This document is an unofficial translation of the Polish version of Periodic Report for the 1st Half of 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 HALF 2024

	FINANCIAL HIGHLIGHTS	4
	HALF-YEAR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	7
	HALF-YEAR CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENT	8
	HALF-YEAR CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION	9
	HALF-YEAR CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	10
	HALF-YEAR CONDENSED CONSOLIDATED CASH FLOW STATEMENT	13
	ADDITIONAL EXPLANATORY NOTES TO THE HALF-YEAR CONDENSED CONSOLIDATED
	FINANCIAL STATEMENTS	14
1.	Information about the Parent Company and composition of the Group	14
2.	Basis for drafting the financial statements	16
3.	Professional judgement	18
4.	Adopted material accounting principles	19
5.	Seasonality of operations	19
6.	Operating income	20
7.	Salaries and employee benefits	21
8.	Marketing	21
9.	Other external services	21
10.	Commission expenses	21
11.	Finance income and costs	21
12.	Segment information	22
13.	Cash and cash equivalents	27
14.	Financial assets at fair value through P&L	27
15.	Financial assets at amortised cost	27
16.	Intangible assets	28
17. 18.	Property, plant and equipment Amounts due to customers	31 34
19.	Financial liabilities held for trading	34
20.	Liabilities due to lease	34
21.	Other liabilities	35
22.	Provisions for liabilities and contingent liabilities	35
23.	Equity	36
24.	Profit distribution and dividend	38
25.	Earnings per share	38
26.	Current income tax and deferred income tax	39
27.	Related party transactions	42
28.	Employment	44
29.	Supplementary information and explanations to the cash flow statement	44
30.	Off-balance sheet items	45
31.	Items regarding the compensation scheme	45
32.	Capital management	45
33.	Risk management	47
34.	Post balance sheet events	61

	HALF-YEAR CONDENSED STANDALONE FINANCIAL STATEMENTS	62
	HALF-YEAR CONDENSED STANDALONE COMPREHENSIVE INCOME STATEMENT	63
	HALF-YEAR CONDENSED STANDALONE STATEMENT OF FINANCIAL POSITION	64
	HALF-YEAR CONDENSED STANDALONE STATEMENT OF CHANGES IN EQUITY	65
	HALF-YEAR CONDENSED STANDALONE CASH FLOW STATEMENT	68
	ADDITIONAL EXPLANATORY NOTES TO THE HALF-YEAR CONDENSED STANDALONE
	FINANCIAL STATEMENTS	69

1.	General information	69
2. 3.	Basis for drafting the financial statements Professional judgement	70 72
4.	Adopted material accounting principles	73
5.	Seasonality of operations	73
6.	Operating income	73
7.	Salaries and employee benefits	74
8.	Marketing	74
9.	Other external services	75
10.	Commission expenses	75
11.	Finance income and costs	75
12.	Cash and cash equivalents	75
13.	Financial assets at fair value through P&L	76
14.	Investment in subsidiaries	76
15.	Financial assets at amortised cost	78
16.	Intangible assets	79
17.	Property, plant and equipment	82
18.	Amounts due to customers	85
19.	Financial liabilities held for trading	85
20.	Liabilities due to lease	85
21.	Other liabilities	86
22.	Provisions for liabilities and contingent liabilities	86
23.	Equity	87
24.	Profit distribution and dividend	89
25.	Earnings per share	89
26.	Current income tax and deferred income tax	89
27.	Related party transactions	93
28.	Employment	95
29.	Supplementary information and explanations to the cash flow statement	95
30.	Off-balance sheet items	96
31.	Items regarding the compensation scheme	97
32.	Capital management	97
33.	Risk management	98
34.	Post balance sheet events	112
	MANAGEMENT BOARD REPORT ON THE OPERATIONS OF THE GROUP	113
1.	Basic information	114
2.	Summary and analysis of the results of the Group	121
3.	Company's authorities	136
4.	Information about shares and shareholding	137
5.	XTB strategy	138
6.	Other information	139
7.	Statement by the Management Board	146

FINANCIAL HIGHLIGHTS

FINANCIAL CONSOLIDATED HIGHLIGHTS

	IN PLN'000 SIX-MONTH ENDED		IN EUR'000 SIX-MONTH ENDED
	30.06.2024	30.06.2023	30.06.2024	30.06.2023
Consolidated comprehensive income statement:
Total operating income	937 786	830 687	217 538	180 075
Profit on operating activities	527 413	489 091	122 344	106 024
Profit before tax	564 584	512 050	130 967	111 002
Net profit	463 046	420 997	107 413	91 263
Net profit attributable to owners of the parent company	463 100	420 997	107 425	91 263
Net profit and diluted net profit per share attributable to shareholders of the Parent Company (in PLN/EUR per share)	3,94	3,59	0,91	0,78

Consolidated cash flow statement:
Net cash from operating activities	465 158	140 576	107 903	30 474
Net cash from investing activities	(28 160)	295 188	(6 532)	63 990
Net cash from financing activities	(600 125)	(6 877)	(139 211)	(1 491)
Increase/(Decrease) in net cash and cash equivalents	(163 127)	428 887	(37 841)	92 974

	IN PLN'000		IN EUR'000
	30.06.2024	31.12.2023	30.06.2024	31.12.2023
Consolidated statement of financial position:
Total assets	5 197 507	4 688 658	1 205 079	1 078 348
Total liabilities	3 592 397	2 953 995	832 923	679 392
Share capital	5 878	5 878	1 363	1 352
Equity	1 605 110	1 734 663	372 156	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 Company (in PLN/EUR per share)	13,65	14,75	3,16	3,39

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: 4,3109;
- − for the comparative period: 4,6130;
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: 4,3130;
- − for the comparative period: 4,3480.

FINANCIAL STANDALONE HIGHLIGHTS

	IN PLN'000 SIX-MONTH ENDED		IN EUR'000 SIX-MONTH ENDED
	30.06.2024	30.06.2023	30.06.2024	30.06.2023
Standalone comprehensive income statement:
Total operating income	861 008	774 463	199 728	167 887
Profit on operating activities	521 315	488 741	120 930	105 949
Profit before tax	558 565	513 443	129 570	111 303
Net profit	457 507	422 826	106 128	91 660
Net profit and diluted net profit per share attributable to shareholders of the Parent Company (in PLN/EUR per share)	3,89	3,60	0,90	0,78

Standalone cash flow statement:
Net cash from operating activities	407 652	140 051	94 563	30 360
Net cash from investing activities	(35 513)	296 300	(8 238)	64 232
Net cash from financing activities	(598 815)	(5 877)	(138 907)	(1 274)
Increase/(Decrease) in net cash and cash equivalents	(226 676)	430 474	(52 582)	93 318

	IN PLN'000		IN EUR'000
	30.06.2024	31.12.2023	30.06.2024	31.12.2023
Standalone statement of financial position:
Total assets	4 965 654	4 498 167	1 151 323	1 034 537
Total liabilities	3 374 219	2 770 237	782 337	637 129
Share capital	5 878	5 878	1 363	1 352
Equity	1 591 435	1 727 930	368 986	397 408
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 Company (in PLN/EUR per share)	13,54	14,70	3,14	3,38

The above data was translated into EUR as follows:

items in the comprehensive income statement and 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: 4,3109;
- − for the comparative period: 4,6130;
items of 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: 4,3130;
- − for the comparative period: 4,3480.

HALF-YEAR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

HALF-YEAR CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENT

(IN PLN'000)			THREE-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
		30.06.2024	30.06.2023	30.06.2024	30.06.2023
Result of operations on financial instruments	6.1	363 320	284 137	902 918	812 683
Net interest income on clients cash, including:		15 099	5 889	28 785	11 835
- Interest income from clients cash		25 979	5 889	47 985	11 835
- Interest expense paid to clients		(10 880)	-	(19 200)	-
Income from fees and charges	6.2	3 371	3 074	5 914	6 124
Other income		48	34	169	45
Total operating income	6	381 838	293 134	937 786	830 687
Marketing	8	(75 234)	(54 823)	(156 340)	(136 258)
Salaries and employee benefits	7	(75 434)	(61 413)	(148 279)	(124 780)
Commission expenses	10	(22 596)	(13 906)	(43 920)	(28 985)
Other external services	9	(18 636)	(15 945)	(35 597)	(30 007)
Amortisation and depreciation	16,17	(4 968)	(3 984)	(9 716)	(7 730)
Taxes and fees		(4 829)	(2 885)	(8 670)	(5 889)
Costs of maintenance and lease of buildings		(1 699)	(1 849)	(3 904)	(3 775)
Other costs		(2 012)	(2 572)	(3 947)	(4 172)
Total operating expenses		(205 408)	(157 377)	(410 373)	(341 596)
Profit on operating activities		176 430	135 757	527 413	489 091
Finance income, including:	11	19 756	20 541	37 684	41 995
- interest income on financial instruments at amortized cost	11	6 593	12 958	16 385	24 439
Finance costs	11	(243)	(11 260)	(513)	(19 036)
Profit before tax		195 943	145 038	564 584	512 050
Income tax	26	(35 643)	(26 855)	(101 538)	(91 053)
Net profit, including:		160 300	118 183	463 046	420 997
- profit attributable to owners of the Parent Company		160 332	118 183	463 100	420 997
- profit (loss) attributable to owners of non-controlling interests		(32)	-	(54)	-
Other comprehensive income		1 847	(3 192)	1 349	(3 702)
Items which will be reclassified to profit (loss) after meeting specific conditions		1 866	(3 586)	1 287	(4 121)
Currency translation differences:		1 866	(3 586)	1 287	(4 121)
- positions that will be reclassified to profit on
valuation of foreign companies		1 764	(1 511)	1 611	(1 914)
- positions that will be reclassified to profit on valuation of separated equity		102	(2 075)	(324)	(2 207)
Deferred income tax		(19)	394	62	419
Total comprehensive income, including:		162 147	114 991	464 395	417 295
- total comprehensive income attributable to owners of the Parent Company		162 183	114 991	464 459	417 295
- total comprehensive income attributable to owners of non-controlling interests		(36)	-	(64)	-

Earnings per share: - basic profit per year attributable to shareholders of the Parent Company (in PLN)	25	1,36	1,01	3,94	3,59
- basic profit from continued operations per year attributable to shareholders of the Parent Company	25	1,36	1,01	3,94	3,59
(in PLN) - diluted profit of the year attributable to shareholders
of the Parent Company (in PLN) - diluted profit from continued operations of the year	25	1,36	1,01	3,94	3,59
attributable to shareholders of the Parent Company (in PLN)	25	1,36	1,01	3,94	3,59

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

HALF-YEAR CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(IN PLN'000)	NOTE	30.06.2024	31.12.2023	30.06.2023
ASSETS

Cash and cash equivalents	13	4 018 589	3 676 756	3 612 243
Financial assets at fair value through P&L	14	1 048 716	903 255	931 409
Financial assets at amortised cost	15	46 366	31 407	42 753
Prepayments and deferred costs		17 487	15 486	16 353
Intangible assets	16	1 982	1 167	1 345
Property, plant and equipment	17	56 964	50 386	50 709
Income tax receivables		3	129	1 052
Deferred income tax assets	26	7 400	10 072	7 078
Total assets		5 197 507	4 688 658	4 662 942

EQUITY AND LIABILITIES
Liabilities
Amounts due to customers	18	3 222 887	2 638 122	2 451 290
Financial liabilities held for trading	19	153 268	110 358	103 386
Liabilities due to lease	20	27 731	29 603	32 225
Other liabilities	21	120 633	86 080	640 541
Provisions for liabilities	22	3 749	3 892	4 261
Income tax liabilities		5 227	22 991	860
Deferred income tax provision	26	58 902	62 949	77 499
Total liabilities		3 592 397	2 953 995	3 310 062

Equity
Share capital	23	5 878	5 878	5 869
Supplementary capital	23	71 608	71 608	71 608
Other reserves	23	1 056 088	863 166	848 635
Foreign exchange differences on translation	23	(5 246)	(6 595)	(3 662)
Retained earnings		476 570	800 606	430 430
Equity attributable to the owners of the Parent Company		1 604 898	1 734 663	1 352 880
Non-controlling interests		212	-	-
Total equity		1 605 110	1 734 663	1 352 880

Total equity and liabilities		5 197 507	4 688 658	4 662 942

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

HALF-YEAR CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Half-year condensed consolidated statement of changes in equity for the period from 1 January 2024 to 30 June 2024

(IN PLN'000)	SHARE CAPITAL	SUPPLEMENTARY CAPITAL	OTHER RESERVES	FOREIGN EXCHANGE DIFFERENCES ON TRANSLATION OF FOREIGN OPERATIONS AND SEPARATE FUNDS	RETAINED EARNINGS	EQUITY ATTRIBUTABLE TO THE OWNERS OF THE PARENT COMPANY	NON-CONTROLLING INTERESTS	TOTAL EQUITY
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	-	-	-	-	463 100	463 100	(54)	463 046
Other comprehensive income	-	-	-	1 349	-	1 349	(10)	1 339
Total comprehensive income for the financial period				1 349	463 100	464 449	(64)	464 385
Transactions with Parent Company's owners recognized directly in equity
Appropriation of profit/offset of loss
- dividend payment	-	-	-	-	(590 198)	(590 198)	-	(590 198)
- transfer to other reserves	-	-	196 938	-	(196 938)	-	-	-
Inclusion of share based incentive scheme	-	-	3 734	-	-	3 734	-	3 734
Purchase of own shares	-	-	(7 750)	-	-	(7 750)	-	(7 750)
Increase (decrease) in equity	-	-	192 922	1 349	(324 036)	(129 765)	(64)	(129 829)
Contributions of capital by non controlling interests	-	-	-	-	-	-	276	276
As at 30 June 2024	5 878	71 608	1 056 088	(5 246)	476 570	1 604 898	212	1 605 110

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

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

(IN PLN'000)	SHARE CAPITAL	SUPPLEMENTARY CAPITAL	OTHER RESERVES	FOREIGN EXCHANGE DIFFERENCES ON TRANSLATION OF FOREIGN OPERATIONS AND SEPARATE FUNDS	RETAINED EARNINGS	EQUITY ATTRIBUTABLE TO THE OWNERS OF THE PARENT COMPANY	NON-CONTROLLING INTERESTS	TOTAL EQUITY
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 financial period	-	-	-	(6 635)	791 173	784 538	-	784 538
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 scheme	-	-	14 531	-	-	14 531	-	14 531
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 half-year condensed consolidated financial statements, which are an integral part of these half-year condensed consolidated financial statements.

Half-year condensed consolidated statement of changes in equity for the period from 1 January 2023 to 30 June 2023

(IN PLN'000)	SHARE CAPITAL	SUPPLEMENTARY CAPITAL	OTHER RESERVES	FOREIGN EXCHANGE DIFFERENCES ON TRANSLATION OF FOREIGN OPERATIONS AND SEPARATE FUNDS	RETAINED EARNINGS	EQUITY ATTRIBUTABLE TO THE OWNERS OF THE PARENT COMPANY	NON-CONTROLLING INTERESTS	TOTAL EQUITY
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	-	-	-	-	420 997	420 997	-	420 997
Other comprehensive income	-	-	-	(3 702)	-	(3 702)	-	(3 702)
Total comprehensive income for the financial period	-	-	-	(3 702)	420 997	417 295	-	417 295
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)	-	-	-
Increase (decrease) in equity	-	-	191 080	(3 702)	(340 567)	(153 189)	-	(153 189)
As at 30 June 2023	5 869	71 608	848 635	(3 662)	430 430	1 352 880	-	1 352 880

HALF-YEAR CONDENSED CONSOLIDATED CASH FLOW STATEMENT

		SIX-MONTH PERIOD ENDED
(IN PLN'000)	NOTE	30.06.2024	30.06.2023
Cash flows from operating activities
Profit before tax		564 584	512 050
Adjustments:		20 644	(295 779)
(Profit) Loss on investment activity	29.3	(14 927)	(15 878)
Proceeds / Expenses on cash deposits with maturity over 3M		-	(300 000)
Amortization and depreciation	16, 17	9 716	7 730
Foreign exchange (gains) losses from translation of own cash		(2 817)	333
Other adjustments	29.1	1 588	(3 031)
Changes
Change in provisions		(143)	5
Change in balance of financial assets at fair value through P&L and financial liabilities held for trading		(72 988)	(73 258)
Change in balance of restricted cash		(502 143)	(22 687)
Change in financial assets at amortised cost		(14 959)	(1 078)
Change in balance of prepayments and accruals		(2 001)	(1 829)
Change in balance of amounts due to customers		584 765	123 562
Change in balance of other liabilities	29.2	34 553	(9 648)
Cash from operating activities		585 228	216 271
Income tax paid		(120 551)	(73 518)
Interest received		-	(2 177)
Interest paid		481	-
Net cash from operating activities		465 158	140 576
Cash flow from investing activities
Proceeds from sale of items of property, plant and equipment		44	3
Expenses relating to payments for property, plant and equipment	17	(12 532)	(7 086)
Expenses relating to payments for intangible assets	16	(1 116)	(93)
Expenses relating purchase of bonds		(658 387)	(296 614)
Proceeds from closed deposits		-	300 000
Interest received on deposits		-	2 667
Proceeds from sale of bonds		632 857	283 678
Interests on bonds		10 974	12 633
Net cash from investing activities		(28 160)	295 188
Cash flow from financing activities
Payments of liabilities under finance lease agreements		(5 706)	(6 387)
Interest paid under lease		(481)	(490)
Dividends paid to owners		(590 198)	-
Contributions of capital by non-controlling interests		276	-
Inclusion of share based incentive scheme		3 734	-
Purchase of own shares		(7 750)	-
Net cash from financing activities		(600 125)	(6 877)
Increase (Decrease) in net cash and cash equivalents		(163 127)	428 887
Cash and cash equivalents – opening balance		1 409 897	1 222 499
Increase (Decrease) in net cash and cash equivalents		(163 127)	428 887
Effect of FX rates fluctuations on balance of cash in foreign currencies		2 817	(333)
Cash and cash equivalents – closing balance	13	1 249 587	1 651 053

The half-year condensed consolidated cash flow statement should be read together with the supplementary notes to the halfyear condensed consolidated financial statements, which are an integral part of these half-year condensed consolidated financial statements.

ADDITIONAL EXPLANATORY NOTES TO THE HALF-YEAR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Information about the Parent Company and composition of the Group

The Parent Company in the XTB S.A Group (the "Group") is XTB S.A. (hereinafter: the "Parent Entity", "Parent Company", "Brokerage") with its headquarters located in Warsaw at Prosta street 67, 00-838 Warszawa, Polska.

XTB S.A. is entered in the Commercial Register of the National Court Register by the District Court for the Capital City of Warsaw, Poland, XII Commercial Division of the National Court Register, under No. KRS 0000217580. The Parent Company was granted a statistical REGON number and a tax identification (NIP) number 5272443955.

The Parent Company's operations consist of conducting brokerage activities on the stock exchange (stocks, ETP – Exchanged Traded Products) and OTC markets (currency derivatives, commodities, indices, stocks and ETP and bonds). The Parent Company is supervised by the Polish Financial Supervision Authority and conducts regulated activities pursuant to a permit dated 8 November 2005, No.DDM-M-4021-57-1/2005.

1.1 Information on the reporting entities in the Parent Company's organisational structure

The half-year condensed consolidated financial statements cover the following foreign branches which form the Parent Company:

XTB S.A. organizačni složka a branch established on 7 March 2007 in the Czech Republic. The branch was registered in the commercial register maintained by the City Court in Prague under No. 56720 and was granted the following tax identification number: CZK 27867102.
XTB S.A. Sucursal en Espana a branch established on 19 December 2007 in Spain. On 16 January 2008, the branch was registered by the Spanish authorities and was granted the tax identification number ES W0601162A.
XTB S.A. organizačná zložka a branch established on 1 July 2008 in the Slovak Republic. On 6 August 2008, the branch was registered in the commercial register maintained by the City Court in Bratislava under No. 36859699 and was granted the following tax identification number: SK4020240324.
XTB S.A. Varsovia Sucursala Bucuresti a branch established on 31 July 2008 in Romania. On 4 August 2008, the branch was registered in the Commercial Register under No. 402030 and was granted the following tax identification number: RO27187343.
XTB S.A. German Branch a branch established on 5 September 2008 in the Federal Republic of Germany. On 24 October 2008, the branch was registered in the Commercial Register under No. HRB 84148 and was granted the following tax identification number: DE266307947.
XTB S.A. Succursale Française a branch established on 21 April 2010 in the Republic of France. On 31 May 2010, the branch was registered in the Commercial Register under No 522758689 and was granted the following tax identification number: FR61522758689.
XTB S.A. Sucursal em Portugal a branch established on 7 July 2010 in Portugal. On 7 July 2010, the branch was registered in the Commercial Register and was granted the following tax identification number: PT980436613.

1.2 Composition of the Group

The XTB S.A. Group is composed by XTB S.A. as the Parent Company and the following subsidiaries:

NAME OF SUBSIDIARY	CONSOLIDATION METHOD	COUNTRY OF REGISTERED OFFICE	ACTIVITIES OF THE SUBSIDIARIES	PERCENTAGE SHARE IN THE CAPITAL 30.06.2024	PERCENTAGE SHARE IN THE CAPITAL 31.12.2023	PERCENTAGE SHARE IN THE CAPITAL 30.06.2023
XTB Limited (UK)	Full	Great Britain	Brokerage activity	100%	100%	100%
X Open Hub Sp. z o.o.	Full	Poland	Applications and electronic trading technology offering	100%	100%	100%
XTB Limited (CY)	Full	Cyprus	Brokerage activity	100%	100%	100%
Tasfiye Halinde XTB Yönetim Danışmanlığı A.Ş.	Full	Turkey	The company does not conduct its operations, is in the process of liquidation	100%	100%	100%
XTB International Limited	Full	Belize	Brokerage activity	100%	100%	100%
XTB Agente de Valores SpA	Full	Chile	The activity of acquiring clients	100%	100%	100%
XTB Services Limited	Full	Cyprus	Marketing, marketing and sales activities (sales support)	100%	100%	100%
XTB Africa (PTY) Ltd.	Full	South Africa	The company has not yet conducted operations	100%	100%	100%
XTB MENA Limited	Full	UAE	Brokerage activity	100%	100%	100%
XTB Digital Ltd.	Full	Cyprus	The company has not yet conducted operations	100%	100%	100%
XTB S.C. Limited	Full	Seychelles	The company has not yet conducted operations	100%	100%	-
PT XTB Indonesia Berjangka Full		Indonesia	The company has not yet conducted operations	90%	-	-

On 15 September 2020, the liquidation process of the company in Turkey Tasfiye Halinde XTB Yönetim Danışmanlığı A.Ş. has begun.

As at the 30 June 2024, amount of negative foreign exchange differences on translation of balances in foreign currencies of Turkish company amounted PLN (3 644), as at the 31 December 2023 PLN (3 655) thousand, as at 30 June 2023 PLN (3 719) thousand (note 23). Exchange differences will be recognized in consolidated financial statement at the date of liquidation of the company.

On 9 March 2024, the Parent Company allocated USD 1 million for share capital increase in its subsidiary XTB MENA Limited, maintaining a 100% share in its capital. On 5 April 2024, the Parent Company allocated USD 1,5 million for another share capital increase in its subsidiary XTB MENA Limited, maintaining a 100% share in its capital.

On 6 October 2022, XTB S.C. Limited with its seat in Republic of Seychelles was registered in the local register of entrepreneurs. On 21 April 2023 XTB S.C. Limited was granted license No. SD148 by the Financial Services Authority (FSA) to operate in the Republic of Seychelles. The company will provide brokerage services. The Parent Company has acquired 99,9% of the shares in the subsidiary. The remaining 0,1% stake is held by another subsidiary, XTB Services Limited. On 16 November 2023, the shares in XTB S.C. Limited with its seat in the Seychelles, were paid up. The contributed capital amounted to USD 50 thousand. As at the date of these financial statements the company did not conduct its operations.

On 5 December 2022, XTB Digital Ltd. with its seat in Cyprus was registered in the local register of entrepreneurs. The Parent Company acquired 100% of the shares in the subsidiary. On 3 April 2023, the shares in Digital Ltd. With its seat in Cyprus were paid up. The contributed capital amounted to EUR 300 thousand. As at the date of these financial statements the company did not conduct its operations.

On 27 July 2023, the subsidiary XTB Chile SpA changed its name to XTB Agente de Valores SpA.

On 17 January 2024 the Parent Company acquired 90% shares in the company PT Rajawali Kapital Berjangka with the seat in the Republic of Indonesia which is a derivatives broker regulated by the Commodity Futures Trading Supervisory Agency (in short BAPPEBTI). On 16 February 2024, the Parent Company allocated USD 315 thousand for share capital increase in its subsidiary PT Rajawali Kapital Berjangka, maintaining a 90% share in its capital.

On 29 April 2024 the subsidiary PT Rajawali Kapital Berjangka changed its name to PT XTB Indonesia Berjangka.

1.3 Composition of the Management Board

In the period covered by the half-year condensed consolidated financial statements and in the comparative period, the Management Board was composed of the following persons:

NAME AND SURNAME	FUNCTION	DATE OF FIRST APPOINTMENT	TERM OF OFFICE
Omar Arnaout	Chairman of the Management Board	23.03.2017	From the 1 July 2022 appointed for the new 3-years term of office ending 1 July 2025
Paweł Szejko	Board Member	28.01.2015	From the 1 July 2022 appointed for the new 3-years term of office ending 1 July 2025
Filip Kaczmarzyk	Board Member	10.01.2017	From the 1 July 2022 appointed for the new 3-years term of office ending 1 July 2025
Jakub Kubacki	Board Member	10.07.2018	From the 1 July 2022 appointed for the new 3-years term of office ending 1 July 2025
Andrzej Przybylski	Board Member	01.05.2019	From the 1 July 2022 appointed for the new 3-years term of office ending 1 July 2025

2. Basis for drafting the financial statements

2.1 Compliance statement

These half-year condensed consolidated financial statements were prepared based on International Accounting Standars (IAS) 34 approved by the European Union.

The half-year condensed consolidated financial statements of the XTB S.A. Group prepared for the period from 1 January 2024 to 30 June 2024 with comparative data for the period ended 30 June 2023 and as at 31 December 2023, cover the Parent Company's financial data and financial data of the subsidiaries comprising the "Group".

These half-year condensed consolidated financial statements have been prepared on the historical cost basis, with the exception of financial assets at fair value and other assets and liabilities which valuation methods are described in the accounting policy. The Group's assets are presented in the statement of financial position according to their liquidity, and its liabilities according to their maturities.

The adopted accounting principles are consistent with the principles of the previous financial year, except for the income tax charge, which was calculated in accordance with the principles set out in IAS 34.30c and the new standards effective from 1 January 2024.

The Group companies maintain their accounting records in accordance with the accounting principles generally accepted in the countries in which these companies are established. The half-year condensed consolidated financial statements include adjustments made in order to reconcile their financial statements with the Group's accounting principles.

The half-year condensed consolidated financial statements were approved by the Management Board of the Parent Company on 19 August 2024.

Drafting this half-year condensed consolidated financial statements, the Parent Company decided that none of the Standards would be applied retrospectively.

The IFRS comprise standards and interpretations approved by the International Accounting Standards Board ("IASB") and the International Financial Reporting Interpretations Committee ("IFRIC").

2.2 Functional currency and reporting currency

The functional currency and the presentation currency of these half-year condensed consolidated financial statements is the Polish zloty ("PLN"), and unless stated otherwise, all amounts are shown in thousands of zloty (PLN'000).

2.3 Going concern

The half-year condensed consolidated financial statements were prepared based on the assumption that the Group would continue as a going concern in the foreseeable future. At the date of preparation of these half-year condensed consolidated financial statements, the Management Board of XTB S.A. does not state any circumstances that would threaten the Group companies' continued operations in the 12 months from the date of acceptance of these financial statements, with the exception of subsidiary Tasfiye Halinde XTB Yönetim Danışmanlığı A.Ş. in Turkey described in note 1.2.

2.4 Comparability of data and consistency of the policies applied

Data presented in the half-year condensed consolidated financial statements is comparable and prepared under the same principles for all periods covered by the half-year condensed consolidated financial statements.

Following the introduction of interest deposits on clients cash, in order to better reflect and ensure comparability of data, starting from the interim condensed financial statements for 2024, the Group has decided to present Net Interest Income on Clients Cash in Income from operating activities. The data for 2023 have been brought to comparability on the basis of the data available in the reporting systems.

2.5 The impact of Russia's invasion of Ukraine on the Group's results

On 24 February 2022, Russian troops crossed the eastern, southern and northern borders of Ukraine, attacking the territory of Ukraine. In connection with hostilities by Russia, representatives of the European Union and many other countries have introduced severe sanctions against Russia, which mainly affect strategic sectors of the Russian economy by blocking access to technology and markets. This situation currently has no significant impact on the Group, however, it caused high volatility in the financial and commodity markets around the world, which affected the transaction activity of XTB clients and the Group's results in 2022.

2.6 Changes in the accounting policies

The accounting policies applied in the preparation of the half-year condensed consolidated financial statements are consistent with those applied in the preparation of the consolidated financial statements of the Group for the year ended 31 December 2023, except for the application of new or amended standards and interpretations applicable to annual periods beginning on or after 1 January 2024.

Amendments to IFRS 16 "Leases" lease liabilities in sale and leaseback transactions,
Amendments to IAS 1 "Presentation of Financial Statements" classification of liabilities as current or non-current,
Amendments to IAS 7 "Statement of Cash Flows" and IFRS 7 "Financial Instruments: Disclosures" financing agreements for liabilities to suppliers – not yet endorsed by EU at the date of approval of these financial statements,

The Group has not decided to apply earlier any Standard, Interpretation or Amendment that has been issued, but has not yet become effective in light of the EU regulations. New or amended standards and interpretations that are applicable for the first time in 2024 did not have a significant impact on the Group's consolidated financial statements.

2.7 New standards and interpretations which have been published but are not yet binding

The following standards and interpretations have been published by the International Accounting Standards Board but are not yet binding:

Amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates" lack of interchangeability not yet endorsed by EU at the date of approval of these financial statements – effective for financial years beginning on or after 1 January 2025,
Amendments to IFRS 9 "Financial Instruments" and IFRS 7 "Financial Instruments Disclosures" amendments in the classification and measurement of financial instruments - not yet endorsed by EU at the date of approval of these financial statements - effective for financial years beginning on or after 1 January 2026,
IFRS 18 "Presentation and disclosures in the financial statements" not yet endorsed by EU at the date of approval of these financial statements – effective for financial years beginning on or after 1 January 2027 or later,
IFRS 19 "Subsidiaries without public accountability: disclosure of information" not yet endorsed by the EU at the date of approval of these financial statements – effective for financial years beginning on or after 1 January 2027,
IFRS 14 "Regulatory Deferral Accounts" the endorsement process of these Amendments has been postponed by EU the effective date was deferred indefinitely by IASB,
Amendments to IFRS 10 "Consolidated financial statements" and IAS 28 "Investments in Associates and Joint Ventures" - sale or contribution of Assets Between an Investor and its Associate or Joint Venture – the endorsement process of these Amendments has been postponed by EU - the effective date was deferred indefinitely by IASB.

Above new standards and interpretations which have been published but are not yet binding do not have a significant impact on the Group's half-year condensed consolidated financial statements.

3. Professional judgement

In the process of applying the accounting principles (policy), the Management Board of the Parent Company made the following judgements that have the greatest impact on the reported carrying amounts of assets and liabilities.

Revenue recognition

Transaction price is determined at fair value which is described in accounting policy. Liabilities due to reimbursements and other in the case of the Group do not occur.

3.1 Material estimates and valuations

In order to prepare its financial statements in accordance with the IFRS, the Group has to make certain estimates and assumptions that affect the amounts disclosed in the financial statements. Estimates and assumptions subject to day-to-day evaluation by the Group's management are based on experience and other factors, including expectations as to future events that seem justified in the given situation. The results are a basis for estimates of carrying amounts of assets and liabilities.

Although the estimates are based on best knowledge regarding the current conditions and actions taken by the Group, actual results may differ from the estimates. Adjustments to estimates are recognised during the reporting period in which the adjustment was made provided that such adjustment refers only to the given period or in subsequent periods if the adjustment affects both the current period and subsequent periods. The most important areas for which the Group makes estimates are presented below.

3.2 Impairment of assets

As at each balance sheet date, the Group determines whether there are any indications of impairment of a given financial asset or group of financial assets. In particular, the Group tests its past due receivables for impairment and writes down the estimated amount of doubtful and uncollectible receivables.

At each balance sheet date, the Group assesses whether there are objective indications of impairment of other assets, including intangible assets. Impairment is recognised when it is highly likely that all or a significant part of the respective assets will not bring about the expected economic benefits, e.g. as a result of expiry of licences or decommissioning.

Deferred income tax assets

At each balance sheet date, the Parent Company assesses the likelihood of settlement of unused tax credits with the estimated future taxable profit and recognises the deferred tax asset only to the extent that it is probable that future taxable profit will be available against which the unused tax credits can be utilized, which is described in note 26.2.2.

The Group recognises a deferred tax asset based on the assumption that a tax profit will be generated in the future enabling its utilisation. Deterioration in tax results in the future might result in the assumption becoming unjustified.

The deferred tax asset relates mainly to the losses generated by foreign operations and subsidiaries in the initial period of their operation recognised in the balance sheet. The Group analyses the possibility of recognising such assets, taking into consideration local tax regulations, and analyses future tax budgets assessing the possibility of recovering these assets.

3.3 Fair value measurement

Information on estimates relative to fair value measurement is presented in note 36 – Risk management. The fair value measurement framework uses valuation techniques that are appropriate to the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. The methodology developed by the Group for determining fair value involves adjusting the fair value model to the characteristics of the financial asset being valued.

3.4 Other estimates

Provisions for liabilities connected with retirement, pension and death benefits are calculated using the actuarial method by an independent actuary as the current value of the Group's future amounts due to employees, based on their employment and salaries as at the balance sheet date. The calculation of the provision amount is based on a number of assumptions, regarding both macroeconomic conditions and employee turnover, risk of death, and others.

Provision for unused holidays is calculated on the basis of the estimated payment of holiday benefits, based on the number of unused holidays, and remuneration as at the balance sheet date.

Provisions for legal risk are determined individually based on the circumstances of a given case. The Group assesses the chance of winning particular case and consequently assesses the need of establishment of provision in case of a loss in relations to all court cases.

4. Adopted material accounting principles

The accounting policies applied in the preparation of the half-year condensed consolidated financial statements are consistent with the accounting policies applied in the preparation of the annual consolidated financial statements for the financial year ended 31 December 2023, except for the new or amended standards and new interpretations binding for the annual periods starting on or after 1 January 2024.

5. Seasonality of operations

The Group's operations are not seasonal.

6. Operating income

6.1 Result of operations in financial instruments

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Financial instruments (CFD)
Commodity CFDs	449 519	323 622
Index CFDs	347 119	436 279
Currency CFDs	95 555	65 076
Stock and ETP CFDs	20 933	9 365
Bond CFDs	428	693
Total CFDs	913 554	835 035
Stocks and ETPs	18 824	6 545
Gross gain on transactions in financial instruments	932 378	841 580
Bonuses and discounts paid to customers	(3 642)	(5 943)
Commission paid to cooperating brokers	(25 818)	(22 954)
Net gain on transactions in financial instruments	902 918	812 683

Bonuses paid to clients are strictly related to trading in financial instruments by the customer with Group.

The Group concludes cooperation agreements with introducing brokers who receive commissions which depend on the trade generated under the cooperation agreements. The income generated and the costs incurred between the Group and particular brokers relate to the trade between the broker and customers that are not his customers.

The Group's operating incomes is generated from: (i) spreads (the differences between the "offer" price and the "bid" price); (ii) fees and commissions charged by the Group to its clients and swap points charged (being the amounts resulting from the difference between the notional forward rate and the spot rate of a given financial instrument); (iii) net results (gains offset by losses) from Group's market making activities.

6.2 Income from fees and charges

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Fees and charges from institutional clients	2 113	3 538
Fees and charges from retail clients	3 801	2 586
Total income from fees and charges	5 914	6 124

6.3 Geographical areas

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Operating income
Central and Eastern Europe	600 605	517 079
- including Poland	476 901	404 469
Western Europe	184 966	191 773
Latin America *	66 309	70 932
Middle East**	85 898	50 903
Asia	8	-
Total operating income	937 786	830 687

* The subsidiary XTB International Ltd., with its seat in Belize, acquires clients from Latin America and the rest of the world (without Europe). The item excludes revenues of clients acquired by this company from the Middle East region. ** Revenue from clients from the Middle East, acquired by XTB International Ltd. With its seat in Belize and XTB MENA Limited with its seat in the United Arab Emirates.

The country from which the Group derives each time 20% and over of its revenue is Poland with a share of 50,9% (in 1HY2023: 48,7%). Due to the overall share in the Group's revenue Poland was set apart for presentation purposes within the geographical area. The share of other countries in the structure of the Group's revenue by geographical area does not in any case exceed 20%.

The Group breaks its revenue down into geographical area by country in which a given customer was acquired.

7. Salaries and employee benefits

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Salaries	(126 652)	(106 363)
Social insurance and other benefits	(16 666)	(14 380)
Employee benefits	(4 961)	(4 037)
Total salaries and employee benefits	(148 279)	(124 780)

8. Marketing

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Marketing online	(124 799)	(110 312)
Marketing offline	(31 540)	(25 927)
Competitions for clients	(1)	(19)
Total marketing	(156 340)	(136 258)

Marketing activities carried out by the Group are mainly focused on Internet marketing, which is also supported by other marketing activities.

9. Other external services

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Support database systems	(17 293)	(12 121)
Legal and advisory services	(6 079)	(5 248)
Market data delivery	(6 006)	(5 397)
Internet and telecommunications	(2 284)	(2 013)
Accounting and audit services	(1 310)	(1 395)
IT support services	(669)	(1 354)
Recruitment	(597)	(1 162)
Postal and courier services	(80)	(82)
Translation	(84)	(99)
Other external services	(1 195)	(1 136)
Total other external services	(35 597)	(30 007)

10. Commission expenses

	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
(IN PLN'000)	30.06.2024	30.06.2023
Bank commissions	(37 231)	(16 303)
Stock exchange fees and charges	(6 450)	(5 200)
Commissions of foreign brokers	(239)	(7 482)
Total commission expenses	(43 920)	(28 985)

11. Finance income and costs

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Interest income on financial instruments at amortized cost	16 185	24 198
Income on bonds	15 008	17 505
Foreign exchange gains	6 186	-
Other finance income	105	50
Total finance income	37 684	41 753

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Interest paid under lease agreements	(481)	(490)
Other interest	(28)	(27)
Foreign exchange losses	-	(18 477)
Other finance costs	(4)	(42)
Total finance costs	(513)	(19 036)

Foreign exchange differences relate to unrealised differences on the measurement of balance sheet items denominated in a currency other than the functional currency.

12. Segment information

For management reporting purposes, the Group's operations are divided into the following two business segments:

1. Retail operations, which include the provision of trading in financial instruments for individual customers.
1. Institutional activity, which includes the provision of trading in financial instruments and offering trade infrastructure to entities (institutions), which in turn provide services of trading in financial instruments for their own customers under their own brand.

These segments do not aggregate other lower-level segments. The management monitors the results of the operating segments separately, in order to decide on the implementation of strategies, allocation of resources and performance assessment. Operations in segment are assessed on the basis of segment profitability and its impact on the overall profitability reported in the financial statements.

