Brazilian broker XP’s profit gains from higher assets under custody

(Reuters) – XP Inc posted a marginal soar in second-quarter adjusted revenue because the Brazilian dealer gained from a surge in property beneath custody that offset a slowdown in inflows as a result of larger rates of interest.

Final week, Brazil’s central financial institution raised its key rate of interest by half a share level to battle the impacts of gasoline and meals shocks which have stored client costs rising above 10% a 12 months whilst development stays subdued.

The nation’s largest brokerage stated its internet inflows of 43 billion reais ($8.36 billion) have been 43% decrease from a 12 months in the past, whereas the entire buy worth on XP’s bank card rose 161% to five.5 billion reais.

Belongings beneath custody rose 4% to 846 billion reais as individuals poured cash into its various vary of merchandise akin to bonds, derivatives and pension funds, whereas energetic consumer numbers rose 16%.

The corporate’s adjusted internet earnings rose 1% to 1.05 billion reais within the second quarter and internet income jumped 14%.

Retail gross income rose 14% to 2.79 billion reais, whereas institutional income noticed a 16% soar to 436 million reais.

($1 = 5.1454 reais)

(Reporting by Mehnaz Yasmin in Bengaluru; Modifying by Maju Samuel)