shares | 42,553,192 | |||||||||||||
Outstanding number of Shares reserved under plans | 5,950,244 | 4,112,046 | 5,950,244 | 4,112,046 | ||||||||||
Dividends distributed | R$ | R$ 6136 | R$ 9193 | R$ 511143 | 204,090 | R$ 318856 | |||||||||
Top of range [member] | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Maximum number of shares available for issuance under the share-based plan | 5.00% | 5.00% | ||||||||||||
Restricted Stock Units [Member] | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Outstanding number of Shares reserved under plans | 3,759,867 | 1,921,669 | 3,759,867 | 1,921,669 | ||||||||||
Performance Stock Units [Member] | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Outstanding number of Shares reserved under plans | 2,190,377 | 2,190,377 | 2,190,377 | 2,190,377 | ||||||||||
Equity attributable to owners of parent [member] | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Capital contributions received | R$ | R$ 4504826 | 673,294 | ||||||||||||
Dividends distributed | R$ | R$ 0 | R$ 500000 | R$ 200000 | 314,998 | ||||||||||
Other reserves [member] | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Dividends distributed | R$ | R$ 0 | R$ 37437 | ||||||||||||
Class A Common Shares [Member] | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Authorized shares | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | ||||||||||
Common shares issued | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | 257,456,251,558 | |||||||||
Issued capital | $ | $ 23,000 | $ 23,000 | ||||||||||||
Number of shares outstanding | 354,181,346 | 354,181,346 | 255,132,815 | 276,000,013 | 354,181,346 | 354,181,346 | 325,011,655 | |||||||
Number of shares issued | 83,387,238 | |||||||||||||
Number of shares issued, value | $ | $ 2,000 | |||||||||||||
Authorized conversion of shares | 83,468,792 | 196,046,598 | ||||||||||||
Authorized conversion of shares post reverse stock split | 20,867,198 | 49,011,649 | ||||||||||||
Number of shares issued new shares | 42,553,192 | |||||||||||||
Class B Common Shares [Member] | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Authorized shares | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||||||||
Common shares issued | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 251,790,558 | |||||||||
Number of shares outstanding | 197,618,980 | 197,618,980 | 254,114,319 | 208,918,504 | 197,618,980 | 197,618,980 | 159,906,862 | |||||||
Number of shares issued | 97,314,470 | |||||||||||||
Number of votes per share | Votes | 10 | |||||||||||||
Authorized conversion of shares | 30,807,911 | 28 | ||||||||||||
Authorized conversion of shares post reverse stock split | 7 | |||||||||||||
Capital contributions received | $ | $ 673,294 | |||||||||||||
Preference shares [member] | ||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||
Number of shares issued | 24,328,617 |
Equity - Summary Of Issuances A
Equity - Summary Of Issuances And Conversions Of Shares (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of classes of share capital [line items] | |||
Beginning balance | 509,247,134 | 484,918,517 | 484,918,517 |
Issued for cash | 24,328,617 | ||
Initial public offering | 42,553,192 | ||
Ending balance | 551,800,326 | 509,247,134 | 484,918,517 |
Class A Common Shares [Member] | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | 255,132,815 | 276,000,013 | 325,011,655 |
Corporate reorganization | 30,807,911 | ||
Transfer of classes | 25,687,428 | (20,867,198) | (49,011,642) |
Initial public offering | 42,553,192 | ||
Ending balance | 354,181,346 | 255,132,815 | 276,000,013 |
Class B Common Shares [Member] | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | 254,114,319 | 208,918,504 | 159,906,862 |
Corporate reorganization | (30,807,911) | ||
Issued for cash | 24,328,617 | ||
Transfer of classes | (25,687,428) | 20,867,198 | 49,011,642 |
Ending balance | 197,618,980 | 254,114,319 | 208,918,504 |
Equity - Summary Of Dividends D
Equity - Summary Of Dividends Distribution (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Dividends [Abstract] | |||||||
Net income | R$ 541284 | R$ 260798 | R$ 1479101 | R$ 699298 | R$ 1089484 | R$ 465330 | R$ 423541 |
Total dividends | 500,000 | 200,000 | 314,998 | ||||
At January 1 | 125,000 | ||||||
Amount recognized in the year | 500,000 | 200,000 | 314,998 | ||||
Dividends paid in the year | (500,000) | R$ 325000 | R$ 189998 | ||||
At December 31 | R$ 125000 |
Related Party Transactions - Su
Related Party Transactions - Summary of Key Management Personnel Compensation Expense (Detail) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [abstract] | |||
Fixed compensation | R$ 4821 | R$ 3329 | R$ 2708 |
Variable compensation | 22,060 | 30,316 | 18,316 |
Total | R$ 26881 | R$ 33645 | R$ 21024 |
Related Party Transactions - _2
Related Party Transactions - Summary of Transactions Between Related Parties Explanatory (Detail) - Entities with joint control or significant influence over entity [member] - BRL (R$) R$ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [line items] | ||||||
