XTB Sees Astounding Highs for Q1 2020
It looks like the coronavirus has its winners. Polish brokerage XTB reported extensive returns in volatility in trading in its financial and operational results for Q1 2020.
The firm revealed a significant yearly boost for its net profit, new clients, and CFDs trading volumes on Sunday. COVID-19 remains as its main driver as more clients grow more active amid large swings in currencies and prices.
During the first quarter of 2020, the Polish firm saw a net profit of around €38.94 million. This was 22,962.78 percent higher than last year.
Although the net profit is jaw dropping, the large gap is still largely due to last year’s weak figures. The European Securities and Markets Authority’s intervention measures pushed net profits down in Q1 2019.
Still, XTB still showed an increase against the final quarter of 2019. Net profit for this quarter rose by 375.10 percent against the previous quarter.
In terms of revenue, the firm reported a 650 percent increase year-on-year by approximately €58.75 million.
The firm went through above-average volatility in the financial and commodity markets among others. It continues to see a growing client base with high transaction activity, which noted plenty of its concluded transactions.
Yearly Comparisons
XTB’S net profit fell by 98.7 percent year-on-year in the first quarter of 2019. From €14.2 million, it saw a decrease to €178,000.
Meanwhile, it also saw revenue of €9.04 million in the same quarter.
The implementation of ESMA’s measures limited marketing practices and capped leverage. The firm didn’t change their strategies nor decrease costs, but put a focus on active clients and product diversification.
Omar Arnaout, CEO of XTB, said Sunday’s figures weren’t just from the coronavirus’ volatility. It was also due to this strategy, which was part of what they were building in previous years.
It undoubtedly worked, or as the figures showed—the CFD trading volume almost doubled year-over-year at $248.65 billion. This was 90.8 percent higher against last year’s $130.34 billion.
Active clients also rose almost twice in size against Q1 2020, coming in at 45,660 against the 22,245 in 2019.
