XTB’s Net Profit Plunges 12.2% in H1 despite Record New Clients

<p>The net
profit of the Polish forex and contracts for difference (CFD) broker, XTB, slumped by
12.2% to zł421 million during the first half (H1) of 2023 when compared to the
same period a year earlier. Similarly, the revenue of the broker fell by 2% to zł818.9 million.</p><p>Lower Volatility
Impacts XTB’s Revenue in H1</p><p>XTB
disclosed the figures in <a href="https://ircdn.xtb.com/files/2023/07/26165913/RB-19-2023-Wstepne-wyniki-finansowe-i-operacyjne-za-I-polrocze-2023-ENG-all.pdf?_gl=1*5esnky*_ga*Mjk0NzQ2NjkwLjE2OTAzODk4NTQ.*_ga_CBPL72L2EC*MTY5MDM4OTg1NC4xLjEuMTY5MDM5MDI3OS4wLjAuMA..&amp;_ga=2.44717345.487372999.1690389854-294746690.1690389854" target="_blank" rel="follow">its
preliminary results</a> for the first six months of 2023 released today
(Wednesday). The broker saw a decline in its net profit and revenue despite
onboarding a record 167, 000 new clients during the period. The number
represents a 65.5% year-over-year (YoY) jump in new customers.</p><p>In
addition, while XTB’s active clients surged by 44.4% YoY to 274, 450, its CFD
profitability per lot, or profit on a per-trade basis, descended 17.4% YoY to
zł226. This is despite the fact that the company, which
is listed on the Warsaw Stock
Exchange, reported an 18.5% YoY increase in its CFD volume. The
volume expanded to 3.6
million at the end of June.</p><p>Similarly,
XTB’s operating income in H1 2023 decreased by 2.1% YoY to zł818.9 million,
with earnings before interest and taxes (EBIT) also going down by 16% YoY to
zł477.3 million. In the preliminary results, XTB
blamed the lower revenue on lower profitability from each trade. </p><p>“Contributing
to this decline was a lower profitability per lot of zł48, amounting to zł226
(H1 2022: zł274),” XTB explained. “This decrease is mainly the result of lower
volatility in the financial and commodity markets in Q2 2023, compensated in
part by the constantly increasing number of new clients (increase by 65.5%
YoY), combined with their high transactional activity expressed in the number
of CFD contracts concluded in lots.”</p><p>Earlier, XTB reported a record-breaking consolidated <a href="https://www.financemagnates.com/forex/xtb-breaks-another-profit-record-in-q1-2023-acquires-over-100000-clients/" target="_blank" rel="follow">net profit of EUR 64.4 million </a>(about zł285 million) for Q1 2023, which was an impressive increase of 19.9% YoY, <a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a> reported. The company attributed the profit to high volatility in financial and commodity markets driven by geopolitical tensions and banking crises. Additionally, XTB's strategic marketing initiatives significantly contributed to a substantial increase in client numbers and transactional activities.</p><p>XTB Goes Beyond CFDs</p><p>Meanwhile, during the first half of 2023, XTB <a href="https://www.financemagnates.com/forex/xtb-and-association-of-individual-investors-to-promote-retail-traders-rights/" target="_blank" rel="follow">made several efforts</a> to improve its business, including <a href="https://www.financemagnates.com/forex/brokers/xtb-goes-beyond-cfds-in-the-uk-launches-stock-trading/" target="_blank" rel="follow">introducing stock trading</a> to clients in the UK. The move came months after the broker <a href="https://www.financemagnates.com/forex/beyond-cfds-xtb-launches-savings-account-to-lure-new-audiences/" target="_blank" rel="follow">disclosed plans</a> to go beyond offering only CFDs. </p><p>Tiger launched HK stocks' auto-invest; Moneta has hired a new manager; <a href="https://www.financemagnates.com/forex/news-nuggets-26-july-tiger-launches-hk-stocks-auto-invest-moneta-hires-new-manager/" target="_blank" rel="follow">read today's news nuggets</a>.</p>

This article was written by Solomon Oladipupo at www.financemagnates.com.