Q1 2025 XP Inc Earnings Call

Good evening, everyone I'm under appraisal Investor Relations Officer at X P. It's a pleasure to be here with you today on behalf of the company I would like to thank you all for your interest and welcome you to our first quarter 2025 earnings call. Today's presentation will be led by our CEO Giaga mozzarella and our CFO Victor amongst sewer.

Yeah.

[music].

We will both be available for the Q&A session right. After the presentation if.

If you'd like to ask a question. Please use the raise hand feature on zoom and we will address them in the order we received.

We also offered the option of simultaneous translation to Portuguese if you'd like to activate it please click the button below.

Before we begin please refer to our legal disclaimers on page two where we provide additional information regarding forward looking statements. You can also find more information in the SEC filing section on our IR website now I will turn it over to juggle Martha.

Speaker Change: Good evening mantra.

Martha: Thanks Linda.

Speaker Change: Good evening everyone.

Speaker Change: I appreciate you all joining us today for our first quarter 2025 earnings call.

Speaker Change: Let's begin by reviewing the key highlights for the quarter.

Speaker Change: It is important to mention that we continue to execute our strategy initiatives delivering higher results consistently.

Speaker Change: Starting with client assets, plus a O N in a way that we are now disclosing that achieve at 1.8 premium posting at 13% growth year over year.

Speaker Change: We have counted 18, 1000 advisors, representing 2% growth year over year and active client base posted $4 7 million with 2% growth year over year.

Speaker Change: In the quarter gross revenues posted $4 6 billion with 7% growth year over year, we delivered solid <unk> growth of.

Speaker Change: 16% year over year, reaching one 3 billion and once again happy to announce that we achieve at the all time high quarterly net income in our history, posting $1 billion and 236 million Reais. It represents at 20%.

Speaker Change: Year over year growth on profitability, we achieved 24, 1% our weak during the quarter with 340 bps expansion versus first quarter 'twenty four.

Speaker Change: On capital ratio, we market a comfortable level at 19%.

Speaker Change: It represented an increase of 130 bps quarter over quarter.

Speaker Change: What's important here is there a capacity to grow our business, while keeping our capital discipline.

Vitor: Vitor, who will provide further details on just stop.

Vitor: Related to the new regulation implemented during the quarter regarding diluted EPS, we posted 24% growth year over year, which corresponds to a faster growth than net income as we mentioned last quarter, we should take juice dynamic into consideration seems too.

Vitor: We are executing our share buyback program strategy.

Vitor: One just topic I would like to reinforce that we have ended.

Vitor: Previous program of $1 billion and have cancelled the treasury shares today, we also have announced that our new share buyback program of another 1 billion. It's part of our capital distribution plan outline, we foresee guidance target of bees, Rachel to operate the business between.

Vitor: 16, and 19% now, let's see more details on the next slides.

Vitor: This quarter, we are sharing new info to provide a better understanding of our ecosystem.

Vitor: Basically we added institutional client assets and total client assets and provided the completely view, including assets under management from our asset management business and a way from our fund administration business.

Vitor: Said that our total client assets AUM and a way comprehensive almost one eight trillion which represents.

Vitor: 13% growth year over year on the right hand of the slide we see how net new money evolves.

Vitor: Isn't that new money is only related to client assets not AUM our way.

Vitor: This quarter, we market 24 billion net new money, representing 79% growth year over year, even considering the public events, we face it during this year.

Vitor: We were able to keep growing as we said many times before or target for our retail net new money is around 20 billion of Borgwarner.

Enter your meeting I D followed by pound.

Vitor: This quarter, we delivered our commitment and it posted 54% growth year over year Cohoba rating sure understanding that or two would you frame shows set us apart from peers and will contribute to our continuous growth for the next few years on the next slide let's delve in.

Enter your participant I D followed by Pat you have joined the <unk>.

Vitor: <unk> repay with strategy.

<unk> as an attendee and will be muted throughout the meeting with you today on behalf of the company I would like to thank you all for your interest and welcome you to our first quarter 2025 earnings call. Today's presentation will be led by our CEO <unk> <unk> and our CFO Victor months, who will both be available for any Q&A.

Vitor: Here, we would explore our differentials and results of recent implemented initiatives looking through our broader platform. We have not only the most complete and sophisticated in the country, but also the largest.

Vitor: If we look to our credentials in average futures FX options and Etf's, we represent roughly 50% of the market, including fixed income in the analysis. We are also the largest player in corporate credit traded volumes number of trades.

Session right after the presentation.

If you'd like to ask a question. Please use the raise hand, featuring zone and we will address them in the order we received.

We also offered the option of simultaneous translation to Portuguese if you'd like to activate it please click the button below.

Vitor: And mid sized banks timed deposits distribution among other indicators does.

Before we begin please refer to our legal disclaimers on page two where we provide additional information regarding forward looking statements. You can also find more information in the SEC filing section on our IR website.

Vitor: <unk> advantage place XP I had of any player in the country regarding investments being top of mind is an important lever to capture any market share per tonnage.

Now I'll turn it over to juggle moffa.

Vitor: And based on the Jews rationale we are confident that we can navigate in different waters grow our business, while benefiting from our operational leverage.

Good evening mantra.

Thanks Linda.

Good evening everyone.

I appreciate you all joining us today for our first quarter 2025 earnings call.

Vitor: Now on our multichannel distribution I would like to remind you that since we have implemented our proprietary tools, providing more intelligence to support internal advisors with Delek shifts.

Let's begin by reviewing the key highlights for the quarter.

It is important to mention that we continue to execute our strategy initiatives delivering higher results consistently.

Vitor: We had increased the daily achieve its by 11 times roll us out to all of our own advisers. We have seen he has done their dies and model providing higher per the Chi Chi and client satisfaction across the board results of that are clear.

Starting with client assets plus <unk> in a way that we are now disclosing that achieve at 1.8 trillion boosting at 13% growth year over year.

We accounted 18.1 thousand advisors, representing 2% growth year over year, and our chief client base, both at $4 7 million with 2% growth year over year.

Vitor: The standardization of the way of work resulted in 19% lower year over year client churn and 14% higher year over year in our DRAM two recommended a location in parallel we keep focusing on quality, we have increases our top tier advisors by 12.

In the quarter gross revenues posted 4.6 billion with 7% growth year over year, we delivered started a beachy growth of 16% year over year, reaching 1.3 billion and once again happy to announce that we achieve it all.

Vitor: And 1% year over year.

Vitor: The letter shows that the most productive profile is increasing faster and we should capture these benefits during the next years by providing a better level of service to our clients more intelligence to our advisors and recommended a location process along the financial planning in niche achieved we are see.

Hi, Carter net income in our history.

<unk> 1 billion and 236 million Reais. It represents a 20% year over year growth on profitability, we achieve at 24, 1%.

Vitor: <unk> in core <unk> results, just powerful combination resulted in 10 points higher NPS and I'll leave Jean that new money off more than 50% for our clients that went through the financial planning process. Besides that.

During the quarter with 340 bps expansion versus first quarter 'twenty four.

Vitor: Then there guys and module includes Ifa's and provides not only scale, but also balanced returns to a client with different risk profiles in other words, we see clients become even more satisfied. We force serves why would they have returns aligned with their profiles on all churn.

On capital ratio, we market a comfortable level at 19%.

It represented an increase of 130 bps quarter over quarter.

What's important here is there a capacity to grow our business, while keeping our capital G screen.

Vitor: <unk> finally, we were once again awarded as the best financial adviser platform in Brazil, something we are very proud off.

Vitor, who will provide further details on just stopping.

Related to the new regulation implemented during the quarter regarding diluted EPS, we posted 24% growth year over year, which corresponds to a faster growth than net income.

Vitor: It just shows how we keep innovating and getting ahead of competition to <unk> strategy throughout the years, but all of those are strategies, having common our client satisfaction as the <unk> now, let's move to the next slide and see retail cross sell figures as.

As we mentioned last quarter, we should take juice dynamic into consideration since we are executing our share buyback program strategy.

Vitor: As we have reservation dream recent quarters, we launched many initiatives should provide better quality service shortly.

One just stopping I would like to reinforce that we have ended.

Previous program of 1 billion and have cancelled the treasury shares today, we also have announced that our new share buyback program of another $1 billion. It's part of our capital distribution plan outline, we foresee guidance target of bees, Rachel to operate the business between <unk>.

Vitor: Okay.

Vitor: They are increasing their engagement with XP.

Vitor: Now, let's see margin tails on our cross sell and the first one is great car.

Vitor: It grew 7% year over year, marking two.

Vitor: <unk>, one 1 billion in PPV during first quarter.

16, and 19% now, let's see more details on the next slides.

Vitor: Despite this says on that each quarter over quarter, we expect <unk>, our credit card business with the new loans, we will have by Julian we offered two new products focused on the affluent and private bank segments, the new offering we comprehend and attractive package of benefits that we will accelerate our bench.

Just quieter, we're sharing new info to provide a better understanding of our ecosystem.

<unk>, we added institutional client assets and total client assets and provided the completely view, including assets under management from our asset management business in a way from our fund administration business.

Vitor: Duration space.

Vitor: Life insurance written premium presented 40% growth year over year in first quarter 'twenty five.

Said that our total client assets AUM and a way comprehensive almost one eight trillion which represents.

Vitor: As we said before our insurance business is another growth Avenue for the next years C-store penetration is still in early stage and we will keep evolving on quarterly base.

13% growth year over year on the right hand of the slide we see how net new money evolved using.

Vitor: It is important to recap that we are starting to reap the benefits from our own insurance company.

Using that new money is only related to client assets not AUM or AOA.

Vitor: It takes three years on average to see more positive results flowing through the P&L. This dynamic is because the first two years or more concentrated with paid commissions and provisions or retirement plans or client assets keep growing double G bullshit, 15% year over year.

This quarter, we market 24 billion net new money, representing 79% growth year over year, even considering the public events, we face it during this year.

