XP XP

Cover

Cover3 Months Ended
Mar. 31, 2020
Cover page.
Document TypeF-1
Amendment Flagfalse
Entity Registrant NameXP Inc.
Entity Central Index Key0001787425
Emerging growth companyfalse

Consolidated Balance Sheets

Consolidated Balance Sheets R$ in Thousands, $ in ThousandsMar. 31, 2020BRL (R$)Dec. 31, 2019BRL (R$)Dec. 31, 2018BRL (R$)
Statement [LineItems]
CashR$ 249950R$ 109922R$ 68407
Financial assets56,217,071 41,888,778 16,582,616
Fair value through profit or loss33,606,516 26,528,396 7,983,002
Securities25,091,723 22,443,392 6,290,971
Derivative financial instruments8,514,793 4,085,004 1,692,031
Fair value through other comprehensive income4,896,387 2,616,118 695,778
Securities4,896,387 2,616,118 695,778
Evaluated at amortized cost17,714,168 12,744,264 7,903,836
Securities1,267,826 2,266,971 155,292
Securities purchased under agreements to resell14,916,794 9,490,090 6,570,609
Securities trading and intermediation1,015,785 504,983 898,312
Accounts receivable424,702 462,029 219,200
Loan operations63,589 386
Other financial assets25,472 19,805
Other assets602,934 643,619 316,777
Recoverable taxes226,645 243,320 183,350
Rights-of-use assets236,136 227,478 133,870
Prepaid expenses105,495 89,684 96,723
Other34,659 83,137 36,704
Deferred tax assets261,512 284,533 152,425
Property and equipment154,548 142,464 99,127
Intangible assets559,801 553,452 504,915
Total assets58,045,816 43,622,768 17,724,267
Financial liabilities44,627,989 31,842,054 15,216,037
Fair value through profit or loss8,247,206 5,250,943 2,250,978
Securities loaned721,131 2,021,707 1,259,579
Derivative financial instruments7,526,075 3,229,236 991,399
Evaluated at amortized cost36,380,783 26,591,111 12,965,059
Securities sold under repurchase agreements21,111,301 15,638,407 6,640,694
Securities trading and intermediation13,333,539 9,114,546 5,306,628
Borrowings and lease liabilities644,439 637,484 469,609
Debentures844,361 835,230 406,538
Accounts payables265,197 266,813 134,579
Structured operations certificates150,461 19,474
Other financial liabilities31,485 98,631 7,011
Other liabilities5,811,128 4,619,623 404,493
Social and statutory obligations274,752 492,723 251,690
Taxes and social security obligations170,422 345,331 103,121
Private pension liabilities5,155,088 3,759,090 16,059
Provisions and contingent liabilities14,897 15,193 17,474
Other195,969 7,286 16,149
Deferred tax liabilities5,132 12,025
Total liabilities50,439,117 36,466,809 15,632,555
Equity attributable to owners of the Parent company7,604,948 7,153,396 2,084,777
Issued capital23 23 21
Capital reserve6,966,667 6,943,446 1,875,591
Other comprehensive income241,398 209,927 209,165
Retained earnings396,860
Non-controllinginterest1,751 2,563 6,935
Total equity7,606,699 7,155,959 2,091,712
Total liabilities and equityR$ 5804581643,622,768 17,724,267
Previously Reported [Member]
Statement [LineItems]
Other financial assets20,191 60,423
Other financial liabilitiesR$ 98631R$ 7011

Consolidated Statements of Inco

Consolidated Statements of Income and of Comprehensive Income - BRL (R$) R$ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2020Mar. 31, 2019Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Profit or loss [abstract]
Net revenue from services renderedR$ 1151946R$ 599247R$ 3595772R$ 2054549R$ 1283616
Net income from financial instruments at amortized cost and at fair value through other comprehensive income202,497 65,822 199,947 114,442 79,380
Net income from financial instruments at fair value through profit or loss380,398 268,923 1,332,089 789,462 543,654
Total revenue and income1,734,841 933,992 5,127,808 2,958,453 1,906,650
Operating costs(578,816)(307,756)(1,606,060)(941,246)(579,880)
Selling expenses(28,476)(24,518)(155,115)(96,075)(32,881)
Administrative expenses(578,116)(368,285)(1,891,481)(1,176,805)(649,585)
Other operating income (expenses), net(13,883)85,176 153,357 (31,289)(7,704)
Interest expense on debt(19,019)(15,382)(84,400)(72,310)(61,093)
Income before income tax516,531 303,227 1,544,109 640,728 575,507
Income tax expense(118,977)(92,789)(454,625)(175,398)(151,966)
Net income for the period397,554 210,438 1,089,484 465,330 423,541
Items that can be subsequently reclassified to income
Foreign exchange variation of investees located abroad56,560 1,325 6,823 18,645 2,034
Gains (losses) on net investment hedge(56,496)(843)(7,133)(17,495)(2,386)
Changes in the fair value of financial assets at fair value through other comprehensive income31,490 (1,183)698 4,160 210
Other comprehensive income (loss) for the period, net of tax31,554 (701)388 5,310 (142)
Total comprehensive income for the period429,108 209,737 1,089,872 470,640 423,399
Net income attributable to:
Owners of the Parent company396,860 209,215 1,080,484 461,440 413,874
Non-controllinginterest694 1,223 9,000 3,890 9,667
Total comprehensive income attributable to:
Owners of the Parent company428,414 208,514 1,080,872 466,750 413,732
Non-controllinginterestR$ 694R$ 1223R$ 9000R$ 3890R$ 9667
Earnings per share from total income attributable to the ordinary equity holders of the company
Basic earnings per shareR$ 0.7192R$ 0.4108R$ 2.1125[1]R$ 0.9358[1]R$ 0.8535[1]
Diluted earnings per shareR$ 0.7139R$ 0.4108R$ 2.1115[1]R$ 0.9358[1]R$ 0.8535[1]
[1]The basic and diluted earnings per common share are in effect with the reverse share split occurred on November 30, 2019.

Condensed Consolidated Statemen

Condensed Consolidated Statements of Changes in Equity - BRL (R$) R$ in ThousandsTotalIssued capital [member]Additional paid-in capital [member]Other reserves [member]Other comprehensive income [member]Retained earnings [member]Equity attributable to owners of parent [member]Non-controlling interests [member]
Beginning balance at Dec. 31, 2016R$ 1094807R$ 20R$ 254602R$ 586855R$ 203683R$ 1045160R$ 49647
Comprehensive income
Net income423,541 R$ 413874413,874 9,667
Other comprehensive income, net(142)(142)(142)
Transactions with shareholders- contributions and distributions
Subscriptions (redemptions) at funds by non-controlling interest(45,550)(45,550)
Gain (loss) in changes in interest of subsidiaries, net(2,078)(95)(95)(1,983)
Allocations of the net income
Transfer to capital reserves136,313 (136,313)
Dividends distributed(318,856)(37,437)(277,561)(314,998)(3,858)
Ending balance at Dec. 31, 20171,151,722 20 254,602 685,731 203,446 1,143,799 7,923
Comprehensive income
Net income465,330 461,440 461,440 3,890
Other comprehensive income, net5,310 5,310 5,310
Transactions with shareholders- contributions and distributions
Capital contributions673,294 1 673,293 673,294
Corporate reorganization525 525 525
Gain (loss) in changes in interest of subsidiaries, net(379)409 409 (788)
Allocations of the net income
Transfer to capital reserves261,440 (261,440)
Dividends distributed(204,090)(200,000)(200,000)(4,090)
Ending balance at Dec. 31, 20182,091,712 21 927,895 947,696 209,165 2,084,777 6,935
Comprehensive income
Net income210,438 209,215 209,215 1,223
Other comprehensive income, net(701)(701)(701)
Transactions with shareholders- contributions and distributions
Gain (loss) in changes in interest of subsidiaries, net(91)258 258 (349)
Allocations of the net income
Dividends distributed(490)(490)
Ending balance at Mar. 31, 20192,300,868 21 927,895 947,696 208,722 209,215 2,293,549 7,319
Beginning balance at Dec. 31, 20182,091,712 21 927,895 947,696 209,165 2,084,777 6,935
Comprehensive income
Net income1,089,484 1,080,484 1,080,484 9,000
Other comprehensive income, net388 388 388
Transactions with shareholders- contributions and distributions
Capital contributions4,504,826 2 4,504,824 4,504,826
Transactions costs from capital contributions(22,824)(22,824)(22,824)
Grant of share based plan5,371 5,371 5,371
Gain (loss) in changes in interest of subsidiaries, net(1,855)374 374 (2,229)
Allocations of the net income
Transfer to capital reserves580,484 (580,484)
Dividends distributed(511,143)(500,000)(500,000)(11,143)
Ending balance at Dec. 31, 20197,155,959 23 5,409,895 1,533,551 209,927 7,153,396 2,563
Comprehensive income
Net income397,554 396,860 396,860 694
Other comprehensive income, net31,554 31,554 31,554
Transactions with shareholders- contributions and distributions
Grant of share based plan23,214 23,221 23,221 (7)
Gain (loss) in changes in interest of subsidiaries, net1,850 (83)(83)1,933
Allocations of the net income
Dividends distributed(3,432)(3,432)
Ending balance at Mar. 31, 2020R$ 7606699R$ 23R$ 5409895R$ 1556772R$ 241398R$ 396860R$ 7604948R$ 1751

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - BRL (R$) R$ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2020Mar. 31, 2019Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Operating activities
Income before income taxR$ 516531R$ 303227R$ 1544109R$ 640728R$ 575507
Adjustments to reconcile income before income taxes
Depreciation of property and equipment and right-of-use assets15,878 8,102 53,080 24,470 9,338
Amortization of intangible assets15,648 7,055 37,630 28,318 18,065
Loss on write-off of property, equipment and intangible assets3,452 112 11,245 19,915 4,491
Expected credit losses on accounts receivable and other financial assets21,962 (180)9,410 8,220 4,347
(Reversal of) Provision for contingencies, net(387)11 (1,601)7,897 3,531
Net foreign exchange differences(19,510)1,528 3,636 (25,832)36,271
Grant of share-based plan23,221 5,371
Interest accrued20,087 16,898 86,862 64,330 8,134
Changes in assets and liabilities
Securities (assets and liabilities)(6,676,164)605,953 (20,188,931)(2,929,021)(958,894)
Derivative financial instruments (assets and liabilities)988,979 95,830 825,719 (492,024)(209,030)
Securities trading and intermediation (assets and liabilities)3,708,191 840,841 4,201,246 1,969,621 1,036,957
Securities purchased (sold) under resale (repurchase) agreements46,190 (1,809,388)(2,919,480)(5,635,630)262,377
Accounts receivable6,197 62,708 (243,893)(92,809)(70,589)
Loan operations(63,520)
Prepaid expenses(15,811)2,776 7,040 (31,380)(19,565)
Other assets52,295 13,173 (14,548)(58,964)(7,917)
Securities sold under repurchase agreements8,997,713 6,126,676 (258,118)
Structured operations certificates130,987
Accounts payable(1,616)(1,482)132,235 63,000 3,163
Social and statutory obligations(217,971)(73,134)241,033 81,253 62,274
Tax and social security obligations(33,554)(82,429)(9,223)4,463 (2,459)
Private pension liabilities1,395,998 33,867 3,743,031 16,059
Other liabilities141,012 (9,598)98,497 14,524 (8,901)
Cash from operations58,095 15,870 (3,379,819)(196,186)488,982
Income tax paid(196,585)(86,579)(402,574)(202,443)(219,446)
Contingencies paid(234)(318)(3,172)(3,933)(7,169)
Interest paid(572)(3,141)(28,427)(54,185)
Net cash flows from (used in) operating activities(139,296)(74,168)(3,813,992)(456,747)262,367
Investing activities
Acquisition of intangible assets(19,914)(8,061)(88,949)(53,517)(20,627)
Acquisition of property and equipment(20,746)(11,375)(72,499)(83,149)(30,369)
Acquisition of subsidiaries, net of cash acquired(10,413)(404,631)
Net cash flows used in investing activities(40,660)(19,436)(161,448)(147,079)(455,627)
Financing activities
Proceeds from borrowings325,370 826,000
Payments of borrowings and lease liabilities(26,058)(32,276)(123,332)(689,634)
Proceeds from issuance of debentures400,000 400,000
Payments of debentures(11,815)
Dividends paid to owners of the parent(500,000)(325,000)(189,998)
Proceeds from capital contributions, net4,482,002 673,294
Net subscriptions received (redemptions paid)-non-controllinginterests(45,550)
Transactions with non-controlling interests1,844 (92)(1,855)146 (2,078)
Dividends paid to non-controlling interests(3,432)(490)(11,143)(4,090)(3,858)
Net cash flows from (used in) financing activities(27,646)(32,858)4,233,857 380,086 584,516
Net increase (decrease) in cash and cash equivalents(207,602)(126,462)258,417 (223,740)391,255
Cash and cash equivalents at the beginning of the fiscal year887,796 626,863 626,863 835,493 440,128
Effects of exchange rate changes on cash and cash equivalents31,009 70 2,516 15,110 4,110
Cash and cash equivalents at the end of the fiscal year711,203 500,471 887,796 626,863 835,493
Cash249,950 224,997 109,922 68,407 153,218
Securities purchased under agreements to resell309,053 133,028 654,057 488,809 420,958
Interbank certificate depositsR$ 152200R$ 142446R$ 123817R$ 69647R$ 261317

Operations

Operations3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Operations1. Operations
XP Inc. (the “Company”), is a Cayman Island exempted
company with limited liability, incorporated on August 29,
2019. The registered office of the Company is Ugland House, 121
South Church Street in George Town, Grand Cayman. The
Company’s principal executive office is located in the city
of São Paulo, Brazil.
XP Inc. is a holding company controlled by XP Controle
Participações S.A., which holds 64.61% of Class B
common shares and whose is ultimately controlled by a group of
individuals.
XP Inc. and its subsidiaries (collectively, the
“Company”, “Group” or “XP
Group”) are principally engaged in providing its customers,
represented by individuals and legal entities in Brazil and abroad,
various financial products and services, mainly acting as
broker-dealer, including securities brokerage, banking, private
pension plans and financial advisory services, through three retail
brands (XP Investimentos, Rico and Clear) that reach clients
directly and through network of Independent Financial Advisers
(“IFAs”).
On November 29, 2019, the Group carried out a corporate
reorganization in order to prepare the structure to the Initial
Public Offering of its shares. As result, the capital contributed
by the shareholders on XP Investimentos S.A. were transferred and
incorporated on XP Inc. Therefore the shareholders have a direct
stake on XP Inc. which controls XP Investimentos S.A. and the other
operating companies of the Group.
On November 30, 2019, the Company carried out a reverse share
split of 4:1. As a result, the share capital represented by
2,036,988,542 shares decreased to 509,247,136 shares. The reverse
share split has been applied retrospectively to all figures in the
historical financial statements regarding number of shares (Note
21) and per share data as if the reverse share split had been in
effect for all periods presented.
1.1 Initial Public Offering and resulting transactions
On December 13, 2019, the Company completed its Initial Public
Offering (“IPO”), offering 72,510,641 of Class A
common shares out, of which 42,553,192 new shares were offered by
the Company and the remaining 29,957,449 shares were offered by
selling shareholders. Additionally the underwrites executed an
option to purchase 10,876,596 additional Class A common shares
at the initial public offering price which resulted in a total of
83,387,237 Class A common shares sold.
The initial offering price per Class A common share was US$
27.00, resulting in gross proceeds of US$ 1,148,936 thousand
(or R$4,705,803) to XP Inc, deducting R$200,977 thousand as
underwriting discounts and commissions. Additionally, the Company
incurred in R$44,726 thousand regarding other offering
expenses out of, which R$21,902 thousand was recognized
directly in income statements and the amount of R$22,824 in equity
as transaction cost.
The shares offered and sold in the IPO were registered under the
Securities Act of 1933, as amended, pursuant to the Company’s
Registration Statement on Form F-1 333-234719), (“NASDAQ-GS”)
These unaudited interim condensed consolidated financial statements
for the three months period ended March 31, 2020 were approved
by the Board of Director’s meeting on June 23, 2020.
1. Operations
XP Inc. (the “Company”), is a Cayman Island exempted
company with limited liability, incorporated on August 29,
2019. The registered office of the Company is Ugland House, 121
South Church Street in George Town, Grand Cayman. The
Company’s principal executive office is located in the city
of São Paulo, Brazil.
XP Inc. is a holding company controlled by XP Controle
Participações S.A., which holds 64.61% of Class B
common shares and whose is ultimately controlled by a group of
individuals.
XP Inc. and its subsidiaries (collectively, the
“Company”, “Group” or “XP
Group”) are principally engaged in providing its customers,
represented by individuals and legal entities in Brazil and abroad,
various financial products and services, mainly acting as
broker-dealer, including securities brokerage, banking, private
pension plans and financial advisory services, through three retail
brands (XP Investimentos, Rico and Clear) that reach clients
directly and through network of Independent Financial Advisers
(“IFAs”).
On May 11, 2017, the Company’s shareholders entered into
a share purchase agreement with Itaú Unibanco S.A.
(“Itaú Unibanco”) for the sale of non-controlling
On August 10, 2017, the Group concluded the acquisition of the
operations of Rico Corretora de Títulos e Valores
Mobiliários S.A. (“Rico”), by acquiring whole
control of its holding entity FLAFLU Participações S.A.
(“FLAFLU”). Rico also operates in brokerage and
securities distribution market to retail. See Note 5 for more
information on the acquisition.
On November 29, 2019, the Group carried out a corporate
reorganization in order to prepare the structure to the Initial
Public Offering of its shares. As result, the capital contributed
by the shareholders on XP Investimentos S.A. were transferred and
incorporated on XP Inc. Therefore the shareholders have a direct
stake on XP Inc. which controls XP Investimentos S.A. and the other
operating companies of the Group.
On November 30, 2019, the Company carried out a reverse share
split of 4:1. As a result, the share capital represented by
2,036,988,542 shares decreased to 509,247,136 shares. The reverse
share split has been applied retrospectively to all figures in the
historical financial statements regarding number of shares (Note
32) and per share data as if the reverse share split had been in
effect for all periods presented.
1.1 Initial Public Offering and resulting transactions
On December 13, 2019, the Company completed its Initial Public
Offering (“IPO”), offering 72,510,641 of Class A
common shares out, of which 42,553,192 new shares were offered by
the Company and the remaining 29,957,449 shares were offered by
selling shareholders. Additionally the underwrites executed an
option to purchase 10,876,596 additional Class A common shares
at the initial public offering price which resulted in a total of
83,387,237 Class A common shares sold.
The initial offering price per Class A common share was US$
27.00, resulting in gross proceeds of US$ 1,148,936 thousand
(or R$4,705,803) to XP Inc, deducting R$200,977 thousand as
underwriting discounts and commissions. Additionally, the Company
incurred in R$44,726 thousand regarding other offering
expenses out of, which R$21,902 thousand was recognized
directly in income statement and the amount of R$22,824 in equity
as transaction cost.
The shares offered and sold in the IPO were registered under the
Securities Act of 1933, as amended, pursuant to the Company’s
Registration Statement on Form F-1 333-234719), (“NASDAQ-GS”)
These consolidated financial statements were approved by the
Board of Director’s meeting on April 27, 2020.

Basis of preparation of the fin

Basis of preparation of the financial statements3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Basis of preparation of the financial statements2. Basis of preparation of the financial statements and changes
to the Group’s accounting policies
a) Basis of preparation of the unaudited interim condensed
consolidated financial statements
The unaudited interim condensed consolidated financial statements
as of March 31, 2020 and for the three months ended
March 31, 2020 and 2019 have been prepared in accordance with
IAS 34 Interim Financial
Reporting
The unaudited interim condensed consolidated financial statements
have been prepared on a historical cost basis, except for financial
instruments that have been measured at fair value.
The unaudited interim condensed consolidated financial statements
do not include all the information and disclosures required in the
annual financial statements and should be read in conjunction with
the Group’s annual consolidated financial statements as of
December 31, 2019 included in the Form 20-F for the year ended
December 31, 2019 filed with the SEC (U.S Securities Exchange
Commission) on April 29, 2020.
The accounting policies adopted are consistent with those of the
previous financial year and corresponding interim reporting
period.
The unaudited interim condensed consolidated financial statements
are presented in Brazilian reais (“R$”), and all
amounts disclosed in the financial statements and notes have been
rounded off to the nearest thousand currency units unless otherwise
stated.
b) Basis of consolidation
There were no changes since December 31, 2019 in the
accounting practices adopted for consolidation and in the direct
and indirect interests of Company in its subsidiaries for the
purposes of these unaudited interim condensed consolidated
financial statements, except for the following item:
% of Group’s interest (i)
Entity name Country of Principal March 31, December 31,
Indirectly controlled
XP PE Gestão de Recursos Ltda. (ii) Brazil Private 99.10 %

(i)
The percentage of participation represents the
Group’s interest in total capital and voting capital of its
subsidiaries.
(ii)
New operating subsidiaries incorporated in 2020.
c) Segment reporting
In reviewing the operational performance of the Group and
allocating resources, the chief operating decision maker of the
Group (“CODM”), who is the Group’s Chief
Executive Officer (“CEO”) and the Board of Directors
(“BoD”), represented by statutory directors holders of
ordinary shares of the immediate parent of the Company, reviews
selected items of the statement of income and of comprehensive
income.
The CODM considers the whole Group as a single operating and
reportable segment, monitoring operations, making decisions on fund
allocation and evaluating performance based on a single operating
segment. The CODM reviews relevant financial data on a combined
basis for all subsidiaries. Disaggregated information is only
reviewed at the revenue level (Note 16), with no corresponding
detail at any margin or profitability levels.
The Group’s revenue, results and assets for this one
reportable segment can be determined by reference to the unaudited
interim condensed consolidated statements of income and of
comprehensive income and unaudited interim condensed consolidated
balance sheet.
See Note 16 (c) for a breakdown of total revenue and income and
selected assets by geographic location
d) Impacts related COVID-19
Starting from January 2020, it was reported that a novel strain of
coronavirus, later named COVID-19,
Although the Group have not identified relevant impacts to its
financial performance as at March 31, 2020, the Group is
monitoring COVID-19
As a consequence of this pandemic, most of the Group’s
employees is working from home. Based on thorough assessments about
the well-being and performance of our workforce, management
announced on June 11, 2020, the permanent and company-wide
adoption of the home-office model. The reduction in such footprint
and the potential financial consequences of such actions are being
analyzed by management.
Additionally, XP Inc announced its intention to establish new
corporate headquarters outside the city of São Paulo
(“Villa XP”), with an innovative architecture
comprising workstations, meeting rooms and common areas. The
financial impacts of such initiative are still under
evaluation.
e) New standards, interpretations and amendments not yet
adopted
The accounting policies adopted in the preparation of the unaudited
interim condensed consolidated financial statements are consistent
with those followed in the preparation of the Group’s
consolidated financial statements for the year ended
December 31, 2019.
Certain new accounting standards and interpretations have been
published that are not mandatory for the period ended
March 31, 2020, and have not been early adopted by the group.
These standards are not expected to have a material impact on the
entity in the current or future financial statements periods and on
foreseeable future transactions.
The Group did not have to change its accounting policies or make
retrospective adjustments as a result of adopting these
standards.
f) Estimates
The preparation of unaudited interim condensed consolidated
financial statements of the Group requires management to make
judgments and estimates and to adopt assumptions that affect the
amounts presented referring to revenues, expenses, assets and
liabilities at the reporting date. Actual results may differ from
these estimates.
In preparing these unaudited interim condensed consolidated
financial statements, the significant judgements and estimates made
by management in applying the Group’s accounting policies and
the key sources of estimation uncertainty were the same as those
that are set the consolidated financial statements for the year
ended December 31, 2019.
2. Basis of preparation of the financial statements
(i) Basis of preparation
The consolidated financial statements of the Group have been
prepared in accordance with the International Financial Reporting
Standards (“IFRS”) as issued by the International
Accounting Standards Board (“IASB”).
The consolidated financial statements have been prepared on a
historical cost basis, except for financial instruments that have
been measured at fair value.
The preparation of financial statements requires the use of certain
critical accounting estimates. It also requires management to
exercise its judgment in the process of applying the Group’s
accounting policies. The areas involving a higher degree of
judgment or complexity, or areas where assumptions and estimates
are significant to the financial statements, are disclosed in Note
4.
The consolidated financial statements are presented in Brazilian
reais (“R$”), and all amounts disclosed in the
financial statements and notes have been rounded off to the nearest
thousand currency units unless otherwise stated.
As mentioned in the Note 1, the Group carried out a corporate
reorganization in order to prepare the structure for the Initial
Public Offering of its shares. As result, XP Inc. was incorporated
in 2019 and is currently the entity which is registered with the
Securities Exchange Commission and for which these financial
statements are presented. The comparative historical figures
presented in these financial statements are the ones of the
predecessor entity, XP Investimentos S.A.
The balance sheet is presented in order of liquidity of assets and
liabilities. The timing of their realization or settlement is
dependent not just on their liquidity, but also on
management’s judgements on expected movements in market
prices and other relevant aspects.
(ii) New and amended standards adopted by the Group
The Group applies, for the first time on January 1, 2019, IFRS
16 Leases Uncertainty over Income Tax
Treatment
Other amendments and interpretations apply for the first time in
2019, but do not have an impact on the annual consolidated
financial statements of the Group.
Certain new accounting standards and interpretations have been
published that are not mandatory for 2019 reporting periods and
have not been early adopted by the Group. These standards are not
expected to have a material impact on the entity in the current or
future reporting periods and on foreseeable future
transactions.
(iii) Basis of consolidation
The consolidated financial statements comprise the financial
statements of the Company as of December 31, 2019 and 2018 and
for each of the years ended December 31, 2019, 2018 and
2017.
Subsidiaries are all entities (including structured entities) over
which the Group has control. The Group controls an entity when the
Group is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those
returns through its power to direct the activities of the entity.
Subsidiaries are fully consolidated from the date on which control
is transferred to the Group. They are deconsolidated from the date
that control ceases.
The acquisition method of accounting is used to account for
business combinations by the Group (refer to Note 5.
Intercompany transactions, balances and unrealized gains on
transactions between Group companies are eliminated. Unrealized
losses are also eliminated unless the transaction provides evidence
of an impairment of the transferred asset. Accounting policies of
subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group.
Non-controlling
(iv) Segment reporting
In reviewing the operational performance of the Group and
allocating resources, the chief operating decision maker of the
Group (“CODM”), who is the Group’s Chief
Executive Officer (“CEO”) and the Board of Directors
(“BoD”), represented by statutory directors holders of
ordinary shares of the immediate parent of the Company, reviews
selected items of the statement of income and of comprehensive
income.
The CODM considers the whole Group as a single operating and
reportable segment, monitoring operations, making decisions on fund
allocation and evaluating performance based on a single operating
segment. The CODM reviews relevant financial data on a combined
basis for all subsidiaries. Disaggregated information is only
reviewed at the revenue level (Note 26), with no corresponding
detail at any margin or profitability levels.
The Group’s revenue, results and assets for this one
reportable segment can be determined by reference to the
consolidated statement of income and of comprehensive income and
consolidated balance sheet.
See Note 26 (c) for a breakdown of revenues and income and selected
assets from external customers by country of domicile.
(v) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of the
Group’s entities are measured using the currency of the
primary economic environment in which the entity operates
(‘the functional currency’). The consolidated financial
statements are presented in Brazilian Reais (“R$”),
which is the Group functional and presentation currency.
The functional currency for all the Company’s subsidiaries in
Brazil is also the Brazilian reais. Certain subsidiaries outside of
Brazil have different functional currencies, including
US Dollar (“USD”), Euro (“EUR”), Pound
sterling (“GBP”) and Swiss Franc
(“CHF”).
(ii) Transactions and balances
Foreign currency transactions are translated into the functional
currency using the exchange rates at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of
such transactions and from the translation of monetary assets and
liabilities denominated in foreign currencies at year end exchange
rates are generally recognized in profit or loss. They are deferred
in equity if they relate to qualifying cash flow hedges and
qualifying net investment hedges or are attributable to part of the
net investment in a foreign operation.
Foreign exchange gains and losses that relate to borrowings are
presented in the statement of income and other comprehensive
income, within finance costs. All other foreign exchange gains and
losses are presented in the statement of profit or loss on a net
basis within interest expense on debt.
Non-monetary non-monetary non-monetary
(iii) Group companies
The results and financial position of foreign operations (none of
which has the currency of a hyperinflationary economy) that have a
functional currency different from the presentation currency are
translated into the presentation currency as follows:

assets and liabilities for each balance sheet
presented are translated at the closing rate at the date of that
balance sheet;

income and expenses for each statement of profit or
loss and statement of comprehensive income are translated at
average exchange rates (unless this is not a reasonable
approximation of the cumulative effect of the rates prevailing on
the transaction dates, in which case income and expenses are
translated at the dates of the transactions); and

all resulting exchange differences are recognized in
other comprehensive income.
On consolidation, exchange differences arising from the translation
of any net investment in foreign entities, and of borrowings and
other financial instruments designated as hedges of such
investments, are recognized in other comprehensive income. When a
foreign operation is sold or any borrowings forming part of the net
investment are repaid, the associated exchange differences are
reclassified to profit or loss, as part of the gain or loss on
sale.
Goodwill and fair value adjustments arising on the acquisition of a
foreign operation are treated as assets and liabilities of the
foreign operation and translated at the closing rate.

Securities purchased (sold) und

Securities purchased (sold) under resale (repurchase) agreements3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Securities purchased (sold) under resale (repurchase) agreements3. Securities purchased (sold) under resale (repurchase)
agreements
a) Securities purchased under agreements to resell
March 31, 2020 December 31, 2019
Available portfolio 3,294,442 971,991
National Treasury Notes (NTNs) 3,221,176 771,099
Financial Treasury Bills (LFTs)
— 195,980
National Treasury Bills (LTNs) 73,266 4,912
Collateral held 11,622,352 8,518,099
National Treasury Bills (LTNs) 293,787 1,764,410
National Treasury Notes (NTNs) 11,328,565 6,753,689
Total 14,916,794 9,490,090
Investments in purchase and sale commitments backed by sovereign
debt securities refer to transactions involving the purchase of
sovereign debt securities with a commitment to sale originated in
the subsidiary XP CCTVM and in exclusive funds and were carried out
at an average fixed rate of 3.68% p.a. (December 31,
2019—4.63% p.a.).
As of March 31, 2020, R$ 309,053 (December 31, 2019—R$
654,057) from the total amount of available portfolio is being
presented as cash equivalents in the statements of cash flows.
b) Securities sold under repurchase agreements
March 31, 2020 December 31, 2019
National Treasury Bills (LTNs) 16,829,549 8,533,113
National Treasury Notes (NTNs) 3,057,813 5,653,994
Financial Treasury Bills (LFTs) 1,220,908 1,451,300
Agribusiness receivables certificates (CRA) 3,031

Total 21,111,301 15,638,407
As of March 31, 2020, securities sold under repurchase
agreements were agreed with average interest rates of 3.64% p.a.
(December 31, 2019—4.48% p.a.), with assets pledged as
collateral.
6. Securities purchased under agreements to resell
2019 2018
Available portfolio 971,991 488,809
National Treasury Notes (NTNs) 771,099 65,136
Financial Treasury Bills (LFTs) 195,980 38,014
National Treasury Bills (LTNs) 4,912 385,659
Collateral held 8,518,099 6,081,800
National Treasury Bills (LTNs) 1,764,410 4,911,635
National Treasury Notes (NTNs) 6,753,689 1,170,165
Total 9,490,090 6,570,609
Investments in purchase and sale commitments backed by sovereign
debt securities refer to transactions involving the purchase of
sovereign debt securities with a commitment to sale originated in
the subsidiary XP CCTVM and in exclusive funds and were carried out
at an average fixed rate of 4,63% p.a. (6.43% p.a. as of
December 31, 2018).
As of December 31, 2019, R$ 654,057 (2018 - R$ 488,809) from
the total amount of available portfolio is being presented as cash
equivalents in the statements of cash flows.

Securities

Securities3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Securities4. Securities
a) Securities classified at fair value through profit and loss
and at fair value through other comprehensive income
March 31, 2020 December 31, 2019
Gross Fair value Gross Fair Value
Financial assets
At fair value through profit and loss 24,911,824 25,091,723 22,332,936 22,443,392
Agribusiness receivables certificates 532,281 515,994 598,085 589,525
Bank deposit certificates (i) 270,022 272,972 244,071 246,827
Brazilian government bonds 15,461,665 15,669,359 15,404,300 15,494,046
Certificate of real estate receivable 211,458 205,546 75,922 75,123
Debentures 1,017,997 973,503 885,344 885,068
Financial credit bills 83,762 82,765 98,068 106,759
Investment funds 4,525,734 4,525,734 3,047,198 3,047,198
USA government bonds 1,856,714 1,857,216


Real estate credit bill 1,367 1,392 1,282 1,300
Stocks issued by public-held company 312,547 312,547 1,562,965 1,562,965
Structured transaction certificate 305,188 332,039 237,112 256,381
Others (ii) 333,089 342,656 178,589 178,200
At fair value through other comprehensive income 4,836,127 4,896,387 2,608,325 2,616,118
National treasury bill 4,836,127 4,896,387 2,608,325 2,616,118
(i)
Bank deposit certificates include R$ 152,200 (December
31, 2019—R$ 123,817) is being presented as cash equivalents
in the statements of cash flows.
(ii)
Mainly related to bonds issued and traded
overseas.
b) Securities evaluated at amortized cost
March 31, 2020 December 31, 2019
Gross Book Value Gross Book Value
Financial assets
At amortized cost 1,267,826 1,267,826 2,266,971 2,266,971
Bonds 1,267,826 1,267,826 2,266,971 2,266,971
c) Securities on the financial liabilities classified at fair
value through profit or loss
March 31, 2020 December 31, 2019
Gross Book value Gross Book Value
Financial liabilities
At fair value through profit or loss
Securities loaned 721,131 721,131 2,021,707 2,021,707
d) Securities classified by maturity
Assets Liabilities
March 31, December 31, March 31, December 31,
Financial assets
At fair value through P&L and at OCI
Current 8,417,190 9,804,819 721,131 2,021,707
Non-stated 5,405,233 4,999,333 721,131 2,021,707
Up to 3 months 1,814,839 257,544


From 3 to 12 months 1,197,118 4,547,942


Non-current 21,570,920 15,254,691


After one year 21,570,920 15,254,691


Evaluated at amortized cost
Current 1,267,826 2,266,971


Up to 3 months 423,837 807,218


From 3 to 12 months 843,989 1,459,753


Total 31,255,936 27,326,481 721,131 2,021,707
7. Securities
a)
Securities classified at fair value through profit and
loss and at fair value through other comprehensive income are
presented in the following table:
2019 2018
Gross carrying Fair value Gross carrying Fair value
Financial assets
At fair value through profit or loss 22,332,936 22,443,392 6,262,735 6,290,971
Agribusiness receivables certificates 598,085 589,525 85,668 85,874
Bank deposit certificates (i) 244,071 246,827 172,451 171,725
Brazilian government bonds 15,404,300 15,494,046 3,826,902 3,853,534
Certificate of real estate receivable 75,922 75,123 208,442 207,167
Debentures 885,344 885,068 325,459 326,403
Financial credit bills 98,068 106,759 45,040 44,663
Investment funds 3,047,198 3,047,198 279,013 279,013
Others (ii) 178,589 178,200 167,714 167,716
Real estate credit bill 1,282 1,300 3,697 4,883
Structured transaction certificate 237,112 256,381 21,275 22,949
Stocks issued by public-held company 1,562,965 1,562,965 1,127,074 1,127,044
At fair value through other comprehensive income 2,608,325 2,616,118 688,731 695,778
National treasury bill 2,608,325 2,616,118 688,731 695,778
(i)
Bank deposit certificates include R$ 123,817 (2018
– R$ 69,647) is being presented as cash equivalents in the
statements of cash flows.
(ii)
Mainly related to bonds issued and traded
overseas.
b)
Securities evaluated at amortized cost are presented
in the following table:
2019 2018
Gross carrying Book value Gross carrying Book value
Financial assets
At amortized cost
Bonds 2,266,971 2,266,971 155,292 155,292
c)
Securities on the financial liabilities classified at
fair value through profit or loss are presented in the following
table:
2019 2018
Gross carrying Book value Gross carrying Book value
Financial liabilities
At fair value through profit or loss
Securities loaned 2,021,707 2,021,707 1,259,579 1,259,579
Below is presented the securities classified by maturity:
Assets Liabilities
2019 2018 2019 2018
Financial assets
At fair value through PL and at OCI
Current 9,804,819 1,875,374 2,021,707 1,192,877
Non-stated 4,999,333 1,425,401 2,021,707

Up to 3 months 257,544 192,208
— 1,184,972
From 3 to 12 months 4,547,942 257,765
— 7,905
Non-current 15,254,691 5,111,375
— 66,702
After one year 15,254,691 5,111,375
— 66,702
Evaluated at amortized cost
Current 2,266,971 155,292


Non-staded 807,218



From 3 to 12 months 1,459,753 155,292


Total 27,326,481 7,142,041 2,021,707 1,259,579

Derivative financial instrument

Derivative financial instruments3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Derivative financial instruments5. Derivative financial instruments
The Group uses the derivatives to manage its overall exposures of
foreign exchange rates, interest rates and price of shares.
Below is the composition of the derivative financial instruments
portfolio (assets and liabilities) by type of instrument, stated
fair value and by maturity:
March 31, 2020
Notional Fair Value % Up to From 3 to Above
Assets
Options 380,556,621 7,156,611 84 2,612,257 2,482,728 2,061,626
Swap contracts 3,864,467 789,707 8 392,631 11,953 385,123
Forward contracts 707,973 567,259 7 545,521 3,679 18,059
Future contracts 6,201 1,216 1 1,216


Total 385,135,262 8,514,793 100 3,551,625 2,498,360 2,464,808
Liabilities
Options 439,211,735 6,469,055 86 1,932,259 2,354,129 2,182,667
Swap contracts 2,915,357 425,108 6 22,309 13,866 388,933
Forward contracts 4,223,982 631,912 8 558,697 73,152 63
Total 446,351,074 7,526,075 100 2,513,265 2,441,147 2,571,663
December 31, 2019
Notional Fair Value % Up to From 3 to Above
Assets
Options 498,484,022 2,742,035 67 1,837,073 577,177 327,785
Swap contracts 3,955,473 1,133,768 27 10,418 700,668 422,682
Forward contracts 1,857,542 187,392 5 159,163 28,175 54
Future contracts 15,920,584 21,809 1 21,809


Total 520,217,621 4,085,004 100 2,028,463 1,306,020 750,521
Liabilities
Options 488,482,756 2,741,592 85 1,745,532 637,393 358,667
Swap contracts 3,420,857 485,164 14 15,838 40,687 428,639
Forward contracts 164,209 2,480 1 1,693 325 462
Total 492,067,822 3,229,236 100 1,763,063 678,405
787,768
8. Derivative financial instruments
The Group uses the derivatives to manage its overall exposures of
foreign exchange rates, interest rates and price of shares.
The fair value of derivative financial instruments, comprised of
futures, forward, options, and swaps operations, is determined in
accordance with the following criteria:

Swap—These operations swap cash flow based on
the comparison of profitability between two indexers, Thus, the
agent assumes both positions – put in one indexer and call on
another.

Forward—at the market quotation value, and the
installments receivable or payable are prefixed to a future date,
adjusted to present value, based on market rates published at
B3.

Futures—Foreign exchange rates, prices of shares
and commodities are commitments to buy or sell a financial
instrument at a future date, at a contracted price or yield and may
be settled in cash or through delivery. Daily cash settlements of
price movements are made for all instruments.

Options—option contracts give the purchaser the
right to buy the instrument at a fixed price negotiated at a future
date. Those who acquire the right must pay a premium to the seller.
This premium is not the price of the instrument, but only an amount
paid to have the option (possibility) to buy or sell the instrument
at a future date for a previously agreed price.
Positions with derivative financial instruments as of
December 31, 2019 and 2018 are shown below:
2019
Assets Liabilities
Fair value Notional Fair value Notional
Swaps 1,133,768 3,955,473 485,164 3,420,857
Forward contracts 187,392 1,857,542 2,480 164,209
Futures contracts 21,809 15,920,584


Options 2,742,035 498,484,022 2,741,592 488,482,756
Total 4,085,004 520,217,621 3,229,236 492,067,822
2018
Assets Liabilities
Fair value Notional Fair value Notional
Swaps 244,262 3,454,728 247,732 3,981,304
Forward contracts 573,963 809,202 17,170 19,142
Futures contracts 6,599 5,679,425


Options 867,207 78,746,383 726,497 82,579,675
Total 1,692,031 88,689,738 991,399 86,580,121
Below is the composition of the Derivative financial instruments
portfolio (assets and liabilities) by type of instrument, stated
fair value and by maturity:
2019
Fair Value % Up to From 3 to Above
Assets
Swap contracts 1,133,768 27 10,418 700,668 422,682
Forward contracts 187,392 5 159,163 28,175 54
Future contracts 21,809 1 21,809


Options 2,742,035 67 1,837,073 577,177 327,785
Total 4,085,004 100 2,028,463 1,306,020 750,521
Liabilities
Options 2,741,592 85 1,745,532 637,393 358,667
Forward contracts 2,480 1 1,693 325 462
Swap contracts 485,164 14 15,838 40,687 428,639
Total 3,229,236 100 1,763,063 678,405 787,768
2018
Fair value %
Up to 3 months From 3 to 12 Above 12 months
Assets
Swap contracts 244,262 14 4,675 25,054 214,533
Forward contracts 573,963 34 363,863 210,100

Future contracts 6,599 1 4,613 1,986

Options 867,207 51 255,281 234,742 377,184
Total 1,692,031 100 628,432 471,882 591,717
Liability
Options 726,497 73 128,470 217,387 380,640
Forward contracts 17,170 2 16,972 25 173
Swap contracts 247,732 25 7,710 25,094 214,928
Total 991,399 100 153,152 242,506 595,741
Derivatives financial instruments by index:
2019 2018
Notional Fair Value Notional Fair Value
Swap Contracts
Asset Position
Interest 3,955,473 1,133,768 3,454,728 244,262
Liability Position
Interest 3,420,857 (485,164 ) 3,981,304 (247,732 )
Forward Contracts
Asset Position
Foreign exchange 1,710,648 40,499 239,478 4,239
Share

— 342,681 342,681
Interest 146,893 146,893 227,043 227,043
Liability Position
Foreign exchange 162,551 (822 ) 2,234 (262 )
Shares 1,658 (1,658 ) 16,908 (16,908 )
Future Contracts
Purchase commitments
Foreign exchange 965 329 5,679,425 6,599
Interest 15,919,619 21,480


Options
Purchase commitments
Foreign exchange 37,500 82,369 1,734,063 115,570
Share 1,770,220 210,448 5,500,627 365,631
Commodities

— 213 1,582
Interest 496,676,302 2,449,218 71,511,480 384,424
Commitments to sell
Foreign exchange 37,500 (94,612 ) 2,059,104 (171,918 )
Shares 2,511,960 (229,291 ) 3,245,796 (172,748 )
Commodities

— 130 (1,391 )
Interest 485,933,296 (2,417,689 ) 77,274,645 (380,440 )
Assets 4,085,004 1,692,031
Liabilities (3,229,236 ) (991,399 )
Net 855,768 700,632

Hedge accounting

Hedge accounting3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Hedge accounting6. Hedge accounting
In the three months period ended March 31, 2020 and in the
year ended December 31, 2019, the objective for the Group was
to hedge the risk generated by the US$ variation from the
investments in USA, XP Holding International and XP Advisors
Inc.
The Group has entered into forward contracts to protect against
changes in future cash flows and exchange rate variation of net
investments in foreign operations known as Non Deliverable Forward
(“NDF”) contracts.
The Group undertakes risk management through the economic
relationship between hedge instruments and hedged item, in which it
is expected that these instruments will move in opposite
directions, in the same proportions, with the aim of neutralizing
the risk factors.
Hedged item Hedge instrument
Book Value Variation in Nominal Variation in ineffectiveness
Strategies Assets Liabilities
March 31, 2020
Foreign exchange risk
Hedge of net investment in foreign operations 228,563
— 52,428 385,484 (56,496 )
Total 228,563
— 52,428 385,484 (56,496 )
December 31, 2019
Foreign exchange risk
Hedge of net investment in foreign operations 186,412
— 5,946 248,896 (7,133 )
Total 186,412
— 5,946 248,896 (7,133 )
There was no ineffectiveness during March 31, 2020 and
December 31, 2019 in relation to the foreign net investment
hedge.
9. Hedge accounting
In the year ended December 31, 2019,2018 and 2017 the
objective for the Group was to hedge the risk generated by the USD
variation from the investments in USA, XP Holding International and
XP Advisors Inc.
The Group contract Non-Deliverable
The Group undertakes risk management through the economic
relationship between hedge instruments and hedged item, in which it
is expected that these instruments will move in opposite
directions, in the same proportions, with the aim of neutralizing
the risk factors.
Hedged item Hedge instrument
Book Value Variation in Nominal Variation in
Strategies Assets Liabilities
2019
Foreign exchange risk
Hedge of net investment in foreign operations 186,412
— 5,946 248,896 (7,133 )
Total 186,412
— 5,946 248,896 (7,133 )
2018
Foreign exchange risk
Hedge of net investment in foreign operations 147,179
— 18,645 225,901 (17,495 )
Total 147,179
— 18,645 225,901 (17,495 )
2017
Foreign exchange risk
Hedge of net investment in
foreign operations 100,323
— 2,034 145,552 (2,386 )
Total 100,323
— 2,034 145,552 (2,386 )
There was no ineffectiveness during 2019, 2018 and 2017 in relation
to the foreign net investment hedge.

