XP Surges Ahead: Record-Breaking Q1 2025 Results Showcase Unparalleled Growth
The Brazilian financial powerhouse XP has once again demonstrated its exceptional growth trajectory with outstanding first-quarter (Q1) 2025 results, marking a new milestone in the company's history. Thiago Maffra, CEO of XP, proudly presented the key highlights from the quarter during the Q1 2025 earnings call.
Client assets under management and administration (AUM and AUA) reached a remarkable BRL 1.8 trillion, representing a 13% year-over-year growth. This achievement underscores the company's continued execution of its strategic initiatives, yielding high results consistently. The number of registered advisers has also increased by 2%, reaching 18,100, while the active client base showed 2% year-over-year growth.
XP's gross revenues soared to BRL 4.6 billion, marking a 7% increase from the same period last year. Notably, earnings before tax (EBT) grew by BRL 1.3 billion, with net income hitting an all-time high of BRL 1.236 million in the company's history, representing a 20% year-over-year growth. The return on equity (ROE) reached an impressive 21%, with a 340 basis points expansion from the previous quarter.
"Our ability to grow our business while maintaining capital discipline is truly remarkable," Thiago Maffra emphasized during the call. "We are proud of this achievement, which demonstrates our capacity to navigate different market conditions and capitalize on opportunities."
Victor Mansur, CFO of XP, elaborated further on the company's capital ratio, stating that it has increased to 19%, a 130 basis point increase from the previous quarter. This milestone highlights the company's commitment to maintaining a healthy financial position while driving growth.
The net income growth was significantly higher than the diluted earnings per share (EPS) growth, which increased by 24% year-over-year. Thiago Maffra attributed this disparity to the ongoing share buyback program strategy, stating that XP has canceled its previous treasury shares and initiated a new BRL 1 billion share buyback program.
Innovative approaches have been at the core of XP's growth strategy. The company has expanded its institutional client assets, providing a more comprehensive view of total client assets, AUM, and AUA. This move enables investors to better understand the company's ecosystem. Notably, net new money reached BRL 24 billion in Q1 2025, representing a staggering 79% year-over-year growth.
XP's retail strategy has also played a crucial role in its success. With the most complete and sophisticated product platform in Brazil, XP represents roughly 50% of the market share in equities, futures, FX, options, and ETFs, as well as corporate credit traded volumes and fixed income analysis.
Thiago Maffra emphasized that XP's top-of-mind position is a vital lever to capture market share opportunities. The company's confidence in navigating different weather conditions while benefiting from operational leverage will undoubtedly propel its future growth trajectory."
