Raport

CONSOLIDATED FINANCIAL
STATEMENTS
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 2
TABLE OF CONTENTS
CONSOLIDATED COMPREHENSIVE INCOME STATEMENT 3
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 4
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 5
CONSOLIDATED CASH FLOW STATEMENT 7
ADDITIONAL EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 8
1. Information about the Parent Company and composition of the Group 8
2. Basis for drafting the financial statements 10
3. Professional judgement 13
4. Adopted accounting principles 14
5. Operating income 27
6. Salaries and employee benefits 28
7. Marketing 28
8. Costs of maintenance and lease of buildings 29
9. Other external services 29
10. Commission expenses 29
11. Other expenses 29
12. Finance income and costs 30
13. Segment information 30
14. Cash and cash equivalents 35
15. Financial assets at fair value through P&L 35
16. Financial assets at amortised cost 35
17. Prepayments and deferred costs 36
18. Intangible assets 37
19. Property, plant and equipment 39
20. Amounts due to customers 41
21. Financial liabilities held for trading 41
22. Other liabilities 41
23. Liabilities due to lease 42
24. Provisions for liabilities and contingent liabilities 42
25. Equity 43
26. Profit distribution and dividend 44
27. Earnings per share 44
28. Current income tax and deferred income tax 45
29. Related party transactions 48
30. Remuneration of the audit companies 49
31. Employment 49
32. Supplementary information and explanations to the cash flow statement 50
33. Post balance sheet events 50
34. Off-balance sheet items 50
35. Items regarding the compensation scheme 51
36. Capital management 51
37. Risk management 53
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 3
CONSOLIDATED COMPREHENSIVE INCOME STATEMENT
(IN PLN’000)
NOTE
TWELVE-MONTH PERIOD ENDED
31.12.2021
31.12.2020
Result of operations on financial instruments
5.1
618 453
792 788
Income from fees and charges
5.2
5 034
4 839
Other income
2 108
123
Total operating income
5
625 595
797 750
Salaries and employee benefits
6
(131 262)
(119 141)
Marketing
7
(120 101)
(87 731)
Other external services
9
(38 434)
(29 443)
Commission expenses
10
(36 187)
(22 539)
Amortisation and depreciation
18,19
(8 921)
(7 753)
Taxes and fees
(5 373)
(3 723)
Costs of maintenance and lease of buildings
8
(4 407)
(3 788)
Other costs
11
(4 087)
(7 886)
Total operating expenses
(348 772)
(282 004)
Profit on operating activities
276 823
515 746
Finance income
12
17 891
5 857
Finance costs
12
(4 258)
(22 906)
Profit before tax
290 456
498 697
Income tax
28
(52 626)
(96 610)
Net profit
237 830
402 087
Other comprehensive income
(458)
23 646
Other comprehensive income net of tax
(502)
24 250
Items which may be reclassified to profit (loss) after meeting specific
conditions, net of tax
(502)
24 250
Foreign exchange differences on translation of foreign operations
(502)
24 250
- items which were reclassified to profit (loss)- foreign exchange
differences on the translation of a subsidiary in Turkey
-
21 880
- items which will be reclassified to profit (loss)- foreign exchange
differences on translation of foreign operations
(272)
(810)
- items which will be reclassified to profit (loss)- foreign exchange
differences on valuation of separated equity
(230)
3 180
Deferred income tax
44
(604)
TOTAL COMPREHENSIVE INCOME
237 372
425 733
Net profit attributable to shareholders of the Parent Company
237 830
402 087
Total comprehensive income attributable to shareholders of the Parent
Company
237 372
425 733
Earnings per share:
(IN PLN’000)
NOTE
TWELVE-MONTH
PERIOD ENDED
31.12.2021
TWELVE-MONTH
PERIOD ENDED
31.12.2020
- basic profit per year attributable to shareholders of the Parent Company
(in PLN)
27
2,03
3,43
- basic profit from continued operations per year attributable to
shareholders of the Parent Company (in PLN)
27
2,03
3,43
- diluted profit of the year attributable to shareholders of the Parent
Company (in PLN)
27
2,03
3,43
- diluted profit from continued operations of the year attributable to
shareholders of the Parent Company (in PLN)
27
2,03
3,43
The consolidated comprehensive income statement should be read together with the supplementary notes to the consolidated
financial statements, which are an integral part of these consolidated financial statements.
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 4
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(IN PLN’000)
NOTE
31.12.2021
31.12.2020
ASSETS
Cash and cash equivalents
14
2 376 261
1 575 807
Financial assets at fair value through P&L
15
703 546
663 133
Income tax receivables
7 247
2 593
Financial assets at amortised cost
16
26 568
13 310
Prepayments and deferred costs
17
8 637
5 397
Intangible assets
18
585
639
Property, plant and equipment
19
16 206
13 260
Deferred income tax assets
28
8 693
9 387
Total assets
3 147 743
2 283 526
EQUITY AND LIABILITIES
Liabilities
Amounts due to customers
20
2 010 490
1 203 243
Financial liabilities held for trading
21
127 712
96 632
Income tax liabilities
783
1 329
Liabilities due to lease
7 437
8 654
Other liabilities
22
48 377
54 167
Provisions for liabilities
25
4 965
7 939
Deferred income tax provision
28
32 419
23 257
Total liabilities
2 232 183
1 395 221
Equity
Share capital
25
5 869
5 869
Supplementary capital
25
71 608
71 608
Other reserves
25
598 789
390 730
Foreign exchange differences on translation
25
(449)
9
Retained earnings
239 743
420 089
Equity attributable to the owners of the Parent Company
915 560
888 305
Total equity
915 560
888 305
Total equity and liabilities
3 147 743
2 283 526
The consolidated statement of financial position should be read together with the supplementary notes to the consolidated
financial statements, which are an integral part of these consolidated financial statements.
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 5
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Consolidated statement of changes in equity for the period from 1 January 2021 to 31 December 2021
(IN PLN’000)
SHARE
CAPITAL
SUPPLEMENTARY
CAPITAL
OTHER
RESERVES
FOREIGN EXCHANGE
DIFFERENCES ON
TRANSLATION OF
FOREIGN
OPERATIONS AND
SEPARATE FUNDS
RETAINED
EARNINGS
EQUITY
ATTRIBUTABLE TO
THE OWNERS OF THE
PARENT COMPANY
TOTAL
EQUITY
NOTE
25
25
25,26
25
26
As at 1 January 2021
5 869
71 608
390 730
9
420 089
888 305
888 305
Total comprehensive income for the
financial year
Net profit
-
-
-
-
237 830
237 830
237 830
Other comprehensive income
-
-
-
(458)
-
(458)
(458)
Total comprehensive income for the
financial year
-
-
-
(458)
237 830
237 372
237 372
Transactions with Parent Company’s
owners recognized directly in equity
Appropriation of profit/offset of loss
- dividend payment
-
-
-
-
(210 117)
(210 117)
(210 117)
- transfer to other reserves
-
-
208 059
-
(208 059)
-
-
Increase (decrease) in equity
-
-
208 059
(458)
(180 346)
27 255
27 255
As at 31 December 2021
5 869
71 608
598 789
(449)
239 743
915 560
915 560
The consolidated statement of changes in equity should be read together with the supplementary notes to the consolidated financial statements, which are an integral part of these
consolidated financial statements.
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 6
Consolidated statement of changes in equity for the period from 1 January 2020 to 31 December 2020
(IN PLN’000)
SHARE
CAPITAL
SUPPLEMENTARY
CAPITAL
OTHER
RESERVES
FOREIGN EXCHANGE
DIFFERENCES ON
TRANSLATION OF
FOREIGN
OPERATIONS AND
SEPARATE FUNDS
RETAINED
EARNINGS
EQUITY
ATTRIBUTABLE TO
THE OWNERS OF THE
PARENT COMPANY
TOTAL
EQUITY
NOTE
25
25
25,26
25
26
As at 1 January 2020
5 869
71 608
364 757
(23 637)
72 147
490 744
490 744
Total comprehensive income for the
financial year
Net profit
-
-
-
-
402 087
402 087
402 087
Other comprehensive income
-
-
-
23 646
-
23 646
23 646
- including foreign exchange differences
on the translation of a subsidiary in Turkey
-
-
-
21 880
-
21 880
21 880
Total comprehensive income for the
financial year
-
-
-
23 646
402 087
425 733
425 733
Transactions with Parent Company’s
owners recognized directly in equity
Appropriation of profit/offset of loss
- dividend payment
-
-
-
-
(28 172)
(28 172)
(28 172)
- transfer to other reserves
-
-
25 973
-
(25 973)
-
-
Increase (decrease) in equity
-
-
25 973
23 646
347 942
397 561
397 561
As at 31 December 2020
5 869
71 608
390 730
9
420 089
888 305
888 305
The consolidated statement of changes in equity should be read together with the supplementary notes to the consolidated financial statements, which are an integral part of these
consolidated financial statements.
Group XTB S.A.
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 7
CONSOLIDATED CASH FLOW STATEMENT
(IN PLN’000)
NOTE
TWELVE-MONTH
PERIOD ENDED
31.12.2021
TWELVE-MONTH
PERIOD ENDED
31.12.2020
Cash flows from operating activities
Profit before tax
290 456
498 697
Adjustments:
(43 788)
62 320
(Profit) Loss on investment activity
4 411
(3 747)
Amortization and depreciation
18,19
8 921
7 753
Foreign exchange (gains) losses from translation of own cash
(9 457)
(5 790)
Other adjustments
32.1
(359)
23 264
Changes
Change in provisions
(2 974)
4 810
Change in balance of financial assets at fair value through P&L and
financial liabilities held for trading
(76 022)
(56 995)
Change in balance of restricted cash
(753 267)
(562 757)
Change in financial assets at amortised cost
(13 258)
(6 836)
Change in balance of prepayments and accruals
(3 240)
(1 324)
Change in balance of amounts due to customers
807 247
629 451
Change in balance of other liabilities
(5 790)
34 491
Cash from operating activities
246 668
561 017
Income tax paid
(47 970)
(92 188)
Interests
312
306
Net cash from operating activities
199 010
469 135
Cash flow from investing activities
Proceeds from sale of items of property, plant and equipment
20
1
Expenses relating to payments for property, plant and equipment
19
(7 806)
(4 353)
Expenses relating to payments for intangible assets
18
(210)
(324)
Expenses relating purchase of bonds
(712 743)
(668 567)
Proceeds from sale of bonds
773 250
286 545
Interests on bonds
2 377
2 473
Net cash from investing activities
54 888
(384 225)
Cash flow from financing activities
Payments of liabilities under finance lease agreements
32.1
(5 737)
(4 369)
Interest paid under lease
(314)
(306)
Dividend paid to owners
(210 117)
(28 172)
Net cash from financing activities
(216 168)
(32 847)
Increase (Decrease) in net cash and cash equivalents
37 730
52 063
Cash and cash equivalents – opening balance
542 205
484 351
Effect of FX rates fluctuations on balance of cash in foreign currencies
9 457
5 791
Cash and cash equivalents – closing balance
14
589 392
542 205
The consolidated cash flow statement should be read together with the supplementary notes to the consolidated financial
statements, which are an integral part of these consolidated financial statements.
Group XTB S.A.
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 8
ADDITIONAL EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Information about the Parent Company and composition of the Group
The Parent Company in the XTB S.A Group (the “Group”) is XTB S.A. (hereinafter: the “Parent Entity”, “Parent Company”,
“Brokerage”) with its headquarters located in Warsaw at Prosta street 67, 00-838 Warszawa, Polska,. On January 1, 2022, the
address of the registered office of XTB S.A. from Ogrodowa street 58, 00-876 Warsaw at Prosta street 67, 00-838 Warsaw,
Poland.
On January 12, 2022, the Management Board of XTB S.A. received the decision of the District Court for the Capital City of
Warsaw, XII Commercial Division of the National Court Register on the registration of amendments to the Articles of Association
of the Company on January 5, 2022 made by Resolution No. 9 of the Extraordinary General Meeting of the Issuer of November
19, 2021 on amendments to the Articles of Association, pursuant to which the name of the entity was changed.
XTB S.A. is entered in the Commercial Register of the National Court Register by the District Court for the Capital City of Warsaw,
Poland, XII Commercial Division of the National Court Register, under No. KRS 0000217580. The Parent Company was granted
a statistical REGON number and a tax identification (NIP) number 5272443955.
The Parent Company’s operations consist of conducting brokerage activities on the stock exchange and OTC markets (currency
derivatives, commodities, indices, stocks and bonds). The Parent Company is supervised by the Polish Financial Supervision
Authority and conducts regulated activities pursuant to a permit dated 8 November 2005, No.DDM-M-4021-57-1/2005.
1.1 Information on the reporting entities in the Parent Company’s organisational
structure
The consolidated financial statements cover the following foreign branches which form the Parent Company:
• X–Trade Brokers Dom Maklerski Spółka Akcyjna, organizačni složka – a branch established on 7 March 2007 in the Czech
Republic. The branch was registered in the commercial register maintained by the City Court in Prague under No. 56720 and
was granted the following tax identification number: CZK 27867102.
• X–Trade Brokers Dom Maklerski Spółka Akcyjna, Sucursal en Espana – a branch established on 19 December 2007 in Spain.
On 16 January 2008, the branch was registered by the Spanish authorities and was granted the tax identification number ES
W0601162A.
• X–Trade Brokers Dom Maklerski Spółka Akcyjna, organizačna zložka – a branch established on 1 July 2008 in the Slovak
Republic. On 6 August 2008, the branch was registered in the commercial register maintained by the City Court in Bratislava
under No. 36859699 and was granted the following tax identification number: SK4020230324.
• X–Trade Brokers Dom Maklerski S.A. Sucursala Bucuresti Romania (branch in Romania) – a branch established on 31 July
2008 in Romania. On 4 August 2008, the branch was registered in the Commercial Register under No. 402030 and was
granted the following tax identification number: RO27187343.
• X–Trade Brokers Dom Maklerski S.A., German Branch (branch in Germany) – a branch established on 5 September 2008 in
the Federal Republic of Germany. On 24 October 2008, the branch was registered in the Commercial Register under No. HRB
84148 and was granted the following tax identification number: DE266307947.
• X–Trade Brokers Dom Maklerski Spółka Akcyjna a branch in France – a branch established on 21 April 2010 in the Republic
of France. On 31 May 2010, the branch was registered in the Commercial Register under No. 522758689 and was granted
the following tax identification number FR61522758689.
• X–Trade Brokers Dom Maklerski S.A., Sucursal Portugesa – a branch established on 7 July 2010 in Portugal. On 7 July 2010,
the branch was registered in the Commercial Register and as tax identification number under No. PT980436613.
Group XTB S.A.
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 9
1.2 Composition of the Group
The XTB S.A. Group is composed i XTB S.A. as the Parent Company and the following subsidiaries:
NAME OF SUBSIDIARY
CONSOLIDATION
METHOD
COUNTRY OF
REGISTERED
OFFICE
PERCENTAGE SHARE IN
THE CAPITAL
31.12.2021
PERCENTAGE SHARE
IN THE CAPITAL
31.12.2020
XTB Limited (UK)
full
Great Britain
100%
100%
X Open Hub Sp. z o.o.
full
Poland
100%
100%
XTB Limited (CY)
full
Cyprus
100%
100%
Tasfiye Halinde XTB Yönetim Danışmanlığı
A.Ş.
full
Turkey
100%
100%
XTB International Limited
full
Belize
100%
100%
XTB Chile SpA
full
Chile
100%
100%
XTB Services Limited
full
Cyprus
100%
100%
Lirsar S.A. en liquidacion
full
Uruguay
100%
100%
XTB Africa (PTY) Ltd.
full
South Africa
100%
100%
XTB MENA Limited
full
UAE
100%
−
X Trading Technologies Sp. z o.o. in liquidation
full
Poland
−
100%
XTB Services Asia Pte. Ltd
full
Singapore
−
100%
On 3 March 2020 general meeting of the company X Trade Brokers Menkul Değerler A.S. with its seat in Turkey took decision
to reduce the company’s share capital from TRY 22 500 thousand to TRY 100 thousand. Due to that fact in the first quarter of
2020 X- Trade Brokers Dom Maklerski S.A. Group reclassified part of foreign exchange differences arising from the translation
in amount of PLN 21 880 thousand of the subsidiary’s equity from the position Foreign exchange differences on translation in
equity to income statement.
On 15 September 2020, the liquidation process of the company in Turkey has begun. The name of the company was changed
to Tasfiye Halinde XTB Yönetim Danışmanlığı A.Ş.
As at the 31 December 2021, amount of negative foreign exchange differences on translation of balances in foreign currencies
of Turkish company amounted PLN (3 658), at the 31 December 2020, amount of negative foreign exchange differences on
translation of balances in foreign currencies of Turkish company amounted PLN (3 022) thousand (ref note 25). Exchange
differences will be recognized in consolidated financial statement at the date of liquidation of the company.
In September 2020 the Company established XTB Foundation. On 23 December 2020 foundation was entered into the National
Court Register. As at the date of these financial statements the foundation has not conduct its statutory activity.
On 9 January 2021 XTB MENA Limited with its seat in United Arab Emirates was registered. the Parent Company will acquire
100% of shares in the subsidiary. On 13 April 2021 shared of XTB MENA Limited with its seat in United Arab Emirates were paid
by the Company. Capital was contributed in the amount of USD 1 million.
On 8 November 2021 the Company acquired 100 shares in the increased capital of subsidiary. As a result of the above
transaction the Company kept 100% share in subsidiary’s capital As at the date of these financial statements the company has
not conduct its operations.
On 10 July 2018 the Parent Company established XTB Africa (PTY) Ltd. with its seat in South Africa. The Parent Company owns
100% of shares in subsidiary. As at the date of publication of this report the company did not conduct any operating activities.
On 14 October 2019 the Company acquired 100 shares in the increased capital of subsidiary. As a result of the above transaction
the Company kept 100% share in subsidiary’s capital. As at the date of these financial statements the company has not conduct
its operations.
On 19 August 2019 the Company established XTB Services Asia Pte. Ltd. with its seat in Singapore in which it owns 100% of
shares. As at the date of these financial statements the company has not conduct its operations On April 2020 the Parent
Company has started liquidation of XTB Services Asia Pte. Ltd. with its seat in Singapore by Accounting and Corporate
Regulatory Authority and on 23 September 2020 decision regarding deletion of XTB Services Asia Pte. Ltd from ACRA was
legalized.
The scope of activities of subsidiaries:
• XTB Limited (UK) – brokerage activity
Group XTB S.A.
