XP Inc. Aktie

Good evening, everyone. I'm Andre Parize, Investor Relations Officer at XP, and thank you for joining us, and welcome to our First Quarter 2026 Earnings Call. Today's presentation will be delivered by our CEO, Thiago Maffra; and our CFO, Victor Mansur.

And right after the presentation, they will be both available for the Q&A session. [Operator Instructions] Before we begin, please see the legal disclaimer on Page 2 of today's presentation for information regarding forward-looking statements.

The presentation is available for download on our Investor Relations website with further details in the SEC Filings section of our IR website. To begin the presentation, I will now turn it over to Thiago Maffra. Good evening, Maffra.

Thank you, Andre. Good evening, everyone, and thank you for joining us for the first quarter 2026 earnings call. Let's begin by reviewing the key highlights of the quarter.

Client assets combining AUM and AUA reached BRL 2.1 trillion, which represents a 21% year-over-year growth. We ended the period with 18,300 advisers, up 1% year-over-year, while our active client base totaled BRL 4.8 million, a 2% year-over-year increase.

This quarter, gross revenues came in at BRL 4.9 billion, up 8% year-over-year. EBT also grew 8% to BRL 1.4 billion and net income reached BRL 1.3 billion, rising 7% year-over-year. On profitability, our ROE achieved 21.7% for the quarter.

Our capital ratio remained at a comfortable 20.7%. More importantly, these results reflect our ability to grow our business while maintaining disciplined capital and risk management. I would also like to highlight that today, we are announcing a new buyback program of BRL 1 billion. Once as of now, we have executed almost half of the currently BRL 1 billion open program.

Additionally, we are also declaring BRL 500 million in dividends to be paid in June. Victor will provide more details in his presentation. Now moving to our diluted EPS. It grew 9% year-over-year, outpacing net income growth. We entered 2026 with solid momentum, largely driven by the global macro environment as weaker U.S. dollar and a rotation toward non-U.S. assets boosted emerging markets inflows, which helped improve Brazil market dynamics and enabled us to sustain the growth momentum built in the second half of last year.

However, as you know, the environment changed in March. Increased global volatility pressured local market sentiment, while domestic credit spreads widened at the same time, driven by technical factors. These developments were external to our underlying performance. Excluding these external factors, we would have delivered even stronger results, achieving double-digit growth.

We saw this credit spread trend continue into April. However, we now see a better balance between buyers and sellers in the market, leading spreads in a more stable phase. Despite this widening in April, we do not expect an impact on the same magnitude as we saw in the first quarter. Said that, we still see our business growing double digits this year.

Additionally, we are now seeing the early stage of an interest rate easing cycle. While the pace of easing is expected to be more gradual than previously anticipated, rates are still at high levels. And despite global uncertainties, there is still room for further cuts. This ongoing easy cycle, even if it's lower, supports our business momentum as this positively impacts investors' risk appetite and turnover velocity.

The short-term volatility we mentioned earlier may have briefly slowed our growth momentum towards the end of this quarter. Even so, we are confident we can return to double-digit growth supported by stronger execution across key verticals and a more diversified revenue base. Our unique scale and differentiated retail investments platform provides a competitive edge unmatched by any other player in the market.

In addition, we now operate within a much broader ecosystem and our corporate segment has definitely reached new standards that extend beyond pure investment banking. Together, these strengths helped partially offset the impact of higher volatility referenced earlier, reinforcing retail investments and corporate as important drivers of growth and diversification.

Finally, the powerful combination of service excellence, strong client relationships and financial performance, together with a sales force that has aligned incentives and robust capabilities corroborates our conviction that disciplined execution backed by governance and technology will drive our performance. Ultimately, our ability to execute this strategy is what will enable us to achieve our long-term objectives in all our divisions regardless of the current macroeconomic environment.

Now moving to the next slide. In the first quarter of 2026, our total client assets combined with assets under management from our asset management business and AUA from our fund administration business totaled over BRL 2.1 trillion, representing a 21% growth year-over-year. We are strategically positioned for our next growth phase and remain focused on our ambition to become Brazil's leader in investments by 2033.

To achieve that goal, despite external uncertainties, we are executing a strategy built to consistently deliver double-digit growth. We are also constantly investing in our ecosystem and advisers in strengthening what is already Brazil's largest and most sophisticated investment platform. We are the only player that can lead the democratization of access to first-class financial service, supporting clients with a holistic approach built on financial and wealth planning, delivered at scale and with strong governance.

The market has recognized these capabilities as we were recently named for the eighth consecutive year, the best financial advisory platform. With that, let's move to the next slide. On the left-hand side of the slide, you can see how net new money related to client assets performed at the start of 2026. In Q1, we posted BRL 19 billion of organic retail net new money, while corporate and institutional came in at negative BRL 4 billion, bringing the total for the quarter to approximately BRL 14 billion.

So we once again reached our guidance of around BRL 20 billion in retail net new money per quarter. During the first quarter of the year, clients received FGC-related inflows. It's important to highlight that these payments were not included in the net new money calculation as the related adjustments were made exclusively to our client asset base.

As you can see on the right-hand side of the slide, the high retention levels of roughly 80% following this FGC-related inflows reflect the consistent execution of our advisers and the strength of our brand.

Related to that, and as we mentioned last quarter, our NPS was impacted by one-off effects related to credit events and Banco Master. They temporarily affected a specific group of clients and consequently, our overall NPS. First quarter's NPS is still impacted by them due to a calculation methodology using moving average.

However, we are already on a consistent recovery path and more recent indicators were positive with NPS coming around 70. We expect to return to historical levels by year-end, demonstrating the strength of our brand and the trust clients place in our platform.

Lastly, I would like to take a closer look at our retail strategy and share a bit more detail about this area of the business. Investments, our core franchise remains solid, supported by healthy underlying trends and continue to serve as a key driver of our results.

We are further strengthening what we view as the market's best and most comprehensive product platform while also improving adviser productivity. This progress is underpinned by excellence in relationship management and a more intelligent, disciplined allocation process. Following our refined client segmentation, we developed tailored servicing models for each segment, ensuring our approach is aligned with distinct needs for each client group. In retail clients, we have developed a new value proposition grounded in goal-based investing and managed portfolios. With that, we are already seeing improvements in this segment, supported by margin accretive dynamics.

Our strategy is to extend this approach to other client layers using technology, process and governance as key enablers to scale in a profitable way. In high income, our core segment, we delivered a distinctive value proposition, having been true pioneers in democratizing access to financial and wealth planning in Brazil.

In addition to our differentiated advisory model, we were the first player to offer a truly agnostic servicing model, enabling us to address this slated client demand. We also continue to expand our sales channels, invest in new products and service and enhance the client journey by providing the best tools available in the market. In private banking, we continue to gain market share by enhancing our offering and leveraging our broader ecosystem to address clients' needs more comprehensively.

We have evolved into a full-service wealth manager, serving clients, both individual and corporate needs, supported by a robust product platform and a highly skilled team. As our private banking franchise matures, we are becoming increasingly well positioned to compete with larger players in this segment. In addition, our private segment has becoming a fundamental part of our ecosystem, serving as an important source of cross-selling opportunities and referrals for our other businesses.

Among the 3 growth drivers that directly impact our business, take rates are the only variable that we do not control 100% as product mix and asset turnover are driven by investor sentiment and market momentum.

On the other hand, our other growth drivers are fully within our control and support our long-term journey. We have also partially offset this take rate effect through revenue diversification, growth in advisory, fee-based models and expansion into new verticals.

Before I hand over to Victor, I want to quickly comment on the 6-K we just released. Today, we are announcing that Gustavo Alejo has been appointed as XP's new CFO. This is part of a thoughtful and well-planned transition, marking a new chapter for XP as the bank continues to grow within our ecosystem.

Alejo is a seasoned executive with a remarkable track record and his expertise will be instrumental to our expansion strategy. We are truly pleased to welcome him to our team. I also want to take this moment to express my gratitude to Victor.

Over more than a decade, he has been a central figure in XP's journey. His dedication and contributions have been fundamental to the growth and development of this company. Victor will remain part of XP ecosystem, supporting us in new ventures ahead.

I sincerely thank him for everything he has built here. and I wish him every success in what comes next. Thank you, Victor.

I would like to thank Maffra, Benchimol, all our partners and shareholders for the trust they deposit in me throughout all those years. I have been at the company for almost 15 years and time passed quickly when we are building something that matters. That's what we have done at XP, changing the way Brazilian invested and related to money.

After almost 15 years, I decided to step down, but we will continue as a partner, member of Board of several investments in our portfolio and contributing to XP ecosystem in new ways.

This transition was careful planet if XP long-term vision always guiding our decisions. I would also like to thank the people who made this journey possible, especially all the incredible team I got to work very closely during my tenure as CFO. To each of you, thank you. It's been a genuine honor. I'm sure that the best is still ahead.

Thanks. And now let's review our financial performance. I would like to begin by noting that in this quarter, we are introducing our new managerial P&L and revenue breakdown that more accurately reflect how we operate the company. Under this framework, we are organizing our business lines into 2 main segments: retail and wholesale.

Along with this change, the institutional business has been incorporated into the wholesale division, aligning the reporting structure with the profile of clients we serve within this segment. Additionally, accompanying the final phase of restructuring, the other revenue line has become less relevant over the years and ceased to exist, being incorporated in the net interest margin across our business lines.

If this, we provide a clearer and more consistent view of our operational structure and revenue generation. As a part of the same process, our proprietary friends were transferred to the bank structuring. Consequently, we will no longer present if you hold tax adjustments. Instead, we now report our managerial results if other tax equivalent reclassifications, consistent with the approach already adopted by other market players.

This change improves the understanding of our results and aligns the market views more closely with the way we manage the company. All figures showed throughout this presentation have been retrospectively adjusted to preserve comparability across periods.

Finally, it's important to note that these new adjustments are IFRS compliant with no changes to our gross revenue, net income or capital metrics. Given that context, let's now move to the quarter results. Total gross revenue in the first quarter reached BRL 4.9 billion, up 8% year-over-year and down 7% quarter-over-quarter. The year growth was driven by [indiscernible] , retail new verticals and other retail with new ventures and floating expanding at a rapid pace.

The Wholesale Banking division also delivered growth year-over-year. Now let's move to retail revenue. Retail revenue totaled BRL 3.8 billion in the quarter, representing a 10% growth year-over-year and a 2% decline quarter-over-quarter, reflecting the impact in corporate credit in Brazil already explained before.

Building on the market momentum that began in the second half of 2025, we saw increase in equity volumes, driven by higher ADTV in equities and futures. Consequently, equity revenues increased 13% quarter-over-quarter and 22% when compared to the same period of last year, reaching almost BRL 1.2 billion.

As a result, equity revenue increased its shares of total gross revenue breakdown, both year-over-year and versus the prior quarter, reaching 31% in the first quarter in 2026.

Also, retail benefited from strong contributions from float and new verticals, which are reported in the other retail line and gaining representativeness during the quarter. Now let's move on to the next slide, where we'll talk through how our wholesale banking is evolving. As we mentioned earlier, we now include our institutional business in the wholesale segment. Taken together, these 3 business lines grew 26% year-over-year.

This same market figures showed a reduced volume of taxed and fixed income offers in the first quarter of '26. If that, Issuer Services revenues were down following the same rationale of retail fixed income.

On Corporate segment, we posted another solid result, reaching almost BRL 500 million in revenues. Due to high volatility, we were able to serve our clients with more trading solutions with derivatives and FX boosting revenues. This reinforced the consolidation of franchise, which developed meaningful through the years, become an important part of ecosystem and an important driver in terms of growth and diversification.

Finally, our institutional business grew both year-over-year and quarter-over-quarter. This segment, the same as retail excess benefited from higher trading volumes during the quarter. Now let's shift our focus to SG&A and efficiency ratios. As mentioned earlier, we are introducing a new disclosure methodology, which is better aligned to market peers and increase our results comparability.

We can find the reconciliation and additional details about the new methodology in the appendix. If that, our SG&A totaled BRL 1.6 billion in this quarter, increased 14% year-over-year and declining 6% quarter-over-quarter. On the right-hand side of this slide, our last 12 months efficiency ratio was 34.6%, representing a year-over-year increase of 100 basis points.

The short-term increase was caused by market events that temporarily impacted our revenues in the first quarter, as previously explained. As commented before, we expect to see a normalization of the ratios throughout the year, ending 2026 is a flattish number when compared to 2025.

Move on to EBT now. Our adjusted EBT totaled BRL 1.4 billion in the first quarter, up 8% year-over-year and down 14% quarter-over-quarter. The adjusted EBT margin was 30%, stable versus the prior year and lower quarter-over-quarter.

As mentioned in the previous slide, market events impacted revenues and therefore, our EBITDA and EBT margin in the first quarter of 2026. On the next slide, we will see our adjusted net income. Adjusted net income in the first quarter totaled BRL 1.3 billion, representing a 7% increase year-over-year and remaining roughly stable sequentially. Net margins were 27.8% in 1Q ' 26, down 30 bps year-over-year and 122 bps higher sequentially. Let's move on the next slide to talk about capital management.

I will start by discussing capital returns. During the first quarter of the year, we continued the execution of our share buyback program. And as of now, we have executed almost half of it. As Maffra mentioned earlier, today, we announced a new buyback program of BRL 1 billion and also the payment of BRL 500 million in dividends to be paid on June 18.

Combining the dividends and the 2 buyback programs, we get to almost BRL 2.5 billion in capital distribution already announced in 2026. Now let's move on the second part of our capital management strategy on the next slide. Our adjusted diluted EPS increased approximately 9% year-over-year, reflecting the execution of our share buyback program.

This allows our EPS to expand at a faster pace than net income. On the right-hand side of the slide, you can see our adjusted annualized ROTE and ROAE. Given our higher BIS ratio than last quarter, both metrics are lower this quarter than the last quarter.

If we were operating the business at 17.5% BIS ratio, which is the midpoint of our guidance, our ROTE and ROAE would have been around 30% and 24%, respectively. Let's move on to the next slide to give some additional details on our capital management.

I would like to turn to our capital ratio and our risk-weighted assets. Before going through the numbers, I want to highlight that even in a quarter marked by elevated volatility across both local and international markets, our disciplined risk management approach translated into a well-controlled risk profile, lower VAR and flattish RWA.

Our VAR declined sequentially, closing the quarter at 14 basis points, 3 basis points lower than prior quarter. Our RWA ended the first quarter at BRL 122 billion, up 3% quarter-over-quarter. Credit RWA remained essentially stable. Market RWA grew just 2% in the quarter, both expand at a lower pace than our revenues.

And the main trigger of expansion of risk was the operational risk-weighted assets. Despite the market dynamics we mentioned, our risk is under control, our balance sheet is sound, and we expect that to remain the case throughout the year, consistent with what we have communicated to the market.

Finally, we closed the quarter with a BIS ratio of 20.7%, which is above our guidance of BIS ratio of 16% to 19% by the end of the year. As communicated last quarter, we entered 2026 with a comfortable capital position that give us flexibility to navigate different scenarios and remain well positioned in any potential volatility coming from internal or external markets throughout the year, even though we know this is a higher capitalization level than the company requires to operate, and we are committed to reach our guidance by the end of the year. And with that, we will now move to the Q&A session.

Okay. Now we're going to start the Q&A. The first question is from Tito Labarta, Goldman Sachs.

Victor, good luck on your future endeavors. Thanks for all the help over the last few years. So maybe a couple of questions. Maybe just one, I guess, can you give a little bit more color, Victor, Maffra, on the decision to step down and the new incoming CFO, just to understand a little bit more some of the rationale behind that.

And then second question, you talked a little bit about the widening of the credit spreads. But just to understand, do you expect that to recover maybe completely in 2Q? Would that take a little bit longer? Just to think about how that could impact your revenues for not just 2Q, but also for the rest of the year?

Thank you for the question, Tito. The first question about why -- what's the reason behind the move of Victor is a transition that we have been discussing for, I would say, a few months or like a half year to do this transition to find someone with more background in banking and the banking products that we have been developing for both individuals and capital markets on the wholesale bank.

So it was a well-planned transition, and you guys know the change that happened at Santander, and there was an opportunity to bring Gustavo Alejo, who has more than 30 years of background in corporate, in credit, on [indiscernible] and as a CFO.

So it was an opportunity to bring someone with the background that we were looking for. So Victor is an important partner of the company. He has been with us for 15 years. He will continue to be partner of the company and will help us on new ventures on the company in the future.

