Futu Announces Q4 and Full Year 2023 Results

(Hong Kong – 14th March 2024) Futu Holdings Limited (Nasdaq: FUTU) ("Futu" or the "Company"), a leading tech-driven digitalized brokerage and wealth management platform, today announced its unaudited financial results for the fourth quarter ended December 31, 2023 (the "Period") and the full year. 

In the fourth quarter, Futu's total revenues reached HK$2,373.3 million (US$303.8 million), up 4.1% YoY; its non-GAAP net income reached HK$950.5 million (US$121.7 million). In terms of different businesses, its brokerage commission and handling charge income totaled HK$904.0 million (US$115.7 million); interest income reached HK$1,331.9 million (US$170.5 million); other income (including income from wealth management and corporate services businesses) amounted to HK$137.3 million (US$17.6 million).

For the full year of 2023, Futu's total revenues grew 31.4% YoY to HK$10,008.4 million (US$1,281.3 million); its non-GAAP net income reached HK$4,569.8 million (US$585.1 million), up 45.9% YoY.

By the end of 2023, Futubull and moomoo's users grew 10.5% YoY to 21.64 million; registered clients rose 10.2% YoY to 3.56 million; paying clients increased 15% YoY to 1.71 million, with 59,000 newly onboarded in the fourth quarter and over 220,000 throughout the whole year. Client assets reached HK$485.6 billion (US$62.16 billion), up 16.3% YoY. The client retention rate remained high at above 98% during the fourth quarter.

The Company stepped up its overseas expansion and entered a new stage of internationalization in 2023. Its overseas brand moomoo was officially launched in Canada and Japan and soon became a market hit. As for Southeast Asia, moomoo strengthened its leading position in Singapore and extended its reach to the neighboring country. In February 2024, just one week after landing officially in Malaysia to provide Malaysia and US stock trading, the Company attracted over 30,000 registered clients, unlocking another fast-growing market. Client acquisition also improved in other countries and regions as stock markets rallied. The increase in paying clients and client assets in the first two months of 2024 already exceeded that in the fourth quarter of 2023.

"We maintained our position as the market leader in Hong Kong SAR and Singapore in 2023, with our products and services enjoying remarkable popularity among high-quality clients. Meanwhile, we made outstanding achievements in our global expansion as our localized operations in overseas markets garnered the recognition and trust of numerous users. In the fourth quarter, we achieved profitability in a single overseas market for the first time, marking a significant milestone in our internationalization journey. Looking ahead, we are confident that Futu's overall business will discover new growth opportunities in a promising future." said Mr. Leaf Hua Li, Futu's Founder, Chairman, CEO & Chairman of the Technology Committee.

Secured Leading Position in HK and Won Favor Among Local High-Quality Clients

In the past quarter, Futu further established itself as the leading player among Hong Kong brokerages and achieved several industry breakthroughs, which earned the trust of high-quality clients. As the most popular digitalized brokerage in Hong Kong, its app, Futubull, has remained the most downloaded Hong Kong stock trading app for three consecutive years.

Cash Plus, the Company's wealth management tool investing in money market funds (MMFs) with low thresholds, stable returns, and flexibility, received an exceptional market response as investors sought to grow their idle cash. Futu's powerful products boosted the number of MMF investors by 34.2% YoY and AUM by nearly 80% YoY to HK$16.8 billion. Wealth management AUM in the local market thus advanced to a higher level.

Futu further refined the investing experience by offering investors more cost-effective choices, including being the first Hong Kong brokerage to allow IPO subscriptions at 0% financing interest. The Company marked another first as it started providing free Lv1 real-time quotes for Hong Kong investors for a better trading experience.

First Profitable Quarter in SG and Robust Growth in High-Net-Worth Individual Business

Futu's overseas brand moomoo gained fruitful results across markets, closing another successful quarter for its internationalization strategy.

As moomoo reaffirmed its leading position in Singapore, the Singapore branch surpassed the break-even point and made a profit for the first time. Such growth momentum carried on to the beginning of 2024, and great growth potential lies ahead.