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 10
• X Open Hub Sp. z o.o. – applications and electronic trading technology offering
• XTB Limited (CY) – brokerage activity
• XTB International Limited – brokerage activity
• XTB Chile SpA – the activity of acquiring clients
• XTB Services Limited – marketing, marketing and sales activities (sales support)
• XTB MENA Limited – brokerage activity
• XTB Africa (PTY) Ltd. –the Company has not yet conducted operations
• Tasfiye Halinde XTB Yönetim Danışmanlığı A.Ş.– the company does not conduct its operations, is in the process of
liquidation
1.3 Composition of the Management Board
In the period covered by the consolidated financial statements and in the comparative period, the Management Board was
composed of the following persons:
NAME AND
SURNAME
FUNCTION
DATE OF FIRST
APPOINTMENT
TERM OF OFFICE
Omar Arnaout
Chairman of the
Management
Board
23.03.2017
from the 23 March 2017 appointed for the position of the
Chairman of the Management Board; term of office ending 30
June 2022
Paweł Szejko
Board Member
28.01.2015
from the 30 June 2019 appointed for the 3-years term of
office ending 30 June 2022
Filip Kaczmarzyk
Board Member
10.01.2017
from the 30 June 2019 appointed for the 3-years term of
office ending 30 June 2022
Jakub Kubacki
Board Member
10.07.2018
from the 30 June 2019 appointed for the 3-years term of
office ending 30 June 2022
Andrzej Przybylski
Board Member
01.05.2019
from the 30 June 2019 appointed for the 3-years term of
office ending 30 June 2022
2. Basis for drafting the financial statements
2.1 Compliance statement
These consolidated financial statements were prepared based on International Financial Reporting Standards (IFRS).
The consolidated financial statements of the XTB S.A. Group prepared for the period from 1 January 2020 to 31 December 2021
with comparative data for the year ended 31 December 2020 cover the Parent Company’s financial data and financial data of
the subsidiaries comprising the “Group”.
These consolidated financial statements have been prepared on the historical cost basis, with the exception of financial assets
at fair value through P&L and financial liabilities held for trading which are measured at fair value. The Group’s assets are
presented in the statement of financial position according to their liquidity, and its liabilities according to their maturities.
The Group companies maintain their accounting records in accordance with the accounting principles generally accepted in the
countries in which these companies are established. The consolidated financial statements include adjustments made in order
to reconcile their financial statements with the IFRS.
The consolidated financial statements were approved by the Management Board of the Parent Company on 8 March 2022.
Drafting this consolidated financial statements, the Parent Company decided that none of the Standards would be applied
retrospectively.
The IFRS comprise standards and interpretations approved by the International Accounting Standards Board (“IASB”) and the
International Financial Reporting Interpretations Committee (“IFRIC”).
Group XTB S.A.
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 11
2.2 Functional currency and reporting currency
The functional currency and the presentation currency of these consolidated financial statements is the Polish zloty (“PLN”),
and unless stated otherwise, all amounts are shown in thousands of zloty (PLN’000).
2.3 Going concern
The consolidated financial statements were prepared based on the assumption that the Group would continue as a going
concern in the foreseeable future. At the date of preparation of these consolidated financial statements, the Management Board
of XTB S.A. does not state any circumstances that would threaten the Group companies’ continued operations with the
exception of subsidiary Tasfiye Halinde XTB Yönetim Danışmanlığı A.Ş. in Turkey and Lirsar S.A. en liquidacion in Uruguay
described in note 1.2.
2.4 Comparability of data and consistency of the policies applied
Data presented in the consolidated financial statements is comparable and prepared under the same principles for all periods
covered by the consolidated financial statements.
2.5 The impact of COVID-19 on the Company’s results
In March 2020 the World Health Organization determined that COVID disease can be treated as a pandemic. Due to significant
increase of this disease all over the world, countries take numerous action to limit or delay it’s spread. Undertaken measures
have increasing impact on global economy. This situation has influence on the above average volatility in the financial and
commodity markets which resulted in high transaction activity of customers and converted to growth of Group’s revenues and
customer base.
2.6 Changes in the accounting policies
The accounting policies applied in the preparation of the interim condensed consolidated financial statements are consistent
with those applied in the preparation of the consolidated financial statements of the Group for the year ended 31 December
2020, except for the application of new or amended standards and interpretations applicable to annual periods beginning on or
after 1 January 2021.
Other new or amended standards and interpretations that apply for the first time in 2021 have no material impact on Company’s
financial statements.
• Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 - Interest Rate Benchmark Reform – Phase 2
The changes implemented in Stage 2 provide accounting solutions for the recognition of changes in contractual cash flows or
changes in hedging relationships resulting from the application of a new reference rate at the stage of implementation of the
IBOR reform and the disclosure requirements regarding the impact of the reform.
The IASB introduced practical simplifications to IFRS concerning changes in cash flows required by the reform. These changes
are recognized by updating the effective interest rate. The practical simplification can only be used if:
- the change in the reference rate results directly from the reform;
- the new contract reference rate is economically equivalent to the previous pre-reform rate.
As part of this project, it was proposed to enable the changes required by the IBOR reform to designate hedged items and in the
documentation related to hedged items in accordance with IFRS 9 and IAS 39 without discontinuing certain hedge accounting
requirements.
The IASB also introduced a number of reliefs relating to:
- amounts included in the cash flow hedge reserve;
Group XTB S.A.
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 12
- grouping of items designated as hedged items;
- meeting the criterion separately identified by the risk component designated for the hedging relationship;
- retrospective effectiveness assessment.
The Group does not apply hedge accounting, therefore the IBOR reform has no impact on the annual consolidated financial
statements. Moreover, the Group has no financial instruments that would require disclosure in terms of IBOR reform.
• Amendments to IFRS 4 „Insurance Contracts” – deferral of IFRS 9
In 2017, the Board released the new standard IFRS 17 "Insurance Contracts". The standard implements the biggest revolution
in the reporting of insurance companies in decades.
The aim is to ensure greater transparency and comparability than in the case of the current IFRS 4 accounting standard, resulting
in the occurrence in practice of many, often different accounting principles, which are often inconsistent within one capital
group. IFRS 4 was released in 2004 as a transitional IFRS standard that allowed entities to apply their previous accounting
practice and focused only on introducing improved disclosures about the amounts, timing and uncertainties about future cash
flows from insurance contracts and thus did not regulate some accounting matters precisely enough.
• Amendment to IFRS 16 „Leases” - Covid 19 - Related Rent Concessions
As a result of the Covid-19 pandemic and the introduced restrictions in social life and the economy, entities can negotiate the
terms of the leasing contract, including force majeure clauses contained in leasing contracts. In addition, lessors may provide
various benefits to lessees, such as vacation rentals, rent reductions, etc. The general requirements of IFRS 16 for the
recognition of such changes require judgment when assessing whether a change in lease payments is a modification within the
meaning of the standard, which would involve with a re-measurement of the lease liability or the recognition of a new lease.
The Group has not decided to apply earlier any Standard, Interpretation or Amendment that has been issued, but has not yet
become effective in light of the EU regulations.
The new or amended standards and interpretations that are applicable for the first time in 2021 do not have a significant impact
on the Group’s financial statements.
2.7 New standards and interpretations which have been published but are not yet binding
The following standards and interpretations have been published by the International Accounting Standards Board but are not
yet binding:
• Annual amendments to various standards due to “Improvements to IFRS (Cycle 2018-2020)” – effective for financial years
beginning on or after 1 January 2022;
• Amendments to IAS 37 - Onerous Contracts—Cost of Fulfilling a Contract– not yet endorsed by EU at the date of approval
of these financial statements – effective for financial years beginning on or after 1 January 2022;
• Amendments to IAS 16 - Property, Plant and Equipment — Proceeds before Intended Use– effective for financial years
beginning on or after 1 January 2022;
• Amendments to IFRS 3 – Reference to the Conceptual Framework– effective for financial years beginning on or after 1
January 2022;
• Amendments to IFRS 17 “Insurance contracts” (issued on 18 May 2017) –effective for financial years beginning on or after
1 January 2023;
• Amendments to IAS 8 “Accounting policies, changes in accounting estimates and errors”- not yet endorsed by EU at the date
of approval of these financial statements – effective for financial years beginning on or after 1 January 2023;
• Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets Between an Investor and its Associate or Joint Venture
(issued on 11 September 2014) - the endorsement process of these Amendments has been postponed by EU - the effective
date was deferred indefinitely by IASB;
Group XTB S.A.
Consolidated financial statements for 2021
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• Amendments to IAS 1 – Classification of liabilities as current or non- current - not yet endorsed by EU at the date of approval
of these financial statements –effective for financial years beginning on or after 1 January 2023.
• Amendments to IAS 1 Presentation of Financial Statements - classification of liabilities as current or non-current– not yet
endorsed by EU at the date of approval of these financial statements – effective for financial years beginning on or after 1
January 2023;
• Amendments to IAS 12 Income Taxes - deferred tax related to assets and liabilities arising from a single transaction– not
yet endorsed by EU at the date of approval of these financial statements – effective for financial years beginning on or after
1 January 2023;
• Amendments to IFRS 17 “Insurance Contracts” - initial application of IFRS 17 and IFRS 9 – comparative information– not
yet endorsed by EU at the date of approval of these financial statements – effective for financial years beginning on or after
1 January 2023;
The Group does not anticipate any significant impact of the above published standards and interpretations, which have not yet
come into force, on the annual consolidated financial statements of the Group.
3. Professional judgement
In the process of applying the accounting principles (policy), the Management Board of the Parent Company made the following
judgements that have the greatest impact on the reported carrying amounts of assets and liabilities.
Revenue recognition
Transaction price is determined at fair value which is described in details in notes 4.13 and 4.14. Variable remuneration, liabilities
due to reimbursements and other in the case of the Group do not occur.
3.1 Material estimates and valuations
In order to prepare its financial statements in accordance with the IFRS, the Group has to make certain estimates and
assumptions that affect the amounts disclosed in the financial statements. Estimates and assumptions subject to day-to-day
evaluation by the Group’s management are based on experience and other factors, including expectations as to future events
that seem justified in the given situation. The results are a basis for estimates of carrying amounts of assets and liabilities.
Although the estimates are based on best knowledge regarding the current conditions and actions taken by the Group, actual
results may differ from the estimates. Adjustments to estimates are recognised during the reporting period in which the
adjustment was made provided that such adjustment refers only to the given period or in subsequent periods if the adjustment
affects both the current period and subsequent periods. The most important areas for which the Group makes estimates are
presented below.
3.2 Impairment of assets
As at each balance sheet date, the Group determines whether there are any indications of impairment of a given financial asset
or group of financial assets. In particular, the Group tests its past due receivables for impairment and writes down the estimated
amount of doubtful and uncollectible receivables.
At each balance sheet date, the Group assesses whether there are objective indications of impairment of other assets, including
intangible assets. Impairment is recognised when it is highly likely that all or a significant part of the respective assets will not
bring about the expected economic benefits, e.g. as a result of expiry of licences or decommissioning.
Deferred income tax assets
At each balance sheet date, the Parent Company assesses the likelihood of settlement of unused tax credits with the estimated
future taxable profit, and recognises the deferred tax asset only to the extent that it is probable that future taxable profit will be
available against which the unused tax credits can be utilised.
Group XTB S.A.
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Period for settlement of the deferred tax asset
The Group recognises a deferred tax asset based on the assumption that a tax profit will be generated in the future enabling its
utilisation. Deterioration in tax results in the future might result in the assumption becoming unjustified. The deferred tax asset
relates mainly to the losses generated by foreign operations and subsidiaries in the initial period of their operation recognised
in the balance sheet. The Group analyses the possibility of recognising such assets, taking into consideration local tax
regulations, and analyses future tax budgets assessing the possibility of recovering these assets.
3.3 Fair value measurement
Information on estimates relative to fair value measurement is presented in note 37 – Risk management.
3.4 Other estimates
Provisions for liabilities connected with retirement, pension and death benefits are calculated using the actuarial method by an
independent actuary as the current value of the Group’s future amounts due to employees, based on their employment and
salaries as at the balance sheet date. The calculation of the provision amount is based on a number of assumptions, regarding
both macroeconomic conditions and employee turnover, risk of death, and others.
Provision for unused holidays is calculated on the basis of the estimated payment of holiday benefits, based on the number of
unused holidays, and remuneration as at the balance sheet date. Provisions for legal risk are calculated on the basis of the
estimated amount of outflow of cash in the case in which it is probable that such outflow will occur, if the given case ends
unsuccessfully.
Provisions for disputes is determined individually based on the circumstances of a given case. The Company assesses the
chance of winning particular case and consequently assesses the need of establishment of provision in case of a loss in
relations to all court cases.
4. Adopted accounting principles
4.1 Rules of consolidation
The consolidated financial statements contain the financial information of the Parent Company and subsidiaries as at 31
December 2021 and 31 December 2020. The financial statements of subsidiaries, after adjustments made to ensure compliance
with the IFRS, are prepared for the same reporting period as the financial statements of their parent companies, with the
application of consistent accounting principles, based on uniform accounting policies applied to transactions and economic
events of a similar nature. Adjustments are made in order to eliminate any discrepancies in the accounting methods.
4.1.1 Business combinations
Acquisitions of entities and organised parts of the business are recognised under the acquisition method. Each payment made
as a result of a business combination is measured at the aggregate fair value (as at the date of payment) of transferred assets,
liabilities incurred or acquired and capital investments issued in exchange for taking over the target. Costs directly related to the
business combination are recognised in profit or loss at the time they were incurred.
In some cases, the payment transferred also includes assets or liabilities arising under contingent payment, measured at fair
value at the date of acquisition. Changes in the fair value of a contingent payment over subsequent periods are recognised as
changes in the cost of the combination only if they can be classified as changes over the measurement period. All other changes
are settled in accordance with applicable IFRS regulations. Changes in the fair value of a contingent payment classified as an
equity component are not disclosed.
Identifiable assets, liabilities and contingent liabilities of the target that meet the criteria for disclosure under IFRS 3 Business
combinations are recognised at fair value as at the acquisition date, taking into account the exceptions set out in IFRS 3.
In settling transactions under joint control, the Group applies the acquisition method.
Group XTB S.A.
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Where control is acquired as a consequence of several subsequent transactions, interests held as at the date of takeover are
measured at fair value and their results are recognised in income or expenses for the period. Amounts accrued under shares in
that entity, previously recognised under comprehensive income, are carried over to income or expenses for the period.
4.1.2 Investments in subsidiaries
Subsidiaries are understood as entities controlled by the Parent Company (inclusive of special purpose entities). It is assumed
that the Group controls another entity in which the investment was made, when due to its involvement in this unit it is exposed
to changing financial results, or when it has rights to variable financial results and the ability to affect the amount of these
financial results through the exercise of power over the entity.
Financial results of subsidiaries acquired or sold in the course of the year are recognised in the consolidated financial
statements from/until the time of their effective acquisition or disposal.
Any transactions, balances, income and expenses between the entities consolidated within the Group are subject to full
consolidation elimination.
Non–controlling interests are presented separately from equity attributable to the owners of the Parent Company. Non–
controlling interests may initially be measured at fair value or in proportion to the fair value share of acquired net assets. One of
the above methods may be selected by any business combination. In subsequent periods, the value of non–controlling interests
comprises the value initially recognised, adjusted for changes in the value of the entity’s equity in relation to the shares held.
Comprehensive income is allocated to non–controlling interests even if it results in a negative value for these interests.
Changes in the share in a subsidiary not resulting in a loss of control are recognised as equity transactions. The book values of
the share of the Parent Company’s owners and of the non–controlling interests are modified accordingly to reflect any changes
in the interest structure. The difference between the value by which the value of non–controlling interests is adjusted and the
fair value of the payment received or made is recognised directly in equity.
In the event of a loss of control over a subsidiary, the gain or loss on the disposal is calculated as the difference between: (i) the
total fair value of the payment received and the fair value of the entity’s shares remaining with the Parent Company, and (ii) the
book value of assets (together with goodwill), liabilities and non–controlling interests. Amounts recognised for the entity being
sold under other items of comprehensive income are reclassified to the income or expense for the period. The fair value of
assets in the entity remaining with the Parent Company following the disposal is treated as the initial fair value for the purpose
of their subsequent disclosure under IAS 39, or initial cost of shares in associates or joint ventures.
4.1.3 Goodwill
Goodwill occurring at acquisition results from a surplus, as at the date of acquisition, of the sum of the payment made, the value
of non–controlling interests and the fair value of previously held shares in the target over the Parent Company’s share in the net
fair value of identifiable assets, liabilities and contingent liabilities of the entity, recognised as at the date of acquisition.
If a negative value occurs, another review is performed of the fair value calculations for each net asset being acquired. If the
value remains negative after the review, it is promptly disclosed under profit or loss.
Goodwill is initially disclosed as an asset at purchase price being the amount of the above–mentioned surplus, and then
measured at purchase price less accumulated impairment loss.
For the purpose of testing for impairment, goodwill is allocated to individual cash–generating units that should benefit from
synergies resulting from the combination. Cash–generating units to which goodwill is allocated are tested for impairment once
a year or more often, if there are reasonable grounds to suspect that impairment has occurred. If the recoverable amount of a
cash–generating unit is lower than its carrying amount, impairment loss is first allocated to reduce the carrying amount of
goodwill allocated to that unit, and then to other assets of that unit in proportion to the carrying amount of that entity’s assets.
Impairment loss entered for goodwill cannot be reversed in the next period.
At the time of disposal of a subsidiary or a jointly–controlled entity, the portion of goodwill allocated thereto is taken into account
in calculating the profit/loss on disposal.
Goodwill resulting from acquisition of an entity located overseas is treated as an asset of the entity located overseas and is
translated at the exchange rate in effect on the balance sheet date.
Group XTB S.A.
Consolidated financial statements for 2021
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4.2 Functional currency and reporting currency
Transactions executed in currencies other than the functional currency are entered on the basis of the exchange rate as at the
transaction date. As at the balance sheet date, the monetary assets and liabilities in foreign currencies are translated using the
average NBP rate as at that date. Non–cash items are carried based on historical cost.
The Parent Company’s functional currency is the Polish zloty, which is also the functional currency of these consolidated
financial statements.
Foreign exchange differences are reported under revenue or expenses of the period in which they occur, except for:
• foreign exchange differences regarding construction–in–progress which are included in expenses connected with such
construction–in–progress and treated as adjustments of interest expenses on loans in foreign currencies;
• foreign exchange differences arising from cash items of receivables or amounts due to foreign operations with whom no
settlements are planned, or such settlements are improbable, representing a portion of net investments into a foreign
operation and recognised under capital reserve on the translation of foreign operations and profit/loss on the disposal of a
net investment.
The following exchange rates were adopted for the purpose of measuring assets and liabilities as at the balance sheet date and
for converting items of the comprehensive income statement:
CURRENCY
CONSOLIDATED
STATEMENT
OF FINANCIAL POSITION
31.12.2021
CONSOLIDATED
STATEMENT
OF FINANCIAL POSITION
31.12.2020
CONSOLIDATED
STATEMENT
OF COMPREHENSIVE
INCOME
31.12.2021
CONSOLIDATED
STATEMENT
OF COMPREHENSIVE
INCOME
31.12.2020
USD
4,0600
3,7584
3,8757
3,9045
EUR
4,5994
4,6148
4,5775
4,4742
CZK
0,1850
0,1753
0,1785
0,1687
RON
0,9293
0,9479
0,9293
0,9239
HUF
0,0125
0,0126
−
−
GBP
5,4846
5,1327
5,3308
5,0240
TRY
0,3016
0,5029
0,4350
0,5556
CLP
0,0048
0,0053
0,0051
0,0049
4.3 Środki pieniężne i inne aktywa pieniężne
Cash and cash equivalents comprise cash in hand and bank deposits on demand. Other monetary assets are short–term, highly
liquid investments that are readily convertible to specific amounts of cash and which are subject to an insignificant risk of
changes in value. The Group classifies as cash equivalent investments which are readily convertible to a specific amount of
cash, are subject to an insignificant risk of changes in value, and with payment terms of up to three months as of the date of
acquisition.
