- The company also reported an increase of 21% in revenue and a rise of 100% in net profit.
- Fintech wants to enter the £400 billion ISA market, which could boost its future performance.
The UK’s branch of XTB increased its revenues 21% and net profit over 100% in 2023, which aligns with the positive preliminary results of the entire publicly listed fintech group reported at the end of January. The number of active clients has increased over 90%.
XTB UK Reports Increase in Revenue and Profit in 2023
According to a report seen by Finance Magnates and published this week, XTB Limited (XTB UK) achieved a revenue of £4.7 million, compared to £3.9 million reported in 2022.
XTB, which originates from Poland, decided to launch its London headquarters in 2015. It is operated by its subsidiary XTB Limited and regulated by the FCA. The entity's main goals are to offer CFD products and develop long-term investment products.
As the company admits in its latest report, 2023 brought much greater volatility than the previous year. Combined with the launch of a range of new investment products, including real stocks and ETFs, the company was able to increase the number of active clients significantly.
The company commented in the official report that "New retail client growth was significant, especially in Q4, with the business seeing a 93% growth in new clients over the year compared to 2022."
Source: XTB Limited, UK Companies House
Despite the increase in administrative costs, the significantly higher revenue allowed the company to achieve an operating profit of £178,527 (an increase of 27%) and a net profit of £237,111, 100% higher than the result from the previous year.
The total value of assets held by the company increased, exceeding the level of £9 million.
XTB UK Considers Entering Multi-Billion Pound Market
Although XTB UK's results seem modest compared to the results of the entire Group, with XTB reporting a net profit of PLN 791.3 million, it should be remembered that the London branch is relatively small and employing 36 people in 2023, with the vast majority working in marketing and sales.
However, this situation may soon change, as XTB wants to enter the UK's Individual Savings Accounts (ISAs) market, which is worth £400 billion. XTB's CEO, Omar Arnaout, mentioned this during an earnings conference at the end of January.
"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," commented Omar Arnout, the CEO of XTB, quoted by the Polish Press Agency. "We want to apply for an ISA, which are the British savings plans, and I hope that we will be able to compete in a market that, it must be admitted, is competitive."
In an interview with Finance Magnates, Joshua Raymond, the CEO of XTB UK, confirmed these reports. He admitted that: "There are nearly 12 million ISA subscriptions each year in the UK. This represents a huge market for XTB to be operating in."
XTB UK's potential entry into the ISA market could be a game-changer, opening up a vast new customer base and significantly boosting its revenues.
