Xp Incorporation Reports Record Net Income Amid Challenges in Growth Segments

Xp Incorporation reported a record net income of BRL 1.321 billion, an 18% growth YoY, despite challenges in corporate net new money and investment banking activities. The company saw significant advancements in client assets, retail revenue, and life insurance and retirement plans expansion. However, earnings before taxes were 5% lower YoY due to the absence of previous year's overhead impacts. Xp aims to maintain a strong capital position and distribute dividends/share buybacks.

Xp Incorporation (XP) reported a record net income of BRL 1.321 billion for the second quarter of 2025, marking an 18% year-over-year (YoY) growth [1]. Despite facing challenges in corporate net new money and investment banking activities, the company achieved significant advancements in client assets, retail revenue, and life insurance and retirement plans expansion. However, earnings before taxes were 5% lower YoY due to the absence of previous year's overhead impacts [1].

The company's assets under management (AUM) and administration (AUA) totaled BRL 1.9 trillion, representing a 17% YoY growth, highlighting Xp's ability to attract and retain client investments [1]. The return on equity (ROE) for the quarter was 24.4%, showing a 223 basis points expansion compared to the second quarter of 2024, indicating efficient use of equity capital and strong profitability [1].

Xp's diluted earnings per share (EPS) grew by 22% YoY, driven by the execution of a share buyback program, reflecting the company's commitment to enhancing shareholder value [1]. The company aims to maintain a strong capital position and distribute dividends/share buybacks.

References:
[1] https://www.tipranks.com/news/company-announcements/xp-incorporation-reports-record-net-income-amid-growth-challenges