Decrease in XTB income by 38% in the first quarter of 2017

XTB results for the first quarter of this year have been published today. The company has been listed for a year on the Warsaw Stock Exchange, which requires it to publish quarterly reports.

Fall by 38%

This is how XTB's revenues decreased in the first quarter of this year. compared to Q2016 59 and amounted to PLN XNUMX million. The decline seems to be large, but let's remember that at the end of last year, the company's revenues reached historic records. This was helped by market volatility (stimulated, among others, by the presidential election in the US), as well as a reshuffle on the brokerage market in Poland. As many as three brokerage houses (including two considered strong competitors of XTB) withdrew from the Forex market after the KNF implemented new guidelines. The company itself in the presented report does not present in detail the reasons for lower income, referring only to the fact that profits achieved in the Forex industry are characterized by high volatility caused, the situation on world financial markets. It is enough to look at the diagram of XTB's quarterly results for the last two years to come to similar conclusions.

source: Leap Rate

Profits from CFD instruments accounted for approx. 75%, or PLN 43,2 million, of XTB's revenues in the first quarter of this year. 11.8.

Read: XTB results IV quarter

13 280 new bills

The report also contains very positive information. Impressive number of new clients amounting to 13 280 new accounts in Q1 this year. This is almost 4 thousand. more than in the last quarter, where the number of new accounts was 9 624. And it is worth noting the fact that it was the October-December period of 2016 that saw the greatest migration of customers from the three FX brokers withdrawing from the market.

More active clients, fewer deposits

There is also an increase in the number of active accounts, the number of which was 20 compared to 408 in the previous quarter. However, the total amount of deposits decreased from PLN 19 million to PLN 376 million.

X-Trade Brokers does not plan to slow down, primarily wanting to intensify its expansion into Latin American markets. Despite declining profits, you can see good prospects in the constant flow of new customers and increase their activity. With the help of market volatility one can look for perspectives for stabilization and a gradual increase in long-term revenues.