About the second question, if we didn't have any credit loss because it's mainly tradable fixed income that we have mark-to-market on the positions. You guys know very well what happened on the credit market since the beginning of the war.

In March, there was a widening on the credit spreads even for AAA names, AA names. So we lost some money on mark-to-market. As you mentioned, we didn't realize most of this loss. We don't expect the market to recover on Q2 because if you take a look on what happened in April. There was also a widening on the spreads, much smaller than March than the first quarter. We do not expect any impact on Q2 because our ecosystem and the other business line will compensate even more than what we lost in April.

In May, we saw the credit spreads stabilizing, but we don't expect them to start closing this quarter. But let's see what happened. But for the year, we don't expect any further impacts on top line growth. That's why we are confident that we can deliver a double-digit growth for the year.

And if you take a look on what happened, just one-off on widening of spreads on Q1, if we take that off, we would probably be at low teens, very close to what we have planned because all the business lines beside the credit spread, the widening on credit spreads and the primary market on GCM, besides these 2 business lines, all the business they are like in line with what we have planned for the year. So we are confident that we can resume higher growth on Q2.

Great. No, that's helpful, Maffra. If I can, just one quick follow-up on the management transition, I guess. And I know you've been talking more about capital ratios and you have excess capital to return you have the banking license. But I think investors still view you a little bit more as an investment platform.

I mean, should we begin to think of you more as a bank? I mean, does this indicate any major change in strategy that we should kind of take into account? Or is it just you kind of need somebody to -- given the capital requirements and things like that? Just to understand a little bit how that plays into the strategy to some extent.

We don't have any change on our strategy. So it's the same thing we have been talking for the past 3 years. So no major change, no big change. It's more of the same looking forward. So no change on the strategy.

Okay. Next question is from Thiago Batista, UBS.

So first of all...

Yes, we can.

I have 2 questions, to be honest. The first one, when I look for the capital distribution, historically, you paid half in dividends and half as buyback. So how do you think on the future distribution? How do you think between these 2 types of distribution, buyback and dividends? And the second one, on the DCM side, I know that there's a lot of moving parts here.

So yield curve increased a lot, spreads are higher than average, but we also are seeing inflows in the fixed income funds. So how do you think about the DCM business? I know that it's very tough view, very tough to estimate the performance of this business. But how do you guys are seeing the DCM business until the end of the year?

I'm going to take the first one here and the second will Maffra. First, in capital distribution. I think we are in the middle of the year. We all can do the math on how much cash we need to devolve to shareholders should be inside our guidance.

I think for now, more than half than what announced, actually, BRL 2 billion will be is buybacks and BRL 500 million are dividends.

I think for our mix of shareholders and the price of the stock now, that's the best mix, and we are going to keep this pace over the year to get the end of the guidance. And exactly what would be the combination between one and the other depend on the stock level and the market environment and then we go. But for now, more than 75% is buybacks.

Yes. On the second part of your question, as you mentioned, there are a lot of moving parts here. But as I already mentioned, we saw the widening credit spreads continuing in April in a smaller size than March.

In May, we start to see a more stable market, okay? So we start to see some buyers in the market. But if you look the net flow of the credit funds, there are still redemptions, so they're still negative. But on the other side, they are all-time high in cash, okay? So we believe if the market -- the global market stabilize, we believe we'll see the beginning -- maybe the beginning of the spread compression on the next months.

So that's the view we have right now looking at the numbers and the flows, okay? We are starting to see retail clients buying corporate bonds. That's something that didn't happen since, I would say, January or February. So we have early signs of a more stable market, but too early to say if we will see compression. I don't expect compression in Q2, okay? So it's more for Q3 or Q4.

Okay. Next question is from Eduardo Rosman, BTG.

Two questions here. The first is on -- it's a follow-up on the top line, right? I think Maffra mentioned that you guys are still confident about growing double digits.

But in case things are a little bit slower, can you do anything else on the cost side to compensate? So that would be the question number one. And question number two, can you give us an update on the movement to the fixed base fee? How is that evolving? How IFAs are reacting and embracing the change?

Rosman, thank you for your question. I think the first one here. The compression in efficiency ratio in the first quarter was due to the softness in revenues that Maffra already commented in the fixed income and issued services.

I felt that would be flattish year-over-year. And I think over the year, if the scenario start deteriorating, we are committed to not lose efficiency because of costs. So there is margin. Of course, the initial plan is to keep our investments. But if needed, we are committing to deliver a flattish efficiency ratio over the year and keep the pace of the revenue.

Yes. On your second question, for sure, you have seen that we are doing advertisement, marketing campaigns about the multiple models that we have today.

So we are basically the only house to offer to our customers all different models to serve our clients and the way they pay for that, okay? So today, I would say, about 25% of our total individual AUC is under flat fees or fee-based model. So it's growing. We believe in 3, 4 years, it's probably be half of the AUC when you look consulting model or fee-based model. So these models, they are growing, and we expect them like to reach 50%, I would say, in the next 3, 4, 5 years.

Okay. Next question is from Jorge Kuri from Morgan Stanley.

Okay. So we'll go to next one. So the next one is Eric Ito from Bradesco BBE.

Thank you for the partnership and wish you all the best for the future. I have 2 on my side as well. First is a follow-up on the impact from the yield curve.

So if you could give us just to quantify in the quarter, how much was the impact here? And if we could also give us some color on any potential one-off impacts from the FGC payments or allocation on this product? And if you could also help us understand which products are the clients putting money into with the reimbursement from FGC? Just to help us understand what we can expect for the fixed income take rate going forward?

And then my second one is on the warehouse strategy here. If you could give us some color and recall what's the average duration that the credit stays in your warehouse? How should we think about distribution versus retention going forward? Any update or change in the strategy here?

Eric, thanks for your question. First of all, about the interest rate level. I think despite the business impacts in terms of macro tailwind and product allocation, when you look at the effects in the company, it's actually better for several business lines are floating return or on capital and then you go, as we comment, floating inside the retail other revenues was one of the drivers of growth inside of retail.

About the allocation of GC premium, you're going to see that in the prepayments inside of our balance sheet. And just important to remember that there is no P&L effect in that. Okay. The last part about the -- where the clients are allocating money. I think at the beginning of the year, we talked a lot about the positive tailwind we had in Brazil and overall markets.

And I think if the war and the easing cycle coming from 300 to 70 basis points, clients move back to fixed income and short-term fixed income. So I think we're basically at the same case we were in the second semester of 2025, almost all of the cash goes to short-term fixed income.

Duration of the warehouse portfolio, I think that was the last question. It's the same. It's hopefully between 3 to 6 months. Of course, this is widening in the credit spread, may change a little bit the dynamics, but that is our base case, and we should keep this way over the year.

Next question is from Arnon Shirazi from Citi.

Last quarter, a question regarding the NPS. We saw that it was low in the fourth Q, now decreasing in the first quarter. We know that it's tracking in the last 6 months, but still low at 61%. I want to get a view on this on the recent trends and if you expect to be better in the next months or quarters.

Yes, that's a good question. As we use moving average here, the lowest number was in December and early January.

So Q1 was the worst moving average. On Q2, you see the number improving. And if we look at the number that we are right now, it's already at 70%, okay? So 70%. So we are almost back on the current view.

But again, as we report a moving average, you see Q2 higher than Q1, but not at 70% yet. So probably on Q3, you see 70% plus and back to normal levels.

Has come to an end. It will be more than a pleasure to answer any further questions. Just look for contact the IR team, and see you in the next quarter. Thank you so much for your participation. Bye.

Good evening, everyone. I'm Andre Parize, Investor Relations Officer at XP. Thank you for joining us. It's a pleasure to be here with you today. On behalf of the company, I would like to welcome you to our fourth quarter 25 earnings call.

Today's presentation will be delivered by our CEO, Thiago Maffra; and our CFO, Victor Mansur, both will be available for the Q&A session immediately afterwards. If you would like to ask a question during the Q&A, please use the raise hand feature on Zoom. All questions will be answered in the order they are received. Simultaneous translation into Portuguese available during this conference call. If you would like to activate it, please click the bottom below. Before we begin, please see the legal disclaimer on Page 2 of today's presentation for additional information on forward-looking statements. The presentation is available for download on our Investor Relations website, and more information is also available in the SEC Filings section of our IR website.

To begin the presentation, I'll hand it over to Thiago Maffra. Good evening, Maffra.

Thank you, Andre. Good evening, everyone, and thank you all for joining us today for our fourth quarter earnings call. Before diving into the numbers, I would like to comment on the recent shareholder change we have just announced in the 6-K. As announced, myself and Jose Berenguer, CEO of XP's Wholesale Bank will become holders of XP Control LLC, alongside Guilherme Benchimal, who is still the main controller shareholder; and Fabricio Almeida and Guilherme Santana. This is part of the ongoing process of strengthening corporate governance, long-term alignment and the company's management model.

Now to the results. In 2025, we continue investing in key areas of our business. We enhanced our core processes, scaled financial planning, deepen our segmentation strategy and launched new products. We also celebrate the fifth anniversary of our wholesale bank, an important milestone that demonstrates the strength and integration of the ecosystem we have built. This platform drives the evolution of service for our corporate and institutional clients in addition to create cross-selling opportunities across our ecosystem. Despite its relative short history, we have established a top-tier franchise that keeps growing in a consistent manner and contributing to our results.

Alongside these structure advancements, we continued our agenda of better serving our clients. We launched a new campaign focused on empowering clients through the power of choice. We are the first investment firm in Brazil to offer transactional fee-based and RIA models. We believe there is no single deal model. Rather, different models are best suited to different client profiles. By having these different models, complete product range, focus on excellence and the most qualified team of advisers as our main advantage, we became the largest investment network in Brazil.

Today, we oversee approximately BRL 2.1 trillion across AUC, AUM and AUA, supported by a nationwide network of around 18,000 advisers serving approximately 5 million clients. Our presence spends almost 800 investment centers across Brazilian states and the Federal District, combining scale with local reach. We ranked #1 in traded volume on and process nearly 50,000 fixed income transactions per day. We had some challenges last year, but by strengthening our business fundamentals, we have positioned ourselves to capture future opportunities. With a robust platform, disciplined execution and a fully committed team, we are starting 2026 ready to grow, whatever the market scenario.

On the next slide, we will explore how our ecosystem transformed over time and how that transformation brought us to where we are today. This slide captures where XP stands today. We are entering a more mature phase while we're retaining the disruptive DNA that has always defined our journey. Our evolution has happened in waves. The first wave was focused on democratizing access to financial products that until then were not largely offered by incumbent banks like equities and third-party funds. The education of individual investors was an important pillar in the first wave. And through that, we fostered the development of the investment advisory industry in Brazil.

In the second wave, we scale, broaden our distribution and build a comprehensive ecosystem, consolidating XP as one-stop shop financial platform. Now we are advancing to a third wave, a move that democratize the wealth services model. We are taking a holistic and agnostic approach to give clients true freedom of choice. We have always put clients power of choice at the heart of our strategy. We remain committed to leading the market forward, guided by our long-standing belief that we play a key role in society by continuously improving the way people invest, manage and think about their money. Our ultimate goal is to help clients achieve their dreams.

Now moving on to the next slide. Our transformative track record has brought us to where we are today. We have built a distinctive business that delivers profitability while maintaining a conservative capital structure, giving us the option to operate in a broad range of scenarios. We posted gross revenues of BRL 19.5 billion in 2025, up 8% year-over-year. As I mentioned last quarter, we expected double-digit growth on the second half of 2025, and we managed to achieve that level. In the second half, we grew slightly more than 10% versus second half of 2024, showing that the initiatives we implemented during the year and earlier are responding positively.

Year-over-year, EBT grew 10%, reaching BRL 5.5 billion. Adjusted net income in fourth quarter '25 was BRL 1.3 billion, and BRL 5.2 billion for the full year, representing a 15% expansion year-over-year. Regarding balance sheet and profitability, we achieved 23.9% ROE in 2025, representing a 94 basis point expansion versus 2024. Our year-end BIS ratio was 20.4% in a very comfortable level even after the payment of BRL 500 million in dividends and BRL 1.9 billion in share buybacks executed in 2025. Finally, our adjusted diluted EPS increased by 18% during the year.

Now that we covered our platform, our disruptive profile and the highlights of the financial results, I would like to go in more detail on our business strategy. We have spent the past 2 years developing our service excellence agenda. At first, we focus on building the foundations, systems, incentive models and sales force training. In 2025, we took the next step and began to scale this model. At the same time, we refined our client segmentation, offering tailored servicing models and value propositions for each segment. supported by multiple pricing structures.

It's worth mentioning that today, approximately 23% of our retail AUC is already under a fee-based model. We continue to adopt this approach, recognizing that there is no single best model, but rather the most appropriate model for each client. We have also developed different ways to track adherence to this way of serving.

One of the most important tools we have is the XP Service Model Index. It incorporates metrics such as financial and wealth planning, quality of client relationships and adherence to recommended asset allocation. Initial results are tangible. Clients above the index target show meaningfully better financial outcomes with 21% higher revenues and more than double the net asset inflows. As we roll out this agenda, different KPIs will move accordingly. Currently, clients above the index target make up 39% of our AUC, and we expect this number to continue expanding. We will cover this topic in more detail on the next slide.

Two important pillars of our foundation are financial and wealth planning and our export allocation model. We support our clients with a holistic approach based on financial and wealth planning. We help clients navigate complex and highly personal decisions with large and confidence. Our work goes beyond investments encompassing succession, state and tax planning always tailored to each client's objectives, family structure and long-term vision. We offer financial planning for our clients with at least BRL 300,000 in AUC and comprehensive wealth planning for clients with invested assets above BRL 3 million.

We were truly pioneers on democratizing access to services in Brazil. At a time when they were largely restricted to a small group of very wealthy individuals. Additionally, we developed in-house technology that allow us to go beyond and scale the offering of financial planning while maintaining governance and quality. And this is something no other player in Brazil can do.

Our second pillar is the export allocation model, which is a proprietary tool based on algorithm intelligent design to propose a smart asset allocation. The use of this technology goes hand-in-hand with our advisory capabilities and considers multiple variables such as available products, liquidity client profile, the structure of the current portfolio, among others. Through it, we combine the best of both human and technological capabilities, data intelligence, complemented by the depth of human knowledge and a strong client relationships built by our advisers.

To track the development of our agenda, we measure how usage of these tools evolves over time. Currently, 21% and 12% of targeted clients track their financial and wealth planning with an adviser. Additionally, adherence to the expert allocation tool has been rapidly growing across all segments and December 2025 was a record month for location using this tool. Besides the fact that we are democratizing the service, we can also see on the right-hand side of this slide, we are delivering positive performance to clients.

Looking at the number of advised clients portfolios, 39% achieved returns of more than 110% of the SELIC rate, 23% had returns between 100 million and 110 and 28% obtain returns between of the SELIC rate. This means that 90% of the advised client base is registering returns of 90% and higher than the SELIC rate. Given that technology is a key component of our business, we will explore in greater detail on the next slide.

Technology is a core pillar of XP's growth strategy. Our proprietary platforms and AI-driven capabilities enable scalable expansion while maintaining strong governance and improving adviser productivity. We believe in what we call an augmented adviser, which is an adviser whose capabilities are enhanced by AI. This improvement can be seen in different aspects. First, relationships. We are now able to monitor the frequency and quality of advisers interactions with clients. providing us with data and intelligence that will ultimately be used to make the advisers better equipment to serve their clients.

Second, asset allocation. Technology and AI play a central role in asset allocation supporting portfolio reviews and personalized recommendations aligned with our export allocation framework. Third, automation. By reducing the operational workload of advisers, automation allows them to focus on higher-value client relationships. By augmenting advisers with AI across relationship management, operations and allocation, we can increase account load and adviser productivity while improving client satisfaction. By monitoring and scoring client interactions, we ensure strong governance, consistent service quality and scalable growth.

To close this section of the presentation, I would like to talk about a core part of XP, our adviser network. XP basically created the modern investment advisory role in Brazil, and that role has continued to evolve over time. What began with education and access to equity products has grown into a highly professional, scalable adviser model that supports increasing complex client needs. While we offer a unique value proposition to clients, we also have a differentiated value proposition for our advisers.

We equip them with proprietary tools, data and intelligence that enhance their productivity, improve advice quality and strengthen client relationships. This combination of technology, training and incentive alignment is something no other platform offers at scale in Brazil. By continuously investing in the development of more than 18,000 advisers we reinforce the strength of our distribution network, enhance client relationships and the quality of the service delivered while ensuring the long-term sustainability of our model.

