XTB S A : Report for the 1st Quarter 2024

This document is an unofficial translation of the Polish version of Consolidated Annual Report for Q1 2024 and does not constitute a current or periodical report as defined under the Regulation of the Minister of Finance on the current and periodical information provided by issuers of securities and the conditions for considering the information required by the provisions of law of the state not being a member state as equivalent thereto that was issued in accordance with the Polish Act on Public Offering , the Conditions Governing the Introduction of Finance Instruments to Organised Trading, and Public Companies dated 29 July 2005 (amended and restated: Journal of Laws of 2020, item 2080 with subsequent amendments). This document is for informational purposes only. Neither the Company, its shareholders, nor any of their advisors are responsible for translation errors, if any, or for any discrepancies between the original report and this translation into English. If there are any discrepancies between the English translation and the Polish version, the latter shall prevail.

CAPITAL GROUP

REPORT

XTB S.A.

FOR THE FIRST QUARTER 2024

SPIS TREŚCI

FINANCIAL CONSOLIDATED HIGHLIGHTS	3
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	5
INTERIM CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENT	6
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION	7
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	8
INTERIM CONDENSED CONSOLIDATED CASH FLOW STATEMENT	11
ADDITIONAL EXPLANATORY NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	12
1.	Information about the Parent Company and composition of the Group	12
2.	Basis for drafting the financial statements	14
3.	Professional judgement	16
4.	Adopted material accounting principles	17
5.	Seasonality of operations	17
6.	Operating income	17
7.	Salaries and employee benefits	18
8.	Marketing	18
9.	Other external services	19
10.	Commission expenses	19
11.	Finance income and costs	19
12.	Segment information	19
13.	Cash and cash equivalents	25
14.	Financial assets at fair value through P&L	25
15.	Financial assets at amortised cost	25
16.	Intangible assets	27
17.	Property, plant and equipment	30
18.	Amounts due to customers	33
19.	Financial liabilities held for trading	33
20.	Liabilities due to lease	33
21.	Other liabilities	34
22.	Provisions for liabilities and contingent liabilities	34
23.	Equity	35
24.	Profit distribution and dividend	37
25.	Earnings per share	37
26.	Current income tax and deferred income tax	38
27.	Related party transactions	41
28.	Employment	43
29.	Supplementary information and explanations to the cash flow statement	43
30.	Off-balance sheet items	44
31.	Items regarding the compensation scheme	44
32.	Capital management	44
33.	Risk management	46
34.	Post balance sheet events	60
NOTES TO THE QUARTERLY REPORT	61
1.	Information about the Group's activities	62
2.	Summary and analysis of the results of the Group	63
3.	Company's authorities	79
4.	Information about shares and shareholding	80
5.	XTB strategy	82
6.	Other information	83
INTERIM CONDENSED STANDALONE FINANCIAL STATEMENTS	91
INTERIM CONDENSED STANDALONE COMPREHENSIVE INCOME STATEMENT	92
INTERIM CONDENSED STANDALONE STATEMENT OF FINANCIAL POSITION	93
INTERIM CONDENSED STANDALONE STATEMENT OF CHANGES IN EQUITY	94
INTERIM CONDENSED STANDALONE CASH FLOW STATEMENT	97

FINANCIAL CONSOLIDATED HIGHLIGHTS

REPORT FOR THE 1ST QUARTER 2024

XTB S.A. GROUP

(TRANSLATION OF A DOCUMENT ORIGINALLY ISSUED IN POLISH)

FINANCIAL CONSOLIDATED HIGHLIGHTS

				IN PLN'000			IN EUR'000
				THREE-MONTH ENDED			THREE-MONTH ENDED
				31.03.2024			31.03.2023			31.03.2024			31.03.2023
	Consolidated comprehensive income
	statement:
	Total operating income			555 948			537 553			128 659			114 361
	Profit on operating activities	350 983	353 334		81 225	75 169
	Profit before tax			368 641			367 012			85 312			78 079
	Net profit	302 746	302 814		70 062	64 422
	Net profit attributable to owners of the parent			302 767			302 814			70 067			64 422
	company
	Net profit and diluted net profit per share attributable
	to shareholders of the Parent Company	2,58	2,58		0,60	0,55
	(in PLN/EUR per share)
	Consolidated cash flow statement:
	Net cash from operating activities			324 311			138 011			75 053			29 361
	Net cash from investing activities	(398 789)	174 734		(92 289)	37 173
	Net cash from financing activities			(1 549)			(2 006)			(358)			(427)
	Increase in net cash and cash equivalents	(76 027)	310 739		(17 594)	66 108

