Futu Announces Q2 2024 Results: Total Revenues Up 25.9% YoY, with Enhanced Strategic Diversification

Hong Kong - August 20, 2024 - Futu Holdings Limited ("Futu" or the "Company") (Nasdaq: FUTU), a leading tech-driven digitalized brokerage and wealth management platform, today announced its unaudited financial results for the second quarter ended June 30, 2024 (the "Period").

In the second quarter, Futu's total revenues reached HK$3,129.0 million (US$400.7 million), up 25.9% year-over-year ("YoY"); its non-GAAP net income reached HK$1,296.2 million (US$166.0 million), up 8.6% YoY. In terms of different businesses, its brokerage commission and handling charge income totaled HK$1,376.3 million (US$176.3 million), up 44.5% YoY; interest income reached HK$1,591.7 million (US$203.8 million), up 13.2% YoY; other income (including income from wealth management and corporate services businesses) amounted to HK$161.0 million (US$20.6 million), up 27.2% YoY.

By the end of this Period, Futubull and moomoo's users grew 13.3% YoY to 23.26 million; registered clients rose 19.1% YoY to 4.05 million; paying clients increased 28.8% YoY to 2.04 million. Over 155,000 new paying clients were added in the quarter, representing a 167.8% increase over the previous year. Client assets reached HK$579.3 billion (US$74.19 billion). Total trading volume approximated HK$1.6 trillion (US$207.7 billion). The client retention rate stayed high at above 98%.

Futu maintained stable growth in Hong Kong ("HK"), securing its position as the local industry leader. The numbers of users, paying clients, as well as market penetration remained in an uptrend, and the deposits from clients strongly increased. Furthermore, the Company continued the strong momentum in various overseas markets. In Singapore, moomoo, Futu's overseas independent brand, saw the number of its users surpass one million, and posted double-digit sequential growth in client assets for eight consecutive quarters, doubling YoY. The US and Australia recorded sustainable growth, with double-digit quarter-over-quarter ("QoQ") growth in client assets. In markets such as Canada, Japan, and Malaysia, the numbers of paying clients all posted high double-digit growth QoQ.

Thanks to its diverse offerings and the overall uptrend in stock markets, Futu achieved a remarkable increase in trading activities on its platforms. The global trading volume and daily average revenue trades ("DARTs") of HK and US stocks hit one-year highs, contributing significantly to growth in the second quarter. Meanwhile, as a one-stop investment platform, Futu continued its diversification strategy by launching new products and services in multiple markets, empowering investors worldwide.

"Heading towards our 12th anniversary, we are delighted to see that we have achieved excellent results in developing markets, expanding asset classes, and extending our global influence. In HK, we reinforced our leading position by continuously expanding the trade offerings, bringing diverse investment choices to local investors. In overseas markets, building on our core advantages in market data, trading capabilities, financial news, and interactive social features that we accumulated over the years, we gradually earned the support and trust of global investors, marking remarkable achievements in our global expansion. During the first half of 2024, we have achieved 83% of our annual new paying client guidance. Given the strong year-to-date momentum, we would like to raise our full-year guidance from 400,000 to 550,000 new paying clients in 2024. In the future, we'll stay true to our vision and mission as we continue to help investors seize global investment opportunities and create long-term value for them using the power of technology," said Mr. Leaf Hua Li, Futu's Founder, Chairman, CEO & Chairman of the Technology Committee.

Secured Quality Growth and Expanded Diversification Strategy in HK
In the second quarter, Futu strengthened its leading position in HK, becoming more attractive to local investors. After 12 years' dedication to the local market, the Company continued to grow and achieved double-digit QoQ growth in the deposits from paying clients and high-net-worth individuals. Growing client assets and improved client quality injected sustained momentum into the Company's development.

During this Period, the trading volume and DARTs of HK and US stocks posted double-digit QoQ growth in HK market. The quarter also witnessed Futu's fruitful results in diversification initiatives. In April, the Company launched Japanese stock trading in HK, providing local investors with comprehensive Japanese stock quotes and trading features. Singaporean stock trading was also launched in HK in August. Moreover, Futu was the first platform in HK to launch ChinaAMC Bitcoin and Ethereum ETFs (both are unlisted classes). Futu started offering licensed crypto trading services in August, enabling eligible clients (including retail investors) to trade Bitcoin and Ethereum with US dollars and HK dollars.

As HK investors showed increased interest in funds and bonds, Futu's wealth management business experienced significant growth, with both the number of fund investors and assets under management ("AUM") steadily rising. In order to serve high-net-worth clients with customized solutions, Futu upgraded its capabilities in private wealth management. The Company's family office services drove net deposits growth in HK, fueling the development of the business.

Futu's trading app Futubull topped the download charts of HK stock trading apps since 2020, and its DAUs also ranked first among its peers in the quarter*.

Diverse Asset Classes and Comprehensive Trading Capabilities Meet Global Investors' Needs
Moomoo continuously enhanced its international presence, and won recognition among global investors. The Company’s broad product range, including stocks, bonds, and funds, drove significant growth in overseas markets.

The Company continued to refine its advantages in US stock trading. In the second quarter, it forged a global strategic partnership with Nasdaq to offer global users LV2 TotalView real-time quotes for US stocks**. To meet increasing demand from local investors, it launched US options trading in Australia, as well as recurring investment and fractional trading for US stocks in Australia and Malaysia, which all received positive market responses. Upgraded products and services increased trading volume in seven markets, with exceptionally high QoQ increases in Japan and Canada, and also brought the global US stock trading volume up by 84.1% YoY.

There was a sharp rise in the trading activities of HK stocks. In the second quarter, HK stock global trading volume and DARTs reached one-year highs. HK and the US saw a steady increase in trading volume, while Singapore and Australia doubled YoY.

Beyond US and HK stocks, Futu also enhanced its capabilities for other stocks. During the Period, moomoo launched Japanese stock trading in Singapore. In Australia, it officially became a CHESS-sponsored broker, and Australian stock trading volume skyrocketed by 204.1% YoY. Additionally, moomoo upgraded its Canadian stock trading services in Canada, doubling the trading volume on a QoQ basis.

To meet investors' increasingly diversified needs for asset allocation, Futu significantly improved its bond and fund classes, resulting in impressive outcomes. Futu announced that its wealth management business surpassed US$10 billion in AUM in the second quarter, with the bonds AUM rising by 23.4% QoQ. Money market funds remained a sought-after category, with AUM in HK and Singapore registering a rapid increase.

Global CSR Initiatives to Support Local Communities
As a responsible financial technology company, Futu not only focuses on global expansion but also devotes itself to corporate social responsibility practices and financial education. It has been supporting Oxfam Trailwalker, the largest hiking fundraising event in HK since 2014, and will continue to support it for six consecutive years as a principal sponsor. Moomoo Foundation, which was established earlier this year, worked with renowned universities, institutions, and industry experts this quarter, to continue to promote financial literacy and financial inclusion with the aim of "Fintech for Social Good".

* Source: Downloads of stock trading apps in Hong Kong SAR (from App Store and Google Play) from January 1, 2020 to June 30, 2024, recorded on data.ai
  (formerly App Annie)
** Futu offered free trial of Nasdaq TotalView to all registered users from May 1 to August 1 (Eastern Standard Time), 2024.
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