SÃO PAULO–(BUSINESS WIRE)–XP Inc. (NASDAQ: XP) (“XP” or the “Company”), a leading tech-enabled platform and a trusted pioneer in providing low-fee financial products and services in Brazil, today reported its financial results for the second quarter of 2021.

To our shareholders

It is a great honor and responsibility to be writing my first letter to shareholders as the CEO of XP Inc. Being Guilherme’s successor after he occupied the role for twenty years is an honor, and on behalf of everyone at XP I would like to thank him for inspiring us and to have believed in a dream that became the company we are all proud to be part of today. Guilherme will remain as involved in the new role as he has always been in the company, but focused on strategic agendas, People and Culture and long-term planning.

Looking into the future, my mission is to continue the process of disruption we have been leading in the Brazilian financial industry. One of the main pillars that will allow us to continue to grow our main performance metrics and enter new markets is the digital transformation underway at the company, which I have been following closely since its inception.

The focus and robustness in technology and data allow us to be an increasingly agile company with strong adaptability, launching high-quality products, services and functionalities in a short period. In the current competitive scenario, which is undoubtedly more challenging than in the past, we believe that these advantages will be decisive in our journey to delight our customers.

In this context, I would like to share some of the main initiatives maturing within the company, which we believe have great potential to improve the experience of existing clients, and increase our addressable market in terms of new customers and revenue in the coming years. This objective can be achieved organically and complemented by inorganic movements as well, as recent acquisitions show.


The Banking front, in which we have successfully evolved according to recent KPIs, and which currently includes Credit and Credit Card, is one of the great levers on the path to address the entire financial journey of our clients. The following short-term step is the launch of our Digital Account in 2021, and we will continue with a series of additional features in 2022.

We believe that with our 100% digital and low-cost value proposition, we will strengthen the bond with our customers, especially important at a time when innovations such as PIX and Open Banking bring additional dynamism to the sector and benefits to consumers.

Services to Companies – from SMB to Corporate

In the companies’ segment, in which we already have tens of thousands of customers representing custody of more than R$50 billion, we have made substantial investments to expand the existing range of products, optimize the experience for this profile and increasingly improve our commercial structure. By combining Credit, Cash Management, Insurance and Investment Solutions, we will be increasingly competitive, exploiting our distribution capacity to transform the Corporate market as we’ve done for Individuals.

Insurance and Private Pension

Finally, it is worth mentioning the importance of Insurance and Private Pension products have achieved in recent years and the enormous potential we see for the future. In Insurance, we already act as relevant Life distributors through B2B and B2C channels and we intend to expand our presence in the short term to other segments with synergy and cross-sell opportunities.

In Private Pension, despite the expressive growth and being at the top of the industry on net inflows, we still have a minimal fraction of the R$1 trillion total addressable market and we continue to add new features and managers to our platform, as well as developing specific commercial capabilities to the product in our network.

We estimate that the Brazilian financial sector should reach a total revenue of around R$800 billion in 2021, of which XP represents just over 1% based on the last twelve months. Together with a series of other possible avenues for growth, the new initiatives mentioned will allow us to address over the next three years R$350 billion from this pool, compared to the current estimated R$110 billion.

We do not doubt that our culture, customer focus and unique and constantly evolving business model will enable us to achieve great milestones in the coming years. Over the next few months we will bring more visibility into the plans mentioned above.

Finally, I would like to thank all our stakeholders for their trust and reinforce our commitment to creating sustainable value in the long term, connecting the dots, acting ethically and with the customer at the center of decisions. The growth opportunities are plenty and you can be sure that we are focused on finding the paths to explore them in the best possible way, we are confident that we are only at the beginning of our history.