Recoverable taxes

Recoverable taxes3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Recoverable taxes7. Securities trading and intermediation (receivable and
payable)
Represented by operations at B3 on behalf of and on account of
third parties, with liquidation operating cycle between D+1 and
D+3.
March 31, December 31,
Cash and settlement records 49 13,823
Debtors pending settlement 956,760 477,646
Other 58,976 13,514
Total Assets 1,015,785 504,983
Cash and settlement records 557,632 474,759
Creditors pending settlement 12,775,907 8,639,787
Total Liabilities 13,333,539 9,114,546
11. Recoverable taxes
2019 2018
Prepayments of income taxes (IRPJ and CSLL) 225,465 182,021
Contributions over revenue (PIS and COFINS) 16,859 533
Taxes on services (ISS) 846 698
Value added taxes (VAT) 150 98
Total 243,320 183,350
Current 243,320 183,350
Non-current

Property, equipment, intangible

Property, equipment, intangible assets and lease3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Property, equipment, intangible assets and lease8. Property, equipment, intangible assets and lease
a) Changes in the period
Property and equipment Intangible assets
As of January 1, 2019 99,127 504,915
Additions 11,375 8,061
Write-offs (56 ) (56 )
Depreciation / amortization in the period (4,672 ) (7,055 )
As of March 31, 2019 105,774 505,865
Cost 146,865 626,921
Accumulated depreciation / amortization (41,092 ) (121,056 )
As of January 1, 2020 142,464 553,452
Additions 20,746 19,914
Write-offs (324 )

Transfers (2,083 ) 2,083
Depreciation / amortization in the period (6,255 ) (15,648 )
As of March 31, 2020 154,548 559,801
Cost 211,839 672,045
Accumulated depreciation / amortization (57,291 ) (112,244 )
b) Impairment test for goodwill
Given the interdependency of cash flows and the merger of business
practices, all Group’s entities are considered a single cash
generating units (“CGU”) and, therefore, goodwill
impairment test is performed at the single operating level.
Therefore, the carrying amount considered for the impairment test
represents the Company’s equity.
The Group performs its annual impairment test in December and when
circumstances indicates that the carrying value may be impaired.
The Group’s impairment tests are based
on value-in-use
As of March 31, 2020, there were no indicators of a potential
impairment of goodwill.
c) Leases
Set out below, are the carrying amounts of the
Group’s right-of-use
Right-of-use assets Lease liabilities
As of January 1, 2019 133,870 148,494
Depreciation expense (3,430 )

Interest expense
— 2,328
Effects of exchange rate (1,281 ) 134
Payment of lease liabilities
— (7,490 )
As of March 31, 2019 129,159 143,466
As of December 31, 2019 227,478 255,406
Additions (i) 19,273 19,361
Depreciation expense (9,623 )

Interest expense
— 6,145
Revaluation (ii) (19,968 ) (19,968 )
Impairment (3,040 )

Effects of exchange rate 22,016 23,561
Payment of lease liabilities
— (15,558 )
As of March 31, 2020 236,136 268,947
Current
— 56,581
Non-current 236,136 212,367
(i)
Additions to right-of-use
(ii)
Revaluation of discount rate that represent the
current market assessment.
The Group recognized rent expense from short-term leases
and low-value
13. Property, equipment, intangible assets and leases
(a) Property and equipment
Data Furniture Security Facilities Fixed Total
Balance as of January 1, 2017 9,679 8,677 459 8,789 1,061 28,665
Additions 6,308 6,309 5,650 9,915 2,187 30,369
Business combination (Note 5 (ii)) 804 412 34 478 1,728
Write-offs (149 ) (1,690 ) (9 ) (2,503 )
— (4,351 )
Transfers 709 2,181
— 358 (3,248 )

Depreciations in the year (3,608 ) (2,628 ) (1,227 ) (1,875 )
— (9,338 )
Balance as of December 31, 2017 13,743 13,261 4,907 15,162
— 47,073
Cost 27,400 19,124 6,403 19,281
— 72,208
Accumulated depreciation (13,657 ) (5,863 ) (1,496 ) (4,119 )
— (25,135 )
Balance as of January 1, 2018 13,743 13,261 4,907 15,162
— 47,073
Additions 22,319 10,448 376 9,930 40,076 83,149
Write-offs (40 ) (924 ) (30 ) (5,078 ) (553 ) (6,625 )
Transfers 31 2,109 192 37,191 (39,523 )

Depreciation in the year (7,282 ) (3,253 ) (2,892 ) (11,043 )
— (24,470 )
Balance as of December 31, 2018 28,771 21,641 2,553 46,162
— 99,127
Cost 48,023 29,613 6,388 47,843
— 131,867
Accumulated depreciation (19,252 ) (7,972 ) (3,835 ) (1,681 )
— (32,740 )
Balance as of January 1, 2019 28,771 21,641 2,553 46,162
— 99,127
Additions 15,039 9,942 664 22,315 24,539 72,499
Write-offs (304 ) (2,047 )
— (6,112 )
— (8,463 )
Transfers
— 2,409
— 22,130 (24,539 )

Depreciation in the year (9,059 ) (4,189 ) (1,673 ) (5,778 )
— (20,699 )
Balance as of December 31, 2019 34,447 27,756 1,544 78,717
— 142,464
Cost 62,235 38,086 7,716 84,726
— 192,763
Accumulated depreciation (27,788 ) (10,330 ) (6,172 ) (6,009 )
— (50,299 )
(b) Intangible assets
Software Goodwill Costumer Trademarks Other Total
Balance as of January 1, 2017 16,871 90,999 9,179 1,799 4,422 123,270
Additions 12,243

— 33 8,351 20,627
Business combination (Note 5 ii)) 4,404 281,702 50,077 19,304 2,028 357,515
Write-offs (140 )



— (140 )
Transfers (799 )


— 799

Amortization in the year (6,879 )
— (9,286 ) (898 ) (1,002 ) (18,065 )
Balance as of December 31, 2017 25,700 372,701 49,970 20,238 14,598 483,207
Cost 35,489 372,701 72,072 21,230 18,753 520,245
Accumulated Amortization (9,789 )
— (22,102 ) (992 ) (4,155 ) (37,038 )
Balance as of January 1, 2018 25,700 372,701 49,970 20,238 14,598 483,207
Additions 27,828

— 1,009 24,680 53,517
Business combination
— 9,799


— 9,799
Write-offs (15 )


— (13,275 ) (13,290 )
Amortization in the year (14,742 )
— (8,426 ) (2,024 ) (3,126 ) (28,318 )
Balance as of December 31, 2018 38,771 382,500 41,544 19,223 22,877 504,915
Cost 56,127 382,500 72,072 22,239 31,308 564,246
Accumulated amortization (17,356 )
— (30,528 ) (3,016 ) (8,431 ) (59,331 )
Balance as of January 1, 2019 38,771 382,500 41,544 19,223 22,877 504,915
Additions 51,348
— 27,000
— 10,601 88,949
Write-offs (2,283 )

— (33 ) (466 ) (2,782 )
Amortization in the year (21,526 )
— (7,945 ) (2,702 ) (5,457 ) (37,630 )
Balance as of December 31, 2019 66,310 382,500 60,599 16,488 27,555 553,452
Cost 104,270 382,500 105,977 22,239 39,823 654,809
Accumulated amortization (37,960 )
— (45,378 ) (5,751 ) (12,268 ) (101,357 )
(c) Impairment test for goodwill
Given the interdependency of cash flows and the merger of business
practices, all Group’s entities are considered a single cash
generating units (“CGU”) and, therefore, goodwill
impairment test is performed at the single operating level.
Therefore, the carrying amount considered for the impairment test
represents the Company’s equity.
The Group tests whether goodwill has suffered any impairment on an
annual basis. For the years ended December 31, 2019 and 2018,
the recoverable amount of the single CGU was determined based
on value-in-use
Cash flows beyond the four-year period are extrapolated using the
estimated growth rates, which are consistent with forecasts
included in industry reports specific to the industry in which the
Group operates.
The Group performed its annual impairment test as of
December 31, 2019 and 2018 which did not result in the need to
recognize impairment losses on the carrying value of goodwill.
Key assumptions used in value-in-use
Assumption Approach used to determine values
Sales Average annual growth rate over the four-year
forecast period; based on past performance and management’s
expectations of market development.
Budgeted gross margin Based on past performance and
management’s expectations for the future.
Other operating costs Fixed costs, which do not vary significantly
with sales volumes or prices. Management forecasts these costs
based on the current structure of the business, adjusting for
inflationary increases but not reflecting any future restructurings
or cost saving measures. The amounts disclosed above are the
average operating costs for the four-year forecast period.
Annual capital expenditure Expected cash costs. This is based on the
historical experience of management, and the planned refurbishment
expenditure. No incremental revenue or cost savings are assumed in
the value-in-use
Long-term growth rate This is the weighted average growth rate used
to extrapolate cash flows beyond the budget period. The rates are
consistent with forecasts included in industry reports.
Pre-tax Reflect specific risks relating to the relevant
segments and the countries in which they operate.
Discount rates represent the current market assessment of the risks
specific to the Group, taking into consideration the time value of
the money and risks of the underlying assets that have not been
incorporated in the cash flow estimates, The discount rate
calculation is based on the specific circumstances of the Group and
is derived from its weighted average cost of capital (WACC). The
WACC takes into account both debt and equity. The cost of equity is
derived from the expected return on investment by the Group’s
investors. The cost of debt is based on the interest-bearing
borrowings the Group has. Adjustments to the discount rate are made
to factor in the specific amount and timing of the future tax flows
in order to reflect a pre-tax pre-tax
d) Leases
Set out below, are the carrying amounts of the
Group’s right-of-use
Right-of-use assets Lease liabilities
As of January 1, 2019 133,870 148,494
Additions (i) 123,529 124,283
Depreciation expense (32,831 )

Interest expense
— 17,613
Effects of exchange rate 2,910 2,995
Payment of lease liabilities
— (37,979 )
As of December 31, 2019 227,478 255,406
Current
— 52,771
Non-current 227,478 202,635
(i) Additions to right-of-use
The Group recognized rent expense from short-term leases
and low-value

Borrowings and lease liabilitie

Borrowings and lease liabilities3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Borrowings and lease liabilities9. Borrowings and lease liabilities
Interest rate % Maturity March 31, December 31,
Bank borrowings—domestic (i) 113% of March 2021 42,124 52,668
Related parties 42,124 52,668
Financial institution (ii) CDI + April 2023 333,368 329,410
Third parties 333,368 329,410
Total borrowings 375,492 382,078
Lease liabilities 268,947 255,406
Total borrowings and lease liabilities 644,439 637,484
Current 405,498 116,450
Non-current 238,941 521,034
(*)
Brazilian Interbank Offering Rate (CDI)
(i)
Loan agreement with Itaú Unibanco with maturity
on March 8, 2021, payable in 36 monthly installments.
(ii)
Loan agreement entered into on March 28, 2018
with the International Finance Corporation (IFC). The principal
amount is due on the maturity date and accrued interests payable at
every six months.
All the obligations above contain financial covenants, which comply
with certain performance conditions. The Group has complied with
these covenants throughout the reporting period (Note 24 (b)).
15. Borrowings and lease liabilities
Interest rate %
Maturity 2019 2018
Bank borrowings—domestic (i) 113% of CDI (*) March 2021 52,668 94,921
Related parties 52,668 94,921
Bank borrowings—domestic (ii)
111% of CDI (*) July 2019
— 44,352
Financial institution (iii) CDI (*) April 2023 329,410 330,336
Third parties 329,410 374,688
Total borrowings 382,078 469,609
Lease liabilities (Note 13.(d)) 255,406

Total borrowings and lease liabilities 637,484 469,609
Current 116,450 114,489
Non-current 521,034 355,120
(*)
Brazilian Interbank Offering Rate (CDI)
(i)
Loan agreement with Itaú Unibanco with maturity
on March 8, 2021, payable in 36 monthly installments.
(ii)
Loan agreement with Banco JP Morgan S.A., hired in
connection with the acquisition of Rico, payable in seven quarterly
installments. In July 2019, the loan was fully settled.
(iii)
Loan agreement entered into on March 28, 2018
with the International Finance Corporation (IFC). The principal
amount is due on the maturity date and accrued interests payable at
every six months.
All the obligations above contain financial covenants, which comply
with certain performance conditions. The Group has complied with
these covenants throughout the reporting period (Note 34 (ii)).

Debentures

Debentures3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Debentures10. Debentures
On May 15, 2019 and September 28, 2018, the Company
issued Debentures, non-convertible
Issuance Quantity Annual rate Issuance Maturity Unit value at Unit value at period-end Book
1st 400,000 108.0% CDI 9/28/2018 9/28/2020 R$ 1,000.00 R$ 1,093.87 438,010
2st 400,000 107.5% CDI 5/15/2019 5/15/2022 R$ 1,000.00 R$ 1,016.83 406,351
Total 800,000 844,361
March 31, December 31,
Principal 800,000 800,000
Interest 56,258 47,127
Payments (11,897 ) (11,897 )
Total 844,361 835,230
Current 444,361 435,230
Non-current 400,000 400,000
The principal amount and accrued interest payables related to the
first issuance are due on the maturity date, while for the second
issuance, 50% of the principal amount is due on May 15, 2021
and the remaining balance on the maturity date, and accrued
interest payable every 12 months from the issuance date. There were
no amounts paid in the period ended March 31, 2020.
Debentures are subject to financial covenants, which comply with
certain performance conditions. The Group has complied with these
covenants throughout the reporting period (Note 24(b)).
16. Debentures
On May 15, 2019 and September 28, 2018, the Company
issued Debentures, non-convertible
Issuance Quantity (units) Annual rate Issuance date Maturity date Unit value at Unit value at period-end Book value
1st 400,000 108,0% CDI 9/28/2018 9/28/2020 R$ 1,000.00 R$ 1,082.01 433,262
2st 400,000 107,5% CDI 5/15/2019 5/15/2022 R$ 1,000.00 R$ 1,005.88 401,968
Total 800,000 835,230
2019 2018
Principal 800,000 400,000
Interest 47,127 6,538
Payments (11,897 )

Total 835,230 406,538
Current 435,230

Non-current 400,000 406,538
The principal amount and accrued interest payables related to the
first issuance are due on the maturity date, while for the second
issuance, 50% of the principal amount is due on May 15, 2021
and the remaining balance on the maturity date, and accrued
interest payable every 12 months from the issuance date. There were
no amounts paid in 2019.
Debentures are subject to financial covenants, which comply with
certain performance conditions. The Group has complied with these
covenants throughout the reporting period (Note 34(ii)).

Private pension liabilities

Private pension liabilities3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Private pension liabilities11. Private pension liabilities
As of March 31, 2020, active plans are principally
accumulation of financial resources through products PGBL and VGBL
structured in the form of variable contribution, for the purpose of
granting participants with returns based on the accumulated capital
in the form of monthly withdraws for a certain term or temporary
monthly withdraws.
In this respect, such financial products represent investment
contracts that have the legal form of private pension plans but
which do not transfer insurance risk to the Group. Therefore,
contributions received from participants are accounted for as
liabilities and balance consists of the balance of the participant
in the linked FIE at the reporting date (Note 4 (a)).
a) Changes in the period
Three months period
2020 2019
As of January 1 3,759,090 16,059
Contributions received 278,357 1,766
Transfer with third party plans 1,636,370 31,777
Redemptions paid (46,585 )

Gain (loss) from FIE (472,144 ) 324
As of March 31 5,155,088 49,926
Contributions invested in FIEs (Note 4 (a)) 5,155,088 49,926
21. Private pension liabilities
As of December 31, 2019, active plans are principally
accumulation of financial resources through products PGBL and VGBL
structured in the form of variable contribution, for the purpose of
granting participants with returns based on the accumulated capital
in the form of monthly withdraws for a certain term or temporary
monthly withdraws.
In this respect, such financial products represent investment
contracts that have the legal form of private pension plans but
which do not transfer insurance risk to the Group. Therefore,
contributions received from participants are accounted for as
liabilities and balance consists of the balance of the participant
in the linked FIE at the reporting date (Note 7 (a)).
Changes in the period
2019 2018
As of January 1 16,059

Contributions received 609,639 16,059
Transfer with third party plans 3,047,492

Withdraws (20,153 )

Interest received from FIE 106,053

As of December 31 3,759,090 16,059
Contributions invested in FIEs 3,759,090 16,059

Income tax

Income tax3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Income tax12. Income tax
a) Deferred income tax
Deferred tax assets (DTA) and deferred tax liabilities (DTL) are
comprised of the main following components:
Balance Sheet Net change in the three
March 31, December 31, March 31, March 31, 2019
Tax losses carryforwards 39,298 17,146 22,152 (29,611 )
Goodwill on business combinations (i) 14,714 22,303 (7,589 ) (9,068 )
Provisions for IFAs’ commissions 64,669 68,041 (3,372 )

Revaluations of financial assets at fair value (26,370 ) 25,259 (51,629 ) (2,486 )
Expected credit losses 13,695 5,666 8,029 (75 )
Financial instruments taxed on redemption


— 9,852
Profit sharing plan 71,309 141,136 (69,828 ) 51,494
Net gain on hedge instruments 22,706 (36,384 ) 59,091 (1,080 )
Share based plan 14,187 2,950 11,237

Other provisions 47,304 33,284 14,019 776
Total 261,512 279,401 (17,890 ) 19,802
Deferred tax assets 261,512 284,533
Deferred tax liabilities
— (5,132 )
(i)
For tax purposes, goodwill is amortized over 5 years
on a straight-line basis when the entity acquired is sold or merged
into another entity.
The changes in the net deferred tax were recognized as follows:
Three months period
2020 2019
As of January 1 279,401 140,400
Foreign exchange variations 21,055 (114 )
Charges to statement of income (47,072 ) 18,643
Tax relating to components of other comprehensive income 8,128 1,273
As of March 31 261,512 160,202
Unrecognized deferred taxes
Deferred tax assets are recognized for tax losses to the extent
that the realization of the related tax benefit against future
taxable profits is probable. The Group did not recognize deferred
tax assets of R$ 12,237 (December 31, 2019—R$ 18,402)
mainly in respect of losses from subsidiaries overseas and that can
be carried forward and used against future taxable income. A
deferred tax asset was not recorded as taxable income is not
expected.
b) Income tax expense reconciliation
The tax on the Group’s pre-tax
Three months period
2020 2019
Income before taxes 516,531 303,227
Combined tax rate in Brazil (i) 34 % 34 %
Tax expense at the combined rate 175,620 103,097
Income (loss) from entities not subject to taxation (9,246 ) (48 )
Effects from entities taxed at different rates 14,287 6,505
Effects from entities taxed at different method (ii) (64,678 ) (4,968 )
Intercompany transactions with different taxation (9,156 ) (7,767 )
Tax incentives 605

Non deductible expenses (non-taxable 6,586 717
Others 4,959 (4,747 )
Total 118,977 92,789
Effective tax rate 23.03 % 30.60 %
Current 71,905 111,432
Deferred 47,072 (18,643 )
Total expense 118,977 92,789
(i)
Considering that XP Inc. is domiciled in Cayman and
there is no income tax in that jurisdiction, the combined tax rate
of 34% demonstrated above is the current rate applied to XP
Investimentos S.A. which is the holding company of all operating
entities of XP Inc. in Brazil.
(ii)
Certain eligible subsidiaries adopted the PPM tax
regime and the effect of the presumed profit of subsidiaries
represents the difference between the taxation based on this method
and the amount that would be due based on the statutory rate
applied to the taxable profit of the subsidiaries. Additionally,
some entities and investment funds adopt different taxation regimes
according to the applicable rules in their jurisdictions.
Other comprehensive income
The tax (charge)/credit relating to components of other
comprehensive income is as follows:
Before tax (Charge) After tax
Foreign exchange variation of investees located abroad 1,325
— 1,325
Gains (losses) on net investment hedge (1,277 ) 434 (843 )
Changes in the fair value of financial assets at fair value (2,021 ) 838 (1,183 )
As of March 31, 2019 (1,973 ) 1,272 (701 )
Foreign exchange variation of investees located abroad 56,560
— 56,560
Gains (losses) on net investment hedge (85,600 ) 29,104 (56,496 )
Changes in the fair value of financial assets at fair value 52,467 (20,977 ) 31,490
As of March 31, 2020 23,427 8,127 31,554
22. Income tax
(a) Deferred income tax
Deferred tax assets (DTA) and deferred tax liabilities (DTL) are
comprised of the main following components:
Balance Sheet Net change in the year
2019 2018 2019 2018 2017
Tax losses carryforwards 17,146 55,358 (38,212 ) 37,774 17,584
Goodwill on business combinations (i) 22,303 59,993 (37,690 ) (56,789 ) (51,327 )
Provisions for IFAs’ commissions 68,041 31,031 37,010 4,744 26,156
Revaluations of financial assets at fair value 25,259 1,397 23,862 (2,427 ) 4,030
Expected credit losses 5,666 3,079 2,587 (2,345 ) 4,329
Financial instruments taxed on redemption
— (13,041 ) 13,041 (6,230 ) (6,811 )
Profit sharing plan 141,136
— 141,136


Net gain on hedge instruments (36,384 ) (1,441 ) (34,943 ) (51,423 ) 49,382
Share-base compensation 2,950
— 2,950
Other provisions 33,284 4,024 29,260 (2,572 ) 5,251
Total 279,401 140,400 139,001 (79,268 ) 48,594
Deferred tax assets 284,533 152,425
Deferred tax liabilities (5,132 ) (12,025 )
(i)
For tax purposes, goodwill is amortized over 5 years
on a straight-line basis when the entity acquired is sold or merged
into another entity.
The changes in the net deferred tax were recognized as follows:
2019 2018 2017
At January 1 140,400 219,668 171,074
Foreign exchange variations (3,461 ) (9,259 ) (1,155 )
Business combination (Note 5 (ii))

— 3,751
Charges to statement of income 139,411 (76,455 ) 45,325
Tax relating to components of other comprehensive income 3,051 6,446 673
At December 31 279,401 140,400 219,668
Unrecognized deferred taxes
Deferred tax assets are recognized for tax losses to the extent
that the realization of the related tax benefit against future
taxable profits is probable. The Group did not recognize deferred
tax assets of R$ 18,402 (2018—R$ 12,025) mainly in
respect of losses from subsidiaries overseas and that can be
carried forward and used against future taxable income.
(b) Income tax expense reconciliation
The tax on the Group’s pre-tax
2019 2018 2017
Income before taxes 1,544,109 640,728 575,507
Combined tax rate in Brazil (a) 34,00 % 34,00 % 34,00 %
Tax expense at the combined rate 524,997 217,848 195,672
Income from entities not subject to taxation (9,551 ) (3,647 ) (5,101 )
Effects from entities taxed at different rates 25,948 16,444 9,078
Effects from entities taxed at different method (b) (24,089 ) (18,183 ) (25,971 )
Intercompany transactions with different taxation (50,138 ) (38,255 ) (30,264 )
Tax incentives (9,772 ) (1,408 ) (265 )
Non-deductible (non-taxable 10,888 (689 ) 175
Others (13,658 ) 3,288 8,642
Total 454,625 175,398 151,966
Effective tax rate 29,44 % 27,20 % 26,38 %
Current 594,037 98,943 197,291
Deferred (139,412 ) 76,455 (45,325 )
Total expense 454,625 175,398 151,966
(a)
Considering that XP Inc. is domiciled in Cayman and
there is no income tax in that jurisdiction, the combined tax rate
of 34% demonstrated above is the current rate applied to XP
Investimentos S.A. which is the holding company of all operanting
entities of XP Inc. in Brazil.
(b)
Certain eligible subsidiaries adopted the PPM tax
regime and the effect of the presumed profit of subsidiaries
represents the difference between the taxation based on this method
and the amount that would be due based on the statutory rate
applied to the taxable profit of the subsidiaries.
Other comprehensive income
The tax (charge)/credit relating to components of other
comprehensive income is as follows:
Before tax (Charge) / Credit After tax
Foreign exchange variation of investees located abroad 2,034
— 2,034
Gains (losses) on net investment hedge (3,124 ) 738 (2,386 )
Changes in the fair value of financial assets at fair value 275 (65 ) 210
As of December 31, 2017 (815 ) 673 (142 )
Foreign exchange variation of investees located abroad 18,645
— 18,645
Gains (losses) on net investment hedge (26,508 ) 9,013 (17,495 )
Changes in the fair value of financial assets at fair value 6,727 (2,567 ) 4,160
As of December 31, 2018 (1,136 ) 6,446 5,310
Foreign exchange variation of investees located abroad 6,823
— 6,823
Gains (losses) on net investment hedge (10,543 ) 3,410 (7,133 )
Changes in the fair value of financial assets at fair value 1,058 (360 ) 698
As of December 31, 2019 (2,662 ) 3,050 388

Equity

Equity3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Equity13. Equity
(a) Issued capital
The Company has an authorized share capital of US$
35 thousand, corresponding to 3,500,000,000 authorized shares
with a par value of US$ 0,00001 each of which:

2,000,000,000 shares are designated as Class A
common shares and issued; and

1,000,000,000 shares are designated as Class B
common shares and issued.
The remaining 500,000,000 authorized but unissued shares are
presently undesignated and may be issued by XP Inc. board of
directors as common shares of any class or as shares with
preferred, deferred or other special rights or restrictions.
Therefore, the Company is authorized to increase capital up to this
limit, subject to approval of the Board of Directors.
As of March 31, 2020 and December 31, 2019, the Company
have US$ 23 thousand of issued capital which were represented
by 354,181,346 Class A common shares and 197,618,980
Class B common shares. In the IPO that took place on
December 11, 2019, the Company issued 83,387,238 new
Class A common shares, with a corresponding increased of US$ 2
in the issued capital of the Company.
(b) Additional paid-in
In December 2019, immediately prior the completion of the IPO, the
Company had 257,456,251,558 Class A common shares and
251,790,558 Class B common shares of its authorized share
capital issued. Class A and Class B common shares.
At the Board of Directors meetings on November 30, 2019, the
Company’s shareholders approved a reverse share split of 4:1
(four for one) for an initial consideration to IPO with a
conversion of 2,036,988,542 into 509,247,134 shares. On the same
event shareholders also approved the conversion of 30,807,911
Class B common shares of the Company into Class A common
shares.
In December 2019, as a result of the completion of the IPO describe
in Note 1.1, 42,553,192 new Class A common shares were
issued.
As mentioned in Note 20, the Board of Directors approved on
December, 2019 a share based long-term incentive plan, which the
maximum number of shares should not exceed 5% of the issued and
outstanding shares. As of March 31, 2020 the Company has
1,906,024 (December 31, 2019—1,921,669) restricted share
units (“RSUs”) and 2,190,377 (December 31,
2019—2,190,377) performance restricted units
(“PSUs”) to be issued at the vesting date.
The additional paid-in
(c) Dividends distribution
The Group has not adopted a dividend policy with respect to future
distributions of dividends. The amount of any distributions will
depend on many factors such as the Company’s results of
operations, financial condition, cash requirements, prospects and
other factors deemed relevant by XP Inc. board of directors and,
where applicable, the shareholders.
The proposal and payment of dividends recorded in the
Company’s financial statements, subject to the approval of
the shareholders in General Meetings.
For the three months period ended March 31, 2020 and 2019, the
Company has not declared and paid dividends to the controlling
shareholders.
(d) Other comprehensive income
Increases or decreases in value attributed to assets and
liabilities are classified as equity valuation adjustments, while
not being computed in the income for the period in accordance with
the accrual basis as a result of their valuation at fair value.
23. Equity
(a) Issued capital
The Company has an authorized share capital of US$
35 thousand, corresponding to 3,500,000,000 authorized shares
with a par value of US$ 0,00001 each of which:

2,000,000,000 shares are designated as Class A
common shares and issued; and

1,000,000,000 shares are designated as Class B
common sharesand issued.
The remaining 500,000,000 authorized but unissued shares are
presently undesignated and may be issued by our board of directors
as common shares of any class or as shares with preferred, deferred
or other special rights or restrictions.Therefore, the Company is
authorized to increase capital up to this limit, subject to
approval of the Board of Directors.
As of December 31, 2019, the Company have US$ 23 thousand
of issued capital which were represented by 354,181,346
Class A common shares and 197,618,980 Class B common
shares. In the IPO that took place on December 11, 2019, the
Company issued 83,387,238 new Class A common shares, with a
corresponding increased of US$ 2 in the issued capital of the
Company.
(b) Additional paid-in
In December 2019, immediately prior the completion of the IPO, we
had 257,456,251,558 Class A common shares and 251,790,558
Class B common shares of our authorized share capital issued.
Class A and Class B common shares, have the following
rights:

Each holder of a Class B common share is
entitled, in respect of such share, to 10 votes per share, whereas
the holder of a Class A common share is entitled, in respect
of such share, to one vote per share.

Each holder of Class A common shares and
Class B common shares vote together as a single class on all
matters (including the election of directors) submitted to a vote
of shareholders, except as provided below and as otherwise required
by law.

Class consents from the holders of Class A
common shares and Class B common shares, as applicable, shall
be required for any modifications to the rights attached to their
respective class of shares the rights conferred on holders of
Class A common shares shall not be deemed to be varied by the
creation or issue of further Class B common shares and vice
versa; and

the rights attaching to the Class A common shares
and the Class B common shares shall not be deemed to be varied
by the creation or issue of shares with preferred or other rights,
including, without limitation, shares with enhanced or weighted
voting rights.
The Articles of Association provide that at any time when there are
Class A common shares in issue, Class B common shares may
only be issued pursuant to: (a) a share split, subdivision of
shares or similar transaction or where a dividend or other
distribution is paid by the issue of shares or rights to acquire
shares or following capitalization of profits; (b) a merger,
consolidation, or other business combination involving the issuance
of Class B common shares as full or partial consideration; or
(c) an issuance of Class A common shares, whereby holders
of the Class B common shares are entitled to purchase a number
of Class B common shares that would allow them to maintain
their proportional ownership and voting interests in XP Inc.
Below is a summary of the issuances and conversions of shares
during 2019, 2018 and 2017, after giving effect to the share split
mentioned before:
Class A (prior Class B (prior Total Shares
As of January 1, 2017 325,011,655 159,906,862 484,918,517
Transfer of classes (49,011,642 ) 49,011,642

As of December 31, 2017 276,000,013 208,918,504 484,918,517
Issued for cash
— 24,328,617 24,328,617
Transfer of classes (20,867,198 ) 20,867,198

As of December 31, 2018 255,132,815 254,114,319 509,247,134
Corporate reorganization 30,807,911 (30,807,911 )

Transfer of classes 25,687,428 (25,687,428 )

Initial public offering 42,553,192
— 42,553,192
As of December 31, 2019 354,181,346 197,618,980 551,800,326
In March 2017, along with the reverse share split, shareholders
also approved the conversion of 196,046,598 common shares (or
49,011,649 Class A common shares after reverse share split and
reclassification) of the Company into preferred shares including
the conversion of 28 preferred shares (or 7 Class B common
shares after the reverse share split and reclassification) into
common shares, with no contributions or changes in the share
capital.
On August 9, 2018, shareholders also approved the conversion
of 83,468,792 (20,867,198 Class A common reverse shares after
reverse share split and reclassification) of the Company into
preferred shares, with no contributions or changes in the share
capital.
On August 31, 2018, the Company received capital contributions
in the amount of R$ 673,294, upon the issuance of 97,314,470
(24,328,617 Class B common shares after reverse share split)
new preferred shares.
At the Board of Directors meetings on November 30, 2019, the
Company’s shareholders approved a reverse share split of 4:1
(four for one) for a initial consideration to IPO with a conversion
of 2,036,988,542 into 509,247,134 shares. On the same event
shareholders also approved the conversion of 30,807,911
Class B common shares of the Company into Class A common
shares.
In December 2019, as a result of the completion of the IPO describe
in Note 1.1, 42,553,192 new Class A common shares were
issued.
As mentioned in Note 30, the Board of Directors approved on
December, 2019 a share based long-term incentive plan, which the
maximum number of shares should not exceed 5% of the issued and
outstanding shares. As of December 31, 2019, the Company
granted 1,921,669 restricted share units (“RSUs”) and
2,190,377 performance restricted units (“PSUs”) to be
issued at the vesting date.
The additional paid-in
(c) Dividends distribution
The Group has not adopted a dividend policy with respect to future
distributions of dividends. The amount of any distributions will
depend on many factors such as our results of operations, financial
condition, cash requirements, prospects and other factors deemed
relevant by our board of directors and, where applicable, our
shareholders.
The proposal and payment of dividends recorded in the
Company’s financial statements, subject to the approval of
the shareholders in General Meetings, is detailed below:
2019 2018 2017
Net income 1,089,485 465,330 423,541
Total dividends 500,000 200,000 314,998
At January 1
— 125,000

Amount recognized in the year 500,000 200,000 314,998
Dividends paid in the year (500,000 ) (325,000 ) (189,998 )
At December 31

— 125,000
In 2017, shareholders decided in general meeting for distribution
of dividends in total of R$ 314,998, out of which R$ 37,437 to be
distributed from Other reserves.

Related party transactions

Related party transactions3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Related party transactions14. Related party transactions
The main transactions carried with related parties, under
commutative conditions, including interest rates, terms and
guarantees, and period-end
Assets/(Liabilities) Revenue/(Expenses)
Three months period ended
Relation and
transaction March 31, December 31, 2020 2019
Shareholders with significant influence (i) 175,859 (732,420 ) (26,039 ) (9,841 )
Securities 152,636 123,813 3,780 2,094
Securities purchased under agreements to resell 64,999 196,009 (30,087 )

Accounts receivable 348 594 797 61
Securities sold under repurchase agreements
— (1,000,168 )


Borrowings (42,124 ) (52,668 ) (529 ) (11,996 )
(i)
These transactions are related to Itaú Unibanco
who became shareholder of the Company in 2018 and since then a
related party.
Transactions with related parties also includes transactions among
the Company and its subsidiaries in the ordinary course of
operations include services rendered such as: (i) education,
consulting and business advisory; (ii) financial advisory and
financial consulting in general; (iii) management of resources
and portfolio management; (iv) information technology and data
processing; and (v) insurance. The effects of these
transactions have been eliminated and do not have effects on the
unaudited interim condensed consolidated financial statements.
24. Related party transactions
Transactions and remuneration of services with related parties are
carried out in the ordinary course of business and under
commutative conditions, including interest rates, terms and
guarantees, and do not involve risks greater than normal collection
or present other disadvantages.
(a) Key-person
Key management includes executive statutory directors, members of
the Board of Directors and Executive Boards. The compensation paid
or payable to key management for their services is shown below:
2019 2018 2017
Fixed compensation 4,821 3,329 2,708
Variable compensation 22,060 30,316 18,316
Total 26,881 33,645 21,024
On December 2019, the Board of Directors approved the grant of
performance share unit (“PSUs”) to certain
directors.
The executive statutory directors of XP Inc control XP Controle
Participações S.A.
(b) Transactions with related parties
The main transactions carried with related parties
for year-end
Assets/(Liabilities) Revenue/(Expenses)
Relation and transaction 2019 2018 2019 2018 2017
Shareholders with significant influence (i) (732,420 ) (451,481 ) (49,779 ) (40,585 )

Securities 123,813 69,647 10,381 147,258

Securities purchased under agreements to resell 196,009
— 1,550


Accounts receivable 594
— 1,025


Securities sold under repurchase agreements (1,000,168 ) (426,207 ) (58,078 ) (3,586 )

Borrowings (52,668 ) (94,921 ) (4,657 ) (184,257 )

(i)
These transactions are related to Itaú Unibanco
who became shareholder of the Company in 2018 and since then a
related party. Therefore, transactions and balances with Itaú
Unibanco in 2017 are not being reported as transactions with
related parties.
Transactions with related parties also includes transactions among
the Company and its subsidiaries in the course of normal operations
include services rendered such as: (i) education, consulting
and business advisory; (ii) financial advisory and financial
consulting in general; (iii) management of resources and
portfolio management; (iv) information technology and data
processing; and (v) insurance. The effects of these
transactions have been eliminated and do not have effects on the
consolidated financial statements.

Provisions and contingent liabi

Provisions and contingent liabilities3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Provisions and contingent liabilities15. Provisions and contingent liabilities
The Company and its subsidiaries are party to judicial and
administrative litigations before various courts and government
bodies, arising from the ordinary course of operations, involving
tax, civil and labor matters and other issues. Periodically,
Management evaluates the tax, civil and labor and risks, based on
legal, economic and tax supporting data, in order to classify the
risks as probable, possible or remote, in accordance with the
chances of them occurring and being settled, taking into
consideration, case by case, the analyses prepared by external and
internal legal advisors.
March 31, December 31,
Tax contingencies 9,956 9,878
Civil contingencies 2,412 2,673
Labor contingencies 2,529 2,642
Total provision 14,897 15,193
Judicial deposits (i) 10,050 18,403
(i)
There are circumstances in which the Group is
questioning the legitimacy of certain litigations or claims filed
against it. As a result, either because of a judicial order or
based on the strategy adopted by management, the Group might be
required to secure part or the whole amount in question by means of
judicial deposits, without this being characterized as the
settlement of the liability. These amounts are classified as
“Other assets” on the consolidated balance sheets and
referred above for information.
Changes in the provision during the three months period
Three months period
2020 2019
As of January 1 15,193 17,474
Monetary correction 325 336
Provisions accrued 159 11
Provisions reversed (546 ) —
Payments (234 ) (318 )
As of March 31 14,897 17,503
Nature of claims
a) Tax
As of March 31, 2020, the Group has claims classified as
probable risk of loss in the amount of R$ 9,956 (December 31,
2019—R$ 9,878), regarding social contributions on revenue
(PIS and COFINS), questioning the exclusion of this own taxes on
the calculation basis over revenues. In accordance with Brazilian
laws and tax regulations, this practice is legal for VAT (ICMS)
taxes, and other companies have recently obtained significant
success in applying this concept for PIS and COFINS taxes. These
lawsuits are supported by court deposits in its entirety.
b) Civil
The majority of the civil claims involve matters that are normal
and specific to the business, and refer to demands for indemnity
primarily due to: (i) financial losses in the stock market;
(ii) portfolio management; and (iii) alleged losses
generated from the liquidation of costumers assets in portfolio due
to margin cause and/or negative balance. As of March 31, 2020,
there were 34 civil claims for which the likelihood of loss has
been classified as probable, in the amount of R$ 2,412 (December
31, 2019—R$ 2,673). An amount of R$ 100 was deposited in
court as of March 31, 2020 (December 31, 2019—R$
9,744).
c) Labor
Labor claims to which the Group is party primarily concern:
(i) the existence (or otherwise) of a working relationship
between the Group and IFAs; and (ii) severance payment of
former employees. As of March 31, 2020, the Company and its
subsidiaries are the defendants in approximately 10 cases involving
labor matters for which the likelihood of loss has been classified
as probable, in the amount of R$ 2,529 (December 31, 2019—R$
2,642).
Contingent liabilities—probability of loss classified as
possible
In addition to the provisions constituted, the Company and its
subsidiaries have several labor, civil and tax contingencies in
progress, in which they are the defendants, and the likelihood of
loss, based on the opinions of the internal and external legal
advisors, is considered possible, and the contingencies amount to
approximately R$ 163,982 (December 31, 2019—R$ 153,951).
Below is summarized these possible claims by nature:
March 31, 2020 December 31, 2019
Tax (i) 69,963 69,386
Civil (ii) 89,419 81,414
Labor 4,600 3,151
Total 163,982 153,951
(i)
In December 2019, the Group was notified by tax
authorities for a requirement of social security contributions due
to employee profit sharing payments related to the calendar year
2015, allegedly in violation of Brazilian Law 10,101/00. Currently,
the case at administrative level in assessment by the
Administrative Council of Tax Appeals (“CARF”),
awaiting the decision on the Group’s appeal. There are other
favorable CARF precedents on the subject and the Group obtained
legal opinions that support the Group’s defense and current
practice.
(ii)
The Group is defendant in 456 civil claims by
customers and investment agents, mainly related to portfolio
management, risk rating, copyrights and contract termination. The
total amount represents the collective maximum value to which the
Group is exposed based on the claims’ amounts monetarily
restated.
25. Provisions and contingent liabilities
The Company and its subsidiaries are party to judicial and
administrative litigations before various courts and government
bodies, arising from the normal course of operations, involving
tax, civil and labor matters and other issues. Periodically,
Management evaluates the tax, civil and labor and risks, based on
legal, economic and tax supporting data, in order to classify the
risks as probable, possible or remote, in accordance with the
chances of them occurring and being settled, taking into
consideration, case by case, the analyses prepared by external and
internal legal advisors.
2019 2018
Tax contingencies 9,878 9,392
Civil contingencies 2,673 5,610
Labor contingencies 2,642 2,472
Total provision 15,193 17,474
Judicial deposits (a) 18,403 14,850
(a)
There are circumstances in which the Group is
questioning the legitimacy of certain litigations or claims filed
against us. As a result, either because of a judicial order or
based on the strategy adopted by management, the Group might be
required to secure part or the whole amount in question by means of
judicial deposits, without this being characterized as the
settlement of the liability. These amounts are classified as
“Other assets” on the consolidated balance sheets, and
referred above for information.
Changes in the provision during the year
2019 2018 2017
Balance at January 1 17,474 11,843 5,334
Monetary correction 2,492 1,667 2,226
Provision/(Reversal) (1,601 ) 7,897 3,531
Business combination (Note 5 (ii))

— 7,921
Payments (3,172 ) (3,933 ) (7,169 )
Balance at December 31 15,193 17,474 11,843
Nature of claims
a) Tax
As of December 31, 2019, the Group has claims classified as
probable risk of loss in the amount of R$ 9,878 (December 31,
2018—R$ 9,392), regarding social contributions on revenue
(PIS and COFINS), questioning the exclusion of this own taxes on
the calculation basis over revenues. In accordance with Brazilian
laws and tax regulations, this practice is legal for VAT (ICMS)
taxes, and other companies have recently obtained significant
success in applying this concept for PIS and COFINS taxes. These
lawsuits are supported by court deposits in its entirety.
b) Civil
The majority of the civil claims involve matters that are normal
and specific to the business, and refer to demands for indemnity
primarily due to: (i) financial losses in the stock market;
(ii) portfolio management; and (iii) alleged losses
generated from the liquidation of costumers assets in portfolio due
to margin cause and/or negative balance. As of December 31,
2019, there were 29 civil claims for which the likelihood of loss
has been classified as probable, in the amount of R$ 2,673
(December 31, 2018 - R$ 5,610). An amount of R$ 9,744 was deposited
in court as of December 31, 2019 (December 31, 2018 – R$
4,500).
c) Labor
Labor claims to which the Group is party primarily concern:
(i) the existence (or otherwise) of a working relationship
between the Group and IFAs; and (ii) severance payment of
former employees. As of December 31, 2019, the Company and its
subsidiaries are the defendants in approximately 9 cases involving
labor matters for which the likelihood of loss has been rated as
probable, in the amount of R$ 2,642 (December 31, 2018 - R$
2,472).
Contingent liabilities—probability of loss classified as
possible
In addition to the provisions constituted, the Company and its
subsidiaries have several labor, civil and tax contingencies in
progress, in which they are the defendants, and the likelihood of
loss, based on the opinions of the internal and external legal
advisors, is considered possible, and the contingencies amount to
approximately R$ 153,951 (December 31, 2018 - R$ 89,323).
Below is summarized these claims by nature:
2019 2018
Tax (i) 69,386 19,971
Civil (ii) 81,414 64,820
Labor 3,151 4,532
Total 153,951 89,323
(i)
In December 2019, the Group was notified by tax
authorities for a requirement of social security contributions due
to employee profit sharing payments related to the calendar year
2015, allegedly in violation of Brazilian Law 10,101/00. Currently,
the case at administrative level in assessment by the
Administrative Council of Tax Appeals (“CARF”),
awaiting the decision on the Group’s appeal. There are other
favorable CARF precedents on the subject and the Group obtained
legal opinions that support the Group’s defense and current
practice.
(ii)
The Group is defendant in 6 civil claims by customers
and investment agents, mainly related to portfolio management, risk
rating, copyrights and contract termination. The total amount
represents the collective maximum value to which the Group is
exposed based on the claims’ amounts monetarily restated.

