BRASILIA, Oct 17 (Reuters) - Brazilian investment manager and broker XP Inc aspires to become a market leader in investments in up to seven years, its CEO Thiago Maffra said on Tuesday, acknowledging the challenging global landscape but highlighting the positive domestic macroeconomic situation.
Speaking at the inauguration of the company's space in Brasilia, the second of six locations set to open in various cities this year as part of the company's marketing strategy, Maffra expressed optimism about prospects in Brazil.
XP currently holds 7% to 8% of the investment market in Brazil, while the largest player commands a 20% share, with approximately 80% of Brazilian investments concentrated within the five major banks, said Maffra.
"In good years, we gain 150 basis points of market share annually, and in more challenging times, such as rising interest rate cycles, we gain 60 bps," he said at a press conference. "We believe that within a 5-7 year horizon, we should be the market leader in investments."
Maffra said that while advanced economies are still battling inflation, the monetary easing cycle has already commenced in the country, and stressed that private economists now project lower consumer prices in 2023, anticipating year-end inflation at the upper limit of the central bank's target range of 1.75% to 4.75%.
Maffra also emphasized that Brazil is a prominent player in attracting investments aligned with green initiatives, pointing out the economic reforms carried out in recent years and ongoing proposals.
He acknowledged that the increase in long-term U.S. interest rates "might hinder short-term prospects," but expressed confidence that this does not alter the favorable outlook for Brazil in the years ahead. (Reporting by Marcela Ayres; editing by Jonathan Oatis)