Cash flows are inflows and outflows of cash and other monetary assets. The Group discloses cash flows from operating
activities using the indirect method, whereby profit or loss is adjusted for the effects of non–cash transactions, any deferrals or
accruals of past or future operating cash receipts or payments, and items of income or expense associated with investing or
financing cash flows and items of income or expense associated with investing or financing cash flows. Income from interest
received on cash and other monetary assets and expenses from interest paid to customers are classified under operating
activities, while expenses from interest paid under finance lease are classified under financing activities.
Cash comprises the Group’s own cash and customers’ cash. Customers’ cash is deposited in bank accounts separately from
the Group’s cash. Customers’ cash and cash equivalents are not analysed in the consolidated cash flow statements.
4.4 Financial assets and liabilities
Investments are entered as at the date of purchase and derecognised from the financial statements as at the date of sale
(transactions are recognised as on the date of conclusion) if the agreement requires their delivery on a specific date set forth
by the market, and their initial value is measured at fair value. Transaction costs of the acquisition of financial assets and
Group XTB S.A.
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liabilities at fair value through profit or loss are entered under costs for the period, while the transaction costs of other types of
assets and liabilities are recognised at the initial value of these assets and liabilities.
Financial assets are classified as
• debt instruments at amortised cost;
• debt instruments at fair value through other comprehensive income;
• equity instruments at fair value through other comprehensive income, and
• financial assets at fair value through P&L.
Financial liabilities are classified as:
• financial liabilities at fair value through P&L and
• other financial liabilities.
Financial assets classification
Financial assets are classified to the following categories:
• measured at amortised cost,
• measured at fair value through P&L,
• measured at fair value through other comprehensive income.
The Group classifies a financial asset based on the entity's business model for the management of financial assets and
characteristics of the cash flows arising from the contract for a financial asset (the so-called "SPPI criterion"). The entity
reclassifies investments in debt instruments if, and only if, the management model for those assets changes.
Initial measurement
Except for certain trade receivables, at initial recognition, an entity measures a financial asset at its fair value plus or minus, in
the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the
acquisition or issue of the financial asset.
Derecognition
Financial assets are derecognised when:
• the contractual rights to the cash flows from the financial asset expired, or
• the contractual rights to the cash flows from the financial asset were transferred and the Company transferred all risks and
rewards of ownership of the financial asset.
Subsequent measurement of financial assets
After initial recognition financial assets are classified to one of the below categories:
• debt instruments at amortised cost;
• debt instruments at fair value through other comprehensive income;
• equity instruments at fair value through other comprehensive income;
• financial assets at fair value through P&L.
4.4.1 Debt instruments measured at amortised cost
Financial asset is measured at amortised cost if both of the following conditions are met:
• the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual
cash flows;
• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
Group XTB S.A.
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4.4.2 Debt instruments measured at fair value through other comprehensive income
Financial asset is measured at fair value through other comprehensive income if both of the following conditions are met:
• the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows
and selling financial assets and
• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
Interest revenue, exchange rate differences and impairment gains or losses for a financial asset are recognized in profit or loss
and calculated in the same way as in case of financial assets measured in amortised cost. Other changes in fair value are
recognized in other comprehensive income. On derecognition of a financial asset its entirety profit or loss previously recognized
in other comprehensive income is reclassified from equity to profit or loss.
Interest revenue is calculated by using the effective interest method and recognized in profit or loss in position “Finance income”.
4.4.3 Equity instruments – financial assets measured at fair value through other
comprehensive income
At initial recognition, an entity may make an irrevocable election to present in other comprehensive income subsequent changes
in the fair value of an investment in an equity instrument that is neither held for trading nor contingent consideration recognised
by an acquirer in a business combination to which IFRS 3 applies. Such election is made separately for each equity instrument.
The cumulative gain or loss previously recognised in other comprehensive income is not subject to reclassification to profit or
loss. Dividends are recognised in profit or loss when the entity's right to receive payment of the dividend is established, unless
the dividend clearly represents a recovery of part of the cost of the investment.
4.4.4 Financial assets measured at fair value through profit or loss
Financial assets items which do not meet the criteria of measurement at amortised cost or at fair value through other
comprehensive income are measured at fair value through profit or loss.
Profit or loss form measurement of debt investments at fair value is recognized in profit or loss.
Dividends are recognized in profit or loss when the entity's right to receive payment of the dividend is established.
The Group falls into this category mainly OTC derivatives and stocks.
4.4.5 Fair value measurement
Fair value is the price that can be obtained at the date of valuation from the sale of an asset or can be paid for the transfer of
liability in an ordinary transaction between market participants.
For financial instruments available on an active market, the fair value is measured based on quoted market prices. A market is
considered to be active if the quoted prices are generally and directly available and represent current and actual transactions
concluded between unrelated parties.
For instruments for which there is no active market, the fair value is determined on the basis of valuation models.
The fair value of a financial instrument at initial recognition is the transaction price, i.e. fair value of the price paid or received.
Pursuant to IFRS 13 “Fair Value Measurement”, the Group uses valuation techniques that are appropriate in the circumstances
and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and
minimizing the use of unobservable inputs, namely:
1. valuation based on the data fully observable (active market quotations);
2. valuation models using information which does not constitute the data from Level 1, but observable, either directly or
indirectly;
3. valuation models using unobservable data (not derived from an active market).
Valuation techniques used to determine fair value are applied consistently. Change in valuation techniques resulting in a transfer
between these methods occurs when:
Group XTB S.A.
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• transfer from Method 1 to 2 takes place when, for financial instruments measured using Method 1, quoted prices from an
active market are not available at the balance sheet date (and they used to be);
• transfer from Method 2 to 3 takes place when, for financial instruments measured using Method 2, the value of parameters
not derived from the market has become material at a given balance sheet date (and it used to be immaterial).
4.4.6 Impairment of financial assets
Financial assets, aside from those carried at fair value through profit or loss, are tested for impairment at every balance sheet
date. Financial assets are impaired when there is objective evidence that the events which occurred after initial recognition of
the asset have an adverse impact on the estimated future cash flows of the given financial assets.
Concerning listed stock classified as available for sale, a material or long-term decline in share prices is considered to be
objective evidence of impairment.
For certain categories of financial assets, e.g. trade receivables, specific assets which are not considered past due, are tested
for impairment cumulatively. Objective evidence of impairment of a portfolio of receivables includes the Company’s experience
in collecting receivables; increase in the number of payments past due by 90 days on average and observable changes in the
domestic or local economic environment which are connected with cases of the untimely payment of liabilities
At each reporting date, an entity measures the loss allowance for a financial instrument at an amount equal to the lifetime
expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. At each
reporting date, an entity assesses whether the credit risk on a financial instrument has increased significantly since initial
recognition. When making the assessment, an entity uses the change in the risk of a default occurring over the expected life of
the financial instrument instead of the change in the amount of expected credit losses. To make that assessment, an entity
compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring
on the financial instrument as at the date of initial recognition and consider reasonable and supportable information, that is
available without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition.
4.4.7 Derecognition of financial assets from the balance sheet
The Group derecognises a financial asset from the balance sheet only when contractual rights to cash flows generated by the
asset expire or when the financial asset with essentially all risks and rewards of ownership of such asset is transferred to
another entity. If the Group does not transfer or retain essentially all risks and rewards of ownership of such asset, and continues
to control it, the Group recognises the retained share in such asset and related liabilities under payments due, if any. If, in turn,
the Group retains essentially all the risks and benefits of the asset transferred, it continues to recognise the relevant financial
asset. At the time of derecognising a financial asset in full, the difference between (i) the carrying amount and (ii) the sum of
payment received and any accumulated gains or losses entered under other comprehensive income, is recognised under the
income or expenses for the period.
4.4.8 Financial liabilities held for trading (at fair value through profit or loss)
In this category the Group includes financial liabilities held for trading or classified as carried at fair value through profit or loss
at initial disclosure.
A financial liability is classified as held for trading if:
• it was incurred primarily for repurchase over a short period of time;
• it is part of a specific financial instrument portfolio managed jointly by the Company in accordance with the current and
actual model for generating short–term profits; or
• it is a derivative instrument not classified and not operating as collateral.
An entity may, at initial recognition, irrevocably designate a financial liability as measured at fair value through profit or loss
when doing so results in more relevant information, because either:
a) it eliminates or significantly reduces a measurement or recognition inconsistency (sometimes referred to as ‘an accounting
mismatch’) that would otherwise arise from measuring assets or liabilities or recognising the gains and losses on them on
different bases; or
b) a group of financial liabilities or financial assets and financial liabilities is managed and its performance is evaluated on a fair
value basis, in accordance with a documented risk management or investment strategy, and information about the group is
Group XTB S.A.
Consolidated financial statements for 2021
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provided internally on that basis to the entity's key management personnel (as defined in IAS 24 Related Party Disclosures), for
example, the entity's board of directors and chief executive officer.
Financial liabilities at fair value through profit or loss are disclosed at fair value and the resulting financial profits or losses are
entered under income or expenses for the period, and the resulting financial profit or loss is recognised as the income or
expenses for the period, taking into account interest paid on a given financial liability.
4.4.9 Other financial liabilities
Other financial liabilities, including bank loans and borrowings, are initially carried at fair value less transaction costs.
Later on, they are measured at amortised cost using the effective interest rate method.
The effective interest rate method is used to calculate amortised cost of a liability and to allocate interest costs in the appropriate
period. The effective interest rate is a rate effectively discounting future cash payments in the anticipated useful life of a given
liability or a shorter period if necessary.
4.4.10 Derecognition of financial liabilities from the balance sheet
The Group derecognises financial liabilities from the balance sheet only if the appropriate liabilities of the Group are performed,
invalidated or if they expire. At the time of derecognising a financial liability, the difference between (i) the carrying amount and
(ii) the sum of payment made any accumulated gains or losses is entered under income or expenses for the period.
4.5 Contributions to the compensation scheme
The Parent Company makes obligatory payments to the compensation scheme maintained by KDPW which constitute long–
term receivables of the compensation scheme participant due from the KDPW.
Pursuant to the Act on Trading in Financial Instruments of 29 July 2005 (Journal of Laws No. 183, item 1538, as amended,
hereinafter, the “Act”), the Parent Company participates in the obligatory compensation scheme. The purpose of the
compensation scheme maintained by the KDPW is to secure the assets held in cash accounts and securities accounts of
customers of brokerage houses and banks maintaining securities accounts, in the event of their loss, in accordance with the
principles established in the Act. The compensation scheme is created from payments made by its participants and profits
generated on such payments. Payments contributed to the compensation system may be returned to a brokerage house only
when it is fully discharged from participation in the system (it winds up its operations specified in the decision on withdrawal,
repeal of a permit to provide brokerage services or expiry of such permit) and provided that such funds have not already been
used for purposes as specified. On a quarterly basis, the KDPW informs system participants of accrued profits. The Parent
Company’s payments to the compensation system are reported as expenses, under “Other costs” in the comprehensive income
statement.
The Parent Company maintains a register of payments to the compensation system and profits generated in connection with
the management of funds collected by the KDPW in the compensation scheme in a manner that enables calculation of the
balances of payments made and profits accrued.
4.6 Intangible assets
Intangible assets include the Group’s assets which do not exist physically, which are identifiable and can be reliably measured,
and which will give the Group economic benefits in the future.
Intangible assets are disclosed initially at cost of acquisition or production. As at the balance sheet date, intangible assets are
carried at cost less accumulated amortisation and impairment write–offs, if any.
Intangible assets arising as a result of development works are disclosed in the statement of financial position, provided that the
following conditions are met:
• from a technical point of view, it is feasible to complete the intangible asset so that it is available for use or sale;
• it is possible to demonstrate the intent to complete the intangible asset and to use and sell it;
• the intangible asset will be fit for use or sale;
Group XTB S.A.
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• it is known how the intangible asset will generate probable future economic benefits;
• technical and financial resources necessary to complete development works and its use or sale will be provided;
• it is possible to reliably measure the expenditures attributable to the intangible asset during its development.
The expenditures attributable to the intangible asset during its development and expenditures that do not meet the above criteria
are disclosed as expenses in the comprehensive income statement as on the date they were incurred.
Amortisation of intangible assets is carried out on the basis of rates reflecting their estimated useful lives. The Group has no
intangible assets with an indefinite useful life. The straight-line method is applied to depreciate intangible assets with a definite
useful life. The useful life of the respective intangible assets is as follows:
TYPE
DEPRECIATION PERIOD
Software licences
5 years
Intangible assets manufactured internally
5 years
Other intangible assets
10 years
Intangible assets are tested for impairment, whenever there is an indication of impairment, however with regard to intangible
assets in the period of realisation, a potential impairment is defined at each balance sheet date. Effects of impairment and of
amortisation of intangible assets are disclosed under operating expenses.
Intangible assets held under finance lease agreements are depreciated over their expected useful life, in the same manner as
own assets, but for a period no longer than the term of the lease.
Gains or losses from sale / liquidation or discontinued use of items of property, plant and equipment are defined as the
difference between revenue from sales and the carrying amount of these items, and disclosed in the comprehensive income
statement.
4.7 Property, plant and equipment
Property, plant and equipment include items of property, plant and equipment as well as expenses for property, plant and
equipment under construction which the Group intends to use in connection with its operations and for administration purposes,
in a period of over 1 year, and which will bring economic benefits in the future. Expenditures on property, plant and equipment
include actual capital expenditures, as well as expenditures for future supplies of equipment and services connected with the
development of items of property, plant and equipment (prepayments made). Property, plant and equipment include significant
specialist spare parts which are elements of a tangible asset.
Property, plant and equipment and expenses for property, plant and equipment under construction are initially disclosed at cost
of acquisition or production. Significant components are also treated as separate items of property, plant and equipment. As at
the balance sheet date, property, plant and equipment is carried at cost less depreciation and impairment write-offs, if any.
Depreciation of property, plant and equipment, including their components, is carried out on the basis of rates reflecting their
estimated useful lives, and starts in the month following the month they are accepted for use. Useful life estimates are reviewed
on an annual basis. The straight-line method is applied to depreciate property, plant and equipment. The useful life of the
respective items of property, plant and equipment is as follows:
TYPE
DEPRECIATION PERIOD
Computers
5 years
Vehicles
5 years
Office furniture and equipment
from 5 to 10 years
Assets held under finance lease agreements are depreciated over their expected useful life, in the same manner as own assets,
but for a period no longer than the term of lease.
Gains or losses from sale / liquidation or discontinued use of items of property, plant and equipment are defined as the
difference between revenue from sales and the carrying amount of these items, and disclosed in the comprehensive income
statement.
Group XTB S.A.
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 22
4.8 Lease
IFRS 16 introduces a unitary model of the lessee's accounting and requires the lessee to recognize assets and liabilities resulting
from each lease with a period exceeding 12 months, unless the underlying asset is of low value. At the commencement date,
the lessee recognizes an asset representing the right to use the underlying asset and a liability to make lease payments.
Identifying a lease
At new contract inception, the Group assesses whether the contract is a lease or whether it contains a lease. An agreement is
a lease or contains a lease if it transfers the right to control the use of an identified asset for a given period in exchange for
remuneration. In order to assess if an agreement transfers the right to control the use of an identified asset for a given period,
the Group shall determine whether throughout the entire period of use the customer enjoys the following rights:
a) the right to obtain substantially all economic benefits from the use of the identified asset and
b) the right to manage the use of the identified asset.
Should the Group have the right to control the use of an identified asset for part of the duration of an agreement only, the
agreement contains a lease in respect of this part of the period.
Rights resulting from lease, rental, hire or other agreements which meet the definition of a lease as per IFRS 16 are recognised
as right of use underlying assets within the framework of non-current assets with a corresponding lease liabilities.
Initial recognition and measurement
The Group recognises the right of use asset as well as the lease liability on the date of commencement of the lease.
On the date of commencement the Group measured the right of use asset at cost.
The cost of the right of use asset is inclusive of the following:
a) the amount of the initial measurement of the lease liability,
b) all lease payments paid on or before the date of commencement, less any lease incentives received,
c) all initial costs directly incurred by the lessee, and
d) estimated costs to be incurred by the lessee in connection with the dismantling and removal of underlying assets, the
refurbishment of premises within which they were located, or the refurbishment of underlying assets to the condition required
by the terms and conditions of the lease.
Lease payments included in the evaluation of lease liability include:
- fixed lease payments;
- variable lease payments, which depend on an index or a rate, initially measured using the index or rate as at the commencement
date;
- amounts that are expected to be paid by the lessee as part of the guaranteed residual value;
- the call exercise price, should it be assumed with reasonable certainty that the Group shall decide to exercise the call option;
- penalty payments for termination of a lease, unless it can be assumed with reasonable certainty that the Group shall not
terminate the lease.
Variable payments, which do not depend on an index or a rate should not be taken into account when calculating lease liability.
Such payments are recognised in the profit or loss in the period of the occurrence which renders them payable.
The lease liability on the commencement date shall be calculated on the basis of the current lease payments that are payable
by that date and discounted by the marginal interest rates of the lessee.
The Group does not discount lease liabilities by the lease interest rate as the calculation of such rates requires information
known only to the lessor (the non-guaranteed residual value of the leased asset as well as the direct costs incurred by the
lessor).
Determining the lessee’s marginal interest rate
Marginal interest rates were specified as the sum of:
a) the risk free rate, based on the Interest Rate Swap (IRS) in accordance with the maturity of the discount rate, and the relevant
basic rate for the given currency, as well as
b) the Group's credit risk premium based on the credit margin calculated inclusive of the credit risk segmentation of all
companies which have entered into lease agreements.
Subsequent measurement
After the commencement date, the lessee measures the right of use asset applying the cost model.
Group XTB S.A.
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 23
In applying the cost model, the lessee shall measure the cost of the right of use asset:
a) less any accumulated depreciation and accumulated impairment losses; and
b) adjusted in respect of any updates to the measurement of lease liability not resulting in the necessity for recognition of a
separate asset.
After the date of commencement the lessee shall measure the lease liability by:
a) increasing the carrying amount to reflect interest on the lease liability,
b) decreasing the carrying amount to reflect the leasing payments made, and
c) remeasuring of the carrying amount to reflect any reassessment or lease modifications or to revise in-substance fixed lease
payments.
The Group shall remeasure the lease liability in cases where there is a change in future lease payments as a result of a change
in the index or rate used to determine lease payments (e.g. a change in payment associated with the right of perpetual use), in
cases where there is a change in the amount expected by the Group to be payable under the residual amount guarantee, or if
the Group reassesses the likelihood of the exercise of the call option, or the extension or termination of the lease.
Updated of the lease liability also adjusts the value of the right of use asset. In a situation where the carrying amount of the right
of use asset has been reduced to zero, further reductions in the measurement of the lease liability shall be recognised by the
Group as profit or loss.
Depreciation
The right of use asset is depreciated linearly over the shorter of the following two periods: the period of lease or the useful life
of the underlying asset. However in cases where the Group can be reasonably sure that it will regain ownership of the asset
prior to the end of the lease term, right of use shall be depreciated from the day of commencement of the lease until the end of
the useful life of the asset.
