XP (XP) 10 Aug 222022 Q2 Earnings call transcript

Okay. Hello. Good evening. Good afternoon, everyone. Thank you for participating in another earnings call of XP Inc. Quarter Second the for of XXXX. now Martins. Andre I'm I Relations. am Head of the Investor Relations our here as Maffra; Investor Antonio. joined I'm CEO, well Marina today the Constantino; And Bruno by Thiago and CFO, and as Team, our hope I is safe. everyone And on Investor well Relations already the the this are from materials result website. There find Inc. filings of SEC can you XP the differ forward-looking results. of definitions forward-looking the actual and how statements from of and statements this call can being highlight as well translated is to to call Portuguese. important It's this that

Zoom questions seven in change you to session, can can end hand So [Foreign you will that your use And to of have and you raise can your hands Language] I call tool see we Portuguese. on use highlight – raised the that at the to here. also first-in, important a basis. already we can for you any the first-served

So for thank participating you already.

to earning move off I'll Hi, Now kick Bruno Bruno. to our call.

Good be believe, Hi. time hi, Hi, a quarterly results. everyone. And I for, It's you to Thanks, Maffra. the terms with of evening. pleasure in Andre. XXth here

I'm the As to presentation, we the so be many in hands, brief go to have right. as can raised we Q&A going already usual

I like a with to we presentation, video start share the you. Before would

here from last are steering a experts little bit that we We had the hangover week.

go Yes, the come I So video. I let's Presentation] for video hope [Video the back. then and you like

are recovery on to personnel It's a it's it XXXX expert. the People already days. like made It you're pretty, from for I'd opportunity event. take the the easy, We happen. still are in said, working but really expert as – intense And saying not. that I seems all very thanks

of in it we COVID. to amazing And this time long without three we virtual, also year virtual really year finally, a was and did only in because back. XXXX after presence in takes plan came everything. the years it And event XXXX So

our we headcounts a numbers really in the because was have we you and transformation in disclosed initiatives great. in of during and special everything expert like was contact terms first that have And at as than asked expert internal and an expert, time employees was XX%, our already lot many that to this it We their in new their that. one people know been hands their that a only really, first more of So with raise investing. the how the growth event

energy the good. So really was

before Just to the sharing we presentation. that

Andre? So

Fair enough.

Let's move quickly here.

lagging points first five – a main effect, highlights selected I the So we here. and main the have if have okay,

The the first one is resilience, business new here. not model

IFAs highlighted here approximately semester stage quarter. R$XXX markets, give what deliver time strong We a built been more of We've call And control. as quarter every to of about second very record we about also a under we that year, initiatives. first are this added doing discipline, stage, investments very we entrepreneurs of cost that costs with also investments same in our investment year the but tough has card and all insurance early a a we invested credit verticals margin plus verticals, I grew the a together by the new diversifying revenues retirement they tough stage have we XTAGE, scratch the early builds a first business, been digital nation. million those a about quarter-over-quarter mean, even we about growth, initiatives, there not keeping in stream. huge platform growth we range I'm in especially, our together is our to in to kept revenue XX% investing quarter and upfront, the are scratch early disclosure the healthy strong XX%. the were get credit, we we quarter-over-quarter. as not EBITDA The two, yet. these all-time-high in and an in platform above impact very asset adjusted the the growth this X%. the environment an new funds do we've year-over-year, Brazil. everything the hit expands margins quarter, from adjusted verticals of believe investments and the and financial lot highlighted able mean they banking and environment to that the opportunity retail new more going from credit, to we R$X.X Last by the internal we paranoid and those that December, get direct keep and repeating know been new I'm talk growing We top macro advisors margin, year, international scratch a landscape that of there from XXX% verticals and as as advisors in our above But with it, while. been the in the to concentration numbers, investment XX% our all with investment going also XX% revenues, are these despite considering and plus have quarterly also second disrupting and in upfront, environment, macro even revenues, is internal bare billion high talk more net We and macro that We've impact Number

the to expect four, of forward. Number we keep have lot And products. like XX%. that quarter we second a going new above So delivered

And the of international keep are need investment platform. the getting products digital very those depth clients, the most I finally, by as the better, evolving to card, asset bank rewarded as from got crypto, our company innovative the financial but Valor Inovação. it. service account, direct platform course, we delivered we the And we feedback of proud getting the exchange digital and and We the mentioned,

know lot to We We yet. it's a accomplish, of are very have of type recommendation. we have get but conquered always We not that. still proud to anything good this

and just the to I'm XTAGE. development, those I'm recent Only about talk two. to platform next going international the Moving investment going slide, to direct

believe our Here, beginning the of business. our be this we internationalization of can

everything et are your the is more FX money, Because then app your you move with We already to than embedded why and your always invest open that want about use group, Brazilian [indiscernible] really you To are start the that you're Brazil, XX,XXX clients to that? those the and here from as something XT you that that two can equities can going see are frictionless. is experience and do cetera. ADRs, the REITs, U.S. buy are transaction, you going we And ready using. is outside care ETFs, clients, and so in in to that clicks, our low is account, to for taking

is still, mutual early to funds, We in banking, move much but are so service, are going we the stage, product forward more, bonds, ready. with and