Due From Due To Related Party Transactions | R$ 3891015 | R$ 3891015 | R$ 732420 | R$ 451481 | ||
Income Expense From Related Party Transactions | (13,509) | R$ 18863 | (36,541) | R$ 14905 | (49,779) | (40,585) |
Securities [Member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Due From Due To Related Party Transactions | 105,100 | 105,100 | 123,813 | 69,647 | ||
Income Expense From Related Party Transactions | 1,895 | 2,915 | 9,154 | 7,279 | 10,381 | 147,258 |
Securities Purchased Under Agreements To Resell [Member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Due From Due To Related Party Transactions | 14,999 | 14,999 | 196,009 | |||
Income Expense From Related Party Transactions | 650 | 3,557 | 1,550 | |||
Accounts Receivable [Member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Due From Due To Related Party Transactions | 10,178 | 10,178 | 594 | |||
Income Expense From Related Party Transactions | (163) | (2,270) | 233 | 1,025 | ||
Securities Sold Under Repurchase Agreements [Member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Due From Due To Related Party Transactions | (4,000,000) | (4,000,000) | (1,000,168) | (426,207) | ||
Income Expense From Related Party Transactions | (15,514) | (18,313) | (48,243) | (18,313) | (58,078) | (3,586) |
Borrowings [Member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Due From Due To Related Party Transactions | (21,292) | (21,292) | (52,668) | (94,921) | ||
Income Expense From Related Party Transactions | R$ 377 | R$ 1195 | R$ 1242 | R$ 3871 | R$ 4657 | R$ 184257 |
Provisions and Contingent Lia_3
Provisions and Contingent Liabilities - Summary Of Other Provisions (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of other provisions [line items] | ||||||||
Other provisions | R$ 16020 | R$ 15479 | R$ 15193 | R$ 15704 | R$ 17171 | R$ 17474 | R$ 11843 | R$ 5334 |
Judicial deposits | 10,168 | 18,403 | 14,850 | |||||
Tax contingencies [member] | ||||||||
Disclosure of other provisions [line items] | ||||||||
Other provisions | 10,062 | 9,878 | 9,392 | |||||
Civil contingencies [member] | ||||||||
Disclosure of other provisions [line items] | ||||||||
Other provisions | 3,660 | 2,673 | 5,610 | |||||
Labor contingencies [member] | ||||||||
Disclosure of other provisions [line items] | ||||||||
Other provisions | R$ 2298 | R$ 2642 | R$ 2472 |
Provisions and Contingent Lia_4
Provisions and Contingent Liabilities - Summary Of Changes In Other Provisions (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of other provisions [abstract] | |||||||
Beginning balance | R$ 15479 | R$ 17171 | R$ 15193 | R$ 17474 | R$ 17474 | R$ 11843 | R$ 5334 |
Monetary correction | 499 | 809 | 1,472 | 1,499 | 2,492 | 1,667 | 2,226 |
Provision accrued | 333 | 1,657 | 912 | 1,726 | |||
Provision/(Reversal) | (78) | (3,931) | (965) | (3,933) | (1,601) | 7,897 | 3,531 |
Business combination (Note 5 (ii)) | 7,921 | ||||||
Payments | (213) | (2) | (592) | (1,062) | (3,172) | (3,933) | (7,169) |
Ending balance | R$ 16020 | R$ 15704 | R$ 16020 | R$ 15704 | R$ 15193 | R$ 17474 | R$ 11843 |
Provisions and Contingent Lia_5
Provisions and Contingent Liabilities - Summary of contingent liabilities (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of contingent liabilities [line items] | |||
Estimated financial effect of contingent liabilities | R$ 191941 | R$ 153951 | R$ 89323 |
Tax [Member] | |||
Disclosure of contingent liabilities [line items] | |||
Estimated financial effect of contingent liabilities | 70,700 | 69,386 | 19,971 |
Civil [Member] | |||
Disclosure of contingent liabilities [line items] | |||
Estimated financial effect of contingent liabilities | 114,669 | 81,414 | 64,820 |
Labor [Member] | |||
Disclosure of contingent liabilities [line items] | |||
Estimated financial effect of contingent liabilities | R$ 6572 | R$ 3151 | R$ 4532 |
Provisions and Contingent Lia_6
Provisions and Contingent Liabilities - Summary of contingent liabilities (Parenthetical) (Detail) | Sep. 30, 2020 | Dec. 31, 2019 |
Civil Provisions [Member] | ||
Disclosure of contingent liabilities [line items] | ||
Number of pending claims | 592 | 6 |
Provisions and Contingent Lia_7
Provisions and Contingent Liabilities - Additional Information (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of contingent liabilities [line items] | ||||||||
Other provisions | R$ 16020 | R$ 15479 | R$ 15193 | R$ 15704 | R$ 17171 | R$ 17474 | R$ 11843 | R$ 5334 |
Estimated financial effect of contingent liabilities | 191,941 | 153,951 | 89,323 | |||||
Tax contingencies [member] | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Other provisions | 10,062 | 9,878 | 9,392 | |||||
Civil contingencies [member] | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Other provisions | 3,660 | 2,673 | 5,610 | |||||
Judicial deposit assets | 112 | 9,744 | 4,500 | |||||
Labor contingencies [member] | ||||||||
Disclosure of contingent liabilities [line items] | ||||||||