Finally, this powerful combination of service excellence, strong client relationships and financial performance together with a sales force that has aligned incentives and robust capabilities corroborates our conviction that disciplined execution backed by governance and technology will drive the performance of all our segments towards our strategic objectives.

Now let's move on to the next slide to explore our retail investments strategy. This slide summarize the results we are achieving across our core segments and shows how our strategic investments are producing concrete outcomes. Starting with retail. This segment continues to represent a significant opportunity for us. While we have faced market share pressure and margin compression over the last 2 years, we have taken decisive action to redesign the way we serve these clients with the objective of improving efficiency.

The current scenario already reflects early signs of progress with a new value proposition grounded in goal-based investing in managed portfolios. We already see strong initial improvements with a margin accretive dynamics. Our strategy now is to expand this initial path to other client layers using technology, process and governance as key enablers to scale in a profitable way. In high income, our core segment, fundamentals remain very strong. We have folks most of our investments here.

It's where our compact advantage stand out the most. We continue to see solid growth supported by our multi-model service approach. As previously shown, financial planning, wealth planning and export allocation remain at the center of the strategy, reinforcing client engagement and long-term value creation. In private banking, we are seeing the results of our recent investments. The segment is transitioning into a full wealth management model covering both individuals and corporate client needs, supported by a robust product platform and a highly skilled team.

Growth has resumed with market share gains and expansion in credit and cross-selling within the XP ecosystem. We are still investing in this segment and we expect to see further market share gains, accompanied by margin expansion.

On the next slide, we will share our consolidated client assets figure. In the last quarter of 2025, our total client assets combined with AM and AA totaled BRL 2.1 trillion, representing a 22% growth year-over-year. This was an important milestone for XP, crossing the BRL 2 trillion threshold. On the right hand of the slide, we show how net new money related to client assets evolved during the last quarter of the year. In 2025, one of the most frequently asked questions for XP was around net new money. To clarify some of the questions we received, we'd like to exceptionally give a little more color on this metric.

This quarter, we once again achieved BRL 20 billion in retail net new money and BRL 12 billion in corporate and institutional, totaling 32 billion for the period. As we have been saying in the previous quarters, retail net new money has been impacted by the dynamics of SMBs. In the fourth quarter of 2025, small and medians enterprise, withdrew BRL 3 billion in investments from our platform. On the other hand, inflows from individual clients in all our segments totaled BRL 23 billion. While we posted positive figures this quarter and met our soft guidance, we still face a challenging environment for 2026. We are investing in different initiatives to support our future growth. But for now, we remain expecting retail net new money reaching BRL 20 billion per quarter.

Retail cross-sell has been one of our focus to diversify revenue streams over the last few years. In 2025, we achieved important milestones in this business vertical. As a result, we have observed higher engagement from our clients across different products. across insurance, cards, consortium, retirement plans and new loans are driving market share gains and record contributions. For 2026, we will continue to innovate and expand our offering, improving the integration of GI products in financial planning and enhance the customer journey through a better digital experience.

For instance, insurance, we will launch new products, travel, home and credit line insurance. And in life insurance, we will extend our product range with new coverage. Taking cards into consideration, the new loans we had during the year made it possible to increase the share of spending while increasing penetration among target clients. In 2026, we also be launching new products to enhance our cross-sell offering. In the first half of 2026, we are rolling out a proprietary dollar-backed stablecoin, targeting clients who seek to diversify or hedge against FX volatility while providing true 24/7 liquidity. This stablecoin launched clears proprietary digital currency strategy, and we will expand the portfolio over time.

Finally, we will reintroduce crypto service that are fully integrated into our platform with XP operating as a virtual asset brokerage. This ensures a seamless and a trusted experience, fully embedded within our broader investment ecosystem. Overall, this stead evolution in cross-sell products strengthens client relationships, increased share of wallet and diversifies recurring revenue. Let's move ahead to the next slide and review some KPIs from our cross-sell products.

Let's start with credit card, where TPV rose 11% year-over-year to BRL 14.6 billion in fourth quarter '25. In 2025, we launched new products, offering unique value propositions for high income and private banking segments. Life insurance written premium grew 25% year-over-year in fourth quarter after we enhanced our offering, including new coverage. In retirement plans, our client assets posted 17% growth year-over-year in fourth quarter, reaching BRL 95 billion.

Cross-channel campaigns and client initiatives led to positive inflows. In 2025, we had, for example, record inflows in the defined contribution pension plan with 17% growth year-over-year. Other new products, which include FX, global investments, digital account and consortium collectively grew 21% year-over-year, generating BRL 258 million in revenue this quarter. It's worth noting that these products were built from the scratch only a few years ago and already account for more than BRL 1 billion in revenues per year. On the next slide, we will cover the evolution of our wholesale bank. we are operating a complete ecosystem where our wholesale bank has become a key pillar of our strategy.

Just a few years after we started our wholesale banking activities, we have grown into one of the Brazil's largest players. As our retail platform scaled, it generated increased flow and liquidity demand, enabling us to grow our wholesale bank by leveraging our global markets and market-making capabilities. What started as a client facilitation has evolved into a sophisticated wholesale banking franchisee, integrating investment banking, institutional access and other capabilities. Through the combination of strong retail distribution with wholesale and market-making capabilities, we have built a powerful ecosystem that improves execution quality and liquidity for clients. In fact, we are leaders in equities, futures, options and ETFs, representing roughly 50% of these markets.

Additionally, we have created a complete investment banking, offering a full range of capital market solutions to our corporate clients. This robust structure benefits us in several ways as it not only diversifies our revenue streams, but also generates multiple synergies with our investment business. We have been gaining relevance in GCM, for example, and we will continue to invest in strengthening our franchise in the coming years.

Finally, in credit agribusiness receivables, we are a leader in distribution as well as in real estate funds. Our wholesale bank has posted strong results over the past few years, and there is much more to come as we keep investing in our franchise. Now let's move on to the next slide and see more details on our progress agenda. Looking ahead, over the coming years, we will continue working on different business opportunities.

At this stage, we understand that XP is ready to address and capture share in new markets being credit and SMBs, the main prospects in the long-term agenda. In SMBs, we will leverage Brazil's largest adviser network to expand our reach and deepen relationships. Moreover, we will broaden our product portfolio beyond investments and FX to generate more engagement and address SMBs day-to-day financial needs more holistically.

When it comes to credit, we see opportunities for both individuals and corporates. For individuals, credit acts as a catalyst for our investment business, helping us move toward greater primacy. Expanding our tailored solutions, particularly for high-income segments will be central to our agenda.

For corporate clients, we remain focused on structured solutions and expanding our corporate product offering to improve competitiveness, including receivables, government-sponsored funds and real estate solutions. Overall, our strategy is to expand our credit offering while maintaining the conservative prudent approach that has long defined our business. These opportunities are once again medium to long term.

I will now hand the presentation over to Victor, who will discuss the quarter and full year financial results. Thank you.

Thank you, Maffra, and good evening, everyone. Before I start, I would like to do a quick recap of some achievements and commitments for the past 2 years. First, corporate restructuring. We are now entering into the final phase of our corporate restructuring, in which we will further concentrate activities in XP Bank, materially improving our capital and funding costs.

The new structure has increased our competitiveness, optimizing our warehouse strategy during the year. We already captured part of these benefits in 2025 with reduction in funding costs, plus the reduction in cost of flex to the emission of subordinated notes. And we expect to have another positive impact in 2026 and the following years. As a result, we see the expansion of both of our financial margin and EBT margin for 2025, and we expect to keep this pace for 2026.

Second, our balance sheet management. In 2025, both our EPS and net income grew faster than our total assets and total risk-weighted assets. Combined with our disciplined capital allocation and distributions, this drove our ROE expansion of approximately 90 basis points, even though our BIS ratio is higher than 20%. Third, efficiency. Our continued technology investments are delivering operational leverage across many business fronts, allowing us to keep our investment pace while we keep a stable efficiency ratio year-over-year.

So now starting with total gross revenue. In our fourth quarter, total gross revenue reached BRL 5.3 billion, representing a 12% increase year-over-year and 7% sequentially. For the full year of 2025, total gross revenue was BRL 19.5 billion, growing 8% compared to 2024. The performance highlight was Corporate & Issuer Services with a strong second half of 2025. When we compare to gross revenue breakdown on the high-hand side of the slide, in 2025, retail maintained 75% of total revenues and corporate and issu services gained this space. Now let's move on to the next slide with more details on the different business.

In the 4Q '25, retail revenues totaled BRL 3.9 billion, up 8% year-over-year and 4% sequentially. For the full year, retail gross revenue reached BRL 14.6 billion, increased 8% versus last year. Retail revenue growth in 2025 was supported by float for both investments and checking accounts, new verticals if credit card, retirement plans and insurance Leading the way, and as a new initiative, international investments. Fixed income performance in a strong first half of 2025 and decent figures for the second half, supported by warehousing strategy.

So now let's turn to Corporate & Issuer Services. In the fourth quarter, revenues reached BRL 895 million, representing a 49% increase year-over-year and a 23% increase sequentially. This was the strongest performance in our history for this business, both in Corporate & Issuer Services. The strong performance was driven by a robust activity in the DCM space, reaccelerating from a softer first half. In addition, our ability to cross-sell and deliver a broader set of solutions to our corporate clients, such as derivatives and credit that continue to support revenues, leveraging on our strong distribution capabilities across the platform. For the full year of 2025, corporate and issue services revenue totaled BRL 2.7 billion, up 19% compared to 2024, making a new level of corporate revenues and consolidating this segment as an important business line for XP.

And now let's move to our SG&A and efficiency ratios. SG&A in the fourth quarter amounted BRL 1.7 billion growing 10% year-over-year and 4% quarter-over-quarter. For the full year, SG&A totaled BRL 6.3 billion, reflecting continued investments in technology such as AI and also our expansion of our adviser network. As I mentioned earlier, it is the operational leverage capture from technology and innovation developments that will allow us to keep our elevated investment base in different areas of the business while keeping the same efficiency level. Additionally, the efficiency ratio in 2026 should remain broadly in line with 2025 levels without any material change.

As we can see on the right hand of this slide, our last 12-month efficiency ratio for the fourth quarter stood at 24.7%, stable compared to 2024. Our adjusted EBITDA reached BRL 1.5 billion in the 4Q '25 million, increasing 20% year-over-year and 16% quarter-over-quarter with an adjusted EBITDA margin of 31.3%, an up 152 basis points year-over-year and to 171 basis points quarter-over-quarter. That means that we have reached the ranges of our guidance margin during this quarter. For the full year of 2025, adjusted EBITDA totaled BRL 5.5 billion, growing 10% versus last year with an EBITDA margin of 29.6%, expanding 52 basis points year-over-year.

On the next slide, we will see our adjusted net income. Adjusted net income for the quarter was BRL 1.3 billion, up 10% year-over-year and stable sequentially. Our net margins were 26.9% in the points lower year-over-year and 166 basis points lower sequentially. For the full year, adjusted net income reached BRL 5.2 billion, growing 15% compared to 2024 with 28.3% net margin, 173 basis points expansion in the period.

Let's move to the next slide to talk about capital management. Starting with cat returns. In 2025, we returned BRL 2.4 billion in capital to shareholders through dividends and buybacks. We also continue to have our BRL 1 billion share buyback program currently open. On the right-hand side of this slide, you can see the evolution of our payout ratio over the years, including last year, we had a close to 15% payout, considering both buybacks and dividends.

Now talking about earnings per share and ROE. Once again, we would like to highlight that our earnings per share continues to grow faster than net income, driven by our consistently buyback execution just like we explored in the previous slide. Adjusted EPS in the fourth quarter was BRL 2.56, growing 15% year-over-year and 4% quarter-over-quarter. For the full year, adjusted EPS reached BRL 9.81, increasing 18% versus last year, only in 2025 we have retired more than 24 million shares, approximately 4% of the total share outstanding.

Now looking at our profitability, ROE and ROTE. We see our adjusted return on equity for 2025 reached 23.9% and 94 bps expansion, while return on tangible equity was 29.5% and a 78 basis points expansion versus 2024. This reflects our capital disciplines that allow us to consider return capital to shareholders while simultaneously growing and investing the business to further differentiate yourself from our peers.

Finally, on capital ratio and risk-weighted assets. We closed the quarter with a BIS ratio of 20.4%, if the CET1 ratio at 17.3%. In 2026, we operate the business with a high BIS ratio during the year. We are comfortable in getting our BIS ratio to our target range of 19% to 16% toward the end of the year for capital distributions while still maintaining a comfortable capital buffer. Additionally, we ended the year with a CET1 ratio of 17.3% compared to our average of 12%. If we were running the business at the same C1 of 12%, we would have been above 13%.

Now looking at the right-hand side of the slide, you can see our RWA breakdown by category. Risk-weighted assets totaled BRL 119 billion, growing 13% year-over-year and 11% quarter-over-quarter. As we expected and communicated in certain occasions, total RWA growth was lower than our net income and EPS for the year, even in a strong performance from the wholesale business. In parallel, our total assets, adjusted for assets under management from retirement plans grew 8% versus 2024, also less than our bottom line. More specifically, during the quarter, we increased the rare housing of fixed income securities, mainly corporate credit, aligned with strong DCM activity, our growing capacity to originate corporate use and market timing opportunities.

Lastly, because of this increase in warehousing, our value at risk from which important company's credit risk spread went to BRL 39 million or 17 basis points of reaction, stable on a year-over-year perspective and 4 basis points higher sequentially, but still in a very conservative level. We expect to distribute partner these assets at the beginning of 2026. This level of housing capability was only possible to the development of XP Bank and funding structure, as previously highlighted.

With that I end my presentation and hand it over to Maffra, so he can make his final remarks, and then we'll go to the Q&A.

Thanks, Victor. Before we go to Q&A, I would like to quickly go over the strategic foundations directing our priorities for 2026. Excellence is our main growth pillar. Over the past years, we have invested heavily in scalable process, governance and technology. And in 2026, we begin to see these investments maturing and is starting to translate into results. This is reinforced by a skilled and well-trained sales force with aligned incentives ensuring consistent execution across the organization.

We continue to invest in a highly disciplined manner, particularly focused on wholesale banking and the B2C channel. While refining our segmentation to ensure a clear and accurate value proposition for each client profile. This will enable us to grow with quality in a profitable and sustainable manner.

On the capital front, our priority is to sustain strong and consistent returns backed by a conservative capital structure. Discipline provides the flexibility to operate across different market scenarios, maintaining resilience and readiness to capture opportunities. Together, these foundations ensure that we enter 2026 with a solid business structure and disciplined capital allocation.

Lastly, before starting the Q&A, I would like to address an ongoing topic within the financial system. First of all, we would like to express our deep concern regarding everything that has been reviewed in recent months involving Banco Master and the extent of irregularities identified. We also want to acknowledge the important and diligent work carried out by the Central Bank as well as the responsible leisure coverage that has helped Brazilian society better understand with greater transparency, what has occurred through ABBC and [ Febraban ], we are actively supporting structural improvements aimed at preventing situations like this from happening again in our financial system.

The Central Bank has been advancing in the right direction over the past years. although we understand some relevant adjustments are still necessary. That said, this change must be implemented responsibly so that Brazil does not risk reversing the significant progress achieved in recent decades in terms of competition and a broader and more efficient access to financial products and service. we should be careful not to adopt measures whose unintended consequence would be to reestablish excessive banking concentration or to enable business models built on consumers' lack of information or as Director [ Galipolo ] rightly pointed out some months ago, products that function as a reversing Robinhood.

For more than a decade, the Central Bank has consistently pursued an agenda to increase competition and improve both quality and the cost of financial service through initiatives such as BCPs, digital banks and investment platforms have played a central role in this transformation, expanding access to banking service without fees and reducing long-standing asymmetries in traditional investment products, such as [ Poupanca ], saving accounts, Peak and [indiscernible]. 25 years ago, we helped transform the system by building the first open platform in Brazil, giving clients across all income levels, access to financial education and high-quality investment products.

Over time, we have contributed to reshaping the market by fostering competition, improving product quality, reducing costs and ultimately delivering better outcomes for our clients. We do offer proprietary products, but we have always distributed third-party solutions, including from competitors, choice, transparency and alignment with the client always come first. we do not charge abusive or opaque fees and clients being nothing to open or maintain an account with us.

Our mission is simple: to improve people's life by helping them invest better. This principal guides every decision we make and remains the foundation of our work as we continue to support Brazilians in managing their money, investing responsibly and planning for their future.

Andre Parize, we will now start our Q&A session.