that of that the XP. lot scratch. we already clients something venture crypto our through them And with optimistic they clients. We XX% are it's have assets, invest intention directly. following we a started about in So they our we of And forward those when XX% assets. clients invest to did told almost the when that ask look have would years to from we invest of that really crypto us it's another XTAGE, XX% come. survey

than we decided it's much powerful starts digital this mention we We Bitcoin behind. to that. about important So with more the It's beginning. that that asset just that's But think is reason to move XTAGE, technology and start platform with venture. a with it's the a when this forward But Ethereum. very

clients the of NASDAQ solution believe choose through XTAGE. provider. ready in platform. are terms we did have in UX and we used our digital experience lot of what asset that business, We provide needs through terms best service help as very We to the our be to good a as to of and we this a everything of velocity research. previous scale for latency, a terms scalability to We XTAGE And navigate

already. the we you move The KPIs. Now seen directly can KPIs to have

mentioned So gross I'm the $X.X financials. billion to already We margin billion. the gross focus going level quarter, at in high I very profit, second we in $X.X as gross quarter. kept had first on a the our revenue, already

the commissions basically reason helps we at the X% X% of income than adjusted stage we yet. year-over-year, as early increase gross main First $X.X and the quarter investing $X in EBITDA net is billion. second, equities, income, products, whole mix XX.X% of our is more And and the gross the the expense margin. revenue I'm we it adjusted an the When billion but quarter net income, fixed look because terms there said, main decrease and was have EBITDA lot. XX.X% adjusted a adjusted impact more there going less thing in has to That impact about talk the I margin, new, the not the initiative and of been that

an is there impact. So

move scale They at with the future the those We investing perpetuity. forward. are highlight resilience growth we to is our those the in shows are here healthy to we business. And all But business margins. the expect of the have investments, despite the which space, in always sustainability very as

we move this the XXXX, look of quarter. in XX%, first year, XXXX. of When first to we the compared Now the next growth in to XX% growth Total can slide. the revenues first half year-over-year at XX% semester

just the think, product a of the difference there a between is and that, bull highlights sharing. mix bear and market it's few When here market I to mention to about Let we a me think pause the course worth difference.

to you bull that be expect in In the same that of have in market, said to mix? the product of too have up. going should terms compared the market. and market We we the equities growth XP features investors bear not What happens bull many a

have We going up. market capital activities

listed all They all have trading funds, related. of and market, connected they three together, those We and a funds hit. have up. When secondary get listed REITs follow-ons we going are bear

the higher first as numbers the give hand, look total mix, the listed and to interest a because at bear our semester, funds equities the to XX% rates. revenue. our percentage just floating product total other revenue capital close market from interest you the of gross mix, On fixed the year benefit and of altogether, of market in adjusted was they income, When cash, some last here on I

When those XXXX important of components market, of our less XX% move revenue. to all we than very So in bear our revenue, our represented revenue they stream. total

a decrease to XX%. So close them the year-over-year of hit. together we is big When all add

we revenue as that's because main environment. the delivered model still, we why the macro in revenue business That's terms have products, resilience, year-over-year [indiscernible], highlight believe quarter. our So high, because hit considering that got first have And in all-time lines what we gross we the by is built. the this XP XX% of of ecosystem

the at our year XX% first a in semester On we bull together adjusted floating In income gross other together XX%. the in more than less of when they and semester they all look year, market, we cash and last than the fixed represented this that hand, add remuneration first the over total the of revenue. represented

this line, give mix. So just see the magnitude that the in we The what terms is to total the numbers. you product top our the you have in is of shift of

On going business, but a very keeps our breakdown most health institution the right we and based well at still have the the of side talk a relevant being while, of the well. in growing course, in retail segment as slide, I'm to about is as

I revenue, first take March first the to of month annualize And had first that quarter. for to of the X.XX%. in better know so, second business. last we take months. but rate why the is take the the to rate much X.X% the is you data take is in when revenue, it's not all-time that year we high, from in second a in take – the be, five of way quarter-over-quarter. look a quarter X.XX that rate better the and didn't terms always week only a the points at the And the better take take investors XX lot of function a what at already like the makes retail AUC, retail denominator, in quarter. the had we terms quarter the start that? be it quarter, than Because last year, than had rate rate months, going The you the the of about of mentioned would quarter the retail have terms you the this So first the was XX average was revenue, the questions in When change And AUC. the denominator we rate, expected we function the softer very look of we in the rate And also a of

environment. take have there rates So here, quarters, XX but we in really months, see the small the macro you is last the despite that volatility volatility over it's can

bit little than which had this quarter, X.XX better we X.XX. X.XX X.XX, in So was a the and first quarter,

second let I EBITDA, adjusted the the just to Thank the it's of Moving really year-over-year was you. million had the to strong, year last we but the for there in growth. that's And R$XXX presentation, we the revenue. go. XX% EBITDA, quarter revenue quarter revenue, mention revenue was annex for go think the highest institutional XXXX, institutional was best R$XXX on the before Institutional institutional, quarter me adjusted we institutional

growth compared can have expected. a of recovery anticipated pace there there in very the quarter Issuer distribution that's as desks. already the but in banking institutional channels that also investment institutional related, not to strong demand it proxy. lower but as see, of goes a derivative you Services, we is the by as is fees, of revenue, a of it's very quarter part first had we is a that And astonishing retail So XXX% our strong into of war first because volume terms because February the in than And

