SÃO PAULO, Brazil–()–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, reported today its financial results for the third quarter of 2023.

Summary

Operating Metrics (unaudited)

 

3Q23

3Q22

YoY

2Q23

QoQ

Total Client Assets (in R$ bn)

1,080

925

17%

1,024

6%

Total Net Inflow (in R$ bn)

48

35

38%

22

118%

Annualized Retail Take Rate

1.34%

1.33%

1 bps

1.30%

4 bps

Active Clients (in ‘000s)

4,412

3,805

16%

4,013

10%

Headcount (EoP)

6,699

6,948

-4%

6,002

12%

IFAs (in ‘000s)

14.3

11.6

23%

14.1

1%

Retail DATs (in mn)

2.1

2.3

-9%

2.2

-2%

Retirement Plans Client Assets (in R$ bn)

67

58

15%

64

4%

Cards TPV (in R$ bn)

10.7

6.6

62%

9.7

11%

Credit Portfolio (in R$ bn)

 

19.9

16.3

22%

17.9

11%

 

 

 

 

 

Financial Metrics (in R$ mn)

 

3Q23

3Q22

YoY

2Q23

QoQ

Gross revenue

4,364

3,811

14%

3,728

17%

Retail

3,179

2,629

21%

2,892

10%

Institutional

386

577

-33%

385

0%

Corporate & Issuer Services

519

436

19%

283

83%

Other

 

281

170

65%

167

68%

Net Revenue

 

4,132

3,620

14%

3,549

16%

Gross Profit

2,896

2,615

11%

2,402

21%

Gross Margin

 

70.1%

72.2%

-216 bps

67.7%

240 bps

EBT

1,157

983

18%

968

20%

EBT Margin

 

28.0%

27.2%

86 bps

27.3%

74 bps

Net Income

1,087

1,031

5%

977

11%

Net Margin

 

26.3%

28.5%

-218 bps

27.5%

-123 bps

Basic EPS (in R$)

 

1.99

1.85

7%

1.85

8%

Diluted EPS (in R$)

 

1.96

1.80

9%

1.83

7%

ROAE¹

 

22.6%

24.4%

-183 bps

22.0%

58 bps

ROAA²

 

2.6%

3.3%

-69 bps

2.6%

1 bps

1 – Annualized Return on Average Equity.

2 – Annualized Return on Average Adjusted Assets. Adjusted Assets excludes Retirement Plans Liabilities and Float Balance.

Discussion of Results

Total Gross Revenue

Gross revenue was R$4.4 billion in 3Q23, up 17% QoQ and 14% YoY, primarily driven by growth in our Retail revenue year-over-year and a strong recovery in Corporate & Issuer Services quarter-over-quarter. Modal’s financials have been fully incorporated in 3Q23, accounting for R$161 million in Gross Revenue for the quarter.

Retail Revenue

(in R$ mn)

 

3Q23

3Q22

YoY

2Q23

QoQ

Retail Revenue

 

3,179

2,629

21%

2,892

10%

Equities

1,131

1,120

1%

1,064

6%

Fixed Income

718

489

47%

578

24%

Funds Platform

323

282

15%

341

-5%

Retirement Plans

98

85

15%

87

12%

Cards

259

146

77%

232

12%

Credit

49

40

24%

44

13%

Insurance

36

21

72%

36

1%

Other Retail

 

565

447

26%

511

11%

Annualized Retail Take Rate

1.34%

1.33%

1 bps

1.30%

4 bps

Retail revenue was R$3.2 billion in 3Q23, up 10% QoQ and 21% YoY. Retail revenue growth was driven by a combination of:

(1) Year-over-year and sequential growth in Fixed Income revenue, led by a strong performance in primary markets in the quarter;

(2) Strong continued growth in Cards revenue, which grew 77% YoY

Retail-related revenue in 3Q23 represented 68% of consolidated Net Income from Financial Instruments, as per the Accounting Income Statement.

Take Rate

Annualized Retail Take Rate was 1.34% in 3Q23, up 4 bps QoQ.

