In 2023, XTB UK, a subsidiary of the publicly listed fintech group XTB, reported a 21% increase in revenue and over a 100% increase in net profit, reflecting the positive trend seen across the entire group.
This performance was underpinned by a surge in active clients, growing by over 90%, according to a report highlighted by Finance Magnates.
The UK branch, which was established in London in 2015 and is regulated by the FCA, generated £4.7 million in revenue, up from £3.9 million the previous year.
The firm, rooted in Poland, focuses on offering CFD products and developing long-term investment solutions.
The notable growth in 2023, attributed to greater market volatility and the introduction of new investment products such as real stocks and ETFs, led to a significant 93% rise in new retail clients in the fourth quarter alone, compared to 2022.
Despite facing increased administrative costs, XTB UK managed to achieve an operating profit of £178,527, marking a 27% increase, and a net profit of £237,111, which is double the figure from the previous year.
The total value of the company’s assets also saw an upward trajectory, surpassing £9 million.
While XTB UK’s achievements may seem modest in comparison to the entire XTB Group, which reported a net profit of PLN 791.3 million, it’s important to note the UK branch’s size and focus, with a 36-person team primarily dedicated to marketing and sales.
However, XTB’s ambitions extend further, as it eyes the UK’s £400 billion Individual Savings Accounts (ISAs) market.
XTB’s CEO, Omar Arnaout, expressed optimism about entering the ISA market, stating, “Budgeting for the end of last year as well as this year, we want to fight for the market again, because we finally have something to fight with.”
He highlighted the competitive nature of the market and the company’s intention to apply for an ISA, aiming to tap into the nearly 12 million ISA subscriptions recorded annually in the UK.
Joshua Raymond, CEO of XTB UK, echoed this sentiment, acknowledging the significant opportunity the ISA market represents for the company.
This move could potentially transform XTB UK’s market position, substantially enhancing its customer base and revenue.