We were able to keep growing as we said many times before or target for our retail net new money is around 20 billion per acquired this quarter, we delivered our commitment and it posted 54% growth year over year, Cohoba raging sure understanding that or towards your free.

Vitor: Year growth and market 83 billion.

Vitor: <unk> has only 5% market share and there is a lot of room to grow.

Vitor: As I said in recent quarters, we implemented new initiatives as cashback and sales force expansion to keep gaining relevance in our offering green the next year's retail credit NII boosted.

Shows set us apart from peers and will contribute to our continuous growth for the next years on the next slide, let's delve inked or repay with strategy.

Vitor: 48% growth year over year, marking 82 million in revenues in the quarter or lingering process is based on client investments Escalope true.

Here, we will explore our differentials and results of recent implemented initiatives looking to our broader platform. We have not only the most complete and sophisticated in the country, but also the largest.

Vitor: And we have a lower than 1% ECL.

Vitor: On other new broad that's compounded by effects global investments <unk> count and consortium, they presented 90, 90% growth year over year with revenues, marking $205 million this quarter. It cohoba rates, we plan to explore other opera.

If we look to our credentials in acreage futures FX options and Etfs, we represent roughly 50% of the market, including fixed income India analysis. We are also the largest player in corporate credit traded volumes number of trades.

Vitor: <unk> to cross sell in our retail client base with innovative and that threat chief offerings targeting to achieve 1 billion reais per year junior.

And midsized banks time deposits distribution among other indicators.

Does advantage place XP ahead of any player in the country regarding investments.

Vitor: Moving to the next slide we address our wholesale bank evolution.

Being top of mind is an important lever to capture any market share per tonnage.

Vitor: Yeah.

Vitor: Starting with GCM as we had anticipated last quarter the industry presented much lower volumes at the beginning of the year and we also were impacted.

And based on the <unk> rationale we are confident that we can navigate in <unk> grow our business, while benefiting from our operational leverage.

Vitor: On the flip side.

Vitor: As we had also anticipated and expected it was possible to gain market share and key broker Dan shows of top ranking in GCM agribusiness credit notes and real estate funds why would you just Sam industry reduce it by 19% year over year ex <unk> had an impact.

Now on our multichannel distribution I would like to remind you that since we have implemented our proprietary tools provide you more intelligence to support internal advisors with Delek shifts.

We had increased daily achieve its by 11 times roll us out through all of our advisors. We have seen he has done their dies it model, providing higher productivity and client satisfaction across the board results of that are clear.

Vitor: Of 8% year over year.

Vitor: During the last years, we built the largest investment platform in Brazil with relevance in secondary trading uses a true differential to compete in <unk> today and in the future regarding XP institutional broker dealer, it's another quarter that we gained market share.

The standardization of the way of work resulted in.

19% lower year over year client churn and 14% higher year over year in our direct to recommended a location in parallel we keep focusing on quality, we have increases our top tier advisors by 21% year over year there.

Vitor: In the end of 'twenty 'twenty, four XP posted 16% market share and now we are at 17 Capeci had you had we didn't either in recent quarters, we havent scribe it our corporate sector's growth engine.

The letter shows that the most productive profile is increasing faster and we should capture these benefits during the next years by providing a better level of service to our clients more intelligence to our advisors and recommended a location process along their financial planning in niche achieve we are.

Vitor: First our capacity to originate warehouse and just debuted corporate credit it's way better than it was a few years ago and second how we are strategically warehousing assets under different market conditions XP became a relevant player in the more important than that is for sure.

Seen in core agent results just powerful combination resulted in 10 points higher NPS and a lifting that new money off more than 50% for our clients that went through the financial planning process. Besides that.

Vitor: How we have created a unique loop to recycle or corporate securities book to retail and institutional channels in the quarter. We have sold a good portion of our book from the end of 'twenty 'twenty, four and we have warehouses more than that achieving 34 billion and that increase.

And then there guys at model includes Ifa's and provides not only scale, but also balanced returns to a client with different risk profiles in other words, we see clients become even more satisfied. We force serves why would they have returns aligned with their profiles on all Chi.

Vitor: Of 2 billion quarter over quarter. The rationale was backend by our understanding that GCM is sue if mild volumes in second acquired their 25, and we want to keep our competitiveness in the fixed income arena to our retail clients to conclude my presentation.

<unk> finally, we were once again awarded as the best financial adviser platform in Brazil, something we are very proud off.

Vitor: I'd like to reinforce that we are starting to reap the benefits of the cross sell and wholesale strategy. We have been implementing the last few years.

Just shows how we keep innovating and getting ahead of competition to <unk> strategy throughout the years, but all does this strategy, having common our client satisfaction as they pray arch now, let's move to the next slide and see retail cross sell figures as.

Vitor: Despite not having yet our baas achieving investment cycle, we are delivering solid results, capturing operating leverage with margin and Roe expansion.

As we have read mention dream recent quarters, we launch it mainly initiatives should provide better quality service to our clients and as a consequence, they are increasing their engagement with XP.

Vitor: We believe we are SKU at the beginning of this process and we are already projecting to close the year with ROE expansion, which is also a trend we expect to continue in the coming years.

Now, let's see margin tails on our cross sell and the first one is graded car.

Vitor: Now I will hand, it over to Victor who will provide a deeper look into our financial performance in this quarter. Thank you Omar and good evening, everyone. It is a pleasure to be here, if you to discuss our financial performance for the first quarter of 2025.

It grew 7% year over year, marking two.

<unk>, one 1 billion in deep UV during first quarter.

Despite this says on that each quarter over quarter, we expect <unk>, our credit card business with the new loans, we will have by Julian we offered two new products focused on the affluent and private bank segments, the new offering will comprehend and attractive package of benefits that we will accelerate our bent.

Victor: So lets begin the financial highlights for the quarter.

Victor: Total gross revenues for the quarter reached $4 6 billion, representing a 7% increase year over year, and a 4% decrease quarter over quarter. It's important you're bearing in mind. This is an attitude of the first quarter due to holidays and summer time, we must pay attention that the retail group Inc.

Iteration pace.

Life insurance written premium presented 40% growth year over year in first quarter 'twenty five.

Victor: <unk> year over year corporate industry service, 11% year over year and other busted my understand the 4% year over year, considering other revenue concept is important to understand the probation commemorates restructuring effects.

As we said before our insurance business is another growth Avenue for the next years CCR penetration is due in early stage and we will keep evolving on quarterly base.

It is important to recap that we are starting to reap the benefits from our own insurance company.

Victor: Just to recap the further restructuring the financial results generated from cash position invested from the issue that usage should be allocated among other revenue and the cost of corporate that was allocated interest expense on debt now if the XP bank on the thought of the local conglomerate both concept.

It takes three years on average you'll see more positive results flowing through the P&L. This dynamic is because the first two years or more concentrated with paid commissions and provisions or retirement plans or client assets keep growing <unk> bullshit, 15% year over year.

Vitor: Our our locate them as at the bank net interest margin.

Vitor: If it wasn't for this effect other revenue would have been flat year over year.

Year of growth and market 83 billion.

Vitor: Therefore, as far to calculate the operational revenues growth excluding other blue disgrace total growth was 9% year over year sustaining that our businesses are responding to our plan for the year and accelerating for the second half of 2025, the key drivers behind this growth for the year, while retail fleet sitting.

<unk> has only 5% market share and there is a lot of room to grow.

As I said in recent quarters, we implemented new initiatives as cashback and sales force expansion to keep gaining relevance in our offering during the next years retail credit NII boosted 48% growth year over year, marking 82 million in <unk>.

Vitor: Retail new verticals and other retail with our new venture is growing at the first base on the wholesale bank corporate also posted positive growth of 23% year over year.

Revenues in the quarter, our language and process is based on client investments Escalope Taro.

And we have a lower than 1% ECL.

Vitor: As just mentioned at retail revenues grew 10% year over year and minus 4% quarter over required.

On other new products compounded by effects global investments <unk> count and consortium, they presented 90, 90% growth year over year with revenues, marking $205 million this quarter. It cohoba rates, we plan to explore other opera.

Vitor: Retail revenue posted three 4 billion in the acquired through a 10% growth year over year, and a 4% decrease quarter over quarter. Due to this has an editing as expected fixed income was the main driver in the quarter, achieving 1.015 billion highs.

<unk> through cross sell in our retail client base, we have innovative and attractive offerings targeting to achieve 1 billion reais for a year <unk>.

Vitor: With four 5% growth year over year, and posting 3% growth quarter over quarter.

Vitor: For the first time.

Vitor: History fix it income was the largest revenue in retail fixed income results are completely connected deferred distribution capacity warehouse warehousing strategy and the relevance and secondary trading.

Moving to the next slide we will address our wholesale bank evolution.

Starting with GCM as we had anticipated last quarter the industry presented much lower volumes at the beginning of the year and we also were impacted.

Vitor: I also would like to highlight that other retail posted 19% growth in the year, mainly supported by effects Global account and destock count, let's move next to the slide if corporate Nishu Cyrus.

On the flip side.

As we had also anticipated and expected it was possible to gain market share and keep our credentials of top ranking in GCM agribusiness credit notes and real estate funds why would you this damn industry reduce it by 19% year over year <unk> had an impact.

Vitor: Corporate and Nishu services revenue increased 11% year over year, marking 562, 2 million highs and minus 6% quarter over quarter.

Vitor: Even in a scenario if lower volumes from local industry, we gain market share and in DCM Arena and as a result, you should services delivered flattish revenues year over year, marking 208, 2 million highs and a decrease of 16% quieter of required here.

Of 8% year over year.

During the last years, we built the largest investment platform in Brazil with relevance in secondary trading uses a true differential to compete in <unk> today and in the future regarding XP institutional broker dealer, it's a modern quieter that we gained market share.

Vitor: It was a strong quieter for our corporate division, capturing cross selling opportunities, mainly if derivatives and energy corporate posted 200 in the 18 million housing the quieter with 23% growth year over year, and 7% growth quarter over quarter.