The Group concludes transactions only with external clients. Transactions between operating segments are not concluded. Valuation of assets and liabilities, incomes and expenses of segments is based on the accounting policies applied by the Group. The Group does not allocate financial activity and corporate income tax burden on business segments.

HALF-YEAR CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENT FOR SIX-MONTH PERIOD ENDED 30.06.2024 (IN PLN'000)	RETAIL OPERATIONS	INSTITUTIONAL OPERATIONS	TOTAL REPORTING SEGMENTS	HALF-YEAR CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENT
Net result on transactions in financial instruments	863 554	39 364	902 918	902 918
CFDs
Commodity CFDs	435 966	13 553	449 519	449 519
Index CFDs	319 403	27 716	347 119	347 119
Currency CFDs	97 488	(1 933)	95 555	95 555
Stock and ETP CFDs	20 933	-	20 933	20 933
Bond CFDs	400	28	428	428
Stocks and ETPs	18 824	-	18 824	18 824
Bonuses and discounts paid to customers	(3 642)	-	(3 642)	(3 642)
Commission paid to cooperating brokers	(25 818)	-	(25 818)	(25 818)
Net interest income on clients cash	28 785	-	28 785	28 785
Fee and commission income	3 801	2 113	5 914	5 914
Other income	169	-	169	169
Total operating income	896 309	41 477	937 786	937 786
Marketing	(155 633)	(707)	(156 340)	(156 340)
Salaries and employee benefits	(146 827)	(1 452)	(148 279)	(148 279)
Commission expense	(43 820)	(100)	(43 920)	(43 920)
Other external services	(35 015)	(582)	(35 597)	(35 597)
Amortization and depreciation	(9 706)	(10)	(9 716)	(9 716)
Taxes and fees	(8 661)	(9)	(8 670)	(8 670)
Cost of maintenance and lease of buildings	(3 904)	-	(3 904)	(3 904)
Other expenses	(3 782)	(165)	(3 947)	(3 947)
Total operating expenses	(407 348)	(3 025)	(410 373)	(410 373)
Operating profit	488 961	38 452	527 413	527 413
Finance income				37 684
Finance costs				(513)
Profit before tax				564 584
Income tax				(101 538)
Net profit				463 046

ASSETS AND LIABILITIES AS AT 30.06.2024 (IN PLN'000)	RETAIL OPERATIONS	INSTITUTIONAL OPERATIONS	TOTAL REPORTING SEGMENTS	HALF-YEAR CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Customers' cash and cash equivalents	2 720 580	48 422	2 769 002	2 769 002
Financial assets at fair value through P&L	1 032 780	15 936	1 048 716	1 048 716
Other assets	1 379 334	455	1 379 789	1 379 789
Total assets	5 132 694	64 813	5 197 507	5 197 507

Amounts due to customers	3 164 006	58 881	3 222 887	3 222 887
Financial liabilities held for trading	148 271	4 997	153 268	153 268
Other liabilities	216 241	1	216 242	216 242
Total liabilities	3 528 518	63 879	3 592 397	3 592 397

ASSETS AND LIABILITIES AS AT 31.12.2023 (IN PLN'000)	RETAIL OPERATIONS	INSTITUTIONAL OPERATIONS	TOTAL REPORTING SEGMENTS	HALF-YEAR CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Customers' cash and cash equivalents	2 166 322	100 537	2 266 859	2 266 859
Financial assets at fair value through P&L	890 356	12 899	903 255	903 255
Other assets	1 518 073	471	1 518 544	1 518 544
Total assets	4 574 751	113 907	4 688 658	4 688 658

Amounts due to customers	2 528 811	109 311	2 638 122	2 638 122
Financial liabilities held for trading	106 243	4 115	110 358	110 358
Other liabilities	205 508	7	205 515	205 515
Total liabilities	2 840 562	113 433	2 953 995	2 953 995

HALF-YEAR CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENT FOR SIX-MONTH PERIOD ENDED 30.06.2023 (IN PLN'000)	RETAIL OPERATIONS	INSTITUTIONAL OPERATIONS	TOTAL REPORTING SEGMENTS	HALF-YEAR CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENT
Net result on transactions in financial instruments	738 066	74 617	812 683	812 683
CFDs
Commodity CFDs	298 164	25 458	323 622	323 622
Index CFDs	388 749	47 530	436 279	436 279
Currency CFDs	63 493	1 583	65 076	65 076
Stock and ETP CFDs	9 365	-	9 365	9 365
Bond CFDs	647	46	693	693
Stocks and ETPs	6 545	-	6 545	6 545
Bonuses and discounts paid to customers	(5 943)	-	(5 943)	(5 943)
Commission paid to cooperating brokers	(22 954)	-	(22 954)	(22 954)
Net interest income on clients cash	11 835	-	11 835	11 835
Fee and commission income	2 586	3 538	6 124	6 124
Other income	45	-	45	45
Total operating income	752 532	78 155	830 687	830 687
Marketing	(135 565)	(693)	(136 258)	(136 258)
Salaries and employee benefits	(123 168)	(1 612)	(124 780)	(124 780)
Commission expense	(28 976)	(9)	(28 985)	(28 985)
Other external services	(28 850)	(1 157)	(30 007)	(30 007)
Amortization and depreciation	(7 712)	(18)	(7 730)	(7 730)
Taxes and fees	(5 876)	(13)	(5 889)	(5 889)
Cost of maintenance and lease of buildings	(3 775)	-	(3 775)	(3 775)
Other expenses	(4 074)	(98)	(4 172)	(4 172)
Total operating expenses	(337 996)	(3 600)	(341 596)	(341 596)
Operating profit	414 536	74 555	489 091	489 091
Finance income				41 995
Finance costs				(19 036)
Profit before tax				512 050
Income tax				(91 053)
Net profit				420 997

ASSETS AND LIABILITIES AS AT 30.06.2023 (IN PLN'000)	RETAIL OPERATIONS	INSTITUTIONAL OPERATIONS	TOTAL REPORTING SEGMENTS	HALF-YEAR CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Customers' cash and cash equivalents	1 884 970	76 220	1 961 190	1 961 190
Financial assets at fair value through P&L	915 059	16 350	931 409	931 409
Other assets	1 769 640	703	1 770 343	1 770 343
Total assets	4 569 669	93 273	4 662 942	4 662 942

Amounts due to customers	2 363 760	87 530	2 451 290	2 451 290
Financial liabilities held for trading	100 432	2 954	103 386	103 386
Other liabilities	755 385	1	755 386	755 386
Total liabilities	3 219 577	90 485	3 310 062	3 310 062

13. Cash and cash equivalents

Broken down by type:

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Cash in current accounts in bank and their equivalents	4 018 589	3 676 756	3 612 243
Cash and cash equivalents in total	4 018 589	3 676 756	3 612 243

The Group classifies as cash equivalents short-term deposits with maturities of less than 3 months and accrued interest thereon.

Own cash and restricted cash – customers' cash:

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Customers' cash and cash equivalents	2 769 002	2 266 859	1 961 190
Own cash and cash equivalents	1 249 587	1 409 897	1 651 053
Cash and cash equivalents in total	4 018 589	3 676 756	3 612 243

Customers' cash and cash equivalents include the value of clients' open transactions.

14. Financial assets at fair value through P&L

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
CFDs
Index CFDs	155 581	186 949	205 378
Commodity CFDs	143 274	130 397	150 999
Currency CFDs	121 936	90 150	99 237
Stock and ETP CFDs	97 783	77 665	80 930
Bond CFDs	181	142	2 854
Debt instruments (treasury bonds)	410 788	401 265	379 882
Debt instruments (corporate bonds)	20 040	-	-
Stocks and ETPs	99 133	16 687	12 129
Total financial assets at fair value through P&L	1 048 716	903 255	931 409

Detailed information on the estimated fair value of the instrument is presented in note 33.1.1.

15. Financial assets at amortised cost

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Trade receivables	21 407	11 364	21 864
Amounts due from the Central Securities Depository of Poland	15 700	14 162	13 969
Receivables due from clients	12 435	8 795	7 392
Deposits	4 798	5 053	5 193
Statutory receivables	1 389	876	1 656
Gross other receivables	55 729	40 250	50 074
Impairment write-downs of receivables	(970)	(997)	(749)
Impairment write-downs of receivables due from clients	(8 393)	(7 846)	(6 572)
Total net other receivables	46 366	31 407	42 753

Movements in impairment write-downs of receivables

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Impairment write-downs of receivables – at the beginning of the reporting period	(8 843)	(6 311)	(6 311)
Write-downs recorded	(1 769)	(3 749)	(816)
Write-downs reversed	1 249	1 502	372
Write-downs utilized	-	(285)	(566)
Impairment write-downs of receivables – at the end of the reporting period	(9 363)	(8 843)	(7 321)

Write-downs of receivables in 2024 and 2023 resulted from the debit balances which arose in customers' accounts in those periods.

16. Intangible assets

Intangible assets in the period from 1 January 2024 to 30 June 2024

(IN PLN'000)	LICENCES FOR COMPUTER SOFTWARE	INTANGIBLE ASSETS MANUFACTURED INTERNALLY	OTHER INTANGIBLE ASSETS	TOTAL
Gross value as at 1 January 2024	6 487	10 792	4 814	22 093
Additions	199	-	917	1 116
Sale and scrapping	-	-	-	-
Net foreign exchange differences	(2)	-	-	(2)
Gross value as at 30 June 2024	6 684	10 792	5 731	23 207

Accumulated amortization as at 1 January 2024	(5 399)	(10 792)	(4 735)	(20 926)
Amortization for the current period	(174)	-	(59)	(233)
Sale and scrapping	(68)	-	-	(68)
Net foreign exchange differences	2	-	-	2
Accumulated amortization as at 30 June 2024	(5 639)	(10 792)	(4 794)	(21 225)
Net book value as at 1 January 2024	1 088	-	79	1 167
Net book value as at 30 June 2024	1 045	-	937	1 982

Intangible assets manufactured internally relate to a financial instrument trading platform and applications compatible with this platform. Other intangible assets relate to the separated license value under the acquisition of the subsidiary described in note 1.2.

Intangible assets in the period from 1 January 2023 to 31 December 2023

(IN PLN'000)	LICENCES FOR COMPUTER SOFTWARE	INTANGIBLE ASSETS MANUFACTURED INTERNALLY	OTHER INTANGIBLE ASSETS	TOTAL
Gross value as at 1 January 2023	6 405	10 792	4 814	22 011
Additions	106	-	-	106
Sale and scrapping	-	-	-	-
Net foreign exchange differences	(24)	-	-	(24)
Gross value as at 31 December 2023	6 487	10 792	4 814	22 093

Accumulated amortization as at 1 January 2023	(5 069)	(10 792)	(4 709)	(20 570)
Amortization for the current period	(353)	-	(26)	(379)
Sale and scrapping	-	-	-	-
Net foreign exchange differences	23	-	-	23
Accumulated amortization as at 31 December 2023	(5 399)	(10 792)	(4 735)	(20 926)
Net book value as at 1 January 2023	1 336	-	105	1 441
Net book value as at 31 December 2023	1 088	-	79	1 167

Intangible assets in the period from 1 January 2023 to 30 June 2023

(IN PLN'000)	LICENCES FOR COMPUTER SOFTWARE	INTANGIBLE ASSETS MANUFACTURED INTERNALLY	OTHER INTANGIBLE ASSETS	TOTAL
Gross value as at 1 January 2023	6 405	10 792	4 814	22 011
Additions	93	-	-	93
Sale and scrapping	(5)	-	-	(5)
Net foreign exchange differences	(17)	-	-	(17)
Gross value as at 30 June 2023	6 476	10 792	4 814	22 082

Accumulated amortization as at 1 January 2023	(5 069)	(10 792)	(4 709)	(20 570)
Amortization for the current period	(175)	-	(13)	(188)
Sale and scrapping	5	-	-	5
Net foreign exchange differences	16	-	-	16
Accumulated amortization as at 30 June 2023	(5 223)	(10 792)	(4 722)	(20 737)
Net book value as at 1 January 2023	1 336	-	105	1 441
Net book value as at 30 June 2023	1 253	-	92	1 345

17. Property, plant and equipment

Property, plant and equipment in the period from 1 January 2024 to 30 June 2024

(IN PLN'000)	COMPUTER SYSTEMS	OTHER PROPERTY, PLANT AND EQUIPMENT	RIGHT TO USE OFFICE	RIGHT TO USE CAR	TANGIBLE FIXED ASSETS UNDER CONSTRUCTION	TOTAL
Gross value as at 1 January 2024	35 382	14 857	43 595	570	298	94 702
Additions	10 651	507	-	-	1 374	12 532
Lease	-	-	3 834	-	-	3 834
Sale and scrapping	(237)	(41)	(3 550)	-	-	(3 828)
Net foreign exchange differences	(58)	(81)	(191)	(8)	-	(338)
Gross value as at 30 June 2024	45 738	15 242	43 688	562	1 672	106 902

Accumulated amortization as at 1 January 2024	(21 763)	(5 365)	(16 851)	(337)	-	(44 316)
Amortization for the current period	(3 278)	(1 148)	(5 002)	(55)	-	(9 483)
Sale and scrapping	221	20	3 529	-	-	3 770
Net foreign exchange differences	36	26	24	5	-	91
Accumulated amortization as at 30 June 2024	(24 784)	(6 467)	(18 300)	(387)	-	(49 938)
Net book value as at 1 January 2024	13 619	9 492	26 744	233	298	50 386
Net book value as at 30 June 2024	20 954	8 775	25 388	175	1 672	56 964

Property, plant and equipment in the period from 1 January 2023 to 31 December 2023

(IN PLN'000)	COMPUTER SYSTEMS	OTHER PROPERTY, PLANT AND EQUIPMENT	RIGHT TO USE OFFICE	RIGHT TO USE CAR	TANGIBLE FIXED ASSETS UNDER CONSTRUCTION	TOTAL
Gross value as at 1 January 2023	28 428	9 305	38 980	620	1 187	78 520
Additions	7 824	6 607	-	-	31	14 462
Lease	-	-	10 553	2	-	10 555
Sale and scrapping	(579)	(793)	(4 239)	-	(848)	(6 459)
Net foreign exchange differences	(291)	(262)	(1 699)	(52)	(72)	(2 376)
Gross value as at 31 December 2023	35 382	14 857	43 595	570	298	94 702

Accumulated amortization as at 1 January 2023	(17 188)	(4 431)	(11 353)	(245)	-	(33 217)
Amortization for the current period	(5 386)	(1 833)	(9 482)	(117)	-	(16 818)
Sale and scrapping	577	655	3 000	(2)	-	4 230
Net foreign exchange differences	234	244	984	27	-	1 490
Accumulated amortization as at 31 December 2023	(21 763)	(5 365)	(16 851)	(337)	-	(44 316)
Net book value as at 1 January 2023	11 240	4 874	27 627	375	1 187	45 303
Net book value as at 31 December 2023	13 619	9 492	26 744	233	298	50 386

Property, plant and equipment in the period from 1 January 2023 to 30 June 2023

(IN PLN'000)	COMPUTER SYSTEMS	OTHER PROPERTY, PLANT AND EQUIPMENT	RIGHT TO USE OFFICE	RIGHT TO USE CAR	TANGIBLE FIXED ASSETS UNDER CONSTRUCTION	TOTAL
Gross value as at 1 January 2023	28 428	9 305	38 980	620	1 187	78 520
Additions	2 970	4 999	-	-	(883)	7 086
Lease	-	-	8 162	-	-	8 162
Sale and scrapping	(315)	(673)	(5 305)	(64)	-	(6 357)
Net foreign exchange differences	(134)	(140)	(954)	(27)	(50)	(1 305)
Gross value as at 30 June 2023	30 949	13 491	40 883	529	254	86 106

Accumulated amortization as at 1 January 2023	(17 188)	(4 431)	(11 353)	(245)	-	(33 217)
Amortization for the current period	(2 527)	(695)	(4 260)	(60)	-	(7 542)
Sale and scrapping	337	570	3 756	64	-	4 727
Net foreign exchange differences	107	117	399	12	-	635
Accumulated amortization as at 30 June 2023	(19 271)	(4 439)	(11 458)	(229)	-	(35 397)
Net book value as at 1 January 2023	11 240	4 874	27 627	375	1 187	45 303
Net book value as at 30 June 2023	11 678	9 052	29 425	300	254	50 709

Non-current assets by geographical area

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Non-current assets
Central and Eastern Europe	43 625	37 405	37 700
- including Poland	37 360	30 569	30 211
Western Europe	13 204	12 687	12 197
Latin America and UAE	1 099	1 461	2 157
Asia	1 018	-	-
Total non-current assets	58 946	51 553	52 054

18. Amounts due to customers

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Amounts due to retail customers	3 164 006	2 528 811	2 363 760
Amounts due to institutional customers	58 881	109 311	87 530
Total amounts due to customers	3 222 887	2 638 122	2 451 290

Amounts due to customers are connected with transactions concluded by the customers (including cash deposited in the customers' accounts).

19. Financial liabilities held for trading

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Financial instruments (CFD)
Stock and ETP CFDs	52 572	33 982	37 211
Currency CFDs	47 052	32 033	24 130
Index CFDs	32 233	28 615	21 005
Commodity CFDs	21 385	15 654	20 758
Bond CFDs	26	74	282
Total financial liabilities held for trading	153 268	110 358	103 386

20. Liabilities due to lease

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Short- term	8 348	8 963	8 715
Long- term	19 383	20 640	23 510
Total liabilities due to lease	27 731	29 603	32 225

Liabilities due to lease do not include short-term leasing contracts and lease of low-value assets.

In the period from 1 January to 30 June 2024 the cost related to short-term leasing included in the statement of comprehensive income amounted to PLN 112 thousand, there was no costs related to lease of low-value assets included in the statement of comprehensive income.

In the period from 1 January to 31 December 2023 the cost related to short-term leasing included in the statement of comprehensive income amounted to PLN 586 thousand, the cost related to lease of low-value assets included in the statement of comprehensive income amounted to PLN 15 thousand.

In the period from 1 January to 30 June 2023 the cost related to short-term leasing included in the statement of comprehensive income amounted to PLN 641 thousand, the cost related to lease of low-value assets included in the statement of comprehensive income amounted to PLN 18 thousand.

The Group is a lessee in the case of lease agreements for office space and cars. The value of the leased item is presented in Note 17.

21. Other liabilities

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Trade liabilities	54 812	33 711	7 316
Liabilities due to brokers	26 855	8 908	13 518
Provisions for other employee benefits	20 493	31 888	33 588
Statutory liabilities	17 244	8 038	9 471
Amounts due to the Central Securities Depository of Poland	420	2 673	5 425
Liabilities due to employees	809	862	739
Liabilities to shareholders	-	-	570 484
Total other liabilities	120 633	86 080	640 541

Liabilities under employee benefits include estimates, as at the balance sheet date, of bonuses for the reporting period, including from the Program of variable remuneration elements, as well as the provision for unused holiday leave.

Program of variable remuneration elements

Pursuant to the Variable Remuneration Elements policy applied by the Parent Company, the employees of the Parent Company in the top management positions receive annually variable remuneration paid in cash and in financial instruments.

The value of provisions for employee benefits includes variable remuneration granted in cash and based on financial instruments, deferred for payment in three consecutive years.

On 31 July 2023, XTB established an Incentive Program for individuals whose professional activities have a significant impact on the Parent Company's risk profile. Under this program, XTB will offer its participants 100% variable compensation payable in the form of shares. The shares will be offered as part of the Variable Remuneration Elements awarded for the financial results achieved by XTB in the financial year for which the Actual Bonus is awarded. Actual Bonus means the actual value of the bonus that was awarded to the Incentive Program participants for a given financial year. Part of the benefits granted in the form of equity instruments which value is related to the financial situation of the Parent Company, will be paid within 3 years from the date of grant.

As at 30 June 2024, provision for variable remuneration elements settled in financial instruments acquired by members of the board for the previous reporting periods is in the amount of PLN 6 thousand, as at 31 December 2023 in the amount of PLN 474 thousand and as at 30 June 2023 in the amount of PLN 8 499 thousand.

Due to the introduction of the Incentive Program at XTB S.A., the costs associated with share-based payments were included in the Group's equity. As at 30 June 2023, the costs related to the payment of variable remuneration elements were recognized in Other liabilities of the Group.

22. Provisions for liabilities and contingent liabilities

22.1 Provisions for liabilities

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Provisions for retirement benefits	360	338	211
Provisions for legal risk	3 389	3 554	4 050
Total provisions	3 749	3 892	4 261

Provisions for retirement benefits are established on the basis of an actuarial valuation carried out in accordance with the applicable regulations and agreements connected with obligatory retirement benefits to be covered by the employer.

Provisions for legal risk include expected amounts of payments to be made in connection with disputes to which the Group is a party. As at the date of preparation of these financial statements, the Group is not able to specify when the above liabilities will be repaid. The information on the significant court proceedings, arbitration authority or public administration authority was described in point 5.2 of the Management Board report on the operations of the Group and Company. To the best of our knowledge and belief, the procedures described therein and the future resolution of these proceedings in the context of a possible impact on other clients of the Group do not have a material impact on these half-year condensed consolidated financial statements.

Movements in provisions in the period from 1 January 2024 to 30 June 2024

(IN PLN'000)	VALUE AS AT 01.01.2024	INCREASES	DECREASES		VALUE AS AT
			USE	REVERSAL	30.06.2024
Provisions for retirement benefits	338	22	-	-	360
Provisions for legal risk	3 554	-	137	28	3 389
Total provisions	3 892	22	137	28	3 749

Movements in provisions in the period from 1 January 2023 to 31 December 2023

(IN PLN'000)	VALUE AS AT 01.01.2023	INCREASES	DECREASES		VALUE AS AT
			USE	REVERSAL	31.12.2023
Provisions for retirement benefits	215	125	-	2	338
Provisions for legal risk	4 041	1 288	848	927	3 554
Total provisions	4 256	1 413	848	929	3 892

Movements in provisions in the period from 1 January 2023 to 30 June 2023

(IN PLN'000)	VALUE AS AT 01.01.2023	INCREASES	DECREASES		VALUE AS AT
			USE	REVERSAL	30.06.2023
Provisions for retirement benefits	215	-	-	4	211
Provisions for legal risk	4 041	588	331	248	4 050
Total provisions	4 256	588	331	252	4 261

22.2 Contingent liabilities

The Group is party to a number of court proceedings associated with the Group's operations. The proceedings in which the Group acts as defendant relate mainly to employees' and customers' claims.

As at 30 June 2024 the total value of claims brought against the Group amounted to approx. PLN 14 979 thousand (as at 31 December 2023: PLN 19 697 thousand, as at 30 June 2023: PLN 15 757 thousand). Group has not created provisions for the above proceedings. In the assessment of the Group there is low probability of loss in these proceedings.

On 9 May 2014, the Parent Company issued a guarantee in the amount of PLN 60 thousand to secure an agreement concluded by a subsidiary XTB Limited, based in the UK and PayPal (Europe) Sarl & Cie, SCA based in Luxembourg. The guarantee was granted for the duration of the main contract, which was concluded for an indefinite period.

On 7 July 2017, the Parent Company issued a guarantee in the amount of PLN 5 533 thousand to secure the agreement concluded between subsidiary XTB Limited based in UK and Worldpay (UK) Limited, Worldpay Limited and Worldpay AP LTD based in UK. The guarantee was issued for the period of the agreement which was concluded for three years with the possibility of further extension.

23. Equity

Share capital structure as at 30 June 2024 and as at 31 December 2023

SERIES/ISSUE	NUMBER OF SHARES	NOMINAL VALUE OF SHARES (IN PLN)	NOMINAL VALUE OF ISSUE (IN PLN'000)
Series A	117 383 635	0,05	5 869
Series B	185 616	0,05	9

Share capital structure as at 30 June 2023

SERIES/ISSUE	NUMBER OF	NOMINAL VALUE OF SHARES	NOMINAL VALUE OF ISSUE
	SHARES	(IN PLN)	(IN PLN'000)
Series A	117 383 635	0,05	5 869

All shares in the Parent Company have the same nominal value, are fully paid for, and carry the same voting and profit-sharing rights. No preference is attached to any share series. The shares are A and B-series ordinary registered shares.

Shareholding structure of the Parent Company

To the best Parent Company's knowledge, the shareholding structure of the Parent Company as at 30 June 2024 was as follows:

	NUMBER OF SHARES	NOMINAL VALUE OF SHARES (IN PLN'000)	SHARE
XXZW Investment Group S.A.	59 872 869	2 993	50,93%
Other shareholders	57 696 382	2 885	49,07%
Total	117 569 251	5 878	100,00%

To the best Parent Company's knowledge, the shareholding structure of the Parent Company as at 31 December 2023 was as follows:

	NUMBER OF SHARES	NOMINAL VALUE OF SHARES (IN PLN'000)	SHARE
XXZW Investment Group S.A.	71 629 794	3 581	60,93%
Other shareholders	45 939 457	2 297	39,07%
Total	117 569 251	5 878	100,00%

To the best Parent Company's knowledge, the shareholding structure of the Parent Company as at 30 June 2023 was as follows:

	NUMBER OF SHARES	NOMINAL VALUE OF SHARES (IN PLN'000)	SHARE
XXZW Investment Group S.A.	71 629 794	3 581	61,02%
Other shareholders	45 753 841	2 288	38,98%
Total	117 383 635	5 869	100,00%

Other capitals

Other capitals consist of:

supplementary capital in the total amount of PLN 71 608 thousand, mandatorily established from annual profit distribution to be used to cover potential losses that may occur in connection with the Group's operations, up to the amount of at least one third of the share capital, amounting to PLN 1 957 thousand and from surplus of the issue price over the nominal price in the amount of PLN 69 651 thousand, resulting from the capital increase in 2012 with a nominal value of PLN 348 thousand for the price of PLN 69 999 thousand,
reserve capital, in the amount of PLN 1 056 088 thousand established from annual distribution of profit as resolved by the General Meeting of Shareholders to be used for financing of further operations of the Group or payment of dividend increased by the cost of the incentive program for persons whose professional activities have a significant impact on the risk profile of the Parent Company,
foreign exchange differences on translation, including foreign exchange of branches and foreign operations in the amount of PLN (5 246) thousand. A detailed presentation of exchange differences resulting from translation is presented in the table below.

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
XTB Spółka Akcyjna	920	80	(57)
XTB Spółka Akcyjna branch in Germany	308	365	533
XTB Spółka Akcyjna branch in Romania	193	204	237
XTB Limited CY	2	61	226
XTB S.C. Limited	(1)	(6)	-
XTB Spółka Akcyjna branch in France	(35)	2	107
XTB Services Limited	(39)	(29)	(51)
XTB Spółka Akcyjna branch in Portugal	(61)	(54)	(31)
XTB Spółka Akcyjna branch in Slovakia	(75)	(65)	(32)
PT XTB Indonesia Berjangka	(91)	-	-
XTB Digital Ltd.	(100)	(91)	(65)
XTB Spółka Akcyjna branch in Spain	(180)	(156)	(88)
XTB Spółka Akcyjna branch in Czech Republic	(186)	(136)	19
XTB Limited UK	(193)	(467)	50
XTB Africa (PTY) Ltd.	(246)	(301)	(274)
XTB International	(258)	(605)	(47)
XTB MENA Limited	(424)	(862)	(308)
XTB Agente de Valores SpA	(1 136)	(880)	(162)
Tasfiye Halinde XTB Yönetim Danışmanlığı A.Ş.	(3 644)	(3 655)	(3 719)
Total foreign exchange differences on translation	(5 246)	(6 595)	(3 662)

24. Profit distribution and dividend

Pursuant to the decision of the General Shareholders' Meeting of the Parent Company, the net profit for 2023 in the amount of PLN 787 136 thousand was partially earmarked for the payment of a dividend in the amount of PLN 590 198 thousand, the remaining amount was transferred to reserve capital.

The amount of dividend per share paid for 2023 was equal to PLN 5,02. The dividend was paid on the 20 June 2024.

Pursuant to the decision of the General Shareholders' Meeting of the Parent Company, the net profit for 2022 in the amount of PLN 761 564 thousand was partially earmarked for the payment of a dividend in the amount of PLN 570 484 thousand, the remaining amount was transferred to reserve capital.

The amount of dividend per share paid for 2022 was equal to PLN 4,86. The dividend was paid on the 21 July 2023.

25. Earnings per share

Basic earnings per share are calculated by dividing the net profit for the period attributable to shareholders of the Parent Company by the weighted average number of ordinary shares outstanding during the period. When calculating both basic and diluted earnings per share, the Group uses the amount of net profit attributable to shareholders of the Parent Company as the numerator, i.e., there is no dilutive effect influencing the amount of profit (loss). The calculation of basic and diluted earnings per share, together with a reconciliation of the weighted average diluted number of shares is presented below.

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Profit from continuing operations attributable to shareholders of the Parent Company	463 046	420 997
Weighted average number of ordinary shares	117 569 251	117 383 635
Weighted average number of shares including dilution effect	117 569 251	117 383 635
Basic net profit per share from continuing operations for the year attributable to shareholders of the Parent Company	3,94	3,59
Diluted net profit per share from continuing operations for the year attributable to shareholders of the Parent Company	3,94	3,59

26. Current income tax and deferred income tax

26.1 Current income tax

Income tax disclosed in the current period's profit and loss

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Income tax – current portion
Income tax for the reporting period	(102 853)	(71 071)
Income tax – deferred portion
Occurrence / reversal of temporary differences	1 315	(19 982)
Income tax disclosed in profit and loss	(101 538)	(91 053)

Reconciliation of the actual tax burden

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Profit before tax	564 584	512 050
Income tax based in the applicable tax rate of 19%	(107 271)	(97 290)
Difference resulting from application of tax rates applicable in other countries	489	539
Non-taxable revenue	620	(935)
Non-deductible expenses	(2 284)	(1 124)
Tax losses for the reporting period not included in deferred tax	-	-
Writing off tax losses activated in previous years	-	(26)
Other items affecting the tax burden amount	6 908	7 783
Income tax disclosed in profit or loss	(101 538)	(91 053)

On the basis of art 18d of Act on corporate income tax dated 15 February 1992 (Journal of Laws of 2023, item 2805, as amended). XTB S.A. benefited in the period from 1 January 2024 to 30 June 2024 from the tax burden for research and development in total amounted to PLN 1 207 thousand. In analogical period of 2023 benefits from the tax burden amounted to PLN 1 506 thousand.

The effective tax rate for the period from 1 January 2024 to 30 June 2024 was close to the statutory rate and amounted to 17,98%. In the analogical period of 2023, the rate was 17,78%.

26.2 Deferred income tax

26.2.1 Deferred income tax assets and deferred income tax provision

Change in the balance of deferred tax for the period from 1 January to 30 June 2024

(IN PLN'000)	AS AT 01.01.2024	PROFIT OR (LOSS)	AS AT 30.06.2024
Deferred income tax assets:
Cash and cash equivalents	-	75	75
Property, plant and equipment	63	26	89
Liabilities due to lease	2 885	(2 119)	766
Financial liabilities held for trading	13 347	7 819	21 166
Provisions for liabilities	979	(54)	925
Prepayments and deferred costs	6 096	(1 766)	4 329
Other liabilities	5 067	(1)	5 065
Tax losses of previous periods to be settled in future periods	7 109	(408)	6 701
Total deferred income tax assets	35 546	3 572	39 116

REPORT FOR THE 1 ST HALF OF 2024 XTB S.A. GROUP

(TRANSLATION OF A DOCUMENT ORIGINALLY ISSUED IN POLISH)

(IN PLN'000)	AS AT 01.01.2024	PROFIT OR (LOSS)	AS AT 30.06.2024
Deferred income tax provision:
Cash and cash equivalents	101	(84)	17
Financial assets at fair value through P&L	83 568	4 027	87 595
Other liabilities	1 141	(396)	745
Financial assets at amortised cost	593	723	1 316
Property, plant and equipment	2 788	(2 013)	775
Total deferred income tax provision	88 191	2 257	90 448
Deferred tax disclosed in profit or (loss)	-	1 315	-

(IN PLN'000)	AS AT 01.01.2024	INCLUDED IN EQUITY	AS AT 30.06.2024
Deferred income tax assets included directly in the equity:
Separate equity of branches	232	(62)	170
Total deferred income tax assets included directly in the equity	232	(62)	170

Change in the balance of deferred tax for the period from 1 January to 31 December 2023

(IN PLN'000)	AS AT 01.01.2023	PROFIT OR (LOSS)	AS AT 31.12.2023
Deferred income tax assets:
Cash and cash equivalents	70	(70)	-
Property, plant and equipment	451	(388)	63
Liabilities due to lease	-	2 885	2 885
Financial liabilities held for trading	13 805	(458)	13 347
Provisions for liabilities	549	430	979
Prepayments and deferred costs	4 994	1 102	6 096
Other liabilities	6 877	(1 810)	5 067
Tax losses of previous periods to be settled in future periods	7 619	(510)	7 109
Total deferred income tax assets	34 365	1 181	35 546

(IN PLN'000)	AS AT 01.01.2023	PROFIT OR (LOSS)	AS AT 31.12.2023
Deferred income tax provision:
Cash and cash equivalents	19	82	101
Financial assets at fair value through P&L	81 549	2 019	83 568
Other liabilities	638	503	1 141
Financial assets at amortised cost	1 853	(1 260)	593
Property, plant and equipment	335	2 453	2 788
Total deferred income tax provision	84 394	3 797	88 191
Deferred tax disclosed in profit or (loss)	-	(2 616)	-

(IN PLN'000)	AS AT 01.01.2023	INCLUDED IN EQUITY	AS AT 31.12.2023
Deferred income tax assets included directly in the equity:
Separate equity of branches	838	(606)	232
Total deferred income tax assets included directly in the equity	838	(606)	232

Change in the balance of deferred tax for the period from 1 January to 30 June 2023

(IN PLN'000)	AS AT 01.01.2023	PROFIT OR (LOSS)	AS AT 30.06.2023
Deferred income tax assets:
Cash and cash equivalents	70	(67)	3
Property, plant and equipment	451	(89)	362
Financial liabilities held for trading	13 805	(1 944)	11 861
Provisions for liabilities	549	241	790
Prepayments and deferred costs	4 994	8	5 002
Other liabilities	6 877	(1 707)	5 170
Tax losses of previous periods to be settled in future periods	7 619	(631)	6 988
Total deferred income tax assets	34 365	(4 189)	30 176

(IN PLN'000)	AS AT 01.01.2023	PROFIT OR (LOSS)	AS AT 30.06.2023
Deferred income tax provision:
Cash and cash equivalents	19	107	126
Financial assets at fair value through P&L	81 549	12 413	93 962
Other liabilities	638	3 571	4 209
Financial assets at amortised cost	1 853	(273)	1 580
Property, plant and equipment	335	(27)	308
Total deferred income tax provision	84 394	15 791	100 185
Deferred tax disclosed in profit or (loss)	-	(19 980)	-

(IN PLN'000)	AS AT 01.01.2023	INCLUDED IN EQUITY	AS AT 30.06.2023
Deferred income tax assets included directly in the equity:
Separate equity of branches	838	(426)	412
Total deferred income tax assets included directly in the equity	838	(426)	412

Data concerning the presentation of deferred income tax by country of origin and reconciliation of presentation in the statement of financial position as at 30 June 2024:

(IN PLN'000)	DATA ACCORDING TO THE NATURE OF ORIGIN		DATA PRESENTED IN THE STATEMENT OF FINANCIAL POSITION
	DEFERRED INCOME TAX ASSETS	DEFERRED INCOME TAX PROVISION	DEFERRED INCOME TAX ASSETS	DEFERRED INCOME TAX PROVISION
Poland	31 651	88 819	-	57 168
Czech Republic	101	17	84	-
Slovakia	165	-	165	-
Germany	2 263	498	2 263	498
France	2 927	-	2 927	-
Great Britain	1 961	-	1 961	-
Chile	48	305	-	257
Belize	-	979	-	979
Total	39 116	90 618	7 400	58 902

Data concerning the presentation of deferred income tax by country of origin and reconciliation of presentation in the statement of financial position as at 31 December 2023:

(IN PLN'000)	DATA ACCORDING TO THE NATURE OF ORIGIN		DATA PRESENTED IN THE STATEMENT OF FINANCIAL POSITION
	DEFERRED INCOME TAX ASSETS	DEFERRED INCOME TAX PROVISION	DEFERRED INCOME TAX ASSETS	DEFERRED INCOME TAX PROVISION
Poland	28 074	87 075	2 782	61 783
Czech Republic	86	8	78	-
Slovakia	75	93	-	18
Germany	2 120	100	2 120	100
France	3 050	-	3 050	-
Great Britain	2 042	-	2 042	-
Chile	99	322	-	223
Belize	-	825	-	825
Total	35 546	88 423	10 072	62 949

Data concerning the presentation of deferred income tax by country of origin and reconciliation of presentation in the statement of financial position as at 30 June 2023:

(IN PLN'000)	DATA ACCORDING TO THE NATURE OF ORIGIN		DATA PRESENTED IN THE STATEMENT OF FINANCIAL POSITION
	DEFERRED INCOME TAX ASSETS	DEFERRED INCOME TAX PROVISION	DEFERRED INCOME TAX ASSETS	DEFERRED INCOME TAX PROVISION
Poland	22 898	99 390	-	76 492
Czech Republic	110	25	85	-
Slovakia	85	101	-	16
Germany	2 194	-	2 194	-
France	3 275	-	3 275	-
Great Britain	1 524	-	1 524	-
Chile	90	370	-	280
Belize	-	711	-	711
Total	30 176	100 597	7 078	77 499

27. Related party transactions

27.1 Parent Company

As at 30 June 2024 XXZW Investment Group S.A. with its registered office in Luxembourg is the key shareholder of the Company, it holds 50,93% of shares and votes in the General Meeting as per Parent Company's best knowledge. XXZW Investment Group S.A. prepares half-year condensed consolidated financial statements.

Mr. Jakub Zabłocki is the ultimate Parent Company for the Company and XXZW Investment Group S.A.

27.2 Figures concerning related party transactions

As at 30 June 2024 Group has liabilities to Mr Jakub Zabłocki in the amount of PLN 56 thousand due to his investment account (as at 31 December 2023 PLN 74 thousand, as at 30 June 2023 PLN 18 thousand). In the period from 1 January to 30 June 2024 Group has noted profit from transactions with Mr Jakub Zabłocki in the amount PLN 9 thousand (in the analogical period of 2023 there was loss from transactions with Mr Jakub Zabłocki in the amount PLN 3 thousand). Moreover Mr Jakub Zabłocki is employed on the basis of work contract in subsidiary in Great Britain. In the period from 1 January to 30 June 2024 the paid gross salary and bonuses amounted to PLN 1 874 thousand and in the analogical period of 2023 amounted to PLN 2 165 thousand.

Mr Hubert Walentynowicz receives salary on the basis of work contract. In the period from 1 January to 30 June 2024 the paid gross salary and bonuses amounted to PLN 298 thousand and in the analogical period of 2023 amounted to PLN 317 thousand.

As at 30 June 2024 Group has liabilities to Mr Omar Arnaout in the amount of PLN 206 thousand due to his investment account. As at 31 December 2023 the Group has no liabilities to Mr Omar Arnaout due to his investment account. As at 30 June 2023 the Group has no liabilities to Mr Omar Arnauot due to his investment account.