of was quarter better. when quarter, of in weak capital market we still XXXX, in at market terms really But much First second terms activity, drag a activity. look capital

net we up terms additional need the think done of better, the decided money. I retail we have Going asset M&A, I recognize We less here But main, is for the in much inorganically, back do income, could We we early international have to could and or direct investments mentioned example, stage initiative. done EBITDA organically, as costs the it's impact, is expenses clients for all – to international adjusted the front. adjusted platform. mean, to much

know business of we why the We time here. expect is And an margins. to this reduction to those we scale issue and over because highlight the in that's decided

directly the our much impact sense investing and semester, we at I growth been have is in very those that, And from, can early I revenue revenue with think first the the you approximately very, stage. following in the the margins. they we as have investments that In a growing how So invested R$XXX said in in million see I And expect, our of have to for here perpetuity let's it's stop years. can I you have. an questions in the might would love so Q&A, you because we have of the we that very I investors go worth, we answer investment to but before much. doubts to to all it's mention our our year event and in and largest didn't it's Thank And you and expo the all event believe next world. go Q&A, that, the

time proud than going year it's We used more are be very to when of what XP be that all to visiting joined event when event. the years ago, us have We're Brazil honor to for you really huge of when I would in next send an XX remember a invitations comes. I and the

be the So the going to Andre, one you're right. for responsible Q&A,

the Yes, I will sending for well and year. invitations next as

Yes.

you, Bruno. thank So

but know we'll said, raise I that as answering I here. whoever So [indiscernible], guess, first. number five hands on questions was, be he our the the first I

And kindly can productive question limit one questions. you with ask be can ask and so we from to So Stanley. everyone to their we'll start Morgan I Andrew

can the thank now again, and you hear? interest So very you for much Andrew,

it's Jorge Morgan Hi, everyone. Hi from Stanley. Kuri

Jorge. Hi,

I'm here. a sorry. There's tag different

and quarter much of quantify at if like you there's and back And this with that's the trends. quarter. the fine. sort you versus year the day numbers. of of like the you share saw normalization we of a third rate was weaker upside first tracking of are wanted normal my should taking for and quarter, the quarter, we to far, if much bit expected to the if to sort August. normalization if could for so in I business continues the in take further beginning also still than so second see beginning And on August. that inflows full and what No, how little Thank AUC guess How full the for that Thanks is how July of question or the us congrats even I you. see far especially can the in

on this better new we had based $XX really had a it was it to year, weak then January money. if the disaster. And the – would – had quarter, it was And March, better much first answer, Look, Okay. example, per we because a January March. for billion we month if I and be net

very We saw money we trend. positive quarter Second billion the had net $XX.X month. per

clients them the then to money. have they $XX these Third our I beyond to Those keep basis, XX% the test the quarter to And wouldn’t I and billion. we And investments doing. rather digital I on launched when this soft $XX have, long-term, That’s business and investments the the we billion right? what the I’d bank wait of get more mean just of this strategy do, not the those our come You convincing investment you, bringing account and the all we our hook share we are of keep end have show. for don’t for right? reason we’ve that And What is tell clients change they still become they we quarterly to is cohorts our can to need wallet that go a already, high. platform. other that clients quarter. guidance and been think that

but up it this So thing in the time. believe, will it as pick future takes we

the new So have have reasonable per we do billion a billion tailwind get second or month opening stock equities soft seems all there until, that we that’s the new guidance we net numbers at of not $XX quarter. the saw that that, to in $XX money to considering of the the despite market blue exchange accounts And not anymore. of happening the trade and people individuals, the wanting you

not you do third not do will of quarter because give guidance that. the I we the So

I would to to billion, less like not hard can a between $XX we it’s month, so know say have XX%, $XX because billion it’s So we do tell. very but strong month, it’s a huge strong spread know I

Thanks, Right. on – take commentary Bruno. any And take on rate on? rate

Yes, I do.

I So And it, have rate, question. Sorry. the that lower see the way in about Because way the quarter, analysts I rate, the talking And it I X.X%. second the is, in a strong take the the least thing very not the expect have now quarter. mention annualize we forgot quarterly did a the the good rate, a The only bit take that would but rate it’s I little way at would look is take look very right? fees I’m X.X% quarter. in the third I results, why the respect one. I performance we take the second that? at

So talking positive and out for that impact take goes around we speaking I If a roughly revenue are clients, X.XX%. end. distributed – for take X.XX% of funds performance rate that in about roughly, here, the be a it we numbers, has can fees retail retail into on the wrong

of talking X So we to rate performance are fees. in X about terms base of take points

That Thanks again. lot congrats a and clear. was very

Thank you.

from you, Jorge. hear Thank to Nice you.

Autonomous from Jeff. in Hi, line. is next Jeff Okay. the

hear you okay? me Can Hi.

