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XP Inc. (XP)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
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42.77-0.69 (-1.59%)
As of 3:58PM EDT. Market open.
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Previous Close43.46
Open42.97
Bid42.38 x 800
Ask42.51 x 800
Day's Range41.45 - 43.39
52 Week Range15.50 - 52.94
Volume528,828
Avg. Volume845,331
Market Cap23.6B
Beta (5Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)N/A
Earnings DateAug. 11, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est44.17
  • XP Inc. Reaches R$563 Billion Total AUC and 2.6 million Active Clients in September 2020
    GlobeNewswire

    XP Inc. Reaches R$563 Billion Total AUC and 2.6 million Active Clients in September 2020

    Individual Investors in B3 (in ‘000s) Individual Investors in B3 (in ‘000s)SÃO PAULO, Brazil, Oct. 14, 2020 (GLOBE NEWSWIRE) -- XP Inc. (Nasdaq: XP), a leading, technology-driven financial services platform and a trusted provider of low-fee financial products and services in Brazil, announced today 3Q20 KPIs, including Assets Under Custody, Net Inflow, Active Clients, Retail Equity DARTs and NPS. Assets Under Custody (in R$ billion)Total AUC reached R$563 billion at September 30, up 60% year-over-year and 29% quarter-over-quarter. Growth was driven by R$117 billion of net inflows and R$11 billion of market appreciation. Net inflows reaccelerated relative to 2Q20 and were positively impacted by an extraordinary equity inflow, a consequence of increased brand recognition among high net worth individuals. This corroborates with our strategy to accelerate the growth in the segment, now under Jose Berenguer’s leadership. Despite not being expected to bring short term Retail Revenues, this type of extraordinary equity custody is expected to generate several cross-selling opportunities across our ecosystem, particularly for Private Banking and Issuer Services.Net Inflow (in R$ billion)Net Inflow totaled R$117 billion in 3Q20, recovering from 2Q20 when the Covid-19 crisis and consequent lockdown weighed on results particularly in April and May. Average monthly Net Inflow, adjusted by the extraordinary equity inflow, increased 32% to R$12.9 billion in 3Q20 from R$9.8 billion in 2Q20. Over the quarter, flows were strong across all channels and brands, with the ongoing shift away from fixed income and savings into higher yielding products continuing to gain traction, due to low interest rates in Brazil combined with an underpenetrated market.Active Clients (in ‘000)Active clients grew 72% and 12% in 3Q20 vs 3Q19 and 2Q20, respectively. Consistent with 1H20, growth was strong through all channels, with Rico and Clear brands growing at a faster pace than XP. Furthermore, our first digitally held Expert event in July impacted five million people, contributing to the acceleration of client additions during the quarter.Retail Equity DARTs¹ (million trades)¹Daily Average Revenue TradesRetail Equity DARTs increased 4% sequentially, stabilizing on a very strong level, and 181% versus 2019 in 3Q20. The number of individual investors investing on the stock exchange continues to grow, as seen in the chart below, and we see further room for exponential growth ahead as investors in Brazil maintain a relatively low equity penetration rate.Individual Investors in B3 (in ‘000s)Source: B3 NPS (Net Promoter Score) and App RatingNPS, a widely known survey methodology used to measure customer satisfaction, reached 69 in September 2020. Maintaining a high NPS score is a priority for XP since our business model is built around client experience. The NPS calculation as of a given date reflects the average scores in the prior six months.Another highlight was XP Investimentos’ app, which was recently updated and currently maintains a 4.7 average rating in the two main app stores, with nearly 200.000 combined reviews.Non-GAAP MeasuresThis release includes certain non GAAP financial information We believe that such information is meaningful and useful in understanding the activities and business metrics of the Company’s operations. We also believe that these non GAAP financial measures reflect an additional way of viewing aspects of the Company’s business that, when viewed with our International Financial Reporting Standards results, as issued by the International Accounting Standards Board, provide a more complete understanding of factors and trends affecting the Company’s business. Furthermore, investors regularly rely on non GAAP financial measures to assess operating performance and such measures may highlight trends in the Company’s business that may not otherwise be apparent when relying on financial measures calculated in accordance with IFRS. We also believe that certain non GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of public companies in the Company’s industry, many of which present these measures when reporting their results The non GAAP financial information is presented for informational purposes and to enhance understanding of the IFRS financial statements. The non GAAP measures should be considered in addition to results prepared in accordance with IFRS, but not as a substitute for, or superior to, IFRS results. As other companies may determine or calculate this non GAAP financial information differently, the usefulness of these measures for comparative purposes is limited.About XP XP is a leading, technology-driven financial services platform and a trusted provider of low-fee financial products and services in Brazil. XP’s mission is to disintermediate the legacy models of traditional financial institutions by: * Educating new classes of investors; * Democratizing access to a wider range of financial services; * Developing new financial products and technology applications to empower clients; and * Providing high-quality customer service and client experience in the industry in Brazil.XP provides customers with two principal types of offerings, (i) financial advisory services for retail clients in Brazil, high-net-worth clients, international clients and corporate and institutional clients, and (ii) an open financial product platform providing access to over 600 investment products including equity and fixed income securities, mutual and hedge funds, structured products, life insurance, pension plans, real-estate investment funds (REITs) and others from XP, its partners and competitors.Forward Looking StatementsThis press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," “aim,” "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond XP Inc’s control.XP, Inc’s actual results could differ materially from those stated or implied in forward-looking statements due to several factors, including but not limited to: competition, change in clients, regulatory measures, a change the external forces among other factors.For any questions, please contact:Carlos Lazar, Head of Investor RelationsInvestor Contact: ir@xpi.com.br André Martins, Investor Relations SpecialistIR Website: investors.xpinc.com A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e7938f19-a192-46a1-adc7-1fc440383d15

