By Brazil Stock Guide – XP Inc. (NASDAQ: XP) reported record results for the second quarter of 2025, with return on average equity (ROAE) reaching 24.4%, an increase of 223 basis points from a year earlier. The performance was first reported by NeoFeed.
The company posted adjusted net income of 1.32 billion reais ($236 million), up 18% year-on-year and above Bloomberg’s consensus estimates. Earnings per share climbed 22% to 2.46 reais.
Payout and Share Buybacks
Chief Financial Officer Victor Manzur said the firm remains well-capitalized and expects to return at least half of its earnings to shareholders in 2025. “The company is extremely capitalized. And for this year, we expect that 50% or more of net income will be distributed to shareholders. Our board will discuss this division between dividend and buyback,” he told reporters.
XP has already executed a 1 billion reais repurchase program this year and has another buyback plan of the same size open, with up to 12 months to complete.
Revenue Mix
Gross revenue increased 4% to 4.7 billion reais, driven by retail, which rose 9% to 3.5 billion reais. Equity trading revenue surpassed fixed income once again, reversing the trend from the first quarter.
Equities generated 1.03 billion reais in revenue, down 8% from a year earlier but up 7% from the first quarter. Fixed income revenue advanced 20% to 988 million reais.
Corporate and investment banking revenue fell 13% to 547 million reais, reflecting a strong comparison base from the same period last year. Within that, capital markets revenue dropped 30% to 268 million reais, while large corporate revenue rose 14% to 279 million reais.
Outlook Amid Volatility
Manzur noted that markets remain volatile but signaled optimism for the second half of 2025. “It is always very difficult to say, we are seeing a lot of volatility, not only in the United States but also in Brazil. But in principle, the second half should be better than the first. In addition to the average volume on B3 rising gradually, day by day, we also have six extra trading sessions,” he said.
Clients and Assets
Net inflows slowed to 10 billion reais, down 70% from a year earlier. Retail net inflows fell 34% to 16 billion reais. The number of advisors was stable at 18,200, while the client base increased 2% to 4.7 million. Assets under custody and management climbed 17% to 1.9 trillion reais.
XP shares closed at $17.50 on Aug. 18, down 0.34% on the day. The stock has gained 47.6% in 2025, valuing the company at $9.2 billion.
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