(Reuters) – Brazilian investment manager and broker XP (NASDAQ:) on Monday reported a rise in second-quarter revenue, helped by a rebound in the capital markets that saw its client assets breach the src-trillion-reais mark, and robust demand for its card products.
Investor risk appetite has rebounded this year in line with a rally in the global capital markets as worries over further interest rates and a deep recession in major economies eased.
The benchmark has gained roughly src6% so far this year after a bruising 2022. The upbeat sentiment on Wall Street was also echoed across major emerging markets.
XP’s total client assets climbed 2src% to src.02 trillion reais ($205.46 billion) in the quarter ended June 30, compared with 846 billion reais a year earlier.
Shares in the company initially rose 4% after the company’s results, but pared gains in volatile aftermarket trading. The stock has surged roughly 66% so far this year.
Spending on XP’s cards held up against the tough macroeconomic backdrop in the second quarter as consumers remained largely resilient. Total payment volumes rose 77% to 9.7 billion reais in the quarter.
Net revenue rose to 3.55 billion reais, up 3% from a year earlier, while net income increased 7% to come in at 977 million reais, compared with 9src3 million reais a year earlier.
($src = 4.9644 reais)
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