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




Poland-based Forex and CFD broker XTB has released its final results for the third quarter of 2022 ending September 30, 2022.

The report showed improved metrics after seeing revenue and customer numbers fall the previous year from 2021 highs as the pandemic business boom waned.

In the three months to September 30, XRB’s revenue was reported at PLN 391 million ($83 million), almost double the PLN 200 million in the same period a year ago. On a quarter-on-quarter scale, the company recorded revenue of PLN 396 million in the second quarter, reflecting a slight decline.

Additionally, XTB saw an increase in operating expenses in the third quarter after reaching a figure of PLN 132 million ($28 million), a 57% year-on-year increase from 84 million. million PLN in the comparable period of 2021.

In terms of operating income, the listed broker posted a net profit of PLN 236 million ($50 million), which was 127% higher than the PLN 104 million it earned in the third quarter. 2021.

The Polish brokerage, like its rivals, saw trading volumes soar in 2022 as retail traders tried to profit from fluctuations in financial markets caused by the Russian-Ukrainian war.

XTB said its operating revenue was primarily driven by a growing customer base combined with their strong trading business. Specifically, CFD trading volumes reached 1.6 million lots from 1.04 million in Q3 2021.

XTB launches operations in South Africa

XTB explained that the index CFD segment generated 38% of the company’s total revenue. This figure decreased from 49% in the first half of 2022. As explained, this was a consequence of the high profitability of CFD instruments based on the US 100 and US 500 indices, and the German stock index DAX (DE30).

The second most profitable asset class was CFDs on shares, whose share in total income amounted to 27.7%. Meanwhile, FX CFDs generated 31% of XTB’s total revenue. The most profitable instruments in this class were CFDs on EURUSD, USDPLN and GBPUSD.

The Warsaw-based brokerage said it plans to launch operations in South Africa in the second half of 2023. Earlier in August, XTB acquired an FSCA license in South Africa and is now licensed as a local financial service provider. Registration with the regulator allows “XTB Africa (Pty) Ltd” to operate as a financial services provider in the country, which the company has cited as an important region for strategic expansion.

Nevertheless, Paweł Szejko, XTB’s chief financial officer and member of the management board, told a press conference that the group’s priority was to develop its presence in the Middle East.