FX And CFDs Broker XTB Posts A Net Profit Of PLN 421 Million In H1

XTB, a forex and contracts for difference (CFD) brokerage company, has reported a net profit of PLN 421 million during the first six months of 2023. The net profits dropped by 12.2% during the first half of the current year compared to the same period in 2022.

XTB reports a 12.2% plunge in net profits

Besides a drop in net profits, the brokerage company reported that the revenues had dropped by 2% to PLN 818.9 million. The plunge in net profits and revenue happened despite the company reporting significant growth in the number of new clients, who came to 167,000 during the period.

The number of clients reported during the first half was a 65.5% gain compared to the same period last year. Moreover, the number of active clients at XTB also increased by 44.4% year-over-year to 274,450.

The CFD profitability on a per-trade basis also dropped by 17.4% year-over-year to PLN 226. The drop happened despite the company reporting an 18.5% year-over-year increase in the CFD volumes. The CFD volumes also increased to 3.6 million by the end of June.

The operating income reported by XTB during the first half of 2023 dropped by 2.1% compared to the previous year to PLN 818.9 million. The earnings before interest and taxes (EBIT) also came to PLN 477.3 million, representing a 16% decline. XTB attributed the plunge in revenue to the lower profits made on every trade.

“This decrease is mainly the result of lower volatility in the financial and commodity markets in Q2 2023, compensated in part by the constantly increasing number of new clients (increase by 65.5% YoY), combined with their high transactional activity expressed in the number of CFD contracts concluded in lots,” XTB said.

XTB also posted a significant consolidated net profit of EUR 64.4 million, equivalent to PLN 285 million, which was a notable increase of 19.9% compared to the same period in 2022. The company said that the profits were attributed to the volatility across financial and commodity markets because of the banking crisis and geopolitical tensions.

XTB has invested heavily in marketing strategies, which has resulted in a growth in client numbers and the number of transactions. Nevertheless, the hit on the net profits and revenues has affected the financial outlook.

XTB is expanding its services

XTB has been making several efforts to expand its services. In May this year, the broker announced a collaboration with the Association of Individual Investors (SII) to boost the standards of the Polish financial industry. The broker also supported the creation of the “Spokesperson for Individual Investors Rights.”

During the first half, XTB also announced stock trading services to clients based in the UK. The initiative happened months after the brokerage company revealed plans to expand its services beyond CFDs. These initiatives could help the company achieve a larger reach and continue expanding the client numbers and improve the performance of the second half.