Total revenue and income

Total revenue and income3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Total revenue and income16. Total revenue and income
a) Net revenue from services rendered
Revenue from contracts with customers derives mostly from services
rendered and fees charged at daily transactions from customers,
therefore mostly recognized at a point in time. Disaggregation of
revenue by major service lines are as follows:
Three months period ended March 31,
2020 2019
Major service lines
Brokerage commission 504,644 288,819
Securities placement 348,174 160,391
Management fees 255,049 140,858
Insurance brokerage fee 29,226 18,548
Educational services 25,700 13,750
Other services 94,085 43,709
1,256,878 666,075
(-) Sales taxes and contributions on revenue (i) (104,932 ) (66,828 )
1,151,946 599,247
(i)
Mostly related to taxes on services (ISS) and
contributions on revenue (PIS and COFINS).
b) Net income from financial instruments
Three months period ended March 31,
2020 2019
Net Income of financial instruments at fair value through profit or
loss 391,689 274,520
Net Income of financial instruments measured at amortized cost and
at fair value through other comprehensive income 207,299 65,822
(-) Taxes and contributions on financial income (16,093 ) (5,597 )
582,895 334,745
c) Disaggregation by geographic location
Breakdown of total net revenue and income and selected assets by
geographic location:
Three months period ended March 31,
2020 2019
Brazil 1,634,093 863,587
United Stated of America 91,890 62,958
Europe 8,858 7,447
Total revenue and income 1,734,841 933,992
March 31, 2020 December 31, 2019
Brazil 1,162,433 1,208,737
United Stated of America 147,374 224,244
Europe 7,475 16,476
Selected assets (i) 1,317,282 1,449,457
(i)
Selected assets are total assets of the Group, less:
cash, financial assets and deferred tax assets and are presented by
geographic location.
None of the customers represented more than 10% of Group’s
revenues for the periods presented.
26. Total revenue and income
a) Net revenue from services rendered
Revenue from contracts with customers derives mostly from services
rendered and fees charged at daily transactions from customers,
therefore mostly recognized at a point in time. Disaggregation of
revenue by major service lines are as follows:
2019 2018 2017
Major service lines
Brokerage commission 1,288,135 861,068 639,615
Securities placement 1,154,786 631,949 401,402
Management fees 1,035,224 527,644 221,936
Insurance brokerage fee 106,438 56,713 29,167
Educational services 97,986 42,653 18,682
Other services 275,467 160,409 111,647
3,958,036 2,280,436 1,422,449
(-) Sales taxes and contributions on revenue (i) (362,264 ) (225,887 ) (138,833 )
3,595,772 2,054,549 1,283,616
(i)
Mostly related to taxes on services (ISS) and
contributions on revenue (PIS and COFINS).
b) Net income from financial instruments
2019 2018 2017
Net Income of financial instruments at fair value through profit or
loss 1,360,207 821,617 562,895
Net Income of financial instruments measured at amortized cost and
at fair value through other comprehensive income 199,947 114,442 79,380
(-) Taxes and contributions on financial income (28,118 ) (32,155 ) (19,241 )
1,532,036 903,904 623,034
c) Disaggregation by geographic location
2019 2018 2017
Brazil 4,790,236 2,716,459 1,751,419
United States 307,456 204,207 131,198
Europe 30,116 37,787 24,033
Total Revenue and Income 5,127,808 2,958,453 1,906,650
2019 2018
Brazil 1,208,737 881,434
United States 224,244 31,829
Europe 16,476 7,556
Selected assets (i) 1,449,457 920,819
(i)
Selected assets are Total assets of the Company, less:
financial assets and deferred tax assets and are presented by
geographic location.
None of the clients represented more than 10% of our revenues for
the periods presented.

Operating costs

Operating costs3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Operating costs17. Operating costs
Three months period
2020 2019
Commission costs 441,951 242,831
Operating losses and provisions 38,303 2,901
Other costs 98,562 62,024
Clearing house fees 63,504 34,513
Third parties’ services 18,148 19,579
Other 16,910 7,932
Total 578,816 307,756
27. Operating costs
2019 2018 2017
Commission costs 1,269,309 750,103 455,241
Operating losses and provisions 23,332 9,989 7,148
Other costs 313,419 181,154 117,491
Clearing house fees 201,083 96,896 71,419
Third parties’ services 76,669 53,124 28,953
Other 35,667 31,134 17,119
Total 1,606,060 941,246 579,880

Operating expenses by nature

Operating expenses by nature3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Operating expenses by nature18. Operating expenses by nature
Three months period
2020 2019
Selling expenses 28,476 24,518
Advertising and publicity 28,476 24,518
Administrative expenses 578,116 368,285
Personnel expenses 400,980 255,844
Compensation 177,119 71,466
Employee profit-sharing and bonus 103,020 150,185
Executives profit-sharing 72,677 10,143
Benefits 17,549 10,834
Social charges 30,052 12,515
Other 563 701
Other taxes expenses 6,843 6,635
Depreciation of property and equipment and right-of-use 15,878 8,102
Amortization of intangible assets 15,648 7,055
Other administrative expenses 138,767 90,649
Data processing 55,947 33,328
Technical services 20,768 15,360
Third parties’ services 40,193 21,968
Rent expenses 3,390 6,318
Communication 4,499 3,454
Travel 5,699 3,674
Legal and judicial 677 414
Other 7,594 6,133
Total 606,592 392,803
28. Operating expenses by nature
2019 2018 2017
Selling expenses 155,115 96,075 32,881
Advertising and publicity 155,115 96,075 32,881
Administrative expenses 1,891,481 1,176,805 649,585
Personnel expenses 1,261,887 712,060 428,772
Compensation 408,394 221,746 134,535
Employee profit-sharing and bonus 645,992 356,938 217,982
Executives profit-sharing 67,547 50,656 28,802
Benefits 47,457 35,922 16,697
Social charges 88,960 45,115 28,836
Other 3,537 1,683 1,920
Other taxes expenses 39,691 43,945 20,749
Depreciation of property and equipment and right-of-use 53,530 26,278 9,338
Amortization of intangible assets 37,630 26,510 18,065
Other administrative expenses 498,743 368,012 172,661
Data processing 178,860 130,678 71,861
Technical services 85,782 76,476 26,985
Third parties’ services 145,730 63,333 19,006
Rent expenses 10,575 41,950 16,492
Communication 17,495 11,457 11,276
Travel 21,676 13,804 9,791
Legal and judicial 3,406 9,023 2,638
Other 35,219 21,291 14,612
Total 2,046,596 1,272,880 682,466

Other operating income (expense

Other operating income (expenses), net3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Other operating income (expenses), net19. Other operating income (expenses), net
Three months period
2020 2019
Other operating income 27,666 90,613
Recovery of charges and expenses 501 51,800
Reversal of operating provisions 704 4,392
Revenue from incentives from Tesouro Direto, B3 and others 21,672 8,855
Interest received on tax 2,281 22,931
Other 2,508 2,635
Other operating expenses (41,549 ) (5,437 )
Legal proceedings and agreement with customers (10,246 ) (437 )
Losses on write-off (59 ) (3 )
Fines and penalties (624 ) (730 )
Associations and regulatory fees (3,321 ) (839 )
Charity (16,596 ) (1,250 )
Other (10,703 ) (2,178 )
Total (13,883 ) 85,176
29. Other operating income, net
2019 2018 2017
Other operating income 208,245 20,682 23,764
Recovery of charges and expenses 53,453 6,873 3,165
Reversal of operating provisions 9,767 2,641 2,684
Revenue from incentives from Tesouro Direto and B3 101,615 9,931 4,226
Other 43,410 1,237 13,689
Other operating expenses (54,888 ) (51,971 ) (31,468 )
Legal proceedings and agreement with customers (9,499 ) (16,385 ) (18,370 )
Tax incentive expenses (10,265 ) (2,015 ) (2,980 )
Losses on write-off (7,060 ) (11,064 ) (1,503 )
Fines and penalties (1,191 ) (7,446 ) (2,755 )
Associations and regulatory fees (4,216 ) (3,059 ) (2,073 )
Charity (6,751 ) (5,938 ) (50 )
Other (15,906 ) (6,064 ) (3,737 )
Total 153,357 (31,289 ) (7,704 )

Share-based plan

Share-based plan3 Months Ended
Mar. 31, 2020
Text Block [Abstract]
Share-based plan20. Share-based plan
a) Share-based Plan
The establishment of the Plan was approved by the Board of
Director’s meeting on December 6, 2019 and the first
grant of RSUs and PSUs was on December 10, 2019.
Under the Restricted Stock Unit plan, stocks are awarded at no cost
to the recipient upon their grant date. RSUs are granted
semi-annually, their vesting conditions are service related and
they vest at a rate of 20% after three years, 20% after four years,
and 60% after five years. After the vesting periods, common shares
will be issued to the recipients. For the PSUs, the vesting is the
following: (i) 33% will vest on the third year after the grant,
(ii) 33%% will vest on the fourth year after the grant and (iii)
34% will vest on the fifth year after the grant date.
Under the Performance Share Unit, stocks are granted to eligible
participants and their vesting conditions are based on five-year
period metrics and also based on the total shareholder return
(TSR), including share price growth, dividends and capital
returns.
If an eligible participant ceases to be employed by the Company,
within the vesting period, the rights will be forfeited, except in
limited circumstances that are approved by the board on
a case-by-case
Once the PSUs are vested, the shares of common stock that are
delivered must be held for an
additional one-year
b) Fair value of shares granted
Estimating fair value for share-based payment transactions requires
determination of the most appropriate valuation model and
underlying assumptions, which depends on the terms and conditions
of the grant and the information available at the grant date.
The Company uses certain methodologies to estimate fair value which
include the following:

Estimation of fair value based on equity transactions
with third parties close to the grant date; and

Other valuation techniques including share pricing
models such as Monte Carlo.
These estimates also require determination of the most appropriate
inputs to the valuation models including assumptions regarding the
expected life of a share-based payment or appreciation right,
expected volatility of the price of the Group’s shares and
expected dividend yield.
c) Outstanding shares granted and valuation inputs
The maximum number of shares available for issuance under the
share-based plan shall not exceed 5% of the issued and outstanding
shares. As of March 31, 2020, the outstanding number of
Company reserved under the plans were 4,096,401 (December 31,
2019—4,112,046) including 1,906,024 RSUs (December 31,
2019—1,921,669) and 2,190,377 PSUs (December 31,
2019—2,190,377).
For the period ended March 31, 2020, total compensation
expense of both plans were R$28,408, including R$5,187 of tax
provisions and does not include any tax benefits on total
share-based compensation expense once, this expense is not
deductible for tax purposes. The tax benefits will be perceived
when the shares are converted into common shares.
The weighted-average grant-date fair value of RSU and PSU shares
was US$27 and US$ 34,56 respectively.
During the period ended March 31, 2020, there were 15,645
forfeited RSUs and no shares granted, exercised, expired or
vested.

Earnings per share (basic and d

Earnings per share (basic and diluted)3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Earnings per share (basic and diluted)21. Earnings per share (basic and diluted)
The Company implemented a four-to-one
The following table reflects the net income and share data used in
the basic and diluted earnings per share (“EPS”)
calculations:
Three months period
2020 2019
Net income attributable to Parent company 396,860 209,215
Basic weighted average quantity of shares (a) 551,800 509,247
Basic earnings per share—R$ 0.7192 0.4108
Share-based incentive program (a) 4,096

Diluted weighted average quantity of shares 555,896 509,247
Diluted earnings per share—R$ 0.7139 0.4108
(a)
Thousands of shares.
31. Earnings per share (basic and diluted)
The Company implemented a four-to-one
2019 2018 2017
Net income 1,080,484 461,440 413,874
Basic weighted average quantity of shares (1) 511,462 493,117 484,919
Basic earnings per share 2,1125 0,9358 0,8535
Share-based incentive program (1)(2) 248


Diluted weighted average quantity of shares (1) 511,710 493,117 484,919
Diluted earnings per share 2,1115 0,9358 0,8535
(1)
Thousands of shares.
(2)
See Note 30.

Determination of fair value

Determination of fair value3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Determination of fair value22. Determination of fair value
The Group measures financial instruments such as certain financial
investments and derivatives at fair value at each balance sheet
date.
Level 1: The fair value of financial instruments traded in
active markets is based on quoted market prices at the end of the
reporting period. The financial instruments included in the level 1
consist mainly in public financial instruments and financial
instruments negotiated on active markets (i.e. Stock
Exchanges).
Level 2: The fair value of financial instruments that are not
traded in active markets is determined using valuation techniques,
which maximize the use of observable market data and rely as little
as possible on entity-specific estimates. If all significant inputs
required to fair value as instrument are directly or indirectly
observable, the instrument is included in level 2. The financial
instruments classified as level 2 are composed mainly from private
financial instruments and financial instruments negotiated in a
secondary market.
Level 3: If one or more of the significant inputs is
unobservable, the instrument is included in level 3. This is the
case for unlisted equity securities. As of March 31, 2020 and
December 31, 2019, there were no financial instruments
classified as level 3.
Specific valuation techniques used to value financial instruments
include:

Financial assets (other than derivatives)—The
fair value of securities is determined by reference to their
closing prices on the date of presentation of the consolidated
financial statements. If there is no market price, fair value is
estimated based on the present value of future cash flows
discounted using the observable rates and market rates on the date
of presentation.

Swap—These operations swap cash flow based on
the comparison of profitability between two indexers. Thus, the
agent assumes both positions—put in one indexer and call on
another.

Forward—at the market quotation value, and the
installments receivable or payable are prefixed to a future date,
adjusted to present value, based on market rates published at
B3.

Futures—Foreign exchange rates, prices of shares
and commodities are commitments to buy or sell a financial
instrument at a future date, at a contracted price or yield and may
be settled in cash or through delivery. Daily cash settlements of
price movements are made for all instruments.

Options—option contracts give the purchaser the
right to buy the instrument at a fixed price negotiated at a future
date. Those who acquire the right must pay a premium to the seller.
This premium is not the price of the instrument, but only an amount
paid to have the option (possibility) to buy or sell the instrument
at a future date for a previously agreed price.

Other financial assets and liabilities—Fair
value, which is determined for disclosure purposes, is calculated
based on the present value of the principal and future cash flows,
discounted using the observable rates and market rates on the date
the financial statements are presented.
Below are the Group financial assets and liabilities by level
within the fair value hierarchy. The Group assessment of the
significance of a particular input to the fair value measurement
requires judgment and may affect the valuation of fair value assets
and liabilities and their placement within the fair value hierarchy
levels:
March, 31 2020
Level 1 Level 2 Fair Value Book Value
Financial Assets
Financial assets at Fair value through profit or loss
Securities 22,640,753 2,450,970 25,091,723 25,091,723
Derivative financial instruments 1,215 8,513,577 8,514,793 8,514,793
Fair value through other comprehensive income
Securities 4,896,387
— 4,896,387 4,896,387
Evaluated at amortized cost
Securities
— 1,267,826 1,267,826 1,267,826
Securities purchased under agreements to resell
— 14,916,794 14,916,794 14,916,794
Securities trading and intermediation
— 1,015,785 1,015,785 1,015,785
Accounts receivable
— 424,702 424,702 424,702
Loan operations
— 63,589 63,589 63,589
Other financial assets
— 25,472 25,472 25,472
Financial liabilities
Fair value through profit or loss
Securities loaned 721,131
— 721,131 721,131
Derivative financial instruments
— 7,526,075 7,526,075 7,526,075
Evaluated at amortized cost
Securities sold under repurchase agreements
— 21,111,301 21,111,301 21,111,301
Securities trading and intermediation
— 13,333,539 13,333,539 13,333,539
Borrowings and lease liabilities
— 644,184 644,184 644,439
Debentures
— 832,810 832,810 844,361
Accounts payables
— 265,197 265,197 265,197
Structured operations certificates
— 150,461 150,461 150,461
Other financial liabilities
— 31,485 31,485 31,485
December 31, 2019
Level 1 Level 2 Fair Value Book Value
Financial Assets
Financial assets at Fair value through profit or loss
Securities 20,277,031 2,166,361 22,443,392 22,443,392
Derivative financial instruments 21,809 4,063,195 4,085,004 4,085,004
Fair value through other comprehensive income
Securities 2,616,118
— 2,616,118 2,616,118
Evaluated at amortized cost
Securities
— 3,914,923 3,914,923 2,266,971
Securities purchased under agreements to resell
— 9,490,090 9,490,090 9,490,090
Securities trading and intermediation
— 504,983 504,983 504,983
Accounts receivable
— 462,029 462,029 462,029
Loan operations
— 386 386 386
Other financial assets
— 19,805 19,805 19,805
Financial liabilities
Fair value through profit or loss
Securities loaned 2,021,707
— 2,021,707 2,021,707
Derivative financial instruments
— 3,229,236 3,229,236 3,229,236
Evaluated at amortized cost
Securities sold under repurchase agreements
— 15,638,407 15,638,407 15,638,407
Securities trading and intermediation
— 9,114,546 9,114,546 9,114,546
Borrowings and lease liabilities
— 633,781 633,781 637,484
Debentures
— 836,001 836,001 835,230
Accounts payables
— 266,813 266,813 266,813
Structured operations certificates
— 19,474 19,474 19,474
Other financial liabilities
— 79,127 79,127 79,157
32. Determination of fair value
The Group measures financial instruments such as certain financial
investments and derivatives at fair value at each balance sheet
date.
Level 1: The fair value of financial instruments traded in
active markets is based on quoted market prices at the end of the
reporting period. The financial instruments included in the level 1
consist mainly in public financial instruments and financial
instruments negotiated on active markets (i.e., Stock
Exchanges).
Level 2: The fair value of financial instruments that are not
traded in active markets is determined using valuation techniques,
which maximize the use of observable market data and rely as little
as possible on entity-specific estimates. If all significant inputs
required to fair value as instrument are directly or indirectly
observable, the instrument is included in level 2. The financial
instruments classified as level 2 are composed mainly from private
financial instruments and financial instruments negotiated in a
secondary market.
Level 3: If one or more of the significant inputs is
unobservable, the instrument is included in level 3. This is the
case for unlisted equity securities. As of December 31, 2019,
2018 and 2017 there were no financial instruments classified as
level 3.
Fair values have been assessed for purposes of measurement based on
the methods below,
(a) Cash and cash equivalents, Securities purchased under
agreements to resell and Securities sold under repurchase
agreements
The fair value of cash and cash equivalents, securities purchased
under agreements to resell and securities sold under repurchase
agreements approximates the carrying amount.
(b) Financial assets (other than derivatives)
The fair value of securities is determined by reference to their
closing prices on the date of presentation of the consolidated
financial statements. If there is no market quotation, fair value
is estimated based on the present value of future cash flows
discounted using the observable rates and market rates on the date
of presentation.
(c) Derivative financial instruments
Criteria and methodologies for calculating the fair value of
derivative financial instruments are described in Note 8.
(d) Other financial assets and liabilities
Fair value, which is determined for disclosure purposes, is
calculated based on the present value of the principal and future
cash flows, discounted using the observable rates and market rates
on the date the financial statements are presented.
Financial instruments not measured at fair value (securities
trading and intermediation, accounts receivable and accounts
payables) were not disclosed as their carrying amounts approximates
their fair values.
Below are the Group financial assets and liabilities by level
within the fair value hierarchy. The Group assessment of the
significance of a particular input to the fair value measurement
requires judgment and may affect the valuation of fair value assets
and liabilities and their placement within the fair value hierarchy
levels:
2019
Level 1 Level 2 Fair Value Book Value
Financial Assets
Financial assets at Fair value through profit or loss
Securities 20,277,031 2,166,361 22,443,392 22,443,392
Derivative financial instruments 21,809 4,063,195 4,085,004 4,085,004
Fair value through other comprehensive income
Securities 2,616,118
— 2,616,118 2,616,118
Evaluated at amortized cost
Securities
— 3,914,923 3,914,923 2,266,971
Securities purchased under agreements to resell
— 9,490,090 9,490,090 9,490,090
Securities trading and intermediation
— 504,983 504,983 504,983
Accounts receivable
— 462,029 462,029 462,029
Other financial assets
— 20,191 20,191 20,191
Financial liabilities
Fair value through profit or loss
Securities loaned 2,021,707
— 2,021,707 2,021,707
Derivative financial instruments
— 3,229,236 3,229,236 3,229,236
Evaluated at amortized cost
Securities sold under repurchase agreements
— 15,638,407 15,638,407 15,638,407
Securities trading and intermediation
— 9,114,546 9,114,546 9,114,546
Borrowings and lease liabilities
— 633,781 633,781 637,484
Debentures
— 836,001 836,001 835,230
Accounts payables
— 266,813 266,813 266,813
Other financial liabilities
— 98,601 98,601 98,631
2018
Level 1 Level 2 Fair Value Book Value
Financial Assets
Financial assets at Fair value through profit or loss
Securities 5,259,591 1,031,380 6,290,971 6,290,971
Derivative financial instruments 6,599 1,685,432 1,692,031 1,692,031
Fair value through other comprehensive income
Securities 695,778
— 695,778 695,778
Evaluated at amortized cost
Securities
— 153,709 153,709 155,292
Securities purchased under agreements to resell
— 6,568,246 6,568,246 6,570,609
Securities trading and intermediation
— 898,312 898,312 898,312
Accounts receivable
— 219,200 219,200 219,200
Other financial assets
— 60,423 60,423 60,423
Financial liabilities
Fair value through profit or loss
Securities loaned 1,259,579
— 1,259,579 1,259,579
Derivative financial instruments
— 991,399 991,399 991,399
Evaluated at amortized cost
Securities sold under repurchase agreements
— 6,792,316 6,792,316 6,640,694
Securities trading and intermediation
— 5,306,628 5,306,628 5,306,628
Borrowings
— 459,487 459,487 469,609
Debentures
— 406,540 406,540 406,538
Accounts payables
— 134,579 134,579 134,579
Other financial liabilities
— 7,011 7,011 7,011

Management of financial risks a

Management of financial risks and financial instruments3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Management of financial risks and financial instruments23. Management of financial risks and financial
instruments
The Group’s activities are exposed to a variety of financial
risks: credit risk, liquidity risk, market risk (including currency
risk, interest rate risk and price risk), and operating risk. The
Group’s overall risk management structure focuses on the
unpredictability of financial markets and seeks to minimize
potential adverse effects on the Group’s financial
performance. The Group uses derivative financial instruments to
mitigate certain risk exposures. It is the Group’s policy
that no trading in derivatives for speculative purposes may be
undertaken.
Management has overall responsibility for establishing and
supervising the risk management structure of the Group. Risk
Management is under a separated structure from business areas,
reporting directly to senior management, to ensure exemption of
conflict of interest, and segregation of functions appropriate to
good corporate governance and market practices.
The risk management policies of the Group are established to
identify and analyze the risks faced, to set appropriate risk
limits and controls, and to monitor risks and adherence to the
limits. Risk management policies and systems are reviewed regularly
to reflect changes in market conditions and in the activities of
the Group. The Group, through its training and management standards
and procedures, developed a disciplined and constructive control
environment within which all its employees are aware of their
duties and obligations.
Regarding one specific subsidiary XP CCTVM, the organizational
structure is based on the recommendations proposed by the Basel
Accord, in which procedures, policies and methodology are
formalized consistent with risk tolerance and with the business
strategy and the various risks inherent to the operations and/or
processes, including market, liquidity, credit and operating risks.
The Group seek to follow the same risk management practices as
those applying to all companies.
Such risk management processes are also related to going concern
management procedures, mainly in terms of formulating impact
analyses, business continuity plans, contingency plans, backup
plans and crisis management.
The unaudited interim condensed consolidated financial statements
do not include all financial risk management information and
disclosures required in the annual financial statements; they
should be read in conjunction with the Group’s annual
financial statements as of December 31, 2019. There have been
no changes in the risk management department or in any risk
management policies since the year-end.
33. Management of financial risks and financial
instruments
(a) Overview
The Group is exposed to the following risks:
(i)
Credit risk;
(ii)
Liquidity risk;
(iii)
Market risk;

Currency risk;

Interest rate risk;

Price risk.
(iv)
Operating risk.
(b) Risk management structure
Management has overall responsibility for establishing and
supervising the risk management structure of the Group. Risk
Management is under a separated structure from business areas,
reporting directly to senior management, to ensure exemption of
conflict of interest, and segregation of functions appropriate to
good corporate governance and market practices.
The risk management policies of the Group are established to
identify and analyze the risks faced, to set appropriate risk
limits and controls, and to monitor risks and adherence to the
limits. Risk management policies and systems are reviewed regularly
to reflect changes in market conditions and in the activities of
the Group. The Group, through its training and management standards
and procedures, developed a disciplined and constructive control
environment within which all its employees are aware of their
duties and obligations.
Regarding the subsidiary XP CCTVM and the others subsidiaries
components of XP Prudential Conglomerate (Brazilian Central Bank
oversight definition), the organizational structure is based on the
recommendations proposed by the Basel Accord, in which procedures,
policies and methodology are formalized consistent with risk
tolerance and with the business strategy and the various risks
inherent to the operations and/or processes, including market,
liquidity, credit and operating risks. The Group seek to follow the
same risk management practices as those applying to all
companies.
Such risk management processes are also related to going concern
management procedures, mainly in terms of formulating impact
analyses, business continuity plans, contingency plans, backup
plans and crisis management.
(c) Credit risk
Credit risk is defined as the possibility of losses associated with
the failure, by the borrower or counterparty, of their respective
financial obligations under the agreed terms, the devaluation of
the credit agreement resulting from the deterioration in the
borrower’s risk rating, the reduction gains or remuneration,
the advantages granted in the negotiation and the costs of
recovery.
The Risk Management document establishes its credit policy based on
the composition of the portfolio by security, by internal rating of
issuer and/or the issue, by the current economic activity, by the
duration of the portfolio, by the macroeconomic variables, among
others.
The Credit Analysis department is also actively involved in this
process and it is responsible for assessing the credit risk of
issues and issuers with which it maintains or intends to maintain
credit relationships, also using an internal credit risk allocation
methodology (rating) to classify the likelihood of loss of
counterparties.
Management undertakes credit quality analysis of assets that are
not past due or reduced to recoverable value. As of
December 31, 2019 and 2018, such assets were substantially
represented by Securities purchased under agreements to resell of
which the counterparties are Brazilian banks with low credit risk,
securities issued by the Brazilian government, as well as
derivative financial instruments transactions, which are mostly
traded on the stock exchange (B3 S.A. – Brasil, Bolsa,
Balcão) and which, therefore, have its guarantee.
The carrying amount of the financial assets representing the
maximum exposure to credit risk is shown in the table below:
2019 2018
Financial assets
Securities purchased under agreements to resell 9,490,090 6,570,609
Securities 27,326,481 7,142,041
Public securities 20,381,125 4,704,604
Private securities 6,945,356 2,437,437
Derivative financial instruments 4,085,004 1,692,031
Securities trading and intermediation 504,983 898,312
Accounts receivable 462,029 219,200
Other financial assets 20,191 60,423
Total 41,888,778 16,582,616
(d) Liquidity risk
Liquidity risk is the possibility that the institution will not be
able to efficiently honor its expected, unexpected, current or
future obligations.
Liquidity management operates in line with the Group’s
strategy and business model, being compatible with the nature of
operations, the complexity of its products and the relevance of
risk exposure. This liquidity management policy establishes actions
to be taken in cases of liquidity contingency, and these must be
sufficient to generate a new meaning for cash within the required
minimum limits.
The group maintains an adequate level of liquidity at all times,
always working with a minimum cash limit. This is done through
management that is compatible and consistent with your ability
obtaining resources in the market, with its budgetary targets for
the evolution of the volume of its assets and is based on the
management of cash flows, observing the minimum limits of daily
cash balances and cash needs projections, in the management of
stocks of highly liquid assets and simulations of adverse
scenarios.
Risk structure and management are the responsibility of the Risk
department, reporting to the Executive Board, thus avoiding any
conflict of interest with departments that require liquidity.
(d1) Maturities of financial liabilities
The tables below summarizes the Group’s financial liabilities
into groupings based on their contractual maturities:
2019
Liabilities Up to From 2 to From 3 to From 1 to Above Contractual
Securities loaned 2,021,707



— 2,021,707
Derivative financial instruments 1,557,088 211,882 685,566 732,286 42,414 3,229,236
Securities sold under repurchase agreements 15,638,407



— 15,638,407
Securities trading and intermediation 9,114,546



— 9,114,546
Borrowings and lease liabilities 8,239 26,258 81,953 521,034
— 637,484
Debentures

— 435,230 400,000
— 835,230
Accounts payables 266,813



— 266,813
Other financial liabilities 79,157


— 19,474 98,631
Total 28,685,957 238,140 1,167,519 1,688,550 61,888 31,842,054
2018
Liabilities Up to From 2 to 3 months From 3 to From 1 to 5 years Above Contractual
Securities loaned 770,270 478,741 10,568

— 1,259,579
Derivative financial instruments 152,971 182 242,506 560,798 34,942 991,399
Securities sold under repurchase agreements 68,738 5,439,405 1,132,551

— 6,640,694
Securities trading and intermediation 5,306,628



— 5,306,628
Borrowings and lease liabilities 19,032 22,752 72,705 355,120
— 469,609
Debentures


— 406,538
— 406,538
Accounts payables 134,579



— 134,579
Other financial liabilities 7,011



— 7,011
Total 6,459,229 5,941,080 1,458,330 1,322,456 34,942 15,216,037
(e) Market risk
Market risk is the risk that the fair value or future cash flows of
a financial instrument will fluctuate because of changes in market
prices. Market risk comprises mainly three types of risk: foreign
exchange variation, interest rates and share prices.
The aim of market risk management is to control exposure to market
risks, within acceptable parameters, while optimizing return.
Market risk management for operations is carried out through
policies, control procedures and prior identification of risks in
new products and activities, with the purpose to maintain market
risk exposure at levels considered acceptable by the Group and to
meet the business strategy and limits defined by the Risk
Committee.
The main tool used to measure and control the exposure risk of the
Group to the market, mainly in relation to their trading assets
portfolio, is the Maps Luna program, which calculates the capital
allocation based on the exposure risk factors in the regulations
issued by Brazil Central Bank (“BACEN”) for financial
institutions, which are taken as a basis for the verification of
the risk exposure of the assets of the Group.
In order to comply with the provisions of the regulatory body, the
financial institutions of the Group make daily control of the
exposure by calculating the risk portions, recording the results in
Document 2011—Daily Statement of Capital Requirements (DDR)
in BACEN Circular Letter No, 3,331/08, submitting it daily to this
institution.
With the formalized rules, the Risk Department has the objective of
controlling, monitoring and ensuring compliance with
the pre-established non-compliance
In addition to the control performed by the tool, the Group adopt
guidelines to control the risk of the assets that mark the Treasury
operations so that the own portfolios of the participating
companies are composed of assets that have low volatility and,
consequently, less exposure to risk, In the case
of non-compliance
(e1) Currency risk
The Group is subject to foreign currency risk as they hold interest
in XP Holding International, XP Advisors Inc, and XP Holding UK
Ltd, whose equity as of December 31, 2019 was USD
43,323 thousand (US$ 37,671 thousand as of
December 31, 2018), US$ 744 thousand (US$
313 thousand as of December 31, 2018) and GBP
3,059 thousand (GBP 4,337 thousand as of
December 31, 2018) respectively.
The risk of the XP Holding International and XP Advisors Inc, is
hedged with the objective of minimizing the volatility of the
functional currency (BRL) against the US$ arising from foreign
investment abroad (see Note 9).
The foreign currency exposure risk of XP Holding UK Ltd, is not
hedged.
On December 31, 2017, the Company had a borrowing denominated
in US$, which was settled in the amount of R$ 778,481 on
August 31, 2018.
(e2) Interest rate risk
It arises from the possibility that the Group incur in gains or
losses arising from fluctuations in interest rates on its financial
assets and liabilities.
Below are presented the risk rates that The Group are exposed:

Selic/DI

IGPM

IPCA

PRE

TJLP

Foreign exchange coupon
(e3) Price risk
Price risk is the risk arising from the change in the price of the
investment fund portfolio and of shares listed on the stock
exchange, held in the portfolio of the Group, which may affect its
profit or loss, The price risk is controlled by the management of
the Group, based on the diversification of its portfolio and/or
through the use of derivatives contracts, such as options or
futures.
(e4) Sensitivity analysis
According to the market information, the Group performed the
sensitivity analysis by market risk factors considered relevant.
The largest losses, by risk factor, in each of the scenarios were
presented with an impact on the profit or loss, providing a view of
the exposure by risk factor of the Group in exceptional scenarios.
The following sensitivity analyzes do not consider the functioning
dynamics of risk and treasury areas, since once these losses are
detected, risk mitigation measures are quickly triggered,
minimizing the possibility of significant losses.
2019
Trading portfolio
Exposures Scenarios
Risk factors
Risk of variation in: I II III
Pre-fixed Pre-fixed (907 ) (163,057 ) (445,866 )
Exchange coupons Foreign currencies coupon rate (67 ) 570 (854 )
Foreign currencies Exchange rates (2,102 ) (1,493 ) 43,908
Price indexes Inflation coupon rates (63 ) (782 ) (301 )
Shares Shares prices (442 ) (8,780 ) (57,390 )
(3,581 ) (173,542 ) (460,503 )
2018
Trading portfolio
Exposures Scenarios
Risk factors
Risk of variation in: I II III
Pre-fixed Pre-fixed (559 ) (11,441 ) (22,881 )
Exchange coupons Foreign currencies coupon rate (9 ) (5,764 ) (11,529 )
Foreign currencies Exchange rates (386 ) (978 ) (5,027 )
Price indexes Inflation coupon rates (16 ) (798 ) (1,597 )
Shares Shares prices 877 (6,584 ) 4,873
(93 ) (25,565 ) (36,161 )
Scenario I: Increase of 1 basis point in the rates in the fixed
interest rate yield, exchange coupons, inflation and 1 percentage
point in the prices of shares and currencies;
Scenario II: Project a variation of 25 percent in the rates of
the fixed interest yield, exchange coupons, inflation, both rise
and fall, being considered the largest losses resulting by risk
factor; and
Scenario III: Project a variation of 50 percent in the rates
of the pre-fixed
(f) Operating risk
Operational risk is characterized by the possibility of losses
resulting from external events or failure, deficiency or inadequacy
of internal processes, people and systems, including legal risk.
Operational risk events include the following categories: internal
fraud; external fraud; labor demands and poor workplace safety;
inappropriate practices relating to customers, products and
services; damage to physical assets owned or used by XP; situations
that cause the interruption of XP’s activities; and failures
in information technology systems, processes or infrastructure.
The Group’s main objective is to ensure the identification,
classification and monitoring of situations that may generate
financial losses, given the companies’ reputation, as well as
any regulatory assessment due to the occurrence of an operational
risk event, XP adopts the model of 3 lines of defense, in which the
main responsibility for the development and implementation of
controls to deal with operational risks is attributed to the
Management within each business unit, seeking to manage mainly:
(i)
Requirements of segregation of functions, including
independent authorization for transactions;
(ii)
Requirements of reconciliation and monitoring of
transactions;
(iii)
Compliance with legal and regulatory requirements;
(iv)
Documentation of controls and procedures;
(v)
Requirements of periodic assessment of the operating
risks faced and the adequacy of the controls and procedures for
dealing with the identified risks;
(vi)
Development of contingency plans;
(vii)
Professional training and development; and
(viii)
Ethical and business standards;
In addition, the Group’s financial institutions, in
compliance with the provisions of Article 4, paragraph 2, of
Resolution No, 3,380 / 06 of the National Monetary Council
(“CMN”) of June 27, 2006, have a process that
covers institutional policies, procedures, contingency and business
continuity plans and systems for the occurrence of external events,
in addition to formalizing the single structure required by the
regulatory agency.

Capital Management

Capital Management3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Capital Management24. Capital Management
The Group’s objectives when managing capital are to safeguard
their ability to continue as a going concern, so that they can
continue to provide returns for shareholders and benefits for other
stakeholders, and maintain an optimal capital structure to reduce
the cost of capital, In order to maintain or adjust the capital
structure, the Group may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or
sell assets to reduce debt.
The Group also monitors capital on the basis of the net debt and
the gearing ratio. Net debt is calculated as total debt (including
borrowings, lease liabilities and debentures as shown in the
consolidated balance sheet) less cash and cash equivalent
(including cash, Securities purchased under agreements to resell
and certificate deposits as shown in the consolidated statement of
cash flows). The gearing ratio corresponds to the net debt
expressed as a percentage of total capital.
The net debt and corresponding gearing ratios as of March 31,
2020 and December 31, 2019 were as follows:
March 31, 2020 December 31,
Borrowings and lease liabilities 644,439 637,484
Debentures 844,361 835,230
Total debt 1,488,800 1,472,714
Cash (249,950 ) (109,922 )
Securities purchased under agreements to resell (309,053 ) (654,057 )
Certificate deposits (Securities) (152,200 ) (123,817 )
Net debt 777,597 584,918
Total equity 7,604,939 7,153,396
Total capital 8,382,533 7,738,313
Gearing ratio % 9.28 % 7.56 %
a) Minimum capital requirements
Although capital is managed considering the consolidated position,
certain subsidiaries are subject to minimum capital requirement
from local regulators.
The subsidiary XP CCTVM, leader of the Prudential Conglomerate,
under BACEN regulation regime, is required to maintain a minimum
capital and follow aspects from the Basel Accord, with the current
strategy of maintaining its capital 1% above the minimum capital
requirement.
The subsidiary XP Vida e Previdência operates in Private
Pension Business and is oversight by the SUSEP, being required to
present Adjusted Shareholders’ Equity (PLA) equal to or
greater than the Minimum Required Capital (“CMR”) and
Venture Capital Liquidity (“CR”), CMR is equivalent to
the highest value between base capital and venture capital.
At March 31, 2020 the subsidiaries XP CCTVM and XP Vida e
Previdência were in compliance with all capital
requirements.
There is no requirement for compliance with a minimum capital for
the other Group companies.
b) Financial covenants
In relation to the long-term debt contracts, including multilateral
instruments, recorded within “Borrowing and lease
liabilities” and “Debentures” (Notes 9 and 10),
the Group is required to comply with certain performance
conditions, such as profitability and efficiency indexes.
As of March 31, 2020, the amount of contracts under financial
covenants is R$ 1,219,853 (December 31, 2019—R$ 1,217,308).
The Group has complied with these covenants throughout the
reporting period.
Eventual failure of the Group to comply with such covenants may be
considered as breach of contract and, as a result, considered for
early settlement of related obligations.
34.
Capital Management
The Group’s objectives when managing capital are to safeguard
their ability to continue as a going concern, so that they can
continue to provide returns for shareholders and benefits for other
stakeholders, and maintain an optimal capital structure to reduce
the cost of capital, In order to maintain or adjust the capital
structure, the Group may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or
sell assets to reduce debt.
The Group also monitors capital on the basis of the net debt and
the gearing ratio. Net debt is calculated as total debt (including
borrowings, lease liabilities and debentures as shown in the
consolidated balance sheet) less cash and cash equivalent
(including cash, Securities purchased under agreements to resell
and certificate deposits as shown in the consolidated statement of
cash flows). The gearing ratio corresponds to the net debt
expressed as a percentage of total capital.
The net debt and corresponding gearing ratios at December 31,
2019 and 2018 were as follows:
2019 2018
Borrowings and lease liabilities 637,484 469,609
Debentures 835,230 406,538
Total debt 1,472,714 876,147
Cash (109,922 ) (68,407 )
Securities purchased under agreements to resell (654,057 ) (488,809 )
Certificate deposits (Securities) (123,817 ) (69,647 )
Net debt 584,918 249,284
Total equity 7,153,396 2,084,777
Total capital 7,738,313 2,334,061
Gearing ratio % 7,56 % 10,68 %
(i) Minimum capital requirements
Although capital is managed considering the consolidated position,
certain subsidiaries are subject to minimum capital requirement
from local regulators.
The subsidiary XP CCTVM, leader of the Prudential Conglomerate,
under BACEN regulation regime, is required to maintain a minimum
capital and follow aspects from the Basel Accord, with the current
strategy of maintaining its capital 1% above the minimum capital
requirement.
The subsidiary XP Vida e Previdência operates in Private
Pension Business and is oversight by the SUSEP, being required to
present Adjusted Shareholders’ Equity (PLA) equal to or
greater than the Minimum Required Capital (“CMR”) and
Venture Capital Liquidity (“CR”), CMR is equivalent to
the highest value between base capital and venture capital.
At December 31, 2019 the subsidiaries XP CCTVM and XP Vida e
Previdência were in compliance with all capital
requirements.
There is no requirement for compliance with a minimum capital for
the other Group companies.
(ii) Financial covenants
In relation to the long-term debt contracts, including multilateral
instruments, recorded within “Borrowing and lease
liabilities” and “Debentures” (Notes 15 and 16),
the Group is required to comply with certain performance
conditions, such as profitability and efficiency indexes.
At December 31, 2019, the amount of contracts under financial
covenants is R$ 1,217,308 (December 31, 2018 – R$ 876,147).
The Group has complied with these covenants throughout the
reporting period.
Eventual failure of the Group to comply with such covenants may be
considered as breach of contract and, as a result, considered for
early settlement of related obligations.

