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

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

Digital Assets

Ethereum-Based Tokenized Real Estate Platform USP Launches On Republic

How This Californian Startup Is Revolutionizing Real Estate Investment through Ethereum-Based Tokenization.

Digital Assets

Sui Spikes in Weekly DEX Volume, Joins Top 10 of All Blockchains

March DEX volume on Sui stands at over $2.88B – up more than 49% from February – with decentralized exchange Cetus and wholesale liquidity layer DeepBook leading.

<