Cover
Cover | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2021 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-39155 |
Entity Registrant Name | XP Inc. |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Av. Chedid Jafet, 75, Torre Su |
Entity Address, Address Line Two | 30th floor |
Entity Address, City or Town | Vila Olímpia |
Entity Address, Country | BR |
Entity Address, Postal Zip Code | 04551-065 |
Title of 12(b) Security | Class A common shares, par value US$0.00001 per share |
Trading Symbol | XP |
Security Exchange Name | NASDAQ |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Entity Central Index Key | 0001787425 |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | Av. Chedid Jafet, 75, Torre Sul |
Entity Address, Address Line Two | 30th floor |
Entity Address, City or Town | Vila Olímpia |
Entity Address, Country | BR |
Entity Address, Postal Zip Code | 04551-065 |
Contact Personnel Name | Bruno Constantino Alexandre dos Santos |
City Area Code | +55 (11) |
Local Phone Number | 3075-0429 |
Class A Common Share | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 424,153,735,000 |
Class B Common Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 135,394,989,000 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers Auditores Independentes Ltda. |
Auditor Firm ID | 1351 |
Auditor Location | São Paulo, Brazil |
Consolidated balance sheets
Consolidated balance sheets R$ in Thousands, $ in Thousands | Dec. 31, 2021BRL (R$) | Dec. 31, 2020BRL (R$) |
Statement of financial position [abstract] | ||
Cash | R$ 2485641 | R$ 1954788 |
Financial assets | 127,745,263 | 90,190,827 |
Fair value through profit or loss | 69,123,669 | 57,149,446 |
Securities | 58,179,955 | 49,590,013 |
Derivative financial instruments | 10,943,714 | 7,559,433 |
Fair value through other comprehensive income | 32,332,377 | 19,039,044 |
Securities | 32,332,377 | 19,039,044 |
Evaluated at amortized cost | 26,289,217 | 14,002,337 |
Securities | 2,238,807 | 1,828,704 |
Securities purchased under agreements to resell | 8,894,531 | 6,627,409 |
Securities trading and intermediation | 1,405,651 | 1,051,566 |
Accounts receivable | 469,086 | 506,359 |
Loan operations | 12,819,627 | 3,918,328 |
Other financial assets | 461,515 | 69,971 |
Other assets | 4,688,125 | 1,760,999 |
Recoverable taxes | 153,316 | 127,623 |
Rights-of-use assets | 284,509 | 183,134 |
Prepaid expenses | 3,982,750 | 1,393,537 |
Other | 267,550 | 56,705 |
Deferred tax assets | 1,273,069 | 505,046 |
Investments in associates and joint ventures | 2,013,365 | 699,907 |
Property and equipment | 313,964 | 204,032 |
Goodwill and Intangible assets | 820,975 | 713,562 |
Total assets | 139,340,402 | 96,029,161 |
Financial liabilities | 91,358,151 | 70,600,989 |
Fair value through profit or loss | 14,573,385 | 10,056,806 |
Securities | 2,665,202 | 2,237,442 |
Derivative financial instruments | 11,908,183 | 7,819,364 |
Evaluated at amortized cost | 76,784,766 | 60,544,183 |
Securities sold under repurchase agreements | 26,281,345 | 31,839,344 |
Securities trading and intermediation | 15,597,555 | 20,303,121 |
Financing instruments payable | 24,429,086 | 5,551,849 |
Accounts payables | 867,526 | 859,550 |
Borrowings | 1,928,782 | 284,087 |
Other financial liabilities | 7,680,472 | 1,706,232 |
Other liabilities | 33,533,688 | 14,522,206 |
Social and statutory obligations | 1,022,212 | 667,448 |
Taxes and social security obligations | 549,651 | 435,849 |
Private pension liabilities | 31,921,400 | 13,387,913 |
Provisions and contingent liabilities | 29,308 | 19,711 |
Other | 11,117 | 11,285 |
Deferred tax liabilities | 28,934 | 8,352 |
Total liabilities | 124,920,773 | 85,131,547 |
Equity attributable to owners of the Parent company | 14,416,836 | 10,894,609 |
Issued capital | 23 | 23 |
Capital reserve | 14,923,315 | 10,663,942 |
Other comprehensive income | (334,563) | 230,644 |
Treasury shares | (171,939) | 0 |
Non-controlling interest | 2,793 | 3,005 |
Total equity | 14,419,629 | 10,897,614 |
Total liabilities and equity | R$ 139340402 | R$ 96029161 |
Consolidated statements of inco
Consolidated statements of income and of comprehensive income - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Profit or loss [abstract] | |||
Net revenue from services rendered | R$ 6196465 | R$ 5016488 | R$ 3595772 |
Net income (loss) from financial instruments at amortized cost and at fair value through other comprehensive income | (1,559,464) | 183,393 | 199,947 |
Net income from financial instruments at fair value through profit or loss | 7,440,111 | 2,951,724 | 1,332,089 |
Total revenue and income | 12,077,112 | 8,151,605 | 5,127,808 |
Operating costs | (3,430,109) | (2,645,359) | (1,596,650) |
Selling expenses | (227,483) | (134,915) | (155,115) |
Administrative expenses | (4,692,698) | (3,013,598) | (1,891,481) |
Other operating income (expenses), net | 324,354 | 171,053 | 153,357 |
Expected credit losses | (92,560) | (55,564) | (9,410) |
Interest expense on debt | (135,732) | (52,671) | (84,400) |
Share of profit or (loss) in joint ventures and associates | (7,710) | 862 | 0 |
Income before income tax | 3,815,174 | 2,421,413 | 1,544,109 |
Income tax expense | (222,714) | (339,924) | (454,625) |
Net income for the year | 3,592,460 | 2,081,489 | 1,089,484 |
Items that can be subsequently reclassified to income | |||
Foreign exchange variation of investees located abroad | 20,977 | 57,439 | 6,823 |
Gains (losses) on net investment hedge | (18,758) | (60,563) | (7,133) |
Changes in the fair value of financial assets at fair value through other comprehensive income | (549,017) | 24,203 | 698 |
Other comprehensive income (loss) for the period, net of tax | (546,798) | 21,079 | 388 |
Total comprehensive income for the year | 3,045,662 | 2,102,568 | 1,089,872 |
Net income attributable to: | |||
Owners of the Parent company | 3,589,416 | 2,076,430 | 1,080,484 |
Non-controlling interest | 3,044 | 5,059 | 9,000 |
Total comprehensive income attributable to: | |||
Owners of the Parent company | 3,042,618 | 2,097,509 | 1,080,872 |
Non-controlling interest | R$ 3044 | R$ 5059 | R$ 9000 |
Earnings per share from total income attributable to the ordinary equity holders of the company | |||
Basic earnings per share (in R$ per share) | R$ 6.4211 | R$ 3.7597 | R$ 2.1125 |
Diluted earnings per share (in R$ per share) | R$ 6.2588 | R$ 3.7138 | R$ 2.1115 |
Consolidated statements of chan
Consolidated statements of changes in equity - BRL (R$) R$ in Thousands | Total | Issued Capital | Additional paid-in capital | Other Reserves | Other comprehensive income | Retained Earnings | Treasury shares | Total | Non-Controlling interest |
Balance at beginning of period at Dec. 31, 2018 | R$ 2091712 | R$ 21 | R$ 927895 | R$ 947696 | R$ 209165 | R$ 0 | R$ 0 | R$ 2084777 | R$ 6935 |
Net income for the year | 1,089,484 | 1,080,484 | 1,080,484 | 9,000 | |||||
Other comprehensive income, net | 388 | 388 | 388 | ||||||
Proceeds from the issuance of shares | 4,504,826 | 2 | 4,504,824 | 4,504,826 | |||||
Transactions costs from proceeds from the issuance of shares | (22,824) | (22,824) | (22,824) | ||||||
Share based plan | 5,371 | 5,371 | 5,371 | ||||||
Other changes in equity | (1,855) | 374 | 374 | (2,229) | |||||
Transfer to capital reserves | 0 | 580,484 | (580,484) | ||||||
Dividends distributed | (511,143) | (500,000) | (500,000) | (11,143) | |||||
Balance at end of period at Dec. 31, 2019 | 7,155,959 | 23 | 5,409,895 | 1,533,551 | 209,927 | 0 | 0 | 7,153,396 | 2,563 |
Net income for the year | 2,081,489 | 2,076,430 | 2,076,430 | 5,059 | |||||
Other comprehensive income, net | 21,079 | 21,079 | 21,079 | ||||||
Proceeds from the issuance of shares | 1,412,930 | 1,412,930 | 1,412,930 | ||||||
Transactions costs from proceeds from the issuance of shares | (1,649) | (1,649) | (1,649) | ||||||
Share based plan | 232,791 | 232,785 | 232,785 | 6 | |||||
Other changes in equity | 582 | (362) | (362) | 944 | |||||
Transfer to capital reserves | 0 | 2,076,430 | (2,076,430) | ||||||
Dividends distributed | (5,567) | (5,567) | |||||||
Balance at end of period at Dec. 31, 2020 | 10,897,614 | 23 | 6,821,176 | 3,842,766 | 230,644 | 0 | 0 | 10,894,609 | 3,005 |
Net income for the year | 3,592,460 | 3,589,416 | 3,589,416 | 3,044 | |||||
Other comprehensive income, net | (546,798) | (546,798) | (546,798) | ||||||
Proceeds from the issuance of shares | 112,642 | 112,642 | 112,642 | ||||||
Share based plan | 561,457 | 561,455 | 561,455 | 2 | |||||
Other changes in equity | (22,781) | (4,140) | (18,409) | (22,549) | (232) | ||||
Treasury shares | (171,939) | (171,939) | (171,939) | ||||||
Transfer to capital reserves | 0 | 3,589,416 | (3,589,416) | ||||||
Dividends distributed | (3,026) | (3,026) | |||||||
Balance at end of period at Dec. 31, 2021 | R$ 14419629 | R$ 23 | R$ 6821176 | R$ 8102139 | R$ 334563 | R$ 0 | R$ 171939 | R$ 14416836 | R$ 2793 |
Consolidated statements of cash
Consolidated statements of cash flows - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | |||
Income before income tax | R$ 3815174 | R$ 2421413 | R$ 1544109 |
Adjustments to reconcile income before income taxes | |||
Depreciation of property, equipment and right-of-use assets | 68,618 | 67,422 | 53,080 |
Amortization of intangible assets | 163,112 | 75,839 | 37,630 |
Loss or write-off of property, equipment, intangible assets and leases, net | 20,367 | 73,140 | 11,245 |
Share of profit or (loss) in joint ventures and associates | 7,710 | (862) | 0 |
Expected credit losses on financial assets | 92,560 | 55,564 | 9,410 |
(Reversal of) Provision for contingencies, net | 5,325 | 2,045 | (1,601) |
Net foreign exchange differences | 506,510 | 1,478 | 3,636 |
Share based plan | 561,457 | 232,791 | 5,371 |
Interest accrued | 181,731 | 56,923 | 86,862 |
Changes in assets and liabilities | |||
Securities (assets and liabilities) | (21,904,316) | (42,954,505) | (20,188,931) |
Derivative financial instruments (assets and liabilities) | 674,837 | 1,023,937 | 825,719 |
Securities trading and intermediation (assets and liabilities) | (5,086,154) | 10,605,139 | 4,201,246 |
Securities purchased under agreements to resell | (2,269,321) | 2,862,311 | (2,919,480) |
Accounts receivable | 37,160 | (46,247) | (243,893) |
Loan operations | (8,918,608) | (3,925,042) | (386) |
Prepaid expenses | (2,589,213) | (1,303,853) | 7,040 |
Other assets and other financial assets | (674,697) | (23,078) | (14,162) |
Securities sold under repurchase agreements | (5,557,999) | 16,200,937 | 8,997,713 |
Accounts payable | (133,576) | 564,324 | 132,235 |
Financing instruments payable | 14,408,581 | 5,126,930 | 89,669 |
Social and statutory obligations | 354,764 | 174,725 | 241,033 |
Tax and social security obligations | 278,609 | 182,391 | (9,223) |
Private pension liabilities | 18,533,487 | 9,628,823 | 3,743,031 |
Other liabilities and other financial liabilities | 4,271,361 | 1,000,007 | 8,828 |
Cash from operations | (3,152,521) | 2,102,552 | (3,379,819) |
Income tax paid | (783,816) | (518,971) | (402,574) |
Contingencies paid | (2,565) | (1,629) | (3,172) |
Interest paid | (81,427) | (71,224) | (28,427) |
Net cash flows from (used in) operating activities | (4,020,329) | 1,510,728 | (3,813,992) |
Investment activities | |||
Acquisition of intangible assets | (217,569) | (146,368) | (88,949) |
Acquisition of property and equipment | (135,444) | (145,164) | (72,499) |
Acquisition of subsidiaries, net of cash acquired | (40,857) | (62,443) | 0 |
Investment in associates and joint ventures | (756,857) | (228,035) | 0 |
Net cash flows used in investing activities | (1,150,727) | (582,010) | (161,448) |
Financing activities | |||
Proceeds from borrowings | 1,570,639 | 0 | 0 |
Acquisitions of debt securities issued | 4,191,280 | 0 | 400,000 |
Payments of borrowings and lease liabilities | (76,371) | (152,868) | (123,332) |
Payment of debt securities | (177,826) | (464,717) | (11,815) |
Dividends paid to owners of the parent | 0 | 0 | (500,000) |
Proceeds from the issuance of shares | 0 | 1,411,281 | 4,482,002 |
Transactions with non-controlling interests | (231) | 582 | (1,855) |
Dividends paid to non-controlling interests | (3,026) | (5,567) | (11,143) |
Proceeds from SPAC issuance of shares | 1,134,797 | 0 | 0 |
Net cash flows from financing activities | 6,639,262 | 788,711 | 4,233,857 |
Net increase (decrease) in cash and cash equivalents | 1,468,206 | 1,717,429 | 258,417 |
Cash and cash equivalents at the beginning of the fiscal year | 2,660,388 | 887,796 | 626,863 |
Effects of exchange rate changes on cash and cash equivalents | (376,733) | 55,163 | 2,516 |
Cash and cash equivalents at the end of the fiscal year | 3,751,861 | 2,660,388 | 887,796 |
Cash | 2,485,641 | 1,954,788 | 109,922 |
Securities purchased under agreements to resell presented as cash equivalents | 1,071,328 | 593,673 | 654,057 |
Interbank certificate deposits | R$ 194892 | R$ 111927 | R$ 123817 |
Operations
Operations | 12 Months Ended |
Dec. 31, 2021 | |
Operations [Abstract] | |
Operations | 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. The Group carried out a corporate reorganization in order to prepare the structure for the Initial Public Offering of its shares. As a result, XP Inc. was incorporated in 2019 and is currently the entity which is registered with the U.S. Securities and Exchange Commission (“SEC”) and for which these financial statements are presented. XP Inc. is a holding company controlled by XP Controle Participações S.A. and XP Control LLC, companies which holds together 68.28% of voting rights and whose is ultimately controlled by a group of individuals. XP Inc. and its subsidiaries (collectively, “Group” or “XP Group”) is a leading, technology-driven financial services platform and a trusted provider of low-fee financial products and services in Brazil. XP Group are principally engaged in providing its customers, represented by individuals and legal entities in Brazil and abroad, various financial products, services, digital content and financial advisory services, mainly acting as broker-dealer, including securities brokerage, private pension plans, commercial and investment banking products such as loan operations, transactions in the foreign exchange markets and deposits, through our brands that reach clients directly and through network of Independent Financial Advisers (“IFAs”). These consolidated financial statements were approved by the Board of Director’s meeting on April 5, 2022. 1.1 Follow-on public offering 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. On December 7, 2020, XP Inc closed of its underwritten secondary public offering of 31,654,894 Class A common shares, 7,130,435 of which were issued and sold by the Company and 24,524,459 of which were sold by ITB Holding Brasil Participações Ltda. The offering was made pursuant to a registration statement on Form F-1 filed with the SEC. The offering price per Class A common share was US$39.00, resulting in gross proceeds of US$283,087 thousand (or R$1,444,530) to XP Inc, deducting R$31,599 thousand as underwriting discounts and commissions. Additionally, the Company incurred in R$7,271 thousand regarding other offering expenses, of which R$5,622 thousand was recognized directly in income statements and an amount of R$1,649 in equity as transaction costs. 1.2 Spin-off of Itaú’s investment in XP Inc. In January 2021, XP Inc. reached an agreement with Itausa S.A. in connection with Itaú’s spin-off of its investment in XP Inc., and entered into two agreements regarding the corporate reorganization announced by Itaú Unibanco Holding S.A. on December 31, 2020 (Itaú Agreements).The U.S. Federal Reserve Board’s (FED) and the Brazilian Central Bank (BACEN) approved the legal and accounting segregation of the Itaú’s investments in XP Inc. to XPart on May 31, 2021 and July 26, 2021 respectively. On June 22, 2021, XP Inc. filed a registration statement on Form F-4 with the U.S. Securities and Exchange Commission, or the “SEC” as part of the Itaú spin-off of its investment in XP Inc. The prospectus relates to the Class A common shares, or “XP Shares,” of XP Inc., including Class A common shares in the form of Brazilian Depositary Receipts of XP (each representing one XP Share), or the “XP BDRs.” On October 1, 2021, the corporate reorganization was completed and XPart ceased to exist. On October 4, 2021, XP Inc. started trading its BDR (“Brazilian Depositary Receipts”) under symbol XPBR31, on Brazilian stock exchange B3 (Brasil, Bolsa, Balcão). The impact of this transaction is presented in Note 25 (b) and (c). |
Basis of preparation of the fin
Basis of preparation of the financial statements | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Basis Of Preparation Of Financial Statements Abstract [Abstract] | |
Basis of preparation of the financial statements | 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$”),our functional currency, and all amounts disclosed in the financial statements and notes have been rounded off to the nearest thousand currency units unless otherwise stated. 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) Changes to IFRS The following amendments became effective as at 1 January 2021: • Interest Rate Benchmark Reform – Phase 2 – Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16; • Covid-19-Related Rent Concessions beyond 30 June 2021 Amendment to IFRS 16; The adoption of the amendments listed above did not have a material impact on these consolidated financial statements. (iii) New standards and interpretations not yet adopted Certain new accounting standards and interpretations have been published that are not mandatory for the 31 December 2021 reporting period and have not been early adopted by the Group. These standards are not expected to have a material impact on the consolidated financial statements. (iv) Basis of consolidation The consolidated financial statements comprise the consolidated balance sheets of the Group as of December 31, 2021 and 2020 and the consolidated statements of income and comprehensive income, consolidated statements of cash flows and consolidated statements of changes in equity for each of the years ended December 31, 2021, 2020 and 2019. a) Subsidiaries 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 the results and equity of subsidiaries are shown separately in the consolidated statement of income and of comprehensive income, statement of changes in equity and balance sheet respectively. b) 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. c) Interests in associates and joint ventures measured at fair value The Group has investments in associates measured at fair value in accordance with item 18 of IAS 28 – Investments in Associates and Joint Ventures. These investments are held through XP FIP Managers, which is considered to be a venture capital organization. In determining whether the fund meets the definition of a venture capital organization, management considered the investment portfolio features and objectives. The portfolio classified in this category has the objective to generate growth in the value of its investments in the medium term and have an exit strategy. Additionally, the performance of these portfolio is evaluated and managed considering a fair value basis of each investment. d) Joint ventures The Group has joint ventures whereby the parties that have joint control of the arrangement have rights to the net assets. e) Equity method Under the equity method of accounting, the investments are initially recognized at cost and adjusted thereafter to recognize 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 recognize as a reduction in the carrying amount of the investment. Unrealized 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. Unrealized 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. (v) 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 28), 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 28 (c) for a breakdown of revenues and income and selected assets from external customers by country of domicile. (vi) 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. All other foreign exchange gains and losses are presented in the statement of income on a net basis within interest expense on debt. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. For example, translation differences on non-monetary assets and liabilities such as equities held at fair value through profit or loss are recognized in profit or loss as part of the fair value gain or loss and translation differences on non-monetary assets such as equities classified as at fair value through other comprehensive income are recognized in other comprehensive income. (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 income 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. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of significant accounting policies | 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 equity interest in the subsidiary. 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 interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets. Acquisition-related costs are expensed as incurred. The excess of the consideration transferred, amount of any non-controlling interest in the acquired entity, and acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognized directly in profit or loss as a bargain purchase. 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 acquirer 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 Group’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 Group’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 profit or loss. The net gain or loss recognized in profit or loss includes any dividend or interest earned on the financial asset. Financial assets measured at FVPL consist of Securities owned and sold short. A derivative embedded in a hybrid contract, with a financial liability or non-financial host, is separated from the host and accounted for as a separate derivative if: (i) the economic characteristics and risks are not closely related to the host; a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative; (ii) and the hybrid contract is not measured at FVPL. Embedded derivatives are measured at fair value with changes in fair value recognized in profit or loss. Reassessment only occurs if there is either a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required or a reclassification of a financial asset out of the FVPL category. 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. Investments held in trust account The Group has a certain class of securities owned by one of our subsidiaries, which qualify as financial instruments, primarily due to their short-term nature. These securities are classified as FVPL. The Group’s investments held in the trust account are comprised of money market funds and are recognized at fair value with the changes in fair value recognized in the consolidated statements of income. The estimated fair value of the investments held in the trust account is determined using available market information. (i) 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 profit or loss. 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 basis. Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognized as income in the profit or loss 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. (ii) 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', ‘Loan operations’, 'Accounts receivable' and 'Other financial assets. The Group 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. Expected credit loss on financial assets The Group recognizes 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. The Group classifies assets in three stages to measure the expected credit loss, in which the financial assets migrate from one stage to another in accordance with the changes in credit risk. Stage 1: overdue less than 30 days. It is understood that a financial instrument in this stage does not present a significant increase in the risk since initial recognition. The provision for this asset represents the expected loss resulting from possible noncompliance in the next 12 months. Stage 2: overdue 30 days. If a significant increase in the risk is identified from the initial recognition, and no deterioration is realized, the financial instrument falls within this stage. In this case, the amount related to the provision for expected loss reflects the estimated loss of the financial instrument remaining life (lifetime). Stage 3: overdue 90 days. 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. For accounts receivables, and other financial 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. 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’, 'Derivative financial instruments', 'Securities purchased under agreements to resell', 'Securities trading and intermediation', long-term debts such as 'Borrowings and ‘Financing Instruments payable – Debt securities', '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 profit or loss. 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) Financial liabilities designated at FVPL Classification and subsequent measurement The Group applied the fair value option as an alternative measurement for selected financial liabilities. Financial liabilities can be irrevocably designated as measured at FVPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases, or a group of financial instruments is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy. The amount of change in the fair value of the financial liabilities designated at FVPL that is attributable to changes in the credit risk of that liabilities shall be presented in other comprehensive income. See more information in Note 6. (iii) 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. This category generally applies to Securities sold under repurchase agreements, ‘Securities trading and intermediation’, 'Borrowings', 'Financing Instruments Payable', 'Accounts payables', ‘Lease liabilities’ and 'Other financial liabilities'. (iv) Commitments subject to possible redemption XPAC Acquisition Corp. redeemable shares The Group accounts for the common stock subject to redemption in cash held by the non-controlling interest holders of XPAC Acquisition Corp., a consolidated subsidiary, as a financial liability measured at amortized cost. The instrument is initially recognized at fair value, net of derivative warrant liabilities component and the corresponding eligible transaction costs. The warrant component issued to the non-controlling interest holders of XPAC Acquisition Corp. are separately accounted as derivatives and measured at fair value with the change in fair value recorded in the statement of income. 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 profit or loss. 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 34. 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. Derivatives are initially recognized at fair value on the date a derivative contract is entered into, and they are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged. The group designates certain derivatives as either: • hedges of the fair value of recognized assets or liabilities or a firm commitment (fair value hedges), or • hedges of a net investment in a foreign operation (net investment hedges). At inception of the hedge relationship, the group documents the economic relationship between hedging instruments and hedged items, including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of hedged items. The group documents its risk management objective and strategy for undertaking its hedge transactions. 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. a) 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. b) Derivative warrant liabilities The Group evaluates if the warrants issued in connection with the Initial Public Offering (the “Public Warrants”) and the Private Placement Warrants issued by XPAC Acquisition Corp. are derivatives or contain features that qualify as embedded derivatives in accordance with IFRS 9 – Financial Instruments. The Group’s derivatives instruments are recorded at Financial instruments measure at fair value through profit or loss. Accordingly, the Group recognizes the warrant as financial liabilities at fair value and remeasures the warrants at fair value at each reporting period. The liabilities are subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the Group’s consolidated statements of income. The fair value has been measured based on the listed market price of such warrants. (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 customers 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 expected credit losses. Significant financial difficulties of the customer, probability that the customer will enter bankruptcy or financial reorganization, and default in payments are all considered indicators that a loss allowance may be required. If the credit risk increases to the point that it is considered to be credit impaired, interest income will be calculated based on the gross carrying amount adjusted for the loss allowance. A significant increase in credit risk is defined by management as any contractual payment which is more than 30 days past due. 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 were immaterial for all periods presented. (vi) Loan operations Loan operations consist in arrangements under which clients can borrow stipulated amounts under defined terms and conditions. They are subsequently measured at amortized cost using the effective interest method, less expected credit loss. See note 10 for further information about the Group’s accounting for Loan Operations and note 3(vi) for a description of the Group’s Expected Losses on Financial Assets. Interest income from these financial assets is included in Net income from financial instruments at amortized cost using the effective interest rate method. Any gain or loss arising on derecognition of the loan operations is recognized directly in profit or loss and presented in Note 14. Expected credit losses are presented as a separate line item in profit or loss. (vii) 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. Prepaid expenses are amortized in profit or loss in the period in which the benefits of such incentives are realized. (viii) Leases Right-of-use assets The Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognized right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are subject to impairment. 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 fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expense in the period on which the event or condition that triggers the payment occurs. 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 fixed lease payments or a change in the assessment to purchase the underlying asset. Short-term leases and leases of low-value assets 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 assets recognition exemption to leases that are considered of low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term. Significant judgement in determining the lease term of contracts with renewal options The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. 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). (ix) 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 follow |
Significant accounting judgemen
Significant accounting judgements, estimates and assumptions | 12 Months Ended |
Dec. 31, 2021 | |
Significant and Estimated Judgements [Abstract] | |
Significant accounting judgements, estimates and assumptions | Significant accounting judgements, estimates and assumptions 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) Expected credit losses on financial assets The expected credit losses 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 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. (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, 2021, the Group did not identify evidence that could indicate that useful lives described in Note 3 ((iv) and (v)) should be revised. Therefore, the Group concluded that changes to the estimated useful life was not deemed necessary. (v) Impairment of non-financial assets, including goodwill 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 proceedings 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). (vii) Share-based payments Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which depends on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option or appreciation right. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited condensed financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. |
Group structure
Group structure | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of subsidiaries [abstract] | |
Group structure | 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 incorporation Principal activities 2021 2020 2019 Directly controlled XP Investimentos S.A. Brazil Holding 100.00 % 100.00 % — XPAC Sponsor LLC (v) Cayman Special Purpose Acquisition (SPAC) Sponsor 100.00 % — — XProject LTD (v) Cayman Holding 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 Vida e Previdência S.A. (iv) Brazil Private pension and insurance 100.00 % 100.00 % 100.00 % Banco XP S.A. Brazil Multipurpose bank 100.00 % 100.00 % 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 100.00 % 100.00 % 99.99 % Tecfinance Informática e Projetos de Sistemas Ltda. Brazil Rendering of IT services 99.73 % 99.76 % 99.76 % XP Corretora de Seguros Ltda. Brazil Insurance Broker 99.99 % 99.99 % 99.99 % XP Gestão de Recursos Ltda. Brazil Asset management 94.90 % 94.80 % 93.70 % XP Finanças Assessoria Financeira Ltda. Brazil Investment consulting service 99.99 % 99.99 % 99.99 % Infostocks Informações e Sistemas Ltda. Brazil Mediation of information systems 99.99 % 99.99 % 99.99 % XP Advisory Gestão Recursos Ltda. Brazil Asset management 99.54 % 99.50 % 99.57 % XP Vista Asset Management Ltda. Brazil Asset management 99.50 % 99.45 % 99.42 % XP Controle 4 Participações S.A. Brazil Insurance holding 100.00 % 100.00 % 100.00 % Leadr Serviços Online Ltda. (vi) Brazil Social media — 99.99 % 99.99 % Spiti Análise Ltda. (ii) Brazil Investment Advisor — % 100.00 % 100.00 % % of Group’s interest (i) Entity name Country of incorporation Principal activities 2021 2020 2019 Chamaleon Bravery Unipessoal LDA (vi) Portugal Investment Advisor — 100.00 % 100.00 % XP Investments UK LLP UK Inter-dealer broker and Organized Trading Facility (OTF) 100.00 % 100.00 % 100.00 % Sartus Capital LTD UK Investment advisor 100.00 % 100.00 % 100.00 % XP Private (Europe) S.A. Switzerland Investment advisor — 100.00 % 100.00 % XP Holding UK Ltd UK International financial holding 100.00 % 100.00 % 100.00 % XP Investments US, LLC USA Broker-dealer 100.00 % 100.00 % 100.00 % Xperience Market Services LLC (vi) USA Non-operational — 100.00 % 100.00 % 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 PE Gestão de Recursos Ltda. Brazil Asset management 98.70 % 98.70 % — XP LT Gestão de Recursos Ltda. Brazil Asset management 92.00 % 92.00 % — Carteira Online Controle de Investimentos Ltda. - ME (iii) Brazil Investment consolidation platform 99.99 % 99.99 % — Antecipa S.A. (iii) Brazil Receivables Financing Market 100.00 % 100.00 % — XP Allocation Asset Management Ltda. Brazil Asset management 99.99 % 99.99 % — Track Índices Consultoria Ltda. Brazil Index Provider 100.00 % 100.00 % — XP Eventos Ltda. Brazil Media and Events 99.90 % 99.00 % — DM10 Corretora de Seguros Ltda. (iii) Brazil Insurance Broker 100.00 % 100.00 % — XP Comercializadora de Energia Ltda. (v) Brazil Energy trading 100.00 % — — Instituto XP (v) Brazil Non-profit entity 100.00 % — — XPAC Acquisition Corp. (vii) (v) US Special Purpose Acquisition (SPAC) 20.00 % — — XP Distribuidora de Títulos e Valores Mobiliários (v) Brazil Securities dealer 100.00 % — — Instituto de Gestão e Tecnologia da Informação Ltda. (v) (iii) Brazil Educational content services 100.00 % — — Xchange Intermediação S.A. (v) Brazil Digital Assets 100.00 % — — 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 (vi) Brazil Investment fund — 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 (vi) 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 % 100.00 % Frade III Fundo de Investimento em Cotas de Fundo de Investimento Multimercado Crédito Privado Brazil Investment fund 100.00 % 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 Brazil Investment fund 100.00 % 100.00 % — NIMROD Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior Brazil Investment fund 100.00 % 100.00 % — XP High Yield Fund SP Cayman Investment fund 100.00 % 100.00 % — XP International Fund SPC Cayman Investment fund 100.00 % 100.00 % — XP Managers Fundo de Investimento em Participações Multiestratégia Brazil Investment fund 100.00 % 100.00 % — XP Alesia Fund SP CL Shares - Brazil Internacional Fund SPC. (v) Cayman Investment fund 100.00 % — — Newave Fundo de Investimento em Participações Multiestratégia. (v) Brazil Investment fund 100.00 % — — % of Group’s interest (i) Entity name Country of incorporation Principal activities 2021 2020 2019 Endor Fundo de Investimento em Participações Multiestratégia Investimento no Exterior (v) 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) New subsidiaries acquired in 2020 and 2021. See further details in Note 5 (ii) below. (iv) 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. (v) New subsidiaries and investment funds incorporated in the year. (vi) Subsidiaries and investment funds closed or consolidated by other funds during the year. (vii) New subsidiaries which the Group holds operational control. The operational control refers to relevant rights the Company have over the subsidiary, that includes, among other topics, the right to nominate the directors and propose the target entity for merger. (ii) Business combinations and other developments (a) Acquisitions in 2021 Instituto de Gestão e Tecnologia da Informação Ltda (“IGTI”) On November 5, 2021 the Group entered into an agreement to acquire 100% of total share capital of Instituto de Gestão e Tecnologia da Informação LTDA (“IGTI”). The acquisition was concluded on the same date. IGTI operates in the development and coordination of teaching activities, scientific research activities and educational services. The acquisition of IGTI was recently completed and the allocation of the purchase price to acquire 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. The total consideration paid is R$46,382, out of which: i) R$40,000 paid in cash, ii) R$5,000 payable in six consecutive annual installments from 2022 to 2027 adjusted by the Interbank Certificates of Deposit (“CDI”) rate and iii) R$1,381 as a fair value of the contingent consideration. This acquisition is not considered material for XP Inc. consolidated financial statements. The preliminary purchase price was mostly allocated to goodwill, representing the value of expected synergies arising from the acquisition. In addition, the Company incurred in direct costs for the business combinations which were expensed as incurred. Investments in XProject On August 23, 2021 the Group entered into an agreement, to acquire 100% of total share capital of UFUK Empreendimentos e Participações S.A. later referred to as XProject Participações S.A. The company is a holding which has an objective to acquire participation as a partner or a shareholder in other companies in Brazil and abroad. This acquisition is not considered material for XP Inc. consolidated financial statements. The purchase price is mostly allocated to goodwill, representing the value of expected synergies arising from the acquisition. Investments in XP Energia On May 4, 2021 the Group entered into an agreement to acquire 100% of total share capital of Solis Comercializadora de Energia Ltda. later denominated XP Comercializadora de Energia Ltda (“XP Energia”). The company's objective is to operate in the wholesale electricity trade, through brokerage, representation, intermediation, purchase, sale, import and export; provision of intermediation services between energy buyers and sellers, among other related services. This acquisition is not considered material for XP Inc. consolidated financial statements. The purchase price is mostly allocated to goodwill, representing the value of expected synergies arising from the acquisition. The results of these operations of the businesses acquired for periods prior to acquisition dates, individually and in the aggregate, were not material to the Company´s consolidated statements of income and, accordingly, pro forma information has not been presented. (b) Acquisitions in 2020 The fair value of the identifiable assets acquired and liabilities assumed as of each acquisition date were: 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: Fliper Antecipa DM10 Total Assets Cash 617 1,917 275 2,809 Other assets — 95 411 506 Intangible assets 2,869 10,037 2,950 15,856 3,486 12,049 3,636 19,171 Liabilities Other liabilities (6,159) (198) (1,522) (7,879) Total identifiable net assets at fair value (2,673) 11,851 2,114 11,292 Goodwill arising on acquisition (*) 39,832 20,732 14,886 75,450 Contingent consideration (**) 30,300 8,732 — 39,032 Purchase consideration transferred (*) 67,459 41,315 17,000 125,774 Analysis of cash flows on acquisition Net cash acquired with the subsidiary (617) (1,917) (275) (2,809) Payable in installments — (14,636) (6,000) (20,636) Contingent consideration (30,300) (8,732) — (39,032) Net of cash flow on acquisition (investing activities) 36,542 16,030 10,725 63,297 From R$63,297 of net cash flow on acquisition, R$62,443 was settled during 2020, and R$854 was settled in 2021. * During the measurement period, the purchase consideration transferred for the acquisitions was adjusted to R$125,774 (R$100,923 previously disclosed) as a result of purchase price adjustments. Accordingly, goodwill was updated to R$2,233. ** During the measurement period, the preliminary contingent consideration for the acquisitions was adjusted to R$39,032 (R$14,183 previously disclosed) as a result of a fair value adjustment of R$24,849. Assets Amount Method Expected amortization period Customer list 2,181 Multi-period excess earning method 5.5 years Trademark 3,799 Relief from royalty 5 years Technology 9,876 Relief from royalty 5 years For the concluded acquisitions, the total consideration paid is R$125,774, being: i) R$62,443 paid in cash, ii) R$21,487 payable in three consecutive annual installments from 2020 to 2022 adjusted by the Interbank Certificates of Deposit (“CDI”) rate and iii) R$39,032 as a fair value of the contingent consideration. The goodwill recognized includes the value of expected synergies arising from the acquisition, which is not separately recognized. In addition, the Company incurred direct costs for the business combinations which were expensed as incurred. The results of operations of the businesses acquired for periods prior to acquisitions, individually and in the aggregate, were not material to the Company´s consolidated statements of income and, accordingly, pro forma information has not been presented. Acquisition of Carteira Online Controle de Investimentos Ltda.-ME (“Fliper”) On June 5, 2020, the Group entered into an agreement to acquire 100% of total share capital of Carteira Online Controle de Investimentos Ltda.-ME (“Fliper”). Fliper is an automated investment consolidation platform that offers its users connectivity and tools to perform intuitive and intelligent financial self-management. The transaction allows the Group 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 consummated, through approval of the Central Bank (BACEN). Acquisition of DM10 Corretora de Seguros e Assessoria Ltda. (“DM10”) On June 9, 2020, the Group entered into an agreement to acquire 100% of total share capital of DM10 Corretora de Seguros e Assessoria Ltda. (“DM10”). DM10 is a market place 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. On September 24, 2020, the acquisition was consummated, through approval of the Central Bank (BACEN). Acquisition of Antecipa S.A. (“Antecipa”) On June 29, 2020, the Group entered into an agreement, to 100% of total share capital of Antecipa S.A. (“Antecipa”). Antecipa is a digital platform focused on financing of receivables and offering an efficient alternative for companies to optimize its 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 the acquisition was consummated, through approval of the Central Bank (BACEN). Acquisition of Riza Capital Consultoria de Investimentos S.A (“Riza”) On December 23, 2020 the Group entered into an agreement, to acquire 100% of total share capital of Riza an independent financial advisory company. Riza has one of the most seasoned and respected teams in the segment, with experience in important financial institutions and active participation in some of the most relevant M&A transactions over the last decades. The transaction is aligned with XP Inc.’s strategy to reinforce its Capital Markets ecosystem. (c) Other developments a. SPAC Transactions On August 3, XPAC Acquisition Corp. (a subsidiary of XP Inc), completed its initial public offering (“IPO”), offering an aggregate price of R$1,134,797 which included the exercise of the underwriter over-allotment option a portion of shares. XPAC is a special purpose acquisition company, incorporated as a Cayman Islands exempted company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. As of 31 December 2021, we have not selected any business combination target, although we have initiated substantive discussions with some companies. Our expectation is to consummate the business combination as soon as the Group identify a target company. Therefore, the founders will have their shares converted into Class A shares, which shall be measured at fair value through profit and loss. The financial impact of this transaction on the consolidated financial statements are presented in Note 7.a.(iii), Note 8, and Note 20.b.(iv). b. Minority stake acquisitions |
Securities purchased (sold) und
Securities purchased (sold) under resale (repurchase) agreements | 12 Months Ended |
Dec. 31, 2021 | |
Securities purchased under agreements to resell [Abstract] | |