Thank you, Maffra. Now we're going to start the Q&A. The first question is from Eduardo Rosman from BTG.

I have 2 questions for Maffra. The first one is regarding the ambition to become Brazil's leading investment platform by 2033. Can you provide a little bit more detail why -- what's the metric that you use to define that being a leading firm? Is that market share? Do you see revenue client base or something else? And do you believe that doing more of the same but better will be enough to reach this goal to require more powerful banking and credit capabilities? That would be the first one. And the second one, regarding your entry into the controlling group. Practically speaking, what does that change mean to you?

And thank you for your questions, Rosman. The first question is when we say that we want to be leaders in investments in 2023, it's about market share, okay? So that means that we have our internal plans here our long-term view is to become leaders in market share. And that's the -- it's '33 because our plants every plan that we have gives us that we can get there in 7 years, okay? So that's the number of the reasons when we look how much money, net new money we have to bring in the next years by different channels, by different segments, the plants, they point out that we can get there in '33.

How we get there first with the third wave, okay? So as we mentioned in the past earnings call in all the conference. We have been investing a lot on the third wave on the democratizing wealth planning for retail clients in Brazil. So democratizing the service that only private banking clients or even multifamily of clients have in Brazil. So that's the main point here. It's -- a lot of people don't get how big is the change here because most of the financial companies in Brazil and banks they still have like the model of pushing products, okay? It can be a basket of products and investment portfolio, but it's a product-driven approach.

We have been changing that for the past 2 years, we have change in cents. We have changed the way of serving clients. We have done a new segmentation in the company, new value propositions, and we are seeing big improvements in all the numbers, churn EPS and a lot of other metrics here. So we are very excited with the next years when we look at everything we have been doing on foundations and changing almost changing the business model in the past years for the future.

Of course, we have different strategies for different segments. We have been investing a lot on the private banking platform in the past 3 years. We have been gaining market share in the past 2 years and last year 2 it accelerated, and we believe that we can grow faster here on private banking.

On the middle, the affluent clients, it's more of the same with more intensity with more technology, with more process with the new value proposition of more services, more wealth planning. And when we go to the retail clients, we have found a new way of serving more gold-based low human touch, so a completely different value proposition that is becoming a reality, I would say, in the last year and that we are very confident that we can accelerate in the next years. So different strategies for different segments, but all based on the third wave here.

So of course, as you mentioned, the full ecosystem, the banking part, insurance of that reinforce the value proposition for investor clients. And as you have seen in the past quarters and past years, we are like every quarter, every year, like better on the cross-sell products, and we have a big road map for the next quarters here. But we are ready to accelerate in the future, okay?

About the second question, the control being 100% honest with you for myself, nothing changed. I've been with the company for 11 years. I was a partner in a different way, but I was a partner I have always acted as owner of the company. So nothing changed on the way I behave or the way I see the company, but I believe it's even a stronger alignment between the executives that are running the company, Jose Berenguer and I, alongside Fabricio Almeida and Guilherme SantAnna, so four executives that run the company on a daily base. And of course, Guilherme.

So I believe it's a stronger alignment for the long term, but nothing changed the way we manage the company here. And besides that, Gabriel, Bruno and Bernardo, they continue to be a shareholder in the company. They continue on the Board. So it's a natural evolution here a natural process. So there is no big change here on the company.

Great. Next question is from Thiago Batista, UBS. Thiago, you may proceed.

I have one question regarding the recommendation that CVM released yesterday about the internalization of orders. In my understanding, this should be a little bit positive for your RRP business? But do you have any view if this really positive or not for XP? And the second question on the taxes. We normally complain when the taxes were low. Now we're compete tax increase. But on the taxes. Just trying to understand if this hike in the taxes in this quarter is related to the change in the colic structure? And also, if this is linked with the consumption of the tax on tax losses carryforward, you reduced or experienced by BRL 600 million, BRL 800 million of those tax credits only in one quarter, if all those things are correlated?

It's Thiago here. So I will take the first question. It's a very positive news for us. Once you don't have the cap and you can include other assets. So it's very positive. Okay. You remember that we were the first company back in 2015, I remember it was the one responsible for building our LP back in '15 here for XP. And 2019 was, I would say, a big, big journey to make the product regulator. So -- and today, seeing the product like evolving, not having cap going to other assets, other type of instrument. So that's very positive because we are the largest market making in Brazil for retail clients. So it's positive for a business. It's positive for the market, for the clients and of course, we'll generate more revenues and more results for our market making. So it's positive.

Thiago, this is Victor. First, about taxes. I think we talked a lot about that in the past. Our base tax rate is something if the business is more toward the banking activity, investment banking in DCM and broker dealer, we're going to pay a bit more. And if the business is more towards market making, we're going to be a bit less. If you look at the revenue mix for the quarter, the main highlights was issued Services and Corporate Banking, both of course, made inside the bank and the broker dealer, and that's why we are paying more taxes.

Also those revenues are less heavy in terms of commission. Those assets were not distributed to retail clients. So the EBIT margin associated with those revenues are also higher. Talking about the quality structure, this change will only happen in 2026. It did not happen yet in 2025. So it has nothing to do if the taxes are an effect of the revenue mix. I'm sorry, what was the other question?

If this was the higher tax was the cause of the reduction in the tax losses carry forward.

It's not because of that. It's the revenue mix that explain both revenue, tax and EBT.

Okay. Next question is from. Gustavo Schroden from Citi.

I'm going to do 2 questions as well. So the first one is regarding the reimbursements by the FTC to the depositors of Banco master. So estimating BRL 40 billion. So how has XP been performing? So I believe that the company has designed a strategy to capture these volumes part of this volume. So -- any color on that would be great, if you should expect any positive impact in the first quarter, 26% regarding it? And my second question is regarding the NPS. We saw a decline in NPS to 65 points from plus 7 on points baseline. So could you elaborate on this? What's behind this decline and how the company is addressing this decline in NPS?

Okay. Thank you for the question. I will start with the NPS question. The drop is related to 2 events that we had on the fourth quarter. We had the Ambipar structured notes, and we had a lot of news and noise about Banco Master back, especially in December. So there is a selection bias for clients who were impacted by these 2 events. They are more propense like to respond the NPS than clients that were not impact by the events that happened. So when we look at margin, we see the improving again. So we believe it's going to be temporary affected by the 2 events that I just mentioned.

And to give a color that the impact is not that material. Usually, when we have big maturing of fixed income, for example, inflation governing bonds or like big corporate maturing bonds in Brazil usually, we retain 70%, 75% of the amount because usually PayPal take the liquidity to pay bills or to do something outside of XP. So give or take is 70% the rotation rate, okay? And when we look Banco Master, today is above 85%, okay? So it's a higher than a regular maturing event. So I'm not sure how we are going to disclose the net new money for Q1, but somehow, we will have like to show these numbers. So there's a huge inflow of money from Banco Master as we are keeping more than 85%, but not sure yet how we're going to disclosure, but we'll disclosure between net new money and the retention .

Okay. Next question is from Guilherme Grespan from JPMorgan.

Tarzans. My question is just on the outlook for 2026. And this is the environment that we are seeing Fourth quarter still showed similar trends, right? Issuer Services, very strong. Corporate Solutions, very strong. Fixed income a little bit weaker, Equity is recovering a little bit, but still timid. But my question is more going forward, like Question maybe one, do you think this performance of Corporate Solutions & Issuer Services is sustainable in the beginning of this year? And question number two, if this environment that we are seeing year-to-date, it's a good performance of risk assets, but it's mostly led by foreigners, right? We don't see a huge change on the local dynamics. If you believe you're benefiting much from this environment or no you don't benefit as much because it's mostly foreigner-driven, this good performance?

Guilherme, thank you for your question. Victor here. First, talking about corporate, I think our corporate business is in another platter. We evolved a lot in terms of product cross-sell clients, and do so. I think we can -- we are able to keep this pace over 2026. And talking about the performance of the other risk assets, as you said, -- it's still too soon to say that this will reflect in take rate. If you see volumes both in fixed income and acquisitions from retail clients, they are not going up.

The movement is mainly driven by foreign clients. I think if it performs keep this way over the year, we may see a bit of trading activity coming from individuals. And of course, they will be reflecting in actual revenues, but it's still too soon to talk about that. Also, in terms of fixed income, I think we need to see the Central Bank delivering the cuts that we have in the interest rate curve. If that happened, we may see the compression of the duration fixed income or something that we talk a lot about over the last 2 quarters. But again, we need to see the marketing going in this direction, both in equities and efficacy and rates to be able to see something reflecting your revenues.

Great. Next question is from Marcelo Mizrahi from Bradesco. .

Congratulations from the results. Two questions. First is regarding the guidance. So if you guys plan to update the guidance to 2026 with the environment that we are talking now. First, second, the guidance of revenues and the guidance of margins. Second question is regarding the perspective to have a I think it's better just to talk about the guidance, please.

Yes, the guidance holds. We have no reason today like to change the guidance. We believe 2026 is going to be a stronger year than 2025 as we have been talking in the past quarters, we are projecting to get very close to the guidance. Margin is there already, okay? And when we look revenues, if you project, we are very close. So there is no reason to change the guidance right now.

I remember my question. So my question is regarding the RWA. So we saw an increase of this -- the leverage, so definitely because of the offers. So looking forward, how much this leverage, the RWA could increase. So you guys have some cap on that or some targets that you can share with us?

Thanks for your questions. First, as usual, we bought assets for our warehouse book in the fourth quarter to have assets to sell to our clients in the first. That's exactly what is happening. I think what we can say about RWA is the same we said last year. We are very confident that net income will grow faster than the risk, and that will be the case for 2026.

Any perspective of adjustments on the payout policy to increase payouts or to reduce the payout with that?

We have our BIS ratio guidance for the end of the year. As we said during the presentation, we're going to pass the area of more strong capital base, but we are confidence that we're going to be inside the guidance by the end of 2026.

Next question is from Tito Labarta from Goldman Sachs.

I guess following up on Mizrahi's questions on the guidance. Just so I'm clear, make sure didn't miss anything. The guidance you had given was back at the Investor Day where you guided for gross revenues of 22.8% to 26.8%. I mean even at the low end, that would imply almost 20% revenue growth year-over-year, just to make sure that's the guidance we're talking about. And that would be a big acceleration from the 8% growth that we're seeing here this year. And you also mentioned net inflows you expect to remain around BRL 20 billion. So we don't see an acceleration there just to make sure that I'm understanding the guidance on the revenues that we should be thinking about?

Thank you, Tito. Yes, we are talking about the same guidance. So the number to get at the bottom of the guidance this year is 17%. The growth for revenues for 2026. So as we have been talking, it's not going to be easy, but if we miss, it's going to be by a small percentage, so there is no reason like to change guidance for 3 years if we miss by a very small amount. And again, we believe we -- it is possible to get there, okay?

And about net new money, we don't see any reason today to change the -- it's not a guidance, but we have been talking about the BRL 20 billion level. It's what happened in the past 3 quarters. So there's no reason to change for the next quarters. But again, for the our ambition to get to 2033 as a leader in investments, it will have to accelerate at some point in the future, but we don't see that happening on Q1 or Q2 for all the reasons we are -- and numbers we are seeing here.

Okay. No, thanks for clarifying, Maffra. That's good. Good to hear as well. And I guess the driver of the acceleration. I mean, you're saying first Q2, you don't see it so second half of 2026 as interest rates come down, I think -- I mean equity and fixed income are still like the biggest portion of your revenues, you think that should accelerate, I guess, as rates come down? Is that the right way to think about that?

No, we're not considering like a better take rate here or like a market improvement to get there. They are like all levers that we control. So we are confident that we can grow this year at higher pace than 2025.

Okay. But it is back-end loaded, right, more second half of the year, if I understood the comment earlier?

We always have seasonality. This year was lower than the past years, but usually, we do 45 and 55 of our results on the first -- it was a little bit more flattish in 2025. But yes, usually, we accelerate more on second half of the year.

Next question is from Pedro Leduc from Itau.

First question on SG&A. Here, you grew for the full year, about 8%. I understand you're going through an investment cycle. So here, I'd like to hear your thoughts on what the priorities will be in 2026. What are the pains that you're trying to solve with investments? And you mentioned in the call, I believe, stable efficiency for 2026. Now we're talking about high teens revenue growth. So help us reconcile that SG&A really understand what priorities you are doing and where we should look for signs of success of these investments.

Thank you for your question. I think our main investments will be, as always, in our car business. So we're going to be investing in adviser expansion over the year, the same as the last years. We're going to be investing in technology. So we have a lot of technology investments in AI. Those technologies will be used to customer relationship management an adviser productive, both focus on having more account load with more quality and more EPS. And I think that's the way that we're going to measure that. And also, we have some investments in our international platform. on our PME platform, cash account, bank account, every product around the companies, the companies that we're going to provide over 2026 and '27. And I think that mostly those are the big chunks of investments that we're going to do in 2026, the same as we did in 2025.

Okay. And with the efficiency level, you mentioned flattish that talks with the mid-teens revenues?

Yes. As Maffra said, we are confident that we are going to pursue our guidance level, and that implies the efficiency ratio and the expenses we're going to grow. And of course, we have some kind of maneuverability here in the number. If the revenue doesn't come, if they are faster than what we expect. But the number is around that.

Okay. And sorry, just to be picky on this part on the revenues. We understand you're going to go through some structured changes that would change also income tax and revenues from we talk about mid-teens, high teens revenues, that's excluding any accounting changes that will happen as you transfer these operations, correct? So be comparable?

If you look at 2025, we did a lot of restructuring over the group when we send some companies through the bank and we start changing the way we look at the indebtedness in the company, we lost something around BRL 500 million in revenues over 2025 that went through the net interest margin. And we say about that. So I think the growth of the revenues in the area, we're going to have a lot of mix is the same as we have in 2025, if other companies going to the bank, we're paying some corporate debt and changing for banking debt. then, therefore, going to reduce their revenues, and we're going to have some positive factors also. And I think in the net, we're going to be delivering the numbers that Maffra said.

Okay. No, that's very clear. The overall message is very clear. .

Okay. Next question is from Antonio Ruette from Bank of America.

I have 2 questions on my side. The first one is a follow-up on taxes. I understood that you should have an average tax rate of close to 15% and higher than that if revenues are more skewed to banking. And now if I'm looking here in your tax withholding in funds line, I see a very sharp decline Q-on-Q, and this line very below your historical average and it does not look related to the revenue mix. So if you could please explain what's it related for?

And thus also a second one, AI. I think it's an important topic, particularly when you are shifting between business models. So you are looking towards migrating towards B2C model. I understand that this is an opportunity to grow in the B2C with lower expenses, lower investments. But also it's a trap, right, because it's a model without in-person interaction and that could be mimicked by AI by another player. So how do you see your strategic shift right now considering AI?

Antonio, I'm going to take the first question here. First, it's very hard to talk about the results of individual entries in the group. And as we said before, you cannot explain the performance of one business or another looking at the grades or the quality of performance. Also, after 2026, if the restructuring of the group, we're not going to have to tax anymore, and we're not going to disclose this number. So I think the important thing here, if you look at the mix, if you look at the accounting levels, you're going to see the same things we are looking at many euro lives. You're going to see the banking revenues, banking fees, credit fees, fees from DCM offerings, and that was the strong part of the quarter, and that's why we are paying hiring taxes than before.

The second one, so I'm not sure if it was clear on the presentation, but we do not believe in taking the financial adviser, the human out of the equation here, okay? So it's always using technology, using AI to improve to make the adviser better, okay? So we have different AI agents here to help the adviser to have more relationship with the clients to take the operational workload out of from -- out from the adviser. We have a lot of tools that we have been creating in the past 2 years to help the advisers to perform better, to increase the count load, to increase productivity, to increase the level of service that we deliver to customers. But it's always how to improve the human.

Of course, when we talk about the -- remember that I said we have 3 big segments here. Of course, we have some other in between segments, but 3 big ones. Of course, for the 0 to BRL 100,000 segment, here, we can do 100% digital, okay? But we don't believe or we don't -- we don't like the idea of having like a BRL 1 million client or 10 million are clients going only through like an AI. It doesn't help. It doesn't happen because it's a trust business, okay? So people like to tell to people when they are talking about their lives, their dreams. So they want to talk to someone.

So the whole idea here is how we use AI to improve the performance to improve the service that we deliver to our customers. So we have been developing a lot of initiatives here. Some of them are very promising. For example, today, we listen, we read. So we have governance over all the interactions that our B2C internal advisers have with customers, we classify 100% of them. So we know everything that's happening. We give advice for the internal advisers about what they are doing right or wrong. We give broad advice, we give advice of interactions with customers. So we are very excited with the results that we are getting from AI on the company. But again, it's not about replacing the human or the human adviser. It's about enhancing the adviser, okay? So that's the idea.