Impairment
The Group applies IAS 36 Impairment of Assets to determine whether the right of use asset is impaired and to account for any
impairment loss identified.
Simplifications and practical solutions in the application of IFRS 16
Short-term lease
The Group applies a practical solution to short-term lease contracts, which are characterised by contract term to 12 months.
Simplifications regarding these contracts involve the settlement of lease payments as costs:
- on a straight-line basis, for the duration of the lease agreement, or
- another systematic method, if it better reflects the way of spreading the benefits gained by the user in time.
Leases of low-value assets
The Group does not apply the rules concerning recognition, measurement and presentation outlined in IFRS 16 to lease
agreements of low-value assets. Low-value assets are considered to be those which have a value when new not higher than
PLN 43 thousand translated at the exchange rate of the first day of application, i.e. 1 January 2019 (representing EUR 10
thousand) or the equivalent value in another currency as per the average closing rate of exchange of the National Bank of Poland
at the moment of initial recognition of a contract.
Simplifications in respect of such contracts are due to the settlement of costs on a straight-line basis for the term of the lease
contract.
An asset covered by a lease must not be counted as a low-value asset if the asset would typically not be of low value when new.
As low-value items, the Group includes for example: coffee machines, printers and small items of furniture.
The underlying asset may have a low-value only if:
a) the lessee may benefit from use of the underlying asset itself or with other resources which are readily available to him, and
b) the underlying asset is not highly dependent on or related to other assets.
4.9 Impairment of property, plant and equipment and intangible assets except goodwill
As at each balance sheet date, the Group reviews the carrying amounts of its property, plant and equipment and intangible
assets for indications of impairment. If such indications are identified, the Group estimates the recoverable amount of a given
asset in order to determine the potential write-down thereon. When an asset does not generate cash flows that are largely
Group XTB S.A.
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 24
independent of those from other assets, an analysis is carried out for the Group’s cash-generating assets to which a given asset
belongs. Where it is possible to specify a reliable and uniform allocation basis, the Group’s property, plant and equipment are
allocated to the relevant cash-generating units or the smallest clusters of cash-generating units for which such reliable and
uniform allocation bases can be established.
For intangible assets with an indefinite useful life, an impairment test is performed yearly and whenever there are any indications
of potential impairment.
The recoverable amount is calculated as the higher of: fair value less selling costs or value-in-use. The latter value represents
the current value of estimated future cash flows discounted using the discount rate before tax taking into account the current
market time value of money and the asset-specific risk.
If the recoverable amount is lower than the carrying amount of an asset (or a cash-generating unit), the carrying amount of the
asset or the unit is decreased to the recoverable amount. Impairment loss is recognised promptly as the cost of the period when
it occurred.
If the impairment loss is then reversed, the net value of an asset (or a cash-generating unit) is increased to the newly estimated
recoverable amount, however no higher than the carrying amount of the assets that would be established had the impairment
loss of an asset / cash-generating unit not been recognised in the preceding years. A reversal of impairment losses is disclosed
promptly in the comprehensive income statement.
4.10 Provisions for liabilities
Provisions for liabilities are established when the Group has an existing legal or constructive obligation connected with past
events and it is probable that the performance of this obligation will result in an outflow of funds representing economic benefits,
and the amount of the liability can be reliably assessed, although the amount or maturity of the liability are not certain.
The amount of the provision recognised reflects the most accurate estimates possible of the amount required to settle the
current liability as at the balance sheet date, taking into account risk and uncertainty connected with this liability. In the event of
measuring a provision using the estimated cash flow method necessary to settle the current liability, its carrying amount reflects
the current value of such cash flows.
If it is probable that some or all of the economic benefits required to settle a provision can be recovered from a third party, such
receivable will be recognised as an asset, provided that the probability of recovery is sufficiently high and can be reliably
assessed.
4.10.1 Onerous contracts
Current liabilities under onerous contracts are disclosed as provisions. A contract entered into by the Group is considered to be
onerous if it involves inevitable costs of performance of contractual obligations whose value exceeds the value of economic
benefits expected under the contract.
4.11 Equity
Equity includes capitals and funds established in compliance with the mandatory legal regulations, i.e. applicable laws and the
statute. Retained profit is also disclosed under equity. Share capital is disclosed in the amount set out in the Parent Company’s
Statute. Unregistered payments to the share capital are disclosed under the Parent Company’s equity and reported in the
nominal amount of the payment received.
4.12 Customers’ financial instruments and nominal values of transactions on derivatives
(off–balance sheet items)
Off–balance sheet items include: the nominal values of derivatives in transactions executed with customers and brokers in the
OTC market, and the values of financial instruments of the Group’s customers, acquired on the regulated stock exchange market
and deposited in the accounts of the Group’s customers.
Group XTB S.A.
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 25
4.13 The result of operations on financial instruments
The result of operations on financial instruments covers all realised and unrealised income and expenses connected with trading
in financial instruments, including dividend, interest and FX rate differences. The result of operations on financial instruments is
calculated as the difference between the value of the instrument at the sale price and the purchase price.
The result of operations on financial instruments is composed of the following items:
• Result on financial assets held for trading: result on financial instruments on transactions with customers and brokers;
• The net income/(costs) on financial assets held to maturity: result on debt securities (interest result calculated using the
effective interest rate method);
• Gains from the sale of investments in a subsidiary;
Discounts for customers and commissions for introducing brokers depend on the actual volume of trading in the financial
instruments. This item decreases the result on transactions in financial instruments.
4.14 Fee and commission income and expenses
Fee and commission income includes brokerage fees and other charges against financial services charged to customers, and
is disclosed at the date when the customer enters into a given transaction.
Fee and commission expenses are connected with financial brokerage services acquired by the Group, and disclosed at the
date when the services were provided.
4.15 Cost of employee benefits
Short–term employee benefits, including specific contributions to benefit schemes, are disclosed in the period when the Group
received a given benefit from an employee, and in the case of profit distribution or bonus payments, when the following
conditions are met:
• the entity has a present legal or constructive obligation to make such payments as a result of past events; and
• a reliable estimate of the obligation can be made.
For paid leave benefits, employee benefits are recognised to the extent of accumulated paid leave, at the time of performance
of work that increases the entitlement to future paid absences (provision for unused holidays). Non–accumulating paid
absences are recognised when the absences occur.
Post–employment benefits in the form of benefit schemes (retirement severance pays) and other long–term benefits (length
of service bonuses, etc.) are determined using the projected personal right method, with an actuarial valuation performed at
each balance sheet date. Actuarial gains and losses are disclosed in full in the comprehensive income statement. Past service
costs are recognised promptly to the extent in which they pertain to benefits already gained, and in other cases amortised with
the straight line method for the average period after which such benefits are gained.
Pursuant to the requirements of the Regulation of the Minister of Finance of 2 December 2011 on the principles of defining the
policy of variable remuneration elements for the management staff by brokerage houses, starting from 2012, the Parent
Company applies the policy of variable remuneration elements for the persons occupying key positions. Benefits granted to the
employees within the framework of the Program of variable remuneration elements are granted in cash – 50 per cent and in the
form of the financial instruments whose value is related to the Parent Company’s financial standing – 50 per cent. The part of
benefits granted in the form of financial instruments whose value is related to the Parent Company’s financial standing, is paid
in cash within three years after the date of being granted. The provision for employee benefits due to variable remuneration
elements is recognised in accordance with IAS 19 in the comprehensive income statement in “Employee benefits and
remuneration”.
Group XTB S.A.
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 26
4.16 Finance income and costs
Finance income includes interest income on funds invested by the Group. Finance costs consist of interest expense paid to
customers, interest on finance lease paid and other interest on liabilities other than relating to result of operations on financial
instruments.
Interest income and expenses are disclosed in profits or losses of the current period, using the effective interest rate method.
Dividend income is disclosed at the time when the shareholders’ right to obtain such dividend is established.
Finance income and costs also include gains and losses arising from foreign exchange rate differences, disclosed in net
amounts.
4.17 Tax
The entity’s income tax comprises current tax due and deferred tax.
4.17.1 Current tax
Current tax liability is calculated on the basis of the tax result (taxable base) for a given financial year. The tax profit (loss) is
different from the accounting net profit (loss) because it does not include non–taxable income and non–deductible expenses.
Tax expenses are calculated on the basis of tax rates in force in a given financial year and pursuant to the tax regulations of the
countries in which the branches of the Parent Company and its subsidiaries are located.
Regulations concerning the tax on goods and services, corporate income tax and the burden of social insurance are subject to
frequent changes. These frequent changes result in lack of appropriate benchmarks, inconsistent interpretations and few
established precedents that could be applied. The current regulations also contain uncertainties, resulting in differences in
opinion regarding the legal interpretation of tax regulations both between government bodies and companies.
Tax settlements and other areas of activity (for example, customs or foreign exchange) may be subject to inspection by control
authorities that are entitled to impose high penalties and fines, and any additional tax liabilities resulting from inspections must
be paid together with high interest. These conditions cause that tax risk in Poland is higher than in countries with more mature
tax systems.
Consequently, the amounts reported and disclosed in the financial statements may change in the future as a result of a final
decision of the tax audit.
On 15 July 2016 changes have been introduced to the Tax Code to take into account the provisions of the General Anti Avoidance
Rules (GAAR). GAAR is to prevent the formation and use of artificial legal structures created in order to avoid payment of tax in
Poland. GAAR defines tax avoidance operation as an action made primarily in order to achieve a tax advantage being in conflict
with the subject and purpose of the provisions of the Tax Act. According to GAAR such activity does not result in the achievement
of a tax advantage if the behaviour was artificial. Any occurrence of (i) unjustified sharing operations, (ii) the involvement of
intermediaries, despite the lack of economic justification or business, (iii) the elements mutually terminating or compensating,
and (iv) other actions with a similar effect to the aforementioned, may be treated as a condition of existence false operations
covered by GAAR. The new regulations will require greater judgment when assessing the tax consequences of particular
transactions.
GAAR clause should apply to transactions made after its entry into force and to the transactions that were carried out prior to
the entry into force of the GAAR clause but for which the benefits have been achieved or are still. The implementation of these
regulations will enable the Polish tax authorities to question legal arrangements and agreements carried out by the taxpayers,
such as restructuring and group reorganization.
4.17.2 Deferred income tax
Deferred tax is calculated using the balance sheet method, based on differences between the carrying amounts of assets and
liabilities and corresponding tax values used to calculate the tax basis.
Deferred tax liability is established on all taxable positive temporary differences, while deferred tax assets are recognised up to
the probable amount of a reduction in future taxable profit by recognised deductible temporary differences and tax losses or
credits that the Group may use.
Group XTB S.A.
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 27
The value of deferred tax assets is assessed as on each balance sheet date and if the expected future taxable profits are not
sufficient to realise an asset or its portion, a write-down will be performed.
Deferred tax is calculated based on tax rates that will be applicable when the asset is realised or the liability becomes due. In
the statement of financial position, deferred tax is disclosed upon off-set to the extent that it applies to the same tax residency.
4.17.3 Current and deferred tax for the current reporting period
Current and deferred tax is disclosed in the comprehensive income statement, except for cases in which it pertains to items
that credit or debit other comprehensive income directly, because then the tax is also disclosed in the other comprehensive
income statement, or when it is the result of an initial calculation of a business combination.
4.18 Earnings per share
Earnings per share for each period is calculated by dividing the net profit for the period by the weighted average number of
shares outstanding during the reporting period.
5. Operating income
5.1 Result of operations in financial instruments
(IN PLN’000)
TWELVE-MONTH
PERIOD ENDED
31.12.2021
TWELVE-MONTH
PERIOD ENDED
31.12.2020
Financial instruments (CFD)
Commodity CFDs
313 948
263 949
Index CFDs
209 304
425 917
Currency CFDs
79 761
91 951
Stock and ETF CFDs
34 885
12 885
Bond CFDs
223
198
Total CFDs
638 121
794 900
Stocks and ETFs
(689)
4 988
Gross gain on transactions in financial instruments
637 432
799 888
Bonuses and discounts paid to customers
(2 700)
(1 580)
Commission paid to cooperating brokers
(16 279)
(5 520)
Net gain on transactions in financial instruments
618 453
792 788
Bonuses paid to clients are strictly related to trading in financial instruments by the customer with Group
The Group concludes cooperation agreements with introducing brokers who receive commissions which depend on the trade
generated under the cooperation agreements. The income generated and the costs incurred between the Group and particular
brokers relate to the trade between the broker and customers that are not his customers.
The Group’s operating incomes is generated from: (i) spreads (the differences between the “offer” price and the “bid” price); (ii)
net results (gains offset by losses) from Group’s market making activities; (iii) fees and commissions charged by the Group to
its clients; and (iv) swap points charged (being the amounts resulting from the difference between the notional forward rate and
the spot rate of a given financial instrument). The table below presents percentage share of income categories in gross gain on
transactions in financial instruments.
TWELVE-MONTH
PERIOD ENDED
31.12.2021
TWELVE-MONTH
PERIOD ENDED
31.12.2020
Spread
83%
54%
Market Making
-23%
30%
Swap, fees and commissions
40%
16%
Gross gain on transactions in financial instruments
(excluding dividends from subsidiaries).
100%
100%
Group XTB S.A.
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 28
5.2 Income from fees and charges
(IN PLN’000)
TWELVE-MONTH
PERIOD ENDED
31.12.2021
TWELVE-MONTH
PERIOD ENDED
31.12.2020
Fees and charges from institutional clients
2 754
2 869
Fees and charges from retail clients
2 280
1 970
Total income from fees and charges
5 034
4 839
5.3 Geographical areas
(IN PLN’000)
TWELVE-MONTH
PERIOD ENDED
31.12.2021
TWELVE-MONTH
PERIOD ENDED
31.12.2020
Operating income
Central and Eastern Europe
327 289
404 414
- including Poland
209 804
295 148
Western Europe
165 349
303 177
Latin America *
127 745
90 159
Middle East
5 212
−
Total operating income
625 595
797 750
*Subsidiary XTB International Ltd. with its seat in Belize acquires its customers from Latin America and the rest of the world.
The countries from which the Group derives each time 20% and over of its revenue is with a share of 33.5% (2020: 37.0%). Due
to the overall share in the Group’s revenue Poland was set apart for presentation purposes within the geographical area. The
share of other countries in the structure of the Group’s revenue by geographical area does not in any case exceed 20%.
The Group breaks its revenue down into geographical area by country in which a given customer was acquired.
6. Salaries and employee benefits
(IN PLN’000)
TWELVE-MONTH
PERIOD ENDED
31.12.2021
TWELVE-MONTH
PERIOD ENDED
31.12.2020
Salaries
(111 212)
(99 616)
Social insurance and other benefits
(16 997)
(16 004)
Employee benefits
(3 053)
(3 521)
Total salaries and employee benefits
(131 262)
(119 141)
7. Marketing
(IN PLN’000)
TWELVE-MONTH
PERIOD ENDED
31.12.2021
TWELVE-MONTH
PERIOD ENDED
31.12.2020
Marketing online
(114 373)
(83 279)
Marketing offline
(5 728)
(4 442)
Competitions for clients
−
(10)
Total marketing
(120 101)
(87 731)
Marketing activities carried out by the Group are mainly focused on Internet marketing, which is also supported by other
marketing activities.
Group XTB S.A.
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 29
8. Costs of maintenance and lease of buildings
(IN PLN’000)
TWELVE-MONTH
PERIOD ENDED
31.12.2021
TWELVE-MONTH
PERIOD ENDED
31.12.2020
Maintenance costs
(3 123)
(2 690)
Costs for renting low-value or short-term tangible assets
(599)
(423)
Other costs
(685)
(675)
Total costs of maintenance and lease of buildings
(4 407)
(3 788)
9. Other external services
(IN PLN’000)
TWELVE-MONTH
PERIOD ENDED
31.12.2021
TWELVE-MONTH
PERIOD ENDED
31.12.2020
Support database systems
(14 492)
(10 036)
Market data delivery
(7 381)
(6 014)
Legal and advisory services
(6 928)
(5 150)
Internet and telecommunications
(3 486)
(2 718)
Accounting and audit services
(2 124)
(1 905)
IT support services
(1 535)
(1 919)
Recruitment
(1 087)
(491)
Postal and courier services
(441)
(303)
Translation
(116)
(101)
Other external services
(844)
(806)
Total other external services
(38 434)
(29 443)
10. Commission expenses
(IN PLN’000)
TWELVE-MONTH
PERIOD ENDED
31.12.2021
TWELVE-MONTH
PERIOD ENDED
31.12.2020
Bank commissions
(29 863)
(19 002)
Stock exchange fees and charges
(5 256)
(3 016)
Commissions of foreign brokers
(1 068)
(521)
Total commission expenses
(36 187)
(22 539)
11. Other expenses
(IN PLN’000)
TWELVE-MONTH
PERIOD ENDED
31.12.2021
TWELVE-MONTH
PERIOD ENDED
31.12.2020
Materials
(1 161)
(877)
Liquidation of fixed assets
(560)
(16)
Insurance
(540)
(278)
Business trips
(468)
(204)
Receivables impairment write–downs
(430)
(1 049)
Representation
(205)
(61)
Business trips
(41)
(77)
Costs relating to legal risk
−
(4 892)
Other
(682)
(432)
Total other expenses
(4 087)
(7 886)
Write-downs of receivables are the result of the debit balances which arose in customers’ accounts in that period.
Group XTB S.A.
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 30
12. Finance income and costs
(IN PLN’000)
TWELVE-MONTH
PERIOD ENDED
31.12.2021
TWELVE-MONTH
PERIOD ENDED
31.12.2020
Interest income
Interest on own cash
354
1 350
Interest on customers’ cash
24
225
Total interest income
378
1 575
Positive exchange differences
17 352
−
Other finance income
161
114
Income on bonds
−
4 168
Total finance income
17 891
5 857
(IN PLN’000)
TWELVE-MONTH
PERIOD ENDED
31.12.2021
TWELVE-MONTH
PERIOD ENDED
31.12.2020
Interest expense
Interest paid to customers
−
(2)
Interest paid under lease agreements
(314)
(306)
Other interest
(123)
(93)
Total interest expense
(437)
(401)
Loss on bonds
(3 808)
−
Other finance costs
(13)
−
Foreign exchange losses
−
(22 505)
Total finance costs
(4 258)
(22 906)
Foreign exchange losses presented in 2020 result mainly from reduction the share capital of subsidiary in Turkey what is
presented in note 1.2.
Foreign exchange differences relate to unrealised differences on the measurement of balance sheet items denominated in a
currency other than the functional currency.
13. Segment information
For management reporting purposes, the Group’s operations are divided into the following two business segments:
1. Retail operations, which include the provision of trading in financial instruments for individual customers.
2. Institutional activity, which includes the provision of trading in financial instruments and offering trade infrastructure to
entities (institutions), which in turn provide services of trading in financial instruments for their own customers under their
own brand.
These segments do not aggregate other lower-level segments. The management monitors the results of the operating
segments separately, in order to decide on the implementation of strategies, allocation of resources and performance
assessment. Operations in segment are assessed on the basis of segment profitability and its impact on the overall profitability
reported in the financial statements.