As at 30 June 2024 Group has liabilities to Mr Filip Kaczmarzyk in the amount of PLN 166 thousand due to his investment account. As at 31 December 2023 the Group has liabilities to Mr Filip Kaczmarzyk in the amount of PLN 20 thousand due to his investment account. As at 30 June 2023 the Group has liabilities to Mr Filip Kaczmarzyk in the amount of PLN 19 thousand due to his investment account.

As at 30 June 2024 Group has no liabilities to Mr Paweł Szejko due to his investment account. As at 31 December 2023 Group has no liabilities to Mr Paweł Szejko due to his investment account. As at 30 June 2023 the Group has liabilities to Mr Paweł Szejko in the amount of PLN 2 thousand due to his investment account.

As at 30 June 2024 Group has liabilities to Mr Jakub Kubacki in the amount of PLN 37 thousand due to his investment account. As at 31 December 2023 the Group has liabilities to Mr Jakub Kubacki in the amount PLN 2 thousand due to his investment account. As at 30 June 2023 the Group has liabilities to Mr Jakub Kubacki in the amount PLN 6 thousand due to his investment account.

The table below presents the total number and nominal value of the Parent Company's shares held directly by the persons managing and supervising Group, as at the date of submitting this report:

NAME AND SURNAME	FUNCTION	NUMBER OF SHARES HELD	TOTAL NOMINAL VALUE OF SHARES (in PLN)
Omar Arnaout	Chairman of the Management Board	50 717	2 536
Filip Kaczmarzyk	Board Member	35 501	1 775
Paweł Szejko	Board Member	29 358	1 468
Jakub Kubacki	Board Member	20 995	1 050
Andrzej Przybylski	Board Member	7 329	366

During the reporting period and until the date of submission of this report, the following changes in the ownership of the Parent Company's shares by managing and supervising persons took place:

on the 25 April 2024 Omar Arnaout acquired jointly 20 456 shares of the Parent Company;
on the 25 April 2024 Filip Kaczmarzyk acquired jointly 14 319 shares of the Parent Company;
on the 25 April 2024 Paweł Szejko acquired jointly 10 228 shares of the Parent Company;
on the 25 April 2024 Jakub Kubacki acquired jointly 7 500 shares of the Parent Company;
on the 25 April 2024 Andrzej Przybylski acquired jointly 4 888 shares of the Parent Company.

At the end of the reporting period and as at the date of submitting this report, the supervising persons did not have any shares or rights to the Parent Company's shares.

27.3 Benefits to Management Board and Supervisory Board

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Benefits to the Management Board members	(3 621)	(3 268)
Benefits to the Supervisory Board members	(177)	(130)
Total benefits to the Management Board and Supervisory Board	(3 798)	(3 398)

These benefits include base salaries, bonuses, contributions to social security paid for by the employer and supplementary benefits (money bills, healthcare, holiday allowances).

Members of the Management Board of the Parent Company are included in the scheme of variable remuneration elements specified in note 21 of the financial statements.

27.4 Loans granted to the Management and Supervisory Board members

As at 30 June 2024, 31 December 2023 and 30 June 2023 there are no loans granted to the Management and Supervisory Board members. In the period from 1 January to 30 June 2024 and in the analogical period of 2023, the members of the Management Board and Supervisory Board also did not benefit from any loans granted by the Group.

28. Employment

Total employment in the Group as at 30 June 2024 was 1 154 people. As at 31 December 2023, the employment was 1 054 people. As at 30 June 2023, the employment was 986 people. The list does not include persons on maternity leave, parental leave and benefits (dismissals for more than 33 days).

29. Supplementary information and explanations to the cash flow statement

29.1 Other adjustments

The "other adjustments" item includes the following adjustments:

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Change in the balance of differences from the conversion of branches and subsidiaries	1 339	(3 702)
Foreign exchange differences on translation of movements in property, plant and equipment, and intangible assets	249	671
Change in other adjustments	1 588	(3 031)

Foreign exchange differences on translation of movements in tangible and intangible assets include the difference between the rates as at the opening balance and as at the closing balance adopted for valuation of the gross value of tangible and intangible assets in the Group's foreign entities and the difference between the rate applied to value amortization and depreciation cost of fixed assets and intangible assets in the Group's foreign entities and the rate of translation of amortization and depreciation amounts on such assets. This value results from the chart of movements in tangible and intangible assets.

29.2 Change in balance of other liabilities

The "Change in balance of other liabilities" item includes the following adjustments:

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Balance sheet change in other liabilities	34 553	560 836
Liabilities due to shareholders	-	(570 484)
Change in balance of other liabilities	34 553	(9 648)

29.3 Details of (Profit) Loss from investing activity

The "(Profit) Loss on investment activity" item includes the following adjustments:

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Loss on liquidation and sale of fixed assets	125	1 630
Profit from the liquidation and sale of fixed assets	(44)	(3)
Result of Bonds	(15 008)	(17 505)
(Profit) Loss on investment activity	(14 927)	(15 878)

30. Off-balance sheet items

30.1 Nominal value of financial instruments

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Index CFDs	3 466 971	5 030 892	4 482 605
Currency CFDs	2 992 769	2 809 502	2 677 954
Commodity CFDs	2 500 324	1 918 148	2 186 621
Stock and ETP CFDs	1 027 668	747 990	771 412
Bond CFDs	7 562	7 344	35 185
Total financial instruments	9 995 294	10 513 876	10 153 777

The nominal value of instruments presented in the chart above includes transactions with customers and brokers. As at 30 June 2024 transactions with brokers represent 7% of the total nominal value of instruments (as at 31 December 2023: 15% of the total nominal value of instruments, as at 30 June 2023: 5% of the total nominal value of instruments).

30.2 Customers' financial instruments

Presented below is a list of customers' instruments deposited in the accounts of the brokerage house:

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Listed stocks, ETP and rights to stocks registered in customers' securities accounts	9 501 532	6 147 388	4 883 502
Other securities registered in customers' securities accounts	207	207	207
Total customers' financial instruments	9 501 739	6 147 595	4 883 709

30.3 Transaction limits

The amount of unused transaction limits granted to related entities was as at 30 June 2024 PLN 13 785 thousand, as at 31 December 2023 was PLN 12 728 thousand and as at 30 June 2023 was PLN 13 206 thousand

31. Items regarding the compensation scheme

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
1. Contributions made to the compensation scheme
a) opening balance	13 986	10 569	10 569
- increases	1 841	3 417	1 659
b) closing balance	15 827	13 986	12 228
2. XTB's share in the profits from the compensation scheme	1 534	1 170	910

32. Capital management

The Group's principles of capital management are established in the "Capital management policy at XTB S.A.". The document is approved by the Parent Company's Supervisory Board.

The policy defines the basic concepts, objectives and rules which constitute the Parent Company's capital strategy. It specifies, in particular, long-term capital objectives, the current and preferred capital structure, contingency plans and capital planning principles. The policy is updated as appropriate so as to reflect the development in the Group and its business environment.

The objective of the capital management policy is to ensure balanced long-term growth for the shareholders and to maintain sufficient capital to enable the Group to operate in a prudent and efficient manner. This objective is attained by maintaining an appropriate capital base, taking into account the Group's risk profile and prudential regulations, as well as risk-based capital management in view of the operating goals.

Determination of capital-related goals is essential for equity management and serves as a basic reference in the context of capital planning, allocation and contingency plans. The Group establishes capital-related objectives which ensure a stable capital base, achievement of its capital strategy goals (in accordance with its general principles), and also match the Group's risk appetite. To establish its capital-related goals, the Group takes into consideration its strategic plans and expected growth of operations as well as external conditions, including the macroeconomic situation and other business environment factors. The capital-related goals are set for a horizon similar to that of the business strategy and are approved by the Management Board.

Capital planning is focused on an assessment of the Group's current and future capital requirements (both regulatory and internal), and on comparing them with the current and projected levels of available capital. The Group has prepared contingency plans to be launched in the event of a capital liquidity shortage, described in detail in the "Capital management policy at XTB S.A.".

As part of ICARAP, the Group assesses its internal capital in order to define the overall capital requirement to cover all significant risks in the Group's operations and evaluates its quality. The Group estimates internal capital necessary to cover identified significant risks in compliance with procedures adopted by the Group and taking into account stress test results.

The Parent Company is obligated to maintain the capitals (equity) to cover the higher of the following values:

capital requirements calculated in accordance with Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019 on prudential requirements for investment firms and amending Regulations (EU) No 1093/2010, (EU) No 575/2013, (EU) No 600/2014 and (EU) No 806/2014 (IFR)
internal capital estimated in accordance with the Regulation of the Minister of Development and Finance of 8 December 2021 on the assessment of internal capital and liquid assets, risk management system, supervisory audit and evaluation, as well as remuneration policy in a brokerage house and a small brokerage house.

The capital requirement calculated in accordance with the IFR regulation is the higher of:

fixed overheads requirement
permanent minimum initial capital requirement
K-factor capital requirement

At date of preparation of the financial statement the highest of the above values for the Parent Company is the K-factor capital requirement.

The Parent Company calculates own funds in accordance with Part Two of the European Parliament and of the Council (EU) 2019/2033 of 27 November 2019 on prudential requirements for investment firms and amending Regulations (EU) No 1093/2010, (EU) No 575 / 2013, (EU) No 600/2014 and (EU) No 806/2014 ("IFR").

The principles for calculation of own funds are established in the CRR and IFR Regulations, "Procedure for calculating capital adequacy ratios of XTB S.A." the Parent Company and are not regulated by IFRS.

The Group currently has only own funds of the best category - Tier I.

Prudential consolidation in accordance with IFR covers subsidiaries that are investment firms, financial institutions, ancillary services undertakings or tied agents. When applied to the Group, the Parent Company includes the following subsidiaries in prudential consolidation:

since 31st Nov 2015 XTB Limited (UK),
since 30th April 2017 XTB International,
since 31st July 2018 XTB Limited (CY),
since 31st July 2022 XTB MENA Limited,
since 31st August 2022 XTB Africa (PTY) Ltd,
since 31st December 2023 XTB S.C. Limited,
since 17th January 2024 PT Rajawali Kapital Berjangka.

The Group is not required to maintain capital buffers under the Act on Macroprudential Supervision of the Financial System and Crisis Management in the Financial System.

Key values in capital management:

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
The Group's own funds	1 109 825	912 482	913 772
Tier I Capital	1 109 825	912 482	913 772
Common Equity Tier I capital	1 109 825	912 482	913 772
Total capital requirement IFR	521 170	483 590	576 290
Total capital ratio IFR	212,9%	188,7%	158,6%
Minimal required total capital ratio including buffers (article 9 section1 letter c) of IFR)	100%	100%	100%

The mandatory capital adequacy was not breached in the periods covered by the condensed half-year condensed consolidated financial statements.

The table below presents data on the level of capitals and on the total capital requirement divided into requirements due to specific types of risks calculated in accordance with separate regulations together with average monthly values. Average monthly values were calculated as an estimation of the average values calculated based on statuses at the end of specific days.

(IN PLN'000)	AS AT 30.06.2024	AVERAGE MONTHLY VALUE IN THE PERIOD	AS AT 31.12.2023	AS AT 30.06.2023
1. Own funds	1 109 825	950 380	912 482	913 772
1.1. Base capital Tier I without deductions	1 122 449	967 018	925 510	925 511
1.2. Supplementary capital Tier I	-	-	-	-
1.3. Items decreasing share capitals	(12 624)	(16 638)	(13 028)	(11 739)
I. Own funds	1 109 825	950 380	912 482	913 772
1. Risk to Client, including:	13 141	12 613	11 995	11 268
1.1. K-AUM	-	-	-	-
1.2. K-CMH	10 546	10 257	9 935	9 599
1.3. K-ASA	2 595	2 356	2 060	1 669
1.4. K-COH	-	-	-	-
2. Risk to Market, including:	355 734	400 299	313 039	388 520
2.1. K-NPR	355 734	400 299	313 039	388 520
2.2. K-CMG	-	-	-	-
3. Risk to Firm, including:	152 295	169 052	158 556	176 502
3.1. K-TCD	149 649	166 337	155 731	173 567
3.2. K-DTF	2 646	2 715	2 825	2 935
3.3. K-CON	-	-	-	-
II. Total K-factor capital requirement (IFR)	521 170	581 964	483 590	576 290

The Parent Company calculates the requirement for fixed indirect costs. However, it is significantly lower than the capital requirement for the K-factor.

33. Risk management

The Group is exposed to a variety of risks connected with its current operations. The purpose of risk management is to make sure that the Group takes risk in a conscious and controlled manner. Risk management policies are formulated in order to identify and measure the risks taken, as well as to establish appropriate limits to mitigate such risk on a regular basis.

At the strategy level, the Management Board is responsible for establishing and monitoring the risk management policy. All risks are monitored and controlled with regard to profitability of the operations as well as the level of capital necessary to ensure safety of operations from the capital requirement perspective.

A Risk Management Committee composed of members of the Supervisory Board has been established in the Parent Company. The tasks of the Committee include the development of a document on risk appetite, giving opinions on the risk management strategy, supporting the Supervisory Board in supervising the implementation of the risk management strategy by the Management Board, verifying the remuneration policy and its implementation rules in terms of adjusting the remuneration system to the risk faced by the Management Board. exposed brokerage house, to its capital, liquidity, and the probability and timing of earning income.

The Risk Control Department supports the Management Board in shaping, reviewing and updating the ICARAP rules in the event of the emergence of new types of risk, significant changes in the strategy and action plans. This department also monitors suitability and effectiveness of the implemented risk management system, identifies, monitors and controls the risks of the Group's own investments, determines the total capital requirements and estimates internal capital.

The Risk Control Department is managed by the Member of the Management Board responsible for the supervision of the risk management system.

The Parent Company's Supervisory Board approves risk management system.

33.1 Fair value

Fair value is the price that would be received to sell an asset or paid to transfer a liability in a normal transaction between market participants at the measurement date.

33.1.1 Carrying amount and fair value

The fair value of cash and cash equivalents is estimated as being close to their carrying amount. The fair value of loans granted and other receivables, amounts due to clients and other liabilities is estimated as being close to their carrying amount in view of the short-term maturities of these balance sheet items.

33.1.2 Fair value hierarchy

The Group discloses fair value measurement of financial instruments carried at fair value, applying the following fair value hierarchy which reflects the significance of input data used to establish the fair value:

Level 1: quoted prices (unadjusted) in active markets for the assets or liabilities;
Level 2: input data other than quoted prices classified in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. based on prices). This category includes financial assets and liabilities measured using prices quoted in active markets for identical assets, prices quoted in active markets for identical assets considered less active or other valuation methods where all significant inputs originate directly or indirectly from the markets;
Level 3: input data for valuation of a given asset or liability is not based on observable market data (unobservable inputs).

(IN PLN'000)	30.06.2024
	LEVEL 1	LEVEL 2	LEVEL 3	TOTAL
Financial assets
Financial assets at fair value through P&L	509 921	538 795	-	1 048 716
Total financial assets	509 921	538 795	-	1 048 716
Financial liabilities
Financial liabilities held for trading	-	153 268	-	153 268
Total financial liabilities	-	153 268	-	153 268

(IN PLN'000)	31.12.2023
	LEVEL 1	LEVEL 2	LEVEL 3	TOTAL
Financial assets
Financial assets at fair value through P&L	417 952	485 303	-	903 255
Total financial assets	417 952	485 303	-	903 255
Financial liabilities
Financial liabilities held for trading	-	110 358	-	110 358
Total financial liabilities	-	110 358	-	110 358

(IN PLN'000)	30.06.2023
	LEVEL 1	LEVEL 2	LEVEL 3	TOTAL
Financial assets
Financial assets at fair value through P&L	392 011	539 398	-	931 409
Total financial assets	392 011	539 398	-	931 409
Financial liabilities
Financial liabilities held for trading	-	103 386	-	103 386
Total financial liabilities	-	103 386	-	103 386

In the periods covered by the condensed half-year condensed consolidated financial statements, there were no transfers of items between the levels of the fair value hierarchy.

The fair value of contracts for differences (CFDs) is determined based on the market prices of underlying instruments, derived from independent sources, i.e. from reliable liquidity suppliers and reputable news, adjusted for the spread specified by the Group. The valuation is performed using closing prices or the last bid and ask prices. CFDs are measured as the difference between the current price and the opening price, taking account of accrued commissions and swap points.

The impact of adjustments due to credit risk of the contractor, estimated by the Group, was insignificant from the point of view of the general estimation of derivative transactions concluded by the Group. Therefore, the Group does not recognise the impact of unobservable input data used for the estimation of derivative transactions as significant and, pursuant to IFRS 13.73, does not classify such transactions as level 3 of the fair value hierarchy.

33.2 Market risk

In the period covered by these half-year condensed consolidated financial statements, the Group entered into OTC contracts for differences (CFDs). The Group may also acquire securities and enter into forward contracts on its own account on regulated stock markets.

The following risks are specified, depending on the risk factor:

Currency risk connected with fluctuations of exchange rates
Interest rate risk
Commodity price risk
Equity investment price risk

The Group's key market risk management objective is to mitigate the impact of such risk on the profitability of its operations. The Group's practice in this area is consistent with the following principles.

As part of the internal procedures, the Group applies limits to mitigate market risk connected with maintaining open positions on financial instruments. These are, in particular: a maximum open position on a given instrument, currency exposure limits, maximum value of a single instruction. The Trading Department monitors open positions subject to limits on a current basis, and in case of excesses, enters into appropriate hedging transactions. The Risk Control Department reviews the limit usage on a regular basis, and controls the hedges entered into.

33.2.1 Currency risk

The Group enters into transactions principally in instruments bearing currency risk. Aside from transactions where the FX rate is an underlying instrument, the Group also offers instruments which price is denominated in foreign currencies. Also, the Group has assets in foreign currencies, i.e. the so-called currency positions. Currency positions include the brokerage's own funds denominated in foreign currencies held for the purpose of settling transactions in foreign markets and connected with foreign operations.

The carrying amount of the Group's assets and liabilities in foreign currencies as at the balance sheet date is presented below. The values for all base currencies are expressed in PLN'000:

Assets and liabilities denominated in foreign currencies as at 30 June 2024 (value in foreign currencies converted to PLN)

(IN PLN'000)	USD	EUR	GBP	CZK	HUF	RON	OTHER CURRENCIES	TOTAL	CARRYING AMOUNT
Assets
Cash and cash equivalents	942 920	1 517 865	49 284	257 935	10 358	68 158	54 850	2 901 370	4 018 589
Financial assets held for trading	206 554	148 052	9 088	40 547	3 426	8 296	21 410	437 373	1 048 716
Financial assets at amortised cost	15 341	4 653	231	1 269	59	448	1 627	23 628	46 366
Prepayments and deferred costs	574	1 190	127	68	-	9	39	2 007	17 487
Intangible assets	-	2	-	-	-	-	132	134	1 982
Property, plant and equipment	174	15 106	276	3 724	-	186	1 047	20 513	56 964
Income tax receivables	-	-	-	-	-	-	-	-	3
Deferred income tax assets	-	5 355	1 961	85	-	-	-	7 401	7 400
Total assets	1 165 563	1 692 223	60 967	303 628	13 843	77 097	79 105	3 392 426	5 197 507

Liabilities
Amounts due to customers	491 805	1 325 598	30 984	234 264	9 280	34 835	25 627	2 152 393	3 222 887
Financial liabilities held for trading	82 319	26 626	2 725	7 793	474	1 166	9 193	130 296	153 268
Lease liabilities	-	26 765	114	74	-	-	778	27 731	27 731
Other liabilities	20 902	43 547	3 509	4 227	101	1 446	2 209	75 941	120 633
Provisions for liabilities	-	3 279	-	-	-	-	172	3 451	3 749
Income tax liabilities	-	610	276	80	-	40	91	1 097	5 227
Deferred income tax provision	979	498	-	-	-	-	257	1 734	58 902
Total liabilities	596 005	1 426 923	37 608	246 438	9 855	37 487	38 327	2 392 643	3 592 397

Assets and liabilities denominated in foreign currencies as at 31 December 2023 (value in foreign currencies converted to PLN)

(IN PLN'000)	USD	EUR	GBP	CZK	HUF	RON	OTHER CURRENCIES	TOTAL	CARRYING AMOUNT
Assets
Cash and cash equivalents	781 505	1 115 241	35 721	181 169	8 122	27 362		36 779 2 185 899	3 676 756
Financial assets held for trading	117 685	139 679	7 908	39 728	2 494	7 310	17 065	331 869	903 255
Financial assets at amortised cost	5 638	5 434	208	933	15	322	1 397	13 947	31 407
Prepayments and deferred costs	628	506	355	102	-	6	14	1 611	15 486
Intangible assets	-	2	-	-	-	-	1	3	1 167
Property, plant and equipment	548	13 931	767	4 093	-	181	1 380	20 900	50 386
Income tax receivables	-	129	-	-	-	-	-	129	129
Deferred income tax assets	-	5 170	2 042	78	-	-	-	7 290	10 072
Total assets	906 004	1 280 092	47 001	226 103	10 631	35 181		56 636 2 561 648	4 688 658

Liabilities
Amounts due to customers	435 722	1 038 727	20 342	185 441	8 249	29 724		20 235 1 738 440	2 638 122
Financial liabilities held for trading	51 774	22 594	1 881	4 807	546	895	7 473	89 970	110 358
Lease liabilities
Other liabilities	-	24 814	772	2 494	-	-	1 523	29 603	29 603
Provisions for liabilities	10 035	22 389	4 223	2 635	6	1 038	2 527	42 853	86 080
Income tax liabilities	-	3 434	-	-	-	-	161	3 595	3 892
Deferred income tax provision	825	117	-	-	-	-	223	1 165	62 949
Total liabilities	498 356	1 112 228	27 367	195 457	8 801	31 672		32 324 1 906 205	2 953 995

Assets and liabilities denominated in foreign currencies as at 30 June 2023 (value in foreign currencies converted to PLN)

(IN PLN'000)	USD	EUR	GBP	CZK	HUF	RON	OTHER CURRENCIES	TOTAL	CARRYING AMOUNT
Assets
Cash and cash equivalents	621 247	1 019 877	33 644	198 336	10 471	24 850		36 556 1 944 981	3 612 243
Financial assets held for trading	113 415	163 892	7 812	59 265	3 113	10 189	12 253	369 939	931 409
Financial assets at amortised cost	6 649	13 725	215	1 465	29	183	1 670	23 936	42 753
Prepayments and deferred costs	730	1 176	192	68	-	92	11	2 269	16 353
Intangible assets	-	3	-	1	-	-	1	5	1 345
Property, plant and equipment	961	13 805	135	4 702	-	79	2 062	21 744	50 709
Income tax receivables	-	62	-	-	-	-	69	131	1 052
Deferred income tax assets	-	5 469	1 524	85	-	-	-	7 078	7 078
Total assets	743 002	1 218 009	43 522	263 922	13 613	35 393		52 622 2 370 083	4 662 942

Liabilities
Amounts due to customers	357 890	961 702	21 872	223 686	10 562	31 023		25 155 1 631 890	2 451 290
Financial liabilities held for trading	50 983	19 234	2 261	5 188	1 333	630	6 750	86 379	103 386
Lease liabilities	-	26 783	-	2 817	-	-	2 625	32 225	32 225
Other liabilities	12 573	14 990	3 735	5 166	18	1 108	2 179	39 769	640 541
Provisions for liabilities	-	3 790	-	19	-	-	181	3 990	4 261
Income tax liabilities	-	422	-	99	-	51	288	860	860
Deferred income tax provision	711	17	-	-	-	-	280	1 008	77 499
Total liabilities	422 157	1 026 938	27 868	236 975	11 913	32 812		37 458 1 796 121	3 310 062

A change in exchange rates, in particular, the PLN exchange rate, affects the balance sheet valuation of the Group's financial instruments and the result on translation of foreign currency balances of other balance sheet items. Sensitivity to exchange rate fluctuations was calculated with the assumption that all foreign currency rates change by ±5% to PLN. The carrying amount of financial instruments was revalued.

The sensitivity of the Group's equity and profit before tax to a 5% increase or decrease of the PLN exchange rate is presented below:

	SIX-MONTH PERIOD ENDED 30.06.2024		SIX-MONTH PERIOD ENDED 30.06.2023
(IN PLN'000)	INCREASE IN EXCHANGE RATES BY 5%	DECREASE IN EXCHANGE RATES BY 5%	INCREASE IN EXCHANGE RATES BY 5%	DECREASE IN EXCHANGE RATES BY 5%
Income (expenses) of the period	55 398	(55 398)	27 095	(27 095)
Equity, of which:	4 556	(4 556)	3 507	(3 507)
Foreign exchange differences on translation	4 556	(4 556)	3 507	(3 507)

The sensitivity of equity is connected with foreign exchange differences in the translation of value in functional currencies of the foreign operations.

33.2.2 Interest rate risk

Interest rate risk is the risk of exposure of the current and future financial result and equity of the Group to the adverse impact of exchange rate fluctuations. Such risk may result from the contracts entered into by the Group, where receivables or liabilities are dependent upon exchange rates as well as from holding assets or liabilities dependent on exchange rates.

The basic interest rate risk for the Group is the mismatch of interest rates on bank accounts and bank deposits in which the Group invests its own cash, the mismatch in the interest rates the Group pays its customers for holding free funds in their cash accounts, and the impact of interest rate volatility on the valuation of the Group's treasury, government-guaranteed bonds and corporation bonds.

In addition, the source of the Group's profit variability associated with the level of market interest rates, are amounts paid and received in connection with the occurrence of the difference in interest rates for different currencies (swap points) as well as potential debt instruments.

Since the Group maintains a low duration of assets and liabilities and minimises the duration gap, sensitivity of the market value of assets and liabilities to calculations of market interest rates is very low. However, due to the significant involvement of XTB in Treasury bonds and government-guaranteed bonds, the interest rate risk was considered significant in the Group's operations.

Sensitivity analysis of financial assets and liabilities where cash flows are exposed to interest rate risk

The structure of financial assets and liabilities where cash flows are exposed to interest rate risk is as follows:

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Financial assets
Cash – in current bank accounts	4 018 589	3 676 756	3 612 243
Debt instruments	430 828	401 265	379 882
Total financial assets	4 449 417	4 078 021	3 992 125
Financial liabilities
Amounts due to clients	1 948 761	1 505 702	-
Other liabilities	27 731	29 603	32 225
Total financial liabilities	1 976 492	1 535 305	32 225

Impact of a change in interest rates by 50 base points (BP) on profit before tax is presented below. The analysis below relies on the assumption that other variables, in particular exchange rates, will remain constant. The analysis was carried out basis of average cash balances during the periods covered by these half-year condensed consolidated financial statements.

(IN PLN'000)	SIX-MONTH PERIOD ENDED		SIX-MONTH PERIOD ENDED
	30.06.2024		30.06.2023
	INCREASE	DECREASE	INCREASE	DECREASE
	BY 50 PB	BY 50 PB	BY 50 PB	BY 50 PB
Profit/(loss) before tax	5 017	(5 017)	16 249	(16 249)
Short-term deposits	-	-	2 500	(2 500)

Sensitivity analysis of financial assets and liabilities whose fair value is exposed to interest rate risk

In the period covered by these half-year condensed consolidated financial statements and in the comparative period, the Group hold financial assets which fair value would be exposed to the risk of changes in interest rates as a Treasury bonds, Guaranteed Treasury Bonds and corporate bonds. Sensitivity analysis exposed to interest rate risk by 50 base points (BP) shift of yield curves- on profit before tax is presented below.

(IN PLN'000)	SIX-MONTH PERIOD ENDED		SIX-MONTH PERIOD ENDED
	30.06.2024		30.06.2023
	INCREASE	DECREASE	INCREASE	DECREASE
	BY 50 PB	BY 50 PB	BY 50 PB	BY 50 PB
Profit/(loss) before tax	(2 794)	2 875	(2 230)	2 282

33.2.3 Other price risk

Other price risk is exposure of the Group's financial position to unfavorable changes in the prices of commodities, equity investments (equity, indices) and debt instruments (in a scope not resulting from interest rates).

The carrying amount of financial instruments exposed to other price risk is presented below:

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Financial assets at fair value through P&L
Commodity
Precious metals	38 298	20 476	33 148
Base metals	2 217	1 868	1 892
Other	91 272	98 843	103 370
Total commodity	131 787	121 187	138 410
Equity instruments
Stocks and ETP	182 410	85 118	84 229
Indicies	137 986	171 713	195 264
Total equity instruments	320 396	256 831	279 493
Debt instruments	175	119	2 841
Total financial assets at fair value through P&L	452 358	378 137	420 744
Financial liabilities held for trading
Commodity
Precious metals	2 766	1 857	2 148
Base metals	167	63	94
Other	6 965	4 522	5 925
Total commodity	9 898	6 442	8 167
Equity instruments
Stocks and ETP	38 501	26 002	28 406
Indicies	14 637	12 180	10 889
Total equity instruments	53 138	38 182	39 295
Debt instruments	21	51	270
Total financial liabilities held for trading	63 057	44 675	47 732

The Group's sensitivity to fluctuations in the prices of specific commodities and equity investments by ±5 per cent with regard to equity and profit before tax is presented below.

	SIX-MONTH PERIOD ENDED 30.06.2024		SIX-MONTH PERIOD ENDED 30.06.2023
(IN PLN'000)	INCREASE BY 5%	DECREASE BY 5%	INCREASE BY 5%	DECREASE BY 5%
Income/(expenses) for the period
Commodity
Precious metals	(11 258)	11 258	(11 829)	11 829
Base metals	(1 278)	1 278	(837)	837
Other	(7 300)	7 300	(11 139)	11 139
Total commodity	(19 836) 19 836		(23 805)	23 805
Equity instruments
Stocks and ETPs	4 257	(4 257)	89	(89)
Indicies	56 621	(56 621)	128 142	(128 142)
Total equity instruments	60 878	(60 878)	128 231	(128 231)
Debt instruments	(363) 363		(287)	287
Total income/(expenses) for the period	40 679	(40 679)	104 139	(104 139)

33.3 Liquidity risk

For the Group, liquidity risk is the risk of losing its payment liquidity, i.e. the risk of losing capacity to finance its assets and to perform its obligations in a timely manner in the course of normal operations or in other predictable circumstances with no risk of loss. In its liquidity analysis, the Group takes into consideration current possibility of generation of liquid assets, future needs, alternative scenarios and payment liquidity contingency plans.

The objective of liquidity management in XTB is to maintain the amount of cash on the appropriate bank accounts that will cover all the operations necessary to be carried on such accounts. For this purpose, the Group has implemented, among others, limits for the concentration of cash in banks by forming one banking group in order to limit excessive liquidity concentration in related parties. In order to manage liquidity in relation to certain bank accounts associated with the operations of financial instruments, the Group uses the liquidity model of which the essence is to determine the safe area of the state of free cash flow that does not require corrective action. Where the upper limit is achieved, the Group makes a transfer to the appropriate current account corresponding to the surplus above the optimum level. Similarly, if the cash in the account falls to the lower limit, the Group makes a transfer of funds from the current account to the appropriate account in order to bring cash to the optimum level.

The procedure also provides for the possibility of deviating from its application, and such procedure requires the consent of at least two members of the Parent Company's Management. Information on deviations is transmitted to the Risk Control Department of the Parent Company.

The Parent Company has also implemented liquidity contingency plans, which were not used in the period covered by the financial statements and in the comparative period, due to the fact that the amount of the most liquid assets (own cash and cash equivalents and Treasury bonds and bonds guaranteed by the Treasury) greatly exceeds the amount of liabilities.

As part of ongoing business and the tasks related to liquidity risk management, the managers of appropriate organisational units of the Parent Company monitor the balance of funds deposited in the account in the context of planned liquidity needs related to the Parent Company's operating activities. In the ICARAP process, the Parent Company, among other things, identifies factors relevant to liquidity and funding risks and assesses the adequacy of the level of liquid assets relative to the estimated level to ensure coverage of both current and future as well as potential extreme liquidity needs. Supervision and control activities over the balance of cash accounts are also carried out by the Risk Control Department on a daily basis.

In accordance with the IFR regulation, from 26 June 2021, the Parent Company maintains an amount of liquid assets equivalent to at least one third of the requirement for fixed indirect costs. The Parent Company's liquid assets for the purposes of IFR include, inter alia, unencumbered own funds deposited in bank accounts and Treasury bonds or bonds guaranteed by the Treasury denominated in PLN. As of the date of these financial statements, the Parent Company had a much higher level of liquid assets than required by the IFR regulation.

The contractual payment periods of financial assets and liabilities are presented below. The marginal and cumulative contractual liquidity gap, calculated as the difference between total assets and total liabilities for each maturity bucket, is presented for specific payment periods.

Contractual payment periods of financial assets and liabilities as at 30 June 2024

(IN PLN'000)	CARRYING AMOUNT	CONTRACTUAL CASH FLOWS	UP TO 3 MONTHS	3 MONTHS TO 1 YEAR	1 – 5 YEARS	OVER 5 YEARS	WITH NO SPECIFIED MATURITY
Financial assets
Cash and cash equivalents	4 018 589	4 018 589	4 018 589	-	-	-	-
Financial assets at fair value through P&L
Listed stocks and ETPs	99 133	99 133	99 133	-	-	-	-
Bonds	430 827	430 827	430 827	-	-	-	-
CFDs	518 756	518 756	518 756	-	-	-	-
Total financial assets at fair value through P&L	1 048 716	1 048 716	1 048 716	-	-	-	-
Financial assets at amortised cost	46 366	46 366	25 869	-	4 798	-	15 699
Total financial assets	5 113 671	5 113 671	5 093 174	-	4 798	-	15 699
Financial liabilities
Amounts due to clients	3 222 887	3 222 887	3 222 887	-	-	-	-
Financial liabilities held for trading
CFDs	153 268	153 268	153 268	-	-	-	-
Total financial liabilities held for trading	153 268	153 268	153 268	-	-	-	-
Liabilities due to lease	27 731	27 731	2 145	6 409	16 695	2 482	-
Other liabilities	120 633	120 633	99 721	13 290	-	-	7 622
Total financial liabilities	3 524 519	3 524 519	3 478 021	19 699	16 695	2 482	7 622
Contractual liquidity gap in maturities (payment dates) Contractual cumulative liquidity gap			1 615 153 1 615 153	(19 699) 1 595 454	(11 897) 1 583 557	(2 482) 1 581 075	8 077 1 589 152

The Group does not expect the cash flows presented in the maturity analysis to occur significantly earlier or in significantly different amounts.

Contractual payment periods of financial assets and liabilities as at 31 December 2023

(IN PLN'000)	CARRYING AMOUNT	CONTRACTUAL CASH FLOWS	UP TO 3 MONTHS	3 MONTHS TO 1 YEAR	1 – 5 YEARS	OVER 5 YEARS	WITH NO SPECIFIED MATURITY
Financial assets
Cash and cash equivalents	3 676 756	3 676 756	3 676 756	-	-	-	-
Financial assets at fair value through P&L
Listed stocks and ETPs	16 687	16 687	16 687	-	-	-	-
Bonds	401 265	401 265	401 265	-	-	-	-
CFDs	485 303	485 303	485 303	-	-	-	-
Total financial assets at fair value through P&L	903 255	903 255	903 255	-	-	-	-
Financial assets at amortised cost	31 407	31 407	12 192	-	5 053	-	14 162
Total financial assets	4 611 418	4 611 418	4 592 203	-	5 053	-	14 162
Financial liabilities
Amounts due to clients	2 638 122	2 638 122	2 638 122	-	-	-	-
Financial liabilities held for trading
CFDs	110 358	110 358	110 358	-	-	-	-
Total financial liabilities held for trading	110 358	110 358	110 358	-	-	-	-
Liabilities due to lease	29 603	29 603	2 680	9 170	17 653	100	-
Other liabilities	86 080	86 080	51 518	24 765	-	-	9 797
Total financial liabilities	2 864 163	2 864 163	2 802 678	33 935	17 653	100	9 797
Contractual liquidity gap in maturities (payment dates) Contractual cumulative liquidity gap			1 789 525 1 789 525	(33 935) 1 755 590	(12 600) 1 742 990	(100) 1 742 890	4 365 1 747 255

The Group does not expect the cash flows presented in the maturity analysis to occur significantly earlier or in significantly different amounts.

Contractual payment periods of financial assets and liabilities as at 30 June 2023

(IN PLN'000)	CARRYING AMOUNT	CONTRACTUAL CASH FLOWS	UP TO 3 MONTHS	3 MONTHS TO 1 YEAR	1 – 5 YEARS	OVER 5 YEARS	WITH NO SPECIFIED MATURITY
Financial assets
Cash and cash equivalents	3 612 243	3 612 243	3 612 243	-	-	-	-
Financial assets at fair value through P&L
Listed stocks and ETPs	12 128	12 128	12 128	-	-	-	-
Bonds	379 882	379 882	379 882
CFDs	539 399	539 399	539 399	-	-	-	-
Total financial assets at fair value through P&L	931 409	931 409	931 409	-	-	-	-
Financial assets at amortised cost	42 753	42 753	23 591	-	5 193	-	13 969
Total financial assets	4 586 405	4 586 405	4 567 243	-	5 193	-	13 969
Financial liabilities
Amounts due to clients	2 451 290	2 451 290	2 451 290	-	-	-	-
Financial liabilities held for trading
CFDs	103 386	103 386	103 386	-	-	-	-
Total financial liabilities held for trading	103 386	103 386	103 386	-	-	-	-
Liabilities due to lease	32 225	32 225	1 822	6 893	19 656	3 854	-
Other liabilities	640 541	640 541	601 526	27 420	-	-	11 595
Total financial liabilities	3 227 442	3 227 442	3 158 024	34 313	19 656	3 854	11 595
Contractual liquidity gap in maturities (payment dates) Contractual cumulative liquidity gap			1 409 219 1 409 219	(34 313) 1 374 906	(14 463) 1 360 443	(3 854) 1 356 589	2 374 1 358 963

The Group does not expect the cash flows presented in the maturity analysis to occur significantly earlier or in significantly different amounts.

33.4 Credit risk

The chart below shows the carrying amounts of financial assets corresponding to the Group's exposure to credit risk:

		30.06.2024		31.12.2023	30.06.2023
(IN PLN'000)	CARRYING AMOUNT	MAXIMUM EXPOSURE TO CREDIT RISK	CARRYING AMOUNT	MAXIMUM EXPOSURE TO CREDIT RISK	CARRYING AMOUNT	MAXIMUM EXPOSURE TO CREDIT RISK
Financial assets
Cash and cash equivalents	4 018 589	4 018 589	3 676 756	3 676 756	3 612 243	3 612 243
Financial assets at fair value through P&L *	1 048 716	15 024	903 255	24 672	931 409	12 874
Financial assets at amortised cost	46 366	46 366	31 407	31 407	42 753	42 753
Total financial assets	5 113 671	4 079 979	4 611 418	3 732 835	4 586 405	3 667 870

* As at 30 June 2024 the maximum exposure to credit risk for financial assets held for trading, not including the collateral received, was PLN 466 527 thousand (as at 31 December 2023: PLN 444 180 thousand, as at 30 June 2023: PLN 496 890 thousand). This exposure was collateralized with clients' cash, which, as at 30 June 2024, covered the amount of PLN 451 503 thousand (as at 31 December 2023: PLN 419 508 thousand, as at 30 June 2023: PLN 484 017 thousand). Exposures to credit risk connected with transactions with brokers as well as exposures to the Warsaw Stock Exchange were not collateralized.

The credit quality of the Group's financial assets is assessed based on external credit quality assessments, risk weights assigned based on the CRR, taking account of the mechanisms used to mitigate credit risk, the number of days past due, and the probability of counterparty insolvency.

