Raport

STANDALONE FINANCIAL
STATEMENTS
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 2
TABLE OF CONTENTS
COMPREHENSIVE INCOME STATEMENT 3
STATEMENT OF FINANCIAL POSITION 4
STATEMENT OF CHANGES IN EQUITY 5
CASH FLOW STATEMENT 7
ADDITIONAL EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS 8
1. General information 8
2. Professional judgement 11
3. Adopted Accounting principles 13
4. Operating income 25
5. Salaries and employee benefits 26
6. Marketing 26
7. Costs of maintenance and lease of buildings 26
8. Other external services 27
9. Commission expenses 27
10. Other expenses 27
11. Finance income and costs 27
12. Segment information 28
13. Cash and cash equivalents 33
14. Financial assets at fair value through P&L 33
15. Investments in subsidiaries 33
16. Financial assets at amortised cost 35
17. Prepayments and deferred costs 35
18. Intangible assets 36
19. Property, plant and equipment 38
20. Amounts due to customers 40
21. Financial liabilities held for trading 40
22. Other liabilities 40
23. Liabilities due to lease 41
24. Provisions for liabilities and contingent liabilities 41
25. Equity 42
26. Profit distribution and dividend 43
27. Earnings per share 43
28. Current income tax and deferred tax 43
29. Related party transactions 47
30. Wynagrodzenie firm audytorskich 49
31. Employment 49
32. Supplementary information and explanations to the cash flow statement 49
33. Post balance sheet events 49
34. Off-balance sheet items 50
35. Items regarding the compensation scheme 50
36. Capital management 50
37. Risk management 53
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 3
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
555 840
744 344
Income from fees and charges
5.2
4 404
3 827
Other income
2 108
123
Total operating income
5
562 352
748 294
Salaries and employee benefits
6
(102 530)
(95 126)
Marketing
7
(75 267)
(51 213)
Other external services
9
(71 157)
(57 601)
Commission expenses
10
(23 804)
(14 636)
Amortisation and depreciation
19,20
(7 485)
(6 881)
Taxes and fees
(3 900)
(3 170)
Costs of maintenance and lease of buildings
8
(2 596)
(2 447)
Other costs
11
(2 450)
(5 301)
Total operating expenses
(289 189)
(236 375)
Profit on operating activities
273 163
511 919
Impairment of investments in subsidiaries
16
(1 022)
(2 244)
Finance income
12
18 625
4 927
Finance costs
12
(4 115)
(365)
Profit before tax
286 651
514 237
Income tax
29
(51 810)
(96 061)
Net profit
234 841
418 176
Other comprehensive income
(1 288)
1 712
Items which will be reclassified to profit (loss) after meeting specific
conditions
(1 288)
1 712
- foreign exchange differences on translation of foreign operations
(1 102)
(864)
- foreign exchange differences on valuation of separated equity
(230)
3 180
- deferred income tax
44
(604)
Total comprehensive income
233 553
419 888
Earnings per share:
- basic profit per year attributable to shareholders of the Parent Company
(in PLN)
28
2,00
3,56
- basic profit from continued operations per year attributable to
shareholders of the Parent Company (in PLN)
28
2,00
3,56
- diluted profit of the year attributable to shareholders of the Parent
Company (in PLN)
28
2,00
3,56
- diluted profit from continued operations of the year attributable to
shareholders of the Parent Company (in PLN)
28
2,00
3,56
The comprehensive income statement should be read together with the supplementary notes to the financial statements, which
are an integral part of these financial statements.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 4
STATEMENT OF FINANCIAL POSITION
(IN PLN’000)
NOTE
31.12.2021
31.12.2020
ASSETS
Cash and cash equivalents
14
2 185 986
1 436 232
Financial assets at fair value through P&L
15
663 725
632 760
Investments in subsidiaries
16
39 879
35 890
Income tax receivables
7 247
2 584
Financial assets at amortised cost
17
47 796
23 564
Prepayments and deferred costs
18
7 093
4 881
Intangible assets
19
450
477
Property, plant and equipment
20
12 562
11 725
Deferred income tax assets
29
6 820
7 518
Total assets
2 971 558
2 155 631
EQUITY AND LIABILITIES
Liabilities
Amounts due to customers
21
1 879 191
1 104 252
Financial liabilities held for trading
22
94 469
73 398
Income tax liabilities
132
494
Liabilities due to lease
24
4 382
7 544
Other liabilities
23
44 429
52 883
Provisions for liabilities
25
4 665
4 911
Deferred income tax provision
29
31 871
23 166
Total liabilities
2 059 139
1 266 648
Equity
Share capital
26
5 869
5 869
Supplementary capital
26
71 608
71 608
Other reserves
26
598 651
390 592
Foreign exchange differences on translation
26
1 450
2 738
Retained earnings
234 841
418 176
Total equity
912 419
888 983
Total equity and liabilities
2 971 558
2 155 631
The statement of financial position should be read together with the supplementary notes to the financial statements, which
are an integral part of these financial statements.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 5
STATEMENT OF CHANGES IN EQUITY
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
TOTAL
EQUITY
NOTE
26
26
26,27
26
27
As at 1 January 2021
5 869
71 608
390 592
2 738
418 176
888 983
Total comprehensive income for the financial year
Net profit
−
−
−
−
234 841
234 841
Other comprehensive income
−
−
−
(1 288)
−
(1 288)
Total comprehensive income for the financial year
−
−
−
(1 288)
234 841
233 553
Transactions with Parent Company’s owners recognized
directly in equity
Appropriation of profit
- dividend payment
−
−
−
−
(210 117)
(210 117)
- transfer to other reserves
−
−
208 059
−
(208 059)
−
Increase (decrease) in equity
−
−
208 059
(1 288)
(183 335)
23 436
As at 31 December 2021
5 869
71 608
598 651
1 450
234 841
912 419
The statement of changes in equity should be read together with the supplementary notes to the financial statements, which are an integral part of these financial statements.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 6
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
TOTAL
EQUITY
NOTE
26
26
26,27
26
27
As at 1 January 2020
5 869
71 608
364 619
1 026
54 145
497 267
Total comprehensive income for the financial year
Net profit
−
−
−
−
418 176
418 176
Other comprehensive income
−
−
−
1 712
−
1 712
Total comprehensive income for the financial year
−
−
−
1 712
418 176
419 888
Transactions with Parent Company’s owners recognized
directly in equity
Appropriation of profit
- dividend payment
−
−
−
−
(28 172)
(28 172)
- transfer to other reserves
−
−
25 973
−
(25 973)
−
Increase (decrease) in equity
−
−
25 973
1 712
364 031
391 716
As at 31 December 2020
5 869
71 608
390 592
2 738
418 176
888 983
The statement of changes in equity should be read together with the supplementary notes to the financial statements, which are an integral part of these financial statements.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 7
CASH FLOW STATEMENT
(IN PLN’000)
NOTE
TWELVE-MONTH PERIOD ENDED
31.12.2021
31.12.2020
Cash flows from operating activities
Profit before tax
286 651
514 237
Adjustments:
(33 375)
45 031
Amortization and depreciation
19,20
7 485
6 881
Foreign exchange (gains) losses from translation of own cash
(9 457)
(5 791)
(Gain) Loss on investment activity
332
12 111
Other adjustments
33.1
(1 298)
1 338
Changes
Change in provisions
(246)
3 459
Change in balance of financial assets at fair value through P&L and
financial liabilities held for trading
(76 583)
(58 255)
Change in balance of restricted cash
(693 649)
(520 694)
Change in financial assets at amortised cost
(24 232)
(10 817)
Change in balance of prepayments and accruals
(2 212)
(1 340)
Change in balance of amounts due to customers
774 939
584 702
Change in balance of other liabilities
(8 454)
33 437
Cash from operating activities
253 276
559 268
Income tax paid
(47 432)
(92 139)
Interests
176
272
Net cash from operating activities
206 020
467 401
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
20
(7 363)
(4 159)
Expenses relating to payments for intangible assets
19
(210)
(324)
Expenses relating to payments for investments in subsidiaries
16
(5 012)
−
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
Dividends received from subsidiaries
5 100
2 666
Net cash from investing activities
55 419
(381 365)
Cash flow from financing activities
Payments of liabilities under finance lease agreements
(4 498)
(3 656)
Interest paid under lease
(176)
(272)
Dividend paid to owners
(210 117)
(28 172)
Net cash from financing activities
(214 791)
(32 100)
Increase (Decrease) in net cash and cash equivalents
46 648
53 936
Cash and cash equivalents – opening balance
494 766
435 039
Effect of FX rates fluctuations on balance of cash in foreign currencies
9 457
5 791
Cash and cash equivalents – closing balance
15
550 871
494 766
The cash flow statement should be read together with the supplementary notes to the financial statements, which are an integral
part of these financial statements.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 8
ADDITIONAL EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS
1. General information
1.1 Name and registered seat of the Company
Name: XTB Spółka Akcyjna
Legal form: Joint Stock Company
Country: Poland
Company registered seat: Prosta 67, 00-838 Warsaw
Regon statistical number: 015803782
Tax Identification Number: 5272443955
Registration in the National Court Register: 0000217580
1.2 Company business
XTB S.A. („Company”, „XTB is a joint-stock company established pursuant to a notarial deed of 2 September 2004 - Repertory
A-2712/2004. The Company was established for an indefinite period.
