XP Inc. (NASDAQ:XP) Q3 2023 Earnings Conference Call November 13, 2023 5:00 PM ET

Company Participants

Antonio Guimaraes - Investor Relations

Thiago Maffra - Chief Executive Officer

Bruno Constantino - Chief Financial Officer

Conference Call Participants

Jorge Kuri - Morgan Stanley

Mario Pierry - Bank of America

Tito Labarta - Goldman Sachs

Gabriel Gusan - Citi

Eduardo Rosman - BTG

Thiago Batista - UBS

Neha Agarwala - HSBC

Geoffrey Elliott - Autonomous Research

Yuri Fernandes - JPMorgan

Antonio Guimaraes

Good evening, everyone. I'm Antonio Guimaraes, Investor Relations at XP. It is a pleasure to be here with you today. On behalf of the company, I'd like to thank you all for the interest and welcome you to the 2023 third quarter's earnings call. This quarter, we had a strong set of results, which will be presented by our CEO, Thiago Maffra, and our CFO, Bruno Constantino, who will also be both available for the Q&A session right after the presentation. [Operator Instructions]

And before we begin our presentation, please refer to our legal disclaimers on page two, on which we clarify forward-looking statements. Additional information on forward-looking statements can be found on the SEC Filings section of the IR website.

So now I'll turn it over to Thiago Maffra. Good evening, Maffra.

Thiago Maffra

Thanks, Antonio. Good evening, everyone. Thank you for joining us today on our 2023 third quarter earnings call. It's a pleasure to be here with you tonight. I will start with a brief introduction to this quarter's highlights and key updates.

In the third quarter of 2023, we had a strong quarter with increased top line growth and profitability across different metrics. This quarter despite the tough macroeconomic conditions that led to weaker organic net new money, we ended the quarter with BRL1.1 trillion in client assets, reaching all-time high records in most of our investment KPIs.

For this quarter, as a result of our continuous focus in executing our strategy, we achieved the highest net income in our history at BRL1.1 billion, up 11% quarter-over-quarter and 5% year-over-year. Our discipline in cost control has reflected in the best efficiency ratio in the last three years at 37.3%, down more than 400 bps year-over-year and 100 bps quarter-over-quarter.

As a result of our efforts, ROE rose 58 bps quarter-over-quarter, reaching 22.6%, the highest during the year. And last but not least, our diluted earnings per share increased 7% quarter-over-quarter to BRL1.96 also the highest in our history.