XTB, a leading financial brokerage firm, has released its preliminary financial results for the year 2023. During this period, the company achieved its highest-ever consolidated net profit of 791.3 million Polish zloty (PLN). The remarkable performance can be attributed to the high volatility in financial and commodity markets, as well as the company’s intensive marketing efforts, which resulted in record-breaking numbers of new clients and increased client activity.
In 2023, XTB experienced rapid business growth while continuously expanding its client base, capitalizing on favorable market conditions. The company reported a consolidated net profit of PLN 791.3 million for the year, which is an increase of over 3.3% compared to the previous year’s figure of PLN 766.1 million. Total revenue from operational activities reached PLN 1,588.2 million after four quarters in 2023, compared to PLN 1,444.2 million at the end of 2022, representing a 10.0% year-on-year increase. On the other hand, operating expenses for 2023 amounted to PLN 693.6 million (compared to PLN 558.6 million in 2022).
Throughout 2023, XTB aggressively expanded its client base, encouraging them to invest in an increasingly diverse product portfolio. In the fourth quarter alone, XTB acquired more than 77,000 new clients, bringing the total number of new clients in 2023 to nearly 312,000. This means that in each of the four quarters, the company exceeded its previous commitment of acquiring at least 40,000 to 60,000 clients. By the end of 2023, the total number of clients exceeded 897,000, and an additional 38,100 new clients joined by January 29, 2024.
A crucial metric influencing these results is the average number of active clients, which reached 310,000 in the fourth quarter, compared to 203,000 in the same period the previous year. Over the entire year of 2023, the number of active clients was 408,500 (compared to 270,600 in 2022). This increase led to higher trading volume in CFD (Contract for Difference) instruments, measured in lots. In the fourth quarter of 2023, trading volume reached 1.789 million transactions, up from 1.720 million in the same period in 2022, marking a 4.0% increase. The profitability per lot in the fourth quarter of 2023 increased by 119.0% compared to the same period in 2022. Additionally, the net deposits increased from PLN 3.42 billion in 2022 to PLN 3.79 billion in 2023.
Omar Arnaout, CEO of XTB, commented on the results: “The results of the past year show that our chosen strategy allows us to achieve consistent and, above all, satisfying results. It is worth noting that, in addition to the record cumulative net profit, we have achieved the highest number of active clients in our history. This demonstrates that our platform is becoming the first choice for anyone looking to manage their savings.”
Revenue Structure
Regarding XTB’s revenue breakdown by asset class, CFDs based on indices were the most profitable in the fourth quarter of 2023, accounting for 53.9% of total financial instrument revenue. The same asset class also contributed the most revenue for the entire year 2023, at 47.8%. This can be attributed to the high profitability of CFDs based on indices such as US 100 (NASDAQ), DAX (DE30), and US 500. The second most profitable asset class was CFDs based on commodities, accounting for 39.9% of total revenue for the year (37.7% in the fourth quarter of 2023). Leading instruments in this class included CFDs based on natural gas, gold, and crude oil prices. Revenue from CFDs based on currencies made up 10.1% of all revenues in 2023.
Operating Costs
Operating expenses in 2023 amounted to PLN 693.6 million, which was PLN 135.0 million higher than in the same period in 2022 (PLN 558.6 million). The most significant expenses were related to employee salaries and benefits, reflecting the company’s growth and increased workforce, as well as marketing expenses stemming from new promotional activities. In the fourth quarter of the previous year, XTB focused its marketing efforts on promoting its proprietary investment platform as an “All-in-One” solution, where investors could access a comprehensive range of investment options. The global face of this campaign was Iker Casillas.
Product Plans
In 2024, XTB plans to continue its focus on acquiring new clients and expanding its customer base to include individuals interested in a wide range of financial products, not just investments. As a result, the company intends to enrich its product offering and make changes aimed at improving the user experience on its investment platform and mobile application.
Omar Arnaout summarized the company’s plans: “Very good financial results in recent years motivate us to further development. As a result of our many months of work, 2024 will be a year of intense product innovation. In this year, we plan to expand our investment offering to include bonds, and Polish clients will be able to take advantage of the increasingly popular IKE and IKZE accounts. We also plan to introduce a social feature called Social Trading, allowing users to follow the transactions of selected users. Additionally, this year, XTB will introduce a product that has the potential to become a comprehensive platform for daily financial management. This will be made possible by introducing a virtual wallet along with a multi-currency card, allowing XTB mobile app users to make card transactions, payments, transfers, and currency exchanges.”
