XP - Earnings call transcript Q2 2021

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Andre Martins

Good evening, everyone. Welcome to XP Inc.'s Earnings Call for the Second Quarter of 2021. I am Andre Martins, Head of Investor Relations. And on behalf of the company, I would like to thank you for your interest in our webinar. We hope everyone is safe, everyone is healthy. with but mean us today our connecting a necessarily Thiago good CEO. basis, quarterly we always you not I on Maffra, It's have with

and and have IR Constantino, also and CFO We team Montemor. Bruno myself Antonio Guimaraes Marina the

the available hand presentation your session right the Zoom tool We and for after can you will Q&A be questions. raise on the to ask

their presentation. the definition. That's our the legal begin disclaimer forward-looking to statements presentation, clarify refer and section the earnings please where we Before on

documents found All the of statements SEC the you why of that results. forward-looking interest. thank section might explain actual very the They filings the much our Again differ on from website. can for be the

I'll a will Maffra Olympic brief opening song [Video presentation. half this deliver saw to very for time with us CEO video remarks. show our CEO, the and year here to first is special of you Thiago call. the yours, So as of mean We as then project to participating the I the floor the for with pass very this Presentation] this upbeat first pass we as word the Maffra half of first the Maffra, a right and the word the our on and mood. message year I'll

Thiago Maffra

Andre. Thank Okay. you,

slide evolved last show our move years. for be of it. first Andre the slide. all to you I thank and with many the as One company's how my to the That's as mentioned is in happy you has Well here few here you be for time during years model come. the to more. First I'm participating our aim This earnings business expect first call. the Can to touch is CEO. to very

the and As XX the business. first we know very has May last for XP completed years you have focused investment years been on XX all

the far However, our expanded products in service years, two last investments. and the beyond we have

the trusted started we we of segment clients market on quarter preparing we high tells successfully involves satisfaction this in the XXX only that about Of are and to on penetrate goals, show X%. with costs expanding On in direction. XXXX. from entering the are next The that how center worth switching today blocks, our billion will translated our the XX we to a XXX Currently almost ambitious to verticals from have deliver It's billion difficult right level the box, generate company that three the new we the XXX NPS achieved left we which brand. mentioning for years. TAM current most and the which need by us our great billion

in Additionally, in disruption order have been Brazil. the that we to intensify engaging

of is we digital main been last in the that will years. the few enablers allow doing markets transformation new One the enter us that to we have

advancing. banking, Our that goal SMBs have is serve such allow for vertical scalable corporate to as to new On that market. context quickly solutions a and to us to lower time have to tech faster insurance from will are companies platform and cost

huge We investments our substantial see are to expect down financials new we these road. a increase doing on and verticals the in

of by Finally We to needs. Brazilian focus right companies. would universal their TAM reach, on and take new and embracing clients box individuals a the XP on level gained always

the and become the millions to markets one service service. the the transforming financial number keep in of beyond clients. financial one-stop all shop will Being for Brazil We investments should millions provider

KPIs. will Now show of I'll to financial pass our Bruno. He

Bruno Constantino

more quarter. main to to Great be I which highlights everyone. is Q&A Good Maffra. will the go here you of with you, interesting. of try we brief, much session, with Thank can pleasure evening, I the so start will one And more be all the to time.

asset very strong the closed as which Brazilian a the M&As market sense capital So I'm main can our broker-dealer four the video the we the probably slides. key to deals model a something that in to through showed of The quarter, access markets leverage the also highlights investments makes strongest independent we the the manager doing partnership to managers. the into to the a It secondary It market. helps democratize recently offices that's numbers following And our ever itself. by IFA growth going independent with development ecosystem. of capital announced Also to as the business and connected and again that those expect itself. of asset see we keep the go as you the liquidity and

with the with are quarter with Steps like we opportunities this partnership always for looking year in So we second and Giant Jive and announced that. Capitania, the