Okay. Next question is from Daniel Vaz from Safra.

I want to try to understand the aftermath of Banco master, right, episode, both for XP internally and for your client base. So trying to break this down in 2 parts. First, for you, any way -- any changes in the way you filter your products to distribute? I mean how did that episode was discussed in your Board of Directors? So are -- is it got to the point that you discussed, like are we going to distribute these types of products again. So how is the filter that you want to do after it? Or if there is any that you want to put additionally?

And your client behavior such as the ones that were involved probably. You mentioned, I think it was in the past presentation about clients going to more risk-averse kind of 50% of your marginal allocation in fixed income was little more to high liquidity products and less yields. So I want to try to understand like what has changed into the third quarter so far to the fourth quarter so far in terms of investment decisions by your clients and mainly on the aftermath of the episode to Banco Master?

It's important to remember that our clients, the 99.9% of them there like under the GC, the FGIC Brazil FGC coverage. So our clients didn't lose any money. On the opposite, they made an investment that had a good return, okay? So our clients, the gene lose any money. We don't recommend Banco Master over FGC. As we don't recommend for any bank below a certain threshold of our internal rating, okay? So of course, every time that something like that happened, we look for our internal controls our credit analysis to see what we can improve, and we are improving, okay? It's part of the journey.

But remember that we have more than 50% of market share of all middle size and small sized banks in Brazil. So because remember that the traditional incumbent banks, they don't rebuild third-party CGs. So it's basically only the independent investment platform. And we are the largest one in the market. So for -- and remember that in some other cases, [ Gicaza ], [ Bejica ] , we distribute -- [ Portocredi ], we didn't have the products on our platform, okay? Our credit analysis was good in some events in the past. When you have frauds or the kind of events that everyone is reaching on the news right now. It's almost impossible. Otherwise, no one would lose money on credit. No one would have lost money on [ Lojas Americanas ] or [ Batista ] companies or other frauds, okay? So when you have this type of problems, it's hard to get.

But of course, we have to look inside, what we have to improve in our controls. But again, we have only distributed products that we believe they are suitable for our clients on the right risk for the right customer profile. We have internal controls today that we cannot allocate more of any type of fixed income products we've had risk above the threshold for that rating for that type of client, okay? So we are very strict on controlling that. And again, our clients didn't lose any money here on master, okay? So that's important.

About the changing mix after the event, we don't see any big change, okay, to be honest, we don't see -- of course, you have ONE other name that we're involved in on the same problem for those names, they are not even on our platform for a few months or even years, okay? But besides that, we don't see a big change for other type of small or midsized banks.

Okay. Our earnings call is coming to an end. Thank you for your time. We see that there are more people who want to make questions. So IR team will be more than happy to attend you. Just contact us, and see you soon. Thank you very much.

Good evening, everyone. I'm Andre Parize. Investor Relations Officer at XP. And 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 third quarter 2025 earnings call.

Today's presentation will be lead by our CEO, Thiago Maffra, and our CFO, Victor Mansur, who will both be available for the Q&A session right after the presentation. [Operator Instructions].

Before we begin, please refer to our legal disclaimers on Page 2. where we provide additional information regarding forward-looking statements. You can also find more information in the SEC filings section on our IR website.

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

Thank you, Andre. Good evening, everyone. I appreciate you all joining us today for the third quarter 2025 earnings call. 2025 has been a very important year for XP as we have achieved significant progress on our agenda of excellence. From the launch of the new way to attend and serve clients, implementing a culture to better understand clients' financial cycles as part of the main KPIs, new and more intelligent segmentation through a brand-new app with much more features and easier data access and new credit card offering. These few examples demonstrate our folks to become the leader in investments in the country, while brings a completely new approach on how Brazilians invest.

Despite this advance we have made in different areas, the year has still proven to be challenging. But even with this challenge, our team is fully committed to keep evolving our business to deliver growth and profitability under different circumstances.

Now going to the main KPIs. The first one is client assets, AUM and AUA for which we posted BRL 1.9 trillion, a 16% growth year-over-year. Total advisers accounted for 18,200, representing a small decrease year-over-year on the back of many of them becoming employees and our more restrict chip policy, which were requests higher standards of commercial behavior and productivity. And on activity clients, we posted 4.8 million clients, with a 2% growth year-over-year. It's important to mention that we have been growing on core client segments, high income and private banking.

For some quarters, we were not investing to capture and maintain low retail clients since it was to expense to serve them in our old model. But now after some tests we are almost ready to resume growth in this segment. We already see early stages of development on how to better serve the segment with profitability. Let's wait some quarters to be sure about the way we design to attend retail clients. And maybe we will see the overall number of clients growing again as this dynamic evolves.

In the quarter, gross revenues marked BRL 4.9 billion, representing 9% growth year-over-year. EBITDA is 10% higher year-over-year, making BRL 1.3 billion. These results were positively impacted by the more constructive dynamics in Corporate and Issuer Services segments. Following this positive trend, our bottom line also posted an impressive growth year-over-year, reaching BRL 1.330 billion, and representing a 12% growth when compared to the same period last year, which represents a new record.

On profitability, we achieved 23% ROE during the quarter, a flat performance year-over-year. This represents our commitment to deliver profitability even in more challenging market scenarios. On capital ratio, we maintain a very comfortable level of 21.2%, which represented an increase of 180 bps quarter-over-quarter. Regarding diluted EPS, we posted 13% growth year-over-year, another quarter in which it grew faster than net income, driven by our share buyback program execution.

Now let's see more details on the next slides. Our total client assets, combined with the assets under management from our asset management business and with the AUA from our fund administration business, totaled over BRL 1.9 trillion, which represented a 16% growth year-over-year.

On the right hand of the slide, we show how net new money related to client assets developed in the period. This quarter, we achieved BRL 20 billion in retail net new money and BRL 9 billion in corporate and institutional, which combined represented BRL 5 billion lower than last year, but 3x higher than last quarter.

On the retail side, we started to see the early signs of progress on our agenda of excellence we mentioned before, lower noise of some events we had during the first half of the year, and better GCM achieved towards the end of the quarter. All this combined positively impacted the inflows coming from individuals. Additionally, despite the maintenance of the same market dynamics during the third quarter of the year, we saw better net new money figures both from SMEs, which are incorporated in retail figures and large corporates.

Recent developments in our product range offering and more positive capital markets translated into higher net new money for both segments. We are constantly improving our investment platform. And as we mentioned before, enhancing clients' experience through adviser initiatives. This combination reinforces our confidence to achieve our target of around BRL 20 billion in retail net new money per quarter.

On the next slide, we will explore our retail strategy. As I mentioned earlier, 2025 has been a year of significant progress in our agenda of excellence. We are constantly enhancing our way of serving clients with the aim of, once again, disrupt the market with our value proposition focused on service level. Going back to our foundation, XP disrupted the investment industry in Brazil by democratizing access to investments through an open and comprehensive platform of products and service.

In a second stage, we scale Genova business model by building the largest and most qualified base of financial advisers in the market. we have come this far by offering best-in-class investment products built by top market specialists.

Now we are once again disrupting how Brazilians invest by democratizing access to high-quality wealth planning. A service that it now has been reserved for high net worth clients of multifamily offices. We delivered personalizing and premium planning for clients with more than BRL 3 million scaling financial planning for this with over BRL [ 1 ] million a and offering goal-based investment planning for clients with less than BRL 1 million. Our approach is holistic, encompassing the complete financial lives of our clients, assets, liabilities, expense and savings. Tax and state planning solutions are also considering.

In the end, we are serving our clients with top-tier solutions for both their personal and business finance. We are doing this at scale, powered by proprietary technology we have developed over the past years. This technology enables process standardization, scalability and consistent quality in our servicing model. Examples include our CRM system proprietary allocation platform and sales active management, among others, all of them powered by AI.

Some of these process KPIs are shown here proving that this journey towards excellence is gaining traction day by day. Additionally, combined with all these progress I have just mentioned, we are leading another change in the industry by having an agnostic business model. We are able to serve clients in a way that best fits their needs and preferences. The fee-based model already accounts for 21% of total retail AUC.

It started in the wealth service segment, which still has more -- represent achievements in the model, but we are accelerating in the other segments from this year on. we will still capture considerable growth coming from these new age serve. It will happen in the medium term as we are transforming our business model and our value proposition. Nevertheless, we strongly believe that will give us a sustained competitive advantage in the long run.

Finally, XP once again is a pioneer. We are not only leading us redefinition on how clients are served but we are also uniquely positioned to capture future growth coming from this change in client behavior and new market trends. Retail cross-sell has been one of our focuses to diversify revenue streams during the last years.

During Q3, we achieved important milestones in this business segment. Starting with credit card, TPV grew 9% year-over-year marking BRL 13.1 billion during Q3. As we anticipated last quarter, at the end of Q2, we launched new products targeting affluent and private banking clients. We estimate that with this new segmentation, each one of them with a unique value proposition, which should grow faster in the coming quarters. Life insurance written premium posted 25% growth year-over-year in Q3. As we have mentioned in the past, our insurance business is still in its early stage, given its significant expansion potential, we expect it to continue growing.

On retirement plans, our client assets posted 15% growth year-over-year in Q3 and reached BRL 90 billion. We keep expanding our sales force and our product offering to increase our relevance in GCM industry. As mentioned before, we see a lot of potential in life insurance business segment with a significant addressable market to penetrate in the coming years. Credit posted 11% growth year-over-year in Q3, achieving BRL 83 million in NII.

In new products, we consider FX, global investments, digital accounts and consortium. Altogether, represented 24% growth year-over-year with revenues reaching BRL 250 million this quarter. Beyond consortium, we also saw FX and digital account posting relevant growth this quarter.

Moving to the next slide, we will address our wholesale bank evolution. Taking GCM into consideration, this quarter, we saw a sequential increase in industry volumes when compared to the previous quarter. This growth was pretty much concentrated in the last half of the period, backed by the progress in the tax discussion regarding tax exempt and incentivizing senior instruments. In the third quarter of 2025, we had 10% market share in that capital markets distribution. We still have a robust pipeline of fixed income offerings and depending on market conditions we might see this mandate materializing into real deals in 2025.

Regarding XP broker dealer, it was another positive quarter and we kept leadership in the local industry with 17% market share. On corporate securities, this quarter, we kept about the same size of our corporate securities book with BRL 33 billion. The quarter started with possible change in taxation of tax fixed income instruments and finish it with many companies taking advantage of low credit spreads to issue new debt.

Next year, we can possibly see an increasing volatility, and therefore, a reduction in corporate clients' appetite for new offerings. So our strategy that being the case is to increase this warehouse book in the last quarter of 2025 to sell it to our retail clients during the next year.

As a final message, I would like to once again emphasize our ability to disrupt the market. We are the pioneers of this transformation trend, bringing clients unique value proposition or innovative offering combined with an agnostic business model and strong capital discipline position us as a distinctive player that successfully combines growth potential, profitability and risk management.

I would also like to reinforce that our ecosystem today is far more complete than it was just a few years ago. across all our businesses. We are confident that by executing this strategy, we will achieve our goals of market leadership in investments and deliver sustainable long-term growth. Now I will hand it over to Victor who will provide a deeper look into our financial performance this quarter, and I will be back for the Q&A session.

Thanks, Maffra. Thank you all for being here today. Now we'll discuss our financial performance for the third quarter. Starting with gross revenues, we posted gross revenue of BRL 4.9 billion, a 9% growth year-over-year and 6% growth quarter-over-quarter. In retail, revenues reached BRL 3.7 billion, representing 6% growth year-over-year and 4% growth quarter-over-quarter.

Institutional revenues were stable at BRL 304 million, flat year-over-year and slightly decreased quarter-over-quarter. Corporate and Issue Servers delivering outstanding performance, reaching a historic record of BRL 729 million, a 22% growth year-over-year and 33% growth quarter-over-quarter. This was driven by strong capital markets activity, followed by our leading position in corporate client solutions, which we will discuss in more detail in the next slides. Now starting in retail revenue. The performance was mainly driven by floating from both check and investment accounts, which benefited from higher average volumes and higher interest rates during the period. And second, new verticals included in other retail, such as international investments in global accounts, which delivered strong results.

Lastly, it's important to mention that this quarter also includes the revenue of the expert event. If that, the other retail category totaling BRL 757 million, marking 24% growth year-over-year, 19% growth quarter-over-quarter, offsetting a weaker performance from other product lines due to lower DTV and shorter duration.

Now let's move to the next slide in Corporate and Issue Services. This was the best quarter in our history. The outstanding performance was driven by a pickup in DCM activity compared to the previous quarter, and the continued development of our corporate client franchise. Issue Services posted BRL 323 million, stable year-over-year and 21% growth quarter-over-quarter. Corporate revenues reached BRL 406 million, representing [ 77% ] growth year-over-year and 46% growth quarter-over-quarter. The strong growth reflects our increasing capability to deliver solutions to large corporate clients, particularly in hedging solutions.

Moving on to the next slide, we explore SG&A and efficiency ratios. SG&A expenses totaling BRL 1.7 billion in the quarter, representing 10% growth year-over-year and 7% growth quarter-over-quarter. We remain committed to invest in the areas we consider critical for long-term growth including sales force expansion, marketing and technology, as highlighted by Maffra earlier. These initiatives are designed to enhance the client journey and elevate our overall service level. While this strategy may lead to stable or slight softer efficiency ratio in the short term, we see these investments as fundamental to sustain our competitive edge over time.

Our last 12 months efficiency ratio was 34.7%. Compared to the last year, the ratio improved by 79 basis points. As usual, in the third quarter, results also reflect the impact of the expert event which owns again proved to be outstanding opportunity to connect to our stakeholders. From another angle, the impact of it in the current efficiency ratio was approximately 70 basis points.

Moving on to the next slide, let's see your EBITDA. As a result, our EBITDA was BRL 1.3 billion, representing 10% growth year-over-year and remaining sequentially stable. The EBITDA margin expanded 47 basis points on the annual comparison, while compressing 103 basis points quarter-over-quarter.

Now looking at the net income, we reached BRL 1.3 billion, a 12% growth year-over-year and 1% increase quarter-over-quarter. The net margin expanded 106 basis points on annual comparison and compressed 12 basis points sequentially, closing the third quarter of 2025 at 28.5%.

Now let's focus on capital management. This year, we have been highly active in returning capital to our shareholders. In 2025, we repurchased BRL 2 billion of which BRL 850 million occurred after the end of the third quarter, and therefore, are not reflected in the accounting metrics we are presenting today. such as ROE and EPS. Today, we are announcing the retirement of our outstanding treasury shares bought back during the year and the new BRL 1 billion share buyback program to be executed over the next 12 months. On top of that, we are also announcing a dividend of BRL 500 million to be paid in 2025. This represents BRL 2.4 billion in capital return to shareholders in 2025 approximately 50% payout if finalized our net income. If considered the new buyback program, the payout ratio would be around 7% for the year.

So let's focus on earnings per share and why we detail over the next slides. In the third quarter, our diluted EPS once again outpaced net income growth, reaching BRL 2.47 per share, supported by our activity capital distribution strategy through share buybacks. In this quarter, EPS grew 13% year-over-year and remained stable quarter-over-quarter.

On the right-hand side of the slide, ROTE stands at 28% and ROE at 23% slightly lower than last quarter, since we had the capital generation without the corresponding distribution, assuming the execution of the new $1 billion buyback program and BRL 500 million dividend payment and ROE would have been 30% and 24%, respectively.

Now moving to the next slide. To conclude my presentation, our capital ratio ended the third quarter at 21.2%, and the CET1 at 18.5% well above peers average and the regulatory requirements. This comfortable capital position gives us a strong edge to navigate different scenarios and be ready for the becoming volatility. Also, during 2026, we expect to have the opportunity to deploy capital in a more efficient manner. It's important to remember that we maintain our guidance for a BIS ratio between 16% and 19% and for the end of 2026.

Now talking about risk on the right-hand side of the slide, you can see that our RWA totaled BRL 108 billion, representing a 13% growth year-over-year and a 6% increase quarter-over-quarter. Finally, our virus stood at BRL 29 million or 12 basis points of equity. Even in a quarter of outstanding performance from our wholesale business, we maintain a very conservative risk profile. In this quarter, it's worth to mention that our balance sheet grew 6%, but adjusting for retirement plans and secured funding, it growth would have been lower than the CDI for the period.