  • GlobeNewswire

    XP Inc. Reduces Pricing for Online Trading by Eliminating Stock Brokerage Fees at Rico and Reducing XP Direct Fees by 75%

    SÃO PAULO, Brazil, Sept. 14, 2020 (GLOBE NEWSWIRE) -- XP Inc. (Nasdaq: XP), a leading, technology-driven financial services platform and a trusted provider of low-fee financial products and services in Brazil, announced the elimination of brokerage fees for online stock trades at Rico, our online-only solution for self-directed investors, and a reduction of 75% at XP Direct (B2C) for the same type of trades. Guilherme Benchimol, XP’s founder and CEO commented, “democratizing investments in Brazil has been the company’s core mission since its inception in 2001. Brazilians are in the early stages of an unprecedented opportunity to diversify their investments and shift allocations, which are still concentrated in high-fee fixed income products. Our decision to reduce online brokerage fees at Rico and XP Direct is aimed at lowering barriers for millions of Brazilians to invest in XP’s high-quality product platform and content to support them in their long-term journeys.” He added, “fostering the market and facilitating access to superior alternatives is even more important in a low interest rate environment.”In terms of the impact on XP’s financials, Bruno Constantino, CFO, estimates a 2% reduction to total gross revenue based on Rico and XP Direct online equity trade revenues in 1H20. “We strongly believe that the long-term benefits to our ecosystem related to the reduction in fees will more than offset short-term financial impacts. As we saw when we successfully eliminated brokerage fees at Clear, we expect ongoing growing in Active Clients, their engagement and satisfaction and, consequently, a lower client acquisition cost.”Exhibit 1: Financial Impact1H20(in R$ mn)% of Gross Revenue XP Inc. Total Gross Revenue3,897100% Online Brokerage Commissions (Rico + XP Direct)762% Mr. Constantino continued, “furthermore, we understand that the initiative has potential to drive higher Net Inflows, AUC and cross selling opportunities across the platform to generate and grow other revenues. The strategic move will accelerate the disruption in the Brazilian financial markets led by XP, and while two million new individuals have joined the B3 over the past two years, we are still in the early stages of this. The Brazilian retail investor, with less than R$3 million, maintains around a 3% allocation to equities, which is very low. We believe that the ongoing equitization process in Brazil will accelerate and that number of individuals in the stock market could surpass 10 million in the next two to three years.” In practical terms, from September 14th onwards, self-directed online trades of stocks and BDRs at Rico and XP Direct will follow the new price table below (Exhibit 2). Pricing for trades of options, commodities and other derivatives is not impacted. Pricing for orders executed online by IFA clients and through trading desks or push notifications (IFA and Direct) is also not impacted.Exhibit 2: Pricing Old vs NewOnline Brokerage Fee (Full - No Discount)Rico - OldRico - NewXP Direct - OldXP Direct - New Day TradeR$ 7.50R$ 0.00R$ 12.00R$ 2.90 Swing TradeR$ 7.50R$ 0.00R$ 18.90R$ 4.90 We are proud that the scale and diversification that our business model reached throughout the years has allowed us to contribute to the development of the Brazilian capital market while accelerating our growth. As the leader in the equities and derivatives retail markets, we believe that XP Inc. can further consolidate its leadership position following the recently announced pricing changes. About XPXP is a leading, technology-driven financial services platform and a trusted provider of low-fee financial products and services in Brazil. XP’s mission is to disintermediate the legacy models of traditional financial institutions by: * Educating new classes of investors; * Democratizing access to a wider range of financial services; * Developing new financial products and technology applications to empower clients; and * Providing high-quality customer service and client experience in the industry in Brazil.XP provides customers with two principal types of offerings, (i) financial advisory services for retail clients in Brazil, high-net-worth clients, international clients and corporate and institutional clients, and (ii) an open financial product platform providing access to over 600 investment products including equity and fixed income securities, mutual and hedge funds, structured products, life insurance, pension plans, real-estate investment funds (REITs) and others from XP, its partners and competitors.Forward Looking StatementsThis press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond XP Inc’s control.XP, Inc’s actual results could differ materially from those stated or implied in forward-looking statements due to several factors, including but not limited to: competition, change in clients, regulatory measures, a change the external forces among other factors.For any questions, please contact:Carlos Lazar, Head of Investor RelationsInvestor Contact: ir@xpi.com.br André Martins, Investor Relations Specialist IR Website: investors.xpinc.com