Other provisions | R$ 2298 | R$ 2642 | R$ 2472 |
Total revenue and income - Summ
Total revenue and income - Summary of Disaggregation of Revenue by Major Service Lines (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Major service lines | |||||||
Brokerage commission | R$ 547862 | R$ 349554 | R$ 1595435 | R$ 935998 | R$ 1288135 | R$ 861068 | R$ 639615 |
Securities placement | 388,283 | 328,224 | 922,057 | 693,198 | 1,154,786 | 631,949 | 401,402 |
Management fees | 274,353 | 207,070 | 809,024 | 591,591 | 1,035,224 | 527,644 | 221,936 |
Insurance brokerage fee | 17,624 | 27,344 | 74,299 | 69,367 | 106,438 | 56,713 | 29,167 |
Educational services | 25,474 | 32,782 | 95,627 | 75,037 | 97,986 | 42,653 | 18,682 |
Other services | 155,063 | 85,388 | 334,470 | 212,874 | 275,467 | 160,409 | 111,647 |
Revenue before Sales Taxes and Contributions on Revenue | 3,958,036 | 2,280,436 | 1,422,449 | ||||
Gross revenue from services rendered | 1,408,659 | 1,030,362 | 3,830,912 | 2,578,065 | |||
(-) Sales taxes and contributions on revenue | (130,914) | (86,324) | (337,681) | (236,965) | (362,264) | (225,887) | (138,833) |
Revenue | R$ 1277745 | R$ 944038 | R$ 3493231 | R$ 2341100 | R$ 3595772 | R$ 2054549 | R$ 1283616 |
Total revenue and income - Su_2
Total revenue and income - Summary of Net Income from Financial Instruments (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Net Income from Financial Instruments [Abstract] | |||||||
Net Income of financial instruments at fair value through profit or loss | R$ 647076 | R$ 395838 | R$ 2007466 | R$ 913110 | R$ 1360207 | R$ 821617 | R$ 562895 |
Net Income of financial instruments measured at amortized cost and at fair value through other comprehensive income | 189,527 | 26,513 | 298,585 | 204,023 | 199,947 | 114,442 | 79,380 |
Net Income of financial instruments measured at amortized cost and at fair value through other comprehensive income | 189,527 | 26,513 | 303,388 | 204,023 | |||
Revenue | 836,603 | 422,351 | 2,310,854 | 1,117,133 | |||
(-) Taxes and contributions on financial income | (13,611) | (10,465) | (47,578) | (21,720) | (28,118) | (32,155) | (19,241) |
Net Income from Financial Instruments | R$ 822992 | R$ 411886 | R$ 2263276 | R$ 1095413 | R$ 1532036 | R$ 903904 | R$ 623034 |
Total revenue and income - Su_3
Total revenue and income - Summary of Disaggregation by Geographic Location (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Disaggregation by Geographic Location [Line Items] | |||||||
Total Revenue and Income | R$ 2100737 | R$ 1355924 | R$ 5756507 | R$ 3436513 | R$ 5127808 | R$ 2958453 | R$ 1906650 |
Selected assets | 1,580,702 | 1,580,702 | 1,449,457 | 920,819 | |||
Brazil [member] | |||||||
Disclosure of Disaggregation by Geographic Location [Line Items] | |||||||
Total Revenue and Income | 1,721,542 | 1,273,565 | 5,156,387 | 3,207,076 | 4,790,236 | 2,716,459 | 1,751,419 |
Selected assets | 1,175,503 | 1,175,503 | 1,208,737 | 881,434 | |||
United States [member] | |||||||
Disclosure of Disaggregation by Geographic Location [Line Items] | |||||||
Total Revenue and Income | 368,524 | 74,917 | 570,738 | 205,830 | 307,456 | 204,207 | 131,198 |
Selected assets | 375,565 | 375,565 | 224,244 | 31,829 | |||
Europe [member] | |||||||
Disclosure of Disaggregation by Geographic Location [Line Items] | |||||||
Total Revenue and Income | 10,671 | R$ 7442 | 29,382 | R$ 23607 | 30,116 | 37,787 | R$ 24033 |
Selected assets | R$ 29634 | R$ 29634 | R$ 16476 | R$ 7556 |
Operating costs - Summary of Op
Operating costs - Summary of Operating Costs (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Disclosure Of Operating Expense [Abstract] | |||||||||||
Commission and incentive costs | R$ 549249 | R$ 353825 | R$ 1442670 | R$ 877502 | R$ 1269309 | R$ 750103 | R$ 455241 | ||||
Operating losses and provisions | 16,984 | 7,344 | 65,584 | 14,825 | 23,332 | 9,989 | 7,148 | ||||
Other costs | 34,865 | [1] | 28,993 | [1] | 115,003 | [1] | 85,389 | [1] | 313,419 | 181,154 | 117,491 |
Clearing house fees | 104,922 | 54,796 | 240,806 | 141,251 | 201,083 | 96,896 | 71,419 | ||||
Third parties' services | 76,669 | 53,124 | 28,953 | ||||||||
Other | 35,667 | 31,134 | 17,119 | ||||||||
Total | R$ 706020 | R$ 444958 | R$ 1864062 | R$ 1118967 | R$ 1606060 | R$ 941246 | R$ 579880 | ||||
[1] | Other cost included third parties'services and other costs. |
Operating expenses by nature -
Operating expenses by nature - Summary of Operating Expense by Nature (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Disclosure of Operating Expense by Nature [Abstract] | |||||||||||
Selling expenses | R$ 38322 | [1] | R$ 30104 | [1] | R$ 94367 | [1] | R$ 82419 | [1] | R$ 155115 | R$ 96075 | R$ 32881 |
Advertising and publicity | 809,596 | 481,605 | 2,077,587 | 1,294,039 | 155,115 | 96,075 | 32,881 | ||||
Administrative expenses | 809,596 | 481,605 | 2,077,587 | 1,294,039 | 1,891,481 | 1,176,805 | 649,585 | ||||
Personnel expenses | 577,614 | 291,485 | 1,484,596 | 859,653 | 1,261,887 | 712,060 | 428,772 | ||||