This increase in retirement plans is associated if a one-off bulk migration we did from other insurance companies to our own, and we don't expect to see it in other quarters. Besides that, as you can see, we kept our market RWA stable and decrease our VAR sequentially, reinforcing our position as a robust ecosystem with a strong risk recycling capabilities.

And now we can go on to the Q&A.

[Operator Instructions]. [indiscernible].

I have a couple of questions here on the wholesale business results were really strong -- should we expect a similar performance in the fourth quarter? Or do think a slowdown should be expected, right? And my second question is on what Marta mentioned, right, during the call, right? The strategy to increase the warehousing book in the fourth quarter. If you can give us a little bit more detail -- because you also mentioned that corporate spreads are very low. So wouldn't that be a risky strategy in an election year Thanks.

Hello, Rosman. Thanks for your question, and good evening, everyone. So we are seeing the wholesale banking with a good performance for Q4 so as we mentioned earlier in the last call, we have seen the second half of the year is stronger than the first half of the year, especially for the wholesale bank.

Ho, Rosman, this is Victor. Talking about credit spread first. We think that the credit spreads are really tightened. And if they -- the probability is that they can go a bit more wider over the end of the year and next year. But also, there is a lot of net inflow in fixed income funds that keep putting pressure in the spreads. And it's important to remember that our strategy is to hold high-quality assets and the velocity of turnover of our portfolio is higher than the average of the industry. And we are not as susceptible as scrap spread volatility as the rest of the competition. And also in terms of RWA, we expect to sell a bit of what we bought over the third quarter. And depending on the performance of the same warehouse a bit more to go through the first quarter of 2026. As we all know, the first quarter usually is a quarter -- lack of activity in DCM. So it's important to us to have assets to sell in the beginning of the year.

Okay. Next question is from UA Finance, JPMorgan.

Just to follow up Rosman on corporate. Can you remind what was the 46? I think you mentioned hedging strategy, but I'm not sure what was it? So just trying to understand a little bit again the corporate, inside corporate insurers, the 46% quarter-over-quarter increase.

And on bonus, this line was a little bit heavier this quarter, but coming from, I would say, a softer base, right, when we go to the 9 months. I think total bonus is up 8%, 90% year-over-year, so not a big increase. But if you can comment a little bit on what to expect on people, expenses, like salaries, like just to get some idea on SG&A. I would appreciate. And if you want to comment on bonuses also, I think it's also a good point, given it was a little bit higher this quarter.

Thank you for your question. This is Victor. First, Talking about the corporate performance. It's important to remember the corporate business is tied to the DCM activity. So one of the main drivers of P&L in corporate is had solutions to company issuing debt. So for example, the company is you adapt taxes and corporate bond, inflation linked bonds, and it doesn't want the exposure inflation, it hedged against us in CDI. That's one of the business, and it's highly correlated with the same activity.

Also, another business that is really important is the originator of credit operations that will be securitized and sold to clients in the next quarters. If you go to our credit portfolio, you see that it's flattish Basically, we sold Qualsovereign bank notes, and we originated corporate operations, but those operations will be securitized and sold to clients the same as we did in other quarters. And now moving to bonus.

It's normal to see the bonus going higher after the performance of investment banking going higher the way it did over the quarter. So part of that is explained by performance in Wholesale Banking. Another part is explained by the new hires over the year. We hired almost 500 new employees, mostly on sales force expansion over the year. And this is one part of the drivers of salary growth and bond provisions.

Super clear, Victor and congrats on the net new money improvement for the quarter.

Next question is from Mario Pierry, Bank of America.

Let me ask 2 questions as well. First one, when we look at your retail revenues growing 6% year-over-year. But if we double-click on that, we see that our fixed income revenues actually contracted year-over-year. I have been contracting 2% even as the AUC grew 22%. So it means there was like significant pressure on take rate. Can you explain why that happens, right? Because when we look at fixed income, revenues were growing like 40%, I think, on average for the past like 6 quarters. So just trying to understand if there was a one-off event that impacted fixed income revenue?

And then my second question is related a little bit to what you asked but when we look at your EBIT margin, you have been expanding for just like 3 quarters, I think, in this quarter, it contracted because of the pickup in expenses and you're running below your guidance, right, your medium-term guidance of about, I think, it's 30% to -- 29% to 32%. So just trying to get a sense here also, like should we expect the trend to start to improve in the next quarters? Or do you think that the EBIT guidance it's something for more like for the end of 2026. Thank you.

This is Thiago. I will take the first question. I can answer the second one and Victor complement myself here. About the fixed income revenue, the main problem here is if you look the take rate for investments, if you compare Q4 last year to Q3 this year, it's down 10 bps overall, okay? So it's a huge draw here drawdown. And when you look only fixed income, 20 bps, okay? So it's a big decrease in take rate. And it's mainly explained because first one, mix, okay? So if you look CGs with daily liquidity, they used to represent 25% of the new locations, okay? So 25%, today is 45% because of the high ceiling rate, we are selling almost half of everything that we sell for fixed income, it's CGs with daily liquidity. When you compare the revenue we make here, it's basically a daily spread on CGS with liquidity against duration times is spread, okay? So it's a completely different revenue stream, okay?

And the second one is shorter duration, okay? So right now, everyone is only buying like a very short-term durations, okay? So when you combine the mix of more CGs with daily liquids and shorter duration, we are selling a lot more volume in fixed income but with a lower take rate.

About your second question, we are investing in sales force expansion. We are investing in SMB. We are investing in technology. So we are doing a lot of investments this year, and we are planning to do more investments next year. So I would say that still possible to get to the -- at the end of the next year to the guidance we gave but you see because in the past, I would say, 2 years or even more, we have been gaining a lot of efficient quarter after quarter. I would say that right now, we should be more flattish when you look at the next quarters because we are investing more, okay? But still -- both to get to the guidance by the end of the next year.

Okay. Next question is from Gustavo Schroden from Citi.

Hello, guys. Thanks for the opportunity. I have 2 questions as well. The first one is -- sorry to insist in this sales force that you guys mentioned. But because if I'm not wrong, you mentioned something around 500 new employees, and most of them related to sales force. But when we analyze the total number of advisers that you have, it is decreasing, right? So year-on-year and stable quarter-on-quarter at 18,200 advisers, including IFAs and XPs employees. So I'd like to understand what kind of sales force are you hiring? And if it is possible to reconcile with this total number of advisers?

And my second question is related to financial expenses. We saw decent decrease quarter-on-quarter and year-on-year, so 28% below quarter-on-quarter. 45% decrease year-on-year despite higher CD rate we could see that there was a reduction of BRL 1.5 billion in borrowings. So my question is this reduction is related to these lower borrowings or are there different reasons behind this decrease in financial expenses.

Okay. I'll take the first one. About the total number of IFAs as Victor mentioned, that we are hiring more internal advisers, okay, here, it's because -- when you look at the IFA, the B2B network, they have been converting some of their face into employees because of the change in regulation that has been happening, I would say, for over a year now.

And the second part is because we have been part of the third wave that we mentioned a lot here on quality, the way we serve clients we have been focused a lot more on quality. So more skewed IFAs, okay? So we have been I would say, even forcing some of the low-quality IFAs like should leave the network. So we have been increasing on what we call AAA advisers and we have been decreasing on what we call C and D curve of IFAs, okay? So those are the main reasons why you don't see the number of FAs growing. But as we don't open the number of what we call AAA here, but this number has been increasing. So we have been focusing more on more qualified advisers.

This is Victor taking the second part about the financial expenses. Just remembering here, we went through a reorganization of our conglomerate over the last year, changing the bank to the top of the business. And that has an important effect in financial expenses and also other revenues. So when debt that was a corporate debt inside the holding mature and it is rollover for a debt inside of the bank, it gets out of the financial expense lines and go inside of net interest margin. So it's just a geographic fact. It goes from the debt to the -- to be a reductor of revenues. And that's also why other revenues is lower quarter-over-quarter. You're going to see that the change between lines, they are closer to each other. That's the -- may affect just a geographic movement between lines. And also, it's important to note that the bank debt is much cheaper than corporate debt. So you do have this geographic movement, but also the overall cost of debt of the company is considerably lower when you compare 2024, 2025.

Next question is from Daniel Vaz from Safra.

I wanted to follow up on Mario's question on fixed income. Instead of looking on the 2% drop, I wanted to talk about the 7% drop quarter-over-quarter. I mean DCM activity improved, right? So we saw that on your Insurance Services, net new money improved warehouse of security did increase, and we had higher business days, right? So it's probably it's probable that you distribute a higher volume to the clients. So I heard you on the mix change, but this -- I mean, was this a quarter-over-quarter change? I mean this -- liquidity, went up from 25% to 45% in 1 quarter. Just wanted to touch base on that again, if you could explore a little more what the change quarter-over-quarter means?

And if I may follow up on the guidance, I wanted to check on your comment, Safra. If you're able to get on the fourth quarter of next year on your EBITDA margin instead of the full year. Is that correct? Did I understand well?

Daniel, this is Victor. Taking the first part here in fixed income. If you remember a few questions ago, I told that we sold quad sovereign banking notes from our warehouse book, and we were housed corporate bonds. So basically, that is what happened in real life when Maffra say that client is buying short-term floating rates, that is what's happening. So the products originated by the DCM markets over the quarter are still in our books, and we are going to sell them over the fourth quarter and first quarter of next year and what we saw there short-duration banking notes. That's why we see this behavior in the revenue quarter-over-quarter.

And -- sorry, in the guidance, if you can comment on the fourth quarter or full year of EBIT margin?

Yes. Sorry for that. Yes, we see that it's possible to target that next year. We don't give guidance quarter were quarter. So it's hard to say what's going to be Q1 or Q2 or Q4 next year, but we see that the 30% is still doable.

Next question is from Thiago Batista, UBS. Thiago, you may proceed.

So I have 2 questions. The first one on the buyback. The intention of the BRL 1 billion buyback is to be concluded this year. I know that depends on the price of the shares, et cetera, but the initial intention is to conclude this year? And the second one, about the IOC in the equity business. We saw that this quarter or the third Q, the IOC was basically flattish Q-over-Q. And we have the Bovespa in the outing now. I've already seen not exactly in the 3Q, but more recently, clients trying to move the money towards more risk investments like equities or not yet? Or maybe we need to see select let's say, single digits or something like this. So my question is, are you already seeing this migration from the income to high-risk investment?

Chaco, this is Victor first on the share buyback. The buyback program is open, and we are going to be buying over the next 12 months. And the same as before. We are going to wait for the best opportunity to deploy the capital and maximize the return to our shareholders. So we cannot give you an idea when it to be complete or if you'll be at the beginning of the next year or the end of this year. What I can guarantee you that we are going to be buying everything the same as we did in all the other programs reopening.

Yes. And just to complement, Victor, on the payout strategy here. If you guys see -- we still have very high bus ratio, and we mentioned that we would like to bring it down to something between 16 and 19 by the end of next year. And that's the case, but why we are not like giving more money like back to the market right now because we believe we will have good opportunities next year. It's going to be a volatile year. And for sure, we will have opportunity to do more buyback next year. So that's why we are not deploying or paying out more capital right now, okay?

About the second part of your question is we don't see a big change in mix yet, okay? Because remember that the retail clients is they are a little -- of course, it's our job here to help them not to have this behavior, but they are a little bit lagging, okay? So once we start to see rate cuts and other things, price moving up and so on, people start to move money from 1 asset class to other, okay? But we are seeing a stronger funds platform right now, especially primary offering for closed or open end funds, REITs and so on.

So the demand has been increasing for that type of products, but not yet for equities or for some other products, okay? So I would say that we are not in a point that we could say that we are seeing a lot of like a change in the portfolio. As we mentioned for fixed income, should the opposite are moving even more money to daily liquidity pods because they are seeing 15%, okay? So I would say that we are not there yet.

Okay. Next question is from Tito Labarta, Goldman Sachs.

A couple of questions also. First, a follow-up on the corporate revenues, right? You mentioned it's related to hedging solutions for companies issuing the tax exempt bonds. Is this a function of, I guess, companies just anticipating tax reform so that remains strong in the second half of the year, but potentially subsides next year? Or do you think that there's more sustainability to that? And then the second question, you sort of jump in retail inflows, right? I mean $20 billion, which is more or less what you've been saying but it was up significantly from last quarter. So was there anything significant, should we read in this is just normal volatility? Or should that begin to accelerate from here? Just any color you can give on how that continues to evolve.

Tito, the first one about corporate revenues. Hedging is related to issuance but I think the issuance they are a function of the risk of the new tax regulation but also the level of credit spreads. It's really shipped to raise debt here right now. Next year, we'll be extremely volatile. So I think components are moving around and doing whatever they need to do in terms of on this year. Also, there is not only hedging solutions. We have power trading, cash management, FX operations, the credit originate-to-sell as we commented before, I think what the hedging solution was one that gave a bit of highlights for the quarter, but there is still a lot of revenue lines inside of the car franchise.

I will take the second one about net new money. Of course, we have been doing a lot of things here, especially on what we call the third wave on increasing the level of service, the very proposition that we delivered to our clients. We mentioned a lot today on the presentation about that. So we have been democratizing the wealth service business to all our retail clients here for the past, I would say, a year or 1.5 years. So we have been developing a lot of technology CRM AI capabilities.

So I would say that the level of service that we are delivering to our clients right now, it's much better than it was a year or 2 years ago and much better than most of our competitors. Talking about, of course, here, retail clients, okay? So we are delivering a level of service that nobody provides in the industry in Brazil. That's why we are calling the third wave.

But it's early to say that, that is moving a lot the needle here, okay? So I would say that's more like a medium-term impact so we are around 20 billion. We have been saying that the level for the past quarters. I don't see any reason right now to change that for up or down here. So we are seeing BRL 20 billion as the level for the next quarters. But again, 16, 18, 22 or 23 for us is the same 20 billion, okay? So you could see 1 quarter higher than that, 1 quarter lower than that.

Okay. That's helpful, Maffra. If I can, just 1 follow-up on that, because just on the revenue guidance, right, you had said 10% for this year. I mean, expectations are that you'll probably be below that, but then also thinking on your 2026 guidance. The bottom end BRL 22.8 billion would be like a 20% jump. I mean is that still like what would need to happen for that to be realized? Or is that likely some downside risk just given the tougher macro that we've seen since you initially gave the guidance?

Yes. Yes. As we mentioned in the last earnings call, the second half of this year is going to be stronger than the first half in terms of growth, top line growth but as the first half was soft, it's going to be hard for us to get to the 10%, but we can get close to that.

For 2026, I would say it's almost the same rationale here because as 2025 was a little bit soft. Next year, we are going through -- we have to grow, not to give like a number here, but 17% to 20%, okay, still doable, but we might be a little bit short, like to the guidance next year, but if you are short, it's for a bit, not so much.

Okay. Next question is from Marcelo Mizrahi, Bradesco BBI. Marcelo, you may proceed.

So my question is -- the first one is regarding the workplace. I wanted to understand how the work days impacted the revenues in terms of the other retail revenues in terms of -- as revenues. So what's the mean back here? And if looking forward, if we will see a reduction of these lines. And the other question is regarding the investments. So you guys are talking about investment in technologies. We were seeing a lot of platforms investing in AI tools digital rules and also the channel totally -- digital channel. So it's -- are you guys already working on that using AI to adviser to give advisers to the clients, especially to the kinds that the lower income are the lower tickets to bring them a better service and to increase engagement and the revenues.

This is Victor. Thank you for your question. First year on business base. As expected, business days gave us a positive impact in terms of floating and trading days. But this was compensating the negative way in terms of lower DTV for axis and the shortening duration that Maffra explained in the fixed income platform. So those effects goes in positive directions. And the mix overcomes the in terms of business days, that's basically what happens. But that's why we see action fixed income, EBITDA and other retail, which have the floating company a bit up over the quarter.

On the second question, Mr. Mizrahi, we have been working a lot with AI on different verticals here. I would I will mention some of them. The first one is internal productivity. It can be for engineers. It can be for management people. So we have been working on operations, on customer experience. So we have a lot of use case live right now. more on the productivity side.

The second one, we have been trying -- I would say, the idea here is not like to replace advisers but how we enhance our advisers using different agents. It can be a relationship agent, AI agents. Of course, it can be transactional agents. So we have been creating a lot of this type of agents to give more productivity and to increase the level of service that we deliver to our customers.