In the end of 'twenty 'twenty, four XP posted 16% market share and now we are at 17 Capeci head to head with the leader in recent quarters, we have scrubbed, our corporate secures growth engine first our capacity to originate warehouse and distribute corporate.

Vitor: Moving on to the next slide we will explore our SG&A and efficiency ratios.

Vitor: Our SG&A expenses totaled $1 4 billion in the quieter flat year over year, and 10% lower quarter over quarter.

Speaker Change: Greg It's way better than it was a few years ago and second how we are strategically warehousing assets under different market conditions XP became a relevant player in the more important than that is to show how we have created a unique loop to recycle or corporate.

Vitor: We still focus on our expense control discipline, such as new hirings of internal advisors.

Vitor: Once again, we improved our efficiency ratio and this time it was lower in 240 basis points, reaching 34 bring to 1% in the first quarter is the lowest CRA is doing.

Speaker Change: Securities book to retail and institutional channels in the quarter. We have sold a good portion of our book from the end of 'twenty 'twenty four and we have warehouses more than that achieving 34 billion a net increase of 2 billion quarter over quarter. The rationale was.

Vitor: As revenue growth outpaces expense growth, we expect to continue gains in operating leverage as we scale our business, even considering new investments to enhance our platform such as improvement in your banking offering and the more intelligence segmentation.

Vitor: Moving to the next slide.

Speaker Change: And by our understanding that GCM is chu with mild volumes in Sakhalin acquired their 25, and we want to keep our competitiveness in the fixed income arena to our retail clients to conclude my presentation I'd like to reinforce that we are starting to reap the benefits.

Vitor: As a consequence of our assertive strategy to providing complete our sophisticated investment platform to our clients. Our EBIT margin expanded 220 basis points year over year, reaching 29, 1%. It also represents our expansion of 40 basis points quarter over required and photo EBT for a day.

Speaker Change: Of the cross sell in the wholesale strategy, we have been implementing the last years.

Vitor: Arthur was $1 3, billion% to 16% increase year over year, and minus 2% quarter over quarter as I said the last quarter. During 2025, our efforts will be concentrated on expanding our ecosystem and capturing the benefits of a larger business targeting our commitments through 2026.

Speaker Change: Despite not having yet our baas achieving investment cycle, we are delivering solid results, capturing operating leverage with margin and Roe expansion.

Speaker Change: We believe we are SKU at the beginning of this process and we are already projecting to close the year with ROE expansion, which is also a trend. We expect you can channel in the coming years now.

Vitor: Deliver EBIT margin between 30 and 34 on the next slide we see the net income net income achieving $1 2 billion highs at 20% growth year over year, and a 2% growth quite a bit of required them.

Speaker Change: Now I will hand, it over to Victor who will provide a deeper look into your financial performance in this quarter. Thank you <unk> and good evening, everyone is a pleasure to be here, if you to discuss our financial performance for the first quarter of 2025.

Vitor: As Massimo mentioned it a hacker high net income for the quarter and more importantly, EPS grew 24% year over year, and we will explore it as rather in the next slide.

Vitor: We have been more vocal minority share buyback programs lately, our diluted EPS attributed to highs in 2009 cents per share and as a consequence of is it getting the program and canceling the shares its growth pace is faster than our net income.

Victor: Now, let's begin the financial highlights for the quieter.

Victor: Total gross revenues for the quarter, the reshaped $4 6 billion, representing a 7% increase year over year, and a 4% decrease quarter over quarter. It's important to bear in mind. This is an attitude of the first quarter due to holidays and summer time, we must pay attention that the retail group <unk> <unk>.

Vitor: During the first quarter of 'twenty, five or a diluted EPS posted 25% growth while the net income grew 20% both on a year over year basis in the quieter R O T market, 32%.

Victor: Rent year over year corporate industry service, 11% year over year and other busted my understand at 4% year over year, considering other revenue concept using Parsons, who understand the probation conglomerate restructuring effects and just to recap before either restructuring the financial results generated from cash position.

Vitor: For 107, four basis points higher year over year and are we achieving 24, 1% if 340 basis points higher than the last year.

Vitor: When compared on quieter over quarter basis, our OTT inquiries at 101 basis points.

Victor: <unk> invested from the issue that usage should be allocated in other revenue and the cost of corporate that was allocated interest expense on debt now if the XP bank on the thought of the local conglomerate. Both concepts are located as the bank net interest margin if it wasn't for this effect.

Vitor: Inquiries at 68 basis points, respectively.

Vitor: And now moving to capital management.

Vitor: As we demonstrated last quarter XP has distributed closer to 10 billion highs in dividends and buybacks during the last years.

Vitor: Doing this we also have as of Q2, there are less buyback program and today, we announced a new one off won't be then has the new programs can be executed until December 26, and in spite of our plan to return more than 50% of net income in both 2025 and 26 moving to the second part of capital.

Victor: Other revenue would have been flat year over year.

Victor: Therefore, as far to calculate the operational revenues growth excluding other real disgrace total growth was 9% year over year sustaining that our businesses are responding to our plan for the year and <unk> 18 for the second half of 2025, the key drivers behind this growth for the year, while retail fixed <unk>.

Vitor: Management on the next slides to conclude my presentation as anticipated last quarter, we had a new effect thrown dead for a 96, six resolution, which contributed positively to our capital ratio with turning our b as ratio to 19% in the quieter there's no resolution change at the operational IWA calculation.

Victor: Retail new verticals and other retail with our new venture is growing at the first base on the wholesale bank corporate also posted positive growth of 23% year over year.

Vitor: The new methodology introduces some additional factors such as the 10 year operational loss base. This combination of factors made operational <unk> model more risk sensitive, resulting in a reduction ESP required the capital on the right hand side of the slide we can see that the total R. W.

Victor: As just mentioned at retail revenues grew 10% year over year, and minus 4% quarter over quarter.

They are revenue posted three 4 billion in the acquired through a 10% growth year over year, and a 4% decrease quarter over quarter. Due to this has an editing as expected fix income was the main driver in the quarter, achieving 1.015 billion highs is with four 5% growth.

Vitor: <unk> to total assets reduce it by two percentage points year over year, and total word W. <unk> reduce it by 4% sequentially when compared to the last quarter. As I said before are are the buoy, we worked with a moderated space Morrow if net income and delivered in some leverage throughout the year.

Victor: Year over year, and posting 3% growth quarter over quarter.

Victor: For the first time in our history fix it income was the largest revenue in retail fixed income results are completely connected deferred distribution capacity warehouse warehousing strategy and the relevance and secondary trading.

Vitor: It is important to highlight that our var stood stable at 16 basis points of fracking.

Vitor: 33 million highs demonstrating our risk discipline.

Victor: <unk> would like to highlight that other retail posted 19% growth in the year, mainly supported by FX Global account and destock count, let's move and access to the slide if corporate niche service.

Vitor: We continue to maintain our conservative capital position, if a Sichuan is standing at 17, 3% Sichuan alone is I read if our guidance up for a total bis ratio and well above our peers.

Victor: Corporate and Nishu services revenue increased 11% year over year, marking 562, 2 million highs and minus 6% quarter over quarter.

Vitor: Which provide us the flexibility to execute our strategy include further investments in technology, our business expansion and also enable us to return capital targeting our 16 to 19 be asked ratio guidance and know me I'm offering will be available for the Q&A session.

Victor: Given that scenario, if lower volumes from local industry, we gain market share and in DCM Arena and as a result issue services delivered flattish revenues year over year, marking 208, 2 million highs and a decrease of 16% quieter of required huh.

Vitor: Cool.

Victor: It was a strong quarter for our corporate division, capturing cross selling opportunities, mainly if derivatives and energy corporate posted to 100, and the 18 million highs in the quarter with 23% growth year over year, and 7% growth quarter over quarter.

Vitor: Now I'm going to start our Q&A session. The first question is from Eduardo Hoffman from BTG.

Speaker Change: You May proceed.

Vitor: Yeah.

Vitor: Hi, guys, good evening and congrats on the numbers.

Victor: Moving on to the next slide we will explore our SG&A and efficiency ratios.

Vitor: Two things here first on your ROE do you think you can continue to increase ROE towards the 30% level as we can see on your return on tangible equity. That's the question number number one and naturally I think it's it's linked.

Victor: Our SG&A expenses totaled $1 4 billion in the quieter flat year over year, and 10% lower quarter over quarter.

Victor: We still focus on our expense control discipline, such as new hirings of internal advisors.

Vitor: So the second question, which is regarding your payout I think you mentioned you know in the last conference call was that.

Victor: Once again, we improved our efficiency ratio and this time it was lower in 240 basis points, reaching 30 far bring to 1% in the first quarter is the lowest CRA is doing.

Vitor: You could sustain you know more than 50% pay out in the coming years.

Vitor: You're generating a lot of capital right.

Vitor: Even though you are doing buybacks and growing growing the the results. You know you generated more capital. So don't you think that 50% or close to that as conservative for the next couple of years. So this is this would you like to questions. Thanks.

Victor: As revenue growth outpaces expense growth, we expect to continue gains in operating leverage as we scale our business, even considering new investments to enhance our platform such as improvement in your banking offering and the more intelligence segmentation.

Speaker Change: Oh, Hi, Osman. Thank you for your question.

Victor: Moving to the next slide.

Vitor: First about the borrowing.

Victor: As a consequence of our our service strategy to providing complete our sophisticated investment platform to our clients. Our EBIT margin expanded 220 basis points year over year, reaching 29, 1%. It also represents our expansion of five basis points quarter over acquired photo Abd for a day.

Vitor: We said last quarter that we should see over 2025 from the risk weight assets growing at a slower pace than net income.

Vitor: The consequences is likely to be higher are we over this year and next year.

Vitor: As you say, they're O T is higher than 30 and overtime, we should close this gap between both of them.