Institutional Revenue

Institutional revenue was R$386 million in 3Q23, stable QoQ and down 33% YoY. Year-over-year decrease is mainly due to a tough comp in 3Q22, with a lot of hedging demand in the pre-elections period.

Institutional revenue in 3Q23 accounted for 13% of consolidated Net Income from Financial Instruments, as per the Accounting Income Statement.

Corporate & Issuer Services Revenue

Corporate & Issuer Services revenue totaled R$519 million in 3Q23, up 83% QoQ and 19% YoY. The sequential increase in Corporate & Issuer Services revenue was due to the growth in Issuer Services revenue, mainly related to a strong pick-up in DCM activity in the quarter.

Corporate and Issuer Services related revenues in 3Q23 represented 9% of consolidated Net Income from Financial Instruments, as per the Accounting Income Statement.

Other Revenue

Other revenue was R$281 million in 3Q23, up 68% QoQ and 65% YoY.

Other revenue in 3Q23 accounted for 11% of consolidated Net Income from Financial Instruments, as per the Accounting Income Statement.

Costs of Goods Sold and Gross Margin

Gross Margin was 70.1% in 3Q23 versus 67.7% in 2Q23 and 72.2% in 3Q22. Sequential improvement in gross margin was mainly related to better revenue mix between products and channels in the quarter.

SG&A Expenses

(in R$ mn)

 

3Q23

3Q22

YoY

2Q23

QoQ

Total SG&A3

 

(1,547)

(1,501)

3%

(1,246)

24%

People

 

(1,048)

(1,057)

-1%

(899)

17%

Salary and Taxes

(396)

(377)

5%

(344)

15%

Bonuses

(486)

(510)

-5%

(428)

13%

Share Based Compensation

 

(166)

(171)

-3%

(127)

30%

Non-people

 

(499)

(444)

12%

(347)

44%

LTM Compensation Ratio4

25.7%

29.8%

-409 bps

26.8%

-105 bps

LTM Efficiency Ratio5

 

37.3%

41.7%

-444 bps

38.3%

-108 bps

Headcount (EoP)

 

6,699

6,948

-4%

6,002

12%

SG&A3 expenses totaled R$1.5 billion in 3Q23, up 24% QoQ and 3% YoY. The sequential increase is in line with our annual guidance of R$5.0 to 5.5 billion in total SG&A3 for the full year of 2023. The main increases in SG&A during the quarter came from:

(1) Non-people expenses, mainly related to Expert event that happened during 3Q23;

(2) Modal expenses incorporation, which accounted for R$111 million in 3Q23.

Our last twelve months (LTM) compensation ratio4 in 3Q23 was 25.7%, an improvement from 29.8% and 26.8% in 3Q22 and 2Q23, respectively. Also, our LTM efficiency ratio5 reached 37.3% in 3Q23, compared to 41.7% and 38.3% in the same periods.

3 – Total SG&A and non-people SG&A exclude revenue from incentives from Tesouro Direto, B3.

4 – Compensation ratio is calculated as People SG&A (Salary and Taxes, Bonuses and Share Based Compensation) divided by Net Revenue.

5 – Efficiency ratio is calculated as SG&A ex-revenue from incentives from Tesouro Direto, B3, and others divided by Net Revenue.

Earnings Before Taxes

EBT, a good proxy for earnings power, was R$1.2 billion in 3Q23, up 20% QoQ and 18% YoY, mainly driven by revenue growth and improving operating leverage in the quarter. EBT Margin was 28.0%, up 74 bps QoQ and 86 bps YoY, in line with our medium-term annual guidance of 26% to 32% between 2023 and 2025.

Net Income and EPS

In 3Q23, Net Income was R$1.1 billion, up 11% QoQ and 5% YoY. Basic EPS was R$1.99, up 8% QoQ and 7% YoY. Fully diluted EPS was R$1.96, up 7% QoQ and 9% YoY.

Other Information

Webcast and Conference Call Information

The Company will host a webcast to discuss its third quarter financial results on Monday, November 13th, 2023, at 5:00 pm ET (7:00 pm BRT). To participate in the earnings webcast please subscribe at 3Q23 Earnings Web Meeting. The replay will be available on XP’s investor relations website at https://investors.xpinc.com/

Important Disclosure

In reviewing the information contained in this release, you are agreeing to abide by the terms of this disclaimer. This information is being made available to each recipient solely for its information and is subject to amendment. 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.

