Emerging markets around the world were pummelled through most of 2022 by the conflict in Ukraine and hawkish central banks looking to tame rapidly rising inflation.
Amid heavy volatility, XP's total net inflow slumped 36% to 31 billion reais ($5.94 billion) in the fourth quarter ended Dec. 31 from a year earlier.
"Brazil still has one of the most concentrated financial systems in the world, and we believe that with resilience, discipline, and a long-term vision, we will continue to gain market share from banks," said Chief Executive Officer Thiago Maffra in a statement. XP, the largest new-age Brazilian digital broker, said total client assets rose 16% to 946 billion reais in the quarter, while active clients rose 14% from a year earlier. The company's net income fell 21% to 783 million reais and net revenue dropped 3% to 3.18 billion reais. ($1 = 5.2178 reais) (Reporting by Manya Saini in Bengaluru; Editing by Shinjini Ganguli)