The Group's assets fall within the following credit rating brackets:

Fitch Ratings from F1+ to B
Standard & Poor's Ratings Services from A-1 to B
Moody's from P-1 to N/A

Cash and cash equivalents

Credit risk connected with cash and cash equivalents is related to the fact that own cash and clients' cash is held in bank accounts. Credit risk involving cash is mitigated by selecting banks with a high credit rating granted by international rating agencies and through diversification of banks with which accounts are opened. As at 30 June 2024, the Group had deposit accounts in 60 banks and institutions (as at 31 December 2023: in 54 banks and institutions, as at 30 June 2023: 52 banks and institutions). The ten largest exposures are presented in the table below (numbering of banks and institutions set uniformly for the reporting and comparative period and the counterparty credit risk concentration table):

ENTITY	30.06.2024	ENTITY	31.12.2023		30.06.2023
	(IN PLN'000)		(IN PLN'000)	ENTITY	(IN PLN'000)
Bank 1	1 653 381	Bank 1	1 664 850	Bank 2	1 158 454
Bank 2	1 448 829	Bank 2	1 227 809	Bank 9	504 290
Institution 1	128 146	Institution 1	120 562	Bank 7	329 397
Institution 2	98 219	Bank 7	92 926	Bank 4	302 915
Institution 3	59 921	Institution 2	91 778	Bank 10	200 846
Bank 4	56 473	Bank 4	42 060	Bank 1	200 631
Bank 5	51 574	Bank 6	36 840	Bank 5	127 627
Bank 6	50 796	Bank 12	31 112	Bank 11	113 706
Bank 7	48 502	Bank 8	29 106	Institution 1	97 708
Institution 4	43 606	Institution 3	26 923	Bank 3	88 583
Other	379 142	Other	312 790	Other	488 086
Total	4 018 589	Total	3 676 756	Total	3 612 243

The table below presents a short-term assessment of the credit quality of the Group's cash and cash equivalents according to credit quality steps determined based on external credit quality assessments (where step 1 means the best credit quality and step 6 – the worst) and the risk weights assigned based on the CRR. Long-term assessment of the credit quality were used in case of exposures without short-term assessment of the credit quality or maturity longer than 3 months.

CREDIT QUALITY STEPS	CARRYING AMOUNT (IN PLN'000)
	30.06.2024	31.12.2023	30.06.2023
Cash and cash equivalent
Step 1	3 488 131	2 677 410	2 423 270
Step 2	64 836	61 905	76 815
Step 3	464 231	936 108	1 110 740
Step 4	1 391	1 333	1 418
Total	4 018 589	3 676 756	3 612 243

Financial assets at fair value through P&L

Financial assets at fair value through P&L result from transactions in financial instruments entered into with the Group's customers and the related hedging transactions.

Credit risk involving financial assets at fair value through P&L is connected with the risk of customer or counterparty insolvency. With regard to OTC transactions with customers, the Group's policy is to mitigate the counterparty credit risk through the socalled "stop out" mechanism. Customer funds deposited in the brokerage serve as a security. If a customer's current balance is 50 per cent or less of the security paid in and blocked by the transaction system, the position that generates the highest losses is automatically closed at the current market price. The initial margin amount is established depending on the type of financial instrument, customer account, account currency and the balance of the cash account in the transaction system, as a percent of the transaction's nominal value. A detailed mechanism is set forth in the rules binding on the customers. In addition, in order to mitigate counterparty credit risk, the Group includes special clauses in agreements with selected customers, in particular, requirements regarding minimum balances in cash accounts.

Due to the mechanisms in place, used to mitigate credit risk, the credit quality of financial assets at fair value through P&L is high and does not show significant diversity.

The Group's top 10 exposures to counterparty credit risk taking into account collateral (net exposure) are presented in the table below (numbering of counterparties fixed uniformly for the reporting and comparative period and cash concentration table):

ENTITY	30.06.2024 NET EXPOSURE (IN PLN'000)	ENTITY	31.12.2023 NET EXPOSURE (IN PLN'000)	ENTITY	30.06.2023 NET EXPOSURE (IN PLN'000)
Institution 1		5 943 Institution 1	10 087	Institution 1	7 329
Entity 1		2 038 Institution 4	6 567	Institution 8	831
Entity 2		1 889 Institution 6	1 788	Institution 4	822
Institution 4		921 Entity 2	1 669	Institution 6	565
Institution 6		784 Entity 6	1 421	Institution 7	475
Institution 7		537 Entity 1	666	Entity 10	461
Institution 3		363 Institution 7	491	Institution 3	383
Entity 3		249 Entity 7	128	Entity 11	155
Entity 4		113 Entity 8	80	Entity 12	88
Entity 5		108 Entity 9	66	Entity 13	85
Total	12 945 Total		22 963	Total	11 194

Other receivables

Other receivables do not show a significant concentration, and they arose in the normal course of the Group's business. Nonoverdue other receivables are collected on a regular basis and, from the perspective of credit quality, they do not pose a material risk to the Group.

34. Post balance sheet events

On 12 July 2024, the Spanish National Securities Market Commission ('CMNV') issued the interpretative criteria ('Q&A') for its decision of 11 July 2023 on product intervention concerning financial contracts for difference and other leveraged products in the Spanish market. The Spanish supervisory authority has implemented restrictions on the marketing, distribution and sales activities of MiFID II-regulated instruments and services provided to retail clients in Spain. The decision regulates bans and restrictions on CFDs, including in particular marketing activities.

On 17 July 2024, there was share capital increase in the subsidiary XTB S.C. Limited in the amount USD 250 thousand (around PLN 977 thousand), maintaining the current share proportion.

On 25 July 2024 the subsidiary XTB Financial Consultation L.L.C. with seat in the United Arab Emirates has been registered in the local register of entrepreneurs. The Parent Company has acquired 100% of the shares in the subsidiary. On 26 July 2024, the shares were paid up. The contributed capital amounted to AED 13 thousand (around PLN 13 thousand). The company will provide brokerage services - financial advice.

HALF-YEAR CONDENSED STANDALONE FINANCIAL STATEMENTS

HALF-YEAR CONDENSED STANDALONE COMPREHENSIVE INCOME STATEMENT

(IN PLN'000)		THREE-MONTH PERIOD ENDED		SIX-MONTH PERIOD ENDED
		30.06.2024	30.06.2023	30.06.2024	30.06.2023
Result of operations on financial instruments	6.1	325 153	261 765	827 389	757 361
Net interest income on clients cash, including:		14 905	5 889	28 354	11 835
- Interest income from clients cash		25 571	5 889	47 249	11 835
- Interest expense paid to clients		(10 666)	-	(18 895)	-
Income from fees and charges	6.2	2 951	2 679	5 095	5 222
Other income		49	34	170	45
Total operating income	6	343 058	270 367	861 008	774 463
Salaries and employee benefits	7	(61 771)	(48 618)	(121 576)	(97 955)
Marketing	8	(56 230)	(42 429)	(117 758)	(109 405)
Other external services	9	(26 643)	(21 444)	(50 861)	(42 634)
Commission expenses	10	(14 730)	(8 375)	(29 044)	(17 803)
Amortisation and depreciation	16,17	(4 205)	(3 457)	(8 205)	(6 665)
Taxes and fees		(4 172)	(2 811)	(7 751)	(5 544)
Costs of maintenance and lease of buildings		(1 445)	(1 331)	(3 344)	(2 790)
Other costs		(802)	(1 999)	(1 154)	(2 926)
Total operating expenses		(169 998)	(130 464)	(339 693)	(285 722)
Profit on operating activities		173 060	139 903	521 315	488 741
Impairment of investments in subsidiaries		-	-	-	(125)
Finance income, including:	11	20 006	20 269	37 724	41 514
- interest income on financial instruments at	11	6 327	12 709	15 744	24 003
amortized cost
Finance costs	11	(227)	(10 470)	(474)	(16 687)
Profit before tax		192 839	149 702	558 565	513 443
Income tax	26	(35 415)	(26 699)	(101 058)	(90 617)
Net profit		157 424	123 003	457 507	422 826
Other comprehensive income		1 066	(1 024)	212	(1 018)
Items which will be reclassified to profit (loss) after meeting specific conditions		1 085	(1 418)	150	(1 437)
Currency translation differences:		1 085	(1 418)	150	(1 437)
- positions that will be reclassified to profit on valuation of foreign companies		982	657	474	770
- positions that will be reclassified to profit on		103	(2 075)	(324)	(2 207)
valuation of separated equity Deferred income tax		(19)	394	62	419
Total comprehensive income		158 490	121 979	457 719	421 808

Earnings per share:
- basic profit per year attributable to shareholders of the Company (in PLN)	25	1,34	1,05	3,89	3,60
- basic profit from continued operations per year attributable to shareholders of the Company (in PLN)	25	1,34	1,05	3,89	3,60
- diluted profit of the year attributable to shareholders of the Company (in PLN)	25	1,34	1,05	3,89	3,60
- diluted profit from continued operations of the year attributable to shareholders of the Company (in PLN)	25	1,34	1,05	3,89	3,60

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

HALF-YEAR CONDENSED STANDALONE STATEMENT OF FINANCIAL POSITION

(IN PLN'000)	NOTE	30.06.2024	31.12.2023	30.06.2023
ASSETS
Cash and cash equivalents	12	3 668 219	3 414 342	3 375 262
Financial assets at fair value through P&L	13	986 622	852 787	878 449
Investments in subsidiaries	14	58 090	49 429	49 227
Financial assets at amortised cost	15	174 190	110 347	83 574
Prepayments and deferred costs		16 735	14 454	15 343
Intangible assets	16	912	1 086	1 251
Property, plant and equipment	17	55 447	47 563	47 316
Income tax receivables		-	129	946
Deferred income tax assets	26	5 439	8 030	5 554
Total assets		4 965 654	4 498 167	4 456 922

EQUITY AND LIABILITIES

Liabilities
Amounts due to customers	18	3 062 647	2 500 414	2 293 571
Financial liabilities held for trading	19	99 217	68 017	59 471
Liabilities due to lease	20	26 839	27 201	29 383
Other liabilities	21	119 474	86 331	643 746
Provisions for liabilities	22	3 577	3 732	4 080
Income tax liabilities	26	4 799 57 666	22 641 61 901	476 76 508
Deferred income tax provision		3 374 219	2 770 237	3 107 235
Total liabilities
Equity
Share capital	23	5 878	5 878	5 869
Supplementary capital	23	71 608	71 608	71 608
Other reserves	23	1 055 950	863 028	848 497
Foreign exchange differences on translation	23	492	280	887
Retained earnings		457 507	787 136	422 826
Total equity		1 591 435	1 727 930	1 349 687

Total equity and liabilities		4 965 654	4 498 167	4 456 922

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

HALF-YEAR CONDENSED STANDALONE STATEMENT OF CHANGES IN EQUITY

Half-year condensed standalone statement of changes in equity for the period from 1 January 2024 to 30 June 2024

(IN PLN'000)	SHARE CAPITAL	SUPPLEMENTARY CAPITAL	OTHER RESERVES	FOREIGN EXCHANGE DIFFERENCES ON TRANSLATION OF FOREIGN OPERATIONS AND SEPARATE FUNDS	RETAINED EARNINGS	TOTAL EQUITY
NOTE	23	23	23, 24	23	24
As at 1 January 2024	5 878	71 608	863 028	280	787 136	1 727 930
Total comprehensive income for the financial period
Net profit	-	-	-	-	457 507	457 507
Other comprehensive income	-	-	-	212	-	212
Total comprehensive income for the financial period	-	-	-	212	457 507	457 719
Transactions with Company's owners recognized directly in equity
Appropriation of profit/offset of loss
- dividend payment	-	-	-	-	(590 198)	(590 198)
- transfer to other reserves	-	-	196 938	-	(196 938)	-
Inclusion of share based incentive scheme	-	-	3 734	-	-	3 734
Purchase of own shares	-	-	(7 750)	-	-	(7 750)
Increase (decrease) in equity	-	-	192 922	212	(329 629)	(136 495)
As at 30 June 2024	5 878	71 608	1 055 950	492	457 507	1 591 435

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

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

(IN PLN'000)	SHARE CAPITAL	SUPPLEMENTARY CAPITAL	OTHER RESERVES	FOREIGN EXCHANGE DIFFERENCES ON TRANSLATION OF FOREIGN OPERATIONS AND SEPARATE FUNDS	RETAINED EARNINGS	TOTAL EQUITY
NOTE	23	23	23, 24	23	24
As at 1 January 2023	5 869	71 608	598 651	1 450	234 841	912 419
Total comprehensive income for the financial period
Net profit	-	-	-	-	761 564	761 564
Other comprehensive income	-	-	-	455	-	455
Total comprehensive income for the financial period	-	-	-	455	761 564	762 019
Transactions with Company's owners recognized directly in equity
Appropriation of profit/offset of loss
- dividend payment	-	-	-	-	(176 075)	(176 075)
- transfer to other reserves	-	-	58 766	-	(58 766)	-
Issue of Equity	-	-	-	-	-	-
Inclusion of share based incentive scheme	-	-	-	-	-	-
Increase (decrease) in equity	-	-	58 766	455	526 723	585 944
As at 31 December 2023	5 869	71 608	657 417	1 905	761 564	1 498 363

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

Half-year condensed standalone statement of changes in equity for the period from 1 January 2023 to 30 June 2023

(IN PLN'000)	SHARE CAPITAL	SUPPLEMENTARY CAPITAL	OTHER RESERVES	FOREIGN EXCHANGE DIFFERENCES ON TRANSLATION OF FOREIGN OPERATIONS AND SEPARATE FUNDS	RETAINED EARNINGS	TOTAL EQUITY
NOTE	23	23	23, 24	23	24
As at 1 January 2023	5 869	71 608	657 417	1 905	761 564	1 498 363
Total comprehensive income for the financial period
Net profit	-	-	-	-	422 826	422 826
Other comprehensive income	-	-	-	(1 018)	-	(1 018)
Total comprehensive income for the financial period	-	-	-	(1 018)	422 826	421 808
Transactions with Company's owners recognized directly in equity
Appropriation of profit/offset of loss
- dividend payment	-	-	-	-	(570 484)	(570 484)
- transfer to other reserves	-	-	191 080	-	(191 080)	-
Issue of Equity	-	-	-	-	-	-
Inclusion of share based incentive scheme	-	-	-	-	-	-
Increase (decrease) in equity	-	-	191 080	(1 018)	(338 738)	(148 676)
As at 30 June 2023	5 869	71 608	848 497	887	422 826	1 349 687

HALF-YEAR CONDENSED STANDALONE CASH FLOW STATEMENT

(IN PLN'000)		SIX-MONTH PERIOD ENDED
		30.06.2024	30.06.2023
Cash flows from operating activities
Profit before tax		558 565	513 443
Adjustments:		(30 941)	(298 089)
(Profit) Loss on investment activity	29.3	(15 026)	(22 491)
Proceeds / Expenses on cash deposits with maturity over 3M		-	(300 000)
Amortization and depreciation	16, 17	8 205	6 665
Foreign exchange (gains) losses from translation of own cash		(2 817)	331
Other adjustments	29.1	408	(434)
Changes
Change in provisions		(155)	78
Change in balance of financial assets at fair value through P&L and financial liabilities held for trading		(73 072)	(73 249)
Change in balance of restricted cash		(477 736)	(17 198)
Change in financial assets at amortised cost		(63 843)	(356)
Change in balance of prepayments and accruals		(2 281)	(2 802)
Change in balance of amounts due to customers		562 233	116 708
Change in balance of other liabilities	29.2	33 143	(5 341)
Cash from operating activities		527 624	215 354
Income tax paid		(120 415)	(73 072)
Interest received			(2 231)
Interest paid		443	-
Net cash from operating activities		407 652	140 051
Cash flow from investing activities
Proceeds from sale of items of property, plant and equipment		44	3
Expenses relating to payments for property, plant and equipment	17	(12 341)	(6 849)
Expenses relating to payments for intangible assets	16	-	(93)
Expenses relating to payments for investments in subsidiaries		(8 661)	(5 865)
Expenses relating purchase of bonds		(658 386)	(296 614)
Proceeds from closed deposits		-	300 000
Interest received on deposits		-	2 667
Proceeds from sale of bonds		632 857	283 678
Interests on bonds		10 974	12 633
Dividends received from subsidiaries		-	6 740
Net cash from investing activities		(35 513)	296 300
Cash flow from financing activities
Payments of liabilities under finance lease agreements		(4 158)	(5 441)
Interest paid under lease		(443)	(436)
Dividends paid to owners		(590 198)	-
Inclusion of share based incentive scheme		3 734	-
Purchase of own shares		(7 750)	-
Net cash from financing activities		(598 815)	(5 877)
Increase (Decrease) in net cash and cash equivalents		(226 676)	430 474
Cash and cash equivalents – opening balance		1 271 437	1 124 822
Increase (Decrease) in net cash and cash equivalents		(226 676)	430 474
Effect of FX rates fluctuations on balance of cash in foreign currencies		2 817	(333)
Cash and cash equivalents – closing balance	13	1 047 578	1 554 963

The half-year condensed standalone cash flow statement should be read together with the supplementary notes to the halfyear condensed standalone financial statements, which are an integral part of these half-year condensed standalone financial statements.

ADDITIONAL EXPLANATORY NOTES TO THE HALF-YEAR CONDENSED STANDALONE FINANCIAL STATEMENTS

1. General information

1.1 Name and registered seat of Company

Name:	XTB Spółka Akcyjna
Legal form:	Joint Stock Company
Country:	Poland
Company registered seat:	Prosta 67, 00-838 Warsaw
Regon statistical number:	015803782
Tax Identification Number:	5272443955
Registration in the National Court Register:	0000217580

1.2 Company business

XTB S.A. ("Company", "XTB is a joint-stock company established pursuant to a notarial deed of 2 September 2004 - Repertory A-2712/2004. The Company was established for an indefinite period.

On 22 September 2004, the Company was entered in the National Court Register by the District Court for the Capital City of Warsaw, 12th Commercial Department of the National Court Register, under No. 0000217580. The Company was granted a statistical REGON number 015803782 and a tax identification (NIP) number 5272443955.

The Company's operations consist of conducting brokerage activities on the stock exchange (stocks, ETP – Exchanged Traded Products) and OTC markets (currency derivatives, commodities, indices, stocks and ETP and bonds). The Company is supervised by the Polish Financial Supervision Authority and conducts regulated activities pursuant to a permit dated 8 November 2005, No. DDM–M–4021–57–1/2005.

1.3 Information on the reporting entities in the Company's organisational structure

The half-year condensed standalone financial statements cover the following foreign branches which form the Company:

XTB S.A. organizačni složka a branch established on 7 March 2007 in the Czech Republic. The branch was registered in the commercial register maintained by the City Court in Prague under No. 56720 and was granted the following tax identification number: CZK 27867102.
XTB S.A. Sucursal en Espana a branch established on 19 December 2007 in Spain. On 16 January 2008, the branch was registered by the Spanish authorities and was granted the tax identification number ES W0601162A.
XTB S.A. organizačná zložka a branch established on 1 July 2008 in the Slovak Republic. On 6 August 2008, the branch was registered in the commercial register maintained by the City Court in Bratislava under No. 36859699 and was granted the following tax identification number: SK4020240324.
XTB S.A. Varsovia Sucursala Bucuresti a branch established on 31 July 2008 in Romania. On 4 August 2008, the branch was registered in the Commercial Register under No. 402030 and was granted the following tax identification number: RO27187343.
XTB S.A. German Branch a branch established on 5 September 2008 in the Federal Republic of Germany. On 24 October 2008, the branch was registered in the Commercial Register under No. HRB 84148 and was granted the following tax identification number: DE266307947.
XTB S.A. Succursale Française a branch established on 21 April 2010 in the Republic of France. On 31 May 2010, the branch was registered in the Commercial Register under No 522758689 and was granted the following tax identification number: FR61522758689.
XTB S.A. Sucursal em Portugal a branch established on 7 July 2010 in Portugal. On 7 July 2010, the branch was registered in the Commercial Register and was granted the following tax identification number: PT980436613.

1.4 Composition of the Management Board

In the period covered by the half-year condensed standalone financial statements and in the comparative period, the Management Board was composed of the following persons:

NAME AND SURNAME	FUNCTION	DATE OF FIRST APPOINTMENT	TERM OF OFFICE
Omar Arnaout	Chairman of the Management Board	23.03.2017	From the 1 July 2022 appointed for the new 3-years term of office ending 1 July 2025
Paweł Szejko	Board Member	28.01.2015	From the 1 July 2022 appointed for the new 3-years term of office ending 1 July 2025
Filip Kaczmarzyk	Board Member	10.01.2017	From the 1 July 2022 appointed for the new 3-years term of office ending 1 July 2025
Jakub Kubacki	Board Member	10.07.2018	From the 1 July 2022 appointed for the new 3-years term of office ending 1 July 2025
Andrzej Przybylski	Board Member	01.05.2019	From the 1 July 2022 appointed for the new 3-years term of office ending 1 July 2025

2. Basis for drafting the financial statements

2.1 Compliance statement

These half-year condensed standalone financial statements were prepared based on International Accounting Standars (IAS) 34 approved by the European Union.

The half-year condensed standalone financial statements of the XTB S.A. prepared for the period from 1 January 2024 to 30 June 2024 with comparative data for the period ended 30 June 2023 and as at 31 December 2023, cover the Company's financial data and financial data of the branch offices.

These half-year condensed standalone financial statements have been prepared on the historical cost basis, with the exception of financial assets at fair value and other assets and liabilities which valuation methods are described in the accounting policy. The Company's assets are presented in the statement of financial position according to their liquidity, and its liabilities according to their maturities.

The Company and its branch offices maintain their accounting records in accordance with the accounting principles generally accepted in the countries in which these companies are established. The half-year condensed standalone financial statements include adjustments made in order to reconcile their financial statements with the Company's accounting principles.

The half-year condensed standalone financial statements were approved by the Management Board of the Company on 19 August 2024.

Drafting this half-year condensed standalone financial statements, the Company decided that none of the Standards would be applied retrospectively.

The IFRS comprise standards and interpretations approved by the International Accounting Standards Board ("IASB") and the International Financial Reporting Interpretations Committee ("IFRIC").

2.2 Functional currency and reporting currency

The functional currency and the presentation currency of these half-year condensed standalone financial statements is the Polish zloty ("PLN"), and unless stated otherwise, all amounts are shown in thousands of zloty (PLN'000).

2.3 Going concern

The half-year condensed standalone financial statements were prepared based on the assumption that the Company would continue as a going concern in the foreseeable future. At the date of preparation of these half-year condensed standalone financial statements, the Management Board of XTB S.A. does not state any circumstances that would threaten the Company continued operations in the 12 months from the date of acceptance of these financial statements.

2.4 Comparability of data and consistency of the policies applied

Data presented in the half-year condensed standalone financial statements is comparable and prepared under the same principles for all periods covered by the half-year condensed standalone financial statements.

Following the introduction of interest deposits on clients cash, in order to better reflect and ensure comparability of data, starting from the interim condensed financial statements for 2024, the Company has decided to present Net Interest Income on Clients Cash in Income from operating activities. The data for 2023 have been brought to comparability on the basis of the data available in the reporting systems.

2.5 The impact of Russia's invasion of Ukraine on the Company's results

On 24 February 2022, Russian troops crossed the eastern, southern and northern borders of Ukraine, attacking the territory of Ukraine. In connection with hostilities by Russia, representatives of the European Union and many other countries have introduced severe sanctions against Russia, which mainly affect strategic sectors of the Russian economy by blocking access to technology and markets. This situation currently has no significant impact on the Company, however, it caused high volatility in the financial and commodity markets around the world, which affected the transaction activity of XTB clients and the Company's results in 2022.

2.6 Changes in the accounting policies

The accounting policies applied in the preparation of the half-year condensed standalone financial statements are consistent with those applied in the preparation of the standalone financial statements of the Company for the year ended 31 December 2023, except for the application of new or amended standards and interpretations applicable to annual periods beginning on or after 1 January 2024.

Amendments to IFRS 16 "Leases" lease liabilities in sale and leaseback transactions,
Amendments to IAS 1 "Presentation of Financial Statements" classification of liabilities as current or non-current,
Amendments to IAS 7 "Statement of Cash Flows" and IFRS 7 "Financial Instruments: Disclosures" financing agreements for liabilities to suppliers – not yet endorsed by EU at the date of approval of these financial statements,

The Company has not decided to apply earlier any Standard, Interpretation or Amendment that has been issued, but has not yet become effective in light of the EU regulations. New or amended standards and interpretations that are applicable for the first time in 2024 did not have a significant impact on the Company's standalone financial statements.

2.7 New standards and interpretations which have been published but are not yet binding

The following standards and interpretations have been published by the International Accounting Standards Board but are not yet binding:

Amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates" lack of interchangeability not yet endorsed by EU at the date of approval of these financial statements – effective for financial years beginning on or after 1 January 2025,
Amendments to IFRS 9 "Financial Instruments" and IFRS 7 "Financial Instruments Disclosures" amendments in the classification and measurement of financial instruments - not yet endorsed by EU at the date of approval of these financial statements - effective for financial years beginning on or after 1 January 2026,
IFRS 18 "Presentation and disclosures in the financial statements" not yet endorsed by EU at the date of approval of these financial statements – effective for financial years beginning on or after 1 January 2027 or later,
IFRS 19 "Subsidiaries without public accountability: disclosure of information" not yet endorsed by the EU at the date of approval of these financial statements – effective for financial years beginning on or after 1 January 2027,
IFRS 14 "Regulatory Deferral Accounts" the endorsement process of these Amendments has been postponed by EU the effective date was deferred indefinitely by IASB,
Amendments to IFRS 10 "Consolidated financial statements" and IAS 28 "Investments in Associates and Joint Ventures" - sale or contribution of Assets Between an Investor and its Associate or Joint Venture – the endorsement process of these Amendments has been postponed by EU - the effective date was deferred indefinitely by IASB.

Above new standards and interpretations which have been published but are not yet binding do not have a significant impact on the Company's half-year condensed standalone financial statements.

3. Professional judgement

In the process of applying the accounting principles (policy), the Management Board of the Company made the following judgements that have the greatest impact on the reported carrying amounts of assets and liabilities.

Revenue recognition

Transaction price is determined at fair value which is described in accounting policy. Liabilities due to reimbursements and other in the case of the Company do not occur.

3.1 Material estimates and valuations

In order to prepare its financial statements in accordance with the IFRS, the Company has to make certain estimates and assumptions that affect the amounts disclosed in the financial statements. Estimates and assumptions subject to day-to-day evaluation by the Company's management are based on experience and other factors, including expectations as to future events that seem justified in the given situation. The results are a basis for estimates of carrying amounts of assets and liabilities.

Although the estimates are based on best knowledge regarding the current conditions and actions taken by the Company, actual results may differ from the estimates. Adjustments to estimates are recognised during the reporting period in which the adjustment was made provided that such adjustment refers only to the given period or in subsequent periods if the adjustment affects both the current period and subsequent periods. The most important areas for which the Company makes estimates are presented below.

3.2 Impairment of assets

As at each balance sheet date, the Company determines whether there are any indications of impairment of a given financial asset or group of financial assets. In particular, the Company tests its past due receivables for impairment and writes down the estimated amount of doubtful and uncollectible receivables.

At each balance sheet date, the Company assesses whether there are objective indications of impairment of other assets, including intangible assets. Impairment is recognised when it is highly likely that all or a significant part of the respective assets will not bring about the expected economic benefits, e.g. as a result of expiry of licences or decommissioning.

Deferred income tax assets

At each balance sheet date, the Company assesses the likelihood of settlement of unused tax credits with the estimated future taxable profit and recognises the deferred tax asset only to the extent that it is probable that future taxable profit will be available against which the unused tax credits can be utilized, which is described in note 26.2.2.

The Company recognises a deferred tax asset based on the assumption that a tax profit will be generated in the future enabling its utilisation. Deterioration in tax results in the future might result in the assumption becoming unjustified.

The deferred tax asset relates mainly to the losses generated by foreign operations and branches in the initial period of their operation recognised in the balance sheet. The Company analyses the possibility of recognising such assets, taking into consideration local tax regulations, and analyses future tax budgets assessing the possibility of recovering these assets.

3.3 Fair value measurement

Information on estimates relative to fair value measurement is presented in note 33 – Risk management. The fair value measurement framework uses valuation techniques that are appropriate to the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. The methodology developed by the Company for determining fair value involves adjusting the fair value model to the characteristics of the financial asset being valued.

3.4 Other estimates

Provisions for liabilities connected with retirement, pension and death benefits are calculated using the actuarial method by an independent actuary as the current value of the Company's future amounts due to employees, based on their employment and salaries as at the balance sheet date. The calculation of the provision amount is based on a number of assumptions, regarding both macroeconomic conditions and employee turnover, risk of death, and others.

Provision for unused holidays is calculated on the basis of the estimated payment of holiday benefits, based on the number of unused holidays, and remuneration as at the balance sheet date.

Provisions for legal risk are determined individually based on the circumstances of a given case. The Company assesses the chance of winning particular case and consequently assesses the need of establishment of provision in case of a loss in relations to all court cases.

4. Adopted material accounting principles

The accounting policies applied in the preparation of the half-year condensed standalone financial statements are consistent with the accounting policies applied in the preparation of the annual standalone financial statements for the financial year ended 31 December 2023, except for the new or amended standards and new interpretations binding for the annual periods starting on or after 1 January 2024.

5. Seasonality of operations

The Company's operations are not seasonal.

6. Operating income

6.1 Result of operations in financial instruments

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Financial instruments (CFD)
Commodity CFDs	449 519	323 622
Index CFDs	347 119	436 279
Currency CFDs	95 555	65 076
Stock and ETP CFDs	20 933	9 365
Bond CFDs	428	693
Total CFDs	913 554	835 035
Stocks and ETPs	18 824	6 545
Dividends from subsidiaries	-	6 740
Gross gain on transactions in financial instruments	932 378	848 320
Intermediary services	(104 854)	(90 959)
Bonuses and discounts paid to customers	(135)	-
Net gain on transactions in financial instruments	827 389	757 361

Intermediary services are services performed on the foreign markets by the Company's subsidiaries to the Parent Company.

Bonuses paid to clients are strictly related to trading in financial instruments by the customer with Company.

The Company concludes cooperation agreements with introducing brokers who receive commissions which depend on the trade generated under the cooperation agreements. The income generated and the costs incurred between the Company and particular brokers relate to the trade between the broker and customers that are not his customers.

The Company's operating incomes is generated from: (i) spreads (the differences between the "offer" price and the "bid" price); (ii) fees and commissions charged by the Company to its clients and swap points charged (being the amounts resulting from the difference between the notional forward rate and the spot rate of a given financial instrument); (iii) net results (gains offset by losses) from Company's market making activities.

6.2 Income from fees and charges

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Fees and charges from institutional clients	2 209	3 362
Fees and charges from retail clients	2 886	1 860
Total income from fees and charges	5 095	5 222

6.3 Geographical areas

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Operating income
Central and Eastern Europe	600 686	523 670
- including Poland	478 747	414 159
Western Europe	170 357	178 263
Latin America *	16 518	33 606
Middle East**	73 447	38 924
Total operating income	861 008	774 463

** Revenue from clients from the Middle East, acquired by XTB International Ltd. With its seat in Belize and XTB MENA Limited with its seat in the United Arab Emirates.

The country from which the Company derives each time 20% and over of its revenue is Poland with a share of 55,6% (in 1HY2023: 53,5%). Due to the overall share in the Company's revenue Poland was set apart for presentation purposes within the geographical area. The share of other countries in the structure of the Company's revenue by geographical area does not in any case exceed 20%.

The Company breaks its revenue down into geographical area by country in which a given customer was acquired.

7. Salaries and employee benefits

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Salaries	(102 849)	(82 361)
Social insurance and other benefits	(15 466)	(13 180)
Employee benefits	(3 261)	(2 414)
Total salaries and employee benefits	(121 576)	(97 955)

8. Marketing

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Marketing online	(88 437)	(85 837)
Marketing offline	(29 321)	(23 568)
Total marketing	(117 758)	(109 405)

Marketing activities carried out by the Company are mainly focused on Internet marketing, which is also supported by other marketing activities.

9. Other external services

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Intermediary services	(19 569)	(16 816)
Support database systems	(17 128)	(11 985)
Market data delivery	(6 006)	(5 397)
Legal and advisory services	(4 166)	(4 147)
Internet and telecommunications	(1 714)	(1 509)
Accounting and audit services	(852)	(909)
IT support services	(406)	(232)
Recruitment	(74)	(971)
Postal and courier services	(275)	(75)
Other external services	(671)	(593)
Total other external services	(50 861)	(42 634)

10. Commission expenses

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Bank commissions	(22 377)	(12 402)
Stock exchange fees and charges	(6 428)	(5 178)
Commissions of foreign brokers	(239)	(223)
Total commission expenses	(29 044)	(17 803)

11. Finance income and costs

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Interest income on financial instruments at amortized cost	15 744	24 003
Income on bonds	15 008	17 505
Foreign exchange gains	6 966	-
Other finance income	6	6
Total finance income	37 724	41 514

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Interest paid under lease agreements	(443)	(436)
Other interest	(28)	(24)
Foreign exchange losses	-	(16 185)
Other finance costs	(3)	(42)
Total finance costs	(474)	(16 687)

Foreign exchange differences relate to unrealised differences on the measurement of balance sheet items denominated in a currency other than the functional currency.

12. Cash and cash equivalents

Broken down by type:

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Cash in current accounts in bank and their equivalents	3 668 219	3 414 342	3 375 262
Cash and cash equivalents in total	3 668 219	3 414 342	3 375 262

The Company classifies as cash equivalents short-term deposits with maturities of less than 3 months and accrued interest thereon.

Own cash and restricted cash – customers' cash:

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Customers' cash and cash equivalents	2 620 641	2 142 905	1 820 299
Own cash and cash equivalents	1 047 578	1 271 437	1 554 963
Cash and cash equivalents in total	3 668 219	3 414 342	3 375 262

Customers' cash and cash equivalents include the value of clients' open transactions.

13. Financial assets at fair value through P&L

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
CFDs
Index CFDs	133 687	165 952	190 444
Commodity CFDs	128 322	118 586	135 802
Currency CFDs	112 688	81 704	86 789
Stock and ETP CFDs	81 809	68 507	70 589
Bond CFDs	174	108	2 840
Debt instruments (treasury bonds)	410 788	401 265	379 882
Debt instruments (corporate bonds)	20 040	-	-
Stocks and ETPs	99 114	16 665	12 103
Total financial assets at fair value through P&L	986 622	852 787	878 449

Detailed information on the estimated fair value of the instrument is presented in note 33.1.1.

14. Investments in subsidiaries

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
At the beginning of the reporting period	49 429	43 487	43 487
Increase	8 661	6 067	5 865
Decrease	-	-	-
Utilization	-	-	-
Impairment of investments in subsidiaries	-	(125)	(125)
At the end of the reporting period	58 090	49 429	49 227

Impairment of investments in subsidiaries

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Impairment write-downs of investments in subsidiaries – at the beginning of the reporting period	(4 958)	(4 833)	(4 833)
Utilization	-	-	-
Write-downs recorded	-	(125)	(125)
Impairment write-downs of investments in subsidiaries – at the end of the reporting period	(4 958)	(4 958)	(4 958)

Detailed information on subsidiaries

			30.06.2024		31.12.2023		30.06.2023
NAME OF SUBSIDIARY	COUNTRY OF REGISTERED OFFICE	ACTIVITIES OF THE SUBSIDIARIES	CARRYING AMOUNT OF SHARES	SHARE IN CAPITAL	CARRYING AMOUNT OF SHARES	SHARE IN CAPITAL	CARRYING AMOUNT OF SHARES	SHARE IN CAPITAL
			(IN PLN'000)	%	(IN PLN'000)	%	(IN PLN'000)	%
XTB Limited	Great Britain	Brokerage activity	20 139	100%	20 139	100%	20 139	100%
X Open Hub Sp. z o.o.	Poland	Applications and electronic trading technology offering	105	100%	105	100%	105	100%
XTB Limited	Cyprus	Brokerage activity	7 560	100%	7 560	100%	7 560	100%

(TRANSLATION OF A DOCUMENT ORIGINALLY ISSUED IN POLISH)

Tasfiye Halinde XTB Yönetim Danışmanlığı A.Ş.	Turkey	The company does not conduct its operations, is in the process of liquidation	-	100%	-	100%	-	100%
XTB International Limited	Belize	Brokerage activity	4 420	100%	4 420	100%	4 420	100%
XTB Agente de Valores SpA	Chile	The activity of acquiring clients	403	100%	403	100%	403	100%
XTB Services Limited	Cyprus	Marketing, marketing and sales activities (sales support)	337	100%	337	100%	337	100%
XTB Africa (PTY) Ltd.	South Africa	The Company has not yet conducted operations	2 339	100%	2 339	100%	2 339	100%
XTB MENA Limited	UAE	Brokerage activity	18 448	100%	12 521	100%	12 521	100%
XTB Digital Ltd.	Cyprus	The Company has not yet conducted operations	1 403	100%	1 403	100%	1 403	100%
XTB S.C. Limited	Seychelles	The Company has not yet conducted operations	202	99,9%	202	99,9%	-	-
PT XTB Indonesia Berjangka	Indonesia	The Company has not yet conducted operations	2 734	90%	-	-	-	-
Razem			58 090		49 429		49 227

On 15 September 2020, the liquidation process of the company in Turkey Tasfiye Halinde XTB Yönetim Danışmanlığı A.Ş. has begun.

As at the 30 June 2024, amount of negative foreign exchange differences on translation of balances in foreign currencies of Turkish company amounted PLN (3 644), as at the 31 December 2023 PLN (3 655) thousand, as at 30 June 2023 PLN (3 719) thousand (note 23). Exchange differences will be recognized in standalone financial statement at the date of liquidation of the company.

On 27 July 2023, the subsidiary XTB Chile SpA changed its name to XTB Agente de Valores SpA.

On 17 January 2024 the Parent Company acquired 90% shares in the Company PT Rajawali Kapital Berjangka with the seat in the Republic of Indonesia which is a derivatives broker regulated by the Commodity Futures Trading Supervisory Agency (in short BAPPEBTI). On 16 February 2024, the Parent Company allocated USD 315 thousand for share capital increase in its subsidiary PT Rajawali Kapital Berjangka, maintaining a 90% share in its capital.

On 29 April 2024 the subsidiary PT Rajawali Kapital Berjangka changed its name to PT XTB Indonesia Berjangka.

Impairment of investments in subsidiaries

As at 30 June 2024 due to the circumstances indicating value impairment as decrease of value of net assets value below purchase price, the Company recognized a write-off due to impairment of its investment in a subsidiary in Turkey in the amount of PLN 4 958 thousand. The impairment was recognized due to the decision made by the Company's Management Board on the 18 May 2017 to withdraw from activity in Turkey through taking actions intended to phase out XTB's activity on this market and liquidation of the subsidiary in Turkey. The impairment write-off was created up to the amount of net assets for which almost entirely cash is held in the bank. As at 31 December 2023 the write-off due to impairment of Turkish subsidiary amounted to PLN 4 958 thousand. As at 30 June 2023 the write-off due to impairment of Turkish subsidiary amounted to PLN 4 958 thousand. As at the balance sheet date the process of withdrawing the activity was not finalized. Since December 2019 Tasfiye Halinde XTB Yönetim Danışmanlığı A.Ş does not have an active license to running business.

