Brazilian broker XP to expand banking services as quarterly profit soars – Metro US

Brazilian broker XP to expand banking services as quarterly profit soars

XP Inc. headquarters in Sao Paulo
XP Inc. headquarters in Sao Paulo

(Reuters) – Brazilian broker XP Inc reported a more than doubling of adjusted first-quarter profit on Tuesday and unveiled plans to expand its banking services to small and large companies.

The brokerage added about 1 million active customers in the first three months of the year, a 47% jump, while assets under custody surged 96% to 715 billion reais.

XP has attracted Brazilians seeking higher returns as benchmark interest rate in the country fell to a record low.

Adjusted net income rose 104% to 846 million reais ($155.6 million) in the quarter ended March 31, also helped by a tight leash on costs, XP said.

“We had the best quarter in our history, and we will reinvest 100% of the result in our growth,” Chief Financial Officer Bruno Constantino said in a statement.

Founder and Chief Executive Officer Guilherme Benchimol said XP is planning to launch financial services for small and large companies this year.

The company had said in March that it would launch a power trading unit later this year, aiming to turn itself into a leading name in the domestic unregulated power market over the next few years.

In February, XP announced the launch of a credit card for consumers, with digital banking accounts by mid-year.

($1 = 5.4380 reais)

(Reporting by Noor Zainab Hussain in Bengaluru and Carolina Mandl in Sao Paulo; Editing by Sriraj Kalluvila)

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