Compensation | 203,419 | 107,474 | 565,640 | 256,323 | 408,394 | 221,746 | 134,535 | ||||
Employee profit-sharing and bonus | 240,763 | 127,591 | 566,353 | 466,219 | 645,992 | 356,938 | 217,982 | ||||
Executives profit-sharing | 52,662 | 20,415 | 156,988 | 50,230 | 67,547 | 50,656 | 28,802 | ||||
Benefits | 47,457 | 35,922 | 16,697 | ||||||||
Social charges | 88,960 | 45,115 | 28,836 | ||||||||
Other Personnel expenses | 80,770 | [2],[3] | 36,005 | [2],[3] | 195,615 | [2],[3] | 86,881 | [2],[3] | 3,537 | 1,683 | 1,920 |
Other taxes expenses | 9,907 | 11,419 | 26,193 | 29,699 | 39,691 | 43,945 | 20,749 | ||||
Depreciation of property and equipment and right-of-use assets | 16,928 | 14,094 | 52,972 | 38,409 | 53,530 | 26,278 | 9,338 | ||||
Amortization of intangible assets | 19,451 | 9,361 | 52,928 | 23,992 | 37,630 | 26,510 | 18,065 | ||||
Other administrative expenses | 27,452 | [2] | 26,515 | [2] | 66,454 | [2] | 65,895 | [2] | 498,743 | 368,012 | 172,661 |
Data processing | 89,018 | 49,775 | 212,074 | 124,260 | 178,860 | 130,678 | 71,861 | ||||
Technical services | 25,563 | 13,102 | 66,284 | 39,560 | 85,782 | 76,476 | 26,985 | ||||
Third parties' services | 43,663 | 65,854 | 116,086 | 112,571 | 145,730 | 63,333 | 19,006 | ||||
Rent expenses | 10,575 | 41,950 | 16,492 | ||||||||
Communication | 17,495 | 11,457 | 11,276 | ||||||||
Travel | 21,676 | 13,804 | 9,791 | ||||||||
Legal and judicial | 3,406 | 9,023 | 2,638 | ||||||||
Other | 35,219 | 21,291 | 14,612 | ||||||||
Total | R$ 847918 | R$ 511709 | R$ 2171954 | R$ 1376458 | R$ 2046596 | R$ 1272880 | R$ 682466 | ||||
[1] | Selling expenses refers to advertising and publicity. | ||||||||||
[2] | Other administrative expenses include rent, communication and travel expenses, legal and judicial and other expenses. | ||||||||||
[3] | Other personnel expenses include benefits, social charges and others. |
Other Operating Income (Expen_3
Other Operating Income (Expenses), Net - Summary of Other Operating Income (Expenses), Net (Detail) - BRL (R$) R$ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Other Operating Income Net [Abstract] | |||||||
Other operating income | R$ 196445 | R$ 18588 | R$ 273809 | R$ 152674 | R$ 208245 | R$ 20682 | R$ 23764 |
Recovery of charges and expenses | 53,453 | 6,873 | 3,165 | ||||
Reversal of operating provisions | 9,767 | 2,641 | 2,684 | ||||
Revenue from incentives from Tesouro Direto, B3 and Others | 190,900 | 13,020 | 258,306 | 52,069 | 101,615 | 9,931 | 4,226 |
Other | 5,545 | 5,568 | 15,503 | 100,605 | 43,410 | 1,237 | 13,689 |
Other operating expenses | (98,644) | (11,230) | (188,823) | (34,187) | (54,888) | (51,971) | (31,468) |
Legal, administrative proceedings and agreement with customers | (36,262) | (1,790) | (43,844) | (3,503) | (9,499) | (16,385) | (18,370) |
Tax incentive expenses | (10,265) | (2,015) | (2,980) | ||||
Losses on write-off and disposal of assets | (29,809) | (48) | (59,216) | (6,583) | (7,060) | (11,064) | (1,503) |
Fines and penalties | (1,191) | (7,446) | (2,755) | ||||
Associations and regulatory fees | (4,216) | (3,059) | (2,073) | ||||
Charity | (13,668) | (1,842) | (40,512) | (5,917) | (6,751) | (5,938) | (50) |
Other | (15,906) | (6,064) | (3,737) | ||||
Other operating expenses | (18,905) | (7,550) | (45,251) | (18,184) | |||
Total | R$ 97801 | R$ 7358 | R$ 84986 | R$ 118487 | R$ 153357 | R$ 31289 | R$ 7704 |
Share-Based Plan - Additional I
Share-Based Plan - Additional Information (Detail) R$ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020BRL (R$) | Sep. 30, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | Sep. 30, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Description of vesting condition | (i) 33% will vest on the third year after the grant, (ii) 33% will vest on the fourth year after the grant and (iii) 34% will vest on the fifth year after the grant date. | (i) 33% will vest on the third year after the grant, (ii) 33%% will vest on the fourth year after the grant and (iii) 34% will vest on the fifth year after the grant date. | |||
Outstanding number of Shares reserved under plans | 5,950,244 | 4,112,046 | |||
compensation expense | R$ | R$ 44352 | R$ 113464 | R$ 7502 | ||
Tax provisions and does not include any tax benefits on total share-based compensation expense | R$ | R$ 2131 | ||||
Top of range [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Maximum number of shares available for issuance under the share-based plan | 5.00% | ||||
Restricted Stock Units [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Description of vesting condition | their vesting conditions are service related and they vest at a rate of 20% after three years, 20% after four years, and 60% after five years. | their vesting conditions are service related and they vest at a rate of 20% after three years, 20% after four years, and 60% after five years. | |||
Outstanding number of Shares reserved under plans | 3,759,867 | 1,921,669 | |||
compensation expense | R$ | R$ 12578 | R$ 34917 | |||
