Financial Data and Key Metrics Changes - Gross revenues grew 17% year-over-year, reaching BRL13.3 billion for the nine months of 2024 [2] - EBT posted a 25% growth year-over-year, delivering BRL3.7 billion [2] - Net income reached BRL3.3 billion, expanding 17% year-over-year, with a record high of almost BRL1.2 billion in the quarter at a 27.5% margin [2][46] - ROTE increased to 28.4%, up 258 basis points year-over-year [3][53] - EPS reached BRL2.18 per share, marking an 11% increase year-over-year [53] Business Line Data and Key Metrics Changes - Retail revenue posted BRL3,494 million, a 15% growth in nine months 2024, and 10% growth year-over-year [36] - Fixed income revenue saw a 56% growth in nine months 2024 against nine months 2023, and 31% growth year-over-year [36] - Corporate and issuer services revenue reached BRL552 million in the quarter, representing a 58% growth in nine months 2024 [38] - Corporate securities achieved BRL23 billion, a 79% growth year-over-year [26] Market Data and Key Metrics Changes - The company reached BRL31 billion in net new money for the quarter, representing a 124% growth year-over-year [8] - The retail segment contributed BRL25 billion of the net new money, indicating strong performance in retail investments [9] - The company maintained a 50% market share in secondary trading, positioning itself as the market leader [25] Company Strategy and Development Direction - The company aims to become a leader in investments, focusing on retail and private banking segments [8][14] - Transitioning from a product distribution firm to a service provider is key for differentiation in the market [14] - The strategy includes enhancing the product platform, expanding the sales force, and improving service offerings [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the 2026 guidance, citing strong execution and growth levers [5][55] - The company anticipates continued strong demand for fixed-income products and a robust DCM pipeline [88] - Management highlighted the importance of capital discipline and efficient operations to maintain competitive advantage [5][48] Other Important Information - The company announced an additional BRL3 billion for dividends and share buybacks, aiming for a payout ratio above 50% until 2026 [4][52] - The efficiency ratio reached a record low of 35%, indicating improved operational efficiency [42] Q&A Session Summary Question: Increase in advisors and profitability guidance - Management confirmed that 300 out of 400 new hires were B2C advisors, with regulatory changes affecting total advisor counts [62] - Long-term profitability is expected to be in the mid-to-high 20s for ROE [64] Question: Capital allocation and RWA growth - Management indicated operational leverage in RWA numbers, with expectations of 50% or more payout in the next two years [70] Question: Orders decrease and one-off events - A one-off event related to bond tendering affected the other revenue line, but average levels are expected to return [75] Question: Fixed-income revenue growth sustainability - Management expects continued strong performance in fixed-income due to high demand and a robust pipeline [88] Question: Competition from large banks - Management acknowledged increased competition but emphasized the company's unique value proposition and strong client satisfaction [126]
XP(XP) - 2024 Q3 - Earnings Call Transcript