  • GlobeNewswire

    XP Inc. Announces Wealth Management Partnership

    SÃO PAULO, Brazil, Sept. 11, 2020 (GLOBE NEWSWIRE) -- XP Inc. (Nasdaq: XP), a leading, technology-driven financial services platform and a trusted provider of low-fee financial products and services in Brazil, announced today that the company has formed a partnership in the Wealth Management segment with a group of experienced private bankers that are former executives of Credit Suisse Hedging-Griffo. XP Inc. will hold a 49.9% minority stake in the company, with the transaction complementing the existing offering to ultra-high-net-worth individuals. Further, the partnership reinforces XP’s mission of attracting talented and long-term oriented entrepreneurs to our ecosystem.The team’s expertise in Wealth Management combined with XP’s wide range of products and complementary services, including capital markets, structured products and collateralized credit present opportunities to further exploit synergies and optimize clients’ portfolios. The company will start operations as soon as the executives comply with non-compete agreements with their former employer.Private Banking is one of the key markets that management has targeted for further expansion by leveraging the company’s continuous improvement in its product platform and best-in-class customer service. According to the latest Anbima data, in July 2020 the Brazilian Private Banking market (individuals or groups with more than R$3 million in investments) accounted for R$1.4 trillion in total assets. XP Inc. will continue to actively seek opportunities in all markets to partner with companies and entrepreneurs that share XP’s purpose and values and can add meaningful value to the business over time.According to Guilherme Benchimol, XP´s founder and CEO, “This unique transaction allows us to partner with successful professionals with a proven track record in the Brazilian Private Banking market. We are confident that this initiative will strengthen our platform and further disrupt the Private Banking segment, which is still very concentrated in Brazil.”About XPXP is a leading, technology-driven financial services platform and a trusted provider of low-fee financial products and services in Brazil. XP’s mission is to disintermediate the legacy models of traditional financial institutions by: * Educating new classes of investors; * Democratizing access to a wider range of financial services; * Developing new financial products and technology applications to empower clients; and * Providing high-quality customer service and client experience in the industry in Brazil.XP provides customers with two principal types of offerings, (i) financial advisory services for retail clients in Brazil, high-net-worth clients, international clients and corporate and institutional clients, and (ii) an open financial product platform providing access to over 600 investment products including equity and fixed income securities, mutual and hedge funds, structured products, life insurance, pension plans, real-estate investment funds (REITs) and others from XP, its partners and competitors.Forward Looking StatementsThis press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond XP Inc’s control.XP, Inc’s actual results could differ materially from those stated or implied in forward-looking statements due to several factors, including but not limited to: competition, change in clients, regulatory measures, a change the external forces among other factors.For any questions, please contact:     Carlos Lazar, Head of Investor RelationsInvestor Contact: ir@xpi.com.br  André Martins, Investor Relations Specialist IR Website: investors.xpinc.com