Securities purchased (sold) under resale (repurchase) agreements | Securities purchased (sold) under resale (repurchase) agreements a) Securities purchased under agreements to resell 2021 2020 Available portfolio 3,322,254 1,409,742 National Treasury Notes (NTNs) (i) 2,671,122 876,146 Financial Treasury Bills (LFTs) (i) — 452,714 National Treasury Bills (LTNs) (i) 544,546 44,093 Debentures (ii) 37,688 36,789 Real Estate Receivable Certificates (CRI) (ii) 43,397 — Financial credit bills (LF) 25,501 — Collateral held 5,574,846 5,218,037 National Treasury Bills (LTNs) (i) — 976,468 National Treasury Notes (NTNs) (i) 1,556,303 4,241,569 Debentures (ii) 906,519 — Real Estate Receivable Certificates (CRI) (ii) 2,586,893 — Financial credit bills (LF) 525,131 — Expected Credit Loss (iii) (2,569) (370) Total 8,894,531 6,627,409 (i) Investments in purchase and sale commitments collateral-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 9.15% p.a. (1.91% p.a. as of December 31, 2020). (ii) Refers to fixed-income securities issued by private companies. (iii) The reconciliation of gross carrying amount and the expected credit loss segregated by stages are presented in the Note 14. As of December 31, 2021, R$1,071,328 (December 31 , 2020 – R$593,673) from the total amount of available portfolio is presented as cash equivalents in the statements of cash flows. b) Securities sold under repurchase agreements 2021 2020 National Treasury Bills (LTNs) 3,325,188 18,318,498 National Treasury Notes (NTNs) 10,098,672 13,497,944 Financial Treasury Bills (LFTs) 7,515,712 — Debentures 553,953 22,902 Real Estate Receivable Certificates (CRI) 4,324,155 — Financial credit bills (LF) 463,665 — Total 26,281,345 31,839,344 As of December 31, 2021, securities sold under repurchase agreements were agreed with average interest rates of 9.14% p.a. (December 31, 2020 – 1.89% p.a.), with assets pledged as collateral. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Securities | 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: 2021 2020 Gross carrying amount Fair value Gross carrying amount Fair value Financial assets (i) At fair value through profit or loss Available portfolio 56,899,391 56,985,365 49,157,111 49,590,013 Brazilian government bonds 15,577,753 15,582,410 30,752,903 31,129,671 Investment funds 28,520,788 28,520,788 11,216,914 11,221,774 Stocks issued by public-held company 4,768,724 4,768,724 3,802,610 3,802,470 Debentures 4,493,406 4,522,150 1,111,595 1,114,967 Structured transaction certificate 235,794 270,225 485,012 515,960 Bank deposit certificates (ii) 352,770 356,313 371,455 372,329 Agribusiness receivables certificates 573,374 579,224 359,607 363,721 Certificate of real estate receivable 568,347 575,717 97,606 96,930 Financial credit bills 663,236 669,819 81,465 82,209 Others (iv) 1,145,199 1,139,995 877,944 889,982 Investments held in trust accounts 1,194,590 1,194,590 — — US government bonds (iii) 1,194,590 1,194,590 — — Total 58,093,981 58,179,955 49,157,111 49,590,013 (i) Financial assets include R$31,921,400 (December 31, 2020 – R$13,387,913) related to Specially Constituted Investment Fund (“FIE”) as presented in Note 23, out of which R$26,336,326 (December 31, 2020 – R$10,625,520) are Investments funds. (ii) Bank deposit certificates include R$194,892 (December 31, 2020 – R$111,927) presented as cash equivalents in the statements of cash flows. (iii) Related to investments received through IPO transactions derived by XPAC Acquisition Corp. These funds are restricted for use and may only be used for purposes of completing an initial business combination or redemption of public shares as set forth in XPAC Acquisition Corp. trust agreement. (iv) Mainly related to securities loaned. b) Securities at fair value through other comprehensive income are presented in the following table 2021 2020 Gross carrying amount Fair value Gross carrying amount Fair value Financial assets At fair value through other comprehensive income (i) National treasury bill 32,725,011 31,868,878 19,011,499 19,039,044 Bonds 458,755 463,499 — — Total 33,183,766 32,332,377 19,011,499 19,039,044 (i) Includes expected credit losses in the amount of R$7,527 (December 31,2020 – R$8,855). The reconciliation of gross carrying amount and the expected credit loss segregated by stages are presented in the Note 14. c) Securities evaluated at amortized cost are presented in the following table: 2021 2020 Gross carrying amount Book value Gross carrying amount Book value Financial assets At amortized cost (i) Bonds 1,871,273 1,868,776 1,829,791 1,828,704 Rural product note 328,638 328,638 — — Debentures 41,393 41,393 — — Total 2,241,304 2,238,807 1,829,791 1,828,704 (i) Include expected credit losses in the amount of R$2,497 (December 31,2020 – R$1,087). The reconciliation of gross carrying amount and the expected credit losses segregated by stages are presented in the Note 14. d ) Securities on the financial liabilities classified at fair value through profit or loss are presented in the following table: 2021 2020 Gross carrying amount Fair value Gross carrying amount Fair value Financial liabilities At fair value through profit or loss Securities loaned 2,146,398 2,146,398 2,237,442 2,237,442 e) Debentures designated at fair value through profit or loss are presented in the following table: On May 6, 2021, XP Investimentos, issued non-convertible Debentures, in the aggregate amount of R$500,018, with the objective of funding the Group’s working capital for the construction of our new headquarters “Vila XP” at São Roque, State of São Paulo and designated this instrument as fair value through profit or loss in order to align it with the Group’s risk management and investment strategy. The principal amount is due on April 10, 2036. The accrued interest is payable every month from the issuance date and is calculated based on the IPCA (brazilian inflation index) plus 5%p.a. 2021 2020 Gross carrying amount Fair Gross carrying amount Fair Financial liabilities At fair value through profit or loss Debentures 536,881 518,804 — — Unrealized gains/(losses) due to own credit risk for liabilities for which the fair value option has been elected are recorded in other comprehensive income. Gain/(losses) due to own credit risk were not material for the period ended of December 31, 2021. Determination of own credit risk for items for which the fair value option was elected The debenture’s own credit risk is calculated as the difference between its yield and its benchmark rate for similar Brazilian federal securities. e.1) Difference between aggregate fair value and aggregate remaining contractual principal balance outstanding The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of December 31, 2021 for instruments for which the fair value option has been elected. 2021 Contractual principal outstanding Fair value Fair value/(under) contractual principal outstanding Long-term debt Debentures 536,881 518,804 (18,077) f) Below is presented the securities classified by maturity: Assets Liabilities 2021 2020 2021 2020 Financial assets At fair value through PL and at OCI Current 47,431,624 34,572,107 2,146,398 2,237,442 Non-stated maturity 31,425,792 15,246,105 2,146,398 2,237,442 Up to 3 months 4,556,261 794,025 — — From 3 to 12 months 11,449,571 18,531,977 — — Non-current 43,088,235 34,065,805 518,804 — After one year 43,088,235 34,065,805 518,804 — Evaluated at amortized cost Current 1,891,889 1,829,791 — — Up to 3 months 1,698,760 1,623,487 — — From 3 to 12 months 193,129 206,304 — — Non-current 349,415 — — — After one year 349,415 — — — Total 92,761,163 70,467,703 2,665,202 2,237,442 The reconciliation of expected loss to financial assets at amortized cost – securities segregated by stage according with to IFRS 9 is demonstrated in Note 14. Following are the breakdown of the carrying amount of loan operations by class, sector of debtor, maturity and concentration: Loans by type 2021 2020 Pledged asset loan Retail 7,296,172 2,698,018 Corporate 1,887,649 946,008 Credit card 2,605,598 51,270 Non-pledged loan Retail 117,032 116,978 Corporate 937,586 113,155 Total Loans operations 12,844,037 3,925,429 Expected Credit Loss (Note 14(b)) (24,410) (7,101) Total loans operations, net of Expected Loss 12,819,627 3,918,328 By maturity 2021 2020 Due in 3 months or less 2,539,387 160,918 Due after 3 months through 12 months 2,081,563 580,183 Due after 12 months 8,223,087 3,184,328 Total Loans operations 12,844,037 3,925,429 By concentration 2021 2020 Largest debtor 227,229 150,040 10 largest debtors 1,162,802 726,904 20 largest debtors 1,721,591 1,043,583 50 largest debtors 2,793,814 1,521,310 100 largest debtors 3,899,644 1,885,614 XP Inc offers loan products through Banco XP to its customers. The loan products offered to its customers are fully collateralized by customers’ investments on XP platform and 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. Certain loans operations originated by the collateralized credit have insignificant risk of loss, which resulted in no expected credit loss being recognized in accordance with the Group's expected credit loss model at December 31, 2020 for financial assets with a book value of R$297,443. At December 31, 2021 expected credit losses were recognized in relation to all financial assets. The reconciliation of gross carrying amount and the expected credit loss in loan operations segregated by stage according with IFRS 9 is included in Note 14. These stages are periodically reassessed in accordance with XP Inc.’s credit risk policy. |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Derivative financial instruments | 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, 2021 and 2020 are shown below: 2021 Assets Liabilities Fair value Notional Fair value Notional Options 6,570,325 371,849,357 8,112,055 311,295,196 Swaps 2,577,311 75,380,631 2,561,327 82,520,691 Forward contracts 1,601,167 88,107,328 1,057,426 44,968,097 Futures contracts 194,911 11,932,285 157,710 13,041,450 Others (i) — — 19,665 84,184 Total 10,943,714 547,269,601 11,908,183 451,909,618 2020 Assets Liabilities Fair value Notional Fair value Notional Options 6,298,358 681,464,674 6,735,478 614,741,256 Swaps 777,816 5,578,227 870,393 6,143,671 Forward contracts 456,724 2,905,411 200,272 3,035,011 Futures contracts 26,535 43,100,609 13,221 44,981,642 Total 7,559,433 733,048,921 7,819,364 668,901,580 (i) Related to Public Warrants and Private placement Warrants liabilities issued by XPAC Acquisition Corp. Below is the composition of the Derivative financial instruments portfolio (assets and liabilities) by type of instrument, stated fair value and by maturity: 2021 Fair Value % Up to 3 months From 4 to 12 months Above 12 months Assets Swap contracts 2,577,311 14 73,016 259,300 2,244,995 Forward contracts 1,601,167 16 404,764 216,895 979,508 Future contracts 194,911 2 21,891 3,275 169,745 Options 6,570,325 68 1,474,816 2,281,088 2,814,421 Total 10,943,714 100 1,974,487 2,760,558 6,208,669 Liabilities Options 8,112,055 69 1,941,553 1,937,725 4,232,777 Forward contracts 1,057,426 18 62,935 68,398 926,093 Future contracts 157,710 10 6 4,814 152,890 Swap contracts 2,561,327 3 113,754 240,005 2,207,568 Others (i) 19,665 — 19,665 — — Total 11,908,183 100 2,137,913 2,250,942 7,519,328 (i) Related to Public Warrants and Private placement Warrants liabilities issued by XPAC Acquisition Corp. 2020 Fair value % Up to 3 months From 4 to 12 months Above 12 months Assets Swap contracts 777,816 10 35,241 206,921 535,654 Forward contracts 456,724 6 230,862 201,324 24,538 Future contracts 26,535 1 26,535 — — Options 6,298,358 83 2,327,062 2,351,285 1,620,011 Total 7,559,433 100 2,619,700 2,759,530 2,180,203 Liabilities Options 6,735,478 87 2,152,890 2,378,689 2,203,899 Forward contracts 200,272 2 133,679 49,102 17,491 Future contracts 13,221 1 542 1,742 10,937 Swap contracts 870,393 10 99,249 213,532 557,612 Total 7,819,364 100 2,386,360 2,643,065 2,789,939 Derivatives financial instruments by index: 2021 2020 Notional Fair Value Notional Fair Value Swap Contracts Asset Position Interest 66,123,491 1,799,953 5,014,934 776,215 Foreign exchange 1,978,886 16,013 563,293 1,601 Share 7,278,254 761,345 — — Liability Position Interest 75,207,636 (2,461,848) 6,143,671 (870,393) Foreign exchange 5,888,850 (28,509) — — Share 1,424,205 (70,970) — — Forward Contracts Asset Position Foreign exchange 81,544,253 282,775 2,546,940 98,253 Share 4,603,031 412,097 325,519 325,519 Interest 906,295 906,295 32,952 32,952 Commodities 1,053,749 — — — Liability Position Foreign exchange 42,367,576 (139,642) 3,002,067 (167,328) Interest 906,302 (906,302) 32,944 (32,944) Share 11,482 (11,482) — — Commodities 1,682,737 — — — Future Contracts Purchase commitments Foreign exchange 155,487 194,911 — — Interest 11,629,715 — 43,100,609 26,535 Share 147,083 — — — Commitments to sell Interest 12,188,922 (157,710) 44,981,642 (13,221) Foreign exchange 705,334 — — — Share 147,083 — — — Commodities 111 — — — Options Purchase commitments Foreign exchange 25,973,934 2,248,675 — — Share 72,883,420 3,146,174 5,827,205 1,074,507 Interest 272,987,997 1,160,526 675,637,469 5,223,851 Commodities 4,006 14,950 — — Commitments to sell Foreign exchange 24,541,428 (3,080,095) — — Shares 13,690,202 (2,788,089) 9,229,113 (945,828) Commodities 680,404 (113,875) — — Interest 272,383,162 (2,129,996) 605,512,143 (5,789,650) Others Liability Position Interest 84,184 (19,665) — — Assets 10,943,714 7,559,433 Liabilities (11,908,183) (7,819,364) Net (964,469) (259,931) |
Hedge accounting
Hedge accounting | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about hedged items [abstract] | |
Hedge accounting | 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 taking 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 period ended December 31, 2021, 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 items, 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 value recognized in Other comprehensive income Notional value Variation in the Strategies Assets Liabilities 2021 Foreign exchange risk Hedge of net investment in foreign operations 310,069 — 19,474 440,022 (18,758) Total 310,069 — 19,474 440,022 (18,758) 2020 Foreign exchange risk Hedge of net investment in foreign operations 245,986 — 52,299 349,218 349,218 Total 245,986 — 52,299 349,218 (60,563) 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) b) Fair value hedge The Group’s fair value strategy consists of hedging the exposure to variation in fair value on the receipt, payment of interests and exchange variation on assets and liabilities. The group applies fair value hedges as follows: • 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 Brazil’s currency. 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. • Hedging to protect the change in the fair value of the exchange risk of the component of future cash flows arising from the XP Inc bond issued (financial liability) recognized in the balance sheet of XP Inc in July 2021 by contracting derivatives (DI1 Futuro). 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 value recognized in income Notional value Variation in the Strategies Assets Liabilities 2021 Interest rate and foreign exchange risk Hedge of securities — 9,264,330 506,190 9,297,999 (495,191) Total — 9,264,330 506,190 9,297,999 (495,191) Hedged item Hedge instrument Book Value Variation in value recognized in income Notional value Variation in the Strategies Assets Liabilities 2020 Interest rate and foreign exchange risk Hedge of securities — 2,178,459 (47,923) 2,188,732 46,795 Total — 2,178,459 (47,923) 2,188,732 46,795 The hedge ineffectiveness recognized in statements of income are presented below: 2021 Notional amount Book value (i) Variation in fair value used to calculate hedge ineffectiveness Hedge ineffectiveness recognized in income Hedge Instruments Assets Liabilities Interest rate risk Futures 8,861,195 — 8,830,343 (491,649) 10,995 Foreign exchange risk Futures 876,826 310,069 433,987 (22,300) 720 2020 Notional amount Book value (i) Variation in fair value used to calculate hedge ineffectiveness Hedge ineffectiveness recognized in income Hedge Instruments Assets Liabilities Interest rate risk Futures 2,188,732 — 2,178,459 46,795 (1,128) (i) Amounts recorded within financial statement line “Derivative financial instruments.” See Note 8. 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: December 31, 2021 December 31, 2020 December 31, 2019 Strategies Hedge instruments Hedge item Hedge instruments Hedge item Hedge instruments Hedge item Notional amount Fair value adjustments Book value Notional amount Fair value adjustments Book value Notional amount Fair value adjustments Book value Hedge of Fair Value 9,297,999 (495,191) 506,190 2,188,732 (47,923) 46,795 — — — Hedge of net investment in foreign operations 440,022 (18,758) 19,474 349,218 (60,563) 52,299 248,896 5,946 (7,133) Total 9,738,021 (513,949) 525,664 2,537,950 (108,486) 99,094 248,896 5,946 (7,133) The table below shows the breakdown notional value by maturity of the hedging strategies: 2021 0-1 year 1-2 years 2-3 years 3-4 years 4-5 years 5-10 years Total Hedge of Fair Value 136,636 276,219 478,745 972,199 4,510,125 2,924,075 9,297,999 Hedge of net investment in foreign operations 384,217 — — 55,805 — — 440,022 Total 520,853 276,219 478,745 1,028,004 4,510,125 2,924,075 9,738,021 2020 0-1 year 1-2 years 2-3 years 3-4 years 4-5 years 5-10 years Total Hedge of Fair Value 1,977 13,375 94,099 44,843 672,978 1,361,460 2,188,732 Hedge of net investment in foreign operations — — 146,547 202,671 — — 349,218 Total 1,977 13,375 240,646 247,514 672,978 1,361,460 2,537,950 2019 0-1 year 1-2 years 2-3 years 3-4 years 4-5 years 5-10 years Total Hedge of net investment in foreign operations 7,658 — — 91,698 149,540 — 248,896 Total 7,658 — — 91,698 149,540 — 248,896 |
Loan operations
Loan operations | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of financial assets [abstract] | |
Loan operations | 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: 2021 2020 Gross carrying amount Fair value Gross carrying amount Fair value Financial assets (i) At fair value through profit or loss Available portfolio 56,899,391 56,985,365 49,157,111 49,590,013 Brazilian government bonds 15,577,753 15,582,410 30,752,903 31,129,671 Investment funds 28,520,788 28,520,788 11,216,914 11,221,774 Stocks issued by public-held company 4,768,724 4,768,724 3,802,610 3,802,470 Debentures 4,493,406 4,522,150 1,111,595 1,114,967 Structured transaction certificate 235,794 270,225 485,012 515,960 Bank deposit certificates (ii) 352,770 356,313 371,455 372,329 Agribusiness receivables certificates 573,374 579,224 359,607 363,721 Certificate of real estate receivable 568,347 575,717 97,606 96,930 Financial credit bills 663,236 669,819 81,465 82,209 Others (iv) 1,145,199 1,139,995 877,944 889,982 Investments held in trust accounts 1,194,590 1,194,590 — — US government bonds (iii) 1,194,590 1,194,590 — — Total 58,093,981 58,179,955 49,157,111 49,590,013 (i) Financial assets include R$31,921,400 (December 31, 2020 – R$13,387,913) related to Specially Constituted Investment Fund (“FIE”) as presented in Note 23, out of which R$26,336,326 (December 31, 2020 – R$10,625,520) are Investments funds. (ii) Bank deposit certificates include R$194,892 (December 31, 2020 – R$111,927) presented as cash equivalents in the statements of cash flows. (iii) Related to investments received through IPO transactions derived by XPAC Acquisition Corp. These funds are restricted for use and may only be used for purposes of completing an initial business combination or redemption of public shares as set forth in XPAC Acquisition Corp. trust agreement. (iv) Mainly related to securities loaned. b) Securities at fair value through other comprehensive income are presented in the following table 2021 2020 Gross carrying amount Fair value Gross carrying amount Fair value Financial assets At fair value through other comprehensive income (i) National treasury bill 32,725,011 31,868,878 19,011,499 19,039,044 Bonds 458,755 463,499 — — Total 33,183,766 32,332,377 19,011,499 19,039,044 (i) Includes expected credit losses in the amount of R$7,527 (December 31,2020 – R$8,855). The reconciliation of gross carrying amount and the expected credit loss segregated by stages are presented in the Note 14. c) Securities evaluated at amortized cost are presented in the following table: 2021 2020 Gross carrying amount Book value Gross carrying amount Book value Financial assets At amortized cost (i) Bonds 1,871,273 1,868,776 1,829,791 1,828,704 Rural product note 328,638 328,638 — — Debentures 41,393 41,393 — — Total 2,241,304 2,238,807 1,829,791 1,828,704 (i) Include expected credit losses in the amount of R$2,497 (December 31,2020 – R$1,087). The reconciliation of gross carrying amount and the expected credit losses segregated by stages are presented in the Note 14. d ) Securities on the financial liabilities classified at fair value through profit or loss are presented in the following table: 2021 2020 Gross carrying amount Fair value Gross carrying amount Fair value Financial liabilities At fair value through profit or loss Securities loaned 2,146,398 2,146,398 2,237,442 2,237,442 e) Debentures designated at fair value through profit or loss are presented in the following table: On May 6, 2021, XP Investimentos, issued non-convertible Debentures, in the aggregate amount of R$500,018, with the objective of funding the Group’s working capital for the construction of our new headquarters “Vila XP” at São Roque, State of São Paulo and designated this instrument as fair value through profit or loss in order to align it with the Group’s risk management and investment strategy. The principal amount is due on April 10, 2036. The accrued interest is payable every month from the issuance date and is calculated based on the IPCA (brazilian inflation index) plus 5%p.a. 2021 2020 Gross carrying amount Fair Gross carrying amount Fair Financial liabilities At fair value through profit or loss Debentures 536,881 518,804 — — Unrealized gains/(losses) due to own credit risk for liabilities for which the fair value option has been elected are recorded in other comprehensive income. Gain/(losses) due to own credit risk were not material for the period ended of December 31, 2021. Determination of own credit risk for items for which the fair value option was elected The debenture’s own credit risk is calculated as the difference between its yield and its benchmark rate for similar Brazilian federal securities. e.1) Difference between aggregate fair value and aggregate remaining contractual principal balance outstanding The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of December 31, 2021 for instruments for which the fair value option has been elected. 2021 Contractual principal outstanding Fair value Fair value/(under) contractual principal outstanding Long-term debt Debentures 536,881 518,804 (18,077) f) Below is presented the securities classified by maturity: Assets Liabilities 2021 2020 2021 2020 Financial assets At fair value through PL and at OCI Current 47,431,624 34,572,107 2,146,398 2,237,442 Non-stated maturity 31,425,792 15,246,105 2,146,398 2,237,442 Up to 3 months 4,556,261 794,025 — — From 3 to 12 months 11,449,571 18,531,977 — — Non-current 43,088,235 34,065,805 518,804 — After one year 43,088,235 34,065,805 518,804 — Evaluated at amortized cost Current 1,891,889 1,829,791 — — Up to 3 months 1,698,760 1,623,487 — — From 3 to 12 months 193,129 206,304 — — Non-current 349,415 — — — After one year 349,415 — — — Total 92,761,163 70,467,703 2,665,202 2,237,442 The reconciliation of expected loss to financial assets at amortized cost – securities segregated by stage according with to IFRS 9 is demonstrated in Note 14. Following are the breakdown of the carrying amount of loan operations by class, sector of debtor, maturity and concentration: Loans by type 2021 2020 Pledged asset loan Retail 7,296,172 2,698,018 Corporate 1,887,649 946,008 Credit card 2,605,598 51,270 Non-pledged loan Retail 117,032 116,978 Corporate 937,586 113,155 Total Loans operations 12,844,037 3,925,429 Expected Credit Loss (Note 14(b)) (24,410) (7,101) Total loans operations, net of Expected Loss 12,819,627 3,918,328 By maturity 2021 2020 Due in 3 months or less 2,539,387 160,918 Due after 3 months through 12 months 2,081,563 580,183 Due after 12 months 8,223,087 3,184,328 Total Loans operations 12,844,037 3,925,429 By concentration 2021 2020 Largest debtor 227,229 150,040 10 largest debtors 1,162,802 726,904 20 largest debtors 1,721,591 1,043,583 50 largest debtors 2,793,814 1,521,310 100 largest debtors 3,899,644 1,885,614 XP Inc offers loan products through Banco XP to its customers. The loan products offered to its customers are fully collateralized by customers’ investments on XP platform and 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. Certain loans operations originated by the collateralized credit have insignificant risk of loss, which resulted in no expected credit loss being recognized in accordance with the Group's expected credit loss model at December 31, 2020 for financial assets with a book value of R$297,443. At December 31, 2021 expected credit losses were recognized in relation to all financial assets. The reconciliation of gross carrying amount and the expected credit loss in loan operations segregated by stage according with IFRS 9 is included in Note 14. These stages are periodically reassessed in accordance with XP Inc.’s credit risk policy. |
Accounts receivable
Accounts receivable | 12 Months Ended |
Dec. 31, 2021 | |
Trade and other receivables [abstract] | |
Accounts receivable | Accounts receivable 2021 2020 Customers (a) 419,532 455,253 Dividends and interest receivable on equity capital - Funds 3,593 6,393 Other (b) 52,492 51,131 (-) Expected credit losses on accounts receivable (Note 14(b)) (6,531) (6,418) Total 469,086 506,359 (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, 2021 and 2020. (b) Mainly related to accounts receivable from B3. The reconciliation of gross carrying amount and the expected credit loss in Accounts receivable segregated by stage according with IFRS 9 is included in Note 14. |
Recoverable taxes
Recoverable taxes | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Recoverable taxes | Recoverable taxes 2021 2020 Prepayments of income taxes (IRPJ and CSLL) 146,636 122,070 Contributions over revenue (PIS and COFINS) 5,654 3,993 Other recoverable taxes (i) 1,026 1,560 Total 153,316 127,623 Current 153,316 127,623 Non-current — — (i) The amount refers to taxes on services - ISS of R$1,002 (2020– R$979), value added taxes – VAT of nil (2020 –R$581) and Contributions for Social Security - INSS of R$24 (2020–nil). |
Prepaid expenses
Prepaid expenses | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Prepaid expenses | Prepaid expenses 2021 2020 Commissions and premiums paid in advance (a) 3,737,354 1,314,771 Marketing expenses 28,147 28,056 Services paid in advance 41,990 6,245 Other expenses paid in advance 175,259 44,465 Total 3,982,750 1,393,537 Current 251,973 283,183 Non-current 3,730,777 1,110,354 (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 Group, linearly, according to the investment term period. |
Expected Credit Losses on Finan
Expected Credit Losses on Financial Assets and Reconciliation of carrying amount | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of fair value measurement of assets [abstract] | |
Expected Credit Losses on Financial Assets and Reconciliation of carrying amount | Expected Credit Losses on Financial Assets and Reconciliation of carrying amount a) Reconciliation of carrying amount of Financial Assets It is presented below the reconciliation by stage of gross carrying amount of Financial assets through other comprehensive income and Financial assets measured at amortized cost – that have their ECLs (Expected Credit Losses) measured using the three stage model and the low credit risk simplification. Stage 1 Balance at December 31, 2020 Acquisition / (Settlements) Transfer to Transfer to Cure from Cure from Closing balance December 31, 2021 Financial assets at fair value through other comprehensive income Securities 19,047,899 13,292,005 — — — — 32,339,904 Financial assets amortized cost Securities 1,829,791 411,513 — — — — 2,241,304 Securities purchased under agreements to resell 6,627,779 2,269,321 — — — — 8,897,100 Loans and credit card operations 3,599,808 9,013,279 (667,692) (3,494) 211,648 — 12,153,549 Total on-balance exposures 31,105,277 24,986,118 (667,692) (3,494) 211,648 — 55,631,857 Off-balance exposures (credit card limits) — 1,334,467 (59,408) (5) 32,932 — 1,307,986 Total exposures 31,105,277 26,320,585 (727,100) (3,499) 244,580 — 56,939,843 Stage 2 Balance at December 31, 2020 Acquisition / (Settlements) Transfer to stage 1 Transfer to stage 3 Cure from stage 1 Cure from stage 3 Closing balance December 31, 2021 Financial assets amortized cost Loans and credit card operations 325,621 (94,671) (211,648) — 667,692 — 686,994 Total on-balance exposures 325,621 (94,671) (211,648) — 667,692 — 686,994 Off-balance exposures (credit card limits) 35,810 (2,878) (32,932) — 59,408 — 59,408 Total exposures 361,431 (97,549) (244,580) — 727,100 — 746,402 Stage 3 Balance at December 31, 2020 Acquisition / (Settlements) Transfer to stage 1 Transfer to stage 2 Cure from stage 1 Cure from stage 2 Closing balance December 31, 2021 Financial assets amortized cost Loans and credit card operations — — — — 3,494 — 3,494 Total on-balance exposures — — — — 3,494 — 3,494 Off-balance exposures (credit card limits) — — — — 5 — 5 Total exposures — — — — 3,499 — 3,499 Consolidated Stages Balance at December 31, 2020 Derecognition Purchases / (Settlements) Closing balance December 31, 2021 Financial assets at fair value through other comprehensive income Securities 19,047,899 — 13,292,005 32,339,904 Financial assets amortized cost Securities 1,829,791 — 411,513 2,241,304 Securities purchased under agreements to resell 6,627,779 — 2,269,321 8,897,100 Loans and credit card operations 3,925,429 — 8,918,608 12,844,037 Total on-balance exposures 31,430,898 — 24,891,447 56,322,345 Off-balance exposures (credit card limits) 35,810 — 1,331,589 1,367,399 Total exposures 31,466,708 — 26,223,036 57,689,744 Stage 1 Balance at December 31, 2019 Acquisition / (Settlements) Transfer to stage 2 Transfer to stage 3 Cure from stage 2 Cure from stage 3 Closing balance December 31, 2020 Financial assets at fair value through other comprehensive income Securities 2,616,118 16,431,781 — — — — 19,047,899 Financial assets amortized cost Securities 2,266,971 (437,180) — — — — 1,829,791 Securities purchased under agreements to resell 9,490,090 (2,862,311) — — — — 6,627,779 Loans and credit card operations — 3,599,808 — — — — 3,599,808 Total on-balance exposures 14,373,179 16,732,098 — — — — 31,105,277 Total exposures 14,373,179 16,732,098 — — — — 31,105,277 Stage 2 Balance at December 31, 2019 Acquisition / (Settlements) Transfer to stage 1 Transfer to stage 3 Cure from stage 1 Cure from stage 3 Closing balance December 31, 2020 Financial assets amortized cost Loans and credit card operations — 325,621 — — — — 325,621 Total on-balance exposures — 325,621 — — — — 325,621 Off-balance exposures (credit card limits) — 35,810 35,810 Total exposures — 361,431 — — — — 361,431 Consolidated Stages Balance at December 31, 2019 Derecognition Purchases / (Settlements) Closing balance December 31, 2020 Financial assets at fair value through other comprehensive income Securities 2,616,118 — 16,431,781 19,047,899 Financial assets amortized cost Securities 2,266,971 — (437,180) 1,829,791 Securities purchased under agreements to resell 9,490,090 — (2,862,311) 6,627,779 Loans and credit card operations — — 3,925,429 3,925,429 Total on-balance exposures 14,373,179 — 17,057,719 31,430,898 Off-balance exposures (credit card limits) — — — 35,810 Total exposures 14,373,179 — 17,057,719 31,466,708 As of December 31, 2020, XP Group does not have financial assets classified as a Stage 3. The following table presents the gross carrying amount of Financial assets measured at amortized cost that have their ECLs measured using the simplified approach: Operations 2021 2020 Financial assets amortized cost Securities trading and intermediation 1,487,639 1,107,051 Accounts Receivable 475,617 512,777 Other financial assets 511,181 73,466 Total 2,474,437 1,693,294 b) Expected credit loss The table below presents the changes in ECLs, measured according three stage model, for assets classified as Financial assets through other comprehensive income –and Financial assets measured at amortized cost in the period ended December 31, 2021 and December 31, 2020, segregated by stages: Stage 1 ECL at December 31, 2020 Increase / (Reversal) Transfer to stage 2 Transfer to stage 3 Cure from stage 2 Cure from stage 3 ECL at December 31, 2021 Financial assets at fair value through other comprehensive income Securities 8,855 (1,328) — — — 7,527 Financial assets amortized cost Securities 1,087 1,410 — — — — 2,497 Securities purchased under agreements to resell 370 2,199 — — — — 2,569 Loans and credit card operations 5,648 17,207 (6,926) (2,197) 225 — 13,957 Total on-balance exposures 15,960 19,488 (6,926) (2,197) 225 — 26,550 Off-balance exposures (credit card limits) — 1,014 (288) — — — 726 Total exposures 15,960 20,502 (7,214) (2,197) 225 — 27,276 Stage 2 ECL at December 31, 2020 Increase / (Reversal) Transfer to stage 1 Transfer to stage 3 Cure from stage 1 Cure from stage 3 ECL at December 31, 2021 Financial assets amortized cost Loans and credit card operations 1,453 (912) (225) — 6,926 — 7,242 Total on-balance exposures 1,453 (912) (225) — 6,926 — 7,242 Off-balance exposures (credit card limits) — — — — 288 — 288 Total exposures 1,453 (912) (225) — 7,214 — 7,530 Stage 3 ECL at December 31, 2020 Increase / (Reversal) Transfer to stage 1 Transfer to stage 2 Cure from stage 1 Cure from stage 2 ECL at December 31, 2021 Financial assets amortized cost Loans and credit card operations — — — — 2,197 — 2,197 Total on-balance exposures — — — — 2,197 — 2,197 Total exposures — — — — 2,197 — 2,197 Consolidated Stages ECL at December 31, 2020 Derecognition Increase / (Reversal) ECL at December 31, 2021 Financial assets at fair value through other comprehensive income Securities 8,855 — (1,328) 7,527 Financial assets amortized cost Securities 1,087 — 1,410 2,497 Securities purchased under agreements to resell 370 — 2,199 2,569 Loans and credit card operations 7,101 — 16,295 23,396 Total on-balance exposures 17,413 — 18,576 35,989 Off-balance exposures (credit card limits) — — 1,014 1,014 Total exposures 17,413 — 19,590 37,003 Stage 1 ECL at December 31, 2019 Increase / (Reversal) Transfer to stage 2 Transfer to stage 3 Cure from stage 2 Cure from stage 3 ECL at December 31, 2020 Financial assets at fair value through other comprehensive income Securities — 8,855 — — — — 8,855 Financial assets amortized cost — — — — Securities — 1,087 — — — — 1,087 Securities purchased under agreements to resell — 370 — — — — 370 Loans and credit card operations 2 5,646 — — — — 5,648 Total on-balance exposures 2 15,958 — — — — 15,960 Total exposures 2 15,958 — — — — 15,960 Stage 2 ECL at December 31, 2019 Increase / (Reversal) Transfer to stage 1 Transfer to stage 3 Cure from stage 1 Cure from stage 3 ECL at December 31, 2020 Financial assets amortized cost Loans and credit card operations — 1,453 — — — — 1,453 Total on-balance exposures — 1,453 — — — — 1,453 Total exposures — 1,453 — — — — 1,453 Consolidated Stages ECL at December 31, 2019 Derecognition Increase / (Reversal) ECL at December 31, 2020 Financial assets at fair value through other comprehensive income Securities — — 8,855 8,855 Financial assets amortized cost Securities — — 1,087 1,087 Securities purchased under agreements to resell — — 370 370 Loans and credit card operations 2 — 7,099 7,101 Total on-balance exposures 2 — 17,411 17,413 Total exposures 2 — 17,411 17,413 The table below presents the ECLs for the financial assets measured according to simplified approach in the period ended December 31, 2021 and December 31, 2020: Expected Credit Losses 2021 2020 Financial assets amortized cost Securities trading and intermediation 81,988 55,485 Accounts Receivable 6,531 6,418 Other financial assets 49,666 3,312 Total 138,185 65,215 c) Expected credit losses segregated by products It is presented below the expected credit losses for 2021 and 2020, segregated by the products: Expected Credit Losses 2021 2020 Financial assets at fair value through other comprehensive income 7,527 8,855 Securities 7,527 8,855 Financial assets amortized cost 166,647 73,773 Securities 2,497 1,087 Securities purchased under agreements to resell 2,569 370 Loans and credit card operations 23,396 7,101 Securities trading and intermediation 81,988 55,485 Accounts Receivable 6,531 6,418 Other financial assets 49,666 3,312 Total losses for exposures 174,174 82,628 Off-balance exposures (credit card limits) 1,014 — Total exposures 175,188 82,628 |
Investments in associates and j
Investments in associates and joint ventures | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of associates [abstract] | |
Investments in associates and joint ventures | Investments in associates and joint ventures Set out below are the associates and joint ventures of the Group as of December 31, 2021 and 2020. Entity 2020 Equity Equity in earnings Other comprehensive income Goodwill (i) 2021 Equity-accounted method Associates (ii.a) 697,924 33,036 (5,862) (20,641) 86,287 790,744 Joint ventures (ii.b) 1,983 — (1,848) 1,062 — 1,197 Measured at fair value Associates (iii) — 1,174,133 47,291 — — 1,221,424 Total 699,907 1,207,169 39,581 (19,579) 86,287 2,013,365 Entity 2019 Equity Equity in earnings Other comprehensive income Goodwill (i) 2020 Associates (ii.a) — 75,093 1,639 (56) 621,248 697,924 Joint ventures (ii.b) — 2,335 (777) 17 408 1,983 Total — 77,428 862 (39) 621,656 699,907 (i) Related to the acquisitions of associates and joint ventures. The goodwill recognized includes the value of expected synergies arising from the investments and includes an element of contingent consideration. (ii) At December 31, 2021, include interest in total and voting capital of the following companies: (a) Associates - Wealth High Governance Holding de Participações S.A. (49.9% total and voting capital at December 31,2021 and December 31, 2020); O Primo Rico Mídia, Educacional e Participações Ltda. (29.3% total and voting capital at December 31, 2021 and 20% at December 31, 2020); NK112 Empreendimentos e Participações S.A. (49.9% total and voting capital at December 31, 2021) (b) Joint ventures - Du Agro Holdings S.A. (49% total and voting capital at December 31, 2021 and December 31, 2020). (iii) As mentioned in Note 2 (iv) and Note 5 (c) (b), the Group measured the investments held through XP FIP Managers at fair value. The fair value of investments is presented in the statements of income as Net income from financial instruments at fair value through profit or loss. |
Property, equipment, intangible
Property, equipment, intangible assets and leases | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, equipment, intangible assets and leases | Property, equipment, intangible assets and leases (a) Property and equipment Data processing system Furniture and equipment Security systems Facilities Fixed assets in progress Vehicle Total 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) Balance as of January 1, 2020 34,447 27,756 1,544 78,717 — — 142,464 Additions 15,457 5,539 1,239 2,650 120,279 — 145,164 Write-offs (2,432) (6,191) (535) (41,376) (963) — (51,497) Transfers (2,411) 516 (820) 14,279 (17,706) — (6,142) Depreciation in the year (11,179) (5,004) (425) (9,349) — — (25,957) as of December 31, 2020 33,882 22,616 1,003 44,921 101,610 — 204,032 Cost 53,871 32,592 2,158 54,890 101,610 — 245,121 Accumulated depreciation (19,989) (9,976) (1,155) (9,969) — — (41,089) Balance as of January 1, 2021 33,882 22,616 1,003 44,921 101,610 — 204,032 Additions 37,469 93 229 4 63,250 34,399 135,444 Write-offs (298) (728) (170) (375) (729) — (2,300) Transfers 5 (15) 15 — — — 5 Foreign Exchange (31) 245 (327) 3 — — (110) Depreciation in the year (13,096) (3,990) (60) (5,353) (35) (573) (23,107) Balance as of December 31, 2021 57,931 18,221 690 39,200 164,096 33,826 313,964 Cost 89,376 31,813 1,584 54,535 164,096 34,399 375,803 Accumulated depreciation (31,445) (13,592) (894) (15,335) — (573) (61,839) (b) Intangible assets Software Goodwill Customer list Trademarks Other intangible Assets Total 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) Balance as of January 1, 2020 66,310 382,500 60,599 16,488 27,555 553,452 Additions 117,129 — 1,188 — 28,051 146,368 Business combination (Note 5(ii)) 8,143 91,866 2,181 3,314 — 105,504 Write-offs (22,064) — — — — (22,064) Transfers 2,857 — — — 3,285 6,142 Amortization in the year (57,222) — (5,683) (9,054) (3,881) (75,840) Balance as of December 31, 2020 115,153 474,366 58,285 10,748 55,010 713,562 Cost 219,029 474,366 76,050 52,616 55,010 877,071 Accumulated amortization (103,876) — (17,765) (41,868) — (163,509) Balance as of January 1, 2021 115,153 474,366 58,285 10,748 55,010 713,562 Additions 146,761 — 40,000 — 30,808 217,569 Business Combination 1,734 68,379 — 485 — 70,598 Write-offs (13,536) — — (1,000) (2,675) (17,211) Transfers 51,994 — — 485 (52,484) (5) Foreign Exchange (971) — — 341 204 (426) Amortization in the year (148,803) — (5,796) (8,492) (21) (163,112) Balance as of December 31, 2021 152,332 542,745 92,489 2,567 30,842 820,975 Cost 303,724 542,745 116,050 88,877 30,918 1,082,314 Accumulated amortization (151,392) — (23,561) (86,310) (76) (261,339) (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 unit (“CGU”) and, therefore, a 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 or more frequently if there is an impairment indicator. For the years ended December 31, 2021 and 2020, the recoverable amount of the single CGU was determined based on value-in-use calculations which require the use of assumptions. The calculations use cash flow projections based on financial budgets approved by management covering a four-year period. 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, 2021 and 2020 which did not result in the need to recognize impairment losses on the carrying value of goodwill. Key assumptions used in value-in-use calculations and sensitivity to changes in assumptions are: 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 model as a result of this expenditure. 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 discount rates Reflect specific risks relating to the relevant segments and the countries in which they operate. The long-term growth rate utilized in the impairment test of goodwill is 6.50%. 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 taking 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 discount rate. The average pre-tax discount rate applied to cash flow projections is 9.82% (December 31, 2020 – 10.47%). d) Leases Set out below, are the carrying amounts of the Group’s right-of-use assets and lease liabilities and the movements during the period: Right-of-use assets Lease liabilities As of January 1, 2020 227,478 255,406 Additions (i) 62,003 55,820 Depreciation expense (41,465) — Write-offs (78,321) (78,321) Interest expense — 19,456 Revaluation (9,115) (10,050) Impairment 422 — Effects of exchange rate 22,132 23,610 Payment of lease liabilities — (57,473) As of December 31, 2020 183,134 208,448 Current — 34,019 Non-current 183,134 174,429 As of January 1, 2021 183,134 208,448 Additions (i) 116,248 116,248 Depreciation expense (45,511) — Write-offs (856) — Interest expense — 17,488 Revaluation 25,305 24,234 Effects of exchange rate 6,189 7,486 Payment of lease liabilities — (55,349) As of December 31, 2021 284,509 318,555 Current — 71,925 Non-current 284,509 246,630 (i) Additions to right-of-use assets in the period include prepayments to lessors and accrued liabilities. The Group recognized rent expense from short-term leases and low-value assets of R$1,021 for the period ended December 31, 2021 (R$1,910 – December 31, 2020). The total rent expense of R$17,795 (R$9,615 – December 31, 2020), includes other expenses related to leased offices such as condominiums. |
Financing instruments payable
Financing instruments payable | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Financing instruments payable | Financing instruments payable 2021 2020 Market funding operations (a) 20,122,206 5,216,599 Deposits 9,898,630 3,021,751 Demands deposits 229,691 44,536 Time deposits 9,662,694 2,977,215 Interbank deposits 6,245 — Financial bills 2,587,738 16,389 Structured operations certificates 7,635,838 2,178,459 Debt securities (b) 4,306,880 335,250 Debentures 169,094 335,250 Bond 4,137,786 — Total 24,429,086 5,551,849 Current 8,018,854 2,731,816 Non-Current 16,410,232 2,820,033 (a) Maturity Maturity - 2021 Class Within 30 days From 31 to 60 days From 61 to 90 days From 91 to 180 days From 181 to 360 days After 360 days Total Demand deposits 229,691 — — — — — 229,691 Time deposits 751,676 520,694 712,092 3,231,965 2,341,770 2,104,497 9,662,694 Interbank deposits — 3,125 — — — 3,120 6,245 Financial bills — — — 10,945 6,164 2,570,629 2,587,738 Structured operations certificates 1,510 3,940 5,428 9,120 21,640 7,594,200 7,635,838 Total 982,877 527,759 717,520 3,252,030 2,369,574 12,272,446 20,122,206 Maturity – 2020 Class Within 30 days From 31 to 60 days From 61 to 90 days From 91 to 180 days From 181 to 360 days After 360 days Total Demand deposits 44,536 — — — — — 44,536 Time deposits 67,501 1,185 57,781 191,886 2,161,762 497,100 2,977,215 Financial bills — — — — — 16,389 16,389 Structured operations certificates — — — 945 1,489 2,176,025 2,178,459 Total 112,037 1,185 57,781 192,831 2,163,251 2,689,514 5,216,599 (b) Debt securities The total balance is comprised of the following issuances: 2021 2020 Up to 1 year 1-5 years Total Up to 1 year 1-5 years Total Bonds (i) Fixed rate — 4,137,786 4,137,786 — — — Debentures (ii) Fixed rate / Variable Rate 169,094 — 169,094 204,731 130,519 335,250 Total 169,094 4,137,786 4,306,880 204,731 130,519 335,250 Current 169,094 204,731 Non- Current 4,137,786 130,519 (i) XP Inc Bonds On July 1, 2021, XP Inc. concluded the issuance of a gross of US$750 million senior unsecured notes with net proceeds of US$739 million (R$3,697 million) with maturity on July 1, 2026 and bear interest at the rate of 3.250% per year and will be guaranteed by XP Investimentos S.A. (ii) Debentures The principal amount and accrued interest payables related to the issuance are as follow: (i) for the principal amount, 50% was due and paid on May 15, 2021 and the remaining balance on the maturity date of May 15, 2022, and (ii) the accrued interest is payable every 12 months from the issuance date. The annual rate is 107.5% CDI with a unit value at in the period ended of R$505,680. Debentures are subject to financial covenants, which have certain performance conditions. The Group has complied with these covenants throughout the reporting period (Note 36 (ii)). (iii) XP Energy issuance a. Promissory Note On September 9, 2021, XP Energia, a group’s subsidiary, issued the first promissory note with the objective of funding the Group’s working capital and treasury investments related to wholesale electricity trade business. The principal amount of R$80,000 is due and payable on the maturity date of September 4, 2022, and the interest rate is CDI + 3.5% pre-fixed rate annually payable. On December 31, 2021 the total amount was R$82,608, which is hold by entities within the Group and as such is not included in the consolidated financial statement. b. Debentures On December 8, 2021, XP Energia issued non-convertible Debentures in the amount of R$90,000. The Debentures series has a maximum authorized issuance up to R$1,500,000. The objective is to fund the Group’s working capital and treasury investments related to wholesale electricity trade business. The principal amount is due and will be paid on the maturity date of December 8, 2023. The interest rate is CDI+2.5% pre-fixed rate annually payable. On December 31, 2021 the total amount is R$90,679, which is hold by entities within the Group and as such is not included in the consolidated financial statement. |