Cash flow information

Cash flow information3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Cash flow information25. Cash flow information
a) Debt reconciliation
Borrowings lease Debentures Total
Total debt as of January 1, 2019 469,609 148,494 406,538 1,024,641
Payments (24,786 ) (7,490 )
— (32,276 )
Net foreign exchange differences
— 134
— 134
Interest accrued 7,585 2,328 6,649 16,562
Interest paid (3,141 )

— (3,141 )
Total debt as of March 31, 2019 449,267 143,466 413,187 1,005,920
Total debt as of January 1, 2020 382,078 255,406 835,230 1,472,714
Acquisitions / Issuance
— 19,361
— 19,361
Payments (10,500 ) (15,558 )
— (26,058 )
Revaluation
— (19,968 )
— (19,968 )
Net foreign exchange differences
— 23,561
— 23,561
Interest accrued 4,486 6,145 9,131 19,762
Interest paid (572 )

— (572 )
Total debt as of March 31, 2020 375,492 268,947 844,361 1,488,800
35. Cash flow information
(i) Debt reconciliation
Borrowings Lease Debentures Total
Total debt as of January 1, 2017




Acquisitions / Issuance 826,000

— 826,000
Net foreign exchange differences 35,116

— 35,116
Interest accrued 5,908

— 5,908
Total debt as of January 1, 2018 867,024

— 867,024
Acquisitions / Issuance 325,370
— 400,000 725,370
Payments (689,634 )

— (689,634 )
Net foreign exchange differences (35,091 )

— (35,091 )
Interest accrued 56,125
— 6,538 62,663
Interest paid (54,185 )

— (54,185 )
Total debt as of December 31, 2018 469,609
— 406,538 876,147
Change in accounting policy (Note 3.xxi)
— 148,494
— 148,494
Total debt as of January 1, 2019 469,609 148,494 406,538 1,024,641
Acquisitions / Issuance
— 124,196 400,000 524,196
Payments (85,353 ) (37,979 ) (11,815 ) (135,147 )
Net foreign exchange differences
— 3,085
— 3,085
Interest accrued 26,250 17,610 40,507 84,367
Interest paid (28,428 )

— (28,428 )
Total debt as of December 31, 2019 382,078 255,406 835,230 1,472,714

Summary of significant accounti

Summary of significant accounting policies12 Months Ended
Dec. 31, 2019
Text Block [Abstract]
Summary of significant accounting policiesThis note provides a description of the significant accounting
policies adopted in the preparation of these consolidated financial
statements in addition to other policies that have been disclosed
in other notes to these consolidated financial statements. These
policies have been consistently applied to all periods presented,
unless otherwise stated.
(i) Business combinations
The acquisition method of accounting is used to account for all
business combinations, regardless of whether equity instruments or
other assets are acquired. The consideration transferred for the
acquisition of a subsidiary comprises the:

fair values of the assets transferred;

liabilities incurred to the former owners of the
acquired business;

equity interests issued by the Group;

fair value of any asset or liability resulting from a
contingent consideration arrangement; and

fair value of any pre-existing
Identifiable assets acquired, and liabilities and contingent
liabilities assumed in a business combination are, with limited
exceptions, measured initially at their fair values at the
acquisition date. The Group recognizes
any non-controlling acquisition-by-acquisition non-controlling
Acquisition-related costs are expensed as incurred.
The excess of the consideration transferred, amount of
any non-controlling
Where settlement of any part of cash consideration is deferred, the
amounts payable in the future are discounted to their present value
as at the date of exchange. The discount rate used is the
entity’s incremental borrowing rate, being the rate at which
a similar borrowing could be obtained from an independent financier
under comparable terms and conditions.
Contingent consideration, when applicable, is classified either as
equity or a financial liability. Amounts classified as a financial
liability are subsequently remeasured to fair value with changes in
fair value recognized in profit or loss.
If the business combination is achieved in stages, the acquisition
date carrying value of the acquirer’s previously held equity
interest in the acquiree is remeasured to fair value at the
acquisition date. Any gains or losses arising from such
remeasurement are recognized in profit or loss.
(ii) Financial instruments
A financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or equity
instrument of another entity.
1) Financial assets
Initial recognition and measurement
On initial recognition, financial assets are classified as
instruments measured at amortized cost, fair value through other
comprehensive income (“FVOCI”) and fair value through
profit and loss (“FVPL”).
The classification of financial assets at initial recognition is
based on either (i) the Company’s business model for
managing the financial assets and (ii) the instruments’
contractual cash flows characteristics.
For a financial asset to be classified and measured at amortized
cost or FVOCI, it needs to give rise to cash flows that are
‘Solely Payments of Principal and Interest’ (the
“SPPI” criterion) on the principal amount outstanding.
This assessment is referred to as the SPPI test and is performed at
an instrument level.
The Group’s business model for managing financial assets
refers to how it manages its financial assets in order to generate
cash flows. The business model considers whether the
Company’s objective is to receive cash flows from holding the
financial assets, from selling the assets or a combination of
both.
Purchases or sales of financial assets that require delivery of
assets within a time frame set by regulation or market practice
(regular way trades) are recognized on the trade date, i.e., the
date that the Group commits to purchase or sell the asset.
Classification and subsequent measurement
(i)
Financial assets at FVPL
Financial assets at FVPL include Securities, financial assets
designated upon initial recognition at FVPL, or financial assets
mandatorily required to be measured at fair value. This category
includes securities and Derivative financial instruments, including
equity instruments which the Group had not irrevocably elected to
classify at FVOCI.
Financial assets are classified as fair value through profit and
loss if they either fail the contractual cash flow test or in the
Group’s business model are acquired for the purpose of
selling or repurchasing in the near term. Financial assets may be
designated at FVPL on initial recognition if doing so eliminates,
or significantly reduces, an accounting mismatch.
Derivative financial instruments, including separated embedded
derivatives, are also classified as Securities unless they are
designated as effective hedging instruments. Financial assets with
cash flows that do not meet the SPPI criteria are classified and
measured at FVPL, irrespective of the business model.
Financial assets at FVPL are carried in the statement of financial
position at fair value with net changes in fair value recognized in
the statement of income. The net gain or loss recognized in the
statement of income includes any dividend or interest earned on the
financial asset. Financial assets measured at FVTPL consist of
Securities owned and sold short.
A derivative embedded in a hybrid contract, with a financial
liability or non-financial
A derivative embedded within a hybrid contract containing a
financial asset host is not accounted for separately. The financial
asset host together with the embedded derivative is required to be
classified in its entirety as a financial asset at fair value
through profit or loss.
(ii)
Financial assets at FVOCI
The Group measures financial assets at FVOCI if both of the
following conditions are met:

The financial asset is held within a business model
with the objective of both holding to collect contractual cash
flows and to sell.

The contractual terms of the financial asset give rise
on specified dates to cash flows that meet the SPPI criteria.
For financial assets at FVOCI, interest income, foreign exchange
revaluation and impairment losses or reversals are recognized in
the statement of income and similarly to financial assets measured
at amortized cost. The remaining fair value changes are recognized
in OCI. Upon derecognition, the cumulative fair value change
recognized in OCI is recycled to profit or loss.
The Group’s financial assets at FVOCI includes certain debt
instruments.
Upon initial recognition, the Group can elect to classify
irrevocably equity investments at FVOCI when they meet the
definition of equity under IAS 32—“Financial
Instruments: Presentation” and are not financial assets at
FVPL. The classification is determined on
an instrument-by-instrument
Gains and losses on these financial assets are never recycled to
profit or loss. Dividends are recognized as income in the statement
of income when the right of payment has been established, except
when the Group benefits from such proceeds as a recovery of part of
the cost of the financial asset, in which case, such gains are
recorded in OCI. Equity instruments designated at FVOCI are not
subject to impairment assessment.
The Group has no equity instruments that have been irrevocably
classified under this category.
(iii)
Financial assets at amortized cost
A financial asset is measured at amortized cost if both of the
following conditions are met:

The financial asset is held within a business model
with the objective to hold the financial asset in order to collect
contractual cash flows.

The contractual terms of the financial asset give rise
on specified dates to cash flows that meet the SPPI criteria.
Financial assets at amortized cost are subsequently measured using
the Effective Interest Rate (“EIR”) method and are
subject to impairment. Gains and losses are recognized in profit or
loss when the asset is derecognized, modified or impaired.
The Group’s financial assets at amortized cost mainly
includes ‘Securities’, ‘Securities purchased
under agreements to resell’, ‘Securities trading and
intermediation’, ‘Accounts receivable’ and
‘Other financial assets.
The Company reclassifies financial assets only when its business
approach for managing those assets changes.
Derecognition
A financial asset (or, where applicable, a part of a financial
asset or part of a group of similar financial assets) is primarily
derecognized (i.e., removed from the Group’s consolidated
statement of financial position) when:

The contractual rights to receive cash flows from the
asset have expired.

The Group has transferred its contractual rights to
receive cash flows from the asset or has assumed a contractual
obligation to pay the received cash flows in full without material
delay to a third party under a “pass-through”
arrangement; and either (a) the Group has transferred
substantially all the risks and rewards of the asset; or
(b) the Group has neither transferred nor retained
substantially all the risks and rewards of the asset, but has
transferred control of the asset.
When the Group has transferred its contractual rights to receive
cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if, and to what extent, it has retained
the risks and rewards of ownership. When it has neither transferred
nor retained substantially all the risks and rewards of the asset,
nor transferred control of the asset, the Group continues to
recognize the transferred asset to the extent of its continuing
involvement. In that case, the Group also recognizes an associated
liability. The transferred asset and the associated liability are
measured on a basis that reflects the rights and obligations that
the Group has retained.
Continuing involvement that takes the form of a guarantee over the
transferred asset is measured at the lower of the original carrying
amount of the asset and the maximum amount of consideration that
the Group could be required to repay.
Impairment of financial assets
The Group recognizes an allowance for expected credit losses
(“ECLs”) for all debt instruments not held at FVPL.
ECLs are based on the difference between the contractual cash flows
due in accordance with the contract and all the cash flows that the
Group expects to receive, discounted at an approximation of the
original effective interest rate. The expected cash flows will
include cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.
ECLs are recognized in two stages. For credit exposures for which
there has not been a significant increase in credit risk since
initial recognition, ECLs are provided for credit losses that
result from default events that are possible within the
next 12-months 12-month
For accounts receivables and other contract assets, the Group
applies a simplified approach in calculating ECLs. Therefore, the
Group does not track changes in credit risk, but instead recognizes
a loss allowance based on lifetime ECLs at each reporting date. The
Group has established a provision matrix that is based on its
historical credit loss experience, adjusted for forward-looking
factors specific to the debtors and the economic environment.
For debt instruments at FVOCI, the Group applies the low credit
risk simplification. At every reporting date, the Group evaluates
whether the debt instrument is considered to have low credit risk
using all reasonable and supportable information that is available
without undue cost or effort. In making that evaluation, the Group
reassesses the internal credit rating of the debt instrument. In
addition, the Group considers that there has been a significant
increase in credit risk when contractual payments are more than 30
days past due.
The Group considers a financial asset in default when contractual
payments are 90 days past due. However, in certain cases, the Group
may also consider a financial asset to be in default when internal
or external information indicates that the Group is unlikely to
receive the outstanding contractual amounts in full before
considering any credit enhancements held by the Group. A financial
asset is written off when there is no reasonable expectation of
recovering the contractual cash flows.
2) Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as
financial liabilities at FVPL, amortized cost or as Derivative
financial instruments designated as hedging instruments in an
effective hedge, as appropriate.
All financial liabilities are recognized initially at fair value
and, in the case of amortized cost, net of directly attributable
transaction costs.
The Group’s financial liabilities include ‘Securities
Loaned’, ‘Derivative financial instruments’,
‘Securities purchased under agreements to resell’,
‘Securities trading and intermediation’, long-term
debts such as ‘Borrowings and lease liabilities’ and
‘Debentures’, ‘Accounts payables’ and
‘Other financial liabilities’.
Classification and subsequent measurement
(i)
Financial liabilities at FVPL
Financial liabilities at FVPL include securities loaned and
derivatives financial instruments designated upon initial
recognition as at FVPL.
Financial liabilities are classified as securities loaned if they
are incurred for the purpose of repurchasing in the near term. This
category also includes derivative financial instruments entered by
the Group that are not designated as hedging instruments in hedge
relationships as defined by IFRS 9. Separated embedded derivatives
are also classified as fair value through PL unless they are
designated as effective hedging instruments.
Gains or losses on liabilities at fair value through PL are
recognized in the statement of income.
Financial liabilities designated upon initial recognition at FVPL
are designated at the initial date of recognition, and only if the
criteria in IFRS 9 are satisfied. Securities loaned, and derivative
financial instruments are classified as fair value through PL and
recognized at fair value.
(ii)
Amortized cost
After initial recognition, these financial liabilities are
subsequently measured at amortized cost using the Effective
Interest Method (“EIR”) method. Gains and losses are
recognized in profit or loss when the liabilities are derecognized
as well as through the EIR amortization process.
Amortized cost is calculated by considering any discount or premium
on acquisition and fees or costs that are an integral part of the
EIR. The EIR amortization is included as finance costs in the
statement of income.
This category generally applies to Securities sold under repurchase
agreements, Securities trading and intermediation,
‘Borrowings and Lease Liabilities’,
‘Debentures’, ‘Accounts payables’ and
‘Other financial liabilities’.
Derecognition
A financial liability is derecognized when the obligation under the
liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing
liability are substantially modified, such an exchange or
modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference in
the respective carrying amounts is recognized in the statement of
income.
3) Fair value of financial instruments
The fair value of financial instruments actively traded in
organized financial markets is determined based on purchase prices
quoted in the market at the close of business at the reporting
date, without deducting transaction costs.
The fair value of financial instruments for which there is no
active market is determined by using measurement techniques. These
techniques may include the use of recent market transactions (on an
arm’s length basis); reference to the current fair value of
another similar instrument; analysis of discounted cash flows or
other measurement models. See Note 32.
4) Derivative financial instruments and hedging
activities
Derivative financial instruments are financial contracts, the value
of which is derived from the value of the underlying assets,
interest rates, indexes or currency exchange rates.
The Company uses derivative financial instruments to manage foreign
exchange risk on pending security settlements in foreign
currencies. The fair value of these contracts is nominal due to
their short term to maturity. The method of recognizing the
resulting gain or loss depends on whether the derivative is
designated as a hedging instrument, in the case of adoption of
hedge accounting and, if so, the nature of the item being hedged.
The Group adopts only net investment hedge to hedge a net
investment in a foreign operation.
In the case of the Derivative was not designated as a hedging
instrument the initial recognition is at fair value on the date on
which a derivative contract is entered and are subsequently
remeasured at fair value. Derivatives are carried as financial
assets when the fair value is positive and as financial liabilities
when the fair value is negative. Realized and unrealized gains and
losses related to these contracts are recognized in the
consolidated statements of income during the reporting period.
The Company trades in futures contracts, which are agreements to
buy or sell standardized amounts of a financial instrument at a
predetermined future date and price, in accordance with terms
specified by a regulated futures exchange, and subject to daily
cash margining. The Company trades in futures in an attempt to
mitigate interest rate risk, yield curve risk and liquidity
risk.
The Company also trades in forward contracts, which
are non-standardized
a) Net investment hedge
Any gain or loss on the hedging instrument relating to the
effective portion of the hedge is recognized in other comprehensive
income within gains (losses) on net investment hedge. The gain or
loss relating to the ineffective portion is recognized immediately
in the statement of income within net income from financial
instruments at fair value through profit or loss.
Gains and losses accumulated in equity are included in the
statement of income when the foreign operation is partially or
fully disposed of or sold.
b) Hedge ineffectiveness
Hedge effectiveness is determined at the inception of the hedge
relationship, and through periodic prospective effectiveness
assessments to ensure that an economic relationship exists between
the hedged item and hedging instrument.
To evaluate the effectiveness and to measure the ineffectiveness of
such strategies, The Group uses the Dollar Offset Method. The
Dollar Offset Method is a quantitative method that consists of
comparing the change in fair value or cash flows of the hedging
instrument with the change in fair value or cash flows of the
hedged item attributable to the hedged risk.
(iii) Cash and cash equivalents
Cash is not subject to a significant risk of change in value and
are held for the purpose of meeting short-term cash commitments and
not for investments or other purposes. Transactions are considered
short-term when they have maturities in three months or less from
the date of acquisition. For purposes of consolidated statement of
cash flows, cash equivalents refer to collateral held securities
purchased under agreements to resell and bank deposit certificates
measured at fair value through profit and loss that are readily
convertible into a known cash amount and for which are no subject
to a significant risk of change in value.
(iv) Securities purchased under agreements to resell and
obligations related to securities sold under repurchase
agreements
The Group has purchased securities with resale agreement (resale
agreements) and sold securities with repurchase agreement
(repurchase agreement) of financial assets. Resale and repurchase
agreements are accounted for under Securities purchased under
agreements to resell and Securities sold under repurchase
agreements, respectively. The difference between the sale and
repurchase prices is treated as interest and recognized over the
life of the agreements using the effective interest rate method.
The financial assets accepted as collateral in our resale
agreements can be used by us, if provided for in the agreements, as
collateral for our repurchase agreements or can be sold.
(v) Securities trading and intermediation (receivable and
payable)
Refers to transactions at B3 S.A.—Brasil, Bolsa, Balcão
(“B3”) on behalf of and on account of third parties.
Brokerages on these transactions are classified as revenues and
service provision expenses are recognized at the time of the
transactions. These balances are offset and the net amount shown in
the balance sheet when, and only when, there is a legal and
enforceable right to offset and the intention to liquidate them on
a net basis, or to realize the assets and settle the liabilities
simultaneously.
Amounts due from and to customers represent receivables for
securities sold and payables for securities purchased that have
been contracted for but not yet settled or delivered on the balance
sheet date respectively. The due from customers balance is held for
collection. These amounts are subdivided into the following
items:

Cash and settlement records—Represented by the
registration of transactions carried out on the stock exchanges on
its own behalf and for customers; and

Debtors/Creditors pending settlement
account—debtor or creditor balances of customers, in
connection with transactions with fixed income securities, shares,
commodities and financial assets, pending settlement as of the
statement of reporting date. Sales transactions are offset and in
the event the final amount is a credit, it will be recorded in
liabilities, on the other hand if this amount is debt, it will be
recorded in assets, provided that the offset balances refer to the
same counterparty.
These amounts are recognized initially at fair value and
subsequently measured at amortized cost. At each reporting date,
the Group shall measure the loss allowance on amounts due from
customer at an amount equal to the lifetime expected credit losses
if the credit risk has increased significantly since initial
recognition. If, at the reporting date, the credit risk has not
increased significantly since initial recognition, the Group shall
measure the loss allowance at an amount equal
to 12-month
Any contractual payment which is more than 90 days past due is
considered credit impaired. The estimated credit losses for
brokerage clients and related activity was immaterial for all
periods presented.
(vi) Prepaid expenses
Prepaid expenses are recognized as an asset in the balance sheet.
These expenditures include incentives to IFAs, prepaid software
licenses, certain professional services and insurance premiums.
(vii) Leases
As of January 1, 2019 the Group has adopted IFRS 16, replacing
IAS 17, which was applicable until December 31, 2018. Both
accounting practices are explained below.
IAS 17—Leases
Leases in which a significant portion of the risks and rewards of
ownership were not transferred to the Group as lessee were
classified as operating leases. Payments made under operating
leases (net of any incentives received from the lessor) were
charged to profit or loss on a straight-line basis over the period
of the lease.
Lease income from operating leases where the Group is a lessor is
recognized in income on a straight-line basis over the lease term.
Initial direct costs incurred in obtaining an operating lease are
added to the carrying amount of the underlying asset and recognized
as expense over the lease term on the same basis as lease income.
The respective leased assets are included in the balance sheet
based on their nature. The Group did not need to make any
adjustments to the accounting for assets held as lessor as a result
of adopting the new leasing standard.
IFRS 16 Leases
Effective from January 1, 2019, IFRS 16 was issued in January
2016 and supersedes IAS 17 Leases Determining whether an Arrangement contains
a Lease SIC-15 Operating
Leases-Incentives SIC-27 Evaluating
the Substance of Transactions Involving the Legal Form of a
Lease
The Group has adopted IFRS 16 from January 1, 2019 using the
modified retrospective method of adoption, under which the standard
is applied retrospectively with the cumulative effect of initially
applying the standard recognized at the date of initial application
and not restated comparatives for the 2018 and 2017 reporting
period. The reclassifications and the adjustments arising from the
new leasing rules are therefore recognized in the opening balance
sheet on January 1, 2019.
Practical expedients and exemptions applied
In applying IFRS 16 for the first time, the Group has used the
following permitted practical expedients:

applying only to contracts that were previously
identified as leases applying IAS 17 and IFRIC 4 at the date of
initial application;

applying a single discount rate to a portfolio of
leases with reasonably similar characteristics;

relying on previous assessments on whether leases are
onerous as an alternative to performing an impairment review
– there were no onerous contracts as of January 1,
2019;

exempting leases contracts with a remaining lease term
of less than 12 months as of January 1, 2019 and not
containing a purchase option (short-term leases);

exempting lease contracts for which the underlying
asset is of low value (low-value

excluding initial direct costs for the measurement of
the right-of-use

using hindsight in determining the lease term where
the contract contains options to extend or terminate the lease.
i)
Measurement of lease liabilities
and right-of-use
The Group leases its main offices and certain equipments
under non-cancelable
On adoption of IFRS 16, the Group recognized lease liabilities in
relation to leases which had previously been classified as
‘operating leases’ under the principles of IAS 17 These
liabilities were measured at the present value of the remaining
lease payments, discounted using the lessee’s incremental
borrowing rate as of January 1, 2019. The weighted average
lessee’s incremental borrowing rate applied to the lease
liabilities on January 1, 2019 was 9.0%.
Operating lease commitments disclosed as of December 31,
2018 209,318
Discounted using the incremental borrowing rate of at the date of
initial application (60,099 )
(Less): short-term leases recognized on a straight-line basis as
expense (725 )
Lease liability recognized as of January 1, 2019 148,494
The associated right-of-use
Lease liability recognized as of January 1, 2019 148,494
(Less): accrued lease payments as of December 31, 2018 (14,624 )
Total right-of-use 133,870
Represented by:
Properties 123,262
Equipments 10,608
As a result of initial adoption, there is no impact to retained
earnings in equity on January 1,
2019. Right-of-use “Right-of-use
ii)
Summary of new accounting policies
Set out below are the new accounting policies of the Group upon
adoption of IFRS 16, which have been applied from the date of
initial application:
Right-of-use
The Group recognizes right-of-use Right-of-use
The cost of right-of-use right-of-use Right-of
Lease liabilities
At the commencement date of the lease, the Group recognizes lease
liabilities measured at the present value of lease payments to be
made over the lease term. The lease payments include fixed payments
(including in-substance
In calculating the present value of lease payments, the Group uses
the incremental borrowing rate at the lease commencement date if
the interest rate implicit in the lease is not readily
determinable. After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the carrying
amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in
the in-substance
Short-term leases and leases of low-value
The Group applies the short-term lease recognition exemption to its
short-term leases of properties (i.e., those leases that have a
lease term of 12 months or less from the commencement date and do
not contain a purchase option). It also applies the lease
of low-value low-value
Significant judgement in determining the lease term of contracts
with renewal options
The Group determines the lease term as
the non-cancellable
The Group has the option, under some of its leases to lease the
assets for additional terms. The Group applies judgement in
evaluating whether it is reasonably certain to exercise the option
to renew. That is, it considers all relevant factors that create an
economic incentive for it to exercise the renewal. After the
commencement date, the Group reassesses the lease term if there is
a significant event or change in circumstances that is within its
control and affects its ability to exercise (or not to exercise)
the option to renew (e.g., a change in business strategy).
(viii) Property and equipment
All property and equipment are stated at historical cost less
accumulated depreciation and impairment. Historical cost includes
expenditures that are directly attributable to the acquisition of
the items and, if applicable, net of tax credits. Subsequent costs
are included in the asset’s carrying amount or recognized as
a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the
Group and the cost of the item is material and can be measured
reliably. All other repairs and maintenance expenditures are
charged to profit or loss during the period in which they are
incurred. Depreciation is calculated on a straight-line basis over
the estimated useful lives of the assets, as follows:
Annual Rate (%)
Data Processing Systems 20 %
Furniture and equipment 10 %
Security systems 10 %
Facilities 10 %
Assets’ residual values, useful lives and methods of
depreciation are reviewed at each reporting date and adjusted
prospectively, if appropriate. An asset’s carrying amount is
written down immediately to its recoverable amount, which is the
higher of its fair value less costs of disposal and its value in
use, if the asset’s carrying amount is greater than its
estimated recoverable amount. Gains and losses on disposals or
derecognition are determined by comparing the disposal proceeds (if
any) with the carrying amount and are recognized in profit or
loss.
(ix) Intangible assets
i) Goodwill
Goodwill arises on the acquisition of subsidiaries and represents
the excess of (i) the consideration transferred; (ii) the
amount of any non-controlling non-controlling
Goodwill impairment reviews are undertaken annually or more
frequently if events or changes in circumstances indicate a
potential impairment.
ii) Software and development costs
Certain direct development costs associated with internally
developed software and software enhancements of the Group’s
technology platform is capitalized. Capitalized costs, which occur
post determination by management of technical feasibility, include
external services and internal payroll costs. These costs are
recorded as intangible assets when development is complete, and the
asset is ready for use, and are amortized on a straight-line basis,
generally over a period of five years. Research
and pre-feasibility
iii) Other intangible assets
Separately acquired intangible assets are measured at cost on
initial recognition. The cost of intangible assets acquired in a
business combination corresponds to their fair value at the
acquisition date. After initial recognition, intangible assets are
stated at cost, less any accumulated amortization and accumulated
impairment losses. Internally generated intangible assets other
than (i) above, are not capitalized and the related
expenditure is reflected in profit or loss in the period in which
the expenditure is incurred.
The useful life of intangible assets is assessed as finite or
indefinite. As of December 31, 2019 and 2018, the Group does
not hold indefinite life intangible assets, except for
goodwill.
Intangible assets with finite useful lives are amortized over their
estimated useful lives and tested for impairment whenever there is
an indication that their carrying amount may be not be recovered.
The period and method of amortization for intangible assets with
finite lives are reviewed at least at the end of each fiscal year
or when there are indicators of impairment. Changes in estimated
useful lives or expected consumption of future economic benefits
embodied in the assets are considered to modify the amortization
period or method, as appropriate, and treated as changes in
accounting estimates.
The amortization of intangible assets with definite lives is
recognized in profit or loss in the e

Significant estimated and judge

Significant estimated and judgements12 Months Ended
Dec. 31, 2019
Text Block [Abstract]
Significant estimated and judgements4. Significant estimated and judgements
The preparation of the financial statements according to accounting
policies described in Note 3 requires Management to make judgments,
estimates and assumptions that affect the application of accounting
policies and the reported amounts for assets, liabilities, revenues
and expenses. Actual results may differ from these estimates. In
addition, this note also explains where there have been actual
adjustments this year as a result of and error and of changes to
previous estimates.
Information about uncertainties on assumptions and estimates that
have a significant risk of resulting in a material adjustment in
the future fiscal year is included as follows:
(i) Estimation fair value of certain financial assets
The fair value of financial instruments that are not traded in an
active market is determined using valuation techniques. The Group
uses its judgment to select a variety of methods and make
assumptions that are mainly based on market conditions existing at
the end of each reporting period.
(ii) Impairment of financial assets
The loss allowances for financial assets are based on assumptions
about risk of default and expected loss rates. The Group uses
judgement in making these assumptions and selecting the inputs to
the impairment calculation, based on the Group’s past history
and existing market conditions, as well as forward-looking
estimates at the end of each reporting period.
(iii) Recognition of deferred tax asset for carried-forward tax
losses
Deferred tax assets are recognized for all unused tax losses to the
extent that sufficient taxable profit will likely be available to
allow the use of such losses. Significant judgment from management
is required to determine the amount of deferred tax assets that can
be recognized, based on the likely timing and level of future
taxable profits, together with future tax planning strategies.
The Group has concluded that the deferred assets will be
recoverable using the estimated future taxable income based on the
approved business plans and budgets for the subsidiaries where a
deferred tax asset has been recognized. The losses can be carried
forward indefinitely and have no expiry date.
(iv) Property and equipment and intangible assets useful
lives
Property and equipment and intangible assets include the use of
estimates to determine the useful life for depreciation and
amortization purposes. Useful life determination requires estimates
in relation to the expected technological advances and alternative
uses of assets. There is a significant element of judgment involved
in making technological development assumptions, since the timing
and nature of future technological advances are difficult to
predict.
As of December 31, 2019, the Group did not identify evidence
that could indicate that useful lives described in Note 3 ((viii)
and (ix)) should be revised. Therefore, the Group concluded that
changes to the estimated useful live was not deemed necessary.
(v) Impairment of non-financial
The Group assesses, at each reporting date, whether there is an
indication that an asset may be impaired. Intangible assets with
indefinite useful lives and goodwill are tested for impairment
annually at the level of the CGU, as appropriate, and when
circumstances indicate that the carrying value may be impaired.
Impairment exists when the carrying value of an asset or cash
generating unit exceeds its recoverable amount, which is the higher
of its fair value less costs to sell and its value in use.
Technological obsolescence, suspension of certain services and
other changes in circumstances that demonstrate the need for
recording a possible impairment are also regarded in estimates.
(vi) Provision for contingent liabilities
Provisions for the judicial and administrative proceedings are
recorded when the risk of loss of administrative or judicial
proceeding is considered probable and the amounts can be reliably
measured, based on the nature, complexity and history of lawsuits
and the opinion of legal counsel internal and external.
Provisions are made when the risk of loss of judicial or
administrative proceedings is assessed as probable and the amounts
involved can be measured with sufficient accuracy, based on best
available information. They are fully or partially reversed when
the obligations cease to exist or are reduced. Given the
uncertainties arising from the proceedings, it is not practicable
to determine the timing of any outflow (cash disbursement).

Group structure

Group structure12 Months Ended
Dec. 31, 2019
Text Block [Abstract]
Group structure5. Group structure
(i) Subsidiaries
The following are the direct and indirect interests of Company in
its subsidiaries for the purposes of these consolidated financial
statements:
% of Group’s interest
(i)
Entity name Country of Principal activities 2019 2018 2017
Directly controlled
XP Investimentos S.A. Brazil Holding 100.00 % 100.00 % 100.00 %
Indirectly controlled
XP Investimentos Corretora de Câmbio, Títulos e Valores
Mobiliários S.A. Brazil Broker-dealer 100.00 % 100.00 % 100.00 %
XP Investments US, LLC USA Broker-dealer 100.00 % 100.00 % 100.00 %
XP Investments UK LLP UK Inter-dealer broker 100.00 % 100.00 % 99.90 %
Sartus Capital LTD UK Investment advisor 100.00 % 100.00 % 100.00 %
XP Private (Europe) S.A. UK Investment advisor 100.00 % 100.00 % 100.00 %
XP Vida e Previdência S.A. (v) Brazil Private pension and insurance 100.00 % 100.00 %

Banco XP S.A. (vi) Brazil Multipurpose bank 100.00 %


Xperience Market Services LLC (vi) USA Non-operational 100.00 %


Chamaleon Bravery Unipessoal LDA (vi) Portugal Investment Advisor (pending 100.00 %


XP Holding Investimentos S.A. Brazil Financial Holding

— 100.00 %
XP Controle 3 Participações S.A. Brazil Financial Holding 100.00 % 100.00 % 100.00 %
XPE Infomoney Educação Assessoria Empresarial e
Participações Ltda. Brazil Digital Content services 99.99 % 99.70 % 96.69 %
Tecfinance Informática e Projetos de Sistemas Ltda. Brazil Rendering of IT services 99.76 % 99.73 % 99.73 %
XP Corretora de Seguros Ltda. Brazil Insurance Broker 99.99 % 99.82 % 99.81 %
XP Gestão de Recursos Ltda. Brazil Asset management 93.70 % 92.80 % 91.65 %
XP Finanças Assessoria Financeira Ltda. Brazil Investment consulting service 99.99 % 99.99 % 99.95 %
Infostocks Informações e Sistemas Ltda. Brazil Mediation of information 99.99 % 99.99 % 99.99 %
XP Advisory Gestão Recursos Ltda. Brazil Asset management 99.57 % 99.52 % 99.52 %
XDEX Intermediação Ltda. (iii) Brazil Intermediary and service agency

— 99.99 %
XP Holding International LLC USA International financial holding 100.00 % 100.00 % 100.00 %
XP Advisory US USA Investment advisor 100.00 % 100.00 % 100.00 %
XP Holding UK Ltd UK International financial holding 100.00 % 100.00 % 100.00 %
XP Vista Asset Management Ltda. (iv) Brazil Asset management 99.42 % 99.60 %

XP Controle 4 Participações S.A. (v) Brazil Insurance holding 100.00 % 100.00 %

Leadr Serviços Online Ltda. (vi) Brazil Social media 99.99 %


Spiti Análise Ltda. (vi) Brazil Research (pending regulatory 99.99 %


Consolidated investments funds
Falx Fundo de Investimento Multimercado Crédito Privado
Investimento no Exterior Brazil Investment fund 100.00 % 100.00 % 100.00 %
Gladius Fundo de Investimento Multimercado Investimento no
Exterior Brazil Investment fund 100.00 % 100.00 % 100.00 %
Scorpio Debentures Incentivadas Fundo de Investimento Multimercado
Crédito Privado Brazil Investment fund 100.00 % 100.00 % 100.00 %
Galea Fundo de Investimento Multimercado Crédito Privado
Investimento no Exterior Brazil Investment fund 100.00 % 100.00 % 100.00 %
Javelin Fundo de Investimento Multimercado Crédito Privado
Investimento no Exterior Brazil Investment fund 100.00 % 100.00 % 100.00 %
Spatha Fundo de Investimento Multimercado Crédito Privado
Investimento no Exterior Brazil Investment fund 100.00 % 100.00 %

Frade Fundo de Investimento em Cotas de Fundos de Investimento em
Direitos Creditórios NP Brazil Investment fund 100.00 % 100.00 %

Frade III Fundo de Investimento em Cotas de Fundo de Investimento
Multimercado Crédito Privado (vi) Brazil Investment fund 100.00 %


Balista Debentures Incentivadas Fundo de Investimento Multimercado
Crédito Privado (vi) Brazil Investment fund 100.00 %


Coliseu Fundo de Investimento Multimercado Crédito Privado
Investimento no Exterior (vi) Brazil Investment fund 100.00 %


XP Short Brasil Alavancado Fundo de Investimento Multimercado
Investimento no Exterior (vii) Brazil Investment fund

— 100.00 %
XP Pacote Brasil Alavancado Fundo de Investimento Multimercado
Investimento no Exterior (vii) Brazil Investment fund

— 100.00 %
(i)
The percentage of participation represents the
Group’s interest in total capital and voting capital of its
subsidiaries.
(ii)
Subsidiaries legally merged into their respective
immediate parent, with no impact on the consolidated financial
statements.
(iii)
Relates to subsidiary incorporated in 2017 sold to
Company’s controlling shareholders in 2018 at its early
stages.
(iv)
Subsidiary acquired in 2018. See further details in
Note 5 (ii) below.
(v)
Subsidiaries incorporated in 2018 for operating in the
private pension and life insurance business, which is regulated by
the Superintendency of Private Insurance (SUSEP) in Brazil.
(vi)
New subsidiaries and investment funds incorporated in
the year.
(vii)
Investment funds closed during the year.
(ii) Business combinations
Acquisition of Rico Corretora de Títulos e Valores
Mobiliários S.A.
On August 10th, 2017, following the approval of the Central Bank,
the Group acquired Rico Corretora de Títulos e Valores
Mobiliários S.A. (“Rico”) through the acquisition
of its sole parent FLAFLU Participações S.A.
(“FLAFLU”). With this transaction, the Group aimed to
extend its operations in brokerage and securities distribution
market to retail, through expanding the customer base and absorbing
innovative technology in online market developed by Rico, in view
of the complementary nature of positioning between the brands.
Details of the net assets acquired, the goodwill and the purchase
consideration are as follows:
Fair value
Assets
Cash 96
Financial instruments (FVPL) 356,648
Financial instruments (FVOCI) 20,212
Accounts receivable 1,915
Other assets 11,582
Deferred tax assets 3,751
Property and equipment (Note 13 (a)) 1,728
Intangible assets (Note 13 (b)) 75,813
471,745
Liabilities
Social and statutory obligations (560 )
Tax and social security obligations (12,651 )
Securities trading and intermediation (322,371 )
Provisions and continget liabilities (Note 25) (7,921 )
Other liabilities (5,217 )
(348,720 )
Total identifiable net assets at fair value 123,025
Goodwill arising on acquisition (Note 13 (b)) 281,702
Purchase consideration transferred 404,727
Analysis of cash flows on acquisition
Consideration paid in cash 404,727
Net cash acquired with the subsidiary (96 )
Net of cash flow on acquisition (investing activities) 404,631
For the purchase price allocation, the following intangible assets
were identified. The valuation techniques used for measuring the
fair value of separately identified intangible assets acquired were
as follows:
Assets Amount
Method Expected
Customer list 50,077 Multi-period excess earning method 8 years
Trademark 19,304 Relief from royalty 10 years
Technology 2,028 Relief from royalty 3 years
The fair value of the consideration given was R$ 404,727. The
goodwill is attributable to the workforce and the high
profitability of the acquired business. It will be deductible for
tax purposes. The fair value and gross contractual amount of trade
accounts receivable was the same—R$ 1,915. There was no other
contingent liability recognized on the acquisition for a pending
lawsuit, apart from R$ 7,921 already provisioned, related to tax
contingencies (Note 25).
Acquisition-related costs of R$ 690 are included in administrative
expenses in profit or loss and in operating cash flows in the
statement of cash flows.
From the acquisition date, Rico contributed revenues of R$ 53,942
and net profit of R$ 12,125 to the Group’s consolidated
statement of profit and loss for the year ended December 31,
2017. If the acquisition had occurred on January 1, 2017,
consolidated pro-forma
Acquisition of XP Vista
On January 5, 2018, the Group acquired 99.60% of shares of XP
Vista Asset Management Ltda. (“XP Vista”), an asset
management entity, through the acquisition of its controlling
shareholder Marathon Investimentos e Participações S.A
for a consideration of R$ 10,938, mostly comprised of cash in the
amount of R$ 525. Goodwill in the amount of R$ 9,799, attributable
to sinergies expected from the combined operations within the
Group. Marathon was subsequently incorporated by the Group.
(iii) Subscription (redemptions) of non-controlling
In 2016, certain non-controlling
(iv) Other transactions with non-controlling
In the course of its business, the Group admits individual partners
to join the share capital of certain subsidiaries while others
might decide to leave the subsidiaries resulting in gains or losses
recorded directly to equity. For the year ended December 31,
2019, the Group recorded a gain of R$ 374 (2018 – R$ 409
gain), while non-controlling

Accounts receivable

Accounts receivable12 Months Ended
Dec. 31, 2019
Text Block [Abstract]
Accounts receivable10. Accounts receivable
2019 2018
Customers (a) 458,776 203,604
Dividends and interest receivable on equity capital—Funds 7,052 18,852
Other 702 181
(-) Expected losses on accounts receivable (4,501 ) (3,437 )
Total 462,029 219,200
(a)
Refers to receivables from management fee arising from
the distribution of funds and amounts receivable related to service
provision, which have an average term of 30 days. There is no
concentration on the balances receivable as of December 31,
2019 and 2018.

Prepaid expenses

Prepaid expenses12 Months Ended
Dec. 31, 2019
Text Block [Abstract]
Prepaid expenses12. Prepaid expenses
2019 2018
Incentives for business acceleration program 11,349 22,125
Marketing expenses 9,678 41,276
Commissions and premiums paid in advance 49,233 21,431
Services paid in advance 2,043 5,180
Other expenses paid in advance 17,381 6,711
Total 89,684 96,723
Current 56,605 56,302
Non-current 33,079 40,421

Securities sold under repurchas

Securities sold under repurchase agreements12 Months Ended
Dec. 31, 2019
Text Block [Abstract]
Securities sold under repurchase agreements14. Securities sold under repurchase agreements
2019 2018
National Treasury Notes (NTNs) 8,533,113 1,153,547
National Treasury Bills (LTNs) 5,653,994 5,142,881
Financial Treasury Bills (LFTs) 1,451,300 344,266
Total 15,638,407 6,640,694
As of December 31, 2018, securities sold under repurchase
agreements were agreed with average interest rates of 4,48% p.a.
(2018—6,40% p.a.), with assets pledged as collateral (Note
6).

