XTB, a leading Polish fintech firm, reported a strong third quarter, with a consolidated net profit exceeding PLN 200 million. The company’s preliminary financial results highlighted growth in client acquisition, revenue, and profitability during this period. XTB attracted over 108,000 new clients in Q3, marking a 60% increase compared to the same quarter last year. Consolidated net profit reached PLN 203.8 million, nearly doubling year-over-year.
Revenue and Profit Growth
XTB’s Q3 2024 revenue surged to PLN 470.2 million, a 67.3% increase from the previous year. This growth was largely attributed to increased market volatility in July and August, which drove sustained trading activity. Active clients also rose by 68.7%, totaling 474,100, though the volume of CFD transactions slightly decreased to 1,912,400 lots from 2,011,500 lots the previous year. However, profitability per lot increased, moving from PLN 140 to PLN 246.
XTB’s revenue structure showed a shift toward index-based CFDs, which accounted for 44.9% of total revenues, up from 25.4% the prior year. Key indices contributing to this growth included the US 100, German DAX, and US 500.
Increased Operating Expenses
Operating expenses rose in Q3 2024, reaching PLN 208.5 million an increase of PLN 43.5 million from last year. This uptick was driven by higher costs in salaries, marketing, and commissions to payment service providers. XTB expects operating expenses to increase by approximately 20% throughout 2024, primarily due to its expanded client acquisition initiatives and geographic reach.
XTB aims to sustain growth by acquiring an average of 65,000 to 90,000 new clients each quarter. Having added 129,700 clients in Q1, 102,600 in Q2, and over 108,100 in Q3, the company is on track to meet its annual targets.
The management board plans to recommend a dividend payout of 50% to 100% of standalone net profits, depending on profitability and capital adequacy. XTB’s capital adequacy ratio stood at a robust 207% as of Q3 2024, signaling strong financial resilience and support for ongoing growth.