Securities trading and intermed
Securities trading and intermediation | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Securities, Trading and Intermediation Assets and Liabilities [Abstract] | |
Securities trading and intermediation | 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. 2021 2020 Cash and settlement records 107,246 18,128 Debtors pending settlement 1,380,393 1,088,923 (-) Expected losses on Securities trading and intermediation (a) (81,988) (55,485) Total Assets 1,405,651 1,051,566 Cash and settlement records 365,700 59,712 Creditors pending settlement 15,231,855 20,243,409 Total Liabilities 15,597,555 20,303,121 (a) The reconciliation of gross carrying amount and the expected loss segregated by stage according to IFRS 9 is included in Note 14. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about borrowings [abstract] | |
Borrowings | Borrowings Interest rate % Maturity 2021 2020 Bank borrowings – domestic (i) 113% of CDI(*) March 2021 — 10,523 Related parties 10,523 Financial institution (iii) 0.813% May 2022 1,651,871 — Financial institution (ii) CDI (*)+ 0.774% April 2023 276,911 273,564 Third parties 1,928,782 273,564 Total borrowings 1,928,782 284,087 Current 1,661,067 17,637 Non-current 267,715 266,450 (*) Brazilian Interbank Offering Rate (CDI). (i) Loan agreement with Itaú Unibanco that was fully paid on March 8, 2021. (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. (iii) Loan agreement with Banco Nacional de México . Some of the obligations above contain financial covenants, which have certain performance conditions. The Group has complied with these covenants throughout the reporting period (Note 36 (ii)). |
Other financial assets and fina
Other financial assets and financial liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other financial assets and financial liabilities | Other financial assets and financial liabilities (a) Other financial assets 2021 2020 Foreign exchange portfolio 331,563 43,129 Receivables from IFAs 177,895 27,377 Other financial assets 1,723 2,777 (-) Expected losses on other financial assets (i) (49,666) (3,312) Total 461,515 69,971 Current 331,563 43,129 Non-current 129,952 26,842 (i) The reconciliation of gross carrying amount and the expected loss according to IFRS 9 is presented in Note 14. (b) Other financial liabilities 2021 2020 Foreign exchange portfolio 425,409 70,208 Structured financing (i) 2,415,400 874,771 Credit cards operations 2,522,833 50,727 Contingent consideration (ii) 743,443 462,000 Commitments subject to possible redemption (iii) 1,080,721 — Lease liabilities 318,555 208,448 Others 174,111 40,078 Total 7,680,472 1,706,232 Current 5,860,674 1,244,232 Non-current 1,819,798 462,000 (i) Financing for maintenance of financial assets required to perform financial transactions. (ii) Contractual contingent considerations mostly associated with the acquisition of participations (Note 15). The maturity of the total contingent consideration payment is up to 6 years and the contractual maximum amount payable is R$878,506 (the minimum amount is zero). In December 31, 2021, the total amount include R$216,666 of contingent consideration derived by our acquisitions (Note 5.ii.b). (iii) Related to the IPO transaction of XPAC Acquisition Corp. that occurred on August 3, 2021. The capital issued by XPAC Acquisition Corp. includes conditionally redeemable Class A ordinary shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control. The noncontrolling shareholders of XPAC Acquisition Corp. have the right to redeem their shares in cash at the earliest of (i) upon the completion of XPAC Acquisition Corp’s initial business combination or (ii) 24 months from the closing of the IPO transaction. |
Social and statutory obligation
Social and statutory obligations | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Social and Statutory obligations | Social and Statutory obligations Social and Statutory obligations are mainly composed from the Group sharing program for its employees which does not extend to the Executive Board. As of December 31, 2021, the balance of unrealized gains on the balance sheet under the "Social and statutory obligations” line item is R$1,022,212 (R$667,448 as of December 31, 2020). 2021 2020 Obligations to non-controlling interest 106,648 82,524 Employee profit-sharing (a) 776,713 483,378 Salaries and other benefits payable 138,851 101,546 Total 1,022,212 667,448 (a) The Group has a bonus scheme for its employees based on a profit sharing program as agreed under collective bargaining with the syndicate, which does not extend to the Executive Board. The bonus is calculated at each half of the year and payments are made in February and August. |
Tax and social security obligat
Tax and social security obligations | 12 Months Ended |
Dec. 31, 2021 | |
Tax and Social Security Obligations [Abstract] | |
Tax and social security obligations | Tax and social security obligations 2021 2020 Income Tax (IRPJ and CSLL) 273,395 261,490 Taxes on long term incentive plan (a) 155,454 62,155 Contributions over revenue (PIS and COFINS) 32,140 46,136 Taxes on services (ISS) 23,260 23,729 Contributions for Social Security (INSS) 20,318 12,291 Others 45,084 30,048 Total 549,651 435,849 Current 549,651 435,849 Non-current — — (a) The amount classified as "Taxes on long term incentive plan" includes mostly contributions to Brazilian Social Security Programs FGTS and INSS. The Group income tax liability is presented net of tax assets which the entities are allowed to offset during the current year. The line includes current Corporate Income Tax (CIT) liability of R$610,265 (R$536,422 - 2020) and Prepayments CIT of R$538,809 (R$291,973 – 2020). 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$17,561 (R$20,219 – 2020). |
Private pension liabilities
Private pension liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of defined benefit plans [abstract] | |
Private pension liabilities | Private pension liabilities As of December 31, 2021, 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 2021 2020 As of January 1 13,387,913 3,759,090 Contributions received 3,056,032 1,678,532 Transfer with third party plans 16,854,605 7,657,636 Withdraws (1,468,710) (304,194) Interest from assets within FIEs 91,560 596,849 As of December 31 31,921,400 13,387,913 |
Income tax
Income tax | 12 Months Ended |
Dec. 31, 2021 | |
Major components of tax expense (income) [abstract] | |
Income tax | 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 2021 2020 2021 2020 2019 Tax losses carryforwards 108,138 7,382 100,756 (9,764) (38,212) Goodwill on business combinations (i) 12,429 22,838 (10,409) 535 (37,690) Provisions for IFAs’ commissions 76,974 94,544 (17,570) 26,503 37,010 Revaluations of financial assets at fair value 173,740 (16,780) 190,520 (42,039) 23,862 Expected credit losses 43,931 19,444 24,487 13,778 2,587 Profit sharing plan 260,865 164,808 96,057 23,672 141,136 Net gain on hedge instruments 28,124 20,987 7,137 57,371 (34,943) Share-based compensation 385,594 115,976 269,618 113,025 2,950 Other provisions 154,340 67,495 86,845 34,211 42,301 Total 1,244,135 496,694 747,441 217,292 139,001 Deferred tax assets 1,273,069 505,046 Deferred tax liabilities (28,934) (8,352) (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: 2021 2020 2019 At January 1 496,694 279,401 140,400 Foreign exchange variations (16,949) 6,372 (3,461) Charges to statement of income 387,551 196,498 139,411 Tax relating to components of other comprehensive income 376,839 14,423 3,051 At December 31 1,244,135 496,694 279,401 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$39,446 (2020 - R$37,309) 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 profit differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the consolidated entities. The following is a reconciliation of income tax expense to profit (loss) for the year, calculated by applying the combined Brazilian statutory rates at 34% for the year ended December 31: 2021 2020 2019 Income before taxes 3,815,174 2,421,413 1,544,109 Combined tax rate in Brazil (a) 34.00 % 34.00 % 34.00 % Tax expense at the combined rate 1,297,159 823,280 524,997 Loss (income from entities not subject to deferred taxation 554 (12,470) (9,551) Effects from entities taxed at different rates 146,377 35,377 25,948 Effects from entities taxed at different taxation regimes (b) (1,128,400) (443,579) (24,089) Intercompany transactions with different taxation regimes (79,055) (74,289) (50,138) Tax incentives (21,036) (14,354) (9,772) Non-deductible expenses (non-taxable income) 25,216 49,640 33,854 Others (18,101) (23,681) (36,624) Total 222,714 339,924 454,625 Effective tax rate 5.84 % 14.04 % 29.44 % Current 610,265 536,422 594,037 Deferred (387,551) (196,498) (139,412) Total expense 222,714 339,924 454,625 (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 operating 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. 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) / Credit After tax 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 1,057 (359) 698 As of December 31, 2019 (2,663) 3,051 388 Foreign exchange variation of investees located abroad 57,439 — 57,439 Gains (losses) on net investment hedge (91,762) 31,199 (60,563) Changes in the fair value of financial assets at fair value 40,979 (16,776) 24,203 As of December 31, 2020 6,656 14,423 21,079 Foreign exchange variation of investees located abroad 20,977 — 20,977 Gains (losses) on net investment hedge (29,700) 10,942 (18,758) Changes in the fair value of financial assets at fair value (914,914) 365,897 (549,017) As of December 31, 2021 (923,637) 376,839 (546,798) |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of classes of share capital [abstract] | |
Equity | 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 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, 2021, the Company had R$23 of issued capital which were represented by 424,153,735 Class A common shares and 135,394,989 Class B common shares. (b) Additional paid-in capital and capital reserve Our 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 2021 and 2020: Class A Class B Total Shares As of December 31, 2019 354,181,346 197,618,980 551,800,326 Transfer of classes 16,325,000 (16,325,000) — Follow on offering 7,258,639 — 7,258,639 As of December 31, 2020 377,764,985 181,293,980 559,058,965 Transfer of classes (see note 1.2) 45,898,991 (45,898,991) — Issuance of shares 489,759 — 489,759 As of December 31, 2021 424,153,735 135,394,989 559,548,724 In December 2020, as a result of the completion of the secondary public offering described in Note 1.2 a number of 7,258,639 Class A common shares were offered by the controlling shareholder of XP Inc. On October 8, 2021 XP Inc issued 489,759 Class A common shares as part of our acquisition of a minority stake of Jive Investments. As mentioned in Note 32, the Board of Directors approved in December 2019 a share based long-term incentive plan, in which the maximum number of shares should not exceed 5% of the issued and outstanding shares. As of December 31, 2021, the outstanding number of shares reserved under the plans were 15,153,830 restricted share units (“RSUs”) (2020 - 11,079,736) and 2,966,060 performance restricted units (“PSUs”) (2020 - 2,819,912) to be issued at the vesting date. The additional paid-in capital refers to the difference between the purchase price that the shareholders pay for the shares and their par value. Under Cayman Law, the amount in this type of account may be applied by the Company to pay distributions or dividends to members, pay up unissued shares to be issued as fully paid, for redemptions and repurchases of own shares, for writing off preliminary expenses, recognized expenses, commissions or for other reasons. All distributions are subject to the Cayman Solvency Test which addresses the Company’s ability to pay debts as they fall due in the natural course of business. (c) Treasury Shares On October 1, 2021, as a result of the merger of XPart into XP Inc., which was settled through XP Inc.’s own shares, the Group recognized an amount of treasury shares that is registered as a deduction from equity until the shares are cancelled or reissued. As of December 31, 2021, the Group held 726,776 thousand shares in treasury (nill in 2020), with an amount of R$171,939. (d) 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. For the years ended December 31, 2021 and 2020 XP Inc. did not declare and paid dividends to the shareholders. Non-controlling shareholders of some XP Inc’s subsidiaries received dividends in the year ended in December 31, 2021 and 2020 in a total amount of R$3,026 and R$5,567 respectively. (e) Other comprehensive income Other comprehensive income consists of changes in the fair value of financial assets at fair value through other comprehensive income, while these financial assets are not realized. Also includes gains (losses) on net investment hedge and foreign exchange variation of investees located abroad. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of transactions between related parties [abstract] | |
Related party transactions | 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 management compensation 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: 2021 2020 2019 Fixed compensation 8,801 6,335 4,821 Variable compensation 44,362 55,909 22,060 Total 53,163 62,244 26,881 In 2021 and 2020, 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. and XP Control. (b) Transactions with related parties The main transactions carried with related parties for year-end balances arising from such transactions are as follows: Assets/(Liabilities) Revenue/(Expenses) Relation and transaction 2021 2020 2021 2020 2019 Shareholders with significant influence (i) (2,096,701) (5,667,588) (60,177) (53,881) (49,779) Securities 194,892 112,127 4,270 9,629 10,381 Securities purchased under agreements to resell — — 19,098 — 1,550 Accounts receivable and Loans operations 9,205 11,238 744 505 1,025 Securities sold under repurchase agreements (2,300,798) (5,780,430) (84,268) (62,951) (58,078) Borrowings — (10,523) (21) (1,064) (4,657) (i) These transactions are mainly related to Itausa S.A. Group. 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 | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of other provisions [abstract] | |
Provisions and contingent liabilities | Provisions and contingent liabilitiesThe 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. 2021 2020 Tax contingencies 10,374 10,097 Civil contingencies 12,539 4,281 Labor contingencies 6,395 5,333 Total provision 29,308 19,711 Judicial deposits (i) 11,202 10,199 (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 year 2021 2020 2019 Balance at January 1 19,711 15,193 17,474 Monetary correction 6,837 4,102 2,492 Provision 8,457 3,499 2,338 Reversed (3,132) (1,454) (3,939) Payments (2,565) (1,629) (3,172) Balance at December 31 29,308 19,711 15,193 Nature of claims a) Tax As of December 31, 2021, the Group has claims classified as probable risk of loss in the amount of R$10,374 (December 31, 2020 - R$10,097), 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. These lawsuits are supported by court deposits in its entirety. b) Civil The majority of the civil and administrative 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 customers assets in portfolio due to margin cause and/or negative balance. As of December 31, 2021, there were 105 civil and administrative claims for which the likelihood of loss has been classified as probable, in the amount of R$12,539 (December 31, 2020 - R$4,281). An amount of R$758 was deposited in court as of December 31, 2021 (December 31, 2020 – R$100). 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, 2021, the Company and its subsidiaries are the defendants in approximately 18 cases involving labor matters for which the likelihood of loss has been classified as probable, in the amount of R$6,395 (December 31, 2020 - R$5,333). 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$487,121 (December 31, 2020 - R$217,426). Below is summarized these claims by nature: 2021 2020 Tax (i) 228,602 71,027 Civil (ii) 232,775 136,228 Labor 25,744 10,171 Total 487,121 217,426 (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 the 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. In November 2021, 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 2017, allegedly in violation of Brazilian Law 10,101/00 and non-deductible expenses for the income tax in amount of received by the members of Council. The amount claimed is R$97,456. An administrative appeal was filed against the assessment, which is awaiting judgment by the Federal Revenue of Brazil (“RFB”). In December 2021, the Group received a tax assessment in total amount of R$58,262 for benefits that occurred in 2016, regarding the amortized goodwill originated in the acquisition of the General Atlantic and Actis at XP CCTVM in different years (2013 and 2016). An administrative appeal was filed against the assessment, which is awaiting judgment by the Federal Revenue of Brazil (“RFB”). (ii) The Group is defendant in 586 civil and administrative 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 | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Total revenue and income | 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: 2021 2020 2019 Major service lines Brokerage commission 2,465,217 2,139,985 1,288,135 Securities placement 1,917,403 1,429,824 1,154,786 Management fees 1,489,736 1,224,125 1,035,224 Insurance brokerage fee 133,070 112,802 106,438 Educational services 71,295 118,272 97,986 Commissions Fees 192,923 90,804 48,413 Other services 532,035 386,780 227,054 6,801,679 5,502,592 3,958,036 (-) Sales taxes and contributions on revenue (i) (605,214) (486,104) (362,264) 6,196,465 5,016,488 3,595,772 (i) Mostly related to taxes on services (ISS) and contributions on revenue (PIS and COFINS). b) Net income from financial instruments 2021 2020 2019 Net Income of financial instruments at fair value through profit or loss 7,555,132 3,020,698 1,360,207 Net Income of financial instruments measured at amortized cost and at fair value through other comprehensive income (1,558,060) 188,196 199,947 (-) Taxes and contributions on financial income (116,425) (73,777) (28,118) 5,880,647 3,135,117 1,532,036 c) Disaggregation by geographic location 2021 2020 2019 Brazil 11,723,976 7,454,304 4,790,236 United States (ii) 332,046 655,817 307,456 Europe 21,090 41,484 30,116 Total Revenue and Income 12,077,112 8,151,605 5,127,808 2021 2020 Brazil 7,698,115 3,244,421 United States (ii) 106,736 129,956 Europe 1,746 4,123 Selected assets (i) 7,806,597 3,378,500 (i) Selected assets are Total assets of the Group, less: cash, financial assets and deferred tax assets are presented by geographic location. (ii) Includes revenues and selected assets stated in the Cayman Islands. None of the clients represented more than 10% of our revenues for the periods presented. |
Operating costs
Operating costs | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Operating costs | Operating costs 2021 2020 2019 Commission and incentive costs 2,719,611 2,087,197 1,269,309 Operating losses 35,844 31,295 13,922 Other costs 674,654 526,867 313,419 Clearing house fees 411,605 344,278 201,083 Third parties’ services 88,431 92,997 76,669 Other 174,618 89,592 35,667 Total 3,430,109 2,645,359 1,596,650 |
Operating expenses by nature
Operating expenses by nature | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Operating expenses by nature | Operating expenses by nature 2021 2020 2019 Selling expenses 227,483 134,915 155,115 Advertising and publicity 227,483 134,915 155,115 Administrative expenses 4,692,698 3,013,598 1,891,481 Personnel expenses 3,427,220 2,138,470 1,261,887 Compensation 1,416,247 846,742 408,394 Employee profit-sharing and bonus 1,362,046 807,640 645,992 Executives profit-sharing 143,763 194,419 67,547 Benefits 130,187 75,302 47,457 Social charges 358,878 208,151 88,960 Other 16,099 6,216 3,537 Other taxes expenses 53,603 44,029 39,691 Depreciation of property and equipment and right-of-use assets 68,618 67,422 53,530 Amortization of intangible assets 163,112 75,839 37,630 Other administrative expenses 980,145 687,838 498,743 Data processing 450,796 322,659 178,860 Technical services 167,984 101,389 85,782 Third parties' services 249,514 168,019 145,730 Rent expenses 16,498 17,955 10,575 Communication 30,041 29,311 17,495 Travel 13,282 9,923 21,676 Legal and judicial 9,292 6,976 3,406 Other 42,738 31,606 35,219 Total 4,920,181 3,148,513 2,046,596 |
Other operating income, net
Other operating income, net | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Other operating income, net | Other operating income, net 2021 2020 2019 Other operating income 413,665 377,480 208,245 Revenue from incentives from Tesouro Direto, B3 and others (a) 366,163 352,879 101,615 Interest received on tax 7,604 5,521 31,782 Recovery of charges and expenses 4,473 1,798 53,453 Reversal of operating provisions 7,422 1,366 9,767 Other 28,003 15,916 11,628 Other operating expenses (89,311) (206,427) (54,888) Legal, administrative proceedings and agreement with customers (3,667) (45,277) (9,499) Losses on write-off and disposal of assets (4,377) (52,102) (10,265) Tax incentive expenses (10,788) (8,136) (7,060) Fines and penalties (1,378) (16,995) (1,191) Associations and regulatory fees (11,714) (13,524) (4,216) Charity (30,171) (41,654) (6,751) Other (27,216) (28,739) (15,906) Total 324,354 171,053 153,357 (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. |
Share-based plan
Share-based plan | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
Share-based plan | 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 plan, stocks are awarded at no cost to the recipient upon their grant date. Both RSUs and PSU, are usually granted in a annual basis, their vesting conditions are service-related and they vest at a rate determined in each granted date. The limit to vest is determined at the grant date of each new grant. After the vesting periods, common shares will be issued to the recipients. Under the Performance Share Unit, stocks are granted to eligible participants and their vesting period and conditions are determined at each new granted also based on the total shareholder return (TSR), including share price growth, dividends and capital returns. If an eligible participant ceases its relationship with the Group, within the vesting period, the rights will be forfeited, except in limited circumstances that are approved by the board on a case-by-case basis. 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, 2021, the outstanding number of Company reserved under the plans were 18,119,890 (December 31, 2020 - 13,899,648) including RSUs 15,153,830 (December 31, 2021 - 11,079,736) and 2,966,060 PSUs (December 31, 2020 - 2,819,912). Set out below are summaries of XP Inc's RSU and PSU activity for 2021 and 2020. RSUs PSUs Total (In thousands, except weighted-average data, and where otherwise stated) Number of units Number of units Number of units Outstanding, January 1 2020 1,921,669 2,190,377 4,112,046 Granted 9,730,422 629,535 10,359,957 Forfeited (572,355) — (572,355) Outstanding, December 31, 2020 11,079,736 2,819,912 13,899,648 Outstanding, January 1, 2021 11,079,736 2,819,912 13,899,648 Granted 5,709,046 230,086 5,939,132 Forfeited (1,634,952) (83,938) (1,718,890) Outstanding, December 31, 2021 15,153,830 2,966,060 18,119,890 No options expired or vested during the periods covered by the above table. As of December 31, 2021, total compensation expense of the plans was R$654,876 (2020 - R$292,817), including R$93,421 (2020 - R$60,026) of tax provisions. |
Earnings per share (basic and d
Earnings per share (basic and diluted) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per share [abstract] | |
Earnings per share (basic and diluted) | Earnings per share (basic and diluted) Basic earnings per share is calculated by dividing net income for the period attributed to the owners of the parent by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share is calculated by dividing net income attributable to owners of XP Inc by the weighted average number of shares outstanding during the year plus the weighted average number of shares that would be issued on conversion of all dilutive potential shares into shares. The shares in the share-based plan are the only shares with potential dilutive effect. The following table presents the calculation of net income applicable to the owners of the parent and basic and diluted EPS for the years ended December 31, 2021, 2020 and 2019. 2021 2020 2019 Net Income attributable to owners of the Parent 3,589,416 2,076,430 1,080,484 Basic weighted average number of outstanding shares 559,004 552,291 511,462 Basic earnings per share - R$ 6.4211 3.7597 2.1125 Effect of dilution Shared-based plan and treasury shares 14,496 6,817 248 Diluted weighted average number of outstanding shares 573,499 559,108 511,710 Diluted earnings per share - R$ 6.2588 3.7138 2.1115 (i) See on note 25, the number of XP Inc.’s outstanding common shares during the year (ii) See on note 32, the number of shares granted and forfeited during the year regarding XP Inc.’s Share-based plan. (iii) Thousands of shares. |
Determination of fair value
Determination of fair value | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Determination of fair value | 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 an 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. • Others: Derivatives – the warrant liabilities issued by XPAC Corporation Corp. contain features that qualify as embedded derivatives. The fair value of Public Warrants issued in connection with the Initial Public Offering have been measured based on the listed market price of such warrants. • 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 operations – 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. All of the resulting fair value estimates are included in level 2, except for unlisted equity securities, contingent consideration receivable and certain financial assets, where the fair values. have been determined based on present values and the discount rates used were adjusted for counterparty or own credit risk. 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: 2021 Level 1 Level 2 Level 3 Fair Value Book Value Financial Assets Financial assets at Fair value through profit or loss Securities 49,677,779 8,502,176 — 58,179,955 58,179,955 Derivative financial instruments 194,911 10,748,803 — 10,943,714 10,943,714 Fair value through other comprehensive income Securities 32,332,377 — — 32,332,377 32,332,377 Evaluated at amortized cost Securities 1,870,205 671,977 — 2,542,182 2,238,807 Securities purchased under agreements to resell — 9,124,719 — 9,124,719 8,894,531 Securities trading and intermediation — 1,405,651 — 1,405,651 1,405,651 Accounts receivable — 469,086 — 469,086 469,086 Loan operations — 12,844,037 — 12,844,037 12,819,627 Other financial assets — 461,515 — 461,515 461,515 Financial liabilities Fair value through profit or loss Securities loaned 2,237,442 518,804 — 2,665,202 2,665,202 Derivative financial instruments 157,710 11,750,473 — 11,908,183 11,908,183 Evaluated at amortized cost Securities sold under repurchase agreements — 26,276,252 — 26,276,252 26,281,345 Securities trading and intermediation — 15,597,555 — 15,597,555 15,597,555 Financing instruments payable — 23,974,348 — 23,974,348 24,429,086 Borrowings — 1,932,859 — 1,932,859 1,928,782 Accounts payables — 867,526 — 867,526 867,526 Other financial liabilities — 6,937,029 743,443 7,680,472 7,680,472 Investments in associates measured at fair value — — 1,221,424 1,221,424 1,221,424 2020 Level 1 Level 2 Level 3 Fair Value Book Value Financial Assets Financial assets at Fair value through profit or loss Securities 35,549,047 14,040,966 — 49,590,013 49,590,013 Derivative financial instruments 26,535 7,532,898 — 7,559,433 7,559,433 Fair value through other comprehensive income Securities 19,039,044 — — 19,039,044 19,039,044 Evaluated at amortized cost Securities 1,830,031 — — 1,830,031 1,828,704 Securities purchased under agreements to resell — 6,627,044 — 6,627,044 6,627,409 Securities trading and intermediation — 1,051,566 — 1,051,566 1,051,566 Accounts receivable — 506,359 — 506,359 506,359 Loan operations — 4,037,954 — 4,037,954 3,918,328 Other financial assets — 69,971 — 69,971 69,971 Financial liabilities Fair value through profit or loss Securities loaned 2,237,442 — — 2,237,442 2,237,442 Derivative financial instruments 13,221 7,806,143 — 7,819,364 7,819,364 Evaluated at amortized cost Securities sold under repurchase agreements — 31,810,893 — 31,810,893 31,839,344 Securities trading and intermediation — 20,303,121 — 20,303,121 20,303,121 Financing instruments payable — 5,162,453 — 5,162,453 5,551,849 Borrowings — 283,993 — 283,993 284,087 Debentures — 331,520 — 331,520 335,250 Accounts payables — 859,550 — 859,550 859,550 Other financial liabilities — 1,244,232 462,000 1,706,232 1,706,232 As of December 31, 2021, and 2020 the total contingent consideration liability is reported at fair value and is dependent on the profitability of the acquired associate and businesses. The total contingent consideration is classified within Level 3 of the fair value hierarchy. The contingent consideration liability represents the maximum amount payable under the purchase and sale agreements discounted using a weighted average rate of 10.09% p.a. Change in the discount rate by 100 bps would increase/decrease the fair value by R$18,751. The change in the fair value in the contingent consideration between the acquisition date and December 31, 2021 was not material. The investments held through XP FIP Managers, which is considered to be a venture capital investment is classified as Level 3 of the fair value hierarchy. The inputs used by the Group are derived for discounted rates for these investments using a capital asset model to calculate a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the asset. Change in the discount rate by 100 bps would increase/decrease the fair value by R$12,214. Transfers into and out of fair value hierarchy levels are analyzed at the end of each consolidated financial statement. As of December 31, 2021, the Group had no transfers between Level 2 and Level 3. |
Management of financial risks a
Management of financial risks and financial instruments | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Management of financial risks and financial instruments | 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 other 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 seeks 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. For the loan operations 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. The loans operations have a high credit quality and the Group often uses risk mitigation measures, primarily through client’s investments as collaterals, which explains the low provision ratio. The Group's policies regarding obtaining collateral have not significantly changed during the reporting period and there has been no significant change in the overall quality of the collateral held by the Group since the prior period. Management undertakes credit quality analysis of assets that are not past due or reduced to recoverable value. As of December 31, 2021, and 2020 such assets were substantially represented by Loan operations and 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: 2021 2020 Financial assets Securities purchased under agreements to resell 8,894,531 6,627,409 Securities 92,751,139 70,457,761 Public securities 48,246,922 51,944,301 Private securities 44,504,217 18,513,460 Derivative financial instruments 10,943,714 7,559,433 Securities trading and intermediation 1,405,651 1,051,566 Accounts receivable 469,086 506,359 Loan operations 12,819,627 3,918,328 Other financial assets 461,515 69,971 Off-balance exposures (credit card limits) 1,367,399 35,810 Total 129,112,662 90,190,827 (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: 2021 Liabilities Up to 1 month From 2 to 3 months From 3 to 12 months From 1 to 5 years Above 5 years Contractual cash flow Securities loaned 2,146,398 — — — 518,804 2,665,202 Derivative financial instruments 758,821 1,379,092 2,250,942 6,436,008 1,083,320 11,908,183 Securities sold under repurchase agreements 26,281,345 — — — — 26,281,345 Securities trading and intermediation 15,597,555 — — — — 15,597,555 Financing instruments payable 982,877 1,245,279 5,790,698 15,525,061 885,171 24,429,086 Borrowings — — 1,661,067 267,715 — 1,928,782 Accounts payables 867,526 — — — — 867,526 Other financial liabilities 5,856,309 — 4,365 1,819,798 — 7,680,472 Total 52,490,831 2,624,371 9,707,072 24,048,582 2,487,295 91,358,151 2020 Liabilities Up to 1 month From 2 to 3 months From 3 to 12 months From 1 to 5 years Above 5 years Contractual cash flow Securities loaned 2,237,442 — — — — 2,237,442 Derivative financial instruments 1,572,140 814,220 2,643,065 2,205,410 584,529 7,819,364 Securities sold under repurchase agreements 31,839,344 — — — — 31,839,344 Securities trading and intermediation 20,303,121 — — — — 20,303,121 Financing instruments payable 128,426 58,966 2,356,082 1,685,468 1,322,907 5,551,849 Borrowings 3,535 6,989 7,114 266,449 — 284,087 Accounts payables 859,550 — — — — 859,550 Other financial liabilities 1,038,628 5,721 25,454 571,054 65,375 1,706,232 Total 57,982,186 885,896 5,031,715 4,728,381 1,972,811 70,600,989 (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 limits, and may refuse, in whole or in part, to receive and/or execute the requested transactions, upon immediate communication to customers, in addition to intervening in cases of non-compliance and reporting all atypical events to the Committee. 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 with the operational limits, the Treasury Manager shall take the necessary measures to reframe as quickly as possible. (e1) Currency risk The purpose of Company’s management of foreign exchange exposure is to mitigate the effects arising from variation in foreign exchange rates, which may present high- volatility periods. The currency (or foreign exchange) risk arises from positions that are sensitive to oscillations in foreign exchange rates. These positions may be originated by financial instruments that are denominated in a currency other than the functional currency in which the balance sheet is measured or through positions in derivative instruments (for negotiation or hedge) and investments in subsidiaries abroad. The Group hold interest in XP Holding International, XP Advisors Inc, and XP Holding UK Ltd, whose equity as of December 31, 2021 was US$52,905 thousand (US$46,534 thousand as of December 31, 2020), US$2,658 thousand (US$801 thousand as of December 31, 2020) and GBP 1,918 thousand (GBP 2,268 thousand as of December 31, 2020) respectively. The risk of the XP Holding International and XP Advisors Inc, is hedged with the objective of minimizing the volatility of the functional currency (BRL) against the US$ arising from foreign investment abroad (see Note 9). The foreign currency exposure risk of XP Holding UK Ltd, is not hedged. (e2) Interest rate risk It arises from the possibility that the Group incurs 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 • 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. 2021 Trading portfolio Exposures Scenarios Risk factors Risk of variation in: I II III Pre-fixed Pre-fixed interest rate in Reais (285) (110,555) (204,607) Exchange coupons Foreign currencies coupon rate (35) (5,578) (11,325) Foreign currencies Exchange rates (364) 177,203 384,340 Price indexes Inflation coupon rates (248) (53,407) (103,602) Shares Shares prices (1,483) (131,753) 92,024 Seed Money (i) Seed Money (6,203) (155,068) (310,136) (8,618) (279,158) (153,306) 2020 Trading portfolio Exposures Scenarios Risk factors Risk of variation in: I II III Pre-fixed Pre-fixed interest rate in Reais (191) (9,056) (33,402) Exchange coupons Foreign currencies coupon rate (379) (5,508) (11,184) Foreign currencies Exchange rates (1,997) (169,318) (373,807) Price indexes Inflation coupon rates (311) (14,384) (28,434) Shares Shares prices (4,957) (107,704) (167,737) (7,835) (305,970) (614,564) (i) Related to seed money strategy, which includes several risk factors that are disclosed in aggregate. 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 interest yield, exchange coupons, inflation and interest rates, both rise and fall, being considered the largest losses resulting from the risk factor. (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 | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Capital management | Capital Management The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern, so that it 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 based on the net debt and the gearing ratio. Net debt is calculated as total debt (including borrowings, lease liabilities, Structured financing 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 December 2021 and 2020 were as follows: 2021 2020 Group debt (Note 37) (i) 7,073,021 827,785 Structured financing (Note 20 (b)) 2,415,400 874,771 Total debt 9,488,421 1,702,556 Cash (2,485,641) (1,954,788) Securities purchased under agreements to resell (Note 6 (a)) (1,071,328) (593,673) Certificate deposits (Securities) (Note 7 (a)) (194,892) (111,927) Net debt 5,736,560 (957,832) Total equity 14,416,836 10,894,609 Total capital 20,153,396 9,936,777 Gearing ratio % 28.46% (9.64)% (i) Includes Debentures and Bonds designated as fair value through profit or loss. See Note 7(e) and 17, respectively. (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 (which includes Banco XP), under BACEN regulation regime, is required to maintain a minimum capital and follow aspects from the Basel Accord. 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”), CMR is equivalent to the highest value between base capital and venture capital Liquidity (“CR”). On December 31, 2021 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 19 and 20), the Group is required to comply with certain performance conditions, such as profitability and efficiency indexes. As of December 31, 2021, the amount of debt contracts under financial covenants is R$446,005 (December 31, 2020 – R$619,337). 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 | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of reconciliation of liabilities arising from financing activities [abstract] | |
Cash flow information | Cash flow information (i) Debt reconciliation Debt securities (i) Borrowings Lease liabilities Debentures Bonds Total 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 Total debt as of January 1, 2020 382,078 255,406 835,230 — 1,472,714 Acquisitions / Issuance — 55,820 — — 55,820 Write-off — (78,321) — — (78,321) Payments (95,395) (57,473) (400,000) — (552,868) Repurchase — — (64,717) — (64,717) Revaluation — (10,050) — — (10,050) Net foreign exchange differences — 23,610 — — 23,610 Interest accrued 11,892 19,456 21,473 — 52,821 Interest paid (14,488) — (56,736) — (71,224) Total debt as of December 31, 2020 284,087 208,448 335,250 — 827,785 Total debt as of January 1, 2021 284,087 208,448 335,250 — 827,785 Acquisitions / Issuance 1,570,639 116,248 500,018 3,691,262 5,878,167 Payments (21,022) (55,349) (177,826) — (254,197) Revaluation — 24,234 — — 24,234 Net foreign exchange differences 73,426 7,486 — 431,250 512,162 Interest accrued 21,689 17,488 60,919 74,798 174,894 Interest paid (37) — (12,386) (69,004) (81,427) Total debt as of December 31, 2021 1,928,782 318,555 705,975 4,128,306 7,081,618 (i) Debt securities includes Debentures measured at FVPL presented in Note 7(e) and does not include fair value adjustments of (i) Debentures - R$18,077 and (ii) Bonds - R$9,480 (December 31, 2020: nil). (ii) Non-cash investing and financing activities Non-cash investing and financing activities disclosed in other notes are: (i) related to business acquisitions through accounts payables and contingent consideration – see note 5(ii) – R$6,381, and (ii) related to Acquisition of investment in associates through accounts payables – see note 15 – R$97,009 and through private issuance of shares R$112,642. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of events after reporting period [Abstract] | |
Subsequent events | Subsequent events Acquisitions (i) Banco Modal S.A On January 6, 2022, the Group entered into a binding agreement to acquire up to 100% of the total share of Banco Modal which will be paid with up to 19.5 million newly issued XP Inc. Class A shares or Brazilian Depository Receipts (BDR), implying a premium of 35% over Banco Modal’s last thirty days average price. The companies share the common goal of exceeding clients’ expectations and democratizing access to high quality and low-cost financial products and services. The acquisition is expected to deliver solid and sustainable accretion to the shareholders of both companies. The acquisition is pending approval of the Brazilian Central Bank (BACEN) and Administrative Council for Economic Defense (CADE). (ii) Minority stake acquisitions a) Suno Controle S.A. On January 3, 2022, the Group agreed to acquire a stake of 40% of the total capital of Suno Controle S.A. (“Suno”). The Company produces free financial content including analyses, news, books, courses, among others, and also distributes paid content through a digital ecosystem, offering personal financial data consolidation, investment recommendations, and advisory. The transaction allows XP and Suno to offer their customers a differentiated financial content experience with the guidance of one of the most influential digital authorities regarding finance in Brazil, and accelerate the growth of Suno Asset. b) Estratégia & Timing On January 4, 2022, the Group acquired a minority stake of 45% of the total capital of Estratégia & Timing Análises e Educação Financeira S.A. (“Estratégia & Timing”). The Company's main activity is advisory, consulting, guidance and educational operational assistance in the financial area for business and investment management. c) Etrnity On January 19, 2022, the Group acquired a stake of 20% of the total capital of Etrnity Holding S.A. (“Etrnity”). the Company is a holding company used as an exclusive vehicle to participate, directly or indirectly, in companies that act or will act in the financial and capital markets. The transaction allows XP to intensify its services in the financial market. d) AZ Quest On January 19, 2022, the Group acquired a stake of 5% of the total capital of AZ Quest S.A. (“AZ Quest”). The Company is one of the largest and most traditional independent asset management companies in Brazil, it has a diversified product platform that includes equity, macro, private credit and arbitrage strategies. The acquisition is part of XP's strategy to develop the most complete ecosystem of managers and distributors in Brazil. (iii) Ukraine conflicts In February 2022 the invasion of Ukraine by Russia generated international sanctions taken by the United States and North Atlantic Treaty Organization (“NATO”) that have a impact on regional and global economies. Such events could have an adverse effect on Company’s business and financial performance, through increased worldwide inflation, increased costs of compliance, higher volatility in foreign currency exchange rates and increases in expected credit losses from our clients that sell goods to Russia counterparties. The impact is compounded by the decision of some global companies to limit or cease operations in Russia. We do not expect a material impact to our consolidated results if the situation escalates. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of preparation | 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$”),our functional currency, and all amounts disclosed in the financial statements and notes have been rounded off to the nearest thousand currency units unless otherwise stated. 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. |
Segment reporting | 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 28), 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 28 (c) for a breakdown of revenues and income and selected assets from external customers by country of domicile. |
Foreign currency translation | 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. All other foreign exchange gains and losses are presented in the statement of income on a net basis within interest expense on debt. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. For example, translation differences on non-monetary assets and liabilities such as equities held at fair value through profit or loss are recognized in profit or loss as part of the fair value gain or loss and translation differences on non-monetary assets such as equities classified as at fair value through other comprehensive income are recognized in other comprehensive income. (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 income 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. |
