European Broker XTB Reports 121.3% Profits in Q1 2021

Leading UK-based Brokerage firm XTB reported its preliminary results featuring PLN 89.1 million, which represents a 121.3% increase in profits. The net profits rose to PLN 89.1 million ($23.6 million), marking the most significant jump in the reported quarter.

According to its official statement, the Polish forex and CFDs broker recorded a total income of $186.7 million (approximately $49.6 million).  The revenue is 33.4% higher than PLN 139.9 million (around $37.05 million) recorded in the last quarter of 2020.  XTB further noted that after expenses, its EBIT (earnings before interest and taxes) rose by 77.1% to $99.8 million ($26.43 million).

Additionally, the firm hit a new record in the number of active client accounts that reached 103,425 in Q1 2021.

The Broker Says Results are Unsatisfactory

XTB noted that despite the experienced growth in net profits and increasing trading activity, the current values look grim. In Q4 2020, XTB generated PLN 306.6 million in operating income and PLN 175.9 million in net profits. This makes the latest figure significantly lower at 39% and 49% respectively than in the previous quarter.

Like many other brokers during the coronavirus-stricken economic period, XBT has been gaining more traffic in the last year. Increased day-time trading activity, especially from the retail sector, has pushed the firm’s numbers astronomically higher than in 2020.

According to the firm, the latest figures represent consistent growth and a solid upward trajectory for the Polish broker.  The growth is particularly discernible when comparing the latest performance to the last three or four preceding quarters.

XTB’s CFDs Volume Jumped By 39%

The firm’s trading volume which originated from its contract for difference (CFDs) offerings rose by 39.3% in the latest quarter. XTB signed up 67,231 new trading accounts, representing a 75% increase than in Q4 2020.  Furthermore, there was a 43% increase in the number of active trading accounts at the firm. Increased trading activity consequently increased the total net client deposits that rose from PLN 951.2 million from PLN 619.7 million.

Commenting on the development, XTB said its priority right now is to further expand its client base. The decision is meant to strengthen the firm’s position in the financial markets and promote its global expansion goals. The firm has been aggressively promoting its presence in markets outside of the UK and Europe in general.

In similar XTB news, the firm announced its plans to expand to Asia while halting operations in South Africa. At the time, XTB stated its South African subsidiary was facing several obstacles despite increased interest from the region’s traders.

XTB is primarily regulated by the UK’s Financial Conduct Authority and the Polish Financial Supervision Authority (KNF).