Victor: <unk> was $1 3, billion% to 16% increase year over year, and minus 2% quarter over quarter as I said the last quarter. During 2025, our efforts will be concentrated on expanding our ecosystem and capturing the benefits of a larger business targeting our commitments through 2026.

Vitor: Also talking about.

Vitor: Capital returns, our Rbis ratio improve it required to have required her as we saved them.

Vitor: And these number of 50% of payout seems conservative and induce space should.

Victor: Deliver EBIT margin between 30 and 34 on the next slide we see the net income net income achieving $1 2 billion highs at 20% growth year over year, and a 2% growth quite a bit of required them as.

Vitor: It should be higher as the same as the last years.

Vitor: Great. Thanks, Thanks, a lot.

Speaker Change: Okay. Your next question is from pivotal Ledoux, Keith Olbermann Gucci.

Victor: As Massimo mentioned, a hacker high net income for the quarter more importantly, EPS grew 24% year over year, and we will explore it as bad during the next slide we have been more vocal minority share buyback programs lately, our diluted EPS attributed to highs in 2009 <unk> per share and as a consequence of that.

Speaker Change: Luca you May proceed.

Speaker Change: Alright. Thank you. So so much for taking the question two quick ones first on <unk>.

Speaker Change: Take rates, although of course, there were down seasonally Q on Q, but you are also undergoing a change underway remuneration goes fixed variable commissions et cetera. So if you can put that into context as well to help US also see how we should see the next quarters evolve.

Is it getting the program and canceling the shares its growth pace is faster than our net income.

Victor: During the first quarter of 'twenty, five or a diluted EPS posted 25% growth while the net income grew 20% both on a year over year basis in the acquired Iot market, 32% for a 174 basis points higher year over year and achieved a $24 one.

Speaker Change: I'll take rates, that's the first and then the second on the SG&A side.

Speaker Change: Right job there on the total figures when we look at the personal and variable was a big component there.

Victor: Percent is 305 basis points higher than the last year.

Speaker Change: So some seasonality here or is just really a tighter ship just to make sure that we see this line more more sustained four dose levels throughout the year. Thank you.

Victor: When compared on quarter over quarter basis, our Ot inquiries it.

Victor: 101 basis points.

Victor: <unk> increased it six to eight basis points respectively.

Speaker Change: Hi, Thank you for the question.

Victor: And now moving to capital management.

Speaker Change: Beginning U S journey than then we moved to to take rate.

Victor: As we demonstrated last quarter XP has distributed closer to 10 billion highs in dividends and buybacks during the last years.

Speaker Change: First well we are a performance base of the company and in the beginning of the year and some business that are more <unk>.

Victor: Doing this we also have as of Q2, there are less buyback program and today, we announced a new one off 1 billion highs. The new program can be executed until December 26, and aspire to for our plan to return more than 50% of friend that income in both 2025 and 26 moving to the second part of <unk>.

Speaker Change: As the investment banking institutional broker dealer.

Speaker Change: <unk> performed performed.

Speaker Change: Performance of those business was weaker than in there for Q.

Speaker Change: And as.

Speaker Change: As they have a compensation, there's more volatile the compensation provisions is lower but over the year as those business improving Ah. We may see this number getting a bit of the tire. The same as 2020 24, but we are committed to deliver some efficiencies in terms of efficiency ratio on bonus ratio even though.

Victor: Management on the next slide to conclude my presentation as anticipated last quarter, we had a new effect thrown dead for a 96, six resolution, which contributed positively to our capital ratio with turning our <unk> ratio to 19% in the quieter Disney resolutions change at the operational IWA calculation.

Speaker Change: <unk>.

Speaker Change: And talking about take rate it was a slightly lower than the four Q remembering that for Q, we will have some business lines as actions.

The new methodology introduces some additional factors such as the 10 year operational loss base.

Speaker Change: A bit higher than in the first quarter due the average traded volume in <unk> and also offered a premier offerings of public of listed funds.

Victor: This combination of factors made operational <unk> model more risk sensitive, resulting in a reduction ESP required the capital on the right hand side of the slide we can see that the total <unk> total assets reduce it by two percentage points year over year and total <unk> reduce it by.

Speaker Change: So.

Speaker Change: We expected the average number for take rates to follow the same pace as the last years and should help over a beat over the year, but not as higher as the <unk>.

Victor: <unk> percent sequentially when compared to the last quarter as I said before are are the buoy, we grow at the moderate space Morrow, if net income and delivered some leverage throughout the year.

Speaker Change: I can take the second part of your question.

Chagal: Did you did you frame, it's chagal here, just sure and good evening.

Chagal: So about the.

Chagal: Different models, and then you mentioned the flat fee against the transactional model.

Victor: It is important to highlight that our var stood stable at 16 basis points of Fracs, you are 33 million highs demonstrating our risk discipline.

Chagal: We have seen that.

Chagal: The D D.

Chagal: The fee based <unk> model growing in the past years. It was almost zero two years ago, we closed last year.

Victor: We continue to maintain our conservative capital position, if a Sichuan is standing at 17, 3% Sichuan alone is I read if our guidance up for a total bis ration and well above our peers.

Chagal: I would say around 40 billion I'm taking out here.

Chagal: What we called the WMC to wealth management.

Victor: Which provide us flexibility to execute our strategy include further investments in technology, our business expansion and also enable us to return capital targeting our 16 to 19 <unk> ratio guidance and now <unk> will be available for the Q&A session.

Chagal: And consulting business because of course, they are 100%.

Chagal: Flat fee, but owned it totally you see excluding.

Chagal: This channel.

Chagal: It was 40 billion out of almost 3 million last year, we expect user number to grow to I would say around 100 beat engines a year.

Victor: Hello.

Chagal: And what we see in terms of take rate.

Chagal: The take rate goes down a little bit Dara way when you compare that your models, but the share of wallet increase a lot. Okay. So in terms of revenue I would say, it's almost zero, if not zero or very close to so but we can bring a lot more money and we have been.

Victor: Now I'm going to start our Q&A session. The first question is from Eduardo Hoffman from BTG.

Speaker Change: You May proceed.

Eduardo Hoffman: Hi, guys, good evening and congrats on the numbers.

Speaker Change: Two things first on your ROE.

Chagal: <unk> a lot on.

Speaker Change: Do you think you can continue to increase ROE towards the 30% level as we can see on your return on tangible equity. That's the question number number one and naturally I think it's linked.

Chagal: Flat fee.

Chagal: The fee based model and also on the consulting model here that we can consolidate dosage outside of XP, we have implemented the.

Speaker Change: So the second question, which is regarding your payout I think you mentioned in the last conference call was that.

Chagal: The area on the beaches C channel I would say two or three months ago. It's growing really fast of course, the base was zero, but is growing so you can expect the consulting model N.

Speaker Change: You could sustain owe more than 50% payout in the coming years.

Speaker Change: But you are generating a lot of capital right.

Speaker Change: Even though you are by the buybacks and growing growing the the results. You know you generated more capital. So don't you think that 50% or close to that as conservative for the next couple of years. So these days would you like to questions. Thanks.

Chagal: The fee based <unk> model, which will grow in the next <unk> in the next years.

Speaker Change: This is great color. Thank you very much.

Chagal: Yes.

Speaker Change: Okay. Next question is from a uniform from Jpmorgan you May proceed.

Eduardo Hoffman: Hi, Hoffman and thank you for your question.

Speaker Change: Thank you Buddy.

Speaker Change: First about the they are we are.

Masoud mantra: Thank you Masoud mantra.

Speaker Change: We said last quarter that we should see over 2025 from the risk weight assets growing at a slower pace than net income the.

Masoud mantra: First 100 seats of income.

Masoud mantra: It was the first quarter that keeps that income is.

Masoud mantra: These are both Edwards right.

Speaker Change: The consequences is likely the higher ROE over this year.

Masoud mantra: Drag on your on your revenues. So just very interesting go ahead.

And next year.

Speaker Change: And as you say narrow to use higher than theory and overtime, we should close this gap between both of them.

Masoud mantra: Maybe you know better equity markets in Brazil.

Masoud mantra: I'm not sure if it's too soon to discuss lower rates.

Masoud mantra: When should we see the equity side of your business as you start to stabilize and how do you see the future of income because our second year historical and equity used to be three four times bigger than it peaks at income in Opex that income has surpassed so just trying to understand when we should see maybe.

Speaker Change: Also talking about.

Speaker Change: Capital returns, our <unk> ratio and improve with acquired through a required her as we saved.

Speaker Change: And this number of 50% of payout and it seems conservative.

This space should.

Speaker Change: It should be higher as the same as the last years.

Masoud mantra: Maybe I know there are some kind of natural hedges for each other but when should we see you know like a better momentum on those two agents for you and then just a more specific question on your expected credit losses. When we go through your account we did see an increase.

Speaker Change: Alright, Thanks, a lot.

Speaker Change: Okay. Your next question is from pivotal Ado Keto Libya.

Speaker Change: You May proceed.

Masoud mantra: ECL for you this quarter. So just checking you can DS is related to I don't know more warehousing of securities 90 neutral deal Tomorrow ECL.

Speaker Change: Alright. Thank you. So so much for taking the question two quick ones first on.

Speaker Change: On take rates.

Masoud mantra: Youll see some kind of marginal worsening on credit losses on any kind of portfolio. Thank you.

Speaker Change: So were down seasonally Q on Q, but you are also undergoing a change underway remuneration goals of fixed variable commissions et cetera. So if we can put that into context as well to help US also see how we should see the next quarters evolve on acreage that's the first.

Masoud mantra: Thank you for the question you didn't taking the first part here first of all when you look at actual revenues are the important part is that the market's needs to pick up and not only in performance, but also E traded volume if you compare quieter against quieter than they ever straight volume at <unk> was lower.

Speaker Change: And then the second on the SG&A side.

Great job there on the total figures.

Masoud mantra: And that back those negativity over over the quarter.

