CFD broker XTB’s net profit over four times higher in Q3 year-to-date

Rick Steves

XTB has generated a consolidated net profit of 49.4 EUR million in the third quarter of 2022, according to the broker’s preliminary financial results. 

Net profit of 49.4 EUR million in Q3 2022 corresponds to a 117.1% increase on a year over year basis and an increase of profitability per lot by 28.1%. Trading volume on CFD instruments rose by 52.7% y/y, from 1.044 million to 1.594 million lots.

The net profit of XTB on a YTD basis amounts to EUR 152.7 million, which is four times more than in the same period of the previous year (EUR 37.1 million).

High volatility and client onboarding behind net profit growth at XTB

XTB stated the broker onboarded almost 45 thousands of clients in the third quarter and a total of 145.8 thousand during the first nine months of 2022.

The firm points to high volatility on the financial and commodity markets and the systematically growing customer base as the main factors influencing the level of XTB’s results. These were also named as the main causes in previous quarters.

Omar Arnaout, CEO of XTB, said: “The situation on the energy market influencing the prices of energy commodities, high inflation and volatility in the currency market are just some of the factors that encouraged customers to actively seek investment opportunities on financial markets. This is confirmed by income from different types of assets. In such circumstances, we can see the effects of systematic building of the base of our clients, who conclude more transactions in the period of higher volatility. The effect of this, as in previous quarters, is also higher profitability.”

“Acquisition data show that the number of our clients is systematically growing, which was one of our main goals for this year. The development of technology makes investing more and more accessible and common. That is why we constantly modify our offer and introduce changes, which are to increase the interest in our services for both new and existing customers. Additionally, we intensified our advertising campaigns with our brand ambassadors. Thanks to this, from quarter to quarter we are consistently strengthening our position on the market of global investment companies.”

Indices-based CFDs account for 37.6% of profitability at XTB

In the third quarter of 2022, indices-based CFDs – especially US 100, WIG20, DAX (DE30) and US 500 indices – were the most profitable for XTB as its share in the structure of revenues from financial instruments reached 37.6%.

The second most profitable asset class were CFDs based on currencies, with a 31.0% share in the revenue structure in the third quarter of 2022.

Revenues on CFDs based on commodities accounted for 27.7% of all revenues, and the leading instruments in this class were contracts based on gold, oil and natural gas prices.

The operating costs in Q3 amounted to EUR 27.7 million, up by EUR 9.2 million, and were mostly salaries and employee benefits as well as marketing costs resulting from promotional activities. XTB has recently launched a global marketing campaign with new brand ambassador Conor McGregor.

In Q3 2022, XTB launched contracts for 30 new cryptocurrencies and adapted its offer of real stocks and ETFs to the requirements of customers, expanding it by over 65 instruments, while also lowering the minimum order value for stocks and ETFs.

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