15. Financial assets at amortised cost

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Amounts due from the Central Securities Depository of Poland	15 700	14 162	13 969
Trade receivables	4 919	4 761	16 719
Receivables due from clients	97 819	78 021	50 941
Deposits	3 791	4 313	4 289
Trade receivables due from related parties	54 535	12 572	891
Statutory receivables	431	300	292
Gross other receivables	177 195	114 129	87 101
Impairment write-downs of receivables	(28)	(28)	(19)
Impairment write-downs of receivables due from clients	(2 977)	(3 754)	(3 508)
Total net other receivables	174 190	110 347	83 574

Movements in impairment write-downs of receivables

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Impairment write-downs of receivables – at the beginning of the reporting period	(3 782)	(3 370)	(3 370)
Write-downs recorded	(335)	(1 975)	(472)
Write-downs reversed	1 112	1 502	372
Write-downs utilized	-	61	(57)
Impairment write-downs of receivables – at the end of the reporting period	(3 005)	(3 782)	(3 527)

Write-downs of receivables in 2024 and 2023 resulted from the debit balances which arose in customers' accounts in those periods.

16. Intangible assets

Intangible assets in the period from 1 January 2024 to 30 June 2024

(IN PLN'000)	LICENCES FOR COMPUTER SOFTWARE	INTANGIBLE ASSETS MANUFACTURED INTERNALLY	TOTAL
Gross value as at 1 January 2024	6 464	10 792	17 256
Additions	-	-	-
Sale and scrapping	-	-	-
Net foreign exchange differences	-	-	-
Gross value as at 30 June 2024	6 464	10 792	17 256

Accumulated amortization as at 1 January 2024	(5 377)	(10 792)	(16 169)
Amortization for the current period	(174)	-	(174)
Sale and scrapping	-	-	-
Net foreign exchange differences	(1)	-	(1)
Accumulated amortization as at 30 June 2024	(5 552)	(10 792)	(16 344)
Net book value as at 1 January 2024	1 087	-	1 087
Net book value as at 30 June 2024	912	-	912

Intangible assets manufactured internally relate to a financial instrument trading platform and applications compatible with this platform.

Intangible assets in the period from 1 January 2023 to 31 December 2023

(IN PLN'000)	LICENCES FOR COMPUTER SOFTWARE	INTANGIBLE ASSETS MANUFACTURED INTERNALLY	TOTAL
Gross value as at 1 January 2023	6 367	10 792	17 159
Additions	106	-	106
Sale and scrapping	-	-	-
Net foreign exchange differences	(9)	-	(9)
Gross value as at 31 December 2023	6 464	10 792	17 256
Accumulated amortization as at 1 January 2023	(5 034)	(10 792)	(15 826)
Amortization for the current period	(353)	-	(353)
Sale and scrapping	-	-	-
Net foreign exchange differences	9	-	9
Accumulated amortization as at 31 December 2023	(5 378)	(10 792)	(16 170)
Net book value as at 1 January 2023	1 333	-	1 333
Net book value as at 31 December 2023	1 086	-	1 086

Intangible assets manufactured internally relate to a financial instrument trading platform and applications compatible with this platform.

Intangible assets in the period from 1 January 2023 to 30 June 2023

(IN PLN'000)	LICENCES FOR COMPUTER SOFTWARE	INTANGIBLE ASSETS MANUFACTURED INTERNALLY	TOTAL
Gross value as at 1 January 2023	6 367	10 792	17 159
Additions	93	-	93
Sale and scrapping	(5)	-	(5)
Net foreign exchange differences	(5)	-	(5)
Gross value as at 30 June 2023	6 450	10 792	17 242
Accumulated amortization as at 1 January 2023	(5 034)	(10 792)	(15 826)
Amortization for the current period	(176)	-	(176)
Sale and scrapping	5	-	5
Net foreign exchange differences	6	-	6
Accumulated amortization as at 30 June 2023	(5 199)	(10 792)	(15 991)
Net book value as at 1 January 2023	1 333	-	1 333
Net book value as at 30 June 2023	1 251	-	1 251

Intangible assets manufactured internally relate to a financial instrument trading platform and applications compatible with this platform.

17. Property, plant and equipment

Property, plant and equipment in the period from 1 January 2024 to 30 June 2024

(IN PLN'000)	COMPUTER SYSTEMS	OTHER PROPERTY, PLANT AND EQUIPMENT	RIGHT TO USE OFFICE	RIGHT TO USE CAR	TANGIBLE FIXED ASSETS UNDER CONSTRUCTION	TOTAL
Gross value as at 1 January 2024	33 991	14 355	37 696	570	298	86 910
Additions	10 491	476	-	-	1 374	12 341
Lease	-	-	3 796	-	-	3 796
Sale and scrapping	(237)	(41)	(3 550)	-	-	(3 828)
Net foreign exchange differences	(29)	(75)	(174)	(8)	-	(286)
Gross value as at 30 June 2024	44 216	14 715	37 768	562	1 672	98 933

Accumulated amortization as at 1 January 2024	(20 877)	(4 952)	(13 181)	(337)	-	(39 347)
Amortization for the current period	(3 185)	(1 099)	(3 692)	(55)	-	(8 031)
Sale and scrapping	236	37	3 529	-	-	3 802
Net foreign exchange differences	14	21	50	5	-	90
Accumulated amortization as at 30 June 2024	(23 812)	(5 993)	(13 294)	(387)	-	(43 486)
Net book value as at 1 January 2024	13 114	9 403	24 515	233	298	47 563
Net book value as at 30 June 2024	20 404	8 722	24 474	175	1 672	55 447

Property, plant and equipment in the period from 1 January 2023 to 31 December 2023

(IN PLN'000)	COMPUTER SYSTEMS	OTHER PROPERTY, PLANT AND EQUIPMENT	RIGHT TO USE OFFICE	RIGHT TO USE CAR	TANGIBLE FIXED ASSETS UNDER CONSTRUCTION	TOTAL
Gross value as at 1 January 2023	27 186	8 803	33 857	620	1 187	71 653
Additions	7 517	6 550	-	-	31	14 098
Lease	-	-	8 135	2	-	8 137
Sale and scrapping	(573)	(793)	(3 184)	-	(848)	(5 398)
Net foreign exchange differences	(139)	(205)	(1 112)	(52)	(72)	(1 580)
Gross value as at 31 December 2023	33 991	14 355	37 696	570	298	86 910

Accumulated amortization as at 1 January 2023	(16 386)	(4 094)	(8 473)	(245)	-	(29 198)
Amortization for the current period	(5 179)	(1 712)	(7 136)	(117)	-	(14 144)
Sale and scrapping	570	655	1 944	(2)	-	3 167
Net foreign exchange differences	118	199	484	27	-	828
Accumulated amortization as at 31 December 2023	(20 877)	(4 952)	(13 181)	(337)	-	(39 347)
Net book value as at 1 January 2023	10 800	4 709	25 384	375	1 187	42 455
Net book value as at 31 December 2023	13 114	9 403	24 515	233	298	47 563

Property, plant and equipment in the period from 1 January 2023 to 30 June 2023

(IN PLN'000)	COMPUTER SYSTEMS	OTHER PROPERTY, PLANT AND EQUIPMENT	RIGHT TO USE OFFICE	RIGHT TO USE CAR	TANGIBLE FIXED ASSETS UNDER CONSTRUCTION	TOTAL
Gross value as at 1 January 2023	27 186	8 803	33 857	620	1 187	71 653
Additions	2 754	4 978	-	-	(883)	6 849
Lease	-	-	6 716	-	-	6 716
Sale and scrapping	(315)	(673)	(4 090)	(64)	-	(5 142)
Net foreign exchange differences	(86)	(122)	(743)	(27)	(50)	(1 028)
Gross value as at 30 June 2023	29 539	12 986	35 740	529	254	79 048

Accumulated amortization as at 1 January 2023	(16 386)	(4 094)	(8 473)	(245)	-	(29 198)
Amortization for the current period	(2 412)	(643)	(3 374)	(60)	-	(6 489)
Sale and scrapping	337	570	2 541	64	-	3 512
Net foreign exchange differences	68	105	258	12	-	443
Accumulated amortization as at 30 June 2023	(18 393)	(4 062)	(9 048)	(229)	-	(31 732)
Net book value as at 1 January 2023	10 800	4 709	25 384	375	1 187	42 455
Net book value as at 30 June 2023	11 146	8 924	26 692	300	254	47 316

Non-current assets by geographical area

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Non-current assets
Central and Eastern Europe	43 624	37 404	37 698
- including Poland	37 360	30 569	30 211
Western Europe	12 735	11 245	10 869
Total non-current assets	56 359	48 649	48 567

18. Amounts due to customers

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Amounts due to retail customers	3 010 812	2 394 132	2 209 773
Amounts due to institutional customers	51 835	106 282	83 798
Total amounts due to customers	3 062 647	2 500 414	2 293 571

Amounts due to customers are connected with transactions concluded by the customers (including cash deposited in the customers' accounts).

19. Financial liabilities held for trading

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Financial instruments (CFD)
Currency CFDs	38 275	24 445	12 712
Stock and ETP CFDs	37 092	25 777	27 732
Index CFDs	14 082	11 339	10 673
Commodity CFDs	9 747	6 404	8 084
Bond CFDs	21	52	270
Total financial liabilities held for trading	99 217	68 017	59 471

20. Liabilities due to lease

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Short- term	7 794	7 093	6 879
Long- term	19 045	20 108	22 504
Total liabilities due to lease	26 839	27 201	29 383

Liabilities due to lease do not include short-term leasing contracts and lease of low-value assets.

In the period from 1 January to 30 June 2024 the cost related to short-term leasing included in the statement of comprehensive income amounted to PLN 65 thousand, there was no costs related to lease of low-value assets included in the statement of comprehensive income.

In the period from 1 January to 31 December 2023 the cost related to short-term leasing included in the statement of comprehensive income amounted to PLN 130 thousand, the cost related to lease of low-value assets included in the statement of comprehensive income amounted to PLN 15 thousand.

In the period from 1 January to 30 June 2023 the cost related to short-term leasing included in the statement of comprehensive income amounted to PLN 134 thousand, the cost related to lease of low-value assets included in the statement of comprehensive income amounted to PLN 18 thousand.

The Company is a lessee in the case of lease agreements for office space and cars. The value of the leased item is presented in Note 17.

21. Other liabilities

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Trade liabilities	59 805	44 024	16 557
Liabilities due to brokers	26 855	8 908	13 518
Statutory liabilities	16 348	7 260	8 720
Provisions for other employee benefits	15 509	22 742	28 491
Amounts due to the Central Securities Depository of Poland	420	2 673	5 425
Liabilities due to employees	537	724	551
Liabilities to shareholders	-	-	570 484
Total other liabilities	119 474	86 331	643 746

Program of variable remuneration elements

Pursuant to the Variable Remuneration Elements policy applied by the Company, the employees of the Company in the top management positions receive annually variable remuneration paid in cash and in financial instruments.

The value of provisions for employee benefits includes variable remuneration granted in cash and based on financial instruments, deferred for payment in three consecutive years.

On 31 July 2023, XTB established an Incentive Program for individuals whose professional activities have a significant impact on the Company's risk profile. Under this program, XTB will offer its participants 100% variable compensation payable in the form of shares. The shares will be offered as part of the Variable Remuneration Elements awarded for the financial results achieved by XTB in the financial year for which the Actual Bonus is awarded. Actual Bonus means the actual value of the bonus that was awarded to the Incentive Program participants for a given financial year. Part of the benefits granted in the form of equity instruments which value is related to the financial situation of the Company, will be paid within 3 years from the date of grant.

Due to the introduction of the Incentive Program at XTB S.A., the costs associated with share-based payments were included in the Company's equity. As at 30 June 2023, the costs related to the payment of variable remuneration elements were recognized in Other liabilities of the Company.

22. Provisions for liabilities and contingent liabilities

22.1 Provisions for liabilities

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Provisions for retirement benefits	298	298	173
Provisions for legal risk	3 279	3 434	3 907
Total provisions	3 577	3 732	4 080

Provisions for legal risk include expected amounts of payments to be made in connection with disputes to which the Company is a party. As at the date of preparation of these financial statements, the Company is not able to specify when the above liabilities will be repaid. The information on the significant court proceedings, arbitration authority or public administration authority was described in point 5.2 of the Management Board report on the operations of the Group and Company. To the best of our knowledge and belief, the procedures described therein and the future resolution of these proceedings in the context of a possible impact on other clients of the Company do not have a material impact on these half-year condensed standalone financial statements.

Movements in provisions in the period from 1 January 2024 to 30 June 2024

(IN PLN'000)	VALUE AS AT		DECREASES	VALUE AS AT
	01.01.2024	INCREASES	USE	REVERSAL	30.06.2024
Provisions for retirement benefits	298	-	-	-	298
Provisions for legal risk	3 434	-	137	18	3 279
Total provisions	3 732	-	137	18	3 577

Movements in provisions in the period from 1 January 2023 to 31 December 2023

(IN PLN'000)	VALUE AS AT		DECREASES		VALUE AS AT
	01.01.2023	INCREASES	USE	REVERSAL	31.12.2023
Provisions for retirement benefits	173	125	-	-	298
Provisions for legal risk	3 829	1 288	848	835	3 434
Total provisions	4 002	1 413	848	835	3 732

Movements in provisions in the period from 1 January 2023 to 30 June 2023

(IN PLN'000)	VALUE AS AT 01.01.2023	INCREASES	DECREASES		VALUE AS AT
			USE	REVERSAL	30.06.2023
Provisions for retirement benefits	173	-	-	-	173
Provisions for legal risk	3 829	588	331	179	3 907
Total provisions	4 002	588	331	179	4 080

22.2 Contingent liabilities

The Company is party to a number of court proceedings associated with the Company's operations. The proceedings in which the Company acts as defendant relate mainly to employees' and customers' claims.

As at 30 June 2024 the total value of claims brought against the Company amounted to approx. PLN 14 479 thousand (as at 31 December 2023: PLN 19 621 thousand, as at 30 June 2023: PLN 15 714 thousand). Company has not created provisions for the above proceedings. In the assessment of the Company there is low probability of loss in these proceedings.

On 9 May 2014, the Company issued a guarantee in the amount of PLN 60 thousand to secure an agreement concluded by a subsidiary XTB Limited, based in the UK and PayPal (Europe) Sarl & Cie, SCA based in Luxembourg. The guarantee was granted for the duration of the main contract, which was concluded for an indefinite period.

On 7 July 2017, the Company issued a guarantee in the amount of PLN 5 533 thousand to secure the agreement concluded between subsidiary XTB Limited based in UK and Worldpay (UK) Limited, Worldpay Limited and Worldpay AP LTD based in UK. The guarantee was issued for the period of the agreement which was concluded for three years with the possibility of further extension.

23. Equity

Share capital structure as at 30 June 2024 and as at 31 December 2023

SERIES/ISSUE	NUMBER OF SHARES	NOMINAL VALUE OF SHARES (IN PLN)	NOMINAL VALUE OF ISSUE (IN PLN'000)
Series A	117 383 635	0,05	5 869
Series B	185 616	0,05	9

Share capital structure as at 30 June 2023

SERIES/ISSUE	NUMBER OF	NOMINAL VALUE OF SHARES	NOMINAL VALUE OF ISSUE
	SHARES	(IN PLN)	(IN PLN'000)
Series A	117 383 635	0,05	5 869

All shares in the Company have the same nominal value, are fully paid for, and carry the same voting and profit-sharing rights. No preference is attached to any share series. The shares are A and B-series ordinary registered shares.

Shareholding structure of the Company

To the best Company's knowledge, the shareholding structure of the Company as at 30 June 2024 was as follows:

	NUMBER OF SHARES	NOMINAL VALUE OF SHARES (IN PLN'000)	SHARE
XXZW Investment Group S.A.	59 872 869	2 993	50,93%
Other shareholders	57 696 382	2 885	49,07%
Total	117 569 251	5 878	100,00%

To the best Company's knowledge, the shareholding structure of the Company as at 31 December 2023 was as follows:

	NUMBER OF SHARES	NOMINAL VALUE OF SHARES (IN PLN'000)	SHARE
XXZW Investment Group S.A.	71 629 794	3 581	60,93%
Other shareholders	45 939 457	2 297	39,07%
Total	117 569 251	5 878	100,00%

To the best Company's knowledge, the shareholding structure of the Company as at 30 June 2023 was as follows:

	NUMBER OF SHARES	NOMINAL VALUE OF SHARES (IN PLN'000)	SHARE
XXZW Investment Group S.A.	71 629 794	3 581	61,02%
Other shareholders	45 753 841	2 288	38,98%
Total	117 383 635	5 869	100,00%

Other capitals

Other capitals consist of:

supplementary capital in the total amount of PLN 71 608 thousand, mandatorily established from annual profit distribution to be used to cover potential losses that may occur in connection with the Company's operations, up to the amount of at least one third of the share capital, amounting to PLN 1 957 thousand and from surplus of the issue price over the nominal price in the amount of PLN 69 651 thousand, resulting from the capital increase in 2012 with a nominal value of PLN 348 thousand for the price of PLN 69 999 thousand,
reserve capital, in the amount of PLN 1 055 950 thousand established from annual distribution of profit as resolved by the General Meeting of Shareholders to be used for financing of further operations of the Company or payment of dividend increased by the cost of the incentive program for persons whose professional activities have a significant impact on the risk profile of the Company,
foreign exchange differences on translation, including foreign exchange of branches and foreign operations in the amount of PLN 492 thousand. A detailed presentation of exchange differences resulting from translation is presented in the table below.

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
XTB Spółka Akcyjna branch in Germany	308	365	533
XTB Spółka Akcyjna branch in Romania	193	204	237
XTB Spółka Akcyjna	528	120	142
XTB Spółka Akcyjna branch in France	(35)	2	107
XTB Spółka Akcyjna branch in Portugal	(61)	(54)	(31)
XTB Spółka Akcyjna branch in Slovakia	(75)	(65)	(32)
XTB Spółka Akcyjna branch in Spain	(180)	(156)	(88)
XTB Spółka Akcyjna branch in Czech Republic	(186)	(136)	19
Total foreign exchange differences on translation	492	280	887

24. Profit distribution and dividend

Pursuant to the decision of the General Shareholders' Meeting of the Company, the net profit for 2023 in the amount of PLN 787 136 thousand was partially earmarked for the payment of a dividend in the amount of PLN 590 198 thousand, the remaining amount was transferred to reserve capital.

The amount of dividend per share paid for 2023 was equal to PLN 5,02. The dividend was paid on the 20 June 2024.

Pursuant to the decision of the General Shareholders' Meeting of the Company, the net profit for 2022 in the amount of PLN 761 564 thousand was partially earmarked for the payment of a dividend in the amount of PLN 570 484 thousand, the remaining amount was transferred to reserve capital.

The amount of dividend per share paid for 2022 was equal to PLN 4,86. The dividend was paid on the 21 July 2023.

25. Earnings per share

Basic earnings per share are calculated by dividing the net profit for the period attributable to shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. When calculating both basic and diluted earnings per share, the Company uses the amount of net profit attributable to shareholders of the Company as the numerator, i.e., there is no dilutive effect influencing the amount of profit (loss). The calculation of basic and diluted earnings per share, together with a reconciliation of the weighted average diluted number of shares is presented below.

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Profit from continuing operations attributable to shareholders of the Company	457 507	422 826
Weighted average number of ordinary shares	117 569 251	117 383 635
Weighted average number of shares including dilution effect	117 569 251	117 383 635
Basic net profit per share from continuing operations for the year attributable to shareholders of the Company	3,89	3,60
Diluted net profit per share from continuing operations for the year attributable to shareholders of the Company	3,89	3,60

26. Current income tax and deferred income tax

26.1 Current income tax

Income tax disclosed in the current period's profit and loss

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Income tax – current portion
Income tax for the reporting period	(102 641)	(70 871)
Income tax – deferred portion
Occurrence / reversal of temporary differences	1 583	(19 746)
Income tax disclosed in profit and loss	(101 058)	(90 617)

Reconciliation of the actual tax burden

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Profit before tax	558 565	513 443
Income tax based in the applicable tax rate of 19%	(106 127)	(97 554)
Difference resulting from application of tax rates applicable in other countries	(127)	(112)
Non-taxable revenue	300	19
Non-deductible expenses	(2 011)	(751)
Tax losses for the reporting period not included in deferred tax	-	-
Writing off tax losses activated in previous years	-	-
Other items affecting the tax burden amount	6 907	7 781
Income tax disclosed in profit or loss	(101 058)	(90 617)

The effective tax rate for the period from 1 January 2024 to 30 June 2024 was close to the statutory rate and amounted to 18,08%. In the analogical period of 2023, the rate was 17,65%.

26.2 Deferred income tax

26.2.1 Deferred income tax assets and deferred income tax provision

Change in the balance of deferred tax for the period from 1 January to 30 June 2024

(IN PLN'000)	AS AT 01.01.2024	PROFIT OR (LOSS)	AS AT 30.06.2024
Deferred income tax assets:
Cash and cash equivalents	-	75	75
Property, plant and equipment	63	26	89
Liabilities due to lease	2 885	(2 119)	766
Financial liabilities held for trading	13 347	7 819	21 166
Provisions for liabilities	880	(3)	877
Prepayments and deferred costs	6 096	(1 767)	4 329
Other liabilities	5 067	(3)	5 064
Tax losses of previous periods to be settled in future periods	5 067	(326)	4 741
Total deferred income tax assets	33 405	3 702	37 107

(IN PLN'000)	AS AT 01.01.2024	PROFIT OR (LOSS)	AS AT 30.06.2024
Deferred income tax provision:
Cash and cash equivalents	101	(84)	17
Financial assets at fair value through P&L	83 568	4 027	87 595
Other liabilities	316	429	745
Financial assets at amortised cost	271	(239)	32
Property, plant and equipment	2 788	(2 013)	775
Total deferred income tax provision	87 044	2 120	89 164
Deferred tax disclosed in profit or (loss)	-	1 582	-

(IN PLN'000)	AS AT 01.01.2024	INCLUDED IN EQUITY	AS AT 30.06.2024
Deferred income tax assets included directly in the equity:
Separate equity of branches	232	(62)	170
Total deferred income tax assets included directly in the equity	232	(62)	170

Change in the balance of deferred tax for the period from 1 January to 31 December 2023

(IN PLN'000)	AS AT 01.01.2023	PROFIT OR (LOSS)	AS AT 31.12.2023
Deferred income tax assets:
Cash and cash equivalents	70	(70)	-
Property, plant and equipment	451	(388)	63
Liabilities due to lease	-	2 885	2 885
Financial liabilities held for trading	13 805	(458)	13 347
Provisions for liabilities	549	331	880
Prepayments and deferred costs	4 882	1 214	6 096
Other liabilities	6 877	(1 810)	5 067
Tax losses of previous periods to be settled in future periods	5 953	(886)	5 067
Total deferred income tax assets	32 587	818	33 405

(IN PLN'000)	AS AT 01.01.2023	PROFIT OR (LOSS)	AS AT 31.12.2023
Deferred income tax provision:
Cash and cash equivalents	19	82	101
Financial assets at fair value through P&L	81 549	2 019	83 568
Other liabilities	-	316	316
Financial assets at amortised cost	1 481	(1 210)	271
Property, plant and equipment	335	2 453	2 788
Total deferred income tax provision	83 384	3 660	87 044
Deferred tax disclosed in profit or (loss)	-	(2 842)	-

(IN PLN'000)	AS AT 01.01.2023	INCLUDED IN EQUITY	AS AT 31.12.2023
Deferred income tax assets included directly in the equity:
Separate equity of branches	838	(606)	232
Total deferred income tax assets included directly in the equity	838	(606)	232

Change in the balance of deferred tax for the period from 1 January to 30 June 2023

(IN PLN'000)	AS AT 01.01.2023	PROFIT OR (LOSS)	AS AT 30.06.2023
Deferred income tax assets:
Cash and cash equivalents	70	(67)	3
Property, plant and equipment	451	(89)	362
Financial liabilities held for trading	13 805	(1 944)	11 861
Provisions for liabilities	549	241	790
Prepayments and deferred costs	4 882	31	4 913
Other liabilities	6 877	(1 708)	5 169
Tax losses of previous periods to be settled in future periods	5 953	(489)	5 464
Total deferred income tax assets	32 587	(4 025)	28 562

(IN PLN'000)	AS AT 01.01.2023	PROFIT OR (LOSS)	AS AT 30.06.2023
Deferred income tax provision:
Cash and cash equivalents	19	107	126
Financial assets at fair value through P&L	81 549	12 413	93 962
Other liabilities	-	3 497	3 497
Financial assets at amortised cost	1 481	(271)	1 210
Property, plant and equipment	335	(26)	309
Total deferred income tax provision	83 384	15 720	99 104
Deferred tax disclosed in profit or (loss)	-	(19 745)	-

(IN PLN'000)	AS AT 01.01.2023	INCLUDED IN EQUITY	AS AT 30.06.2023
Deferred income tax assets included directly in the equity:
Separate equity of branches	838	(426)	412
Total deferred income tax assets included directly in the equity	838	(426)	412

Data concerning the presentation of deferred income tax by country of origin and reconciliation of presentation in the statement of financial position as at 30 June 2024:

(IN PLN'000)		DATA ACCORDING TO THE NATURE OF ORIGIN	DATA PRESENTED IN THE STATEMENT OF FINANCIAL POSITION
	DEFERRED INCOME TAX ASSETS	DEFERRED INCOME TAX PROVISION	DEFERRED INCOME TAX ASSETS	DEFERRED INCOME TAX PROVISION
Poland	31 651	88 819	-	57 168
Czech Republic	101	17	84	-
Slovakia	165	-	165	-
Germany	2 263	498	2 263	498
France	2 927	-	2 927	-
Total	37 107	89 334	5 439	57 666

Data concerning the presentation of deferred income tax by country of origin and reconciliation of presentation in the statement of financial position as at 31 December 2023:

(IN PLN'000)		DATA ACCORDING TO THE NATURE OF ORIGIN	DATA PRESENTED IN THE STATEMENT OF FINANCIAL POSITION
	DEFERRED INCOME TAX ASSETS	DEFERRED INCOME TAX PROVISION	DEFERRED INCOME TAX ASSETS	DEFERRED INCOME TAX PROVISION
Poland	28 074	87 075	2 782	61 783
Czech Republic	86	8	78	-
Slovakia	75	93	-	18
Germany	2 120	100	2 120	100
France	3 050	-	3 050	-
Total	33 405	87 276	8 030	61 901

Data concerning the presentation of deferred income tax by country of origin and reconciliation of presentation in the statement of financial position as at 30 June 2023:

(IN PLN'000)		DATA ACCORDING TO THE NATURE OF ORIGIN	DATA PRESENTED IN THE STATEMENT OF FINANCIAL POSITION
	DEFERRED INCOME TAX ASSETS	DEFERRED INCOME TAX PROVISION	DEFERRED INCOME TAX ASSETS	DEFERRED INCOME TAX PROVISION
Poland	22 898	99 390	-	76 492
Czech Republic	110	25	85	-
Slovakia	85	101	-	16
Germany	2 194	-	2 194	-
France	3 275	-	3 275	-
Total	28 562	99 516	5 554	76 508

27. Related party transactions

27.1 Parent Company

As at 30 June 2024 XXZW Investment Group S.A. with its registered office in Luxembourg is the key shareholder of the Company, it holds 50,93% of shares and votes in the General Meeting as per Company's best knowledge. XXZW Investment Group S.A. prepares half-year condensed standalone financial statements.

Mr. Jakub Zabłocki is the ultimate Parent Company for the Company and XXZW Investment Group S.A.

27.2 Figures concerning related party transactions

As at 30 June 2024 Company has liabilities to Mr Jakub Zabłocki in the amount of PLN 56 thousand due to his investment account (as at 31 December 2023 PLN 74 thousand, as at 30 June 2023 PLN 24 thousand). In the period from 1 January to 30 June 2024 Company has noted profit from transactions with Mr Jakub Zabłocki in the amount PLN 9 thousand (in the analogical period of 2023 there was loss from transactions with Mr Jakub Zabłocki in the amount PLN 3 thousand). Moreover Mr Jakub Zabłocki is employed on the basis of work contract in subsidiary in Great Britain. In the period from 1 January to 30 June 2024 the paid gross salary and bonuses amounted to PLN 1 874 thousand and in the analogical period of 2023 amounted to PLN 2 165 thousand.

As at 30 June 2024 Company has liabilities to Mr Omar Arnaout in the amount of PLN 206 thousand due to his investment account. As at 31 December 2023 the Company has no liabilities to Mr Omar Arnaout due to his investment account. As at 30 June 2023 the Company has no liabilities to Mr Omar Arnauot due to his investment account.

As at 30 June 2024 Company has liabilities to Mr Filip Kaczmarzyk in the amount of PLN 166 thousand due to his investment account. As at 31 December 2023 the Company has liabilities to Mr Filip Kaczmarzyk in the amount of PLN 20 thousand due to his investment account. As at 30 June 2023 the Company has liabilities to Mr Filip Kaczmarzyk in the amount of PLN 19 thousand due to his investment account.

As at 30 June 2024 Company has no liabilities to Mr Paweł Szejko due to his investment account. As at 31 December 2023 Company has no liabilities to Mr Paweł Szejko due to his investment account. As at 30 June 2023 the Company has liabilities to Mr Paweł Szejko in the amount of PLN 2 thousand due to his investment account.

As at 30 June 2024 Company has liabilities to Mr Jakub Kubacki in the amount of PLN 37 thousand due to his investment account. As at 31 December 2023 the Company has liabilities to Mr Jakub Kubacki in the amount PLN 2 thousand due to his investment account. As at 30 June 2023 the Company has liabilities to Mr Jakub Kubacki in the amount PLN 6 thousand due to his investment account.

The table below presents the total number and nominal value of the Company's shares held directly by the persons managing and supervising Company, as at the date of submitting this report:

NAME AND SURNAME	FUNCTION	NUMBER OF SHARES HELD	TOTAL NOMINAL VALUE OF SHARES (in PLN)
Omar Arnaout	Chairman of the Management Board	50 717	2 536
Filip Kaczmarzyk	Board Member	35 501	1 775
Paweł Szejko	Board Member	29 358	1 468
Jakub Kubacki	Board Member	20 995	1 050
Andrzej Przybylski	Board Member	7 329	366

During the reporting period and until the date of submission of this report, the following changes in the ownership of the Company's shares by managing and supervising persons took place:

on the 25 April 2024 Omar Arnaout acquired jointly 20 456 shares of the Company;
on the 25 April 2024 Filip Kaczmarzyk acquired jointly 14 319 shares of the Company;
on the 25 April 2024 Paweł Szejko acquired jointly 10 228 shares of the Company;
on the 25 April 2024 Jakub Kubacki acquired jointly 7 500 shares of the Company;
on the 25 April 2024 Andrzej Przybylski acquired jointly 4 888 shares of the Company.

At the end of the reporting period and as at the date of submitting this report, the supervising persons did not have any shares or rights to the Company's shares.

27.3 Incomes and costs

The below table presents incomes and costs with related parties regarding the intermediary and liquidity agreements performed for the Company

(IN PLN'000)	SIX-MONTH PERIOD ENDED 30.06.2024		SIX-MONTH PERIOD ENDED 30.06.2023
	INCOMES	COSTS	INCOMES	COSTS
XTB Limited (UK)	12 287	(11 936)	8 538	(10 821)
XTB Limited (CY)	6 150	(1 681)	-	(2 178)
XTB International Limited	180 246	(78 430)	151 004	(65 702)
XTB MENA Limited	3 706	(12 453)	2 671	(11 979)

The below table presents incomes and costs with related parties regarding the trading infrastructure software and service agreements performed for the Company.

(IN PLN'000)	SERVICE	SIX-MONTH PERIOD ENDED 30.06.2024		SIX-MONTH PERIOD ENDED 30.06.2023
		INCOMES	COSTS	INCOMES	COSTS
XTB Limited (UK)	infrastructure software	129	(351)	246	(654)
X Open Hub Sp. z o.o.	infrastructure software	1 847	(1 567)	2 951	(1 989)
XTB Services Limited	marketing	-	(18 002)	-	(14 827)

27.4 Receivables

The below table presents receivables from related parties regarding the intermediary and liquidity agreements performed for the Company.

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
XTB Limited (UK)	21 819	19 978	17 962
XTB Limited (CY)	2 137	1 166	421
XTB International Limited	116 903	60 188	27 194
XTB MENA Limited	4 218	4 203	1 204

The below table presents receivables from related parties regarding the trading infrastructure software and service agreements performed for the Company

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
XTB Limited (UK)	2	30	34
X Open Hub Sp. z o.o.	323	350	712

27.5 Liabilities

The below table presents liabilities due to related parties regarding the intermediary and liquidity agreements performed for the Company.

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
XTB Limited (UK)	2 640	2 076	3 683
XTB Limited (CY)	1 629	1 036	1 317
XTB International Limited	38 651	29 593	32 253
XTB MENA Limited	5 415	2 569	1 727

The below table presents liabilities due to related parties regarding the trading infrastructure software and service agreements performed for the Company.

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
XTB Limited (UK)	65	142	82
X Open Hub Sp. z o.o.	540	1 626	316
XTB Services Limited	2 464	1 985	1 574

27.6 Benefits to Management Board and Supervisory Board

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Benefits to the Management Board members	(3 621)	(3 268)
Benefits to the Supervisory Board members	(177)	(130)
Total benefits to the Management Board and Supervisory Board	(3 798)	(3 398)

These benefits include base salaries, bonuses, contributions to social security paid for by the employer and supplementary benefits (money bills, healthcare, holiday allowances).

Members of the Management Board of the Company are included in the scheme of variable remuneration elements specified in note 21 of the financial statements.

27.7 Loans granted to the Management and Supervisory Board members

28. Employment

Total employment in the Company as at 30 June 2024 was 961 people. As at 31 December 2023, the employment was 826 people. As at 30 June 2023, the employment was 826 people. The list does not include persons on maternity leave, parental leave and benefits (dismissals for more than 33 days).

29. Supplementary information and explanations to the cash flow statement

29.1 Other adjustments

The "other adjustments" item includes the following adjustments:

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Change in the balance of differences from the conversion of branches	212	(1 018)
Foreign exchange differences on translation of movements in property, plant and equipment, and intangible assets	196	584
Change in other adjustments	408	(434)

Foreign exchange differences on translation of movements in tangible and intangible assets include the difference between the rates as at the opening balance and as at the closing balance adopted for valuation of the gross value of tangible and intangible assets in the Company's foreign entities and the difference between the rate applied to value amortization and depreciation cost of fixed assets and intangible assets in the Copmany's foreign entities and the rate of translation of amortization and depreciation amounts on such assets. This value results from the chart of movements in tangible and intangible assets.

29.2 Change in balance of other liabilities

The "Change in balance of other liabilities" item includes the following adjustments:

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Balance sheet change in other liabilities	33 143	565 143
Liabilities due to shareholders	-	(570 484)
Change in balance of other liabilities	33 143	(5 341)

29.3 Details of (Profit) Loss from investing activity

The "(Profit) Loss on investment activity" item includes the following adjustments:

(IN PLN'000)	SIX-MONTH PERIOD ENDED	SIX-MONTH PERIOD ENDED
	30.06.2024	30.06.2023
Loss on liquidation and sale of fixed assets	26	1 632
Profit from the liquidation and sale of fixed assets	(44)	(3)
Result of Bonds	(15 008)	(17 505)
Impairment of investments in subsidiaries	-	125
Dividends received from subsidiaries	-	(6 740)
(Profit) Loss on investment activity	(15 026)	(22 491)

30. Off-balance sheet items

30.1 Nominal value of financial instruments

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Index CFDs	3 426 251	5 000 602	4 446 034
Currency CFDs	2 973 285	2 791 448	2 651 223
Commodity CFDs	2 474 906	1 900 616	2 166 950
Stock and ETP CFDs	1 026 616	746 937	769 142
Bond CFDs	7 540	7 344	35 185
Total financial instruments	9 908 598	10 446 947	10 068 534

30.2 Customers' financial instruments

Presented below is a list of customers' instruments deposited in the accounts of the brokerage house:

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Listed stocks, ETP and rights to stocks registered in customers' securities accounts	9 501 532	6 147 388	4 883 502
Other securities registered in customers' securities accounts	207	207	207
Total customers' financial instruments	9 501 739	6 147 595	4 883 709

30.3 Transaction limits

The amount of unused transaction limits granted to related entities was as at 30 June 2024 PLN 90 706 thousand, as at 31 December 2023 was PLN 94 592 thousand and as at 30 June 2023 was PLN 87 550 thousand

31. Items regarding the compensation scheme

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
1. Contributions made to the compensation scheme
a) opening balance	13 986	10 569	10 569
- increases	1 841	3 417	1 659
b) closing balance	15 827	13 986	12 228
2. XTB's share in the profits from the compensation scheme	1 534	1 170	910

32. Capital management

The Company's principles of capital management are established in the "Capital management policy at XTB S.A.". The document is approved by the Company's Supervisory Board.

The policy defines the basic concepts, objectives and rules which constitute the Company's capital strategy. It specifies, in particular, long-term capital objectives, the current and preferred capital structure, contingency plans and capital planning principles. The policy is updated as appropriate so as to reflect the development in the Company and its business environment.

The objective of the capital management policy is to ensure balanced long-term growth for the shareholders and to maintain sufficient capital to enable the Company to operate in a prudent and efficient manner. This objective is attained by maintaining an appropriate capital base, taking into account the Company's risk profile and prudential regulations, as well as risk-based capital management in view of the operating goals.

Determination of capital-related goals is essential for equity management and serves as a basic reference in the context of capital planning, allocation and contingency plans. The Company establishes capital-related objectives which ensure a stable capital base, achievement of its capital strategy goals (in accordance with its general principles), and also match the Company's risk appetite. To establish its capital-related goals, the Company takes into consideration its strategic plans and expected growth of operations as well as external conditions, including the macroeconomic situation and other business environment factors. The capital-related goals are set for a horizon similar to that of the business strategy and are approved by the Management Board.

Capital planning is focused on an assessment of the Company's current and future capital requirements (both regulatory and internal), and on comparing them with the current and projected levels of available capital. The Company has prepared contingency plans to be launched in the event of a capital liquidity shortage, described in detail in the "Capital management policy at XTB S.A.".

As part of ICARAP, the Company assesses its internal capital in order to define the overall capital requirement to cover all significant risks in the Company's operations and evaluates its quality. The Company estimates internal capital necessary to cover identified significant risks in compliance with procedures adopted by the Company and taking into account stress test results.

The Company is obligated to maintain the capitals (equity) to cover the higher of the following values:

capital requirements calculated in accordance with Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019 on prudential requirements for investment firms and amending Regulations (EU) No 1093/2010, (EU) No 575/2013, (EU) No 600/2014 and (EU) No 806/2014 (IFR)
internal capital estimated in accordance with the Regulation of the Minister of Development and Finance of 8 December 2021 on the assessment of internal capital and liquid assets, risk management system, supervisory audit and evaluation, as well as remuneration policy in a brokerage house and a small brokerage house.

The capital requirement calculated in accordance with the IFR regulation is the higher of:

fixed overheads requirement
permanent minimum initial capital requirement
K-factor capital requirement

At date of preparation of the financial statement the highest of the above values for the Company is the K-factor capital requirement.

The Company calculates own funds in accordance with Part Two of the European Parliament and of the Council (EU) 2019/2033 of 27 November 2019 on prudential requirements for investment firms and amending Regulations (EU) No 1093/2010, (EU) No 575 / 2013, (EU) No 600/2014 and (EU) No 806/2014 ("IFR").

