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UPDATE 1-Brazilian broker XP expands banking services, sees Q4 profit up 30%

(Adds CFO quotes, details of earnings)

SAO PAULO, Feb 23 (Reuters) - Brazilian broker XP Inc said on Tuesday its fourth-quarter net income grew by 30%, as assets under custody jumped more than 60% from a year earlier and it added more clients.

Earnings before interest, taxes, depreciation and amortization went up 42% year-over-year.

XP’s assets under management ended December at 660 billion reais, 61% higher in 12 months, as the broker announced earlier this year.

Number of clients rose by 5% in the quarter and 63% year-over-year, to 2.77 million. The brokerage firm has attracted Brazilians seeking higher returns as the benchmark interest rate in the country fell to a record low.

XP’s Chief Financial Officer Bruno Constantino said the broker is expanding its banking activities, with the launch of a credit card this month and digital banking accounts by mid-year.

XP ended December with a 3.9 billion real credit portfolio, an activity the broker began last year. The portfolio is comprised mainly of loans with the clients’ investments as collateral.

XP has also grown its revenue with investment banking, mainly Equity Capital Markets mandates. The investment banking division revenue has been growing and reached 13% of total revenue on the last quarter. XP managed 32 share offerings last year. (Reporting by Tatiana Bautzer; Editing by Will Dunham)

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