Hi, Yes. Jeff.

can. Yes, we

you. Great. Thank

stake. us spoken who of the about this past a identify some strategic How in that? somebody able that? maybe in investors You’ve and speak on take mop updates your been new Can much up you desire come make you’ve progress give to any could to potentially overhang, to

said what wasn’t they specifically shares. I because you’re results XP well. going I their hear, had usually with that answer investors today don’t I their know about them let do they Itaú, – this as couldn’t way. I Well, ask know me to what so

to price have sell so. in They a they rush the are not said don’t target, They shares. a

on a have demand. decision. And – speaking talked you, I tell is we their talks generally So there have directly I Jeff, yes. already investors, What not investors is, yes, of to with know okay. It’s based problem that’s that the demand, can it’s mean, I some Itaú.

have sell, way. And if okay, Intel position to done are we done do want that also organized we here that. help to when want look to it’s, to Our tell have a we way, to here is we buy by you it very in the so

decided progress you Class know, shares, plan. Itaú, listed a shared bit shares June shares share exactly to than we also but top When small shares, shares, the capital more to part we A what of in bought for total have year. listed a little their in on X buy Class buyback And not As can We sell that’s B we in XX% did XP. this of have go the buyback B from Class below they million a program Itaú. that stake the they

we they confident So other buyback want ready to impact their can if sell. demand basil the they pretty are investors, program. shares to we in on buy it’s Itaú share more outside get Class am have not life. And We to rely buy only From I ratio. shares the B didn’t problem, a that but

not So ours shares, it’s their unfortunately.

you. Thank

Thank you, Jeff.

Okay.

is Otavio from Bradesco. Tanganelli Next Mr.

Maffra, Andre, Hi, and Bruno.

Otavio.

Otavio. Hello,

taking Thanks in one. discipline. to margins question. for I quick cost see was and about EBITDA a everything that me the a little quarter It have given leverage my that operating mentioned real compressing you a buzzing to

coming So operating expect some plans gives mature the I that the that quarters, in this it quarters, background requiring to where of a because level or little just a Thanks. this this high are ramping coming benefits such reach for the of are we of when but leverage. understand you’re and products the to us in investments your what’s up expected actually

payoff decision, will clients feel they you It’s example, from Everything start in-organic investment. businesses, optionalities new I the growth. we give our payoff Maffra and that, It me thing. feel join kept could Bitcoin, believe scratch. for scratch, the We our to [indiscernible] cost for went in another of and our from through margins goes put everything P&L our organic and app, We our to they they built us in perpetuity and at did here to Itaú, like. very from all expense, right? know. about direct sure. early a international and XTAGE, will for we built free for have transaction despite that don’t example, those I acquired I’ll costs than buy also Otavio, initiatives, tried We or I our Yes, more health avenue, it we same the and if pace scratch. example. mentioned –

are thinking And and And that’s what in innovation need to some exactly about seeds the always point we’ve we doing. We at plant always. time. perpetuity been

the first in I the mention. million, semester R$XXX of that terms In

impact have short-term. main the We two in

Okay. Cards, banking cards, we invest specifically bags. COGS in cards the because have to

a and – and expenses And what’s have new your at the front you and players the keep cards market, are of uploaded lot uploaded set. number revenue as a So right, exactly other bank front, growth of of you analyzed growing that’s in as on cards, have you that happening. from

have intend saw than lot goes TPZ to a It’s And costs to because we to growing. going quarter, a pays grant, the You credit the an keep same sell this the have. we we in this card be internally, it’s P&L. we but quarter-over-quarter market to we do investment, the expect together. billion at When off, growing cohorts so cross growing. our at thing. have small more advisor, look be share going not will to R$X.X for lot We Rico a in and Internal example, keep have,

of to advisory to opportunity a go IFAs that? three start that to is the the Because it then next business. years, we IFAs straightforward when number when even And up advisors. front. business. and hire advisor grow than the And internal and more into in that human than new payoff, We does this In than more And through business, in portfolio us internal in bank want we XX,XXX comes it there managers four revenue our custody, only hire you accelerate it goes the saw our months. is we build is when But we less to window not we three XX as clients, of this believe our commission. it’s Brazil, it has years, are believe why P&L growing for IFAs, the the a advisors, there as break

the the all investing, And term, P&L that, margin look we and investing internally, And huge believe through because the in in that been an So and we the down. there are it a to opportunity brings going impact. the we of lot is what have we has And I we it’s that, goes all as to short investment keep costs off, way but do. mentioned, it’s despite pays need under of it a control. are this and

Let me point. one you data give

follow personnel of below semester by in my our rationale more you this XX%, plus revenues. have our our people have company. practice. And look this year. practice, semester base In altogether people second they we personnel grown is people less XXX bonus here. this year of for quarter second XX% to bonus our we And last because net year, in X,XXX you headcount When represented the net Year-over-year, had our our So expense can expenses, XX.X% we June we first X, quarter XXXX. than effect, our second than statistical the than plus ended of year quarter last this with XX% close net in at to more

revenue we for certain all lot because of that, which building the So of and people, hiring yet. of are a decisions. our cost we we believe give to the comfort is not despite very are going profitability healthy, us the But businesses it’s conservative we we course, are business new is grow but of are paranoid that, about the there

recession. all not in aggressive We global inflation happen, going world, in the are know do have not do some here. others. We ball to crystal and We what’s over the conservative

If the in makes we’ve window we exactly now is see this term is XP are to long prepared going view. that not the worst. doing. for there a what invest. So But because sense time it And going opportunity, we believe And to that’s we control, do run. we have for of clear we a been be environment the the micro short need we strategy that to are not

This very important, Bruno. point is

will short-term shareholders. a will our we not long-term that return We like a favor, we of a believe like to result instead investment

during doing months and J months. Curve, investments it’s internal is year. that been payback short there the card, other some credit have Bruno business keep this like very investing XX IFAs So some as because in XX many other a And we’ll mentioned, we in

whole So be investing year we’ll here. for the

we train, keep we not the are We the would for to right find, the need right example, are found business, we it because we one either and more We time, accelerating we et certainty we it but that to If would internal, have takes going had to do IFA need it. the or advisory but would, double, advisor cetera. find investing.