On 22 September 2004, the Company was entered in the National Court Register by the District Court for the Capital City of
Warsaw, 12th Commercial Department of the National Court Register, under No. 0000217580. The Company was granted a
statistical REGON number 015803782 and a tax identification (NIP) number 5272443955.
The Company’s operations consist of conducting brokerage activities on the stock exchange and OTC markets (currency
derivatives, commodities, indices, stocks and bonds). The 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.
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.
1.3 Information on the reporting entities in the Company’s organizational structure
The financial statements cover the following foreign branches which form the 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: CUI 24270192.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 9
• 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: 4721939029.
• 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.
• 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 under No. 980436613.
1.4 Composition of the Company’s Management Board
In the period covered by these 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 ends on
29 June 2019
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. Compliance statement
These financial statements were prepared based on International Financial Reporting Standards (IFRS).
These financial statements constitute standalone financial statements of XTB S.A. and it is included in the consolidated financial
statements of XTB. Information on company’s subsidiaries is presented in note 16.
The financial statements of the XTB S.A. prepared for the period from 1 January 2020 to 31 December 2020 with comparative
data for the year ended 31 December 2019 cover the Company’s financial data and financial data of the branch offices.
These 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 Company’s assets are presented in
the statement of financial position according to their liquidity, and its liabilities according to their maturities.
The Company and its branch offices maintain their accounting records in accordance with the accounting principles generally
accepted in the countries in which these companies are established. The financial statements include adjustments made in
order to reconcile their financial statements with the IFRS.
The financial statements were approved by the Management Board on 8 March 2022.
Drafting these financial statements, the 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”).
2.1 Functional currency and reporting currency
The functional currency and the presentation currency of these financial statements is the Polish zloty (“PLN”), and unless stated
otherwise, all amounts are shown in thousands of zloty (PLN’000).
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 10
2.2 Going concern
The financial statements were prepared based on the assumption that the Company would continue as a going concern in the
foreseeable future. At the date of preparation of these financial statements, the Management Board of XTB S.A. does not state
any circumstances that would threaten the company’s continued operations.
2.3 Comparability of data and consistency of the policies applied
Data presented in the financial statements is comparable and prepared under the same principles for all periods covered by the
financial statements.
2.4 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 2020 in the financial
and commodity markets which resulted in high transaction activity of customers and converted to growth of Company’s
revenues and customer base.
2.5 Changes in the accounting policies
The accounting policies applied in the preparation of the attached financial statements are consistent with those applied in the
preparation of the financial statements of the Company 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.
• 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;
- 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 Company does not apply hedge accounting, therefore the IBOR reform has no impact on the annual consolidated financial
statements. Moreover, the Company 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.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 11
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 Company 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 Company’s condensed financial statements.
2.6 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;
• 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;
Above new standards and interpretations which have been published but are not yet binding do not have a significant impact on
the Company’s condensed financial statements.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 12
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, what is described in detail in notes 4.13 and 4.14. Variable remuneration, liabilities
due to reimbursements and other in the case of the Company do not occur.
3.1 Material estimates and valuations
In order to prepare its financial statements in accordance with the IFRS, the Company 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 Company’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 Company, 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 Company makes estimates
are presented below.
3.2 Impairment of assets
As at each balance sheet date, the Company determines whether there are any indications of impairment of a given financial
asset or group of financial assets. In particular, the Company tests its past due receivables for impairment and writes down the
estimated amount of doubtful and uncollectible receivables.
At each balance sheet date, the Company 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 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, which is described in note 30.2.2.
Period for settlement of the deferred tax asset
The Company 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 Company 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 38 – 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 Company’s future amounts due to employees, based on their employment and
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 13
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 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 Company’s functional currency is the Polish zloty, which is also the functional currency of these 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
STATEMENT OF FINANCIAL POSITION
STATEMENT OF COMPREHENSIVE INCOME
31.12.2021
31.12.2020
31.12.2021
31.12.2020
USD
4,0600
3,7584
−
−
EUR
4,5994
4,6148
3,8757
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
−
−
TRY
0,3016
0,5029
−
−
4.2 Cash and cash equivalents
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 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 Company 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.
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Cash comprises the Company’s own cash and customers’ cash. Customers’ cash is deposited in bank accounts separately
from the Company’s cash. Customers’ cash and cash equivalents are not analysed in the cash flow statements.
4.3 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
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.
An entity 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.
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4.3.1 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.
4.3.2 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”.
4.3.3 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.
4.3.4 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 company falls into this category mainly OTC derivatives and stocks.
4.3.5 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.
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Pursuant to IFRS 13 “Fair Value Measurement”, the Company 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:
• 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).
4.3.6 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.
In case of some categories of financial assets, for example trade receivables, particular assets assessed as not overdue are
tested for impairment together. Objective evidence of impairment for the receivables portfolio includes the Company's
experience in the debt collection process; increase in the number of late payments exceeding an average of 90 days as well as
observed changes in the conditions of the national or local economy which are connected with cases of untimely repayment of
receivables.
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.
4.3.7 Derecognition of financial assets from the balance sheet
The Company 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 Company does not transfer or retain essentially all risks and rewards of ownership of such asset, and
continues to control it, the Company recognises the retained share in such asset and related liabilities under payments due, if
any. If, in turn, the Company 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.
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4.3.8 Financial liabilities held for trading (at fair value through profit or loss)
In this category the Company 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
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.
4.3.9 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.
4.3.10 Derecognition of financial liabilities from the balance sheet
The Company derecognises financial liabilities from the balance sheet only if the appropriate liabilities of the Company 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.
4.4 Investments in subsidiaries
Subsidiaries are understood as entities controlled by the Parent Company (inclusive of special purpose entities). It is recognized
that control exists when the Company has the ability to influence through the power on risks and rewards of variable returns to
investor from the investment.
Investments in subsidiaries in separate financial statements are valued at cost.
4.5 Contributions to the compensation scheme
The 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 Company participates in the obligatory compensation scheme. The purpose of the compensation
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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 Company’s payments to the
compensation system are reported as expenses, under “Other costs” in the comprehensive income statement.
The 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 Company’s assets which do not exist physically, which are identifiable and can be reliably
measured, and which will give the Company 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;
• 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 Company 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
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 Company intends to use in connection with its operations and for administration
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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 12 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.
4.8 Leasing
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 Company 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 Company 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 Company 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 Company 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 Company 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:
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- 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 Company shall decide to exercise the call option;
- penalty payments for termination of a lease, unless it can be assumed with reasonable certainty that the Company 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 Company 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 Company'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.
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 Company 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 Company to be payable under the residual amount
guarantee, or if the Company 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
Company 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 Company 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 Company applies IAS 36 Impairment of Assets to determine whether the right of use asset is impaired and to account for
any impairment loss identified.
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Simplifications and practical solutions in the application of IFRS 16
Short-term lease
The Company 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 Company 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 Company 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 Company reviews the carrying amounts of its property, plant and equipment and intangible
assets for indications of impairment. If such indications are identified, the Company 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
independent of those from other assets, an analysis is carried out for the Company’s cash-generating assets to which a given
asset belongs. Where it is possible to specify a reliable and uniform allocation basis, the Company’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 Company 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
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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 Company 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 Company’s Statute.
Unregistered payments to the share capital are disclosed under the 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 Company’s customers, acquired on the regulated stock exchange
market and deposited in the accounts of the Company’s customers.
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 at fair value through P&L: result on financial instruments on transactions with customers and
brokers;
• The net income/(costs) on financial assets at amortised cost: result on debt securities (interest result calculated using the
effective interest rate method);
• 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 Company, and disclosed at the
date when the services were provided.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 23
4.15 Cost of employee benefits
Short–term employee benefits, including specific contributions to benefit schemes, are disclosed in the period when the
Company 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 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 Company’s financial standing – 50 per cent. The part of benefits granted
in the form of financial instruments whose value is related to the 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”.
4.16 Finance incomes and costs
Finance income includes interest income on funds invested by the Company. 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 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.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 24
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 Company may use.
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.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 25
5. Operating income
5.1 Result of operations in financial instruments
(IN PLN’000)
TWELVE-MONTH PERIOD ENDED
31.12.2021
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
Dividends from subsidiaries
5 100
2 666
Gross gain on transactions in financial instruments
642 532
802 554
Intermediary services
(86 148)
(57 501)
Commission paid to cooperating brokers
(544)
(709)
Net gain on transactions in financial instruments
555 840
744 344
Intermediary services are services performed on the foreign markets by the Company’s subsidiaries.
The Company 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 Company and
particular brokers relate to the trade between the broker and customers that are not his customers.
