XP (XP) 19 Nov 242024 Q3 Earnings call transcript

Good evening, everyone. I'm Andre Parize, Investor Relations Officer at XP Inc. It's a pleasure to be here with you today. On behalf of the company, I would like to thank you all for the interest and welcome you to our 2024 third quarter earnings call.

This quarter, the results will be presented by our CEO, Thiago Maffra; and our CFO, Victor Mansur, who will both be available for the Q&A session right after the presentation. Instructions] [Operator

on on can please forward-looking statements statements we the is disclaimers have our found be turn simultaneous to our translation the We button on option below additional legal Filings which There on presentation, IR begin we a And to section to for on information if clarify X Portuguese. Page our forward-looking also and translation. the also SEC before of refer you on want website.

So over evening, now Thiago Maffra. to turn I'll it Maffra. Good

Andre. Thank to everyone XXXX be our evening earnings you, us quarter tonight. Good appreciate to all. third pleasure here joining I call. a It's for

goals. results well our explore strategy discuss Let's our as as and in quarterly our accomplish place to

quarter another XP. is This positive for

and into as has results. solid strategy executed been Our it's translating planned

Let X.XX me achieved have starting share increase highlights, year-over-year. XX% the with assets, with which client you trillion, a posting BRL

see another income capacity mention becoming presentation, current will and our relevant it's to we regarding the with scenario. levers the to aligned fixed in quarter inflows, consistent more important during our As was in adapt it that net

X.X expand also achieved growing X% to reaching our client total XX,XXX, We and year-over-year. continued base, number advisers, year-over-year X% increased of million, marking increasing our

During XXXX, reaching the year-over-year, gross billion. X months BRL XX.X revenues XX% grew

XX% year-over-year, posted delivering growth EBT Our BRL X.X billion.

Day. X.X guidance pace at BRL last and the the highest results at meet in was almost it in to of that with income net Investor year-over-year, The we in billion, BRL are the reached the history XX% Our XXXX year's the indicate XX.X% right set quarter expanding X.X our released margin. billion

the on We will on. more later go into financials details

with of and of ended the an an year-over-year. Going to increase profitability. We balance ROT sheet XXX bps XX.X%, quarter

was per managerial X.XX BIS the and in high history. was BRL share, all-time our the EPS ratio XX.X% Our

buyback announced since last that an to you months. Today, right, the see in also the we almost we dividends can XX% that of are billion, and Recently, BRL XX than BRL until X reaching grew new X.XX recommended the contemplating payout targeting EPS program. XXXX. extra share more IPO, payout On Xx deliver a

This it's reach ratio years. and between in than of to XX% BIS our All targets XX%, well in year, above the to next all, a with keep XX% XXXX we more it. payout couple

Our capital capital efficient capital operate return an business shareholders. in discipline how we allocation considers and to our

in levers, As our recently, and results were second already in deliver allocation. commented I 'XX cost expecting growth we based to better discipline half capital

that guidance. and our is in enhances delivering track confidence quarter 'XX plan execution results on reaffirm our the Third

Moving on time. our to evolve slide. the in how see tracker, We strategy business presents next our which

analyze We pillar each will the presentation. during

reach months, revenue will we in third it 'XX. fourth top to BRL quarter last billion, necessary be Hypothetically, XX.X 'XX, the marked gross quarter target guidance, growth. if XX% a Our XX% the of a posting XX until CAGR

LTM our reach figures, XX% XXXX. right expansion XXX EBT margin, third that Regarding the demonstrating we the XX.X%, we in pace reached target range 'XX LTM compared bps to to are quarter XX% to in have

investments, core that we is reinforce which aim business. investments, in should our retail In our leaders become

excluding money As on billion net consistency of quarter. for achievement highlighted year-over-year, presentation, a in beginning We acquisition. money. in represents Modal record BRL strategic was Each to net new the growth XXX% this keep XX new the

I levers. from current our that you would remind This for the net you a new the to to of XX factors, BRL retail. billion remind around due BRL in It's like level to important highlight is money, good BRL scenario. several retail XX billion main of Important was to billion, possible to achievement it's XX that improvement out and

platform, positioning one, us of ahead country, the Number in peers. product investment platform complete the most

innovative with fixed income our once again example, and instruments. quarter, sophisticated an during products As posted results and the competitive platform solid