We also closed bond in the the July did the market Xst. quarter, deal We the entered roadshow first-time. in and liquidation the but happened only second

it to but of five Then that So strategy almost our highlight not access it's global is. quarter Management the I this honored considering business, and Euromoney was year market Latin community in years for a we that quarter, as And XP you're this the going think by Bank last non-existent. ago to XXXX segment our the as to the award we in this liquid long-term that received important see important something size in bond the Wealth this third in America. how numbers in to with brand have the think is Best awareness. We only that second

also we we long-term something ground went really is eager an when the and And society we sports established the us how these and about really received whole we year investor especially think partnership, to from Committee we as this can from zero and this as happy in these Olympic Andrea relationship relationship this mentioned are transform with good. So awards proud. Brazilian that are make keep the the Olympic Brazilian Committee,

the Now numbers moving to itself.

KPIs. you banking already. financial here seen the So new have KPIs, and only Investment the The and the KPIs KPIs is

We the left, clients, clients, the billion XX did a year-over-year investments especially Active few quarter estimate year-over-year. billion. XX% segment, as XX% the XXX of X.X or net XX here we in inflows Q&A BRLXX million some last the banking assets in these but of inflows. call of concentrated net chat than - inflows, have in mark the the strong a the private of growth KPIs, we in these more the billion very We asked fourth June what the billion reached around extraordinary custody in surpassing we increase to clients outflows as the Going someone had in three. last quarters under

a is net go inflow. every in quarter main credit volatile, KPIs banking middle, to in strong the of When more if you extraordinary bank, part it's X.X in it's but numbers. terms the credit anymore, quarter, we portfolio. not So not know it's these extraordinary, come our but There not the billion very

and small first it's X So with we end credit growth the quarter. low X.X billion, very and year-over-year. X.X We're the the and quarter growing at we a happy of second year, are the our When - ended of even almost and billion the then results card receivables strong We compare look when billion with in really above but the included reached expectations. the credit card, not last is quarter-over-quarter. we at

launched mentioned, approximately this net of card is adjusted lines, is right think plan. an adjusted billion you keeping almost for and the reached just about and net ourselves and income now one when a whole with the to quarter, Maffra and billion ratio TPV. as first able basically XX. on And BRLX same X% expectation is mark fast our mark income adjusted year BRLX and in of very were year EBITDA, the of this revenue, we of the that based BRLX.X IPO high - In net in billion your we in single record important half and we XXXX. everything adjusted single is of NPL card second And finally now credit one the all quarter credit the NPS, income Our and March mark in is forward number how because the the same keep the to officially one high of the X quarter thing total gross investments the collateralized on a quarter, of usually year. be did The financials, of your side numbers give example to year we billion launched surpassing

total when diversified translates my the And view to model components the billion X.X from what going growth, we look that we increase. in revenue it's have. X growth, to it's So, the very very billion we and to resilient a in X% went of at year-over-year

fixed income about talk to back retail and I'm from go net well. from our growth here we and much at the equities financial quarter institutional Retail, the I'm in going in in but as couple a quarter, of part talk XX% you business lot in about of the part going products income, features, represented really financial did before always just there income total the institutional our second retail. in and by business, is a results the look about the When the component income. in know, financial talk income mean we I revenues, let we instruments second And go main of more. and to the as fixed is me net of well representing the mention revenue So - it the the slides.

to take able BRLX.X We about which that as of to XP, is the are fading and rates, have hard recurrent growth reduce XX% BRLX.X So it's is constant. for instruments from that we segment, was new XX and the under revenue. tell second of rate I total part brokerage same. the with pretty Brazilian trading retail quarter take of as the retail custody, the Retail it's the get income almost income the in we everything from of can the always despite a It's the the much because add there products going much component Rico pretty the this the did some question of and rate assets services net but predict the the course when segment, the business the answer increase take revenue year total look this went to increase instrument, net going else you're itself way months, a take approximately mentioning, mass at billion financial what And revenues what's of last a happen at to is to from markets the to part X% part rates from our last lot by stable. forecast, co-related moving capital to flow of of of with that rates we online development with we Also we the in which year-over-year. losing take growing see the take rates, revenue as the came very is see. with I in the We secondary financial and

been X.X% getting So in pretty future, the that at to take banking expect our in has ecosystem. like and we stay the especially stable rate business with the much near traction

total the environment of in interest role And This in are - basically million revenue, here. record total market Going institutional an despite we an decided about decided of hit in in the important played fixed especially to XX% one this breakdown Brazil. we this the revenue. slide the Number we here, of income is quarter, topics institutional BRLXXX because the increasing one rates two to revenue. the talk