And I would say a third one, we haven't been investing a lot on portfolio allocation of our customers. So we have been creating more rules we have been creating a centralized portfolio allocation, and we are using a lot of technology to make it happen. So there are many use case here, some already at scale, some at very early stage.

Another one that -- it's already at scale. Today, we listen, read, hear everything that our advisers, especially internal advisers today, 100% of them. And we can classify all the conversations, all the interactions with our customers. It's a product offering, if it's only a relationship activity. So the level of information and sales management that we have today, it's very, very high. and we will continue to invest on that. But again, not to replace advisers, okay, but to enhance them.

Of course, when you go to very small clients, more like -- style or what we call here self-direct clients, then you can have like a fully deployed AI solution, but that's a very small part of our business today. It could grow in the future. But again, the focus here is how we enhance the advisers and how we free them like to focus 100% of their time on relationship, not like on operations or allocation or other actives that don't generate value for our customers.

Okay. We're up the hour. So I would like to thank you once again for participating on our earnings call. And the our team will be more than happy to attend any further questions you may have. Have a good night, and we're going to keep in touch. Thank you.

Good evening, everyone. I'm Andre Parize , Investor Relations Officer at XP, and 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 Second Quarter 2025 Earnings Call.

Today's presentation will be led by our CEO, Thiago Maffra; and our CFO, Victor Mansur, who will both be available for the Q&A session right after the presentation. [Operator Instructions].

Before we begin, please refer to additional information regarding forward-looking statements. You can also find more information in the SEC filings section of our IR website.

Now I will turn it over to Thiago Maffra. Good afternoon, Thiago.

Thank you, Andre. Good evening, everyone. I appreciate you all joining us today for the second quarter 2025 earnings call. So half year is already behind us, but there is much more to come. We are still working hard, I would say, in obsessed way to keep evolving our clients' journey -- and product offering. 2025 has demonstrated to be more challenged than we estimated. Demanding more efforts from all our teams to keep growing our business in a profitable way. As a result, we are continuously increasing our profitability.

Now analyzing the main KPIs. The first one is client assets, AUM and AUA, for which we posted BRL 1.9 trillion, up 17% year-over-year. Total advisers accounted for 18,200 represents flat figures year-over-year. And on active clients, we posted 4.7 million clients with 2% growth year-over-year. During the quarter, gross revenues marked BRL 4.7 billion, with a 4% growth year-over-year. [ EBITDA ] year-over-year is 5% lower, reaching BRL 1.3 billion, mainly because last year, we had positive impacts from overhead, turning this quarter, not like-for-like. And on the bottom line, it's another record. We achieved the highest net income in our history, reaching BRL 1.321 billion. It represents a 18% year-over-year growth.

On profitability, we achieved 24.4% ROE during the quarter, at 223 bps expansion versus second quarter '24. 10 out of 11 quarters posting consecutive growth. This means 10 out of 11 quarters posting consecutive growth. On capital ratio, we printed a comfortable level at 20.1%. It represented an increase of 110 bps quarter-over-quarter.

Regarding diluted EPS, we posted 22% growth year-over-year, another quarter in which it grew faster than net income, driven by our share buyback program execution. As we speak we still have a share buyback program of BRL 1 billion to be executed until next year. As I mentioned during last quarters, our capital distribution plan is aligned with our guidance and we will operate the business with a big ratio between 16% and 19%.

Now let's see more details on the next slide. Since last quarter, we have been sharing new -- to provide a better understanding of our ecosystem, considering institutional clients in total client assets and provided assets under management or asset management business and AA from our fund administration business. said that our total clients AUM and AUA comprehend almost BRL 1.9 trillion, which represented a 17% growth year-over-year.

On the right hand of the slide is presented how at new money evolved. This net new money is only related to client assets. This quarter, we marked $16 billion in retail net new money and minus BRL 6 billion in corporate and institutional. It's important to mention that during the second quarter, SMEs and large corporates, net new money reflected the dynamics of the current macro scenario.

First, due to payment of higher interest expense, companies have less liquidity than before. Second, in order to minimize this liquidity constraint, some companies withdrew part of their investments with us as they were used in [ rice prosti ] for credit lines with other players. On the retail side, the lower tax-exempt volumes in GCM impacted primary offerings allocation. And consequently, the net new money coming from individuals. We keep developing our product offering and capabilities to constantly offer the best investment alternatives to clients, which should drive higher net new money in the long term. I would say that the current environment has proven to be more challenging than we expected at the beginning of the year, especially for investment banking origination activity. However, we still have a better GCM pipeline for the second half of the year, new investment products offering and other initiatives supporting our efforts to achieve retail net new money, averaging BRL 20 billion per quarter this year.

On the next slide, let's delve into our retail strategy. Here, I would like to address some topics which are connected to our business model. Today, the company presents a more complete ecosystem with retail, institutional and corporate divisions fully integrated to generate investment opportunities. This benefits us in many instances. One of them is the fixed income platform in which we are much more complete now. Being one, the largest distributor of midsized banks time deposits; second, innovative in developing new instruments such as the bond repex structured notes. And third, also having a robust wholesale bank franchise with a corporate secured book to serve retail clients.

As part of our business model, to engage clients on another level, we also launched new verticals in strengthening our investment portfolio, while attending clients to demand in banking, insurance, retirement plans, global account, FX and now consortium. This competitive ecosystem enabled us to present higher profitability during the last years. And there is much more to do since we will keep investing in channel diversification, expanding sales teams, improving our product platform experience with a more accurate offering and improving our intelligent segmentation.

Recently, we also launched new guidelines to the IFAs, sharing our knowledge, tools and methodologies, focusing on an opportunity to increase productivity, responsiveness and efficiency. And independently, if it's true, XP internal teams or , we also developed and agreed in a new and more comprehensive way to serve our clients. New rules are aligned with 1 objective, to improve client experience. Our main goal is to keep serving clients with excellence. No matter in which channel or remuneration model they have chosen.

With this new way of growing business, we are convinced that we have a more sustainable revenue model and profitability is a consequence. For sure, the current diversified ecosystem defines XP as a defensive business with long-term growth. We are confident that our unique business model will keep evolving to achieve our long-term goals, which is to become the leader in investments in Brazil.

Moving to the next slide. We see on the left-hand side how we serve clients with different models, channels and how XP is remunerated.

By the way, we have already launched fee-based model a long time ago anticipating what's becoming reality today. It means that IFAs and internal advisers can attend clients with transactional fees or fee-based model according to clients' preference. We also have RIAs and consultants, which work in a fee-based model, at changing clients with asset custody in different platforms. What we see today from the client perspective, it's a higher demand for a fee-based model when compared to the recent past. Today, the fee-based model represents only 5% of our total client assets.

Looking at developed markets, for example, the U.S., the fee-based model achieved around 50% share of clients' assets. If this is a train in Brazil, we are ready to serve our clients. Our capacity to attend clients with different models differentiate us from competitors, and it translated in more share of wallet and longer lifetime.

Moving now to the next slide about retail cross-sell. As we have stated before, we have implemented new initiatives and products to diversify our revenue streams during the last years. Starting with credit card, it grew 8% year-over-year, marking BRL 12.4 billion in TPV during the quarter. As we anticipated last quarter, we launched new products targeting affluent and private banking clients. We estimate that with the new value proposition, cards should accelerate in the next years.

Life insurance retained premiums posted 45% growth year-over-year. As we said in recent quarters, our insurance business is a growth avenue which stood at its early stage. Since it presents a huge penetration potential, we understand that we will keep growing at a fast pace on a quarterly basis. All retirement plans, our client assets posted 15% growth year-over-year on the second quarter and reached BRL 86 billion. We keep expanding our sales force to increase our relevance in this industry. Since our market share is mid-single digit, and there is a relevant addressable market to penetrate during the next years.

In new products, we consider FX, global investments, digital count and consortium. Altogether, they presented a 146% growth year-over-year. with revenues reaching BRL 256 million this quarter. It's important to note that consortium came from scratch, and it's gaining traction month after month.

Moving to the next slide, we will address our wholesale bank evolution. Taking GCM into consideration, this quarter, we saw decent industry volumes, but not close to the last years. Coupled with that, some players -- more aggressive in pricing, trying to gain market share, and therefore, resulting in lower fees.

Finally, tax incentivized products have lost share in total industry volumes during the quarter. For the next quarter, pipeline is solid. We have more opportunities, and there is a chance to reaccelerate our revenue growth. Regarding XP's broker dealer, it was another positive quarter and we became the leader in local industry with 17% market share.

As we saw this quarter, we still expect to see improvements bit by bit until 2026. This quarter, we kept the same size of our corporate secured book with BRL 34 billion. Bear in mind that we can have a change in tax rules, we can impact currently tax extent fixed income instruments. We are now expecting to increase this book during the year.

Rationale behind this is that companies will try to anticipate their debt issuance before the change. Also for next year with elections inside we are likely to see an increasing volatility, and therefore, a reduction in corporate clients' appetite for new issuance. So our strategy, that being the case is to keep this warehouse book and she will sell it to our retail clients during the next year.

To conclude my presentation, I would like to reinforce that our innovative offering advisory model, costs and capital discipline are translating into a higher profitability, even considering the more challenging scenario. Our ecosystem is way more complete than years ago, and there is a big opportunity in front of us to expand our core business, our retail cross-sell and our -- activity. We are confident that by executing this, we reached goals regarding market leadership in investments and also regarding our long-term growth.

Now I will hand it over to Victor we will provide a deeper look into our financial performance this quarter, and I will be back for the Q&A session.

Thank you, Maffra. Good evening, everyone. It's a pleasure to be here with you to discuss our financial performance for the second quarter of 2025. Starting if total gross revenues Total gross revenues for the quarter reached BRL 4.7 billion, representing a 4% increase year-over-year and a 2% increase quarter-over-quarter. It was another quarter that retail gained participation in total revenues, now representing 77% out of total. In this quarter, once again, our main driver for retail growth year-over-year where fixed income and other retail, which includes retail new verticals, such as global accounts and consortium.

On the oil sale bank, corporate was the highlight, partially offsetting the negative impacts on issue services due to a tough comp from 2Q '24. I will share more details during the next slides. -- retail revenue posted BRL 3.6 billion in the quarter, a 9% growth year-over-year and a 4% growth quarter-over-quarter. The quarter growth was mainly driven by equities which presented a higher ADTV in the period. Equity Sprint is slightly more than BRL 1 billion, if 7% grew quarter-over-quarter.

On a year-over-year perspective, fixed income was the main contributor, growing 20% and reaching BRL 988 million in revenue. It's important to mention that in other retail concept, the main contributor is the float remuneration where we had higher average volumes of higher interest rates during the quarter.

Now let's move to the next slide in corporate and issue services. Before moving to the quarterly results, it's important to mention that in 2Q '24, we posted all-time high corporate exchange services revenues backed by a strong -- activity. Therefore, we have a tough comp for this quarter. Issue services presented BRL 268 million, minus 30% year-over-year and a minus 5% quarter-over-quarter.

On the other hand, Corporate revenues posted a solid 14% increase year-over-year and was flat quarter-over-quarter. It reached BRL 279 supported by our capacity to offer different solutions to our clients, mainly if derivatives.

Moving on to the next slides, we will explore SG&A and efficiency ratios. Our SG&A expense totaled BRL 1.56 billion in this quarter. It's a 10% growth year-over-year and up quarter-over-quarter. We keep investing in our business. And this quarter, we had a higher expense in the non-people category, most of it explained by marketing and technology investments.

During the quarter, despite the slow pace in our revenue growth, our operational cost discipline supported our efficiency ratio at 34.5% last 12 months. When compared to last year, our efficiency ratio improved 161 basis points. We will keep our plan to improve our business efficiency, and this will come in parallel with new investments that will continue to be made aiming to enhance our tech platform, our product offerings and -- expansion.

Moving to the next slide, let's see our EBIT. Just to recap, last year, we had positive EBITDA impact from the overhead related to the head of certain assets and liabilities. Therefore, EBIT is not like-for-like annual comparison. On 2Q '25, we printed BRL 1.3 billion EBIT, which represented a 4% increase quarter-over-quarter, even considering the issue impact on our revenues, we are able to expand our EBIT margin by 50 basis points.

On the next slide, we see the net income. Net income achieved BRL 1.3 billion, an 18% growth year-over-year and a 7% growth quarter-over-quarter. Net margin expanded by approximately 130 basis points quarter-over-quarter and 320 basis points year-over-year, reaching 29.7% in '25.

In our revenue mix for this quarter, higher secondary market activity compensated lower volumes of investment banking, impacting our effective tax rate. This translated into a new record high net income for a quarter with significant EPS growth.

Let's focus on earnings per share and ROE details over the next slides. Our diluted EPS in 2Q '25 reached BRL 2.46 per share. As we continue the execution of our share buyback program, canceling their respective shares acquired, the EPS growth pace was again faster than our net income growth. In the quarter, our diluted EPS posted 22% growth, while our net income grew 18%, both on a year-over-year basis. OTE market 3.1%, 209 basis points higher year-over-year.

Our ROE grew yearly on the quarterly basis reaching 24.4%. This represents 230 basis points increase in comparison to same quarter last year. These numbers I have just mentioned are important indicators that we keep generating consistent income returns to our shareholders.

Finally, moving to capital management. As we have planned, we keep our target of distributing dividends and executing share by programs. Combined their volumes should be above 50% of net income for 2025 and '26. We already have a share buyback program of BRL 1 billion to be executed until next year, and new announcements will be made according to the Board of Directors' decision.

Moving to the second part of capital management on the next slide. This is the last top of my presentation. And we can see on the left-hand side that our BIS ratio in a very comfortable level of 20.1%. On the same rationale, our CET1 is at 18.5% and which is way higher than peer's average if 12%. On the high hand side of the slide, we can see that our total RWA to total asset ratio was 27%. And which represents the third reduction in a row and 4% lower year-over-year. Total RWA remained steady quarter-over-quarter and grew 9.8% year-over-year. reaching BRL 101 billion. As I said last quarter, RWA should grow at a moderate pace when compared to net income, and it was the case in this quarter. Since net income posted 18% growth year-over-year. As Maffra said before, the potential new tax regulation may change the DCM dynamics and, therefore, impacting our willingness to our house more assets to distribute during the 4Q and 2026.

It's important to highlight that our VAR market, 13 basis points of our equity or BRL 28 million, demonstrating our risk discipline since it was 4% lower year-over-year.

And now we can go to the Q&A.

Okay. We're going to start our Q&A session. And the first question is from Eduardo Rosman from BTG.

My question here is on capital generation and dividends and buybacks, right? So just help us understand a little bit more your capital generation because it seems that you've been able to improve it this quarter. Actually, you are growing your capital base, I think, faster than your net income, right? So -- but you're still way below the level this year in the level of buybacks and dividends when compared to last year, right? So can we see an acceleration of that now in the second quarter? How do you see that? We see that you have this soft guidance of above 50% for 2025 and 2026. But can you please help us with more details?

Thank you for your question. dividing the answer here in some parts. First one, as we anticipated, the net income would grow a bit faster than the RWA over the year, delivering some leverage in capital terms. And I think that was the case. Also, as you commented, we did distribute as much of the net income as we generated over this quarter.

The second part, we are still capturing a bit of leverage over the 496 new regulation. And the benefits will be delivered over the year in the DRC and the market risk, principally in the credit spread risk inside of market risk.

The second part will be delivered over the risk-weighted assets on operational risk, also we expect to see that over the next quarters. Another part here, talking about the trend for the year, we expect to see the RWA growing is lower than the net income and the new tax regulation may change a bit the dams of the DCM market, and depending on how it goes, we may a warehouse a bit faster than initially expected to take advantage of the demand from clients to issue before the regulation takes place in 2026.

Even though we don't expect any of those to impact our targeting -- our target to pay more than 50% of our profit this year because we still have a lot of spare capital. And remember here, our CET1 ratio is at 18% and the average of the industry is at 12%. So a lot of space. So we may announce the rest of the payout over the rest of the year. And the disclosure between dividends and buybacks, depending on the price of the stock, and we need to discuss the asset for Board.

Next question is from our Yuri Fernandes, JPMorgan.

I have a question regarding your corporate -- like corporate lending strategy. I know it's some -- for you. but you have been discussing new products, new strategies. And a question I have is if corporate planning matters for the entire acquisition When we go to your [ AUC ], we see that the commercial in the portion like not growing as much in like -- you see a net new money to time flow. So just trying to understand is how is your perception about corporate planning, and if you believe it is going to be something that you may see for your equity and or your traffic.

Could you repeat the question? We couldn't hear in the beginning. Sorry about that.

