XTB Allocates 50% of Profit to Dividends, 25% to Buyback

XTB proposes using 50% of net profit (est. PLN 761.6 m/$171.6 m) for dividends to shareholders in 2022. Additionally, they have recommended setting aside 25% for share buybacks with those same funds!

XTB announced a significant shareholders payout of PLN 381.5 m ($86 m). It equals PLN 3.25 or $0.73 per dividend and PLN 188.7 m ($42.5 m) for share repurchases.

XTB’s net profit skyrockets in 2022

In 2022, XTB’s net profit skyrocketed by 214.4%, boasting $171.6 million in profits; however, the broker revealed a dramatic decrease in its preliminary quarterly financials for Q4 of 2021.

Last year XTB achieved a record-breaking revenue of $325 million, representing an impressive 125% increase from the prior year’s figure of $144.2 million. To ensure financial stability, 75% of these profits were allocated as dividends and share buybacks, with the remaining PLN 191.4 million ($43 million) retained in reserve capital reserves.

XTB seeks approval for share buyback from Polish Regulator.

According to XTB’s report, the execution of their proposed recommendations will depend on whether Poland’s Financial Supervision Authority approves its request to obtain around 5.7 million shares. This constitutes 4.84% of all stocks in the company by December 31st, 2023.

The broker additionally indicated that if the Polish regulator declines or delays in granting the request, then the Management Board will propose to pay out 75% of 2022 net profits as dividends for shareholders. According to the company’s announcement, it would total about 570.5 million ($128.5 million), equivalent to PLN 4.86 ($1.09) per share.

Recently, the Polish Supreme Administrative Court (NSA) denied an appeal by XTB against a financial penalty of PLN 9.9 million ($2.2 million) imposed on the brokerage firm in 2018 by its local regulator.