Speaker Change: We're looking at the personal and variable was a big component there.

Masoud mantra: And then also inside of design that is primary offering of listed funds some as real estate funds and other kind of products. So we need to see the market's improving to see this line.

Speaker Change: There's just some seasonality here or is this really a tighter ship just to make sure that we see this line more more sustained four dose levels throughout the year. Thank you.

Masoud mantra: Growing again also it's important to mention that we have a lot of operational leverage inside of the actual lines and we have dominance in several products as Martha showed in his presentation. So actually as futures options BG ours, and then Hugo So if markets improve here in Brazil, and we sure.

Speaker Change: Hi, <unk>. Thank you for the question.

Speaker Change: Beginning Eve SG&A, then then we move to take rate.

Speaker Change: First we.

Speaker Change: We are a performance base of the company and in the beginning of the year some business that are in <unk>.

Speaker Change: As the investment banking institutional broker dealer.

Speaker Change: <unk> performed performed.

Masoud mantra: You'd see this line coming are rising again, and but when you compare them fixed income now in fixed income one year two years ago NXP I don't think it will return at the same level or a degrees over time, even if you have the interest rates are starting to fall fall a little bit.

Speaker Change: The performance of those business was weaker than in the <unk> and.

Speaker Change: As they have a compensation that theres more volatile the compensation provisions is lower but over the year as those business improving we may see these numbers getting a bit a bit higher the same as 2000 2024, but we are committed to deliver some efficiency in terms of efficiency ratio on bonus ratio even though.

Masoud mantra: We still we're still gonna have high interest rates in Brazil, a lot of opportunity in fixed income and also the same market in Brazil was growing at a fast pace. This year, we may have.

Speaker Change: <unk>.

Speaker Change: And talking about take rate it was a slightly lower than that for Q remembering that <unk> have some business lines as actions.

Masoud mantra: And this is lower than a smaller market than last year, but the trend is very pause for this kind of product.

Speaker Change: A bit higher than in the first quarter due the average traded volumes be three and also offered a primary offerings of public of listed funds.

Victor: And just to complement Victor here.

Victor: The way I like to think about they create and the mix of revenues between the broad. It's it's basically three points. We have volume net vitro renovation. We have we are probably at the very close today. They bought off volumes in Brazil of course, if the pickup.

Speaker Change: So we expected the average number for a take rate to follow the same pace as the last years and should hook over a beat over the year, but not as higher as <unk>.

Speaker Change: I can take the second part of your question.

Speaker Change: About the Japan did your friend is juggle here just true and good evening. So about the different models and then you mentioned the flat fee against the transactional model.

Victor: We will have more revenues.

Victor: The second one is price the price that you didn't change.

Victor: Much would you didn't make any money in <unk> zing in commissions and so on so we didn't see any price pressure in any of the the the types of brothers in the past years. So what left us to the main point here is mix. Okay. So in the best two years.

Speaker Change: We have seen the D D.

Speaker Change: Fee based and module growing in the past years. It was almost zero two years ago. We closed last year I would say around 40 billion I'm taking out here, what we called the ws into wealth management.

Victor: Everything shifted from Altair and achieves reach and so on the equities to fixed income fixed income.

Speaker Change: And consulting business because of course, they are 100% flat fee, but on the total AUC excluding dish.

Victor: For reasons, you know very well they have the lowest Roe.

Speaker Change: <unk> channel.

Speaker Change: It was 40 billion out of almost 3 million last year, we expect user number to grow to I would say around 100 beta engines, a year, okay, and what we see in terms of take rate.

Victor: ROE a possible. So once we start you have a reshuffle in the mix that take rates should go up okay, but again as we mentioned in the past earnings calls we are not taking that into consideration for a guidance, but for sure that's a possible upside.

Speaker Change: The take rate goes down a little bit Dara way when you compare to two models, but the share of wallet increase <unk>. Okay. So in terms of revenue I would say, it's almost zero.

Victor: If we start to have a better cycle here.

Victor: Going to your second question about ECL.

Speaker Change: He is not zero or very close to so, but we can bring a lot more money and we have been investing a lot on.

Victor: A one off.

Victor: Van.

Victor: With one credit and you should normalize at that for the next square footage to around 100 million. That's a good Brooks for the next quarters.

Speaker Change: Flat fee.

Speaker Change: The fee based model and also on nickel Sochi module here.

Speaker Change: Well Super Spikier, Martha and just making throughput checking here like your ROE message or are we moving up or moving up it doesn't doesn't imply any material change on your current revenue meet spreads.

We can consolidate a ghosted outside of XP, we have implemented the.

Speaker Change: The area on the BTC channel I would say two three months ago, it's growing really fast of course, the biswas zero, but is growing so you can expect vehicles Sochi module and.

Victor: No.

Victor: Okay. Thank you very much and Congress.

Victor: Okay. Next question is from August obviously, rather than from city children. You May proceed.

Speaker Change: The fee based model to grow in the next junior in in the next few years.

Victor: Yes.

Speaker Change: That was great color. Thank you very much.

Speaker Change: Hi, guys. Good evening and thanks for taking my question and congrats on the on the.

Speaker Change: Okay.

Speaker Change: Okay. Next question is from a uniform <unk> from Jpmorgan you May proceed.

Victor: Decent results I have two questions as well the first one is Q1 revenues of surgery system.

Speaker Change: Thank you Buddy.

Victor: <unk>.

Victor: Taking your guidance for for the year that you provided last quarter.

Speaker Change: Joe Mazzoli Martha.

Speaker Change: First 100 seats of income.

Walter: Walter you mentioned that the revenues.

Speaker Change: It was the first quarter that keeps that income.

Walter: It should grow at least 10% in this quarter at 7%, although we saw strong or decent growth in the weekday of up 10% year on year, but the growers are they've consolidated revenues to grow in below the guidance range. So.

Speaker Change: <unk> is above backwards right.

Speaker Change: The drag on your on your RV revenues, so just trying to get ahead.

Speaker Change: Better equity markets in Brazil.

Speaker Change: Not sure if it's too soon to discuss lower rates.

Speaker Change: But when should we see you know the equity side those are start to stabilize.

Walter: I believe that as you as you Didnt change your guidance I believe that you are still believing that so if you could share with us which line should improve in the.

Speaker Change: How do you see the fee income because our second year, the historical and equity used to be three four times bigger than <unk>.

Walter: I mean to give or give us more color of what should expect in terms of our gross revenue growth.

Speaker Change: Your best So just trying to understand when we should see maybe.

Victor: Again, you mentioned that.

Speaker Change: Maybe I know there are some kind of natural hedges each other but when should we see you know like a better momentum on those two agents.

Victor: I would say that you are more conservative in terms of take rates.

Victor: Especially considering the mix, but as you said that by is it still growing so dale.

Speaker Change: And then just a more specific question on your expected credit losses when.

Victor: Any color on gross revenue growth would be very helpful.

Victor: And my second question is regarding your luxury consolidated tax.

When we go into your account.

Speaker Change: We did see an increase on the ECL for you. This quarter. So just check these is related to Idaho more warehousing of securities lending each deal tomorrow.

Victor: Tax rate.

Victor:

Victor: If I'm not wrong youll be like a 14, 6% this quarter versus 18% last quarter. So.

Speaker Change: Or if you are seeing some kind of marginal worsening.

Victor: What would explain the slower let's say consolidated tax rate. Thank you.

Speaker Change: Credit losses on any kind of portfolio.

Speaker Change: Yes.

Speaker Change: Thank you for the question Ut taking the first part here.

Victor: I will take the first one shareholder and thank you very much for your question.

Speaker Change: First of all when you look at actual revenues.

Victor: Yes, we didn't change the guidance of at least 10% grow fee revenues for 25.

Speaker Change: The important part is that the market's needs to pick up and not only in performance, but also E traded volume if you compare quieter against quieter than they ever straight volume at <unk> was lower than that.

Victor: We all read.

Victor: Neal that the first half of the year Q1 and Q2.

Speaker Change: In fact, those negativity over over the quarter.

Victor: We would face tough comps because of many reasons because the capital markets was very strong.

Speaker Change: And then also inside of this line there is primary offering of listed funds some as real estate funds and other kind of products. So we need to see the market's improving do you see this line.

Victor: Last year, we knew that that would go down and use year, we're going to grow more on the retail then why do we have been delivering on on issuer services and and in corporate so it wasn't on our budget to have a lower than 10% roof.

Speaker Change: Growing again also it is important to mention that we have a lot of operational leverage inside of the actual lines and we have dominance in several products as Martha showed in his presentation. So actually as futures options BG ours, and then Hugo So if markets improve here in Brazil.

Victor: On the first two quarters to be honest, we are 1% higher than the budget for Q1. Okay. So we are very on track.

Speaker Change: We should see this line coming are rising again, and but when you compare them fixed income now in fixed income one year two years ago. We NXP I don't think it will return at the same level or a degrees over time, even if you have an interest rates are starting to fall fall a little bit.

Victor: So that was a red plan. The second one important point here is that you have in mind that the first quarter is always the lowest quarter of the year in terms of revenue in terms of our net income in most all of the metrics. So you should see or <unk>.

Speaker Change: We still we're still gonna have high interest rates in Brazil, a lot of opportunity in fixed income and also the DCM market in Brazil was growing at a fast pace. This year, we may have a slower a smaller market than last year, but the trend is very poised for this kind of product.

Victor: Moving in the next quarters.

Victor: And we have.

Victor: Then in our budget a higher growth on the.

Victor: Second half.

Victor: <unk> of the year. So that's why we are comfortable and confident that we can deliver at least 10% growth in revenues should give you some more color.

Speaker Change: And just to complement Victor here.

Victor: Again, <unk> <unk> from last year, most of the growth in revenue will come from retail, okay, So, especially because of issuer services, that's not going to grow at <unk>. The first main point point on retail to heavy minus fixed income we believe that.

The way I like to think about take rate and the mix of revenues between the broad. It's it's basically three points we have volume.

