XTB UK Profit Surges Over 100% Despite Revenue Slide

XTB Limited, the UK branch of a Warsaw-listed fintech firm, announced strong results for last year. The company’s profit before tax jumped 116% to £374,228 despite a 5% drop in total revenue to £4.51 million. This growth occurred as XTB transitioned from focusing solely on CFD trading to offering a broader range of investments. The change shows the company’s effort to reach more investors.

Based in Canary Wharf, London, XTB saw retail sales dip slightly to £4.42 million from £4.65 million the year before. Institutional sales also fell by 8%, dropping to just under £91,000. Still, the company said cutting costs helped increase operating profit to nearly £376,000. It was more than double the previous year’s figure, showing better efficiency.

XTB Introduced An ETF Portfolio Builder With Auto-Invest To Simplify Investing

Throughout last year, XTB focused more on longer-term investment products. It launched Investment Plans and added flexible stocks and shares ISA. The company also started paying interest on uninvested funds to benefit clients. Additionally, XTB introduced an ETF portfolio builder with auto-invest to simplify investing.

Joshua Raymond, Managing Director of XTB UK, said ISAs have been popular for many years but often come with high fees and low interest rates. He said the company wants to offer some of the best terms in the market to attract more users. This is part of their effort to provide more value to clients.

The company’s annual report stated that it had invested heavily in marketing in the UK to build brand awareness. This push was meant to support the shift to a multi-asset platform. XTB stated that the effort helped attract more clients despite the decline in revenue. The marketing also aimed to highlight their new investment options.

The Wider XTB Group Reported A 60% Rise In New Clients And A 9% Profit Increase

New UK retail clients grew by 59% compared to the previous year, while active clients jumped 73%. XTB stated that this increase demonstrates its new products are capturing the attention of investors. The growth helped strengthen the company’s position in a competitive market.

These numbers aligned with data from the wider XTB Group. Earlier this year, the group reported a 60% rise in new clients and a 9% increase in net profit, reaching PLN 859.4 million. The company views this as clear proof that its strategy is on track and delivering results.

XTB ran a large advertising campaign early in the year focused on Investment Plans. However, the company said competitor brokers also increased their marketing budgets. It made it harder for XTB to stand out and added to cothe mpetition in the UK market. Despite this, the campaign raised awareness.

Market conditions also influenced trading patterns last year. XTB stated that the US Presidential Election, lower interest rates, and rising commodity prices led to market swings. This led to increased activity in commodities and bursts of stock market trading, similar to last year’s trends.

By the end of the year, XTB’s financial position remained strong. Cash and equivalents were £6.45 million, slightly less than the previous year. The company had no borrowings, and net assets increased to £3.15 million. This indicates that the firm is managing its finances carefully and maintaining stability.