The principles for calculation of own funds are established in the CRR and IFR Regulations, "Procedure for calculating capital adequacy ratios of XTB S.A." the Company and are not regulated by IFRS.

The Company currently has only own funds of the best category - Tier I.

The Company is not required to maintain capital buffers under the Act on Macroprudential Supervision of the Financial System and Crisis Management in the Financial System.

Key values in capital management:

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
The Company's own funds	1 114 183	916 987	916 271
Tier I Capital	1 114 183	916 987	916 271
Common Equity Tier I capital	1 114 183	916 987	916 271
Total capital requirement IFR	501 853	469 149	557 549
Total capital ratio IFR	222,0%	195,5%	164,3%
Minimal required total capital ratio including buffers (article 9 section1 letter c) of IFR)	100%	100%	100%

The mandatory capital adequacy was not breached in the periods covered by the condensed half-year condensed standalone financial statements.

(IN PLN'000)	AS AT 30.06.2024	AVERAGE MONTHLY VALUE IN THE PERIOD	AS AT 31.12.2023	AS AT 30.06.2023
1. Own funds	1 114 183	956 248	916 987	916 271
1.1. Base capital Tier I without deductions	1 122 449	967 712	925 511	925 511
1.2. Supplementary capital Tier I	-	-	-	-
1.3. Items decreasing share capitals	(8 266)	(11 464)	(8 524)	(9 240)
I. Own funds	1 114 183	956 248	916 987	916 271
1. Risk to Client, including:	12 436	11 883	11 230	10 486
1.1. K-AUM	-	-	-	-
1.2. K-CMH	9 845	9 530	9 174	8 821
1.3. K-ASA	2 591	2 353	2 056	1 665
1.4. K-COH	-	-	-	-
2. Risk to Market, including:	350 015	395 112	311 720	384 825
2.1. K-NPR	350 015	395 112	311 720	384 825
2.2. K-CMG	-	-	-	-
3. Risk to Firm, including:	139 402	155 419	146 199	162 238
3.1. K-TCD	136 754	152 705	143 381	159 296
3.2. K-DTF	2 648	2 714	2 818	2 942
3.3. K-CON	-	-	-	-
II. Total K-factor capital requirement (IFR)	501 853	562 414	469 149	557 549

The Company calculates the requirement for fixed indirect costs. However, it is significantly lower than the capital requirement for the K-factor.

33. Risk management

The Company is exposed to a variety of risks connected with its current operations. The purpose of risk management is to make sure that the Company takes risk in a conscious and controlled manner. Risk management policies are formulated in order to identify and measure the risks taken, as well as to establish appropriate limits to mitigate such risk on a regular basis.

A Risk Management Committee composed of members of the Supervisory Board has been established in the Company. The tasks of the Committee include the development of a document on risk appetite, giving opinions on the risk management strategy, supporting the Supervisory Board in supervising the implementation of the risk management strategy by the Management Board, verifying the remuneration policy and its implementation rules in terms of adjusting the remuneration system to the risk faced by the Management Board. exposed brokerage house, to its capital, liquidity, and the probability and timing of earning income.

The Risk Control Department supports the Management Board in shaping, reviewing and updating the ICARAP rules in the event of the emergence of new types of risk, significant changes in the strategy and action plans. This department also monitors suitability and effectiveness of the implemented risk management system, identifies, monitors and controls the risks of the Company's own investments, determines the total capital requirements and estimates internal capital.

The Risk Control Department is managed by the Member of the Management Board responsible for the supervision of the risk management system.

The Company's Supervisory Board approves risk management system.

33.1 Fair value

Fair value is the price that would be received to sell an asset or paid to transfer a liability in a normal transaction between market participants at the measurement date.

33.1.1 Carrying amount and fair value

33.1.2 Fair value hierarchy

The Company discloses fair value measurement of financial instruments carried at fair value, applying the following fair value hierarchy which reflects the significance of input data used to establish the fair value:

Level 1: quoted prices (unadjusted) in active markets for the assets or liabilities;
Level 2: input data other than quoted prices classified in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. based on prices). This category includes financial assets and liabilities measured using prices quoted in active markets for identical assets, prices quoted in active markets for identical assets considered less active or other valuation methods where all significant inputs originate directly or indirectly from the markets;
Level 3: input data for valuation of a given asset or liability is not based on observable market data (unobservable inputs).

(IN PLN'000)	30.06.2024
	LEVEL 1	LEVEL 2	LEVEL 3	TOTAL
Financial assets
Financial assets at fair value through P&L	509 902	476 720	-	986 622
Total financial assets	509 902	476 720	-	986 622
Financial liabilities
Financial liabilities held for trading	-	99 217	-	99 217
Total financial liabilities	-	99 217	-	99 217

(IN PLN'000)	31.12.2023
	LEVEL 1	LEVEL 2	LEVEL 3	TOTAL
Financial assets
Financial assets at fair value through P&L	417 930	434 857	-	852 787
Total financial assets	417 930	434 857	-	852 787
Financial liabilities
Financial liabilities held for trading	-	68 017	-	68 017
Total financial liabilities	-	68 017	-	68 017

	30.06.2023
(IN PLN'000)	LEVEL 1	LEVEL 2	LEVEL 3	TOTAL
Financial assets
Financial assets at fair value through P&L	391 985	486 464	-	878 449
Total financial assets	391 985	486 464	-	878 449
Financial liabilities
Financial liabilities held for trading	-	59 471	-	59 471
Total financial liabilities	-	59 471	-	59 471

In the periods covered by the condensed half-year condensed standalone financial statements, there were no transfers of items between the levels of the fair value hierarchy.

The fair value of contracts for differences (CFDs) is determined based on the market prices of underlying instruments, derived from independent sources, i.e. from reliable liquidity suppliers and reputable news, adjusted for the spread specified by the Company. The valuation is performed using closing prices or the last bid and ask prices. CFDs are measured as the difference between the current price and the opening price, taking account of accrued commissions and swap points.

The impact of adjustments due to credit risk of the contractor, estimated by the Company, was insignificant from the point of view of the general estimation of derivative transactions concluded by the Company. Therefore, the Company does not recognise the impact of unobservable input data used for the estimation of derivative transactions as significant and, pursuant to IFRS 13.73, does not classify such transactions as level 3 of the fair value hierarchy.

33.2 Market risk

In the period covered by these half-year condensed standalone financial statements, the Company entered into OTC contracts for differences (CFDs). The Company may also acquire securities and enter into forward contracts on its own account on regulated stock markets.

The following risks are specified, depending on the risk factor:

Currency risk connected with fluctuations of exchange rates
Interest rate risk
Commodity price risk
Equity investment price risk

The Company's key market risk management objective is to mitigate the impact of such risk on the profitability of its operations. The Company's practice in this area is consistent with the following principles.

As part of the internal procedures, the Company applies limits to mitigate market risk connected with maintaining open positions on financial instruments. These are, in particular: a maximum open position on a given instrument, currency exposure limits, maximum value of a single instruction. The Trading Department monitors open positions subject to limits on a current basis, and in case of excesses, enters into appropriate hedging transactions. The Risk Control Department reviews the limit usage on a regular basis, and controls the hedges entered into.

33.2.1 Currency risk

The Company enters into transactions principally in instruments bearing currency risk. Aside from transactions where the FX rate is an underlying instrument, the Company also offers instruments which price is denominated in foreign currencies. Also, the Company has assets in foreign currencies, i.e. the so-called currency positions. Currency positions include the brokerage's own funds denominated in foreign currencies held for the purpose of settling transactions in foreign markets and connected with foreign operations.

The carrying amount of the Company's assets and liabilities in foreign currencies as at the balance sheet date is presented below. The values for all base currencies are expressed in PLN'000:

Assets and liabilities denominated in foreign currencies as at 30 June 2024 (value in foreign currencies converted to PLN)

(IN PLN'000)	USD	EUR	GBP	CZK	HUF	RON	OTHER CURRENCIES	TOTAL	CARRYING AMOUNT
Assets
Cash and cash equivalents	741 925	1 466 916	6 126	257 935	3 962	68 156	6 112	2 551 132	3 668 219
Financial assets held for trading	166 097	144 198	1 589	40 547	1 395	8 296	13 158	375 280	986 622
Investments in subsidiaries	-	-	-	-	-	-	-	-	58 090
Financial assets at amortised cost	103 992	9 679	5 482	1 269	4 030	448	26 799	151 699	174 190
Prepayments and deferred costs	-	1 180	-	68	-	9	-	1 257	16 735
Intangible assets	-	2	-	-	-	-	-	2	912
Property, plant and equipment	-	15 087	-	3 724	-	186	-	18 997	55 447
Income tax receivables	-	-	-	-	-	-	-	-	-
Deferred income tax assets	-	5 354	-	85	-	-	-	5 439	5 439
Total assets	1 012 014	1 642 416	13 197	303 628	9 387	77 095	46 069	3 103 806	4 965 654

Liabilities
Amounts due to customers	409 422	1 308 433	1 000	234 264	3 191	34 835	1 008	1 992 153	3 062 647
Financial liabilities held for trading	41 066	24 493	695	7 793	85	1 166	946	76 244	99 217
Lease liabilities	-	26 765	-	74	-	-	-	26 839	26 839
Other liabilities	23 176	43 314	2 378	4 227	5	1 446	284	74 830	119 474
Provisions for liabilities	-	3 279	-	-	-	-	-	3 279	3 577
Income tax liabilities	-	548	-	80	-	40	-	668	4 799
Deferred income tax provision	-	498	-	-	-	-	-	498	57 666
Total liabilities	473 664	1 407 330	4 073	246 438	3 281	37 487	2 238	2 174 511	3 374 219

Assets and liabilities denominated in foreign currencies as at 31 December 2023 (value in foreign currencies converted to PLN)

(IN PLN'000)	USD	EUR	GBP	CZK	HUF	RON	OTHER CURRENCIES	TOTAL	CARRYING AMOUNT
Assets
Cash and cash equivalents	622 725	1 076 824	4 357	181 169	4 925	27 360		6 206 1 923 566	3 414 342
Financial assets held for trading	85 566	135 694	1 138	39 728	1 100	7 310	10 865	281 401	852 787
Investments in subsidiaries	-	-	-	-	-	-	-	-	49 429
Financial assets at amortised cost	66 294	10 850	3 176	933	2 159	322	9 137	92 871	110 347
Prepayments and deferred costs	-	497	-	102	-	6	-	605	14 454
Intangible assets	-	2	-	-	-	-	-	2	1 086
Property, plant and equipment	-	13 804	-	4 093	-	181	-	18 078	47 563
Income tax receivables	-	129	-	-	-	-	-	129	129
Deferred income tax assets	-	5 170	-	78	-	-	-	5 248	8 030
Total assets	774 585	1 242 970	8 671	226 103	8 184	35 179		26 208 2 321 900	4 498 167

Liabilities
Amounts due to customers	361 725	1 018 802	2	185 441	3 928	29 724		1 111 1 600 733	2 500 414
Financial liabilities held for trading	18 968	20 735	643	4 807	283	895	1 299	47 630	68 017
Lease liabilities	-	24 707	-	2 494	-	-	-	27 201	27 201
Other liabilities	14 791	22 256	2 049	2 635	5	1 038	192	42 966	86 331
Provisions for liabilities	-	3 434	-	-	-	-	-	3 434	3 732
Income tax liabilities	-	145	-	80	-	15	-	240	22 641
Deferred income tax provision	-	117	-	-	-	-	-	117	61 901
Total liabilities	395 484	1 090 196	2 694	195 457	4 216	31 672		2 602 1 722 321	2 770 237

Assets and liabilities denominated in foreign currencies as at 30 June 2023 (value in foreign currencies converted to PLN)

(IN PLN'000)	USD	EUR	GBP	CZK	HUF	RON	OTHER CURRENCIES	TOTAL	CARRYING AMOUNT
Assets
Cash and cash equivalents	501 292	967 158	5 056	198 336	5 104	24 848		6 420 1 708 214	3 375 262
Financial assets held for trading	79 816	159 251	865	59 265	1 575	10 189	6 017	316 978	878 449
Investments in subsidiaries	-	-	-	-	-	-	-	-	49 227
Financial assets at amortised cost	37 694	17 753	1 464	1 465	2 176	183	4 298	65 033	83 574
Prepayments and deferred costs	-	1 102	-	68	-	92	-	1 262	15 343
Intangible assets	-	3	-	1	-	-	-	4	1 251
Property, plant and equipment	-	13 572	-	4 702	-	79	-	18 353	47 316
Income tax receivables	-	62	-	-	-	-	-	62	946
Deferred income tax assets	-	5 469	-	85	-	-	-	5 554	5 554
Total assets	618 802	1 164 370	7 385	263 922	8 855	35 391		16 735 2 115 460	4 456 922

Liabilities
Amounts due to customers	271 714	940 449	1 731	223 686	4 765	31 023		802 1 474 170	2 293 571
Financial liabilities held for trading	17 373	17 792	764	5 188	171	630	548	42 466	59 471
Lease liabilities	-	26 566	-	2 817	-	-	-	29 383	29 383
Other liabilities	18 689	15 540	2 484	5 166	18	1 108	216	43 221	643 746
Provisions for liabilities	-	3 790	-	19	-	-	-	3 809	4 080
Income tax liabilities	-	326	-	99	-	51	-	476	476
Deferred income tax provision	-	17	-	-	-	-	-	17	76 508
Total liabilities	307 776	1 004 480	4 979	236 975	4 954	32 812		1 566 1 593 542	3 107 235

A change in exchange rates, in particular, the PLN exchange rate, affects the balance sheet valuation of the Company's financial instruments and the result on translation of foreign currency balances of other balance sheet items. Sensitivity to exchange rate fluctuations was calculated with the assumption that all foreign currency rates change by ±5% to PLN. The carrying amount of financial instruments was revalued.

The sensitivity of the Company's equity and profit before tax to a 5% increase or decrease of the PLN exchange rate is presented below:

	SIX-MONTH PERIOD ENDED 30.06.2024		SIX-MONTH PERIOD ENDED 30.06.2023
(IN PLN'000)	INCREASE IN EXCHANGE RATES BY 5%	DECREASE IN EXCHANGE RATES BY 5%	INCREASE IN EXCHANGE RATES BY 5%	DECREASE IN EXCHANGE RATES BY 5%
Income (expenses) of the period	52 275	(52 275)	24 910	(24 910)
Equity, of which:	1 106	(1 106)	942	(942)
Foreign exchange differences on translation	1 106	(1 106)	942	(942)

The sensitivity of equity is connected with foreign exchange differences in the translation of value in functional currencies of the foreign operations.

33.2.2 Interest rate risk

Interest rate risk is the risk of exposure of the current and future financial result and equity of the Company to the adverse impact of exchange rate fluctuations. Such risk may result from the contracts entered into by the Company, where receivables or liabilities are dependent upon exchange rates as well as from holding assets or liabilities dependent on exchange rates.

The basic interest rate risk for the Company is the mismatch of interest rates on bank accounts and bank deposits in which the Company invests its own cash, the mismatch in the interest rates the Company pays its customers for holding free funds in their cash accounts, and the impact of interest rate volatility on the valuation of the Company's treasury, governmentguaranteed bonds and corporation bonds.

In addition, the source of the Company's profit variability associated with the level of market interest rates, are amounts paid and received in connection with the occurrence of the difference in interest rates for different currencies (swap points) as well as potential debt instruments.

Since the Company maintains a low duration of assets and liabilities and minimises the duration gap, sensitivity of the market value of assets and liabilities to calculations of market interest rates is very low. However, due to the significant involvement of XTB in Treasury bonds and government-guaranteed bonds, the interest rate risk was considered significant in the Company's operations.

Sensitivity analysis of financial assets and liabilities where cash flows are exposed to interest rate risk

The structure of financial assets and liabilities where cash flows are exposed to interest rate risk is as follows:

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Financial assets
Cash – in current bank accounts	3 668 219	3 676 756	3 375 262
Debt instruments	430 828	401 265	379 882
Total financial assets	4 099 047	4 078 021	3 755 144
Financial liabilities
Amounts due to clients	1 916 957	1 505 702	-
Other liabilities	26 839	29 603	29 383
Total financial liabilities	1 943 796	1 535 305	29 383

(IN PLN'000)	SIX-MONTH PERIOD ENDED		SIX-MONTH PERIOD ENDED
	30.06.2024		30.06.2023
	INCREASE	DECREASE	INCREASE	DECREASE
	BY 50 PB	BY 50 PB	BY 50 PB	BY 50 PB
Profit/(loss) before tax	3 405	(3 405)	15 016	(15 016)
Short-term deposits	-	-	2 500	(2 500)

Sensitivity analysis of financial assets and liabilities whose fair value is exposed to interest rate risk

In the period covered by these half-year condensed standalone financial statements and in the comparative period, the Company hold financial assets which fair value would be exposed to the risk of changes in interest rates as a Treasury bonds, Guaranteed Treasury Bonds and corporate bonds. Sensitivity analysis exposed to interest rate risk by 50 base points (BP) shift of yield curves- on profit before tax is presented below.

(IN PLN'000)	SIX-MONTH PERIOD ENDED		SIX-MONTH PERIOD ENDED
	30.06.2024		30.06.2023
	INCREASE	DECREASE	INCREASE	DECREASE
	BY 50 PB	BY 50 PB	BY 50 PB	BY 50 PB
Profit/(loss) before tax	(2 794)	2 875	(2 230)	2 282

33.2.3 Other price risk

Other price risk is exposure of the Company's financial position to unfavorable changes in the prices of commodities, equity investments (equity, indices) and debt instruments (in a scope not resulting from interest rates).

The carrying amount of financial instruments exposed to other price risk is presented below:

(IN PLN'000)	30.06.2024	31.12.2023	30.06.2023
Financial assets at fair value through P&L
Commodity
Precious metals	37 238	20 476	32 861
Base metals	2 203	1 868	1 872
Other	88 881	98 843	101 069
Total commodity	128 322	121 187	135 802
Equity instruments
Stocks and ETP	180 924	85 118	82 692
Indicies	133 687	171 713	190 444
Total equity instruments	314 611	256 831	273 136
Debt instruments	174	119	2 840
Total financial assets at fair value through P&L	443 107	378 137	411 778
Financial liabilities held for trading
Commodity
Precious metals	2 706	1 857	2 130
Base metals	167	63	95
Other	6 874	4 522	5 859
Total commodity	9 747	6 442	8 084
Equity instruments
Stocks and ETP	37 477	26 002	27 732
Indicies	14 082	12 180	10 672
Total equity instruments	51 559	38 182	38 404
Debt instruments	21	51	270
Total financial liabilities held for trading	61 327	44 675	46 758

The Company's sensitivity to fluctuations in the prices of specific commodities and equity investments by ±5 per cent with regard to equity and profit before tax is presented below.

	SIX-MONTH PERIOD ENDED 30.06.2024		SIX-MONTH PERIOD ENDED 30.06.2023
(IN PLN'000)	INCREASE BY 5%	DECREASE BY 5%	INCREASE BY 5%	DECREASE BY 5%
Income/(expenses) for the period
Commodity
Precious metals	(11 267)	11 267	(11 912)	11 912
Base metals	(1 279)	1 279	(837)	837
Other	(7 299)	7 299	(11 140)	11 140
Total commodity	(19 845)	19 845	(23 889)	23 889
Equity instruments
Stocks and ETPs	4 289	(4 289)	85	(85)
Indicies	56 558	(56 558)	128 141	(128 141)
Total equity instruments	60 847	(60 847)	128 226	(128 226)
Debt instruments	(364)	364	(287)	287
Total income/(expenses) for the period	40 638	(40 638)	104 050	(104 050)

33.3 Liquidity risk

For the Company, liquidity risk is the risk of losing its payment liquidity, i.e. the risk of losing capacity to finance its assets and to perform its obligations in a timely manner in the course of normal operations or in other predictable circumstances with no risk of loss. In its liquidity analysis, the Company takes into consideration current possibility of generation of liquid assets, future needs, alternative scenarios and payment liquidity contingency plans.

The objective of liquidity management in XTB is to maintain the amount of cash on the appropriate bank accounts that will cover all the operations necessary to be carried on such accounts. For this purpose, the Company has implemented, among others, limits for the concentration of cash in banks by forming one banking group in order to limit excessive liquidity concentration in related parties. In order to manage liquidity in relation to certain bank accounts associated with the operations of financial instruments, the Company uses the liquidity model of which the essence is to determine the safe area of the state of free cash flow that does not require corrective action. Where the upper limit is achieved, the Company makes a transfer to the appropriate current account corresponding to the surplus above the optimum level. Similarly, if the cash in the account falls to the lower limit, the Company makes a transfer of funds from the current account to the appropriate account in order to bring cash to the optimum level.

The procedure also provides for the possibility of deviating from its application, and such procedure requires the consent of at least two members of the Company's Management. Information on deviations is transmitted to the Risk Control Department of the Company.

The Company has also implemented liquidity contingency plans, which were not used in the period covered by the financial statements and in the comparative period, due to the fact that the amount of the most liquid assets (own cash and cash equivalents and Treasury bonds and bonds guaranteed by the Treasury) greatly exceeds the amount of liabilities.

As part of ongoing business and the tasks related to liquidity risk management, the managers of appropriate organisational units of the Company monitor the balance of funds deposited in the account in the context of planned liquidity needs related to the Company's operating activities. In the ICARAP process, the Company, among other things, identifies factors relevant to liquidity and funding risks and assesses the adequacy of the level of liquid assets relative to the estimated level to ensure coverage of both current and future as well as potential extreme liquidity needs. Supervision and control activities over the balance of cash accounts are also carried out by the Risk Control Department on a daily basis.

In accordance with the IFR regulation, from 26 June 2021, the Company maintains an amount of liquid assets equivalent to at least one third of the requirement for fixed indirect costs. The Company's liquid assets for the purposes of IFR include, inter alia, unencumbered own funds deposited in bank accounts and Treasury bonds or bonds guaranteed by the Treasury denominated in PLN. As of the date of these financial statements, the Company had a much higher level of liquid assets than required by the IFR regulation.

Contractual payment periods of financial assets and liabilities as at 30 June 2024

(IN PLN'000)	CARRYING AMOUNT	CONTRACTUAL CASH FLOWS	UP TO 3 MONTHS	3 MONTHS TO 1 YEAR	1 – 5 YEARS	OVER 5 YEARS	WITH NO SPECIFIED MATURITY
Financial assets
Cash and cash equivalents	3 668 219	3 668 219	3 668 219	-	-	-	-
Financial assets at fair value through P&L
Listed stocks and ETPs	99 114	99 114	99 114	-	-	-	-
Bonds	430 827	430 827	430 827	-	-	-	-
CFDs	456 681	456 681	456 681	-	-	-	-
Total financial assets at fair value through P&L	986 622	986 622	986 622	-	-	-	-
Investments in subsidiaries	58 090	58 090	-	-	-	-	58 090
Financial assets at amortised cost	174 190	174 190	154 699	-	3 791	-	15 700
Total financial assets	4 887 121	4 887 121	4 809 540	-	3 791	-	73 790
Financial liabilities
Amounts due to clients	3 062 647	3 062 647	3 062 647	-	-	-	-
Financial liabilities held for trading
CFDs	99 217	99 217	99 217	-	-	-	-
Total financial liabilities held for trading	99 217	99 217	99 217	-	-	-	-
Liabilities due to lease	26 839	26 839	1 921	6 078	16 358	2 482	-
Other liabilities	119 474	119 474	103 548	8 882	-	-	7 044
Total financial liabilities	3 308 177	3 308 177	3 267 333	14 960	16 358	2 482	7 044
Contractual liquidity gap in maturities (payment dates)			1 542 207	(14 960)	(12 567)	(2 482)	66 746
Contractual cumulative liquidity gap			1 542 207	1 527 247	1 514 680	1 512 198	1 578 944

The Company does not expect the cash flows presented in the maturity analysis to occur significantly earlier or in significantly different amounts.

Contractual payment periods of financial assets and liabilities as at 31 December 2023

(IN PLN'000)	CARRYING AMOUNT	CONTRACTUAL CASH FLOWS	UP TO 3 MONTHS	3 MONTHS TO 1 YEAR	1 – 5 YEARS	OVER 5 YEARS	WITH NO SPECIFIED MATURITY
Financial assets
Cash and cash equivalents	3 414 342	3 414 342	3 414 342	-	-	-	-
Financial assets at fair value through P&L
Listed stocks and ETPs	16 665	16 665	16 665	-	-	-	-
Bonds	401 265	401 265	401 265	-	-	-	-
CFDs	434 857	434 857	434 857	-	-	-	-
Total financial assets at fair value through P&L	852 787	852 787	852 787	-	-	-	-
Investments in subsidiaries	49 429	49 429	-	-	-	-	49 429
Financial assets at amortised cost	110 347	110 347	91 872	-	4 313	-	14 162
Total financial assets	4 426 905	4 426 905	4 359 001	-	4 313	-	63 591
Financial liabilities
Amounts due to clients	2 500 414	2 500 414	2 500 414	-	-	-	-
Financial liabilities held for trading
CFDs	68 017	68 017	68 017	-	-	-	-
Total financial liabilities held for trading	68 017	68 017	68 017	-	-	-	-
Liabilities due to lease	27 201	27 201	1 927	8 053	17 121	100	-
Other liabilities	86 331	86 331	60 917	16 180	-	-	9 234
Total financial liabilities	2 681 963	2 681 963	2 631 275	24 233	17 121	100	9 234
Contractual liquidity gap in maturities (payment dates)			1 727 726	(24 233)	(12 808)	(100)	54 357
Contractual cumulative liquidity gap			1 727 726	1 703 493	1 690 685	1 690 585	1 744 942

The Company does not expect the cash flows presented in the maturity analysis to occur significantly earlier or in significantly different amounts.

Contractual payment periods of financial assets and liabilities as at 30 June 2023

(IN PLN'000)	CARRYING AMOUNT	CONTRACTUAL CASH FLOWS	UP TO 3 MONTHS	3 MONTHS TO 1 YEAR	1 – 5 YEARS	OVER 5 YEARS	WITH NO SPECIFIED MATURITY
Financial assets
Cash and cash equivalents	3 375 262	3 375 262	3 375 262	-	-	-	-
Financial assets at fair value through P&L
Listed stocks and ETPs	12 103	12 103	12 103	-	-	-	-
Bonds	379 882	379 882	379 882
CFDs	486 464	486 464	486 464	-	-	-	-
Total financial assets at fair value through P&L	878 449	878 449	878 449	-	-	-	-
Investments in subsidiaries	49 227	49 227	-	-	-	-	49 227
Financial assets at amortised cost	83 574	83 574	65 316	-	4 289	-	13 969
Total financial assets	4 386 512	4 386 512	4 319 027	-	4 289	-	63 196
Financial liabilities
Amounts due to clients	2 293 571	2 293 571	2 293 571	-	-	-	-
Financial liabilities held for trading
CFDs	59 471	59 471	59 471	-	-	-	-
Total financial liabilities held for trading	59 471	59 471	59 471	-	-	-	-
Liabilities due to lease	29 383	29 383	1 362	5 516	18 650	3 855	-
Other liabilities	643 746	643 746	609 830	22 870	-	-	11 046
Total financial liabilities	3 026 171	3 026 171	2 964 234	28 386	18 650	3 855	11 046
Contractual liquidity gap in maturities (payment dates)			1 354 793	(28 386)	(14 361)	(3 855)	52 150
Contractual cumulative liquidity gap			1 354 793	1 326 407	1 312 046	1 308 191	1 360 341

The Company does not expect the cash flows presented in the maturity analysis to occur significantly earlier or in significantly different amounts.

33.4 Credit risk

The chart below shows the carrying amounts of financial assets corresponding to the Company's exposure to credit risk:

		30.06.2024		31.12.2023	30.06.2023
(IN PLN'000)	CARRYING AMOUNT	MAXIMUM EXPOSURE TO CREDIT RISK	CARRYING AMOUNT	MAXIMUM EXPOSURE TO CREDIT RISK	CARRYING AMOUNT	MAXIMUM EXPOSURE TO CREDIT RISK
Financial assets
Cash and cash equivalents	3 668 219	3 668 219	3 414 342	3 414 342	3 375 262	3 375 262
Financial assets at fair value through P&L *	986 622	37 781	852 787	43 456	878 449	34 916
Investments in subsidiaries	58 090	58 090	49 429	49 429	49 227	49 227
Financial assets at amortised cost	174 190	174 190	110 347	110 347	83 574	83 574
Total financial assets	4 887 121	3 938 280	4 426 905	3 617 574	4 386 512	3 542 979

* As at 30 June 2024 the maximum exposure to credit risk for financial assets held for trading, not including the collateral received, was PLN 456 680 thousand (as at 31 December 2023: PLN 434 857 thousand, as at 30 June 2023: PLN 486 463 thousand). This exposure was collateralized with clients' cash, which, as at 30 June 2024, covered the amount of PLN 418 900 thousand (as at 31 December 2023: PLN 391 402 thousand, as at 30 June 2023: PLN 451 547 thousand). Exposures to credit risk connected with transactions with brokers as well as exposures to the Warsaw Stock Exchange were not collateralized.

The credit quality of the Company's financial assets is assessed based on external credit quality assessments, risk weights assigned based on the CRR, taking account of the mechanisms used to mitigate credit risk, the number of days past due, and the probability of counterparty insolvency.

The Company's assets fall within the following credit rating brackets:

Fitch Ratings from F1+ to F3
Standard & Poor's Ratings Services from A-1 to A-2
Moody's from P-1 to P-2

Cash and cash equivalents

Credit risk connected with cash and cash equivalents is related to the fact that own cash and clients' cash is held in bank accounts. Credit risk involving cash is mitigated by selecting banks with a high credit rating granted by international rating agencies and through diversification of banks with which accounts are opened. As at 30 June 2024, the Company had deposit accounts in 29 banks and institutions (as at 31 December 2023: in 27 banks and institutions, as at 30 June 2023: 26 banks and institutions). The ten largest exposures are presented in the table below (numbering of banks and institutions set uniformly for the reporting and comparative period and the counterparty credit risk concentration table):

ENTITY	30.06.2024	ENTITY		ENTITY	30.06.2023
	(IN PLN'000)		(IN PLN'000)		(IN PLN'000)
Bank 1	1 639 765	Bank 1	1 659 423	Bank 2	1 077 639
Bank 2	1 313 366	Bank 2	1 132 891	Bank 9	501 986
Institution 1	128 146	Institution 1	120 562	Bank 7	329 397
Institution 2	98 219	Bank 7	92 926	Bank 4	302 915
Institution 3	59 921	Institution 2	91 778	Bank 10	200 846
Bank 3	56 473	Bank 4	42 060	Bank 1	195 323
Bank 4	50 796	Bank 6	36 840	Bank 5	125 378
Bank 5	49 396	Bank 8	29 106	Bank 11	113 706
Bank 6	48 502	Institution 3	26 923	Institution 1	97 708
Institution 4	43 606	Institution 5	26 178	Bank 3	88 583
Other	180 029	Other	155 655	Other	341 781
Total	3 668 219	Total	3 414 342	Total	3 375 262

The table below presents a short-term assessment of the credit quality of the Company's cash and cash equivalents according to credit quality steps determined based on external credit quality assessments (where step 1 means the best credit quality and step 6 – the worst) and the risk weights assigned based on the CRR. Long-term assessment of the credit quality were used in case of exposures without short-term assessment of the credit quality or maturity longer than 3 months.

	CARRYING AMOUNT (IN PLN'000)
CREDIT QUALITY STEPS	30.06.2024	31.12.2023	30.06.2023
Cash and cash equivalent
Step 1	3 426 791	2 639 997	2 408 621
Step 2	5 947	4 544	4 227
Step 3	235 481	769 801	962 414
Total	3 668 219	3 414 342	3 375 262

Financial assets at fair value through P&L

Financial assets at fair value through P&L result from transactions in financial instruments entered into with the Company's customers and the related hedging transactions.

Credit risk involving financial assets at fair value through P&L is connected with the risk of customer or counterparty insolvency. With regard to OTC transactions with customers, the Company's policy is to mitigate the counterparty credit risk through the so-called "stop out" mechanism. Customer funds deposited in the brokerage serve as a security. If a customer's current balance is 50 per cent or less of the security paid in and blocked by the transaction system, the position that generates the highest losses is automatically closed at the current market price. The initial margin amount is established depending on the type of financial instrument, customer account, account currency and the balance of the cash account in the transaction system, as a percent of the transaction's nominal value. A detailed mechanism is set forth in the rules binding on the customers. In addition, in order to mitigate counterparty credit risk, the Company includes special clauses in agreements with selected customers, in particular, requirements regarding minimum balances in cash accounts.

Due to the mechanisms in place, used to mitigate credit risk, the credit quality of financial assets at fair value through P&L is high and does not show significant diversity.

The Company's top 10 exposures to counterparty credit risk taking into account collateral (net exposure) are presented in the table below (numbering of counterparties fixed uniformly for the reporting and comparative period and cash concentration table):

	30.06.2024		31.12.2023		30.06.2023
ENTITY	NET EXPOSURE (IN PLN'000)	ENTITY	NET EXPOSURE (IN PLN'000)	ENTITY	NET EXPOSURE (IN PLN'000)
Institution 6		24 574 Institution 6		20 520 Institution 6	20 328
Institution 1		5 943 Institution 1		10 087 Institution 1	7 329
Institution 7		1 713 Institution 4		6 567 Institution 7	1 807
Institution 4		921 Institution 8		1 788 Institution 12	831
Institution 8		784 Institution 7		1 152 Institution 4	822
Institution 9		742 Institution 10		839 Institution 8	565
Institution 10		538 Institution 11		491 Institution 10	518
Institution 11		537 Institution 9		459 Institution 11	475
Institution 3		363 Entity 2		128 Institution 3	383
Entity 1		108 Entity 3		80 Institution 9	346
Total	36 223 Total		42 111 Total		33 404

Other receivables

Other receivables do not show a significant concentration, and they arose in the normal course of the Company's business. Non-overdue other receivables are collected on a regular basis and, from the perspective of credit quality, they do not pose a material risk to the Company.

34. Post balance sheet events

On 17 July 2024, there was share capital increase in the subsidiary XTB S.C. Limited in the amount USD 250 thousand (around PLN 977 thousand), maintaining the current share proportion.

MANAGEMENT BOARD REPORT ON THE OPERATIONS OF THE GROUP

MANAGEMENT BOARD REPORT ON THE OPERATIONS OF THE GROUP AND COMPANY

1. Basic information

General information

XTB International Group S.A. (hereinafter: "Group", "XTB Group", "Capital Group") with 20 years of experience in the market and at the same time one of the world's largest Forex & CFD brokers listed on the main market of the Warsaw Stock Exchange Warsaw. Its innovative solutions provide individual investors with instant access to financial markets from all over the world.

The Parent Company in the Capital Group XTB S.A. (the "Group", "Capital Group") is XTB S.A. (hereinafter: the "Company" "Parent Entity", "Parent Company", "Brokerage", "XTB") with its headquarters located in Warsaw, at Prosta street 67, 00-838 Warsaw.

XTB S.A. is entered in the Commercial Register of the National Court Register by the District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register, under No. KRS 0000217580. The Parent Company was granted a statistical REGON number 015803782 and a tax identification number 5272443955.

The Group operates on the basis of licences granted by regulators in Poland, the UK, Cyprus, Belize and the United Arab Emirates (UAE). The Group's business is regulated and supervised by the competent authorities in the markets in which the Group operates, including EU countries, on the basis of the so-called single European passport. The Group is currently focused on developing its business in 12 key countries.

With a strong market position and a dynamically growing client base, XTB is increasingly boldly expanding its presence in non-European markets, consistently pursuing the strategy of creating a global brand. The Management Board of XTB is focusing on organic growth by increasing its penetration of the European markets and gradually building its presence

in Latin America, Asia and Africa. As a results of these actions, the composition of the capital group may be extended with new subsidiaries. It should be noted that XTB's geographical expansion is a continuous process, the effects of which are spread over time. In 2024, the Management Board's efforts are focused on obtaining the necessary licences and permits and preparing the necessary infrastructure to launch operations in Brazil and Indonesia. The Company expects to be able to start operations in Indonesia in early 2025. As for Brazil, XTB is currently in the process of obtaining licences in this market, which is expected to take until 2025.

XTB's growth is also possible through mergers and acquisitions, especially with companies that would allow the Group to achieve geographical synergies (complementary markets). The Management Board intends to pursue such transactions only if they bring tangible benefits to the company and its shareholders.

These semi-annual condensed financial statements for the first half 2024 (separate and consolidated) have been prepared in accordance with the requirements of International Accounting Standards 34 "Interim Financial Reporting" as endorsed by the European Union. Other standards, amendments to existing standards and interpretations of the International Financial Reporting Interpretations Committee recently adopted or awaiting adoption have no bearing on the Group's business or its impact would not be material. A detailed description of the rules for the preparation of the abovementioned financial statements is provided in item 2. Basis of preparation of the half-yearly condensed consolidated financial statements as well as the separate financial statements.

Products and services

The XTB Group is an international provider of trading and investment products, services and solutions, specialising in:

OTC (over-the-counter) market where transactions are made directly between market participants, without commission. There is no regulator. Trading on the OTC market takes place in all time zones, i.e. 24 hours a day except weekends, in particular in CFDs (contracts for differences), which are investment products whose return depends on changes in the price and value of the underlying instruments and assets - contracts for differences, which are investment products whose return depends on changes in the price and value of the underlying instruments and assets. The seller of the contract agrees to pay the difference between the value of the assets on the date the contract is terminated and the value of the assets on the date the contract is entered into;
investments in stocks and ETP (Exchange Traded Products) instruments on the same trading platform. ETP are financial instruments that are traded in an organised manner and whose price is generally linked to the value of an underlying financial instrument, e.g. stock indices, commodities, baskets of stocks or other financial instruments.

The Group operates in two segments:

retail segment operated for retail clients online trading in asset-based and underlying derivatives traded on financial and commodity markets, as well as trading in stocks from selected exchanges from around the world and ETP instruments;
institutional segment where the Group offers institutional clients the provision of liquidity and technology, thanks to which they can offer their clients the opportunity to trade financial instruments under their own brand.

The Group offers two trading platforms to both retail clients and institutional clients:

xStation and
MetaTrader 4 (MT4) a platform offered to new clients until January 18, 2021,

which are supported by the Group's advanced, proprietary technology infrastructure.

XTB is constantly actively expanding the functionalities of the xStation platform to meet requirements of both CFD clients and the new group of shares clients. The Management Board believes that the platform is currently one of the most developed trading platform on the CFD and stock market. The company is constantly trying to develop the platform with elements supporting transactions on OTC markets.

During the six months of 2024, the Group continued to expand its product offer. As at the end of H1 2024, the Group offered a total of more than 6 400 financial instruments from around the world. This number consisted of approximately 2 400 leveraged CFDs, including more than 70 based on currency pairs, more than 20 based on commodities and around 30 based on indexes and 40 on cryptocurrencies, more than 2 000 based on shares of companies listed on stock exchanges in 16 countries and more than 150 based on American and European ETP. The second arm of XTB's offering consists of around 4 000 cash instruments, specifically almost 3 600 equity-based instruments and more than 400 ETP instruments from European markets.

As in previous years, XTB's focus in 2024 is on attracting new clients and expanding this group to include those interested not only in investing, but also in wide range of financial products.

