Brazil's XP posts 16% income bump to reach $213 mln in fourth quarter

Reuters
19 Feb
UPDATE 1-Brazil's XP posts 16% income bump to reach $213 mln in fourth quarter

Adds details from earnings report

SAO PAULO, Feb 18 (Reuters) - Brazilian brokerage and investment platform XP reported a 16% rise in its fourth-quarter adjusted net income, compared to the year-ago period, totaling 1.21 billion reais ($212.86 million), according to a company filing released on Tuesday.

WHY IT'S IMPORTANT

U.S.-listed XP XP.O is one of the largest brokers in Brazil. It also operates as an investment firm and as a financial adviser to its clients.

BY THE NUMBERS

XP reported net revenue of 4.49 billion reais in the fourth quarter, 11% higher than the same period a year earlier and slightly above the 4.45 billion reais expected by analysts.

Its earnings before taxes (EBT) came in at 1.29 billion reais, up 30% year-on-year.

Last year, XP saw revenues grow by 15%, reaching $18 billion reais, while its adjusted profit grew by 17% to total $4.5 billion reais.

KEY QUOTES

"We believe that next year will provide another opportunity to demonstrate the counter-cyclical strength of our business

model," said XP in a statement, citing higher interest rates.

"Additionally, we anticipate another strong year for fixed

income, along with further market share expansion in strategic segments such as DCM," the statement added, referring to debt capital markets.

(Reporting by Paula Arend Laier and Isabel Teles; Editing by David Alire Garcia)

((Isabel.Teles@thomsonreuters.com;))

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