The moomoo app led Singapore brokerage rankings in accumulated downloads and DAUs. The Company's retail business remained on the fast track. Multiple channels for client acquisition were all proved effective, and users had greater recognition for this trading platform. As of year-end 2023, client assets surged 115.8% YoY.

Moomoo became increasingly attractive to local high-net-worth individuals. By the end of the last quarter, the average assets of paying clients in Singapore exceeded HK$100,000 (approximately S$17,000). In February 2024, Moomoo Financial Singapore Pte. Ltd. became the first digitalized brokerage in Singapore to receive in-principle approval for a major payment institution license in digital payment token services. Moreover, the Company earned the Best Retail Broker Award from the Securities Investors Association (Singapore).

Based on its advantages in Singapore, moomoo extended its influence to other Southeast Asian countries. In February 2024, moomoo officially landed in Malaysia and acquired over 30,000 clients in just one week. There is great potential to replicate the successful experience in Singapore and fully tap into the local market's potential.

Secured Notable Achievements in New Overseas Markets

In the US, moomoo partnered with the CBOE Options Exchange to offer index options trading. In Australia, moomoo launched more types of features and investment products, including the wealth management tool Cash Plus. Its mobile app drawing tools received a patent from IP Australia.

The Company's business flourished in its two new markets, Japan and Canada. Moomoo app ranked among the top three most downloaded stock trading apps in Japan, ahead of established brokerages such as Nomura and Matsui. In Canada, moomoo launched Canadian stock trading and saw registered users soar 258% QoQ in the fourth quarter. The moomoo app also made its way to the top three most downloaded online stock trading apps among local Android users. In Malaysia, moomoo's potential user group kept expanding, making it the most downloaded online stock trading app by the end of 2023. 

Apart from its popularity among overseas investors, moomoo also won numerous prestigious awards. In the past quarter, it added two more feathers to its cap after winning the Benzinga 2023 Global Fintech Award for Best Day Trading Software in the US and Money's Best of the Best 2024 - Online Broker Rising Star award in Australia.

Wealth Management Business Maintained Rapid Growth with More Diversified Products 

The Company's wealth management business continued its rapid growth in the fourth quarter. The AUM of Futu Money Plus surpassed HK$57.5 billion, up 82.3% YoY. In particular, the AUM in mutual funds surged 57.5% YoY, and that in alternative products (including bonds) skyrocketed 245.3% YoY.

Overseas markets became major growth engines. The Singapore market played an indispensable role, with client AUM up 45.4% QoQ and fund investors up nearly 20% QoQ. It's noteworthy that 40% of the increase in the AUM of the Company's wealth management business came from Singapore alone.

Futu Money Plus deepened collaborations with renowned global financial institutions to enrich its product offerings. The number of its partners had totaled 82 by the end of 2023. In response to the HK market's demand, the Company expanded its product range to cover nine major types of structured notes. Moreover, it was the first brokerage in HK to enable decumulator trading. Working with Fullerton, it rolled out the first T+0 SGD money market fund targeting individual investors in Singapore, meeting their demand for flexible subscription and redemption.

Defended Position as No. 1 HK IPO Underwriter by Volume and Unveiled First Online Blocktrade Platform

Futu's corporate services continued empowering the real economy. It led as an underwriter for 37 Hong Kong IPOs throughout 2023, ranking first among local brokerages for the second consecutive year. By the end of the fourth quarter, the Company had provided IPO and IR (investor relations) services for 414 enterprises, up 24.3% YoY.

Futu's famous IPO clients during the Period included J&T Express and UBTech. With support from leading institutions such as the NYSE, Nasdaq, and SGX, it released the Annual Review of Listed Companies for the fourth year in a row. The fourth quarter also witnessed the launch of Hong Kong's first online blocktrade platform, which upgraded the traditional block trading experience and enhanced trading efficiency[1]. 

[1]The online blocktrade services are provided by licensed institutions under Futu Holdings. Clients can operate through the Futubull platform. 

This article may include forward-looking statements, which represent the Company's expectations and views of future events, which by nature are not certain and can be affected by factors outside of the Company's control. These statements are based on current plans, estimates, and projections, and you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. For more information about the potential risks and uncertainties, please refer to the Company's filings with the SEC, including its annual report.