No, let me stick closer to the mic here. So I would like to understand a little bit about corporate lending. If you believe corporate lending is important for your strategy overall.

This is Victor. Thank you for the question. Our idea in corporate lending is the same as other products we originate to sell. You may see the corporate book growing, but everything that we put in, we expect to put out at the same moment in time. So the growth you see in the credit portfolio is exactly that. The portfolio grew hopefully BRL 3 billion, and that will go under a securitization and we're going to sell those assets over the next quarters.

Thank you, Mr. Victor. But I don't believe like being more or less active here, it's could be more helpful for your operation.

Yes. Yes, it could. But the same as capital markets, we have our risk appetite, and we are buying credit to sell or originate a security to sell. It occupies the same risk space. So we are not going to increase our portfolio over our risk appetite because of any other strategy because they use the same pocket.

Okay. Next question is from Thiago Batista, UBS.

I have 2 questions. Maffra, in the beginning, you commented about the new initiatives to try to speed up the net money going to in the second half of the year. Can you give a little bit of more details about those initiatives? And the second one about the guidance for next year, are you still comfortable with the guidance that you gave, I would say, 2 or 3 years ago. If you look to consensus for this year on top line, consist -- something close to BRL 20 billion -- so to achieve the low end, you need to expand [ 40% -- 4% ] next year. It seems feasible, but I wanted to hear for you guys if the guidance for next year is still achievable?

Thank you for the question, Thiago. The first question about net new money. As we mentioned on the presentation, we still see the BRL 20 billion per quarter in retail as a reasonable level for the next quarters. Of course, if we see a change in the macro environment starting interest rate cuts or something like that, we should see the BRL 20 billion accelerating. But for now, that's the level that we are comfortable. Of course, this quarter, it was a little bit tougher on SMEs and corporate lending and corporate segment, but we are confident that the BRL 20 billion is -- it's a good stable level.

How we get there? There are a lot of initiatives in the company. If you go back a few years, I would say that the main one -- diversification back in 2021, we only had 1 channel, what we call the B2B the IFA channel. Today, we have the internal advisers. We have the RIA model. So if you look at the numbers today, more than half of the net new money kind of new channels. And we keep increasing the number of internal advisers, the number of IFAs on our network. So expansion is one of the levers here.

The second one, when you have a tougher environment and higher interest rates competing with CGs from the banks, especially the tax exempt ones, it's not that easy. So all the time, we are like creating new products to compete with the banks. We just some new products here this quarter. They are performing very well. It's a type of fund with a senior tranche, and it's a slick rate here and tax exempt. So it's a very good one. So we are all the time trying to create products to compete with the banks. And we do also partnership with some of the public banks and some other banks through auctions or to bilateral distribution. So all the time, we are trying to originate products.

I would say the third one and probably the most short-term and effective 2 here it's how we increase the productivity of our IFAs. So we have been investing a lot of time, as I said on the first quarter helping the channel to increase product through technology, through sales management. We have some people in some of the operations, and we are seeing the number is starting to pick up.

And the last one, but it's more like, I would say, medium term, we have been investing a lot on increasing the level of -- seed the way of serving our clients through financial planning through wealth planning, succession, tax planning and so on. We have created our own internal models. We have training all the FAs. What I would say here is more like a medium term, especially on the current scenario where buying a CG at 15%. It's probably a good option for some of the investors, and it's harder to make them move to XP, but on the medium term and long term, for medium the biggest opportunity we have, like increase in the way of serving in the market and creating a new level of servicing investing in Brazil.

And the second question was guidance for this year. Yes, yes, we are still pursuing the guidance for next year. Of course, right now, we are like pursuing the bottom of the guidance but we are still pursuing for this year. We believe that the number for revenue that we are pursuing is still around 10%. Of course, you saw the numbers for the first half of the year. They are a little bit lower, 5.5% against 10%, but we are very confident that the numbers will accelerate on the second half and the growth rate will be higher in the second half than the first one.

Okay. Next question is from Mario Pierry, Bank of America.

Guys. can you give us a little bit more color on inflows so far in the third quarter? Because again, it sounds as if you're confident that you can return to this BRL 20 billion per quarter. Are you seeing -- have you seen so far in the first half of this quarter, a number close to the level that gives you confidence? So that's my first question.

My second question is related to your EBIT margin. Yes, continues to improve. However, you are still below, right, your medium-term guidance, and it seems like revenues are growing a little less than you anticipated even though you're still maintaining the plus 10% for this year. Is there anything you can do on the cost side if the revenues don't come through this year?

Thank you so much for the question. We'll take the first one. We cannot talk about the net new money for the quarter so far. But my answer for you will be we are confident in delivering the BRL 20 billion or around BRL 20 billion for the next quarters, as I mentioned before.

Mario, taking the second part here about EBITDA and SG&A. First, talking about EBIT, our product and EBIT depends on the product mix, as we discussed before. And also the tax rate. And the trend in both of them should be trading around this quarter if the market keeps the way it is. And talking about SG&A, we delivered a lot of reduction in the efficiency ratio over the last 2 years, almost 400 basis points. Since we keep investing in strategic care as new advisers and technology, and you name it, we may see the index more flattish over this year. And -- to reinforce our commence cost control and efficiency even though, but we are not stopped investing in our core because of a bit more of unpredictable levels of revenue coming from the wholesale banking also being size. As Maffra said, 2026, there is enough time to the end of 2026. And for now, we are comfortable if the levels.

Okay. That's clear. Let me rephrase the first question then. When we look at inflows during the second quarter, did you see an improving pattern throughout the quarter on a monthly basis? Are you seeing flows improving? Or do you see them improving in the quarter? Or is it relatively the same amount of inflows per month?

Mario, I will give you the same answer that I gave before. I believe we can deliver the BRL 20 billion. If you get the last quarter, it was BRL 16 billion. I imagine that one customer or 2 could make the difference here. So billion. It's the number here and around BRL 20 billion, it could be a little bit higher or a little bit lower, okay? But that's the pace right now.

Next question is from Marcelo Mizrahi, BB.

Hello, everyone. Thank you for the opportunity to do the question here. So my question is regarding, again, about the corporate portfolio. which was a huge growth in a quarterly basis and not too much on a yearly basis. But just to understand what's the drip up that's credit, what's happening exactly here. And looking forward, another question is regarding the net new money of the corporates. To understand, if there any new strategy here, if there are any news here to justify this net new money negative on the corporate side.

Victor here. The first part -- sorry, the first part about credit portfolio. As we said before, those are credit we originated to sell. So basically, those are operations we did with corporates, and we originate receivables that will be securitized and then sold to our client base. That's something that we did before over the other quarters. and it's the same that we're going to do again. So we expect to sell that.

And talking about the corporate and net new money, I think the problem here is the dynamics of the market. We are seeing -- we begin to see that in the first quarter and then the trend in -- bit in the second quarter. What we are seeing, the banks that give crash to the companies, they are asking for reciprocity in terms of investments to deliver some credit lines. Since we are not in this business and we are not able to give the main product that is created, we are seeing the money flow to banks that usually have some products as cash flows, anticipation of cards and et cetera. So that's basically the case.

Moving to the next question Tito Labarta from Goldman.

Thanks for the call and taking your questions. Firstly, just following up a little bit more on the revenue growth, right? I mean you're maintaining the [ 7% ] this year around 10% -- it should accelerate in the second half of the year. If you break that down, right, retail growing 9% year-over-year so that's a big closure. I guess, first, do you think retail in and of itself will accelerate in the second half of the year? Or two, is it more the Issuer Services, the corporate and of the other lines you expect? I mean those obviously set accelerate given the certain somewhat weak first half of the year. But just if you could break out been retail and other revenues and which lines to drive that revenue growth posted by 10%?

Tito, this is Victor. So basically, we can break that revenue growth between the first half of the year and the second half if 3 factors. The first one is very easy to explain. We have 6% more business days. So more business days. We have more trading days more interest rates over capital and client cash and also a higher silicate in the second half of the year against the first. That's the first part of the explanation.

The second one is the new verticals and new advisers. So basically, we keep hiring advisers, and we have a lot of products that are still roll out and are growing a lot as international investments, consortium and and other products in the new verticals portfolio.

And the last one that is more volatile is the product mix. If we have a second quarter, if a DCM that is stronger and more primary offering from funds we may see a lift in retail revenues and also issued service revenues. So basically, those are the 3 components. And by we are expecting to have higher revenues in the second half than the first.

Great. That's helpful, Vic. Just a quick follow-up. Maybe on the fixed income revenues still strongly 20% year-over-year, although it did fall a little bit in the quarter. I mean, you mentioned higher rates. How do you think about -- are you getting to sort of like the peak level on the fixed income -- or can that still continue to outpace the other segments, just on a relative basis, how you see that thinking...

Okay. To I heard the first part of the question, but the second was a bit confusing here, but I will try to answer here. First, in fixed income it's important to mention that for retail clients, we are in the highest ever circulating in almost 20 years. So we are in the highest level of the cycle. So in the perception of the clients, they never had interest spot interest rates that's as high as now.

So why is it important to mention that because clients, they don't go longer in duration when that happens. If this is a slope in the interest rate curve. So what we are seeing is increasing in volume, but a decreasing ROE given that duration profile. So when interest rate starts falling or the interest rate has a more normal shape we may see the duration going higher again and the ROA increasing, but that's a bit of the dynamics of fixed income right now.

And what can change that over the second half of the year? Is the DC market and the primary offerings that may go to market if the pipeline goes as it is because of the tax regulation. So a lot of primary offerings attract clients and we may see they get longer in duration again. So basically, we expect the fixed income line to keep your performance well. And depending on the primary market in DCM, when we see this number a bit higher.

Next question is from Siraj from Citi.

I have 2 questions here. My first one is related to nonpeople-related expenses. We saw a 38% year-on-year increase. I know that it was explained by marketing and also technology, but it seemed a little bit too much for me. And also, the second one is related to tax how the tax increase, especially on offshore funds has been involved? And what drove the positive income tax rate for this quarter?

Okay. Thank you for your question. First here talking about SG&A. We had a lot of investments in marketing. We had some events that are the first time that we're doing the size that we did. We had the B2B experience is even for all our IFA network outside of Brazil, where we announced some important measures for the year.

And second is the GAF agri business event here in Brazil that we sponsored and it's very important to us because we get closer to the clients that issue taxes and notes corporations that are able to issue taxes notes. Also, investments in market to get our reputation a bit more stronger and more visible over all brands and newspapers and et cetera. In terms of technology, it's one-off events that we did in terms of cloud and other kinds of tech. And talking about the trend over the year.

Keep in mind, the next quarter, we have our main event of the year, the expert, so also another quarter, if no people expenses are higher than comparison quarter-over-quarter.

Moving to tax rates. I think we talked a few opportunities that given that of the market and the product mix, if the market-making activity and secondary market a bit more stronger than investment banking and broker-dealer revenues, that our tax rate should be trading around 15 and that was basically the case. We closed it ring something over the last 12 months. And if the product mix keep the way it is, that's the number that we may see over the year.

But as related to offshore tax, the potential increase, what thoughts?

Okay. Perfect. I think as any other financial institution in Brazil, there is a lot of ways to plan our tax structure, and we are confident that the impact will be marginal in your business.

Next question is from Neha Agarwala from HSBC.

Just once again, sorry to go back to this, but the corporate net new money was significantly weak versus what we saw and have seen in the previous quarters. I understand the volatility, but anything specific this quarter that led to this big decline compared to previous quarter and should we expect more of that next quarter? Or was this like a one-off trend with some one-off moves? And my second question is you talked a bit about the fee-based model that's only 5% of your AUC and that's been growing. Can you talk a bit more about what impact we could see from that on your take rate, if any?

Okay. Thank you, Neha. I will take the first one. I think the corporate dynamics is a bit there what I said. If the banks that give credit to their clients keep asking for investments in terms of reciprocity, we may suffer a bit more in the 3Q or 4Q since we end up going to this business. But also, it's important to remember that the ROA of this money is extremely low. So the impact in revenues to losing that money, they are not relevant. But it's very hard to predict what we are going to see over the next quarters, as you say, these are more volatile cash.

This is Thiago. Thank you for your question. I will take the second part. When I think about fee-based model, I believe there is an evolution about the model in Brazil. If we get the U.S. market, for example, today, if you look in terms of AUC is 70-30, but in terms of revenues, it's like 50-50, okay? In Brazil, as I mentioned, is still very small, okay? But it is growing.

As I mentioned in the presentation, today, we are prepared for -- to offer to our clients any kind of auto consultancy, fee-based IFA model, transactional base and model, we can serve our clients in different ways and charge in different ways, okay? So we are agnostic, and we offer what's best for our clients.

What we expect for the next years? As I mentioned at the beginning of the year, this year was to grow, I would say, from 3%, 4% to 7%, 8%, okay? So it's growing. But it's going to be a long journey here. It's not going to happen like one day to the other, but will grow. And Again, we are the best platform to offer all the models to our clients. And we believe being agnostic to models is real differentiation to serve our clients better.

But thinking about revenues, if you look only the take rate it goes down a little bit, not a lot, but it goes down, okay? But usually, it comes with a higher share of wallet. So usually when we start to serve a client through a fee-based model or through consolidation of funds outside of usually, the AUC or the wallet or all the money that we oversee, if it's not 100% here because today, we offer that model, we can consolidate what's outside of fact.

Usually, you make more money or I would say, equal money in terms of revenue because increased the size of the wallet, okay? So I would say if in the next quarters or years, we'll start to see the take rate going a little bit down, but at a very slow pace, but the share of wallet per client will increase. and we will compensate the lower take rate.

Okay. Next question is from Pedro Leduc from BBA. Leduc, you may proceed.

Okay. Good evening, everyone. I would like to explore the gross margin little bit more expanded Q-on-Q when I try to look at the moving pieces here. IFA commission incentives get nicely diluted. So I was trying to dig into this trend a little bit more, what drove it, if it was related to maybe the lower pace of net new money or the mix of your revenue movements, more equities less fixed income trying to get a sense of what is driving this gross margin expansion and how to think about it in the second half?

Thank you for your question. I think here first talking about silence. As we said before, the expected credit losses should be trading a bit lower than last quarter, and that trend should remain like that, around BRL 90 million to BRL 100 million. And the second point was a bit higher than average sales tax and that should go back to the average and not expect the number to go, it should be as high as that. And the margin should go as normalizing when you look in the last 12 months.

Yes. And channel mix is also important to mention, and as the internal as far as keep growing. But also, that's a trend that you're going to see improving over quarters. But if you look at the last 12 months, that's the pace that should be expanded for the rest of the year.

Next question is from Daniel Vaz from Banco Safra.

In rich opportunities, you mentioned that the B2C productivity has been much stronger than the B2B, right? So the B2C has been a large focus recently. And you standardize probably an approach for selling and for the sales team, right? So it seems more well structured right now. When it comes to the B2B, I think the productivity has deteriorated like over the years. So I want to hear from you first, if you're seeing net outflows from this channel from the B2B. And secondly, if you could tell us, submit your diagnostic right on the B2B channel, if you need a higher focus right now to maybe refresh or review this model. So this has been in the press recently regarding M&A, on the advisory offices that mandates would be good from you the diagnostics queue.

Thank you for the question. As we have said in the past, for us, it's not one channel or other. We believe in having multiple channels for different reasons. But when we look at the B2B channel the specifically, as you mentioned, the productivity was very low. It's too low when compared like to 2 years ago, 1.5 years or more ago. But it's getting back. It's improving bit by bit. It's not going to change a lot from 1 quarter to the other, but it's improving. So everything that we have been done a lot of efforts and energy that we have put on the channel since last -- the end of last year and more specifically at the beginning of this year, it's paying off, and we are starting to see the performance of B2B channel improving. So that's why we are confident on the BRL 20 billion, okay.

Okay. So just a follow-up. So a refresh or a review in this -- the way you operate in this model, right, as you did in B2C

.

Well, it's just a normal evolution. You have like to evolve the model. We just announced back in on the B2B experience, the big event that we do annually for the B2B channel. This was in Mendoza. And we announced some change on the way of serving clients. So I would say, minimal standards of serving our clients. So allocation, number and was points of contact with the customers. And so I would say more like franchise model where we have minimal standards, and we just announced that like 2 months ago. So it's an evolution. It's not like a big change.

Okay. We are out of time. So in the name of the company, I'd like to thank you all for participating on our second quarter 2025 earnings call. Any further questions will be more than welcome. Just look for the IR team, and we keep in touch and see you soon. Thank you very much.