Business combinations | 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 equity interest in the subsidiary. 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 interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of the acquired entity’s net identifiable assets. Acquisition-related costs are expensed as incurred. The excess of the consideration transferred, amount of any non-controlling interest in the acquired entity, and acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognized directly in profit or loss as a bargain purchase. 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 acquirer 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 | 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 Group’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 Group’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 profit or loss. The net gain or loss recognized in profit or loss includes any dividend or interest earned on the financial asset. Financial assets measured at FVPL consist of Securities owned and sold short. A derivative embedded in a hybrid contract, with a financial liability or non-financial host, is separated from the host and accounted for as a separate derivative if: (i) the economic characteristics and risks are not closely related to the host; a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative; (ii) and the hybrid contract is not measured at FVPL. Embedded derivatives are measured at fair value with changes in fair value recognized in profit or loss. Reassessment only occurs if there is either a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required or a reclassification of a financial asset out of the FVPL category. 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. Investments held in trust account The Group has a certain class of securities owned by one of our subsidiaries, which qualify as financial instruments, primarily due to their short-term nature. These securities are classified as FVPL. The Group’s investments held in the trust account are comprised of money market funds and are recognized at fair value with the changes in fair value recognized in the consolidated statements of income. The estimated fair value of the investments held in the trust account is determined using available market information. (i) 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 profit or loss. 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 basis. Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognized as income in the profit or loss 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. (ii) 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', ‘Loan operations’, 'Accounts receivable' and 'Other financial assets. The Group 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. Expected credit loss on financial assets The Group recognizes 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. The Group classifies assets in three stages to measure the expected credit loss, in which the financial assets migrate from one stage to another in accordance with the changes in credit risk. Stage 1: overdue less than 30 days. It is understood that a financial instrument in this stage does not present a significant increase in the risk since initial recognition. The provision for this asset represents the expected loss resulting from possible noncompliance in the next 12 months. Stage 2: overdue 30 days. If a significant increase in the risk is identified from the initial recognition, and no deterioration is realized, the financial instrument falls within this stage. In this case, the amount related to the provision for expected loss reflects the estimated loss of the financial instrument remaining life (lifetime). Stage 3: overdue 90 days. 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. For accounts receivables, and other financial 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. 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’, 'Derivative financial instruments', 'Securities purchased under agreements to resell', 'Securities trading and intermediation', long-term debts such as 'Borrowings and ‘Financing Instruments payable – Debt securities', '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 profit or loss. 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) Financial liabilities designated at FVPL Classification and subsequent measurement The Group applied the fair value option as an alternative measurement for selected financial liabilities. Financial liabilities can be irrevocably designated as measured at FVPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases, or a group of financial instruments is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy. The amount of change in the fair value of the financial liabilities designated at FVPL that is attributable to changes in the credit risk of that liabilities shall be presented in other comprehensive income. See more information in Note 6. (iii) 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. This category generally applies to Securities sold under repurchase agreements, ‘Securities trading and intermediation’, 'Borrowings', 'Financing Instruments Payable', 'Accounts payables', ‘Lease liabilities’ and 'Other financial liabilities'. (iv) Commitments subject to possible redemption XPAC Acquisition Corp. redeemable shares The Group accounts for the common stock subject to redemption in cash held by the non-controlling interest holders of XPAC Acquisition Corp., a consolidated subsidiary, as a financial liability measured at amortized cost. The instrument is initially recognized at fair value, net of derivative warrant liabilities component and the corresponding eligible transaction costs. The warrant component issued to the non-controlling interest holders of XPAC Acquisition Corp. are separately accounted as derivatives and measured at fair value with the change in fair value recorded in the statement of income. 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 profit or loss. 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 34. 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. Derivatives are initially recognized at fair value on the date a derivative contract is entered into, and they are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged. The group designates certain derivatives as either: • hedges of the fair value of recognized assets or liabilities or a firm commitment (fair value hedges), or • hedges of a net investment in a foreign operation (net investment hedges). At inception of the hedge relationship, the group documents the economic relationship between hedging instruments and hedged items, including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of hedged items. The group documents its risk management objective and strategy for undertaking its hedge transactions. 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. a) 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. b) Derivative warrant liabilities The Group evaluates if the warrants issued in connection with the Initial Public Offering (the “Public Warrants”) and the Private Placement Warrants issued by XPAC Acquisition Corp. are derivatives or contain features that qualify as embedded derivatives in accordance with IFRS 9 – Financial Instruments. The Group’s derivatives instruments are recorded at Financial instruments measure at fair value through profit or loss. Accordingly, the Group recognizes the warrant as financial liabilities at fair value and remeasures the warrants at fair value at each reporting period. The liabilities are subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the Group’s consolidated statements of income. The fair value has been measured based on the listed market price of such warrants. |
Cash and cash equivalents | Cash and cash equivalentsCash 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 | Securities purchased under agreements to resell and obligations related to securities sold under repurchase agreementsThe 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) | 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 customers 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 expected credit losses. Significant financial difficulties of the customer, probability that the customer will enter bankruptcy or financial reorganization, and default in payments are all considered indicators that a loss allowance may be required. If the credit risk increases to the point that it is considered to be credit impaired, interest income will be calculated based on the gross carrying amount adjusted for the loss allowance. A significant increase in credit risk is defined by management as any contractual payment which is more than 30 days past due. 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 were immaterial for all periods presented. |
Loan operations | Loan operations Loan operations consist in arrangements under which clients can borrow stipulated amounts under defined terms and conditions. They are subsequently measured at amortized cost using the effective interest method, less expected credit loss. See note 10 for further information about the Group’s accounting for Loan Operations and note 3(vi) for a description of the Group’s Expected Losses on Financial Assets. Interest income from these financial assets is included in Net income from financial instruments at amortized cost using the effective interest rate method. Any gain or loss arising on derecognition of the loan operations is recognized directly in profit or loss and presented in Note 14. Expected credit losses are presented as a separate line item in profit or loss. |
Prepaid expenses | Prepaid expensesPrepaid 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. Prepaid expenses are amortized in profit or loss in the period in which the benefits of such incentives are realized. |
Leases | Leases Right-of-use assets The Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognized right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are subject to impairment. 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 fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expense in the period on which the event or condition that triggers the payment occurs. 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 fixed lease payments or a change in the assessment to purchase the underlying asset. Short-term leases and leases of low-value assets 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 assets recognition exemption to leases that are considered of low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term. Significant judgement in determining the lease term of contracts with renewal options The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. 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 | 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 % Vehicle 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 | 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 interest in the acquiree; and (iii) the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired. If the total of the consideration transferred, non-controlling interest recognized and previously held interest measured at fair value is less than the fair value of the net assets of the subsidiary acquired, in the case of a bargain purchase, the difference is recognized directly in profit or loss. 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 development costs, as well as maintenance and training costs, are expensed as incurred. In certain circumstances, management may determine that previously developed software and its related expense no longer meets management’s definition of feasible, which could then result in the impairment of such assets. 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, 2021 and 2020, 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 | Impairment of non-financial assets 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 assets other than goodwill that were adjusted due to impairment are subsequently reviewed for possible reversal of the impairment at the balance sheet date. The impairment of goodwill recognized in the profit or loss is not reversed. |
Taxes | 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: • Actual Profit Method (“APM”), where the taxpayer calculates both taxes based on its actual taxable income, after computing all income, gains and tax-deductible expenses, including net operating losses of prior years. Taxes calculated under the APM method are due quarterly or annually depending on entity’s adoption through the first collection document of each calendar year. APM annual method requires taxpayers to make monthly prepayments of IRPJ and CSLL during the calendar-year. • Presumed Profit Method (“PPM”), where the 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 the Brazilian Revenue Service (“RFB”) according to the type of services rendered and/or goods sold. Under the PPM method, both taxes are due on a quarterly basis and no prepayment is required during the quarters. This method can be adopted only by entities with gross revenue up to an 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 insurance companies (i.e., XP Vida e Previdência) are subject to a higher CSLL rate of 15%. As of March, 2020, Brazilian banks (i.e. Banco XP) are subject to a CSLL rate of 20%. As of July 2021, the rate of CSLL was increased in 5% for all Brazilian financial entities until December, 2021. Therefore, Brazilian banks are subject to a CSLL rate of 25% and all other financial entities, including insurance companies, are subject to a rate of 20% by means of federal Law 13.148/2021. 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 profit or loss. 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 28) 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 12) 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 method. The non-cumulative method is mandatory to companies that calculate income tax under the Actual Profit Method (APM). The applicable rates of PIS and COFINS are 1.65% e 7.60%, respectively. 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 28) 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 | 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 equity security 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 28 b). |
Debt securities and Borrowings | Debt securities and Borrowings Debt securities classified as Debentures, Bonds, Promissory Notes and Borrowings are initially recognized at fair value, net of transaction costs incurred, and subsequently carried at amortized cost. Any differences between the proceeds (net of transaction costs) and the total amount payable is recognized in profit or loss over the period of the borrowings using the effective interest rate method.Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as interest expense on debt in the statement of income. |
Accounts payables | Accounts payablesAccounts 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 | 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 the Group do not contain significant insurance risk where the Group 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 | 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 rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the time elapsed is recognized as interest expense. |
Employee benefits | Employee benefits i) Short-term obligations Liabilities in connection with short-term employee benefits are measured on a non-discounted basis and are expensed as the related service is provided. 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 Group launched two share-based plans, the Restricted Stock Unit “RSU” and the Performance Share Unit (“PSU”). The shared-based plans are designed to provide 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 performance vesting conditions (i.e. remaining an employee of the entity over a specified time), and; • Including the impact of any non-vesting conditions (i.e. the requirement for participants to save or hold shares for a specific period of time). 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 vesting conditions. The Company recognizes the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity. 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 transaction 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 32. 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 broadly 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. iv) Founder Shares The issuance of founder shares and warrants by the SPAC falls within the scope of IFRS 2 as the founders (including management team) are being awarded these shares at a nominal price in exchange for their services, operating as management of the SPAC. As a result, the share-based payment would be measured at the grant date. The founder shares do not carry a specified service period but would be forfeited or otherwise expire worthless if a business combination is not consummated. Therefore, the founders only derive the value from the founder shares when they are converted into Class A shares upon a successful business combination. As of 31 December 2021, no amounts are accrued as such no business combination has occurred. |
Share capital | Share capitalCommon 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. |
Treasury shares | Treasury shares Own equity instruments that are reacquired (treasury shares) are recognized at cost and deducted from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of the Group’s own equity instruments. The difference between the sale price and the average price of the treasury shares is recorded as a reduction or increase in Capital Reserves. The cancellation of treasury shares is recorded as a reduction in Treasury shares against Capital Reserves, at the average price of treasury shares at the cancellation date. |
Earnings per share | 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 33). 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 (Note 33). |
Revenue and income | 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 provider 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 consists 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 relate 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) Commissions fees Commissions fees are recognized when XP provides or offers services to customers, in an amount that reflects the consideration XP expects to collect in exchange for those services. A five-step model is applied to account for revenues: 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) revenue recognition, when performance obligations agreed upon in agreements with clients are met. Incremental costs and costs to fulfill agreements with clients are recognized as an expense as incurred. vii) Other services Other services refer 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. |
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. |
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 unit (“CGU”) and, therefore, a 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 or more frequently if there is an impairment indicator. For the years ended December 31, 2021 and 2020, the recoverable amount of the single CGU was determined based on value-in-use calculations which require the use of assumptions. The calculations use cash flow projections based on financial budgets approved by management covering a four-year period. 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, 2021 and 2020 which did not result in the need to recognize impairment losses on the carrying value of goodwill. Key assumptions used in value-in-use calculations and sensitivity to changes in assumptions are: 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 model as a result of this expenditure. 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 discount rates Reflect specific risks relating to the relevant segments and the countries in which they operate. The long-term growth rate utilized in the impairment test of goodwill is 6.50%. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Disclosure Of Detailed Information About Depreciation Rates Of Property Plant 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 % Vehicle 10 % |
Disclosure Of Detailed Information About Useful Life 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, 2021 | |
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 incorporation Principal activities 2021 2020 2019 Directly controlled XP Investimentos S.A. Brazil Holding 100.00 % 100.00 % — XPAC Sponsor LLC (v) Cayman Special Purpose Acquisition (SPAC) Sponsor 100.00 % — — XProject LTD (v) Cayman Holding 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 Vida e Previdência S.A. (iv) Brazil Private pension and insurance 100.00 % 100.00 % 100.00 % Banco XP S.A. Brazil Multipurpose bank 100.00 % 100.00 % 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 100.00 % 100.00 % 99.99 % Tecfinance Informática e Projetos de Sistemas Ltda. Brazil Rendering of IT services 99.73 % 99.76 % 99.76 % XP Corretora de Seguros Ltda. Brazil Insurance Broker 99.99 % 99.99 % 99.99 % XP Gestão de Recursos Ltda. Brazil Asset management 94.90 % 94.80 % 93.70 % XP Finanças Assessoria Financeira Ltda. Brazil Investment consulting service 99.99 % 99.99 % 99.99 % Infostocks Informações e Sistemas Ltda. Brazil Mediation of information systems 99.99 % 99.99 % 99.99 % XP Advisory Gestão Recursos Ltda. Brazil Asset management 99.54 % 99.50 % 99.57 % XP Vista Asset Management Ltda. Brazil Asset management 99.50 % 99.45 % 99.42 % XP Controle 4 Participações S.A. Brazil Insurance holding 100.00 % 100.00 % 100.00 % Leadr Serviços Online Ltda. (vi) Brazil Social media — 99.99 % 99.99 % Spiti Análise Ltda. (ii) Brazil Investment Advisor — % 100.00 % 100.00 % % of Group’s interest (i) Entity name Country of incorporation Principal activities 2021 2020 2019 Chamaleon Bravery Unipessoal LDA (vi) Portugal Investment Advisor — 100.00 % 100.00 % XP Investments UK LLP UK Inter-dealer broker and Organized Trading Facility (OTF) 100.00 % 100.00 % 100.00 % Sartus Capital LTD UK Investment advisor 100.00 % 100.00 % 100.00 % XP Private (Europe) S.A. Switzerland Investment advisor — 100.00 % 100.00 % XP Holding UK Ltd UK International financial holding 100.00 % 100.00 % 100.00 % XP Investments US, LLC USA Broker-dealer 100.00 % 100.00 % 100.00 % Xperience Market Services LLC (vi) USA Non-operational — 100.00 % 100.00 % 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 PE Gestão de Recursos Ltda. Brazil Asset management 98.70 % 98.70 % — XP LT Gestão de Recursos Ltda. Brazil Asset management 92.00 % 92.00 % — Carteira Online Controle de Investimentos Ltda. - ME (iii) Brazil Investment consolidation platform 99.99 % 99.99 % — Antecipa S.A. (iii) Brazil Receivables Financing Market 100.00 % 100.00 % — XP Allocation Asset Management Ltda. Brazil Asset management 99.99 % 99.99 % — Track Índices Consultoria Ltda. Brazil Index Provider 100.00 % 100.00 % — XP Eventos Ltda. Brazil Media and Events 99.90 % 99.00 % — DM10 Corretora de Seguros Ltda. (iii) Brazil Insurance Broker 100.00 % 100.00 % — XP Comercializadora de Energia Ltda. (v) Brazil Energy trading 100.00 % — — Instituto XP (v) Brazil Non-profit entity 100.00 % — — XPAC Acquisition Corp. (vii) (v) US Special Purpose Acquisition (SPAC) 20.00 % — — XP Distribuidora de Títulos e Valores Mobiliários (v) Brazil Securities dealer 100.00 % — — Instituto de Gestão e Tecnologia da Informação Ltda. (v) (iii) Brazil Educational content services 100.00 % — — Xchange Intermediação S.A. (v) Brazil Digital Assets 100.00 % — — 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 (vi) Brazil Investment fund — 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 (vi) 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 % 100.00 % Frade III Fundo de Investimento em Cotas de Fundo de Investimento Multimercado Crédito Privado Brazil Investment fund 100.00 % 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 Brazil Investment fund 100.00 % 100.00 % — NIMROD Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior Brazil Investment fund 100.00 % 100.00 % — XP High Yield Fund SP Cayman Investment fund 100.00 % 100.00 % — XP International Fund SPC Cayman Investment fund 100.00 % 100.00 % — XP Managers Fundo de Investimento em Participações Multiestratégia Brazil Investment fund 100.00 % 100.00 % — XP Alesia Fund SP CL Shares - Brazil Internacional Fund SPC. (v) Cayman Investment fund 100.00 % — — Newave Fundo de Investimento em Participações Multiestratégia. (v) Brazil Investment fund 100.00 % — — % of Group’s interest (i) Entity name Country of incorporation Principal activities 2021 2020 2019 Endor Fundo de Investimento em Participações Multiestratégia Investimento no Exterior (v) 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) New subsidiaries acquired in 2020 and 2021. See further details in Note 5 (ii) below. (iv) 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. (v) New subsidiaries and investment funds incorporated in the year. (vi) Subsidiaries and investment funds closed or consolidated by other funds during the year. (vii) New subsidiaries which the Group holds operational control. The operational control refers to relevant rights the Company have over the subsidiary, that includes, among other topics, the right to nominate the directors and propose the target entity for merger. |
Summary of the net assets acquired, the goodwill | The fair value of the identifiable assets acquired and liabilities assumed as of each acquisition date were: 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: Fliper Antecipa DM10 Total Assets Cash 617 1,917 275 2,809 Other assets — 95 411 506 Intangible assets 2,869 10,037 2,950 15,856 3,486 12,049 3,636 19,171 Liabilities Other liabilities (6,159) (198) (1,522) (7,879) Total identifiable net assets at fair value (2,673) 11,851 2,114 11,292 Goodwill arising on acquisition (*) 39,832 20,732 14,886 75,450 Contingent consideration (**) 30,300 8,732 — 39,032 Purchase consideration transferred (*) 67,459 41,315 17,000 125,774 Analysis of cash flows on acquisition Net cash acquired with the subsidiary (617) (1,917) (275) (2,809) Payable in installments — (14,636) (6,000) (20,636) Contingent consideration (30,300) (8,732) — (39,032) Net of cash flow on acquisition (investing activities) 36,542 16,030 10,725 63,297 From R$63,297 of net cash flow on acquisition, R$62,443 was settled during 2020, and R$854 was settled in 2021. * During the measurement period, the purchase consideration transferred for the acquisitions was adjusted to R$125,774 (R$100,923 previously disclosed) as a result of purchase price adjustments. Accordingly, goodwill was updated to R$2,233. ** During the measurement period, the preliminary contingent consideration for the acquisitions was adjusted to R$39,032 (R$14,183 previously disclosed) as a result of a fair value adjustment of R$24,849. |
Summary of intangible assets acquired | Assets Amount Method Expected amortization period Customer list 2,181 Multi-period excess earning method 5.5 years Trademark 3,799 Relief from royalty 5 years Technology 9,876 Relief from royalty 5 years |
Securities purchased (sold) u_2
Securities purchased (sold) under resale (repurchase) agreements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Securities purchased under agreements to resell [Abstract] | |
Summary of securities purchased under agreements to resell | Securities purchased under agreements to resell 2021 2020 Available portfolio 3,322,254 1,409,742 National Treasury Notes (NTNs) (i) 2,671,122 876,146 Financial Treasury Bills (LFTs) (i) — 452,714 National Treasury Bills (LTNs) (i) 544,546 44,093 Debentures (ii) 37,688 36,789 Real Estate Receivable Certificates (CRI) (ii) 43,397 — Financial credit bills (LF) 25,501 — Collateral held 5,574,846 5,218,037 National Treasury Bills (LTNs) (i) — 976,468 National Treasury Notes (NTNs) (i) 1,556,303 4,241,569 Debentures (ii) 906,519 — Real Estate Receivable Certificates (CRI) (ii) 2,586,893 — Financial credit bills (LF) 525,131 — Expected Credit Loss (iii) (2,569) (370) Total 8,894,531 6,627,409 (i) Investments in purchase and sale commitments collateral-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 9.15% p.a. (1.91% p.a. as of December 31, 2020). (ii) Refers to fixed-income securities issued by private companies. (iii) The reconciliation of gross carrying amount and the expected credit loss segregated by stages are presented in the Note 14. |
Summary of securities sold under repurchase agreements | Securities sold under repurchase agreements 2021 2020 National Treasury Bills (LTNs) 3,325,188 18,318,498 National Treasury Notes (NTNs) 10,098,672 13,497,944 Financial Treasury Bills (LFTs) 7,515,712 — Debentures 553,953 22,902 Real Estate Receivable Certificates (CRI) 4,324,155 — Financial credit bills (LF) 463,665 — Total 26,281,345 31,839,344 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [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 are presented in the following table: 2021 2020 Gross carrying amount Fair value Gross carrying amount Fair value Financial assets (i) At fair value through profit or loss Available portfolio 56,899,391 56,985,365 49,157,111 49,590,013 Brazilian government bonds 15,577,753 15,582,410 30,752,903 31,129,671 Investment funds 28,520,788 28,520,788 11,216,914 11,221,774 Stocks issued by public-held company 4,768,724 4,768,724 3,802,610 3,802,470 Debentures 4,493,406 4,522,150 1,111,595 1,114,967 Structured transaction certificate 235,794 270,225 485,012 515,960 Bank deposit certificates (ii) 352,770 356,313 371,455 372,329 Agribusiness receivables certificates 573,374 579,224 359,607 363,721 Certificate of real estate receivable 568,347 575,717 97,606 96,930 Financial credit bills 663,236 669,819 81,465 82,209 Others (iv) 1,145,199 1,139,995 877,944 889,982 Investments held in trust accounts 1,194,590 1,194,590 — — US government bonds (iii) 1,194,590 1,194,590 — — Total 58,093,981 58,179,955 49,157,111 49,590,013 (i) Financial assets include R$31,921,400 (December 31, 2020 – R$13,387,913) related to Specially Constituted Investment Fund (“FIE”) as presented in Note 23, out of which R$26,336,326 (December 31, 2020 – R$10,625,520) are Investments funds. (ii) Bank deposit certificates include R$194,892 (December 31, 2020 – R$111,927) presented as cash equivalents in the statements of cash flows. (iii) Related to investments received through IPO transactions derived by XPAC Acquisition Corp. These funds are restricted for use and may only be used for purposes of completing an initial business combination or redemption of public shares as set forth in XPAC Acquisition Corp. trust agreement. (iv) Mainly related to securities loaned. b) Securities at fair value through other comprehensive income are presented in the following table 2021 2020 Gross carrying amount Fair value Gross carrying amount Fair value Financial assets At fair value through other comprehensive income (i) National treasury bill 32,725,011 31,868,878 19,011,499 19,039,044 Bonds 458,755 463,499 — — Total 33,183,766 32,332,377 19,011,499 19,039,044 (i) Includes expected credit losses in the amount of R$7,527 (December 31,2020 – R$8,855). The reconciliation of gross carrying amount and the expected credit loss segregated by stages are presented in the Note 14. |
Summary of Financial Assets At Amortized Cost Securities | c) Securities evaluated at amortized cost are presented in the following table: 2021 2020 Gross carrying amount Book value Gross carrying amount Book value Financial assets At amortized cost (i) Bonds 1,871,273 1,868,776 1,829,791 1,828,704 Rural product note 328,638 328,638 — — Debentures 41,393 41,393 — — Total 2,241,304 2,238,807 1,829,791 1,828,704 (i) Include expected credit losses in the amount of R$2,497 (December 31,2020 – R$1,087). The reconciliation of gross carrying amount and the expected credit losses segregated by stages are presented in the Note 14. |
Summary of Securities on the Financial Liabilities Classified at Fair Value through Profit or Loss | d ) Securities on the financial liabilities classified at fair value through profit or loss are presented in the following table: 2021 2020 Gross carrying amount Fair value Gross carrying amount Fair value Financial liabilities At fair value through profit or loss Securities loaned 2,146,398 2,146,398 2,237,442 2,237,442 2021 2020 Gross carrying amount Fair Gross carrying amount Fair Financial liabilities At fair value through profit or loss Debentures 536,881 518,804 — — Assets Liabilities 2021 2020 2021 2020 Financial assets At fair value through PL and at OCI Current 47,431,624 34,572,107 2,146,398 2,237,442 Non-stated maturity 31,425,792 15,246,105 2,146,398 2,237,442 Up to 3 months 4,556,261 794,025 — — From 3 to 12 months 11,449,571 18,531,977 — — Non-current 43,088,235 34,065,805 518,804 — After one year 43,088,235 34,065,805 518,804 — Evaluated at amortized cost Current 1,891,889 1,829,791 — — Up to 3 months 1,698,760 1,623,487 — — From 3 to 12 months 193,129 206,304 — — Non-current 349,415 — — — After one year 349,415 — — — Total 92,761,163 70,467,703 2,665,202 2,237,442 |
Summary of Fair Value and Remaining Contractual Principal Balance Outstanding | The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of December 31, 2021 for instruments for which the fair value option has been elected. 2021 Contractual principal outstanding Fair value Fair value/(under) contractual principal outstanding Long-term debt Debentures 536,881 518,804 (18,077) |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Summary of positions with derivative financial instruments | Positions with derivative financial instruments as of December 31, 2021 and 2020 are shown below: 2021 Assets Liabilities Fair value Notional Fair value Notional Options 6,570,325 371,849,357 8,112,055 311,295,196 Swaps 2,577,311 75,380,631 2,561,327 82,520,691 Forward contracts 1,601,167 88,107,328 1,057,426 44,968,097 Futures contracts 194,911 11,932,285 157,710 13,041,450 Others (i) — — 19,665 84,184 Total 10,943,714 547,269,601 11,908,183 451,909,618 2020 Assets Liabilities Fair value Notional Fair value Notional Options 6,298,358 681,464,674 6,735,478 614,741,256 Swaps 777,816 5,578,227 870,393 6,143,671 Forward contracts 456,724 2,905,411 200,272 3,035,011 Futures contracts 26,535 43,100,609 13,221 44,981,642 Total 7,559,433 733,048,921 7,819,364 668,901,580 (i) Related to Public Warrants and Private placement Warrants liabilities issued by XPAC Acquisition Corp. |
Summary of derivative financial instruments by maturity | Below is the composition of the Derivative financial instruments portfolio (assets and liabilities) by type of instrument, stated fair value and by maturity: 2021 Fair Value % Up to 3 months From 4 to 12 months Above 12 months Assets Swap contracts 2,577,311 14 73,016 259,300 2,244,995 Forward contracts 1,601,167 16 404,764 216,895 979,508 Future contracts 194,911 2 21,891 3,275 169,745 Options 6,570,325 68 1,474,816 2,281,088 2,814,421 Total 10,943,714 100 1,974,487 2,760,558 6,208,669 Liabilities Options 8,112,055 69 1,941,553 1,937,725 4,232,777 Forward contracts 1,057,426 18 62,935 68,398 926,093 Future contracts 157,710 10 6 4,814 152,890 Swap contracts 2,561,327 3 113,754 240,005 2,207,568 Others (i) 19,665 — 19,665 — — Total 11,908,183 100 2,137,913 2,250,942 7,519,328 (i) Related to Public Warrants and Private placement Warrants liabilities issued by XPAC Acquisition Corp. 2020 Fair value % Up to 3 months From 4 to 12 months Above 12 months Assets Swap contracts 777,816 10 35,241 206,921 535,654 Forward contracts 456,724 6 230,862 201,324 24,538 Future contracts 26,535 1 26,535 — — Options 6,298,358 83 2,327,062 2,351,285 1,620,011 Total 7,559,433 100 2,619,700 2,759,530 2,180,203 Liabilities Options 6,735,478 87 2,152,890 2,378,689 2,203,899 Forward contracts 200,272 2 133,679 49,102 17,491 Future contracts 13,221 1 542 1,742 10,937 Swap contracts 870,393 10 99,249 213,532 557,612 Total 7,819,364 100 2,386,360 2,643,065 2,789,939 |
Summary of derivative financial instruments by index | Derivatives financial instruments by index: 2021 2020 Notional Fair Value Notional Fair Value Swap Contracts Asset Position Interest 66,123,491 1,799,953 5,014,934 776,215 Foreign exchange 1,978,886 16,013 563,293 1,601 Share 7,278,254 761,345 — — Liability Position Interest 75,207,636 (2,461,848) 6,143,671 (870,393) Foreign exchange 5,888,850 (28,509) — — Share 1,424,205 (70,970) — — Forward Contracts Asset Position Foreign exchange 81,544,253 282,775 2,546,940 98,253 Share 4,603,031 412,097 325,519 325,519 Interest 906,295 906,295 32,952 32,952 Commodities 1,053,749 — — — Liability Position Foreign exchange 42,367,576 (139,642) 3,002,067 (167,328) Interest 906,302 (906,302) 32,944 (32,944) Share 11,482 (11,482) — — Commodities 1,682,737 — — — Future Contracts Purchase commitments Foreign exchange 155,487 194,911 — — Interest 11,629,715 — 43,100,609 26,535 Share 147,083 — — — Commitments to sell Interest 12,188,922 (157,710) 44,981,642 (13,221) Foreign exchange 705,334 — — — Share 147,083 — — — Commodities 111 — — — Options Purchase commitments Foreign exchange 25,973,934 2,248,675 — — Share 72,883,420 3,146,174 5,827,205 1,074,507 Interest 272,987,997 1,160,526 675,637,469 5,223,851 Commodities 4,006 14,950 — — Commitments to sell Foreign exchange 24,541,428 (3,080,095) — — Shares 13,690,202 (2,788,089) 9,229,113 (945,828) Commodities 680,404 (113,875) — — Interest 272,383,162 (2,129,996) 605,512,143 (5,789,650) Others Liability Position Interest 84,184 (19,665) — — Assets 10,943,714 7,559,433 Liabilities (11,908,183) (7,819,364) Net (964,469) (259,931) |
Hedge accounting (Tables)
Hedge accounting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about hedged items [abstract] | |
Summary of detailed information about hedging instruments | The Group undertakes risk management through the economic relationship between hedge instruments and hedged items, 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 value recognized in Other comprehensive income Notional value Variation in the Strategies Assets Liabilities 2021 Foreign exchange risk Hedge of net investment in foreign operations 310,069 — 19,474 440,022 (18,758) Total 310,069 — 19,474 440,022 (18,758) 2020 Foreign exchange risk Hedge of net investment in foreign operations 245,986 — 52,299 349,218 349,218 Total 245,986 — 52,299 349,218 (60,563) 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) |
Effects of hedge accounting | 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 value recognized in income Notional value Variation in the Strategies Assets Liabilities 2021 Interest rate and foreign exchange risk Hedge of securities — 9,264,330 506,190 9,297,999 (495,191) Total — 9,264,330 506,190 9,297,999 (495,191) Hedged item Hedge instrument Book Value Variation in value recognized in income Notional value Variation in the Strategies Assets Liabilities 2020 Interest rate and foreign exchange risk Hedge of securities — 2,178,459 (47,923) 2,188,732 46,795 Total — 2,178,459 (47,923) 2,188,732 46,795 The hedge ineffectiveness recognized in statements of income are presented below: 2021 Notional amount Book value (i) Variation in fair value used to calculate hedge ineffectiveness Hedge ineffectiveness recognized in income Hedge Instruments Assets Liabilities Interest rate risk Futures 8,861,195 — 8,830,343 (491,649) 10,995 Foreign exchange risk Futures 876,826 310,069 433,987 (22,300) 720 2020 Notional amount Book value (i) Variation in fair value used to calculate hedge ineffectiveness Hedge ineffectiveness recognized in income Hedge Instruments Assets Liabilities Interest rate risk Futures 2,188,732 — 2,178,459 46,795 (1,128) (i) Amounts recorded within financial statement line “Derivative financial instruments.” See Note 8. 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: December 31, 2021 December 31, 2020 December 31, 2019 Strategies Hedge instruments Hedge item Hedge instruments Hedge item Hedge instruments Hedge item Notional amount Fair value adjustments Book value Notional amount Fair value adjustments Book value Notional amount Fair value adjustments Book value Hedge of Fair Value 9,297,999 (495,191) 506,190 2,188,732 (47,923) 46,795 — — — Hedge of net investment in foreign operations 440,022 (18,758) 19,474 349,218 (60,563) 52,299 248,896 5,946 (7,133) Total 9,738,021 (513,949) 525,664 2,537,950 (108,486) 99,094 248,896 5,946 (7,133) |
Breakdown notional value by maturity of hedging strategies | The table below shows the breakdown notional value by maturity of the hedging strategies: 2021 0-1 year 1-2 years 2-3 years 3-4 years 4-5 years 5-10 years Total Hedge of Fair Value 136,636 276,219 478,745 972,199 4,510,125 2,924,075 9,297,999 Hedge of net investment in foreign operations 384,217 — — 55,805 — — 440,022 Total 520,853 276,219 478,745 1,028,004 4,510,125 2,924,075 9,738,021 2020 0-1 year 1-2 years 2-3 years 3-4 years 4-5 years 5-10 years Total Hedge of Fair Value 1,977 13,375 94,099 44,843 672,978 1,361,460 2,188,732 Hedge of net investment in foreign operations — — 146,547 202,671 — — 349,218 Total 1,977 13,375 240,646 247,514 672,978 1,361,460 2,537,950 2019 0-1 year 1-2 years 2-3 years 3-4 years 4-5 years 5-10 years Total Hedge of net investment in foreign operations 7,658 — — 91,698 149,540 — 248,896 Total 7,658 — — 91,698 149,540 — 248,896 |
Loan operations (Tables)
Loan operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of financial assets [abstract] | |
Loan operations by class, sector of debtor, maturity and concentration | Following are the breakdown of the carrying amount of loan operations by class, sector of debtor, maturity and concentration: Loans by type 2021 2020 Pledged asset loan Retail 7,296,172 2,698,018 Corporate 1,887,649 946,008 Credit card 2,605,598 51,270 Non-pledged loan Retail 117,032 116,978 Corporate 937,586 113,155 Total Loans operations 12,844,037 3,925,429 Expected Credit Loss (Note 14(b)) (24,410) (7,101) Total loans operations, net of Expected Loss 12,819,627 3,918,328 By maturity 2021 2020 Due in 3 months or less 2,539,387 160,918 Due after 3 months through 12 months 2,081,563 580,183 Due after 12 months 8,223,087 3,184,328 Total Loans operations 12,844,037 3,925,429 By concentration 2021 2020 Largest debtor 227,229 150,040 10 largest debtors 1,162,802 726,904 20 largest debtors 1,721,591 1,043,583 50 largest debtors 2,793,814 1,521,310 100 largest debtors 3,899,644 1,885,614 |
Accounts receivable (Tables)
Accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Trade and other receivables [abstract] | |
Summary of accounts receivable | 2021 2020 Customers (a) 419,532 455,253 Dividends and interest receivable on equity capital - Funds 3,593 6,393 Other (b) 52,492 51,131 (-) Expected credit losses on accounts receivable (Note 14(b)) (6,531) (6,418) Total 469,086 506,359 (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, 2021 and 2020. (b) Mainly related to accounts receivable from B3. |
Recoverable taxes (Tables)
Recoverable taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Summary of recoverable taxes | 2021 2020 Prepayments of income taxes (IRPJ and CSLL) 146,636 122,070 Contributions over revenue (PIS and COFINS) 5,654 3,993 Other recoverable taxes (i) 1,026 1,560 Total 153,316 127,623 Current 153,316 127,623 Non-current — — (i) The amount refers to taxes on services - ISS of R$1,002 (2020– R$979), value added taxes – VAT of nil (2020 –R$581) and Contributions for Social Security - INSS of R$24 (2020–nil). |
Prepaid expenses (Tables)
Prepaid expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Summary of prepaid expenses | 2021 2020 Commissions and premiums paid in advance (a) 3,737,354 1,314,771 Marketing expenses 28,147 28,056 Services paid in advance 41,990 6,245 Other expenses paid in advance 175,259 44,465 Total 3,982,750 1,393,537 Current 251,973 283,183 Non-current 3,730,777 1,110,354 (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 Group, linearly, according to the investment term period. |
Expected credit losses on fin_2
Expected credit losses on financial assets and reconciliation of carrying amount (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of fair value measurement of assets [abstract] | |
