Trading 212’s Financial Triumph; Soaring Revenue In 2022

Trading 212’s Financial Triumph; Soaring Revenue In 2022

In the latest filing with Companies House, it was revealed that the UK branch of Trading 212 concluded 2022 with impressive financial results. The company achieved a revenue exceeding £98.7 million and a pre-tax profit of over £50.8 million. This marks a 5 percent increase in revenue compared to the previous year’s £94 million.

While the overall revenue growth is positive, there were some fluctuations in specific financial aspects. The trading platform experienced a decline in other operating income, which decreased from £4.5 million to £1.7 million. At the same time, administrative expenses rose from £42.4 million to £49.1 million. These changes influenced the company’s profitability.

Despite a significant increase in financial income, Trading 212 also faced a rise in financial expenses. The expenses surged from £265,181 to £918,724. Consequently, the pre-tax profits experienced a decline of more than 9 percent. The company’s net profit from its UK operations amounted to £41.1 million, which is 9 percent lower than the previous year’s £45.2 million.

Trading 212 is a well-established brokerage brand known for offering both contracts for differences (CFDs) and a stockbroking platform. Their growth strategy centers around the stockbroking segment of the business and focuses on increasing the value of client funds and asset balances.

According to the Companies House filing, while market trends and activity play a role in the company’s growth, it is primarily driven by the increasing popularity of Trading 212’s platform and product offerings.

Trading 212’s Brexit Strategy

After temporarily suspending client onboarding in 2021 due to rapid growth, the UK broker voluntarily resumed the process and successfully onboarded 165,968 new customers between August and the end of the year.

In addition to its presence in the UK, Trading 212 has established a strong foothold in the European Union. To navigate the changes brought about by Brexit, the company transferred approximately 14 percent of its customers from the UK to its Cyprus-regulated entity, Trading 212 Markets Limited. Although the transfer was initially expected to conclude in 2022, it will now be finalized in 2023.

Trading 212 operates through four entities under its holding company, Trading 212 Group Limited. In the 2021 financial year, the group reported a noteworthy 11.2 percent increase in total revenue, reaching £138.7 million. Pre-tax profits also surged by an impressive 473 percent, amounting to £86 million. However, the group company has yet to disclose its financial figures for 2022.

These developments highlight the continued growth and success of Trading 212 as it expands its customer base, navigates regulatory changes, and maintains its position as a leading brokerage brand.