Brokerage XTB, which has so far focused mainly on European traders and investors, is rolling out plans to expand into global financial markets, especially in Asia.
XTB's shares on the Warsaw Stock Exchange (WSE) soared to an all-time high following the company's financial report on quarterly revenue growth.
The brokerage's Management Board announced that it is recommending a dividend increase to shareholders. The total amount to be paid to investors as dividends per share will be increased to $146 million. This is historically the largest portion of the payout.
XTB management allocated 75% of last year's earnings to dividends. The company's Management Board has decided to allocate 75% of the company's 2023 net profit of $195 million (PLN 787 million) to dividends. The remaining 25% will be used to replenish the company's capital reserves.
XTB said in a note, "XTB's Management Board plans a dividend record date of June 5, 2024, and a dividend payment date of June 20, 2024."
Per share, the payout will be PLN 5.02 ($1.24), which represents a dividend yield of 7.2%. However, this yield is lower than last year due to the strong share price appreciation on the WSE.
XTB shares gained 22% last year and have gained another 60% this year. Following the announcement of the Management Board readiness to pay a dividend, the share price jumped by almost 2% to a new record of PLN 62.30.
The increase in net profit helps to strengthen the confidence of traders and investors. It is worth noting that the company's growing user base and plans to expand into new regions and add new products also played an important role.
XTB announced earlier this month that its client base has surpassed one million, doubling in the past three years.
The fintech company also introduced many new products, including ETF-based passive trading tools. A social trading platform was launched in 2024, and the company still plans to introduce bond trading.
XTB is planning to expand its presence in the UK, where it aims to tap into the £400 billion individual savings account (ISA) industry. The company has also acquired an Indonesian broker, calling it a "gateway to Asia."
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