XTB Turns Losses in Q2 as Market Volatility Wears Off

The first half results still stood strong with excellent Q1 numbers.

XTB, a Polish forex and CFDs broker, published its interim results for the second quarter of 2021, ending on June 30, reporting a net loss after several quarters. According to the official consolidated data, the broker ended the quarter with a net loss of PLN 23.8 million, which is down from the previous quarter’s profit of PLN 89 million.

The broker turned excellent numbers for many consecutive quarters, primarily with the rise in the retail trading demand across the market. But, that effect is slowly wearing off, which is mostly due to the low volatility in the markets.

The latest quarterly downtrend can be seen on the operating revenue of the broker that came in at PLN 55.1 million, which is a 70 percent decline from the numbers reported in Q1. The company hit losses with a high expense of PLN 77 million. The pre-tax loss of the broker stood at PLN 30.7 million.

These numbers came after XTB reported stellar numbers for the first quarter of the ongoing year with more than 33 percent jump in quarterly revenue and 121.3 percent gain in profits. Additionally, these numbers kept the broker profitable when half-yearly results were considered.

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Client Activity Remains Impressive

Despite the latest slow down, the broker gained 40,623 new clients that took the total number to 352,946. Interestingly, 106,563 traders were active on the broker in the quarter, which is higher than the previous quarter’s number. Net client deposits came in at PLN 650 million.

“There was a more predictable trend with the market moving within a limited price range. This led to market trends that were more likely to be predicted than in the case of greater market volatility, which created favorable conditions for range trading,” the broker explained. 

“In this case, XTB recorded a greater number of transactions at a loss, which led to a decrease in XTB’s market-making result.”

Meanwhile, the broker received a Dubai Financial Services Authority (DFSA) license to establish operations in the Middle East and North Africa (MENA) region.

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