Transfer prices between operating segments are based on market prices, according to the principles similar to those applied in
settlements with unrelated parties.
The Group concludes transactions only with external clients. Transactions between operating segments are not concluded.
Valuation of assets and liabilities, incomes and expenses of segments is based on the accounting policies applied by the
Company.
The Group does not allocate financial activity and corporate income tax burden on business segments.
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 31
CONSOLIDATED COMPREHENSIVE INCOME STATEMENT
FOR TWELVE-MONTH PERIOD ENDED31.12.2021
(IN PLN’000)
RETAIL
OPERATIONS
INSTITUTIONAL
OPERATIONS
TOTAL
REPORTING
SEGMENTS
CONSOLIDATED
COMPREHENSIVE
INCOME STATEMENT
Net result on transactions in financial instruments
619 222
(769)
618 453
618 453
CFDs
Commodity CFDs
310 714
3 234
313 948
313 948
Index CFDs
212 081
(2 777)
209 304
209 304
Currency CFDs
79 689
72
79 761
79 761
Stock and ETF CFDs
36 174
(1 289)
34 885
34 885
Bond CFDs
232
(9)
223
223
Stocks and ETFs
(689)
−
(689)
(689)
Bonuses and discounts paid to customers
(2 700)
−
(2 700)
(2 700)
Commission paid to cooperating brokers
(16 279)
−
(16 279)
(16 279)
Fee and commission income
2 280
2 754
5 034
5 034
Other income
2 108
−
2 108
2 108
Total operating income
623 610
1 985
625 595
625 595
Salaries and employee benefits
(129 835)
(1 427)
(131 262)
(131 262)
Marketing
(119 427)
(674)
(120 101)
(120 101)
Other external services
(36 883)
(1 551)
(38 434)
(38 434)
Commission expense
(36 174)
(13)
(36 187)
(36 187)
Amortization and depreciation
(8 823)
(98)
(8 921)
(8 921)
Taxes and fees
(5 339)
(34)
(5 373)
(5 373)
Cost of maintenance and lease of buildings
(4 372)
(35)
(4 407)
(4 407)
Other expenses
(3 933)
(154)
(4 087)
(4 087)
Total operating expenses
(344 786)
(3 986)
(348 772)
(348 772)
Operating profit
278 824
(2 001)
276 823
276 823
Finance income
−
−
−
17 891
Finance costs
−
−
−
(4 258)
Profit before tax
−
−
−
290 456
Income tax
−
−
−
(52 626)
Net profit
−
−
−
237 830
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 32
ASSETS AND LIABILITIES AS AT 31.12.2021
(IN PLN’000)
RETAIL
OPERATIONS
INSTITUTIONAL
OPERATIONS
TOTAL
REPORTING
SEGMENTS
CONSOLIDATED
COMPREHENSIVE
INCOME STATEMENT
Customers’ cash and cash equivalents
1 719 559
67 310
1 786 869
1 786 869
Financial assets at fair value through P&L
686 492
17 054
703 546
703 546
Other assets
656 866
462
657 328
657 328
Total assets
3 062 917
84 826
3 147 743
3 147 743
Amounts due to customers
1 943 368
67 122
2 010 490
2 010 490
Financial liabilities held for trading
114 555
13 157
127 712
127 712
Other liabilities
93 980
1
93 981
93 981
Total liabilities
2 151 903
80 280
2 232 183
2 232 183
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 33
CONSOLIDATED COMPREHENSIVE INCOME STATEMENT
FOR TWELVE-MONTH PERIOD ENDED31.12.2020
(IN PLN’000)
RETAIL
OPERATIONS
INSTITUTIONAL
OPERATIONS
TOTAL
REPORTING
SEGMENTS
CONSOLIDATED
COMPREHENSIVE
INCOME STATEMENT
Net result on transactions in financial instruments
690 726
102 062
792 788
792 788
CFDs
Index CFDs
370 073
55 844
425 917
425 917
Commodity CFDs
217 043
46 906
263 949
263 949
Currency CFDs
89 228
2 723
91 951
91 951
Stock and ETF CFDs
16 506
(3 621)
12 885
12 885
Bond CFDs
(12)
210
198
198
Bond CFDs
4 988
−
4 988
4 988
Stocks and ETFs
(1 580)
−
(1 580)
(1 580)
Bonuses and discounts paid to customers
(5 520)
−
(5 520)
(5 520)
Commission paid to cooperating brokers
1 970
2 869
4 839
4 839
Fee and commission income
123
−
123
123
Other income
692 819
104 931
797 750
797 750
Total operating income
(117 000)
(2 141)
(119 141)
(119 141)
Salaries and employee benefits
(86 835)
(896)
(87 731)
(87 731)
Marketing
(28 322)
(1 121)
(29 443)
(29 443)
Commission expense
(22 406)
(133)
(22 539)
(22 539)
Amortization and depreciation
(7 655)
(98)
(7 753)
(7 753)
Cost of maintenance and lease of buildings
(3 754)
(34)
(3 788)
(3 788)
Taxes and fees
(3 689)
(34)
(3 723)
(3 723)
Other expenses
(7 656)
(230)
(7 886)
(7 886)
Total operating expenses
(277 317)
(4 687)
(282 004)
(282 004)
Operating profit
415 502
100 244
515 746
515 746
Finance income
−
−
−
5 857
Finance costs
−
−
−
(22 906)
Profit before tax
−
−
−
498 697
Income tax
−
−
−
(96 610)
Net profit
−
−
−
402 087
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 34
ASSETS AND LIABILITIES AS AT 31.12.2020
(IN PLN’000)
RETAIL
OPERATIONS
INSTITUTIONAL
OPERATIONS
TOTAL
REPORTING
SEGMENTS
CONSOLIDATED
COMPREHENSIVE
INCOME STATEMENT
Customers’ cash and cash equivalents
976 720
56 882
1 033 602
1 033 602
Financial assets at fair value through P&L
648 934
14 199
663 133
663 133
Other assets
586 564
227
586 791
586 791
Total assets
2 212 218
71 308
2 283 526
2 283 526
Amounts due to customers
1 145 630
57 613
1 203 243
1 203 243
Financial liabilities held for trading
86 525
10 107
96 632
96 632
Other liabilities
95 346
−
95 346
95 346
Total liabilities
1 327 501
67 720
1 395 221
1 395 221
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 35
14. Cash and cash equivalents
Broken down by type:
(IN PLN’000)
31.12.2021
31.12.2020
In hand
−
1
In current bank accounts
2 376 261
1 575 806
Cash and cash equivalents in total
2 376 261
1 575 807
Own cash and restricted cash – customers’ cash:
(IN PLN’000)
31.12.2021
31.12.2020
Customers’ cash and cash equivalents
1 786 869
1 033 602
Own cash and cash equivalents
589 392
542 205
Cash and cash equivalents in total
2 376 261
1 575 807
Customers’ cash and cash equivalents include the value of clients’ open transactions.
15. Financial assets at fair value through P&L
(IN PLN’000)
31.12.2021
31.12.2020
Index CFDs
113 353
133 307
Currency CFDs
89 476
41 609
Stock and ETF CFDs
80 244
36 396
Commodity CFDs
67 036
43 975
Bond CFDs
28
14
Debt instruments
331 926
398 616
Stocks and ETFs
21 483
9 216
Total financial assets at fair value through P&L
703 546
663 133
Detailed information on the estimated fair value of the instrument is presented in note 37.1.1.
16. Financial assets at amortised cost
(IN PLN’000)
31.12.2021
31.12.2020
Receivables due from clients
4 629
4 453
Trade receivables
21 864
10 366
Deposits
4 289
2 478
Statutory receivables
968
1 081
Gross other receivables
31 750
18 378
Impairment write-downs of receivables
(1 108)
(1 207)
Impairment write-downs of receivables due from clients
(4 074)
(3 861)
Total net other receivables
26 568
13 310
Movements in impairment write-downs of receivables
(IN PLN’000)
31.12.2021
31.12.2020
Impairment write-downs of receivables – at the beginning of the reporting period
(5 068)
(4 051)
Write-downs recorded
(791)
(1 095)
Write-downs reversed
361
46
Write-downs utilized
316
32
Impairment write-downs of receivables – at the end of the reporting period
(5 182)
(5 068)
Write-downs of receivables in 2021 and 2020 resulted from the debit balances which arose in customers’ accounts in those
periods.
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 36
17. Prepayments and deferred costs
(IN PLN’000)
31.12.2021
31.12.2020
Advertising
2 075
857
CRM
2 026
1 461
Licenses and news services
1 524
959
Database application
850
1 122
Prepaid rent
543
220
Insurance
300
277
Other
1 319
501
Total prepayments and deferred costs
8 637
5 397
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 37
18. Intangible assets
Intangible assets in the period from 1 January 2021 to 31 December 2021
(IN PLN’000)
LICENCES FOR COMPUTER
SOFTWARE
INTANGIBLE ASSETS
MANUFACTURED INTERNALLY
OTHER
INTANGIBLE
ASSETS
TOTAL
Gross value as at 1 January 2021
5 961
10 792
4 814
21 567
Additions
210
−
−
210
Sale and scrapping
(760)
−
−
(760)
Net foreign exchange differences
11
−
−
11
Gross value as at 31 December 2021
5 422
10 792
4 814
21 028
Accumulated amortization as at 1 January 2021
(5 479)
(10 792)
(4 657)
(20 928)
Amortization for the current period
(238)
−
(26)
(264)
Sale and scrapping
760
−
−
760
Net foreign exchange differences
(11)
−
−
(11)
Accumulated amortization as at 31 December 2021
(4 968)
(10 792)
(4 683)
(20 443)
Net book value as at 1 January 2021
482
−
157
639
Net book value as at 31 December 2021
454
−
131
585
Intangible assets manufactured internally relate to a financial instrument trading platform and applications compatible with this platform. Other intangible assets relate to the separated
licence value under the acquisition of the subsidiary described in note 1.2 and client base purchased by XTB International. Client base was purchased on 18 April 2017 from company
in Chile for the amount of USD 540 thousand.
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 38
Intangible assets in the period from 1 January 2020 to 31 December 2020
(IN PLN’000)
LICENCES FOR COMPUTER
SOFTWARE
INTANGIBLE ASSETS
MANUFACTURED INTERNALLY
OTHER
INTANGIBLE
ASSETS
TOTAL
Gross value as at 1 January 2020
5 654
10 792
4 814
21 260
Additions
324
−
−
324
Sale and scrapping
(47)
−
−
(47)
Net foreign exchange differences
30
−
−
30
Gross value as at 31 December 2020
5 961
10 792
4 814
21 567
Accumulated amortization as at 1 January 2020
(5 265)
(10 792)
(4 631)
(20 688)
Amortization for the current period
(223)
−
(26)
(249)
Sale and scrapping
37
−
−
37
Net foreign exchange differences
(28)
−
−
(28)
Accumulated amortization as at 31 December 2020
(5 479)
(10 792)
(4 657)
(20 928)
Net book value as at 1 January 2020
389
−
183
572
Net book value as at 31 December 2020
482
−
157
639
Intangible assets manufactured internally relate to a financial instrument trading platform and applications compatible with this platform. Other intangible assets relate to the separated
licence value under the acquisition of the subsidiary described in note 1.2 and client base purchased by XTB International. Client base was purchased on 18 April 2017 from company
in Chile for the amount of USD 540 thousand.
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 39
19. Property, plant and equipment
Property, plant and equipment in the period from 1 January 2021 to 31 December 2021
(IN PLN’000)
COMPUTER
SYSTEMS
OTHER PROPERTY,
PLANT AND
EQUIPMENT
RIGHT TO USE
OFFICE
RIGHT TO USE
CAR
TANGIBLE FIXED
ASSETS UNDER
CONSTRUCTION
TOTAL
Gross value as at 1 January 2021
15 882
7 665
15 153
361
23
39 084
Additions
4 214
3 280
−
−
312
7 806
Lease
−
−
4 326
195
−
4 521
Sale and scrapping
(607)
(2 587)
(7 066)
(149)
−
(10 409)
Net foreign exchange differences
(53)
27
(66)
6
1
(85)
Gross value as at 31 December 2021
19 436
8 385
12 347
413
336
40 917
Accumulated amortization as at 1 January 2021
(12 364)
(6 010)
(7 207)
(243)
−
(25 824)
Amortization for the current period
(2 899)
(658)
(4 978)
(122)
−
(8 657)
Sale and scrapping
602
2 203
6 832
147
−
9 784
Net foreign exchange differences
35
(24)
(20)
(5)
−
(14)
Accumulated amortization as at 31 December 2021
(14 626)
(4 489)
(5 373)
(223)
−
(24 711)
Net book value as at 1 January 2021
3 518
1 655
7 946
118
23
13 260
Net book value as at 31 December 2021
4 810
3 896
6 974
190
336
16 206
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 40
Property, plant and equipment in the period from 1 January 2020 to 31 December 2020
(IN PLN’000)
COMPUTER
SYSTEMS
OTHER PROPERTY,
PLANT AND
EQUIPMENT
RIGHT TO USE
OFFICE
RIGHT TO USE
CAR
TANGIBLE FIXED
ASSETS UNDER
CONSTRUCTION
TOTAL
Gross value as at 1 January 2020
11 935
7 049
14 586
334
117
34 021
Additions
4 018
429
−
−
(94)
4 353
Lease
−
−
2 247
3
−
2 250
Sale and scrapping
(155)
(12)
(2 258)
−
−
(2 425)
Net foreign exchange differences
84
199
578
24
−
885
Gross value as at 31 December 2020
15 882
7 665
15 153
361
23
39 084
Accumulated amortization as at 1 January 2020
(9 926)
(5 342)
(4 456)
(104)
−
(19 828)
Amortization for the current period
(2 516)
(512)
(4 349)
(127)
−
(7 504)
Sale and scrapping
151
17
1 845
−
−
2 013
Net foreign exchange differences
(73)
(173)
(247)
(12)
−
(505)
Accumulated amortization as at 31 December 2020
(12 364)
(6 010)
(7 207)
(243)
−
(25 824)
Net book value as at 1 January 2020
2 009
1 707
10 130
230
117
14 193
Net book value as at 31 December 2020
3 518
1 655
7 946
118
23
13 260
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 41
Non-current assets by geographical area
(IN PLN’000)
31.12.2021
31.12.2020
Central and Eastern Europe
8 900
7 717
- including Poland
8 136
6 580
Western Europe
6 373
4 893
Latin America and Turkey
1 518
1 289
Total non-current assets
16 791
13 899
20. Amounts due to customers
(IN PLN’000)
31.12.2021
31.12.2020
Amounts due to retail customers
1 943 368
1 145 630
Amounts due to institutional customers
67 122
57 613
Total amounts due to customers
2 010 490
1 203 243
Amounts due to customers are connected with transactions concluded by the customers (including cash deposited in the
customers’ accounts).
21. Financial liabilities held for trading
(IN PLN’000)
31.12.2021
31.12.2020
Stock and ETF CFDs
47 536
31 427
Index CFDs
34 492
31 673
Currency CFDs
28 083
13 414
Commodity CFDs
17 356
20 113
Bond CFDs
245
5
Total financial liabilities held for trading
127 712
96 632
22. Other liabilities
(IN PLN’000)
31.12.2021
31.12.2020
Provisions for other employee benefits
21 588
27 091
Trade liabilities
18 982
15 822
Liabilities due to brokers
3 692
6 842
Statutory liabilities
3 237
3 728
Liabilities due to employees
674
506
Amounts due to the Central Securities Depository of Poland
204
178
Total other liabilities
48 377
54 167
Liabilities under employee benefits include estimates, as at the balance sheet date, of bonuses for the reporting period, including
from the Program of variable remuneration elements, as well as the provision for unused holiday leave, established in the
amount of projected benefits, which the Group is obligated to pay in the event of payment of holiday equivalents.
Program of variable remuneration elements
Pursuant to the Variable Remuneration Elements policy applied by the Parent Company, the employees of the Parent Company
in the top management positions receive annually variable remuneration paid in cash and in financial instruments.
The value of provisions for employee benefits includes variable remuneration granted in cash and based on financial
instruments, deferred for payment in three consecutive years.
As at 31 December 2021, salaries and employee benefits included the provision for variable remuneration elements in the
amount of PLN 3 013 thousand and as at 31 December 2020 in the amount of PLN 3 951 thousand.
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 42
23. Liabilities due to lease
(IN PLN’000)
31.12.2021
31.12.2020
Short- term
2 894
4 628
Long- term
4 543
4 026
Total liabilities due to lease
7 437
8 654
Liabilities due to lease do not include short-term leasing contracts and lease of low-value assets. In the period from 1 January
to 31 December 2021 the cost related to short-term leasing included in the statement of comprehensive income amounted to
PLN 202 thousand, the cost related to lease of low-value assets included in the statement of comprehensive income amounted
to PLN 58 thousand. . In the period from 1 January to 31 December 2020 the cost related to short-term leasing included in the
statement of comprehensive income amounted to PLN 760 thousand, the cost related to lease of low-value assets included in
the statement of comprehensive income amounted to PLN 73 thousand.
24. Provisions for liabilities and contingent liabilities
24.1 Provisions for liabilities
(IN PLN’000)
31.12.2021
31.12.2020
Provisions for retirement benefits
177
1 610
Provisions for legal risk
4 788
6 329
Total provisions
4 965
7 939
Provisions for retirement benefits are established on the basis of an actuarial valuation carried out in accordance with the
applicable regulations and agreements connected with obligatory retirement benefits to be covered by the employer.
Provisions for legal risk include expected amounts of payments to be made in connection with disputes to which the Group is
a party. As at the date of preparation of these financial statements, the Company is not able to specify when the above liabilities
will be repaid. The information on the significant court proceedings, arbitration authority or public administration authority was
described in point 5.2 of the Management Board report on the operations of the Group and Company. To the best of our
knowledge and belief, the procedures described therein and the future resolution of these proceedings in the context of a
possible impact on other clients of the Group do not have a material impact on these consolidated financial statements.
Movements in provisions in the period from 1 January 2021 to 31 December 2021
(IN PLN’000)
VALUE AS AT
01.01.2021
INCREASES
DECREASES
USE
DECREASES
REVERSAL
VALUE AS AT
31.12.2021
Provisions for retirement benefits
1 610
−
−
1 433
177
Provisions for legal risk
6 329
141
1 127
555
4 788
Total provisions
7 939
141
1 127
1 988
4 965
Movements in provisions in the period from 1 January 2020 to 31 December 2020
(IN PLN’000)
VALUE AS AT
01.01.2020
INCREASES
DECREASES
USE
DECREASES
REVERSAL
VALUE AS AT
31.12.2020
Provisions for retirement benefits
1 184
426
−
−
1 610
Provisions for legal risk
1 945
4 607
28
195
6 329
Total provisions
3 129
5 033
28
195
7 939
24.2 Contingent liabilities
The Group is party to a number of court proceedings associated with the Group’s operations. The proceedings in which the
Group acts as defendant relate mainly to employees’ and customers’ claims. As at 31 December 2021 the total value of claims
brought against the Group amounted to approx. PLN 15 693 thousand (as at 31 December 2020: PLN 14 801 thousand).