This release was prepared by the Company. Neither the Company nor any of its affiliates, officers, employees or agents, make any representation or warranty, express or implied, in relation to the fairness, reasonableness, adequacy, accuracy or completeness of the information, statements or opinions, whichever their source, contained in this release or any oral information provided in connection herewith, or any data it generates and accept no responsibility, obligation or liability (whether direct or indirect, in contract, tort or otherwise) in relation to any of such information. The information and opinions contained in this release are provided as at the date of this release, are subject to change without notice and do not purport to contain all information that may be required to evaluate the Company. The information in this release is in draft form and has not been independently verified. The Company and its affiliates, officers, employees and agents expressly disclaim any and all liability which may be based on this release and any errors therein or omissions therefrom. Neither the Company nor any of its affiliates, officers, employees or agents makes any representation or warranty, express or implied, as to the achievement or reasonableness of future projections, management targets, estimates, prospects or returns, if any.

The information contained in this release does not purport to be comprehensive and has not been subject to any independent audit or review. Certain of the financial information as of and for the periods ended of December 31, 2021 and December 31, 2020, 2019, 2018 and 2017 has been derived from audited financial statements and all other financial information has been derived from unaudited interim financial statements. A significant portion of the information contained in this release is based on estimates or expectations of the Company, and there can be no assurance that these estimates or expectations are or will prove to be accurate. The Company’s internal estimates have not been verified by an external expert, and the Company cannot guarantee that a third party using different methods to assemble, analyze or compute market information and data would obtain or generate the same results.

Statements in the release, including those regarding the possible or assumed future or other performance of the Company or its industry or other trend projections, constitute forward-looking statements. These statements are generally identified by the use of words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate” and “potential,” among others. By their nature, forward-looking statements are necessarily subject to a high degree of uncertainty and involve known and unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside the control of the Company. Such factors may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements and there can be no assurance that such forward-looking statements will prove to be correct. These risks and uncertainties include factors relating to: (1) general economic, financial, political, demographic and business conditions in Brazil, as well as any other countries we may serve in the future and their impact on our business; (2) fluctuations in interest, inflation and exchange rates in Brazil and any other countries we may serve in the future; (3) competition in the financial services industry; (4) our ability to implement our business strategy; (5) our ability to adapt to the rapid pace of technological changes in the financial services industry; (6) the reliability, performance, functionality and quality of our products and services and the investment performance of investment funds managed by third parties or by our asset managers; (7) the availability of government authorizations on terms and conditions and within periods acceptable to us; (8) our ability to continue attracting and retaining new appropriately-skilled employees; (9) our capitalization and level of indebtedness; (10) the interests of our controlling shareholders; (11) changes in government regulations applicable to the financial services industry in Brazil and elsewhere; (12) our ability to compete and conduct our business in the future; (13) the success of operating initiatives, including advertising and promotional efforts and new product, service and concept development by us and our competitors; (14) changes in consumer demands regarding financial products, customer experience related to investments and technological advances, and our ability to innovate to respond to such changes; (15) changes in labor, distribution and other operating costs; (16) our compliance with, and changes to, government laws, regulations and tax matters that currently apply to us; (17) other factors that may affect our financial condition, liquidity and results of operations. Accordingly, you should not place undue reliance on forward-looking statements. The forward-looking statements included herein speak only as at the date of this release and the Company does not undertake any obligation to update these forward-looking statements. Past performance does not guarantee or predict future performance. Moreover, the Company and its affiliates, officers, employees and agents do not undertake any obligation to review, update or confirm expectations or estimates or to release any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of the release. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented and we do not intend to update any of these forward-looking statements.

Market data and industry information used throughout this release are based on management’s knowledge of the industry and the good faith estimates of management. The Company also relied, to the extent available, upon management’s review of industry surveys and publications and other publicly available information prepared by a number of third-party sources. All of the market data and industry information used in this release involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Although the Company believes that these sources are reliable, there can be no assurance as to the accuracy or completeness of this information, and the Company has not independently verified this information.