Thiago Maffra, CEO


Key Business Metrics






Operating and Financial Metrics (unaudited)
AUC (in R$ bn)






Active clients (in ‘000s)






Retail – gross total revenues (in R$ mn)






Institutional – gross total revenues (in R$ mn)






Issuer Services – gross total revenues (in R$ mn)






Digital Content – gross total revenues (in R$ mn)






Other – gross total revenues (in R$ mn)






Company Financial Metrics
Gross revenue (in R$ mn)






Net Revenue (in R$ mn)






Gross Profit (in R$ mn)






Gross Margin



63 bps


247 bps

Adjusted EBITDA1 (in R$ mn)






Adjusted EBITDA margin



463 bps


159 bps

Adjusted Net Income1 (in R$ mn)






Adjusted Net Margin



485 bps


207 bps

(1) See appendix for a reconciliation of Adjusted Net Income and Adjusted EBITDA

Operational Performance

Credit Portfolio1 (in R$ bn)

Our Credit portfolio reached R$6.8 billion as of June 30, 2021, a 43% increase quarter-over-quarter. The duration of our credit book was 3.5 years, with a 90-day Non-Performing Loan (NPL) ratio of 0.0%.

¹This portfolio does not include Credit Card related loans and receivables

Credit Card TPV (in R$ bn)

2Q21 was the first full quarter since officially launching our credit card. For the quarter, we generated R$2.1 billion of TPV (Total Payment Value), a growth of 316% quarter-over-quarter, reinforcing the power of XP’s comprehensive platform.

Assets Under Custody (in R$ bn)

Total AUC reached R$817 billion at June 30, up 88% year-over-year and 14% quarter-over-quarter. Year-over-year growth was driven by R$298 billion of net inflows and R$83 billion of market appreciation. Our growth reinforces the strength and resiliency of our business model, distribution capabilities, product offerings, innovation and culture.

Net Inflows (in R$ bn)

Net Inflows were up 9% quarter-over-quarter, and 159% year-over-year. Flows were strong across all channels and brands, including over R$30 billion concentrated equity inflows at XP Private, awarded by Euromoney as Latin America’s best bank for wealth management 2021.

Active Clients (in 000’s)

Active clients grew 33% and 5% in 2Q21 vs 2Q20 and 1Q21, respectively. Average monthly client additions decreased to 49,000 in 2Q21 from 72,000 in 1Q21, primarily reflecting slower activation at Clear, following lower market trading volumes, specifically futures.

IFA Network Gross Adds

IFA Network gross additions totaled 1,198 in 2Q21, up 165% year-over-year and 31% quarter-over-quarter.

Retail DATs¹ (mn trades)

¹Daily Average Trades, including Stocks, REITs, Options and Futures

DATs totaled 2.7 million in 2Q21, a decline of 18% on a sequential basis following a decline in B3 traded volume versus a strong 1Q21, when futures volumes reached record highs. Despite the intense volatility and activity during 2Q20, attributable to the Covid-19 outbreak, total DATs were stable on a year-over-year basis.

Net Promoter Score (NPS)

Our NPS, a widely known survey methodology used to measure customer satisfaction, was 76 in June 2021, reflecting our ongoing 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 client experience. The NPS calculation as of a given date reflects the average scores in the prior six months.

2Q21 Revenue Breakdown

Total Gross Revenue (in R$ mn)

Total Gross Revenue reached an all-time high, driven revenue diversification and growth in different business channels, increasing 57% from R$2.0 billion in 2Q20 to R$3.2 billion in 2Q21, reinforcing the strength of our business model. The increase was mainly driven by strong growth in (i) the Retail business, which contributed with 84% of the growth year-over-year, (ii) Institutional business, with the best quarter recorded so far – contributing with 19% of the growth quarter-over-quarter – and (iii) Issuer Services, which contributed with 16% of the growth year-over-year. Regarding products, Fixed Income activity was intense in both Retail and Institutional, benefiting from the recent interest rates increase in Brazil.


Retail Revenue (in R$ mn)

Retail revenue grew 66% from R$1.5 billion in 2Q20 to R$2.5 billion in 2Q21. Revenue generation was resilient despite stable volumes in DATs, which reinforces the importance of our diversified and comprehensive platform, with suitable products for different economic cycles and client’s demands. Increases in structured operations distribution, fixed income secondary volumes and primary market activity more than offset the steady trading volume in equities and futures.

