XP plans growth in post-Itaú Unibanco era

Investment management firm XP expects to double in size when authorized to act as a bank. “We have 3 million active clients, who end up having a relationship with a bank because they need a checking account”, says Guilherme Benchimol, founder and CEO of XP, adding that building a vertical operation able to offer the facilities of a bank will give the firm an “enormous opportunity in the short term.” The executive said that the firm is not concerned with a reduction in participation or total withdrawal of its main shareholder, bank Itaú Unibanco. In November, Itaú informed the market that it intends to spin off its 41.05% stake in XP, creating a new company. In the following month, the bank sold about 5% of its participation in XP in the market. Mr. Benchimol says having Itaú as a shareholder represents “a certain conflict of interest.”

Source: Valor International