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 43
Company has not created provisions for the above proceedings. In the assessment of the Group there is low probability of loss
in these proceedings.
On May 9, 2014, the Parent Company issued a guarantee in the amount of PLN 61 thousand to secure an agreement concluded
by a subsidiary XTB Limited, based in the UK and PayPal (Europe) Sarl & Cie, SCA based in Luxembourg. The guarantee was
granted for the duration of the main contract, which was concluded for an indefinite period.
On 7 July 2017 the Parent Company issued a guarantee in the amount of PLN 6 033 thousand to secure the agreement
concluded between subsidiary XTB Limited based in UK and Worldpay (UK) Limited, Worldpay Limited and Worldpay AP LTD
based in UK. The guarantee was issued for the period of the agreement which was concluded for three years with the possibility
of further extension.
25. Equity
Share capital structure as at 31 December 2021 and 31 December 2020
SERIES/ISSUE
NUMBER OF
SHARES
NOMINAL VALUE OF SHARES
(IN PLN)
NOMINAL VALUE OF ISSUE
(IN PLN’000)
Series A
117 383 635
0,05
5 869
All shares in the Company have the same nominal value, are fully paid for, and carry the same voting and profit-sharing rights.
No preference is attached to any share series. The shares are A-series ordinary registered shares.
Shareholding structure of the Parent Company
To the best Parent Company’s knowledge, the shareholding structure of the Parent Company as at 31 December 2021 and 31
December 2020 was as follows:
NUMBER OF
SHARES
NOMINAL VALUE OF SHARES
(IN PLN’000)
SHARE
XXZW Investment Group S.A.
78 629 794
3 932
66,99%
Other shareholders
38 753 841
1 937
33,01%
Total
117 383 635
5 869
100,00%
Other capitals
Other capitals consist of:
• supplementary capital in the total amount of PLN 71 608 thousand, mandatorily established from annual profit distribution
to be used to cover potential losses that may occur in connection with the Company’s operations, up to the amount of at
least one third of the share capital, amounting to PLN 1 957 thousand and from surplus of the issue price over the nominal
price in the amount of PLN 69 651 thousand, resulting from the capital increase in 2012 with a nominal value of PLN 348
thousand for the price of PLN 69 999 thousand,
• reserve capital, established from annual distribution of profit as resolved by the General Meeting of Shareholders to be used
for financing of further operations of the Company or payment of dividend in the amount of PLN 598 789 thousand,
• foreign exchange differences on translation, including foreign exchange of branches and foreign operations in the amount
of PLN (449) thousand.
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 44
(IN PLN’000)
31.12.2021
31.12.2020
XTB Limited (UK)
859
(8)
X-Trade Brokers Dom Maklerski Spółka Akcyjna branch in Germany
777
796
XTB International
495
(258)
XTB Limited (CY)
471
496
X-Trade Brokers Dom Maklerski Spółka Akcyjna branch in Romania
283
287
X-Trade Brokers Dom Maklerski Spółka Akcyjna branch in France
258
275
XTB MENA Limited
217
−
XTB Services Limited
114
105
XTB Spółka Akcyjna
62
20
X-Trade Brokers Dom Maklerski Spółka Akcyjna branch in Czech Republic
47
701
X-Trade Brokers Dom Maklerski Spółka Akcyjna branch in Spain
20
463
X-Trade Brokers Dom Maklerski Spółka Akcyjna branch in Slovakia
8
136
X-Trade Brokers Dom Maklerski Spółka Akcyjna branch in Portugal
2
81
XTB Africa (PTY) Ltd.
(33)
2
XTB Chile SpA
(371)
(65)
Tasfiye Halinde XTB Yönetim Danışmanlığı A.Ş.
(3 658)
(3 022)
Total foreign exchange differences on translation
(449)
9
26. Profit distribution and dividend
Pursuant to the decision of the General Shareholders’ Meeting of the Parent Company, the net profit for 2020 in the amount of
PLN 418 176 thousand was partially earmarked for the payment of a dividend in the amount of PLN 210 117 thousand, the
remaining amount was transferred to reserve capital.
The amount of dividend per share paid for 2020 was equal to PLN 1,79. The dividend was paid on the 30 April 2021.
Pursuant to the decision of the General Shareholders’ Meeting of the Parent Company, the net profit for 2019 in the amount of
PLN 54 145 thousand was partially earmarked for the payment of a dividend in the amount of PLN 28 172 thousand, the
remaining amount was transferred to reserve capital.
The amount of dividend per share paid for 2019 was equal to PLN 0,24. The dividend paid on 15 May 2020 amounted to PLN.
27. Earnings per share
Basic earnings per share are calculated by dividing the net profit for the period attributable to shareholders of the Parent
Company by the weighted average number of ordinary shares outstanding during the period. When calculating both basic and
diluted earnings per share, the Group uses the amount of net profit attributable to shareholders of the Parent Company as the
numerator, i.e., there is no dilutive effect influencing the amount of profit (loss). The calculation of basic and diluted earnings
per share, together with a reconciliation of the weighted average diluted number of shares is presented below.
(IN PLN’000)
TWELVE-MONTH
PERIOD ENDED
31.12.2021
TWELVE-MONTH
PERIOD ENDED
31.12.2020
Profit from continuing operations attributable to shareholders of the Parent
Company
237 830
402 087
Weighted average number of ordinary shares
117 383 635
117 383 635
Shares causing dilution (share option plan)
−
−
Weighted average number of shares including dilution effect
117 383 635
117 383 635
Basic net profit per share from continuing operations for the year
attributable to shareholders of the Parent Company
2,03
3,43
Diluted net profit per share from continuing operations for the year
attributable to shareholders of the Parent Company
2,03
3,43
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 45
28. Current income tax and deferred income tax
28.1 Current income tax
Income tax disclosed in the current period’s profit and loss
(IN PLN’000)
TWELVE-MONTH
PERIOD ENDED
31.12.2021
TWELVE-MONTH
PERIOD ENDED
31.12.2020
Income tax – current portion
Income tax for the reporting period
(42 726)
(89 903)
Income tax – deferred portion
Occurrence / reversal of temporary differences
(9 900)
(6 707)
Income tax disclosed in profit and loss
(52 626)
(96 610)
Reconciliation of the actual tax burden
(IN PLN’000)
TWELVE-MONTH
PERIOD ENDED
31.12.2021
TWELVE-MONTH
PERIOD ENDED
31.12.2020
Profit before tax
290 456
498 697
Income tax based in the applicable tax rate of 19%
(55 187)
(94 752)
Difference resulting from application of tax rates applicable in other
countries
552
415
Non-taxable revenue
675
293
Non-deductible expenses
(821)
(1 080)
Realisation of tax losses for the preceding periods
26
44
Writing off tax losses activated in previous years
−
−
Other items affecting the tax burden amount
2 129
(1 530)
Income tax disclosed in profit or loss
(52 626)
(96 610)
On the basis of art 18d of Act on corporate income tax dated 15 February 1992 with further amendments the Group benefited
in 2021 from the tax burden for research and development in total amounted to PLN 4 510 thousands. In 2020 benefits from
the tax burden amounted to PLN 3 274 thousand.
28.2 Deferred income tax
28.2.1 Unrecognized deferred income tax asset
Deferred income tax was not disclosed with respect to the items below:
(IN PLN’000)
31.12.2021
31.12.2020
Tax loss
484
513
Taking into account the risks connected with further business development in foreign markets, the Company’s management
has doubts relative to certain tax credits of foreign operations and whether their respective profits will make it possible to settle
the tax losses. Therefore, no deferred tax assets connected with such tax loss in the amount of PLN 484 thousand as at 31
December 2021 and in the amount of PLN 513 thousand as at 31 December 2020.
The company did not recognize deferred tax assets on tax loss arising in France.
UNRECOGNIZED TAX LOSSES AVAILABLE FOR USE (IN PLN’000)
31.12.2021
31.12.2020
until the end of 2021
−
23
until the end of 2023
−
4
no limit
484
486
Total unrecognized tax losses available for use
484
513
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 46
28.2.2 Recognized deferred tax asset relating to tax losses
Balance of deferred tax asset relating to tax losses
RECOGNIZED TAX LOSSES TO BE UTILIZED (IN PLN’000)
31.12.2021
31.12.2020
Deferred tax on tax losses
8 524
9 217
As at 31 December 2021 the Company established deferred tax assets with regard to tax losses to be settled in future periods
in the total amount of PLN 8 524 thousand (as at 31 December 2020: PLN 9 217 thousand). The management believes that due
to dynamic development of business and growth of sales in foreign markets, the Company may generate taxable income in
future periods, and tax losses will be settled accordingly.
Deferred tax losses may be utilised over an unlimited period in France.. Forecasted results of these branches and subsidiary,
their margins and development plans assume an effective settlement of losses in the future.
28.2.3 Deferred income tax assets and deferred income tax provision
Change in the balance of deferred tax for the period from 1 January to 31 December 2021
(IN PLN’000)
AS AT
01.01.2021
PROFIT
OR (LOSS)
AS AT31.12.2021
Deferred income tax assets:
Cash and cash equivalents
−
23
23
Property, plant and equipment
138
(114)
24
Financial liabilities held for trading
14 196
4 773
18 969
Provisions for liabilities
670
(202)
468
Prepayments and deferred costs
3 453
(932)
2 521
Other liabilities
3 002
3 907
6 909
Tax losses of previous periods to be settled in future periods
9 217
(693)
8 524
Total deferred income tax assets
30 676
6 762
37 438
(IN PLN’000)
AS AT
01.01.2021
PROFIT
OR (LOSS)
AS AT31.12.2021
Deferred income tax provision:
Cash and cash equivalents
15
10
25
Financial assets at fair value through P&L
43 227
16 022
59 249
Other liabilities
203
43
246
Prepayments and deferred costs
383
(383)
−
Financial assets at amortised cost
−
671
671
Property, plant and equipment
−
299
299
Total deferred income tax provision
43 828
16 662
60 490
Deferred tax disclosed in profit or (loss)
−
(9 900)
−
(IN PLN’000)
AS AT
01.01.2021
UJĘTE W
KAPITALE
AS AT31.12.2021
Deferred income tax assets included directly in the equity:
Separate equity of branches
718
(44)
674
Total deferred income tax assets included directly in the
equity
718
(44)
674
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 47
Change in the balance of deferred tax for the period from 1 January to 31 December 2020
(IN PLN’000)
AS AT
01.01.2020
PROFIT
OR (LOSS)
AS AT31.12.2020
Deferred income tax assets:
Property, plant and equipment
81
57
138
Financial liabilities held for trading
3 809
10 387
14 196
Provisions for liabilities
24
646
670
Prepayments and deferred costs
1 551
1 902
3 453
Other liabilities
1 829
1 173
3 002
Tax losses of previous periods to be settled in future periods
8 916
301
9 217
Total deferred income tax assets
16 210
14 466
30 676
(IN PLN’000)
AS AT
01.01.2020
PROFIT
OR (LOSS)
AS AT31.12.2020
Deferred income tax provision:
Cash and cash equivalents
−
15
15
Financial assets at fair value through P&L
22 325
20 902
43 227
Other liabilities
93
110
203
Prepayments and deferred costs
237
146
383
Total deferred income tax provision
22 655
21 173
43 828
Deferred tax disclosed in profit or (loss)
−
(6 707)
−
(IN PLN’000)
AS AT
01.01.2020
UJĘTE W
KAPITALE
AS AT31.12.2020
Deferred income tax assets included directly in the equity:
Separate equity of branches
113
605
718
Total deferred income tax assets included directly in the
equity
113
605
718
Geographical division of deferred income tax assets
(IN PLN’000)
31.12.2021
31.12.2020
Deferred income tax assets
Central and Eastern Europe
153
153
Western Europe
8 540
9 234
Total deferred income tax assets
8 693
9 387
Data concerning the presentation of deferred income tax by country of origin and reconciliation of presentation in the statement
of financial position as at 31 December 2021:
(IN PLN’000)
DATA ACCORDING TO
THE NATURE OF ORIGIN
DEFERRED INCOME
TAX ASSETS
DATA ACCORDING TO
THE NATURE OF ORIGIN
DEFERRED INCOME
TAX PROVISION
DATA PRESENTED IN
THE STATEMENT OF
FINANCIAL POSITION
DEFERRED INCOME
TAX ASSETS
DATA PRESENTED IN
THE STATEMENT OF
FINANCIAL POSITION
DEFERRED INCOME
TAX PROVISION
Poland
28 676
60 547
−
31 871
Czech Republic
80
20
60
−
Slovakia
99
6
93
−
Germany
2 566
−
2 566
−
France
4 101
−
4 101
−
Great Britain
1 873
−
1 873
−
Chile
43
345
−
302
Belize
−
246
−
246
Total
37 438
61 164
8 693
32 419
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 48
Data concerning the presentation of deferred income tax by country of origin and reconciliation of presentation in the statement
of financial position as at 31 December 2020:
(IN PLN’000)
DATA ACCORDING TO
THE NATURE OF ORIGIN
DEFERRED INCOME
TAX ASSETS
DATA ACCORDING TO
THE NATURE OF ORIGIN
DEFERRED INCOME
TAX PROVISION
DATA PRESENTED IN
THE STATEMENT OF
FINANCIAL POSITION
DEFERRED INCOME
TAX ASSETS
DATA PRESENTED IN
THE STATEMENT OF
FINANCIAL POSITION
DEFERRED INCOME
TAX PROVISION
Poland
20 923
44 089
−
23 166
Czech Republic
67
−
67
−
Slovakia
102
16
86
−
Germany
2 718
−
2 718
−
France
4 647
−
4 647
−
Great Britain
1 869
−
1 869
−
Chile
350
383
−
33
Belize
−
58
−
58
Total
30 676
44 546
9 387
23 257
29. Related party transactions
29.1 Parent Company
XXZW Investment Group S.A. with its registered office in Luxembourg is the key shareholder of the Company. As at 31 December
2021 it holds 66,99% of shares and votes in the General Meeting as per Company’s best knowledge. XXZW Investment Group
S.A. prepares consolidated financial statements.
Mr. Jakub Zabłocki is the ultimate parent company for the Company and XXZW Investment Group S.A.
29.2 Figures concerning related party transactions
As at 31 December 2021 the Company has liabilities to Mr Jakub Zabłocki in the amount of PLN 19 thousand due to his
investment account (as at 31 December 2020 PLN 14 thousand). In the period from 1 January to 31 December 2021 the
Company noted loss from transactions with Mr Jakub Zabłocki in amount of PLN 2 thousand (in the analogical period of 2020
loss from transactions with Mr Jakub Zabłocki in amount of PLN 4 thousand). Moreover Mr Jakub Zabłocki is employed on the
basis of work contract in subsidiary in Great Britain. In the period from 1 January to 31 December 2021 the paid gross salary
and bonuses amounted to PLN 2 505 thousand and in the analogical period of 2020 amounted to PLN 1 393 thousand.
Mr Hubert Walentynowicz receives salary on the basis of work contract. In the period from 1 January to 31 December 2021 the
paid gross salary and bonuses amounted to PLN 487 thousand and in the analogical period of 2020 amounted to PLN 458
thousand.
In the period from 1 January to 31 December 2021 the Company noted no transactions with Mr Paweł Szejko (in the analogical
period of 2020 noted noted loss from transactions with Mr Paweł Szejko in the amount of PLN 2 thousand). As at 31 December
2021 the Company has liabilities to Mr Paweł Szejko in the amount of PLN 7 thousand due to his investment account
In the period from 1 January to 31 December 2021 the Company noted no transactions with Mr Filip Kaczmarzyk in the amount
of PLN 2 thousand (in the analogical period of 2020 noted profit from transactions with Mr Filip Kaczmarzyk in the amount of
PLN 433,16). As at 31 December 2021 the Company has liabilities to Mr Filip Kaczmarzyk in the amount of PLN 79 thousand
due to his investment account (as at 31 December 2020 PLN 42 thousand).
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 49
29.3 Benefits to Management Board and Supervisory Board
(IN PLN’000)
TWELVE-MONTH
PERIOD ENDED
31.12.2021
TWELVE-MONTH
PERIOD ENDED
31.12.2020
Benefits to the Management Board members
(3 741)
(5 098)
Benefits to the Supervisory Board members
(223)
(222)
Total benefits to the Management Board and Supervisory Board
(3 964)
(5 320)
These benefits include base salaries, bonuses, contributions to social security paid for by the employer and supplementary
benefits (money bills, healthcare, holiday allowances).
Members of the Management Board of the Company are included in the scheme of variable remuneration elements specified
in note 22 of the financial statements.
29.4 Loans granted to the Management and Supervisory Board members
As at 31 December 2021 and 31 December 2020 there are no loans granted to the Management and Supervisory Board
members.
30. Remuneration of the audit companies
REMUNERATION OF THE AUDIT COMPANIES DUE FOR THE FINANCIAL YEAR
(IN PLN’000)
TWELVE-MONTH
PERIOD ENDED
31.12.2021
TWELVE-MONTH
PERIOD ENDED
31.12.2020
Statutory audit of standalone and consolidated financial statements
425
400
Review of half-year standalone and consolidated financial statements
120
120
Statutory audit of annual financial statements of branch offices
66
64
Other certifying services
149
127
Statutory audit of annual financial statements of subsidiaries
234
222
Total remuneration of the audit companies
994
933
Above remuneration due to audit companies are net amounts.
PricewaterhouseCoopers Polska spółka z ograniczoną odpowiedzialnością Audyt sp.k was the main auditor for the Company
in 2021 and 2020. In 2021 total remuneration due to PwC companies amounted to PLN 637 thousand (in 2020: PLN 601
thousand), including 45 thousand PLN relates to other attestation services and 120 thousand semi-annual financial reviews.
31. Employment
The average number of employees in the Group was 594 persons in 2021 and 501 persons in 2020.
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 50
32. Supplementary information and explanations to the cash flow statement
32.1 Other adjustments
The “other adjustments” item includes the following adjustments:
(IN PLN’000)
TWELVE-MONTH
PERIOD ENDED
31.12.2021
TWELVE-MONTH
PERIOD ENDED
31.12.2020
Change in the balance of differences from the conversion of branches and
subsidiaries
(458)
23 646
Foreign exchange differences on translation of movements in property,
plant and equipment, and intangible assets
99
(382)
Change in other adjustments
(359)
23 264
Foreign exchange differences on translation of movements in tangible and intangible assets include the difference between the
rates as at the opening balance and as at the closing balance adopted for valuation of the gross value of tangible and intangible
assets in the Group’s foreign entities and the difference between the rate applied to value amortization and depreciation cost of
fixed assets and intangible assets in the Group’s foreign entities and the rate of translation of amortization and depreciation
amounts on such assets. This value results from the chart of movements in tangible and intangible assets.
33. Post balance sheet events
On January 1, 2022, the address of the registered office of XTB S.A. from Ogrodowa street 58, 00-876 Warsaw at Prosta street
67, 00-838 Warsaw.
On January 12, 2022, the Management Board of XTB S.A. received the decision of the District Court for the Capital City of
Warsaw, XII Commercial Division of the National Court Register on the registration of amendments to the Articles of Association
of the Company on January 5, 2022 made by Resolution No. 9 of the Extraordinary General Meeting of the Issuer of November
19, 2021 on amendments to the Articles of Association, pursuant to which the name of the entity was changed.