Second, increase IFA's to and past, work client internal our evolving and grow synchronized base advisers multichannel we keeps RIAs recent as our the and in AUC. mentioned distribution

When In represents, this X,XXX months, quarter, higher we in reached internal force. internal compared sales the are net many network. already advisers inflows net advisers, total XX,XXX a IFA which inflow our than

Third, for the with value past retail. have offering from for the in intelligence few our more right years, we proposition to segment each implemented private

with approach their management product adjustments For example, on while for portfolios. an active portfolio a providing pricing based providing economics, understanding retail each more to serves and run a clients private clients better objective

the hired seasoned years. doing into pay banking professionals growth the in during next will retail very potential and Private the of the a This since including that we the change CEO year in competitive are translate segment. faster Additionally, in affluent many we off segment way already in the in private Bank, for business

transitioning Lastly, provider decade. the for next distribution from product service a to differentiate a key to from firm players other is ourselves

While above, which competitors clients clients, tech-enabled possible our platform. of render financial planning XXX,XXX offering with and to only is private ultra we to high because bank are

product the take we translating can player other Brazil retail inflow, higher net from our many are the scale consistent keep client regarding to No questions doing. more do a service in the and improving and rate combination it company. offering quality and continuously retail these of same We Noteworthy we in productivity, profitability perspective received direction. that levers for higher are

quarter, we mid-term, expect recently, change. increased do it big marking the In this As bps, for we X said X.XX%. not

move Now to initiatives. let's cross-selling our

cross-sell to financial products When attend with relationship lifting excel We product, needs. other our implementing or and service acquiring materially to initiatives XP, see are client and new decides a continuously enhance revenues. the clients' the results we

retail of penetration. year-over-year pace, achieving roughly premiums, estimate banks growth how a Life XX% XX% It still BRL XX% in share has written in insurance penetration, million and we market year-over-year, billion quarter. keeps the XX side third quarter incumbent fast 'XX is XXX present posting in around year. XX% the left gained BRL reaching while grew can card in see evolving. we Credit TPV the during cross-sell the On slide,

sales compare penetration. From And room This a to Penetration lagging And of there revenues our presents is from our sales is it years. in during around we XX% of insurance relies takes to client believe own present effect impact. market lot a a provisions since commissions increase of players, revenue we company the other positive effect perspective, base positively average from our beginning revenues impact first still to has on on marketplace penetration years the since our X%. and terms. X the high X the when

retirement client On leader year-over-year, grew reaching XX% XP share has the XX and XX%. billion. by market our BRL market has X% assets plans,

Initiatives new sales in and to growth addressing are as our force are pace. resulting back expansion efforts We keep cash faster share. growing

We next are more years. we relevance will confident much that gain during the

quarter. presented year-over-year, credit XX% in growth Retail BRL revenues in XX million marking the

money to through but not credit clean is client as objective with collateral. lines, investments Our grant

lowest global our the have launch a is the of and FX, grew the is client XX% million new from with BRL and other digital our credit a market. to new one as the We best to clear have which In base XXX of reap consequence, reaching features year-over-year benefit products ECL revenues And rapidly. we example vertical this capacity perspective. loans local a as this in account consortium, risk investments, quarter. concept, This

X we on few a this years product. revenues had ago, remember you If

XXX On On offers presents we present the see can clients of chart. more this among On that Important product. slide, to products are than highlight revenues X clients than products to than segments. with more include with than using we the revenues more XX% side illustrate client retail different our revenue per example, and base more a right of X the cross-sell, average, client project. more Xx one with relevance X

how in that is front is monetize in of we big opportunity with this XXX,XXX. tickets that lower us. Therefore, With we mind, a clients understand there than

room the We launching ones. penetration with complete and we profitability have to and while a product corporate finally, range new And increase keep SMB.