The contents hereof should not be construed as investment, legal, tax or other advice and you should consult your own advisers as to legal, business, tax and other related matters concerning an investment in the Company. The Company is not acting on your behalf and does not regard you as a customer or a client. It will not be responsible to you for providing protections afforded to clients or for advising you on the relevant transaction.

This release includes our Float, Adjusted Gross Financial Assets, Net Asset Value, and Adjustments to Reported Net Income, which are 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 (“IFRS”) results, as issued by the International Accounting Standards Board, provide a more complete understanding of factors and trends affecting the Company’s business. Further, 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. A reconciliation of such non-GAAP financial measures to the nearest GAAP measure is included in this release.

For purposes of this release:

“Active Clients” means the total number of retail clients served through our XP Investimentos, Rico, Clear, XP Investments and XP Private (Europe) brands, with Client Assets above R$100.00 or that have transacted at least once in the last thirty days. For purposes of calculating this metric, if a client holds an account in more than one of the aforementioned entities, such client will be counted as one “active client” for each such account. For example, if a client holds an account in each of XP Investimentos and Rico, such client will count as two “active clients” for purposes of this metric.

“Client Assets” means the market value of all client assets invested through XP’s platform and that is related to reported Retail Revenue, including equities, fixed income securities, mutual funds (including those managed by XP Gestão de Recursos Ltda., XP Advisory Gestão de Recursos Ltda. and XP Vista Asset Management Ltda., as well as by third-party asset managers), pension funds (including those from XP Vida e Previdência S.A., as well as by third-party insurance companies), exchange traded funds, COEs (Structured Notes), REITs, and uninvested cash balances (Float Balances), among others. Although Client Assets includes custody from Corporate Clients that generate Retail Revenue, it does not include custody from institutional clients (asset managers, pension funds and insurance companies).

Rounding

We have made rounding adjustments to some of the figures included in this release. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them.

Unaudited Managerial Income Statement (in R$ mn)

Managerial Income Statement

 

3Q23

3Q22

YoY

2Q23

QoQ

Total Gross Revenue

 

4,364

3,811

14%

3,728

17%

Retail

3,179

2,629

21%

2,892

10%

Equities

1,131

1,120

1%

1,064

6%

Fixed Income

718

489

47%

578

24%

Funds Platform

323

282

15%

341

-5%

Retirement Plans

98

85

15%

87

12%

Cards

259

146

77%

232

12%

Credit

49

40

24%

44

13%

Insurance

36

21

72%

36

1%

Other

 

565

447

26%

511

11%

Institutional

386

577

-33%

385

0%

Corporate & Issuer Services

519

436

19%

283

83%

Other

281

170

65%

167

68%

Net Revenue

4,132

3,620

14%

3,549

16%

COGS

(1,236)

(1,005)

23%

(1,147)

8%

Gross Profit

2,896

2,615

11%

2,402

21%

Gross Margin

 

70.1%

72.2%

-216 bps

67.7%

240 bps

SG&A

(1,541)

(1,463)

5%

(1,246)

24%

People

(1,048)

(1,057)

-1%

(899)

17%

Non-People

(493)

(405)

22%

(347)

42%

D&A

(71)

(44)

63%

(51)

40%

Interest expense on debt

(135)

(128)

6%

(152)

-11%

Share of profit or (loss) in joint ventures and associates

9

1

562%

15

-63%

EBT

1,157

983

18%

968

20%

EBT Margin

 

28.0%

27.2%

86 bps

27.3%

74 bps

Tax Expense (Accounting)

(71)

48

-248%

9

-874%

Tax expense (Tax Withholding in Funds)6

(169)

(212)

-20%

(168)

1%

Effective tax rate (Normalized)

(18.1%)

(13.7%)

-435 bps

(14.0%)

-410 bps

Net Income

1,087

1,031

5%

977

11%

Net Margin

 

26.3%

28.5%

-218 bps

27.5%

-123 bps

Adjustments

92

118

-22%

85

8%

Adjusted Net Income7

1,179

1,149

3%

1,062

11%

Adjusted Net Margin

 

28.5%

31.7%

-321 bps

29.9%

-140 bps

6 – Tax adjustments are related to tax withholding expenses that are recognized net in gross revenue.

