XP Inc. (XPBR31): Adjusted net income increased 17% in the first quarter of 2022 to R$987 million

XP Inc. (XPBR31) recorded an adjusted net income of R$987 million in the first quarter of 2022 (Q1 22), an increase of 17% over R$846 million recorded in the same period of 2021 (Q1 21), it said. Company on Tuesday (3).

Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) in turn increased by 14% on the same basis of comparison, to reach R$ 1.19 billion in the quarter, compared to R$ 1.043 billion in the same period in the previous quarter.

In the period ending March 31, the company reached R$873 billion in assets in custody (AUC), a 22% increase year-over-year (in the first quarter of 21, the total number was R$715 billion), a 7% growth compared to previously. quarter of last year.

XP highlighted that despite a very challenging environment with the new Covid peak in Brazil at the beginning of the year and the conflict in Ukraine, total net inflows amounted to R$46 billion in the first quarter of 22 compared to R$48 billion in the fourth quarter of 2021 (the quarter fourth of the year 21), down 5% sequentially.

Adjusted for focused custody, the net funding amounted to R$30 billion, which, according to the company, enhances the resilience of the business model in the midst of a challenging scenario. This environment mainly affected the capital markets and customer activity, which reached its lowest level in January. Since then, operational trends have rapidly improved, with stronger performance in March across all of our channels and businesses.”

Total revenue was R$ 3.27 billion in the first quarter of 2022, an increase of 17% compared to R$ 2.78 billion in the same quarter of 2021. On the other hand, net revenue increased by 19% year-on-year, from R$ 2.628 billion to 2.628 billion Brazilian reals. $3.12 billion.

Thiago Mafra, CEO of XP Inc. In an earnings statement: “In an environment of high interest rates and volatility, we broke records in fixed income retail and on institutional tables, enhancing portfolio impact and diversifying our revenue.”

XP Inc. The total number of active customers reached 3.5 million in the first quarter of 2022, an increase of 17% over the same period last year, which was 3 million.

The loan portfolio totaled R$11.5 billion at the end of March, up 142% year-on-year. XP credit cards generated R$4.5 billion in transaction volume in the first quarter of this year, a ninefold increase from the same period last year. The number of active XP credit cards exceeded 308,000 in the first quarter, an increase of 316% year over year.

We continue on the path to achieving sustainable and strong financial results for our shareholders, with a focus on revenue growth, cost control, and excellence in the quality of service provided to clients. Despite the macroeconomic and geopolitical challenges, we started the year with favorable numbers for our business, with advances in both the number of advisors and clients. Looking at new business, we also performed positively, delivering 205% year-over-year growth in revenue from credit, cards, insurance and pensions. “

The NPS – the methodology used to measure customer satisfaction – reached 76 points in March 2022, two points more than that recorded in the same month the previous year.

The number of self-employed agents connected to the network reached 10,700, an increase of 24% year over year.

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