XTB, the retail broker based in Poland, has decided to revise its share buyback plan and instead distribute the substantial profits from 2022 as dividends. The company aims to increase the dividend distribution to PLN 4.86 per share, surpassing the earlier proposed PLN 3.25 per share.
With a remarkable annual surge of approximately 215 percent, XTB achieved net profits of $171.6 million in 2022. Initially, the company planned to allocate 75 percent of the profits to dividends and share repurchases, reserving the remaining PLN 191.4 million ($43 million) as capital.
The management’s revised strategy involves paying 50 percent of the net profit as dividends and utilizing 25 percent for share buybacks. This proposal represents a significant increase compared to the PLN 1.5 per share dividend distribution in 2021.
XTB’s decision to distribute record profits as dividends reflect its commitment to rewarding shareholders and capitalizing on their successful financial performance.
As per the most recent press release issued by the broker, the management intends to assign PLN 570.5 million toward dividend distribution. The proposed allocation for reserve capital remains unaltered.
XTB’s Dividend Decision
According to XTB, this recommendation aligns with their dividend policy, which suggests paying dividends ranging from 50% to 100% of the company’s standalone net profit for each financial year.
The decision takes into account factors such as maintaining adequate capital ratios and supporting the group’s development while adhering to guidelines set by the Polish Financial Supervision Authority.
The board of XTB has proposed a dividend distribution date of 10 July, with dividend payments scheduled for 21 July.
Since going public in 2016, XTB has experienced a significant surge in its share price. Over the past year, the market value of XTB shares has doubled and remains close to its recent peak.
In recent news, Jakub Zablocki, Co-Founder of XTB, sold 7 million XTB shares worth approximately $64 million through his private investment firm, XX ZW Investment Group.