The Company’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 Company’s market making activities; (iii) fees and commissions charged 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 (excluding dividends from subsidiaries).
TWELVE-MONTH PERIOD ENDED
31.12.2021
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%
5.2 Income from fees and charges
(IN PLN’000)
TWELVE-MONTH PERIOD ENDED
31.12.2021
31.12.2020
Fees and charges from institutional clients
2 699
2 536
Fees and charges from retail clients
1 705
1 291
Total income from fees and charges
4 404
3 827
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 26
5.3 Geographical areas
(IN PLN’000)
TWELVE-MONTH PERIOD ENDED
31.12.2021
31.12.2020
Operating income
Central and Eastern Europe
332 416
404 341
- including Poland
214 933
295 075
Western Europe
144 985
282 316
Latin America *
86 491
61 637
Middle East
(1 540)
−
Total operating income
562 352
748 294
*The subsidiary XTB International Ltd., with its seat in Belize, acquires clients from Latin America and the rest of the world.
The countries from which the Company derives each time 20% and over of its revenue is Poland with a share of 38,2% (2020:
39,4%). Due to the overall share in the Company’s revenue Poland was set apart for presentation purposes within the
geographical area. The share of other countries in the structure of the Company’s revenue by geographical area does not in any
case exceed 20%.
The Company 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
31.12.2020
Salaries
(84 768)
(78 692)
Social insurance and other benefits
(15 405)
(14 484)
Employee benefits
(2 357)
(1 950)
Total salaries and employee benefits
(102 530)
(95 126)
7. Marketing
(IN PLN’000)
TWELVE-MONTH PERIOD ENDED
31.12.2021
31.12.2020
Marketing online
(70 605)
(47 664)
Marketing offline
(4 662)
(3 549)
Total marketing
(75 267)
(51 213)
Marketing activities carried out by the Company are mainly focused on Internet marketing, which is also supported by other
marketing activities.
8. Costs of maintenance and lease of buildings
(IN PLN’000)
TWELVE-MONTH PERIOD ENDED
31.12.2021
31.12.2020
Maintenance costs
(1 710)
(1 608)
Costs for renting low-value or short-term tangible assets
(236)
(213)
Other costs
(650)
(626)
Total costs of maintenance and lease of buildings
(2 596)
(2 447)
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 27
9. Other external services
(IN PLN’000)
TWELVE-MONTH PERIOD ENDED
31.12.2021
31.12.2020
Intermediary services
(38 406)
(32 917)
Support database systems
(14 149)
(9 806)
Market data delivery
(7 381)
(6 014)
Legal and advisory services
(4 825)
(3 205)
Internet and telecommunications
(2 661)
(2 146)
Accounting and audit services
(1 441)
(1 356)
Recruitment
(750)
(347)
Postal and courier services
(431)
(295)
IT support services
(311)
(674)
Other external services
(802)
(841)
Total other external services
(71 157)
(57 601)
Intermediary services represent remuneration paid to subsidiaries. The increase in 2020 relates to intensive development of
these companies’ operation on the foreign markets.
10. Commission expenses
(IN PLN’000)
TWELVE-MONTH PERIOD ENDED
31.12.2021
31.12.2020
Bank commissions
(19 334)
(11 099)
Stock exchange fees and charges
(3 886)
(3 016)
Commissions of foreign brokers
(584)
(521)
Total commission expenses
(23 804)
(14 636)
11. Other expenses
(IN PLN’000)
TWELVE-MONTH PERIOD ENDED
31.12.2021
31.12.2020
Materials
(841)
(818)
Liquidation of fixed assets
(553)
(16)
Insurance
(307)
(263)
Business trips
(231)
(162)
Representation
(30)
(11)
Membership fees
(11)
(46)
Receivables impairment write–downs
21
(317)
Costs relating to legal risk
−
(3 377)
Other
(498)
(291)
Total other expenses
(2 450)
(5 301)
Write-downs of receivables are the result of the debit balances which arose in customers’ accounts in that period.
12. Finance income and costs
(IN PLN’000)
TWELVE-MONTH PERIOD ENDED
31.12.2021
31.12.2020
Interest income
Interest on own cash
22
433
Interest on customers’ cash
24
225
Total interest income
46
658
Foreign exchange gains
18 535
51
Other finance income
44
50
Income on bonds
−
4 168
Total finance income
18 625
4 927
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 28
(IN PLN’000)
TWELVE-MONTH PERIOD ENDED
31.12.2021
31.12.2020
Interest expense
Interest paid under lease agreements
(176)
(272)
Other interest
(118)
(92)
Total interest expense
(294)
(364)
Loss on bonds
(3 808)
−
Other finance costs
(13)
(1)
Total finance costs
(4 115)
(365)
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 Company’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 Company 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 Company does not allocate financial activity and corporate income tax burden on business segments.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 29
COMPREHENSIVE INCOME STATEMENT
FOR TWELVE-MONTH PERIOD ENDED 31.12.2021
(IN PLN’000)
RETAIL
OPERATIONS
INSTITUTIONAL
OPERATIONS
TOTAL
REPORTING
SEGMENTS
COMPREHENSIVE
INCOME
STATEMENT
Net result on transactions in financial instruments
556 978
(1 138)
555 840
555 840
CFDs
Commodity CFDs
313 509
439
313 948
313 948
Index CFDs
210 559
(1 255)
209 304
209 304
Currency CFDs
80 108
(347)
79 761
79 761
Stock and ETF CFDs
34 851
34
34 885
34 885
Bond CFDs
232
(9)
223
223
Stocks and ETFs
(689)
−
(689)
(689)
Dividends from subsidiaries
5 100
−
5 100
5 100
Intermediary services
(86 148)
−
(86 148)
(86 148)
Commission paid to cooperating brokers
(544)
−
(544)
(544)
Income from fees and charges
1 705
2 699
4 404
4 404
Other income
2 108
−
2 108
2 108
Total operating income
560 791
1 561
562 352
562 352
Salaries and employee benefits
(101 163)
(1 367)
(102 530)
(102 530)
Marketing
(75 257)
(10)
(75 267)
(75 267)
Other external services
(70 693)
(464)
(71 157)
(71 157)
Commission expenses
(23 804)
−
(23 804)
(23 804)
Amortisation and depreciation
(7 399)
(86)
(7 485)
(7 485)
Taxes and fees
(3 868)
(32)
(3 900)
(3 900)
Costs of maintenance and lease of buildings
(2 561)
(35)
(2 596)
(2 596)
Other costs
(2 384)
(66)
(2 450)
(2 450)
Total operating expenses
(287 129)
(2 060)
(289 189)
(289 189)
Operating profit
273 662
(499)
273 163
273 163
Impairment of investments in subsidiaries
−
−
−
(1 022)
Finance income
−
−
−
18 625
Finance costs
−
−
−
(4 115)
Profit before tax
−
−
−
286 651
Income tax
−
−
−
(51 810)
Net profit
−
−
−
234 841
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 30
ASSETS AND LIABILITIES AS AT 31.12.2021
(IN PLN’000)
RETAIL
OPERATIONS
INSTITUTIONAL
OPERATIONS
TOTAL
REPORTING
SEGMENTS
COMPREHENSIVE
INCOME
STATEMENT
Customers’ cash and cash equivalents
1 574 637
60 478
1 635 115
1 635 115
Financial assets at fair value through P&L
647 096
16 629
663 725
663 725
Other assets
672 219
499
672 718
672 718
Total assets
2 893 952
77 606
2 971 558
2 971 558
Amounts due to customers
1 815 098
64 093
1 879 191
1 879 191
Financial liabilities held for trading
81 453
13 016
94 469
94 469
Other liabilities
85 479
−
85 479
85 479
Total liabilities
1 982 030
77 109
2 059 139
2 059 139
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 31
COMPREHENSIVE INCOME STATEMENT
FOR TWELVE-MONTH PERIOD ENDED 31.12.2020
(IN PLN’000)
RETAIL
OPERATIONS
INSTITUTIONAL
OPERATIONS
TOTAL
REPORTING
SEGMENTS
COMPREHENSIVE
INCOME
STATEMENT
Net result on transactions in financial instruments
658 239
86 105
744 344
744 344
CFDs
Index CFDs
373 087
52 830
425 917
425 917
Commodity CFDs
230 742
33 207
263 949
263 949
Currency CFDs
88 152
3 799
91 951
91 951
Stock and ETF CFDs
16 835
(3 950)
12 885
12 885
Bond CFDs
(21)
219
198
198
Stocks and ETFs
4 988
−
4 988
4 988
Dividends from subsidiaries
2 666
−
2 666
2 666
Intermediary services
(57 501)
−
(57 501)
(57 501)
Commission paid to cooperating brokers
(709)
−
(709)
(709)
Income from fees and charges
1 291
2 536
3 827
3 827
Other income
123
−
123
123
Total operating income
659 653
88 641
748 294
748 294
Salaries and employee benefits
(93 032)
(2 094)
(95 126)
(95 126)
Marketing
(51 091)
(122)
(51 213)
(51 213)
Other external services
(57 534)
(67)
(57 601)
(57 601)
Commission expenses
(14 515)
(121)
(14 636)
(14 636)
Amortisation and depreciation
(6 785)
(96)
(6 881)
(6 881)
Taxes and fees
(3 142)
(28)
(3 170)
(3 170)
Costs of maintenance and lease of buildings
(2 413)
(34)
(2 447)
(2 447)
Other costs
(5 265)
(36)
(5 301)
(5 301)
Total operating expenses
(233 777)
(2 598)
(236 375)
(236 375)
Operating profit
425 876
86 043
511 919
511 919
Impairment of investments in subsidiaries
−
−
−
(2 244)
Finance income
−
−
−
4 927
Finance costs
−
−
−
(365)
Profit before tax
−
−
−
514 237
Income tax
−
−
−
(96 061)
Net profit
−
−
−
418 176
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 32
ASSETS AND LIABILITIES AS AT 31.12.2020
(IN PLN’000)
RETAIL
OPERATIONS
INSTITUTIONAL
OPERATIONS
TOTAL
REPORTING
SEGMENTS
COMPREHENSIVE
INCOME
STATEMENT
Customers’ cash and cash equivalents
889 551
51 915
941 466
941 466
Financial assets at fair value through P&L
619 118
13 642
632 760
632 760
Other assets
581 038
367
581 405
581 405
Total assets
2 089 707
65 924
2 155 631
2 155 631
Amounts due to customers
1 051 609
52 643
1 104 252
1 104 252
Financial liabilities held for trading
63 508
9 890
73 398
73 398
Other liabilities
88 998
−
88 998
88 998
Total liabilities
1 204 115
62 533
1 266 648
1 266 648
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 33
14. Cash and cash equivalents
Broken down by type:
(IN PLN’000)
31.12.2021
31.12.2020
In current bank accounts
2 185 986
1 436 232
Cash and cash equivalents in total
2 185 986
1 436 232
Own cash and restricted cash – customers’ cash:
(IN PLN’000)
31.12.2021
31.12.2020
Customers’ cash and cash equivalents
1 635 115
941 466
Own cash and cash equivalents
550 871
494 766
Cash and cash equivalents in total
2 185 986
1 436 232
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
105 098
120 687
Currency CFDs
80 115
35 974
Stock and ETF CFDs
66 105
31 295
Commodity CFDs
59 029
37 041
Bond CFDs
18
12
Debt instruments
331 926
398 615
Stocks and ETFs
21 434
9 136
Total financial assets at fair value through P&L
663 725
632 760
Detailed information on the estimated fair value of the instrument is presented in note 38.1.1.