To achieve this, XTB plans to strengthen its product offering and implement enhancements aimed at improving the client experience on both – the desktop platform and the mobile app. All these changes and improvements have been carefully planned, which is reflected in the continuous growth of the Product and Technology department and the ongoing work and developments in the research & development area, including those related to the implementation of AI-driven solutions.

PRODUCT ROADMAP FOR 2024

The first half of 2024 was marked by the expansion of the passive product range. Investment Plans, the ETP-based product allowing to invest in 350 ETP, was enhanced with the auto invest feature enabling clients to decide how often and how much money they want to invest regularly in their individual portfolios. As a result, the product has become even more attractive for clients looking for mid- and long-term investment opportunities when compared to solutions provided by XTB competitors.

In addition, at the end of March 2024, the company launched a new social service, XTB Social, which allows users in selected markets to receive alerts on transactions of selected traders. Clients also receive insights into their portfolios and key statistics on the trades of those they observe. Within XTB Social, client data is completely anonymised and classified based solely on the basis of the investment return achieved or the level of risk taken. In June 2024, the Company decided to suspend this service in the European Union due to the position issued by the Financial Supervision Commission on 29 May this year regarding the conditions for the provision of social trading services by investment firms. In the coming months, following a thorough review of this position, XTB will take a decision on the continuation of the XTB Social service and its future form.

At the turn of the third and fourth quarters of 2024, a product long awaited by clients should appear on the Polish market – IKE accounts. Currently, only of adults in Poland use them, but the interest is growing every year. As XTB sees potential in the further growth of long-term investment products, this offer will also be implemented also in a fraction other global markets, including the UK, where the company plans to act as an ISA Manager.

By the end of 2024, XTB plans to launch a product that will accelerate its transformation into the everyday platform for managing personal finances. A virtual wallet and a multi-currency card will allow XTB clients to make instant local payments, transfers, card transactions and currency exchanges. Thanks to this product, clients will be able to make instant payments between their XTB accounts instantly. Real-time alerts will support financial control and expense management.

In 2025 and beyond, XTB plans to add other new products to its offering.

The above product roadmap is based on the current knowledge and resources. It is therefore subject to change and modification, including as a results of XTB's collaboration with third parties.

Description of the Group's organization

Subsidiaries of the XTB S.A. Capital Group

As at the date of this report, the Group consisted of the parent company and its 13 subsidiaries, as shown in the diagram below.

* The parent company XTB S.A. acquired 99,9% of the shares in the subsidiary XTB S.C. Limited, the remaining 0,1% being held by another subsidiary XTB Services Limited.

All subsidiaries results are fully consolidated since the date of foundation/acquisition. In the reporting periods all subsidiaries have been subject to consolidation.

Neither the Parent Company nor any Group company holds shares in other companies that may have a material impact on its assets and liabilities, financial position and profit or loss.

Information about XTB Group subsidiaries

The following is basic information on the Group companies, i.e. the companies that are directly or indirectly dependent on the Company.

XTB Limited, Great Britain

The company provides brokerage services based on the obtained permission issued by the FCA (Financial Conduct Authority), license no FRN 522157.

X Open Hub Sp. z o.o., Poland

Main scope of business of the company is offering electronic applications and trading technology.

XTB Limited, Cyprus

The company provides brokerage services based on the obtained permission issued by the CySEC (Cyprus Securities and Exchange Commission), license no 169/12. On 3 May 2018, DUB Investments Limited changed its name to XTB Limited. On June 6 2018, the parent company acquired 1 165 shares in the increased share capital of the subsidiary, maintaining a 100% share in its capital.

XTB Agente de Valores SpA, Chile

On February 17, 2017, the Parent Company established a subsidiary, XTB Chile SpA. The Company holds 100% of the shares in the subsidiary. On July 27, 2023, the company's name was changed from XTB Chile SpA to XTB Agente de Valores SpA. The company provides services to acquire clients from the territory of Chile.

XTB International Limited, Belize

On 23 February 2017 the Parent Company acquired 100% of shares in CFDs Prime based in Belize. On 20 March 2017 the company changed its name from CFDs Prime Limited to XTB International Limited. On 26 September 2019 the Parent Company acquired 500 000 shares in the increased share capital of the subsidiary while maintaining a 100% share in its capital. The company provides brokerage services based on the obtained permission issued by the International Financial Service Commission.

XTB Services Limited, Cyprus

On 27 July 2017 the Parent Company acquired 100% shares in Jupette Limited with its registered office in Cyprus. On 5 August 2017 the subsidiary changed its name to XTB Services Limited. The company provides marketing and marketingsales services (sales support).

XTB Africa (PTY) Ltd., South Africa

On 10 July of 2018 the Parent Company established a subsidiary of XTB Africa (PTY) Ltd with its seat in South Africa. The company hold 100% shares in a subsidiary. On 14 October 2019 the Parent Company acquired 100 shares in the increased capital of the subsidiary, maintaining 100% share in its capital.

On August 10, 2021, XTB Africa (PTY) Ltd. received a license from the (ang. Financial Sector Conduct Authority) to operate in South Africa.

As at the date of publishing this report, the Company did not conduct any operating activities.

XTB MENA Limited, United Arab Emirates

On January 9, 2021, the company XTB MENA Limited based in the United Arab Emirates was registered in the local register of entrepreneurs. The parent company acquired 100% of shares in the subsidiary. On April 13, 2021, the shares in XTB MENA Limited based in the United Arab Emirates (UAE) were paid for. The contributed capital amounted to USD 1 million.

On July 11, 2021, XTB MENA Limited received a notification from DFSA (Dubai Financial Services Authority) on granting the company a license to operate in the UAE with its effective date on July 8, 2021. The company provides brokerage services.

On March 9, 2023, the Parent Company allocated USD 1,0 million for a further share capital increase in its subsidiary XTB MENA Limited, maintaining a 100% share in its capital.

On April 5, 2024, the Parent Company allocated USD 1,5 million for a further share capital increase in its subsidiary XTB MENA Limited, maintaining a 100% share in its capital.

XTB Digital Ltd., Cyprus

On December 5, 2022, the XTB Digital Ltd. based in Cyprus was registered in the local entrepreneurs' registry. On April 3, 2023, the shares in Digital Ltd. of Cyprus were paid up. The capital contributed amounted to EUR 300 thousand.

As of the date of submitting this report, the company had no operating activities.

XTB S.C. Limited, Republic of Seychelles

On 6 October 2022, XTB S.C. Limited with its registered office in the Republic of Seychelles was registered in the local register of entrepreneurs. On April 21, 2023, the company received from the FSA (Financial Services Authority) license No. SD148 to operate in the Republic of Seychelles.

The company will provide brokerage services. The parent company acquired 99,9% of the shares in the subsidiary. The remaining 0,1% stake is held by another subsidiary, XTB Services Limited. On 16 November 2023, the shares in XTB S.C. Limited, based in the Seychelles, were paid up. The contributed capital amounted to USD 50 thousand.

On 17 July 2024, a total of USD 250 thousand was allocated to increase the share capital in the subsidiary XTB S.C. Limited maintaining the existing proportion of shares.

As of the date of submission of these consolidated financial statements, the company had no operations.

Tasfiye Halinde XTB Yönetim Danışmanlığı A.Ş., Turkey

On 15 September 2020, the liquidation process of the company in Turkey began.

As of the date of submission of these consolidated financial statements, the company had no operations.

XTB Indonesia Berjangka, Indonesia

On January 17, 2024, the Parent Company acquired a 90% share in PT Rajawali Kapital Berjangka, based in Indonesia, which is a derivatives broker regulated by the Commodity Futures Trading Supervisory Agency (BAPPEBTI).

On February 16, 2024, the Parent Company allocated USD 315 thousand to increase the share capital in its subsidiary PT Rajawali Kapital Berjangka, maintaining a 90% share in its capital.

On April 29, 2024, the subsidiary company PT Rajawali Kapital Berjangka changed its name to PT XTB Indonesia Berjangka.

XTB Financial Consultation L.L.C., United Arab Emirates

On 25 July 2024, XTB Financial Consultation L.L.C, based in the United Arab Emirates, was registered with the local register of companies. XTB S.A. acquired 100% of the shares in the subsidiary. On 26 July 2024, the shares in XTB Financial Consultation L.L.C. were paid up. The contributed capital amounted to AED 13 thousand.

The company will provide brokerage services – financial advice.

As of the date of submission of these consolidated financial statements, the company had no operations.

During the reporting period, i.e. from 1 January to 30 June 2024, and until the date of this report, there were no changes in the structure of the XTB S.A. Capital Group other than those described above.

XTB Foundation, Poland

On 23 December 2020 XTB Foundation was registered in KRS (National Court Register).

The Foundation was created to support and organise all initiatives related to the promotion of financial institutions and new technologies, thus increasing trust and respect for these institutions. In its activities, it aims to raise financial and technological awareness, while realising activities in the area of corporate social responsibility and sustainable development.

According to its statutory objectives, the Foundation's object is:

increasing entrepreneurship and innovation, particularly in the area of new technologies and the financial market;
raising awareness and knowledge of economic, financial and new technology-related issues, as well as increasing trust and respect for financial institutions;
scientific and research activities and promotion of solutions developed within the XTB capital group's operations, particularly in the field of new technologies and the financial market;
supporting and organizing all initiatives related to the promotion of financial institutions and new technologies;
financial support, transfer of knowledge or business consulting for the benefit of selected entrepreneurs;
acting in the fields of corporate social responsibility, sustainable development, and animal and nature conservation;
promotion of employment and education and equalization of development opportunities;
initiating and supporting activities of XTB Capital Group employees related to the statutory objectives of the Foundation, employee volunteering and all social, educational and sports activities;
charitable and social activities.

Foreign branches of XTB S.A.

XTB S.A. also operates through 7 foreign branches located in Europe, as shown in the scheme below.

Basically FinTech

XTB as a technology entity operating in the financial sector, conducts continuous work involving the design and development of highly innovative, comprehensive solutions in the field of transactions and online investments in financial instruments ("research and development"). This makes the Company a FinTech organization. The purpose of the aforementioned work is to develop innovative technologies and solutions to further develop the product offering in particular. XTB owns of a number of proprietary technological solutions, including the modern xStation trading platform.

The work realised in H1 2024 was aimed at developing the tools necessary for the efficient functioning of XTB's trading systems, effective execution of orders, efficient onboarding of new clients and further development of tools to support the company's internal processes as a result of identified development needs. The research areas focused on functionalities and operational security of systems, processes and databases. There was also research and development work focused on the development of new electronic trading systems.

In view of the business strategy adopted, which is based on the development of new technologies, an IT Development Department has been separated within the structure of XTB, in which a significant part of the staff is made up of people performing research and development work. The work has a significant, almost strategic impact on the business activities conducted by XTB. This not only translates into the level of revenue generated by XTB but is also crucial in the process of building and maintaining a highly competitive position of the Company on the global capital market.

The table below presents the number of people employed in the IT Development Department and the costs incurred by the department:

	PERIOD ENDED
	SIX-MONTH	TWELVE MONTH
	30.06.2024	31.12.2023	31.12.2022	31.12.2021	31.12.2020	31.12.2019	31.12.2018
Costs of the IT Development Department (PLN '000)	77 234	94 770	58 381	36 616	27 159	21 151	18 974
Number of employees in technology departments*	464	429	282	176	129	116	106

* Persons employed based on an employment contract, mandate contract and those providing services based on a B2B contract.

2. Summary and analysis of the results of the Group

For XTB, the first half of 2024 was a consecutive period of dynamic business development and client base building. As a result, the Group acquired a record 232,3 thousand new clients (an increase of 38,9% y/y), while the number of active clients increased by 50,5% y/y from 307,5 thousand to 462,8 thousand.

XTB's dynamic operational growth, combined with favourable market conditions, resulted in record financial results in the first half of 2024. The consolidated net profit amounted to PLN 463,0 million compared to PLN 421,0 million in the previous year. Consolidated revenues amounted to PLN 937,8 million (H1 2023: PLN 830,7 million), with operating expenses of PLN 410,4 million (H1 2023: PLN 341,6 million).

2.1 Factors affecting operating and financial results

The Group's operating and financial results are primarily influenced by:

number of active clients, volume of transactions and amount of deposits;
volatility in financial and commodity markets;
general market, geopolitical and economic conditions;
competition in the FX/CFD market; and
regulatory environment.

The key factors influencing the Group's financial and operating results for the 6 months ended 30 June 2024 are discussed below. According to the Management Board, these factors have and may have an impact on the Group's operations, operational and financial results, financial situation and prospects in the future.

2.2 Discussion of the Group's results for the I half of 2024

The table below presents selected items of the consolidated statement of comprehensive income in the given periods.

	SIX-MONTH PERIOD ENDED
(in PLN'000)	30.06.2024	31.12.2023	CHANGE IN VALUE	CHANGE %	30.06.2023
Result of operations on financial instruments	902 918	761 808	141 110	18,5	812 683
Net interest income on client cash, including:	28 785	18 274	10 511	57,5	11 835
- Interest income from client cash	47 985	22 256	25 729	115,6	11 835
- Interest expense paid to clients	(19 200)	(3 982)	15 218	382,2	-
Income from fees and charges	5 914	5 606 308		5,5	6 124
Other income	169	2 040	(1 871)	(91,7)	45
Total operating income	937 786	787 728	150 058	19,0	830 687
Marketing	(156 340)	(127 666)	28 674	22,5	(136 258)
Salaries and employee benefits	(148 279)	(134 360)	13 919	10,4	(124 780)
Commission expenses	(43 920)	(32 831)	11 089	33,8	(28 985)
Other external services	(35 597)	(34 134)	1 463	4,3	(30 007)
Amortisation and depreciation	(9 716)	(9 467)	249	2,6	(7 730)
Taxes and Fees	(8 670)	(3 823)	4 847	126,8	(5 889)
Costs of maintenance and lease of buildings	(3 904)	(3 753)	151	4,0	(3 775)
Other expenses	(3 947)	(6 601)	(2 654)	(40,2)	(4 172)
Total operating expenses	(410 373)	(352 635)	57 738	16,4	(341 596)
Profit on operating activities (EBIT)	527 413	435 093	92 320	21,2	489 091
Finance income	37 684	29 963	7 721	25,8	41 995
Finance costs	(513)	(16 862)	(16 349)	(97,0)	(19 036)
Profit before tax	564 584	448 194	116 390	26,0	512 050
Income tax	(101 538)	(78 018)	23 520	30,1	(91 053)
Net profit	463 046	370 176	92 870	25,1	420 997

Operating income

The first half of 2024, XTB's revenues reached a record level of PLN 937,8 million (increase by 12,9% y/y). Important factors determining its level were the high volatility on financial and commodity markets in Q1 2024, understood as the occurrence of long and clear trends on stock and commodity markets, a higher number of corrections and trend reversals in Q2 2024, and the constantly growing number of active clients (increase by 50,5% y/y), connected with their high transaction activity, expressed, among other things, in the number of CFD contracts concluded in lots (increase by 8,7% y/y). As a result, the volume of transactions in CFD instruments amounted to 3 931,0 thousand lots (H1 2023: 3 615,5 thousand lots), profitability per lot amounted to PLN 239 (H1 2023: PLN 230).

REPORT FOR THE 1 ST HALF OF 2024 XTB S.A. GROUP

(TRANSLATION OF A DOCUMENT ORIGINALLY ISSUED IN POLISH)

THREE-MONTH PERIOD ENDED
	30.06.2024	31.03.2024	31.12.2023	30.09.2023	30.06.2023	31.03.2023	31.12.2022	30.09.2022
Total operating income (in PLN'000)	381 838	555 948	506 740	280 988	293 134	537 553	221 924	393 659
Transaction volume in CFD instruments in lots1	1 966 159	1 964 890	1 789 481	2 011 452	1 770 385	1 845 160	1 720 381	1 594 606
Profitability per lot 2 (in PLN)	194	283	283	140	166	291	129	247
Transaction volume in CFD instruments in nominal value (in USD'000000)	621 544	581 865	548 927	593 232	547 088	596 645	548 781	539 879
Profitability for 1 million USD transaction volume in CFD instruments in nominal value 3 (in USD)	154	239	229	114	128	207	89	153

1 ) A lot is a unit of trading in financial instruments; in the case of foreign currency transactions, a lot corresponds to 100,000 units of the underlying currency; in the case of instruments other than CFDs based on currencies, the amount is specified in the instruments table and varies for various instruments. Presented value does not include CFD turnover on shares and ETP, where 1 lot equals 1 share.

2 ) Total operating income divided by the transaction volume in CFDs in lots.

3 ) Total operating income converted into USD by the arithmetic average of exchange rates published by the National Bank of Poland on the last day of each month of the reporting period, divided by turnover of CFD in nominal value (in USD'000000).

PERIOD ENDED
	SIX-MONTH	TWELVE-MONTH
	30.06.2024	31.12.2023	31.12.2022	31.12.2021	31.12.2020	31.12.2019	31.12.2018	31.12.2017
Total operating income (in PLN'000)	937 786	1 618 415	1 451 954	625 595	797 750	239 304	288 301	273 767
Transaction volume in CFD instruments in lots1	3 931 049	7 416 479	6 365 643	4 104 566	3 175 166	1 597 218	2 095 412	2 196 558
2 Profitability per lot (in PLN)	239	218	228	152	251	150	138	125
Transaction volume in CFD instruments in nominal value (in USD'000000)	1 203 409	2 285 891	2 259 588	1 737 351	1 021 835	541 510	773 899	653 373
Profitability for 1 million USD transaction volume in CFD instruments in nominal value 3 (in USD)	195	169	144	93	200	115	103	111

2 ) Total operating income divided by the transaction volume in CFDs in lots.

Looking at XTB's revenues in terms of the instruments classes responsible for their creation, it can be seen that in the first half of 2024 CFDs based on commodities lead. Their share of the revenue structure in the first half of 2024 was 48,2% (H1 2023: 38,5%). This is partly due to the high profitability of CFD instruments based on gold, natural gas and cocoa prices. The second most profitable asset class was CFD based on index. Their share of the financial instruments revenue structure reached 37,2%, compared to 51,8% a year earlier. This is a consequence of the high returns on CFDs based on the US 100 index, the German DAX (DE40) stock index or the US 500 index. Revenues from currency-based CFD instruments accounted for 10,3% of total revenues, compared to 7,7% in the previous year. The most profitable financial instruments in this class were CFDs based on cryptocurrency Bitcoin, the USDJPY currency pair and the cryptocurrency Ethereum.

THE STRUCTURE OF REVENUE BY ASSET CLASS (IN %)

Other

	2,7%
		41,9%
48,7%
		6,7%

(in PLN'000)	SIX-MONTH PERIOD ENDED
	30.06.2024	31.12.2023	CHANGE %	30.06.2023
Commodity CFDs	449 519	327 225	37,4	323 622
Index CFDs	347119	345 006	0,6	436 279
Currency CFDs	95 555	100 085	(4,5)	65 076
Stock CFDs and ETP	20 933	14 896	40,5	9 365
Bond CFDs	428	386	10,9	693
Total CFDs	913 554	787 598	16,0	835 035
Shares and ETP	18 824	4 505	317,8	6 545
Gross gain on transactions in financial instruments	932 378	792 103	17,7	841 580
Bonuses and discounts paid to clients	(3 642)	(3 485)	4,5	(5 943)
Commission paid to cooperating brokers	(25 818)	(26 810)	(3,7)	(22 954)
Net gain on transactions in financial instruments	902 918	761 808	18,5	812 683

The Group's operating income is generated from: (i) spreads (the differences between the "offer" price and the "bid" price); (ii) fees and commissions charged by the Group to its clients; (iii) swap points charged (being the amounts resulting from the difference between the notional forward rate and the spot rate of a given financial instrument) and (iv) net results (gains offset by losses) from Group's market making activities.

The business model used by XTB combines the features of the agency model and the market maker model, in which the Company is a party to transactions concluded and initiated by clients. XTB does not engage, in the strict sense, in transactions carried out on its own account in anticipation of changes in prices or values of underlying instruments – proprietary trading).

The hybrid business model used by XTB also uses the agency model. For example, on most CFD instruments based on cryptocurrencies, XTB secures these transactions with external partners, practically is not to be the other party to the transaction (of course, from a legal point of view, it is still XTB). The fully automated risk management process adopted by the Company limits exposure to market changes and forces the Group to hedge its positions in order to maintain appropriate levels of capital requirements. In addition, XTB executes all transactions on shares and ETP as well as on CFD instruments based on these assets directly on regulated markets or in alternative trading systems. XTB is not a market maker for this class of instruments.

XTB's business model includes high volatility of revenues from period to period. Operating results are mainly affected by: (i) volatility on financial and commodity markets; (ii) the number of active clients; (iii) volume of concluded transactions on financial instruments; (iv) general market, geopolitical and economic conditions; (v) competition on the FX/CFD market and (vi) regulatory environment.

As a rule, the Group's revenues are positively affected by higher activity of financial markets due to the fact that in such periods, a higher level of turnover is realized by the Group's clients and higher profitability per lot. The periods of clear and long market trends are favourable for the Company and at such times it achieves the highest revenues. Therefore, high activity of financial and commodities markets generally leads to an increased volume of trading on the Group's trading platforms. On the other hand, the decrease in this activity and the related decrease in the transaction activity of the Group's clients leads, as a rule, to a decrease in the Group's operating income.

Due to the above, operating income and the Group's profitability may decrease in periods of low activity of financial and commodity markets. In addition, there may be a more predictable trend in which the market moves within a limited price range. This leads to market trends that can be predicted with a higher probability than in the case of larger directional movements on the markets, which creates favourable conditions for transactions concluded in a narrow range trading. In this case, a greater number of transactions that bring profits to clients is observed, which leads to a decrease in the Group's result on market making.

Market volatility and activity is driven by a number of external factors, some of which are specific to the market and some of which may be related to general macroeconomic conditions. It can have a significantly impact on the Group's revenues in subsequent quarters. This is characteristic of the Group's business model.

XTB places great importance on the geographical diversification of revenues, consistently implementing the strategy of building a global brand. The country from which the Group derives more than 20% of revenues each time is Poland, with a share of 50,9% (H1 2023: 48,7%). Due to the overall share in the Group's revenues, Poland was separated for presentation purposes as the largest market in terms of revenues in the Group. The Group breaks down its revenues by geographic area according to the country of the XTB office in which the client was acquired. The exception is the Middle East region, which also presents revenues from clients from this market acquired by the subsidiary XTB International Ltd. based in Belize.

(in PLN'000)	SIX-MONTH PERIOD ENDED
	30.06.2024	31.12.2023	CHANGE %	30.06.2023
Central and Eastern Europe	600 605	466 294	28,8	517 079
- including Poland	476 901	351 664	35,6	404 469
Western Europe	184 966	177 815	4,0	191 773
Latin America1	66 309	76 763	(13,6)	70 932
Middle East2	85 898	66 856	28,5	50 903
Asia	8	-	-	-
Total operating income	937 786	787 728	19,0	830 687

1 ) The subsidiary XTB International Ltd., with its seat in Belize, acquires clients from Latin America and the rest of the world (without Europe). The item excludes revenues from clients acquired by this company from the Middle East region.

2 ) Revenue from clients from the Middle East, acquired by XTB International Ltd. with its seat in Belize and XTB MENA Limited with its seat in the United Arab Emirates.

XTB puts also strong emphasis on diversification of segment revenues. Therefore the Group develops institutional activities under X Open Hub brand, under which it provides liquidity and technology to other financial institutions, including brokerage houses. Revenues from this segment are subject to significant fluctuations from period to period, analogically to the retail segment, which is typical for the business model adopted by the Group.

(in PLN'000)	SIX-MONTH PERIOD ENDED
	30.06.2024	31.12.2023	CHANGE %	30.06.2023
Retail segment	896 309	757 514	18,3	752 532
Institutional segment (X Open Hub)	41 477	30 214	37,3	78 155
Total operating income	937 786	787 728	19,0	830 687

Expenses

Operating expenses in the first half of 2024 amounted to PLN 410,4 million, PLN 68,8 million higher than in the same period of the previous year (H1 2023: PLN 341,6 million). The most significant changes were in:

salaries and employee benefits, an increase of PLN 23,5 million, mainly due to an increase in the number of employees;
marketing costs, an increase of PLN 20,1 million, mainly due to higher expenses for online marketing campaigns;
commission costs, an increase of PLN 14,9 million, as a result of higher amounts paid to payment service providers through which clients deposit their funds on transaction accounts;
other external services, an increase of PLN 5,6 million, mainly due to higher expenses for IT systems and licenses (an increase of PLN 5,2 million y/y).

(in PLN'000)	SIX-MONTH PERIOD ENDED
	30.06.2024	31.12.2023	CHANGE %	30.06.2023
Marketing	156 340	127 666	22,5	136 258
Salaries and employee benefits	148 279	134 360	10,4	124 780
Commission expenses	43 920	32 831	33,8	28 985
Other external services	35 597	34 134	4,3	30 007
Amortization and depreciation	9 716	9 467	2,6	7 730
Taxes and fees	8 670	3 823	126,8	5 889
Costs of maintenance and lease of buildings	3 904	3 753	4,0	3 775
Other costs	3 947	6 601	(40,2)	4 172
Total operating expenses	410 373	352 635	16,4	341 596

On a q/q basis, operating costs were slightly higher than in the first quarter of 2024.

(TRANSLATION OF A DOCUMENT ORIGINALLY ISSUED IN POLISH)

THREE-MONTH PERIOD ENDED
	30.06.2024	31.03.2024	31.12.2023	30.09.2023	30.06.2023	31.03.2023	31.12.2022	30.09.2022
Total operating expenses including: (in PLN'000)	205 408	204 965	187 669	164 966	157 377	184 219	158 235	132 546
- Marketing	75 234	81 106	69 081	58 585	54 823	81 435	68 478	48 579
New clients1	102 569	129 747	77 267	67 505	62 994	104 206	51 038	44 796
Clients in total2	1 113 554	1 018 899	897 573	826 042	762 624	703 928	614 934	567 387
Average client acquisition cost3	0,7	0,6	0,9	0,9	0,9	0,8	1,3	1,1

1 ) Number of new Group clients by quarter.

2 ) Number of clients at the end of each quarter.

3 ) The average cost of client acquisition is defined as the marketing spend in a quarter divided by the number of clients acquired in the same quarter.

PERIOD ENDED
	SIX-MONTH	TWELVE-MONTH
	30.06.2024	31.12.2023	31.12.2022	31.12.2021	31.12.2020	31.12.2019	31.12.2018	31.12.2017
Total operating expenses including: (in PLN'000)	410 373	694 231	558 567	348 772	282 004	173 892	172 492	145 497
- Marketing	156 340	263 924	222 369	120 101	87 731	37 716	33 322	24 841
New clients1	232 316	311 971	196 864	189 187	112 025	36 555	20 672	18 913
Clients in total2	1 113 554	897 573	614 934	429 157	255 791	149 304	116 517	105 662
Average client acquisition cost3	0,7	0,8	1,1	0,6	0,8	1,0	1,6	1,3

1 ) Number of new Group clients by quarter.

2 ) Number of clients at the end of each quarter.

3 ) The average cost of client acquisition is defined as the marketing spend in a quarter divided by the number of clients acquired in the same quarter.

Due to the dynamic development of XTB, the Management Board estimates that the total costs of operations in 2024 could increase by around a one-fourth to the level observed in 2023. The priority of the Management Board is to continue to grow the client base and build a global brand. As a result of the activities implemented, marketing expenses may increase by about one-third compared to the previous year.

The final level of operating costs will depend on the rate of employment growth and the level of variable remuneration components paid to employees, the level of marketing expenditure, the dynamics of geographical expansion into new markets and the impact of possible new regulations and other external factors on the level of revenues generated by the Group.

The level of marketing expenditure will depend on its impact on the Group's results and profitability, the rate of international expansion and the degree of client responsiveness to the actions taken. Employment growth in the Group is driven by its dynamic development in both on the existing and new markets. The level of variable remuneration components is influenced by the Group's results.

Clients

XTB has a solid foundation in the form of constantly growing client base and the number of active clients. In the first half of 2024 Group reported another record in this area, acquiring 232 316 new clients compared to 167 200 a year earlier, which means an increase of 38,9%. Similarly to the number of new clients, the number of active clients was also record high. It increased from 307 511 to 462 771, i.e. by 50,5% y/y.

THREE-MONTH PERIOD ENDED
	30.06.2024	31.03.2024	31.12.2023	30.09.2023	30.06.2023	31.03.2023	31.12.2022	30.09.2022
New clients1	102 569	129 747	77 267	67 505	62 994	104 206	51 038	44 796
Clients in total2	1 113 554	1 018 899	897 573	826 042	762 624	703 928	614 934	567 387
Number of active clients3	462 771	378 476	408 528	355 461	307 511	260 095	270 560	237 527
Average number of active clients4	425 190	378 476	310 220	281 101	259 318	260 095	203 410	190 210

1 ) The number of new Group's clients in the individual periods.

2 ) Number of clients at the end of individual quarters.

3 ) Number of active clients in 6 and 3 months of 2024 and 12, 9, 6 and 3 months of 2023 and 12 and 9 of 2022, respectively. An active client, is a client who conducted at least one transaction and/or had an open position during the period.

4 ) The quarterly average number of clients who conducted at least one transaction and/or had an open position during the three-month period.

PERIOD ENDED
	SIX-MONTH	TWELVE-MONTH
30.06.2024 31.12.2023 31.12.2022 31.12.2021 31.12.2020 31.12.2019					31.12.2018	31.12.2017
New clients1	232 316	311 971	196 864	189 187	112 025	36 555	20 672	18 913
Clients in total2	1 113 554	897 573	826 042	762 624	703 928	614 934	567 387	525 287
Number of active clients3	462 771	408 528	270 560	193 180	108 312	46 642	38 135	33 369
Average number of active clients4	401 834	277 684	186 053	125 463	61 527	30 250	23 461	20 171

1 ) The number of new Group's clients in the individual periods.

2 ) Number of clients at the end of individual quarters.

3 ) Number of active clients in 6 months of 2024 and 12 months of each year, respectively. An active client, is a client who conducted at least one transaction and/or had

an open position during the period.

4 ) The quarterly average number of clients who conducted at least one transaction and/or had an open position during the three-month period.

The Board's priority is to continue to grow the client base, which will strengthen XTB's position in the global marketplace by reaching the mass client with its product offering. These activities are and will be supported by a number of initiatives, including the introduction of new products or promotional campaigns. The Management Board's target for 2024 is to acquire an average of at least 65-90 thousand new clients per quarter. As a result of the activities implemented, the Group acquired a total of 129,7 thousand new clients in the first quarter of 2024, and 102,6 thousand new clients in the second quarter of this year. In turn, 36,2 thousand new clients were acquired in July 2024 and 19,8 thousand new clients were acquired in the first 15 days of August 2024.

XTB's marketing activities are essential for driving the company's growth. By collaborating with athletes who serve as XTB ambassadors, the Group enhances its market position and boosts brand recognition in key global markets. In the first half of 2024, Conor McGregor and Iker Casillas starred in XTB advertising campaigns (though Casillas' ambassadorial role ended on June 30, 2024).

Furthermore, in the second quarter, XTB signed an agreement with a new ambassador who will feature in XTB advertisements later this year. Once again, XTB aims to collaborate with a globally renowned athlete who commands a social media following of over 120 million people worldwide.

All-in-One Investment App

The Management Board's ambition is for XTB to become the leading all-in-one investment application in Europe, providing clients with easy, smart and efficient ways to trade, invest and save, while giving them instant access to their money.

XTB's transformation from a CFD broker to an All-in-One investment application has progressed over the past few years. This will continue into 2024 and beyond.

Dividend

XTB's dividend policy assumes that the Management Board recommends to the General Meeting of Shareholders the payment of dividend in the amount which takes into account the level of net profit presented in the Company's standalone annual financial statements and a number of various factors concerning to the Company, including the prospects for further operations, future profits, cash requirements, financial situation, the level of capital adequacy ratios, expansion plans, legal requirements in this respect as well as FSA guidelines. In particular, the Management Board will be guided by the need to ensure an adequate level of the Company's capital adequacy ratios and the capital required for the Group's growth when making its dividends payment proposals.

The Management Board maintains that its intention is to recommend to the General Meeting in the future to adopt resolutions on the payment of dividends, taking into account the factors indicated above, in the amount ranging from 50% to 100% of the Company's standalone net profit for a given financial year. The unit net profit for the first half of 2024 amounted to PLN 457,5 million.

The levels of the total capital ratio (IFR) of XTB on individual days in the first half of 2024 are presented in the chart below.

Total capital ratio (IFR) of the Company in H1 2024

The total capital ratio informs about the ratio of own funds to risk-weighted assets, in other words, it shows whether the brokerage house is able to cover the minimum capital requirement for market, credit, operational and other risks with its own funds. At the end of the first half of 2024 the total capital ratio in the Company was 222,0%.

Cash and cash equivalents

XTB invests part of its cash in bank deposits and financial instruments, i.e. government bonds, bonds guaranteed by the State Treasury and corporate bonds guaranteed by the banks. As of 30 June 2024, the XTB Group's total own cash and bonds amounted to PLN 1 675,2 million, which represents 32,2% of the total balance sheet, of which 1 249,6 million was in cash and PLN 425,6 million was bonds.

2.3 Group's selected financial ratios

The financial ratios presented in the following table are not a measure of the financial results in accordance with the IFRS nor should they be treated as a measure of the financial results or cash flows from operating activities, or considered an alternative to a profit. These indicators are not uniformly defined and may not be comparable to ratios presented by other companies, including companies operating in the same sector as the Group.

	SIX-MONTH PERIOD ENDED
	30.06.2024	31.12.2023	30.06.2023
1 EBITDA (in PLN'000)	537 129	444 560	496 821
2 EBITDA margin (%)	57,3	56,4	59,8
3 Net profit margin (%)	49,4	47,0	50,7
4 Return on equity –ROE (%)	55,5	48,0	58,9
5 Return on assets – ROA (%)	18,7	15,8	19,2
Aggregate capital adequacy ratio (IFR) of the Company (%)	222,0	195,5	164,3
Aggregate capital adequacy ratio (IFR) of the Group (%)	212,9	188,7	158,6

1 ) EBITDA calculated as operating profit, including amortisation and depreciation.

2 ) Calculated as the quotient of operating profit, including amortisation and depreciation, and operating income.

3 ) Calculated as the quotient of net profit and operating income.

4 ) Calculated as the quotient of net profit and average balance of equity (calculated as the arithmetic mean of the total equity as at the end of the prior period and as at the end of the current reporting period; the ratios for the 6-month periods have been annualized).

5 ) Calculated as the quotient of net profit and average balance of total assets (calculated as the arithmetic mean of the total assets as at the end of the prior period and as at the end of the current reporting period; the ratios for the 6-month periods have been annualized).

2.4 Selected operating data

The table below shows data on the Group's transaction volumes (in lots) by geographical area for the periods indicated.

	SIX-MONTH PERIOD ENDED 30.06.2024 31.12.2023 30.06.2023

Retail operations segment	2 688 975	2 703 465	2 887 380
Central and Eastern Europe	1 145 765	1 135 899	1 308 072
Western Europe	504 806	561 413	633 767
Latin America1	524 263	592 214	610 235
Middle East2	514 141	413 939	335 306
Institutional operations segment	1 242 074	1 097 469	728 165
Total	3 931 049	3 800 934	3 615 545

1 ) The subsidiary XTB International Ltd., with its seat in Belize, acquires clients from Latin America and the rest of the world (without Europe). The item excludes lots from clients acquired by this company from the Middle East region.

2 ) Lots from clients from the Middle East, acquired by XTB International Ltd. with its seat in Belize and XTB MENA Limited with its seat in the United Arab Emirates.

The table below presents:

the number of new clients in individual periods;
the number of clients who executed at least one transaction and/or held an open position during the period;
the quarterly average number of clients who executed at least one transaction and/or held an open position during the period;
the aggregate number of clients;
the number of net deposits in the individual periods;
average operating income per one active client;
the transaction volume in lots;
profitability per lot;
transaction volume of CFD derivatives at nominal value (in USD million);
profitability per 1 million USD transaction volume in CFD instruments (in USD) and;
the volume of share transactions at nominal value (in USD million).

The information presented in the table below is related to the aggregate operations in the retail and institutional operations segments.

	SIX-MONTH PERIOD ENDED
	30.06.2024	31.12.2023	30.06.2023
New clients1	232 316	144 772	167 200
Clients in total	1 113 554	897 573	762 624
Number of active clients2	462 771	340 906	307 511
Average number of active clients3	401 834	295 661	259 707
4 Net deposits (in PLN'000)	3 805 001	1 988 689	1 801 268
5 Average operating income per active client (in PLN'000)	2,3	2,7	3,2
Transaction volume in CFD instruments in lots6	3 931 049	3 800 934	3 615 545
7 Profitability per lot (in PLN)	239	207	230
Transaction volume in CFD instruments in nominal value (in USD'000000)	1 203 409	1 142 159	1 143 732
Profitability for 1 million USD transaction volume in CFD instruments 8 in nominal value (in USD)	195	168	170
Turnover of shares and ETP at nominal value (in USD'000000)	4 048	2 387	2 125

1 ) The number of new Group's clients in the individual periods.

2 ) The number of clients who executed at least one transaction and/or had an open position during the period.

3 ) The quarterly average number of clients who executed at least one transaction and/or had an open position during the three-month period.

4 ) Net deposits comprise deposits placed by clients less amounts withdrawn by the clients in a given period.

5 ) The Group's operating income in a given period divided by the average quarterly number of active clients.

6 ) Lot is a unit of trading in financial instruments; in the case of foreign currency transactions, a lot corresponds to 100,000 units of the underlying currency; in the case of instruments other than CFDs based on currencies, the amount is specified in the instruments table and varies for various instruments. Presented value does not include CFD turnover on shares and ETP, where 1 lot equals 1 share.

7 ) Total operating income divided by the transaction volume in CFDs in lots.

8 ) Total operating income converted into USD by the arithmetic average of exchange rates published by the National Bank of Poland on the last day of each month of the reporting period, divided by turnover of CFD in nominal value (in USD'000000).

The table below presents information on the Group's revenue by geography for the periods indicated.

	SIX-MONTH PERIOD ENDED
	30.06.2024 31.12.2023 30.06.2023
Result of operations on financial instruments:	902 918	761 808	812 683
Central and Eastern Europe	574 829	444 373	500 207
Western Europe	176 564	174 458	191 161
Latin America1	65 628	76 122	70 412
Middle East2	85 897	66 855	50 903
Net interest income on client cash:	28 785	18 274	11 835
Central and Eastern Europe	21 613	15 423	11 835
Western Europe	7 172	2 851	-
Income from fees and charges:	5 914	5 606	6 124
Central and Eastern Europe	3 985	4 457	4 992
Western Europe	1 239	506	612
Latin America1	681	642	520
Middle East2	1	1	-
Asia	8	-	-
Other income:	169	2 040	45
Central and Eastern Europe	178	2 040	45
Western Europe	(9)	-	-
Total operating income:	937 786	787 728	830 687
Central and Eastern Europe	600 605	466 294	517 079
- including Poland3	476 901	351 664	404 469
Western Europe	184 966	177 815	191 773
Latin America1	66 309	76 763	70 932
Middle East2	85 898	66 856	50 903
Asia	8	-	-

2 ) Revenue from clients from the Middle East, acquired by XTB International Ltd. with its seat in Belize and XTB MENA Limited with its seat in the United Arab Emirates. 3 ) The country from which the Group derives more than 20% of its revenue each time is Poland. Due to its overall share in the Group's revenue, Poland is presented

separately as the Group's largest market in terms of income.

