XP Inc.: Strategic Focus on Profitable Growth and Innovation Drives Buy RatingWe recently spoke with CFO, who shared insights into the company's client dynamics, strategic priorities, and long-term ambitions. The discussion underscored both the challenges of Brazil's current macro environment and the opportunities XP sees in reshaping its business mix, private banking, distribution network, and technology-driven efficiency. While consensus remains focused on slowing inflows and muted near-term growth, the longer-term picture is more constructive. We summarize below the five major themes from our meeting. 1. Client Mix — Prioritizing Profitability over Volume. The sub-R$300,000 retail client base has been structurally loss-making, due to demanding service needs, high churn, and low fees. XP has allowed this segment to shrink, reducing market share from 6.5% to 4.5% — ceding around R$4 billion in AUC.