Speaker Change: Vitro renovation, we have we are probably at the very close today. They bought off volumes in Brazil of course, you today, because we will have more revenues.

Victor: Fixed income as you read saw was for the first time the highest.

Speaker Change: The second one is price the price that you didn't change much we didn't make any money in equity using E commissions and so on so we didn't see any price pressure in any of the the the types of products in the past years, So what left us.

Victor: Revenue among older brothers for the first time ever.

Victor: Ever and we believe that should continue through two happened because the mix will not change.

Victor: That fast.

Victor: At least not easier in.

Victor: In our view.

Victor: And our capacity to originate warehouse and distribute products.

Speaker Change: As to the main point here is mix. Okay. So in the best two years everything shifted from Alterra and achieves REIT and so on the equities to fixed income fixed income.

Victor: Especially structured notes corporate bonds and midsized bank time deposits.

Victor: A big competitive advantage in our view and we will continue to grow the second one is new verticals.

Victor: We have many levers here one of them is graded cards. If you see that was the lowest growth on the first quarter, if I'm not mistaken seven.

Speaker Change: For reasons, you know very well they have the lowest Roe.

Speaker Change: On our way.

Speaker Change: Possible. So once we start you will have a reshuffle in the mix that take rates should go up okay, but again as we mentioned the bes.

Victor: Eight seven something 8% on the first quarter of your year over year.

Victor: We are going to launch a new family of cards, you June Jews year thoughts are.

Speaker Change: In these calls we are not taking that into consideration for a guidance, but for sure. That's a possible upside if we start to have a better cycle here Glenn.

Victor: Rated cards for affluent and Broward bank clients and we are very confident that we are going to accelerate the growth for cards on the second half of.

Speaker Change: Going to your second question about ECL.

Speaker Change: It was a one off event with one credit and you shouldn't normalize that for the next <unk> to around 100 million. That's a good Brooks for the next quarters.

Victor: The second thing on new verticals is insurance.

Victor: We're very confident that we are going to keep the pace of 40% year over year for the year. So.

Speaker Change: Oh Super Spikier, Martha and just making throughput checking to hear like your ROE message.

Victor: And as the base is growing in nominal terms year is gonna be much bigger than than last year.

Speaker Change: Or are we moving up.

Speaker Change: <unk> moving up it doesn't doesn't imply any material change on your current revenue need stripes.

Victor: On the other points consortium that we released last year. The revenue was almost zero, it's going to be I would say more than 100, Davir global accounts use door counts off them, they're growing at a really fast pace. If you see the numbers. It was 90, 90% year over.

Speaker Change: No.

Speaker Change: Okay. Thank you very much and Congress.

Speaker Change: Okay. Next question is from our established Robyn <unk> from Citi shoulder knee you May proceed.

Victor: A year and we believe we can.

Speaker Change: Hi, guys. Good evening and thanks for taking my question and congrats on the on the.

Victor: Go close to that number easier okay.

Victor: And.

Speaker Change: And the decent results.

Victor: The last part is a corporate will continue to grow this year, but it will be partially offset by issuer serves but corporate itself will grow this year. So that's how we get there and how we grow.

Speaker Change: Two questions as well the person is two on revenues of surgery system.

Speaker Change: Taking your guidance for the year that you provided.

Speaker Change: That's water.

Speaker Change: You mentioned that the revenues.

Speaker Change: It should grow at least 10% in this quarter at 7%, although we saw strong or decent growth in the retail up 10% year on year, but the growers are they've consolidated revenues to grow in below the guidance range. So.

Victor: Alright, Thank you thinking thinking the second part of the question here about tax base.

Victor: Basically the explanation is business mix revenue mix.

Victor: The <unk>, who had a stronger investment banking nishu surfaces fine and boost is an attitude and as expected for everyone else in the market. They use your services business in this quarter was not as strong as the last one and we supplemented that if the secondary market and the warehouse strategy that pay lower taxes done the inverse.

Speaker Change: I believe that as you did.

You didn't change your guidance I believe that you are still believing that so if you could share with us which line should improve in the.

Speaker Change: I mean to give or give us more color over what you'd expect in terms of our gross revenue growth.

Victor: Non banking business and basically over the year. If the scenario is the same we should have a slightly lower average adjusted tax rate over 2075 against 2024.

Speaker Change: Again, you mentioned that.

Speaker Change: I would say that to a march conservative in terms of a take rate.

Speaker Change: Actually considering the mix, but as you said that by is it still growing so.

Speaker Change: Any color on gross revenue growth would be very helpful.

Victor: Okay, guys Super clear, thank you very much.

Speaker Change: And my second question is regarding your let's say consolidated tax.

Tax rate.

Victor: Okay. Next question is from our myopia he.

Speaker Change:

Speaker Change: If I'm not wrong, you'll be like a 14, 6% this quarter versus 18% or less water. So.

Speaker Change: The Bank of America you May proceed.

Speaker Change: Hey, guys. Thanks for taking my question I wanted to focus a little bit more on the retail.

Speaker Change: What would explain his lower let's say consolidated tax rate. Thank you.

Speaker Change: Inflows of 20 billion V I.

Speaker Change: I will take the first one Sharon and thank you very much for question, Yes would you didn't change the guidance of at least 10% grow fee revenues for 25.

Speaker Change: Because we have seen increased activity b three we're seeing volumes picking up are you seeing any signs.

Speaker Change: Improving inflows if you.

Speaker Change: We all read.

Speaker Change: We can discuss a little bit about you know the.

Neal: Neal that the first half of the year Q1, and Q2, we were.

Speaker Change: The inflows that you saw throughout the quarter and what are you seeing at the beginning of the second quarter.

Neal: Would face tough comps because of many reasons because of the <unk>.

Speaker Change: I think there'll be a helpful because right.

Neal: Markets was very strong last year, and we knew that that would go down and this year, we're going to grow more on the retail then why do we have been delivering on on issuer services, then and in corporate so it was on our budget to have a lower.

Speaker Change: Many times in the past that you were working to improve productivity of the advisors.

Speaker Change: But it feels like inflows are growing less than or slower pace than and advisors.

Speaker Change: So just trying to get a better sense from you are you seeing increased productivity is that really happening now and interesting better markets leading to higher inflows.

Neal: And then 10% growth on the first two quarters to be honest, we are 1% higher than the budget for Q1. Okay. So we are very on track.

Speaker Change: Second question also related to.

Speaker Change: Discussing the path of growing through the affluent market.

Speaker Change: Do you have any data to share with us on that segment. Thank you.

Neal: So that was a red plan.

The second one important point here is to have in mind that the first quarter is always the lowest squad gear of the year in terms of revenue in terms of net income in most all of the metrics. So you should see or the metrics or is improving in the next quarters.

Speaker Change: Well.

Speaker Change: Thinking about it for a question.

Speaker Change: What happened is.

Speaker Change: I would say that we are still at the same 20 billion level. Okay. We'd you didn't see and of course, the number was $20 billion.

Neal: And we have a plan in our budget a higher growth on the second half of.

Speaker Change: And.

Speaker Change: We have been talking that's a fair number.

Speaker Change: For now and will be the same thing for for Q2.

Neal: The year. So that's why we are comfortable and confident that we can deliver at least 10% growth in revenues should give you some more color.

Speaker Change: I cannot say about Q3 and four but that's a good brooks for for next quarter.

Speaker Change: We didn't see an.

Speaker Change: An improvement yet on the level of net new money.

Neal: Again, <unk> <unk> from last year, most of the growth in revenue will come from retail, okay. So, especially because of issuer serves that's not going to grow with <unk>.

Speaker Change: Again interest rate there.

Speaker Change: We are at peak right now it will take some time.

Speaker Change: For investors to start moving money from this Cds from the banks to the platforms.

The first main point point on retail to heavy minus fixed income we believe that <unk>.

Speaker Change: We didn't see that accelerating yet.

Neal: Fixed income as you read saw west for the first time the highest.

Speaker Change: So that that's the color we have right now.

Neal: Revenue among older brothers for the first time ever.

Speaker Change: You mentioned the number of phase if you see it has been flattish.

Neal: Ever and we believe that that should continue to happen because the mix will not change.

Speaker Change: I would say for the best quarters, especially on the beach would be channel.

On that fast.

Speaker Change: Why because we have been focusing a lot on the quality of the IFA edge advisors. So we have been reducing a little bit in the number of ifa's. Okay. It's increasing on the beach you see channel each increasing on the consulting but a decrease at <unk>.

Neal: At least not easier in our view and our capacity to originate warehouse and distribute products, especially.

Neal: Holly stricture nodes corporate bonds and midsized bank time deposits.

Neal: It's a big competitive advantage in our view and we will continue to grow the second one is new verticals, we have many levers here.

Speaker Change: The <unk> channel in the first on the last quarters, we have been focused on expansion on the B to B channel again, so we expect the number off of it stays on the bitumen channel Chu.

Neal: One of them is Brady cars, if you see that was the lowest growth on the first quarter, if I'm not mistaken seven.

Speaker Change: Start growing again, we.

Neal: Eight seven something 8% on the first quarter of your year over a year.

Speaker Change: We have seen a lot of improvement on on the Beach you see channel are a challenge here on the print achieved decide that you mentioned, but our challenge here is how to roll this out to the B to B channel, we have been implementing a lot of.

Neal: We are going to launch a new family of cards in June <unk> tops are a rated cards for affluent and Broward bank clients and we are very confident that we are going to accelerate the growth for cards on the the second half.

Speaker Change: Tools training and so on and we are confident that we are going to capture that in the future but to be honest with you then capture yet okay. So that's why you're seeing we mentioned that 60% came from the new channels, so meaning 40.

The second thing on new verticals is insurance.

Neal: We are very confident that we are going to keep the pace of 40% year over year for the year. So.

Neal: And as the base is growing in nominal terms junior is gonna be much bigger than than last year.

Speaker Change: Percent came from the <unk> channel.

