eToro (UK) Limited reported net income of $264.2 million for the year ended Dec. 31, 2021, a 531% increase from $41.9 million in 2020, according to accounts filed with Companies House.
The social trading platform’s operating profit rose to $6.2 million from $2.1 million in the prior year. Profit before tax increased 74% to $3.8 million, while profit after tax reached $3.0 million compared to $1.8 million in 2020.
The company attributed the revenue surge to significant growth in its UK client base, an influx of new users, and the transfer of existing clients from other eToro entities to the UK operation. Trading commissions totaled $307.9 million, up from $42.5 million, though trading costs also rose substantially to $62.1 million from $5.8 million.
Administrative and operating expenses climbed to $258.0 million from $39.8 million, driven by increased intercompany costs from eToro Ltd for sales, marketing and trading services, along with higher staff costs and professional fees.
eToro UK received a capital injection of $22.8 million via a perpetual capital note issued to eToro Group Ltd in February 2021 to meet regulatory capital requirements. The company’s regulatory capital stood at $32.5 million at year end.
Client money held in fiduciary capacity totaled $322.2 million across multiple banks, with client custody assets reaching $394.5 million. Average headcount increased to 47 employees from 29 in the prior year.
The company paid no dividends during the period.
