XTB Limited, the UK arm of the Warsaw-listed fintech (WSE: XTB), reported annual profit before taxation surged 116% to £374,228 for 2024, even as total revenue declined 5% to £4.51 million amid its strategic transformation from a pure CFD broker to a multi-asset investment platform.

XTB Profit Jumps 61% as UK Broker Cuts Costs, Adds Investment Products

The London-based company, which operates from Canary Wharf, saw retail sales income fall to £4.42 million from £4.65 million the previous year, while institutional sales dropped 8% to £90,948. However, aggressive cost-cutting measures helped boost operating profit to £375,968 from £178,527 in 2023.

XTB's shift toward longer-term investment products gained momentum throughout 2024, with the company launching Investment Plans, a flexible stocks and shares ISA, and interest-bearing uninvested funds. The firm also introduced a proprietary ETF portfolio builder with auto-investing capabilities.

“ISAs have proved wildly popular since their launch 25 years ago,” said Joshua Raymond, XTB UK Managing Director. “However, too many accounts have costs and interest rates that are significantly worse when compared to accounts outside the ISA regime. Our intention is to offer terms and conditions that are among the best in the market.”

XTB Limited Key Performance Indicators

"The business committed to a significant marketing spend in the UK to build greater brand recognition and expedite the transition to a multi-asset investment platform," the company stated in its annual report filed with Companies House.

Client Growth Offsets Revenue Drop

Despite the revenue headwinds, client acquisition metrics remained robust. New UK retail client growth jumped 59% year-over-year, while new active clients surged 73%, demonstrating what XTB called "the new competitive edge of our investment products."

The increase in the number of clients aligns with statistics published by the entire XTB Group at the end of January, where the number of new clients rose by 60%. Net profit, meanwhile, grew by 9% to PLN 859.4 million.

The company's marketing push included a substantial out-of-home brand campaign in the first quarter promoting its Investment Plans product. However, XTB acknowledged that competitor brokers also ramped up marketing spending, which "diluted the effect" of its own campaign and intensified competition in the UK market.

XTB Limited - Statement of Comprehensive Income Analysis

Volatility, Balance Sheet and Compliance

Market volatility driven by the US Presidential Election, falling interest rates, and commodity price spikes contributed to two distinct trading patterns: a transition to commodities trading and periodic bursts of stock market volatility similar to 2023 trends.

XTB's balance sheet strengthened during the year, with cash and cash equivalents reaching £6.45 million, down from £6.87 million in 2023. The company maintained no borrowings and reported net assets of £3.15 million, up from £2.87 million the previous year.

The firm's compliance team focused on strengthening its vulnerable client framework and preparing regulatory requirements for new product launches, including ISA offerings. For 2025, XTB plans to introduce a tiered onboarding process for different products while continuing to enhance consumer duty frameworks.