On February 24, 2022, Russian troops crossed the eastern, southern and northern borders of Ukraine, attacking Ukraine's military
infrastructure. In connection with the hostilities of Russia, the representatives of the European Union imposed sanctions which
were severe on Russia, which mainly concern strategic sectors of the Russian economy by blocking access to technology and
markets. This situation does not have a direct impact on the Group, however it has caused high volatility in financial markets
and declines in financial and commodity exchanges around the world.
34. Off-balance sheet items
34.1 Nominal value of financial instruments
(IN PLN’000)
31.12.2021
31.12.2020
Index CFDs
3 554 525
3 990 495
Currency CFDs
2 585 954
1 481 916
Commodity CFDs
1 600 229
1 143 499
Stock and ETF CFDs
910 224
876 726
Bond CFDs
3 813
384 593
Total financial instruments
8 654 745
7 877 229
The nominal value of instruments presented in the chart above includes transactions with customers and brokers. As at 31
December 2021 transactions with brokers represent 9% of the total nominal value of instruments (as at 31 December 2020:
14% of the total nominal value of instruments).
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 51
34.2 Customers’ financial instruments
Presented below is a list of customers’ instruments deposited in the accounts of the brokerage house:
(IN PLN’000)
31.12.2021
31.12.2020
Listed stocks, ETF and rights to stocks registered in customers’ securities
accounts
2 452 113
871 389
Other securities registered in customers’ securities accounts
207
207
Total customers’ financial instruments
2 452 320
871 596
34.3 Transaction limits
The amount of unused transaction limits granted to related entities was as at 31 December 2021 PLN 15 521 thousand and as
at 31 December 2020 was PLN 12 403 thousand.
35. Items regarding the compensation scheme
(IN PLN’000)
31.12.2021
31.12.2020
1. Contributions made to the compensation scheme
a) opening balance
5 654
4 709
- increases
1 758
945
b) closing balance
7 412
5 654
2. XTB’s share in the profits from the compensation scheme
372
336
36. Capital management
The Group’s principles of capital management are established in the “Capital management policy at XTB S.A.”. The document
is approved by the Parent Company’s Supervisory Board. The policy defines the basic concepts, objectives and rules which
constitute the Parent Company’s capital strategy. It specifies, in particular, long-term capital objectives, the current and preferred
capital structure, contingency plans and basic elements of the internal capital estimation process. The policy is updated as
appropriate so as to reflect the development in the Group and its business environment.
The objective of the capital management policy is to ensure balanced long-term growth for the shareholders and to maintain
sufficient capital to enable the Group to operate in a prudent and efficient manner. This objective is attained by maintaining an
appropriate capital base, taking into account the Group’s risk profile and prudential regulations, as well as risk-based capital
management in view of the operating goals. Determination of capital-related goals is essential for equity management and
serves as a basic reference in the context of capital planning, allocation and contingency plans. The Group establishes capital-
related objectives which ensure a stable capital base, achievement of its capital strategy goals (in accordance with its general
principles), and also match the Group’s risk appetite. To establish its capital-related goals, the Group takes into consideration
its strategic plans and expected growth of operations as well as external conditions, including the macroeconomic situation
and other business environment factors. The capital-related goals are set for a horizon similar to that of the business strategy
and are approved by the Management Board.
Capital planning is focused on an assessment of the Group’s current and future capital requirements (both regulatory and
internal), and on comparing them with the current and projected levels of available capital. The Group has prepared contingency
plans to be launched in the event of a capital liquidity shortage, described in detail in the “Capital management policy at XTB
S.A.” and in the “Recovery Plan” approved by the Polish Financial Supervision Authority.
As part of ICAAP, the Group assesses its internal capital in order to define the overall capital requirement to cover all significant
risks in the Group’s operations and evaluates its quality. The Group estimates internal capital necessary to cover identified
significant risks in compliance with procedures adopted by the Group and taking into account stress test results.
The Parent Company is obligated to maintain the capitals (equity) to cover the higher of the following values:
• capital requirements:
• till 25
th
June 2021 calculated in accordance with the Regulation (EU) of the European Parliament and of the Council No.
575/2013 of 26 June 2013 on prudential requirements for credit institutions and investment firms (CRR)
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 52
• since 26
th
June 2021 calculated according with Regulation (EU) 2019/2033 of the European Parliament and of the
Council of 27th November 2019 on the prudential requirements of investment firms and amending the regulations (EU)
No 1093/2010, (EU) No 575/2013, (EU) No 600/2014, (EU) No 806/2014 (IFR)
• internal capital estimated in compliance with the Ordinance of the Minister of Finance of 25 April 2017 on internal capital,
risk management system, supervisory assessment program and supervisory examination and evaluation as well as
remuneration policy in a brokerage house (Journal of Laws 2017, item 856).
The capital requirement calculated in accordance with the IFR regulation is the higher of:
• fixed overheads requirement
• permanent minimum initial capital requirement
• K-factor capital requirement
At date of preparation of the financial statement the highest of the above values for the Parent Company is the K-factor capital
requirement.
Till 25th June 2021 the Parent Company calculated own funds in accordance to second part of the European Parliament and of
the Council (EU) No 575/2013 of 26th 2013 on prudential requirements for credit institutions and investment firms, amending
Regulation (EU) No 648/2012 ("CRR"). Starting from 26
th
June 2021 the Parent Company calculate own funds according to the
second part of Regulation (EU) 2019/2033 of the European Parliament and of the Council 2019/2033 of 27
th
November 2019
on the prudential requirements of investment firms and amending Regulations (EU) No 1093/2010, (EU) No 575/2013, (EU) No
600/2014 and (EU) No 806/2014 ("IFR").
The principles for calculation of own funds are established in the CRR and IFR Regulations, "Procedure for calculating capital
adequacy ratios of XTB S.A." the Parent company and are not regulated by IFRS.
The Group currently has only own funds of the best category - Tier I.
Prudential consolidation in accordance with IFR covers subsidiaries that are investment firms, financial institutions, ancillary
services undertakings or tied agents. When applied to the Group, the Parent Company includes the following subsidiaries in
prudential consolidation:
• XTB Yönetim Danışmanlığı Anonim Şirketi,
• since 31st Nov 2015 XTB Limited (UK),
• since 30th April 2017 XTB International
• since 31st July 2018 XTB Limited (CY).
Pursuant to the Act of 5 August 2015 on macroprudential supervision of the financial system and crisis management, from 1st
Jan 2016 the Group was obliged to hold capital buffers requirement. In the period covered by this financial statement the Group
was obliged to hold a capital conservation buffer and a countercyclical capital buffer. Due to entry into force of IFR from 26
th
June 2021 the capital buffers requirement ceased to exist for the Group.
Key values in capital management:
(IN PLN’000)
31.12.2021
31.12.2020
The Group’s own funds
659 765
528 869
Tier I Capital
659 765
528 869
Common Equity Tier I capital
659 765
528 869
Total Group’s risk exposure *
4 120 479
2 836 093
Total Group’s capital requirement*
329 638
226 884
Capital conservation buffer
-
70 902
Countercyclical capital buffer
-
3 932
Combined buffer requirement CRR**
-
74 834
Total capital ratio CRR**
16,0%
18,6%
Total capital ratio CRR ** including buffers
16,0%
16,0%
Minimal required total capital ratio including buffers (article 92 section1
letter c) of CRR)
8%
8%
Total capital ratio IFR***
200,1%
200,1%
Minimal required total capital ratio including buffers (article 9 section1 letter
c) of IFR)***
100%
100%
* For comparativeness in the period from 26th June 2021 total risk exposure is presented as 12.5 * K-factor capital requirement. Till 25th June 2021 total capital requirement is presented as 8%
of total risk exposure.
** For comparativeness in the period from 26th June 2021 total capital ratio CRR is calculated as the IFR capital requirement divided by 12.5.
*** For comparativeness in the period till 25th June 2021 total capital ratio IFR is calculated as total capital ratio CRR including buffers multiplied by 12.5.
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 53
The mandatory capital adequacy was not breached in the periods covered by the condensed consolidated financial statements.
The table below presents data on the level of capitals and on the total capital requirement divided into requirements due to
specific types of risks calculated in accordance with separate regulations together with average monthly values. Average
monthly values were calculated as an estimation of the average values calculated based on statuses at the end of specific days.
In the table below, in order to ensure comparability of the presentation, the total capital requirement was presented as 8% of the
total risk exposure, calculated in accordance with the CRR.
(IN PLN’000)
AS AT
31.12.2021
AVERAGE MONTHLY
VALUE IN THE PERIOD
AS AT
31.12.2020
1. Capital/Own funds
659 765
602 766
528 869
1.1. Base capital/Common Equity Tier I without deductions
675 665
639 676
545 606
1.2. Additional items of common equity/Supplementary capital Tier
I
-
-
−
1.3. Items decreasing share capitals
(15 900)
(36 910)
(16 737)
2. Amount of Tier II capital included in the value of capital subject to
monitoring/Tier II capital
-
-
−
I. Level of capitals subject to monitoring/Own funds
659 765
602 766
528 869
1. Market risk
−
244 145
123 376
2. Settlement and delivery risk, contractor’s credit risk and the CVA
requirement
−
11 132
8 964
3. Credit risk
−
60 408
46 041
4. Operating risk
−
68 540
48 507
5. Exceeding the limit of exposure concentration and the limit of
high exposures
−
−
−
6. Capital requirement due to fixed overheads CRR
not applicable
not applicable
not applicable
IIa. Overall capital requirement **
329 638
384 225
226 888
IIb. Total risk exposure CRR**
4 120 479
4 802 817
2 836 093
Capital conservation buffer
−
108 349
70 902
Countercyclical capital buffer
−
6 377
3 932
IIc. Combined buffer requirement
−
114 726
74 834
1. Risk to Client, including:
7 930
6 709
−
1.1. K-AUM
−
−
−
1.2 K-CMH
7 010
5 988
−
1.3 K-ASA
868
654
−
1.4 K-COH
52
67
−
2. Risk to Market, including:
197 267
244 145
−
2.1 K-NPR
197 267
244 145
−
2.2 K-CMG
−
−
−
3. Risk to Firm, including:
124 441
141 366
−
3.1 K-TCD
122 592
139 779
−
3.2 K-DTF
1 849
1 587
−
3.3 K-CON
−
−
−
III. Total K-factor capital requirement (IFR)
329 638
392 220
−
*Average monthly values in the period in part II is calculated based on values till 25
th
June 2021. In part III average monthly values in the period is calculated based on values since 26
th
June
2021. Averages for market risk requirement, which is equivalent to K-NPR requirement, is calculated based on data from whole period covered by this financial statement.
** For comparativeness in the period from 26th June 2021 total risk exposure is presented as 12.5 * K-factor capital requirement. Till 25th June 2021 total capital requirement is presented as 8%
of total risk exposure.
Pursuant to CRR the duty to calculate the capital requirement in respect of fixed overheads arises only in the event that the
entity does not calculate the capital requirement in respect of operating risk.
According to IFR from 26
th
June 2021 the Parent Company calculates the requirement for fixed overheads. However, it is
significantly lower than the K-factor capital requirement.
37. Risk management
The Group is exposed to a variety of risks connected with its current operations. The purpose of risk management is to make
sure that the Group takes risk in a conscious and controlled manner. Risk management policies are formulated in order to
identify and measure the risks taken, as well as to establish appropriate limits to mitigate such risk on a regular basis.
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 54
At the strategy level, the Management Board is responsible for establishing and monitoring the risk management policy. All risks
are monitored and controlled with regard to profitability of the operations as well as the level of capital necessary to ensure
safety of operations from the capital requirement perspective.
The Parent Company has appointed a Risk Management Committee. Its key tasks include performing supervisory, consultative
and advisory functions for the Company’s statutory bodies in the area of capital management strategy, risk management policy,
risk measurement methods, capital planning and the Company’s capital adequacy. In particular, the Committee supports the
Risk Control Department in the area of identifying significant risks within the Company and creating a catalogue of risks,
approves policies and procedures of risk and ICAAP management, reviews and approves analyses carried out by owners of
specific risks and the Risk Control Department as part of the risk and ICAAP management system within the Company.
The Risk Control Department supports the Management Board in formulating, reviewing and updating ICAAP rules in the event
of the occurrence of new types of risk, significant changes in strategy and operating plans. The Department also monitors the
appropriateness and efficiency of the implemented risk management system, identifies, monitors and controls the market risk
of the Company’s own investments, defines the overall capital requirement and estimates internal capital.
The Risk Control Department is managed by the Member of the Management Board responsible for the supervision of the risk
management system
The Parent Company’s Supervisory Board approves risk management system.
37.1 Fair value
37.1.1 Carrying amount and fair value
The fair value of cash and cash equivalents is estimated as being close to their carrying amount.
The fair value of loans granted and other receivables, amounts due to clients and other liabilities is estimated as being close to
their carrying amount in view of the short-term maturities of these balance sheet items.
37.1.2 Fair value hierarchy
The Group discloses fair value measurement of financial instruments carried at fair value, applying the following fair value
hierarchy which reflects the significance of input data used to establish the fair value:
• Level 1: quoted prices (unadjusted) in active markets for the assets or liabilities;
• Level 2: input data other than quoted prices classified in Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. based on prices). This category includes financial assets and liabilities measured using prices
quoted in active markets for identical assets, prices quoted in active markets for identical assets considered less active or
other valuation methods where all significant inputs originate directly or indirectly from the markets;
• Level 3: input data for valuation of a given asset or liability is not based on observable market data (unobservable inputs).
31.12.2021 (IN PLN’000)
LEVEL 1
LEVEL 2
LEVEL 3
TOTAL
Financial assets
Financial assets at fair value through P&L
353 409
350 137
−
703 546
Total financial assets
353 409
350 137
−
703 546
Financial liabilities
Financial liabilities held for trading
−
127 712
−
127 712
Total financial liabilities
−
127 712
−
127 712
31.12.2020 (IN PLN’000)
LEVEL 1
LEVEL 2
LEVEL 3
TOTAL
Financial assets
Financial assets at fair value through P&L
407 832
255 301
−
663 133
Total financial assets
407 832
255 301
−
663 133
Financial liabilities
Financial liabilities held for trading
−
96 632
−
96 632
Total financial liabilities
−
96 632
−
96 632
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 55
In the periods covered by the condensed consolidated financial statements, there were no transfers of items between the levels
of the fair value hierarchy.
The fair value of contracts for differences (CFDs) is determined based on the market prices of underlying instruments, derived
from independent sources, i.e. from reliable liquidity suppliers and reputable news, adjusted for the spread specified by the
Group. The valuation is performed using closing prices or the last bid and ask prices. CFDs are measured as the difference
between the current price and the opening price, taking account of accrued commissions and swap points.
The impact of adjustments due to credit risk of the contractor, estimated by the Group, was insignificant from the point of view
of the general estimation of derivative transactions concluded by the Group. Therefore, the Group does not recognise the impact
of unobservable input data used for the estimation of derivative transactions as significant and, pursuant to IFRS 13.73, does
not classify such transactions as level 3 of the fair value hierarchy.
37.2 Market risk
In the period covered by these condensed consolidated financial statements, the Group entered into OTC contracts for
differences (CFDs). The Group may also acquire securities and enter into forward contracts on its own account on regulated
stock markets.
The following risks are specified, depending on the risk factor:
• Currency risk connected with fluctuations of exchange rates
• Interest rate risk
• Commodity price risk
• Equity investment price risk
The Group’s key market risk management objective is to mitigate the impact of such risk on the profitability of its operations.
The Company’s practice in this area is consistent with the following principles.
As part of the internal procedures, the Group applies limits to mitigate market risk connected with maintaining open positions
on financial instruments. These are, in particular: a maximum open position on a given instrument, currency exposure limits,
maximum value of a single instruction. The Trading Department monitors open positions subject to limits on a current basis,
and in case of excesses, enters into appropriate hedging transactions. The Risk Control Department reviews the limit usage on
a regular basis, and controls the hedges entered into.
37.2.1 Currency risk
The Group enters into transactions principally in instruments bearing currency risk. Aside from transactions where the FX rate
is an underlying instrument, the Group also offers instruments which price is denominated in foreign currencies. Also, the Group
has assets in foreign currencies, i.e. the so-called currency positions. Currency positions include the brokerage’s own funds
denominated in foreign currencies held for the purpose of settling transactions in foreign markets and connected with foreign
operations.
The carrying amount of the Group’s assets and liabilities in foreign currencies as at the balance sheet date is presented below.
The values for all base currencies are expressed in PLN’000:
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 56
Assets and liabilities denominated in foreign currencies as at 31 December 2021 (value in foreign currencies converted to PLN)
(IN PLN’000)
USD
EUR
GBP
CZK
HUF
RON
OTHER
CURRENCIES
TOTAL
CARRYING
AMOUNT
Assets
Cash and cash equivalents
534 146
816 290
39 251
207 735
13 343
22 838
34 282
1 667 885
2 376 261
Financial assets held for trading
79 147
112 877
9 971
41 993
3 168
3 756
14 843
265 755
703 546
Income tax receivables
−
72
−
−
−
−
−
72
7 247
Financial assets at amortised cost
1 679
7 355
213
1 640
114
562
1 212
12 775
26 568
Prepayments and deferred costs
1 024
1 141
452
126
−
10
8
2 761
8 637
Intangible assets
−
−
−
30
−
1
2
33
585
Property, plant and equipment
2 052
4 285
87
626
−
60
1 381
8 491
16 206
Deferred income tax assets
−
6 760
1 873
60
−
−
−
8 693
8 693
Total assets
618 048
948 780
51 847
252 210
16 625
27 227
51 728
1 966 465
3 147 743
Liabilities
Amounts due to customers
232 610
769 782
28 381
226 312
12 139
23 019
28 123
1 320 366
2 010 490
Financial liabilities held for trading
55 882
26 585
3 830
9 361
1 018
854
9 986
107 516
127 712
Income tax liabilities
−
167
−
−
−
−
616
783
783
Lease liabilities
−
4 444
−
21
−
−
2 972
7 437
7 437
Other liabilities
8 118
13 247
4 503
1 750
10
471
1 052
29 151
48 377
Provisions for liabilities
−
1 380
−
−
−
−
300
1 680
4 965
Deferred income tax provision
−
−
−
−
−
−
548
548
32 419
Total liabilities
296 610
815 605
36 714
237 444
13 167
24 344
43 597
1 467 481
2 232 183
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 57
Assets and liabilities denominated in foreign currencies as at 31 December 2020 (value in foreign currencies converted to PLN)
(IN PLN’000)
USD
EUR
GBP
CZK
HUF
RON
OTHER
CURRENCIES
TOTAL
CARRYING
AMOUNT
Assets
Cash and cash equivalents
304 665
556 126
38 769
140 083
7 193
17 973
28 246
1 093 055
1 575 807
Financial assets held for trading
37 744
94 864
10 272
26 356
1 777
3 093
18 218
192 324
663 133
Income tax receivables
−
9
−
−
−
−
−
9
2 593
Financial assets at amortised cost
1 518
6 997
433
401
43
554
1 685
11 631
13 310
Prepayments and deferred costs
226
296
191
88
−
15
41
857
5 397
Intangible assets
−
1
−
58
−
1
4
64
639
Property, plant and equipment
6
4 963
73
883
−
52
1 121
7 098
13 260
Deferred income tax assets
−
7 451
1 869
67
−
−
−
9 387
9 387
Total assets
344 159
670 707
51 607
167 936
9 013
21 688
49 315
1 314 425
2 283 526
Liabilities
Amounts due to customers
112 057
490 013
23 628
126 293
6 813
15 900
21 735
796 439
1 203 243
Financial liabilities held for trading
23 549
28 568
3 386
8 327
450
765
11 574
76 619
96 632
Income tax liabilities
−
494
−
−
−
−
826
1 320
1 329
Lease liabilities
−
7 752
−
63
−
−
825
8 640
8 654
Other liabilities
7 069
16 361
4 436
1 977
3
465
1 612
31 923
54 167
Provisions for liabilities
−
−
1 127
−
−
−
1 901
3 028
7 939
Deferred income tax provision
−
−
−
−
−
−
90
90
23 257
Total liabilities
142 675
543 188
32 577
136 660
7 266
17 130
38 563
918 059
1 395 221
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 58
A change in exchange rates, in particular, the PLN exchange rate, affects the balance sheet valuation of the Group’s financial
instruments and the result on translation of foreign currency balances of other balance sheet items. Sensitivity to exchange rate
fluctuations was calculated with the assumption that all foreign currency rates change by ±5% to PLN. The carrying amount of
financial instruments was revalued.
