XTB UK Profit Soars 116% Amid Strategic Pivot to Investment Products

XTB UK reports 116% profit surge in 2024 to £374K despite revenue dip, driven by cost cuts and investment product launches.

Key Points:

• Profit up 116% in 2024, driven by cost cuts and shift to investment products.
• Retail clients up 59%, supporting move from CFD brokerage to multi-asset platform.

XTB Limited, the UK division of Warsaw-listed fintech giant XTB (WSE: XTB), has reported a sharp 116% rise in annual profit before tax, reaching £374,228 for 2024, despite a 5% fall in total revenue to £4.51 million. The performance comes as the company accelerates its transformation from a pure CFD brokerage into a diversified investment platform targeting long-term investors.

The profit growth was driven primarily by aggressive cost management and strong client acquisition, as the Canary Wharf-based firm introduced new products including Investment Plans, a stocks and shares ISA, and a proprietary ETF portfolio builder. Administrative expenses dropped 9.4% year-over-year to £4.13 million, helping lift operating profit to £375,968—more than double the £178,527 recorded in 2023.

XTB UK Profit Soars 116% Amid Strategic Pivot to Investment Products

While retail sales income fell 5% to £4.42 million and institutional sales dropped 8% to £90,948, the company saw its retail client base swell by 59%, with new active clients growing 73%. The surge in users helped offset revenue headwinds and reinforced the company’s long-term strategic shift.

“Our transition from a pure CFD broker to a multi-asset investment platform is beginning to bear fruit,” said Joshua Raymond, CEO of XTB UK. “The focus is now on providing accessible and cost-effective investment solutions for UK savers.”

Raymond highlighted the importance of the company’s new ISA offering, stating, “ISAs have proved wildly popular since their launch 25 years ago, but many come with hidden costs and poor interest rates. We’re aiming to set a new standard in the market.”

Investments in Brand and Compliance

XTB made a “significant marketing spend” in 2024, including a major out-of-home campaign promoting its new Investment Plans. However, competitive pressures from other brokers with rising ad budgets limited the campaign’s effectiveness.

The company also bolstered its compliance operations, prioritizing a more robust framework for vulnerable clients and enhancing readiness for new regulatory obligations associated with investment products.

Looking ahead to 2025, XTB plans to roll out a tiered onboarding system tailored to product risk levels and further refine its consumer duty framework to improve outcomes for retail investors.

Key Financials

Cash reserves at year-end stood at £6.45 million, down slightly from £6.87 million, while net assets grew to £3.15 million. XTB reported no borrowings on its balance sheet.

Group-wide data published earlier this year aligns with the UK unit’s performance, with the global XTB Group reporting a 60% increase in new clients and a 9% rise in net profit to PLN 859.4 million.

“The launch of our ETF auto-investing platform and ISA product has helped us attract a broader investor profile,” Raymond added. “We believe this positions us well for future growth in a rapidly evolving investment landscape.”

As the UK market becomes more competitive, XTB aims to differentiate itself not just through pricing, but by offering flexible and transparent investment tools that resonate with modern investors looking for long-term value.

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