XTB Raises Dividend on Back of Record 2022 Profit, Bypassing Share Buyback

XTB.com, a leading retail Foreign Exchange (FX) and Contracts for Difference (CFDs) broker headquartered in Poland, recently disclosed a change to its intended allocation of the considerable profits it achieved in 2022.

Originally, XTB intended to pay half of its record-breaking profits from last year as dividends to shareholders, with a projected sum of approximately PLN 381.5 million. Additionally, a quarter of the profits, amounting to PLN 188.7 million, were earmarked for a share buyback initiative, while the remaining PLN 191.5 million was set aside for reserve capital.

The company has since decided to increase the dividend share and terminate the planned share buyback. The newly proposed strategy involves redirecting the funds originally reserved for the share buyback to enhance the dividend payout. As a result, the revised dividend amount is expected to be a whopping PLN 570.5 million.

The top-tier Management Board of XTB has recommended setting the dividend declaration date for July 10, 2023, with the dividend payout date slated for July 21, 2023.

XTB had a remarkably successful year in 2022, reporting Revenues of PLN 1,444 million (equivalent to $328 million), and a staggering Net Profit of PLN 765 million (approximately $174 million). These numbers reflect XTB's best-ever financial performance in a single year.

The company's Management Board made this recommendation in line with XTB's well-established dividend policy. This policy recommends that the company's General Meeting of Shareholders consider a dividend payout level of 50-100% of the firm's standalone net profit for a given fiscal year.

This proposal takes numerous crucial factors into account, including the necessity to maintain a sufficient level of the company's capital adequacy ratios. Furthermore, adequate money is required to enable the Group's continuing expansion and development.

XTB also takes into account the guidelines laid out by the Polish Financial Supervision Authority when determining its dividend payment plan. This cautious and considered approach demonstrates XTB's commitment to prudent financial management and its intent to deliver substantial returns to its shareholders.

XTB is giving shareholders a direct and immediate return on their investment by increasing the dividend rather than proceeding with the share purchase plan. This method also demonstrates the company's confidence in its future success, and the choice may entice new investors searching for high-dividend-paying companies.

This milestone in XTB's journey demonstrates the firm's strength and durability, as well as its smart business choices, especially in the face of global economic problems and uncertainty.

Finally, XTB's record-breaking performance in 2022, combined with its decision to increase dividend payout at the expense of share buyback, demonstrates the company's commitment to its shareholders, demonstrating both a focus on immediate returns and a confident outlook for future growth and success.

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