In 2Q21, Retail-related revenues represented 82% of consolidated Net Income from Financial Instruments, as per the Accounting Income Statement, and were composed of Derivatives with Retail Clients, Fixed Income secondary transactions, and Floating, among others.

LTM Take Rate (LTM Retail Revenue / Average AUC)

The take rate for the last twelve months ended June 30, 2021 remained stable compared to the comparable period a year ago. Our ability to add new products and services in the platform – such as credit cards and credit – coupled with diversified revenue profile, could keep our take rate stable, despite strong AUC growth during the period, pricing reductions in online brokerage in 3Q20 and modest contributions from performance fees in the 2Q21. The resilience in the take rate reinforces the power of the ecosystem and ongoing product development, positioning XP as the one of the main beneficiaries of the ongoing financial deepening in Brazil.

Note: LTM Take Rate (LTM Retail Revenue / Average AUC). Average AUC = (Sum of AUC from the beginning of period and each quarter-end in a given year, being 5 data points in one year)/5


Institutional Revenue (in R$ mn)

Institutional gross revenue totaled R$375 million in the 2Q21, up 13% from R$333 million in 2Q20. Fixed Income activity was strong – benefiting from recent increases in interest rates in Brazil – driving the channel to record its best quarter so far, despite high equity trading volumes in 2Q20.

In 2Q21, Institutional revenue accounted for 12% of consolidated Net Income from Financial Instruments, as per the Accounting Income Statement, and was composed mostly of Fixed Income secondary transactions and Derivatives, among others.

Issuer Services

Issuer Services Revenue (in R$ mn)

Issuer Services revenue expanded 293% year-over-year from R$65 million in 2Q20, negatively impacted by the Covid-19 outbreak, to R$255 million in 2Q21. This increase was driven by (1) Equity Capital Markets (ECM), with 8 executed deals vs 2 in 2Q20, and (2) our Debt Capital Markets (DCM) division, with participation in 62 deals vs 22 in 2Q20. Going forward, XP will remain committed to further developing Capital Markets in Brazil as one of the company’s main strategies.

In 2021, XP ranked #1 in REITs, CRA (agribusiness certificate of receivable) and CRI (real-state certificate of receivable).

Digital Content and Other

Digital Content Revenue

Gross revenue totaled R$29 million in 2Q21, down 35% from R$46 million in 2Q20. Our digital content plays an important role in educating Brazilians and making them more proficient in financial products and services. It also enhances client’s relationships and attracts new clients that grow our retail platform. 2Q21 trends remained pressured by the absence of in-person events and courses.

Other Revenue

Other revenue decreased 28% in 2Q21 vs. 2Q20, from R$123 million to R$88 million, mainly driven by lower results from our asset and liability management due to fewer arbitrage opportunities in the period – in connection with a lower sovereign bonds assets volume in our balance sheet.

In 2Q21, other revenue accounted for 6% of consolidated Net Income from Financial Instruments, as per the Accounting Income Statement, composed mostly of interest on adjusted gross cash and results related to our asset and liability management.


COGS rose 54% from R$579 million in 2Q20 to R$891 million in 2Q21, following the expansion in overall Retail Revenues. The gross margin expanded 63 bps, from 69.8% to 70.5% mainly due to channel mix shifts, and despite the impact of long-term incentives paid to the IFA network.

SG&A Expenses

SG&A expenses (excluding share-based compensation) totaled R$900 million in 2Q21, up 41% from R$638 million in 2Q20. Despite growing our headcount by 53% year-over-year, continuously investing in technology and new verticals, and deploying new products, we increased efficiency, reducing expenses as a percentage of net revenue by 340 bps.

Share-Based Compensation (in R$ mn)

Through 2Q21, we have granted approximately half of the current approved program authorizing dilution of up to 5%. Expenses related to the program remained steady compared to 1Q21. We expect to use the approved dilution as originally planned: within five years from the IPO. A portion of Share-Based Compensation is related to IFAs and allocated in COGS.

