XP Inc. reported a record adjusted net income of R$1.236 billion in the first quarter of 2025, marking a 20% increase year-over-year. Adjusted diluted earnings per share (EPS) grew 24% year-over-year to R$2.29, reflecting enhanced profitability.
Total gross revenue reached R$4.557 billion, a 7% increase year-over-year, driven primarily by strong performance in retail and corporate & issuer services. Retail revenue grew 10% year-over-year to R$3,441 million, with fixed income becoming the largest revenue contributor within retail for the first time, growing 44%.
Total client assets expanded to R$1.3 trillion, up 13% year-over-year, and the combined total of client assets, Assets Under Management (AUM), and Assets Under Administration (AUA) reached R$1.8 trillion, representing 13% year-over-year growth. The annualized adjusted Return on Average Equity (ROAE) was 24.1%, up 340 basis points year-over-year, and adjusted Return on Tangible Equity (ROTE) was 30.2%, up 474 basis points year-over-year.
The company's last twelve months (LTM) efficiency ratio reached 34.1%, its lowest level since the IPO, demonstrating continued cost discipline and operational leverage. XP also announced a new share buyback program of R$1 billion, aligning with its capital distribution plan and its target BIS Ratio of 16% to 19% by 2026.
Strategic initiatives such as financial planning for clients with assets above R$300,000 yielded positive results, including a twofold increase in insurance conversion and a 43% higher net inflow for clients utilizing the service. New distribution channels contributed approximately 60% of net new money in Q1 2025.
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