Securities trading and intermed

Securities trading and intermediation12 Months Ended
Dec. 31, 2019
Text Block [Abstract]
Securities trading and intermediation17. Securities trading and intermediation
Represented by operations at B3 on behalf of and on account of
third parties, with liquidation operating cycle between D+1 and
D+3.
2019 2018
Cash and settlement records 13,823 164,322
Debtors pending settlement 477,646 731,611
Other 13,514 2,379
Total Assets 504,983 898,312
Cash and settlement records 474,759 90,056
Creditors pending settlement 8,639,787 5,216,572
Total Liabilities 9,114,546 5,306,628

Other financial liabilities

Other financial liabilities12 Months Ended
Dec. 31, 2019
Text Block [Abstract]
Other financial liabilities18. Other financial liabilities
2019 2018
Customer deposits (a) 70,191

Structured operations certificates (b) 19,474

Foreign exchange portfolio 8,962 7,011
Other financial liabilities 4

Total 98,631 7,011
Current 79,157 7,011
Non-current 19,474

(a)
Mainly related to the financial resources of XP Vida e
Previdência participant which is in process to be
invested.
(b)
Related to structured operations certificates of Banco
XP.

Social and Statutory obligation

Social and Statutory obligations3 Months Ended
Mar. 31, 2020
Text Block [Abstract]
Social and Statutory obligations19. Social and Statutory obligations
Social and Statutory obligations is mainly composed from the Group
sharing program for its employees which does not extend to the
Executive Board. As of December 31, 2019, the balance of
unrealized gains on the balance sheet under the “Social and
statutory obligations” line item is R$ 492,723 (R$ 251,690 as
of December 31, 2018).
2019 2018
Obligations to non-controlling 35,666 27,137
Employee profit-sharing (a) 395,568 173,202
Salaries and other benefits payable 61,489 51,351
Total 492,723 251,690
(a)
The Group has a bonus scheme for its employees based
on profit sharing program as agreed under collective bargaining,
which does not extend to the Executive Board. The bonus is
calculated at each half of the year and payments made in the
February and August.

Tax and social security obligat

Tax and social security obligations12 Months Ended
Dec. 31, 2019
Text Block [Abstract]
Tax and social security obligations20. Tax and social security obligations
2019 2018
Income Tax (IRPJ and CSLL) (a) 264,258 69,001
Contributions over revenue (PIS and COFINS) 34,247 16,368
Taxes on services (ISS) 18,141 9,399
Contributions for Social Security (INSS) 7,712 3,368
Others 20,973 4,985
Total 345,331 103,121
Current 345,331 103,121
Non-current


(a)
The Group income tax liability is presented net of tax
assets which the entities are allowed to offset during current
year. The line includes current Corporate Income Tax (CIT)
liability of R$ 594,037 (R$ 98,943—2018) and Prepayments CIT
of R$ 361,771 (R$ 58,139—2018). The line also includes taxes
that XP is responsible to pay on behalf of its clients (i.e.,
withholding taxes over client’s investments) in the amount of
R$ 31,992 (R$ 28,197—2018).

Share-based plan_2

Share-based plan12 Months Ended
Dec. 31, 2019
Text Block [Abstract]
Share-based plan30. Share-based plan
a) Share-based Plan
The establishment of the Plan was approved by the Board of
Director’s meeting on December 6, 2019 and the first
grant of RSUs and PSUs was on December 10, 2019.
Under the Restricted Stock Unit plan, stocks are awarded at no cost
to the recipient upon their grant date. RSUs are granted
semi-annually, their vesting conditions are service related and
they vest at a rate of 20% after three years, 20% after four years,
and 60% after five years. After the vesting periods, common shares
will be issued to the recipients. For the PSUs, the vesting is the
following: (i) 33% will vest on the third year after the grant,
(ii) 33%% will vest on the fourth year after the grant and (iii)
34% will vest on the fifth year after the grant date.
Under the Performance Share Unit, stocks are granted to eligible
participants and their vesting conditions are based on five-year
period metrics and also based on the total shareholder return
(TSR), including share price growth, dividends and capital
returns.
If an elegible participant ceases to be employed by the Company,
within the vesting period, the rights will be forfeited, except in
limited circumstances that are approved by the board on a
case-bycase basis.
Once the PSUs are vested, the shares of common stock that are
delivered must be held for an
additional one-year
b) Fair value of shares granted
Estimating fair value for share-based payment transactions requires
determination of the most appropriate valuation model and
underlying assumptions, which depends on the terms and conditions
of the grant and the information available at the grant date.
The Company uses certain methodologies to estimate fair value which
include the following:

Estimation of fair value based on equity transactions
with third parties close to the grant date; and

Other valuation techniques including share pricing
models such as Monte Carlo.
These estimates also require determination of the most appropriate
inputs to the valuation models including assumptions regarding the
expected life of a share-based payment or appreciation right,
expected volatility of the price of the Group’s shares and
expected dividend yield.
c) Outstanding shares granted and valuation inputs
The maximum number of shares available for issuance under the
share-based plan shall not exceed 5% of the issued and outstanding
shares. As of December 31, 2019, the outstanding number of
Company reserved under the plans were 4,112,046 including 1,921,669
RSUs and 2,190,377 PSUs.
For the year ended December 31, 2019, total compensation
expense of both plans were R$7,502, including R$ 2,131 of tax
provisions and does not include any tax benefits on total
share-based compensation expense once, this expense is not
deductible for tax purposes. The tax benefits will be perceived
when the shares are converted into common shares.
The weighted-average grant-date fair value of RSU and PSU shares
was US$27 and US$ 34,56 respectively.
There was no shares exercised, forfeited, expired or vested during
2019.

Subsequent events

Subsequent events12 Months Ended
Dec. 31, 2019
Text Block [Abstract]
Subsequent events36. Subsequent events
(i) Visa Agreement
On March 04, 2020, Banco XP (wholly owned subsidiary of XP Inc)
entered into an agreement with Visa do Brasil Empreendimentos Ltda.
(“Visa”) as an issuing partner of debit and credit
cards. The initiative marks the entrance of XP Inc. in the credit
card segment in Brazil.
(ii) Impacts of COVID-19
Starting from January 2020, it was reported that a novel strain of
coronavirus, later named COVID-19, which COVID-19

Basis of preparation of the f_2

Basis of preparation of the financial statements (Policies)3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Basis of preparation of the unaudited interim condensed consolidated financial statementsa) Basis of preparation of the unaudited interim condensed
consolidated financial statements
The unaudited interim condensed consolidated financial statements
as of March 31, 2020 and for the three months ended
March 31, 2020 and 2019 have been prepared in accordance with
IAS 34 Interim Financial
Reporting
The unaudited interim condensed consolidated financial statements
have been prepared on a historical cost basis, except for financial
instruments that have been measured at fair value.
The unaudited interim condensed consolidated financial statements
do not include all the information and disclosures required in the
annual financial statements and should be read in conjunction with
the Group’s annual consolidated financial statements as of
December 31, 2019 included in the Form 20-F for the year ended
December 31, 2019 filed with the SEC (U.S Securities Exchange
Commission) on April 29, 2020.
The accounting policies adopted are consistent with those of the
previous financial year and corresponding interim reporting
period.
The unaudited interim condensed consolidated financial statements
are presented in Brazilian reais (“R$”), and all
amounts disclosed in the financial statements and notes have been
rounded off to the nearest thousand currency units unless otherwise
stated.
Basis of consolidationb) Basis of consolidation
There were no changes since December 31, 2019 in the
accounting practices adopted for consolidation and in the direct
and indirect interests of Company in its subsidiaries for the
purposes of these unaudited interim condensed consolidated
financial statements, except for the following item:
% of Group’s interest (i)
Entity name Country of Principal March 31, December 31,
Indirectly controlled
XP PE Gestão de Recursos Ltda. (ii) Brazil Private 99.10 %

(i)
The percentage of participation represents the
Group’s interest in total capital and voting capital of its
subsidiaries.
(ii)
New operating subsidiaries incorporated in 2020.
(iii) Basis of consolidation
The consolidated financial statements comprise the financial
statements of the Company as of December 31, 2019 and 2018 and
for each of the years ended December 31, 2019, 2018 and
2017.
Subsidiaries are all entities (including structured entities) over
which the Group has control. The Group controls an entity when the
Group is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those
returns through its power to direct the activities of the entity.
Subsidiaries are fully consolidated from the date on which control
is transferred to the Group. They are deconsolidated from the date
that control ceases.
The acquisition method of accounting is used to account for
business combinations by the Group (refer to Note 5.
Intercompany transactions, balances and unrealized gains on
transactions between Group companies are eliminated. Unrealized
losses are also eliminated unless the transaction provides evidence
of an impairment of the transferred asset. Accounting policies of
subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group.
Non-controlling
Segment reportingc) Segment reporting
In reviewing the operational performance of the Group and
allocating resources, the chief operating decision maker of the
Group (“CODM”), who is the Group’s Chief
Executive Officer (“CEO”) and the Board of Directors
(“BoD”), represented by statutory directors holders of
ordinary shares of the immediate parent of the Company, reviews
selected items of the statement of income and of comprehensive
income.
The CODM considers the whole Group as a single operating and
reportable segment, monitoring operations, making decisions on fund
allocation and evaluating performance based on a single operating
segment. The CODM reviews relevant financial data on a combined
basis for all subsidiaries. Disaggregated information is only
reviewed at the revenue level (Note 16), with no corresponding
detail at any margin or profitability levels.
The Group’s revenue, results and assets for this one
reportable segment can be determined by reference to the unaudited
interim condensed consolidated statements of income and of
comprehensive income and unaudited interim condensed consolidated
balance sheet.
See Note 16 (c) for a breakdown of total revenue and income and
selected assets by geographic location
(iv) Segment reporting
In reviewing the operational performance of the Group and
allocating resources, the chief operating decision maker of the
Group (“CODM”), who is the Group’s Chief
Executive Officer (“CEO”) and the Board of Directors
(“BoD”), represented by statutory directors holders of
ordinary shares of the immediate parent of the Company, reviews
selected items of the statement of income and of comprehensive
income.
The CODM considers the whole Group as a single operating and
reportable segment, monitoring operations, making decisions on fund
allocation and evaluating performance based on a single operating
segment. The CODM reviews relevant financial data on a combined
basis for all subsidiaries. Disaggregated information is only
reviewed at the revenue level (Note 26), with no corresponding
detail at any margin or profitability levels.
The Group’s revenue, results and assets for this one
reportable segment can be determined by reference to the
consolidated statement of income and of comprehensive income and
consolidated balance sheet.
See Note 26 (c) for a breakdown of revenues and income and selected
assets from external customers by country of domicile.
Impacts related COVID-19 in the current periodd) Impacts related COVID-19
Starting from January 2020, it was reported that a novel strain of
coronavirus, later named COVID-19,
Although the Group have not identified relevant impacts to its
financial performance as at March 31, 2020, the Group is
monitoring COVID-19
As a consequence of this pandemic, most of the Group’s
employees is working from home. Based on thorough assessments about
the well-being and performance of our workforce, management
announced on June 11, 2020, the permanent and company-wide
adoption of the home-office model. The reduction in such footprint
and the potential financial consequences of such actions are being
analyzed by management.
Additionally, XP Inc announced its intention to establish new
corporate headquarters outside the city of São Paulo
(“Villa XP”), with an innovative architecture
comprising workstations, meeting rooms and common areas. The
financial impacts of such initiative are still under
evaluation.
New standards, interpretations and amendments not yet adoptede) New standards, interpretations and amendments not yet
adopted
The accounting policies adopted in the preparation of the unaudited
interim condensed consolidated financial statements are consistent
with those followed in the preparation of the Group’s
consolidated financial statements for the year ended
December 31, 2019.
Certain new accounting standards and interpretations have been
published that are not mandatory for the period ended
March 31, 2020, and have not been early adopted by the group.
These standards are not expected to have a material impact on the
entity in the current or future financial statements periods and on
foreseeable future transactions.
The Group did not have to change its accounting policies or make
retrospective adjustments as a result of adopting these
standards.
Estimatesf) Estimates
The preparation of unaudited interim condensed consolidated
financial statements of the Group requires management to make
judgments and estimates and to adopt assumptions that affect the
amounts presented referring to revenues, expenses, assets and
liabilities at the reporting date. Actual results may differ from
these estimates.
In preparing these unaudited interim condensed consolidated
financial statements, the significant judgements and estimates made
by management in applying the Group’s accounting policies and
the key sources of estimation uncertainty were the same as those
that are set the consolidated financial statements for the year
ended December 31, 2019.
Foreign currency translation(v) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of the
Group’s entities are measured using the currency of the
primary economic environment in which the entity operates
(‘the functional currency’). The consolidated financial
statements are presented in Brazilian Reais (“R$”),
which is the Group functional and presentation currency.
The functional currency for all the Company’s subsidiaries in
Brazil is also the Brazilian reais. Certain subsidiaries outside of
Brazil have different functional currencies, including
US Dollar (“USD”), Euro (“EUR”), Pound
sterling (“GBP”) and Swiss Franc
(“CHF”).
(ii) Transactions and balances
Foreign currency transactions are translated into the functional
currency using the exchange rates at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of
such transactions and from the translation of monetary assets and
liabilities denominated in foreign currencies at year end exchange
rates are generally recognized in profit or loss. They are deferred
in equity if they relate to qualifying cash flow hedges and
qualifying net investment hedges or are attributable to part of the
net investment in a foreign operation.
Foreign exchange gains and losses that relate to borrowings are
presented in the statement of income and other comprehensive
income, within finance costs. All other foreign exchange gains and
losses are presented in the statement of profit or loss on a net
basis within interest expense on debt.
Non-monetary non-monetary non-monetary
(iii) Group companies
The results and financial position of foreign operations (none of
which has the currency of a hyperinflationary economy) that have a
functional currency different from the presentation currency are
translated into the presentation currency as follows:

assets and liabilities for each balance sheet
presented are translated at the closing rate at the date of that
balance sheet;

income and expenses for each statement of profit or
loss and statement of comprehensive income are translated at
average exchange rates (unless this is not a reasonable
approximation of the cumulative effect of the rates prevailing on
the transaction dates, in which case income and expenses are
translated at the dates of the transactions); and

all resulting exchange differences are recognized in
other comprehensive income.
On consolidation, exchange differences arising from the translation
of any net investment in foreign entities, and of borrowings and
other financial instruments designated as hedges of such
investments, are recognized in other comprehensive income. When a
foreign operation is sold or any borrowings forming part of the net
investment are repaid, the associated exchange differences are
reclassified to profit or loss, as part of the gain or loss on
sale.
Goodwill and fair value adjustments arising on the acquisition of a
foreign operation are treated as assets and liabilities of the
foreign operation and translated at the closing rate.
Business combinations(i) Business combinations
The acquisition method of accounting is used to account for all
business combinations, regardless of whether equity instruments or
other assets are acquired. The consideration transferred for the
acquisition of a subsidiary comprises the:

fair values of the assets transferred;

liabilities incurred to the former owners of the
acquired business;

equity interests issued by the Group;

fair value of any asset or liability resulting from a
contingent consideration arrangement; and

fair value of any pre-existing
Identifiable assets acquired, and liabilities and contingent
liabilities assumed in a business combination are, with limited
exceptions, measured initially at their fair values at the
acquisition date. The Group recognizes any non-controlling acquisition-by-acquisition non-controlling
Acquisition-related costs are expensed as incurred.
The excess of the consideration transferred, amount of any
non-controlling
Where settlement of any part of cash consideration is deferred, the
amounts payable in the future are discounted to their present value
as at the date of exchange. The discount rate used is the
entity’s incremental borrowing rate, being the rate at which
a similar borrowing could be obtained from an independent financier
under comparable terms and conditions.
Contingent consideration, when applicable, is classified either as
equity or a financial liability. Amounts classified as a financial
liability are subsequently remeasured to fair value with changes in
fair value recognized in profit or loss.
If the business combination is achieved in stages, the acquisition
date carrying value of the acquirer’s previously held equity
interest in the acquiree is remeasured to fair value at the
acquisition date. Any gains or losses arising from such
remeasurement are recognized in profit or loss.
Financial instruments(ii) Financial instruments
A financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or equity
instrument of another entity.
1) Financial assets
Initial recognition and measurement
On initial recognition, financial assets are classified as
instruments measured at amortized cost, fair value through other
comprehensive income (“FVOCI”) and fair value through
profit and loss (“FVPL”).
The classification of financial assets at initial recognition is
based on either (i) the Company’s business model for
managing the financial assets and (ii) the instruments’
contractual cash flows characteristics.
For a financial asset to be classified and measured at amortized
cost or FVOCI, it needs to give rise to cash flows that are
‘Solely Payments of Principal and Interest’ (the
“SPPI” criterion) on the principal amount outstanding.
This assessment is referred to as the SPPI test and is performed at
an instrument level.
The Group’s business model for managing financial assets
refers to how it manages its financial assets in order to generate
cash flows. The business model considers whether the
Company’s objective is to receive cash flows from holding the
financial assets, from selling the assets or a combination of
both.
Purchases or sales of financial assets that require delivery of
assets within a time frame set by regulation or market practice
(regular way trades) are recognized on the trade date, i.e., the
date that the Group commits to purchase or sell the asset.
Classification and subsequent measurement
(i)
Financial assets at FVPL
Financial assets at FVPL include Securities, financial assets
designated upon initial recognition at FVPL, or financial assets
mandatorily required to be measured at fair value. This category
includes securities and Derivative financial instruments, including
equity instruments which the Group had not irrevocably elected to
classify at FVOCI.
Financial assets are classified as fair value through profit and
loss if they either fail the contractual cash flow test or in the
Group’s business model are acquired for the purpose of
selling or repurchasing in the near term. Financial assets may be
designated at FVPL on initial recognition if doing so eliminates,
or significantly reduces, an accounting mismatch.
Derivative financial instruments, including separated embedded
derivatives, are also classified as Securities unless they are
designated as effective hedging instruments. Financial assets with
cash flows that do not meet the SPPI criteria are classified and
measured at FVPL, irrespective of the business model.
Financial assets at FVPL are carried in the statement of financial
position at fair value with net changes in fair value recognized in
the statement of income. The net gain or loss recognized in the
statement of income includes any dividend or interest earned on the
financial asset. Financial assets measured at FVTPL consist of
Securities owned and sold short.
A derivative embedded in a hybrid contract, with a financial
liability or non-financial
A derivative embedded within a hybrid contract containing a
financial asset host is not accounted for separately. The financial
asset host together with the embedded derivative is required to be
classified in its entirety as a financial asset at fair value
through profit or loss.
(ii)
Financial assets at FVOCI
The Group measures financial assets at FVOCI if both of the
following conditions are met:

The financial asset is held within a business model
with the objective of both holding to collect contractual cash
flows and to sell.

The contractual terms of the financial asset give rise
on specified dates to cash flows that meet the SPPI criteria.
For financial assets at FVOCI, interest income, foreign exchange
revaluation and impairment losses or reversals are recognized in
the statement of income and similarly to financial assets measured
at amortized cost. The remaining fair value changes are recognized
in OCI. Upon derecognition, the cumulative fair value change
recognized in OCI is recycled to profit or loss.
The Group’s financial assets at FVOCI includes certain debt
instruments.
Upon initial recognition, the Group can elect to classify
irrevocably equity investments at FVOCI when they meet the
definition of equity under IAS 32—“Financial
Instruments: Presentation” and are not financial assets at
FVPL. The classification is determined on
an instrument-by-instrument
Gains and losses on these financial assets are never recycled to
profit or loss. Dividends are recognized as income in the statement
of income when the right of payment has been established, except
when the Group benefits from such proceeds as a recovery of part of
the cost of the financial asset, in which case, such gains are
recorded in OCI. Equity instruments designated at FVOCI are not
subject to impairment assessment.
The Group has no equity instruments that have been irrevocably
classified under this category.
(iii)
Financial assets at amortized cost
A financial asset is measured at amortized cost if both of the
following conditions are met:

The financial asset is held within a business model
with the objective to hold the financial asset in order to collect
contractual cash flows.

The contractual terms of the financial asset give rise
on specified dates to cash flows that meet the SPPI criteria.
Financial assets at amortized cost are subsequently measured using
the Effective Interest Rate (“EIR”) method and are
subject to impairment. Gains and losses are recognized in profit or
loss when the asset is derecognized, modified or impaired.
The Group’s financial assets at amortized cost mainly
includes ‘Securities’, ‘Securities purchased
under agreements to resell’, ‘Securities trading and
intermediation’, ‘Accounts receivable’ and
‘Other financial assets.
The Company reclassifies financial assets only when its business
approach for managing those assets changes.
Derecognition
A financial asset (or, where applicable, a part of a financial
asset or part of a group of similar financial assets) is primarily
derecognized (i.e., removed from the Group’s consolidated
statement of financial position) when:

The contractual rights to receive cash flows from the
asset have expired.

The Group has transferred its contractual rights to
receive cash flows from the asset or has assumed a contractual
obligation to pay the received cash flows in full without material
delay to a third party under a “pass-through”
arrangement; and either (a) the Group has transferred
substantially all the risks and rewards of the asset; or
(b) the Group has neither transferred nor retained
substantially all the risks and rewards of the asset, but has
transferred control of the asset.
When the Group has transferred its contractual rights to receive
cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if, and to what extent, it has retained
the risks and rewards of ownership. When it has neither transferred
nor retained substantially all the risks and rewards of the asset,
nor transferred control of the asset, the Group continues to
recognize the transferred asset to the extent of its continuing
involvement. In that case, the Group also recognizes an associated
liability. The transferred asset and the associated liability are
measured on a basis that reflects the rights and obligations that
the Group has retained.
Continuing involvement that takes the form of a guarantee over the
transferred asset is measured at the lower of the original carrying
amount of the asset and the maximum amount of consideration that
the Group could be required to repay.
Impairment of financial assets
The Group recognizes an allowance for expected credit losses
(“ECLs”) for all debt instruments not held at FVPL.
ECLs are based on the difference between the contractual cash flows
due in accordance with the contract and all the cash flows that the
Group expects to receive, discounted at an approximation of the
original effective interest rate. The expected cash flows will
include cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.
ECLs are recognized in two stages. For credit exposures for which
there has not been a significant increase in credit risk since
initial recognition, ECLs are provided for credit losses that
result from default events that are possible within the
next 12-months 12-month
For accounts receivables and other contract assets, the Group
applies a simplified approach in calculating ECLs. Therefore, the
Group does not track changes in credit risk, but instead recognizes
a loss allowance based on lifetime ECLs at each reporting date. The
Group has established a provision matrix that is based on its
historical credit loss experience, adjusted for forward-looking
factors specific to the debtors and the economic environment.
For debt instruments at FVOCI, the Group applies the low credit
risk simplification. At every reporting date, the Group evaluates
whether the debt instrument is considered to have low credit risk
using all reasonable and supportable information that is available
without undue cost or effort. In making that evaluation, the Group
reassesses the internal credit rating of the debt instrument. In
addition, the Group considers that there has been a significant
increase in credit risk when contractual payments are more than 30
days past due.
The Group considers a financial asset in default when contractual
payments are 90 days past due. However, in certain cases, the Group
may also consider a financial asset to be in default when internal
or external information indicates that the Group is unlikely to
receive the outstanding contractual amounts in full before
considering any credit enhancements held by the Group. A financial
asset is written off when there is no reasonable expectation of
recovering the contractual cash flows.
2) Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as
financial liabilities at FVPL, amortized cost or as Derivative
financial instruments designated as hedging instruments in an
effective hedge, as appropriate.
All financial liabilities are recognized initially at fair value
and, in the case of amortized cost, net of directly attributable
transaction costs.
The Group’s financial liabilities include ‘Securities
Loaned’, ‘Derivative financial instruments’,
‘Securities purchased under agreements to resell’,
‘Securities trading and intermediation’, long-term
debts such as ‘Borrowings and lease liabilities’ and
‘Debentures’, ‘Accounts payables’ and
‘Other financial liabilities’.
Classification and subsequent measurement
(i)
Financial liabilities at FVPL
Financial liabilities at FVPL include securities loaned and
derivatives financial instruments designated upon initial
recognition as at FVPL.
Financial liabilities are classified as securities loaned if they
are incurred for the purpose of repurchasing in the near term. This
category also includes derivative financial instruments entered by
the Group that are not designated as hedging instruments in hedge
relationships as defined by IFRS 9. Separated embedded derivatives
are also classified as fair value through PL unless they are
designated as effective hedging instruments.
Gains or losses on liabilities at fair value through PL are
recognized in the statement of income.
Financial liabilities designated upon initial recognition at FVPL
are designated at the initial date of recognition, and only if the
criteria in IFRS 9 are satisfied. Securities loaned, and derivative
financial instruments are classified as fair value through PL and
recognized at fair value.
(ii)
Amortized cost
After initial recognition, these financial liabilities are
subsequently measured at amortized cost using the Effective
Interest Method (“EIR”) method. Gains and losses are
recognized in profit or loss when the liabilities are derecognized
as well as through the EIR amortization process.
Amortized cost is calculated by considering any discount or premium
on acquisition and fees or costs that are an integral part of the
EIR. The EIR amortization is included as finance costs in the
statement of income.
This category generally applies to Securities sold under repurchase
agreements, Securities trading and intermediation,
‘Borrowings and Lease Liabilities’,
‘Debentures’, ‘Accounts payables’ and
‘Other financial liabilities’.
Derecognition
A financial liability is derecognized when the obligation under the
liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing
liability are substantially modified, such an exchange or
modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference in
the respective carrying amounts is recognized in the statement of
income.
3) Fair value of financial instruments
The fair value of financial instruments actively traded in
organized financial markets is determined based on purchase prices
quoted in the market at the close of business at the reporting
date, without deducting transaction costs.
The fair value of financial instruments for which there is no
active market is determined by using measurement techniques. These
techniques may include the use of recent market transactions (on an
arm’s length basis); reference to the current fair value of
another similar instrument; analysis of discounted cash flows or
other measurement models. See Note 32.
4) Derivative financial instruments and hedging
activities
Derivative financial instruments are financial contracts, the value
of which is derived from the value of the underlying assets,
interest rates, indexes or currency exchange rates.
The Company uses derivative financial instruments to manage foreign
exchange risk on pending security settlements in foreign
currencies. The fair value of these contracts is nominal due to
their short term to maturity. The method of recognizing the
resulting gain or loss depends on whether the derivative is
designated as a hedging instrument, in the case of adoption of
hedge accounting and, if so, the nature of the item being hedged.
The Group adopts only net investment hedge to hedge a net
investment in a foreign operation.
In the case of the Derivative was not designated as a hedging
instrument the initial recognition is at fair value on the date on
which a derivative contract is entered and are subsequently
remeasured at fair value. Derivatives are carried as financial
assets when the fair value is positive and as financial liabilities
when the fair value is negative. Realized and unrealized gains and
losses related to these contracts are recognized in the
consolidated statements of income during the reporting period.
The Company trades in futures contracts, which are agreements to
buy or sell standardized amounts of a financial instrument at a
predetermined future date and price, in accordance with terms
specified by a regulated futures exchange, and subject to daily
cash margining. The Company trades in futures in an attempt to
mitigate interest rate risk, yield curve risk and liquidity
risk.
The Company also trades in forward contracts, which
are non-standardized
a) Net investment hedge
Any gain or loss on the hedging instrument relating to the
effective portion of the hedge is recognized in other comprehensive
income within gains (losses) on net investment hedge. The gain or
loss relating to the ineffective portion is recognized immediately
in the statement of income within net income from financial
instruments at fair value through profit or loss.
Gains and losses accumulated in equity are included in the
statement of income when the foreign operation is partially or
fully disposed of or sold.
b) Hedge ineffectiveness
Hedge effectiveness is determined at the inception of the hedge
relationship, and through periodic prospective effectiveness
assessments to ensure that an economic relationship exists between
the hedged item and hedging instrument.
To evaluate the effectiveness and to measure the ineffectiveness of
such strategies, The Group uses the Dollar Offset Method. The
Dollar Offset Method is a quantitative method that consists of
comparing the change in fair value or cash flows of the hedging
instrument with the change in fair value or cash flows of the
hedged item attributable to the hedged risk.
Cash and cash equivalents(iii) Cash and cash equivalents
Cash is not subject to a significant risk of change in value and
are held for the purpose of meeting short-term cash commitments and
not for investments or other purposes. Transactions are considered
short-term when they have maturities in three months or less from
the date of acquisition. For purposes of consolidated statement of
cash flows, cash equivalents refer to collateral held securities
purchased under agreements to resell and bank deposit certificates
measured at fair value through profit and loss that are readily
convertible into a known cash amount and for which are no subject
to a significant risk of change in value.
Securities purchased under agreements to resell and obligations related to securities sold under repurchase agreements(iv) Securities purchased under agreements to resell and
obligations related to securities sold under repurchase
agreements
The Group has purchased securities with resale agreement (resale
agreements) and sold securities with repurchase agreement
(repurchase agreement) of financial assets. Resale and repurchase
agreements are accounted for under Securities purchased under
agreements to resell and Securities sold under repurchase
agreements, respectively. The difference between the sale and
repurchase prices is treated as interest and recognized over the
life of the agreements using the effective interest rate method.
The financial assets accepted as collateral in our resale
agreements can be used by us, if provided for in the agreements, as
collateral for our repurchase agreements or can be sold.
Securities trading and intermediation (receivable and payable)(v) Securities trading and intermediation (receivable and
payable)
Refers to transactions at B3 S.A.—Brasil, Bolsa, Balcão
(“B3”) on behalf of and on account of third parties.
Brokerages on these transactions are classified as revenues and
service provision expenses are recognized at the time of the
transactions. These balances are offset and the net amount shown in
the balance sheet when, and only when, there is a legal and
enforceable right to offset and the intention to liquidate them on
a net basis, or to realize the assets and settle the liabilities
simultaneously.
Amounts due from and to customers represent receivables for
securities sold and payables for securities purchased that have
been contracted for but not yet settled or delivered on the balance
sheet date respectively. The due from customers balance is held for
collection. These amounts are subdivided into the following
items:

Cash and settlement records—Represented by the
registration of transactions carried out on the stock exchanges on
its own behalf and for customers; and

Debtors/Creditors pending settlement
account—debtor or creditor balances of customers, in
connection with transactions with fixed income securities, shares,
commodities and financial assets, pending settlement as of the
statement of reporting date. Sales transactions are offset and in
the event the final amount is a credit, it will be recorded in
liabilities, on the other hand if this amount is debt, it will be
recorded in assets, provided that the offset balances refer to the
same counterparty.
These amounts are recognized initially at fair value and
subsequently measured at amortized cost. At each reporting date,
the Group shall measure the loss allowance on amounts due from
customer at an amount equal to the lifetime expected credit losses
if the credit risk has increased significantly since initial
recognition. If, at the reporting date, the credit risk has not
increased significantly since initial recognition, the Group shall
measure the loss allowance at an amount equal to 12-month
Any contractual payment which is more than 90 days past due is
considered credit impaired. The estimated credit losses for
brokerage clients and related activity was immaterial for all
periods presented.
Prepaid expenses(vi) Prepaid expenses
Prepaid expenses are recognized as an asset in the balance sheet.
These expenditures include incentives to IFAs, prepaid software
licenses, certain professional services and insurance premiums.
Leases(vii) Leases
As of January 1, 2019 the Group has adopted IFRS 16, replacing
IAS 17, which was applicable until December 31, 2018. Both
accounting practices are explained below.
IAS 17—Leases
Leases in which a significant portion of the risks and rewards of
ownership were not transferred to the Group as lessee were
classified as operating leases. Payments made under operating
leases (net of any incentives received from the lessor) were
charged to profit or loss on a straight-line basis over the period
of the lease.
Lease income from operating leases where the Group is a lessor is
recognized in income on a straight-line basis over the lease term.
Initial direct costs incurred in obtaining an operating lease are
added to the carrying amount of the underlying asset and recognized
as expense over the lease term on the same basis as lease income.
The respective leased assets are included in the balance sheet
based on their nature. The Group did not need to make any
adjustments to the accounting for assets held as lessor as a result
of adopting the new leasing standard.
IFRS 16 Leases
Effective from January 1, 2019, IFRS 16 was issued in January
2016 and supersedes IAS 17 Leases Determining whether an Arrangement contains
a Lease SIC-15 Operating
Leases-Incentives SIC-27 Evaluating
the Substance of Transactions Involving the Legal Form of a
Lease
The Group has adopted IFRS 16 from January 1, 2019 using the
modified retrospective method of adoption, under which the standard
is applied retrospectively with the cumulative effect of initially
applying the standard recognized at the date of initial application
and not restated comparatives for the 2018 and 2017 reporting
period. The reclassifications and the adjustments arising from the
new leasing rules are therefore recognized in the opening balance
sheet on January 1, 2019.
Practical expedients and exemptions applied
In applying IFRS 16 for the first time, the Group has used the
following permitted practical expedients:

applying only to contracts that were previously
identified as leases applying IAS 17 and IFRIC 4 at the date of
initial application;

applying a single discount rate to a portfolio of
leases with reasonably similar characteristics;

relying on previous assessments on whether leases are
onerous as an alternative to performing an impairment review
– there were no onerous contracts as of January 1,
2019;

exempting leases contracts with a remaining lease term
of less than 12 months as of January 1, 2019 and not
containing a purchase option (short-term leases);

exempting lease contracts for which the underlying
asset is of low value (low-value

excluding initial direct costs for the measurement of
the right-of-use

using hindsight in determining the lease term where
the contract contains options to extend or terminate the lease.
i)
Measurement of lease liabilities
and right-of-use
The Group leases its main offices and certain equipments
under non-cancelable
On adoption of IFRS 16, the Group recognized lease liabilities in
relation to leases which had previously been classified as
‘operating leases’ under the principles of IAS 17 These
liabilities were measured at the present value of the remaining
lease payments, discounted using the lessee’s incremental
borrowing rate as of January 1, 2019. The weighted average
lessee’s incremental borrowing rate applied to the lease
liabilities on January 1, 2019 was 9.0%.
Operating lease commitments disclosed as of December 31,
2018 209,318
Discounted using the incremental borrowing rate of at the date of
initial application (60,099 )
(Less): short-term leases recognized on a straight-line basis as
expense (725 )
Lease liability recognized as of January 1, 2019 148,494
The associated right-of-use
Lease liability recognized as of January 1, 2019 148,494
(Less): accrued lease payments as of December 31, 2018 (14,624 )
Total right-of-use 133,870
Represented by:
Properties 123,262
Equipments 10,608
As a result of initial adoption, there is no impact to retained
earnings in equity on January 1,
2019. Right-of-use “Right-of-use
ii)
Summary of new accounting policies
Set out below are the new accounting policies of the Group upon
adoption of IFRS 16, which have been applied from the date of
initial application:
Right-of-use
The Group recognizes right-of-use Right-of-use
The cost of right-of-use right-of-use Right-of
Lease liabilities
At the commencement date of the lease, the Group recognizes lease
liabilities measured at the present value of lease payments to be
made over the lease term. The lease payments include fixed payments
(including in-substance
In calculating the present value of lease payments, the Group uses
the incremental borrowing rate at the lease commencement date if
the interest rate implicit in the lease is not readily
determinable. After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the carrying
amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in
the in-substance
Short-term leases and leases of low-value
The Group applies the short-term lease recognition exemption to its
short-term leases of properties (i.e., those leases that have a
lease term of 12 months or less from the commencement date and do
not contain a purchase option). It also applies the lease
of low-value low-value
Significant judgement in determining the lease term of contracts
with renewal options
The Group determines the lease term as
the non-cancellable
The Group has the option, under some of its leases to lease the
assets for additional terms. The Group applies judgement in
evaluating whether it is reasonably certain to exercise the option
to renew. That is, it considers all relevant factors that create an
economic incentive for it to exercise the renewal. After the
commencement date, the Group reassesses the lease term if there is
a significant event or change in circumstances that is within its
control and affects its ability to exercise (or not to exercise)
the option to renew (e.g., a change in business strategy).
Property and equipment(viii) Property and equipment
All property and equipment are stated at historical cost less
accumulated depreciation and impairment. Historical cost includes
expenditures that are directly attributable to the acquisition of
the items and, if applicable, net of tax credits. Subsequent costs
are included in the asset’s carrying amount or recognized as
a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the
Group and the cost of the item is material and can be measured
reliably. All other repairs and maintenance expenditures are
charged to profit or loss during the period in which they are
incurred. Depreciation is calculated on a straight-line basis over
the estimated useful lives of the assets, as follows:
Annual Rate (%)
Data Processing Systems 20 %
Furniture and equipment 10 %
Security systems 10 %
Facilities 10 %
Assets’ residual values, useful lives and methods of
depreciation are reviewed at each reporting date and adjusted
prospectively, if appropriate. An asset’s carrying amount is
written down immediately to its recoverable amount, which is the
higher of its fair value less costs of disposal and its value in
use, if the asset’s carrying amount is greater than its
estimated recoverable amount. Gains and losses on disposals or
derecognition are determined by comparing the disposal proceeds (if
any) with the carrying amount and are recognized in profit or
loss.
Intangible assets(ix) Intangible assets
i) Goodwill
Goodwill arises on the acquisition of subsidiaries and represents
the excess of (i) the consideration transferred; (ii) the
amount of any non-controlling non-controlling
Goodwill impairment reviews are undertaken annually or more
frequently if events or changes in circumstances indicate a
potential impairment.
ii) Software and development costs
Certain direct development costs associated with internally
developed software and software enhancements of the Group’s
technology platform is capitalized. Capitalized costs, which occur
post determination by management of technical feasibility, include
external services and internal payroll costs. These costs are
recorded as intangible assets when development is complete, and the
asset is ready for use, and are amortized on a straight-line basis,
generally over a period of five years. Research
and pre-feasibility
iii) Other intangible assets
Separately acquired intangible assets are measured at cost on
initial recognition. The cost of intangible assets acquired in a
business combination corresponds to their fair value at the
acquisition date. After initial recognition, intangible assets are
stated at cost, less any accumulated amortization and accumulated
impairment losses. Internally generated intangible assets other
than (i) above, are not capitalized and the related
expenditure is reflected in profit or loss in the period in which
the expenditure is incurred.
The useful life of intangible assets is assessed as finite or
indefinite. As of December 31, 2019 and 2018, the Group does
not hold indefinite life intangible assets, except for
goodwill.
Intangible assets with finite useful lives are amortized over their
estimated useful lives and tested for impairment whenever there is
an indication that their carrying amount may be not be recovered.
The period and method of amortization for intangible assets with
finite lives are reviewed at least at the end of each fiscal year
or when there are indicators of impairment. Changes in estimated
useful lives or expected consumption of future economic benefits
embodied in the assets are considered to modify the amortization
period or method, as appropriate, and treated as changes in
accounting estimates.
The amortization of intangible assets with definite lives is
recognized in profit or loss in the expense category consistent
with the use of intangible assets. The useful lives of the
intangible assets are shown below:
Estimate useful life (years)
Software 3-5
Internally developed intangible 3-7
Customer list 2-8
Trademarks 10-20
Gains and losses resulting from the disposal or derecognition of
intangible assets are measured as the difference between the net
disposal proceeds (if any) and their carrying amount and are
recognized in profit or loss.
Impairment of non-financial assets(x) Impairment of non-financial
Assets that have an indefinite useful life, for example goodwill,
are not subject to amortization and are tested annually for
impairment. Goodwill impairment reviews are undertaken annually or
more frequently if events or changes in circumstances indicate a
potential impairment. Assets that are subject to depreciation or
amortization are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognized when the
asset’s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair value
less costs to sell and its value in use.
For the purposes of assessing impairment, assets are grouped at the
lowest levels for which there are separately identifiable cash
flows (Cash-generating units (CGU’s)). For the purpose of
impairment testing, goodwill acquired in a business combination is
allocated to each of the CGUs (or groups of CGUs) that is expected
to benefit from the synergies of the combination, which are
identified at the operating segment level.
Non-financial
Taxes(xi) Taxes
i) Current income and social contribution taxes
Each of Group’s entities pay Federal Income Tax (IRPJ) and
Social Contribution on Net Income (CSLL) under one of two different
methods:

APM—Actual Profit Method, where the taxpayer
calculates both taxes based on its actual taxable income, after
computing all income, gains and tax-deductible

PPM—Presumed Profit Method, where taxpayer
calculates IRPJ and CSLL applying a presumed profit margin over the
operating revenues. It is important to emphasize that the profit
margin is defined by Brazilian Revenue Service (RFB) according to
type of services rendered and/or goods sold. Under the PPM method,
both taxes are due on a quarterly basis and no prepayment are
required during the quarters. This method can be adopted only by
entities with gross revenue up to a annually revised threshold
determined by tax authorities.
The tax rates applicable to APM or PPM are also defined according
to entities’ main activity:

Federal Income Tax (IRPJ)—tax rate of 15%
calculated on taxable income and a surcharge of 10% calculated on
the taxable income amount that exceeds R$ 20 per month (or R$ 240
annually).

Social Contribution on Net Income (CSLL)—tax
rate of 9% calculated on taxable income. However, financial
institutions (i.e., XP CCTVM and Banco XP) and insurance companies
(i.e., XP Vida e Previdência) are subject to a higher CSLL
rate of 15%. From 2015 to 2018, this rate was temporarily increased
to 20% by means of federal Law 12.169/2015
ii) Deferred income and social contribution taxes
Deferred income tax and social contribution are recognized, using
the liability method, on temporary differences between the tax
bases of assets and liabilities and their carrying amounts in the
financial statements. However, deferred taxes are not accounted for
if they arise from initial recognition of an asset or liability in
a transaction other than a business combination that at the time of
the transaction affects neither accounting nor taxable profit or
loss.
Deferred tax assets are recognized only to the extent it is
probable that future taxable profit will be available against which
the temporary differences and/or tax losses can be utilized. In
accordance with the Brazilian tax legislation, loss carryforwards
can be used to offset up to 30% of taxable profit for the year and
do not expire.
Deferred tax is provided on temporary differences arising on
investments in subsidiaries, except for a deferred tax liability
where the timing of the reversal of the temporary difference is
controlled by the Group and it is probable that the temporary
difference will not reverse in the foreseeable future.
Deferred tax assets and liabilities are presented net in the
statement of financial position when there is a legally enforceable
right and the intention to offset them upon the calculation of
current taxes, generally when related to the same legal entity and
the same jurisdiction. Accordingly, deferred tax assets and
liabilities in different entities or in different countries are
generally presented separately, and not on a net basis.
iii) Sales and other taxes
Revenues, expenses and assets are recognized net of sales tax,
except:

When the sales taxes incurred on the purchase of goods
or services are not recoverable from tax authorities, in which case
the sales tax is recognized as part of the cost of acquiring the
asset or expense item, as applicable;

When the amounts receivable or payable are stated with
the amount of sales taxes included.
The net amount of sales taxes, recoverable or payable to the tax
authority, is included as part of receivables or payables in the
balance sheet, and net of corresponding revenue or cost / expense,
in the statement of income.
Sales revenues in Brazil are subject to taxes and contributions, at
the following statutory rates:

PIS and COFINS are contributions levied by the
Brazilian Federal government on gross revenues. These amounts are
invoiced to and collected from the Group’s customers and
recognized as deductions to gross revenue (Note 26) against tax
liabilities, as we are acting as tax withholding agents on behalf
of the tax authorities. PIS and COFINS paid on certain purchases
may be claimed back as tax credits to offset PIS and COFINS
payable. These amounts are recognized as Recoverable taxes (Note
11) and are offset monthly against Taxes payable and presented net,
as the amounts are due to the same tax authority. PIS and COFINS
are contributions calculated on two different regimes according to
Brazilian tax legislation: cumulative method
and non-cumulative
The non-cumulative
Otherwise, the cumulative method should be adopted by entities
under the Presumed Profit Method (PPM) and is also mandatory to
Financial and Insurance Companies. The rate applicable to companies
under PPM are PIS 0.65% and COFINS 3.00%. Financial entities (i.e.,
XP CCTVM) and Insurance companies (i.e., XP Vida e
Previdência) have a different percentage of COFINS with the
surcharge of 1.00%, totaling 4.00%.