weighted-average grant-date fair value | $ | $ 27,000 | $ 27,000 | |||
Number Of Outstanding Share Forfeited | 298,750,000 | ||||
Number Of Outstanding Share Granted | 1,934,000,000 | ||||
Performance Stock Units member [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||
Outstanding number of Shares reserved under plans | 2,190,377 | 2,190,377 | |||
weighted-average grant-date fair value | $ | $ 34,560 | $ 3,456,000 |
Earnings Per Share (Basic And_3
Earnings Per Share (Basic And Diluted) - Summary of Earnings Per Share (Detail) R$ / shares in Units, shares in Thousands, R$ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2020BRL (R$)R$ / sharesshares | Sep. 30, 2020£ / shares | Sep. 30, 2019BRL (R$)R$ / sharesshares | Sep. 30, 2019$ / shares | Sep. 30, 2019£ / shares | Sep. 30, 2020BRL (R$)R$ / sharesshares | Sep. 30, 2020£ / shares | Sep. 30, 2019BRL (R$)R$ / sharesshares | Sep. 30, 2019£ / shares | Dec. 31, 2019BRL (R$)R$ / sharesshares | Dec. 31, 2019$ / shares | Dec. 31, 2018BRL (R$)R$ / sharesshares | Dec. 31, 2018$ / shares | Dec. 31, 2017BRL (R$)R$ / sharesshares | Dec. 31, 2017$ / shares | ||||||||
Earnings per share [line items] | ||||||||||||||||||||||
Net income | R$ | R$ 540434 | R$ 257814 | R$ 1475613 | R$ 692011 | R$ 1080484 | R$ 461440 | R$ 413874 | |||||||||||||||
Basic weighted average quantity of shares (1) | 551,800 | [1] | 509,247 | [1] | 551,800 | [1] | 509,247 | [1] | 511,462 | 493,117 | 484,919 | |||||||||||
Basic earnings per share | (per share) | R$ 0.9794 | £ 0.9794 | R$ 0.5063 | £ 0.5063 | R$ 2.6742 | £ 2.6742 | R$ 1.3589 | £ 1.3589 | R$ 2.1125 | [2] | $ 21,125 | R$ 0.9358 | [2] | $ 9,358 | R$ 0.8535 | [2] | $ 8,535 | |||||
Share-based incentive program | 4,774 | 0 | 4,323 | 0 | 248 | |||||||||||||||||
Diluted weighted average quantity of shares | 556,574 | 509,247 | 556,574 | 509,247 | 511,710 | 493,117 | 484,919 | |||||||||||||||
Diluted earnings per share | (per share) | R$ 0.9710 | £ 0.9710 | R$ 0.5063 | $ 0.5063 | R$ 2.6534 | £ 2.6534 | R$ 1.3589 | £ 1.3589 | R$ 2.1115 | [2] | $ 21,115 | R$ 0.9358 | [2] | $ 9,358 | R$ 0.8535 | [2] | $ 8,535 | |||||
[1] | Thousands of shares. | |||||||||||||||||||||
[2] | The basic and diluted earnings per common share are in effect with the reverse share split occurred on November 30, 2019. |
Determination Of Fair Value - S
Determination Of Fair Value - Summary Of Fair Value Measurement Of Assets And Liabilities (Detail) £ in Thousands, R$ in Thousands | Sep. 30, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | Dec. 31, 2019GBP (£) | Dec. 31, 2018BRL (R$) |
Financial assets at fair value through profit or loss [abstract] | ||||
Securities | R$ 38701519 | R$ 22443392 | R$ 6290971 | |
Derivative financial instruments | 13,148,767 | 4,085,004 | 1,692,031 | |
Fair value through other comprehensive income | ||||
Securities | 9,588,773 | 2,616,118 | 695,778 | |
Evaluated at amortized cost | ||||
Securities | 1,366,038 | 2,266,971 | 155,292 | |
Securities purchased under agreements to resell | 18,243,688 | 9,490,090 | 6,570,609 | |
Securities trading and intermediation | 1,483,507 | 504,983 | 898,312 | |
Accounts receivable | 251,194 | 462,029 | 219,200 | |
Loan operations | 1,369,234 | 386 | ||
Other financial assets | 280,279 | 20,191 | 60,423 | |
Other financial assets | 280,279 | 19,805 | £ 19,805 | |
Fair value through profit or loss | ||||
Securities loaned | 1,111,770 | 2,021,707 | 1,259,579 | |
Derivative financial instruments | 12,729,596 | 3,229,236 | 991,399 | |
Evaluated at amortized cost | ||||
Securities sold under repurchase agreements | 35,253,928 | 15,638,407 | 6,640,694 | |
Securities trading and intermediation | 15,159,711 | 9,114,546 | 5,306,628 | |
Deposits | 1,626,709 | |||
Borrowings and lease liabilities | 511,981 | 637,484 | 469,609 | |
Debentures | 338,693 | 835,230 | 406,538 | |
Accounts payables | 655,117 | 266,813 | 134,579 | |
Structured operations certificates | 1,142,457 | 19,474 | ||
Other financial liabilities | 858,878 | 98,631 | 7,011 | |
Other financial liabilities | £ | 79,157 | |||
Total | 153,821,839 | 72,979,125 | ||
Fair Value [Member] | ||||
Financial assets at fair value through profit or loss [abstract] | ||||
Securities | 38,701,519 | 22,443,392 | 6,290,971 | |
Derivative financial instruments | 13,148,767 | 4,085,004 | 1,692,031 | |
Fair value through other comprehensive income | ||||
Securities | 9,588,773 | 2,616,118 | 695,778 | |
Evaluated at amortized cost | ||||
Securities | 1,371,040 | 3,914,923 | 153,709 | |
Securities purchased under agreements to resell | 18,229,920 | 9,490,090 | 6,568,246 | |
Securities trading and intermediation | 1,483,507 | 504,983 | 898,312 | |
Accounts receivable | 251,194 | 462,029 | 219,200 | |
Loan operations | 1,392,375 | 386 | ||
Other financial assets | 280,279 | 20,191 | 60,423 | |
Other financial assets | £ | 19,805 | |||
Fair value through profit or loss | ||||
Securities loaned | 1,111,770 | 2,021,707 | 1,259,579 | |
Derivative financial instruments | 12,729,596 | 3,229,236 | 991,399 | |