X% excluding directly have each the it's bottom component went And the inside all chart, about to In the of quarter. company, second quarter-over-quarter. first correlated our it selic correlated this worth than total expectation to at each grew this numbers the quarter rate. those more at XX%, the second rates. with year, you. it's XXXX quarter. the year of this quarter, end the in end period the and the think for But from and interest revenue Quarter-over-quarter sharing X.X% we of of the the At market XX% of increased compared institutional grew the with of the look institutional, of end when XX% income of revenue quarter average grew growth fixed I the we

those curve business So all for income helps numbers for fixed segment, with but I of the retail only segment, sharing the you. institutional also this steepening of worth and think not it's

going EBITDA, Now the the EBITDA to margin. and adjusted

BRLXXX verticals we SG&A growing technology, because to lot in the On on. it we new When and our the and had quarter SG&A. as at shared look going a people, basically of year The second is left, has million keep are ex-share-based total this so investing million. in last SG&A we year, in compensation BRLXXX the we

to we're important need pay is our and understand cost going advantage So business costs conscious, what and attention lot, a to lot we that have the highlight forward. growth very of operating competitive XX% is the a of we investing that as in despite leverage control a a we

and of net So last clients. we as see can year, our return SG&A total that you our offers a in percentage can prices second And revenues to as XX.X%. representing quarter

it the company. IPO, year, And this our headcount less XX% total XX% at net quarter went Second approximately of the to revenue. look At when we we in than had evolution from in people the IPO X,XXX today built on-board IPO number. a company. very more until have our than we That's throughout and we moment. Since people the strong till our have lifetimes

following to least for going quarters. keep hiring at the are We

from just we There the XP. a in As and leverage. XXX pool lot have our mentioned the are we in billion margins look as lot more billion to deliver Maffra BRLXXX billion. increasing see are do we the revenue a of of industry investments to is about done financial we headcount BRLXXX and at people able operating despite in all we When to growth, the opportunity

EBITDA in lastly, second the the You XX.X% quarter that net of last XX% can margin through see from year-over-year. Growth year. net than income year going of margin. and more And to income XX% this our

Revenue year-over-year. said it. I growth than billion I XX% go right it year-over-year grows in with income, everything And grows of structure business corporate shows operating went As because more the exponentially it BRLXXX more adjusted important lower even you of than already it tax on EBITDA the XX% a effective the very retail explain million because income all parts, to net on more you Then of we investment, despite and leverage most the based to just what a to from the EBITDA adjusted said. year-over-year place rate. of the go that growing the net even BRLX

very conclude and might have. you I number are Thank presentation much. my that, with happy to here you So, questions any we answer

Andre Martins

Great. Bruno, Maffra. you, thank you. Thank

Bruno Constantino

quarter next the to responsible going That's the presentation. be video Andre, the right. to is whole make target,

Andre Martins

goal. the go the Yes, We to That's definitely. directly Q&A.

Bruno Constantino

We go straight to Q&A. the

Andre Martins

I concise mean as was that - as gets. but Yes, That's we it concise.

So basis. been here on a we you first-come-first-serve call talk allowed you've to will -

team here Stanley the Morgan the have We on first place.

either it's think Jorge Dohenia or Kuri. So but I believe Kuri I it's

Bruno Constantino

says here. he Q&A. It's on Yes, Kuri the

Jorge Kuri

everyone Hi. Hope doing great. extraordinary is Congrats the on quarter.

one reading Q&A. you that in my question was actually sorry, on So Bruno, the the were

Bruno Constantino

I didn't know what it is.

