XTB financial results for 2016
In 2016 X- Trade Brokers Dom Maklerski recorded PLN 77,7 million of consolidated net profit, in comparison to PLN 119,0 million recorded in 2015. Only in the IV quarter the Group’s net profit has increased by 206%, i.e. to the amount of PLN 50,4 million y/y. The IV quarter was the same a record quarter for the Group in the whole 2016 reaching the levels comparable to the best quarters of the record 2015 year in the XTB history.
Operating income for 2016 reached PLN 250,6 million as compared to PLN 282,5 million in 2015. Only in IV quarter the Group’s operating income reached PLN 94,0 million (PLN 57,4 million in the previous year).
‘In the IV quarter of 2016 the situation on the financial markets was favorable for XTB. We observed favorable volatility on index CFDs (based on German DAX and US DJIA and S&P500), currency pairs with USD and commodity CFDs based on gold and oil.’ – says Pawel Szejko, Member of the Management Board responsible for Finance.
Year 2016 was special for us. On one hand, we have strengthened our position as one of the leading European brokers. In may we had our debut on the Warsaw Stock Exchange. Joining the companies listed on the WSE played key role as part of our strategy of building XTB’s long-term value. Transparency of our business model and finance, so important for our clients, has become another XTB’s competitive advantage. We consistently built up customers base for future growth. The number of new accounts and the average number of active accounts was increasing from quarter to quarter. On the other hand we witnessed further regulatory changes, which with time may change the business.
‘Some of the competitors took the decision to withdraw from the market because of the pressure exerted on their results due to introduction of additional restrictions and legal barriers. This applied particularly to entities with less established position on the market. We see this as an opportunity to consolidate the market. This situation creates for us opportunities to develop and to increase the number of new accounts.‘- adds Paweł Szejko.
The Management Board’s plan for the upcoming periods is to accelerate the Company’s growth, in particular by expanding the customers base, development of the products offer, further penetration of existing markets and acceleration of geographic expansion into new markets. We intend to intensify our activities in Latin America in the near future. Currently, we focus on business development in Chile. We hope that in the years 2017 and 2018 our expansion in this region will speed up significantly.
‘The Management Board expects that operating expenses in 2017 will be lower than in 2016. In the quarterly view, they may reach similar levels than in the I or IV quarter of 2016. The decrease should mainly result from lower marketing costs.‘- adds Paweł Szejko.