XTB Shows Strong Client And Profitability Growth In Q3 2024
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Polish fintech firm XTB has announced its operating financial results for Q3, 2024. According to the report, the company registered growth in profit and client onboarding during the period. The publicly listed company said it gained more than 108,000 clients, indicating a 60% increase from last year.
Also, the firm reported a consolidated net profit of PLN 203.8 million, which is almost a 100% surge from the figures year-over-year.
XTB Grew Its Revenue By 67.3% In Q3
XTB stated that its revenue for the third quarter of the year rose to PLN 470.2 million, showing a 67.3% surge compared to the same quarter last year. The company increased market volatility in July and august contributed heavily to the increase. XTB said it recorded heightened trading activities during that period.
The firm also noted that the active client base reached 474,100 individuals, indicating a surge of 68.7%. However, it recorded a slight dip in the volume of CFD transactions from 2,011,500 to 1,912,400 lots. But it recorded an increase in profitability per lot, rising to PLN 246 from PLN 140.
The revenue index is also an indication that the CFDs based on indexes are contributing 45% of total revenues, indicating a significant increase from the 25.4% recorded the previous year.
The shift shows the increasing profitability of indices such as US 500, German DAX, and US 100.
Q3 2024 saw a rise of operating expenses to PLN 208.5 million, an increase of PLN 43.5 million from the previous year. Some of the important expenditure areas include commissions, marketing, and salaries.
XTB says it expects operational costs to increase by about 20% before the end of the year, spurred by geographical expansion and ongoing client acquisition efforts.
XTB’s Total Capital Ratio Is Now 207% For Q3 2024
The company is looking to gain about 90,000 new clients each quarter to maintain its growth trajectory. The firm realized a total of 127,700 new clients in the first quarter of the year, 102,600 clients in the second quarter, and 108,100 in the third quarter. These numbers show that the firm is looking to maintain its client onboarding figures in the fourth quarter.
The management board of XTB is reportedly looking to recommend 50% to 100% of the standalone net profit as a dividend payment.
However, this is dependent on other factors such as capital adequacy ratios and future profitability. The company’s total capital ratio stands at a remarkable 207% for Q3 2024, showing that the firm is capable of managing risks and fostering growth.
