The XTB Group posted its best financial results to date with €89.9 million in profit, €178.3 million in revenue and 112,000 new clients. The announcement marks the broker’s highest operating income so far with notable year-on-year increases across the board. It also means XTB has signed up over 250,000 new clients since inception.
XTB Financial Results 2020
Following a buoyant year for the industry, the broker posted positive results in key areas:
- €89.9 million net profit – a 597.4% increase on 2019
- €178.3 million operating income – a 233.4% increase on 2019
- €115.4 million earnings before interest and tax – a 689.3% increase on 2019
In the fourth quarter of the year, XTB posted operating revenues of €31.3 million vs €20.8 million in the same quarter of 2019. The group also reported €9.1 million in net profit compared to €8.6 million in the fourth quarter of 2019.
The results follow a good year for the industry, driven in part by cuts to interest rates, encouraging many traders to turn to the financial markets.
President of the Board of XTB, Omar Arnaout, had this to say of the results “2020 was a very good year for XTB. Achieving three-digit increases in revenues and profits, would not have been possible without several years of hard work on our product, technology and the enhancement of our services. Thanks to this, we took advantage of the opportunity for development and growth provided by above-average volatility in the markets. This year has proved the stability of the foundations on which our business is based.”
X Open Hub (XOH)
In addition to its retail trading arm, the group offers institutional services through its X Open Hub (XOH) brand. XOH provides technology and liquidity to financial institutions, including online brokers. This resulted in revenue streams of €23.5 million vs the €4.8 million generated in 2019.
Operating costs in 2020 came to €63.0 million, a €22.5 million increase on the previous year. The increase primarily stemmed from increased marketing spend, along with a rise in headcount and associated costs.
250,000 New Clients At XTB
The Polish-based broker also had a strong year for new clients. The group signed up 112,025 new traders compared to the 36,555 new customers in 2019. As a result, the brokerage now has over 261,000 clients using its trading services.
XTB also saw an increase in its number of active traders with 107,287 clients placing at least one trade in the preceding 12 months, up from the 45,837 in 2019.
In line with the group’s dividend policy, XTB plans to recommend the payment of dividends in its General Meeting. Further news on this is expected in March of this year following the release of the broker’s annual report.
XTB Global Opportunities
Looking ahead, XTB’s board is focused on growing its customer base globally. To support this, the broker is introducing zero commissions on stocks and ETFs up to monthly trading volumes of €100,000. Helping to market the brand is also world-famous football manager – José Mourinho, who has agreed to partner with the brand for two years.
The company is also continuing with its global expansion, focussing particularly on the United Arab Emirates (UAE) and South Africa. XTB Mean Limited was established in January of 2021 and is based in the Dubai International Financial Centre (DIFC). Once regulatory conditions have been met, the broker plans to start operating in the first half of 2021. XTB intends to announce plans for its South Africa roll-out once it has navigated local legal requirements.
Final Word On XTB Financial Results 2020
XTB’s preliminary financial results for 2020 show a notable improvement on its 2019 figures. The group successfully hit the quarter of a million client mark while net profits jumped over 500% from the previous year. XTB’s success is a strong indicator that it’s meeting the needs of today’s online traders.
Download the broker’s preliminary financial results here.