XTB sees revenues, earnings rebound in Q3 2021

abdelaziz Fathi

Poland-based Forex and CFDs broker XTB has reported its final results for Q3 2021 ending September 30, 2021. The report showed improved metrics after seeing revenues and customer numbers fall back in the previous quarter from the heights of Q1 as the pandemic trading boom fizzled out.

In the three months to September 30, XRB revenue was reported at PLN 196.5 million ($49.18 million), up 41 percent from PLN 139.6 million in the same period a year ago. During Q2 of 2021, XTB disclosed a total operating revenue of PLN 55.1 million ($14.3 million), which dropped against the PLN 188 million it reported in the first quarter.

Also, XTB saw its operating expenses rise in the third quarter after seeing a figure of PLN 84.7 million – this was up 60 percent year-over-year from PLN 60.8 million in the comparable period of 2020.

In terms of its operating income, the listed broker disclosed a net profit of PLN 101.5 million ($25.5 million), which rose 49 percent against the PLN 68.4 million it reported in the Q3 2020.

Taking a year-to-date perspective, XTB’s profit nearly halved in the nine month through September 2021, coming in at PLN 166.4 million relative to PLN 361 million in the same period a year earlier.

The Polish brokerage firm, like rivals, saw profits skyrocket in 2020 as retail traders tried to take advantage of swings in the financial markets brought on by Covid-19.

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 1.04 million lots compared to 760K in the third quarter 2020.

XTB explained that commodities CFDs segment generated 59 percent of the company’s total revenue. This figure ticked higher as compared to 23 percent a year earlier.

The second most profitable class of assets were stock indices CFDs, which saw their share in total revenues amounting to 23 percent. Meanwhile, revenues from FX CFDs amounted to 14.4 percent of total revenues relative to 20 percent in 2020.

Earlier this month, XTB kicked off its operations in the Middle East region, barely nine months after it had received the required approvals from the UAE regulators. Also in August, XTB acquired an FSCA license in South Africa and is now authorized as a Financial Service Provider locally. The addition of this coveted license extends the group’s regulatory arsenal to include regulated companies authorised by CySEC in Cyprus, KNF in Poland, the DFSA in Dubai and FCA in the United Kingdom.

 

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