Evaluated at amortized cost | ||||
Securities sold under repurchase agreements | 35,192,715 | 15,638,407 | 6,792,316 | |
Securities trading and intermediation | 15,159,711 | 9,114,546 | 5,306,628 | |
Deposits | 1,573,958 | |||
Borrowings and lease liabilities | 565,723 | 633,781 | 459,487 | |
Debentures | 331,981 | 836,001 | 406,540 | |
Accounts payables | 655,117 | 266,813 | 134,579 | |
Structured operations certificates | 1,142,457 | 19,474 | ||
Other financial liabilities | 858,878 | 98,601 | 7,011 | |
Other financial liabilities | £ | 79,127 | |||
Total | 153,769,280 | 75,375,822 | ||
Level 1 [Member] | ||||
Financial assets at fair value through profit or loss [abstract] | ||||
Securities | 35,825,631 | 20,277,031 | 5,259,591 | |
Derivative financial instruments | 7,451 | 21,809 | 6,599 | |
Fair value through other comprehensive income | ||||
Securities | 9,588,773 | 2,616,118 | 695,778 | |
Fair value through profit or loss | ||||
Securities loaned | 1,111,770 | 2,021,707 | 1,259,579 | |
Derivative financial instruments | 19,745 | |||
Evaluated at amortized cost | ||||
Total | 46,553,370 | 24,936,665 | ||
Level 2 [Member] | ||||
Financial assets at fair value through profit or loss [abstract] | ||||
Securities | 2,875,888 | 2,166,361 | 1,031,380 | |
Derivative financial instruments | 13,141,316 | 4,063,195 | 1,685,432 | |
Evaluated at amortized cost | ||||
Securities | 1,371,040 | 3,914,923 | 153,709 | |
Securities purchased under agreements to resell | 18,229,920 | 9,490,090 | 6,568,246 | |
Securities trading and intermediation | 1,483,507 | 504,983 | 898,312 | |
Accounts receivable | 251,194 | 462,029 | 219,200 | |
Loan operations | 1,392,375 | 386 | ||
Other financial assets | 280,279 | 20,191 | 60,423 | |
Other financial assets | £ | 19,805 | |||
Fair value through profit or loss | ||||
Derivative financial instruments | 12,709,851 | 3,229,236 | 991,399 | |
Evaluated at amortized cost | ||||
Securities sold under repurchase agreements | 35,192,715 | 15,638,407 | 6,792,316 | |
Securities trading and intermediation | 15,159,711 | 9,114,546 | 5,306,628 | |
Deposits | 1,573,958 | |||
Borrowings and lease liabilities | 565,723 | 633,781 | 459,487 | |
Debentures | 331,981 | 836,001 | 406,540 | |
Accounts payables | 655,117 | 266,813 | 134,579 | |
Structured operations certificates | 1,142,457 | 19,474 | ||
Other financial liabilities | 396,878 | 98,601 | R$ 7011 | |
Other financial liabilities | £ | £ 79,127 | |||
Total | 106,753,910 | R$ 50439157 | ||
Level 3 [Member] | ||||
Evaluated at amortized cost | ||||
Other financial liabilities | 462,000 | |||
Total | R$ 462000 |
Determination Of Fair Value - A
Determination Of Fair Value - Additional Information (Detail) R$ in Thousands | 9 Months Ended |
Sep. 30, 2020BRL (R$) | |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |
Percentage of purchase and sale agreements discounted using a weighted average rate | 8.90% |
Increase (decrease) in fair value measurement, liabilities | R$ 22500 |
Transfers of fair value hierarchy | no |
Management Of Financial Risks_3
Management Of Financial Risks And Financial Instruments - Additional Information (Detail) £ in Thousands, R$ in Thousands, $ in Thousands | Aug. 31, 2018BRL (R$) | Sep. 30, 2020BRL (R$) | Sep. 30, 2019BRL (R$) | Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) | Dec. 31, 2019USD ($) | Dec. 31, 2019GBP (£) | Dec. 31, 2018USD ($) | Dec. 31, 2018GBP (£) |
Management of Financial Risks and Financial Instruments [Line Items] | |||||||||
Repayment of debt | R$ | R$ 778481 | R$ 130798 | R$ 101047 | R$ 123332 | R$ 689634 | ||||
XP Holding International [Member] | |||||||||
Management of Financial Risks and Financial Instruments [Line Items] | |||||||||
Foreign currency risk | $ 43,323 | $ 37,671 | |||||||
XP Advisors Inc [Member] | |||||||||
Management of Financial Risks and Financial Instruments [Line Items] | |||||||||
Foreign currency risk | $ 744 | ||||||||
XP Holding UK Ltd [member] | |||||||||
Management of Financial Risks and Financial Instruments [Line Items] | |||||||||
Foreign currency risk | £ 3,059 | $ 313 | £ 4,337 |
Management Of Financial Risks_4
Management Of Financial Risks And Financial Instruments - Summary Of Financial Assets Representing The Maximum Exposure To Credit Risk (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Financial Assets Representing the Maximum Exposure to Credit Risk [Abstract] | |||
Securities purchased under agreements to resell | R$ 18243688 | R$ 9490090 | R$ 6570609 |
Securities | 27,326,481 | 7,142,041 | |
Public securities | 20,381,125 | 4,704,604 | |
Private securities | 6,945,356 | 2,437,437 | |
Derivative financial instruments | 13,148,767 | 4,085,004 | 1,692,031 |
Securities trading and intermediation | 1,483,507 | 504,983 | 898,312 |
Accounts receivable | 251,194 | 462,029 | 219,200 |
Other financial assets | 280,279 | 20,191 | 60,423 |
Financial assets | R$ 84432999 | R$ 41888778 | R$ 16582616 |
Management Of Financial Risks_5
