XTB triples net profit to $50 million as revenues doubling in Q3

Poland-based Forex and CFDs broker XTB has reported its final results for Q3 2022 ending September 30, 2022.

The report showed improved metrics after seeing revenues and customer numbers fall back in the previous year from the heights of 2021 as the pandemic trading boom fizzled out.

In the three months to September 30, XRB revenue was reported at PLN 391 million ($83 million), nearly double the PLN 200 million in the same period a year ago. On a quarter-over-quarter scale, the company posted PLN 396 million in Q2 revenues, which reflects a slight step back.

Also, XTB saw its operating expenses rise in the third quarter after seeing a figure of PLN 132 million ($28 million) – this was up 57 percent year-over-year from PLN 84 million in the comparable period of 2021.

In terms of its operating income, the listed broker disclosed a net profit of PLN 236 million ($50 million), which was higher by 127 percent than the PLN 104 million it earned in the Q3 2021.

The Polish brokerage firm, like rivals, saw trading volumes skyrocket in 2022 as retail traders tried to take advantage of swings in the financial markets brought on by the Russia-Ukraine war.

XTB said its operating revenues were primarily influenced by a growing client base combined with their solid trading activity. Specifically, CFDs trading volumes spiked to 1.6 million lots compared to 1.04 million in the third quarter 2021.

XTB to kick off its operations in South Africa

XTB explained that indices CFDs segment generated 38 percent of the company’s total revenue. This figure ticked lower as compared to 49 percent in the first half of 2022. As explained, this was a consequence of high profitability on CFD instruments based on the US 100 and US 500 indexes, and the German DAX stock index (DE30).

The second most profitable class of assets was stock commodity CFDs, which saw their share in total revenues amounting to 27.7 percent. Meanwhile, FX CFDs generated 31 percent of XTB’s total revenues. The most profitable instruments in this class were CFDs on EURUSD, USDPLN and GBPUSD.

The Warsaw-based brokerage said it plans to kick off its operations in South Africa in the second half of 2023. Earlier in August, XTB acquired an FSCA license in South Africa and is now authorized as a Financial Service Provider locally. Registration with the regulatory body allows ‘XTB Africa (Pty) Ltd’ to operate as a financial service provider in the country, which the company cited as an important region for strategic expansion.

Nevertheless, Paweł Szejko, XTB’s CFO and member of the management board, said in a press conference that the group’s priority is to develop its presence in the Middle East.