Speaker Change: So.

Neal: Another points consortium that we released last year. The revenue was almost zero, it's going to be I would say more than 100 does year global accounts use door counts off them, they're growing at a really fast pace. If you see the numbers it was 99% a year.

Speaker Change: We are really focused on that and we expect that we.

Speaker Change: We will capture the benefits in the near future.

Speaker Change: Okay, that's clear and the strategy of the S. One as well.

Speaker Change: Market.

Neal: Over a year and we believe we can go close to that number easier okay.

Speaker Change: Yes, that's a good question we have been as.

Speaker Change: You signed the past we have been investing a lot on the especially on the private bank.

Neal: And.

Neal: The last part is a corporate we will continue to grow through the year, but it will be partially offset by issuer services, but corporate itself will grow this year. So that's how we get there and how we grow.

Speaker Change: Business year, we hired a new seal for the private bank says or Uh huh.

Speaker Change: <unk> had a lot of experience running this citibank private banking in the U S for U S clients. He brought a lot of new guys new leaders for the business.

Neal: Thank you thinking thinking the second part of the question here about tax base.

Speaker Change: We had in the past years.

Neal: Basically the explanation is business mix revenue mix I mean, the four acute who had a stronger investment banking issue services line and do says an attitude and as expected for everyone else in the market. They use your services business in this quarter was not as strong as the last one and we supplemented that if.

Speaker Change: Zero or negative V flow on that business and last year was a little bit is slightly positive and Gs year's going to be a much better. So it's.

Speaker Change: It's it's going but it's a long process because when you talk about Brexit banking business. It's about building a franchisee. It's a long term investment in our long term business and we are looking very carefully and investing a lot.

Neal: The secondary market and the warehouse strategy that pay lower taxes than the investment banking business and basically over the year. If the scenario is the same we should have a slightly lower average adjusted tax rate over 2075 against 1024.

Speaker Change: But it will take some time make sure to bring results from from the private bank, but we are confident.

Speaker Change: Okay Super clear, thank you very much.

Speaker Change: Yeah.

Speaker Change: Okay. Thank you.

Speaker Change: Okay. Next question is from Oh, Lovell Orthos will from UBS Lovell you May proceed.

Speaker Change: Okay. Next question is from our myopia. He bank of America you May proceed.

Speaker Change: Yes.

Speaker Change: Hey, guys.

Speaker Change: Hi, guys.

Speaker Change: For taking my question I wanted to focus a little bit more on the retail.

Speaker Change: Thank you for taking my question here.

Speaker Change: Basically two questions.

Speaker Change: Inflows of 20 billion Reais.

Speaker Change: It's very hard suites, or because you started to provide a breakdown of total assets.

Speaker Change: Because we have seen increased activity it'd be three we're seeing volumes picking up are you seeing any signs.

Speaker Change: A very quick.

Speaker Change: I was just wondering how much.

Speaker Change: Improving inflows if you can discuss a little bit about you know the inflows that you saw throughout the quarter and what are you seeing at the beginning of the second quarter.

Speaker Change: The full service represents of the total lawsuits.

Speaker Change: <unk> disclosed that part of the squad.

Speaker Change: And my second question is.

Speaker Change: Regarding our growth strategy.

Speaker Change: I think there'll be a helpful because right.

Speaker Change: Many times in the past that you were working to improve productivity of the advisors.

Speaker Change: After launching the banking system <unk> couple of years ago.

Speaker Change: The accounts and then of the credit cards I think he is one of the main occur into one.

Speaker Change: But it feels like inflows are growing less than or slower pace than and advisors.

Speaker Change: The pulsar trial.

Speaker Change: So just trying to get a better sense from you are you seeing increased productivity is really happening now and if youre seeing better markets leading to higher inflows.

Speaker Change: Jos.

Speaker Change: <unk> maintained.

Speaker Change: And the numbers.

Speaker Change: Taking into consideration the whole industry political songs from has been impressive so far in terms of.

Speaker Change: Second question also related to.

Speaker Change: <unk>. So if you could just elaborate a little bit more on the cold starts from Kroll, especially thinking about domingos numbers like the penetration of the broader tickets and I think charters like lumber.

Speaker Change: Discussing the past of drawing to the affluence well market.

Speaker Change: Do you have any data to share with us on that segment. Thank you.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Thinking about it for a question.

Speaker Change: And you know that Costar offers with single dose 200, and <unk> this quarter.

Speaker Change: What happened is.

Speaker Change: I would say that we are still at the same 20 billion level. Okay. We'd you didn't see and of course, the number was 20 billion.

Speaker Change: So.

Speaker Change: How much does nickel such represents that number for the quarter, so less less anymore detail color on this would be very helpful and thank you very much yes.

Speaker Change: And we have been talking that's a fair number.

Speaker Change: For now and will be the same thing for for Q2.

Speaker Change: Yes.

Speaker Change: I cannot say about Q3 and four but that's a good Brooks for for next quarter are.

Speaker Change: Thank you all of them I didn't get your first question. So I will start for the second one and then you you you repeat your first question.

We didn't see an improvement yet on the level of net new money.

Speaker Change: About consortium.

Speaker Change: Represents a very small.

Speaker Change: Again interest rate there.

Speaker Change: We are at peak right now it will take some time.

Speaker Change: Revenue, yet because the way we recognize the revenues basically the the upfront fee. It goes to base Commission. So we make zero when we sell a consortium then we have an agreement with the team.

Speaker Change: For investors to start moving money from this Cds from the banks to the platforms are we didnt see that accelerating yet.

Speaker Change: So that that's the color we have right now.

Speaker Change: Jimmy It's raiders and we receive a fee monthly by monthly because we we have a revenue share with them. So it's more like a recurring revenue during the term of the consortium. So it's a business that we have to to build the <unk>.

You mentioned a number of phases you see it has been flattish.

Speaker Change: I would say for the best quarters, especially on the beach would be channel.

Speaker Change: Why because we have been focusing a lot on the quality of the IFA advisors. So we have been reducing a little bit then the number of ifa's. Okay. It's increasing on the beach you see channel, it's increasing on the consulting but easy created Oh.

Speaker Change: Which fall you should then capture the revenues we start building the portfolio last year I would say half of last year.

Speaker Change: For some of the months you read produce more than a billion.

Speaker Change: The <unk> channel in the first on the last quarters, we have been focused on expansion on the B to B channel again, so we expect the number off of it stays on the beach humid channel Chu.

Speaker Change: Per month, Okay. So each growing fast and the way we work that brought it to be on this before knowing the Brotherhood you didn't like the per hundred because of everything you heard but once you start working with of course consortium as a I.

Speaker Change: Start growing again.

Speaker Change: We have seen a lot of improvement on on the beat you see channel are a challenge here on the print achieved decide that you mentioned, but our challenge here is how to roll out to the B to B channel, we have been implementing a lot of tools training and so on.

Speaker Change: I would say I structured credit.

Speaker Change: Then it's a good approach we don't sell consortium as investments for sure of course.

Speaker Change: But as I structured credit it can be very accretive to our clients and we have been doing a lot for private bank clients are even for our owners of big companies and so on because you have very cheap.

Speaker Change: And we are confident that we are going to capture that in the future but to be honest with you then capture yet okay. So that's why you are seeing are we mentioned that 60% came from the new channels, so meaning 40% came from the <unk> channel.

Speaker Change: Uh huh.

Speaker Change: Interest rates implied.

Speaker Change: When you do the structure way of doing consortium. So that's why it's growing really fast again does your is going to be above 100 million can go to double off that in revenues. So it's growing really fast.

So we didn't see an improvement there yet, but we're really focused on that and we expect that we will capture the benefits in the near future.

Speaker Change: Okay, that's clear and the strategy of the S. One as well.

Speaker Change: Going to be a very important revenue stream for in a new vertical in the next years.

Speaker Change: Market.

Speaker Change: And if you can.

Speaker Change: Yeah. That's a good question, we have been as you sign it passed we have been investing a lot on the especially on the private bank.

Speaker Change: Repeat your first question.

Speaker Change: Yes of course.

Speaker Change: It's related to the outfits.

Speaker Change: That you guys decided to disclose.

Speaker Change: Business year, we hired a new CEO for the private bank says there.

Speaker Change: This quarter.

Speaker Change: So nature of their one to $1 eight sorry.

Speaker Change:

Speaker Change: Who had a lot of experience running this city bank private bank in the U S for U S clients. He brought a lot of you guys new leaders for the business, we had in the past years.

Speaker Change: How much of the phone.

Speaker Change: Service represents that took a lot because I understand that the take rates of this site.

Speaker Change: <unk> provides a low yields is so just to understand the breakdown of that.

Speaker Change: Zero or negative TV flow on that business and last year was a little bit.

Speaker Change: Consider that you have.

Speaker Change: Is slightly positive and Gs years is going to be a much better. So it's it's going but it's a long process because when you talk about private banking business. It's about building a franchisee are it's a long term investment in our long term business and we are.

Speaker Change: Yes for sure yes, the most important part of the strategy.

Speaker Change: Of having the fund administration business is to provide a full ecosystem sure customers, especially the institutional clients and private bank clients because of.

Speaker Change: That that's part of the investments we have been doing to grow on the private bank business why because imagine that you have and this excludes it fun discretionary fun here.

Speaker Change: Looking very carefully and investing a lot.

Speaker Change: But it will take some time make sure to bring results from from the private bank, but we are confident.

Speaker Change: Yeah.

Speaker Change: Okay. Thank you.

Speaker Change: <unk>.

Speaker Change: Yeah.

Speaker Change: XP has to rely on.

Speaker Change: Okay. Next question is from our own level of tools from UBS Lovell you May proceed.

Speaker Change: On providers to give us the N V and all day.

Speaker Change: The portfolio metrics and so on and everyday we had problems with that lease.

Speaker Change: Hi, guys. Thank.

Speaker Change: Thank you for taking the question here.