7 – See appendix for a reconciliation of Adjusted Net Income.

Accounting Income Statement (in R$ mn)

Accounting Income Statement

 

3Q23

3Q22

YoY

2Q23

QoQ

Net revenue from services rendered

1,822

1,558

17%

1,483

23%

Brokerage commission

525

498

5%

488

8%

Securities placement

637

525

21%

407

56%

Management fees

414

361

15%

419

-1%

Insurance brokerage fee

43

35

24%

42

3%

Commission Fees

206

135

53%

174

18%

Other services

169

149

13%

91

85%

Sales Tax and contributions on Services

 

(173)

(145)

19%

(139)

25%

Net income from financial instruments at amortized cost and at fair value through other comprehensive income

142

563

-75%

618

-77%

Net income from financial instruments at fair value through profit or loss

 

2,168

1,499

45%

1,448

50%

Total revenue and income

4,132

3,620

14%

3,549

16%

Operating costs

(1,122)

(977)

15%

(1,092)

3%

Selling expenses

(50)

(33)

53%

(45)

10%

Administrative expenses

(1,544)

(1,503)

3%

(1,276)

21%

Other operating revenues (expenses), net

(18)

29

n.a.

24

-175%

Expected credit losses

(115)

(28)

n.a.

(55)

109%

Interest expense on debt

(135)

(128)

6%

(152)

-11%

Share of profit or (loss) in joint ventures and associates

 

9

1

n.a.

15

-38%

Income before income tax

1,157

983

18%

968

20%

Income tax expense

 

(71)

48

-248%

9

n.a.

Net income for the period

1,087

1,031

5%

977

11%

Balance Sheet (in R$ mn)

Assets

 

 

 

 

3Q23

2Q23

Cash

 

 

 

 

3,822

2,916

Financial assets

 

 

 

 

214,838

216,446

Fair value through profit or loss

120,854

124,465

Securities

101,039

99,280

Derivative financial instruments

19,815

25,185

Fair value through other comprehensive income

38,486

33,091

Securities

38,486

33,091

Evaluated at amortized cost

55,498

58,890

Securities

6,175

7,824

Securities purchased under agreements to resell

12,252

15,786

Securities trading and intermediation

3,569

2,917

Accounts receivable

620

646

Loan Operations

26,645

24,088

Other financial assets

 

 

 

 

6,236

7,630

Other assets

 

 

 

 

7,586

6,498

Recoverable taxes

302

220

Rights-of-use assets

204

209

Prepaid expenses

4,401

4,270

Other

 

 

 

 

2,679

1,800

Deferred tax assets

2,023

1,532

Investments in associates and joint ventures

2,261

2,250

Property and equipment

348

301

Goodwill & Intangible assets

 

 

 

 

2,551

837

Total Assets

 

 

 

 

233,427

230,781

 

 

Liabilities

 

 

 

 

3Q23

2Q23

Financial liabilities

 

 

 

 

158,537

159,678

Fair value through profit or loss

32,888

40,800

Securities

14,342

14,554

Derivative financial instruments

18,546

26,247

Evaluated at amortized cost

125,649

118,877

Securities sold under repurchase agreements

39,517

34,623

Securities trading and intermediation

17,062

15,451

Financing instruments payable

53,094

51,931

Accounts payables

604

626

Borrowings

1,260

Other financial liabilities

 

 

 

 

14,112

16,247

Other liabilities

 

 

 

 

54,793

52,520

Social and statutory obligations

711

947

Taxes and social security obligations

488

442

Retirement plans liabilities

53,280

50,907

Provisions and contingent liabilities

110

79

Other

 

 

 

 

204

146

Deferred tax liabilities

74

134

Total Liabilities

 

 

 

 

213,404

212,331

Equity attributable to owners of the Parent company

 

 

 

 

20,014

18,440

Issued capital

0

0

Capital reserve

18,745

16,523

Other comprehensive income

107

264

Treasury

(117)

(117)

Retained earnings

1,279

1,770

Non-controlling interest

 

 

 

 

9

9

Total equity

 

 

 

 

20,023

18,449

Total liabilities and equity

 

 

 

 

233,427

230,781

Float, Adjusted Gross Financial Assets and Net Asset Value

(in R$ mn)

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 Float 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 Float 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.