Expected Credit Losses on Financial Assets and Reconciliation of carrying amount | It is presented below the reconciliation by stage of gross carrying amount of Financial assets through other comprehensive income and Financial assets measured at amortized cost – that have their ECLs (Expected Credit Losses) measured using the three stage model and the low credit risk simplification. Stage 1 Balance at December 31, 2020 Acquisition / (Settlements) Transfer to Transfer to Cure from Cure from Closing balance December 31, 2021 Financial assets at fair value through other comprehensive income Securities 19,047,899 13,292,005 — — — — 32,339,904 Financial assets amortized cost Securities 1,829,791 411,513 — — — — 2,241,304 Securities purchased under agreements to resell 6,627,779 2,269,321 — — — — 8,897,100 Loans and credit card operations 3,599,808 9,013,279 (667,692) (3,494) 211,648 — 12,153,549 Total on-balance exposures 31,105,277 24,986,118 (667,692) (3,494) 211,648 — 55,631,857 Off-balance exposures (credit card limits) — 1,334,467 (59,408) (5) 32,932 — 1,307,986 Total exposures 31,105,277 26,320,585 (727,100) (3,499) 244,580 — 56,939,843 Stage 2 Balance at December 31, 2020 Acquisition / (Settlements) Transfer to stage 1 Transfer to stage 3 Cure from stage 1 Cure from stage 3 Closing balance December 31, 2021 Financial assets amortized cost Loans and credit card operations 325,621 (94,671) (211,648) — 667,692 — 686,994 Total on-balance exposures 325,621 (94,671) (211,648) — 667,692 — 686,994 Off-balance exposures (credit card limits) 35,810 (2,878) (32,932) — 59,408 — 59,408 Total exposures 361,431 (97,549) (244,580) — 727,100 — 746,402 Stage 3 Balance at December 31, 2020 Acquisition / (Settlements) Transfer to stage 1 Transfer to stage 2 Cure from stage 1 Cure from stage 2 Closing balance December 31, 2021 Financial assets amortized cost Loans and credit card operations — — — — 3,494 — 3,494 Total on-balance exposures — — — — 3,494 — 3,494 Off-balance exposures (credit card limits) — — — — 5 — 5 Total exposures — — — — 3,499 — 3,499 Consolidated Stages Balance at December 31, 2020 Derecognition Purchases / (Settlements) Closing balance December 31, 2021 Financial assets at fair value through other comprehensive income Securities 19,047,899 — 13,292,005 32,339,904 Financial assets amortized cost Securities 1,829,791 — 411,513 2,241,304 Securities purchased under agreements to resell 6,627,779 — 2,269,321 8,897,100 Loans and credit card operations 3,925,429 — 8,918,608 12,844,037 Total on-balance exposures 31,430,898 — 24,891,447 56,322,345 Off-balance exposures (credit card limits) 35,810 — 1,331,589 1,367,399 Total exposures 31,466,708 — 26,223,036 57,689,744 Stage 1 Balance at December 31, 2019 Acquisition / (Settlements) Transfer to stage 2 Transfer to stage 3 Cure from stage 2 Cure from stage 3 Closing balance December 31, 2020 Financial assets at fair value through other comprehensive income Securities 2,616,118 16,431,781 — — — — 19,047,899 Financial assets amortized cost Securities 2,266,971 (437,180) — — — — 1,829,791 Securities purchased under agreements to resell 9,490,090 (2,862,311) — — — — 6,627,779 Loans and credit card operations — 3,599,808 — — — — 3,599,808 Total on-balance exposures 14,373,179 16,732,098 — — — — 31,105,277 Total exposures 14,373,179 16,732,098 — — — — 31,105,277 Stage 2 Balance at December 31, 2019 Acquisition / (Settlements) Transfer to stage 1 Transfer to stage 3 Cure from stage 1 Cure from stage 3 Closing balance December 31, 2020 Financial assets amortized cost Loans and credit card operations — 325,621 — — — — 325,621 Total on-balance exposures — 325,621 — — — — 325,621 Off-balance exposures (credit card limits) — 35,810 35,810 Total exposures — 361,431 — — — — 361,431 Consolidated Stages Balance at December 31, 2019 Derecognition Purchases / (Settlements) Closing balance December 31, 2020 Financial assets at fair value through other comprehensive income Securities 2,616,118 — 16,431,781 19,047,899 Financial assets amortized cost Securities 2,266,971 — (437,180) 1,829,791 Securities purchased under agreements to resell 9,490,090 — (2,862,311) 6,627,779 Loans and credit card operations — — 3,925,429 3,925,429 Total on-balance exposures 14,373,179 — 17,057,719 31,430,898 Off-balance exposures (credit card limits) — — — 35,810 Total exposures 14,373,179 — 17,057,719 31,466,708 As of December 31, 2020, XP Group does not have financial assets classified as a Stage 3. The following table presents the gross carrying amount of Financial assets measured at amortized cost that have their ECLs measured using the simplified approach: Operations 2021 2020 Financial assets amortized cost Securities trading and intermediation 1,487,639 1,107,051 Accounts Receivable 475,617 512,777 Other financial assets 511,181 73,466 Total 2,474,437 1,693,294 b) Expected credit loss The table below presents the changes in ECLs, measured according three stage model, for assets classified as Financial assets through other comprehensive income –and Financial assets measured at amortized cost in the period ended December 31, 2021 and December 31, 2020, segregated by stages: Stage 1 ECL at December 31, 2020 Increase / (Reversal) Transfer to stage 2 Transfer to stage 3 Cure from stage 2 Cure from stage 3 ECL at December 31, 2021 Financial assets at fair value through other comprehensive income Securities 8,855 (1,328) — — — 7,527 Financial assets amortized cost Securities 1,087 1,410 — — — — 2,497 Securities purchased under agreements to resell 370 2,199 — — — — 2,569 Loans and credit card operations 5,648 17,207 (6,926) (2,197) 225 — 13,957 Total on-balance exposures 15,960 19,488 (6,926) (2,197) 225 — 26,550 Off-balance exposures (credit card limits) — 1,014 (288) — — — 726 Total exposures 15,960 20,502 (7,214) (2,197) 225 — 27,276 Stage 2 ECL at December 31, 2020 Increase / (Reversal) Transfer to stage 1 Transfer to stage 3 Cure from stage 1 Cure from stage 3 ECL at December 31, 2021 Financial assets amortized cost Loans and credit card operations 1,453 (912) (225) — 6,926 — 7,242 Total on-balance exposures 1,453 (912) (225) — 6,926 — 7,242 Off-balance exposures (credit card limits) — — — — 288 — 288 Total exposures 1,453 (912) (225) — 7,214 — 7,530 Stage 3 ECL at December 31, 2020 Increase / (Reversal) Transfer to stage 1 Transfer to stage 2 Cure from stage 1 Cure from stage 2 ECL at December 31, 2021 Financial assets amortized cost Loans and credit card operations — — — — 2,197 — 2,197 Total on-balance exposures — — — — 2,197 — 2,197 Total exposures — — — — 2,197 — 2,197 Consolidated Stages ECL at December 31, 2020 Derecognition Increase / (Reversal) ECL at December 31, 2021 Financial assets at fair value through other comprehensive income Securities 8,855 — (1,328) 7,527 Financial assets amortized cost Securities 1,087 — 1,410 2,497 Securities purchased under agreements to resell 370 — 2,199 2,569 Loans and credit card operations 7,101 — 16,295 23,396 Total on-balance exposures 17,413 — 18,576 35,989 Off-balance exposures (credit card limits) — — 1,014 1,014 Total exposures 17,413 — 19,590 37,003 Stage 1 ECL at December 31, 2019 Increase / (Reversal) Transfer to stage 2 Transfer to stage 3 Cure from stage 2 Cure from stage 3 ECL at December 31, 2020 Financial assets at fair value through other comprehensive income Securities — 8,855 — — — — 8,855 Financial assets amortized cost — — — — Securities — 1,087 — — — — 1,087 Securities purchased under agreements to resell — 370 — — — — 370 Loans and credit card operations 2 5,646 — — — — 5,648 Total on-balance exposures 2 15,958 — — — — 15,960 Total exposures 2 15,958 — — — — 15,960 Stage 2 ECL at December 31, 2019 Increase / (Reversal) Transfer to stage 1 Transfer to stage 3 Cure from stage 1 Cure from stage 3 ECL at December 31, 2020 Financial assets amortized cost Loans and credit card operations — 1,453 — — — — 1,453 Total on-balance exposures — 1,453 — — — — 1,453 Total exposures — 1,453 — — — — 1,453 Consolidated Stages ECL at December 31, 2019 Derecognition Increase / (Reversal) ECL at December 31, 2020 Financial assets at fair value through other comprehensive income Securities — — 8,855 8,855 Financial assets amortized cost Securities — — 1,087 1,087 Securities purchased under agreements to resell — — 370 370 Loans and credit card operations 2 — 7,099 7,101 Total on-balance exposures 2 — 17,411 17,413 Total exposures 2 — 17,411 17,413 The table below presents the ECLs for the financial assets measured according to simplified approach in the period ended December 31, 2021 and December 31, 2020: Expected Credit Losses 2021 2020 Financial assets amortized cost Securities trading and intermediation 81,988 55,485 Accounts Receivable 6,531 6,418 Other financial assets 49,666 3,312 Total 138,185 65,215 c) Expected credit losses segregated by products It is presented below the expected credit losses for 2021 and 2020, segregated by the products: Expected Credit Losses 2021 2020 Financial assets at fair value through other comprehensive income 7,527 8,855 Securities 7,527 8,855 Financial assets amortized cost 166,647 73,773 Securities 2,497 1,087 Securities purchased under agreements to resell 2,569 370 Loans and credit card operations 23,396 7,101 Securities trading and intermediation 81,988 55,485 Accounts Receivable 6,531 6,418 Other financial assets 49,666 3,312 Total losses for exposures 174,174 82,628 Off-balance exposures (credit card limits) 1,014 — Total exposures 175,188 82,628 |
Investments in associates and_2
Investments in associates and joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of associates [abstract] | |
Investments in associates and joint ventures | Set out below are the associates and joint ventures of the Group as of December 31, 2021 and 2020. Entity 2020 Equity Equity in earnings Other comprehensive income Goodwill (i) 2021 Equity-accounted method Associates (ii.a) 697,924 33,036 (5,862) (20,641) 86,287 790,744 Joint ventures (ii.b) 1,983 — (1,848) 1,062 — 1,197 Measured at fair value Associates (iii) — 1,174,133 47,291 — — 1,221,424 Total 699,907 1,207,169 39,581 (19,579) 86,287 2,013,365 Entity 2019 Equity Equity in earnings Other comprehensive income Goodwill (i) 2020 Associates (ii.a) — 75,093 1,639 (56) 621,248 697,924 Joint ventures (ii.b) — 2,335 (777) 17 408 1,983 Total — 77,428 862 (39) 621,656 699,907 (i) Related to the acquisitions of associates and joint ventures. The goodwill recognized includes the value of expected synergies arising from the investments and includes an element of contingent consideration. (ii) At December 31, 2021, include interest in total and voting capital of the following companies: (a) Associates - Wealth High Governance Holding de Participações S.A. (49.9% total and voting capital at December 31,2021 and December 31, 2020); O Primo Rico Mídia, Educacional e Participações Ltda. (29.3% total and voting capital at December 31, 2021 and 20% at December 31, 2020); NK112 Empreendimentos e Participações S.A. (49.9% total and voting capital at December 31, 2021) (b) Joint ventures - Du Agro Holdings S.A. (49% total and voting capital at December 31, 2021 and December 31, 2020). (iii) As mentioned in Note 2 (iv) and Note 5 (c) (b), the Group measured the investments held through XP FIP Managers at fair value. The fair value of investments is presented in the statements of income as Net income from financial instruments at fair value through profit or loss. |
Property, equipment, intangib_2
Property, equipment, intangible assets and leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Summary of property and equipment | (a) Property and equipment Data processing system Furniture and equipment Security systems Facilities Fixed assets in progress Vehicle Total 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) Balance as of January 1, 2020 34,447 27,756 1,544 78,717 — — 142,464 Additions 15,457 5,539 1,239 2,650 120,279 — 145,164 Write-offs (2,432) (6,191) (535) (41,376) (963) — (51,497) Transfers (2,411) 516 (820) 14,279 (17,706) — (6,142) Depreciation in the year (11,179) (5,004) (425) (9,349) — — (25,957) as of December 31, 2020 33,882 22,616 1,003 44,921 101,610 — 204,032 Cost 53,871 32,592 2,158 54,890 101,610 — 245,121 Accumulated depreciation (19,989) (9,976) (1,155) (9,969) — — (41,089) Balance as of January 1, 2021 33,882 22,616 1,003 44,921 101,610 — 204,032 Additions 37,469 93 229 4 63,250 34,399 135,444 Write-offs (298) (728) (170) (375) (729) — (2,300) Transfers 5 (15) 15 — — — 5 Foreign Exchange (31) 245 (327) 3 — — (110) Depreciation in the year (13,096) (3,990) (60) (5,353) (35) (573) (23,107) Balance as of December 31, 2021 57,931 18,221 690 39,200 164,096 33,826 313,964 Cost 89,376 31,813 1,584 54,535 164,096 34,399 375,803 Accumulated depreciation (31,445) (13,592) (894) (15,335) — (573) (61,839) |
Summary of intangible assets | (b) Intangible assets Software Goodwill Customer list Trademarks Other intangible Assets Total 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) Balance as of January 1, 2020 66,310 382,500 60,599 16,488 27,555 553,452 Additions 117,129 — 1,188 — 28,051 146,368 Business combination (Note 5(ii)) 8,143 91,866 2,181 3,314 — 105,504 Write-offs (22,064) — — — — (22,064) Transfers 2,857 — — — 3,285 6,142 Amortization in the year (57,222) — (5,683) (9,054) (3,881) (75,840) Balance as of December 31, 2020 115,153 474,366 58,285 10,748 55,010 713,562 Cost 219,029 474,366 76,050 52,616 55,010 877,071 Accumulated amortization (103,876) — (17,765) (41,868) — (163,509) Balance as of January 1, 2021 115,153 474,366 58,285 10,748 55,010 713,562 Additions 146,761 — 40,000 — 30,808 217,569 Business Combination 1,734 68,379 — 485 — 70,598 Write-offs (13,536) — — (1,000) (2,675) (17,211) Transfers 51,994 — — 485 (52,484) (5) Foreign Exchange (971) — — 341 204 (426) Amortization in the year (148,803) — (5,796) (8,492) (21) (163,112) Balance as of December 31, 2021 152,332 542,745 92,489 2,567 30,842 820,975 Cost 303,724 542,745 116,050 88,877 30,918 1,082,314 Accumulated amortization (151,392) — (23,561) (86,310) (76) (261,339) |
Summary of right-of-use assets and lease liabilities | d) Leases Set out below, are the carrying amounts of the Group’s right-of-use assets and lease liabilities and the movements during the period: Right-of-use assets Lease liabilities As of January 1, 2020 227,478 255,406 Additions (i) 62,003 55,820 Depreciation expense (41,465) — Write-offs (78,321) (78,321) Interest expense — 19,456 Revaluation (9,115) (10,050) Impairment 422 — Effects of exchange rate 22,132 23,610 Payment of lease liabilities — (57,473) As of December 31, 2020 183,134 208,448 Current — 34,019 Non-current 183,134 174,429 As of January 1, 2021 183,134 208,448 Additions (i) 116,248 116,248 Depreciation expense (45,511) — Write-offs (856) — Interest expense — 17,488 Revaluation 25,305 24,234 Effects of exchange rate 6,189 7,486 Payment of lease liabilities — (55,349) As of December 31, 2021 284,509 318,555 Current — 71,925 Non-current 284,509 246,630 (i) Additions to right-of-use assets in the period include prepayments to lessors and accrued liabilities. |
Financing instruments payable (
Financing instruments payable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of financing instruments payable | 2021 2020 Market funding operations (a) 20,122,206 5,216,599 Deposits 9,898,630 3,021,751 Demands deposits 229,691 44,536 Time deposits 9,662,694 2,977,215 Interbank deposits 6,245 — Financial bills 2,587,738 16,389 Structured operations certificates 7,635,838 2,178,459 Debt securities (b) 4,306,880 335,250 Debentures 169,094 335,250 Bond 4,137,786 — Total 24,429,086 5,551,849 Current 8,018,854 2,731,816 Non-Current 16,410,232 2,820,033 |
Maturity schedule | Maturity Maturity - 2021 Class Within 30 days From 31 to 60 days From 61 to 90 days From 91 to 180 days From 181 to 360 days After 360 days Total Demand deposits 229,691 — — — — — 229,691 Time deposits 751,676 520,694 712,092 3,231,965 2,341,770 2,104,497 9,662,694 Interbank deposits — 3,125 — — — 3,120 6,245 Financial bills — — — 10,945 6,164 2,570,629 2,587,738 Structured operations certificates 1,510 3,940 5,428 9,120 21,640 7,594,200 7,635,838 Total 982,877 527,759 717,520 3,252,030 2,369,574 12,272,446 20,122,206 Maturity – 2020 Class Within 30 days From 31 to 60 days From 61 to 90 days From 91 to 180 days From 181 to 360 days After 360 days Total Demand deposits 44,536 — — — — — 44,536 Time deposits 67,501 1,185 57,781 191,886 2,161,762 497,100 2,977,215 Financial bills — — — — — 16,389 16,389 Structured operations certificates — — — 945 1,489 2,176,025 2,178,459 Total 112,037 1,185 57,781 192,831 2,163,251 2,689,514 5,216,599 |
Schedule of debt securities | The total balance is comprised of the following issuances: 2021 2020 Up to 1 year 1-5 years Total Up to 1 year 1-5 years Total Bonds (i) Fixed rate — 4,137,786 4,137,786 — — — Debentures (ii) Fixed rate / Variable Rate 169,094 — 169,094 204,731 130,519 335,250 Total 169,094 4,137,786 4,306,880 204,731 130,519 335,250 Current 169,094 204,731 Non- Current 4,137,786 130,519 (i) XP Inc Bonds On July 1, 2021, XP Inc. concluded the issuance of a gross of US$750 million senior unsecured notes with net proceeds of US$739 million (R$3,697 million) with maturity on July 1, 2026 and bear interest at the rate of 3.250% per year and will be guaranteed by XP Investimentos S.A. (ii) Debentures The principal amount and accrued interest payables related to the issuance are as follow: (i) for the principal amount, 50% was due and paid on May 15, 2021 and the remaining balance on the maturity date of May 15, 2022, and (ii) the accrued interest is payable every 12 months from the issuance date. The annual rate is 107.5% CDI with a unit value at in the period ended of R$505,680. Debentures are subject to financial covenants, which have certain performance conditions. The Group has complied with these covenants throughout the reporting period (Note 36 (ii)). (iii) XP Energy issuance a. Promissory Note On September 9, 2021, XP Energia, a group’s subsidiary, issued the first promissory note with the objective of funding the Group’s working capital and treasury investments related to wholesale electricity trade business. The principal amount of R$80,000 is due and payable on the maturity date of September 4, 2022, and the interest rate is CDI + 3.5% pre-fixed rate annually payable. On December 31, 2021 the total amount was R$82,608, which is hold by entities within the Group and as such is not included in the consolidated financial statement. b. Debentures On December 8, 2021, XP Energia issued non-convertible Debentures in the amount of R$90,000. The Debentures series has a maximum authorized issuance up to R$1,500,000. The objective is to fund the Group’s working capital and treasury investments related to wholesale electricity trade business. The principal amount is due and will be paid on the maturity date of December 8, 2023. The interest rate is CDI+2.5% pre-fixed rate annually payable. On December 31, 2021 the total amount is R$90,679, which is hold by entities within the Group and as such is not included in the consolidated financial statement. |
Securities trading and interm_2
Securities trading and intermediation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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. 2021 2020 Cash and settlement records 107,246 18,128 Debtors pending settlement 1,380,393 1,088,923 (-) Expected losses on Securities trading and intermediation (a) (81,988) (55,485) Total Assets 1,405,651 1,051,566 Cash and settlement records 365,700 59,712 Creditors pending settlement 15,231,855 20,243,409 Total Liabilities 15,597,555 20,303,121 (a) The reconciliation of gross carrying amount and the expected loss segregated by stage according to IFRS 9 is included in Note 14. |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of detailed information about borrowings [abstract] | |
Summary of borrowings | Interest rate % Maturity 2021 2020 Bank borrowings – domestic (i) 113% of CDI(*) March 2021 — 10,523 Related parties 10,523 Financial institution (iii) 0.813% May 2022 1,651,871 — Financial institution (ii) CDI (*)+ 0.774% April 2023 276,911 273,564 Third parties 1,928,782 273,564 Total borrowings 1,928,782 284,087 Current 1,661,067 17,637 Non-current 267,715 266,450 (*) Brazilian Interbank Offering Rate (CDI). (i) Loan agreement with Itaú Unibanco that was fully paid on March 8, 2021. (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. (iii) Loan agreement with Banco Nacional de México . |
Other financial assets and fi_2
Other financial assets and financial liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Summary of other financial assets | Other financial assets 2021 2020 Foreign exchange portfolio 331,563 43,129 Receivables from IFAs 177,895 27,377 Other financial assets 1,723 2,777 (-) Expected losses on other financial assets (i) (49,666) (3,312) Total 461,515 69,971 Current 331,563 43,129 Non-current 129,952 26,842 (i) The reconciliation of gross carrying amount and the expected loss according to IFRS 9 is presented in Note 14. |
Summary of other financial liabilities | Other financial liabilities 2021 2020 Foreign exchange portfolio 425,409 70,208 Structured financing (i) 2,415,400 874,771 Credit cards operations 2,522,833 50,727 Contingent consideration (ii) 743,443 462,000 Commitments subject to possible redemption (iii) 1,080,721 — Lease liabilities 318,555 208,448 Others 174,111 40,078 Total 7,680,472 1,706,232 Current 5,860,674 1,244,232 Non-current 1,819,798 462,000 (i) Financing for maintenance of financial assets required to perform financial transactions. (ii) Contractual contingent considerations mostly associated with the acquisition of participations (Note 15). The maturity of the total contingent consideration payment is up to 6 years and the contractual maximum amount payable is R$878,506 (the minimum amount is zero). In December 31, 2021, the total amount include R$216,666 of contingent consideration derived by our acquisitions (Note 5.ii.b). (iii) Related to the IPO transaction of XPAC Acquisition Corp. that occurred on August 3, 2021. The capital issued by XPAC Acquisition Corp. includes conditionally redeemable Class A ordinary shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control. The noncontrolling shareholders of XPAC Acquisition Corp. have the right to redeem their shares in cash at the earliest of (i) upon the completion of XPAC Acquisition Corp’s initial business combination or (ii) 24 months from the closing of the IPO transaction. |
Social and statutory obligati_2
Social and statutory obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of social and statutory obligations | 2021 2020 Obligations to non-controlling interest 106,648 82,524 Employee profit-sharing (a) 776,713 483,378 Salaries and other benefits payable 138,851 101,546 Total 1,022,212 667,448 (a) The Group has a bonus scheme for its employees based on a profit sharing program as agreed under collective bargaining with the syndicate, which does not extend to the Executive Board. The bonus is calculated at each half of the year and payments are made in February and August. |
Tax and social security oblig_2
Tax and social security obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Tax and Social Security Obligations [Abstract] | |
Summary of tax and social security obligations | 2021 2020 Income Tax (IRPJ and CSLL) 273,395 261,490 Taxes on long term incentive plan (a) 155,454 62,155 Contributions over revenue (PIS and COFINS) 32,140 46,136 Taxes on services (ISS) 23,260 23,729 Contributions for Social Security (INSS) 20,318 12,291 Others 45,084 30,048 Total 549,651 435,849 Current 549,651 435,849 Non-current — — (a) The amount classified as "Taxes on long term incentive plan" includes mostly contributions to Brazilian Social Security Programs FGTS and INSS. |
Private pension liabilities (Ta
Private pension liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of defined benefit plans [abstract] | |
Summary of net defined benefit liability (asset) | Changes in the period 2021 2020 As of January 1 13,387,913 3,759,090 Contributions received 3,056,032 1,678,532 Transfer with third party plans 16,854,605 7,657,636 Withdraws (1,468,710) (304,194) Interest from assets within FIEs 91,560 596,849 As of December 31 31,921,400 13,387,913 |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Major components of tax expense (income) [abstract] | |
Summary of components of deferred tax assets and deferred tax liabilities | Deferred tax assets (DTA) and deferred tax liabilities (DTL) are comprised of the main following components: Balance Sheet Net change in the year 2021 2020 2021 2020 2019 Tax losses carryforwards 108,138 7,382 100,756 (9,764) (38,212) Goodwill on business combinations (i) 12,429 22,838 (10,409) 535 (37,690) Provisions for IFAs’ commissions 76,974 94,544 (17,570) 26,503 37,010 Revaluations of financial assets at fair value 173,740 (16,780) 190,520 (42,039) 23,862 Expected credit losses 43,931 19,444 24,487 13,778 2,587 Profit sharing plan 260,865 164,808 96,057 23,672 141,136 Net gain on hedge instruments 28,124 20,987 7,137 57,371 (34,943) Share-based compensation 385,594 115,976 269,618 113,025 2,950 Other provisions 154,340 67,495 86,845 34,211 42,301 Total 1,244,135 496,694 747,441 217,292 139,001 Deferred tax assets 1,273,069 505,046 Deferred tax liabilities (28,934) (8,352) (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 net deferred tax | The changes in the net deferred tax were recognized as follows: 2021 2020 2019 At January 1 496,694 279,401 140,400 Foreign exchange variations (16,949) 6,372 (3,461) Charges to statement of income 387,551 196,498 139,411 Tax relating to components of other comprehensive income 376,839 14,423 3,051 At December 31 1,244,135 496,694 279,401 |
Summary of income tax calculation | The following is a reconciliation of income tax expense to profit (loss) for the year, calculated by applying the combined Brazilian statutory rates at 34% for the year ended December 31: 2021 2020 2019 Income before taxes 3,815,174 2,421,413 1,544,109 Combined tax rate in Brazil (a) 34.00 % 34.00 % 34.00 % Tax expense at the combined rate 1,297,159 823,280 524,997 Loss (income from entities not subject to deferred taxation 554 (12,470) (9,551) Effects from entities taxed at different rates 146,377 35,377 25,948 Effects from entities taxed at different taxation regimes (b) (1,128,400) (443,579) (24,089) Intercompany transactions with different taxation regimes (79,055) (74,289) (50,138) Tax incentives (21,036) (14,354) (9,772) Non-deductible expenses (non-taxable income) 25,216 49,640 33,854 Others (18,101) (23,681) (36,624) Total 222,714 339,924 454,625 Effective tax rate 5.84 % 14.04 % 29.44 % Current 610,265 536,422 594,037 Deferred (387,551) (196,498) (139,412) Total expense 222,714 339,924 454,625 (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 operating 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. Additionally, some entities and investment funds adopt different taxation regimes according to the applicable rules in their jurisdictions. |
Summary of analysis of other comprehensive income by item | 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 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 1,057 (359) 698 As of December 31, 2019 (2,663) 3,051 388 Foreign exchange variation of investees located abroad 57,439 — 57,439 Gains (losses) on net investment hedge (91,762) 31,199 (60,563) Changes in the fair value of financial assets at fair value 40,979 (16,776) 24,203 As of December 31, 2020 6,656 14,423 21,079 Foreign exchange variation of investees located abroad 20,977 — 20,977 Gains (losses) on net investment hedge (29,700) 10,942 (18,758) Changes in the fair value of financial assets at fair value (914,914) 365,897 (549,017) As of December 31, 2021 (923,637) 376,839 (546,798) |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of classes of share capital [abstract] | |
Summary of issuances and conversations of shares | Below is a summary of the issuances and conversions of shares during 2021 and 2020: Class A Class B Total Shares As of December 31, 2019 354,181,346 197,618,980 551,800,326 Transfer of classes 16,325,000 (16,325,000) — Follow on offering 7,258,639 — 7,258,639 As of December 31, 2020 377,764,985 181,293,980 559,058,965 Transfer of classes (see note 1.2) 45,898,991 (45,898,991) — Issuance of shares 489,759 — 489,759 As of December 31, 2021 424,153,735 135,394,989 559,548,724 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of transactions between related parties [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: 2021 2020 2019 Fixed compensation 8,801 6,335 4,821 Variable compensation 44,362 55,909 22,060 Total 53,163 62,244 26,881 |
Summary of transactions between related parties explanatory | The main transactions carried with related parties for year-end balances arising from such transactions are as follows: Assets/(Liabilities) Revenue/(Expenses) Relation and transaction 2021 2020 2021 2020 2019 Shareholders with significant influence (i) (2,096,701) (5,667,588) (60,177) (53,881) (49,779) Securities 194,892 112,127 4,270 9,629 10,381 Securities purchased under agreements to resell — — 19,098 — 1,550 Accounts receivable and Loans operations 9,205 11,238 744 505 1,025 Securities sold under repurchase agreements (2,300,798) (5,780,430) (84,268) (62,951) (58,078) Borrowings — (10,523) (21) (1,064) (4,657) (i) These transactions are mainly related to Itausa S.A. Group. |
Provisions and contingent lia_2
Provisions and contingent liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of other provisions [abstract] | |
Summary of other provisions | 2021 2020 Tax contingencies 10,374 10,097 Civil contingencies 12,539 4,281 Labor contingencies 6,395 5,333 Total provision 29,308 19,711 Judicial deposits (i) 11,202 10,199 (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. |
Summary of changes in other provisions | Changes in the provision during the year 2021 2020 2019 Balance at January 1 19,711 15,193 17,474 Monetary correction 6,837 4,102 2,492 Provision 8,457 3,499 2,338 Reversed (3,132) (1,454) (3,939) Payments (2,565) (1,629) (3,172) Balance at December 31 29,308 19,711 15,193 |
Summary of contingent liabilities | Below is summarized these claims by nature: 2021 2020 Tax (i) 228,602 71,027 Civil (ii) 232,775 136,228 Labor 25,744 10,171 Total 487,121 217,426 (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 the 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. In November 2021, 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 2017, allegedly in violation of Brazilian Law 10,101/00 and non-deductible expenses for the income tax in amount of received by the members of Council. The amount claimed is R$97,456. An administrative appeal was filed against the assessment, which is awaiting judgment by the Federal Revenue of Brazil (“RFB”). In December 2021, the Group received a tax assessment in total amount of R$58,262 for benefits that occurred in 2016, regarding the amortized goodwill originated in the acquisition of the General Atlantic and Actis at XP CCTVM in different years (2013 and 2016). An administrative appeal was filed against the assessment, which is awaiting judgment by the Federal Revenue of Brazil (“RFB”). (ii) The Group is defendant in 586 civil and administrative 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) | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Disaggregation of revenue by major service lines | 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: 2021 2020 2019 Major service lines Brokerage commission 2,465,217 2,139,985 1,288,135 Securities placement 1,917,403 1,429,824 1,154,786 Management fees 1,489,736 1,224,125 1,035,224 Insurance brokerage fee 133,070 112,802 106,438 Educational services 71,295 118,272 97,986 Commissions Fees 192,923 90,804 48,413 Other services 532,035 386,780 227,054 6,801,679 5,502,592 3,958,036 (-) Sales taxes and contributions on revenue (i) (605,214) (486,104) (362,264) 6,196,465 5,016,488 3,595,772 (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 2021 2020 2019 Net Income of financial instruments at fair value through profit or loss 7,555,132 3,020,698 1,360,207 Net Income of financial instruments measured at amortized cost and at fair value through other comprehensive income (1,558,060) 188,196 199,947 (-) Taxes and contributions on financial income (116,425) (73,777) (28,118) 5,880,647 3,135,117 1,532,036 |
Summary of disaggregation by geographic location | c) Disaggregation by geographic location 2021 2020 2019 Brazil 11,723,976 7,454,304 4,790,236 United States (ii) 332,046 655,817 307,456 Europe 21,090 41,484 30,116 Total Revenue and Income 12,077,112 8,151,605 5,127,808 2021 2020 Brazil 7,698,115 3,244,421 United States (ii) 106,736 129,956 Europe 1,746 4,123 Selected assets (i) 7,806,597 3,378,500 (i) Selected assets are Total assets of the Group, less: cash, financial assets and deferred tax assets are presented by geographic location. (ii) Includes revenues and selected assets stated in the Cayman Islands. |
Operating costs (Tables)
Operating costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Summary of operating costs | 2021 2020 2019 Commission and incentive costs 2,719,611 2,087,197 1,269,309 Operating losses 35,844 31,295 13,922 Other costs 674,654 526,867 313,419 Clearing house fees 411,605 344,278 201,083 Third parties’ services 88,431 92,997 76,669 Other 174,618 89,592 35,667 Total 3,430,109 2,645,359 1,596,650 |
Operating expenses by nature (T
Operating expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Summary of operating expenses by nature | 2021 2020 2019 Selling expenses 227,483 134,915 155,115 Advertising and publicity 227,483 134,915 155,115 Administrative expenses 4,692,698 3,013,598 1,891,481 Personnel expenses 3,427,220 2,138,470 1,261,887 Compensation 1,416,247 846,742 408,394 Employee profit-sharing and bonus 1,362,046 807,640 645,992 Executives profit-sharing 143,763 194,419 67,547 Benefits 130,187 75,302 47,457 Social charges 358,878 208,151 88,960 Other 16,099 6,216 3,537 Other taxes expenses 53,603 44,029 39,691 Depreciation of property and equipment and right-of-use assets 68,618 67,422 53,530 Amortization of intangible assets 163,112 75,839 37,630 Other administrative expenses 980,145 687,838 498,743 Data processing 450,796 322,659 178,860 Technical services 167,984 101,389 85,782 Third parties' services 249,514 168,019 145,730 Rent expenses 16,498 17,955 10,575 Communication 30,041 29,311 17,495 Travel 13,282 9,923 21,676 Legal and judicial 9,292 6,976 3,406 Other 42,738 31,606 35,219 Total 4,920,181 3,148,513 2,046,596 |
Other operating income, net (Ta
Other operating income, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Summary of other operating income, net | 2021 2020 2019 Other operating income 413,665 377,480 208,245 Revenue from incentives from Tesouro Direto, B3 and others (a) 366,163 352,879 101,615 Interest received on tax 7,604 5,521 31,782 Recovery of charges and expenses 4,473 1,798 53,453 Reversal of operating provisions 7,422 1,366 9,767 Other 28,003 15,916 11,628 Other operating expenses (89,311) (206,427) (54,888) Legal, administrative proceedings and agreement with customers (3,667) (45,277) (9,499) Losses on write-off and disposal of assets (4,377) (52,102) (10,265) Tax incentive expenses (10,788) (8,136) (7,060) Fines and penalties (1,378) (16,995) (1,191) Associations and regulatory fees (11,714) (13,524) (4,216) Charity (30,171) (41,654) (6,751) Other (27,216) (28,739) (15,906) Total 324,354 171,053 153,357 (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. |
Share-based plan (Tables)
Share-based plan (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
Summary of RSU and PSU activity | Set out below are summaries of XP Inc's RSU and PSU activity for 2021 and 2020. RSUs PSUs Total (In thousands, except weighted-average data, and where otherwise stated) Number of units Number of units Number of units Outstanding, January 1 2020 1,921,669 2,190,377 4,112,046 Granted 9,730,422 629,535 10,359,957 Forfeited (572,355) — (572,355) Outstanding, December 31, 2020 11,079,736 2,819,912 13,899,648 Outstanding, January 1, 2021 11,079,736 2,819,912 13,899,648 Granted 5,709,046 230,086 5,939,132 Forfeited (1,634,952) (83,938) (1,718,890) Outstanding, December 31, 2021 15,153,830 2,966,060 18,119,890 |
Earnings per share (basic and_2
Earnings per share (basic and diluted) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per share [abstract] | |
Summary of earnings per share | The following table presents the calculation of net income applicable to the owners of the parent and basic and diluted EPS for the years ended December 31, 2021, 2020 and 2019. 2021 2020 2019 Net Income attributable to owners of the Parent 3,589,416 2,076,430 1,080,484 Basic weighted average number of outstanding shares 559,004 552,291 511,462 Basic earnings per share - R$ 6.4211 3.7597 2.1125 Effect of dilution Shared-based plan and treasury shares 14,496 6,817 248 Diluted weighted average number of outstanding shares 573,499 559,108 511,710 Diluted earnings per share - R$ 6.2588 3.7138 2.1115 (i) See on note 25, the number of XP Inc.’s outstanding common shares during the year (ii) See on note 32, the number of shares granted and forfeited during the year regarding XP Inc.’s Share-based plan. (iii) Thousands of shares. |
Determination of fair value (Ta
Determination of fair value (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [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: 2021 Level 1 Level 2 Level 3 Fair Value Book Value Financial Assets Financial assets at Fair value through profit or loss Securities 49,677,779 8,502,176 — 58,179,955 58,179,955 Derivative financial instruments 194,911 10,748,803 — 10,943,714 10,943,714 Fair value through other comprehensive income Securities 32,332,377 — — 32,332,377 32,332,377 Evaluated at amortized cost Securities 1,870,205 671,977 — 2,542,182 2,238,807 Securities purchased under agreements to resell — 9,124,719 — 9,124,719 8,894,531 Securities trading and intermediation — 1,405,651 — 1,405,651 1,405,651 Accounts receivable — 469,086 — 469,086 469,086 Loan operations — 12,844,037 — 12,844,037 12,819,627 Other financial assets — 461,515 — 461,515 461,515 Financial liabilities Fair value through profit or loss Securities loaned 2,237,442 518,804 — 2,665,202 2,665,202 Derivative financial instruments 157,710 11,750,473 — 11,908,183 11,908,183 Evaluated at amortized cost Securities sold under repurchase agreements — 26,276,252 — 26,276,252 26,281,345 Securities trading and intermediation — 15,597,555 — 15,597,555 15,597,555 Financing instruments payable — 23,974,348 — 23,974,348 24,429,086 Borrowings — 1,932,859 — 1,932,859 1,928,782 Accounts payables — 867,526 — 867,526 867,526 Other financial liabilities — 6,937,029 743,443 7,680,472 7,680,472 Investments in associates measured at fair value — — 1,221,424 1,221,424 1,221,424 2020 Level 1 Level 2 Level 3 Fair Value Book Value Financial Assets Financial assets at Fair value through profit or loss Securities 35,549,047 14,040,966 — 49,590,013 49,590,013 Derivative financial instruments 26,535 7,532,898 — 7,559,433 7,559,433 Fair value through other comprehensive income Securities 19,039,044 — — 19,039,044 19,039,044 Evaluated at amortized cost Securities 1,830,031 — — 1,830,031 1,828,704 Securities purchased under agreements to resell — 6,627,044 — 6,627,044 6,627,409 Securities trading and intermediation — 1,051,566 — 1,051,566 1,051,566 Accounts receivable — 506,359 — 506,359 506,359 Loan operations — 4,037,954 — 4,037,954 3,918,328 Other financial assets — 69,971 — 69,971 69,971 Financial liabilities Fair value through profit or loss Securities loaned 2,237,442 — — 2,237,442 2,237,442 Derivative financial instruments 13,221 7,806,143 — 7,819,364 7,819,364 Evaluated at amortized cost Securities sold under repurchase agreements — 31,810,893 — 31,810,893 31,839,344 Securities trading and intermediation — 20,303,121 — 20,303,121 20,303,121 Financing instruments payable — 5,162,453 — 5,162,453 5,551,849 Borrowings — 283,993 — 283,993 284,087 Debentures — 331,520 — 331,520 335,250 Accounts payables — 859,550 — 859,550 859,550 Other financial liabilities — 1,244,232 462,000 1,706,232 1,706,232 |
Management of financial risks_2
Management of financial risks and financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [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: 2021 2020 Financial assets Securities purchased under agreements to resell 8,894,531 6,627,409 Securities 92,751,139 70,457,761 Public securities 48,246,922 51,944,301 Private securities 44,504,217 18,513,460 Derivative financial instruments 10,943,714 7,559,433 Securities trading and intermediation 1,405,651 1,051,566 Accounts receivable 469,086 506,359 Loan operations 12,819,627 3,918,328 Other financial assets 461,515 69,971 Off-balance exposures (credit card limits) 1,367,399 35,810 Total 129,112,662 90,190,827 |
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: 2021 Liabilities Up to 1 month From 2 to 3 months From 3 to 12 months From 1 to 5 years Above 5 years Contractual cash flow Securities loaned 2,146,398 — — — 518,804 2,665,202 Derivative financial instruments 758,821 1,379,092 2,250,942 6,436,008 1,083,320 11,908,183 Securities sold under repurchase agreements 26,281,345 — — — — 26,281,345 Securities trading and intermediation 15,597,555 — — — — 15,597,555 Financing instruments payable 982,877 1,245,279 5,790,698 15,525,061 885,171 24,429,086 Borrowings — — 1,661,067 267,715 — 1,928,782 Accounts payables 867,526 — — — — 867,526 Other financial liabilities 5,856,309 — 4,365 1,819,798 — 7,680,472 Total 52,490,831 2,624,371 9,707,072 24,048,582 2,487,295 91,358,151 2020 Liabilities Up to 1 month From 2 to 3 months From 3 to 12 months From 1 to 5 years Above 5 years Contractual cash flow Securities loaned 2,237,442 — — — — 2,237,442 Derivative financial instruments 1,572,140 814,220 2,643,065 2,205,410 584,529 7,819,364 Securities sold under repurchase agreements 31,839,344 — — — — 31,839,344 Securities trading and intermediation 20,303,121 — — — — 20,303,121 Financing instruments payable 128,426 58,966 2,356,082 1,685,468 1,322,907 5,551,849 Borrowings 3,535 6,989 7,114 266,449 — 284,087 Accounts payables 859,550 — — — — 859,550 Other financial liabilities 1,038,628 5,721 25,454 571,054 65,375 1,706,232 Total 57,982,186 885,896 5,031,715 4,728,381 1,972,811 70,600,989 |
Summary of sensitivity analysis | 2021 Trading portfolio Exposures Scenarios Risk factors Risk of variation in: I II III Pre-fixed Pre-fixed interest rate in Reais (285) (110,555) (204,607) Exchange coupons Foreign currencies coupon rate (35) (5,578) (11,325) Foreign currencies Exchange rates (364) 177,203 384,340 Price indexes Inflation coupon rates (248) (53,407) (103,602) Shares Shares prices (1,483) (131,753) 92,024 Seed Money (i) Seed Money (6,203) (155,068) (310,136) (8,618) (279,158) (153,306) 2020 Trading portfolio Exposures Scenarios Risk factors Risk of variation in: I II III Pre-fixed Pre-fixed interest rate in Reais (191) (9,056) (33,402) Exchange coupons Foreign currencies coupon rate (379) (5,508) (11,184) Foreign currencies Exchange rates (1,997) (169,318) (373,807) Price indexes Inflation coupon rates (311) (14,384) (28,434) Shares Shares prices (4,957) (107,704) (167,737) (7,835) (305,970) (614,564) |
Capital management (Tables)
Capital management (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Summary of net debt and corresponding gearing ratios | The net debt and corresponding gearing ratios as of December 2021 and 2020 were as follows: 2021 2020 Group debt (Note 37) (i) 7,073,021 827,785 Structured financing (Note 20 (b)) 2,415,400 874,771 Total debt 9,488,421 1,702,556 Cash (2,485,641) (1,954,788) Securities purchased under agreements to resell (Note 6 (a)) (1,071,328) (593,673) Certificate deposits (Securities) (Note 7 (a)) (194,892) (111,927) Net debt 5,736,560 (957,832) Total equity 14,416,836 10,894,609 Total capital 20,153,396 9,936,777 Gearing ratio % 28.46% (9.64)% (i) Includes Debentures and Bonds designated as fair value through profit or loss. See Note 7(e) and 17, respectively. |
Cash flow information (Tables)
Cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of reconciliation of liabilities arising from financing activities [abstract] | |
Summary of debt reconciliation | (i) Debt reconciliation Debt securities (i) Borrowings Lease liabilities Debentures Bonds Total 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 Total debt as of January 1, 2020 382,078 255,406 835,230 — 1,472,714 Acquisitions / Issuance — 55,820 — — 55,820 Write-off — (78,321) — — (78,321) Payments (95,395) (57,473) (400,000) — (552,868) Repurchase — — (64,717) — (64,717) Revaluation — (10,050) — — (10,050) Net foreign exchange differences — 23,610 — — 23,610 Interest accrued 11,892 19,456 21,473 — 52,821 Interest paid (14,488) — (56,736) — (71,224) Total debt as of December 31, 2020 284,087 208,448 335,250 — 827,785 Total debt as of January 1, 2021 284,087 208,448 335,250 — 827,785 Acquisitions / Issuance 1,570,639 116,248 500,018 3,691,262 5,878,167 Payments (21,022) (55,349) (177,826) — (254,197) Revaluation — 24,234 — — 24,234 Net foreign exchange differences 73,426 7,486 — 431,250 512,162 Interest accrued 21,689 17,488 60,919 74,798 174,894 Interest paid (37) — (12,386) (69,004) (81,427) Total debt as of December 31, 2021 1,928,782 318,555 705,975 4,128,306 7,081,618 (i) Debt securities includes Debentures measured at FVPL presented in Note 7(e) and does not include fair value adjustments of (i) Debentures - R$18,077 and (ii) Bonds - R$9,480 (December 31, 2020: nil). |
Operations - Additional informa
Operations - Additional information (Details) $ / shares in Units, R$ in Thousands, $ in Thousands | Dec. 07, 2020BRL (R$)shares | Dec. 07, 2020USD ($)$ / sharesshares | Dec. 31, 2021BRL (R$)shares | Dec. 31, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | Jun. 22, 2021shares | Jan. 31, 2021Agreement | Jul. 01, 2020$ / sharesshares |
Percentage of Ownership held by holding company | 68.28% | |||||||
Number of shares issued, new shares (in shares) | shares | 489,759 | |||||||
Proceeds from SPAC issuance of shares | R$ | R$ 1134797 | R$ 0 | R$ 0 | |||||
Other comprehensive income, net | R$ | R$ 1649 | R$ 22824 | ||||||
Number of corporate reorganization agreements | Agreement | 2 | |||||||
Number of depositary receipts per common share | shares | 1 | |||||||
Class A Common Share | ||||||||
Number of shares issued (in shares) | shares | 31,654,894 | 22,465,733 | ||||||
Shares issued price per share (in USD per share) | $ / shares | $ 39 | $ 42.50 | ||||||
Shares issued to underwriters (in shares) | shares | 2,930,313 | |||||||
Number of shares issued, new shares (in shares) | shares | 7,130,435 | 7,130,435 | 489,759 | |||||
Number of shares issued, existing shares (in shares) | shares | 24,524,459 | |||||||
Proceeds from SPAC issuance of shares | R$ 1444530 | $ 283,087 | ||||||
Underwriting discounts and commissions | R$ | 31,599 | |||||||
Other offering expenses | R$ | 7,271 | |||||||
Equity issuance costs recognized in income statement | R$ | 5,622 | |||||||
Other comprehensive income, net | R$ | R$ 1649 |
Basis of preparation of the f_2
Basis of preparation of the financial statements (Details) | 12 Months Ended |
Dec. 31, 2021segement | |
Disclosure Of Basis Of Preparation Of Financial Statements Abstract [Abstract] | |
Number of operating segment | 1 |
Number of reportable segment | 1 |
Summary of significant accoun_4
Summary of significant accounting policies - Summary of depreciation of property and equipment (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Data processing system | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation annual rate | 20.00% |
Furniture and equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation annual rate | 10.00% |
Security systems | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation annual rate | 10.00% |
Facilities | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation annual rate | 10.00% |
Vehicle | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation annual rate | 10.00% |
Summary of significant accoun_5
Summary of significant accounting policies - Summary of useful lives of intangible assets (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Direct development costs | |
Disclosure of detailed information about intangible assets [line items] | |
Estimate useful life (years) | 5 years |
Bottom of range | Software | |
Disclosure of detailed information about intangible assets [line items] | |
Estimate useful life (years) | 3 years |
Bottom of range | Internally developed intangible | |
Disclosure of detailed information about intangible assets [line items] | |
Estimate useful life (years) | 3 years |
Bottom of range | Customer list | |
Disclosure of detailed information about intangible assets [line items] | |
Estimate useful life (years) | 2 years |
Bottom of range | Trademarks | |
Disclosure of detailed information about intangible assets [line items] | |
Estimate useful life (years) | 10 years |
Top of range | Software | |
Disclosure of detailed information about intangible assets [line items] | |
Estimate useful life (years) | 5 years |
Top of range | Internally developed intangible | |
Disclosure of detailed information about intangible assets [line items] | |
Estimate useful life (years) | 7 years |
Top of range | Customer list | |
Disclosure of detailed information about intangible assets [line items] | |
Estimate useful life (years) | 8 years |
Top of range | Trademarks | |
Disclosure of detailed information about intangible assets [line items] | |
Estimate useful life (years) | 20 years |
Summary of significant accoun_6
Summary of significant accounting policies - Additional information (Details) - BRL (R$) | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of Significant Accounting Policies [Line Items] | |||||
Combined tax rate in Brazil | 34.00% | 34.00% | 34.00% | ||
Applicable surcharge tax rate | 10.00% | ||||
Monthly minimum income for surcharge | R$ 20000 | ||||
Annual minimum income for surcharge | R$ 240000 | ||||
Social contribution tax on net income | 20.00% | 9.00% | |||
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% | ||||
Bottom of range | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Percentage of taxes reducing gross revenues | 2.00% | ||||
Top of range | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Percentage of taxes reducing gross revenues | 5.00% | ||||
Financial Institutions and Insurance Companies | |||||
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% | ||||
Financial Institutions | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Social contribution tax on net income | 25.00% | ||||
Social contribution tax on net income temporary increase | 5.00% | ||||
Insurance Companies | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Social contribution tax on net income | 20.00% | ||||
Federal Income Tax | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Combined tax rate in Brazil | 15.00% |
Group structure - Summary of di
Group structure - Summary of direct and indirect interests of company in its subsidiaries (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
XP Investimentos S.A. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Holding | ||
Percent of group's interest | 100.00% | 100.00% | 0.00% |
XPAC Sponsor LLC | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Cayman | ||
