XTB Announces Record-Breaking Profits and Plans for Dividends

XTB, a global forex and CFDs broker listed on the Warsaw Stock Exchange in Poland, announced its plans to pay out 50% of its estimated net profit of PLN 761.6 million ($171.6 million) in 2022 as dividends to its shareholders.

The decision is subject to approval by XTB’s Supervisory Board and General Meeting. The Management Board also recommended allocating 25% of the profit to buy back shares of the company. According to the statement released by XTB, these percentages equate to PLN 381.5 million ($86 million) in dividend payments, with each share receiving PLN 3.25 or $0.73, and PLN 188.7 million ($42.5 million) in share repurchase. XTB’s net profit surged by 214.4% to $171.6 million in 2022, despite a significant profit decrease in the preliminary quarterly financials for the fourth quarter of the previous year.

In addition, XTB’s operating revenue reached a record high of $325 million last year, reflecting a growth of 125% from the previous year’s $144.2 million. XTB plans to allocate the remaining PLN 191.4 million ($43 million) as reserve capital, with 75% of the profit being allocated to dividends and share repurchases.

The Approval Determiner

XTB stated in the report that the implementation of its recommendations is subject to approval from the Polish Financial Supervision Authority regarding its request to repurchase approximately 5.7 million shares, which is equivalent to 4.84% of the total shares in the company.

The deadline for the request to be granted is December 31, 2023. If the request is not granted, or if the deadline is extended, XTB’s Management Board will recommend paying 75% of the 2022 net profit as a dividend to shareholders. This would result in total dividend payments of approximately 570.5 million ($128.5 million) and a dividend per share of PLN 4.86 ($1.09), the company explained.

Additionally, XTB recently had its cessation appeal dismissed by the Polish Supreme Administrative Court (NSA) against the financial markets regulator’s decision to impose a financial penalty of PLN 9.9 million (over $2.2 million) on the brokerage firm in 2018.

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