UPDATE 1-Brazilian broker XP Inc quarterly adjusted profit more than doubles

(Adds details on results)

Nov 9 (Reuters) - Brazilian broker XP Inc’s third-quarter net income more than doubled, and the company said on Monday it plans to expand its advisers’ network to take on traditional banks.

Adjusted net income surged to 570 million reais in the third quarter, from 261 million reais a year earlier, XP said.

The brokerage’s total number of active clients rose 12% in the quarter, to 2.6 million, while assets under custody grew by 29% to 563 billion reais.

Besides retail investors, XP started to attract more high net worth individuals, boosting its assets under custody. Still, adjusted net margin came in at 27.1%, down 2.3 percentage points from the previous quarter, hit by investments in technology, it said.

XP said it plans to expand its independent financial advisers network, saying it added 500 in October, totaling more than 7,000.

“We maintain more than 659 commercial points that are well positioned to capitalize on opportunities to continue to take market share from the incumbent banks, which continue to close branches, particularly as a result of expanding digitalization during the pandemic,” XP said in a statement.

Last week, Brazil’s biggest lender Itau Unibanco Holding SA announced it will transfer all its shares in XP to a new company and sell a 5% stake in the broker, adding pressure to the broker’s shares. The move follows disagreements between XP and Itau, as both compete for Brazil’s growing ranks of retail investors. ($1 = 5.3683 reais) (Reporting by Carolina Mandl in Sao Paulo; Editing by Shailesh Kuber and Grant McCool)