The sensitivity of the Group’s equity and profit before tax to a 5% increase or decrease of the PLN exchange rate is presented
below:
(IN PLN’000)
31.12.2021
INCREASE IN
EXCHANGE
RATES BY 5%
31.12.2021
DECREASE IN
EXCHANGE
RATES BY 5%
31.12.2020
INCREASE IN
EXCHANGE
RATES BY 5%
31.12.2020
DECREASE IN
EXCHANGE
RATES BU 5%
Income (expenses) of the period
35 640
(35 640)
21 349
(21 349)
Equity, of which:
2 810
(2 810)
3 012
(3 012)
Foreign exchange differences on translation
2 810
(2 810)
3 012
(3 012)
The sensitivity of equity is connected with foreign exchange differences in the translation of value in functional currencies of
the foreign operations.
37.2.2 Interest rate risk
Interest rate risk is the risk of exposure of the current and future financial result and equity of the Group to the adverse impact
of exchange rate fluctuations. Such risk may result from the contracts entered into by the Group, where receivables or liabilities
are dependent upon exchange rates as well as from holding assets or liabilities dependent on exchange rates.
The basic interest rate risk for the Group is the mismatch of interest rates paid to clients in connection with funds deposited in
cash accounts in the Group, and of the bank account and bank deposits where the Group’s clients’ funds are invested.
In addition, the source of the Group’s profit variability associated with the level of market interest rates, are amounts paid and
received in connection with the occurrence of the difference in interest rates for different currencies (swap points) as well as
potential debt instruments.
Since the Group maintains a low duration of assets and liabilities and minimises the duration gap, sensitivity of the market value
of assets and liabilities to calculations of market interest rates is very low. However, due to the significant involvement of XTB
in Treasury bonds, the interest rate risk was considered significant in the Group's operations.
Sensitivity analysis of financial assets and liabilities where cash flows are exposed to interest rate risk
The structure of financial assets and liabilities where cash flows are exposed to interest rate risk is as follows:
(IN PLN’000)
31.12.2021
31.12.2020
Financial assets
Cash and cash equivalents
2 376 261
1 575 807
Debt instruments
331 926
398 616
Total financial assets
2 708 187
1 974 423
Financial liabilities
Amounts due to clients
-
60
Other liabilities
7 437
8 654
Total financial liabilities
7 437
8 714
Impact of a change in interest rates by 50 base points (BP) on profit before tax is presented below. The analysis below relies on
the assumption that other variables, in particular exchange rates, will remain constant. The analysis was carried out on the basis
of average balances of cash in the period from 1 January to 31 December 2021 and from 1 January to 31 December 2020, using
the average 1M interest rate in a given market.
(IN PLN’000)
31.12.2021
INCREASE BY
50 PB
31.12.2021
DECREASE BY
50 PB
31.12.2020
INCREASE BY
50 PB
31.12.2020
DECREASE BY
50 PB
Profit/(loss) before tax
2 960
(2 960)
6 603
(6 603)
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 59
Sensitivity analysis of financial assets and liabilities whose fair value is exposed to interest rate risk
In the period covered by these condensed consolidated financial statements and in the comparative period, the Group hold
financial assets which fair value would be exposed to the risk of changes in interest rates as a Treasury bonds. Sensitivity
analysis exposed to interest rate risk by 50 base points (BP) - shift of yield curves- on profit before tax is presented below.
(IN PLN’000)
31.12.2021
31.12.2020
INCREASE
DECREASE
INCREASE
DECREASE
BY 50 PB
BY 50 PB
BY 50 PB
BY 50 PB
Profit/(loss) before tax
(971)
978
(4 737)
4 875
37.2.3 Other price risk
Other price risk is exposure of the Group’s financial position to unfavourable changes in the prices of commodities, equity
investments (equity, indices) and debt instruments (in a scope not resulting from interest rates).
The carrying amount of financial instruments exposed to other price risk is presented below:
(IN PLN’000)
31.12.2021
31.12.2020
Financial assets at fair value through P&L
Commodity
Precious metals
26 802
9 490
Base metals
868
508
Other
34 115
29 652
Total commodity
61 785
39 651
Equity instruments
Stocks and ETF
89 716
40 930
Indicies
108 309
126 578
Total equity instruments
198 025
167 508
Debt instruments
19
12
Total financial assets at fair value through P&L
259 829
207 171
Financial liabilities held for trading
Commodity
Precious metals
5 855
7 141
Base metals
361
94
Other
5 932
8 545
Total commodity
12 148
15 781
Equity instruments
Stocks and ETF
35 567
26 835
Indicies
29 551
24 884
Total equity instruments
65 118
51 719
Debt instruments
32
3
Total financial liabilities held for trading
77 298
67 503
The Group’s sensitivity to fluctuations in the prices of specific commodities and equity investments by ±5 per cent with regard
to equity and profit before tax is presented below.
(IN PLN’000)
31.12.2021
INCREASE BY 5%
31.12.2021
DECREASE BY 5%
31.12.2020
INCREASE BY 5%
31.12.2020
DECREASE BY 5%
Income/(expenses) for the period
Commodity
Precious metals
(19 035)
19 035
(5 507)
5 507
Base metals
(32)
32
(202)
202
Other
(2 149)
2 149
7 556
(7 556)
Total commodity
(21 216)
21 216
1 847
(1 847)
Equity instruments
Stocks and ETFs
80
(80)
17
(17)
Indicies
12 605
(12 605)
10 125
(10 125)
Total equity instruments
12 685
(12 685)
10 142
(10 142)
Debt instruments
71
(71)
(45)
45
Total income/(expenses) for the period
(8 460)
8 460
11 944
(11 944)
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 60
37.3 Liquidity risk
For the Group, liquidity risk is the risk of losing its payment liquidity, i.e. the risk of losing capacity to finance its assets and to
perform its obligations in a timely manner in the course of normal operations or in other predictable circumstances with no risk
of loss. In its liquidity analysis, the Group takes into consideration current possibility of generation of liquid assets, future needs,
alternative scenarios and payment liquidity contingency plans.
The objective of liquidity management at XTB is to maintain the amount of cash on the appropriate bank accounts that will
cover all the operations necessary to be carried on such accounts. In order to manage liquidity in relation to certain bank
accounts associated with the operations of financial instruments, the Group uses the liquidity model of which the essence is to
determine the safe area of the state of free cash flow that does not require corrective action. Where the upper limit is achieved,
the Group makes a transfer to the appropriate current account corresponding to the surplus above the optimum level. Similarly,
if the cash in the account falls to the lower limit, the Group makes a transfer of funds from the current account to the appropriate
account in order to bring cash to the optimum level.
Tasks relating to the maintenance and updating of the rules of the liquidity model are performed by the Parent Company’s Risk
Control Department. Risk Control Department employees are required to analyse liquidity at least once a week, as well as to
transfer the relevant information to the Parent Company’s Accounting Department in order to make certain operations in the
accounts.
The subsidiaries manage liquidity by analysing the anticipated cash flows and by matching the maturities of assets with the
maturities of liabilities. The subsidiaries do not use any models for managing liquidity. Liquidity management based on the
liquidity gap analysis is effective and sufficient – in subsidiaries, there were no incidents related to lack of liquidity or the lack of
possibility of meeting financial obligations. In extraordinary cases, the subsidiaries’ liquidity may be provided by the Parent
Company.
The procedure also provides for the possibility of deviating from its application, and such procedure requires the consent of at
least two members of the Parent Company’s Management. Information on deviations is transmitted to the Risk Control
Department of the Parent Company.
The Parent Company has also implemented liquidity contingency plans, which were not used in the period covered by the
financial statements and in the comparative period, due to the fact that the amount of the most liquid assets (own cash and
cash equivalents) greatly exceeds the amount of liabilities.
As part of ongoing business and the tasks related to liquidity risk management, the managers of appropriate organisational
units of the Parent Company monitor the balance of funds deposited in the account in the context of planned liquidity needs
related to the Parent Company’s operating activities. In its liquidity analysis, the existing possibility of generation of liquid assets,
future needs, alternative scenarios and payment liquidity contingency plans are taken into consideration. Supervision and
control activities over the balance of cash accounts are also carried out by the Risk Control Department on a daily basis.
According to IFR from 26
th
June 2021 the Parent Company holds the amount of liquid assets equivalent to at least one third of
the fixed overhead requirement. For the purpose of this requirement the Parent Company recognized as the liquid assets inter
alia unencumbered short‐term own deposits at credit institutions and denominated in PLN investments in Polish Government
Treasury bonds and bonds with a guarantee by the Polish Government Treasury. At date of preparation of the financial
statement the Parent Company holds over a dozen times higher level of liquid assets than required by IFR.
The contractual payment periods of financial assets and liabilities are presented below. The marginal and cumulative
contractual liquidity gap, calculated as the difference between total assets and total liabilities for each maturity bucket, is
presented for specific payment periods.
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 61
Contractual payment periods of financial assets and liabilities as at 31 December 2021
(IN PLN’000)
CARRYING
AMOUNT
CONTRACTUAL
CASH FLOWS
UP TO 3
MONTHS
3 MONTHS
TO 1 YEAR
1 – 5
YEARS
OVER 5
YEARS
WITH NO
SPECIFIED
MATURITY
Financial assets
Cash and cash equivalents
2 376 261
2 376 261
2 376 261
−
−
−
−
Financial assets at fair value through P&L
Listed stocks and ETFs
21 483
21 483
21 483
−
−
−
−
Bonds
331 926
331 926
331 926
CFDs
350 137
350 137
350 137
−
−
−
−
Total financial assets at fair value through
P&L
703 546
703 546
703 546
−
−
−
−
Financial assets at amortised cost
26 568
26 568
22 279
−
4 289
−
−
Total financial assets
3 106 375
3 106 375
3 102 086
−
4 289
−
−
Financial liabilities
Amounts due to clients
2 010 490
2 010 490
2 010 490
−
−
−
−
Financial liabilities held for trading
CFDs
127 712
127 712
127 712
−
−
−
−
Total financial liabilities held for trading
127 712
127 712
127 712
−
−
−
−
Liabilities due to lease
7 437
7 437
837
2 057
4 543
−
−
Other liabilities
48 377
48 377
26 586
16 330
−
−
5 461
Total financial liabilities
2 194 016
2 194 016
2 165 625
18 387
4 543
−
5 461
Contractual liquidity gap in maturities
(payment dates)
936 461
(18 387)
(254)
−
(5 461)
Contractual cumulative liquidity gap
936 461
918 074
917 820
917 820
912 359
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 62
Contractual payment periods of financial assets and liabilities as at 31 December 2020
(IN PLN’000)
CARRYING
AMOUNT
CONTRACTUAL
CASH FLOWS
UP TO 3
MONTHS
3 MONTHS
TO 1 YEAR
1 – 5
YEARS
OVER 5
YEARS
WITH NO
SPECIFIED
MATURITY
Financial assets
Cash and cash equivalents
1 575 807
1 575 807
1 575 807
−
−
−
−
Financial assets at fair value through P&L
Listed stocks and ETFs
9 216
9 216
9 216
−
−
−
−
Bonds
398 616
398 616
398 616
−
−
−
−
CFDs
255 301
255 301
255 301
−
−
−
−
Total financial assets at fair value through
P&L
663 133
663 133
663 133
−
−
−
−
Financial assets at amortised cost
13 310
13 310
10 832
−
2 478
−
−
Total financial assets
2 252 250
2 252 250
2 249 772
−
2 478
−
−
Financial liabilities
Amounts due to clients
1 203 243
1 203 243
1 203 243
−
−
−
−
Financial liabilities held for trading
CFDs
96 632
96 632
96 632
−
−
−
−
Total financial liabilities held for trading
96 632
96 632
96 632
−
−
−
−
Liabilities due to lease
8 654
8 654
1 231
3 397
3 549
477
−
Other liabilities
54 167
54 167
26 898
23 684
−
−
3 585
Total financial liabilities
1 362 696
1 362 696
1 328 004
27 081
3 549
477
3 585
Contractual liquidity gap in maturities
(payment dates)
921 768
(27 081)
(1 071)
(477)
(3 585)
Contractual cumulative liquidity gap
921 768
894 687
893 616
893 139
889 554
The Group does not expect the cash flows presented in the maturity analysis to occur significantly earlier or in significantly different amounts.
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 63
37.4 Credit risk
The chart below shows the carrying amounts of financial assets corresponding to the Group’s exposure to credit risk:
(IN PLN’000)
31.12.2021
CARRYING
AMOUNT
31.12.2021
MAXIMUM
EXPOSURE TO
CREDIT RISK
31.12.2020
CARRYING
AMOUNT
31.12.2020
MAXIMUM
EXPOSURE TO
CREDIT RISK
Financial assets
Cash and cash equivalents
2 376 261
2 376 261
1 575 807
1 575 807
Financial assets at fair value through P&L *
703 546
24 152
663 133
20 779
Financial assets at amortised cost
26 568
26 568
13 310
13 310
Total financial assets
3 106 375
2 426 981
2 252 250
1 609 896
* As at 31 December 2021 the maximum exposure to credit risk for financial assets held for trading, not including the collateral received, was PLN 24 104 thousand (31 December 2020: PLN 234
999 thousand). This exposure was collateralised with clients’ cash, which, as at 31 December 2021, covered the amount of PLN 272 046 thousand (31 December 2020: PLN 214 221 thousand).
Exposures to credit risk connected with transactions with brokers as well as exposures to the Warsaw Stock Exchange were not collateralised.
The credit quality of the Group’s financial assets is assessed based on external credit quality assessments, risk weights
assigned based on the CRR, taking account of the mechanisms used to mitigate credit risk, the number of days past due, and
the probability of counterparty insolvency.
The Group’s assets fall within the following credit rating brackets:
• Fitch Ratings – from F1+ to B
• Standard & Poor's Ratings Services – from A-1+ to B
• Moody’s – from P-1 to N/A
Cash and cash equivalents
Credit risk connected with cash and cash equivalents is related to the fact that own cash and clients’ cash is held in bank
accounts. Credit risk involving cash is mitigated by selecting banks with a high credit rating granted by international rating
agencies and through diversification of banks with which accounts are opened. As at 31 December 2021, the Group had deposit
accounts in 49 banks and institutions (31 December 2020: in 44 banks and institutions). The ten largest exposures are presented
in the table below (numbering of banks and institutions determined individually for each period:
ENTITY
31.12.2021
(IN PLN’000)
ENTITY
31.12.2020
(IN PLN’000)
Bank 1
682 155
Bank 1
443 072
Bank 2
326 417
Bank 2
217 016
Institution 1
313 432
Bank 3
149 940
Bank 3
279 383
Bank 4
112 916
Institution 2
123 257
Bank 5
91 259
Bank 4
105 612
Bank 6
80 292
Bank 5
88 649
Bank 7
58 939
Bank 6
73 255
Bank 8
54 793
Institution 3
67 669
Bank 9
53 925
Institution 4
59 801
Bank 10
49 917
Other
256 631
Other
263 738
Total
2 376 261
Total
1 575 807
XTB S.A. Group
Consolidated financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 64
The table below presents a short-term assessment of the credit quality of the Group’s cash and cash equivalents according to
credit quality steps determined based on external credit quality assessments (where step 1 means the best credit quality and
step 6 – the worst) and the risk weights assigned based on the CRR. Long-term assessment of the credit quality were used in
case of exposures without short-term assessment of the credit quality or maturity longer than 3 months.
CREDIT QUALITY STEPS
CARRYING AMOUNT
(IN PLN’000)
31.12.2021
CARRYING AMOUNT
(IN PLN’000)
31.12.2020
Cash and cash equivalent
Step 1
1 952 898
1 346 247
Step 2
23 265
10 646
Step 3
397 446
216 325
Step 4
2 652
2 589
Step 5
-
−
Total
2 376 261
1 575 807
Financial assets at fair value through P&L
Financial assets at fair value through P&L result from transactions in financial instruments entered into with the Group’s
customers and the related hedging transactions.
Credit risk involving financial assets at fair value through P&L is connected with the risk of customer or counterparty insolvency.
With regard to OTC transactions with customers, the Group’s policy is to mitigate the counterparty credit risk through the so-
called “stop out” mechanism. Customer funds deposited in the brokerage serve as a security. If a customer’s current balance is
50 per cent or less of the security paid in and blocked by the transaction system, the position that generates the highest losses
is automatically closed at the current market price. The initial margin amount is established depending on the type of financial
instrument, customer account, account currency and the balance of the cash account in the transaction system, as a percent
of the transaction’s nominal value. A detailed mechanism is set forth in the rules binding on the customers. In addition, in order
to mitigate counterparty credit risk, the Group includes special clauses in agreements with selected customers, in particular,
requirements regarding minimum balances in cash accounts.
Due to the mechanisms in place, used to mitigate credit risk, the credit quality of financial assets at fair value through P&L is
high and does not show significant diversity.
The Group’s top 10 exposures to counterparty credit risk taking into account collateral (net exposure) are presented in the table
below (numbering of counterparties determined individually for each period:
ENTITY
31.12.2021
NET EXPOSURE
(IN PLN’000)
ENTITY
31.12.2020
NET EXPOSURE
(IN PLN’000)
Entity 1
12 206
Entity 1
8 542
Entity 2
8 837
Entity 2
4 665
Entity 3
1 242
Entity 3
747
Entity 4
435
Entity 4
604
Entity 5
161
Entity 5
566
Entity 6
134
Entity 6
528
Entity 7
106
Entity 7
440
Entity 8
97
Entity 8
258
Entity 9
59
Entity 9
247
Entity 10
58
Entity 10
211
Total
23 335
Total
16 808
Other receivables
Other receivables do not show a significant concentration, and they arose in the normal course of the Group’s business. Non-
overdue other receivables are collected on a regular basis and, from the perspective of credit quality, they do not pose a material
risk to the Group