Super Right. clear.

Thank you, Otavio.

Tito. Moving to Hi, Tito Sachs. Goldman Labarta from

Maffra, Hey, Hi, good Andre. Bruno, good to see Thanks, evening. you.

Hey, Tito.

up following kind expenses, you which margins, know into bit little expenses. obvious little a lot. I the digging a personnel bit spiked about a more of question, question on talked but My

have that some color a just going think of of needs forward? color Can you people you the have mentioned, X,XXX end did year. down year. you You in you on bit, than I provide had you hiring to terms expect where last would by people that. the lot Any a more can you give slow

was compared data just from up like I the some the there a to, year. SG&A spike to forecast of other these quarter? that us in and investments that Is here color that about XX% in The guess, how given a to also a increased expenses related big last on expense help some the model think to processing was just or lot apps, just

sure. Yes,

and of the than less contracts there also was in Look, through et terms expense bit in is is headcounts, there than and the with you discuss But the that the going you second EBITDA the measures later. at when also was one the amortized, Tito, the a of headcounts December bit to little number little And we of But that we the can of it’s was SG&A instead depreciation was now time so data related was that details of component cetera. more there personnel. processing depreciation have. in – the that the in offline quarter, X,XXX and a quarter little of capitalized part it a it X,XXX first some bit personnel. in accounting became line, that growth Just look is license, backwards,

would personnel single has a look grow, year. been XTAGE, new the this in what have, year, The September, It semester XXXX investment going we the right? What those headcount not we that I lot. is started We internal can October, initiatives, the in that digital, not forward growth the hired last growing The To it’s second the can the advisors. platform happened of change significant, to but right? be So for personnel growth along. of last expect direct all base mostly headcounts in U.S. digit,

four think a we window opportunity investment years, a As – service. I believe advisory and three the is in next mentioned of is are there business to we we of

in internal So to us journey advisors, want of join much matter we and I than in right personal to think a this keep growing else. finding the it’s more anything

the of are right? So if – are and to data, we personnel. and we then the of we So best we and type going not do hiring we said, example, very follow-up It’s this not the data find, hiring driven, one. were then for strategy we look,

other front. go and accelerate Let’s back there

the you the have is XP know, We as DNA. our in education Future,

are world those financial So skill. to from the we have the the be have a help that even to And tools commercial lot financial not that a successful advisor, built world. of in those

XX,XXX there. I lot more like we is data growth we’ve Central a the grow didn’t than there, people. think could mean to know driven. answer been that, personnel going answering I But questions like dependent. inflation that the doing your if data managers, I depend specifically, Bank there, that lot because bank question, It’s it’s a can’t, It’s about there it’s right? finding I on right you of So are a

color. But that’s helpful Thanks, some Bruno. Understood.

it jump XQ. I Just jump and was a that guess, should there like on I If mentioned, I what kind expect look bonus, one as – the bonus? paid XQ of follow XQ. terms get of don’t looks XQ up, quick last But of see a level XQ, in in is you big we in in because in just year similar but

you revenue net better a it look first semester that’s this my Yes. look base, on a net Look, XX.X% at of when of the the semester revenue. a bonus And at advice than it’s quarterly basis. as year was percentage

performance it’s will revenue on net of depend because And year They net December that they this I higher on those whole on semester compared objective. when are was depend little then semester in depend, are the base. we parts the Second semester even they would the fees, close semester of to to right, they desks. institutional a And basis to first year a year. more only XX.X%, But XX% on was higher bit know, bonus last year ends. it first percentage – to percentage revenue. There a compared last of expect keep

Thanks, Bruno. Okay. That’s clear.

good Thank you, Tito. a Have one.

is Next Batista from Go Thiago. UBS. Thiago ahead,

for Hi you the guys. Can opportunity. Thanks hear Yes. me?

Yes.

Yes.

is is because you consumption light event, that And company or Bruno. the kind capital how of of figure XP. earning again, the the asset – trying company is capital? company see all about we seeing or excess say XP of billion business I’m The light XP will EBITDA company let’s question more presenting, this cash capital quarter. require Or company nowadays. we no, are different asset excess XP changed My So should more in So Okay. capital enough But being this more in $X really an as has or that light to all is tough that future, capital? new mentioned XP guys way the the this for is is excess in become view, of and are seeing still us or temporary cash how a the the see cash are XP? per company? or to asset your you in investments out

we and of where have capital mainly let use like do credit of flow We goes. every especially our do of flow – making business, a cash market answering is card collateralized. because most we the lot a our But that use our that. start for activity. we Thiago cash most this cash business some start can mitigate believe credit capital that asset are keep of and want the to business because light requirements, I No, we we and we an do cash That’s the of month. We lot generate