Principal activities | Special Purpose Acquisition (SPAC) Sponsor | ||
Percent of group's interest | 100.00% | 0.00% | 0.00% |
XProject LTD | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Cayman | ||
Principal activities | Holding | ||
Percent of group's interest | 100.00% | 0.00% | 0.00% |
XP Investimentos Corretora de Câmbio, Títulos e Valores Mobiliários S.A. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Broker-dealer | ||
Percent of group's interest | 100.00% | 100.00% | 100.00% |
XP Vida e Previdencia S.A. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Private pension and insurance | ||
Percent of group's interest | 100.00% | 100.00% | 100.00% |
Banco XP S.A. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Multipurpose bank | ||
Percent of group's interest | 100.00% | 100.00% | 100.00% |
XP Controle 3 Participações S.A. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Financial Holding | ||
Percent of group's interest | 100.00% | 100.00% | 100.00% |
XPE Infomoney Educação Assessoria Empresarial e Participações Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Digital Content services | ||
Percent of group's interest | 100.00% | 100.00% | 99.99% |
Tecfinance Informática e Projetos de Sistemas Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Rendering of IT services | ||
Percent of group's interest | 99.73% | 99.76% | 99.76% |
XP Corretora de Seguros Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Insurance Broker | ||
Percent of group's interest | 99.99% | 99.99% | 99.99% |
XP Gestão de Recursos Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Asset management | ||
Percent of group's interest | 94.90% | 94.80% | 93.70% |
XP Finanças Assessoria Financeira Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment consulting service | ||
Percent of group's interest | 99.99% | 99.99% | 99.99% |
Infostocks Informações e Sistemas Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Mediation of information systems | ||
Percent of group's interest | 99.99% | 99.99% | 99.99% |
XP Advisory Gestão Recursos Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Asset management | ||
Percent of group's interest | 99.54% | 99.50% | 99.57% |
XP Vista Asset Management Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Asset management | ||
Percent of group's interest | 99.50% | 99.45% | 99.42% |
XP Controle 4 Participações S.A. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Insurance holding | ||
Percent of group's interest | 100.00% | 100.00% | 100.00% |
Leadr Serviços Online Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Social media | ||
Percent of group's interest | 0.00% | 99.99% | 99.99% |
Spiti Análise Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment Advisor | ||
Percent of group's interest | 0.00% | 100.00% | 100.00% |
Chamaleon Bravery Unipessoal LDA | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Portugal | ||
Principal activities | Investment Advisor | ||
Percent of group's interest | 0.00% | 100.00% | 100.00% |
XP Investments UK LLP | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | UK | ||
Principal activities | Inter-dealer broker and Organized Trading Facility (OTF) | ||
Percent of group's interest | 100.00% | 100.00% | 100.00% |
Sartus Capital LTD | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | UK | ||
Principal activities | Investment advisor | ||
Percent of group's interest | 100.00% | 100.00% | 100.00% |
XP Private (Europe) S.A. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Switzerland | ||
Principal activities | Investment advisor | ||
Percent of group's interest | 0.00% | 100.00% | 100.00% |
XP Holding UK Ltd | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | UK | ||
Principal activities | International financial holding | ||
Percent of group's interest | 100.00% | 100.00% | 100.00% |
XP Investments US, LLC | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | USA | ||
Principal activities | Broker-dealer | ||
Percent of group's interest | 100.00% | 100.00% | 100.00% |
Xperience Market Services LLC | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | USA | ||
Principal activities | Non-operational | ||
Percent of group's interest | 0.00% | 100.00% | 100.00% |
XP Holding International LLC | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | USA | ||
Principal activities | International financial holding | ||
Percent of group's interest | 100.00% | 100.00% | 100.00% |
XP Advisory US | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | USA | ||
Principal activities | Investment advisor | ||
Percent of group's interest | 100.00% | 100.00% | 100.00% |
XP PE Gestão de Recursos Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Asset management | ||
Percent of group's interest | 98.70% | 98.70% | 0.00% |
XP LT Gestão de Recursos Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Asset management | ||
Percent of group's interest | 92.00% | 92.00% | 0.00% |
Carteira Online Controle de Investimentos Ltda. - ME | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment consolidation platform | ||
Percent of group's interest | 99.99% | 99.99% | 0.00% |
Antecipa S.A. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Receivables Financing Market | ||
Percent of group's interest | 100.00% | 100.00% | 0.00% |
XP Allocation Asset Management Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Asset management | ||
Percent of group's interest | 99.99% | 99.99% | 0.00% |
Track Índices Consultoria Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Index Provider | ||
Percent of group's interest | 100.00% | 100.00% | 0.00% |
XP Eventos Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Media and Events | ||
Percent of group's interest | 99.90% | 99.00% | 0.00% |
DM10 Corretora de Seguros Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Insurance Broker | ||
Percent of group's interest | 100.00% | 100.00% | 0.00% |
XP Comercializadora de Energia Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Energy trading | ||
Percent of group's interest | 100.00% | 0.00% | 0.00% |
Instituto XP | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Non-profit entity | ||
Percent of group's interest | 100.00% | 0.00% | 0.00% |
XPAC Acquisition Corp. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | US | ||
Principal activities | Special Purpose Acquisition (SPAC) | ||
Percent of group's interest | 20.00% | 0.00% | 0.00% |
XP Distribuidora de Titulos e Valores Mobiliarios | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Securities dealer | ||
Percent of group's interest | 100.00% | 0.00% | 0.00% |
Instituto de Gestao a Tecnologia de Informacao Ltda. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Educational content services | ||
Percent of group's interest | 100.00% | 0.00% | 0.00% |
Xchange Intermediacão S.A. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Digital Assets | ||
Percent of group's interest | 100.00% | 0.00% | 0.00% |
Falx Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
Percent of group's interest | 100.00% | 100.00% | 100.00% |
Gladius Fundo de Investimento Multimercado Investimento no Exterior | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
Percent of group's interest | 100.00% | 100.00% | 100.00% |
Scorpio Debentures Incentivadas Fundo de Investimento Multimercado Crédito Privado | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
Percent of group's interest | 100.00% | 100.00% | 100.00% |
Galea Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
Percent of group's interest | 0.00% | 100.00% | 100.00% |
Javelin Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
Percent of group's interest | 100.00% | 100.00% | 100.00% |
Spatha Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
Percent of group's interest | 0.00% | 100.00% | 100.00% |
Frade Fundo de Investimento em Cotas de Fundos de Investimento em Direitos Creditórios NP | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
Percent of group's interest | 100.00% | 100.00% | 100.00% |
Frade III Fundo de Investimento em Cotas de Fundo de Investimento Multimercado Crédito Privado | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
Percent of group's interest | 100.00% | 100.00% | 0.00% |
Balista Debentures Incentivadas Fundo de Investimento Multimercado Crédito Privado | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
Percent of group's interest | 0.00% | 100.00% | 0.00% |
Coliseu Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
Percent of group's interest | 100.00% | 100.00% | 0.00% |
NIMROD Fundo de Investimento Multimercado Crédito Privado Investimento no Exterior | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
Percent of group's interest | 100.00% | 100.00% | 0.00% |
XP High Yield Fund SP | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Cayman | ||
Principal activities | Investment fund | ||
Percent of group's interest | 100.00% | 100.00% | 0.00% |
XP International Fund SPC | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Cayman | ||
Principal activities | Investment fund | ||
Percent of group's interest | 100.00% | 100.00% | 0.00% |
XP Managers Fundo de Investimento em Participações Multiestratégia | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
Percent of group's interest | 100.00% | 100.00% | 0.00% |
XP Alesia Fund SP CL Shares - Brazil Internacional Fund SPC. | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Cayman | ||
Principal activities | Investment fund | ||
Percent of group's interest | 100.00% | 0.00% | 0.00% |
Newave Fundo de Investimento em Participações Multiestratégia | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
Percent of group's interest | 100.00% | 0.00% | 0.00% |
Endor Fundo de Investimento em Participações Multiestratégia Investimento no Exterior | |||
Disclosure of subsidiaries [line items] | |||
Country of incorporation | Brazil | ||
Principal activities | Investment fund | ||
Percent of group's interest | 100.00% | 0.00% | 0.00% |
Group structure - Additional in
Group structure - Additional information (Details) R$ in Thousands | Nov. 05, 2021BRL (R$)installment | Aug. 03, 2021BRL (R$) | Dec. 31, 2021BRL (R$) | Dec. 31, 2020BRL (R$)installment | Dec. 31, 2019BRL (R$) | Aug. 23, 2021 | May 04, 2021 | Dec. 23, 2020 | Jun. 29, 2020 | Jun. 09, 2020 | Jun. 05, 2020 |
Disclosure of subsidiaries [line items] | |||||||||||
Purchase consideration transferred | R$ 125774 | ||||||||||
Acquisition of subsidiaries, net of cash acquired | R$ 40857 | 62,443 | R$ 0 | ||||||||
Payable in installments | R$ 21487 | ||||||||||
Number of consecutive annual installments | installment | 3 | ||||||||||
Contingent consideration | R$ 39032 | ||||||||||
Proceeds from SPAC issuance of shares | R$ 1134797 | 0 | R$ 0 | ||||||||
XPAC Acquisition Corp. | |||||||||||
Disclosure of subsidiaries [line items] | |||||||||||
Proceeds from SPAC issuance of shares | R$ 1134797 | ||||||||||
IGTI | |||||||||||
Disclosure of subsidiaries [line items] | |||||||||||
Percentage of voting equity interests acquired | 100.00% | ||||||||||
Purchase consideration transferred | R$ 46382 | ||||||||||
Acquisition of subsidiaries, net of cash acquired | 40,000 | ||||||||||
Payable in installments | R$ 5000 | ||||||||||
Number of consecutive annual installments | installment | 6 | ||||||||||
Contingent consideration | R$ 1381 | ||||||||||
XProject | |||||||||||
Disclosure of subsidiaries [line items] | |||||||||||
Percentage of voting equity interests acquired | 100.00% | ||||||||||
XP Energia | |||||||||||
Disclosure of subsidiaries [line items] | |||||||||||
Percentage of voting equity interests acquired | 100.00% | ||||||||||
Fliper | |||||||||||
Disclosure of subsidiaries [line items] | |||||||||||
Percentage of voting equity interests acquired | 100.00% | ||||||||||
Purchase consideration transferred | 67,459 | ||||||||||
Acquisition of subsidiaries, net of cash acquired | 36,542 | ||||||||||
Payable in installments | 0 | ||||||||||
Contingent consideration | 30,300 | ||||||||||
DM10 | |||||||||||
Disclosure of subsidiaries [line items] | |||||||||||
Percentage of voting equity interests acquired | 100.00% | ||||||||||
Purchase consideration transferred | 17,000 | ||||||||||
Acquisition of subsidiaries, net of cash acquired | 10,725 | ||||||||||
Payable in installments | 6,000 | ||||||||||
Contingent consideration | 0 | ||||||||||
Antecipa | |||||||||||
Disclosure of subsidiaries [line items] | |||||||||||
Percentage of voting equity interests acquired | 100.00% | ||||||||||
Purchase consideration transferred | 41,315 | ||||||||||
Acquisition of subsidiaries, net of cash acquired | 16,030 | ||||||||||
Payable in installments | 14,636 | ||||||||||
Contingent consideration | R$ 8732 | ||||||||||
Riza | |||||||||||
Disclosure of subsidiaries [line items] | |||||||||||
Percentage of voting equity interests acquired | 100.00% |
Group structure - Summary of th
Group structure - Summary of the net assets acquired, the goodwill (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Liabilities | |||
Contingent consideration | R$ 743443 | R$ 462000 | |
Purchase consideration transferred | 125,774 | ||
Analysis of cash flows on acquisition | |||
Payable in installments | (21,487) | ||
Contingent consideration | (39,032) | ||
Acquisition of subsidiaries, net of cash acquired | 40,857 | 62,443 | R$ 0 |
Total | |||
Assets | |||
Cash | 2,809 | ||
Other assets | 506 | ||
Intangible assets | 15,856 | ||
Total assets acquired as of acquisition date | 19,171 | ||
Liabilities | |||
Other liabilities | (7,879) | ||
Total identifiable net assets at fair value | 11,292 | ||
Goodwill arising on acquisition | 75,450 | ||
Contingent consideration | 39,032 | ||
Purchase consideration transferred | 125,774 | ||
Analysis of cash flows on acquisition | |||
Net cash acquired with the subsidiary | (2,809) | ||
Payable in installments | (20,636) | ||
Contingent consideration | (39,032) | ||
Acquisition of subsidiaries, net of cash acquired | 63,297 | ||
Goodwill arising on acquisition, previously disclosed | 100,923 | ||
Contingent consideration, previously disclosed | 14,183 | ||
Additional recognition, goodwill | 2,233 | ||
Additional recognition, contingent consideration | 24,849 | ||
Total | 2020 | |||
Analysis of cash flows on acquisition | |||
Acquisition of subsidiaries, net of cash acquired | 62,443 | ||
Total | 2021 | |||
Analysis of cash flows on acquisition | |||
Acquisition of subsidiaries, net of cash acquired | R$ 854 | ||
Fliper | |||
Assets | |||
Cash | 617 | ||
Other assets | 0 | ||
Intangible assets | 2,869 | ||
Total assets acquired as of acquisition date | 3,486 | ||
Liabilities | |||
Other liabilities | (6,159) | ||
Total identifiable net assets at fair value | (2,673) | ||
Goodwill arising on acquisition | 39,832 | ||
Contingent consideration | 30,300 | ||
Purchase consideration transferred | 67,459 | ||
Analysis of cash flows on acquisition | |||
Net cash acquired with the subsidiary | (617) | ||
Payable in installments | 0 | ||
Contingent consideration | (30,300) | ||
Acquisition of subsidiaries, net of cash acquired | 36,542 | ||
Antecipa | |||
Assets | |||
Cash | 1,917 | ||
Other assets | 95 | ||
Intangible assets | 10,037 | ||
Total assets acquired as of acquisition date | 12,049 | ||
Liabilities | |||
Other liabilities | (198) | ||
Total identifiable net assets at fair value | 11,851 | ||
Goodwill arising on acquisition | 20,732 | ||
Contingent consideration | 8,732 | ||
Purchase consideration transferred | 41,315 | ||
Analysis of cash flows on acquisition | |||
Net cash acquired with the subsidiary | (1,917) | ||
Payable in installments | (14,636) | ||
Contingent consideration | (8,732) | ||
Acquisition of subsidiaries, net of cash acquired | 16,030 | ||
DM10 | |||
Assets | |||
Cash | 275 | ||
Other assets | 411 | ||
Intangible assets | 2,950 | ||
Total assets acquired as of acquisition date | 3,636 | ||
Liabilities | |||
Other liabilities | (1,522) | ||
Total identifiable net assets at fair value | 2,114 | ||
Goodwill arising on acquisition | 14,886 | ||
Contingent consideration | 0 | ||
Purchase consideration transferred | 17,000 | ||
Analysis of cash flows on acquisition | |||
Net cash acquired with the subsidiary | (275) | ||
Payable in installments | (6,000) | ||
Contingent consideration | 0 | ||
Acquisition of subsidiaries, net of cash acquired | R$ 10725 |
Group structure - Summary of in
Group structure - Summary of intangible assets acquired (Details) R$ in Thousands | 12 Months Ended |
Dec. 31, 2021BRL (R$) | |
Customer list | |
Disclosure of subsidiaries [line items] | |
Intangible assets | R$ 2181 |
Method | Multi-period excess earning method |
Expected amortization period | 5 years 6 months |
Trademarks | |
Disclosure of subsidiaries [line items] | |
Intangible assets | R$ 3799 |
Method | Relief from royalty |
Expected amortization period | 5 years |
Technology | |
Disclosure of subsidiaries [line items] | |
Intangible assets | R$ 9876 |
Method | Relief from royalty |
Expected amortization period | 5 years |
Securities purchased (sold) u_3
Securities purchased (sold) under resale (repurchase) agreements - Summary of securities purchased under agreements to resell (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Summary of Securities Purchased Under Agreements to Resell [Line Items] | ||
Expected credit loss | R$ 2569 | R$ 370 |
Securities purchased under agreements to resell | R$ 8894531 | R$ 6627409 |
Investments in purchase and sale commitments, interest rate | 9.15% | 1.91% |
Available portfolio | ||
Summary of Securities Purchased Under Agreements to Resell [Line Items] | ||
Securities purchased under agreements to resell | R$ 3322254 | R$ 1409742 |
Available portfolio | National Treasury Notes | ||
Summary of Securities Purchased Under Agreements to Resell [Line Items] | ||
Securities purchased under agreements to resell | 2,671,122 | 876,146 |
Available portfolio | Financial Treasury Bills | ||
Summary of Securities Purchased Under Agreements to Resell [Line Items] | ||
Securities purchased under agreements to resell | 0 | 452,714 |
Available portfolio | National Treasury Bills | ||
Summary of Securities Purchased Under Agreements to Resell [Line Items] | ||
Securities purchased under agreements to resell | 544,546 | 44,093 |
Available portfolio | Debentures | ||
Summary of Securities Purchased Under Agreements to Resell [Line Items] | ||
Securities purchased under agreements to resell | 37,688 | 36,789 |
Available portfolio | Real Estate Receivable Certificates | ||
Summary of Securities Purchased Under Agreements to Resell [Line Items] | ||
Securities purchased under agreements to resell | 43,397 | 0 |
Available portfolio | Financial credit bills | ||
Summary of Securities Purchased Under Agreements to Resell [Line Items] | ||
Securities purchased under agreements to resell | 25,501 | 0 |
Collateral held | ||
Summary of Securities Purchased Under Agreements to Resell [Line Items] | ||
Securities purchased under agreements to resell | 5,574,846 | 5,218,037 |
Collateral held | National Treasury Notes | ||
Summary of Securities Purchased Under Agreements to Resell [Line Items] | ||
Securities purchased under agreements to resell | 1,556,303 | 4,241,569 |
Collateral held | National Treasury Bills | ||
Summary of Securities Purchased Under Agreements to Resell [Line Items] | ||
Securities purchased under agreements to resell | 0 | 976,468 |
Collateral held | Debentures | ||
Summary of Securities Purchased Under Agreements to Resell [Line Items] | ||
Securities purchased under agreements to resell | 906,519 | 0 |
Collateral held | Real Estate Receivable Certificates | ||
Summary of Securities Purchased Under Agreements to Resell [Line Items] | ||
Securities purchased under agreements to resell | 2,586,893 | 0 |
Collateral held | Financial credit bills | ||
Summary of Securities Purchased Under Agreements to Resell [Line Items] | ||
Securities purchased under agreements to resell | R$ 525131 | R$ 0 |
Securities purchased (sold) u_4
Securities purchased (sold) under resale (repurchase) agreements - Additional information (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Securities purchased under agreements to resell [Abstract] | |||
Securities purchased under agreements to resell presented as cash equivalents | R$ 1071328 | R$ 593673 | R$ 654057 |
Securities sold under repurchase agreements, interest rate | 9.14% | 1.89% |
Securities purchased (sold) u_5
Securities purchased (sold) under resale (repurchase) agreements - Securities sold under repurchase agreements (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Securities Purchased Under Agreements to Resell [Line Items] | ||
Securities sold under repurchase agreements | R$ 26281345 | R$ 31839344 |
National Treasury Bills | ||
Securities Purchased Under Agreements to Resell [Line Items] | ||
Securities sold under repurchase agreements | 3,325,188 | 18,318,498 |
National Treasury Notes | ||
Securities Purchased Under Agreements to Resell [Line Items] | ||
Securities sold under repurchase agreements | 10,098,672 | 13,497,944 |
Financial Treasury Bills | ||
Securities Purchased Under Agreements to Resell [Line Items] | ||
Securities sold under repurchase agreements | 7,515,712 | 0 |
Debentures | ||
Securities Purchased Under Agreements to Resell [Line Items] | ||
Securities sold under repurchase agreements | 553,953 | 22,902 |
Real Estate Receivable Certificates | ||
Securities Purchased Under Agreements to Resell [Line Items] | ||
Securities sold under repurchase agreements | 4,324,155 | 0 |
Financial credit bills | ||
Securities Purchased Under Agreements to Resell [Line Items] | ||
Securities sold under repurchase agreements | R$ 463665 | R$ 0 |
Securities - Summary of Securit
Securities - Summary of Securities Classified at Fair Value Through Profit or Loss (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial assets [line items] | |||
Securities | R$ 58179955 | R$ 49590013 | |
Interbank certificate deposits | 194,892 | 111,927 | R$ 123817 |
Investment funds | XP Vida e Previdência S.A. | |||
Disclosure of financial assets [line items] | |||
Securities | 26,336,326 | 10,625,520 | |
Bank deposit certificates | |||
Disclosure of financial assets [line items] | |||
Interbank certificate deposits | 194,892 | 111,927 | |
Specially Constituted Investment Fund | |||
Disclosure of financial assets [line items] | |||
Securities | 31,921,400 | 13,387,913 | |
Gross carrying amount | |||
Disclosure of financial assets [line items] | |||
Securities | 58,093,981 | 49,157,111 | |
Gross carrying amount | Available portfolio | |||
Disclosure of financial assets [line items] | |||
Securities | 56,899,391 | 49,157,111 | |
Gross carrying amount | Brazilian government bonds | |||
Disclosure of financial assets [line items] | |||
Securities | 15,577,753 | 30,752,903 | |
Gross carrying amount | Investment funds | |||
Disclosure of financial assets [line items] | |||
Securities | 28,520,788 | 11,216,914 | |
Gross carrying amount | Stocks issued by public-held company | |||
Disclosure of financial assets [line items] | |||
Securities | 4,768,724 | 3,802,610 | |
Gross carrying amount | Debentures | |||
Disclosure of financial assets [line items] | |||
Securities | 4,493,406 | 1,111,595 | |
Gross carrying amount | Structured transaction certificate | |||
Disclosure of financial assets [line items] | |||
Securities | 235,794 | 485,012 | |
Gross carrying amount | Bank deposit certificates | |||
Disclosure of financial assets [line items] | |||
Securities | 352,770 | 371,455 | |
Gross carrying amount | Agribusiness receivables certificates | |||
Disclosure of financial assets [line items] | |||
Securities | 573,374 | 359,607 | |
Gross carrying amount | Certificate of real estate receivable | |||
Disclosure of financial assets [line items] | |||
Securities | 568,347 | 97,606 | |
Gross carrying amount | Financial credit bills | |||
Disclosure of financial assets [line items] | |||
Securities | 663,236 | 81,465 | |
Gross carrying amount | Others | |||
Disclosure of financial assets [line items] | |||
Securities | 1,145,199 | 877,944 | |
Gross carrying amount | Investments held in trust accounts | |||
Disclosure of financial assets [line items] | |||
Securities | 1,194,590 | 0 | |
Gross carrying amount | Us government bonds | |||
Disclosure of financial assets [line items] | |||
Securities | 1,194,590 | 0 | |
Fair value | |||
Disclosure of financial assets [line items] | |||
Securities | 58,179,955 | 49,590,013 | |
Fair value | Available portfolio | |||
Disclosure of financial assets [line items] | |||
Securities | 56,985,365 | 49,590,013 | |
Fair value | Brazilian government bonds | |||
Disclosure of financial assets [line items] | |||
Securities | 15,582,410 | 31,129,671 | |
Fair value | Investment funds | |||
Disclosure of financial assets [line items] | |||
Securities | 28,520,788 | 11,221,774 | |
Fair value | Stocks issued by public-held company | |||
Disclosure of financial assets [line items] | |||
Securities | 4,768,724 | 3,802,470 | |
Fair value | Debentures | |||
Disclosure of financial assets [line items] | |||
Securities | 4,522,150 | 1,114,967 | |
Fair value | Structured transaction certificate | |||
Disclosure of financial assets [line items] | |||
Securities | 270,225 | 515,960 | |
Fair value | Bank deposit certificates | |||
Disclosure of financial assets [line items] | |||
Securities | 356,313 | 372,329 | |
Fair value | Agribusiness receivables certificates | |||
Disclosure of financial assets [line items] | |||
Securities | 579,224 | 363,721 | |
Fair value | Certificate of real estate receivable | |||
Disclosure of financial assets [line items] | |||
Securities | 575,717 | 96,930 | |
Fair value | Financial credit bills | |||
Disclosure of financial assets [line items] | |||
Securities | 669,819 | 82,209 | |
Fair value | Others | |||
Disclosure of financial assets [line items] | |||
Securities | 1,139,995 | 889,982 | |
Fair value | Investments held in trust accounts | |||
Disclosure of financial assets [line items] | |||
Securities | 1,194,590 | 0 | |
Fair value | Us government bonds | |||
Disclosure of financial assets [line items] | |||
Securities | R$ 1194590 | R$ 0 |
Securities - Summary of Secur_2
Securities - Summary of Securities at Fair Value Through Other Comprehensive Income (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of financial assets [line items] | |||
Fair value through other comprehensive income | R$ 32332377 | R$ 19039044 | |
Expected credit losses | 92,560 | 55,564 | R$ 9410 |
Gross carrying amount | |||
Disclosure of financial assets [line items] | |||
Fair value through other comprehensive income | 33,183,766 | 19,011,499 | |
Fair value | |||
Disclosure of financial assets [line items] | |||
Fair value through other comprehensive income | 32,332,377 | 19,039,044 | |
National Treasury Bills | |||
Disclosure of financial assets [line items] | |||
Expected credit losses | 7,527 | 8,855 | |
National Treasury Bills | Gross carrying amount | |||
Disclosure of financial assets [line items] | |||
Fair value through other comprehensive income | 32,725,011 | 19,011,499 | |
National Treasury Bills | Fair value | |||
Disclosure of financial assets [line items] | |||
Fair value through other comprehensive income | 31,868,878 | 19,039,044 | |
Bonds | |||
Disclosure of financial assets [line items] | |||
Expected credit losses | 2,497 | 1,087 | |
Bonds | Gross carrying amount | |||
Disclosure of financial assets [line items] | |||
Fair value through other comprehensive income | 458,755 | 0 | |
Bonds | Fair value | |||
Disclosure of financial assets [line items] | |||
Fair value through other comprehensive income | R$ 463499 | R$ 0 |
Securities - Summary of Secur_3
Securities - Summary of Securities Evaluated at Amortized Cost (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of financial assets [line items] | |||
Financial assets at amortized cost | R$ 2238807 | R$ 1828704 | |
Expected credit losses | 92,560 | 55,564 | R$ 9410 |
Bonds | |||
Disclosure of financial assets [line items] | |||
Financial assets at amortized cost | 1,868,776 | 1,828,704 | |
Expected credit losses | 2,497 | 1,087 | |
Rural product note | |||
Disclosure of financial assets [line items] | |||
Financial assets at amortized cost | 328,638 | 0 | |
Debentures | |||
Disclosure of financial assets [line items] | |||
Financial assets at amortized cost | 41,393 | 0 | |
Gross carrying amount | |||
Disclosure of financial assets [line items] | |||
Financial assets at amortized cost | 2,241,304 | 1,829,791 | |
Gross carrying amount | Bonds | |||
Disclosure of financial assets [line items] | |||
Financial assets at amortized cost | 1,871,273 | 1,829,791 | |
Gross carrying amount | Rural product note | |||
Disclosure of financial assets [line items] | |||
Financial assets at amortized cost | 328,638 | 0 | |
Gross carrying amount | Debentures | |||
Disclosure of financial assets [line items] | |||
Financial assets at amortized cost | R$ 41393 | R$ 0 |
Securities - Summary of Secur_4
Securities - Summary of Securities on the Financial Liabilities Classified at Fair Value Through Profit or Loss (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | May 06, 2021 | Dec. 31, 2020 |
Disclosure of financial assets [line items] | |||
Financial liabilities | R$ 91358151 | R$ 70600989 | |
Debentures issued | 169,094 | 335,250 | |
XP Investimentos Non-Convertible Debentures | Debentures | |||
Disclosure of financial assets [line items] | |||
Debentures issued | R$ 500018 | ||
Gross carrying amount | Debentures | |||
Disclosure of financial assets [line items] | |||
Financial liabilities, at fair value | 536,881 | ||
Gross carrying amount | Financial liabilities at fair value through profit or loss | Securities loaned | |||
Disclosure of financial assets [line items] | |||
Financial liabilities | 2,146,398 | 2,237,442 | |
Gross carrying amount | Financial liabilities at fair value through profit or loss | Debentures | |||
Disclosure of financial assets [line items] | |||
Financial liabilities | 536,881 | 0 | |
Fair value | |||
Disclosure of financial assets [line items] | |||
Financial liabilities | 2,665,202 | 2,237,442 | |
Fair value | Debentures | |||
Disclosure of financial assets [line items] | |||
Financial liabilities, at fair value | 518,804 | ||
Fair value | Financial liabilities at fair value through profit or loss | Securities loaned | |||
Disclosure of financial assets [line items] | |||
Financial liabilities, at fair value | 2,146,398 | 2,237,442 | |
Fair value | Financial liabilities at fair value through profit or loss | Debentures | |||
Disclosure of financial assets [line items] | |||
Financial liabilities, at fair value | 518,804 | R$ 0 | |
Fair value/(under) contractual principal outstanding | Debentures | |||
Disclosure of financial assets [line items] | |||
Financial liabilities, at fair value | R$ 18077 |
Securities - Summary of Secur_5
Securities - Summary of Securities Classified by Maturity (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | R$ 127745263 | R$ 90190827 |
Financial liabilities | 91,358,151 | 70,600,989 |
At fair value through PL and at OCI | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current financial liabilities | 2,146,398 | 2,237,442 |
Non-current financial liabilities | 518,804 | 0 |
Evaluated at amortized cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current financial liabilities | 0 | 0 |
Non-current financial liabilities | 0 | 0 |
Non-stated maturity | At fair value through PL and at OCI | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current financial liabilities | 2,146,398 | 2,237,442 |
Up to 3 months | At fair value through PL and at OCI | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current financial liabilities | 0 | 0 |
Up to 3 months | Evaluated at amortized cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current financial liabilities | 0 | 0 |
From 3 to 12 months | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | 9,707,072 | 5,031,715 |
From 3 to 12 months | At fair value through PL and at OCI | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current financial liabilities | 0 | 0 |
From 3 to 12 months | Evaluated at amortized cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current financial liabilities | 0 | 0 |
After one year | At fair value through PL and at OCI | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-current financial liabilities | 518,804 | 0 |
After one year | Evaluated at amortized cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-current financial liabilities | 0 | 0 |
At fair value through PL and at OCI | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current financial assets | 47,431,624 | 34,572,107 |
Non-current financial assets | 43,088,235 | 34,065,805 |
At fair value through PL and at OCI | Non-stated maturity | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current financial assets | 31,425,792 | 15,246,105 |
At fair value through PL and at OCI | Up to 3 months | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current financial assets | 4,556,261 | 794,025 |
At fair value through PL and at OCI | From 3 to 12 months | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current financial assets | 11,449,571 | 18,531,977 |
At fair value through PL and at OCI | After one year | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-current financial assets | 43,088,235 | 34,065,805 |
Evaluated at amortized cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current financial assets | 1,891,889 | 1,829,791 |
Non-current financial assets | 349,415 | 0 |
Evaluated at amortized cost | Up to 3 months | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current financial assets | 1,698,760 | 1,623,487 |
Evaluated at amortized cost | From 3 to 12 months | ||
Disclosure of detailed information about financial instruments [line items] | ||
Current financial assets | 193,129 | 206,304 |
Evaluated at amortized cost | After one year | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-current financial assets | 349,415 | 0 |
Fair value | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 92,761,163 | 70,467,703 |
Financial liabilities | R$ 2665202 | R$ 2237442 |
Derivative financial instrume_3
Derivative financial instruments - Summary of positions with derivative financial instruments (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | R$ 10943714 | R$ 7559433 |
Assets, notional amount | 547,269,601 | 733,048,921 |
Liabilities, fair value | 11,908,183 | 7,819,364 |
Liabilities, notional amount | 451,909,618 | 668,901,580 |
Options | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | 6,570,325 | 6,298,358 |
Assets, notional amount | 371,849,357 | 681,464,674 |
Liabilities, fair value | 8,112,055 | 6,735,478 |
Liabilities, notional amount | 311,295,196 | 614,741,256 |
Swaps | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | 2,577,311 | 777,816 |
Assets, notional amount | 75,380,631 | 5,578,227 |
Liabilities, fair value | 2,561,327 | 870,393 |
Liabilities, notional amount | 82,520,691 | 6,143,671 |
Forward contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | 1,601,167 | 456,724 |
Assets, notional amount | 88,107,328 | 2,905,411 |
Liabilities, fair value | 1,057,426 | 200,272 |
Liabilities, notional amount | 44,968,097 | 3,035,011 |
Futures contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | 194,911 | 26,535 |
Assets, notional amount | 11,932,285 | 43,100,609 |
Liabilities, fair value | 157,710 | 13,221 |
Liabilities, notional amount | 13,041,450 | R$ 44981642 |
Others | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | 19,665 | |
Liabilities, notional amount | R$ 84184 |
Derivative financial instrume_4
Derivative financial instruments - Summary of derivative financial instruments portfolio (assets and liabilities) by type of instrument (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | R$ 10943714 | R$ 7559433 |
Percentage of derivative financial assets | 100.00% | 100.00% |
Liabilities, fair value | R$ 11908183 | R$ 7819364 |
Percentage of derivative financial liabilities | 100.00% | 100.00% |
Options | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | R$ 8112055 | R$ 6735478 |
Percentage of derivative financial liabilities | 69.00% | 87.00% |
Forward contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | R$ 1057426 | R$ 200272 |
Percentage of derivative financial liabilities | 18.00% | 2.00% |
Future contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | R$ 157710 | R$ 13221 |
Percentage of derivative financial liabilities | 10.00% | 1.00% |
Swap contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | R$ 2561327 | R$ 870393 |
Percentage of derivative financial liabilities | 3.00% | 10.00% |
Others | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | R$ 19665 | |
Percentage of derivative financial liabilities | 0.00% | |
Swap contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | R$ 2577311 | R$ 777816 |
Percentage of derivative financial assets | 14.00% | 10.00% |
Liabilities, fair value | R$ 2561327 | R$ 870393 |
Forward contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | R$ 1601167 | R$ 456724 |
Percentage of derivative financial assets | 16.00% | 6.00% |
Liabilities, fair value | R$ 1057426 | R$ 200272 |
Future contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | R$ 194911 | R$ 26535 |
Percentage of derivative financial assets | 2.00% | 1.00% |
Liabilities, fair value | R$ 157710 | R$ 13221 |
Options | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | R$ 6570325 | R$ 6298358 |
Percentage of derivative financial assets | 68.00% | 83.00% |
Liabilities, fair value | R$ 8112055 | R$ 6735478 |
Up to 3 months | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | 1,974,487 | 2,619,700 |
Liabilities, fair value | 2,137,913 | 2,386,360 |
Up to 3 months | Options | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | 1,941,553 | 2,152,890 |
Up to 3 months | Forward contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | 62,935 | 133,679 |
Up to 3 months | Future contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | 6 | 542 |
Up to 3 months | Swap contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | 113,754 | 99,249 |
Up to 3 months | Others | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | 19,665 | |
Up to 3 months | Swap contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | 73,016 | 35,241 |
Up to 3 months | Forward contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | 404,764 | 230,862 |
Up to 3 months | Future contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | 21,891 | 26,535 |
Up to 3 months | Options | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | 1,474,816 | 2,327,062 |
From 4 to 12 months | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | 2,760,558 | 2,759,530 |
Liabilities, fair value | 2,250,942 | 2,643,065 |
From 4 to 12 months | Options | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | 1,937,725 | 2,378,689 |
From 4 to 12 months | Forward contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | 68,398 | 49,102 |
From 4 to 12 months | Future contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | 4,814 | 1,742 |
From 4 to 12 months | Swap contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | 240,005 | 213,532 |
From 4 to 12 months | Others | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | 0 | |
From 4 to 12 months | Swap contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | 259,300 | 206,921 |
From 4 to 12 months | Forward contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | 216,895 | 201,324 |
From 4 to 12 months | Future contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | 3,275 | 0 |
From 4 to 12 months | Options | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | 2,281,088 | 2,351,285 |
Above 12 months | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | 6,208,669 | 2,180,203 |
Liabilities, fair value | 7,519,328 | 2,789,939 |
Above 12 months | Options | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | 4,232,777 | 2,203,899 |
Above 12 months | Forward contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | 926,093 | 17,491 |
Above 12 months | Future contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | 152,890 | 10,937 |
Above 12 months | Swap contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | 2,207,568 | 557,612 |
Above 12 months | Others | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | 0 | |
Above 12 months | Swap contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | 2,244,995 | 535,654 |
Above 12 months | Forward contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | 979,508 | 24,538 |
Above 12 months | Future contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | 169,745 | 0 |
Above 12 months | Options | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, fair value | R$ 2814421 | R$ 1620011 |
Derivative financial instrume_5
Derivative financial instruments - Summary of derivative financial instruments by index (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | R$ 547269601 | R$ 733048921 |
Assets, fair value | 10,943,714 | 7,559,433 |
Liabilities, notional amount | 451,909,618 | 668,901,580 |
Liabilities, fair value | (11,908,183) | (7,819,364) |
Net, fair value | (964,469) | (259,931) |
Swap Contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | (2,561,327) | (870,393) |
Swap Contracts | Interest | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, notional amount | 75,207,636 | 6,143,671 |
Liabilities, fair value | (2,461,848) | (870,393) |
Swap Contracts | Foreign exchange | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, notional amount | 5,888,850 | 0 |
Liabilities, fair value | (28,509) | 0 |
Swap Contracts | Share | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, notional amount | 1,424,205 | 0 |
Liabilities, fair value | (70,970) | 0 |
Forward Contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, fair value | (1,057,426) | (200,272) |
Forward Contracts | Interest | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, notional amount | 906,302 | 32,944 |
Liabilities, fair value | (906,302) | (32,944) |
Forward Contracts | Foreign exchange | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, notional amount | 42,367,576 | 3,002,067 |
Liabilities, fair value | (139,642) | (167,328) |
Forward Contracts | Share | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, notional amount | 11,482 | 0 |
Liabilities, fair value | (11,482) | 0 |
Forward Contracts | Commodities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, notional amount | 1,682,737 | 0 |
Liabilities, fair value | 0 | 0 |
Others | Interest | ||
Disclosure of detailed information about financial instruments [line items] | ||
Liabilities, notional amount | 84,184 | 0 |
Liabilities, fair value | (19,665) | 0 |
Swap Contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 75,380,631 | 5,578,227 |
Assets, fair value | 2,577,311 | 777,816 |
Liabilities, notional amount | 82,520,691 | 6,143,671 |
Liabilities, fair value | (2,561,327) | (870,393) |
Swap Contracts | Interest | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 66,123,491 | 5,014,934 |
Assets, fair value | 1,799,953 | 776,215 |
Swap Contracts | Foreign exchange | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 1,978,886 | 563,293 |
Assets, fair value | 16,013 | 1,601 |
Swap Contracts | Share | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 7,278,254 | 0 |
Assets, fair value | 761,345 | 0 |
Forward Contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 88,107,328 | 2,905,411 |
Assets, fair value | 1,601,167 | 456,724 |
Liabilities, notional amount | 44,968,097 | 3,035,011 |
Liabilities, fair value | (1,057,426) | (200,272) |
Forward Contracts | Interest | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 906,295 | 32,952 |
Assets, fair value | 906,295 | 32,952 |
Forward Contracts | Foreign exchange | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 81,544,253 | 2,546,940 |
Assets, fair value | 282,775 | 98,253 |
Forward Contracts | Share | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 4,603,031 | 325,519 |
Assets, fair value | 412,097 | 325,519 |
Forward Contracts | Commodities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 1,053,749 | 0 |
Assets, fair value | 0 | 0 |
Future Contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 11,932,285 | 43,100,609 |
Assets, fair value | 194,911 | 26,535 |
Liabilities, notional amount | 13,041,450 | 44,981,642 |
Liabilities, fair value | (157,710) | (13,221) |
Future Contracts | Interest | Purchase commitments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 11,629,715 | 43,100,609 |
Assets, fair value | 0 | 26,535 |
Future Contracts | Interest | Commitments to sell | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 12,188,922 | 44,981,642 |
Assets, fair value | (157,710) | (13,221) |
Future Contracts | Foreign exchange | Purchase commitments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 155,487 | 0 |
Assets, fair value | 194,911 | 0 |
Future Contracts | Foreign exchange | Commitments to sell | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 705,334 | 0 |
Assets, fair value | 0 | 0 |
Future Contracts | Share | Purchase commitments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 147,083 | 0 |
Assets, fair value | 0 | 0 |
Future Contracts | Share | Commitments to sell | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 147,083 | 0 |
Assets, fair value | 0 | 0 |
Future Contracts | Commodities | Commitments to sell | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 111 | 0 |
Assets, fair value | 0 | 0 |
Options | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 371,849,357 | 681,464,674 |
Assets, fair value | 6,570,325 | 6,298,358 |
Liabilities, notional amount | 311,295,196 | 614,741,256 |
Liabilities, fair value | (8,112,055) | (6,735,478) |
Options | Interest | Purchase commitments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 272,987,997 | 675,637,469 |
Assets, fair value | 1,160,526 | 5,223,851 |
Options | Interest | Commitments to sell | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 272,383,162 | 605,512,143 |
Assets, fair value | (2,129,996) | (5,789,650) |
Options | Foreign exchange | Purchase commitments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 25,973,934 | 0 |
Assets, fair value | 2,248,675 | 0 |
Options | Foreign exchange | Commitments to sell | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 24,541,428 | 0 |
Assets, fair value | (3,080,095) | 0 |
Options | Share | Purchase commitments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 72,883,420 | 5,827,205 |
Assets, fair value | 3,146,174 | 1,074,507 |
Options | Share | Commitments to sell | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 13,690,202 | 9,229,113 |
Assets, fair value | (2,788,089) | (945,828) |
Options | Commodities | Purchase commitments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 4,006 | 0 |
Assets, fair value | 14,950 | 0 |
Options | Commodities | Commitments to sell | ||
Disclosure of detailed information about financial instruments [line items] | ||
Assets, notional amount | 680,404 | 0 |
Assets, fair value | R$ 113875 | R$ 0 |
