XTB beat estimates with a 245% gain in second-quarter profit, boosted by an influx of retail traders that took advantage of the volatile markets due to the Russia-Ukraine war.
Polish Forex and CFD broker XTB reports its final results for the first half of 2022 which ended on 30 June. Over the past 6 months, XTB recorded a reported revenue of PLN 836.2 million ($178 million), up 245% over the same period last year. On a quarter-on-quarter basis, the company posted revenue of PLN396 million in Q2, down from PLN's 440 million in the first quarter.
In addition, XTB saw operating costs increase in the first half to reach PLN267 million ($57 million), up 64% year-on-year from PLN167 million in the same period in 2021. In terms of its operating income, XTB broker also disclosed a net profit of PLN480 million ($102 million), which is six times higher than PL 65 million in the first half of 2021.
XTB and other brokers both experienced an increase in trading volume in early 2022 due to an influx of retail traders trying to take advantage of the Russia-Ukraine geopolitical issue. In detail, CFD trading volume jumped to 3 million lots compared to 1.9 million in Q1 2021.
The Warsaw-based broker explained that the index CFD segment generates 49% of the company's total revenue. The second profitable asset class is stock commodity CFDs, with a total revenue gain of 35%. On the other hand, Forex CFDs actually generate less than 13% of XTB's total revenue.