Jorge Kuri

are them and recurring. that called keep one-timers, inflows much but delivering been expected have they You better than have

your at network, so of higher one-timers a is this next it ago of over The possible scale months. have you year what XX And they a what very hold few XX would next back you multiple brand XX is rapid now What think this shouldn't months growth to you may really IFA over saying were the continue the to and what and inflected at growing from that pace. a a much it level AUC a is of pace even larger which growth awareness. that given was

Bruno Constantino

Maffra we it's to basis, the penetrate it's hardest think quarterly as the when Investment business - market. mentioned, of Yes,

inertia out an of there sometimes to on inertia. people is that there tailwind So depends get

market. four between past always three we we That's am is I to net question. there. and as the billion quarters, type the out showed volatility quarters billion the answering So why XX conservative But strong of per mentioned, we in that I you're of best month considering to inflows that right had XX there say

market quarter. be per those hit So billion more inflows in of the segment the more than we segment. taking corporate XX I into without rather billion that not or month second account Even XX private and concentrated in more conservative here the

keep look presentation, way in is I the the X.X%, of still not we I to in at brand awareness, what history the video, do below is period We Brazil, ecosystem in going a up equity adding more yes investments. despite profile in of the cross-selling rates that and alternative that momentum could you interest a in see expectation our to deepening, graph have I financial X% of products now never capital it's democratizing international terms classes. the double-digits. longer products. component the that underpenetrated in for We for of and you clients as of private mentioned in When the our in asset going invest stop there of the the access to venture that see see can we type type really it's those is think invested So terms showed funds different in access, that and Brazil,

that what momentum keep point, inflection this what is Jorge. the by there think hard know do say don't probably going, I inflection point, to I you but that will the So mean it's

Bruno Constantino

Bruno, Thanks, on and the right. the and new congrats quarter in of congrats great appointment luck the Thiago best All on and again role.

Bruno Constantino

Thank you, Jorge.

Thiago Maffra

Jorge. you, Thank

Andre Martins

speak Kuri. you you, soon. hope We Thank to to

Next we in BBI. line Otavio Bradesco from Tanganelli have

Otavio Tanganelli

me? Hi, Andre. hear Can you

Andre Martins

Yes, can. we

Bruno Constantino

Otavio. Hi,

Otavio Tanganelli

the a my revenue and taking trend. I for wanted little strong Thanks congratulations the quarter. very question understand on to better

So was base on one that impressive and for thing a that see the phase margin was we expansion such cost especially via scenario on. competitive so the me pressure in particularly

or Thank of So really is seeing there of that forward here higher positive the I to revenues wanted I evolve you. in whether margin and gross share going revenues. terms in on we're should that how that was are because understand sustainable that, levels mix not a the such it get your competitive non-commissionable scenario? of views

Bruno Constantino

Look is there strong. was gross revenue the

almost gross investments the margin You're of terms But margin, And in expansion this network making there. a XX% year-over-year year IFA correct. our last quarter. is XX% bit than been these little the gross from in we have to compression margin we had more in of

the it's investments, in see related the albeit that our have we commission made those that expense investment So can in line you the box and is there. to

business. than in mean leverage a but see mix a it's about more even don't there, know the leverage the is the and given platform would there lot, have revenues company, year-over-year, the us I it much growing because gross pretty keep operating non-commission where the operating wouldn't then I have leverage clients it's leverage all grew say stronger revenue base I the and the products an said in margin. So commission that and flat we leverage. of an operating our of as you it's that is of the I serve structure marginal the margins line operating you and more the have grew SG&A but when we operating all gross margin EBITDA is course in much to right, the there more

Otavio Tanganelli

is just there. Bruno. is you, question opportunity I IFA get get may announced of recently stuff, Yes, We whether acquisition market a BXB this the it I forward going little good but on you network, your wanted One How additional Thank of that the if see to your opportunity then the lot bit saw views do I the in a about comment terms views to you not? market. do see or going here. BXC of how wanted you [indiscernible]. a