we crucial are to clients been network. and clients' our able wholesale meet to instruments to have these quarter, before, institutional distributing mentioned retail we needs corporate ecosystem. and our while innovate to Each As

our wholesale from Now business lending service. and derivatives origination, let's distribution, FX explore treasury to

in rankings improving banking. and years, league position tables last the been we During have in investment our

CRE, We are issuance CRA certificates. REIT two, in certificates. number #X agricultural real receivable in [ ] ] receivables [ and And estate

during in reached secondary the market X largest year-to-date. we XP volume, think investor matter by DCM are have than positioning our we country, ecosystem. platform we in as from about XX% piece top a far, we benefits third ranking billion fact, 'XX, is more quarter another X.X trading, of that Since #X share. when BRL the As the Institutional with

develop book. distribution, to leader looking market our brokerage. market ahead, A capacity With fund in and keep understand gaining in expansion monitored fourth we ago, as player relationships to and quality can largest a in which years managers share, the new we securities are such execution we strong our we remains equity independent started and and trading, volume. traded corporate As strength banking be our distribute few businesses, beyond expanded loan by originate have investment the

a achieved billion, Corporate BRL securities XX% growth year-over-year. XX

We turns securities are around corporate is book, related Brazil portion flow this the for over to largest quarter. credit broker of per in and corporate which our Xx

provides mode recycling our with credit risk unique discipline. Our NIM better risk-adjusted aligned

similar derivatives. offering became powerful And rate another our years This ranked ago. view our is X derivatives. improvement, XXth XXth #X OTC XXst we to than interest of that, penetration fourth started. while position On Another in compared reaching when keep we a years FX, in this We example, we More quarter, increasing evolving ecosystem. X swaps. were from ago clear

deploying services. been we products more and developing Lastly, and have

the last we the and trade instance, finance in months. For account, digital launched will corporate quarter, we launch next

for are acting clients. broker insurance as We our also corporate the

with grew, its market to business our regarding we disclosure as increase this The risk. will share launch to As of profitable plan lower gain cross-sell new additional bring collaborate parts them.

a growth printed business XX% revenue XX wholesale months. consequence, a As solid last

about give more details the will growth. revenue Victor

to will can Victor he hand we quarter it Now you. discuss over financials. so Thank this

to of to everyone. with in pleasure we evening, Thanks, Good results the recall It's our the of you I quarter, go like quarter before ideas anticipated Maffra. and the to here XXXX. would second some be

we increase warehousing would if issuer services. a those quarter, in the fixed income impact time, underwriting lagging particularly second offerings the in wholesale our the same on we're phase offerings. an assets that retail by explained At of revenues, more anticipating distribution the in until First, drive

of this place when we took offerings retail revenues. the impact income on fixed a distribution expected, phase positive those quarter, As observed

second our have growing sheet, we quarter, in finally, just anticipated warehousing reasons XX in securities we the that as the part increased business. for along corporate single BRL quarter balance our billion had a mix also would in mentioned, a in And for coming revenue a metric with Second, tax for a in trading quarters. months in quarter. second emphasized XX guide few as the effects rate both and expectations We other higher EBITDA more resulted margin serve that minor using reliable of

our spotlight. discussing deliver on in XX we in business that focused right third last With quarter remember quarter, that XXXX way the last the the our a to retail positive XXXX on evolving months the quarter mind, of commitments with the figures, we are was and

Total on results solid the and gross revenue months revenue grew XXXX Issuer & Retail XX% X% and was posted year-over-year. quarter-over-quarter. quarter. the flattish Corporate highlight Services during institutional was of X

the back for of another slide, revenue our side XX% see participation increased we revenues On to of positive and gross quarter income. right-hand the on the total fixed breakdown retail on

