XP(US:XP)2025-11-17 23:00Financial Data and Key Metrics Changes - The company reported total client assets of BRL 1.9 trillion, reflecting a 16% year-over-year growth [4] - Gross revenues reached BRL 4.9 billion, representing a 9% growth year over year [5][18] - EBIT increased by 10% year over year to BRL 1.3 billion [5] - The return on equity (ROE) was 23%, remaining flat year over year [6] - Diluted EPS grew by 13% year over year, reaching BRL 2.47 per share [24] Business Line Data and Key Metrics Changes - Retail revenues amounted to BRL 3.7 billion, showing a 6% growth year over year [18] - Corporate and industry services achieved a record BRL 729 million in revenues, marking a 32% growth year over year [18] - Life insurance retail premiums grew by 25% year over year [13] - Credit revenues increased by 11% year over year, reaching BRL 83 million in net interest income [13] Market Data and Key Metrics Changes - Retail net new money was BRL 20 billion, a decrease of BRL 5 billion compared to the previous year but three times higher than the last quarter [7] - The company maintained a 10% market share in capital markets distribution [15] - The wholesale bank maintained a leadership position with a 17% market share [16] Company Strategy and Development Direction - The company aims to become the leader in investments in Brazil by enhancing client service and introducing new products [3][10] - A focus on high-quality wealth planning services for clients with varying asset levels is being emphasized [10] - The company is transitioning to a fee-based model, which currently accounts for 21% of total retail assets under custody [11] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the challenges faced in 2025 but expressed commitment to evolving the business for growth and profitability [4] - The company anticipates continued growth in retail net new money, targeting around BRL 20 billion per quarter [9] - Management highlighted the importance of maintaining a conservative risk profile despite strong performance in wholesale banking [25] Other Important Information - The company repurchased BRL 2 billion in shares in 2025, with a new buyback program of BRL 1 billion announced [23] - A dividend of BRL 500 million is planned for 2025, representing a 50% payout ratio based on net income [23] Q&A Session Summary Question: Expectations for wholesale business performance in Q4 - Management expects good performance in Q4, with stronger results anticipated compared to the first half of the year [26][27] Question: Details on the strategy to increase the warehousing book - The strategy involves holding high-quality assets and managing credit spread volatility effectively [27] Question: Clarification on corporate revenue increase - Corporate revenues are closely tied to debt issuance and hedging solutions, with strong performance expected to continue [30][44] Question: Insights on retail revenue growth despite fixed income contraction - The contraction in fixed income revenues is attributed to a shift in product mix and shorter durations affecting take rates [31][33] Question: Impact of workdays on revenues - Business days positively impacted floating and trading volumes, offsetting declines in equities and fixed income [49] Question: Use of AI in client advisory services - The company is leveraging AI to enhance advisor productivity and improve client service, particularly for lower-income clients [51]