to of for activity, that these works selling brokerage X network. M&A XXXX main a you Number IFAs our Brazilian works lot But a the buy keep lines, products and look one, we can in and but IFAs. used should something most we that when term at So past, it’s cash. attack in BRL close IFA the at huge billion as income, billion billion, our prepaid warehouse. we get you are a adjusted There we the a markets. in And secondary anything assets, cash making less have cash being it this fixed to market of had about in okay. require we of BRL requires, two have asset But to future. generation. capital BRL that we say. this of close much stakes our amount followed example. our fee, look adjusted as in is But We invested minor Right. speaking. you our not funds using the and seed, would sell with future, mostly we It from can our in I that with where product with recent for long have more when expenses, buying the that’s do in the total, spread, close warehouse markets own like used say, cash activity And some have the that like how contract like capital nature our And cash, for the to this gross talking close the foresee a books. the making X have XX to in we some billion X gross roughly to BRL that market mostly done since capital are goes, and developing, managers past, In the

the markets balance in develops, the a to going that capital return, question initiatives, asset to your this return not they But answer to and about markets that’s to new sense. we how to of are in be credit will capital want be mature, capital to are Brazilian they sheets. proof using the the grow we business, return life activity going me the So Capital but capital. us, able less states. and for our yes, in We from when capital, when

for have through then through and recycle, Of to course, of not the for to using sheet. and credit hedge in we’re asset want something managers own to good the investments, penetrate fund banks democratizing to United done States. the balance business markets balance now securitize for We our a Brazilian to something acquisitive, the United individuals capital grow distribute asset our disrupt our management world. has situation for going as a product the and and to it’s in we what is there for use ecosystem industry a have the reviews independent warehouse, and And States credit here sheet the the believe win-win business similar to in our

So, business mark. asset going keep like yes, you’re being an to

Very clear. Bruno thanks for that.

Thank you. a one. good Have

line he can I’ll call. first hear you pass fell [indiscernible] was here So, word off Rozman because in the he and us? the [ph] then to

yes. Yes, you me? hear Can

Yes. Yes.

is a follow Andre. Hi, Hi, on and question Maffra, My Bruno. up Thiago’s one.

years, also BRL run been been I recently, an Right? day ROA, So, know if look they last I have ROE trending over and few not think earnings raised we it’s to when growing fast you because bankers but quite mistaken, I’m billion to you XP, day theme, important the have to that X.X operations. down.

trying this margin, could longer just if and Thanks. I So, term? returns you a I’m be to sort just your ROE a but if metric not, like internally to trying have or what understand net and is understand here, understand just any if long-term to trying talked you here, ROA, of ROEs here follow you that about because know or if EBITDA margin

do but to – view, follow more is our do one follow, but what sure. mentioned bank, and of have it’s we all Rozman. own our the, when bank, the the need else. at account, or have second was with you banking need We billion world nothing credit the compare clients. in our in that other serve I decreasing the investments the in our he for XX.X we it’s best It we consequence because about more to right? We bank like not now, digital of that. a incumbent services, about than we different ROA the to environment bank metrics quarter. bank that past. a the Yes, reason our look bank to – Sure, not go for it’s we way, a maths than And other me, BRL realize have now that the products, entered anything We, think the a macro portfolio, license least competitors, big we ROE we beyond basically in by

an platform are that bank. So, we investment acquired a

look subsidiaries. a you a bank. that one Brazil only is at broker in If is dealer XXX% the That has with our chart organizational

today, speak around. they all way the opposite the market, are the in we players other As

So we leverage speed, do as of the we bank that something is not right the full speak use at now.

third a the of other with of new more card than et hits on operating and margin, features features because revenue to to lease and our future Because be in now a have more for led than and It’s to our my We has Brazil. I bank. on cetera total of in on. to That’s for that’s do We course, because the at market matter in lower lost mentioned, Okay. market secondary a that lot The is plus, year-over-year, share sharing We used income lost credit But being to the impact line. verticals, sequence net-net. the billions If equities have environment. much us fixed leverage fund still close the main impact, be example, XX% of business, has macro in business. to environment. of et equity used of logical look equities of of the in compensated the cetera, revenues so the plus a XX%. of that that and down, going capital market equities mix in this one macro culture. more example, view floating market return not with

an that a a BRL mix, mentioned. it’s So that mix million XXX plus portfolio has I the impact

So, back when the mentioned that the scale the to I see. expect macro way metrics environment’s different, I you

Bruno. Okay. Thanks a lot

Sure.

Rozman. you, Thank

Credit Hello? Suisse. Next is

[Foreign Language]

Okay, Telles. it? in responding English. Got am I

Language] [Foreign

more than XXX in Thank flow, you, Thank cash Okay. Look Telles. the it's million terms you. the of quarter. per

we the do as the probably the XXX million mentioned. You've more adjusted incentives mentioned, speaking. was the million. in forecast number A We if second quarter, okay. And It's to than it you've that EBITDA mentioned, small going case. or bit for than close roughly IFA XXX forward. we to M&A little the less did that by in IFA not have you have and M&A analyze XXX And hard a it's case

all well, we contract said math do it so. IFAs. for the money are makes exactly that we If doesn't make very doing. sense, the on long-term the does And sense, a past, IFAs based we benefit to are in it with do spend the have make of we not and ready As to been in going what that's we've sense in ourselves. If we math knowing our work decide

going the you already, have lot example, nothing We that's on why basis, have not that. it to nothing. same fluctuations. done expect for quarterly quarter, Last close was do we can a But so close forward, to a

BRL and a the debenture. just, cash bit than didn't This Rozman second XXX X.X BRL the little remember of about billion question the million. now answer quarter the was I I I flow that higher Look,

we just – back an is we this the this in the repay with to want is last market. May, So going something Rozman leave local bond And open we relationship bond.