X 'XX Fixed move slide in our share, posted year-over-year. launching growth banks. liquidity XX% months the growth being trading relevance was base. again taxes new on growth very more in billion, year-over-year. by and revenue XX% once secondary in corporate and higher competitive ability notes notes provide BRL XXXX growth retail. if growth keep second, market the and credit which to terms to restructuring and against against our was incumbent months That client both, a including Let's And X XX% details enables months our us next from Retail X 'XX products, XX% highlight, with of XX% than to income supported X.XXX to

in Services. Issuer BRL to on million delivered results to 'XX XX% X arising year-over-year. which cross-selling activity, posting & XXX growth performance, BRL represents particularly DCM Moving X about posted new Corporate to driver total XXX months quarter reaching next back with XX% quarter, be services the year-over-year. BRL X Issuer talk important million X% growth will in growth issuer XX% the opportunities and a derivatives, growth in issues, with growth flat in the the the and & continue 'XX typically the we year-over-year. Corporate Corporate services the slide, XXX a on months revenues, results and and fixed from months million with in in an Issuer income corporate on align Services 'XX positive quarter, XX%

quarter corporate around On BRL corporate XXXX, XX a our ecosystem banking our And business we risk the in second do. and our the new to we in like right-hand side in mode. of investment the X/X institutional and would In to we sheet. profitable recycling connecting retail in warehoused slide, we present that retail expanded rationale, billion as of our clients, QX, balance securities book said already distributed we of

Moving SG&A a efficiency BRL ratios. effect. incentives Expert, Since billion next and on quarter ex decrease third quarter-over-quarter we in every the reached investments a will quarter, in of year-over-year has third to X.X higher X% and X% a [indiscernible] seasonality quarter-over-quarter. comparison our explore slide, we have the SG&A

lower record, this lowest announce efficiency IPO, both XX% in before, confident the with are DNA, goals that coupled points printing position basis a combination our discipline advisory XXXX lower better basis we a with and cost mention since new year business innovative becoming level. XP marked happy cost that expansion our another XXX clients, more we deliver competitive to mature discipline. history said quarter-over-quarter. our of powerful to in to since internal we to ratio, our and our a As and and part plan quarter, efficiency each our X Important I'm the points year-over-year for are solutions

quarter, now. months BRL EBT in 'XX, a BRL billion the in to XX% growth growth. on and EBT year-over-year Moving X.X a X.X achieved billion X X%

reliable in FX guide EBT I rate in as XX emphasized the was case serve trading the more which before, one. already that margin we expectations using a this As and quarters, naturally for months for would commented coming both tax

second XX will on XXXX. in reaching basis months XXXX, for annual year-over-year quarter, believe margin was In the growing margin. the margin quarter our XX.X%, and keep months EBITDA EBT our this goals XX last EBT flat our last We flat also an against

quarter, different growth next in and new year-over-year. on considering X% record, a during income bringing slide. you income billion. net Let's net represents see we Even with X% mix, that It our happy the the X the share I'm the a revenue 'XX the to X.XXX growth months BRL set

was points, Another margin increased XX.X%. XXX important net posting achievement in basis the

to about capital on next move to talk the Let's slide management.

the we XX.X% you start the We risk-weighted BIS quarter, years might one BIS ratio quarter, XX% As have seen, our goals to is and between including ratio X of XX%. disclose breakdown of assets achieved this in business data, data. operate historical in to our to

additional management capital BRL Therefore, efficient the already be dividends today is last billion distributed share and to So the billion X.X years, key. we through besides X in distributed an and buyback. share buybacks during BRL announced dividends

XX.X% distribution line execution ratio we guidance. this program, BIS full our of have the would and Considering at in buyback a with

risk, the resolution. Bank implementation resolution in accounting total right the due XX% to quarter, quarter and If XXX total of the previous assets primarily that in at we new compared shift our side of the credit the On this the stands between observe ratio this mix to slide, the market this RWA credit can quarter. is RWA RWA XX% the of for Central

held the market book According a this accurate with new must the risk to We securities derivatives resolution, be believe RWA. this adjustment associated as in of regulatory classified trading provides now profile. risk representation more a and

market is spread, risk. majority credit tied with Given aligns closely it of more credit the to corporate exposure bond our

of equity. lower which quarter important Taking corroborates has XX our our allocating XX consume but consider daily across credit in at a is not our than VaR ecosystem. way million to RWA, that that basis in third business the low RWA capital lower points also credit into consideration, BRL to or discipline peers, our only average Also

capital with a compared X.X BRL ratio Our the Last than more return. of capital year, announcements, BRL was indicates based slide profitability capital return. of XXX% on in distribution and billion years. returns ratio year, BIS summarize BRL while X% This dividends increased last and than the it industry. to X.X keeping shareholders this more total strategy conservative financial payout with is more when with And the billion to payout billion in ratio X XX.X Brazilian new our than buybacks capital our

goal for than operate ratio XX% Maffra As our between payout years. XX% the ratio. XX% earlier, should to Aiming mentioned next BIS in delivering to higher X keep