16. Investments in subsidiaries
(IN PLN’000)
31.12.2021
31.12.2020
At the beginning of the reporting period
35 890
54 463
Increase
5 012
−
Decrease
−
(36 409)
Utilization
−
20 080
Impairment of investments in subsidiaries
(1 023)
(2 244)
At the end of the reporting period
39 879
35 890
Impairment of investments in subsidiaries
(IN PLN’000)
31.12.2021
31.12.2020
Impairment write-downs of investments in subsidiaries – at the beginning of the
reporting period
(3 074)
(20 910)
Utilization
−
20 080
Write-downs recorded
(1 023)
(2 244)
Impairment write-downs of investments in subsidiaries – at the end of the reporting
period
(4 097)
(3 074)
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 34
Detailed information on subsidiaries
NAME OF SUBSIDIARY
COUNTRY OF REGISTERED
OFFICE
31.12.2021
31.12.2020
CARRYING
AMOUNT
OF SHARES
SHARE IN
CAPITAL
CARRYING
AMOUNT
OF SHARES
SHARE IN
CAPITAL
(IN PLN’000)
%
(IN PLN’000)
%
XTB Limited
Great Britain
20 139
100%
20 139
100%
X Open Hub Sp. z o.o.
Poland
5
100%
5
100%
XTB Limited
Cyprus
7 560
100%
7 560
100%
Tasfiye Halinde XTB Yönetim
Danışmanlığı A.Ş.
Turkey
861
100%
1 883
100%
XTB International Limited
Belize
4 420
100%
4 420
100%
XTB Chile SpA
Chile
403
100%
403
100%
XTB Services Limited
Cyprus
337
100%
337
100%
XTB Africa (PTY) Ltd.
RPA
2 339
100%
1 142
100%
XTB MENA Limited
ZEA
3 814
100%
−
100%
Lirsar S.A. en liquidacion
Uruguay
−
100%
−
100%
X Trading Technology Sp. z o.o. w
likwidacji
Poland
−
−
−
100%
XTB Services Asia Pte. Ltd
Singapore
−
−
−
100%
Total
39 878
35 889
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. 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 interim 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
• X Open Hub Sp. z o.o. – applications and electronic trading technology offering
• XTB Limited (CY) – brokerage activity
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 35
• 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
Impairment of investments in subsidiaries
As at 31 December 2021 due to the circumstances indicating value impairment as decrease of value of net assets value below
purchase price, the Company recognized a write-off due to impairment of its investment in a subsidiary in Turkey in the amount
of PLN 4 097 thousand. The impairment was recognized due to the decision made by the Company’s Management Board on
the 18 May 2017 to withdraw from activity in Turkey through taking actions intended to phase out XTB’s activity on this market
and liquidation of the subsidiary in Turkey. The impairment write-off was created up to the amount of net assets for which
almost entirely cash is held in the bank. As at 31 December 2020 the write-off due to impairment of Turkish subsidiary amounted
to PLN 3 074 thousand. As at the balance sheet date the process of withdrawing the activity was not finalized. Since December
2019 Tasfiye Halinde XTB Yönetim Danışmanlığı A.Ş does not have an active license to running business.
17. Financial assets at amortised cost
(IN PLN’000)
31.12.2021
31.12.2020
Receivables due from clients
26 983
16 008
Trade receivables
19 183
7 806
Deposits
3 603
1 991
Trade receivables due from related parties
346
300
Statutory receivables
312
347
Gross other receivables
50 427
26 452
Impairment write-downs of receivables
(39)
(9)
Impairment write-downs of receivables due from clients
(2 592)
(2 879)
Total net other receivables
47 796
23 564
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
(2 889)
(2 573)
Write-downs recorded
(333)
(357)
Write-downs reversed
354
40
Write-downs utilized
237
1
Impairment write-downs of receivables – at the end of the reporting period
(2 631)
(2 889)
Write-downs of receivables in 2021 and 2020 resulted from the debit balances which arose in customers’ accounts in those
periods.
