Financial Data and Key Metrics Changes - Client assets reached BRL 1.22 trillion, a 9% year-over-year growth [12] - Gross revenues totaled BRL 18 billion, reflecting a solid 15% growth year-over-year [12] - EBT grew by 26% year-over-year, reaching BRL 5 billion [13] - Adjusted net income for Q4 2024 was BRL 1.2 billion, with a total of BRL 4.5 billion for the full year, representing a 17% expansion year-over-year [13] - ROTE was 28.7% for 2024, a 376 basis points increase compared to 2023 [13] - Adjusted diluted EPS grew by 16% during the year [14] Business Line Data and Key Metrics Changes - Retail revenue posted BRL 11.791 billion, a 14% growth in 2024 [56] - Fixed income revenue achieved BRL 3.447 billion for the full year, marking a 49% growth [56] - Corporate and issuer services revenue reached BRL 2.289 billion, a 45% growth year-over-year [58] - Life insurance written premium grew by 44% for the full year [35] - Retail credit NII posted 79% growth year-over-year, marking BRL 81 million in revenues for Q4 [38] Market Data and Key Metrics Changes - Net new money in retail reached BRL 20 billion per quarter, with a total of BRL 103 billion for the full year, representing a 45% growth [20] - The corporate credit market share reached over 50% in secondary trading [41] - XP's market share in institutional broker-dealer services was 16% by the end of 2024 [42] Company Strategy and Development Direction - The company aims to enhance its service quality, product innovation, and sales channel expansion while maintaining strict cost control [10] - A focus on cross-selling initiatives and expanding the advisor network is emphasized for future growth [20][30] - The strategy includes leveraging technology to improve advisor productivity and client engagement [26][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2026 guidance, with expectations for continued growth in net new money and revenue [15][82] - The company anticipates a double-digit growth in AUC and revenues, supported by fixed income and new verticals [48][49] - Management acknowledged the competitive landscape with banks but indicated that they have developed strategies to compete effectively [104] Other Important Information - The company distributed BRL 2 billion in dividends and has an ongoing share buyback program [71] - The efficiency ratio improved to 34.7%, reflecting better cost management [64] - The capital management strategy aims for a BIS ratio between 16% and 19% [73][124] Q&A Session Summary Question: Capital or BIS ratio increase - Management explained that the increase in risk-weighted assets was primarily due to market risk and the expansion of the corporate securities book [96] Question: Internal advisors' efficiency - Management clarified that internal advisors are more productive due to better management and technology support compared to IFAs [92][93] Question: Competition with banks and regulation - Management noted that while banks have advantages, they have developed competitive products and strategies to mitigate these challenges [104][105] Question: Balance sheet and market-to-market impacts - Management explained that the market-to-market impact was related to government bonds and not the warehouse books [113] Question: Capital generation and payout ratio - Management confirmed that they expect to maintain a payout ratio of more than 50% while managing capital growth effectively [122][124]
XP(XP) - 2024 Q4 - Earnings Call Transcript