Retail operations segment

The following table shows the key operating indicators for the Group's retail business segment for the periods indicated.

	SIX-MONTH ENDED
	30.06.2024	31.12.2023	30.06.2023
New clients1	232 313	144 768	167 198
Clients in total	1 113 522	897 540	762 594
Number of active clients2	462 751	340 883	307 487
Average number of active clients3	401 816	295 642	259 687
4 Number of transactionsi	77 574 731	70 028 861	72 027 539
5 Net deposits (in PLN'000)	3 818 099	1 936 527	1 734 416
6 Average operating income per active client (in PLN'000)		2,6	2,9
7 Average client acquisition cost (in PLN'000)		0,9	0,8
Transaction volume in CFD instruments in lots8	2 688 975	2 703 465	2 887 380
9 Profitability per lot (in PLN)		280	261
Transactions volume in CFD at nominal value (in USD'000000)		1 091 421	1 082 464
Profitability for 1 million USD transaction volume in CFD 10 instruments in nominal value (in USD)		156	163
Turnover of shares and ETP at nominal value (in USD'000000)	4 048	2 387	2 125

1 ) The number of new Group's clients in the individual periods.

2 ) The number of clients who executed at least one transaction and/or had an open position during the period.

3 ) The quarterly average number of clients who executed at least one transaction and/or had an open position during the three-month period.

4 ) Total number of open and closed transactions in a given period.

5 ) Net deposits comprise deposits placed by clients less amounts withdrawn by the clients in a given period.

6 ) The Group's operating income in a given period divided by the average quarterly number of active clients.

) Average cost of obtaining a client comprise total marketing costs of the Group divided by the number of new clients in given period.

8 ) A lot is a unit of trading in financial instruments; in the case of foreign currency transactions, a lot corresponds to 100,000 units of the underlying currency; in the case of instruments other than CFDs based on currencies, the amount is specified in the instruments table and varies for various instruments. Presented value does not include Total operating income in retail segment divided by the transaction volume in CFDs in lots.

9 ) Total operating income in the retail segment divided by CFD derivatives trading in lots.

¹⁰) Total operating income converted into USD by the arithmetic average of exchange rates published by the National Bank of Poland on the last day of each month of the reporting period, divided by turnover of CFD in nominal value (in USD'000000).

The table below presents data broken down by geography for the average quarterly number of retail customers of the Group who made at least one transaction during the three-month period. The location of active clients was determined based on the location of the Group's office (that serves the client). The exception is the Middle East region, which also presents revenues from clients from this market acquired by the subsidiary XTB International Ltd. based in Belize.

	SIX-MONTH ENDED
	30.06.2024		31.12.2023		30.06.2023
Central and Eastern Europe	256 872	64%	187 904	64%	166 901	64%
Western Europe	102 640	26%	69 692	24%	56 155	22%
Latin Amercia1	29 542	7%	27 769	9%	28 952	11%
Middle East2	12 762	3%	10 277	3%	7 679	3%
Average number of active clients	401 816	100%	295 642	100%	259 687	100%

1 ) The subsidiary XTB International Ltd., with its seat in Belize, acquires clients from Latin America and the rest of the world (without Europe). The item excludes clients acquired by this company from the Middle East region.

2 ) Clients from the Middle East, acquired by XTB International Ltd. with its seat in Belize and XTB MENA Limited with its seat in the United Arab Emirates.

Institutional operations segment

The Group also provides services to institutional clients under the X Open Hub (XOH) brand, under which it provides liquidity and technology to other financial institutions as part of the institutional business segment.

The table below presents information regarding the number of clients in the Group's institutional operations segment in the periods indicated.

	SIX-MONTH PERIOD ENDED
	30.06.2024	31.12.2023	30.06.2023
Average number of active clients	18	19	20
Clients in total	32	33	30

The table below presents the Group's turnover (in lots) in the institutional operations segment in the periods indicated.

	SIX-MONTH PERIOD ENDED
	30.06.2024	31.12.2023	30.06.2023
Transaction volume in CFD instruments in lots	1 242 074	1 097 469	728 165

2.5 Factors which in the Management's Board opinion may impact the Group's results in the perspective of the least the next quarter

The Management Board believes that the following trends have impact and will maintain and continue to impact the Group's operations until the end of 2024 and, in some cases, also longer:

The business model used by XTB Group (described in detail in section 2.2 Discussion of the Group's results for the 1st half of 2024, under: "Operating income".
Continue to grow XTB's client base and reach the mass client with product offerings. This is key to XTB's continued dynamic growth and global brand building, which is directly related to the further expansion of XTB Group's product portfolio with new products and technology solutions, including offering clients an All-in-One investment application that provides easy, smart and efficient ways for clients to invest and save, while giving them instant access to their money.

The Group provides services for institutional clients within the institutional activity segment (X Open Hub). The products and services offered by the Group as part of the X Open Hub differ from those offered as part of the retail segment, which entails different risks and challenges. As a result, the Group's revenues from this segment are exposed to large fluctuations from period to period. The table below illustrates the percentage share of the institutional business segment in total operating income.

	THE PERIOD ENDED
	SIX MONTH	TWELVE MONTH
	30.06.2024	31.12.2023	31.12.2022	31.12.2021	31.12.2020	31.12.2019	31.12.2018
% share of operating income from institutional operations in total operating income	4,4%	6,8%	1,3%	0,3%	13.2%	8,7%	6,5%

The level of volatility in financial and commodity markets in 2024, regulatory changes as well as other factors (if they occur) may affect the condition of XTB's institutional partners, transaction volume in lots, as well as XTB revenues from these clients.

• Due to the dynamic development of XTB, the Management Board estimates that in 2024 the total operating costs may even be about a quarter higher than that observed in 2023. The priority of the Management Board is to further increase the client base and build a global brand. As a consequence of the implemented activities, marketing expenditure may increase by about one-fifth compared to the previous year.

The final level of operating costs will depend on the level of variable remuneration components paid to employees, the level of marketing expenditures, the dynamics of geographical expansion into new markets and the impact of potential product interventions and other external factors on the level of revenues generated by the Group.

The level of marketing expenditures depends on their impact on the Group's results and profitability, the rate of foreign expansion and on clients responsiveness to the actions taken. To increase employment in the Group will be driven by its dynamic development, both on existing and new markets. In turn, the amount of variable remuneration components will be influenced by the Group's results.

With a strong market position and a dynamically growing client base, XTB is increasingly boldly expanding its presence in non-European markets, consistently pursuing the strategy of creating a global brand. The Management Board of XTB is focusing on organic growth by increasing its penetration of the European markets and gradually building its presence in Latin America, Asia and Africa. As a results of these actions, the composition of the capital group may be extended with new subsidiaries. It should be noted that XTB's geographical expansion is a continuous process, the effects of which are spread over time. In 2024, the Management Board's efforts are focused on obtaining the necessary licences and permits and preparing the necessary infrastructure to launch operations in Brazil and Indonesia. The Company expects to be able to start operations in Indonesia in early 2025. As for Brazil, XTB is currently in the process of obtaining licences in this market, which is expected to take until 2025.
XTB's growth is also possible through mergers and acquisitions, especially with companies that would allow the Group to achieve geographical synergies (complementary markets). The Management Board intends to pursue such transactions only if they bring tangible benefits to the company and its shareholders.

Due to the uncertainty regarding future economic conditions, the expectations and forecasts of the Management Board are subject to a particularly high level of uncertainty.

3. Company's authorities

3.1 Management Board

As at 30 June 2024 the composition of the Management Board was as follows:

NAME AND SURNAME	FUNCTION	DATE OF FIRST APPOINTMENT	EXPIRATION DATE OF THE CURRENT TERM
Omar Arnaout	President of the Management Board	10.01.2017	01.07.2025
Paweł Szejko	Member of the Board	28.01.2015	01.07.2025
Filip Kaczmarzyk	Member of the Board	10.01.2017	01.07.2025
Jakub Kubacki	Member of the Board	10.07.2018	01.07.2025
Andrzej Przybylski	Member of the Board	01.05.2019	01.07.2025

In the reporting period and as at the submission date of this report there were no changes in the composition of the Management Board.

3.2 Supervisory Board

As at 30 June 2024 and as at the date of publication of this periodic report, the composition of the Supervisory Board was as follows:

NAME AND SURNAME	FUNCTION	DATE OF FIRST APPOINTMENT	EXPIRATION DATE OF THE CURRENT TERM
Jan Byrski	Chairman of the Supervisory Board	22.11.2021	19.11.2024
Jakub Leonkiewicz	Vice- Chairman of the Supervisory Board	19.11.2021	19.11.2024
Łukasz Baszczyński	Member of the Supervisory Board	19.11.2021	19.11.2024
Bartosz Zabłocki	Member of the Supervisory Board	19.11.2021	19.11.2024
Grzegorz Grabowicz	Member of the Supervisory Board	19.11.2021	19.11.2024

There were no changes in the composition of the Supervisory Board during the reporting period or up to the date of this interim report.

4. Information about shares and shareholding

4.1 Equity

As at 30 June 2024 and as at the date of submitting this annual report, the share capital of XTB S.A. consisted of 117 383 635 Series A ordinary shares and 185 616 Series B ordinary shares. The nominal value of each share of XTB S.A. is PLN 0,05.

4.2 Shares on the stock exchange

On 4 May 2016, the Warsaw Stock Exchange (WSE) Management Board adopted a resolution to admit the Company's shares to trading on the regulated market with the same day. Subsequently, on 5 May 2016, the WSE Management Board adopted a resolution to introduce, as of 6 May 2016, all Company shares for stock exchange trading.

XTB S.A. made its debut on the Warsaw Stock Exchange on May 6, 2016. The company is listed on the main market. On September 3, 2020 XTB joined the mWIG40 index.

4.3 Shareholding structure

To the best knowledge of the Company's Management Board, as at 9 May 2024, i.e. the submission of the previous periodic report (i.e. the report for Q1 2024), the number of shareholders holding, directly or through subsidiaries, at least 5% of the total number of votes at the General Meeting of the Parent Entity, was as follows:

	NUMBER OF SHARES/ VOTES	NOMINAL SHARE VALUE (in PLN'000)	SHARE IN CAPITAL/ IN TOTAL VOTES
XX ZW Investment Group S.A.1	59 872 869	2 994	50,93%
Other shareholders	57 696 382	2 885	49,07%
Total	117 569 251	5 878	100,00%

1 ) XXZW Investment Group S.A. with its registered office in Luxembourg is directly controlled by Jakub Zabłocki, who holds shares representing 81,97% of the share capital authorising the exercise of 81,97% of the votes at the general meeting of the shareholders of XXZW.

The percentage share in the share capital of the Parent Company of the abovementioned shareholders is in line with the percentage shares in the number of votes at the General Meeting.

The shareholding structure at 30 June 2024 and at the date of this report is shown in the graph below:

According to the best knowledge of the Management Board of the Company, as at 30 June 2024 and as at the date of submitting this periodic report, the number of shareholders holding, either directly or through subsidiaries, at least 5% of the total number of votes at the General Meeting of the Parent Company has not changed compared to 9 May 2024.

4.4 Shares and rights held by Members of the Management and Supervisory board

The table below presents the total number and nominal value of the Company's shares held directly by the Company's managing and supervising persons, as at the date of this report:

NAME AND SURNAME	FUNCTION	OWNED THE NUMBER OF ACTIONS	TOTAL VALUE NOMINAL SHARE (IN PLN)
Omar Arnaout	President of the Management Board	50 717	2 536
Filip Kaczmarzyk	Board Member	35 501	1 775
Paweł Szejko	Board Member	29 358	1 468
Jakub Kubacki	Board Member	20 995	1 050
Andrzej Przybylski	Board Member	7 329	366

During the reporting period and up to the date of this report, there were the following changes in the ownership of the Company's shares by management personnel:

on April 25, 2024, Omar Arnaout subscribed for 20 456 shares of the Company under the incentive scheme;
on April 25, 2024, Filip Kaczmarzyk subscribed for 14 319 shares of the Company under the incentive scheme;
on April 25, 2024, Paweł Szejko subscribed for 10 228 shares of the Company under the incentive scheme;
on April 25, 2024, Jakub Kubacki subscribed for 7 500 shares of the Company under the incentive scheme;
on April 25, 2024, Andrzej Przybylski subscribed for 4 888 shares of the Company under the incentive scheme.

Supervisors did not hold any shares or entitlements to shares in the Company as of the end of the reporting period and as of the date of this report.

5. XTB strategy

The strategy of XTB Group S.A. is based on the following areas of development:

• The development of operations on the markets where the Group is present in Central and Eastern Europe and Western Europe

Key element of the Group's strategy is the use of its competitive advantages in the markets in which it is present, i.e. in the countries of Central and Eastern Europe and Western Europe, in order to increase its market share and take advantage of the growing demand for online investment services.

In Central and Eastern Europe, where XTB has a leading position (Poland, Romania, Czech Republic and Slovakia), the Group intends to continue expanding its customer base through sales and marketing activities aimed at increasing market share and taking advantage of high demand for CFD derivatives.

In Western Europe, where XTB is successfully operating in Spain, Portugal, Germany and France, the Group also intends to increase market share and satisfy demand using a combination of online marketing and educational programs for investors, which will enable to direct the Group's offer to clients with a specific profile.

The Group also expects its activities in online marketing will result in an increase in the number of international active accounts obtained through XTB Limited in the United Kingdom, which come from outside the markets constituting the main area of the Group's operations.

• Expanding the Group's international presence by expanding into new markets, including markets in Latin America, Africa and Asia

The Group intends to develop its operations by expanding into new markets in Latin America, Africa and Asia. The Management believes that both Latin America, Africa and Asia are attractive regions for the FX/CFD market, with high growth potential. Developing operations in these markets, the Group will often be able to take advantage of the first mover advantage. Where it is necessary to conduct business, XTB will apply for the required licenses.

The Group's objective is to expand its operations to new markets by building local sales teams responsible for individual regions, which will enable XTB to adapt marketing campaigns to the specific culture of a given country/region. The Group has the necessary experience in terms of regulatory requirements and practices, it also has a solid capital base and access to advanced technology, which allows it to effectively expand its operations in these markets.

The Group plans to use its presence in Belize as a starting point for expansion and business development in other Latin American countries. Thanks to its presence in Belize, the Group can offer Latin American clients the benefits of a regionspecific approach and build their reputation as a trusted institution using sales, marketing and educational methods adapted to local cultural conditions.

The Group also expects its activities in online marketing will result in an increase in the number of international active accounts obtained through XTB International Limited in Belize, which come from outside the markets constituting the main area of the Group's operations.

• Development of the institutional segment of operations (X Open Hub)

The Management Board plans to further develop cooperation with institutional clients under X Open Hub offering them two categories of products and services: liquidity and transaction technology or both together. The technologies provided by the Group enable its institutional clients to build a transaction environment to offer the same or similar products and services that are available in the Group's portfolio of products and services, and therefore potentially compete with XTB.

The importance of the Group's institutional business segment is systematically increasing, creating the potential for ensuring stable revenues and cash flows due to the growing size of this segment. A more diversified business profile enables the Group to more easily use new business opportunities in the institutional business segment.

The development of the institutional operations segment depends to a large extent on the acquisition of new clients. Contrary to the segment of retail operations, the acquisition of a potential institutional client is a relatively long process, usually lasting up to one year.

• Expanding the Group's product and services offer and developing new technologies

The Group intends to develop its operations by offering new products and services to its customers. For this purpose, the Group will introduce financial products and services that will enable its clients to implement various investment strategies using one integrated transaction platform.

The technologies developed by the Group on its own are designed to ensure its competitive advantage over other suppliers of transaction systems in the field of system quality, as well as to enable to offer to customers more competitive products and services.

• Development through mergers and acquisitions of other entities attractive for the Group, as well as joint ventures

The Group allows investments in attractive companies offering products and services similar to the Group's products and services, which may complement its product, service and geographical offer. It is however assumed, that the main growth of XTB will be organic growth.

6. Other information

6.1 Information on transactions with related parties

During the six months ended 30 June 2024 and 30 June 2023, the Group did not have any transactions with related parties other than on market terms.

The transactions and balances of the Group companies' settlements with related parties are detailed in Note 27. Related party transactions to the semi-annual condensed separate financial statements.

6.2 Information on guarantees given by the parent company or its subsidiaries – to an entity or a subsidiary of that entity for loans or borrowings, if the total value of the guarantees given is significant

As at 30 June 2024 and during the period under review, i.e. from 1 January 2024 to 30 June 2024, neither the parent company nor any of its subsidiaries has given guarantees for loans or credits or guarantees to any other company or to any of its subsidiaries for which the total value of existing guarantees is material.

6.3 The Management Board's position concerning the realization of previous published forecast of the results for the current

Management Board of XTB S.A. did not publish forecasts of financial results for 2024.

6.4 The information on the significant court proceedings, arbitration authority or public administration authority

As of June 30, 2024 and as at the submission date of this report the Parent company and its subsidiaries were not a party to any significant proceedings pending before arbitration authority. The most important of the ongoing proceedings are indicated below.

Court proceedings

The Company and Group companies are parties to several court proceedings related to the Group's operations. The proceedings in which the Company and Group companies appear as defendants are above all related to employees' claims and clients' claims. As at the submission date of this report the total value of the claims brought against the Company and/or the Group Companies amounted to PLN 16,4 million, which consists of one proceeding on employee claims, with a value of approximately PLN 80 thousand, nine suits brought by clients with the total value of PLN 13,6 million and moreover, one proceeding regarding the alleged failure to apply financial security measures by the Company in which, the value of the dispute is PLN 2,8 million.

In addition, there is a case pending before the European Union Intellectual Property Office brought by the Company for cancellation of the conflicting 'XTRADE' trademarks used by Xtrade Europe Ltd.

The most significant proceedings, in the Company's view, are:

lawsuit dated August 2019 regarding Company's alleged illegal actions delivered to the Company in December 2019 value of the claim is PLN 7 million. The management board finds client's claims groundless. The only reason for the loss of the customer was his wrong investment decisions. This has been clearly demonstrated, among others, during the audits of the Polish Financial Supervision Authority (PFSA) in 2016, in the subsequent correspondence of the company with the supervisor, and in the expertise of an independent consultancy company, Roland Berger, which analysed the client's transaction history. The analysis confirmed that the customer's transactions were not delayed, and the timing of his orders was even faster than the average for other clients;
lawsuit dated July 2020, delivered to the Company in November 2020 regarding the alleged failure to apply financial security measures by the Company. Value of the proceeding is approximately PLN 2,8 million. The damages were to consist in the Company's failure to apply financial security measures, which lead to effective appropriation of funds by an employee of the claimant, who was also a client of the Company. The Company considers the charges made in the suit to be completely unfounded. In June 2023, the court of first instance dismissed the lawsuit, finding no material violations on XTB's part. On August 22, 2023, the plaintiff filed an appeal. In September 2023, the files were transferred to the Court of Appeal in Warsaw. In September 2023, the file was transferred to the Court of Appeal in Warsaw, which served the appeal on XTB's attorney in March 2024. On 9 April 2024, a response to the appeal was filed. The court scheduled an appeal hearing for 10 May 2024, the hearing was subsequently postponed to 21 June 2024, 9 July 2024 and 9 August 2024 respectively. At a hearing on 9 August 2024, the Court closed the hearing and gave the parties the floor. Publication of the judgment was adjourned until 9 September 2024.

Administrative and control proceedings

The Company and the Group Companies are party to several control proceedings related to the Group's business. The Company believes that below are presented the most significant among them:

on September 9, 2023, an inspection of the operations of the Company's Czech branch began by the Czech National Bank (CNB). On March 6, 2024, the Company received an inspection report. At the time of submitting the report, the inspection has ended. The company is in the process of implementing the inspection recommendations in accordance with the schedule submitted to the CNB;
on October 17, 2023, an inspection by the Office of the Financial Supervisory Commission began, the purpose of which is to verify that the Company's operations comply with laws, regulations, conditions set forth in permits, fair trading principles or the interests of principals. As of the time of submitting this report, the inspection is ongoing;
on February 12, 2024, an inspection of the operations of the subsidiary XTB International Limited with its registered seat in Belize by IFSC, this is the commission responsible for the supervision over the capital market in Belize. At the date of this report, the company is awaiting receipt of the audit report;

• on 14 February 2024, an audit of the activities of the Company's Spanish branch began by the National Securities Market Commission (CMNV) for compliance with AML regulations. As at the date of publication of the report, the audit is ongoing.

6.5 Regulatory environment

The Group operates in a highly regulated environment imposing on its certain obligations regarding the respect of complying with many international and local regulatory and law provisions. The Group is subject to regulations concerning inter alia (i) sales practices, including customer acquisition and marketing activities, (ii) maintaining the capital at a certain level, (iii) practices applied in the scope of preventing money laundering and terrorist financing and procedures for customer identification (KYC), (iv) reporting duties to the regulatory authorities and reporting to the trade repository, (v) the obligations regarding the protection of personal data and professional secrecy, (vi) the obligations in the scope of investors protection and communicating of relevant information on the risks associated with the brokerage services, (vii) supervision over the Group's activity, (viii) inside information and insider dealing, preventing the unlawful disclosure of inside information, preventing market manipulation, and (ix) providing information to the public as the issuer.

The following are the most significant changes in the company's regulatory environment that will come into effect in the near future. The company is already doing its due diligence to prepare for and adapt to the obligations arising from the indicated regulations.

Act on the protection of whistleblowers (previously: on the protection of persons reporting violations of the law)

On October 18, 2021, the Draft Act on the protection of persons reporting violations of the law was published on the website of the Government Legislation Center. The bill aims to implement Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons reporting breaches of Union law.

The guarantees and legal remedies provided for in the Act will be available to the person reporting the violation, regardless of the basis and form of work (including employment contract, civil law contract, running a business by a natural person, management contract, volunteering, internship and internship), including those performing work for entities with which the employer maintains economic relations, such as contractors, subcontractors or suppliers, and other persons reporting information about violations in the context of with work, such as shareholders and partners and members of the bodies of a legal person. It will be possible to report violations of the law via internal reporting channels established by private and public entities, via external reporting channels to relevant state authorities, and via public disclosure. The act specifies requirements regarding the establishment and internal organization and external channels (procedures and organizational solutions) for reporting violations and rules for public disclosure.

The implementation of the obligation to establish internal reporting regulations by entities in the private sector with at least 50 and less than 250 employees was to take place by 17 December 2023. On 7 July 2023, another version of the bill appeared on the website of the Government Legislation Centre. On 6 March 2024, a draft law (dated 26 February 2024) on the protection of whistleblowers appeared on the website of the Government Legislation Centre, replacing the draft law on the protection of whistleblowers.

On 17 April 2024, the draft was submitted to the Sejm, on 24 April 2024, the draft was referred to the first reading in committees. On 14 June 2024, the actwas passed by the Sejm after considering amendments by the Senate, signed by the President on 19 June 2024 and published in the Journal of Laws on 24 June 2024. The new legislation will enter into force on 25 September 2024, with the exception of the provisions on external notifications, which will take effect three months later – on 25 December 2024.

The company is already making efforts to adapt its internal whistleblowing procedures to the requirements of the draft law.

Regulation of the European Parliament and of the Council on the digital operational resilience of the financial sector and amending Regulations (EC) No. 1060/2009, (EU) No. 648/2012, (EU) No. 600/2014 and (EU) No. 909/2014 (Digital Operational Resilience Act "DORA")

On December 27, 2022, a regulation was published in the Official Journal of the EU, the provisions of which are aimed at ensuring the resilience of financial sector entities to threats related to the use of digital and information and communication technologies (ICT).

Key issues of the regulation include:

rules for managing ICT risks, including the use of third-party technology providers;
obligations to periodically conduct digital resilience testing of systems;
requirement for detailed classification and reporting of incidents;

• introduction of systems for sharing information among financial entities on methods and techniques for effective defence against ICT-related threats.

The regulation came into force on January 16, 2023. The financial sector institutions must comply with its requirements no later than January 17, 2025. The Company is already exercising its due diligence to prepare and comply with its obligations under the regulation.

Draft Act amending certain acts in connection with ensuring operational digital resilience of the financial sector of 5 April 2024

On 18 April 2024, a draft act amending certain acts in connection with ensuring the operational digital resilience of the financial sector was published on the website of the Government Legislation Centre. The bill aims to implement into the Polish legal system and ensure the application of the DORA regulation.

The key issues of the bill include:

the confirmation of the functions and competences of the FSA as the competent authority to supervise the operational digital resilience of the financial sector;
the need to provide the FSA with information on ICT contracts by 31 January each year;
changes to bank outsourcing (including an expanded catalogue of grounds for outsourcing, additional obligations of the bank and the trader in relation to ICT systems) and the power to examine the results of operational resilience tests by the FSA;
in the case of violations penalties for financial entities of up to ca. PLN 21 million (or 10% of revenue), penalties for persons responsible for violations of up to ca. PLN 3 million or a ban on performing the function of a member of the management board, supervisory board or another managerial function for up to 1 year.

The draft is currently at the opinion stage. According to the draft, the act is to enter into force on 17 January 2025.

Draft Act amending the Accounting Act, the Act on Statutory Auditors, Audit Firms and Public Supervision and certain other acts of 17 April 2024

On 19 April 2024, a draft law amending the Accounting Act, the Act on Statutory Auditors, Audit Firms and Public Supervision and certain other laws was published on the website of the Government Legislation Centre. The purpose of the amendment is to implement into the national legal order Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU as regards reporting by undertakings on sustainable development and Commission Delegated Directive (EU) 2023/2775 of 17 October 2023 amending Directive 2013/34/EU of the European Parliament and of the Council as regards the adaptation of the undertaking size criteria for micro, small, medium-sized and large entities or groups. A key objective of Directive 2022/2464 is to ensure that a larger group of companies reports relevant, comparable and reliable sustainability information - of greater use to investors and other stakeholders.

Key issues of the Act include:

the facilitation of accounting for small and micro entities;
the introduction of mandatory sustainability reporting for large entities, listed entities and certain financial institutions and the obligation to attest such reporting;
simplification of group reporting.

The draft is currently at the opinion stage. According to the draft, the majority of the provisions of the Act will enter into force 14 days after promulgation, the amendments relating to revenue thresholds and corporate size criteria will enter into force on 1 January 2025, while the entry into force of the sustainability reporting provisions has been broken down and the provisions will enter into force gradually between 2024 and 2027.

Law of 26 April 2024 on ensuring compliance with the accessibility requirements of certain products and services by economic operators

On 26 April 2024, a law on ensuring compliance with the accessibility requirements of certain products and services by economic operators was adopted at a session of the Sejm. It implements Directive (EU) 2019/882 of the European Parliament and of the Council of 17 April 2019 on accessibility requirements for products and services. The Act aims to ensure that all websites, mobile applications and other digital services are accessible to people with different types of disabilities by adapting digital content to accessibility standards,

The Act will enter into force on 28 June 2025. At the same time, agreements to offer or provide services concluded before the date of entry into force of the Act may continue to apply unchanged until their expiry date, but no later than 28 June 2030, and

a service provider may, until 28 June 2030, offer or provide services using products that do not meet accessibility requirements that it used to offer or provide services of the same type before the date of entry into force of the Act.

Decision on product intervention on the Spanish market

On 11 July 2023, the Spanish National Securities Market Commission ("CMNV") issued a product intervention decision regarding financial contracts for difference and other leveraged products in the Spanish market (the "Decision"). The Spanish supervisory authority has implemented restrictions on the marketing, distribution and sales activities of MiFID II-regulated instruments and services provided to retail clients in Spain. The decision regulates bans and restrictions on CFDs, including in particular on marketing activities:

the direct and indirect marketing, distribution or sale of CFDs by means of communications to retail clients is prohibited – the sale of CFDs is allowed provided that it is at the sole initiative of the investor, as well as investment firms offering CFDs are prohibited from placing promotional information on their website for such products;
sponsoring or organising events, brand advertising, use of public figures, if their purpose or effect is directly or indirectly to advertise CFDs are prohibited;
the Decision also regulates issues such as rules on remuneration of salespeople, the use of partners with unverified knowledge or experience to solicit clients, a ban on accepting cash deposits from clients via credit card, a ban on providing demo accounts and a ban on offering CFD training to the public.

The Decision entered into force on 3 August 2023 and on 12 July 2024, CMNV's interpretive criteria in relation to the implementation of the Decision ("Q&A") were issued. The Management Board assesses that the issued Q&A may have a negative impact in the medium and long term on the number of clients acquired in the Spanish market and, consequently, on the level of revenues achieved in this market.

6.6 Risk factors and threats

The Group within its operations monitors and assesses risks and undertakes activities in order to minimize their impact on the financial situation.

As at 30 June 2024 and as at the date of this report, the Group identifies the following risks associated with the Group's operations and with the regulatory environment.

Risks associated with the Group's operations:

Group's revenue and profitability are influenced by trading volume and volatility in financial and commodity markets that are impacted by factors that are beyond the Group's control;
economic, political and market factors beyond the Group's control may adversely affect the Group's operations and profitability, including, in particular, restrictions on the ability to offer certain financial instruments in certain markets, such as product intervention in 2017-2018;
the Group's operations based on the market making model may cause the Group to incur significant financial losses, but the mitigation measure is a system of limits and risk measurement;
the Group's risk management policies and procedures may not be effective, but they are subject to periodic review and possible adjustment to changing conditions;
the Group is exposed to the risk of disruption or damage to the infrastructure necessary for the Group's operations, but the technical solutions implemented by XTB reduce the level of this risk;
the Group's business depends to a large extent on its ability to maintain its reputation and the general perception of the financial instruments markets, XTB monitors its reputation on an ongoing basis and takes measures to maintain a positive perception of the Company and its products;
the Company may not pay dividends in the future or pay dividends at a lower rate than specified in the Group's dividend policy;
while the Group may not execute its strategy, it is subject to review and possible revision;
the implementation of the Group's strategies in different regions of the world is subject to various region-specific risks, including political instability;
The Group may find it difficult to attract new retail clients and maintain an active retail client base, this may relate to restrictions related to advertising and marketing of certain products, such as the decision of the Spanish National Securities Market Commission on product intervention regarding financial contracts for difference and other leveraged products in the Spanish market, XTB is however changing client perceptions, not only as an investment firm related to contracts for difference, therefore the impact of this regulation is limited;

the Group may be unable to effectively manage its growth;
the Group is exposed to counterparty credit risk, but the risk is mitigated by careful selection of partners and monitoring of their situation;
the Group is exposed to client credit risk;
the Group is exposed to the risk of losing its liquidity;
the Group may lose access to market liquidity;
a change in interest rates may have an adverse impact on the Group's revenue;
the Group operates in highly competitive markets;
the Group may not be able to maintain technological competitiveness and respond to dynamically changing client demands;
the Group may be unable to effectively protect or to ensure the continued use of its current intellectual property rights;
the development of the Group's product and services portfolio and expansion of the Group's operations to include new lines of business may involve increased risks;
the Group may not be able to hire or retain qualified staff;
risks related to the Group's cost structure;
the Group's insurance coverage relating to its operations may be insufficient or not available;
within its operations the Group is significantly dependent on third parties;
the Group may not be able to prevent potential conflicts between its interest connected with its activities and the interests of the clients;
other factors beyond the Group's control could have negative impact on its operating activities.

Risks associated with the regulatory environment:

the Group operates in a heavily regulated environment and may fail to comply with the rapidly changing laws and regulations;
the Group is required to adapt its business to the new PFSA Guidelines and other supervisory authorities (including ESMA), which may force the Group to incur significant financial expenditures and to implement material organisational changes, and may adversely affect the Group's competitive position;
the Company is required to maintain minimum levels of capital, which could restrict the Company's and as a consequence Group's growth and subject it to regulatory sanctions;
the Company may be required to maintain higher capital ratios or buffers;
maximum leverage ratios may be further reduced by regulators;
ithe interpretation of the applicable laws may be unclear, and the laws may be subject to change;
the Group may be exposed to increased administrative burdens and compliance costs as a respect of entering new markets;
the procedures utilised by the Group, including in respect of anti-money laundering, preventing the financing of terrorism and 'know your client', may not be sufficient to prevent money laundering, the financing of terrorism, market manipulation or to identify other prohibited trades; however, the technical and organizational solutions introduced significantly reduce this risk;
the Group may be exposed to risks related to personal data and other sensitive data processed by the Group;
a breach of consumer protection regulations may result in adverse consequences for the Group;
advertising regulations and other regulations may impact the Group's ability to advertise;
changes in tax law regulations specific for the Group's business, their interpretation or changes to the individual interpretations of tax law regulations could adversely affect the Group;
the related-party transactions carried out by the Company and the Group Companies could be subject to inspection by the tax or fiscal authorities;
court, administrative or other proceedings may have an unfavourable impact on the Group's operations, and the Group is exposed, in particular, to the risk of proceedings relating to client complaints and litigation, and regulatory investigation;
as a brokerage house, XTB may be required to bear additional financial burdens under Polish law, including contributions to the investment compensation scheme established by the NDS and contributions for the purpose of financing the PFSA's supervision of capital markets, as well as fees related to the costs of the Financial Ombudsman and his office;
risk related to increased reporting obligations due to the applicability of FATCA and the automatic exchange of information on tax matters;

the Group will be required to observe and to adjust its business to the MiFID II/MiFIR Package after it enters into force, which may be expensive and time-consuming and may result in significant restrictions in terms of the manner and scope in which the Group may offer its products and services;
the risk related to the application of EU law on the implementation of remedial actions and the resolution of financial institutions.

6.7 Risk management

XTB Group's operations are associated with the occurrence of various types of risks that are characteristic of the operating model adopted, which is characterized by the occurrence of significant open positions resulting from market-maker activities, a significant degree of complexity of the ICT infrastructure, a very large number of operations and a large number of legal regulations in force in many different geographical areas in which the Group operates. These risks may pose a threat to the Group itself, to clients and to the financial market as a whole.

In order to control risks, the Group has a risk management system, which consists of policies, procedures, mechanisms and tools to support the processes for managing specific types of risks according to their materiality. The main objectives of the risk management system are to:

identification and determination of the materiality of individual risks,
proper measurement or estimation of the level of risks (for risks that are difficult to measure),
control the level of risk by monitoring limits and taking appropriate action when limits or alert levels are exceeded,
support the achievement of established business objectives by control of the level of risks and ensuring compliance with the risk appetite.

The risk management system is organized along three lines of defence:

the first line of defence is formed by the organizational units whose operational activities give rise to risks, in particular the Trading Department (risks associated with open positions) and the IT Development Department (operational risks associated with the development of systems and their operation),
the second line of defence consists of units that are independent of the business unit and are responsible for measuring, monitoring and reporting risks, including the Risk Control Department,
the third line of defence is the Audit Department, which independently monitors and evaluates the effectiveness of the activities of the first and second lines of defence.

At the strategic level, the Management Board is responsible for establishing and monitoring the risk management policy.

The Risk Management Committee, composed of members of the Supervisory Board, was appointed in the Parent Company. The Committee's tasks include: preparation of a draft document regarding risk appetite of the brokerage house, issuing opinions on management strategy developed by the Management Board, supporting the Supervisory Board in supervising the strategy of the brokerage house in risk management by the Management Board, verification of remuneration policy and principles of its implementation in terms of adjusting the remuneration system to the risk the brokerage house is exposed to, its capital, liquidity and probabilities and dates of obtaining income.

The Risk Control Department supports the Management Board in formulating, reviewing and updating ICAAP rules in the event of the occurrence of new types of risk, significant changes in strategy and operating plans. The Department also monitors the appropriateness and efficiency of the implemented risk management system, identifies, monitors and controls the market risk of the Group's own investments, defines the overall capital requirement and estimates internal capital. The Risk Control Department reports directly to the Member of the Management Board responsible for the operation of the Company's internal control system.

The Parent Company's Supervisory Board approves procedures for internal capital estimation, capital management and planning.

7. Statement by the Management Board

Statement by the Management Board of XTB S.A. on the reliability of preparation of the consolidated and separate financial statements

The Management Board of XTB S.A. declares that, to the best of its knowledge, the consolidated and separate financial statements for period of six months ended 30 June 2024 and comparative data have been prepared in accordance with the applicable accounting principles and reflect in a true, reliable and clear financial and financial situation and the financial result of the Group and the Company, respectively. In addition, the Management Board declares that activity report contains a true picture of the development and achievements of the Group and the Company, respectively, including a description of the basic threats and risk.

www.xtb.com

AI assistant

XTB S.A. — Interim / Quarterly Report 2024

5867_rns_2024-08-20_d6126c29-ae55-4ce4-a26d-5f33fe10bbb0.pdf

CAPITAL GROUP REPORT XTB S.A. FOR THE FIRST HALF 2024

TABLE OF CONTENTS

TABLE OF CONTENTS

FINANCIAL HIGHLIGHTS

FINANCIAL CONSOLIDATED HIGHLIGHTS

FINANCIAL STANDALONE HIGHLIGHTS

HALF-YEAR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

HALF-YEAR CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENT

HALF-YEAR CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

HALF-YEAR CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

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

Half-year condensed consolidated statement of changes in equity for the period from 1 January 2023 to 30 June 2023

HALF-YEAR CONDENSED CONSOLIDATED CASH FLOW STATEMENT

ADDITIONAL EXPLANATORY NOTES TO THE HALF-YEAR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Information about the Parent Company and composition of the Group

1.1 Information on the reporting entities in the Parent Company's organisational structure

1.2 Composition of the Group

1.3 Composition of the Management Board

2. Basis for drafting the financial statements

2.1 Compliance statement

2.2 Functional currency and reporting currency

2.3 Going concern

2.4 Comparability of data and consistency of the policies applied

2.5 The impact of Russia's invasion of Ukraine on the Group's results

2.6 Changes in the accounting policies

2.7 New standards and interpretations which have been published but are not yet binding

3. Professional judgement

Revenue recognition

3.1 Material estimates and valuations

3.2 Impairment of assets

Deferred income tax assets

3.3 Fair value measurement

3.4 Other estimates

4. Adopted material accounting principles

5. Seasonality of operations

6. Operating income

6.1 Result of operations in financial instruments

6.2 Income from fees and charges

6.3 Geographical areas

7. Salaries and employee benefits

8. Marketing

9. Other external services

10. Commission expenses

11. Finance income and costs

12. Segment information

13. Cash and cash equivalents

Broken down by type:

Own cash and restricted cash – customers' cash:

14. Financial assets at fair value through P&L

15. Financial assets at amortised cost

Movements in impairment write-downs of receivables

16. Intangible assets

Intangible assets in the period from 1 January 2023 to 31 December 2023

Intangible assets in the period from 1 January 2023 to 30 June 2023

17. Property, plant and equipment

Property, plant and equipment in the period from 1 January 2023 to 31 December 2023

Property, plant and equipment in the period from 1 January 2023 to 30 June 2023

Non-current assets by geographical area

18. Amounts due to customers

19. Financial liabilities held for trading

20. Liabilities due to lease

21. Other liabilities

Program of variable remuneration elements

22. Provisions for liabilities and contingent liabilities

22.1 Provisions for liabilities

Movements in provisions in the period from 1 January 2024 to 30 June 2024

Movements in provisions in the period from 1 January 2023 to 31 December 2023

Movements in provisions in the period from 1 January 2023 to 30 June 2023

22.2 Contingent liabilities

23. Equity

Share capital structure as at 30 June 2023

Shareholding structure of the Parent Company

Other capitals

24. Profit distribution and dividend

25. Earnings per share

26. Current income tax and deferred income tax

26.1 Current income tax

XTB S.A. Interim / Quarterly Report 2024