XP Inc. (NASDAQ:XP) Q4 2023 Earnings Conference Call February 27, 2024 5:00 PM ET
Company Participants
Andre Parize - Head, Investor Relations
Thiago Maffra - Chief Executive Officer
Bruno Constantino - Chief Financial Officer
Conference Call Participants
Thiago Batista - UBS
Yuri Fernandes - JPMorgan
Neha Agarwala - HSBC
Mario Pierry - Bank of America
Tito Labarta - Goldman Sachs
Renato Meloni - Autonomous
Jorge Kuri - Morgan Stanley
Gabriel Gusan - Citi
Andre Parize
Good evening, everyone. I am Andre Parize, Head of Investor Relations at XP Inc. It’s 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 Fourth Quarter Earnings Call. This quarter, along with 2023 results, will be presented by our CEO, Thiago Maffra, and our CFO, Bruno Constantino, who will both be 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 2, on which we clarify forward-looking statements. And additional information on forward-looking statements can be found on the SEC Filings section on the IR website.
So now I will turn it over to Thiago Maffra. Good evening, Maffra.
Thiago Maffra
Thanks, Andre. Good evening everyone. Thank you for joining us today on our 2023 fourth quarter earnings call. It’s a pleasure to be here tonight. I will start with a brief introduction to this year’s highlights and key updates. As I mentioned in my annual letter, 2023 was both a challenging and transformative year for XP. Despite the still difficult macro environment, we remain committed to better serving our clients through innovation, high-quality service and growth.
In this slide, I would first like to talk about our financial performance for the year, marked by the resilience of our business model. I will leave for Bruno to talk about the fourth quarter’s financials. In 2023, we celebrated the milestone of surpassing the $1 trillion mark in client assets with a market share at still less than 12% in investments for individuals in the country. This shows the large potential growth with still ahead of us.
Despite the macroeconomic conditions I just mentioned, we were able to achieve a 12% growth year-over-year in top line and 10% growth year-over-year in bottom line, with approximately 100 bps growth in our EBT margin. This year was also marked by a strong focus on efficiency and cost discipline through the whole company as we achieved an efficiency ratio of 36%, the lowest level since our IPO. Our diluted EPS increased 16% year-over-year reaching BRL7.22 per share. Also in 2023, we returned almost BRL4.5 billion in capital to our shareholders both in dividends and share buybacks, totaling a payout ratio of 114%.