XTB Achieves Record Growth in Client Numbers, Revenues, and Profits in Q3 2024

• In the third quarter, 108.1 thousand new investors joined XTB, which means a growth of 60.1% year on year (y/y)
• Over 9 months of 2024, XTB gained 340.4 thousand new clients, which is more than in the whole of 2023. At the end of September 2024, XTB had 1.21 million clients
• The number of active clients increased to a record level of 474.1 thousand compared to 281.1 thousand a year earlier (+68.7% y/y)
• Consolidated revenues amounted to PLN 470.2 million compared to PLN 281.0 million a year earlier
• Net profit rose to PLN 203.8 million compared to PLN 121.1 million a year earlier with growing operating costs of PLN 208.5 million (compared to PLN 165.0 million in Q3 2023)

The third quarter of 2024 was another period of dynamic business growth for XTB, expanding the customer base, and, above all, increasing their transactional activity. The company’s revenues in the third quarter increased by 67.3% y/y, reaching a record result of PLN 470.2 million. The high volatility in the financial and commodities markets in July and August, as well as the continually growing number of active clients combined with their high transactional activity, significantly influenced the revenue level. In the third quarter of 2024, XTB achieved a net profit of PLN 203.8 million compared to PLN 121.1 million a year earlier (+68.3% y/y). This means that the company can repeatedly generate increasing results with increased operating costs, which amounted to PLN 208.5 million in the third quarter of 2024, being PLN 43.5 million higher compared to the same period a year earlier. The cost increase is related to the dynamic development of the company and mainly results from the increase in employment costs (+PLN 16.1 million) and marketing expenditures (+PLN 13.0 million), as well as commissions paid to payment service providers through which clients deposit their funds in transaction accounts (+PLN 10.1 million).

Analysing XTB’s revenues in terms of the classes of instruments responsible for their creation, we can state that in the third quarter, the most profitable asset class were CFDs based on indices – they accounted for 44.9% of the revenue structure (vs. 25.4% a year earlier). This is a consequence of substantial profitability on CFD instruments based on the US 100 and US 500 indices, as well as the German stock index DAX (DE40). The second most profitable asset class were CFD instruments based on commodities, which accounted for 38.2% of the revenue structure compared to 47.7% a year earlier. This is a consequence of high profitability on CFD instruments based on the gold price, natural gas, and crude oil. Revenues from CFD instruments based on currencies accounted for 14.6% of all revenues, compared to 22.2% a year earlier. The most profitable financial instruments in this class were CFD instruments based on bitcoin, the EURUSD currency pair and the ethereum cryptocurrency.

In the third quarter of 2024, XTB clients invested more actively in stocks and ETFs, and the turnover of these instruments increased by 123% y/y to 2.4 billion USD. After the first three quarters of 2024, 80% of the transactions of new XTB clients in EU markets were transactions on stocks, ETFs, and Investment Plans based on this instrument. XTB clients are also increasingly making use of the interest offer on free funds, which reflects the dynamic increase in net deposits, which at the end of the past quarter amounted to PLN 2.27 billion and are 174% higher compared to the same period a year earlier.

The third quarter was successful for us – both revenues and operating profit increased significantly compared to the results from the previous year. This is another proof that the implementation of our business strategy is on the right track. I am pleased not only with the growing number of active clients but especially the fact that they trade more frequently and willingly on the XTB application. Our goal remains to enrich our product offering, so everyone can find a product that suits both active and passive investment strategies  – comments Omar Arnaout, CEO of XTB.

Increase in the number of clients and their investment activity

In the third quarter of 2024, XTB gained 108.1 thousand new clients, significantly above the quarterly target assuming an increase of 65-90 thousand clients. At the end of September, 1.21 million clients used the XTB investment platform and mobile application compared to 826 thousand on 30 September of the previous year. In the days from 1 to 29 October 2024, another 44.0 thousand new investors joined XTB clients. The number of active clients also increased dramatically, reaching a record level of 474.1 thousand at the end of the third quarter of 2024 compared to 281.1 thousand a year earlier.

A richer offer and transformation into a universal investment application

2024 is marked by product innovations in XTB. At the turn of the third and fourth quarters, an Individual Retirement Account (IRA) appeared in the fintech offer, enabling tax-advantaged investing of funds for an additional retirement. In the following quarters, the long-term investment product segment will be enriched with more products, including the ISA account in the UK.

Since the beginning of October, XTB clients on the Czech and Portuguese market have at their disposal a virtual wallet with a multi-currency card, supporting cashless payments in shops, mobile transactions, and contactless cash withdrawals from ATMs worldwide. Introducing the virtual portfolio with a multi-currency card is another step illustrating the evolution that XTB has undergone in recent years. From an investment platform, known among active market participants, to a super investment application for people who want to manage their finances effectively, both short and long term.