	W TYS. PLN	W TYS. EUR
	31.03.2024	31.12.2023	31.03.2024	31.12.2023
Consolidated statement of financial
position:
Total assets	5 375 573	4 688 658	1 249 872	1 078 348
Total liabilities	3 336 827	2 953 995	775 844	679 392
Share capital	5 878	5 878	1 367	1 352
Equity	2 038 746	1 734 663	474 028	398 957
Number of shares	117 569 251	117 569 251	117 569 251	117 569 251
Carrying amount and diluted carrying amount per
share attributable to shareholders of the Parent	17,34	14,75	4,03	3,39
Company (in PLN/EUR per share)

The above data was translated into EUR as follows:

• items in the consolidated comprehensive income statement and consolidated cash flow statement - by the arithmetic average of exchange rates published by the National bank of Poland as of the last day of the month during the reporting period:
• • for the current period: 4,3211;
  • for the comparative period: 4,7005;
• items of consolidated statement of financial position - by the average exchange rate published by the National Bank of Poland as of the end of the reporting period:
• • for the current period: 4,3009;
  • for the comparative period: 4,3480.

www.xtb.com

4

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

REPORT FOR THE 1st QUARTER 2024

XTB S.A. GROUP

(TRANSLATION OF A DOCUMENT ORIGINALLY ISSUED IN POLISH)

INTERIM CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENT

							THREE-MONTH			THREE-MONTH
	(IN PLN'000)			NOTE			PERIOD ENDED			PERIOD ENDED
					31.03.2024			31.03.2023
							(UNAUDITED)			(UNAUDITED)
	Result of operations on financial instruments	6.1		539 598		528 546
	Net interest income on clients cash, including:						13 686			5 946
	- Interest income from clients cash				22 006		5 946
	- Interest expense paid to clients						(8 320)			-
	Income from fees and charges	6.2		2 543		3 050
	Other income						121			11
	Total operating income	6		555 948		537 553
	Marketing			8			(81 106)			(81 435)
	Salaries and employee benefits	7		(72 845)		(63 367)
	Commission expenses			10			(21 324)			(15 079)
	Other external services	9		(16 961)		(14 062)
	Amortisation and depreciation			16,17			(4 748)			(3 746)
	Taxes and fees				(3 841)		(3 004)
	Costs of maintenance and lease of buildings						(2 205)			(1 926)
	Other costs				(1 935)		(1 600)
	Total operating expenses						(204 965)			(184 219)
	Profit on operating activities				350 983		353 334
	Finance income, including:			11			17 928			21 454
	- interest income on financial instruments at amortized cost	11		9 792		11 481
	Finance costs			11			(270)			(7 776)
	Profit before tax				368 641		367 012
	Income tax			26			(65 895)			(64 198)
	Net profit, including:				302 746		302 814
	- profit attributable to owners of the parent company						302 767			302 814
	- profit (loss) attributable to owners of non-controlling interests				(21)		-
	Other comprehensive income						(498)			(510)
	Items which will be reclassified to profit (loss) after meeting specific				(579)		(535)
	conditions
	Currency translation differences:						(579)			(535)
	- positions that will be reclassified to profit on valuation of foreign				(153)		(403)
	companies
	- positions that will be reclassified to profit on valuation of separated						(426)			(132)
	equity
	Deferred income tax				81		25
	Total comprehensive income, including:						302 248			302 304
	- total comprehensive income attributable to owners of the parent				302 275		302 304
	company
	- total comprehensive income attributable to owners of non-controlling						(27)			-
	interests
	Earnings per share:
	- basic profit per year attributable to shareholders of the Parent			25			2,58			2,58
	Company (in PLN)
	- basic profit from continued operations per year attributable to	25		2,58		2,58
	shareholders of the Parent Company (in PLN)
	- diluted profit of the year attributable to shareholders of the Parent			25			2,58			2,58
	Company (in PLN)
	- diluted profit from continued operations of the year attributable to	25		2,58		2,58
	shareholders of the Parent Company (in PLN)

The interim condensed consolidated comprehensive income statement should be read together with the supplementary notes to the interim condensed consolidated financial statements, which are an integral part of these interim condensed consolidated financial statements.