Thiago Maffra

take here. me first you to want Bruno Do the part,

Bruno Constantino

ahead, Go ahead. Maffra. Go

Thiago Maffra

Yes, market. up financial the see number I deepening X,XXX that's next say, go the XX,XXX and in accelerating about three to And look next today, We when we have believe would happening in the Brazil this in how IFAs few can that, we years. do IFAs we we see like years. the in

as we we room is next BXB see grow of look I and see the the times them network years. mentioned the So market, the you three BXC deepening believe IFA and few growing accelerating in to this financial there when because we both

acquisition. like lot to the about there [indiscernible] a and of is So grow room

people in Brazil. [indiscernible] the that very XP education teacher, it's company how to as invest we us product saw. in important. was the equities born an For first was teaching first was that

you it's about in our and when important to acquisition, have keep our like think a education investment will to to content clients. So education. we invest it's have very and solid in give like information to DNA And content

we help strong digital execution again part see BXB. the BXC should of strategy in So both content to content, very growing of business. is basically the our them the true What and have

Bruno Constantino

as thing about an to just one think ecosystem entrepreneurs, and say our you [indiscernible], and for more strategy of Yes, right. XP

like entrepreneurs entrepreneurs lot distribution using that leverage ecosystem are - our magnet capability the a using can we and attracts ourselves their So in as own as our and business well. we entrepreneurs all of those

we from managers is [indiscernible] be When So it's are pavement stakes. we those the They stakes, so independent. become we a that be going it's still acquisitions, acquired asset successful be win-win the our them to stake through side we entrepreneurs. going make can the in on said And a situation. have. more profit But help as they the minority win-win their that minority to - ecosystem because equity situation also I can as and

sense. makes it So

doing It have than And done went past the to up a The the that We I price. give ecosystem complement to considering the - right the COGS we as numbers. we're the future just more strategy. was in in have and XX% to commission looking needs year-over-year. inside our to keep only at commission going part commission

that grew So said the to total of related and mix as product. growth is then it's grew XX%, really like it's so basically revenue commissions I related XX%, of the difference the

Otavio Tanganelli

clear, Bruno, guys. Thank Super you Maffra.

Bruno Constantino

Thank you, Otavio.

Andre Martins

question Goldman So our from Sachs. is Mr. next Tito Labarta from

Tito Labarta

the big you Bruno color more I appointment, do mean Andre. you that credit What you take give can hard some have type earning any get rate. often evening, and Thanks, get. but to on know provisions NPLs the the type you involved. congratulations My could rates but expect are zero, impact, know positive mean over NPLs would strong is credit rates. on assume on a your mentioned of of you it's what to there's impact Maffra you the portfolio time the and this. like interest and everyone. the question I expect I I how but and on this predict, I and on take portfolio Maffra. specifically results Good Bruno question on

and how potential similarly you on take estimate So on take to credit TPV, rate can any trying a there? color your the card just would rate give much that benefit credit portfolio

Bruno Constantino

Tito. Sure, Yes.

base, revenues by numbers not I low quarter-over-quarter, card quarter-over-quarter. but what they related it's bank we more grew credit the the related banking than the segregate banking of banking, XXX% you, can tell the a the disclose facts mean the relevance, First credit, and the and but do I

So it's a growth. strong

is products ecosystem whole of the the obvious supposed rest terms It's our of started but brand is have the in the new In growing, here. business we thing for more grow to reasons. even banking a than that

So the relevance of it total should as down the growing move breakdown as the further road. revenue, the we keep

by that's constant one increase associated with necessarily custody that thing. basically a So revenue. and And itself thing the take because that rates else and everything is not there

points So to these we services of going have, some do going we roll accounts out the bank already and we basis full the not products. and have the increased we're with we there with for okay. year, to to business credit clients, ready are that banking few card as And employees we did but have digital yet end this

growing custody to in the and expect of expected the not we to broker-dealer but custody custody course that's that to funds, business number, the In the about in that's and custody, our well, services keep we do custody, they not of of adding going I do to having that important thing we because a In as keep insight not do administration consider despite we reduce. the from banking have XP, but do in trillion yet have institutional as another also that some it's assets BRLX So not to that under and retail product, is administration custody custody. revenue, and custody pension mention. clients growing under institutional the math our not of it's consider AUA our we reached RPPS, talk the assets mentioned custody

