The Polish retail broker XTB has announced a change in its financial strategy. The company has decided to abandon its original plan of repurchasing shares and instead distribute its record profits from 2022 as dividends. XTB aims to boost its dividend distribution from the previously proposed PLN 3.25 per share to PLN 4.86 per share, according to a Tuesday announcement.
Last year, XTB experienced a surge in net profits, witnessing a 215% annual increase to reach $171.6 million. Initially, the company’s management had suggested allocating 50% of the profits towards dividends and 25% towards share buybacks, while reserving PLN 191.4 million as capital reserves.
Under the revised plan, XTB plans to allocate PLN 570.5 million. The allocation for capital reserves will remain mostly unchanged at PLN 191.1 million. In its last press release, XTB stated that this recommendation aligns with the company’s dividend policy, which aims to distribute dividends ranging from 50 to 100% of the standalone net profit for the given financial year.
XTB has proposed 10 July as the date for dividend distribution, with the dividend payments scheduled for 21 July.
The decision takes into consideration various factors, including the need to maintain appropriate capital adequacy ratios and the capital required for the Group’s development, while also adhering to the guidelines set by the Polish Financial Supervision Authority.