www.xtb.com

6

REPORT FOR THE 1st QUARTER 2024

XTB S.A. GROUP

(TRANSLATION OF A DOCUMENT ORIGINALLY ISSUED IN POLISH)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	(IN PLN'000)			NOTE			31.03.2024			31.12.2023			31.03.2023
					(UNAUDITED)			(AUDITED)			(UNAUDITED)
	ASSETS
	Cash and cash equivalents			13			3 773 307			3 676 756			3 462 511
	Financial assets at fair value through P&L	14		1 477 799	903 255	923 062
	Income tax receivables						-			129			9 103
	Financial assets at amortised cost	15		44 519	31 407	44 975
	Prepayments and deferred costs						15 967			15 486			16 145
	Intangible assets	16		2 100	1 167	1 441
	Property, plant and equipment			17			51 898			50 386			49 568
	Deferred income tax assets	26		9 983	10 072	7 635
	Total assets						5 375 573			4 688 658			4 514 440
	EQUITY AND LIABILITIES
	Liabilities
	Amounts due to customers	18		2 917 299	2 638 122	2 398 456
	Financial liabilities held for trading			19			185 585			110 358			107 498
	Income tax liabilities				13 675	22 991	1 000
	Liabilities due to lease			20			28 304			29 603			33 494
	Other liabilities	21		117 130	86 080	88 123
	Provisions for liabilities			22			3 733			3 892			4 055
	Deferred income tax provision	26		71 101	62 949	73 441
	Total liabilities						3 336 827			2 953 995			2 706 067
	Equity
	Share capital			23			5 878			5 878			5 869
	Supplementary capital	23		71 608	71 608	71 608
	Other reserves			23			864 731			863 166			657 555
	Foreign exchange differences on translation	23		(7 094)	(6 595)	(470)
	Retained earnings						1 103 374			800 606			1 073 811
	Equity attributable to the owners of the Parent Company				2 038 497	1 734 663	1 808 373
	Non-controlling interests						249			-			-
	Total equity				2 038 746	1 734 663	1 808 373
	Total equity and liabilities						5 375 573			4 688 658			4 514 440

The interim condensed consolidated statement of financial position should be read together with the supplementary notes to the interim condensed consolidated financial statements, which are an integral part of these interim condensed consolidated financial statements.

www.xtb.com

7

REPORT FOR THE 1st QUARTER 2024

XTB S.A. GROUP

(TRANSLATION OF A DOCUMENT ORIGINALLY ISSUED IN POLISH)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Interim condensed consolidated statement of changes in equity for the period from 1 January 2024 to 31 March 2024 (UNAUDITED)

													FOREIGN
													EXCHANGE						EQUITY
				SHARE			SUPPLEMENTARY			OTHER			DIFFERENCES ON			RETAINED			ATTRIBUTABLE			NON-CONTROLLING			TOTAL
	(IN PLN'000)									TRANSLATION OF					TO THE OWNERS
			CAPITAL			CAPITAL			RESERVES			FOREIGN			EARNINGS			OF THE PARENT			INTERESTS			EQUITY
													OPERATIONS						COMPANY
													AND SEPARATE
													FUNDS
	NOTE	23	23	23, 24	23	24
	As at 1 January 2024			5 878			71 608			863 166			(6 595)			800 606			1 734 663			-			1 734 663
	Total comprehensive income for the
	financial period
	Net profit			-			-			-			-			302 768			302 768			(21)			302 747
	Other comprehensive income	-	-	-		(499)	-		(499)	(6)		(505)
	Total comprehensive income for the			-			-			-			(499)			302 768			302 269			(27)			302 242
	financial period
	Transactions with Parent
	Company's owners recognized
	directly in equity
	Appropriation of profit/offset of loss
	- dividend payment	-	-	-		-		-		-	-		-
	- transfer to other reserves			-			-			-			-			-			-			-			-
	Issue of Equity	-	-	-		-		-		-	-		-
	Inclusion of share based incentive			-			-			1 565			-			-			1 565			-			1 565
	scheme
	Increase (decrease) in equity	-	-	1 565		(499)	302 768		303 834		(27)	303 807
	Contributions of capital by non-			-			-			-			-			-			-			276			276
	controlling interests
	As at 31 March 2024	5 878		71 608	864 731		(7 094)	1 103 374		2 038 497		249		2 038 746

The interim condensed consolidated statement of changes in equity should be read together with the supplementary notes to the interim condensed consolidated financial statements, which are an integral part of these interim condensed consolidated financial statements.