EPS Now ROTE let's see numbers. our and

evolution post share BRL per to continues year-over-year X% earnings Our increase and solid a increase achieving growth an XX% and X.XX, an quarter-over-quarter.

increase XQ ] points of and XXX points year-over-year 'XX, the During XXX with [ an in posted XX.X% ROTE quarter-over-quarter. basis XP basis

we Q&A. the Now to so remarks, moving then back can do final Maffra, he his to go and

Thanks, Victor.

are First, offering capital in to and quarter, most than to the levers the to service of is our our moats on delivering will we clients efficiency like before sophisticated returned to value discipline, proposition presented, product solid expanding our have billion the had indicating best BRL higher we we executed, last our properly and our we that believe emphasize things: deliver positive go excellence; results level XX force platform through objectives second, around billion company offering, manage BRL would feasible; our our shareholders. X track and more our sales billion are better evolving BRL train So and country, and complete each money we guidance; shareholders XX.X our we throughout X our net Once years. to XXXX to the commitment we return target segment by lastly, I this to and should that deliver quarter as new quarter Q&A, confirming enhancing another are with XX per third, with to

will Now Q&A the Andre session. start Parize

UBS. Thiago First Instructions] from [Operator question is Batista,

I have two questions.

the profitability profitability XP or what [ know or to you And I to And buy increase those of my guys for have Is or attention new relevant that of to you believe [indiscernible] individuals. the the BXC second but question, don't a or you went by about the of [ that guidance buy that are it XXX not? can long you amount more us to will ]? call the a have looking idea hold adviser first The give term? XP ], the hold level the one, ballpark way, in of

and a for employees, about they I first here. are pleasure Thiago, Out second one. the question. It's of there Victor your be you and will XXX are -- BXC, the question, thank to will advisers. answer the to take XXX

While on change because a a IFAs, in regulation to number Imagine total be you people had the see months need few as don't of the don't don't advisers the And the need any more IFA they on the managers, work not advisers they IFAs. we increase partners. that back. now IFAs, the that

they and number. now contract leaving agreements So like are are they under employee the IFA

So new the okay? going advisers, okay? Brazil, in And XXX if at and as look are to number because went it's internally, it's the at these of changing not profession you the out employees [indiscernible] So hired XXX the we down, regular are that becoming BXC they people because okay? people of regulation advisers leaving total of

take you. second Thank about will ROE. the question I Perfect.

our ROTE XX. of number Looking at

You be XXs. can the say by that our will of we the that. can guidance base mid- after deliver expect to return on high we index capital guidance, employed you is of And around our end

Okay.

Next question Rosman, is Eduardo from BTG.

more with well. allocation. new about up And talk came about it. talked to He capital information lot think as Victor, I he -- want he a I

terms for next the to there know wanted of year, kind in on scale about we the expect market growth of operational risk. more So maybe get of or there I mid-term? can could If what in RWA, is risk gains details --

efficiency grow to is eventually, improve you room more, if If there there.

Tier the I'm the bring X, of X the we of idea if do in least form issue right? day, years. level At a have Tier paid to what dividends the at the core an something payout payout work out to and for couple of see and buybacks, that end with can the eventually So down. you I -- to next years, have X so X also high years, you if understand your trying couple the and you we Now XX% probably wanted ability next to of of Tier room last You work very in can have in of right?

