XP Inc. announces adjusted net inflows of R $ 47 billion, credit portfolio of R $ 8.6 billion and TPV of R $ 3.3 billion in 3Q21

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SÃO PAULO, Brazil, October 11, 2021 (GLOBE NEWSWIRE) – XP Inc. (Nasdaq: XP), a leading technology-driven platform and trusted provider of low-cost financial products and services in Brazil, announced today hui its KPI for 3Q21. The Portuguese version of this press release can be found in the Press Releases section of the IR website.

Banking

Credit portfolio¹

Our credit portfolio reached 8.6 billion reais as of September 30, 2021, with an increase of 122% since the start of the year. The duration of our credit book was 3.3 years, with a 90-day non-performing loan (NPL) ratio of 0.0%.

¹This portfolio does not include intercompany and credit card related loans and receivables

POS credit card

As of 3Q21, XP Visa Infinite credit cards were generated 3.3 billion reais in TPV (Total Purchased Value), growth of 55% from one quarter to the next.

“Although we are at a very early stage of our banking initiatives, primarily collateralized credit and credit cards, our data indicates strong cross-selling potential on our platform. Our goal is to increase engagement with our customers, providing a complete and integrated experience, enhancing our long-term relationship with our customers, ”commented Thiago Maffra, CEO of XP Inc.

Investments

Assets in custody

The total AUC was 789 billion reais as of September 30, up 40% year over year and down 3% quarter over quarter. Year-over-year growth was driven by R $ 219 billion in net inflows and R $ 7 billion in market appreciation. The depreciation of the market during 3Q21 offset most of the appreciation seen in recent quarters.

Total net entry

Total net inflows were 37 billion reais in 3Q21 compared to BRL 75 billion in 2Q21. Adjusted for concentrated storage, the net collection reached 47 billion reais, 16 billion BRL per month, against 45 billion BRL in 2Q21 and reflecting the strong performance of the IFA and Direct channels of the XP brand.

Active clients

Active clients increased by 25% and 5% in 3Q21 vs. 3Q20 and 2Q21, respectively, reaching 3.3 million. Average monthly customer additions increased 6% sequentially, from 49,000 in 2Q21 to 52,000 in 3Q21.

“Despite the more difficult environment, with interest rates in an upward trend, we expect to continue to see a healthy growth rate in our key KPIs, due to a diverse business model and industry. financial still very concentrated in Brazil ”, commented Bruno Constantino. , CFO of XP Inc.

Gross additions to the IFA network

IFA gross additions totaled 1,188 in 3Q21, up 30% year on year and stable from quarter to quarter.

Average Daily Retail Transactions¹

Retail DATs totaled 2.6 million in 3Q21, remaining relatively stable quarter over quarter and year over year.

¹Average daily trades including stocks, REITs, options and futures

NPS (Net Promoter Score)

Our NPS, a widely known survey methodology used to measure customer satisfaction, was 77 in September 2021, reflecting our continued efforts to provide superior customer service at a lower cost. Maintaining a high NPS score remains a priority for XP since our business model is built around the customer experience. The calculation of the NPS on a given date reflects the average scores of the previous six months.

Publication of third quarter results and conference call

XP will release its full third quarter 2021 financial results on November 3, 2021 after market close. We will also be holding a conference call the same day at 5:00 p.m. ET (6:00 p.m. BRT) to discuss the results in more detail.

Non-GAAP measures

This press release includes certain non-GAAP financial information. We believe this information is meaningful and useful in understanding the business and business metrics of the Company’s operations. We also believe that these non-GAAP financial measures reflect an additional way of looking at aspects of the Company’s business which, when examined with our results in accordance with International Financial Reporting Standards, as published by the International Accounting Standards Board, provide a more comprehensive understanding of factors and trends. affecting the business of the Company. In addition, investors routinely rely on non-GAAP financial measures to assess operational performance and such measures may highlight trends in the Company’s business that might otherwise not be apparent when based 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 valuation of public companies in the Company’s industry, many of which present these measures in the presentation. of their results. Non-GAAP financial information is presented for informational purposes and to improve understanding of IFRS financial statements. Non-GAAP measures should be considered in addition to results prepared in accordance with IFRS, but not as a substitute or superior to IFRS results. Because other companies may determine or calculate this non-GAAP financial information differently, the usefulness of these measures for comparison purposes is limited.

About XP

XP is a leading technology-driven platform and trusted provider of low-cost financial products and services in Brazil. XP’s mission is to disintermediate legacy models from traditional financial institutions by:

  • Train new categories of investors;

  • Democratize access to a wider range of financial services;

  • Develop new financial products and technological applications to empower clients; and

  • To provide high quality customer service and customer experience in industry in Brazil.

XP provides clients with two main 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) a platform of open financial products providing access to more than 800 investment products, including equities and fixed income securities, mutual and hedge funds, structured products, life insurance, pension plans, real estate investment funds (REITs) and others of XP, its partners and competitors.

Forward-looking statements

This 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 of their first publication and are based on expectations, estimates, forecasts and projections as well as management’s beliefs and assumptions. Words such as “expect”, “anticipate”, “should”, “believe”, “hope”, “aim”, “target”, “plan”, “objectives”, “estimate”, “potential”, “Predict,” “may”, “will”, “could”, “could”, “intention”, variations of these terms or the negative of these terms and similar expressions are intended to identify such statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances beyond the control of XP Inc. Actual results of XP, Inc. could differ materially from those stated or implied in the statements. forward looking due to several factors including, but not limited to: competition, changing customers, regulatory actions, changing external forces among other factors.

CONTACT: For any questions, please contact: André Martins Antonio Guimarães Marina Montemor Investor Contact: [email protected] IR Website: investors.xpinc.com


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