Brazil. We X of relationship. that XXX do X nowadays, the market the to BRL for strong in bond cash And close size by And We demand to considering have the BRL company more we idle BRL disclosed X of past size XP. we to the in issuance in decided going and considering were scenario. We very billion had billion. considering the a the X.X in That's have BRL billion BRL not did million issued to holding XXX much X.X billion. our to billion then

like I said, conservative for than we have for others As bear we We in some a cash need. market. things more are to aggressive

adjusted billion looking volatility to semester when to when on bonus, is pay forward going would something a base. Now have, we be a X.X per expect quarter close there the your we back question, so pay EBITDA, I we

a there drag the is cash. in So

in this But August, the have that The next to to are our We going is it's February EBITDA capital year. that performance million close XXX of that, are more In we than really version. going second we to despite in working working that basically cash impact have by a quarter, small. small, adjusted the capital it's have month, fees.

it's – was short really in It July. So paid but term.

fees. XX from recognized But balance the Okay. in performance in What than right. there you a to that in when it's days, revenue XXX goes less million BRL paid is sheet, [ph] June close June

have. basically is The much M&As, fees, adjusted P&L payment that's on fluctuations IFAs close to a we the the semester. outside EBITDA. bonus pretty So of rest performance be main that

Thanks, Bruno. appreciate And Thanks, you. then it. Thank Thiago.

Telles. you, Bye-bye. Thank

from Next Hi, from Neha. Neha HSBC. question comes

Hello. Hi, on the Andre, Thiago, results. Congratulations Bruno.

Hi, Neha.

quick one. questions, My – I two have

the few one revenues, We has looked bit had on a is on quarters. softer question credit light some been this mean, second the on the that. the First volatile the tax which And I tax rate quarter. rate. pretty over past

So should you. how coming the Thank in you to could quarters, some on sense how think focus? about this we us if give

Yes, sure. I didn't hear question your first well that….

revenues? Credit

front? What

bit this a softer Credit revenues quarter.

yes, a revenues Yes, yes. tough. basis quarterly is on Credit

distortion. one-time terms create the any In transactions that a bigger about the we a front is a you decision keep but like similar to part can to up some like right. made going then here test that again in risk whatever, The had of comp. process have the our are sometimes we to have hit quarter that quarter, credit target, something that credit feet first first growing We

of We not. are see think we NPL we business, we risk you about want ratios feel going we're it, the as the for comfortable in terms averse We company. to grow if it. not do we comfortable if of are we are so keep can are about to and the long-term, credit our owners doing credit, in If the

rate is that's our tax to tax the financials. making I tax to funds, think best remember like market a the in at rate has other because effective Regarding specific recognized way look from is, about goes the XX% the it not that to bracket way activity it XX% that

the tax slow. but tax, tax. that back tax that That's have – a close we we pay rate this semester and effective tax year. exist normalized XX% that we When from to the net goes revenue of does the in add first So

goes market We right. future higher to capital but have, capital to tax that When activity, we as the have tax most strong level of expect into the we the do rate, for broker a the activity in example, than dealer have revenue revenue rate effective up. tax bracket. more well, XX% And goes we When a broker market at the effective talks then that, costs not have level. with the dealer

of credit benefits effective of the lowers at tax this the We have XX%, rate. and the expenses tax the

I will but in for we'll revenue Neha, is, if absolute higher revenues a the mix have back different as have future, tax comes as market The semester tax capital forward, The here, what had expect keeps to would point year. the increase rate first going activity in a should specifically this we compared rising. we markets capital So higher rate, numbers. we the have

higher – much revenues, you tax see So tax you'll rate, see if higher okay.

That's I of On at correct. of call forgot I I with hangover Telles. your the I'm said that to question right. still a And expert, the buyback. beginning the previous mention forgot

back shares as buying have We been well.

announced been have we of whole the We've of little one-fourth, – May, that's back doing. the one-fourth So more approximately flow that also have we right. bit cash in more have of we program done buyback than part a done

Sorry, move forward.

Thank Neha. you,

from Next of Bank is Mario America.

Thank for taking guys. you Hey my Good afternoon. question.

the a were an that this year. performance was of me X, the know of I close? you are can right? you And about – expect reported talked below the and yield to benefit earning It last market integration ago? Just the when one night. Can the performance if of revenue do recognized to do If follow-up the you two update X model retail earnings the seems revenue related have on the remind expecting at from model, that one-year are beginning you is what about questions; quick often question fees how first the on what coming like fees fees. provide us then second you timeline is points there you transaction performance any yield basis these just

if price I wondering don't So you're I was was for right. and fixed, model the that remember paying also, that

is I the and like going was close the are think But any just wondering When transaction issuing shares. I XX this you model? seeing you performance from transaction? potential to how synergies were do of think million you

million, positive it and we lower year take Sir, performance – the fees the Mario about but was than the rate that had year. XXX to Last I was right on the this I impact we with take of second me, I fees close but number it's performance quarter, $XX something have have on the believe the follow-up that. rough numbers here rate. that. impact of around like did the can it something much front and of

a is each we strong in certain usually but two small our platform quarter, it numbers, example, quarters for have; performance So really quarter, We have quarter, funds fees, lot and first performance fourth of we have we of because – a time second do and depends funds. part ecosystem. those of small the in on have

rate, X quarter that's and take to and of fourth base that's the impact So this quarter the points okay. what second really the quarter is relevant in X

So the performance be hired It's performing basically that much equity got funds, do performance X.XX rate to they a be X.XX market well if the piece. exist market would the effect. they funds even without the and take could positive fee, macro had but

to going something, You're say Bruno?