Adjusted EBITDA¹

¹ See appendix for a reconciliation of Adjusted EBITDA.

Adjusted EBITDA grew 77%, from R$704 million to R$1,245 million and margins expanded from 36.6% to 41.3%, a result of a scalable business model, with significant cross-sell and operating leverage opportunities. Operating leverage benefits as we increase penetration of sophisticated financial products in our client base, which still is currently low. The main drivers in the Adjusted EBITDA growth and margin expansion were: (1) top-line expansion, mainly coming from Retail; (2) lower COGS as a percentage of Net Revenues, and consequently higher gross margins and (3) operating leverage in SG&A.

Adjusted Net Income¹

Adjusted Net Income grew 83%, from R$565 million in 2Q20 to R$1,034 million in 2Q21, in connection with the factors explained in the Adjusted EBITDA plus a lower effective tax rate. Our effective tax rate decreased from 11.4% in the 2Q20 to 7.1% in 2Q21, mainly due to our current revenue and expense mix across subsidiaries. Our Adjusted Net Margin expanded by 485 bps to 34.2% in 2Q21.

¹ See appendix for a reconciliation of Adjusted Net Income.

Cash flow

(in R$ mn)




Cash Flow Data
Income before income tax




Adjustments to reconcile income before income tax




Income tax paid




Contingencies paid




Interest paid




Changes in working capital assets and liabilities




Adjusted net cash flow (used in) from operating activities




Net cash flow (used in) from securities, repos, derivatives and banking activities




Net cash flows from operating activities




Net cash flows from investing activities




Net cash flows from financing activities




As of June 30, 2021, we now classify (i) financial bills, foreign exchange portfolio and credit card operations as net cash (used in) from banking activities. (ii) the commissions and incentives to our IFA network as adjusted net cash flow from investing activities.

Net Cash Flow Used in Operating Activities

Our net cash flow used in Operating activities represented by Adjusted net cash flow (used in) from operating activities (which in management views as a more useful metric to track the intrinsic cash flow generation of the business) increased to R$2,086 million for 2Q21 from R$1,442 million in 1Q21, and from R$1,212 million in 2Q20 driven by:

  • Higher balance of securities and derivatives that we hold in the ordinary course of our business as a Retail investment distribution platform and as an Institutional broker dealer (with respect to the sale of fixed income securities and structured notes);
  • Our strategy to allocate excess cash and cash equivalents from treasury funds, from Floating Balances and from private pension balances to securities and other financial assets. These balances may fluctuate substantially from quarter-to-quarter and were the key drivers to the net cash flow from operating activities figures;
  • Increases in our banking activities from loans operations, deposits mainly derived from time deposits, structured operations certificates (COEs) and other financial liabilities which include financial bills as a result of our expected growth in new financials services verticals;
  • Combined with non-cash expenses consisting primarily of (i) share based plan of R$126 million in 2Q21 and R$24 million in 2Q20 and (ii) depreciation and amortization of R$58 million in 2Q21 and R$40 million in 2Q20, our income before tax was R$ 1,180 million in 2Q21 and R$736 million in 2Q20. The total amount of adjustments to reconcile income before income taxes was R$178 million in 2Q21 and R$127 million in 2Q20.

Net Cash Flow Used in Investing Activities

Our adjusted net cash flow used in investing activities (which in management’s view is a more useful metric to track the inherent cash flow used in investing activities) increased from R$550 million in 1Q21 to R$1,248 million in 2Q21 and increased from R$92 million in 2Q20 to R$1,248 million in 2Q21, primarily affected by:

  • Investments related to our IFA network, which increased from R$387 million in 1Q21 to R$1,102 million in 2Q21 and from R$55 million in 2Q20 to R$1,102 million in 2Q21.
  • The investment in intangible assets, mostly IT infrastructure and software development capitalization, which decreased from R$114 million in 1Q21 to R$80 million in 2Q21 and increased from R$27 million in 2Q20;
  • Our investments in FinTech associates and joint ventures of R$37 million in 2Q21 and R$24 million in 1Q21.