ISS is a tax levied by municipalities on revenues from
the provision of services. ISS tax is added to amounts invoiced to
the Group’s customers for the services the Group renders.
These are recognized as deductions to gross revenue (Note 26)
against tax liabilities, as the Group acts as agent collecting
these taxes on behalf of municipal governments. The rates may vary
from 2.00% to 5.00%. The ISS stated in the table is applicable to
the city of São Paulo and Rio de Janeiro refers to the rate
most commonly levied on the Group’s operations.

INSS is a social security charge levied on wages paid
to employees.
Equity security loans(xii) Equity security loans
Represent liabilities to return cash proceeds from security lending
transactions. Securities lending transactions are used primarily to
earn spread income which relates mainly to equity securities
received with a fixed term payable, based on the fair value of the
securities plus pro rata interest over the period of the loan.
Equity securities borrowed are recognized as unrestricted assets on
the statement of financial position and may be sold to third
parties. The Equity security loans is recorded as a trading
liability and measured at fair value with any gains or losses
included in the income statement under net fair value
gains/(losses) on financial instruments (Note 26 b).
Borrowings and debentures(xiii) Borrowings and debentures
Borrowings and debentures are recognized initially at fair value,
net of transaction costs incurred, and subsequently carried at
amortized cost. Any difference between the proceeds (net of
transaction costs) and the total amount payable is recognized in
the statement of income over the period of the borrowings using the
effective interest rate method.
Borrowing and debentures costs are recognized as interest expense
on debt in the period in which they are incurred. The Group does
not have qualifying assets to which costs could be capitalized.
Accounts payables(xiv) Accounts payables
Accounts payables are obligations to pay for goods or services that
have been acquired in the ordinary course of business. Accounts
payables are recognized initially at fair value and subsequently
measured at amortized cost using the effective interest rate
method.
Private pension liabilities(xv) Private pension liabilities
Private pension plans, relates to accumulation of financial
resources, called PGBL (Plan Generator of Benefits), a plan that
aims at accumulating funds for participant’s retirement in
life, and VGBL (Redeemable Life Insurance), a financial product
structured as a pension plan. In both products, the contribution
received from the participant is applied to a Specially Constituted
Investment Fund (“FIE”) and accrues interest based on
FIE investments.
The private pension products offered by Company do not contain
significant insurance risk where the Company accepts significant
insurance risk from participants by agreeing to compensate them if
a specified uncertain future event adversely affects them. These
products also do not contain any discretionary participation
features. Therefore, the contracts are accounted for under the
scope of IFRS 9, Financial Instruments (“IFRS 9”).
Provisions(xvi) Provisions
Provisions for legal claims (labor, civil and tax) are recognized
when: (i) the Group has a present legal or constructive
obligation as a result of past events; (ii) it is probable
that an outflow of resources will be required to settle the
obligation; and (iii) the amount can be reliably estimated.
Provisions do not include future operating losses.
Where there are a number of similar obligations, the likelihood
that an outflow will be required in settlement is determined by
considering the class of obligations as a whole. A provision is
recognized even if the likelihood of an outflow with respect to any
one item included in the same class of obligations may be
small.
Provisions are measured at the present value of the expenditures
expected to be required to settle the obligation using a
pre-tax
Employee benefits(xvii) Employee benefits
i) Short-term obligations
Liabilities in connection with short-term employee benefits are
measured on a non-discounted
The liability is recognized for the expected amount to be paid
under the plans of cash bonus or short-term profit sharing if the
Group has a legal or constructive obligation of paying this amount
due to past service provided by employees and the obligation may be
reliably estimated.
ii) Share-based plan
The establishment of the shared-based plan was approved by the
board of Director’s meeting on December 6, 2019.
The Company launched two share-based plans, the Restricted Stock
Unit “RSU” and the Performance Share Unit
(“PSU”). The shared-based plans are designed to
provided long-term incentives to certain employees, directors, and
other eligible service providers in exchange for their services.
For both plans, management commits to grant shares of XP Inc to the
defined participants.
The cost of share-based compensation is measured using the fair
value at the grant date. The cost is expensed together with a
corresponding increase in equity over the service period or on the
grant date when the grant relates to past services.
The total amount to be expensed is determined by reference to the
fair value of the tranche shares granted at the grant date, which
is also based on:

Including any market performance conditions;

Including the impact of
any non-market

Including the impact of
any non-vesting
The total expense is recognized over the vesting period, which is
the period over which all of the specified vesting conditions are
to be satisfied. At the end of each period, the entity revises its
estimates of the number of shares that are expected to vest based
on the non-market
When the shares are vested, the Company transfers the correspondent
number of shares to the participant. The shares received by the
participants, net of any directly attributable transactions costs
(including withholding taxes) are credited directly to equity.
The significant judgments, estimates and assumptions regarding
share-based payments and activity relating to share-based payments
are discussed further in Note 30.
iii) Profit-sharing and bonus plans
The Group recognizes a liability and an expense for bonuses and
profit-sharing based on a formula that takes into consideration the
profit attributable to the owners of the Company after certain
adjustments, and distributed based on individual and collective
performance, including qualitative and quantitative indicators.
Employee profit-sharing terms are broader established by means of
annual collective bargaining with workers’ unions. The Group
recognizes a provision where contractually obliged or where there
is a past practice that has created a constructive obligation.
Share capital(xviii)
Share capital
Common shares are classified in equity. Incremental costs directly
attributable to the issue of new shares or options are shown in
equity as a deduction, net of tax, from the proceeds.
Earnings per share(xix) Earnings per share
Basic earnings per share is calculated by dividing the profit
attributable to owners of the Company, excluding any costs of
servicing equity other than ordinary and preferred shares by the
weighted average number of ordinary and preferred shares
outstanding during the year, adjusted for bonus elements in
ordinary and preferred shares issued during the year and excluding
treasury shares (Note 31).
Diluted earnings per share adjusts the figures used in the
determination of basic earnings per share to take into account the
after-income tax effect of interest and other financing costs
associated with dilutive potential common and preferred shares, and
the weighted average number of additional common and preferred
shares that would have been outstanding assuming the conversion of
all dilutive potential common and preferred shares.
Revenue and income(xx) Revenue and income
1) Revenue from contracts with customers
Revenue is recognized when the Group has transferred control of the
services to the customers, in an amount that reflects the
consideration the Group expects to collect in exchange for those
services.
The Group applies the following five steps: i) identification of
the contract with a customer; ii) identification of the performance
obligations in the contract; iii) determination of the transaction
price; iv) allocation of the transaction price to the performance
obligations in the contract; and v) recognition of revenue when or
as the entity satisfies a performance obligation.
Revenue is recognized net of taxes collected from customers, which
are subsequently remitted to governmental authorities.
The Group has discretion to involve and contract a third-party
providers in providing services to the customer on its behalf. The
Group presents the revenues and associated costs to such
third-party providers on a gross basis where it is deemed to be the
principal and on a net basis where it is deemed to be the agent.
Generally, the Group is deemed to be the principal in these
arrangements because the Group controls the promised services
before they are transferred to customers, and accordingly presents
the revenue gross of related costs.
The Group main types of revenues contracts are:
i) Brokerage commission
Brokerage commission revenue consist of revenue generated through
commission-based brokerage services on each transaction carried out
on i.e. the stock exchanges for customers, recognized at a point in
time (trade date) as the performance obligation is satisfied.
ii) Securities placement
Securities placement revenue refers to fees and commissions earned
on the placement of a wide range of securities on behalf of issuers
and other capital raising activities, such as mergers and
acquisitions, including related finance advisory services. The act
of placing the securities is the sole performance obligation and
revenue is recognized at the point in time when the underlying
transaction is complete under the engagement terms and it is
probable that a significant revenue reversal will not occur.
iii) Management fees
Management fees relates substantially to (i) services as
investments advisor from funds, investment clubs and wealth
management; and (ii) distributions of quotas from investments
funds managed by others. Revenue is recognized over the period of
time when this performance obligation is delivered, and generally
based on an agreed-upon fixed percentage of the net asset value of
each fund on a monthly basis. A part of management fees are
performance-based (performance fees), which are recognized for the
delivery of asset management services and calculated based on
appreciation of the net asset value of the funds, subject to
certain thresholds, such as internal rates of returns or hurdle
rates in accordance with the terms of the fund’s
constitution. Performance fees, which includes variable
consideration, are only recognized after an assessment of the facts
and circumstances and when it is highly probable that significant
reversal of the amount of cumulative revenue recognized will not
occur when the uncertainty is resolved.
iv) Insurance brokerage fee
Refers to insurance brokerage, capitalization, pension plans and
health insurance through the intermediation of the sale of
insurance services.
Revenues are recognized after the provision of brokerage services
to insurers. Products that were sold through XP Corretora de
Seguros are inspected monthly, and amounts received from commission
are recognized as revenue at a point in time as the performance
obligation is satisfied.
v) Educational services
Educational revenue relates to advising and consulting on finance,
financial planning, business management and the development of
courses and business training programs in the national territory
through the development and management of courses.
vi) Other services
Other services refers to revenue related to finance advisory
services, advertisements on the Group’s website and
sponsorship on events held by the Group.
2) Net income from financial instruments
Net income from financial instruments include realized gains and
losses on the sales of investments, unrealized gains and losses
resulting from our investments measured at fair value and interest
earned on both cash balances and investments in connection with our
trading activities. These gains and losses are outside the scope of
IFRS 15 but in scope of IFRS 9 – Financial Instruments, and
the related accounting policies are disclosed in Note 3.
Changes in accounting policies(xxi) Changes in accounting policies
(xx.1) IFRS 16—Leases
As indicate in note above the group has adopted IFRS 16 Leases,
starting from January 1, 2019, leases of
property, plant and equipment where the group, as lessee, has
substantially all the risks and rewards of ownership were
classified as operating leases (note 3(vii)).
The new policy is described Note 3(vii) and the impact of the
change in Note 13(d).
(xx.2) IFRIC Interpretation 23—Uncertainty over Income Tax
Treatment
The interpretation addresses the accounting for income taxes when
tax treatments involve uncertainty that affects the application of
IAS 12 Income Taxes

Whether an entity considers uncertain tax treatments
separately;

The assumptions an entity makes about the examination
of tax treatments by taxation authorities;

How an entity determines taxable profit (tax loss),
tax bases, unused tax losses, unused tax credits and tax rates;

How an entity considers changes in facts and
circumstances.
An entity has to determine whether to consider each uncertain tax
treatment separately or together with one or more other uncertain
tax treatments. The approach that better predicts the resolution of
the uncertainty needs to be followed.
The Group applied the interpretation and did not have significant
impact on the consolidated financial statements.

Basis of preparation of the f_3

Basis of preparation of the financial statements (Tables)3 Months Ended
Mar. 31, 2020
Text Block [Abstract]
Summary of direct and indirect interests of CompanyThere were no changes since December 31, 2019 in the
accounting practices adopted for consolidation and in the direct
and indirect interests of Company in its subsidiaries for the
purposes of these unaudited interim condensed consolidated
financial statements, except for the following item:
% of Group’s interest (i)
Entity name Country of Principal March 31, December 31,
Indirectly controlled
XP PE Gestão de Recursos Ltda. (ii) Brazil Private 99.10 %

(i)
The percentage of participation represents the
Group’s interest in total capital and voting capital of its
subsidiaries.
(ii)
New operating subsidiaries incorporated in 2020.

Securities purchased (sold) u_2

Securities purchased (sold) under resale (repurchase) agreements (Tables)3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Summary of securities purchased under agreements to resella) Securities purchased under agreements to resell
March 31, 2020 December 31, 2019
Available portfolio 3,294,442 971,991
National Treasury Notes (NTNs) 3,221,176 771,099
Financial Treasury Bills (LFTs)
— 195,980
National Treasury Bills (LTNs) 73,266 4,912
Collateral held 11,622,352 8,518,099
National Treasury Bills (LTNs) 293,787 1,764,410
National Treasury Notes (NTNs) 11,328,565 6,753,689
Total 14,916,794 9,490,090
2019 2018
Available portfolio 971,991 488,809
National Treasury Notes (NTNs) 771,099 65,136
Financial Treasury Bills (LFTs) 195,980 38,014
National Treasury Bills (LTNs) 4,912 385,659
Collateral held 8,518,099 6,081,800
National Treasury Bills (LTNs) 1,764,410 4,911,635
National Treasury Notes (NTNs) 6,753,689 1,170,165
Total 9,490,090 6,570,609
Summary of Securities sold under repurchase agreementsb) Securities sold under repurchase agreements
March 31, 2020 December 31, 2019
National Treasury Bills (LTNs) 16,829,549 8,533,113
National Treasury Notes (NTNs) 3,057,813 5,653,994
Financial Treasury Bills (LFTs) 1,220,908 1,451,300
Agribusiness receivables certificates (CRA) 3,031

Total 21,111,301 15,638,407

Securities (Tables)

Securities (Tables)3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Summary of securities classified at fair value through profit and loss and at fair value through other comprehensive incomea) Securities classified at fair value through profit and loss
and at fair value through other comprehensive income
March 31, 2020 December 31, 2019
Gross Fair value Gross Fair Value
Financial assets
At fair value through profit and loss 24,911,824 25,091,723 22,332,936 22,443,392
Agribusiness receivables certificates 532,281 515,994 598,085 589,525
Bank deposit certificates (i) 270,022 272,972 244,071 246,827
Brazilian government bonds 15,461,665 15,669,359 15,404,300 15,494,046
Certificate of real estate receivable 211,458 205,546 75,922 75,123
Debentures 1,017,997 973,503 885,344 885,068
Financial credit bills 83,762 82,765 98,068 106,759
Investment funds 4,525,734 4,525,734 3,047,198 3,047,198
USA government bonds 1,856,714 1,857,216


Real estate credit bill 1,367 1,392 1,282 1,300
Stocks issued by public-held company 312,547 312,547 1,562,965 1,562,965
Structured transaction certificate 305,188 332,039 237,112 256,381
Others (ii) 333,089 342,656 178,589 178,200
At fair value through other comprehensive income 4,836,127 4,896,387 2,608,325 2,616,118
National treasury bill 4,836,127 4,896,387 2,608,325 2,616,118
(i)
Bank deposit certificates include R$ 152,200 (December
31, 2019—R$ 123,817) is being presented as cash equivalents
in the statements of cash flows.
(ii)
Mainly related to bonds issued and traded
overseas.
a)
Securities classified at fair value through profit and
loss and at fair value through other comprehensive income are
presented in the following table:
2019 2018
Gross carrying Fair value Gross carrying Fair value
Financial assets
At fair value through profit or loss 22,332,936 22,443,392 6,262,735 6,290,971
Agribusiness receivables certificates 598,085 589,525 85,668 85,874
Bank deposit certificates (i) 244,071 246,827 172,451 171,725
Brazilian government bonds 15,404,300 15,494,046 3,826,902 3,853,534
Certificate of real estate receivable 75,922 75,123 208,442 207,167
Debentures 885,344 885,068 325,459 326,403
Financial credit bills 98,068 106,759 45,040 44,663
Investment funds 3,047,198 3,047,198 279,013 279,013
Others (ii) 178,589 178,200 167,714 167,716
Real estate credit bill 1,282 1,300 3,697 4,883
Structured transaction certificate 237,112 256,381 21,275 22,949
Stocks issued by public-held company 1,562,965 1,562,965 1,127,074 1,127,044
At fair value through other comprehensive income 2,608,325 2,616,118 688,731 695,778
National treasury bill 2,608,325 2,616,118 688,731 695,778
(i)
Bank deposit certificates include R$ 123,817 (2018
– R$ 69,647) is being presented as cash equivalents in the
statements of cash flows.
(ii)
Mainly related to bonds issued and traded
overseas.
Summary of securities evaluated at amortized costb) Securities evaluated at amortized cost
March 31, 2020 December 31, 2019
Gross Book Value Gross Book Value
Financial assets
At amortized cost 1,267,826 1,267,826 2,266,971 2,266,971
Bonds 1,267,826 1,267,826 2,266,971 2,266,971
b)
Securities evaluated at amortized cost are presented
in the following table:
2019 2018
Gross carrying Book value Gross carrying Book value
Financial assets
At amortized cost
Bonds 2,266,971 2,266,971 155,292 155,292
Summary of securities on the financial liabilities classified at fair value through profit or lossc) Securities on the financial liabilities classified at fair
value through profit or loss
March 31, 2020 December 31, 2019
Gross Book value Gross Book Value
Financial liabilities
At fair value through profit or loss
Securities loaned 721,131 721,131 2,021,707 2,021,707
c)
Securities on the financial liabilities classified at
fair value through profit or loss are presented in the following
table:
2019 2018
Gross carrying Book value Gross carrying Book value
Financial liabilities
At fair value through profit or loss
Securities loaned 2,021,707 2,021,707 1,259,579 1,259,579
Summary of securities classified by maturityd) Securities classified by maturity
Assets Liabilities
March 31, December 31, March 31, December 31,
Financial assets
At fair value through P&L and at OCI
Current 8,417,190 9,804,819 721,131 2,021,707
Non-stated 5,405,233 4,999,333 721,131 2,021,707
Up to 3 months 1,814,839 257,544


From 3 to 12 months 1,197,118 4,547,942


Non-current 21,570,920 15,254,691


After one year 21,570,920 15,254,691


Evaluated at amortized cost
Current 1,267,826 2,266,971


Up to 3 months 423,837 807,218


From 3 to 12 months 843,989 1,459,753


Total 31,255,936 27,326,481 721,131 2,021,707
Below is presented the securities classified by maturity:
Assets Liabilities
2019 2018 2019 2018
Financial assets
At fair value through PL and at OCI
Current 9,804,819 1,875,374 2,021,707 1,192,877
Non-stated 4,999,333 1,425,401 2,021,707

Up to 3 months 257,544 192,208
— 1,184,972
From 3 to 12 months 4,547,942 257,765
— 7,905
Non-current 15,254,691 5,111,375
— 66,702
After one year 15,254,691 5,111,375
— 66,702
Evaluated at amortized cost
Current 2,266,971 155,292


Non-staded 807,218



From 3 to 12 months 1,459,753 155,292


Total 27,326,481 7,142,041 2,021,707 1,259,579

Derivative financial instrume_2

Derivative financial instruments (Tables)3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Summary of the Derivative financial instruments portfolio (assets and liabilities) by type of instrumentBelow is the composition of the derivative financial instruments
portfolio (assets and liabilities) by type of instrument, stated
fair value and by maturity:
March 31, 2020
Notional Fair Value % Up to From 3 to Above
Assets
Options 380,556,621 7,156,611 84 2,612,257 2,482,728 2,061,626
Swap contracts 3,864,467 789,707 8 392,631 11,953 385,123
Forward contracts 707,973 567,259 7 545,521 3,679 18,059
Future contracts 6,201 1,216 1 1,216


Total 385,135,262 8,514,793 100 3,551,625 2,498,360 2,464,808
Liabilities
Options 439,211,735 6,469,055 86 1,932,259 2,354,129 2,182,667
Swap contracts 2,915,357 425,108 6 22,309 13,866 388,933
Forward contracts 4,223,982 631,912 8 558,697 73,152 63
Total 446,351,074 7,526,075 100 2,513,265 2,441,147 2,571,663
December 31, 2019
Notional Fair Value % Up to From 3 to Above
Assets
Options 498,484,022 2,742,035 67 1,837,073 577,177 327,785
Swap contracts 3,955,473 1,133,768 27 10,418 700,668 422,682
Forward contracts 1,857,542 187,392 5 159,163 28,175 54
Future contracts 15,920,584 21,809 1 21,809


Total 520,217,621 4,085,004 100 2,028,463 1,306,020 750,521
Liabilities
Options 488,482,756 2,741,592 85 1,745,532 637,393 358,667
Swap contracts 3,420,857 485,164 14 15,838 40,687 428,639
Forward contracts 164,209 2,480 1 1,693 325 462
Total 492,067,822 3,229,236 100 1,763,063 678,405
787,768
Below is the composition of the Derivative financial instruments
portfolio (assets and liabilities) by type of instrument, stated
fair value and by maturity:
2019
Fair Value % Up to From 3 to Above
Assets
Swap contracts 1,133,768 27 10,418 700,668 422,682
Forward contracts 187,392 5 159,163 28,175 54
Future contracts 21,809 1 21,809


Options 2,742,035 67 1,837,073 577,177 327,785
Total 4,085,004 100 2,028,463 1,306,020 750,521
Liabilities
Options 2,741,592 85 1,745,532 637,393 358,667
Forward contracts 2,480 1 1,693 325 462
Swap contracts 485,164 14 15,838 40,687 428,639
Total 3,229,236 100 1,763,063 678,405 787,768
2018
Fair value %
Up to 3 months From 3 to 12 Above 12 months
Assets
Swap contracts 244,262 14 4,675 25,054 214,533
Forward contracts 573,963 34 363,863 210,100

Future contracts 6,599 1 4,613 1,986

Options 867,207 51 255,281 234,742 377,184
Total 1,692,031 100 628,432 471,882 591,717
Liability
Options 726,497 73 128,470 217,387 380,640
Forward contracts 17,170 2 16,972 25 173
Swap contracts 247,732 25 7,710 25,094 214,928
Total 991,399 100 153,152 242,506 595,741
Summary of positions with derivative financial instrumentsPositions with derivative financial instruments as of
December 31, 2019 and 2018 are shown below:
2019
Assets Liabilities
Fair value Notional Fair value Notional
Swaps 1,133,768 3,955,473 485,164 3,420,857
Forward contracts 187,392 1,857,542 2,480 164,209
Futures contracts 21,809 15,920,584


Options 2,742,035 498,484,022 2,741,592 488,482,756
Total 4,085,004 520,217,621 3,229,236 492,067,822
2018
Assets Liabilities
Fair value Notional Fair value Notional
Swaps 244,262 3,454,728 247,732 3,981,304
Forward contracts 573,963 809,202 17,170 19,142
Futures contracts 6,599 5,679,425


Options 867,207 78,746,383 726,497 82,579,675
Total 1,692,031 88,689,738 991,399 86,580,121
Summary of derivatives financial instruments by indexDerivatives financial instruments by index:
2019 2018
Notional Fair Value Notional Fair Value
Swap Contracts
Asset Position
Interest 3,955,473 1,133,768 3,454,728 244,262
Liability Position
Interest 3,420,857 (485,164 ) 3,981,304 (247,732 )
Forward Contracts
Asset Position
Foreign exchange 1,710,648 40,499 239,478 4,239
Share

— 342,681 342,681
Interest 146,893 146,893 227,043 227,043
Liability Position
Foreign exchange 162,551 (822 ) 2,234 (262 )
Shares 1,658 (1,658 ) 16,908 (16,908 )
Future Contracts
Purchase commitments
Foreign exchange 965 329 5,679,425 6,599
Interest 15,919,619 21,480


Options
Purchase commitments
Foreign exchange 37,500 82,369 1,734,063 115,570
Share 1,770,220 210,448 5,500,627 365,631
Commodities

— 213 1,582
Interest 496,676,302 2,449,218 71,511,480 384,424
Commitments to sell
Foreign exchange 37,500 (94,612 ) 2,059,104 (171,918 )
Shares 2,511,960 (229,291 ) 3,245,796 (172,748 )
Commodities

— 130 (1,391 )
Interest 485,933,296 (2,417,689 ) 77,274,645 (380,440 )
Assets 4,085,004 1,692,031
Liabilities (3,229,236 ) (991,399 )
Net 855,768 700,632

Hedge accounting (Tables)

Hedge accounting (Tables)3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Summary of detailed information about hedging instrumentsThe Group undertakes risk management through the economic
relationship between hedge instruments and hedged item, in which it
is expected that these instruments will move in opposite
directions, in the same proportions, with the aim of neutralizing
the risk factors.
Hedged item Hedge instrument
Book Value Variation in Nominal Variation in ineffectiveness
Strategies Assets Liabilities
March 31, 2020
Foreign exchange risk
Hedge of net investment in foreign operations 228,563
— 52,428 385,484 (56,496 )
Total 228,563
— 52,428 385,484 (56,496 )
December 31, 2019
Foreign exchange risk
Hedge of net investment in foreign operations 186,412
— 5,946 248,896 (7,133 )
Total 186,412
— 5,946 248,896 (7,133 )
The Group undertakes risk management through the economic
relationship between hedge instruments and hedged item, in which it
is expected that these instruments will move in opposite
directions, in the same proportions, with the aim of neutralizing
the risk factors.
Hedged item Hedge instrument
Book Value Variation in Nominal Variation in
Strategies Assets Liabilities
2019
Foreign exchange risk
Hedge of net investment in foreign operations 186,412
— 5,946 248,896 (7,133 )
Total 186,412
— 5,946 248,896 (7,133 )
2018
Foreign exchange risk
Hedge of net investment in foreign operations 147,179
— 18,645 225,901 (17,495 )
Total 147,179
— 18,645 225,901 (17,495 )
2017
Foreign exchange risk
Hedge of net investment in
foreign operations 100,323
— 2,034 145,552 (2,386 )
Total 100,323
— 2,034 145,552 (2,386 )

Recoverable taxes (Tables)

Recoverable taxes (Tables)3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Summary of Securities Trading and Intermediation Assets and LiabilitiesRepresented by operations at B3 on behalf of and on account of
third parties, with liquidation operating cycle between D+1 and
D+3.
March 31, December 31,
Cash and settlement records 49 13,823
Debtors pending settlement 956,760 477,646
Other 58,976 13,514
Total Assets 1,015,785 504,983
Cash and settlement records 557,632 474,759
Creditors pending settlement 12,775,907 8,639,787
Total Liabilities 13,333,539 9,114,546
Represented by operations at B3 on behalf of and on account of
third parties, with liquidation operating cycle between D+1 and
D+3.
2019 2018
Cash and settlement records 13,823 164,322
Debtors pending settlement 477,646 731,611
Other 13,514 2,379
Total Assets 504,983 898,312
Cash and settlement records 474,759 90,056
Creditors pending settlement 8,639,787 5,216,572
Total Liabilities 9,114,546 5,306,628
Summary of Recoverable Taxes2019 2018
Prepayments of income taxes (IRPJ and CSLL) 225,465 182,021
Contributions over revenue (PIS and COFINS) 16,859 533
Taxes on services (ISS) 846 698
Value added taxes (VAT) 150 98
Total 243,320 183,350
Current 243,320 183,350
Non-current

Property, equipment, intangib_2

Property, equipment, intangible assets and lease (Tables)3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Summary of Property and Equipmenta) Changes in the period
Property and equipment Intangible assets
As of January 1, 2019 99,127 504,915
Additions 11,375 8,061
Write-offs (56 ) (56 )
Depreciation / amortization in the period (4,672 ) (7,055 )
As of March 31, 2019 105,774 505,865
Cost 146,865 626,921
Accumulated depreciation / amortization (41,092 ) (121,056 )
As of January 1, 2020 142,464 553,452
Additions 20,746 19,914
Write-offs (324 )

Transfers (2,083 ) 2,083
Depreciation / amortization in the period (6,255 ) (15,648 )
As of March 31, 2020 154,548 559,801
Cost 211,839 672,045
Accumulated depreciation / amortization (57,291 ) (112,244 )
(a) Property and equipment
Data Furniture Security Facilities Fixed Total
Balance as of January 1, 2017 9,679 8,677 459 8,789 1,061 28,665
Additions 6,308 6,309 5,650 9,915 2,187 30,369
Business combination (Note 5 (ii)) 804 412 34 478 1,728
Write-offs (149 ) (1,690 ) (9 ) (2,503 )
— (4,351 )
Transfers 709 2,181
— 358 (3,248 )

Depreciations in the year (3,608 ) (2,628 ) (1,227 ) (1,875 )
— (9,338 )
Balance as of December 31, 2017 13,743 13,261 4,907 15,162
— 47,073
Cost 27,400 19,124 6,403 19,281
— 72,208
Accumulated depreciation (13,657 ) (5,863 ) (1,496 ) (4,119 )
— (25,135 )
XP Inc. and its subsidiaries
Notes to consolidated financial statements
December 31, 2019, 2018 and 2017
(In thousands of Brazilian Reais, unless otherwise
stated)
[GRAPHIC]
Data Furniture Security Facilities Fixed Total
Balance as of January 1, 2018 13,743 13,261 4,907 15,162
— 47,073
Additions 22,319 10,448 376 9,930 40,076 83,149
Write-offs (40 ) (924 ) (30 ) (5,078 ) (553 ) (6,625 )
Transfers 31 2,109 192 37,191 (39,523 )

Depreciation in the year (7,282 ) (3,253 ) (2,892 ) (11,043 )
— (24,470 )
Balance as of December 31, 2018 28,771 21,641 2,553 46,162
— 99,127
Cost 48,023 29,613 6,388 47,843
— 131,867
Accumulated depreciation (19,252 ) (7,972 ) (3,835 ) (1,681 )
— (32,740 )
Balance as of January 1, 2019 28,771 21,641 2,553 46,162
— 99,127
Additions 15,039 9,942 664 22,315 24,539 72,499
Write-offs (304 ) (2,047 )
— (6,112 )
— (8,463 )
Transfers
— 2,409
— 22,130 (24,539 )

Depreciation in the year (9,059 ) (4,189 ) (1,673 ) (5,778 )
— (20,699 )
Balance as of December 31, 2019 34,447 27,756 1,544 78,717
— 142,464
Cost 62,235 38,086 7,716 84,726
— 192,763
Accumulated depreciation (27,788 ) (10,330 ) (6,172 ) (6,009 )
— (50,299 )
Summary of Right-of-use Assets and Lease Liabilitiesc) Leases
Set out below, are the carrying amounts of the Group’s
right-of-use
Right-of-use assets Lease liabilities
As of January 1, 2019 133,870 148,494
Depreciation expense (3,430 )

Interest expense
— 2,328
Effects of exchange rate (1,281 ) 134
Payment of lease liabilities
— (7,490 )
As of March 31, 2019 129,159 143,466
As of December 31, 2019 227,478 255,406
Additions (i) 19,273 19,361
Depreciation expense (9,623 )

Interest expense
— 6,145
Revaluation (ii) (19,968 ) (19,968 )
Impairment (3,040 )

Effects of exchange rate 22,016 23,561
Payment of lease liabilities
— (15,558 )
As of March 31, 2020 236,136 268,947
Current
— 56,581
Non-current 236,136 212,367
(i)
Additions to right-of-use
(ii)
Revaluation of discount rate that represent the
current market assessment.
d) Leases
Set out below, are the carrying amounts of the Group’s
right-of-use
Right-of-use assets Lease liabilities
As of January 1, 2019 133,870 148,494
Additions (i) 123,529 124,283
Depreciation expense (32,831 )

Interest expense
— 17,613
Effects of exchange rate 2,910 2,995
Payment of lease liabilities
— (37,979 )
As of December 31, 2019 227,478 255,406
Current
— 52,771
Non-current 227,478 202,635
(i) Additions to right-of-use
Summary of Intangible Assets(b) Intangible assets
Software Goodwill Costumer Trademarks Other Total
Balance as of January 1, 2017 16,871 90,999 9,179 1,799 4,422 123,270
Additions 12,243

— 33 8,351 20,627
Business combination (Note 5 ii)) 4,404 281,702 50,077 19,304 2,028 357,515
Write-offs (140 )



— (140 )
Transfers (799 )


— 799

Amortization in the year (6,879 )
— (9,286 ) (898 ) (1,002 ) (18,065 )
Balance as of December 31, 2017 25,700 372,701 49,970 20,238 14,598 483,207
Cost 35,489 372,701 72,072 21,230 18,753 520,245
Accumulated Amortization (9,789 )
— (22,102 ) (992 ) (4,155 ) (37,038 )
Balance as of January 1, 2018 25,700 372,701 49,970 20,238 14,598 483,207
Additions 27,828

— 1,009 24,680 53,517
Business combination
— 9,799


— 9,799
Write-offs (15 )


— (13,275 ) (13,290 )
Amortization in the year (14,742 )
— (8,426 ) (2,024 ) (3,126 ) (28,318 )
Balance as of December 31, 2018 38,771 382,500 41,544 19,223 22,877 504,915
Cost 56,127 382,500 72,072 22,239 31,308 564,246
Accumulated amortization (17,356 )
— (30,528 ) (3,016 ) (8,431 ) (59,331 )
Balance as of January 1, 2019 38,771 382,500 41,544 19,223 22,877 504,915
Additions 51,348
— 27,000
— 10,601 88,949
Write-offs (2,283 )

— (33 ) (466 ) (2,782 )
Amortization in the year (21,526 )
— (7,945 ) (2,702 ) (5,457 ) (37,630 )
Balance as of December 31, 2019 66,310 382,500 60,599 16,488 27,555 553,452
Cost 104,270 382,500 105,977 22,239 39,823 654,809
Accumulated amortization (37,960 )
— (45,378 ) (5,751 ) (12,268 ) (101,357 )

Borrowings and lease liabilit_2

Borrowings and lease liabilities (Tables)3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Summary of Detailed Information About BorrowingsInterest rate % Maturity March 31, December 31,
Bank borrowings—domestic (i) 113% of March 2021 42,124 52,668
Related parties 42,124 52,668
Financial institution (ii) CDI + April 2023 333,368 329,410
Third parties 333,368 329,410
Total borrowings 375,492 382,078
Lease liabilities 268,947 255,406
Total borrowings and lease liabilities 644,439 637,484
Current 405,498 116,450
Non-current 238,941 521,034
(*)
Brazilian Interbank Offering Rate (CDI)
(i)
Loan agreement with Itaú Unibanco with maturity
on March 8, 2021, payable in 36 monthly installments.
(ii)
Loan agreement entered into on March 28, 2018
with the International Finance Corporation (IFC). The principal
amount is due on the maturity date and accrued interests payable at
every six months.
Interest rate %
Maturity 2019 2018
Bank borrowings—domestic (i) 113% of CDI (*) March 2021 52,668 94,921
Related parties 52,668 94,921
Bank borrowings—domestic (ii)
111% of CDI (*) July 2019
— 44,352
Financial institution (iii) CDI (*) April 2023 329,410 330,336
Third parties 329,410 374,688
Total borrowings 382,078 469,609
Lease liabilities (Note 13.(d)) 255,406

Total borrowings and lease liabilities 637,484 469,609
Current 116,450 114,489
Non-current 521,034 355,120
(*)
Brazilian Interbank Offering Rate (CDI)
(i)
Loan agreement with Itaú Unibanco with maturity
on March 8, 2021, payable in 36 monthly installments.
(ii)
Loan agreement with Banco JP Morgan S.A., hired in
connection with the acquisition of Rico, payable in seven quarterly
installments. In July 2019, the loan was fully settled.
(iii)
Loan agreement entered into on March 28, 2018
with the International Finance Corporation (IFC). The principal
amount is due on the maturity date and accrued interests payable at
every six months.

Debentures (Tables)

Debentures (Tables)3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Summary of Detailed Information About Debentures IssuedIssuance Quantity Annual rate Issuance Maturity Unit value at Unit value at period-end Book
1st 400,000 108.0% CDI 9/28/2018 9/28/2020 R$ 1,000.00 R$ 1,093.87 438,010
2st 400,000 107.5% CDI 5/15/2019 5/15/2022 R$ 1,000.00 R$ 1,016.83 406,351
Total 800,000 844,361
Summary of Detailed Information on Debentures OutstandingMarch 31, December 31,
Principal 800,000 800,000
Interest 56,258 47,127
Payments (11,897 ) (11,897 )
Total 844,361 835,230
Current 444,361 435,230
Non-current 400,000 400,000
Summary of Detailed Information About Debentures IssuedIssuance Quantity (units) Annual rate Issuance date Maturity date Unit value at Unit value at period-end Book value
1st 400,000 108,0% CDI 9/28/2018 9/28/2020 R$ 1,000.00 R$ 1,082.01 433,262
2st 400,000 107,5% CDI 5/15/2019 5/15/2022 R$ 1,000.00 R$ 1,005.88 401,968
Total 800,000 835,230
Summary of Detailed Information on Debentures Outstanding2019 2018
Principal 800,000 400,000
Interest 47,127 6,538
Payments (11,897 )

Total 835,230 406,538
Current 435,230

Non-current 400,000 406,538

Private pension liabilities (Ta

Private pension liabilities (Tables)3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Summary Of Net Defined Benefit Liability (Asset)a) Changes in the period
Three months period
2020 2019
As of January 1 3,759,090 16,059
Contributions received 278,357 1,766
Transfer with third party plans 1,636,370 31,777
Redemptions paid (46,585 )

Gain (loss) from FIE (472,144 ) 324
As of March 31 5,155,088 49,926
Contributions invested in FIEs (Note 4 (a)) 5,155,088 49,926
Changes in the period
2019 2018
As of January 1 16,059

Contributions received 609,639 16,059
Transfer with third party plans 3,047,492

Withdraws (20,153 )

Interest received from FIE 106,053

As of December 31 3,759,090 16,059
Contributions invested in FIEs 3,759,090 16,059

Income tax (Tables)

Income tax (Tables)3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Summary Of Temporary Difference, Unused Tax Losses And Unused Tax CreditDeferred tax assets (DTA) and deferred tax liabilities (DTL) are
comprised of the main following components:
Balance Sheet Net change in the three
March 31, December 31, March 31, March 31, 2019
Tax losses carryforwards 39,298 17,146 22,152 (29,611 )
Goodwill on business combinations (i) 14,714 22,303 (7,589 ) (9,068 )
Provisions for IFAs’ commissions 64,669 68,041 (3,372 )

Revaluations of financial assets at fair value (26,370 ) 25,259 (51,629 ) (2,486 )
Expected credit losses 13,695 5,666 8,029 (75 )
Financial instruments taxed on redemption


— 9,852
Profit sharing plan 71,309 141,136 (69,828 ) 51,494
Net gain on hedge instruments 22,706 (36,384 ) 59,091 (1,080 )
Share based plan 14,187 2,950 11,237

Other provisions 47,304 33,284 14,019 776
Total 261,512 279,401 (17,890 ) 19,802
Deferred tax assets 261,512 284,533
Deferred tax liabilities
— (5,132 )
(i)
For tax purposes, goodwill is amortized over 5 years
on a straight-line basis when the entity acquired is sold or merged
into another entity.
Balance Sheet Net change in the year
2019 2018 2019 2018 2017
Tax losses carryforwards 17,146 55,358 (38,212 ) 37,774 17,584
Goodwill on business combinations (i) 22,303 59,993 (37,690 ) (56,789 ) (51,327 )
Provisions for IFAs’ commissions 68,041 31,031 37,010 4,744 26,156
Revaluations of financial assets at fair value 25,259 1,397 23,862 (2,427 ) 4,030
Expected credit losses 5,666 3,079 2,587 (2,345 ) 4,329
Financial instruments taxed on redemption
— (13,041 ) 13,041 (6,230 ) (6,811 )
Profit sharing plan 141,136
— 141,136


Net gain on hedge instruments (36,384 ) (1,441 ) (34,943 ) (51,423 ) 49,382
Share-base compensation 2,950
— 2,950
Other provisions 33,284 4,024 29,260 (2,572 ) 5,251
Total 279,401 140,400 139,001 (79,268 ) 48,594
Deferred tax assets 284,533 152,425
Deferred tax liabilities (5,132 ) (12,025 )
(i)
For tax purposes, goodwill is amortized over 5 years
on a straight-line basis when the entity acquired is sold or merged
into another entity.
Summary Of Reconciliation Of Changes In Deferred Tax Liability AssetThe changes in the net deferred tax were recognized as follows:
Three months period
2020 2019
As of January 1 279,401 140,400
Foreign exchange variations 21,055 (114 )
Charges to statement of income (47,072 ) 18,643
Tax relating to components of other comprehensive income 8,128 1,273
As of March 31 261,512 160,202
The changes in the net deferred tax were recognized as follows:
2019 2018 2017
At January 1 140,400 219,668 171,074
Foreign exchange variations (3,461 ) (9,259 ) (1,155 )
Business combination (Note 5 (ii))

— 3,751
Charges to statement of income 139,411 (76,455 ) 45,325
Tax relating to components of other comprehensive income 3,051 6,446 673
At December 31 279,401 140,400 219,668
Summary Of Income Tax CalculationThe following is a reconciliation of income tax expense to profit
(loss) for the year, calculated by applying the combined Brazilian
statutory rates at 34% for the period ended March 31:
Three months period
2020 2019
Income before taxes 516,531 303,227
Combined tax rate in Brazil (i) 34 % 34 %
Tax expense at the combined rate 175,620 103,097
Income (loss) from entities not subject to taxation (9,246 ) (48 )
Effects from entities taxed at different rates 14,287 6,505
Effects from entities taxed at different method (ii) (64,678 ) (4,968 )
Intercompany transactions with different taxation (9,156 ) (7,767 )
Tax incentives 605