18. Prepayments and deferred costs
(IN PLN’000)
31.12.2021
31.12.2020
CRM
2 026
1 461
Advertising
1 689
601
Licenses and news services
1 412
847
Database application
844
1 122
Insurance
276
273
Prepaid rent
210
182
Other
636
395
Total prepayments and deferred costs
7 093
4 881
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 36
19. 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
TOTAL
Gross value as at 1 January 2021
5 883
10 792
16 675
Additions
210
−
210
Sale and scrapping
(760)
−
(760)
Net foreign exchange differences
41
−
41
Gross value as at 31 December 2021
5 374
10 792
16 166
Accumulated amortization as at 1 January 2021
(5 406)
(10 792)
(16 198)
Amortization for the current period
(238)
−
(238)
Sale and scrapping
760
−
760
Net foreign exchange differences
(40)
−
(40)
Accumulated amortization as at 31 December 2021
(4 924)
(10 792)
(15 716)
Net book value as at 1 January 2021
477
−
477
Net book value as at 31 December 2021
450
−
450
Intangible assets manufactured internally relate to a financial instrument trading platform and applications compatible with this platform.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 37
Intangible assets in the period from 1 January 2020 to 31 December 2020
(IN PLN’000)
LICENCES FOR COMPUTER
SOFTWARE
INTANGIBLE ASSETS
MANUFACTURED INTERNALLY
TOTAL
Gross value as at 1 January 2020
5 556
10 792
16 348
Additions
324
−
324
Sale and scrapping
(47)
−
(47)
Net foreign exchange differences
50
−
50
Gross value as at 31 December 2020
5 883
10 792
16 675
Accumulated amortization as at 1 January 2020
(5 176)
(10 792)
(15 968)
Amortization for the current period
(220)
−
(220)
Sale and scrapping
37
−
37
Net foreign exchange differences
(47)
−
(47)
Accumulated amortization as at 31 December 2020
(5 406)
(10 792)
(16 198)
Net book value as at 1 January 2020
380
−
380
Net book value as at 31 December 2020
477
−
477
Intangible assets manufactured internally relate to a financial instrument trading platform and applications compatible with this platform.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 38
20. 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
TANGIBLE FIXED
ASSETS UNDER
CONSTRUCTION
TOTAL
COMPUTER
SYSTEMS
OTHER
PROPERTY,
PLANT AND
EQUIPMENT
Gross value as at 1 January 2021
14 846
7 049
13 485
361
23
35 764
Additions
4 003
3 051
−
−
309
7 363
Lease
−
−
1 142
195
−
1 337
Sale and scrapping
(607)
(2 587)
(7 066)
(149)
−
(10 409)
Net foreign exchange differences
11
23
37
6
1
78
Gross value as at 31 December 2021
18 253
7 536
7 598
413
333
34 133
Accumulated amortization as at 1 January 2021
(11 685)
(5 471)
(6 640)
(243)
−
(24 039)
Amortization for the current period
(2 708)
(592)
(3 825)
(122)
−
(7 247)
Sale and scrapping
602
2 203
6 832
147
−
9 784
Net foreign exchange differences
(12)
(15)
(37)
(5)
−
(69)
Accumulated amortization as at 31 December 2021
(13 803)
(3 875)
(3 670)
(223)
−
(21 571)
Net book value as at 1 January 2021
3 161
1 578
6 845
118
23
11 725
Net book value as at 31 December 2021
4 450
3 661
3 928
190
333
12 562
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 39
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
TANGIBLE FIXED
ASSETS UNDER
CONSTRUCTION
TOTAL
COMPUTER
SYSTEMS
OTHER
PROPERTY,
PLANT AND
EQUIPMENT
Gross value as at 1 January 2020
10 979
6 454
13 089
334
117
30 973
Additions
3 846
407
−
−
(94)
4 159
Lease
−
−
1 078
3
−
1 081
Sale and scrapping
(88)
−
(1 183)
−
−
(1 271)
Net foreign exchange differences
109
188
501
24
−
822
Gross value as at 31 December 2020
14 846
7 049
13 485
361
23
35 764
Accumulated amortization as at 1 January 2020
(9 315)
(4 850)
(3 566)
(104)
−
(17 835)
Amortization for the current period
(2 356)
(459)
(3 719)
(127)
−
(6 661)
Sale and scrapping
88
−
820
−
−
908
Net foreign exchange differences
(102)
(162)
(175)
(12)
−
(451)
Accumulated amortization as at 31 December 2020
(11 685)
(5 471)
(6 640)
(243)
−
(24 039)
Net book value as at 1 January 2020
1 664
1 604
9 523
230
117
13 138
Net book value as at 31 December 2020
3 161
1 578
6 845
118
23
11 725
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 40
Non-current assets by geographical area
(IN PLN’000)
31.12.2021
31.12.2020
Non-current assets
Central and Eastern Europe
8 895
7 712
- including Poland
8 132
6 574
Western Europe
4 117
4 490
Total non-current assets
13 012
12 202
21. Amounts due to customers
(IN PLN’000)
31.12.2021
31.12.2020
Amounts due to retail customers
1 815 098
1 051 609
Amounts due to institutional customers
64 093
52 643
Total amounts due to customers
1 879 191
1 104 252
Amounts due to customers are connected with transactions concluded by the customers (including cash deposited in the
customers’ accounts).
22. Financial liabilities held for trading
(IN PLN’000)
31.12.2021
31.12.2020
Stock and ETF CFDs
33 170
25 578
Index CFDs
28 777
24 053
Currency CFDs
20 356
8 625
Commodity CFDs
12 134
15 139
Bond CFDs
32
3
Total financial liabilities held for trading
94 469
73 398
23. Other liabilities
(IN PLN’000)
31.12.2021
31.12.2020
Trade liabilities
19 715
18 894
Provisions for other employee benefits
17 034
22 722
Liabilities due to brokers
3 692
6 842
Statutory liabilities
3 259
3 833
Liabilities due to employees
524
414
Amounts due to the Central Securities Depository of Poland
205
178
Total other liabilities
44 429
52 883
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 Company 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 Company, the employees of the Company in the top
management positions annually receive 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.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 41
24. Liabilities due to lease
(IN PLN’000)
31.12.2021
31.12.2020
Short- term
1 611
4 094
Long- term
2 771
3 450
Total liabilities due to lease
4 382
7 544
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 136 thousand, in 2020 the cost related to lease of low-value assets included in the statement of comprehensive income
amounted to PLN 134 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 58 thousand, the cost related to lease of low-value assets included in the statement
of comprehensive income amounted to PLN 177 thousand.
25. Provisions for liabilities and contingent liabilities
25.1 Provisions for liabilities
(IN PLN’000)
31.12.2021
31.12.2020
Provisions for retirement benefits
150
196
Provisions for legal risk
4 515
4 715
Total provisions
4 665
4 911
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 Company
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 proceedings described therein and the future resolution of these proceedings in the context of
a possible impact on other clients of the Company have no material impact on these 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
VALUE AS AT
31.12.2021
USE
REVERSAL
Provisions for retirement benefits
196
−
−
46
150
Provisions for legal risk
4 715
141
−
341
4 515
Total provisions
4 911
141
−
387
4 665
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
VALUE AS AT
31.12.2020
USE
REVERSAL
Provisions for retirement benefits
126
70
−
−
196
Provisions for legal risk
1 326
3 481
28
64
4 715
Total provisions
1 452
3 551
28
64
4 911
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 42
25.2 Contingent liabilities
The Company is party to a number of court proceedings associated with the Company’s operations. The proceedings in which
the Company acts as defendant relate mainly to employees’ and customers’ claims. As at 31 December 2021 the total value of
claims brought against the Company amounted to approx. PLN 15 693 thousand (as at 31 December 2020: PLN 14 801
thousand). Company has not created provisions for the above proceedings. In the assessment of the Company there is low
probability of loss in these proceedings.
On May 9, 2014, the 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 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. The agreement has been extended for an unlimited period with the possibility of termination.
26. 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 Company
To the best Company’s knowledge, the shareholding structure of the 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 598 651 thousand,
• foreign exchange differences on translation, including foreign exchange differences on translation of balances in foreign
currencies of branches and foreign operations in the amount of PLN 1 450 thousand
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 43
(IN PLN’000)
31.12.2021
31.12.2020
X-Trade Brokers Dom Maklerski Spółka Akcyjna branch in Germany
777
795
X-Trade Brokers Dom Maklerski Spółka Akcyjna branch in Romania
283
287
X-Trade Brokers Dom Maklerski Spółka Akcyjna branch in France
258
275
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 Spółka Akcyjna
55
−
Total foreign exchange differences on translation
1 450
2 738
27. 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.
28. Earnings per share
Basic earnings per share are calculated by dividing the net profit for the period attributable to shareholders of the Company by
the weighted average number of ordinary shares outstanding during the period. When calculating both basic and diluted
earnings per share, the Company uses the amount of net profit attributable to shareholders of the 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
31.12.2020
Profit from continuing operations attributable to shareholders of the
Company
234 841
418 176
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 Company
2,00
3,56
Diluted net profit per share from continuing operations for the year
attributable to shareholders of the Company
2,00
3,56
29. Current income tax and deferred tax
29.1 Income tax
Income tax disclosed in the current period’s profit and loss
(IN PLN’000)
TWELVE-MONTH PERIOD ENDED
31.12.2021
31.12.2020
Income tax – current portion
Income tax for the reporting period
(42 363)
(89 390)
Income tax – deferred portion
Occurrence / reversal of temporary differences
(9 447)
(6 671)
Income tax disclosed in profit and loss
(51 810)
(96 061)
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 44
Reconciliation of the actual tax burden
(IN PLN’000)
TWELVE-MONTH PERIOD ENDED
31.12.2021
31.12.2020
Profit before tax
286 651
514 237
Income tax based in the applicable tax rate of 19%
(54 464)
(97 705)
Difference resulting from application of tax rates applicable in other
countries
(177)
(176)
Non-taxable revenue
666
583
Non-deductible expenses
(959)
(806)
Realisation of tax losses for the preceding periods
26
44
Other items affecting the tax burden amount
3 098
1 999
Income tax disclosed in profit or loss
(51 810)
(96 061)
On the basis of art 18d of Act on corporate income tax dated 15 February 1992 with further amendments the Company benefited
in 2021 from the tax burden for research and development in total amounted to PLN 4 510 thousands. In 2020 from the tax
burden for research and development in total amounted to PLN 3 274 thousands.
29.2 Deferred income tax
29.2.1 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
29.2.2 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
6 651
7 348
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 6 651 thousand (as at 31 December 2020: PLN 7 111 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.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 45
Deferred tax losses may be utilised over an unlimited period in France. Forecasted results of these branches, their margins and
development plans assume an effective settlement of losses in the future.
