XTB to Introduce New Savings-Oriented Product to Attract Wider Audience
XTB, a leading brokerage firm, plans to launch a new ‘investment-savings’ product by the end of the year, targeting a broader range of clients and aiming to break the barrier of 40-55 thousand new accounts.
Why is this important?
- The new product will be less investment-oriented and more savings-oriented
- It aims to reach a wider audience beyond CFD traders
- The move follows XTB’s introduction of fractional shares in several markets
Details: Omar Arnaout, CEO of XTB, recently admitted at an earnings conference that although CFDs have become more mainstream in the past decade, they still lag behind stocks and savings accounts in popularity. Consequently, the publicly listed brokerage (WSE: XTB) will introduce a new ‘investment-savings’ product by the end of the year to cater to the growing number of consumers seeking simple forms of capital preservation.
Arnaout emphasized that expanding the company’s product offerings is crucial for achieving the goal of attracting a larger number of new accounts each quarter. He also noted that despite generating significant turnover, CFDs remain niche products, and the introduction of real stocks to XTB’s offer has opened the company to an entirely new audience.
The new product will target consumers looking for ways to protect their funds from heightened inflation but lack the time for active portfolio management. “The product will be less investment-oriented and more savings-oriented. It will certainly be a much more passive product compared to what we currently offer,” added Arnaout.
46.1% client base increase
In the first quarter of 2023, XTB attracted over 100,000 new customers, growing its total client base by 46.1% YoY to almost 704,000. The quarter also saw a record-breaking consolidated net profit of EUR 64.4 million, an impressive increase of 19.9% YoY.
XTB has already introduced fractional shares in Romania, Czech Republic, Slovakia, and Portugal, and Arnaout revealed that the offer would reach retail traders in Poland and Spain in the coming weeks. The company also awaits approval from the national supervisory commission KNF for a share buyback, allocating 25% of last year’s profit for the buyback and 50% for dividend payout.
Following the positive Q1 results, XTB shares gained 15% on the WSE, rising to PLN 40.76 – the highest level in the company’s history. Since the beginning of the year, XTB shares have gained 31%, while competitor Plus500 lost 7% on the LSE, and CMC Markets lost 20% during the same period.