Speaker Change: Basically two questions.

Speaker Change: S L a and with.

Speaker Change: Our swap.

Speaker Change: The currency of the formations and so on so it's really hard to build a private bank business and institutional business without having funded demonstration. So that's the main reason why we build the business as we mentioned fund administration scan goes from.

Speaker Change: Very very sweet or because you started to provide the breakdown total honesty.

Speaker Change: So a very quick.

Speaker Change: I was just wondering.

Speaker Change: Much.

Speaker Change: Service represent the bulk of law school.

Speaker Change: But you guys disclosed that.

Speaker Change: Five bps to 2030 bps for Darren achieve alternative funds, maybe 70 bps.

Speaker Change: This quarter.

Speaker Change: Second question.

Speaker Change: Regarding our yard girdle strategy.

Speaker Change: After launching the banking city, a couple of years ago the check.

Speaker Change: But that's.

Speaker Change: Although our way.

Speaker Change: Checking accounts and then the credit card I think one of the main one.

Speaker Change: The most important part here is to provide a full service to our customers and the number we opened a number.

Speaker Change: Oh, sorry.

Speaker Change: On this slide if you check the number was 248.

Jos: Thanks Jos.

<unk> maintained.

Jos: And then number.

Jos: To close the duration of the whole industry and your political sorts and has been.

Speaker Change: <unk> billion Reais in in <unk>.

Speaker Change: That's the fund administration part.

Jos: So far in terms of.

Jos: <unk>. So if you could just elaborate a little bit more optical sorts withdrawal, especially thinking about the main goals.

Speaker Change: No.

Speaker Change: Okay.

Speaker Change: That's great.

Speaker Change: Thanks very much.

Jos: <unk> like the penetration of the Florida, the teachers and I think charters like lumber.

Tito: Okay. So next a question is from Tino La BARDA from Goldman Sachs. Tito you May proceed.

Jos: And you know that Costar suite.

Jos: <unk> 200 and <unk> this.

Speaker Change: Oh.

Jos: This quarter also.

Speaker Change: Alright, thanks good.

Jos: Well so.

Speaker Change: Good evening.

Speaker Change: Thank you Victor and thanks for the call taking my question.

Jos: During the call such represents and that number for the quarter. So.

Speaker Change: A follow up question just on the inflows, Yes, you mentioned in this slide you distribute around 50% to 60% of banks.

Jos: Any more.

Jos: Color on this would be very helpful and thank you very much yes.

Speaker Change: Thanks.

Jos: Yep.

Speaker Change: Funding is distributed through Expedia, just given some of the news flow with some of them they type banks.

Jos: Thank you all of you didn't get your first question. So I will start for the second one and then you you you repeat your first question.

Speaker Change: I guess I'll come out there in particular.

Speaker Change: Has that had any impact on your inflows in Europe.

Speaker Change: About consortium.

Speaker Change: It represents a very small revenue yet because the way we recognize the revenues basically the the upfront fee. It goes to pays commission. So we make zero when we sell a consortium then we have an agreement with.

Speaker Change: <unk> replaced.

Speaker Change: When bank with another bank funding just to make sure that they can.

Speaker Change: Not having any impact on inflows are for you are now and then my second question I guess following up a little bit on on revenue.

Speaker Change: Equity revenues.

Speaker Change: Guess, what what should be the most important driver is it just.

Speaker Change: The Jimmy it's Raiders and we receive a fee monthly by monthly because we we have a revenue share with them. So it's more like a recurring revenue during the term of the consortium. So it's a business that we have to.

Speaker Change: The equity markets doing better I mean, we have seen good performance. This year is it would be three volumes picking up is it more just focused on about suddenly or is it the rates coming down right just to get a sense of what should be we'd be looking for in terms of like what Ken.

Speaker Change: Equity revenues at some point in the future. Thank you.

Speaker Change: To build the portfolio should then capture the revenues we start building the portfolio last year I would say half of last year for some of the months you read produce more than a beaten a four month. Okay. So it's growing fast and the way we work the bra.

Speaker Change: Yep.

Speaker Change: If I got your first question. Your concern was about if a uncle monster was.

Speaker Change: Present that you've owned the the net new money. So it was not okay.

Speaker Change: And the revenues as we mentioned in the last calls it was less than 1% of the total revenues.

Speaker Change: To be honest before knowing the Broadridge you didn't like the per hundred because of everything you heard but once you start working with of course consortium.

Speaker Change: So it was not relevant we will see no impact on revenues or one that you money so no.

Speaker Change: No.

Speaker Change: Great. Thanks.

Speaker Change: I would say I structured crowded then it's a good approach we don't sell consortium as investments for sure of course.

Speaker Change: And so you're talking about ex revenues I think saw a conjunction of factors you need to see volume of speaking up and probably youre going to see volumes because you see the performance of faxes improve over the years. So I think those things come hand in hand, and the second is primarily offering for one listed funds as rates.

Speaker Change: But as I structured credit it can be very accretive to juror clients. We have been doing a lot for private bank clients are even for our owners of big companies and so on because you have very cheap.

Speaker Change: Real estate funds. That's also importance factor inside of the actual lines and you're going to need to see the market improving a little bit and those funds trading above above.

Speaker Change: Uh huh.

Speaker Change: Interest rates implied Oh, when you do these structured way of doing consortium. So that's why it's growing really fast again jazeera is gonna be above 100 million can go to double off debt in revenues. So it's growing.

Speaker Change: You should be value and I think that is it.

Speaker Change: Yeah, Okay, Okay, great. Thanks, a lot for Thanksgiving.

Speaker Change: Okay. Thank you.

Speaker Change: For participating over our earnings call we are.

Speaker Change: It really fast it's going to be a very important revenue stream for any new verticals in in the next years.

Speaker Change: And an hour now I'm gonna overcall. So it would be available to answer further questions. Just look for us for bar team. Thank you so much and we keep in touch until the next quarter.

Speaker Change: And if you can.

Speaker Change: Repeat your first question, yes of course.

Speaker Change: It's related to go to the outfits.

Speaker Change: Okay.

Speaker Change: That you guys started to disclose this.

Speaker Change: Okay.

Speaker Change: This quarter.

Speaker Change: The nature of their one to $1 eight sorry.

How much of the.

Fund services.

Speaker Change: Represents that took a lot because I understand that the take rate of these type of Austin provides a low yield is so just to understand the breakdown of that.

Speaker Change: Under custody that you have.

Speaker Change: Yeah for sure Yeah. The most important part of the strategy of having the fund administration business is to provide a full ecosystem sure customers, especially the institutional clients and private bank clients because that that's part of the investments we have been doing too.

Speaker Change: Grow on the private banking business, why because imagine that you have and this excludes it fun discretionary fun here.

Speaker Change: And I.

Speaker Change: XP has to rely on.

Speaker Change: On providers to give us the N V and all day.

Speaker Change: The portfolio matrix and so on and everyday we had problems with that leaves the.

Speaker Change: S L a and with the currency of the formations and so on so it's really hard to build a private bank business and institutional business without having fund administration. So that's the main reason why we build the business as we mention fund administration scan goals from.

Speaker Change: Five bps to 2030 bps for out there and achieve alternate your funds maybe 70 bps.

Speaker Change: But that's a little our way.

Speaker Change: But the most important part here is to provide a full service to <unk> customers and the number we opened the number on the slide if you check their the number was.

Speaker Change: 248, a billion reais in in a way that's the fund administration part.

Speaker Change: That's the number one search okay.

Speaker Change: That's great.

Speaker Change: Thank you very much.

Speaker Change: Okay. So a Mexican question is from a teetotaller BARDA from Goldman Sachs. Tito you May proceed.

Tito: Alright. Thanks.

Speaker Change: Good evening.

Speaker Change: And Victor and thanks for taking my question.

Speaker Change: A follow up question just on the inflows, Yes, you mentioned in this slide you distribute around 50% to 60% of.

Nick Clegg: Nick Clegg Bank.

Speaker Change: Funding is distributed through XP and just given some of the news flow.

Nick Clegg: With some of the new type banks.

Speaker Change: I guess I'll come out there in particular.

Speaker Change: It had any impact on your inflows.

Speaker Change: Able to replace.

Speaker Change: When bank with another bank funding just to make sure that that's not having any impact on inflows are for you for now and then my second question I guess following up a little bit on on revenue, particularly equity revenues.

Speaker Change: I guess, what should be the most important driver is it.

Speaker Change: The equity market doing better I mean, we have seen good performance. This year it could be three volumes picking up is it more just focused on alibaba suddenly or is it the rates coming down right just to get a sense of what should be we'd be looking for in terms of like what can boost those equity revenue at some point in the future. Thank you.

Speaker Change: Yep.

Speaker Change: If I got your first question. Your concern was about if Michael Monster was represent that you've owned the than net new money. So it was not okay. So not even the revenues as we mentioned in the last calls.

Speaker Change: It was less than 1% of the total revenues.

Speaker Change: So it was not relevant will see no impact on revenues or on that new money. So no.

Speaker Change: No impact.

Speaker Change: Great. Thanks.

Speaker Change: And so you're talking about ex revenues I think saw a conjunction of factors you need to see volumes picking up.

Speaker Change: And probably youre going to see volumes because you see the performance of faxes improve over the year. So I think those things come hand in hand, and the second is primarily offering for one listed funds as rates are real estate funds and that's also importance factoring side of the extra lines and you're going to need to see the market's improving a little bit.

Speaker Change: Funding is trading above above.

Speaker Change: The issue.

Speaker Change: Issue value.

Speaker Change: I think that is it.

Speaker Change: Yeah, Okay, Okay, great. Thanks, a lot for Thanksgiving.

Speaker Change: Okay. Thank you for.

Speaker Change: For participating over our earnings call we are.

Speaker Change: And an hour now I'm Gonna look also will be available to answer further questions. Just look for us for IR team. Thank you. So much I know, we keep in touch until the next quarter.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Goodbye.