Okay. Thank you question, for your Rosman.

give color. numbers. is there leverage the RWA operational a in can They you First,

revenues Issuer you a If and ], the business, Services grew XX%. last the revenues Issuer look in Corporate Services our months RWA XX% basically (sic) [ grew & Corporate XX more at is which and in only capital-intensive the

marketing that So there gains the also structures gain now more in the when a as we RWA, efficient over bank they using the is as use -- revenue the full RWA. on And and can can between to relation make operational we go years you capacity. his in our

guidance can we and terms And of payout, Talking you levels in in after XXXX should paid XX%. net our expect of more reach income be that, XX% near stabilize that or about the should 'XX, to BIS ratio. our

Okay.

question next Our from JPMorgan. Fernandes Yuri from is

one Quick question. just on Rosman's

it XX.X%, reflect not any without next the capital sure still the making It generation should does Just BRL XX.X% to right? drop quarter. maybe billion, for X the

just on So this. may, second XX% the one, about And quickly line, Parize, what I quarter-over-quarter. with It happened decrease was very order a the others. if

bit this So can a provide that of quarter. line if of what hurt explanation you little

Yuri. buyback XX% end then, and dividend, it XX.X%. you it actually to the goes The XX.X%. considering question, Thank for Sorry. quarter BIS the And goes of the ratio after in your the to was

expect said, our that, our net As XX% And can between income. of earnings in X XX% more we than normalize after payout pay you and our XX% that of the next years. we will should ratio

half And new to bond. head we In going income. event. buy the tender just almost to undo all accounting. and had other our a of back, about the XXXX And notes issue question a quarter, outstanding second by we we beginning -- to CDI hedge quarter, of were had charged them the accounting, undoing notes net the the tender, going Remember this in Brazilian we that the XXXX revenue, and those one-off that they P&L and hedge we

the of cheaper one plus we than in the levels. that CDI all consider the carry transaction, bought you debt new is If they

this the expect levels events time, over next positive. you in we we that the one-off average and to the the other transaction revenue of had P&L quarter, should back reduced be But in quarter? this line that is So will

Our next Pierry, of from question Bank America. is Mario

let follow-up. a Guys, questions, quick three me you them two ask of

Maffra, IFAs, growing you're commissions paid salespeople, than the internal are revenues. about to I First talked they more right? one, faster However, at you retail using when look

So in fact, XX.X% previous we year ratio right, calculated a Last XX.X%, XX.X%. was quarter, of it this quarter.

So IFA salespeople. when do about your to as own And see you right, lower we this of the benefits commissions you mentioned, use as internal add XXX start people you quarter. had to

we're So SG&A and see they higher to IFA lower commissions. should by be I'm assuming going compensated

So did I that happen. not was why wondering

The second question is quick. very

and were revenues really year-over-year. looking the at this quarter flat flat expenses then loan you relatively when they talk one of from credit. -- that book out. you revenues we I event to is in just We on how be the If third the and revenues impact and can just clear, expenses, But think your on much is about export net see the did book

XXX to Was your credit However, credit went XX revenues? million from there revenues the BRL BRL million. on unusual anything

Thank you, Mario.

the channel quarter one. first like the in to in really to COGS a COGS the about change it's hard quarter So costs, from a see commission the change next making question BXC

primary we on QX, investment small environment banking have when pay pay see of if a change lot the of on time credit to commission, or period credit what other in we a you on in because revenue we And revenue we can COGS change commissions, it's So have mix, when you okay? make and you portfolio. issuance; the longer on it remember on when banking, compare you the XQ, this said and one, you what the a market, okay? okay? like we everything, when like to did this the on distribute lot You in distribute a do don't a in revenues we pay. retail distribute, from very we completely -- a trend So book year you market of When different X secondary

this mix. a That's to basically But revenue seeing not why if to it's trend change. a effect, you So you're look big okay? see longer like have

largest Expert, About not few positive, how okay? we because largest us So X, but years, second it it's much very investments. in the So don't about the one slightly if a not one, even not the the was one, the This it's world X, year for but financial, it's we spend year. negative open it's last was important on for okay? of

for but and So it's years it's it's not really slightly important take last will X one. the brand, some Victor the negative.