Non deductible expenses (non-taxable 6,586 717
Others 4,959 (4,747 )
Total 118,977 92,789
Effective tax rate 23.03 % 30.60 %
Current 71,905 111,432
Deferred 47,072 (18,643 )
Total expense 118,977 92,789
(i)
Considering that XP Inc. is domiciled in Cayman and
there is no income tax in that jurisdiction, the combined tax rate
of 34% demonstrated above is the current rate applied to XP
Investimentos S.A. which is the holding company of all operating
entities of XP Inc. in Brazil.
(ii)
Certain eligible subsidiaries adopted the PPM tax
regime and the effect of the presumed profit of subsidiaries
represents the difference between the taxation based on this method
and the amount that would be due based on the statutory rate
applied to the taxable profit of the subsidiaries. Additionally,
some entities and investment funds adopt different taxation regimes
according to the applicable rules in their jurisdictions.
2019 2018 2017
Income before taxes 1,544,109 640,728 575,507
Combined tax rate in Brazil (a) 34,00 % 34,00 % 34,00 %
Tax expense at the combined rate 524,997 217,848 195,672
Income from entities not subject to taxation (9,551 ) (3,647 ) (5,101 )
Effects from entities taxed at different rates 25,948 16,444 9,078
Effects from entities taxed at different method (b) (24,089 ) (18,183 ) (25,971 )
Intercompany transactions with different taxation (50,138 ) (38,255 ) (30,264 )
Tax incentives (9,772 ) (1,408 ) (265 )
Non-deductible (non-taxable 10,888 (689 ) 175
Others (13,658 ) 3,288 8,642
Total 454,625 175,398 151,966
Effective tax rate 29,44 % 27,20 % 26,38 %
Current 594,037 98,943 197,291
Deferred (139,412 ) 76,455 (45,325 )
Total expense 454,625 175,398 151,966
(a)
Considering that XP Inc. is domiciled in Cayman and
there is no income tax in that jurisdiction, the combined tax rate
of 34% demonstrated above is the current rate applied to XP
Investimentos S.A. which is the holding company of all operanting
entities of XP Inc. in Brazil.
(b)
Certain eligible subsidiaries adopted the PPM tax
regime and the effect of the presumed profit of subsidiaries
represents the difference between the taxation based on this method
and the amount that would be due based on the statutory rate
applied to the taxable profit of the subsidiaries.
Summary Of Analysis Other Comprehensive Income By ItemThe tax (charge)/credit relating to components of other
comprehensive income is as follows:
Before tax (Charge) After tax
Foreign exchange variation of investees located abroad 1,325
— 1,325
Gains (losses) on net investment hedge (1,277 ) 434 (843 )
Changes in the fair value of financial assets at fair value (2,021 ) 838 (1,183 )
As of March 31, 2019 (1,973 ) 1,272 (701 )
Foreign exchange variation of investees located abroad 56,560
— 56,560
Gains (losses) on net investment hedge (85,600 ) 29,104 (56,496 )
Changes in the fair value of financial assets at fair value 52,467 (20,977 ) 31,490
As of March 31, 2020 23,427 8,127 31,554
The tax (charge)/credit relating to components of other
comprehensive income is as follows:
Before tax (Charge) / Credit After tax
Foreign exchange variation of investees located abroad 2,034
— 2,034
Gains (losses) on net investment hedge (3,124 ) 738 (2,386 )
Changes in the fair value of financial assets at fair value 275 (65 ) 210
As of December 31, 2017 (815 ) 673 (142 )
Foreign exchange variation of investees located abroad 18,645
— 18,645
Gains (losses) on net investment hedge (26,508 ) 9,013 (17,495 )
Changes in the fair value of financial assets at fair value 6,727 (2,567 ) 4,160
As of December 31, 2018 (1,136 ) 6,446 5,310
Foreign exchange variation of investees located abroad 6,823
— 6,823
Gains (losses) on net investment hedge (10,543 ) 3,410 (7,133 )
Changes in the fair value of financial assets at fair value 1,058 (360 ) 698
As of December 31, 2019 (2,662 ) 3,050 388

Related party transactions (Tab

Related party transactions (Tables)3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Summary of Transactions Between Related Parties ExplanatoryThe main transactions carried with related parties, under
commutative conditions, including interest rates, terms and
guarantees, and period-end
Assets/(Liabilities) Revenue/(Expenses)
Three months period ended
Relation and
transaction March 31, December 31, 2020 2019
Shareholders with significant influence (i) 175,859 (732,420 ) (26,039 ) (9,841 )
Securities 152,636 123,813 3,780 2,094
Securities purchased under agreements to resell 64,999 196,009 (30,087 )

Accounts receivable 348 594 797 61
Securities sold under repurchase agreements
— (1,000,168 )


Borrowings (42,124 ) (52,668 ) (529 ) (11,996 )
(i)
These transactions are related to Itaú Unibanco
who became shareholder of the Company in 2018 and since then a
related party.
The main transactions carried with related parties for year-end
Assets/(Liabilities) Revenue/(Expenses)
Relation and transaction 2019 2018 2019 2018 2017
Shareholders with significant influence (i) (732,420 ) (451,481 ) (49,779 ) (40,585 )

Securities 123,813 69,647 10,381 147,258

Securities purchased under agreements to resell 196,009
— 1,550


Accounts receivable 594
— 1,025


Securities sold under repurchase agreements (1,000,168 ) (426,207 ) (58,078 ) (3,586 )

Borrowings (52,668 ) (94,921 ) (4,657 ) (184,257 )

(i)
These transactions are related to Itaú Unibanco
who became shareholder of the Company in 2018 and since then a
related party. Therefore, transactions and balances with Itaú
Unibanco in 2017 are not being reported as transactions with
related parties.
Summary of Key Management Personnel Compensation ExpenseKey management includes executive statutory directors, members of
the Board of Directors and Executive Boards. The compensation paid
or payable to key management for their services is shown below:
2019 2018 2017
Fixed compensation 4,821 3,329 2,708
Variable compensation 22,060 30,316 18,316
Total 26,881 33,645 21,024

Provisions and contingent lia_2

Provisions and contingent liabilities (Tables)3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Summary Of Other ProvisionsMarch 31, December 31,
Tax contingencies 9,956 9,878
Civil contingencies 2,412 2,673
Labor contingencies 2,529 2,642
Total provision 14,897 15,193
Judicial deposits (i) 10,050 18,403
(i)
There are circumstances in which the Group is
questioning the legitimacy of certain litigations or claims filed
against it. As a result, either because of a judicial order or
based on the strategy adopted by management, the Group might be
required to secure part or the whole amount in question by means of
judicial deposits, without this being characterized as the
settlement of the liability. These amounts are classified as
“Other assets” on the consolidated balance sheets and
referred above for information.
2019 2018
Tax contingencies 9,878 9,392
Civil contingencies 2,673 5,610
Labor contingencies 2,642 2,472
Total provision 15,193 17,474
Judicial deposits (a) 18,403 14,850
(a)
There are circumstances in which the Group is
questioning the legitimacy of certain litigations or claims filed
against us. As a result, either because of a judicial order or
based on the strategy adopted by management, the Group might be
required to secure part or the whole amount in question by means of
judicial deposits, without this being characterized as the
settlement of the liability. These amounts are classified as
“Other assets” on the consolidated balance sheets, and
referred above for information.
Summary Of Changes In Other ProvisionsChanges in the provision during the three months period
Three months period
2020 2019
As of January 1 15,193 17,474
Monetary correction 325 336
Provisions accrued 159 11
Provisions reversed (546 ) —
Payments (234 ) (318 )
As of March 31 14,897 17,503
'Summary Of Contingent LiabilitiesBelow is summarized these possible claims by nature:
March 31, 2020 December 31, 2019
Tax (i) 69,963 69,386
Civil (ii) 89,419 81,414
Labor 4,600 3,151
Total 163,982 153,951
(i)
In December 2019, the Group was notified by tax
authorities for a requirement of social security contributions due
to employee profit sharing payments related to the calendar year
2015, allegedly in violation of Brazilian Law 10,101/00. Currently,
the case at administrative level in assessment by the
Administrative Council of Tax Appeals (“CARF”),
awaiting the decision on the Group’s appeal. There are other
favorable CARF precedents on the subject and the Group obtained
legal opinions that support the Group’s defense and current
practice.
(ii)
The Group is defendant in 456 civil claims by
customers and investment agents, mainly related to portfolio
management, risk rating, copyrights and contract termination. The
total amount represents the collective maximum value to which the
Group is exposed based on the claims’ amounts monetarily
restated.
Below is summarized these claims by nature:
2019 2018
Tax (i) 69,386 19,971
Civil (ii) 81,414 64,820
Labor 3,151 4,532
Total 153,951 89,323
(i)
In December 2019, the Group was notified by tax
authorities for a requirement of social security contributions due
to employee profit sharing payments related to the calendar year
2015, allegedly in violation of Brazilian Law 10,101/00. Currently,
the case at administrative level in assessment by the
Administrative Council of Tax Appeals (“CARF”),
awaiting the decision on the Group’s appeal. There are other
favorable CARF precedents on the subject and the Group obtained
legal opinions that support the Group’s defense and current
practice.
(ii)
The Group is defendant in 6 civil claims by customers
and investment agents, mainly related to portfolio management, risk
rating, copyrights and contract termination. The total amount
represents the collective maximum value to which the Group is
exposed based on the claims’ amounts monetarily restated.
Summary Of Changes In Other ProvisionsChanges in the provision during the year
2019 2018 2017
Balance at January 1 17,474 11,843 5,334
Monetary correction 2,492 1,667 2,226
Provision/(Reversal) (1,601 ) 7,897 3,531
Business combination (Note 5 (ii))

— 7,921
Payments (3,172 ) (3,933 ) (7,169 )
Balance at December 31 15,193 17,474 11,843

Total revenue and income (Table

Total revenue and income (Tables)3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Summary Of Disaggregation Of Revenue By Major Service LinesDisaggregation of revenue by major service lines are as
follows:
Three months period ended March 31,
2020 2019
Major service lines
Brokerage commission 504,644 288,819
Securities placement 348,174 160,391
Management fees 255,049 140,858
Insurance brokerage fee 29,226 18,548
Educational services 25,700 13,750
Other services 94,085 43,709
1,256,878 666,075
(-) Sales taxes and contributions on revenue (i) (104,932 ) (66,828 )
1,151,946 599,247
(i)
Mostly related to taxes on services (ISS) and
contributions on revenue (PIS and COFINS).
Summary Of Net Income From Financial Instrumentsb) Net income from financial instruments
Three months period ended March 31,
2020 2019
Net Income of financial instruments at fair value through profit or
loss 391,689 274,520
Net Income of financial instruments measured at amortized cost and
at fair value through other comprehensive income 207,299 65,822
(-) Taxes and contributions on financial income (16,093 ) (5,597 )
582,895 334,745
Summary Of Disaggregation By Geographic LocationBreakdown of total net revenue and income and selected assets by
geographic location:
Three months period ended March 31,
2020 2019
Brazil 1,634,093 863,587
United Stated of America 91,890 62,958
Europe 8,858 7,447
Total revenue and income 1,734,841 933,992
March 31, 2020 December 31, 2019
Brazil 1,162,433 1,208,737
United Stated of America 147,374 224,244
Europe 7,475 16,476
Selected assets (i) 1,317,282 1,449,457
(i)
Selected assets are total assets of the Group, less:
cash, financial assets and deferred tax assets and are presented by
geographic location.
Summary Of Disaggregation Of Revenue By Major Service Linesa) Net revenue from services rendered
Revenue from contracts with customers derives mostly from services
rendered and fees charged at daily transactions from customers,
therefore mostly recognized at a point in time. Disaggregation of
revenue by major service lines are as follows:
2019 2018 2017
Major service lines
Brokerage commission 1,288,135 861,068 639,615
Securities placement 1,154,786 631,949 401,402
Management fees 1,035,224 527,644 221,936
Insurance brokerage fee 106,438 56,713 29,167
Educational services 97,986 42,653 18,682
Other services 275,467 160,409 111,647
3,958,036 2,280,436 1,422,449
(-) Sales taxes and contributions on revenue (i) (362,264 ) (225,887 ) (138,833 )
3,595,772 2,054,549 1,283,616
(i)
Mostly related to taxes on services (ISS) and
contributions on revenue (PIS and COFINS).
Summary Of Net Income From Financial Instrumentsb) Net income from financial instruments
2019 2018 2017
Net Income of financial instruments at fair value through profit or
loss 1,360,207 821,617 562,895
Net Income of financial instruments measured at amortized cost and
at fair value through other comprehensive income 199,947 114,442 79,380
(-) Taxes and contributions on financial income (28,118 ) (32,155 ) (19,241 )
1,532,036 903,904 623,034
Summary Of Disaggregation By Geographic Locationc) Disaggregation by geographic location
2019 2018 2017
Brazil 4,790,236 2,716,459 1,751,419
United States 307,456 204,207 131,198
Europe 30,116 37,787 24,033
Total Revenue and Income 5,127,808 2,958,453 1,906,650
2019 2018
Brazil 1,208,737 881,434
United States 224,244 31,829
Europe 16,476 7,556
Selected assets (i) 1,449,457 920,819
(i)
Selected assets are Total assets of the Company, less:
financial assets and deferred tax assets and are presented by
geographic location.

Operating costs (Tables)

Operating costs (Tables)3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Summary Of Operating CostsThree months period
2020 2019
Commission costs 441,951 242,831
Operating losses and provisions 38,303 2,901
Other costs 98,562 62,024
Clearing house fees 63,504 34,513
Third parties’ services 18,148 19,579
Other 16,910 7,932
Total 578,816 307,756
2019 2018 2017
Commission costs 1,269,309 750,103 455,241
Operating losses and provisions 23,332 9,989 7,148
Other costs 313,419 181,154 117,491
Clearing house fees 201,083 96,896 71,419
Third parties’ services 76,669 53,124 28,953
Other 35,667 31,134 17,119
Total 1,606,060 941,246 579,880

Operating expenses by nature (T

Operating expenses by nature (Tables)3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Summary Of Operating Expense By NatureThree months period
2020 2019
Selling expenses 28,476 24,518
Advertising and publicity 28,476 24,518
Administrative expenses 578,116 368,285
Personnel expenses 400,980 255,844
Compensation 177,119 71,466
Employee profit-sharing and bonus 103,020 150,185
Executives profit-sharing 72,677 10,143
Benefits 17,549 10,834
Social charges 30,052 12,515
Other 563 701
Other taxes expenses 6,843 6,635
Depreciation of property and equipment and right-of-use 15,878 8,102
Amortization of intangible assets 15,648 7,055
Other administrative expenses 138,767 90,649
Data processing 55,947 33,328
Technical services 20,768 15,360
Third parties’ services 40,193 21,968
Rent expenses 3,390 6,318
Communication 4,499 3,454
Travel 5,699 3,674
Legal and judicial 677 414
Other 7,594 6,133
Total 606,592 392,803
2019 2018 2017
Selling expenses 155,115 96,075 32,881
Advertising and publicity 155,115 96,075 32,881
Administrative expenses 1,891,481 1,176,805 649,585
Personnel expenses 1,261,887 712,060 428,772
Compensation 408,394 221,746 134,535
Employee profit-sharing and bonus 645,992 356,938 217,982
Executives profit-sharing 67,547 50,656 28,802
Benefits 47,457 35,922 16,697
Social charges 88,960 45,115 28,836
Other 3,537 1,683 1,920
Other taxes expenses 39,691 43,945 20,749
Depreciation of property and equipment and right-of-use 53,530 26,278 9,338
Amortization of intangible assets 37,630 26,510 18,065
Other administrative expenses 498,743 368,012 172,661
Data processing 178,860 130,678 71,861
Technical services 85,782 76,476 26,985
Third parties’ services 145,730 63,333 19,006
Rent expenses 10,575 41,950 16,492
Communication 17,495 11,457 11,276
Travel 21,676 13,804 9,791
Legal and judicial 3,406 9,023 2,638
Other 35,219 21,291 14,612
Total 2,046,596 1,272,880 682,466

Other operating income (expen_2

Other operating income (expenses), net (Tables)3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Summary Of Other Operating Income NetThree months period
2020 2019
Other operating income 27,666 90,613
Recovery of charges and expenses 501 51,800
Reversal of operating provisions 704 4,392
Revenue from incentives from Tesouro Direto, B3 and others 21,672 8,855
Interest received on tax 2,281 22,931
Other 2,508 2,635
Other operating expenses (41,549 ) (5,437 )
Legal proceedings and agreement with customers (10,246 ) (437 )
Losses on write-off (59 ) (3 )
Fines and penalties (624 ) (730 )
Associations and regulatory fees (3,321 ) (839 )
Charity (16,596 ) (1,250 )
Other (10,703 ) (2,178 )
Total (13,883 ) 85,176
2019 2018 2017
Other operating income 208,245 20,682 23,764
Recovery of charges and expenses 53,453 6,873 3,165
Reversal of operating provisions 9,767 2,641 2,684
Revenue from incentives from Tesouro Direto and B3 101,615 9,931 4,226
Other 43,410 1,237 13,689
Other operating expenses (54,888 ) (51,971 ) (31,468 )
Legal proceedings and agreement with customers (9,499 ) (16,385 ) (18,370 )
Tax incentive expenses (10,265 ) (2,015 ) (2,980 )
Losses on write-off (7,060 ) (11,064 ) (1,503 )
Fines and penalties (1,191 ) (7,446 ) (2,755 )
Associations and regulatory fees (4,216 ) (3,059 ) (2,073 )
Charity (6,751 ) (5,938 ) (50 )
Other (15,906 ) (6,064 ) (3,737 )
Total 153,357 (31,289 ) (7,704 )

Earnings per share (basic and_2

Earnings per share (basic and diluted) (Tables)3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Summary of Earnings Per ShareThe following table reflects the net income and share data used in
the basic and diluted earnings per share (“EPS”)
calculations:
Three months period
2020 2019
Net income attributable to Parent company 396,860 209,215
Basic weighted average quantity of shares (a) 551,800 509,247
Basic earnings per share—R$ 0.7192 0.4108
Share-based incentive program (a) 4,096

Diluted weighted average quantity of shares 555,896 509,247
Diluted earnings per share—R$ 0.7139 0.4108
(a)
Thousands of shares.
2019 2018 2017
Net income 1,080,484 461,440 413,874
Basic weighted average quantity of shares (1) 511,462 493,117 484,919
Basic earnings per share 2,1125 0,9358 0,8535
Share-based incentive program (1)(2) 248


Diluted weighted average quantity of shares (1) 511,710 493,117 484,919
Diluted earnings per share 2,1115 0,9358 0,8535
(1)
Thousands of shares.
(2)
See Note 30.

Determination of fair value (Ta

Determination of fair value (Tables)3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Summary Of Fair Value Measurement Of Assets And LiabilitiesBelow are the Group financial assets and liabilities by level
within the fair value hierarchy. The Group assessment of the
significance of a particular input to the fair value measurement
requires judgment and may affect the valuation of fair value assets
and liabilities and their placement within the fair value hierarchy
levels:
March, 31 2020
Level 1 Level 2 Fair Value Book Value
Financial Assets
Financial assets at Fair value through profit or loss
Securities 22,640,753 2,450,970 25,091,723 25,091,723
Derivative financial instruments 1,215 8,513,577 8,514,793 8,514,793
Fair value through other comprehensive income
Securities 4,896,387
— 4,896,387 4,896,387
Evaluated at amortized cost
Securities
— 1,267,826 1,267,826 1,267,826
Securities purchased under agreements to resell
— 14,916,794 14,916,794 14,916,794
Securities trading and intermediation
— 1,015,785 1,015,785 1,015,785
Accounts receivable
— 424,702 424,702 424,702
Loan operations
— 63,589 63,589 63,589
Other financial assets
— 25,472 25,472 25,472
Financial liabilities
Fair value through profit or loss
Securities loaned 721,131
— 721,131 721,131
Derivative financial instruments
— 7,526,075 7,526,075 7,526,075
Evaluated at amortized cost
Securities sold under repurchase agreements
— 21,111,301 21,111,301 21,111,301
Securities trading and intermediation
— 13,333,539 13,333,539 13,333,539
Borrowings and lease liabilities
— 644,184 644,184 644,439
Debentures
— 832,810 832,810 844,361
Accounts payables
— 265,197 265,197 265,197
Structured operations certificates
— 150,461 150,461 150,461
Other financial liabilities
— 31,485 31,485 31,485
December 31, 2019
Level 1 Level 2 Fair Value Book Value
Financial Assets
Financial assets at Fair value through profit or loss
Securities 20,277,031 2,166,361 22,443,392 22,443,392
Derivative financial instruments 21,809 4,063,195 4,085,004 4,085,004
Fair value through other comprehensive income
Securities 2,616,118
— 2,616,118 2,616,118
Evaluated at amortized cost
Securities
— 3,914,923 3,914,923 2,266,971
Securities purchased under agreements to resell
— 9,490,090 9,490,090 9,490,090
Securities trading and intermediation
— 504,983 504,983 504,983
Accounts receivable
— 462,029 462,029 462,029
Loan operations
— 386 386 386
Other financial assets
— 19,805 19,805 19,805
Financial liabilities
Fair value through profit or loss
Securities loaned 2,021,707
— 2,021,707 2,021,707
Derivative financial instruments
— 3,229,236 3,229,236 3,229,236
Evaluated at amortized cost
Securities sold under repurchase agreements
— 15,638,407 15,638,407 15,638,407
Securities trading and intermediation
— 9,114,546 9,114,546 9,114,546
Borrowings and lease liabilities
— 633,781 633,781 637,484
Debentures
— 836,001 836,001 835,230
Accounts payables
— 266,813 266,813 266,813
Structured operations certificates
— 19,474 19,474 19,474
Other financial liabilities
— 79,127 79,127 79,157
Summary Of Fair Value Measurement Of Assets And Liabilities2019
Level 1 Level 2 Fair Value Book Value
Financial Assets
Financial assets at Fair value through profit or loss
Securities 20,277,031 2,166,361 22,443,392 22,443,392
Derivative financial instruments 21,809 4,063,195 4,085,004 4,085,004
Fair value through other comprehensive income
Securities 2,616,118
— 2,616,118 2,616,118
Evaluated at amortized cost
Securities
— 3,914,923 3,914,923 2,266,971
Securities purchased under agreements to resell
— 9,490,090 9,490,090 9,490,090
Securities trading and intermediation
— 504,983 504,983 504,983
Accounts receivable
— 462,029 462,029 462,029
Other financial assets
— 20,191 20,191 20,191
Financial liabilities
Fair value through profit or loss
Securities loaned 2,021,707
— 2,021,707 2,021,707
Derivative financial instruments
— 3,229,236 3,229,236 3,229,236
Evaluated at amortized cost
Securities sold under repurchase agreements
— 15,638,407 15,638,407 15,638,407
Securities trading and intermediation
— 9,114,546 9,114,546 9,114,546
Borrowings and lease liabilities
— 633,781 633,781 637,484
Debentures
— 836,001 836,001 835,230
Accounts payables
— 266,813 266,813 266,813
Other financial liabilities
— 98,601 98,601 98,631
2018
Level 1 Level 2 Fair Value Book Value
Financial Assets
Financial assets at Fair value through profit or loss
Securities 5,259,591 1,031,380 6,290,971 6,290,971
Derivative financial instruments 6,599 1,685,432 1,692,031 1,692,031
Fair value through other comprehensive income
Securities 695,778
— 695,778 695,778
Evaluated at amortized cost
Securities
— 153,709 153,709 155,292
Securities purchased under agreements to resell
— 6,568,246 6,568,246 6,570,609
Securities trading and intermediation
— 898,312 898,312 898,312
Accounts receivable
— 219,200 219,200 219,200
Other financial assets
— 60,423 60,423 60,423
Financial liabilities
Fair value through profit or loss
Securities loaned 1,259,579
— 1,259,579 1,259,579
Derivative financial instruments
— 991,399 991,399 991,399
Evaluated at amortized cost
Securities sold under repurchase agreements
— 6,792,316 6,792,316 6,640,694
Securities trading and intermediation
— 5,306,628 5,306,628 5,306,628
Borrowings
— 459,487 459,487 469,609
Debentures
— 406,540 406,540 406,538
Accounts payables
— 134,579 134,579 134,579
Other financial liabilities
— 7,011 7,011 7,011

Capital Management (Tables)

Capital Management (Tables)3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Summary Of Net Debt And Corresponding Gearing RatiosThe net debt and corresponding gearing ratios as of March 31,
2020 and December 31, 2019 were as follows:
March 31, 2020 December 31,
Borrowings and lease liabilities 644,439 637,484
Debentures 844,361 835,230
Total debt 1,488,800 1,472,714
Cash (249,950 ) (109,922 )
Securities purchased under agreements to resell (309,053 ) (654,057 )
Certificate deposits (Securities) (152,200 ) (123,817 )
Net debt 777,597 584,918
Total equity 7,604,939 7,153,396
Total capital 8,382,533 7,738,313
Gearing ratio % 9.28 % 7.56 %
The net debt and corresponding gearing ratios at December 31,
2019 and 2018 were as follows:
2019 2018
Borrowings and lease liabilities 637,484 469,609
Debentures 835,230 406,538
Total debt 1,472,714 876,147
Cash (109,922 ) (68,407 )
Securities purchased under agreements to resell (654,057 ) (488,809 )
Certificate deposits (Securities) (123,817 ) (69,647 )
Net debt 584,918 249,284
Total equity 7,153,396 2,084,777
Total capital 7,738,313 2,334,061
Gearing ratio % 7,56 % 10,68 %

Cash flow information (Tables)

Cash flow information (Tables)3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Text Block [Abstract]
Schedule Of Debt Reconciliationa) Debt reconciliation
Borrowings lease Debentures Total
Total debt as of January 1, 2019 469,609 148,494 406,538 1,024,641
Payments (24,786 ) (7,490 )
— (32,276 )
Net foreign exchange differences
— 134
— 134
Interest accrued 7,585 2,328 6,649 16,562
Interest paid (3,141 )

— (3,141 )
Total debt as of March 31, 2019 449,267 143,466 413,187 1,005,920
Total debt as of January 1, 2020 382,078 255,406 835,230 1,472,714
Acquisitions / Issuance
— 19,361
— 19,361
Payments (10,500 ) (15,558 )
— (26,058 )
Revaluation
— (19,968 )
— (19,968 )
Net foreign exchange differences
— 23,561
— 23,561
Interest accrued 4,486 6,145 9,131 19,762
Interest paid (572 )

— (572 )
Total debt as of March 31, 2020 375,492 268,947 844,361 1,488,800
(i) Debt reconciliation
Borrowings Lease Debentures Total
Total debt as of January 1, 2017




Acquisitions / Issuance 826,000

— 826,000
Net foreign exchange differences 35,116

— 35,116
Interest accrued 5,908

— 5,908
Total debt as of January 1, 2018 867,024

— 867,024
Acquisitions / Issuance 325,370
— 400,000 725,370
Payments (689,634 )

— (689,634 )
Net foreign exchange differences (35,091 )

— (35,091 )
Interest accrued 56,125
— 6,538 62,663
Interest paid (54,185 )

— (54,185 )
Total debt as of December 31, 2018 469,609
— 406,538 876,147
Change in accounting policy (Note 3.xxi)
— 148,494
— 148,494
Total debt as of January 1, 2019 469,609 148,494 406,538 1,024,641
Acquisitions / Issuance
— 124,196 400,000 524,196
Payments (85,353 ) (37,979 ) (11,815 ) (135,147 )
Net foreign exchange differences
— 3,085
— 3,085
Interest accrued 26,250 17,610 40,507 84,367
Interest paid (28,428 )

— (28,428 )
Total debt as of December 31, 2019 382,078 255,406 835,230 1,472,714

Summary of significant accoun_2

Summary of significant accounting policies (Tables)12 Months Ended
Dec. 31, 2019
Text Block [Abstract]
Summary of Adoption of IFRS 16 On Lease LiabilitiesOn adoption of IFRS 16, the Group recognized lease liabilities in
relation to leases which had previously been classified as
‘operating leases’ under the principles of IAS 17 These
liabilities were measured at the present value of the remaining
lease payments, discounted using the lessee’s incremental
borrowing rate as of January 1, 2019. The weighted average
lessee’s incremental borrowing rate applied to the lease
liabilities on January 1, 2019 was 9.0%.
Operating lease commitments disclosed as of December 31,
2018 209,318
Discounted using the incremental borrowing rate of at the date of
initial application (60,099 )
(Less): short-term leases recognized on a straight-line basis as
expense (725 )
Lease liability recognized as of January 1, 2019 148,494
Summary of Right-Of-Use Assets Related to Property and Equipment LeasesThe associated right-of-use
Lease liability recognized as of January 1, 2019 148,494
(Less): accrued lease payments as of December 31, 2018 (14,624 )
Total right-of-use 133,870
Represented by:
Properties 123,262
Equipments 10,608
Summary of Depreciation of Property and EquipmentDepreciation is calculated on a straight-line basis over the
estimated useful lives of the assets, as follows:
Annual Rate (%)
Data Processing Systems 20 %
Furniture and equipment 10 %
Security systems 10 %
Facilities 10 %
Summary of Useful Lives of the Intangible AssetsThe amortization of intangible assets with definite lives is
recognized in profit or loss in the expense category consistent
with the use of intangible assets. The useful lives of the
intangible assets are shown below:
Estimate useful life (years)
Software 3-5
Internally developed intangible 3-7
Customer list 2-8
Trademarks 10-20

Group structure (Tables)

Group structure (Tables)12 Months Ended
Dec. 31, 2019
Text Block [Abstract]
Summary of Direct and Indirect Interests of Company in Its SubsidiariesThe following are the direct and indirect interests of Company in
its subsidiaries for the purposes of these consolidated financial
statements:
% of Group’s interest
(i)
Entity name Country of Principal activities 2019 2018 2017
Directly controlled
XP Investimentos S.A. Brazil Holding 100.00 % 100.00 % 100.00 %
Indirectly controlled
XP Investimentos Corretora de Câmbio, Títulos e Valores
Mobiliários S.A. Brazil Broker-dealer 100.00 % 100.00 % 100.00 %
XP Investments US, LLC USA Broker-dealer 100.00 % 100.00 % 100.00 %
XP Investments UK LLP UK Inter-dealer broker 100.00 % 100.00 % 99.90 %
Sartus Capital LTD UK Investment advisor 100.00 % 100.00 % 100.00 %
XP Private (Europe) S.A. UK Investment advisor 100.00 % 100.00 % 100.00 %
\
XP Vida e Previdência S.A. (v) Brazil Private pension and insurance 100.00 % 100.00 %

Banco XP S.A. (vi) Brazil Multipurpose bank 100.00 %


Xperience Market Services LLC (vi) USA Non-operational 100.00 %


Chamaleon Bravery Unipessoal LDA (vi) Portugal Investment Advisor (pending 100.00 %


XP Holding Investimentos S.A. Brazil Financial Holding

— 100.00 %
XP Controle 3 Participações S.A. Brazil Financial Holding 100.00 % 100.00 % 100.00 %
XPE Infomoney Educação Assessoria Empresarial e
Participações Ltda. Brazil Digital Content services 99.99 % 99.70 % 96.69 %
Tecfinance Informática e Projetos de Sistemas Ltda. Brazil Rendering of IT services 99.76 % 99.73 % 99.73 %
XP Corretora de Seguros Ltda. Brazil Insurance Broker 99.99 % 99.82 % 99.81 %
XP Gestão de Recursos Ltda. Brazil Asset management 93.70 % 92.80 % 91.65 %
XP Finanças Assessoria Financeira Ltda. Brazil Investment consulting service 99.99 % 99.99 % 99.95 %
Infostocks Informações e Sistemas Ltda. Brazil Mediation of information 99.99 % 99.99 % 99.99 %
XP Advisory Gestão Recursos Ltda. Brazil Asset management 99.57 % 99.52 % 99.52 %
XDEX Intermediação Ltda. (iii) Brazil Intermediary and service agency

— 99.99 %
XP Holding International LLC USA International financial holding 100.00 % 100.00 % 100.00 %
XP Advisory US USA Investment advisor 100.00 % 100.00 % 100.00 %
XP Holding UK Ltd UK International financial holding 100.00 % 100.00 % 100.00 %
XP Vista Asset Management Ltda. (iv) Brazil Asset management 99.42 % 99.60 %

XP Controle 4 Participações S.A. (v) Brazil Insurance holding 100.00 % 100.00 %

Leadr Serviços Online Ltda. (vi) Brazil Social media 99.99 %


Spiti Análise Ltda. (vi) Brazil Research (pending regulatory 99.99 %


Consolidated investments funds
Falx Fundo de Investimento Multimercado Crédito Privado
Investimento no Exterior Brazil Investment fund 100.00 % 100.00 % 100.00 %
Gladius Fundo de Investimento Multimercado Investimento no
Exterior Brazil Investment fund 100.00 % 100.00 % 100.00 %
Scorpio Debentures Incentivadas Fundo de Investimento Multimercado
Crédito Privado Brazil Investment fund 100.00 % 100.00 % 100.00 %
Galea Fundo de Investimento Multimercado Crédito Privado
Investimento no Exterior Brazil Investment fund 100.00 % 100.00 % 100.00 %
Javelin Fundo de Investimento Multimercado Crédito Privado
Investimento no Exterior Brazil Investment fund 100.00 % 100.00 % 100.00 %
Spatha Fundo de Investimento Multimercado Crédito Privado
Investimento no Exterior Brazil Investment fund 100.00 % 100.00 %

Frade Fundo de Investimento em Cotas de Fundos de Investimento em
Direitos Creditórios NP Brazil Investment fund 100.00 % 100.00 %

Frade III Fundo de Investimento em Cotas de Fundo de Investimento
Multimercado Crédito Privado (vi) Brazil Investment fund 100.00 %


Balista Debentures Incentivadas Fundo de Investimento Multimercado
Crédito Privado (vi) Brazil Investment fund 100.00 %


Coliseu Fundo de Investimento Multimercado Crédito Privado
Investimento no Exterior (vi) Brazil Investment fund 100.00 %


XP Short Brasil Alavancado Fundo de Investimento Multimercado
Investimento no Exterior (vii) Brazil Investment fund

— 100.00 %
XP Pacote Brasil Alavancado Fundo de Investimento Multimercado
Investimento no Exterior (vii) Brazil Investment fund

— 100.00 %
(i)
The percentage of participation represents the
Group’s interest in total capital and voting capital of its
subsidiaries.
(ii)
Subsidiaries legally merged into their respective
immediate parent, with no impact on the consolidated financial
statements.
(iii)
Relates to subsidiary incorporated in 2017 sold to
Company’s controlling shareholders in 2018 at its early
stages.
(iv)
Subsidiary acquired in 2018. See further details in
Note 5 (ii) below.
(v)
Subsidiaries incorporated in 2018 for operating in the
private pension and life insurance business, which is regulated by
the Superintendency of Private Insurance (SUSEP) in Brazil.
(vi)
New subsidiaries and investment funds incorporated in
the year.
(vii)
Investment funds closed during the year.
Summary of the Net Assets Acquired, the GoodwillDetails of the net assets acquired, the goodwill and the purchase
consideration are as follows:
Fair value
Assets
Cash 96
Financial instruments (FVPL) 356,648
Financial instruments (FVOCI) 20,212
Accounts receivable 1,915
Other assets 11,582
Deferred tax assets 3,751
Property and equipment (Note 13 (a)) 1,728
Intangible assets (Note 13 (b)) 75,813
471,745
Liabilities
Social and statutory obligations (560 )
Tax and social security obligations (12,651 )
Securities trading and intermediation (322,371 )
Provisions and continget liabilities (Note 25) (7,921 )
Other liabilities (5,217 )
(348,720 )
Total identifiable net assets at fair value 123,025
Goodwill arising on acquisition (Note 13 (b)) 281,702
Purchase consideration transferred 404,727
Analysis of cash flows on acquisition
Consideration paid in cash 404,727
Net cash acquired with the subsidiary (96 )
Net of cash flow on acquisition (investing activities) 404,631
Summary of Intangible Assets AcquiredFor the purchase price allocation, the following intangible assets
were identified. The valuation techniques used for measuring the
fair value of separately identified intangible assets acquired were
as follows:
Assets Amount
Method Expected
Customer list 50,077 Multi-period excess earning method 8 years
Trademark 19,304 Relief from royalty 10 years
Technology 2,028 Relief from royalty 3 years

Accounts receivable (Tables)

Accounts receivable (Tables)12 Months Ended
Dec. 31, 2019
Text Block [Abstract]
Summary of Accounts receivable2019 2018
Customers (a) 458,776 203,604
Dividends and interest receivable on equity capital—Funds 7,052 18,852
Other 702 181
(-) Expected losses on accounts receivable (4,501 ) (3,437 )
Total 462,029 219,200
(a)
Refers to receivables from management fee arising from
the distribution of funds and amounts receivable related to service
provision, which have an average term of 30 days. There is no
concentration on the balances receivable as of December 31,
2019 and 2018.

Prepaid expenses (Tables)

Prepaid expenses (Tables)12 Months Ended
Dec. 31, 2019
Text Block [Abstract]
Summary of Prepaid Expenses2019 2018
Incentives for business acceleration program 11,349 22,125
Marketing expenses 9,678 41,276
Commissions and premiums paid in advance 49,233 21,431
Services paid in advance 2,043 5,180
Other expenses paid in advance 17,381 6,711
Total 89,684 96,723
Current 56,605 56,302
Non-current 33,079 40,421

Securities sold under repurch_2

Securities sold under repurchase agreements (Tables)12 Months Ended
Dec. 31, 2019
Text Block [Abstract]
Summary of Securities Sold under Repurchase Agreements2019 2018
National Treasury Notes (NTNs) 8,533,113 1,153,547
National Treasury Bills (LTNs) 5,653,994 5,142,881
Financial Treasury Bills (LFTs) 1,451,300 344,266
Total 15,638,407 6,640,694

Other financial liabilities (Ta

Other financial liabilities (Tables)12 Months Ended
Dec. 31, 2019
Text Block [Abstract]
Summary of Other Financial Liabilities2019 2018
Customer deposits (a) 70,191

Structured operations certificates (b) 19,474

Foreign exchange portfolio 8,962 7,011
Other financial liabilities 4

Total 98,631 7,011
Current 79,157 7,011
Non-current 19,474

(a)
Mainly related to the financial resources of XP Vida e
Previdência participant which is in process to be
invested.
(b)
Related to structured operations certificates of Banco
XP.

Social and Statutory obligati_2

Social and Statutory obligations (Tables)3 Months Ended
Mar. 31, 2020
Text Block [Abstract]
Summary Of Social And Statutory Obligations2019 2018
Obligations to non-controlling 35,666 27,137
Employee profit-sharing (a) 395,568 173,202
Salaries and other benefits payable 61,489 51,351
Total 492,723 251,690
(a)
The Group has a bonus scheme for its employees based
on profit sharing program as agreed under collective bargaining,
which does not extend to the Executive Board. The bonus is
calculated at each half of the year and payments made in the
February and August.

Tax and social security oblig_2

Tax and social security obligations (Tables)12 Months Ended
Dec. 31, 2019
Text Block [Abstract]
Summary Of Tax And Social Security Obligations2019 2018
Income Tax (IRPJ and CSLL) (a) 264,258 69,001
Contributions over revenue (PIS and COFINS) 34,247 16,368
Taxes on services (ISS) 18,141 9,399
Contributions for Social Security (INSS) 7,712 3,368
Others 20,973 4,985
Total 345,331 103,121
Current 345,331 103,121
Non-current


(a)
The Group income tax liability is presented net of tax
assets which the entities are allowed to offset during current
year. The line includes current Corporate Income Tax (CIT)
liability of R$ 594,037 (R$ 98,943—2018) and Prepayments CIT
of R$ 361,771 (R$ 58,139—2018). The line also includes taxes
that XP is responsible to pay on behalf of its clients (i.e.,
withholding taxes over client’s investments) in the amount of
R$ 31,992 (R$ 28,197—2018).