the said asset rate the from of is answer or funds banks is in income is I and fixed skewed of those We So prices. some hard price expect alternatives you I do still going still I the into before, equity not is skewed in fees. I compression They funds be high directly, managers affect much this speaking said, not compression the platform the too deepening more our do financial in forecast incumbent same mix terms It's always that we the flat fees believe, would way. charge us that's believe under-penetrated to It's is platform. multimarket into high it management there because in and take as why management the to is and our there. Brazil generally as charge

to I the it's of of is keep had revenue positive the So role in the fixed the pool, still present what have more we it's the mean growth, no because of in interest about macro underpenetrated going macro growing relevant our this matter of for relevance tailwind because it very take movement it's market business the model, said the expect independently in not asset our resilient but a I've think total equities allocation income low the stable, rates that is, rates in we to environment terms environment. going up, if of should revenues, our in revenue, total when past, as

Thiago Maffra

credit card to add, just TPV. the Yes, Tito, asked about

are are the a are target, client with loud just BRLXX,XXX. that there We are not to-date, out clients you us card to or opening credit XP but give only the caller above

would than flagged say So XX% we our look look XX%, at Rico, I you that's XP. XXK of when imagine them clients, less the when you clients

the So in room in of like next the to TPV see quarters. there is a growth lot

Brazil the the You one credit really in can we few always And want XP main at fast. players of cards years. as in to be of TPV next the expect to up with [indiscernible] go

Bruno Constantino

we of is And did here the scalable everything terms the way in behind it. things technology factor the

we three the it want for use to. brands can we So if all

So that's way deal the we things.

and better and have of needs many executes folks long-term millions scalable doing, get deliver everything Of about in the think and strategy, the future. be course when to we that's been we we but exactly for to need clients test, what the listen clients to

Tito Labarta

Bruno could Thanks, Maffra. helpful. very just I and follow-up That If Great. one was ask then.

I You the the think mentioned you I is market mean for thinking clients billion, just today. had BRLX.X higher end do for the client which servicing How clients yet of about and addressable million addressable about fully on you you addressable your more BRLXXX have think clients. the market market

Bruno Constantino

good back a in that's Yes, first my point. two XP years look talk. When as back I mentioned you

been products. investment that savers. very And are have focused products, We have need you on people only when you money investment

moving forward start Then start digital you and like to go to move of your payments, credit, wire can forward you to down target once account. will increase you So to clients. the like

sure clients increase few the XP a can of target to you compared for ago. So expect years to when

Tito Labarta

congratulations and you Thank again. Okay.

Bruno Constantino

Thank you, Tito.

Andre Martins

Thank you, again. Tito. Great to from you hear

I - Gruschka]. didn't one second. So just now I hope [Steffen

let Gruschka hope I'm name. I Just your me Steffen not really disable. mispronouncing Welcome.

Unidentified Analyst

Thank you me? you. hear Can

Bruno Constantino

Yes, ahead. go Please Steffen.

Unidentified Analyst

job Well, great you name all, It's a perfect. name. first a Polish German in spelling. did with It's my of a

you assets is being funds. this great under did a custody of a questions part numbers. got which it you how few extremely you and income would the And give and part Can thank equities very they that? split. congratulations is fixed also which of set for mean it I color about So us smaller you. little I've your of one well. first And much for

Bruno Constantino

on on of relevance, vary the quarter-to-quarter. on depends income those depends - and be platform, I as And would most so of fixed but can the Yes, equities total, not exact as But market Steffen, it would you it's of funds is it and well total you give the from equities, do relevant not it we in the but general, order and the part custody. equity, will tell three the fund's together because ballpark say fixed What income. I the prices breakdown. is the know, the

Unidentified Analyst

Okay. Perfect. much. very Thank you

Bruno Constantino

or you the And multimarket have equity inside fund, fixed funds funds income divestments. breakdown

Unidentified Analyst

you very Thank understood. much. Perfect

question IFAs. second the The of number is

now, years. you right, correct? I have few and think to say meant you I think XX,XXX it continue you Is grow in XX,XXX that you to to expect misspoke

