XP Inc.'s Q2 2025: Unraveling Contradictions in Capital Generation, Dividends, and Growth Guidance

Capital generation and dividends/buybacks, retail net new money guidance, growth expectations, capital generation and payout strategies, productivity of internal advisors and IFAs are the key contradictions discussed in XP Inc.'s latest 2025Q2 earnings call.



Client Assets and Revenue Growth:
- XP Inc. reported client assets of BRL 1.9 trillion, a 17% year-over-year growth, with total advisers at 18,200.
- Gross revenues marked BRL 4.7 billion, a 4% growth year-over-year.
- This was supported by a focus on evolving client experience and product offerings, despite a more challenging economic environment.

Profitability and Capital Management:
- The company achieved the highest net income in its history, reaching BRL 1.321 billion, an 18% year-over-year growth.
- ROE expanded to 24.4%, a 223 basis points increase from the previous quarter.
- This was driven by capital discipline, operational efficiency, and a share buyback program that canceled shares acquired, enhancing EPS growth beyond net income.

Retail Strategy and Net New Money:
- Retail revenues grew by 9% year-over-year, with equities contributing to this growth.
- The company aims to achieve BRL 20 billion in retail net new money per quarter this year, focusing on channel diversification and new product offerings.
- This is supported by initiatives like launching new verticals, expanding sales teams, and enhancing intelligent segmentation.

Wholesale Bank and Corporate Services:
- Corporate revenues posted a 14% increase year-over-year, supported by capacity to offer different solutions to clients.
- Issuer services experienced a 30% decrease year-over-year due to tough comps from the previous year.
- The strategy involves increasing the wholesale bank's book to benefit from anticipated corporate appetite for new issuance before potential regulatory changes impact the market.