29.2.3 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 AT 31.12.2021
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
(245)
425
Prepayments and deferred costs
3 103
(582)
2 521
Other liabilities
3 002
3 907
6 909
Tax losses of previous periods to be settled in future periods
7 348
(697)
6 651
Total deferred income tax assets
28 457
7 065
35 522
(IN PLN’000)
AS AT
01.01.2021
PROFIT
OR (LOSS)
AS AT 31.12.2021
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
Financial assets at amortised cost
−
326
326
Other liabilities
145
(145)
−
Property, plant and equipment
−
299
299
Total deferred income tax provision
43 387
16 512
59 899
Deferred tax disclosed in profit or (loss)
−
(9 447)
−
(IN PLN’000)
AS AT
01.01.2021
INCLUDED
IN EQUITY
AS AT 31.12.2021
Deferred income tax provision included directly in the equity:
Separate equity of branches
718
(44)
674
Total deferred income tax provision included directly in the
equity
718
(44)
674
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 AT 31.12.2020
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
1 304
1 799
3 103
Other liabilities
1 829
1 173
3 002
Tax losses of previous periods to be settled in future periods
7 111
237
7 348
Total deferred income tax assets
14 158
14 299
28 457
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 46
(IN PLN’000)
AS AT
01.01.2020
PROFIT
OR (LOSS)
AS AT 31.12.2020
Deferred income tax provision:
Cash and cash equivalents
−
15
15
Financial assets at fair value through P&L
22 324
20 903
43 227
Other liabilities
93
52
145
Total deferred income tax provision
22 417
20 970
43 387
Deferred tax disclosed in profit or (loss)
−
(6 671)
−
(IN PLN’000)
AS AT
01.01.2020
INCLUDED
IN EQUITY
AS AT 31.12.2020
Deferred income tax provision included directly in the equity:
Separate equity of branches
113
605
718
Total deferred income tax provision 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
152
153
Western Europe
6 668
7 365
Total deferred income tax assets
6 820
7 518
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
DATA PRESENTED IN THE STATEMENT OF
FINANCIAL POSITION
DEFERRED INCOME
TAX ASSETS
DEFERRED INCOME
TAX PROVISION
DEFERRED INCOME
TAX ASSETS
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
−
Total
35 522
60 573
6 820
31 871
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
DATA PRESENTED IN THE STATEMENT OF
FINANCIAL POSITION
DEFERRED INCOME
TAX ASSETS
DEFERRED INCOME
TAX PROVISION
DEFERRED INCOME
TAX ASSETS
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
−
Total
28 457
44 105
7 518
23 166
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 47
30. Related party transactions
30.1 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.
30.2 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).
30.3 Incomes and costs
The below table presents incomes and costs with related parties regarding the intermediary and liquidity agreements performed
for the Company
(IN PLN’000)
2021
2020
INCOMES
COSTS
INCOMES
COSTS
XTB Limited (UK)
12 809
(15 974)
40 875
(16 188)
XTB Limited (CY)
4 872
(3 175)
8 771
(2 763)
XTB MENA Limited
5 594
(7 134)
−
−
XTB International Limited
153 711
(58 973)
96 227
(37 217)
The below table presents incomes and costs with related parties regarding the trading infrastructure software and service
agreements performed for the Company.
(IN PLN’000)
2021
2020
INCOMES
COSTS
INCOMES
COSTS
XTB Limited (UK)
infrastructure
software
536
(892)
208
(1 098)
X Open Hub Sp. z o.o.
infrastructure
software
1 858
(1 947)
2 068
(1 992)
XTB Services Limited
marketing
−
(36 459)
−
(30 925)
30.4 Receivables
The below table presents receivables from related parties regarding the intermediary and liquidity agreements performed for
the Company.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 48
(IN PLN’000)
31.12.2021
31.12.2020
XTB Limited (UK)
9 745
11 087
XTB Limited (CY)
−
97
XTB MENA Limited
5 545
−
XTB International Limited
8 628
1 388
The below table presents receivables from related parties regarding the trading infrastructure software and service agreements
performed for the Company
(IN PLN’000)
31.12.2021
31.12.2020
XTB Limited (UK)
84
8
X Open Hub Sp. z o.o.
261
292
30.5 Liabilities
The below table presents liabilities due to related parties regarding the intermediary and liquidity agreements performed for the
Company.
(IN PLN’000)
31.12.2021
31.12.2020
XTB Limited (UK)
11 600
5 055
XTB Limited (CY)
2 200
1 456
XTB MENA Limited
748
−
XTB International Limited
38 237
7 415
The below table presents liabilities due to related parties regarding the trading infrastructure software and service agreements
performed for the Company.
(IN PLN’000)
31.12.2021
31.12.2020
XTB Limited (UK)
8
103
X Open Hub Sp. z o.o.
−
323
XTB Services Limited
2 390
1 763
30.6 Benefits to Management Board and Supervisory Board
(IN PLN’000)
TWELVE-MONTH PERIOD ENDED
31.12.2021
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 23 of the financial statements.
30.7 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.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 49
31. 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
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
50
50
Total remuneration of the audit companies
661
634
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 amounted to PLN 595 thousand (in 2020: PLN 570 thousand), including
45 thousand PLN relates to other attestation services and 120 thousand semi-annual financial reviews.
32. Employment
The average number of employees in the Company was 487 persons in 2021 and 419 persons in 2020.
33. Supplementary information and explanations to the cash flow statement
33.1 Other adjustments
The “other adjustments” item includes the following adjustments
(IN PLN’000)
TWELVE-MONTH PERIOD ENDED
31.12.2021
31.12.2020
Change in the balance of differences from the conversion of branches and
subsidiaries
(1 288)
1 712
Foreign exchange differences on translation of movements in property,
plant and equipment, and intangible assets
(10)
(374)
Change in other adjustments
(1 298)
1 338
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 Company’s foreign entities and the difference between the rate applied to value amortization and depreciation cost
of fixed assets and intangible assets in the Company’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.
34. 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 Company, however it has caused high volatility in financial markets
and declines in financial and commodity exchanges around the world.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 50
35. Off-balance sheet items
35.1 Nominal value of financial instruments
(IN PLN’000)
31.12.2021
31.12.2020
Index CFDs
3 488 965
3 937 302
Currency CFDs
2 550 040
1 451 853
Commodity CFDs
1 577 792
1 108 519
Stock and ETF CFDs
908 023
875 122
Bond CFDs
3 813
384 593
Total financial instruments
8 528 633
7 757 389
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:
15% of the total nominal value of instruments).
35.2 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, ETFs 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
35.3 Transaction limits
The amount of unused transaction limits granted to related entities was as at 31 December 2021 PLN 96 894 thousand and as
at 31 December 2020 was PLN 61 956 thousand.
36. 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
37. Capital management
The Company’s principles of capital management are established in the “Capital management policy in XTB S.A.”. The document
is approved by the Company’s Supervisory Board. The policy defines the basic concepts, objectives and rules which constitute
the 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 Company 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 Company to operate in a prudent and efficient manner. This objective is attained by maintaining
an appropriate capital base, taking into account the Company’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 Company 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 Company’s
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 51
risk appetite. To establish its capital-related goals, the Company 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 Company’s current and future capital requirements (both regulatory and
internal), and on comparing them with the current and projected levels of available capital. The Company has prepared
contingency plans to be launched in the event of a capital adequacy problem, described in detail in the “Capital management
policy in XTB S.A.”.
As part of ICAAP, the Company assesses its internal capital in order to define the overall capital requirement to cover all
significant risks in the Company’s operations and evaluates its quality. The Company estimates internal capital necessary to
cover identified significant risks in compliance with procedures adopted by the Company and taking into account stress test
results.
The 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 the prudential requirements for credit institutions and investment firms (CRR) and
• 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 Company is the K-factor capital
requirement.
Till 25th June 2021 the 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 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 of calculation of own funds are established in the CRR resolution, “The procedure for calculating capital adequacy
ratios in XTB S.A.” and are not regulated by IFRS.
The Company currently has only own funds of the best category - Tier I.
Pursuant to the Act of 5 August 2015 on macroprudential supervision of the financial system and crisis management, from 1st
Jan 2016 the Company was obliged to hold capital buffers requirement. In the period covered by this financial statement the
Company 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 Company.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 52
Key values in capital management:
(IN PLN’000)
31.12.2021
31.12.2020
Own funds
661 876
534 031
Tier I Capital
661 876
534 031
Common Equity Tier I capital
661 876
534 031
Total risk exposure *
3 912 043
2 689 969
Total capital requirement*
312 963
215 194
Capital conservation buffer
-
67 249
Countercyclical capital buffer
-
7 402
Combined buffer requirement CRR**
-
74 651
Total capital ratio CRR**
16,9%
19,9%
Total capital ratio CRR ** including buffers
16,9%
17,1%
Minimal required total capital ratio including buffers (article 92 section1
letter c) of CRR)
8%
8%
Total capital ratio IFR***
211,5%
213,5%
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.