In order to explain how we measure our cash position or generation internally, we are introducing the Net Asset Value concept. Since we are a financial institution, we hold several types of financial instruments with different characteristics, hence the definition of net cash that makes more sense from a business perspective is the Net Asset Value. It is basically the adjusted gross financial assets net of debt instruments.

Adjusted Gross Financial Assets

 

 

 

 

3Q23

2Q23

Assets

 

 

 

 

216,300

216,881

(+) Cash

 

 

 

 

3,822

2,916

(+) Securities – Fair value through profit or loss

 

 

 

 

101,039

99,280

(+) Securities – Fair value through other comprehensive income

 

 

 

 

38,486

33,091

(+) Securities – Evaluated at amortized cost

 

 

 

 

6,175

7,824

(+) Derivative financial instruments

 

 

 

 

19,815

25,185

(+) Securities purchased under agreements to resell

 

 

 

 

12,252

15,786

(+) Loans and credit card operations

 

 

 

 

26,645

24,088

(+) Foreign exchange portfolio

 

 

 

 

4,240

5,556

(+) Energy

 

 

 

 

2,105

1,270

(+) Central Bank Deposits

 

 

 

 

1,722

1,885

Liabilities

 

 

 

 

(183,729)

(185,632)

(-) Securities

 

 

 

 

(14,342)

(14,554)

(-) Derivative financial instruments

 

 

 

 

(18,546)

(26,247)

(-) Securities sold under repurchase agreements

 

 

 

 

(39,517)

(34,623)

(-) Retirement Plans Liabilities

 

 

 

 

(53,280)

(50,907)

(-) Deposits

 

 

 

 

(22,635)

(25,668)

(-) Structured Operations

 

 

 

 

(16,241)

(15,248)

(-) Financial Bills

 

 

 

 

(7,812)

(5,206)

(-) Foreign exchange portfolio

 

 

 

 

(4,562)

(6,007)

(-) Credit card operations

 

 

 

 

(6,442)

(5,899)

(-) Commitments subject to possible redemption

 

 

 

 

(1,090)

(-) Other Funding

 

 

 

 

(352)

(185)

(-) Float

 

 

 

 

(13,493)

(12,534)

(=) Adjusted Gross Financial Assets

 

 

 

 

19,078

18,715

Net Asset Value

 

 

 

 

3Q23

2Q23

(=) Adjusted Gross Financial Assets

 

 

 

 

19,078

18,715

Gross Debt

 

 

 

 

(9,428)

(7,946)

(-) Borrowings

 

 

 

 

(1,260)

(-) Debentures

 

 

 

 

(2,656)

(2,379)

(-) Structured financing

 

 

 

 

(2,114)

(2,321)

(-) Bonds

 

 

 

 

(3,398)

(3,246)

(=) Net Asset Value

 

 

 

 

9,650

10,769

Float (=net uninvested clients’ deposits)

 

 

 

3Q23

2Q23

Assets

 

 

 

(3,569)

(2,917)

(-) Securities trading and intermediation

 

 

 

(3,569)

(2,917)

Liabilities

 

 

 

17,062

15,451

(+) Securities trading and intermediation

 

 

 

17,062

15,451

(=) Float

 

 

 

13,493

12,534

Reconciliation of Adjusted Net Income (in R$ mn)

Adjusted Net Income

 

3Q23

3Q22

YoY

2Q23

QoQ

Net Income

 

1,087

1,031

5%

977

11%

(+) Share Based Compensation

 

151

186

-19%

140

8%

(+/-) Taxes

 

(59)

(68)

-13%

(55)

7%

Adj. Net Income

 

1,179

1,149

3%

1,062

11%

 

source