Management Of Financial Risks And Financial Instruments - Summary Of Financial Liabilities Into Groupings Based On Their Contractual Maturities (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial liabilities into groupings based on their contractual maturities [line items] | |||
Securities loaned | R$ 1111770 | R$ 2021707 | R$ 1259579 |
Derivative financial instruments | 3,229,236 | 991,399 | |
Securities sold under repurchase agreements | 35,253,928 | 15,638,407 | 6,640,694 |
Securities trading and intermediation | 15,159,711 | 9,114,546 | 5,306,628 |
Borrowings and lease liabilities | 511,981 | 637,484 | 469,609 |
Debentures | 338,693 | 835,230 | 406,538 |
Accounts payables | 655,117 | 266,813 | 134,579 |
Other financial liabilities | 858,878 | 98,631 | 7,011 |
Financial liabilities | R$ 69388840 | 31,842,054 | 15,216,037 |
Up to 1 month [member] | |||
Disclosure of financial liabilities into groupings based on their contractual maturities [line items] | |||
Securities loaned | 2,021,707 | 770,270 | |
Derivative financial instruments | 1,557,088 | 152,971 | |
Securities sold under repurchase agreements | 15,638,407 | 68,738 | |
Securities trading and intermediation | 9,114,546 | 5,306,628 | |
Borrowings and lease liabilities | 8,239 | 19,032 | |
Accounts payables | 266,813 | 134,579 | |
Other financial liabilities | 79,157 | 7,011 | |
Financial liabilities | 28,685,957 | 6,459,229 | |
From 2 to 3 months [member] | |||
Disclosure of financial liabilities into groupings based on their contractual maturities [line items] | |||
Securities loaned | 478,741 | ||
Derivative financial instruments | 211,882 | 182 | |
Securities sold under repurchase agreements | 5,439,405 | ||
Borrowings and lease liabilities | 26,258 | 22,752 | |
Financial liabilities | 238,140 | 5,941,080 | |
From 3 to 12 months [member] | |||
Disclosure of financial liabilities into groupings based on their contractual maturities [line items] | |||
Securities loaned | 10,568 | ||
Derivative financial instruments | 685,566 | 242,506 | |
Securities sold under repurchase agreements | 1,132,551 | ||
Borrowings and lease liabilities | 81,953 | 72,705 | |
Debentures | 435,230 | ||
Financial liabilities | 1,167,519 | 1,458,330 | |
From 1 to 5 years [member] | |||
Disclosure of financial liabilities into groupings based on their contractual maturities [line items] | |||
Derivative financial instruments | 732,286 | 560,798 | |
Borrowings and lease liabilities | 521,034 | 355,120 | |
Debentures | 400,000 | 406,538 | |
Financial liabilities | 1,688,550 | 1,322,456 | |
Above 5 years [member] | |||
Disclosure of financial liabilities into groupings based on their contractual maturities [line items] | |||
Derivative financial instruments | 42,414 | 34,942 | |
Other financial liabilities | 19,474 | ||
Financial liabilities | R$ 61888 | R$ 34942 |
Management Of Financial Risks_6
Management Of Financial Risks And Financial Instruments - Summary Of Sensitivity Analysis (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of sensitivity analysis [line items] | ||
Sensitivity analysis increase decrease in one percent | (3581.00%) | (93.00%) |
Sensitivity analysis increase decrease in twenty five percent | (173542.00%) | (25565.00%) |
Sensitivity analysis increase decrease in fifty percent | (460503.00%) | (36161.00%) |
Pre-Fixed [member] | Pre-fixed interest rate in Reais [member] | ||
Disclosure of sensitivity analysis [line items] | ||
Sensitivity analysis increase decrease in one percent | (907.00%) | (559.00%) |
Sensitivity analysis increase decrease in twenty five percent | (163057.00%) | (11441.00%) |
Sensitivity analysis increase decrease in fifty percent | (445866.00%) | (22881.00%) |
Exchange coupons [member] | Foreign currencies coupon rate [member] | ||
Disclosure of sensitivity analysis [line items] | ||
Sensitivity analysis increase decrease in one percent | (67.00%) | (9.00%) |
Sensitivity analysis increase decrease in twenty five percent | 570.00% | (5764.00%) |
Sensitivity analysis increase decrease in fifty percent | (854.00%) | (11529.00%) |
Foreign currencies [member] | Exchange rates [member] | ||
Disclosure of sensitivity analysis [line items] | ||
Sensitivity analysis increase decrease in one percent | (2102.00%) | (386.00%) |
Sensitivity analysis increase decrease in twenty five percent | (1493.00%) | (978.00%) |
Sensitivity analysis increase decrease in fifty percent | 43908.00% | (5027.00%) |
Price indexes [member] | Inflation coupon rates [member] | ||
Disclosure of sensitivity analysis [line items] | ||
Sensitivity analysis increase decrease in one percent | (63.00%) | (16.00%) |
Sensitivity analysis increase decrease in twenty five percent | (782.00%) | (798.00%) |
Sensitivity analysis increase decrease in fifty percent | (301.00%) | (1597.00%) |
Shares [member] | Shares prices [member] | ||
Disclosure of sensitivity analysis [line items] | ||
Sensitivity analysis increase decrease in one percent | (442.00%) | 877.00% |
Sensitivity analysis increase decrease in twenty five percent | (8780.00%) | (6584.00%) |