Bruno Constantino

said I market it's when the Yes, XX,XXX the years. in XX,XXX next in and few

Unidentified Analyst

XX,XXX Okay. With would of? share like kind have you of market still of IFAs were still XX% a

Bruno Constantino

has cut about has Yes, costs in profession for past of important a what and the said point it banks here incumbent roughly. that The Maffra is few like IFAs, close we everything my Yes, when opinion that discussed to expect grown branch. at we grown keep a And roughly. least in we most to this think years. especially needing the have the lot the lot,

on. and seeking for also network market the IFAs other in deepening financial players and our IFA looking and IFAs. So going hiring for the is new And

the So Maffra growing I will think years trend next that's as mentioned. keep a into that

Unidentified Analyst

with agree many way a the you I'm slide IPO IFAs liked That's chart in asking had you you a how with you. I of completely the that We why had had. around where

So about one the more when have discontinued about profitability I asking of was question number. you segments. I the And that

kind with I of come then revenues. And parts. the institutional XX% can correctly, bit little of the relevant of the you I think segment, say profitability understood other of which about if profits are of XX% you two first services, retail a from issuer and

Bruno Constantino

do about our SG&A, not Unfortunately, when we we think ecosystem the by the disclose there profitability because all segment, infrastructure the especially to serve of the is of segment.

segments, the same either they the the retail most are and served by institutional So cases. of in infrastructure

numbers. our whole is a look reported and we in at the profitability So as

Unidentified Analyst

this you I Thank answering much. Thank Thank Okay. very understood. much you you. for questions. very

are here. in We Germany

have wait until We midnight. to

So it very have late say. really much. Thank I that you to was

Bruno Constantino

in for call, participating Steffen. you Thank our

Unidentified Analyst

you. Thank

Andre Martins

a so of the much, to call you more let us Always to you. will our be And dynamics detail. we you IR thrilled some need good countries. Thank hear we company if follow-up Steffen. can different you Thank walk the from context through know through of please

Bruno Constantino

Thank that. love much. would very I you

Andre Martins

good one. Last from least not HSBC. Have we have Good evening, a Neha Neha. but

Neha Agarwala

hear you me Can evening. Good fine?

Bruno Constantino

can. Hi, we Yes, Neha.

Neha Agarwala

talk for wish Thank to the on we joining congratulations call and quarter. Bruno, for Thiago blockbuster today. And you to Hi, role congratulations and the often. new the

of look was income retail of the you I to questions of the which are wanted related segment. it a And solid this income the relevant answered, the the financial the for more becoming said financial by revenue, driven you of earnings financial my but the XX% breakdown bit performance. if at has quarter been I for your has and total more the upon and think big part that Most very income growth revenue revenue.

can well. but project Banco know provide, think projecting that And should we portfolio So related growing good has if what this I you is on I that understand my how about that should projecting second that know limited very the will think a of do to analysts be color the very very we revenue, but for factors XP. continue question to part it. about that and us are line. there's loan how is we helpful we been

are of if you loans What So of that loans us card very rates credit the credit are for of for but loans. us. that kind you you rates the charge some for still be and the some what of are the what see are cost, sense the can you charge will that what give cost helpful the is rates that you. what the risk is card unpledged Thank pledged the small, for also and

Bruno Constantino

It your net related the products of growth market. growing secondary I the is in and income understood the Because I what that from instruments was. related way So, the if should of think is about yes, markets the financial secondary the you to looking believe growth new comes to question forward that's and market. to the correct business

as you traded one some for I example primary is funds market, more was well liquidity XP give by being of you helps and market, the to as in market the doing develop the of and REITs, the have the And products capital said, that's will trade. you That's REITs non-existent ecosystem. the the that and offers have then markets the we in help the but past example. thing that primary Brazil reinforce solutions and the only itself, beauty one I of development industry examples other you So also REITs more like not secondary in the that especially to funds

you DDR, the bonds have being You traded. income the have fixed corporate

flow. business All of of that - when a it's

existing our business business into these for have ecosystem flow active and bringing new clients custody the And also the clients to and the thing important enhance liquidity under experience brings other of it's of one. in assets secondary trading. in order of clients our in money to one the we So in this offer do products demonstrate, more to that keep terms our as

