XP Reports 21% Asset Growth to BRL2.1T, Launches BRL1B Buyback
Client assets grew 21% year-over-year to BRL2.1 trillion in Q1, while gross revenue rose 8% to BRL4.9 billion and net income climbed 7% to BRL1.3 billion. XP unveiled a BRL1 billion share repurchase, approved BRL500 million in June dividends and maintained a capital ratio of 20.7%, despite a 100-basis-point rise in its 34.6% efficiency ratio.
1. Q1 Financial Results
XP achieved BRL2.1 trillion in client assets, up 21% year-over-year, driven by strong net inflows in retail and institutional segments. Gross revenue increased 8% to BRL4.9 billion and net income rose 7% to BRL1.3 billion, while diluted earnings per share grew 9%.
2. Capital Allocation Initiatives
The board approved a BRL1 billion share repurchase program targeting undervalued stock and announced a BRL500 million dividend payout scheduled for June, reflecting confidence in cash flow stability. This marks the first dividend distribution since the new capital management framework initiated last year.
3. Balance Sheet and Ratios
XP sustained a robust capital position with a BIS ratio of 20.7% and return on equity of 21.7%. The efficiency ratio widened by 100 basis points to 34.6% amid increased SG&A, and risk-weighted assets rose 3% quarter-over-quarter to BRL122 billion.