Hedge accounting - Summary of d
Hedge accounting - Summary of detailed information about hedging instruments (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about hedged items [line items] | |||
Notional value | R$ 9738021 | R$ 2537950 | R$ 248896 |
Variation in the amounts used to calculate hedge ineffectiveness | (18,758) | (60,563) | (7,133) |
Hedge of net investment in foreign operations | |||
Disclosure of detailed information about hedged items [line items] | |||
Assets | 310,069 | 245,986 | 186,412 |
Liabilities | 0 | 0 | 0 |
Variation in value recognized in Other comprehensive income | 19,474 | 52,299 | 5,946 |
Notional value | 440,022 | 349,218 | 248,896 |
Variation in the amounts used to calculate hedge ineffectiveness | (18,758) | (60,563) | (7,133) |
Fair value hedge | |||
Disclosure of detailed information about hedged items [line items] | |||
Assets | 0 | 0 | |
Liabilities | 9,264,330 | 2,178,459 | |
Variation in value recognized in income | 506,190 | (47,923) | |
Notional value | 9,297,999 | 2,188,732 | 0 |
Variation in the amounts used to calculate hedge ineffectiveness | (495,191) | 46,795 | |
Foreign exchange risk | Hedge of net investment in foreign operations | |||
Disclosure of detailed information about hedged items [line items] | |||
Assets | 310,069 | 245,986 | 186,412 |
Liabilities | 0 | 0 | 0 |
Variation in value recognized in Other comprehensive income | 19,474 | 52,299 | 5,946 |
Notional value | 440,022 | 349,218 | 248,896 |
Variation in the amounts used to calculate hedge ineffectiveness | (18,758) | 349,218 | R$ 7133 |
Foreign exchange risk | Fair value hedge | Futures contracts | |||
Disclosure of detailed information about hedged items [line items] | |||
Assets | 310,069 | ||
Liabilities | 433,987 | ||
Notional value | 876,826 | ||
Variation in the amounts used to calculate hedge ineffectiveness | (22,300) | ||
Hedge ineffectiveness recognized in income | 720 | ||
Interest rate and foreign exchange risk | Fair value hedge | Hedge of securities | |||
Disclosure of detailed information about hedged items [line items] | |||
Assets | 0 | 0 | |
Liabilities | 9,264,330 | 2,178,459 | |
Variation in value recognized in income | 506,190 | (47,923) | |
Notional value | 9,297,999 | 2,188,732 | |
Variation in the amounts used to calculate hedge ineffectiveness | (495,191) | 46,795 | |
Interest rate risk | Fair value hedge | Futures contracts | |||
Disclosure of detailed information about hedged items [line items] | |||
Assets | 0 | 0 | |
Liabilities | 8,830,343 | 2,178,459 | |
Notional value | 8,861,195 | 2,188,732 | |
Variation in the amounts used to calculate hedge ineffectiveness | (491,649) | 46,795 | |
Hedge ineffectiveness recognized in income | R$ 10995 | R$ 1128 |
Hedge accounting - Hedged item
Hedge accounting - Hedged item information (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about hedged items [line items] | |||
Notional amount | R$ 9738021 | R$ 2537950 | R$ 248896 |
Fair value adjustments | (513,949) | (108,486) | 5,946 |
Book value | 525,664 | 99,094 | (7,133) |
Hedge of Fair Value | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional amount | 9,297,999 | 2,188,732 | 0 |
Fair value adjustments | (495,191) | (47,923) | 0 |
Book value | 506,190 | 46,795 | 0 |
Hedge of net investment in foreign operations | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional amount | 440,022 | 349,218 | 248,896 |
Fair value adjustments | (18,758) | (60,563) | 5,946 |
Book value | R$ 19474 | R$ 52299 | R$ 7133 |
Hedge accounting - Hedged ite_2
Hedge accounting - Hedged item maturity (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about hedged items [line items] | |||
Notional value | R$ 9738021 | R$ 2537950 | R$ 248896 |
0-1 year | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional value | 520,853 | 1,977 | 7,658 |
1-2 years | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional value | 276,219 | 13,375 | 0 |
2-3 years | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional value | 478,745 | 240,646 | 0 |
3-4 years | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional value | 1,028,004 | 247,514 | 91,698 |
4-5 years | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional value | 4,510,125 | 672,978 | 149,540 |
5-10 years | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional value | 2,924,075 | 1,361,460 | 0 |
Hedge of Fair Value | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional value | 9,297,999 | 2,188,732 | 0 |
Hedge of Fair Value | 0-1 year | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional value | 136,636 | 1,977 | |
Hedge of Fair Value | 1-2 years | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional value | 276,219 | 13,375 | |
Hedge of Fair Value | 2-3 years | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional value | 478,745 | 94,099 | |
Hedge of Fair Value | 3-4 years | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional value | 972,199 | 44,843 | |
Hedge of Fair Value | 4-5 years | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional value | 4,510,125 | 672,978 | |
Hedge of Fair Value | 5-10 years | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional value | 2,924,075 | 1,361,460 | |
Hedge of net investment in foreign operations | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional value | 440,022 | 349,218 | 248,896 |
Hedge of net investment in foreign operations | 0-1 year | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional value | 384,217 | 0 | 7,658 |
Hedge of net investment in foreign operations | 1-2 years | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional value | 0 | 0 | 0 |
Hedge of net investment in foreign operations | 2-3 years | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional value | 0 | 146,547 | 0 |
Hedge of net investment in foreign operations | 3-4 years | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional value | 55,805 | 202,671 | 91,698 |
Hedge of net investment in foreign operations | 4-5 years | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional value | 0 | 0 | 149,540 |
Hedge of net investment in foreign operations | 5-10 years | |||
Disclosure of detailed information about hedged items [line items] | |||
Notional value | R$ 0 | R$ 0 | R$ 0 |
Loan operations - Loan operatio
Loan operations - Loan operations by type (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of financial assets [line items] | ||
Financial assets | R$ 127745263 | R$ 90190827 |
Expected Credit Loss | (175,188) | (82,628) |
Total loans operations, net of Expected Loss | 12,819,627 | 3,918,328 |
Loans operations | ||
Disclosure of financial assets [line items] | ||
Financial assets | 12,844,037 | 3,925,429 |
Expected Credit Loss | (24,410) | (7,101) |
Pledged asset loan | Retail | ||
Disclosure of financial assets [line items] | ||
Financial assets | 7,296,172 | 2,698,018 |
Pledged asset loan | Corporate | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,887,649 | 946,008 |
Pledged asset loan | Credit card | ||
Disclosure of financial assets [line items] | ||
Financial assets | 2,605,598 | 51,270 |
Non-pledged loan | Retail | ||
Disclosure of financial assets [line items] | ||
Financial assets | 117,032 | 116,978 |
Non-pledged loan | Corporate | ||
Disclosure of financial assets [line items] | ||
Financial assets | R$ 937586 | R$ 113155 |
Loan operations - Loan operat_2
Loan operations - Loan operations by maturity (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of financial assets [line items] | ||
Financial assets | R$ 127745263 | R$ 90190827 |
Loans operations | ||
Disclosure of financial assets [line items] | ||
Financial assets | 12,844,037 | 3,925,429 |
Loans operations | Due in 3 months or less | ||
Disclosure of financial assets [line items] | ||
Financial assets | 2,539,387 | 160,918 |
Loans operations | Due after 3 months through 12 months | ||
Disclosure of financial assets [line items] | ||
Financial assets | 2,081,563 | 580,183 |
Loans operations | Due after 12 months | ||
Disclosure of financial assets [line items] | ||
Financial assets | R$ 8223087 | R$ 3184328 |
Loan operations - Loan operat_3
Loan operations - Loan operations by concentration (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of financial assets [line items] | ||
Financial assets | R$ 127745263 | R$ 90190827 |
Loans operations | ||
Disclosure of financial assets [line items] | ||
Financial assets | 12,844,037 | 3,925,429 |
Loans operations | Largest debtor | Credit risk | ||
Disclosure of financial assets [line items] | ||
Financial assets | 227,229 | 150,040 |
Loans operations | 10 largest debtors | Credit risk | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,162,802 | 726,904 |
Loans operations | 20 largest debtors | Credit risk | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,721,591 | 1,043,583 |
Loans operations | 50 largest debtors | Credit risk | ||
Disclosure of financial assets [line items] | ||
Financial assets | 2,793,814 | 1,521,310 |
Loans operations | 100 largest debtors | Credit risk | ||
Disclosure of financial assets [line items] | ||
Financial assets | R$ 3899644 | R$ 1885614 |
Loan operations - Additional in
Loan operations - Additional information (Details) R$ in Thousands | Dec. 31, 2020BRL (R$) |
Disclosure of financial assets [abstract] | |
Carrying amount of financial assets with insignificant risk of loss | R$ 297443 |
Accounts receivable (Details)
Accounts receivable (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Trade and other receivables [abstract] | ||
Customers | R$ 419532 | R$ 455253 |
Dividends and interest receivable on equity capital - Funds | 3,593 | 6,393 |
Other | 52,492 | 51,131 |
Expected credit losses on accounts receivable (Note 14) | (6,531) | (6,418) |
Total | R$ 469086 | R$ 506359 |
Recoverable taxes (Details)
Recoverable taxes (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Subclassifications of assets, liabilities and equities [Line Items] | ||
Recoverable taxes | R$ 153316 | R$ 127623 |
Current | 153,316 | 127,623 |
Non-current | 0 | 0 |
Prepayments of income taxes (IRPJ and CSLL) | ||
Subclassifications of assets, liabilities and equities [Line Items] | ||
Recoverable taxes | 146,636 | 122,070 |
Contributions over revenue (PIS and COFINS) | ||
Subclassifications of assets, liabilities and equities [Line Items] | ||
Recoverable taxes | 5,654 | 3,993 |
Other recoverable taxes | ||
Subclassifications of assets, liabilities and equities [Line Items] | ||
Recoverable taxes | 1,026 | 1,560 |
ISS | ||
Subclassifications of assets, liabilities and equities [Line Items] | ||
Recoverable taxes | 1,002 | 979 |
VAT | ||
Subclassifications of assets, liabilities and equities [Line Items] | ||
Recoverable taxes | 0 | 581 |
INSS | ||
Subclassifications of assets, liabilities and equities [Line Items] | ||
Recoverable taxes | R$ 24 | R$ 0 |
Prepaid expenses (Details)
Prepaid expenses (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Summary of Prepaid Expenses [Line Items] | ||
Prepaid expenses | R$ 3982750 | R$ 1393537 |
Current | 251,973 | 283,183 |
Non-current | 3,730,777 | 1,110,354 |
Commissions and premiums paid in advance | ||
Summary of Prepaid Expenses [Line Items] | ||
Prepaid expenses | 3,737,354 | 1,314,771 |
Marketing expenses | ||
Summary of Prepaid Expenses [Line Items] | ||
Prepaid expenses | 28,147 | 28,056 |
Services paid in advance | ||
Summary of Prepaid Expenses [Line Items] | ||
Prepaid expenses | 41,990 | 6,245 |
Other expenses paid in advance | ||
Summary of Prepaid Expenses [Line Items] | ||
Prepaid expenses | R$ 175259 | R$ 44465 |
Expected Credit Losses on Fin_3
Expected Credit Losses on Financial Assets and Reconciliation of carrying amount (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | R$ 90190827 | |
Financial assets at end of period | 127,745,263 | R$ 90190827 |
Stage 1 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | 31,105,277 | 14,373,179 |
Acquisition / (Settlements) | 26,320,585 | 16,732,098 |
Stage 1 to Stage 2 | (727,100) | 0 |
Stage 1 to Stage 3 | (3,499) | 0 |
Stage 2 to Stage 1 | 244,580 | 0 |
Stage 3 To Stage 1 | 0 | 0 |
Financial assets at end of period | 56,939,843 | 31,105,277 |
Stage 2 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | 361,431 | 0 |
Acquisition / (Settlements) | (97,549) | 361,431 |
Stage 1 to Stage 2 | 727,100 | 0 |
Stage 2 to Stage 1 | (244,580) | 0 |
Stage 2 to Stage 3 | 0 | 0 |
Stage 3 to Stage 2 | 0 | 0 |
Financial assets at end of period | 746,402 | 361,431 |
Stage 3 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | 0 | |
Acquisition / (Settlements) | 0 | |
Stage 1 to Stage 3 | 3,499 | |
Stage 2 to Stage 3 | 0 | |
Stage 3 To Stage 1 | 0 | |
Stage 3 to Stage 2 | 0 | |
Financial assets at end of period | 3,499 | 0 |
Consolidated Stages | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | 31,466,708 | 14,373,179 |
Derecognition | 0 | 0 |
Acquisition / (Settlements) | 26,223,036 | 17,057,719 |
Financial assets at end of period | 57,689,744 | 31,466,708 |
Financial assets at fair value through other comprehensive income | Securities | Stage 1 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | 19,047,899 | 2,616,118 |
Acquisition / (Settlements) | 13,292,005 | 16,431,781 |
Stage 1 to Stage 2 | 0 | 0 |
Stage 1 to Stage 3 | 0 | 0 |
Stage 2 to Stage 1 | 0 | 0 |
Stage 3 To Stage 1 | 0 | 0 |
Financial assets at end of period | 32,339,904 | 19,047,899 |
Financial assets at fair value through other comprehensive income | Securities | Consolidated Stages | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | 19,047,899 | 2,616,118 |
Derecognition | 0 | 0 |
Acquisition / (Settlements) | 13,292,005 | 16,431,781 |
Financial assets at end of period | 32,339,904 | 19,047,899 |
Evaluated at amortized cost | Securities | Stage 1 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | 1,829,791 | 2,266,971 |
Acquisition / (Settlements) | 411,513 | (437,180) |
Stage 1 to Stage 2 | 0 | 0 |
Stage 1 to Stage 3 | 0 | 0 |
Stage 2 to Stage 1 | 0 | 0 |
Stage 3 To Stage 1 | 0 | 0 |
Financial assets at end of period | 2,241,304 | 1,829,791 |
Evaluated at amortized cost | Securities | Consolidated Stages | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | 1,829,791 | 2,266,971 |
Derecognition | 0 | 0 |
Acquisition / (Settlements) | 411,513 | (437,180) |
Financial assets at end of period | 2,241,304 | 1,829,791 |
Evaluated at amortized cost | Securities purchased under agreements to resell | Stage 1 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | 6,627,779 | 9,490,090 |
Acquisition / (Settlements) | 2,269,321 | (2,862,311) |
Stage 1 to Stage 2 | 0 | 0 |
Stage 1 to Stage 3 | 0 | 0 |
Stage 2 to Stage 1 | 0 | 0 |
Stage 3 To Stage 1 | 0 | 0 |
Financial assets at end of period | 8,897,100 | 6,627,779 |
Evaluated at amortized cost | Securities purchased under agreements to resell | Consolidated Stages | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | 6,627,779 | 9,490,090 |
Derecognition | 0 | 0 |
Acquisition / (Settlements) | 2,269,321 | (2,862,311) |
Financial assets at end of period | 8,897,100 | 6,627,779 |
Evaluated at amortized cost | Loans and credit card operations | Stage 1 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | 3,599,808 | 0 |
Acquisition / (Settlements) | 9,013,279 | 3,599,808 |
Stage 1 to Stage 2 | (667,692) | 0 |
Stage 1 to Stage 3 | (3,494) | 0 |
Stage 2 to Stage 1 | 211,648 | 0 |
Stage 3 To Stage 1 | 0 | 0 |
Financial assets at end of period | 12,153,549 | 3,599,808 |
Evaluated at amortized cost | Loans and credit card operations | Stage 2 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | 325,621 | 0 |
Acquisition / (Settlements) | (94,671) | 325,621 |
Stage 1 to Stage 2 | 667,692 | 0 |
Stage 2 to Stage 1 | (211,648) | 0 |
Stage 2 to Stage 3 | 0 | 0 |
Stage 3 to Stage 2 | 0 | 0 |
Financial assets at end of period | 686,994 | 325,621 |
Evaluated at amortized cost | Loans and credit card operations | Stage 3 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | 0 | |
Acquisition / (Settlements) | 0 | |
Stage 1 to Stage 3 | 3,494 | |
Stage 2 to Stage 3 | 0 | |
Stage 3 To Stage 1 | 0 | |
Stage 3 to Stage 2 | 0 | |
Financial assets at end of period | 3,494 | 0 |
Evaluated at amortized cost | Loans and credit card operations | Consolidated Stages | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | 3,925,429 | 0 |
Derecognition | 0 | 0 |
Acquisition / (Settlements) | 8,918,608 | 3,925,429 |
Financial assets at end of period | 12,844,037 | 3,925,429 |
On-balance exposures | Stage 1 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | 31,105,277 | 14,373,179 |
Acquisition / (Settlements) | 24,986,118 | 16,732,098 |
Stage 1 to Stage 2 | (667,692) | 0 |
Stage 1 to Stage 3 | (3,494) | 0 |
Stage 2 to Stage 1 | 211,648 | 0 |
Stage 3 To Stage 1 | 0 | 0 |
Financial assets at end of period | 55,631,857 | 31,105,277 |
On-balance exposures | Stage 2 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | 325,621 | 0 |
Acquisition / (Settlements) | (94,671) | 325,621 |
Stage 1 to Stage 2 | 667,692 | 0 |
Stage 2 to Stage 1 | (211,648) | 0 |
Stage 2 to Stage 3 | 0 | 0 |
Stage 3 to Stage 2 | 0 | 0 |
Financial assets at end of period | 686,994 | 325,621 |
On-balance exposures | Stage 3 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | 0 | |
Acquisition / (Settlements) | 0 | |
Stage 1 to Stage 3 | 3,494 | |
Stage 2 to Stage 3 | 0 | |
Stage 3 To Stage 1 | 0 | |
Stage 3 to Stage 2 | 0 | |
Financial assets at end of period | 3,494 | 0 |
On-balance exposures | Consolidated Stages | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | 31,430,898 | 14,373,179 |
Derecognition | 0 | 0 |
Acquisition / (Settlements) | 24,891,447 | 17,057,719 |
Financial assets at end of period | 56,322,345 | 31,430,898 |
Off-balance exposures | Stage 1 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | 0 | |
Acquisition / (Settlements) | 1,334,467 | |
Stage 1 to Stage 2 | (59,408) | |
Stage 1 to Stage 3 | (5) | |
Stage 2 to Stage 1 | 32,932 | |
Stage 3 To Stage 1 | 0 | |
Financial assets at end of period | 1,307,986 | 0 |
Off-balance exposures | Stage 2 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | 35,810 | 0 |
Acquisition / (Settlements) | (2,878) | 35,810 |
Stage 1 to Stage 2 | 59,408 | |
Stage 2 to Stage 1 | (32,932) | |
Stage 2 to Stage 3 | 0 | |
Stage 3 to Stage 2 | 0 | |
Financial assets at end of period | 59,408 | 35,810 |
Off-balance exposures | Stage 3 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | 0 | |
Acquisition / (Settlements) | 0 | |
Stage 1 to Stage 3 | 5 | |
Stage 2 to Stage 3 | 0 | |
Stage 3 To Stage 1 | 0 | |
Stage 3 to Stage 2 | 0 | |
Financial assets at end of period | 5 | 0 |
Off-balance exposures | Consolidated Stages | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets at beginning of period | 35,810 | 0 |
Derecognition | 0 | 0 |
Acquisition / (Settlements) | 1,331,589 | 0 |
Financial assets at end of period | R$ 1367399 | R$ 35810 |
Expected Credit Losses on Fin_4
Expected Credit Losses on Financial Assets and Reconciliation of carrying amount - ECLs measured using simplified approach (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | R$ 127745263 | R$ 90190827 |
Evaluated at amortized cost | Measured Using Simplified Approach | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 2,474,437 | 1,693,294 |
Evaluated at amortized cost | Securities trading and intermediation | Measured Using Simplified Approach | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 1,487,639 | 1,107,051 |
Evaluated at amortized cost | Accounts Receivable | Measured Using Simplified Approach | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 475,617 | 512,777 |
Evaluated at amortized cost | Others | Measured Using Simplified Approach | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | R$ 511181 | R$ 73466 |
Expected Credit Losses on Fin_5
Expected Credit Losses on Financial Assets and Reconciliation of carrying amount - Expected credit losses (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | R$ 82628 | |
Expected credit loss, ending balance | 175,188 | R$ 82628 |
Stage 1 | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 15,960 | 2 |
Increase / (Reversal) | 20,502 | 15,958 |
Stage 1 to Stage 2 | (7,214) | 0 |
Stage 1 to Stage 3 | (2,197) | 0 |
Stage 2 to Stage 1 | 225 | 0 |
Stage 3 to Stage 1 | 0 | 0 |
Expected credit loss, ending balance | 27,276 | 15,960 |
Stage 2 | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 1,453 | 0 |
Increase / (Reversal) | (912) | 1,453 |
Stage 1 to Stage 2 | 7,214 | 0 |
Stage 2 to Stage 1 | (225) | 0 |
Stage 2 to Stage 3 | 0 | 0 |
Stage 3 to Stage 2 | 0 | 0 |
Expected credit loss, ending balance | 7,530 | 1,453 |
Stage 3 | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 0 | |
Increase / (Reversal) | 0 | |
Stage 1 to Stage 3 | 2,197 | |
Stage 2 to Stage 3 | 0 | |
Stage 3 to Stage 1 | 0 | |
Stage 3 to Stage 2 | 0 | |
Expected credit loss, ending balance | 2,197 | 0 |
Consolidated Stages | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 17,413 | 2 |
Derecognition | 0 | 0 |
Increase / (Reversal) | 19,590 | 17,411 |
Expected credit loss, ending balance | 37,003 | 17,413 |
Financial assets at fair value through other comprehensive income | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 8,855 | |
Expected credit loss, ending balance | 7,527 | 8,855 |
Financial assets at fair value through other comprehensive income | Securities | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 8,855 | |
Expected credit loss, ending balance | 7,527 | 8,855 |
Financial assets at fair value through other comprehensive income | Securities | Stage 1 | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 8,855 | 0 |
Increase / (Reversal) | (1,328) | 8,855 |
Stage 1 to Stage 2 | 0 | 0 |
Stage 1 to Stage 3 | 0 | |
Stage 2 to Stage 1 | 0 | 0 |
Stage 3 to Stage 1 | 0 | 0 |
Expected credit loss, ending balance | 7,527 | 8,855 |
Financial assets at fair value through other comprehensive income | Securities | Consolidated Stages | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 8,855 | 0 |
Derecognition | 0 | 0 |
Increase / (Reversal) | (1,328) | 8,855 |
Expected credit loss, ending balance | 7,527 | 8,855 |
Evaluated at amortized cost | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 73,773 | |
Expected credit loss, ending balance | 166,647 | 73,773 |
Evaluated at amortized cost | Securities | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 1,087 | |
Expected credit loss, ending balance | 2,497 | 1,087 |
Evaluated at amortized cost | Securities | Stage 1 | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 1,087 | 0 |
Increase / (Reversal) | 1,410 | 1,087 |
Stage 1 to Stage 2 | 0 | 0 |
Stage 1 to Stage 3 | 0 | 0 |
Stage 2 to Stage 1 | 0 | 0 |
Stage 3 to Stage 1 | 0 | 0 |
Expected credit loss, ending balance | 2,497 | 1,087 |
Evaluated at amortized cost | Securities | Consolidated Stages | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 1,087 | 0 |
Derecognition | 0 | 0 |
Increase / (Reversal) | 1,410 | 1,087 |
Expected credit loss, ending balance | 2,497 | 1,087 |
Evaluated at amortized cost | Securities purchased under agreements to resell | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 370 | |
Expected credit loss, ending balance | 2,569 | 370 |
Evaluated at amortized cost | Securities purchased under agreements to resell | Stage 1 | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 370 | 0 |
Increase / (Reversal) | 2,199 | 370 |
Stage 1 to Stage 2 | 0 | 0 |
Stage 1 to Stage 3 | 0 | 0 |
Stage 2 to Stage 1 | 0 | 0 |
Stage 3 to Stage 1 | 0 | 0 |
Expected credit loss, ending balance | 2,569 | 370 |
Evaluated at amortized cost | Securities purchased under agreements to resell | Consolidated Stages | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 370 | 0 |
Derecognition | 0 | 0 |
Increase / (Reversal) | 2,199 | 370 |
Expected credit loss, ending balance | 2,569 | 370 |
Evaluated at amortized cost | Loans and credit card operations | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 7,101 | |
Expected credit loss, ending balance | 23,396 | 7,101 |
Evaluated at amortized cost | Loans and credit card operations | Stage 1 | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 5,648 | 2 |
Increase / (Reversal) | 17,207 | 5,646 |
Stage 1 to Stage 2 | (6,926) | 0 |
Stage 1 to Stage 3 | (2,197) | 0 |
Stage 2 to Stage 1 | 225 | 0 |
Stage 3 to Stage 1 | 0 | 0 |
Expected credit loss, ending balance | 13,957 | 5,648 |
Evaluated at amortized cost | Loans and credit card operations | Stage 2 | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 1,453 | 0 |
Increase / (Reversal) | (912) | 1,453 |
Stage 1 to Stage 2 | 6,926 | 0 |
Stage 2 to Stage 1 | (225) | 0 |
Stage 2 to Stage 3 | 0 | 0 |
Stage 3 to Stage 2 | 0 | 0 |
Expected credit loss, ending balance | 7,242 | 1,453 |
Evaluated at amortized cost | Loans and credit card operations | Stage 3 | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 0 | |
Increase / (Reversal) | 0 | |
Stage 1 to Stage 3 | 2,197 | |
Stage 2 to Stage 3 | 0 | |
Stage 3 to Stage 1 | 0 | |
Stage 3 to Stage 2 | 0 | |
Expected credit loss, ending balance | 2,197 | 0 |
Evaluated at amortized cost | Loans and credit card operations | Consolidated Stages | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 7,101 | 2 |
Derecognition | 0 | 0 |
Increase / (Reversal) | 16,295 | 7,099 |
Expected credit loss, ending balance | 23,396 | 7,101 |
On-balance exposures | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 82,628 | |
Expected credit loss, ending balance | 174,174 | 82,628 |
On-balance exposures | Stage 1 | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 15,960 | 2 |
Increase / (Reversal) | 19,488 | 15,958 |
Stage 1 to Stage 2 | (6,926) | 0 |
Stage 1 to Stage 3 | (2,197) | 0 |
Stage 2 to Stage 1 | 225 | 0 |
Stage 3 to Stage 1 | 0 | 0 |
Expected credit loss, ending balance | 26,550 | 15,960 |
On-balance exposures | Stage 2 | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 1,453 | 0 |
Increase / (Reversal) | (912) | 1,453 |
Stage 1 to Stage 2 | 6,926 | 0 |
Stage 2 to Stage 1 | (225) | 0 |
Stage 2 to Stage 3 | 0 | 0 |
Stage 3 to Stage 2 | 0 | 0 |
Expected credit loss, ending balance | 7,242 | 1,453 |
On-balance exposures | Stage 3 | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 0 | |
Increase / (Reversal) | 0 | |
Stage 1 to Stage 3 | 2,197 | |
Stage 2 to Stage 3 | 0 | |
Stage 3 to Stage 1 | 0 | |
Stage 3 to Stage 2 | 0 | |
Expected credit loss, ending balance | 2,197 | 0 |
On-balance exposures | Consolidated Stages | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 17,413 | 2 |
Derecognition | 0 | 0 |
Increase / (Reversal) | 18,576 | 17,411 |
Expected credit loss, ending balance | 35,989 | 17,413 |
Off-balance exposures | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 0 | |
Expected credit loss, ending balance | 1,014 | 0 |
Off-balance exposures | Stage 1 | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 0 | |
Increase / (Reversal) | 1,014 | |
Stage 1 to Stage 2 | (288) | |
Stage 1 to Stage 3 | 0 | |
Stage 2 to Stage 1 | 0 | |
Stage 3 to Stage 1 | 0 | |
Expected credit loss, ending balance | 726 | 0 |
Off-balance exposures | Stage 2 | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 0 | |
Increase / (Reversal) | 0 | |
Stage 1 to Stage 2 | 288 | |
Stage 2 to Stage 1 | 0 | |
Stage 2 to Stage 3 | 0 | |
Stage 3 to Stage 2 | 0 | |
Expected credit loss, ending balance | 288 | 0 |
Off-balance exposures | Consolidated Stages | ||
Changes in allowance account for credit losses of financial assets [abstract] | ||
Expected credit loss, beginning balance | 0 | |
Derecognition | 0 | |
Increase / (Reversal) | 1,014 | |
Expected credit loss, ending balance | R$ 1014 | R$ 0 |
Expected Credit Losses on Fin_6
Expected Credit Losses on Financial Assets and Reconciliation of carrying amount - Expected credit loss using simplified method (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of financial assets that are either past due or impaired [line items] | ||
Expected Credit Loss | R$ 175188 | R$ 82628 |
Evaluated at amortized cost | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Expected Credit Loss | 166,647 | 73,773 |
Evaluated at amortized cost | Measured Using Simplified Approach | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Expected Credit Loss | 138,185 | 65,215 |
Evaluated at amortized cost | Securities trading and intermediation | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Expected Credit Loss | 81,988 | 55,485 |
Evaluated at amortized cost | Securities trading and intermediation | Measured Using Simplified Approach | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Expected Credit Loss | 81,988 | 55,485 |
Evaluated at amortized cost | Accounts Receivable | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Expected Credit Loss | 6,531 | 6,418 |
Evaluated at amortized cost | Accounts Receivable | Measured Using Simplified Approach | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Expected Credit Loss | 6,531 | 6,418 |
Evaluated at amortized cost | Others | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Expected Credit Loss | 49,666 | 3,312 |
Evaluated at amortized cost | Others | Measured Using Simplified Approach | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Expected Credit Loss | R$ 49666 | R$ 3312 |
Expected Credit Losses on Fin_7
Expected Credit Losses on Financial Assets and Reconciliation of carrying amount - Expected credit loss segregated by product (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of financial assets that are either past due or impaired [line items] | ||
Expected Credit Loss | R$ 175188 | R$ 82628 |
Financial assets at fair value through other comprehensive income | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Expected Credit Loss | 7,527 | 8,855 |
Financial assets at fair value through other comprehensive income | Securities | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Expected Credit Loss | 7,527 | 8,855 |
Evaluated at amortized cost | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Expected Credit Loss | 166,647 | 73,773 |
Evaluated at amortized cost | Securities | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Expected Credit Loss | 2,497 | 1,087 |
Evaluated at amortized cost | Securities purchased under agreements to resell | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Expected Credit Loss | 2,569 | 370 |
Evaluated at amortized cost | Loans and credit card operations | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Expected Credit Loss | 23,396 | 7,101 |
Evaluated at amortized cost | Securities trading and intermediation | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Expected Credit Loss | 81,988 | 55,485 |
Evaluated at amortized cost | Accounts Receivable | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Expected Credit Loss | 6,531 | 6,418 |
Evaluated at amortized cost | Others | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Expected Credit Loss | 49,666 | 3,312 |
On-balance exposures | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Expected Credit Loss | 174,174 | 82,628 |
Off-balance exposures | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Expected Credit Loss | R$ 1014 | R$ 0 |
Investments in associates and_3
Investments in associates and joint ventures (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity-accounted method | |||
Balance at beginning of period | R$ 699907 | R$ 0 | |
Equity | 77,428 | ||
Equity in earnings | (7,710) | 862 | R$ 0 |
Other comprehensive income | (39) | ||
Goodwill | 621,656 | ||
Balance at end of period | 2,013,365 | 699,907 | 0 |
Measured at fair value | |||
Balance at beginning of period | 699,907 | 0 | |
Balance at end of period | 2,013,365 | 699,907 | 0 |
Balance at beginning of period | 699,907 | 0 | |
Equity | 1,207,169 | ||
Equity in earnings | 39,581 | ||
Other comprehensive income | (19,579) | ||
Goodwill | 86,287 | ||
Balance at end of period | R$ 2013365 | R$ 699907 | 0 |
Du Agro Holdings S.A. | |||
Disclosure of associates [line items] | |||
Proportion of ownership interest in joint venture | 49.00% | 49.00% | |
Equity-accounted method | |||
Balance at beginning of period | R$ 1983 | R$ 0 | |
Equity | 0 | 2,335 | |
Equity in earnings | (1,848) | (777) | |
Other comprehensive income | 1,062 | 17 | |
Goodwill | 0 | 408 | |
Balance at end of period | 1,197 | 1,983 | 0 |
Measured at fair value | |||
Balance at beginning of period | 1,983 | 0 | |
Balance at end of period | 1,197 | 1,983 | 0 |
Balance at beginning of period | 1,983 | 0 | |
Balance at end of period | 1,197 | 1,983 | 0 |
Wealth High Governance Holding De Participações S.A., O Primo Rico Mídia, Educacional e Participações Ltda. and NK112 Empreendimentos e Participações S.A. | |||
Equity-accounted method | |||
Balance at beginning of period | 697,924 | 0 | |
Equity | 33,036 | 75,093 | |
Equity in earnings | (5,862) | 1,639 | |
Other comprehensive income | (20,641) | (56) | |
Goodwill | 86,287 | 621,248 | |
Balance at end of period | 790,744 | 697,924 | 0 |
Measured at fair value | |||
Balance at beginning of period | 697,924 | 0 | |
Balance at end of period | 790,744 | 697,924 | 0 |
Balance at beginning of period | 697,924 | 0 | |
Balance at end of period | R$ 790744 | R$ 697924 | R$ 0 |
Wealth High Governance Holding de Participações S.A. | |||
Disclosure of associates [line items] | |||
Proportion of ownership interest in associate | 49.90% | 49.90% | |
O Primo Rico Mídia, Educacional e Participações Ltda. | |||
Disclosure of associates [line items] | |||
Proportion of ownership interest in associate | 29.30% | 20.00% | |
NK112 Empreendimentos e Participações S.A. | |||
Disclosure of associates [line items] | |||
Proportion of ownership interest in associate | 49.90% | ||
XP FIP Managers | |||
Equity-accounted method | |||
Balance at beginning of period | R$ 0 | ||
Balance at end of period | 1,221,424 | R$ 0 | |
Measured at fair value | |||
Balance at beginning of period | 0 | ||
Equity | 1,174,133 | ||
Equity in earnings | 47,291 | ||
Other comprehensive income | 0 | ||
Goodwill | 0 | ||
Balance at end of period | 1,221,424 | 0 | |
Balance at beginning of period | 0 | ||
Balance at end of period | R$ 1221424 | R$ 0 |
Property, equipment, intangib_3
Property, equipment, intangible assets and leases - Summary of property and equipment (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | R$ 204032 | R$ 142464 | R$ 99127 |
Additions | 135,444 | 145,164 | 72,499 |
Write-offs | (2,300) | (51,497) | (8,463) |
Transfers | 5 | (6,142) | 0 |
Foreign Exchange | 110 | ||
Depreciation in the year | (23,107) | (25,957) | (20,699) |
Ending balance | 313,964 | 204,032 | 142,464 |
Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 245,121 | 192,763 | |
Ending balance | 375,803 | 245,121 | 192,763 |
Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (41,089) | (50,299) | |
Ending balance | (61,839) | (41,089) | (50,299) |
Data processing system | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 33,882 | 34,447 | 28,771 |
Additions | 37,469 | 15,457 | 15,039 |
Write-offs | (298) | (2,432) | (304) |
Transfers | 5 | (2,411) | 0 |
Foreign Exchange | 31 | ||
Depreciation in the year | (13,096) | (11,179) | (9,059) |
Ending balance | 57,931 | 33,882 | 34,447 |
Data processing system | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 53,871 | 62,235 | |
Ending balance | 89,376 | 53,871 | 62,235 |
Data processing system | Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (19,989) | (27,788) | |
Ending balance | (31,445) | (19,989) | (27,788) |
Furniture and equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 22,616 | 27,756 | 21,641 |
Additions | 93 | 5,539 | 9,942 |
Write-offs | (728) | (6,191) | (2,047) |
Transfers | (15) | 516 | 2,409 |
Foreign Exchange | (245) | ||
Depreciation in the year | (3,990) | (5,004) | (4,189) |
Ending balance | 18,221 | 22,616 | 27,756 |
Furniture and equipment | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 32,592 | 38,086 | |
Ending balance | 31,813 | 32,592 | 38,086 |
Furniture and equipment | Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (9,976) | (10,330) | |
Ending balance | (13,592) | (9,976) | (10,330) |
Security systems | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 1,003 | 1,544 | 2,553 |
Additions | 229 | 1,239 | 664 |
Write-offs | (170) | (535) | 0 |
Transfers | 15 | (820) | 0 |
Foreign Exchange | 327 | ||
Depreciation in the year | (60) | (425) | (1,673) |
Ending balance | 690 | 1,003 | 1,544 |
Security systems | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 2,158 | 7,716 | |
Ending balance | 1,584 | 2,158 | 7,716 |
Security systems | Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (1,155) | (6,172) | |
Ending balance | (894) | (1,155) | (6,172) |
Facilities | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 44,921 | 78,717 | 46,162 |
Additions | 4 | 2,650 | 22,315 |
Write-offs | (375) | (41,376) | (6,112) |
Transfers | 0 | 14,279 | 22,130 |
Foreign Exchange | (3) | ||
Depreciation in the year | (5,353) | (9,349) | (5,778) |
Ending balance | 39,200 | 44,921 | 78,717 |
Facilities | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 54,890 | 84,726 | |
Ending balance | 54,535 | 54,890 | 84,726 |
Facilities | Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (9,969) | (6,009) | |
Ending balance | (15,335) | (9,969) | (6,009) |
Fixed assets in progress | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 101,610 | 0 | 0 |
Additions | 63,250 | 120,279 | 24,539 |
Write-offs | (729) | (963) | 0 |
Transfers | 0 | (17,706) | (24,539) |
Foreign Exchange | 0 | ||
Depreciation in the year | (35) | 0 | 0 |
Ending balance | 164,096 | 101,610 | 0 |
Fixed assets in progress | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 101,610 | 0 | |
Ending balance | 164,096 | 101,610 | 0 |
Fixed assets in progress | Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 0 | 0 | |
Ending balance | 0 | 0 | 0 |
Vehicle | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 0 | 0 | 0 |
Additions | 34,399 | 0 | 0 |
Write-offs | 0 | 0 | 0 |
Transfers | 0 | 0 | 0 |
Foreign Exchange | 0 | ||
Depreciation in the year | (573) | 0 | 0 |
Ending balance | 33,826 | 0 | 0 |
Vehicle | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 0 | 0 | |
Ending balance | 34,399 | 0 | 0 |
Vehicle | Accumulated depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 0 | 0 | |
Ending balance | R$ 573 | R$ 0 | R$ 0 |
Property, equipment, intangib_4
Property, equipment, intangible assets and leases - Summary of intangible assets (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | R$ 713562 | R$ 553452 | R$ 504915 |
Additions | 217,569 | 146,368 | 88,949 |
Business combinations | 70,598 | 105,504 | |
Write-offs | (17,211) | (22,064) | (2,782) |
Transfers | (5) | 6,142 | |
Foreign Exchange | (426) | ||
Amortization in the year | (163,112) | (75,840) | (37,630) |
Ending balance | 820,975 | 713,562 | 553,452 |
Software | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 115,153 | 66,310 | 38,771 |
Additions | 146,761 | 117,129 | 51,348 |
Business combinations | 1,734 | 8,143 | |
Write-offs | (13,536) | (22,064) | (2,283) |
Transfers | 51,994 | 2,857 | |
Foreign Exchange | (971) | ||
Amortization in the year | (148,803) | (57,222) | (21,526) |
Ending balance | 152,332 | 115,153 | 66,310 |
Goodwill | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 474,366 | 382,500 | 382,500 |
Additions | 0 | 0 | 0 |
Business combinations | 68,379 | 91,866 | |
Write-offs | 0 | 0 | 0 |
Transfers | 0 | 0 | |
Foreign Exchange | 0 | ||
Amortization in the year | 0 | 0 | 0 |
Ending balance | 542,745 | 474,366 | 382,500 |
Customer list | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 58,285 | 60,599 | 41,544 |
Additions | 40,000 | 1,188 | 27,000 |
Business combinations | 0 | 2,181 | |
Write-offs | 0 | 0 | 0 |
Transfers | 0 | 0 | |
Foreign Exchange | 0 | ||
Amortization in the year | (5,796) | (5,683) | (7,945) |
Ending balance | 92,489 | 58,285 | 60,599 |
Trademarks | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 10,748 | 16,488 | 19,223 |
Additions | 0 | 0 | 0 |
Business combinations | 485 | 3,314 | |
Write-offs | (1,000) | 0 | (33) |
Transfers | 485 | 0 | |
Foreign Exchange | 341 | ||
Amortization in the year | (8,492) | (9,054) | (2,702) |
Ending balance | 2,567 | 10,748 | 16,488 |
Other intangible Assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 55,010 | 27,555 | 22,877 |
Additions | 30,808 | 28,051 | 10,601 |
Business combinations | 0 | 0 | |
Write-offs | (2,675) | 0 | (466) |
Transfers | (52,484) | 3,285 | |
Foreign Exchange | 204 | ||
Amortization in the year | (21) | (3,881) | (5,457) |
Ending balance | 30,842 | 55,010 | 27,555 |
Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 877,071 | 654,809 | |
Ending balance | 1,082,314 | 877,071 | 654,809 |
Cost | Software | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 219,029 | 104,270 | |
Ending balance | 303,724 | 219,029 | 104,270 |
Cost | Goodwill | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 474,366 | 382,500 | |
Ending balance | 542,745 | 474,366 | 382,500 |
Cost | Customer list | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 76,050 | 105,977 | |
Ending balance | 116,050 | 76,050 | 105,977 |
Cost | Trademarks | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 52,616 | 22,239 | |
Ending balance | 88,877 | 52,616 | 22,239 |
Cost | Other intangible Assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 55,010 | 39,823 | |
Ending balance | 30,918 | 55,010 | 39,823 |
Accumulated amortization | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (163,509) | (101,357) | |
Ending balance | (261,339) | (163,509) | (101,357) |
Accumulated amortization | Software | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (103,876) | (37,960) | |
Ending balance | (151,392) | (103,876) | (37,960) |
Accumulated amortization | Goodwill | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 0 | 0 | |
Ending balance | 0 | 0 | 0 |
Accumulated amortization | Customer list | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (17,765) | (45,378) | |
Ending balance | (23,561) | (17,765) | (45,378) |
Accumulated amortization | Trademarks | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (41,868) | (5,751) | |
Ending balance | (86,310) | (41,868) | (5,751) |
Accumulated amortization | Other intangible Assets | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 0 | (12,268) | |
Ending balance | R$ 76 | R$ 0 | R$ 12268 |
Property, equipment, intangib_5
Property, equipment, intangible assets and leases - Additional details (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [abstract] | ||
Long-term growth rate utilized in the impairment test of goodwill | 6.50% | |
Average pre-tax discount rate applied to cash flow projections | 9.82% | 10.47% |
Rent expense from short-term leases and low-value assets | R$ 1021 | R$ 1910 |
Rent expense on lease liabilities | R$ 17795 | R$ 9615 |
Property, equipment, intangib_6
Property, equipment, intangible assets and leases - Summary of right-of-use assets and lease liabilities (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Right-of-use assets | ||
Beginning balance | R$ 183134 | R$ 227478 |
Current | 0 | 0 |
Non-current | 284,509 | 183,134 |
Additions | 116,248 | 62,003 |
Depreciation expense | (45,511) | (41,465) |
Write-offs | (856) | 78,321 |
Revaluation | 25,305 | (9,115) |
Impairment | 422 | |
Effects of exchange rate | 6,189 | 22,132 |
Ending balance | 284,509 | 183,134 |
Lease liabilities | ||
Beginning balance | 208,448 | 255,406 |
Current | 71,925 | 34,019 |
Non-current | 246,630 | 174,429 |
Additions | 116,248 | 55,820 |
Write-offs | 0 | (78,321) |
Interest expense | 17,488 | 19,456 |
Revaluation | 24,234 | (10,050) |
Effects of exchange rate | 7,486 | 23,610 |
Payment of lease liabilities | (55,349) | (57,473) |
Ending balance | R$ 318555 | R$ 208448 |
Financing instruments payable -
Financing instruments payable - Schedule (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Subclassifications of Assets, Liabilities, and Equity [Line Items] | ||
Market funding operations | R$ 20122206 | R$ 5216599 |
Deposits | 9,898,630 | 3,021,751 |
Demand deposits | 229,691 | 44,536 |
Time deposits | 9,662,694 | 2,977,215 |
Interbank deposits | 6,245 | 0 |
Financial bills | 2,587,738 | 16,389 |
Financial Liabilities At Amortized Cost, Structured Operations Certificates | 7,635,838 | 2,178,459 |
Total | 4,306,880 | 335,250 |
Debentures | 169,094 | 335,250 |
Bond | 4,137,786 | 0 |
Total | 24,429,086 | 5,551,849 |
Current | 8,018,854 | 2,731,816 |
Non-Current | R$ 16410232 | R$ 2820033 |
Financing instruments payable_2
Financing instruments payable - Maturity (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Subclassifications of assets, liabilities and equities [Line Items] | ||
Demand deposits | R$ 229691 | R$ 44536 |
Time deposits | 9,662,694 | 2,977,215 |
Interbank deposits | 6,245 | 0 |
Financial bills | 2,587,738 | 16,389 |
Financial Liabilities At Amortized Cost, Structured Operations Certificates | 7,635,838 | 2,178,459 |
Market funding operations | 20,122,206 | 5,216,599 |
Within 30 days | ||
Subclassifications of assets, liabilities and equities [Line Items] | ||
Demand deposits | 229,691 | 44,536 |
Time deposits | 751,676 | 67,501 |
Interbank deposits | 0 | |
Financial bills | 0 | 0 |
Financial Liabilities At Amortized Cost, Structured Operations Certificates | 1,510 | 0 |
Market funding operations | 982,877 | 112,037 |
From 31 to 60 days | ||
Subclassifications of assets, liabilities and equities [Line Items] | ||
Demand deposits | 0 | 0 |
Time deposits | 520,694 | 1,185 |
Interbank deposits | 3,125 | |
Financial bills | 0 | 0 |
Financial Liabilities At Amortized Cost, Structured Operations Certificates | 3,940 | 0 |
Market funding operations | 527,759 | 1,185 |
From 61 to 90 days | ||
Subclassifications of assets, liabilities and equities [Line Items] | ||
Demand deposits | 0 | 0 |
Time deposits | 712,092 | 57,781 |
Interbank deposits | 0 | |
Financial bills | 0 | 0 |
Financial Liabilities At Amortized Cost, Structured Operations Certificates | 5,428 | 0 |
Market funding operations | 717,520 | 57,781 |
From 91 to 180 days | ||
Subclassifications of assets, liabilities and equities [Line Items] | ||
Demand deposits | 0 | 0 |
Time deposits | 3,231,965 | 191,886 |
Interbank deposits | 0 | |
Financial bills | 10,945 | 0 |
Financial Liabilities At Amortized Cost, Structured Operations Certificates | 9,120 | 945 |
Market funding operations | 3,252,030 | 192,831 |
From 181 to 360 days | ||
Subclassifications of assets, liabilities and equities [Line Items] | ||
Demand deposits | 0 | 0 |
Time deposits | 2,341,770 | 2,161,762 |
Interbank deposits | 0 | |
Financial bills | 6,164 | 0 |
Financial Liabilities At Amortized Cost, Structured Operations Certificates | 21,640 | 1,489 |
Market funding operations | 2,369,574 | 2,163,251 |
After 360 days | ||
Subclassifications of assets, liabilities and equities [Line Items] | ||
Demand deposits | 0 | 0 |
Time deposits | 2,104,497 | 497,100 |
Interbank deposits | 3,120 | |
Financial bills | 2,570,629 | 16,389 |
Financial Liabilities At Amortized Cost, Structured Operations Certificates | 7,594,200 | 2,176,025 |
Market funding operations | R$ 12272446 | R$ 2689514 |