The mandatory capital adequacy was not breached in the periods covered by the condensed 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
661 876
578 750
534 031
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
(13 789)
(60 926)
(11 575)
I. Level of capitals subject to monitoring/Own funds
661 876
578 750
534 031
1. Market risk
−
241 043
120 769
2. Settlement and delivery risk, contractor’s credit risk and the CVA
requirement
−
13 807
11 382
3. Credit risk
−
60 346
47 601
4. Operating risk
−
55 855
35 445
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 **
312 963
371 051
215 197
IIb. Total risk exposure CRR**
3 912 043
4 638 143
2 689 969
Capital conservation buffer
−
104 512
67 249
Countercyclical capital buffer
−
11 399
7 402
Combined buffer requirement
-
115 911
74 651
1. Risk to Client, including:
7 346
6 159
−
1.1. K-AUM
−
−
−
1.2 K-CMH
6 431
5 443
−
1.3 K-ASA
862
648
−
1.4 K-COH
52
68
−
2. Risk to Market, including:
193 001
241 043
−
2.1 K-NPR
193 001
241 043
−
2.2 K-CMG
−
−
−
3. Risk to Firm, including:
112 616
128 286
−
3.1 K-TCD
110 766
126 699
−
3.2 K-DTF
1 850
1 587
−
3.3 K-CON
−
−
−
III. Total K-factor capital requirement (IFR)
312 963
375 488
−
*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.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 53
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 Company calculates the requirement for fixed overheads. However, it is significantly
lower than the K-factor capital requirement.
38. Risk management
The Company is exposed to a variety of risks connected with its current operations. The purpose of risk management is to make
sure that the Company 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.
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 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.
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 Company’s Supervisory Board approves risk management system.
38.1 Fair value
38.1.1 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 customers and other liabilities is estimated as being close
to their carrying amount in view of the short-term maturities of these balance sheet items
38.1.2 Fair value hierarchy
The Company 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).
(IN PLN’000)
31.12.2021
LEVEL 1
LEVEL 2
LEVEL 3
TOTAL
Financial assets
Financial assets at fair value through P&L
353 360
310 365
−
663 725
Total financial assets
353 360
310 365
−
663 725
Financial liabilities
Financial liabilities held for trading
−
94 469
−
94 469
Total financial liabilities
−
94 469
−
94 469
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 54
(IN PLN’000)
31.12.2020
LEVEL 1
LEVEL 2
LEVEL 3
TOTAL
Financial assets
Financial assets at fair value through P&L
407 751
225 009
−
632 760
Total financial assets
407 751
225 009
−
632 760
Financial liabilities
Financial liabilities held for trading
−
73 398
−
73 398
Total financial liabilities
−
73 398
−
73 398
In the periods covered by the condensed 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, ie. from reliable liquidity suppliers and reputable news, adjusted for the spread specified by the
Company. 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 Company, was insignificant from the point of
view of the general estimation of derivative transactions concluded by the Company. Therefore, the Company 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.
38.2 Market risk
In the period covered by these financial statements, the Company entered into OTC contracts for differences (CFDs) and digital
options. The Company 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 Company’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 Company 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.
38.2.1 Currency risk
The Company enters into transactions principally in instruments bearing currency risk. Aside from transactions where the FX
rate is an underlying instrument, the Company also offers instruments which price is denominated in foreign currencies. Also,
the Company 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 Company’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.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 55
Assets and liabilities denominated in foreign currencies as at 31 December 2021
(IN PLN’000)
VALUE IN FOREIGN CURRENCIES CONVERTED TO PLN
CARRYING
AMOUNT
USD
EUR
GBP
CZK
HUF
RON
OTHER
CURRENCIES
TOTAL
Assets
Cash and cash equivalents
461 030
763 478
13 190
207 735
6 006
22 838
3 526
1 477 803
2 185 986
Financial assets held for trading
61 732
106 839
3 619
41 993
1 260
3 756
6 735
225 934
663 725
Investments in subsidiaries
−
−
−
−
−
−
−
−
39 879
Income tax receivables
−
72
−
−
−
−
−
72
7 247
Financial assets at amortised cost
18 607
8 088
1 829
1 640
2 230
562
1 077
34 033
47 796
Prepayments and deferred costs
−
1 132
−
126
−
10
−
1 268
7 093
Intangible assets
−
−
−
30
−
1
−
31
450
Property, plant and equipment
−
4 165
−
626
−
60
−
4 851
12 562
Deferred income tax assets
−
6 760
−
60
−
−
−
6 820
6 820
Total assets
541 369
890 534
18 638
252 210
9 496
27 227
11 338
1 750 812
2 971 558
Liabilities
Amounts due to customers
182 146
740 508
9 627
226 312
3 950
23 019
3 507
1 189 069
1 879 191
Financial liabilities held for trading
38 768
22 426
790
9 361
143
854
1 931
74 273
94 469
Income tax liabilities
−
132
−
−
−
−
−
132
132
Lease liabilities
−
4 361
−
21
−
−
−
4 382
4 382
Other liabilities
6 907
12 944
3 327
1 750
−
471
36
25 435
44 429
Provisions for liabilities
−
1 380
−
−
−
−
−
1 380
4 665
Deferred income tax provision
−
−
−
−
−
−
−
−
31 871
Total liabilities
227 821
781 751
13 744
237 444
4 093
24 344
5 474
1 294 671
2 059 139
XTB S.A.
Standalone 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 2020
(IN PLN’000)
VALUE IN FOREIGN CURRENCIES CONVERTED TO PLN
CARRYING
AMOUNT
USD
EUR
GBP
CZK
HUF
RON
OTHER
CURRENCIES
TOTAL
Assets
Cash and cash equivalents
255 179
521 357
13 478
140 083
3 778
17 971
1 684
953 530
1 436 232
Financial assets held for trading
28 894
91 536
2 527
26 356
1 205
3 093
8 341
161 952
632 760
Investments in subsidiaries
−
−
−
−
−
−
−
−
35 890
Income tax receivables
−
−
−
−
−
−
−
−
2 584
Financial assets at amortised cost
8 206
8 477
1 365
401
2 241
554
638
21 882
23 564
Prepayments and deferred costs
−
273
−
88
−
15
−
376
4 881
Intangible assets
−
1
−
58
−
1
−
60
477
Property, plant and equipment
−
4 633
−
883
−
52
−
5 568
11 725
Deferred income tax assets
−
7 451
−
67
−
−
−
7 518
7 518
Total assets
292 279
633 728
17 370
167 936
7 224
21 686
10 663
1 150 886
2 155 631
Liabilities
Amounts due to customers
75 174
470 467
3 863
126 293
3 870
15 900
1 881
697 448
1 104 252
Financial liabilities held for trading
14 817
26 439
1 085
8 327
140
765
1 812
53 385
73 398
Income tax liabilities
−
494
−
−
−
−
−
494
494
Lease liabilities
−
7 468
−
63
−
−
−
7 531
7 544
Other liabilities
8 690
15 848
3 474
1 977
−
465
115
30 569
52 883
Provisions for liabilities
−
−
−
−
−
−
−
−
4 911
Deferred income tax provision
−
−
−
−
−
−
−
−
23 166
Total liabilities
98 681
520 716
8 422
136 660
4 010
17 130
3 808
789 427
1 266 648
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 57
A change in exchange rates, in particular, the PLN exchange rate, affects the balance sheet valuation of the Company’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 Company’s equity and profit before tax to a 5% increase or decrease of the PLN exchange rate is presented
below:
(IN PLN’000)
TWELVE-MONTH PERIOD ENDED
31.12.2021
31.12.2020
INCREASE IN
EXCHANGE
RATES
DECREASE IN
EXCHANGE
RATES
INCREASE IN
EXCHANGE
RATES
DECREASE IN
EXCHANGE
RATES
BY 5%
BY 5%
BY 5%
BY 5%
Income (expenses) of the period
35 438
(35 438)
21 038
(21 038)
Equity, of which:
703
(703)
1 291
(1 291)
Foreign exchange differences on translation
703
(703)
1 291
(1 291)
The sensitivity of equity is connected with foreign exchange differences in the translation of value in functional currencies of
the foreign operations.
38.2.2 Interest rate risk
Interest rate risk is the risk of exposure of the current and future financial result and equity of the Company to the adverse
impact of exchange rate fluctuations. Such risk may result from the contracts entered into by the Company, 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 Company is the mismatch of interest rates paid to customers in connection with funds deposited
in cash accounts in the Company, and of the bank account and bank deposits where the Company’s customers’ funds are
invested.
In addition, the source of the Company’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.
As a rule, the change in bank interest rates does not significantly affect the Company’s financial position, since the Company
determines interest rates for funds deposited in customers’ cash accounts based on a variable formula, in an amount not higher
than the interest rate received by the Company from the bank maintaining the bank account in which customers’ funds are
deposited. Interest rates applicable to cash accounts are floating, and related to WIBID/WIBOR/LIBOR/EURIBOR rates.
Therefore, the risk of interest rate mismatch adverse to the brokerage house is very low.