Thank question. About the for you Okay. had X we explanations. the credit,

is second this products higher NII of that flat, some NII. conventional they credit. first book with than during new lower were before. are price beginning renovated Basically, which new with by new this higher in than explanation. is and And profitable operations operations with The X the The of margin from normal have is almost quarter, but we the loan NII broker-dealer, more mature the one, the [indiscernible] loans the area with

just EBT gross That's follow gross for provide guidance Okay. profit you me margin. and right, margin, then up Maffra, because let like the here clear. on

Or at the where improvement running I come should coming see in margin? improvement XX% think XX% to the from? XX%, now. you're gross Does from it we margin. right The

your color Okay. some about the question. improvement. you the Talking for can give about Thank you we guidance,

First is operational leverage.

ratio the ratio over can improving this You level see we This efficiency our And year. keep expect the factor. will is one next in lowest ever. that

positive the internal force in EBT. those they the of basically, is make the together our that grow explain the money we And This they XXXX XXXX. they the grow, verticals as card, that expansion the being will -- They have. for loss 'XX. year period. lost other over first things also first Other is mentioned credit J-curve margins can lose is cross-sell of and Another 'XX. before own that This margins. and had example, money that sales positive also in in terms they And a guidance factor -- verticals X We accretive margin. verticals as in year start over of our

Okay.

is Sachs. question next from from Labarta Goldman Our Tito

on the of revenues. couple a Just questions

you line environment? a that Services there so line activity Issuer a line, on retail bit the Services for Continued quarter. in good think back think of you year to that sort revenues. help mean continue Just you down good next a year? higher into tough feel then mean from the and into XQ benefiting income there's think comps I grow DCM comes us this Just revenue sort XQ, to you rate understand evolve? think on revenues. how And about I you're room and Issuer a Do of fixed in bit there. in performance right? Is do dynamics continues been about year? growth little do next to How to that overall, the the

Thank your question. I'll is second of answer please, industry them DCM Brazil level. both the together, you for new in Tito. A

robust, Our activity likely, most same pipeline the and next the quarters. strong in remains remains

the and demand retail distribution well, fixed our is for coming channels, from institutional income very As both strong.

can those see competitiveness warehouse more DCM in and the impact So in in you bank both is we'll our our fixed income year? next income, line of And same. the the lines, fixed more and ] of next a increase consideration that corporate both into strong and can quarter lines. competitive level, over we the originate believe to also, take deals need more If [ we restructuring. We that

and we next optimists both year next are for the in So quarter.

Okay. clear. quick clarification. One Perfect. That's

anything Just ratio? a on the ratio X is that ratio, the just in to make loaded BIS else Tier for sure BIS is fully

fully is that loaded. Yes, It's it.

HSBC. from from is Neha Agarwala question Next

quick Just one on credit the a growth.

year-on-year. side? book a Our going Why was should expect we strong do more growth forward? on credit see credit we the flat What

up don't thing So main one we about want pile credit. important when credit XP, one us, point for we for think to

have cannot now X billion year XXX ahead back you credit. BRL us BRL saying that So like billion, we coming and XXX in like corporate expect here

credit. business this don't strategy. don't have to have the we We So pile up

Of risk course, have as we other warehouse banking business example, of grows, the wholesale higher amount from corporate to flows and for for from bank for lines, derivatives. bond volumes investment credit

And the give the okay? okay, that's fast. business to sure, here recycle not capital, recycle grows, growth grow it always the and as with nominal is terms strategy. So as It's always the for the same credit collateral. will idea but in to grows, business So some rate

So here, big any we don't credit to strategy portfolio okay? up have pile a

from is Safra. Vaz, Daniel question Next

looking trying So beyond X Experts. expenses, XP at I your here side, was see my to on

see So we expenses and other revenue, income net other the line. other

of quarter are that, coming can another positive and you so year sense recoveries operating comment have reversal please, higher than income way provisions. from you ago? So on incentives a we and a a were on get other what [indiscernible] of Can also these

And trying and on more in Or or income? release second equity name the associates. profit the your on is share your JVs and see color of to get

million BRL So quarter-over-quarter. XX went to it X negative BRL from million

maybe effects have pay any in stand higher here, So XP cost Expert. to seasonality a associates

get So it a here, color very if can you will be helpful.

you X for will Daniel. Thank in split parts here. the I the question, answer

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