rates goes which that that if interest interest in is up the related basically And rate, is like about net balance income by that custody, instruments. net directly this to into there said of to think go increase the So to related from component the itself the of additional custody one volume growth the way the related it's from to is that related to goes because income and financial it there. up, the financial Having flow. revenues related business should goes is floating floating if instruments trading it's the then it's I'd that to the also

the do the Right credit they the card now credit in profile Regarding the revolving our rates. of not use of clients, card. part

have, So that something not parts for plan, the rather brand it's above mentioned now future when brands broader and profile then of if we but course in client XP BRLXX,XXX revolving only the above that in aiming clients as going the we a on change the not business can considered public than to invested, other we decide this Maffra equation of forward. the have accept our dependent

Neha Agarwala

we products the bank or will in other have that we know in next of you give end you should pipeline your for the on do next the two. Could XP. for products the you that Understood. expect the digital your this two? you Banco year accounts pipeline year, that other any but mind year for I by vision have mentioned share us or What launch

Bruno Constantino

we When There one credits, different and thing, When about think think we huge about we are other is specifics. individuals thing. it's a companies, about SMBs think there when pipeline. segments and

is So huge. the pipeline

We investors, planning day with analysts. sell-side to have are these strategy

a give as digital Maffra the more full the and complement And the if we accounts have little We keep been if doing. the the have we what can before different credit we account It's level high to. mentioned by cards color. end to complement will can is thing bit this scalable. with important we the architecture, of he I that's wants, adopt want of are experience I going year. to then foundation some and the So can but brands then digital

So anything Maffra. business it's decision about but than else, the more

Thiago Maffra

I we pillars would we next way like answer like different the are to have explore going in in quarters. that three a main

we include Bruno credit, as banking services first to mentioned, and quarters. have can credit The card general in digital is And payments going cetera. lines et you next different are one the in credit account, include

are on working We already that.

We have on that are few to soon of going we working quarters some them. announce for been and a

we on to insurance insurance. for have have And We just that from SMBs corporate the is all increase the to today. companies this companies. thinking one of range They third

like company. of this products are on We going focus to a develop lot

but going the give we to quarters the and upswing a it's big So to going Day, for are Brent on mentioned product quarters it's that color for are a next we each better launch of for sure our the next Investor roadmap years. that

Bruno Constantino

a We of do. work lot have to

Thiago Maffra

Yes.

Neha Agarwala

you your I'm Great. Thank much. and forward about that. strategy day more so to looking then hear

Bruno Constantino

Neha. you, Thank

Neha Agarwala

Thank you, Thiago. Bruno. Thank you,

Thiago Maffra

you. Thank

Andre Martins

Thank Neha. you,

So any have we don't raised other here. hands

we that schedule convenient. conclude So whenever call. with participation. available and always XXXX Again alert team the is of calls IR Thank you earnings second with you our quarter all to is the for

you deliver then Bruno, messages any and So, Maffra. would closing like to

Bruno Constantino

I already Brazil. to traded following the probably are next, something call. Maffra would have like before earnings close the just our in going our to call important DDRs It's Yes, mention the being BX shares for be meeting that buy to next before us a may will because if already consequence they that's of and market retail to able to directly investors the in announced that Itau our the deal of Brazil exports. want through we

Bank and Brazil. transaction and DDR now traded Central has to third General expect it's going we in quarter at both Meetings, know of matter the you everything end And approved. the this have these be to it's the approved pending moves a but completed by assuming to being still needs export, year, quarter in Meetings third is have the and As is XP General that approval time of

Now for Maffra, can you remarks. closing

Bruno Constantino

that We believe would quarter. we in have like to years. we you all results and about us pursue delivering say the only being the are this great that X% should market thank just addressable I of for we Yes, despite with here again next the that

the beginning as So with next I'm are the here all always we only and excited say guys you we to be for at very year.

thank So you much. very

Andre Martins

you. Thank

Bruno Constantino

care. Take

XP (XP) 4 Aug 212021 Q2 Earnings call transcript