No.

down, the this we process. have do not About of the more to Okay. the closed But expect deal year. end the we control by

of do is still two subsidiary and XXX% are to done, that's assurance waiting maximum to there shares model Central mainly are We because million is we XX.X Bank of The equity model and SEC have merge going number approval right. is on conglomerate. that events, XPs approval or

Their we Regarding that not lot in XP. model model performance, I is diversification synergy. – again do the we have a have of they mean, have

know, very get of So We XX the revenue. result, Modal have XX we quarterly we retail do believe hit high internally had our is numbers, XP years as our exactly of like time anything. environment. it because It's record we change have doesn't not not years ago, like, their it I macro know a would if all does; We but accretive acquisition. of revenue, We well. would what a ago business stronger don't that it's were kind

already. for process, they Bank resumed that is But about synergies, a delay [ph] need too are We but thinking approved. Central had the has a to have we XG the familiar but as, this year of lot already. approved the Central wait Bank, strike offers they

But… we'll So see.

done as, have synergies what another on the XX% we have we we past And on in to revenue. acquisitions in mentioned and the XX% and have past several historically, this XX% XX% to started SG&A synergies

to So and that's the way synergies the model on think to Modal.

you. Thank helpful. very That's

you, Mario. Thank

Mario. you, Thank

So Good last Domingos Domingos. Morgan. but least not evening, from JP

similar to Also cash several bit the flow, Good started ask in questions analyst, Thanks. way more evening guys. or questions but the I'm the other a a different I web way, and back certainly for and one asking to little guess, same question.

model payout see think being lot. capital of is when that like have? you dividends business right? sentence, basically investors BX compared a do assume of a add of pays being right? people needs. lot understand mid lot pay which platform that lot market of you – plus an your do doesn't case, to the and I'll sort custody, percent. under grows a and Don't activity asset So a Is XXXX? teens a cash XX you a technology can some to by kind hoping grow could of what that know assets beauty XXXX, I am like, enabled a you, give accelerate to And and you that base you needs, by your your some, You I Let's

back flowing this the we're starts message sort investors. So of, get here, to is when cash trying this to

guys newspapers second would building came you – The on one new guys Lima. on the I villas Faria guess, you cancers really searching we back hold out floors be be then quick are is, for would in the

is cost give savings? my up that So on a Do or not? What's that the question you latest? guys

Right. Yes.

number So and about we is we the your So have low right? driven company, share, are the honest, growth we are investment first market next are a be higher, next Domingos very and we still, Despite innovation, to always as thinking platform yet. but one we bit one product clients number are it's awards, little the not best not the in as a sight but recognized yet. by being getting investment question prospects

Right. midterm So a to driven to think investing say and our conquer and And that have international. we all to is returning much we been don't I because horizon our going mindset as do for of time are about to to the have have short dividend initiative, example, that. cash pay going we for so you new number have neither a

seed small go to really we mentioned, I in because clients, with As U.S. start be are retail direct can international for investment the equities.

to just and in to are to And can going in well. perpetuity. as give more the then to products. about, so this banking want returning to think beyond money doesn't to we example, have grow there think mindset, mindset. That's allow one we it Brazil U.S., even you have going always other us do the We're We because

in to cetera, have have Maffra your the right add payout about you et you if don't numbers to I know mind I there? something don't now. dividend a tell So

not way we decision. the About Faria part villa the going other about second cost and backwards, of floors Lima. at The a it's question,

Okay.

it's and more Yutaka have had between now floors I'm and X,XXX have employees, mistaken, we four not than we XX we during XX, At if and Faria based cost. the to pandemic, double pandemic. the beginning floors on floors the used So have Lima. not of And XX we

building need So double, we for Paulo. one close yes, and in than looking these asset are mostly it's okay people, people, investment because banking, we the more the and for be to basically people. need floors based will where, management, they same the or private And pandemic. we during two are And to be Sao at have need to commercial they because customers commercial corporate,

reason. the that's So

other Okay. the And about that's the and villa, But we had many so many construction license problems with problems. company it.

and good on Thank you, quarter the Congrats evening. guys.

Thank you, Domingos.

you, Domingos. Thank

so much once again the so I You to one, in thank would was our like your last you interest – call. for

invite could for Bruno, next usual. We event. I follow-ups you are available you; year's any again for everyone think as

and finalize to you thank the… for Just

about to experts that our include your investors think trip in Brazil, that Brazil make agenda. that, to going worthwhile are for especially something We and outside

honored and So our the you a But be next than more you call and events in we would thank year. you. to of Thank thank you. all for happy receive lot

Thank you, guys.

everyone. you. Bye Thank

Bye-bye.