Net Cash Provided by Financing Activities

Our net cash flows from financing activities increased from the use of R$26 million in 1Q21 and R$95 million in 2Q20 to generation of R$1,884 million in 2Q21 and from, primarily due to:

  • R$1,570 million in 2Q21 related to Borrowings mostly derived by our loan agreement with Banco Nacional do México.
  • R$500 million in 2Q21 related to issuance of non-convertible debentures with the objective of funding the Group’s working capital for the construction of our new headquarters “Vila XP” at São Roque, State of São Paulo.
  • R$17 million in 2Q21, R$24 million in 1Q21, and R$27 million in 2Q20 related to Payments of borrowings and lease liabilities.


Floating Balance and Adjusted Gross Financial Assets (in R$ mn)

Floating Balance (=net uninvested clients’ deposits)






(-) Securities trading and intermediation






(+) Securities trading and intermediation



(=) Floating Balance



Adjusted Gross Financial Assets






(+) Cash



(+) Securities – Fair value through profit or loss



(+) Securities – Fair value through other comprehensive income



(+) Securities – Evaluated at amortized cost



(+) Derivative financial instruments



(+) Securities purchased under agreements to resell



(+) Loan Operations



(+) Foreign exchange portfolio






(-) Securities loaned



(-) Derivative financial instruments



(-) Securities sold under repurchase agreements



(-) Private Pension Liabilities



(-) Deposits



(-) Structured Operations



(-) Financial Bills



(-) Foreign exchange portfolio



(-) Credit cards operations



(-) Floating Balance



(=) Adjusted Gross Financial Assets



We present Adjusted Gross Financial Assets because we believe this metric captures the liquidity that is, in fact, available to us, net of the portion of liquidity that is related to our Floating Balance (and therefore attributable to clients). We calculate Adjusted Gross Financial Assets as the sum of (1) Cash and Financial Assets (comprised of Cash plus Securities – Fair value through profit or loss, plus Securities – Fair value through other comprehensive income, plus Securities – Evaluated at amortized cost, plus Derivative financial instruments, plus Securities (purchased under agreements to resell), plus Loans and Foreign exchange portfolio (assets) less (2) Financial Liabilities (comprised of the sum of Securities loaned, Derivative financial instruments, Securities sold under repurchase agreements and Private pension liabilities), Deposits, Structured Operation Certificates (COE), Financial Bills, Foreign exchange portfolio (liabilities), Credit cards operations and (3) less Floating Balance.

It is a measure that we track internally daily, and it more intuitively reflects the effect of the operational profits we generate and the variations between working capital assets and liabilities (cash flows from operating activities), investments in fixed and intangible assets and investments in the IFA Network (cash flows from investing activities) and inflows and outflows related to equity and debt securities in our capital structure (cash flows from financing activities).Our management treats all securities and financial instrument assets, net of financial instrument liabilities, as balances that compose our total liquidity, with subline items (such as, for example, “securities at fair value through profit and loss” and “securities at fair value through other comprehensive income”) expected to fluctuate substantially from quarter to quarter as our treasury manages and allocates our total liquidity to the most suitable financial instruments.

Other Information

Web Meeting

The Company will host a webcast to discuss its 2Q21 financial results on Tuesday, August 03, 2021, at 5:00 pm ET (6:00 pm BRT). To participate in the earnings webcast please subscribe at 2Q21 Earnings Web Meeting. The replay will be available on XP’s investor relations website at https://investors.xpinc.com/

Important Disclosure


This release is prepared by XP Inc. (the “Company,” “we” or “our”), is solely for informational purposes. This release does not constitute a prospectus and does not constitute an offer to sell or the solicitation of an offer to buy any securities. In addition, this document and any materials distributed in connection with this release are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.


Investor Relations Team

André Martins
Antonio Guimarães
Marina Montemor

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