CAB Payments, a publicly-listed company in the cross-border payments and foreign exchange market has announced its financial results for 2023. According to the report published today (Tuesday) it achieved an increase of 25% year-on-year (YoY) in gross income, reaching £137.1 million compared to £109.4 million in 2022.

CAB Payments Reports Strong Growth in 2023 Despite Challenges

The growth was driven by income improvements across all four client segments, with Wholesale FX and Payment FX income rising 28% YoY. Adjusted EBITDA also saw a significant uplift of 17%, reaching £64.6 million, although the adjusted EBITDA margin slightly decreased to 47% from 50% in 2022.

Despite the strong performance, EBITDA was down 12% at £43.5 million, largely due to IPO-related costs. The net income per share also turned out to be 29% worse than that of the previous year, dropping from 14 to 10 pence. However, the company's client base and banking partnerships continued to expand, with total active clients increasing 12% to 509 and banking partners growing 16% to 331, including a growth of 17% in payment partners.

“2023 was another year of strong growth for the Group,” Bhairav Trivedi, the new Chief Executive Officer of CAB Payments , commented. “We attracted 83 new clients to an already high-quality list, made up of G10 government entities.”

The company's gross income by product type showed an elevation of 8% in FX income, reaching £68.5 million, while payments income grew 2% to £34.2 million. Total transactional income increased 6% to £102.7 million, and other banking services saw a significant advancement of 179%, contributing £34.3 million to the overall gross income.

CAB Payments is in the final stages of obtaining its EU license and expects to receive its US authorization in the second half of 2024. These licenses are expected to open up significant additional sales channels for the company, particularly among high-quality development organizations and remittance providers that move considerable sums into CAB Payments' key markets.

Financial Firms Report 2023 Earnings

Numerous companies within the payment, finance, and broader fintech sectors have reported their earnings for the last calendar year in March. Among these, Up Fintech, also known as Tiger Brokers, shared its unaudited financial results for both Q4 and the entirety of 2023. The trading brand operator disclosed a total revenue of $70 million for the fourth quarter, marking an elevation of 9.6% YoY. For the full year, the company's revenues reached $272.5 million, demonstrating a growth of 20.9% compared to 2022.

Mid-month, iSAM Securities, the British division of the multi-billion dollar iSAM Group's trading arm, released its financial figures for the fiscal year ending in June 2023. The firm announced revenues of £31.6 million with an operating profit of £176,000. This represents a decline of almost 11% from the previous year's performance, which the company attributes to a marginally subdued trading atmosphere.

Additionally, early March reports by Finance Magnates highlighted the financial outcomes of the UK branch of XTB. This entity saw a revenue increase of 21% and a net profit surge of over 100% in 2023, coinciding with the favorable preliminary results of the whole publicly traded fintech group disclosed at January's end. The brokerage reported a rise of more than 90% in the number of active clients.