Since the Company 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. As part of a significant risk identification
process, the Risk Management Committee established that the interest rate risk is not significant for the Company’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
2 185 986
1 436 232
Debt instruments
331 926
398 616
Total financial assets
2 517 912
1 834 848
Financial liabilities
Other liabilities
4 382
7 544
Total financial liabilities
4 382
7 544
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 2021 and 2020, using the average 1M interest rate in a given market.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 58
(IN PLN’000)
TWELVE-MONTH PERIOD ENDED
31.12.2021
31.12.2020
INCREASE
BY 50 PB
DECREASE
BY 50 PB
INCREASE
BY 50 PB
DECREASE
BY 50 PB
Profit/(loss) before tax
2 762
(2 762)
6 230
(6 230)
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 Company 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)
TWELVE -MONTH PERIOD ENDED
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
38.2.3 Other price risk
Other price risk is exposure of the Company’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
26 010
8 766
Base metals
847
470
Other
32 171
27 822
Total commodity
59 028
37 057
Equity instruments
Stocks and ETF
87 548
40 412
Indicies
105 127
120 751
Total equity instruments
192 675
161 163
Debt instruments
18
12
Total financial assets at fair value through P&L
251 721
198 232
Financial liabilities held for trading
Commodity
Precious metals
5 882
6 927
Base metals
363
95
Other
5 890
8 124
Total commodity
12 135
15 146
Equity instruments
Stocks and ETF
33 173
25 570
Indicies
28 906
24 057
Total equity instruments
62 079
49 627
Debt instruments
32
3
Total financial liabilities held for trading
74 246
64 776
The Company’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.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 59
(IN PLN’000)
TWELVE-MONTH PERIOD ENDED
31.12.2021
31.12.2020
INCREASE BY 5%
DECREASE BY 5 %
INCREASE BY 5%
DECREASE BY 5 %
Income/(expenses) for the period
Commodity
Precious metals
(18 761)
18 761
(5 508)
5 508
Base metals
(32)
32
(202)
202
Other
(2 150)
2 150
7 555
(7 555)
Total commodity
(20 943)
20 943
1 845
(1 845)
Equity instruments
Stocks and ETFs
73
(73)
17
(17)
Indicies
12 604
(12 604)
10 124
(10 124)
Total equity instruments
12 677
(12 677)
10 140
(10 140)
Debt instruments
71
(71)
(45)
45
Total income/(expenses) for the period
(8 195)
8 195
11 940
(11 940)
38.3 Liquidity risk
For the Company, 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 Company takes into consideration current possibility of generation of liquid assets, future
needs, alternative scenarios and payment liquidity contingency plans.
The objective of liquidity management in 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
Company 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 Company 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 Company 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 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 Company’s Accounting Department in order to make certain operations in the accounts.
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 Company’s Management. Information on deviations is transmitted to the Risk Control Department of
the Company.
The 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 Company monitor the balance of funds deposited in the account in the context of planned liquidity needs related to
the 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 operations concerning the balance of cash accounts are also performed by the Risk Control Department
of Company on a daily basis.
According to IFR from 26
th
June 2021 the 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 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 Company holds over a dozen times higher level of liquid assets than required by IFR.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 60
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
2 185 986
2 185 986
2 185 986
−
−
−
−
Financial assets at fair value through P&L
Listed stocks and ETF
21 434
21 434
21 434
−
−
−
−
Bonds
331 926
331 926
331 926
CFDs
310 365
310 365
310 365
−
−
−
−
Total financial assets at fair value through
P&L
663 725
663 725
663 725
−
−
−
−
Investments in subsidiaries
39 879
39 879
−
−
−
−
39 879
Financial assets at amortised cost
47 796
47 796
44 193
−
3 603
−
−
Total financial assets
2 937 386
2 937 386
2 893 904
−
3 603
−
39 879
Financial liabilities
Amounts due to customers
1 879 191
1 879 191
1 879 191
−
−
−
−
Financial liabilities held for trading
CFDs
94 469
94 469
94 469
−
−
−
−
Total financial liabilities held for trading
94 469
94 469
94 469
−
−
−
−
Lease liabilities
4 382
4 382
454
1 158
2 770
−
−
Other liabilities
44 429
44 429
27 191
12 250
−
−
4 988
Total financial liabilities
2 022 471
2 022 471
2 001 305
13 408
2 770
−
4 988
Contractual liquidity gap in maturities
(payment dates)
892 599
(13 408)
833
−
34 891
Contractual cumulative liquidity gap
892 599
879 191
880 024
880 024
914 915
XTB S.A.
Standalone 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 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
1 436 232
1 436 232
1 436 232
−
−
−
−
Financial assets at fair value through P&L
Listed stocks and ETF
9 136
9 136
9 136
−
−
−
−
Bonds
398 616
398 616
398 616
CFDs
225 008
225 008
225 008
−
−
−
−
Total financial assets at fair value through
P&L
632 760
632 760
632 760
−
−
−
−
Investments in subsidiaries
35 890
35 890
−
−
−
−
35 890
Financial assets at amortised cost
23 564
23 564
21 573
−
1 991
−
−
Total financial assets
2 128 446
2 128 446
2 090 565
−
1 991
−
35 890
Financial liabilities
Amounts due to customers
1 104 252
1 104 252
1 104 252
−
−
−
−
Financial liabilities held for trading
CFDs
73 398
73 398
73 398
−
−
−
−
Total financial liabilities held for trading
73 398
73 398
73 398
−
−
−
−
Lease liabilities
7 544
7 544
1 098
2 995
2 974
477
−
Other liabilities
52 883
52 883
29 983
19 705
−
−
3 195
Total financial liabilities
1 238 077
1 238 077
1 208 731
22 700
2 974
477
3 195
Contractual liquidity gap in maturities
(payment dates)
881 834
(22 700)
(983)
(477)
32 695
Contractual cumulative liquidity gap
881 834
859 134
858 151
857 674
890 369
Company does not expect the cash flows presented in the maturity analysis to occur significantly earlier or in significantly different amounts.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 62
38.4 Credit risk
The chart below shows the carrying amounts of financial assets corresponding to the Company’s exposure to credit risk:
(IN PLN’000)
31.12.2021
31.12.2020
CARRYING
AMOUNT
MAXIMUM
EXPOSURE TO
CREDIT RISK
CARRYING
AMOUNT
MAXIMUM
EXPOSURE TO
CREDIT RISK
Financial assets
Cash and cash equivalents
2 185 986
2 185 986
1 436 232
1 436 232
Financial assets at fair value through P&L *
663 725
35 558
632 760
30 603
Investments in subsidiaries
39 879
39 879
35 890
35 890
Financial assets at amortised cost
47 796
47 796
23 564
23 564
Total financial assets
2 937 386
2 309 219
2 128 446
1 526 289
* As at 31 December 2021 the maximum exposure to credit risk for financial assets held for trading, not including the collateral received, was PLN 35 558 thousand (2020: PLN 30 603 thousand).
This exposure was collateralised with customers’ cash, which, as at 31 December 2021, covered the amount of PLN 274 807 thousand (2020: PLN 194 406 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 Company’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 Company’s assets fall within the following credit rating brackets:
• Fitch Ratings – from F1+ to F2
• Standard & Poor's Ratings Services – from A-1+ to A-3
• Moody’s – from P-1 to P-2
Cash and cash equivalents
Credit risk connected with cash and cash equivalents is related to the fact that own cash and customers’ 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 Company had
deposit accounts in 24 banks and institutions (2020: in 22 banks and institutions). The ten largest exposures are presented in
the table below (numbering of banks and institutions determined individually for each period:
31.12.2021
31.12.2020
ENTITY
(IN PLN’000)
ENTITY
(IN PLN’000)
Bank 1
617 157
Bank 1
395 339
Bank 2
326 417
Bank 2
217 016
Institution 1
313 432
Bank 3
149 940
Bank 3
279 383
Bank 4
110 339
Institution 2
123 257
Bank 5
91 259
Bank 4
104 403
Bank 6
80 292
Bank 5
88 179
Bank 7
58 939
Bank 6
73 255
Bank 8
54 327
Institution 3
67 669
Bank 9
53 925
Institution 4
59 801
Bank 10
49 917
Other
133 033
Other
174 939
Total
2 185 986
Total
1 436 232
The table below presents a short-term assessment of the credit quality of the Company’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.
XTB S.A.
Standalone financial statements for 2021
(Translation of a document originally issued in Polish)
www.xtb.pl 63
CREDIT QUALITY STEPS
CARRYING AMOUNT (IN PLN’000)
31.12.2021
31.12.2020
Cash and cash equivalent
Step 1
1 894 543
1 293 916
Step 2
3 755
2 250
Step 3
287 688
140 066
Total
2 185 986
1 436 232
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 Company’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 Company’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 Company 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 Company’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:
31.12.2021
31.12.2020
ENTITY
NET EXPOSURE (IN PLN’000)
ENTITY
NET EXPOSURE (IN PLN’000)
Entity 1
12 206
Entity 1
10 163
Entity 2
10 509
Entity 2
8 542
Entity 3
8 837
Entity 3
4 665
Entity 4
1 242
Entity 4
747
Entity 5
992
Entity 5
685
Entity 6
435
Entity 6
604
Entity 7
344
Entity 7
566
Entity 8
161
Entity 8
528
Entity 9
106
Entity 9
258
Entity 10
97
Entity 10
247
Total
34 929
Total
27 005
Other receivables
Other receivables do not show a significant concentration, and they arose in the normal course of the Company’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 Company.
WWW.XTB.PL