Brazilian broker XP's profit gains from higher client assets
Reuters
Published Nov 08, 2022 04:15PM ET
(Reuters) - XP (NASDAQ:XP) Inc posted a jump in third-quarter profit on Tuesday, as client assets at the Brazilian broker accelerated and helped offset weaker net inflows due to higher interest rates.
Last month, Brazil's central bank held its key interest rate steady for the second straight policy meeting and warned inflation was still running high and that the global outlook remains volatile.
In the 12 months through September, inflation reached 7.17%, slightly above the 7.1% forecast and well above the central bank's target of 3.5%, with a tolerance margin of 1.5 percentage points on either side.
The country's largest brokerage said its net inflows of 35 billion reais ($6.80 billion) were 7% lower from a year ago, while the total purchase value on XP's credit card doubled to 6.6 billion reais.
Total client assets rose 17% to 925 billion reais as people poured money into its diverse range of products such as bonds, derivatives and pension funds, while active client numbers grew 15%.
The company's net income rose 10% to 1.03 billion reais in the third quarter and net revenue jumped 14% to 3.62 billion reais.
Retail gross revenue rose 2% to 2.63 billion reais, while institutional revenue surged 105% to 577 million reais.
($1 = 5.1485 reais)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.