XTB financial results: EUR 152.7 mn net profit after three quarters

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XTB has just presented its preliminary financial results for the third quarter of 2022. During this period, the company generated a consolidated net profit of 49.4 EUR million.

As in previous quarters, the factors influencing the level of XTB’s results were the still high volatility on the financial and commodity markets and the systematically growing customer base.

In the third quarter of 2022, XTB generated a net profit of EUR 49.4 million compared to EUR 22.8 million in the third quarter of 2021. In total, after three quarters of 2022, the net profit of XTB amounts to EUR 152.7 million, which is four times more than in the same period of the previous year (EUR 37.1 million).

Operating revenues recorded in the third quarter of 2022 reached the value of EUR 81.9 million, almost twice as high as in the third quarter of 2021 (EUR 43.7 million). In turn, the operating costs amounted to EUR 27.7 million (in Q3 2021: EUR 18.5 million).

In the third quarter of 2022, XTB acquired 44.8 thousand customers, which together with the results from the previous quarters of this year gave over 145.8 thousand new customers at the end of September.

Thus, in each of the three quarters, the company met its commitment of acquiring at least on average 40,000 new clients quarterly. The total number of customers at the end of the third quarter exceeded 567.4 thousand.

An important indicator influencing the result is the average number of active clients – in Q3 it amounted to 151.7 thousand. compared to 110.9 thousand in the same period of the previous year and an average of 112 thousands throughout 2021.

This translated into an increase in the volume of trading on CFD instruments expressed in lots – in the third quarter it amounted to 1.595 million lots compared to 1.044 million in the corresponding period of 2021 (increase by 52.7%).

Profitability per lot increased by 28.1%. The value of customer net deposits also increased by 42.5% (from EUR 120.7 million in the third quarter of 2021 to EUR 163.6 million in the third quarter of 2022).

– The situation on the energy market influencing the prices of energy commodities, high inflation and volatility in the currency market are just some of the factors that encouraged customers to actively seek investment opportunities on financial markets.

This is confirmed by income from different types of assets. In such circumstances, we can see the effects of systematic building of the base of our clients, who conclude more transactions in the period of higher volatility. The effect of this, as in previous quarters, is also higher profitability – comments Omar Arnaout, CEO of XTB.

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When it comes to XTB’s revenues in terms of the classes of instruments responsible for its creation, in the third quarter of 2022, indices-based CFDs were the most profitable. Its share in the structure of revenues from financial instruments reached 37.6%.

This is a consequence of high profitability on contracts based on the US 100, WIG20, DAX (DE30) and US 500 indices. The second most profitable asset class were CFDs based on currencies, with a 31.0% share in the revenue structure in the third quarter of 2022.

Revenues on CFDs based on commodities accounted for 27.7% of all revenues, and the leading instruments in this class were contracts based on gold, oil and natural gas prices.

The operating costs in the third quarter of 2022 amounted to EUR 27.7 million and were by EUR 9.2 million higher than in the comparable period (Q3 2021: EUR 18.5 million).

The most important items were the costs of salaries and employee benefits, being the result of the company’s continuous development and thus employment growth, as well as marketing costs resulting from promotional activities.

In September, XTB launched a global marketing campaign with new brand ambassador Conor McGregor, one of the world’s most successful and recognized martial arts fighters and one of the world’s highest-paid athletes.

Fintech, in line with its strategy, is constantly working on improving its offer – in the third quarter it introduced, among others, contracts for 30 new cryptocurrencies, it also adapted its offer of real stocks and ETFs to the requirements of customers, expanding it by over 65 instruments.

To make it easier for clients to build and balance the components of their investment portfolios, XTB also lowered the minimum order value for stocks and ETFs.

Acquisition data show that the number of our clients is systematically growing, which was one of our main goals for this year. The development of technology makes investing more and more accessible and common.

That is why we constantly modify our offer and introduce changes, which are to increase the interest in our services for both new and existing customers. Additionally, we intensified our advertising campaigns with our brand ambassadors.

Thanks to this, from quarter to quarter we are consistently strengthening our position on the market of global investment companies – adds Omar Arnaout.