Sensitivity analysis increase decrease in fifty percent | (57390.00%) | 4873.00% |
Capital Management - Summary Of
Capital Management - Summary Of Net Debt And Corresponding Gearing Ratios (Detail) - BRL (R$) | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Net Debt And Corresponding Gearing Ratios [Abstract] | |||||
Borrowings and lease liabilities | R$ 511981000 | R$ 637484000 | R$ 469609000 | ||
Debentures | 338,693,000 | 835,230,000 | 406,538,000 | ||
Total debt | 850,674,000 | 1,472,714,000 | R$ 1481962000 | 876,147,000 | R$ 867024000 |
Cash | (642,491,000) | (109,922,000) | (70,483,000) | (68,407,000) | (153,218,000) |
Securities purchased under agreements to resell | 0 | (654,057,000) | (684,964,000) | (488,809,000) | (420,958,000) |
Certificate deposits (Securities) | (105,204,000) | (123,817,000) | R$ 90530000 | (69,647,000) | R$ 261317000 |
Net debt | 102,979,000 | 584,918,000 | 249,284,000 | ||
Total equity | 8,669,470,000 | 7,153,396,000 | 2,084,777,000 | ||
Total capital | 8,772,449,000 | 7,738,313,000 | 2,334,061,000 | ||
Gearing ratio % | R$ 1.17 | R$ 7.56 | R$ 10.68 |
Capital Management - Additional
Capital Management - Additional Information (Detail) - BRL (R$) R$ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Net Debt And Corresponding Gearing Ratios [Abstract] | |||
Capital to maintain above minimum capital requirement | 1.00% | 1.00% | |
Contracts under financial covenants | R$ 636091 | R$ 1217308 | R$ 876147 |
Cash Flow Information - Schedul
Cash Flow Information - Schedule Of Debt Reconciliation (Detail) - BRL (R$) R$ in Thousands | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||||
Total debt balance Opening | R$ 1472714 | R$ 876147 | R$ 876147 | R$ 867024 | |
Acquisitions / Issuance | 45,129 | 505,694 | 524,196 | 725,370 | R$ 826000 |
Write-off | (78,322) | ||||
Payments | (530,798) | (101,047) | (135,147) | (689,634) | |
Repurchase | (64,717) | ||||
Revaluation | (10,050) | ||||
Net foreign exchange differences | 32,675 | 6,460 | 3,085 | (35,091) | 35,116 |
Interest accrued | 46,057 | 62,600 | 84,367 | 62,663 | 5,908 |
Interest paid | (62,015) | (16,386) | (28,428) | (54,185) | |
Total debt balance end | 850,674 | 1,481,962 | 1,472,714 | 876,147 | 867,024 |
New IFRS [member] | |||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||||
Total debt balance Opening | 1,024,641 | 1,024,641 | |||
Change in accounting policy (Note 3.xxi) | 148,494 | ||||
Total debt balance end | 1,024,641 | ||||
Borrowings [member] | |||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||||
Total debt balance Opening | 382,078 | 469,609 | 469,609 | 867,024 | |
Acquisitions / Issuance | 325,370 | 826,000 | |||
Payments | (84,895) | (74,853) | (85,353) | (689,634) | |
Net foreign exchange differences | (35,091) | 35,116 | |||
Interest accrued | 10,281 | 20,869 | 26,250 | 56,125 | 5,908 |
Interest paid | (10,067) | (16,386) | (28,428) | (54,185) | |
Total debt balance end | 297,397 | 399,239 | 382,078 | 469,609 | R$ 867024 |
Borrowings [member] | New IFRS [member] | |||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||||
Total debt balance Opening | 469,609 | 469,609 | |||
Total debt balance end | 469,609 | ||||
Lease liabilities [member] | |||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||||
Total debt balance Opening | 255,406 | ||||
Acquisitions / Issuance | 45,129 | 105,694 | 124,196 | ||
Write-off | (78,322) | ||||
Payments | (45,903) | (26,194) | (37,979) | ||
Revaluation | (10,050) | ||||
Net foreign exchange differences | 32,675 | 6,460 | 3,085 | ||
Interest accrued | 15,648 | 12,447 | 17,610 | ||
Total debt balance end | 214,583 | 246,901 | 255,406 | ||
Lease liabilities [member] | New IFRS [member] | |||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||||
Total debt balance Opening | 148,494 | 148,494 | |||
Change in accounting policy (Note 3.xxi) | 148,494 | ||||
Total debt balance end | 148,494 | ||||
Debentures [member] | |||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||||
Total debt balance Opening | 835,230 | 406,538 | 406,538 | ||
Acquisitions / Issuance | 400,000 | 400,000 | 400,000 | ||
Payments | (400,000) | (11,815) | |||
Repurchase | (64,717) | ||||
Interest accrued | 20,128 | 29,284 | 40,507 | 6,538 | |
Interest paid | (51,948) | ||||
Total debt balance end | R$ 338693 | 835,822 | 835,230 | 406,538 | |
Debentures [member] | New IFRS [member] | |||||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||||
Total debt balance Opening | R$ 406538 | R$ 406538 | |||
Total debt balance end | R$ 406538 |
Cash Flow Information - Additio
Cash Flow Information - Additional Information (Detail) R$ in Thousands | 9 Months Ended |
Sep. 30, 2020BRL (R$) | |
Disclosure of reconciliation of liabilities arising from financing activities [abstract] | |
Non cash business acquisitions through accounts payables and contingent consideration | R$ 28183 |
Non cash acquisition of investment through accounts payables and contingent consideration | R$ 492800 |