XTBLimited, the UK arm of the Warsaw-listed fintech (WSE: XTB), reported annualprofit before taxation surged 116% to £374,228 for 2024, even as total revenuedeclined 5% to £4.51 million amid its strategic transformation from a pure CFDbroker to a multi-asset investment platform.
XTB Profit Jumps 61% as UKBroker Cuts Costs, Adds Investment Products
TheLondon-based company, which operates from Canary Wharf, saw retail sales incomefall to £4.42 million from£4.65 million the previous year, while institutional sales dropped 8% to£90,948. However, aggressive cost-cutting measures helped boost operatingprofit to £375,968 from £178,527 in 2023.
XTB’s shifttoward longer-term investment products gained momentum throughout 2024, withthe company launching InvestmentPlans, a flexible stocksand shares ISA, and interest-bearinguninvested funds. The firm also introduced a proprietary ETF portfoliobuilder withauto-investing capabilities.
“ISAs haveproved wildly popular since their launch 25 years ago,” said Joshua Raymond,XTB UK Managing Director. “However, too many accounts have costs and interestrates that are significantly worse when compared to accounts outside the ISAregime. Ourintention is to offer terms and conditions that are among the best in themarket.”
XTB Limited KeyPerformance Indicators
“Thebusiness committed to a significant marketing spend in the UK to build greaterbrand recognition and expedite the transition to a multi-asset investmentplatform,” the company stated in its annual report filed with CompaniesHouse.
Client Growth OffsetsRevenue Drop
Despite therevenue headwinds, client acquisition metrics remained robust. New UK retailclient growth jumped 59% year-over-year, while new active clients surged 73%,demonstrating what XTB called “the new competitive edge of our investmentproducts.”
Theincrease in the number of clients aligns with statistics published by theentire XTB Group at the end of January, wherethe number of new clients rose by 60%. Net profit, meanwhile, grew by 9% toPLN 859.4 million.
Thecompany’s marketing push included a substantial out-of-home brand campaign inthe first quarter promoting its Investment Plans product. However, XTBacknowledged that competitor brokers also ramped up marketing spending, which”diluted the effect” of its own campaign and intensified competitionin the UK market.
XTB Limited – Statement ofComprehensive Income Analysis
Volatility, Balance Sheetand Compliance
Marketvolatility driven by the US Presidential Election, falling interest rates, andcommodity price spikes contributed to two distinct trading patterns: atransition to commodities trading and periodic burstsof stock market volatility similar to 2023 trends.
XTB’sbalance sheet strengthened during the year, with cash and cash equivalentsreaching £6.45 million, down from £6.87 million in 2023. The company maintainedno borrowings and reported net assets of £3.15 million, up from £2.87 millionthe previous year.
The firm’scompliance team focused on strengthening its vulnerable client framework andpreparing regulatory requirements for new product launches, including ISAofferings. For 2025, XTB plans to introduce a tiered onboarding process fordifferent products while continuing to enhance consumer duty frameworks.
This article was written by Damian Chmiel at www.financemagnates.com.
