XTB net profit hits $50 million as revenues doubling in Q3

abdelaziz Fathi

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.

Read this next

Digital Assets

Ankr successfully patches hack, will reimburse victims and take actions to prevent further attacks

DeFi protocol Ankr plans to reimburse its affected users after a hacker managed to exploit a bug in its code that allowed for unlimited minting of its liquid staking token.

Industry News

ASIC cancels/suspends AFS license of AFSL Group and Quantum Funds Management

ASIC canceled the AFS license of AFSL Group because it failed to lodge statements and audit reports and it did not maintain AFCA membership. The Australian regulator suspended Quantum because it does not have the required professional indemnity insurance coverage.

Executive Moves

BidX Markets hires Shaun French as Research Analyst – Multi Asset

“We believe with his background in the Financial Markets and being based in Dubai, he will be able to provide our clients with access to outstanding research, while also being in a great location to help support our international clients base which is growing at a rapid pace’’.

Institutional FX

Nasdaq migrates US options exchange to AWS with +10% performance in round-trip latency

Nasdaq has announced the successful migration of the core trading system of Nasdaq MRX – one of its six U.S. options exchanges – to Amazon Web Services (AWS).

Institutional FX

TraditionData launches oil swaps pricing data at a critical time in OTC oil traded markets

TraditionDATA has announced the release of a new proprietary Oil Swap Model (OSM) which brings further visibility into illiquid and opaque oil markets.

Technology

TNS connects to Tel Aviv Stock Exchange (TASE) as market data vendor

“This latest exchange connection allows TNS to provide access to approved recipients, including exchange members and market data vendors. This project includes market data for TASE’s equities and increases the number of market data feeds we now offer globally.”

Executive Moves

Cowen Digital taps ex-Blockchain.com Taylor S. Cable to lead Europe and Asia operation

“Cowen Digital is a pioneer in delivering institutional grade access to the digital asset ecosystem and I am very excited to join the team at this pivotal time to grow our presence in Europe and Asia.”

Industry News

ASIC sues American Express Australia for lack of TMD on credit cards

“ASIC has now taken multiple actions under the design and distribution regime, including issuing over 20 interim stop orders. This regime turned a new page in the regulation of financial products in Australia and is intended to deliver better outcomes for consumers. It is a priority for ASIC to maximize these increased protections and see the long-term benefits of the DDO regime realized.”

Institutional FX

Eurex reports mixed volumes for November 2022

Deutsche Börse’s derivatives-focused exchange, Eurex today said its total traded derivatives contracts grew by 10 percent in November, from 68.6 million to 75.3 million compared to the same month last year.

<