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#1 30-04-2020 14:56:13

johnedward
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From: Paris - France
Registered: 21-12-2009
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XTB: 1Q net profit up due to Coronavirus volatility

XTB: 1Q net profit up due to Coronavirus volatility


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XTB published its financial and operating results for the first quarter of this year, revealing a significant annual increase in net profit, new traders and greater trading volume on contracts for difference (CFDs).

The return of market volatility caused by the corona situation, has given a boost to many brokers, as traders are becoming more active as they try to take advantage of large currency and price fluctuations.

This trend also benefited XTB, because during the first quarter of this year, they recorded a net profit of around 39 million euros, up 22,962.78% compared to the previous year. No, this is not a typo or a comma-related mistake, that is the actual figure! smile

Although the net profit was very high for the broker in the first quarter, it is important to emphasise that this sharp increase is largely due to the fact that the first quarter of 2019 had recorded a very low net profit, having fallen by 98.7% from one year to the other, balanced by the harsh intervention measures implemented by the ESMA authority.

However, net profit for the first quarter further increased compared to the last quarter of last year, which had recorded net profit of 8.2 million euros. As a result, first quarter net income increased 374.9% from the previous quarter.

XTB noted a record 649% year-over-year increase in revenue, an increase of approximately 59 million euros from 8.9 million euros in the first quarter of last year, reaching 68 million euros.

"The major factors determining the level of income were the above-average volatility of the financial and commodity markets, especially due to the Coronavirus situation and a constantly growing client base, combined with their strong trading activity seen in the number of transactions concluded in batches," said the report.

Omar Arnaoult, head of XTB, says "The results for the first quarter of this year are not only the effect of the very high market volatility, but also the effect of everything we have built in previous years."

"After ESMA's intervention, we haven't changed our strategy, we focused entirely on the significant increase in the number of active traders as well as on the diversification of our products and our global presence. I am very happy that our strategy has produced such effects and I am also sure that without our immense technological development, this would not have been possible."

Forex trading volumes almost doubled compared to 2019

1st Quarter forex trading volumes almost doubled since 2019, reaching $249 billion. Specifically, this is a 91% increase over the $130.35 billion forex trading volume reported in the first quarter of 2019.

The number of active traders also soared in the first three months of this year. In particular, the average number of active customers in the first quarter was 45,771, more than double the average of 22,245 in the first quarter of 2019.

Average operating income per active trader was approximately 1,483 in the first quarter, which is better than the 400 achieved in the first quarter of last year.

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