XP Inc. Reports 1Q23 KPIs

April 25, 2023 at 17:20 PM EDT

XP Inc. (Nasdaq: XP), a leading, technology-driven platform and a trusted provider of low-fee financial products and services in Brazil, announced today its 1Q23 KPIs. The Portuguese version of this release can be accessed in the Press Release section on the IR website. Additional KPI details and historical data can be found in our financial spreadsheet.

XP Inc. also announced today that it will host a webcast to discuss its first quarter 2023 financial results on Monday, May 15^th, 2023, at 5:00pm ET (6:00pm BRT). A press release with the results will be issued after the market closes the same day.

To participate in the earnings webcast please subscribe at: 1Q23 Earnings Web Meeting.

The replay will be available on XP’s investor relations website at https://investors.xpinc.com/.

1. INVESTMENTS

Client Assets and Net Inflow

Client Assets totaled R$954 billion as of March 31, up 9% YoY and 1% QoQ. Year-over-year growth was driven by R$125 billion net inflows and R$44 billion of market depreciation.

In 1Q23, Net Inflow was R$16.2 billion, down 48% QoQ and 65% YoY. Retail Net Inflow was R$15.5 billion while Corporate Net Inflow was R$0.7 billion.

Active Clients

Active clients grew 2% QoQ and 13% YoY, totaling 4.0 million in 1Q23.

IFA Network

Our network reached 13.0 thousand IFAs in 1Q23, up 6% QoQ and 21% YoY, maintaining XP as #1 independent distribution platform in Brazil.

Retail Daily Average Trades¹

Retail DATs totaled 2.3 million in 1Q23, up 2% YoY and down 13% QoQ, reflecting a weak equity market in 1Q23.

NPS (Net Promoter Score)

Our NPS, a widely known survey methodology used to measure customer satisfaction, was 70 in March 2023. Maintaining a high NPS score remains a priority for XP since our business model is built around client experience. The NPS calculation as of a given date reflects the average scores in the prior six months.

2. RETIREMENT PLANS

Retirement Plans Client Assets²

As per public data published by Susep, XPV&P continued to be #1 in net portability for individual retirement plans in 2023, as of February, while our Market Share still stood at 3.9%. Total Client Assets achieved R$62 billion in 1Q23, up 23% YoY. Assets from XPV&P, our proprietary insurer, grew 32% YoY, reaching R$48 billion.

3. CARDS

Cards TPV

In 1Q23, Total TPV reached R$8.6 billion, a 90% growth YoY, and 4% growth versus 4Q22.

Active Cards³

Total active cards were 832 thousand in 1Q23, a growth of 21% QoQ and 170% YoY, representing a 21% penetration in total active clients.

4. CREDIT

Credit Portfolio⁴

Total Credit portfolio reached R$17.5 billion as of March 31, expanding 4% QoQ and 53% YoY. The average maturity of our credit book was 2.9 years, with a 90-day Non-Performing Loan (NPL) ratio of 0.0%.

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¹ Daily Average Trades, including Stocks, Listed Funds, Options and Futures.

² Total Retirement Plans Clients’ Assets includes assets from XP Vida e Previdência and from third party funds distributed in our platform.

³ Credit and Debit Cards (Debit starting on 3Q22).

⁴ From 3Q22 onwards, the credit portfolio is disclosed gross (versus previously net) of loan loss provisions, also retroactively, not including Intercompany transactions and Credit Card related loans and receivables.

Non-GAAP Measures

This release includes certain non-GAAP financial information We believe that such information is meaningful and useful in understanding the activities and business metrics of the Company’s operations. We also believe that these non-GAAP financial measures reflect an additional way of viewing aspects of the Company’s business that, when viewed with our International Financial Reporting Standards results, as issued by the International Accounting Standards Board, provide a more complete understanding of factors and trends affecting the Company’s business. Furthermore, investors regularly rely on non-GAAP financial measures to assess operating performance and such measures may highlight trends in the Company’s business that may not otherwise be apparent when relying on financial measures calculated in accordance with IFRS. We also believe that certain non-GAAP financial measures are frequently used by securities analysts, investors, and other interested parties in the evaluation of public companies in the Company’s industry, many of which present these measures when reporting their results. The non-GAAP financial information is presented for informational purposes and to enhance understanding of the IFRS financial statements. The non-GAAP measures should be considered in addition to results prepared in accordance with IFRS, but not as a substitute for, or superior to, IFRS results. As other companies may determine or calculate this non-GAAP financial information differently, the usefulness of these measures for comparative purposes is limited.

About XP

XP is a leading, technology-driven platform and a trusted provider of low-fee financial products and services in Brazil. XP’s mission is to disintermediate the legacy models of traditional financial institutions by:

Educating new classes of investors;
Democratizing access to a wider range of financial services;
Developing new financial products and technology applications to empower clients; and
Providing high-quality customer service and client experience in the industry in Brazil.

XP provides customers with two principal types of offerings, (i) financial advisory services for retail clients in Brazil, high-net-worth clients, international clients and corporate and institutional clients, and (ii) an open financial product platform providing access to over 800 investment products including equity and fixed income securities, mutual and hedge funds, structured products, life insurance, pension plans, real-estate investment funds (REITs) and others from XP, its partners and competitors.

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," “aim,” "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond XP Inc’s control. XP, Inc’s actual results could differ materially from those stated or implied in forward-looking statements due to several factors, including but not limited to: competition, change in clients, regulatory measures, a change the external forces among other factors.