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XP remains attentive to new acquisition opportunities, says CFO Bruno Constantino

August 24, 2020
Por
Adriana Cotias
Adriana Cotias
Repórter de Finanças
📷
headtopics.com
Chief investment officer of the company believes that the disruption made in the retail investment market can be replicated wholesale.
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After making a series of acquisitions in the first half to reinforce its structure, XP Inc. can still evaluate new businesses, according to Bruno Constantino, chief investment officer of the company.

"In fact, the ecosystem continues to be strengthened," he said in a conference call with the press. “We have an active area of ​​proprietary M&A, attentive to opportunities, making the experience even better, whether for individuals, institutional investors, independent assets, or for the corporate sector.”

During the first months of the year, XP announced the purchase of control of the investment consolidator Fliper, which prepares the company for the regulatory demands of “open banking”; the DM10 insurance fintech; the partnership with Vert to create DuAgro, which targets the rural producers segment, in addition to the acquisition of Antecipa, which operates in the receivables prepayment market.

Constantino stressed that the disruption made in the retail investment market can be replicated in the wholesale market, perhaps to an even greater extent, with the hiring of former J.P. Morgan CEO in Brazil José Berenguer. "It is a vertical that makes sense for our purposes, to have a complete ecosystem."

The window for offers on capital markets, which closed between March and April, came back into existence and he expects a second half of greater activity in this area. "We want to be in the top 3 by the end of the year."

In retail, after launching a credit card that is in the testing phase, another expected delivery is the digital account. Constantino stated, however, that the idea is not to compete with Nubank, but to provide a different experience so that customers can “cut the umbilical cord with the banks once and for all”, where the Brazilian still concentrates 90% of their investments.

XP Inc. closed the second quarter with its best result. It obtained a net profit of R $ 565 million, 148% higher than that registered in the same period last year, and with an increase of 36% in relation to the first quarter.

Excluding the extra provisions, the normalized profit of the big banks reached R $ 25 billion in the second quarter, pointed out Constantino, while XP still does not reach R $ 1 billion. According to the executive, this shows that there is much to be explored to reduce the existing banking concentration in the country.

Las opiniones compartidas y expresadas por los analistas son libres e independientes, y de ellas son responsables sus autores. No reflejan ni comprometen el pensamiento u opinión de Latam Fintech Hub, por lo cual no pueden ser interpretadas como recomendaciones emitidas por la platafomra. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista sobre el ecosistema Fintech.

After making a series of acquisitions in the first half to reinforce its structure, XP Inc. can still evaluate new businesses, according to Bruno Constantino, chief investment officer of the company.

"In fact, the ecosystem continues to be strengthened," he said in a conference call with the press. “We have an active area of ​​proprietary M&A, attentive to opportunities, making the experience even better, whether for individuals, institutional investors, independent assets, or for the corporate sector.”

During the first months of the year, XP announced the purchase of control of the investment consolidator Fliper, which prepares the company for the regulatory demands of “open banking”; the DM10 insurance fintech; the partnership with Vert to create DuAgro, which targets the rural producers segment, in addition to the acquisition of Antecipa, which operates in the receivables prepayment market.

Constantino stressed that the disruption made in the retail investment market can be replicated in the wholesale market, perhaps to an even greater extent, with the hiring of former J.P. Morgan CEO in Brazil José Berenguer. "It is a vertical that makes sense for our purposes, to have a complete ecosystem."

The window for offers on capital markets, which closed between March and April, came back into existence and he expects a second half of greater activity in this area. "We want to be in the top 3 by the end of the year."

In retail, after launching a credit card that is in the testing phase, another expected delivery is the digital account. Constantino stated, however, that the idea is not to compete with Nubank, but to provide a different experience so that customers can “cut the umbilical cord with the banks once and for all”, where the Brazilian still concentrates 90% of their investments.

XP Inc. closed the second quarter with its best result. It obtained a net profit of R $ 565 million, 148% higher than that registered in the same period last year, and with an increase of 36% in relation to the first quarter.

Excluding the extra provisions, the normalized profit of the big banks reached R $ 25 billion in the second quarter, pointed out Constantino, while XP still does not reach R $ 1 billion. According to the executive, this shows that there is much to be explored to reduce the existing banking concentration in the country.

Las opiniones compartidas y expresadas por los analistas son libres e independientes, y solamente sus autores son responsables de ellas. No reflejan ni comprometen el pensamiento o la opinión del equipo de Latam Fintech Hub y, por lo tanto, no pueden interpretarse como recomendaciones emitidas por la plataforma. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista en el ecosistema Fintech.

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