Financing instruments payable_3
Financing instruments payable - Debt securities (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Subclassifications of Assets, Liabilities, and Equity [Line Items] | ||
Bond | R$ 4137786 | R$ 0 |
Debentures | 169,094 | 335,250 |
Total | 4,306,880 | 335,250 |
Current | 169,094 | 204,731 |
Non- Current | 4,137,786 | 130,519 |
0-1 year | ||
Subclassifications of Assets, Liabilities, and Equity [Line Items] | ||
Bond | 0 | 0 |
Debentures | 169,094 | 204,731 |
Total | 169,094 | 204,731 |
From 1 to 5 years | ||
Subclassifications of Assets, Liabilities, and Equity [Line Items] | ||
Bond | 4,137,786 | 0 |
Debentures | 0 | 130,519 |
Total | R$ 4137786 | R$ 130519 |
Financing instruments payable_4
Financing instruments payable - Debt securities, additional information (Details) R$ in Thousands, $ in Millions | Jul. 01, 2021BRL (R$) | Jul. 01, 2021USD ($) | Dec. 31, 2021BRL (R$) | Dec. 31, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | Dec. 08, 2021BRL (R$) | Sep. 09, 2021BRL (R$) |
Disclosure of detailed information about borrowings [line items] | |||||||
Notional value | R$ 9738021 | R$ 2537950 | R$ 248896 | ||||
Proceeds from borrowings | 1,570,639 | 0 | R$ 0 | ||||
Unit value at period-end | 505,680 | ||||||
Total borrowings | 1,928,782 | 284,087 | |||||
Debentures | 169,094 | R$ 335250 | |||||
Senior Unsecured Notes Due on July 1, 2026 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional value | $ | $ 750 | ||||||
Proceeds from borrowings | R$ 3697000 | $ 739 | |||||
Interest rate | 3.25% | ||||||
Promissory Note Due on September 4, 2022 | XP Energia | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional value | R$ 80000 | ||||||
Total borrowings | R$ 82608 | ||||||
Promissory Note Due on September 4, 2022 | XP Energia | CDI Rate | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Interest rate, adjustment to basis | 3.50% | ||||||
Debentures | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Percentage of principal amount due and paid | 50.00% | ||||||
Debentures | CDI Rate | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Interest rate, adjustment to basis | 107.50% | ||||||
Non-Convertible Debentures | XP Energia | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Debentures | R$ 90679 | R$ 90000 | |||||
Non-Convertible Debentures | XP Energia | Top of range | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Notional value | R$ 1500000 | ||||||
Non-Convertible Debentures | XP Energia | CDI Rate | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Interest rate, adjustment to basis | 2.50% |
Securities trading and interm_3
Securities trading and intermediation (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Summary of Securities, Trading and Intermediation Assets and Liabilities [Abstract] | ||
Cash and settlement records | R$ 107246 | R$ 18128 |
Debtors pending settlement | 1,380,393 | 1,088,923 |
Expected losses on securities training and intermediation | (81,988) | (55,485) |
Total Assets | 1,405,651 | 1,051,566 |
Cash and settlement records | 365,700 | 59,712 |
Creditors pending settlement | 15,231,855 | 20,243,409 |
Total Liabilities | R$ 15597555 | R$ 20303121 |
Borrowings (Details)
Borrowings (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | R$ 1928782 | R$ 284087 |
Current | 1,661,067 | 17,637 |
Non-current | 267,715 | 266,450 |
Related parties | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 10,523 | |
Related parties | Bank borrowings - domestic | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate, adjustment to basis | 113.00% | |
Maturity | March 2021 | |
Total borrowings | R$ 0 | 10,523 |
Third Parties | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | R$ 1928782 | 273,564 |
Banco Nacional de México | Financial Institution | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate | 0.813% | |
Maturity | May 2022 | |
Total borrowings | R$ 1651871 | 0 |
International Finance Corporation | Financial Institution | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate, adjustment to basis | 0.774% | |
Maturity | April 2023 | |
Total borrowings | R$ 276911 | R$ 273564 |
Interest payable period | 6 months |
Other financial assets and fi_3
Other financial assets and financial liabilities - Other financial assets (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Foreign exchange portfolio | R$ 331563 | R$ 43129 |
Receivables from IFAs | 177,895 | 27,377 |
Other financial assets | 1,723 | 2,777 |
(-) Expected losses on other financial assets | (49,666) | (3,312) |
Total | 461,515 | 69,971 |
Current | 331,563 | 43,129 |
Non-current | R$ 129952 | R$ 26842 |
Other financial assets and fi_4
Other financial assets and financial liabilities - Other financial liabilities (Details) - BRL (R$) R$ in Thousands | Aug. 03, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subclassifications of assets, liabilities and equities [abstract] | ||||
Foreign exchange portfolio | R$ 425409 | R$ 70208 | ||
Structured financing | 2,415,400 | 874,771 | ||
Credit cards operations | 2,522,833 | 50,727 | ||
Contingent consideration | 743,443 | 462,000 | ||
Commitments subject to possible redemption | 1,080,721 | 0 | ||
Lease liabilities | 318,555 | 208,448 | R$ 255406 | |
Others | 174,111 | 40,078 | ||
Total | 7,680,472 | 1,706,232 | ||
Current | 5,860,674 | 1,244,232 | ||
Non-current | R$ 1819798 | R$ 462000 | ||
Maturity period for the total contingent consideration payment | 6 years | |||
Contingent consideration | R$ 216666 | |||
XPAC Acquisition Corp. | ||||
Disclosure of contingent liabilities [line items] | ||||
Shares, redemption period | 24 months | |||
Top of range | ||||
Disclosure of contingent liabilities [line items] | ||||
Contractual amount payable for contingent consideration | 878,506 | |||
Bottom of range | ||||
Disclosure of contingent liabilities [line items] | ||||
Contractual amount payable for contingent consideration | R$ 0 |
Social and statutory obligati_3
Social and statutory obligations - Additional information (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Social and statutory obligations | R$ 1022212 | R$ 667448 |
Social and statutory obligati_4
Social and statutory obligations - Summary of social and statutory obligations (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Obligations to non-controlling interest | R$ 106648 | R$ 82524 |
Employee profit-sharing liabilities | 776,713 | 483,378 |
Salaries and other benefits payable | 138,851 | 101,546 |
Social and statutory obligations | R$ 1022212 | R$ 667448 |
Tax and social security oblig_3
Tax and social security obligations - Summary of Tax and Social Security Obligations (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Tax and Social Security Obligations [Abstract] | ||
Income Tax (IRPJ and CSLL) | R$ 273395 | R$ 261490 |
Taxes on long term incentive plan | 155,454 | 62,155 |
Contributions over revenue (PIS and COFINS) | 32,140 | 46,136 |
Taxes on services (ISS) | 23,260 | 23,729 |
Contributions for Social Security (INSS) | 20,318 | 12,291 |
Others | 45,084 | 30,048 |
Total | 549,651 | 435,849 |
Current | 549,651 | 435,849 |
Non-current | R$ 0 | R$ 0 |
Tax and social security oblig_4
Tax and social security obligations - Additional Information (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Tax and Social Security Obligations [Abstract] | ||
Corporate income tax liability | R$ 610265 | R$ 536422 |
Corporate income tax prepaid | 538,809 | 291,973 |
Withholding taxes payable | R$ 17561 | R$ 20219 |
Private pension liabilities (De
Private pension liabilities (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of defined benefit plans [abstract] | ||
Beginning balance | R$ 13387913 | R$ 3759090 |
Contributions received | 3,056,032 | 1,678,532 |
Transfer with third party plans | 16,854,605 | 7,657,636 |
Withdraws | (1,468,710) | (304,194) |
Interest from assets within FIEs | 91,560 | 596,849 |
Ending balance | R$ 31921400 | R$ 13387913 |
Income tax - Summary of compone
Income tax - Summary of components of deferred tax assets and deferred tax liabilities (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability (asset) | R$ 1244135 | R$ 496694 | R$ 279401 | R$ 140400 |
Deferred tax expense (income) | 747,441 | 217,292 | 139,001 | |
Deferred tax assets | 1,273,069 | 505,046 | ||
Deferred tax liabilities | (28,934) | (8,352) | ||
Tax losses carryforwards | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability (asset) | 108,138 | 7,382 | ||
Deferred tax expense (income) | 100,756 | (9,764) | (38,212) | |
Goodwill on business combinations | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability (asset) | 12,429 | 22,838 | ||
Deferred tax expense (income) | (10,409) | 535 | (37,690) | |
Provisions for IFAs’ commissions | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability (asset) | 76,974 | 94,544 | ||
Deferred tax expense (income) | (17,570) | 26,503 | 37,010 | |
Revaluations of financial assets at fair value | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability (asset) | 173,740 | (16,780) | ||
Deferred tax expense (income) | 190,520 | (42,039) | 23,862 | |
Expected credit losses | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability (asset) | 43,931 | 19,444 | ||
Deferred tax expense (income) | 24,487 | 13,778 | 2,587 | |
Profit sharing plan | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability (asset) | 260,865 | 164,808 | ||
Deferred tax expense (income) | 96,057 | 23,672 | 141,136 | |
Net gain on hedge instruments | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability (asset) | 28,124 | 20,987 | ||
Deferred tax expense (income) | 7,137 | 57,371 | (34,943) | |
Share-based compensation | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability (asset) | 385,594 | 115,976 | ||
Deferred tax expense (income) | 269,618 | 113,025 | 2,950 | |
Other provisions | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability (asset) | 154,340 | 67,495 | ||
Deferred tax expense (income) | R$ 86845 | R$ 34211 | R$ 42301 |
Income tax - Summary of reconci
Income tax - Summary of reconciliation of changes in deferred tax liability asset (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Major components of tax expense (income) [abstract] | |||
Beginning balance | R$ 496694 | R$ 279401 | R$ 140400 |
Foreign exchange variations | (16,949) | 6,372 | (3,461) |
Charges to statement of income | 387,551 | 196,498 | 139,411 |
Tax relating to components of other comprehensive income | 376,839 | 14,423 | 3,051 |
Ending balance | R$ 1244135 | R$ 496694 | R$ 279401 |
Income tax - Additional informa
Income tax - Additional information (Details) - BRL (R$) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Major components of tax expense (income) [abstract] | |||
Unused tax losses for which no deferred tax asset recognised | R$ 39446 | R$ 37309 | |
Applicable tax rate | 34.00% | 34.00% | 34.00% |
Income tax - Summary of income
Income tax - Summary of income tax calculation (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||
Income before income tax | R$ 3815174 | R$ 2421413 | R$ 1544109 |
Combined tax rate in Brazil | 34.00% | 34.00% | 34.00% |
Tax expense at the combined rate | R$ 1297159 | R$ 823280 | R$ 524997 |
Loss (income from entities not subject to deferred taxation | 554 | (12,470) | (9,551) |
Effects from entities taxed at different rates | 146,377 | 35,377 | 25,948 |
Effects from entities taxed at different taxation regimes | (1,128,400) | (443,579) | (24,089) |
Intercompany transactions with different taxation regimes | (79,055) | (74,289) | (50,138) |
Tax incentives | (21,036) | (14,354) | (9,772) |
Non-deductible expenses (non-taxable income) | 25,216 | 49,640 | 33,854 |
Others | (18,101) | (23,681) | (36,624) |
Income tax expense | R$ 222714 | R$ 339924 | R$ 454625 |
Effective tax rate | 5.84% | 14.04% | 29.44% |
Current | R$ 610265 | R$ 536422 | R$ 594037 |
Deferred | R$ 387551 | R$ 196498 | R$ 139412 |
Income tax - Summary of analysi
Income tax - Summary of analysis of other comprehensive income by item (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Foreign exchange variation of investees located abroad | |||
Before tax | R$ 20977 | R$ 57439 | R$ 6823 |
(Charge) / Credit | 0 | 0 | 0 |
After tax | 20,977 | 57,439 | 6,823 |
Gains (losses) on net investment hedge | |||
Before tax | (29,700) | (91,762) | (10,543) |
(Charge) / Credit | 10,942 | 31,199 | 3,410 |
After tax | (18,758) | (60,563) | (7,133) |
Changes in the fair value of financial assets at fair value | |||
Before tax | (914,914) | 40,979 | 1,057 |
(Charge) / Credit | 365,897 | (16,776) | (359) |
After tax | (549,017) | 24,203 | 698 |
Balance | |||
Before tax | (923,637) | 6,656 | (2,663) |
Tax relating to components of other comprehensive income | 376,839 | 14,423 | 3,051 |
Other comprehensive income (loss) for the period, net of tax | R$ 546798 | R$ 21079 | R$ 388 |
Equity - Additional information
Equity - Additional information (Details) $ / shares in Units, R$ in Thousands, $ in Thousands | Oct. 08, 2021shares | Dec. 31, 2020BRL (R$)shares | Dec. 31, 2021BRL (R$)unitshares | Dec. 31, 2020BRL (R$)shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2019shares |
Disclosure of classes of share capital [line items] | ||||||
Authorized share capital | $ | $ 35 | |||||
Number of shares authorised | 3,500,000,000 | 3,500,000,000 | ||||
Par value per share | $ / shares | $ 0.00001 | |||||
Authorized shares but unissued | 500,000,000 | 500,000,000 | ||||
Issued capital | R$ 23 | R$ 23 | R$ 23 | $ 23 | ||
Number of shares outstanding | 559,058,965 | 559,548,724 | 559,058,965 | 559,548,724 | 551,800,326 | |
Number of votes per share | unit | 10 | |||||
Issuance of shares | 489,759 | |||||
Number of shares reserved for issue under options and contracts for sale of shares | 13,899,648 | 18,119,890 | 13,899,648 | 18,119,890 | ||
Number of shares held in treasury | 726,776,000 | 726,776,000 | ||||
Treasury shares | R$ | R$ 0 | R$ 171939 | R$ 0 | |||
Dividends received | R$ | R$ 3026 | R$ 5567 | ||||
Class A Common Shares | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares issued | 2,000,000,000 | 2,000,000,000 | ||||
Number of shares outstanding | 424,153,735 | 424,153,735 | ||||
Issuance of shares | 7,258,639 | |||||
Issuance of shares | 489,759 | |||||
Class B Common Shares | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares issued | 1,000,000,000 | 1,000,000,000 | ||||
Number of shares outstanding | 181,293,980 | 135,394,989 | 181,293,980 | 135,394,989 | 197,618,980 | |
Issuance of shares | 0 | |||||
RSUs | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares reserved for issue under options and contracts for sale of shares | 11,079,736 | 15,153,830 | 11,079,736 | 15,153,830 | ||
PSUs | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares reserved for issue under options and contracts for sale of shares | 2,819,912 | 2,966,060 | 2,819,912 | 2,966,060 |
Equity - Summary of issuances a
Equity - Summary of issuances and conversations of shares (Details) - shares | Dec. 07, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of classes of share capital [line items] | |||
Beginning balance | 559,058,965 | 551,800,326 | |
Transfer of classes | 0 | 0 | |
Follow on offering | 7,258,639 | ||
Issuance of shares | 489,759 | ||
Ending balance | 559,548,724 | 559,058,965 | |
Class A Common Share | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | 377,764,985 | 354,181,346 | |
Transfer of classes | 45,898,991 | 16,325,000 | |
Follow on offering | 7,258,639 | ||
Issuance of shares | 7,130,435 | 489,759 | |
Ending balance | 424,153,735 | 377,764,985 | |
Class B Common Shares | |||
Disclosure of classes of share capital [line items] | |||
Beginning balance | 181,293,980 | 197,618,980 | |
Transfer of classes | (45,898,991) | (16,325,000) | |
Follow on offering | 0 | ||
Issuance of shares | 0 | ||
Ending balance | 135,394,989 | 181,293,980 |
Related party transactions - Su
Related party transactions - Summary of key management personnel compensation expense (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of transactions between related parties [abstract] | |||
Fixed compensation | R$ 8801 | R$ 6335 | R$ 4821 |
Variable compensation | 44,362 | 55,909 | 22,060 |
Total | R$ 53163 | R$ 62244 | R$ 26881 |
Related party transactions - _2
Related party transactions - Summary of transactions between related parties explanatory (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of transactions between related parties [line items] | |||
Assets/(Liabilities) | R$ 2096701 | R$ 5667588 | |
Revenue/(Expenses) | (60,177) | (53,881) | R$ 49779 |
Securities | |||
Disclosure of transactions between related parties [line items] | |||
Assets/(Liabilities) | 194,892 | 112,127 | |
Revenue/(Expenses) | 4,270 | 9,629 | 10,381 |
Securities purchased under agreements to resell | |||
Disclosure of transactions between related parties [line items] | |||
Assets/(Liabilities) | 0 | 0 | |
Revenue/(Expenses) | 19,098 | 0 | 1,550 |
Accounts receivable and Loans operations | |||
Disclosure of transactions between related parties [line items] | |||
Assets/(Liabilities) | 9,205 | 11,238 | |
Revenue/(Expenses) | 744 | 505 | 1,025 |
Securities sold under repurchase agreements | |||
Disclosure of transactions between related parties [line items] | |||
Assets/(Liabilities) | (2,300,798) | (5,780,430) | |
Revenue/(Expenses) | (84,268) | (62,951) | (58,078) |
Borrowings | |||
Disclosure of transactions between related parties [line items] | |||
Assets/(Liabilities) | 0 | (10,523) | |
Revenue/(Expenses) | R$ 21 | R$ 1064 | R$ 4657 |
Provisions and contingent lia_3
Provisions and contingent liabilities - Summary of other provisions (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of other provisions [line items] | ||||
Other provisions | R$ 29308 | R$ 19711 | R$ 15193 | R$ 17474 |
Judicial deposits | 11,202 | 10,199 | ||
Tax contingencies | ||||
Disclosure of other provisions [line items] | ||||
Other provisions | 10,374 | 10,097 | ||
Civil contingencies | ||||
Disclosure of other provisions [line items] | ||||
Other provisions | 12,539 | 4,281 | ||
Labor contingencies | ||||
Disclosure of other provisions [line items] | ||||
Other provisions | R$ 6395 | R$ 5333 |
Provisions and contingent lia_4
Provisions and contingent liabilities - Summary of changes in other provisions (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of other provisions [abstract] | |||
Beginning of period | R$ 19711 | R$ 15193 | R$ 17474 |
Monetary correction | 6,837 | 4,102 | 2,492 |
Provision | 8,457 | 3,499 | 2,338 |
Reversed | (3,132) | (1,454) | (3,939) |
Payments | (2,565) | (1,629) | (3,172) |
End of period | R$ 29308 | R$ 19711 | R$ 15193 |
Provisions and contingent lia_5
Provisions and contingent liabilities - Additional information (Details) R$ in Thousands | Dec. 31, 2021BRL (R$)claim | Dec. 31, 2020BRL (R$) | Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) |
Disclosure of contingent liabilities [line items] | ||||
Other provisions | R$ 29308 | R$ 19711 | R$ 15193 | R$ 17474 |
Judicial deposits | 11,202 | 10,199 | ||
Tax | ||||
Disclosure of contingent liabilities [line items] | ||||
Other provisions | 10,374 | 10,097 | ||
Civil | ||||
Disclosure of contingent liabilities [line items] | ||||
Other provisions | R$ 12539 | 4,281 | ||
Number of civil and administrative claims for which the likelihood of loss has been classified as probable | claim | 105 | |||
Judicial deposits | R$ 758 | 100 | ||
Labor | ||||
Disclosure of contingent liabilities [line items] | ||||
Other provisions | R$ 6395 | R$ 5333 | ||
Number of civil and administrative claims for which the likelihood of loss has been classified as probable | claim | 18 |
Provisions and contingent lia_6
Provisions and contingent liabilities - Summary of contingent liabilities (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Nov. 30, 2021 | Dec. 31, 2020 |
Disclosure of contingent liabilities [line items] | |||
Estimated financial effect of contingent liabilities | R$ 487121 | R$ 217426 | |
Tax | |||
Disclosure of contingent liabilities [line items] | |||
Estimated financial effect of contingent liabilities | 228,602 | 71,027 | |
Tax | Federal Revenue of Brazil v. Company re. Brazilian Law 10,101/00 | |||
Disclosure of contingent liabilities [line items] | |||
Estimated financial effect of contingent liabilities | R$ 97456 | ||
Tax | Federal Revenue of Brazil v. Company re. Tax Assessment | |||
Disclosure of contingent liabilities [line items] | |||
Estimated financial effect of contingent liabilities | 58,262 | ||
Civil | |||
Disclosure of contingent liabilities [line items] | |||
Estimated financial effect of contingent liabilities | 232,775 | 136,228 | |
Labor | |||
Disclosure of contingent liabilities [line items] | |||
Estimated financial effect of contingent liabilities | R$ 25744 | R$ 10171 |
Total revenue and income - Disa
Total revenue and income - Disaggregation of revenue by major service lines (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |||
Brokerage commission | R$ 2465217 | R$ 2139985 | R$ 1288135 |
Securities placement | 1,917,403 | 1,429,824 | 1,154,786 |
Management fees | 1,489,736 | 1,224,125 | 1,035,224 |
Insurance brokerage fee | 133,070 | 112,802 | 106,438 |
Educational services | 71,295 | 118,272 | 97,986 |
Commissions Fees | 192,923 | 90,804 | 48,413 |
Other services | 532,035 | 386,780 | 227,054 |
Revenue before sales taxes and contributions on revenue | 6,801,679 | 5,502,592 | 3,958,036 |
Sales taxes and contributions on revenue | (605,214) | (486,104) | (362,264) |
Net revenue from services rendered | R$ 6196465 | R$ 5016488 | R$ 3595772 |
Total revenue and income - Summ
Total revenue and income - Summary of net income from financial instruments (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |||
Net Income of financial instruments at fair value through profit or loss | R$ 7555132 | R$ 3020698 | R$ 1360207 |
Net income (loss) from financial instruments at amortized cost and at fair value through other comprehensive income | (1,558,060) | 188,196 | 199,947 |
Taxes and contributions on financial income | (116,425) | (73,777) | (28,118) |
Net income from financial instruments | R$ 5880647 | R$ 3135117 | R$ 1532036 |
Total revenue and income - Su_2
Total revenue and income - Summary of disaggregation by geographic location (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of disaggregation by geographic location [Line Items] | |||
Total revenue and income | R$ 12077112 | R$ 8151605 | R$ 5127808 |
Selected assets | 7,806,597 | 3,378,500 | |
Brazil | |||
Disclosure of disaggregation by geographic location [Line Items] | |||
Total revenue and income | 11,723,976 | 7,454,304 | 4,790,236 |
Selected assets | 7,698,115 | 3,244,421 | |
United States | |||
Disclosure of disaggregation by geographic location [Line Items] | |||
Total revenue and income | 332,046 | 655,817 | 307,456 |
Selected assets | 106,736 | 129,956 | |
Europe | |||
Disclosure of disaggregation by geographic location [Line Items] | |||
Total revenue and income | 21,090 | 41,484 | R$ 30116 |
Selected assets | R$ 1746 | R$ 4123 |
Operating costs (Details)
Operating costs (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |||
Commission and incentive costs | R$ 2719611 | R$ 2087197 | R$ 1269309 |
Operating losses | 35,844 | 31,295 | 13,922 |
Other costs | 674,654 | 526,867 | 313,419 |
Clearing house fees | 411,605 | 344,278 | 201,083 |
Third parties’ services | 88,431 | 92,997 | 76,669 |
Other | 174,618 | 89,592 | 35,667 |
Operating costs | R$ 3430109 | R$ 2645359 | R$ 1596650 |
Operating expenses by nature (D
Operating expenses by nature (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |||
Selling expenses | R$ 227483 | R$ 134915 | R$ 155115 |
Advertising and publicity | 227,483 | 134,915 | 155,115 |
Administrative expenses | 4,692,698 | 3,013,598 | 1,891,481 |
Personnel expenses | 3,427,220 | 2,138,470 | 1,261,887 |
Compensation | 1,416,247 | 846,742 | 408,394 |
Employee profit-sharing and bonus | 1,362,046 | 807,640 | 645,992 |
Executives profit-sharing | 143,763 | 194,419 | 67,547 |
Benefits | 130,187 | 75,302 | 47,457 |
Social charges | 358,878 | 208,151 | 88,960 |
Other | 16,099 | 6,216 | 3,537 |
Other taxes expenses | 53,603 | 44,029 | 39,691 |
Depreciation of property and equipment and right-of-use assets | 68,618 | 67,422 | 53,530 |
Amortization of intangible assets | 163,112 | 75,839 | 37,630 |
Other administrative expenses | 980,145 | 687,838 | 498,743 |
Data processing | 450,796 | 322,659 | 178,860 |
Technical services | 167,984 | 101,389 | 85,782 |
Third parties' services | 249,514 | 168,019 | 145,730 |
Rent expenses | 16,498 | 17,955 | 10,575 |
Communication | 30,041 | 29,311 | 17,495 |
Travel | 13,282 | 9,923 | 21,676 |
Legal and judicial | 9,292 | 6,976 | 3,406 |
Other | 42,738 | 31,606 | 35,219 |
Total | R$ 4920181 | R$ 3148513 | R$ 2046596 |
Other operating income, net (De
Other operating income, net (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |||
Other operating income | R$ 413665 | R$ 377480 | R$ 208245 |
Revenue from incentives from Tesouro Direto, B3 and others | 366,163 | 352,879 | 101,615 |
Interest received on tax | 7,604 | 5,521 | 31,782 |
Recovery of charges and expenses | 4,473 | 1,798 | 53,453 |
Reversal of operating provisions | 7,422 | 1,366 | 9,767 |
Other | 28,003 | 15,916 | 11,628 |
Other operating expenses | (89,311) | (206,427) | (54,888) |
Legal, administrative proceedings and agreement with customers | (3,667) | (45,277) | (9,499) |
Losses on write-off and disposal of assets | (4,377) | (52,102) | (10,265) |
Tax incentive expenses | (10,788) | (8,136) | (7,060) |
Fines and penalties | (1,378) | (16,995) | (1,191) |
Associations and regulatory fees | (11,714) | (13,524) | (4,216) |
Charity | (30,171) | (41,654) | (6,751) |
Other | (27,216) | (28,739) | (15,906) |
Total | R$ 324354 | R$ 171053 | R$ 153357 |
Share-based plan - Additional i
Share-based plan - Additional information (Details) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2021BRL (R$) | Dec. 31, 2020BRL (R$)shares | Dec. 31, 2021USD ($)shares | May 31, 2020USD ($) | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of shares reserved for issue under options and contracts for sale of shares | shares | 13,899,648 | 18,119,890 | ||
Expense from share-based payment transactions with employees | R$ | R$ 654876 | R$ 292817 | ||
Tax provisions and does not include any tax benefits on total share based compensation expense | R$ | R$ 93421 | R$ 60026 | ||
Weighted average fair value at measurement date, other equity instruments granted | $ | $ 40.71 | |||
RSUs | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of shares reserved for issue under options and contracts for sale of shares | shares | 11,079,736 | 15,153,830 | ||
Weighted average fair value at measurement date, other equity instruments granted | $ | $ 27 | |||
PSUs | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of shares reserved for issue under options and contracts for sale of shares | shares | 2,819,912 | 2,966,060 | ||
Weighted average fair value at measurement date, other equity instruments granted | $ | $ 34.56 | $ 52.41 |
Share-based plan - Activity of
Share-based plan - Activity of RSUs and PSUs (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Number of units | ||
Outstanding (shares) | 13,899,648 | 4,112,046 |
Granted (shares) | 5,939,132 | 10,359,957 |
Forfeited (shares) | (1,718,890) | (572,355) |
Outstanding (shares) | 18,119,890 | 13,899,648 |
RSUs | ||
Number of units | ||
Outstanding (shares) | 11,079,736 | 1,921,669 |
Granted (shares) | 5,709,046 | 9,730,422 |
Forfeited (shares) | (1,634,952) | (572,355) |
Outstanding (shares) | 15,153,830 | 11,079,736 |
PSUs | ||
Number of units | ||
Outstanding (shares) | 2,819,912 | 2,190,377 |
Granted (shares) | 230,086 | 629,535 |
Forfeited (shares) | (83,938) | 0 |
Outstanding (shares) | 2,966,060 | 2,819,912 |
Earnings per share (basic and_3
Earnings per share (basic and diluted) (Details) - BRL (R$) R$ / shares in Units, shares in Thousands, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings per share [abstract] | |||
Net Income attributable to owners of the Parent | R$ 3589416 | R$ 2076430 | R$ 1080484 |
Basic weighted average number of outstanding shares (in shares) | 559,004 | 552,291 | 511,462 |
Basic earnings per share (in R$ per share) | R$ 6.4211 | R$ 3.7597 | R$ 2.1125 |
Share-based plan and treasury shares (in shares) | 14,496 | 6,817 | 248 |
Diluted weighted average number of outstanding shares (in shares) | 573,499 | 559,108 | 511,710 |
Diluted earnings per share (in R$ per share) | R$ 6.2588 | R$ 3.7138 | R$ 2.1115 |
Determination of fair value (De
Determination of fair value (Details) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021BRL (R$) | Dec. 31, 2020BRL (R$) | |
Financial assets at Fair value through profit or loss | ||
Securities | R$ 58179955 | R$ 49590013 |
Derivative financial instruments | 10,943,714 | 7,559,433 |
Fair value through other comprehensive income | ||
Securities | 32,332,377 | 19,039,044 |
Evaluated at amortized cost | ||
Securities | 2,238,807 | 1,828,704 |
Securities purchased under agreements to resell | 8,894,531 | 6,627,409 |
Securities trading and intermediation | 1,405,651 | 1,051,566 |
Accounts receivable | 469,086 | 506,359 |
Loan operations | 12,819,627 | 3,918,328 |
Other financial assets | 461,515 | 69,971 |
Fair value through profit or loss | ||
Securities loaned | 2,665,202 | 2,237,442 |
Derivative financial instruments | 11,908,183 | 7,819,364 |
Evaluated at amortized cost | ||
Securities sold under repurchase agreements | 26,281,345 | 31,839,344 |
Securities trading and intermediation | 15,597,555 | 20,303,121 |
Financing instruments payable | 24,429,086 | 5,551,849 |
Borrowings | 1,928,782 | 284,087 |
Debentures | 335,250 | |
Accounts payables | 867,526 | 859,550 |
Other financial liabilities | 7,680,472 | 1,706,232 |
Investments in associates measured at fair value | R$ 1221424 | |
Reasonably possible increase (decrease) in variable, percent | 1.00% | |
Increase (decrease) in fair value due to change in discount rate, liability | R$ 18751 | |
Increase (decrease) in fair value due to change in discount rate by 100 bps, asset | R$ 12214 | |
Discount rate | ||
Evaluated at amortized cost | ||
Weighted average discount rate | 0.1009 | |
Fair value | ||
Financial assets at Fair value through profit or loss | ||
Securities | R$ 58179955 | 49,590,013 |
Derivative financial instruments | 10,943,714 | 7,559,433 |
Fair value through other comprehensive income | ||
Securities | 32,332,377 | 19,039,044 |
Evaluated at amortized cost | ||
Securities | 2,542,182 | 1,830,031 |
Securities purchased under agreements to resell | 9,124,719 | 6,627,044 |
Securities trading and intermediation | 1,405,651 | 1,051,566 |
Accounts receivable | 469,086 | 506,359 |
Loan operations | 12,844,037 | 4,037,954 |
Other financial assets | 461,515 | 69,971 |
Fair value through profit or loss | ||
Securities loaned | 2,665,202 | 2,237,442 |
Derivative financial instruments | 11,908,183 | 7,819,364 |
Evaluated at amortized cost | ||
Securities sold under repurchase agreements | 26,276,252 | 31,810,893 |
Securities trading and intermediation | 15,597,555 | 20,303,121 |
Financing instruments payable | 23,974,348 | 5,162,453 |
Borrowings | 1,932,859 | 283,993 |
Debentures | 331,520 | |
Accounts payables | 867,526 | 859,550 |
Other financial liabilities | 7,680,472 | 1,706,232 |
Investments in associates measured at fair value | 1,221,424 | |
Level 1 | Fair value | ||
Financial assets at Fair value through profit or loss | ||
Securities | 49,677,779 | 35,549,047 |
Derivative financial instruments | 194,911 | 26,535 |
Fair value through other comprehensive income | ||
Securities | 32,332,377 | 19,039,044 |
Evaluated at amortized cost | ||
Securities | 1,870,205 | 1,830,031 |
Securities purchased under agreements to resell | 0 | 0 |
Securities trading and intermediation | 0 | 0 |
Accounts receivable | 0 | 0 |
Loan operations | 0 | 0 |
Other financial assets | 0 | 0 |
Fair value through profit or loss | ||
Securities loaned | 2,237,442 | |
Derivative financial instruments | 157,710 | 13,221 |
Evaluated at amortized cost | ||
Securities sold under repurchase agreements | 0 | 0 |
Securities trading and intermediation | 0 | 0 |
Financing instruments payable | 0 | 0 |
Borrowings | 0 | 0 |
Debentures | 0 | |
Accounts payables | 0 | 0 |
Other financial liabilities | 0 | 0 |
Investments in associates measured at fair value | 0 | |
Level 2 | Fair value | ||
Financial assets at Fair value through profit or loss | ||
Securities | 8,502,176 | 14,040,966 |
Derivative financial instruments | 10,748,803 | 7,532,898 |
Fair value through other comprehensive income | ||
Securities | 0 | 0 |
Evaluated at amortized cost | ||
Securities | 671,977 | 0 |
Securities purchased under agreements to resell | 9,124,719 | 6,627,044 |
Securities trading and intermediation | 1,405,651 | 1,051,566 |
Accounts receivable | 469,086 | 506,359 |
Loan operations | 12,844,037 | 4,037,954 |
Other financial assets | 461,515 | 69,971 |
Fair value through profit or loss | ||
Securities loaned | 518,804 | 0 |
Derivative financial instruments | 11,750,473 | 7,806,143 |
Evaluated at amortized cost | ||
Securities sold under repurchase agreements | 26,276,252 | 31,810,893 |
Securities trading and intermediation | 15,597,555 | 20,303,121 |
Financing instruments payable | 23,974,348 | 5,162,453 |
Borrowings | 1,932,859 | 283,993 |
Debentures | 331,520 | |
Accounts payables | 867,526 | 859,550 |
Other financial liabilities | 6,937,029 | 1,244,232 |
Investments in associates measured at fair value | 0 | |
Level 3 | Fair value | ||
Financial assets at Fair value through profit or loss | ||
Securities | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Fair value through other comprehensive income | ||
Securities | 0 | 0 |
Evaluated at amortized cost | ||
Securities | 0 | 0 |
Securities purchased under agreements to resell | 0 | 0 |
Securities trading and intermediation | 0 | 0 |
Accounts receivable | 0 | 0 |
Loan operations | 0 | 0 |
Other financial assets | 0 | 0 |
Fair value through profit or loss | ||
Securities loaned | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Evaluated at amortized cost | ||
Securities sold under repurchase agreements | 0 | 0 |
Securities trading and intermediation | 0 | 0 |
Financing instruments payable | 0 | 0 |
Borrowings | 0 | 0 |
Debentures | 0 | |
Accounts payables | 0 | 0 |
Other financial liabilities | 743,443 | R$ 462000 |
Investments in associates measured at fair value | R$ 1221424 |
Management of financial risks_3
Management of financial risks and financial instruments (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Securities purchased under agreements to resell | R$ 8894531 | R$ 6627409 |
Securities | 92,751,139 | 70,457,761 |
Public securities | 48,246,922 | 51,944,301 |
Private securities | 44,504,217 | 18,513,460 |
Derivative financial instruments | 10,943,714 | 7,559,433 |
Securities trading and intermediation | 1,405,651 | 1,051,566 |
Accounts receivable | 469,086 | 506,359 |
Loan operations | 12,819,627 | 3,918,328 |
Other financial assets | 461,515 | 69,971 |
Off-balance exposures | 1,367,399 | 35,810 |
Total | R$ 129112662 | R$ 90190827 |
Management of financial risks_4
Management of financial risks and financial instruments - Summary of financial liabilities into groupings based on their contractual maturities (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of financial assets [line items] | ||
Securities | R$ 2665202 | R$ 2237442 |
Derivative financial instruments | 11,908,183 | 7,819,364 |
Securities sold under repurchase agreements | 26,281,345 | 31,839,344 |
Securities trading and intermediation | 15,597,555 | 20,303,121 |
Financing instruments payable | 24,429,086 | 5,551,849 |
Borrowings | 1,928,782 | 284,087 |
Accounts payables | 867,526 | 859,550 |
Other financial liabilities | 7,680,472 | 1,706,232 |
Financial liabilities | 91,358,151 | 70,600,989 |
Up to 1 month | ||
Disclosure of financial assets [line items] | ||
Securities | 2,146,398 | 2,237,442 |
Derivative financial instruments | 758,821 | 1,572,140 |
Securities sold under repurchase agreements | 26,281,345 | 31,839,344 |
Securities trading and intermediation | 15,597,555 | 20,303,121 |
Financing instruments payable | 982,877 | 128,426 |
Borrowings | 0 | 3,535 |
Accounts payables | 867,526 | 859,550 |
Other financial liabilities | 5,856,309 | 1,038,628 |
Financial liabilities | 52,490,831 | 57,982,186 |
From 2 to 3 months | ||
Disclosure of financial assets [line items] | ||
Securities | 0 | 0 |
Derivative financial instruments | 1,379,092 | 814,220 |
Securities sold under repurchase agreements | 0 | 0 |
Securities trading and intermediation | 0 | 0 |
Financing instruments payable | 1,245,279 | 58,966 |
Borrowings | 0 | 6,989 |
Accounts payables | 0 | 0 |
Other financial liabilities | 0 | 5,721 |
Financial liabilities | 2,624,371 | 885,896 |
From 3 to 12 months | ||
Disclosure of financial assets [line items] | ||
Securities | 0 | 0 |
Derivative financial instruments | 2,250,942 | 2,643,065 |
Securities sold under repurchase agreements | 0 | 0 |
Securities trading and intermediation | 0 | 0 |
Financing instruments payable | 5,790,698 | 2,356,082 |
Borrowings | 1,661,067 | 7,114 |
Accounts payables | 0 | 0 |
Other financial liabilities | 4,365 | 25,454 |
Financial liabilities | 9,707,072 | 5,031,715 |
From 1 to 5 years | ||
Disclosure of financial assets [line items] | ||
Securities | 0 | 0 |
Derivative financial instruments | 6,436,008 | 2,205,410 |
Securities sold under repurchase agreements | 0 | 0 |
Securities trading and intermediation | 0 | 0 |
Financing instruments payable | 15,525,061 | 1,685,468 |
Borrowings | 267,715 | 266,449 |
Accounts payables | 0 | 0 |
Other financial liabilities | 1,819,798 | 571,054 |
Financial liabilities | 24,048,582 | 4,728,381 |
Above 5 years | ||
Disclosure of financial assets [line items] | ||
Securities | 518,804 | 0 |
Derivative financial instruments | 1,083,320 | 584,529 |
Securities sold under repurchase agreements | 0 | 0 |
Securities trading and intermediation | 0 | 0 |
Financing instruments payable | 885,171 | 1,322,907 |
Borrowings | 0 | 0 |
Accounts payables | 0 | 0 |
Other financial liabilities | 0 | 65,375 |
Financial liabilities | R$ 2487295 | R$ 1972811 |
Management of financial risks_5
Management of financial risks and financial instruments - Additional information (Details) £ in Thousands, $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2021GBP (£) | Dec. 31, 2020USD ($) | Dec. 31, 2020GBP (£) |
XP Holdings | ||||
Disclosure of sensitivity analysis [Line Items] | ||||
Foreign Currency Risk | $ 52,905 | $ 46,534 | ||
XP Advisors Inc | ||||
Disclosure of sensitivity analysis [Line Items] | ||||
Foreign Currency Risk | $ 2,658 | $ 801 | ||
XP Holdings UK Ltd | ||||
Disclosure of sensitivity analysis [Line Items] | ||||
Foreign Currency Risk | £ | £ 1,918 | £ 2,268 |
Management of financial risks_6
Management of financial risks and financial instruments - Summary of sensitivity analysis (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of sensitivity analysis [Line Items] | ||
Sensitivity analysis increase decrease in one percent | R$ 8618 | R$ 7835 |
Sensitivity analysis increase decrease in twenty five percent | (279,158) | (305,970) |
Sensitivity analysis increase decrease in fifty percent | (153,306) | (614,564) |
Pre-fixed | Pre-fixed interest rate in Reais | ||
Disclosure of sensitivity analysis [Line Items] | ||
Sensitivity analysis increase decrease in one percent | (285) | (191) |
Sensitivity analysis increase decrease in twenty five percent | (110,555) | (9,056) |
Sensitivity analysis increase decrease in fifty percent | (204,607) | (33,402) |
Exchange coupons | Foreign currencies coupon rate | ||
Disclosure of sensitivity analysis [Line Items] | ||
Sensitivity analysis increase decrease in one percent | (35) | (379) |
Sensitivity analysis increase decrease in twenty five percent | (5,578) | (5,508) |
Sensitivity analysis increase decrease in fifty percent | (11,325) | (11,184) |
Foreign currencies | Exchange rates | ||
Disclosure of sensitivity analysis [Line Items] | ||
Sensitivity analysis increase decrease in one percent | (364) | (1,997) |
Sensitivity analysis increase decrease in twenty five percent | 177,203 | (169,318) |
Sensitivity analysis increase decrease in fifty percent | 384,340 | (373,807) |
Price indexes | Inflation coupon rates | ||
Disclosure of sensitivity analysis [Line Items] | ||
Sensitivity analysis increase decrease in one percent | (248) | (311) |
Sensitivity analysis increase decrease in twenty five percent | (53,407) | (14,384) |
Sensitivity analysis increase decrease in fifty percent | (103,602) | (28,434) |
Share | Shares prices | ||
Disclosure of sensitivity analysis [Line Items] | ||
Sensitivity analysis increase decrease in one percent | (1,483) | (4,957) |
Sensitivity analysis increase decrease in twenty five percent | (131,753) | (107,704) |
Sensitivity analysis increase decrease in fifty percent | 92,024 | R$ 167737 |
Seed Money | Seed Money | ||
Disclosure of sensitivity analysis [Line Items] | ||
Sensitivity analysis increase decrease in one percent | (6,203) | |
Sensitivity analysis increase decrease in twenty five percent | (155,068) | |
Sensitivity analysis increase decrease in fifty percent | R$ 310136 |
Capital management - Summary of
Capital management - Summary of net debt and corresponding gearing ratios (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subclassifications of assets, liabilities and equities [abstract] | |||
Group debt | R$ 7073021 | R$ 827785 | |
Structured financing | 2,415,400 | 874,771 | |
Total debt | 9,488,421 | 1,702,556 | |
Cash | (2,485,641) | (1,954,788) | R$ 109922 |
Securities purchased under agreements to resell | (1,071,328) | (593,673) | (654,057) |
Certificate deposits (Securities) | (194,892) | (111,927) | R$ 123817 |
Net debt | 5,736,560 | (957,832) | |
Total equity | 14,416,836 | 10,894,609 | |
Total capital | R$ 20153396 | R$ 9936777 | |
Gearing ratio % | 28.46% | (9.64%) |
Capital management - Additional
Capital management - Additional information (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Contracts under financial covenants | R$ 446005 | R$ 619337 |
Cash flow information (Details)
Cash flow information (Details) - BRL (R$) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Total debt, beginning balance | R$ 827785000 | R$ 1472714000 | R$ 1024641000 |
Acquisitions / Issuance | 5,878,167,000 | 55,820,000 | 524,196,000 |
Write-off | (78,321,000) | ||
Payments | (254,197,000) | (552,868,000) | (135,147,000) |
Repurchase | (64,717,000) | ||
Revaluation | 24,234,000 | (10,050,000) | |
Net foreign exchange differences | 512,162,000 | 23,610,000 | 3,085,000 |
Interest accrued | 174,894,000 | 52,821,000 | 84,367,000 |
Interest paid | (81,427,000) | (71,224,000) | (28,428,000) |
Total debt, ending balance | 7,081,618,000 | 827,785,000 | 1,472,714,000 |
Fair value adjustments, liabilities arising from financing activities | 0 | ||
Borrowings | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Total debt, beginning balance | 284,087,000 | 382,078,000 | 469,609,000 |
Acquisitions / Issuance | 1,570,639,000 | 0 | 0 |
Write-off | 0 | ||
Payments | (21,022,000) | (95,395,000) | (85,353,000) |
Repurchase | 0 | ||
Revaluation | 0 | 0 | |
Net foreign exchange differences | 73,426,000 | 0 | 0 |
Interest accrued | 21,689,000 | 11,892,000 | 26,250,000 |
Interest paid | (37,000) | (14,488,000) | (28,428,000) |
Total debt, ending balance | 1,928,782,000 | 284,087,000 | 382,078,000 |
Lease liabilities | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Total debt, beginning balance | 208,448,000 | 255,406,000 | 148,494,000 |
Acquisitions / Issuance | 116,248,000 | 55,820,000 | 124,196,000 |
Write-off | (78,321,000) | ||
Payments | (55,349,000) | (57,473,000) | (37,979,000) |
Repurchase | 0 | ||
Revaluation | 24,234,000 | (10,050,000) | |
Net foreign exchange differences | 7,486,000 | 23,610,000 | 3,085,000 |
Interest accrued | 17,488,000 | 19,456,000 | 17,610,000 |
Interest paid | 0 | 0 | 0 |
Total debt, ending balance | 318,555,000 | 208,448,000 | 255,406,000 |
Debentures | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Total debt, beginning balance | 335,250,000 | 835,230,000 | 406,538,000 |
Acquisitions / Issuance | 500,018,000 | 0 | 400,000,000 |
Write-off | 0 | ||
Payments | (177,826,000) | (400,000,000) | (11,815,000) |
Repurchase | (64,717,000) | ||
Revaluation | 0 | 0 | |
Net foreign exchange differences | 0 | 0 | 0 |
Interest accrued | 60,919,000 | 21,473,000 | 40,507,000 |
Interest paid | (12,386,000) | (56,736,000) | 0 |
Total debt, ending balance | 705,975,000 | 335,250,000 | 835,230,000 |
Fair value adjustments, liabilities arising from financing activities | 18,077,000 | ||
Bonds | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Total debt, beginning balance | 0 | 0 | 0 |
Acquisitions / Issuance | 3,691,262,000 | 0 | 0 |
Write-off | 0 | ||
Payments | 0 | 0 | 0 |
Repurchase | 0 | ||
Revaluation | 0 | 0 | |
Net foreign exchange differences | 431,250,000 | 0 | 0 |
Interest accrued | 74,798,000 | 0 | 0 |
Interest paid | (69,004,000) | 0 | 0 |
Total debt, ending balance | 4,128,306,000 | R$ 0 | R$ 0 |
Fair value adjustments, liabilities arising from financing activities | R$ 9480000 |
Cash flow information - Additio
Cash flow information - Additional information (Details) R$ in Thousands | 12 Months Ended |
Dec. 31, 2021BRL (R$) | |
Disclosure of reconciliation of liabilities arising from financing activities [abstract] | |
Non-cash investing and financing activities related to business acquisitions through accounts payables and contingent consideration | R$ 6381 |
Non-cash investing and financing activities related to acquisition of investment in associates through accounts payables | 97,009 |
Non-cash investing and financing activities related to acquisition of investment in associates through private issuance of shares | R$ 112642 |
Subsequent events (Details)
Subsequent events (Details) share in Millions | Jan. 19, 2022 | Jan. 06, 2022share | Jan. 04, 2022 | Jan. 03, 2022 |
Acquisitions | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Equity interests of issuer (in shares) | 19.5 | |||
Premium paid on purchase price | 0.35 | |||
Suna Controle S.A. | Minority Stake Acquisitions | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Proportion of ownership interest in associate | 40.00% | |||
Estratégia & Timing | Minority Stake Acquisitions | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Proportion of ownership interest in associate | 45.00% | |||
Etrnity | Minority Stake Acquisitions | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Proportion of ownership interest in associate | 20.00% | |||
AZ Quest | Minority Stake Acquisitions | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Proportion of ownership interest in associate | 5.00% | |||
Banco Modal S.A. | Acquisitions | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Percentage of voting equity interests acquired | 100.00% |