XTB profit tops $100 million, FX generated only 13% of revenues

abdelaziz Fathi

Poland-based Forex and CFDs broker XTB has reported its final results for H1 2022 ending June 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 six months to June 30, XRB revenue was reported at PLN 836.2 million ($178 million), up 245 percent from PLN 242 million in the same period a year ago. On a quarter-over-quarter scale, the company posted PLN 396 million in Q2 revenues, which was lower from PLN 440 million in the first quarter.

Also, XTB saw its operating expenses rise in the first half after seeing a figure of PLN 267 million ($57 million) – this was up 64 percent year-over-year from PLN 167 million in the comparable period of 2021.

In terms of its operating income, the listed broker disclosed a net profit of PLN 480 million ($102 million), which was six times higher than the PLN 65 million it earned in the H1 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 3 million lots compared to 1.9 million in the first quarter 2021.

XTB to kick off its operations in South Africa

XTB explained that indices CFDs segment generated 49 percent of the company’s total revenue. This figure ticked higher as compared to 40 percent a year earlier. 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 35 percent. Meanwhile, FX CFDs generated less than 13 percent of XTB’s total revenues.

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.

“The XTB Management Board puts the main emphasis on organic development, on the one hand increasing the penetration of European markets, on the other hand successively building its presence in Latin America, Asia and Africa. Currently, the efforts of the Management Board are focused on expansion into the Middle East and Africa markets. The intention of the Management Board is to start operating in South Africa in mid-2023,” the company further explains.

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