Net Profit for XTB Falls by 98.7% in Q1 of 2019
- Operating income and revenues were also down for the quarter.
After releasing its preliminary results earlier in April, one of the leading brokers in Poland, XTB, has published its financial report for the first quarter of 2019, ended March 31, 2019, this Friday.
As Finance Magnates previously reported, the broker revealed that the first quarter of this year continued to be weighed down by the product intervention measures implemented by the European Securities and Markets Authority (ESMA).
The most recent financial report released today shows that not only did the broker struggle in terms of revenue, as it previously revealed, but across the majority of its key financial indicators.
Operating income for the broker was €9.5 million for the first quarter. This is significantly less than the €27.2 million reported in the same quarter of the previous year. Specifically, it is down by around 65 percent.
Although the Polish firm did manage to report a profit for the quarter, it is down quite substantially on a year-on-year comparison, as net profit fell by 98.7 percent from €14.2 million to €178,000.
Revenues Generated from Institutional Clients of XTB Falls for Currency CFDs
Taking a look at contracts-for-differences (CFDs), profit generated from currency CFDs was PLN 433,000 ($113,091). According to the report, the broker’s retail clients contributed PLN 30.9 million generated from transactions on currency CFDs. For the institutional segment, however, the Polish firm reported a loss of PLN 2.6 million.
With the implementation of ESMA’s measures, which cap Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term and restrict marketing practices, many brokers within the European Union (EU) have been ramping up their efforts to onboard more institutional investors that are not influenced by the Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term.
However, as highlighted in the report, the revenues generated from transactions in currency CFDs has fallen on a year-on-year comparison - both for the retail and institutional sector. In the first quarter of 2018, the retail operations raked in PLN 32.2 million, and the institutional operations contributed PLN 1.1 million.
After releasing its preliminary results earlier in April, one of the leading brokers in Poland, XTB, has published its financial report for the first quarter of 2019, ended March 31, 2019, this Friday.
As Finance Magnates previously reported, the broker revealed that the first quarter of this year continued to be weighed down by the product intervention measures implemented by the European Securities and Markets Authority (ESMA).
The most recent financial report released today shows that not only did the broker struggle in terms of revenue, as it previously revealed, but across the majority of its key financial indicators.
Operating income for the broker was €9.5 million for the first quarter. This is significantly less than the €27.2 million reported in the same quarter of the previous year. Specifically, it is down by around 65 percent.
Although the Polish firm did manage to report a profit for the quarter, it is down quite substantially on a year-on-year comparison, as net profit fell by 98.7 percent from €14.2 million to €178,000.
Revenues Generated from Institutional Clients of XTB Falls for Currency CFDs
Taking a look at contracts-for-differences (CFDs), profit generated from currency CFDs was PLN 433,000 ($113,091). According to the report, the broker’s retail clients contributed PLN 30.9 million generated from transactions on currency CFDs. For the institutional segment, however, the Polish firm reported a loss of PLN 2.6 million.
With the implementation of ESMA’s measures, which cap Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term and restrict marketing practices, many brokers within the European Union (EU) have been ramping up their efforts to onboard more institutional investors that are not influenced by the Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term.
However, as highlighted in the report, the revenues generated from transactions in currency CFDs has fallen on a year-on-year comparison - both for the retail and institutional sector. In the first quarter of 2018, the retail operations raked in PLN 32.2 million, and the institutional operations contributed PLN 1.1 million.