Equity (Tables)

Equity (Tables)12 Months Ended
Dec. 31, 2019
Text Block [Abstract]
Summary Of Issuances And Conversions Of SharesBelow is a summary of the issuances and conversions of shares
during 2019, 2018 and 2017, after giving effect to the share split
mentioned before:
Class A (prior Class B (prior Total Shares
As of January 1, 2017 325,011,655 159,906,862 484,918,517
Transfer of classes (49,011,642 ) 49,011,642

As of December 31, 2017 276,000,013 208,918,504 484,918,517
Issued for cash
— 24,328,617 24,328,617
Transfer of classes (20,867,198 ) 20,867,198

As of December 31, 2018 255,132,815 254,114,319 509,247,134
Corporate reorganization 30,807,911 (30,807,911 )

Transfer of classes 25,687,428 (25,687,428 )

Initial public offering 42,553,192
— 42,553,192
As of December 31, 2019 354,181,346 197,618,980 551,800,326
Summary Of Dividends DistributionThe proposal and payment of dividends recorded in the
Company’s financial statements, subject to the approval of
the shareholders in General Meetings, is detailed below:
2019 2018 2017
Net income 1,089,485 465,330 423,541
Total dividends 500,000 200,000 314,998
At January 1
— 125,000

Amount recognized in the year 500,000 200,000 314,998
Dividends paid in the year (500,000 ) (325,000 ) (189,998 )
At December 31

— 125,000

Management of financial risks_2

Management of financial risks and financial instruments (Tables)12 Months Ended
Dec. 31, 2019
Text Block [Abstract]
Summary Of Financial Assets Representing The Maximum Exposure To Credit RiskThe carrying amount of the financial assets representing the
maximum exposure to credit risk is shown in the table below:
2019 2018
Financial assets
Securities purchased under agreements to resell 9,490,090 6,570,609
Securities 27,326,481 7,142,041
Public securities 20,381,125 4,704,604
Private securities 6,945,356 2,437,437
Derivative financial instruments 4,085,004 1,692,031
Securities trading and intermediation 504,983 898,312
Accounts receivable 462,029 219,200
Other financial assets 20,191 60,423
Total 41,888,778 16,582,616
Summary Of Financial Liabilities Into Groupings Based On Their Contractual MaturitiesThe tables below summarizes the Group’s financial liabilities
into groupings based on their contractual maturities:
2019
Liabilities Up to From 2 to From 3 to From 1 to Above Contractual
Securities loaned 2,021,707



— 2,021,707
Derivative financial instruments 1,557,088 211,882 685,566 732,286 42,414 3,229,236
Securities sold under repurchase agreements 15,638,407



— 15,638,407
Securities trading and intermediation 9,114,546



— 9,114,546
Borrowings and lease liabilities 8,239 26,258 81,953 521,034
— 637,484
Debentures

— 435,230 400,000
— 835,230
Accounts payables 266,813



— 266,813
Other financial liabilities 79,157


— 19,474 98,631
Total 28,685,957 238,140 1,167,519 1,688,550 61,888 31,842,054
2018
Liabilities Up to From 2 to 3 months From 3 to From 1 to 5 years Above Contractual
Securities loaned 770,270 478,741 10,568

— 1,259,579
Derivative financial instruments 152,971 182 242,506 560,798 34,942 991,399
Securities sold under repurchase agreements 68,738 5,439,405 1,132,551

— 6,640,694
Securities trading and intermediation 5,306,628



— 5,306,628
Borrowings and lease liabilities 19,032 22,752 72,705 355,120
— 469,609
Debentures


— 406,538
— 406,538
Accounts payables 134,579



— 134,579
Other financial liabilities 7,011



— 7,011
Total 6,459,229 5,941,080 1,458,330 1,322,456 34,942 15,216,037
Summary Of Sensitivity Analysis2019
Trading portfolio
Exposures Scenarios
Risk factors
Risk of variation in: I II III
Pre-fixed Pre-fixed (907 ) (163,057 ) (445,866 )
Exchange coupons Foreign currencies coupon rate (67 ) 570 (854 )
Foreign currencies Exchange rates (2,102 ) (1,493 ) 43,908
Price indexes Inflation coupon rates (63 ) (782 ) (301 )
Shares Shares prices (442 ) (8,780 ) (57,390 )
(3,581 ) (173,542 ) (460,503 )
2018
Trading portfolio
Exposures Scenarios
Risk factors
Risk of variation in: I II III
Pre-fixed Pre-fixed (559 ) (11,441 ) (22,881 )
Exchange coupons Foreign currencies coupon rate (9 ) (5,764 ) (11,529 )
Foreign currencies Exchange rates (386 ) (978 ) (5,027 )
Price indexes Inflation coupon rates (16 ) (798 ) (1,597 )
Shares Shares prices 877 (6,584 ) 4,873
(93 ) (25,565 ) (36,161 )

Operations - Additional Informa

Operations - Additional Information (Detail) $ / shares in Units, R$ in Thousands, $ in ThousandsDec. 13, 2019BRL (R$)sharesDec. 13, 2019USD ($)$ / sharessharesNov. 30, 2019sharesDec. 31, 2019BRL (R$)sharesMar. 31, 2020sharesDec. 01, 2019shares
Disclosure of classes of share capital [line items]
Percentage of ownership held by holding company64.61%64.61%
Reverse share split ratio4:1
Issued capital before share split2,036,988,542
Issued capital after share split509,247,136
Number of shares issued new shares42,553,192
Equity transaction cost | R$R$ 22824
Class A Common Share [Member]
Disclosure of classes of share capital [line items]
Number of shares issued72,510,641 2,000,000,000 2,000,000,000 257,456,251,558
Number of shares issued new shares42,553,192 42,553,192 42,553,192
Number of shares issued existing shares29,957,449 29,957,449
Shares issued to underwriters10,876,596 10,876,596
Aggregate number of shares issued in public offering83,387,237 83,387,237
Shares issued price per share | $ / shares $ 27
Gross proceeds from shares issuedR$ 4705803 $ 1,148,936
Underwriting discounts and commissions | R$200,977
Other offering expenses | R$44,726
Equity issuance costs recognized in income statement | R$21,902
Equity transaction cost | R$R$ 22824

Basis of preparation of the f_4

Basis of preparation of the financial statements and changes to the Group's accounting policies - Summary of direct and indirect interests of Company (Detail) - XP PE Gesto de Recursos Ltda [member]3 Months Ended
Mar. 31, 2020Mar. 30, 2020
Disclosure of associates [line items]
Country of incorporationBrazil
Principal activitiesPrivate equity asset management
% of Group's interest99.10%

Securities purchased (sold) u_3

Securities purchased (sold) under resale (repurchase) agreements - Summary of securities purchased under agreements to resell (Detail) - BRL (R$) R$ in ThousandsMar. 31, 2020Dec. 31, 2019Mar. 31, 2019Dec. 31, 2018Dec. 31, 2017
Summary of securities purchased under agreements to resell [Line Items]
Securities purchased under agreements to resellR$ 309053R$ 654057R$ 133028R$ 488809R$ 420958
Available portfolio [member]
Summary of securities purchased under agreements to resell [Line Items]
Securities purchased under agreements to resell3,294,442 971,991 488,809
Available portfolio [member] | National treasury notes [member]
Summary of securities purchased under agreements to resell [Line Items]
Securities purchased under agreements to resell3,221,176 771,099 65,136
Available portfolio [member] | Financial Treasury Bills [member]
Summary of securities purchased under agreements to resell [Line Items]
Securities purchased under agreements to resell195,980 38,014
Available portfolio [member] | National Treasury Bills [member]
Summary of securities purchased under agreements to resell [Line Items]
Securities purchased under agreements to resell73,266 4,912 385,659
Collateral held [member]
Summary of securities purchased under agreements to resell [Line Items]
Securities purchased under agreements to resell11,622,352 8,518,099 6,081,800
Collateral held [member] | National treasury notes [member]
Summary of securities purchased under agreements to resell [Line Items]
Securities purchased under agreements to resell11,328,565 6,753,689 1,170,165
Collateral held [member] | National Treasury Bills [member]
Summary of securities purchased under agreements to resell [Line Items]
Securities purchased under agreements to resell293,787 1,764,410 4,911,635
Securities purchased under agreements to resell [member]
Summary of securities purchased under agreements to resell [Line Items]
Securities purchased under agreements to resellR$ 14916794R$ 9490090R$ 6570609

Securities purchased (sold) u_4

Securities purchased (sold) under resale (repurchase) agreements - Additional Information (Detail) - BRL (R$) R$ in ThousandsMar. 31, 2020Dec. 31, 2019Mar. 31, 2019Dec. 31, 2018Dec. 31, 2017
Summary of securities purchased under agreements to resell [Abstract]
Investments in purchase and sale commitments, interest rate3.68%4.63%6.43%
Securities purchased under agreements to reselR$ 309053R$ 654057R$ 133028R$ 488809R$ 420958
Securities sold under repurchase agreements, interest rate364.00%448.00%640.00%

Securities purchased (sold) u_5

Securities purchased (sold) under resale (repurchase) agreements - Summary of Securities sold under repurchase agreements (Detail) - BRL (R$) R$ in ThousandsMar. 31, 2020Dec. 31, 2019Dec. 31, 2018
Disclosure of Detailed Information on Securities Sold under Repurchase Agreements [Line Items]
Financial Liabilities at Amortised Cost Securities Sold Under Repurchase AgreementsR$ 21111301R$ 15638407R$ 6640694
National treasury notes [member]
Disclosure of Detailed Information on Securities Sold under Repurchase Agreements [Line Items]
Financial Liabilities at Amortised Cost Securities Sold Under Repurchase Agreements16,829,549 8,533,113 1,153,547
National Treasury Bills [member]
Disclosure of Detailed Information on Securities Sold under Repurchase Agreements [Line Items]
Financial Liabilities at Amortised Cost Securities Sold Under Repurchase Agreements3,057,813 5,653,994 5,142,881
Financial Treasury Bills [member]
Disclosure of Detailed Information on Securities Sold under Repurchase Agreements [Line Items]
Financial Liabilities at Amortised Cost Securities Sold Under Repurchase Agreements1,220,908 R$ 1451300R$ 344266
Agribusiness Receivables Certificates [member]
Disclosure of Detailed Information on Securities Sold under Repurchase Agreements [Line Items]
Financial Liabilities at Amortised Cost Securities Sold Under Repurchase AgreementsR$ 3031

Securities - Summary of securit

Securities - Summary of securities classified at fair value through profit and loss and at fair value through other comprehensive income (Detail) - BRL (R$) R$ in ThousandsMar. 31, 2020Dec. 31, 2019Dec. 31, 2018
Disclosure of financial assets [line items]
Financial assets At fair value through profit or lossR$ 33606516R$ 26528396R$ 7983002
Financial assets at fair value through other comprehensive income4,896,387 2,616,118 695,778
Cost [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss24,911,824 22,332,936 6,262,735
Financial assets at fair value through other comprehensive income4,836,127 2,608,325 688,731
Cost [member] | Agribusiness Receivables Certificates [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss532,281 598,085 85,668
Cost [member] | Bank deposit certificates [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss270,022 244,071 172,451
Cost [member] | Brazilian Government Bonds [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss15,461,665 15,404,300 3,826,902
Cost [member] | Certificate of Real Estate Receivable [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss211,458 75,922 208,442
Cost [member] | Debentures [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss1,017,997 885,344 325,459
Cost [member] | Financial credit bills [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss83,762 98,068 45,040
Cost [member] | Investment funds [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss4,525,734 3,047,198 279,013
Cost [member] | Others [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss333,089 178,589 167,714
Cost [member] | Real Estate Credit Bill [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss1,367 1,282 3,697
Cost [member] | Structured Transaction Certificate [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss305,188 237,112 21,275
Cost [member] | Stocks issued by public-held company [Member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss312,547 1,562,965 1,127,074
Cost [member] | National treasury bill [Member]
Disclosure of financial assets [line items]
Financial assets at fair value through other comprehensive income4,836,127 2,608,325 688,731
Cost [member] | USA Government Bonds [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss1,856,714
Fair value [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss25,091,723 22,443,392 6,290,971
Financial assets at fair value through other comprehensive income4,896,387 2,616,118 695,778
Fair value [member] | Agribusiness Receivables Certificates [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss515,994 589,525 85,874
Fair value [member] | Bank deposit certificates [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss272,972 246,827 171,725
Fair value [member] | Brazilian Government Bonds [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss15,669,359 15,494,046 3,853,534
Fair value [member] | Certificate of Real Estate Receivable [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss205,546 75,123 207,167
Fair value [member] | Debentures [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss973,503 885,068 326,403
Fair value [member] | Financial credit bills [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss82,765 106,759 44,663
Fair value [member] | Investment funds [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss4,525,734 3,047,198 279,013
Fair value [member] | Others [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss342,656 178,200 167,716
Fair value [member] | Real Estate Credit Bill [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss1,392 1,300 4,883
Fair value [member] | Structured Transaction Certificate [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss332,039 256,381 22,949
Fair value [member] | Stocks issued by public-held company [Member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or loss312,547 1,562,965 1,127,044
Fair value [member] | National treasury bill [Member]
Disclosure of financial assets [line items]
Financial assets at fair value through other comprehensive income4,896,387 R$ 2616118R$ 695778
Fair value [member] | USA Government Bonds [member]
Disclosure of financial assets [line items]
Financial assets At fair value through profit or lossR$ 1857216

Securities - Summary of secur_2

Securities - Summary of securities classified at fair value through profit and loss and at fair value through other comprehensive income (Parenthetical) (Detail) - BRL (R$) R$ in ThousandsMar. 31, 2020Dec. 31, 2019Mar. 31, 2019Dec. 31, 2018Dec. 31, 2017
Disclosure of financial assets [abstract]
Short-term deposits, classified as cash equivalentsR$ 152200R$ 123817R$ 142446R$ 69647R$ 261317

Securities - Summary of secur_3

Securities - Summary of securities evaluated at amortized cost (Detail) - BRL (R$) R$ in ThousandsMar. 31, 2020Dec. 31, 2019Dec. 31, 2018
Disclosure of financial assets [line items]
BondsR$ 1267826R$ 2266971R$ 155292
Cost [member]
Disclosure of financial assets [line items]
BondsR$ 1267826R$ 2266971R$ 155292

Securities - Summary of secur_4

Securities - Summary of securities on the financial liabilities classified at fair value through profit or loss (Detail) - BRL (R$) R$ in ThousandsMar. 31, 2020Dec. 31, 2019Dec. 31, 2018
Disclosure of offsetting of financial liabilities [line items]
Securities loanedR$ 721131R$ 2021707R$ 1259579
Cost [member]
Disclosure of offsetting of financial liabilities [line items]
Securities loanedR$ 721131R$ 2021707R$ 1259579

Securities - Summary of secur_5

Securities - Summary of securities classified by maturity (Detail) - BRL (R$) R$ in ThousandsMar. 31, 2020Dec. 31, 2019Dec. 31, 2018
Disclosure of offsetting of financial liabilities [line items]
Financial assetsR$ 56217071R$ 41888778R$ 16582616
Financial liabilities44,627,989 31,842,054 15,216,037
Financial Assets At Fair Value Through Profit Or Loss And Other Comprehensive Income Category [member]
Disclosure of offsetting of financial liabilities [line items]
Current financial assets8,417,190 9,804,819 1,875,374
Non-current financial assets21,570,920 15,254,691 5,111,375
Current financial liabilities721,131 2,021,707 1,192,877
Non-current financial liabilities66,702
Financial assets at amortised cost, category [member]
Disclosure of offsetting of financial liabilities [line items]
Current financial assets1,267,826 2,266,971 155,292
Non Stated Maturity [member] | Financial Assets At Fair Value Through Profit Or Loss And Other Comprehensive Income Category [member]
Disclosure of offsetting of financial liabilities [line items]
Current financial assets5,405,233 4,999,333 1,425,401
Current financial liabilities721,131 2,021,707
Non Stated Maturity [member] | Financial assets at amortised cost, category [member]
Disclosure of offsetting of financial liabilities [line items]
Current financial assets807,218
Not later than three months [member] | Financial Assets At Fair Value Through Profit Or Loss And Other Comprehensive Income Category [member]
Disclosure of offsetting of financial liabilities [line items]
Current financial assets1,814,839 257,544 192,208
Current financial liabilities1,184,972
Not later than three months [member] | Financial assets at amortised cost, category [member]
Disclosure of offsetting of financial liabilities [line items]
Current financial assets423,837 807,218
From 3 to 12 months [member]
Disclosure of offsetting of financial liabilities [line items]
Financial liabilities1,167,519 1,458,330
From 3 to 12 months [member] | Financial Assets At Fair Value Through Profit Or Loss And Other Comprehensive Income Category [member]
Disclosure of offsetting of financial liabilities [line items]
Current financial assets1,197,118 4,547,942 257,765
Current financial liabilities7,905
From 3 to 12 months [member] | Financial assets at amortised cost, category [member]
Disclosure of offsetting of financial liabilities [line items]
Current financial assets843,989 1,459,753 155,292
Later than one year [member] | Financial Assets At Fair Value Through Profit Or Loss And Other Comprehensive Income Category [member]
Disclosure of offsetting of financial liabilities [line items]
Non-current financial assets21,570,920 15,254,691 5,111,375
Non-current financial liabilities66,702
Fair value [member]
Disclosure of offsetting of financial liabilities [line items]
Financial assets31,255,936 27,326,481 7,142,041
Financial liabilitiesR$ 721131R$ 2021707R$ 1259579

Derivative financial instrume_3

Derivative financial instruments - Summary of the Derivative financial instruments portfolio (assets and liabilities) by type of instrument (Detail) - BRL (R$) R$ in ThousandsMar. 31, 2020Dec. 31, 2019Dec. 31, 2018
Disclosure of detailed information about financial instruments [line items]
Derivative financial assets, notional amountR$ 385135262R$ 520217621R$ 88689738
Derivative financial liabilities, notional amount446,351,074 492,067,822 86,580,121
Derivative financial assets8,514,793 4,085,004 1,692,031
Derivative financial liabilitiesR$ 7526075R$ 3229236R$ 991399
Percentage of derivative financial assets100.00%100.00%100.00%
Percentage of derivative financial liabilities100.00%100.00%100.00%
Not later than three months [member]
Disclosure of detailed information about financial instruments [line items]
Derivative financial assetsR$ 3551625R$ 2028463R$ 628432
Derivative financial liabilities2,513,265 1,763,063 153,152
From 3 to 12 months [member]
Disclosure of detailed information about financial instruments [line items]
Derivative financial assets2,498,360 1,306,020 471,882
Derivative financial liabilities2,441,147 678,405 242,506
Later than one year [member]
Disclosure of detailed information about financial instruments [line items]
Derivative financial assets2,464,808 750,521 591,717
Derivative financial liabilities2,571,663 787,768 595,741
Swap contract [member]
Disclosure of detailed information about financial instruments [line items]
Derivative financial assets, notional amount3,864,467 3,955,473 3,454,728
Derivative financial liabilities, notional amount2,915,357 3,420,857 3,981,304
Derivative financial assets789,707 1,133,768 244,262
Derivative financial liabilitiesR$ 425108R$ 485164R$ 247732
Percentage of derivative financial assets8.00%27.00%14.00%
Percentage of derivative financial liabilities6.00%14.00%25.00%
Swap contract [member] | Not later than three months [member]
Disclosure of detailed information about financial instruments [line items]
Derivative financial assetsR$ 392631R$ 10418R$ 4675
Derivative financial liabilities22,309 15,838 7,710
Swap contract [member] | From 3 to 12 months [member]
Disclosure of detailed information about financial instruments [line items]
Derivative financial assets11,953 700,668 25,054
Derivative financial liabilities13,866 40,687 25,094
Swap contract [member] | Later than one year [member]
Disclosure of detailed information about financial instruments [line items]
Derivative financial assets385,123 422,682 214,533
Derivative financial liabilities388,933 428,639 214,928
Forward contract [member]
Disclosure of detailed information about financial instruments [line items]
Derivative financial assets, notional amount707,973 1,857,542 809,202
Derivative financial liabilities, notional amount4,223,982 164,209 19,142
Derivative financial assets567,259 187,392 573,963
Derivative financial liabilitiesR$ 631912R$ 2480R$ 17170
Percentage of derivative financial assets7.00%5.00%34.00%
Percentage of derivative financial liabilities8.00%1.00%2.00%
Forward contract [member] | Not later than three months [member]
Disclosure of detailed information about financial instruments [line items]
Derivative financial assetsR$ 545521R$ 159163R$ 363863
Derivative financial liabilities558,697 1,693 16,972
Forward contract [member] | From 3 to 12 months [member]
Disclosure of detailed information about financial instruments [line items]
Derivative financial assets3,679 28,175 210,100
Derivative financial liabilities73,152 325 25
Forward contract [member] | Later than one year [member]
Disclosure of detailed information about financial instruments [line items]
Derivative financial assets18,059 54
Derivative financial liabilities63 462 173
Futures contract [member]
Disclosure of detailed information about financial instruments [line items]
Derivative financial assets, notional amount6,201 15,920,584 5,679,425
Derivative financial assetsR$ 1216R$ 21809R$ 6599
Percentage of derivative financial assets1.00%1.00%1.00%
Futures contract [member] | Not later than three months [member]
Disclosure of detailed information about financial instruments [line items]
Derivative financial assetsR$ 1216R$ 21809R$ 4613
Futures contract [member] | From 3 to 12 months [member]
Disclosure of detailed information about financial instruments [line items]
Derivative financial assets1,986
Option contract [member]
Disclosure of detailed information about financial instruments [line items]
Derivative financial assets, notional amount380,556,621 498,484,022 78,746,383
Derivative financial liabilities, notional amount439,211,735 488,482,756 82,579,675
Derivative financial assets7,156,611 2,742,035 867,207
Derivative financial liabilitiesR$ 6469055R$ 2741592R$ 726497
Percentage of derivative financial assets84.00%67.00%51.00%
Percentage of derivative financial liabilities86.00%85.00%73.00%
Option contract [member] | Not later than three months [member]
Disclosure of detailed information about financial instruments [line items]
Derivative financial assetsR$ 2612257R$ 1837073R$ 255281
Derivative financial liabilities1,932,259 1,745,532 128,470
Option contract [member] | From 3 to 12 months [member]
Disclosure of detailed information about financial instruments [line items]
Derivative financial assets2,482,728 577,177 234,742
Derivative financial liabilities2,354,129 637,393 217,387
Option contract [member] | Later than one year [member]
Disclosure of detailed information about financial instruments [line items]
Derivative financial assets2,061,626 327,785 377,184
Derivative financial liabilitiesR$ 2182667R$ 358667R$ 380640

Hedge accounting - Summary of d

Hedge accounting - Summary of detailed information about hedging instruments (Detail) pure in Thousands, R$ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2020BRL (R$)Dec. 31, 2019BRL (R$)Dec. 31, 2018BRL (R$)Dec. 31, 2017BRL (R$)
Disclosure of detailed information about hedging instruments [line items]
Hedged item, Book value of assetsR$ 228563R$ 186412R$ 147179R$ 100323
Hedged item, Book value of liabilities0 0 0 0
Hedged item, Variation in value recognized in Other comprehensive incomeR$ 52428R$ 5946R$ 18645R$ 2034
Hedge instrument, Nominal amount385,484 248,896 225,901 145,552
Hedge instrument, Variation in the amounts used to calculate hedge ineffectivenessR$ 56496R$ 7133R$ 17495R$ 2386
Hedge of net investment in foreign operations [member]
Disclosure of detailed information about hedging instruments [line items]
Hedged item, Book value of assets228,563 186,412 147,179 100,323
Hedged item, Book value of liabilities0 0 0 0
Hedged item, Variation in value recognized in Other comprehensive incomeR$ 52428R$ 5946R$ 18645R$ 2034
Hedge instrument, Nominal amount385,484 248,896 225,901 145,552
Hedge instrument, Variation in the amounts used to calculate hedge ineffectivenessR$ 56496R$ 7133R$ 17495R$ 2386

Accounts Receivable - Summary o

Accounts Receivable - Summary of Accounts receivable (Detail) - BRL (R$) R$ in ThousandsMar. 31, 2020Dec. 31, 2019Dec. 31, 2018
Trade and other receivables [abstract]
Cash and settlement recordsR$ 49R$ 13823R$ 164322
Debtors pending settlement956,760 477,646 731,611
Other58,976 13,514 2,379
Total Assets1,015,785 504,983 898,312
Cash and settlement records557,632 474,759 90,056
Creditors pending settlement12,775,907 8,639,787 5,216,572
Total LiabilitiesR$ 133335399,114,546 5,306,628
Customers458,776 203,604
Dividends and interest receivable on equity capital-Funds7,052 18,852
Other702 181
(-) Expected losses on accounts receivable(4,501)(3,437)
TotalR$ 462029R$ 219200

Property, Equipment, Intangib_3

Property, Equipment, Intangible Assets And Leases - Summary of Property and Equipment (Detail) - BRL (R$) R$ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2020Mar. 31, 2019Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balanceR$ 142464R$ 99127R$ 99127R$ 47073R$ 28665
Additions20,746 11,375 72,499 83,149 30,369
Business combination1,728
Write-offs(324)(56)(8,463)(6,625)(4,351)
Transfers(2,083)
Depreciation / amortization(6,255)(4,672)(20,699)(24,470)(9,338)
Ending balance154,548 105,774 142,464 99,127 47,073
Cost [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance192,763 131,867 131,867 72,208
Ending balance211,839 146,865 192,763 131,867 72,208
Accumulated impairment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance(50,299)(32,740)(32,740)(25,135)
Ending balance(57,291)(41,092)(50,299)(32,740)(25,135)
Data Processing Systems [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance34,447 28,771 28,771 13,743 9,679
Additions15,039 22,319 6,308
Business combination804
Write-offs(304)(40)(149)
Transfers31 709
Depreciation / amortization(9,059)(7,282)(3,608)
Ending balance34,447 28,771 13,743
Data Processing Systems [member] | Cost [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance62,235 48,023 48,023 27,400
Ending balance62,235 48,023 27,400
Data Processing Systems [member] | Accumulated impairment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance(27,788)(19,252)(19,252)(13,657)
Ending balance(27,788)(19,252)(13,657)
Furniture and equipment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance27,756 21,641 21,641 13,261 8,677
Additions9,942 10,448 6,309
Business combination412
Write-offs(2,047)(924)(1,690)
Transfers2,409 2,109 2,181
Depreciation / amortization(4,189)(3,253)(2,628)
Ending balance27,756 21,641 13,261
Furniture and equipment [member] | Cost [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance38,086 29,613 29,613 19,124
Ending balance38,086 29,613 19,124
Furniture and equipment [member] | Accumulated impairment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance(10,330)(7,972)(7,972)(5,863)
Ending balance(10,330)(7,972)(5,863)
Security Systems [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance1,544 2,553 2,553 4,907 459
Additions664 376 5,650
Business combination34
Write-offs(30)(9)
Transfers192
Depreciation / amortization(1,673)(2,892)(1,227)
Ending balance1,544 2,553 4,907
Security Systems [member] | Cost [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance7,716 6,388 6,388 6,403
Ending balance7,716 6,388 6,403
Security Systems [member] | Accumulated impairment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance(6,172)(3,835)(3,835)(1,496)
Ending balance(6,172)(3,835)(1,496)
Facilities [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance78,717 46,162 46,162 15,162 8,789
Additions22,315 9,930 9,915
Business combination478
Write-offs(6,112)(5,078)(2,503)
Transfers22,130 37,191 358
Depreciation / amortization(5,778)(11,043)(1,875)
Ending balance78,717 46,162 15,162
Facilities [member] | Cost [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance84,726 47,843 47,843 19,281
Ending balance84,726 47,843 19,281
Facilities [member] | Accumulated impairment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balanceR$ 6009R$ 1681(1,681)(4,119)
Ending balance(6,009)(1,681)(4,119)
Construction in progress [member]
Disclosure of detailed information about property, plant and equipment [line items]
Beginning balance1,061
Additions24,539 40,076 2,187
Write-offs(553)
TransfersR$ 24539R$ 39523R$ 3248

Property, Equipment, Intangib_4

Property, Equipment, Intangible Assets And Leases - Summary of Intangible Assets (Detail) - BRL (R$) R$ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2020Mar. 31, 2019Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangible assets and goodwillR$ 553452R$ 504915R$ 553452R$ 504915R$ 483207
Beginning balance553,452 504,915 504,915 483,207 123,270
Additions19,914 8,061 88,949 53,517 20,627
Business combination9,799 357,515
Write-offs(56)(2,782)(13,290)(140)
Transfers2,083
Depreciation / amortization(15,648)(7,055)(37,630)(28,318)(18,065)
Ending balance559,801 505,865 553,452 504,915 483,207
Cost [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangible assets and goodwill654,809 564,246 654,809 564,246 520,245
Beginning balance654,809 564,246 564,246 520,245
Ending balance672,045 626,921 654,809 564,246 520,245
Accumulated impairment [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangible assets and goodwill(101,357)(59,331)(101,357)(59,331)(37,038)
Beginning balance(101,357)(59,331)(59,331)(37,038)
Ending balance(112,244)(121,056)(101,357)(59,331)(37,038)
Software [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangible assets and goodwill66,310 38,771 66,310 38,771 25,700
Beginning balance66,310 38,771 38,771 25,700 16,871
Additions51,348 27,828 12,243
Business combination4,404
Write-offs(2,283)(15)(140)
Transfers(799)
Depreciation / amortization(21,526)(14,742)(6,879)
Ending balance66,310 38,771 25,700
Software [member] | Cost [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangible assets and goodwill104,270 56,127 104,270 56,127 35,489
Beginning balance104,270 56,127 56,127 35,489
Ending balance104,270 56,127 35,489
Software [member] | Accumulated impairment [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangible assets and goodwill(37,960)(17,356)(37,960)(17,356)(9,789)
Beginning balance(37,960)(17,356)(17,356)(9,789)
Ending balance(37,960)(17,356)(9,789)
Goodwill [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangible assets and goodwill382,500 382,500 382,500 382,500 372,701
Beginning balance382,500 382,500 382,500 372,701 90,999
Business combination9,799 281,702
Ending balance382,500 382,500 372,701
Goodwill [member] | Cost [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangible assets and goodwill382,500 382,500 382,500 382,500 372,701
Beginning balance382,500 382,500 382,500 372,701
Ending balance382,500 382,500 372,701
Customer list [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangible assets and goodwill60,599 41,544 60,599 41,544 49,970
Beginning balance60,599 41,544 41,544 49,970 9,179
Additions27,000
Business combination50,077
Depreciation / amortization(7,945)(8,426)(9,286)
Ending balance60,599 41,544 49,970
Customer list [member] | Cost [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangible assets and goodwill105,977 72,072 105,977 72,072 72,072
Beginning balance105,977 72,072 72,072 72,072
Ending balance105,977 72,072 72,072
Customer list [member] | Accumulated impairment [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangible assets and goodwill(45,378)(30,528)(45,378)(30,528)(22,102)
Beginning balance(45,378)(30,528)(30,528)(22,102)
Ending balance(45,378)(30,528)(22,102)
Trademarks [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangible assets and goodwill16,488 19,223 16,488 19,223 20,238
Beginning balance16,488 19,223 19,223 20,238 1,799
Additions1,009 33
Business combination19,304
Write-offs(33)
Depreciation / amortization(2,702)(2,024)(898)
Ending balance16,488 19,223 20,238
Trademarks [member] | Cost [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangible assets and goodwill22,239 22,239 22,239 22,239 21,230
Beginning balance22,239 22,239 22,239 21,230
Ending balance22,239 22,239 21,230
Trademarks [member] | Accumulated impairment [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangible assets and goodwill(5,751)(3,016)(5,751)(3,016)(992)
Beginning balance(5,751)(3,016)(3,016)(992)
Ending balance(5,751)(3,016)(992)
Other intangible assets [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangible assets and goodwill27,555 22,877 27,555 22,877 14,598
Beginning balance27,555 22,877 22,877 14,598 4,422
Additions10,601 24,680 8,351
Business combination2,028
Write-offs(466)(13,275)
Transfers799
Depreciation / amortization(5,457)(3,126)(1,002)
Ending balance27,555 22,877 14,598
Other intangible assets [member] | Cost [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangible assets and goodwill39,823 31,308 39,823 31,308 18,753
Beginning balance39,823 31,308 31,308 18,753
Ending balance39,823 31,308 18,753
Other intangible assets [member] | Accumulated impairment [member]
Disclosure of reconciliation of changes in intangible assets and goodwill [line items]
Intangible assets and goodwill(12,268)(8,431)(12,268)(8,431)(4,155)
Beginning balanceR$ 12268R$ 8431(8,431)(4,155)
Ending balanceR$ 12268R$ 8431R$ 4155

Property, Equipment, Intangib_5

Property, Equipment, Intangible Assets And Leases - Summary of Right-of-use Assets and Lease Liabilities (Detail) - BRL (R$) R$ in ThousandsJan. 01, 2019Mar. 31, 2020Mar. 31, 2019Dec. 31, 2019
Disclosure of quantitative information about right-of-use assets [abstract]
Right-of-use-assets, Beginning balanceR$ 133870R$ 227478R$ 133870R$ 133870
Additions to right-of-use assets19,273 123,529
Depreciation, right-of-use assets(9,623)(3,430)(32,831)
Revaluation right-of-use assets(19,968)
Impairment right-of-use assets(3,040)
Right of Use Assets Effects of Exchange Rate22,016 (1,281)2,910
Right-of-use-assets, Ending balance133,870 236,136 129,159 227,478
Right of Use Assets Current0 0
Right of Use Assets Noncurrent236,136 227,478
Lease liabilities, Beginning balance148,494 255,406 148,494 148,494
Additions To Lease Liabilities19,361 124,283
Interest expense on lease liabilities6,145 2,328 17,613
Revaluation lease Liabilities(19,968)
Effects Of Exchange Rate on Lease Liabilities23,561 134 2,995
Payment of lease liabilities(14,624)(15,558)(7,490)(37,979)
Lease liabilities, Ending balanceR$ 148494268,947 R$ 143466255,406
Current lease liabilities56,581 52,771
Non-current lease liabilitiesR$ 212367R$ 202635

Property, Equipment, Intangib_6

Property, Equipment, Intangible Assets And Leases - Additional Information (Detail) R$ in Thousands12 Months Ended
Dec. 31, 2019BRL (R$)
Disclosure of detailed information about property, plant and equipment [abstract]
Rent expense from short-term leases and low-value assetsR$ 1746
Rent expense on lease liabilitiesR$ 9225
Average pre-tax discount rate applied to cash flow projections1322.00%

Borrowings And Lease Liabilit_3

Borrowings And Lease Liabilities - Summary of Detailed Information About Borrowings (Detail) - BRL (R$) R$ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019Mar. 31, 2019Jan. 01, 2019Dec. 31, 2018
Disclosure of detailed information about borrowings [line items]
BorrowingsR$ 375492R$ 382078R$ 469609
Lease liabilities268,947 255,406 R$ 143466R$ 148494148,494
Total borrowings and lease liabilities644,439 637,484 469,609
Borrowings and Lease Liabilities Current405,498 116,450 114,489
Borrowings and Lease Liabilities Noncurrent238,941 521,034 355,120
Related parties [member]
Disclosure of detailed information about borrowings [line items]
BorrowingsR$ 42124R$ 5266894,921
Related parties [member] | Bank Borrowings Domestic [Member]
Disclosure of detailed information about borrowings [line items]
Interest rate113.00%113.00%
MaturityMarch 2021March 2021
BorrowingsR$ 42124R$ 5266894,921
Third parties [member]
Disclosure of detailed information about borrowings [line items]
BorrowingsR$ 333368R$ 329410374,688
Third parties [member] | Bank Borrowings Domestic [Member]
Disclosure of detailed information about borrowings [line items]
Interest rate111.00%
MaturityJuly 2019
Borrowings44,352
Third parties [member] | Financial Institution Borrowings [Member]
Disclosure of detailed information about borrowings [line items]
Interest rate0.774%774.00%
MaturityApril 2023April 2023
BorrowingsR$ 333368R$ 329410R$ 330336

Borrowings And Lease Liabilit_4

Borrowings And Lease Liabilities - Additional Information (Detail) - Ita Unibanco [Member]3 Months Ended12 Months Ended
Mar. 31, 2020Dec. 31, 2019
Disclosure of detailed information about borrowings [line items]
MaturityMarch 8, 2021March 8, 2021
Borrowings Term36 months36 months

Debentures - Additional Informa

Debentures - Additional Information (Detail) - BRL (R$) R$ in ThousandsMar. 31, 2020Dec. 31, 2019May 15, 2019Dec. 31, 2018Sep. 28, 2018
Disclosure of detailed information about borrowings [abstract]
Debentures issuedR$ 800000R$ 800000R$ 800000R$ 400000R$ 800000

Debentures - Summary of Detaile

Debentures - Summary of Detailed Information About Debentures Issued (Detail)3 Months Ended12 Months Ended
Mar. 31, 2020BRL (R$)UnitDec. 31, 2019BRL (R$)UnitDec. 31, 2018BRL (R$)
Disclosure of detailed information about borrowings [line items]
Quantity | Unit800,000 800,000
Book valueR$ 844361000R$ 835230000R$ 406538000
Debenture One [member]
Disclosure of detailed information about borrowings [line items]
Quantity | Unit400,000 400,000
Annual rate108.00%1080.00%
Issuance date9/28/20189/28/2018
Maturity date9/28/20209/28/2020
Unit value at issuanceR$ 1000.00R$ 1000.00
it value at period-end1,093.871,082.01
Book valueR$ 438010000R$ 433262000
Debenture Two [member]
Disclosure of detailed information about borrowings [line items]
Quantity | Unit400,000 400,000
Annual rate107.50%1075.00%
Issuance date5/15/20195/15/2019
Maturity date5/15/20225/15/2022
Unit value at issuanceR$ 1000.00R$ 1000.00
it value at period-end1,016.831,005.88
Book valueR$ 406351000R$ 401968000

Debentures - Summary of Detai_2

Debentures - Summary of Detailed Information on Debentures Outstanding (Detail) - BRL (R$) R$ in ThousandsMar. 31, 2020Dec. 31, 2019May 15, 2019Dec. 31, 2018Sep. 28, 2018
Borrowing costs [abstract]
PrincipalR$ 800000R$ 800000R$ 800000R$ 400000R$ 800000
Interest56,258 47,127 6,538
Payments(11,897)(11,897)
Total844,361 835,230 406,538
Current444,361 435,230
Non-currentR$ 400000R$ 400000R$ 406538

Private Pension Liabilities - S

Private Pension Liabilities - Summary Of Net Defined Benefit Liability (Asset) (Detail) - BRL (R$) R$ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2020Mar. 31, 2019Dec. 31, 2019Dec. 31, 2018
Disclosure of defined benefit plans [abstract]
Beginning balanceR$ 3759090R$ 16059R$ 16059
Contributions received278,357 1,766 609,639 R$ 16059
Transfer with third party plans1,636,370 31,777 3,047,492
Redemptions paid(46,585)(20,153)
Gain (loss) from FIE(472,144)324
Interest received from FIE106,053
Ending Balance5,155,088 49,926 3,759,090 16,059
Contributions invested in FIEsR$ 5155088R$ 49926R$ 3759090R$ 16059

Income Tax - Summary Of Tempora

Income Tax - Summary Of Temporary Difference, Unused Tax Losses And Unused Tax Credits (Detail) - BRL (R$) R$ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2020Mar. 31, 2019Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017Dec. 31, 2016
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liability (asset)R$ 261512R$ 160202R$ 279401R$ 140400R$ 219668R$ 171074
Deferred tax expense (income)(17,890)19,802 139,001 (79,268)48,594
Deferred tax assets261,512 284,533 152,425
Deferred tax liabilities(5,132)(12,025)
Tax Losses Carry forwards [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liability (asset)39,298 17,146 55,358
Deferred tax expense (income)22,152 (29,611)(38,212)37,774 17,584
Goodwill on Business Combinations [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liability (asset)14,714 22,303 59,993
Deferred tax expense (income)(7,589)(9,068)(37,690)(56,789)(51,327)
Provisions for IFAs Commissions [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liability (asset)64,669 68,041 31,031
Deferred tax expense (income)(3,372)37,010 4,744 26,156
Revaluations of Financial Assets at Fair Value [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liability (asset)(26,370)25,259 1,397
Deferred tax expense (income)(51,629)(2,486)23,862 (2,427)4,030
Expected Credit Losses [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liability (asset)13,695 5,666 3,079
Deferred tax expense (income)8,029 (75)2,587 (2,345)4,329
Financial Instruments Taxed on Redemption [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liability (asset)(13,041)
Deferred tax expense (income)9,852 13,041 (6,230)(6,811)
Profit Sharing Plan [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liability (asset)71,309 141,136
Deferred tax expense (income)(69,828)51,494 141,136
Net Gain on Hedge Instruments [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liability (asset)22,706 (36,384)(1,441)
Deferred tax expense (income)59,091 (1,080)(34,943)(51,423)49,382
ShareBase Compensation [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liability (asset)14,187 2,950
Deferred tax expense (income)11,237 2,950
Other provisions [member]
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax liability (asset)47,304 33,284 4,024
Deferred tax expense (income)R$ 14019R$ 776R$ 29260R$ 2572R$ 5251

Income Tax - Summary Of Reconci

Income Tax - Summary Of Reconciliation Of Changes In Deferred Tax Liability Asset (Detail) - BRL (R$) R$ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2020Mar. 31, 2019Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Disclosure of temporary difference, unused tax losses and unused tax credits [abstract]
Beginning balanceR$ 279401R$ 140400R$ 140400R$ 219668R$ 171074
Foreign exchange variations21,055 (114)(3,461)(9,259)(1,155)
Business combination3,751
Charges to statement of income(47,072)18,643 139,411 (76,455)45,325
Tax relating to components of other comprehensive income8,128 1,273 3,051 6,446 673
Ending BalanceR$ 261512R$ 160202R$ 279401R$ 140400R$ 219668

Income Tax - Additional Informa

Income Tax - Additional Information (Detail) - BRL (R$) R$ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2020Mar. 31, 2019Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Disclosure of income tax [abstract]
Deferred tax assets not recognizedR$ 12237R$ 18402R$ 12025
Brazilian statutory rates34.00%34.00%34.00%34.00%34.00%

Income Tax - Summary Of Income

Income Tax - Summary Of Income Tax Calculation (Detail) - BRL (R$) R$ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2020Mar. 31, 2019Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Reconciliation of accounting profit multiplied by applicable tax rates [abstract]
Income before taxesR$ 516531R$ 303227R$ 1544109R$ 640728R$ 575507
Combined tax rate in Brazil34.00%34.00%34.00%34.00%34.00%
Tax expense at the combined rateR$ 175620R$ 103097R$ 524997R$ 217848R$ 195672
Income (loss) from entities not subject to taxation(9,246)(48)(9,551)(3,647)(5,101)
Effects from entities taxed at different rates14,287 6,505 25,948 16,444 9,078
Effects from entities taxed at different method(64,678)(4,968)(24,089)(18,183)(25,971)
Intercompany transactions with different taxation(9,156)(7,767)(50,138)(38,255)(30,264)
Tax incentives605 (9,772)(1,408)(265)
Non deductible expenses (non-taxable income), net6,586 717 10,888 (689)175
Others4,959 (4,747)(13,658)3,288 8,642
TotalR$ 118977R$ 92789R$ 454625R$ 175398R$ 151966
Effective tax rate23.03%30.60%29.44%27.20%26.38%
CurrentR$ 71905R$ 111432R$ 594037R$ 98943R$ 197291
Deferred47,072 (18,643)(139,412)76,455 (45,325)
Total expenseR$ 118977R$ 92789R$ 454625R$ 175398R$ 151966

Income Tax - Disclosure Of Anal

Income Tax - Disclosure Of Analysis Other Comprehensive Income By Item (Detail) - BRL (R$) R$ in Thousands3 Months Ended12 Months Ended
Mar. 31, 2020Mar. 31, 2019Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Disclosure of analysis of other comprehensive income by item [abstract]
Foreign exchange variation of investees located abroadR$ 56560R$ 1325R$ 6823R$ 18645R$ 2034
Gains (losses) on net investment hedge(85,600)(1,277)(10,543)(26,508)(3,124)
Changes in the fair value of financial assets at fair value52,467 (2,021)1,058 6,727 275
Other comprehensive income, before tax23,427 (1,973)(2,662)(1,136)(815)
Foreign exchange variation of investees located abroad0 0 0
Gains (losses) on net investment hedge29,104 434 3,410 9,013 738
Changes in the fair value of financial assets at fair value(20,977)838 (360)(2,567)(65)
Income tax relating to components of other comprehensive income8,128 1,273 3,051 6,446 673
Foreign exchange variation of investees located abroad56,560 1,325 6,823 18,645 2,034
Gains (losses) on net investment hedge(56,496)(843)(7,133)(17,495)(2,386)
Changes in the fair value of financial assets at fair value31,490 (1,183)698 4,160 210
Other comprehensive incomeR$ 31554R$ 701R$ 388R$ 5310R$ 142

Equity - Additional Information

Equity - Additional Information (Detail) $ / shares in Units, R$ in Thousands, $ in ThousandsDec. 13, 2019sharesDec. 11, 2019USD ($)sharesNov. 30, 2019sharesAug. 31, 2018BRL (R$)sharesAug. 09, 2018sharesMar. 31, 2017sharesMar. 31, 2020BRL (R$)sharesMar. 31, 2019BRL (R$)Dec. 31, 2019BRL (R$)VotesharesDec. 31, 2018BRL (R$)sharesDec. 31, 2017BRL (R$)sharesMar. 31, 2020USD ($)$ / sharessharesDec. 31, 2019USD ($)$ / sharessharesDec. 01, 2019sharesDec. 31, 2016shares
Disclosure of classes of share capital [line items]
Authorized share capital | $ $ 35 $ 35
Authorized shares3,500,000,000 3,500,000,000 3,500,000,000 3,500,000,000
Authorized shares, par value | $ / shares $ 0.00001 $ 0.00001
Authorized shares but unissued500,000,000 500,000,000 500,000,000 500,000,000
Issued capitalR$ 23R$ 23R$ 21 $ 23 $ 23
Number of shares outstanding551,800,326 509,247,134 484,918,517 551,800,326 484,918,517
Reverse share split ratio4:1
Issued capital before share split2,036,988,542
Issued capital after share split509,247,136
Number of shares issued new shares42,553,192
Outstanding number of Shares reserved under plans4,096,401 4,112,046 4,096,401 4,112,046
Capital contributions received | R$R$ 4504826R$ 673294
Dividends distributed | R$R$ 3432R$ 490511,143 204,090 R$ 318856
Equity attributable to owners of parent [member]
Disclosure of classes of share capital [line items]
Capital contributions received | R$4,504,826 673,294
Dividends distributed | R$R$ 500000R$ 200000314,998
Other reserves [member]
Disclosure of classes of share capital [line items]
Dividends distributed | R$R$ 37437
Top of range [member]
Disclosure of classes of share capital [line items]
Maximum number of shares available for issuance under the share-based plan