www.xtb.com

8

REPORT FOR THE 1st QUARTER 2024

XTB S.A. GROUP

(TRANSLATION OF A DOCUMENT ORIGINALLY ISSUED IN POLISH)

Statement of changes in equity for the period from 1 January 2023 to 31 December 2023 (AUDITED)

													FOREIGN
													EXCHANGE						EQUITY
				SHARE			SUPPLEMENTARY			OTHER			DIFFERENCES ON			RETAINED			ATTRIBUTABLE			NON-CONTROLLING			TOTAL
	(IN PLN'000)									TRANSLATION OF					TO THE OWNERS
			CAPITAL			CAPITAL			RESERVES			FOREIGN			EARNINGS			OF THE PARENT			INTERESTS			EQUITY
													OPERATIONS						COMPANY
													AND SEPARATE
													FUNDS
	NOTE	23	23	23, 24	23	24
	As at 1 January 2023			5 869			71 608			657 555			40			770 997			1 506 069			-			1 506 069
	Total comprehensive income for the
	financial period
	Net profit			-			-			-			-			791 173			791 173			-			791 173
	Other comprehensive income	-	-	-		(6 635)	-		(6 635)	-		(6 635)
	Total comprehensive income for the			-			-			-			(6 635)			791 173			784 538			-			784 538
	financial period
	Transactions with Parent
	Company's owners recognized
	directly in equity
	Appropriation of profit/offset of loss
	- dividend payment	-	-	-		-		(570 484)	(570 484)	-		(570 484)
	- transfer to other reserves			-			-			191 080			-			(191 080)			-			-			-
	Issue of Equity	9		-	-		-		-		9		-		9
	Inclusion of share based incentive			-			-			14 531			-			-			14 531			-			14 531
	scheme
	Increase (decrease) in equity	9		-	205 611		(6 635)	29 609		228 594	-		228 594
	Contributions of capital by non-			-			-			-			-			-			-			-			-
	controlling interests
	As at 31 December 2023	5 878		71 608	863 166		(6 595)	800 606		1 734 663	-		1 734 663

The statement of changes in equity should be read together with the supplementary notes to the interim condensed consolidated financial statements, which are an integral part of these interim condensed consolidated financial statements.

www.xtb.com

9

REPORT FOR THE 1st QUARTER 2024

XTB S.A. GROUP

(TRANSLATION OF A DOCUMENT ORIGINALLY ISSUED IN POLISH)

Interim condensed consolidated statement of changes in equity for the period from 1 January 2023 to 31 March 2023 (UNAUDITED)

													FOREIGN
													EXCHANGE						EQUITY
				SHARE			SUPPLEMENTARY			OTHER			DIFFERENCES ON			RETAINED			ATTRIBUTABLE			NON-CONTROLLING			TOTAL
	(IN PLN'000)									TRANSLATION OF					TO THE OWNERS
			CAPITAL			CAPITAL			RESERVES			FOREIGN			EARNINGS			OF THE PARENT			INTERESTS			EQUITY
													OPERATIONS						COMPANY
													AND SEPARATE
													FUNDS
	NOTE	23	23	23, 24	23	24
	As at 1 January 2023			5 869			71 608			657 555			40			770 997			1 506 069			-			1 506 069
	Total comprehensive income for the
	financial period
	Net profit			-			-			-			-			302 814			302 814			-			302 814
	Other comprehensive income	-	-	-		(510)	-		(510)	-		(510)
	Total comprehensive income for the			-			-			-			(510)			302 814			302 304			-			302 304
	financial period
	Transactions with Parent
	Company's owners recognized
	directly in equity
	Appropriation of profit/offset of loss
	- dividend payment	-	-	-		-		-		-	-		-
	- transfer to other reserves			-			-			-			-			-			-			-			-
	Issue of Equity	-	-	-		-		-		-	-		-
	Inclusion of share based incentive			-			-			-			-			-			-			-			-
	scheme
	Increase (decrease) in equity	-	-	-		(510)	302 814		302 304		-		302 304
	Contributions of capital by non-			-			-			-			-			-			-			-			-
	controlling interests
	As at 31 March 2023	5 869		71 608	657 555		(470)	1 073 811		1 808 373		-		1 808 373

The interim condensed consolidated statement of changes in equity should be read together with the supplementary notes to the interim condensed consolidated financial statements, which are an integral part of these interim condensed consolidated financial statements.

www.xtb.com

10