Futu Announces Q3 2024 Results: Net Income Up 20.8% YoY as Localization Strategy Spurs Global Business Growth

Hong Kong - November 19, 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 third quarter ended September 30, 2024 (the "Period").

In this quarter, Futu's total revenues reached HK$3,436.1 million (US$442.3 million), up 29.6% year-over-year ("YoY"); its non-GAAP net income reached HK$1,398.4 million (US$180 million), up 20.8% YoY. In terms of different businesses, its brokerage commission and handling charge income totaled HK$1,528.9 million (US$196.8 million), up 51.5% YoY; interest income reached HK$1,698.8 million (US$218.7 million), up 12.9% YoY; other income (including income from wealth management and corporate services businesses) amounted to HK$208.5 million (US$26.8 million), up 52.1% YoY.

By the end of this quarter, Futubull and moomoo's users grew 14.4% YoY to 24.1 million; registered clients rose 22.8% YoY to 4.28 million; paying clients increased 33.1% YoY to 2.2 million. Over 154,000 paying clients were added in Q3, representing a 138% increase over the previous year. Client assets reached HK$693.4 billion (US$89.2 billion). Total trading volume approximated HK$1.9 trillion (US$245 billion). The client retention rate stayed high at above 98%.

Growth in newly penetrated markets was particularly strong this quarter, with Japan, Canada, and Malaysia experiencing double-digit quarter-over-quarter ("QoQ") increases in both paying clients and client assets. Furthermore, the rising US stock market boosted investor activities on Futu's platforms, leading to a 23% QoQ and 90% YoY growth in the company's US stock trading volume.

"The continuous rise of the US stock market in Q3, coupled with the rally of Chinese assets at the end of September, spurred investors' trading activities on our platforms, underscoring Futu's strategic significance of diversification in asset classes. This quarter, we continued to invest in the Hong Kong ("HK") market to improve local investors' investment experience. Also, we enhanced our presence in overseas markets by rolling out products to address local investment needs. With a global vision, we will remain dedicated to continuously strengthening our platforms, and empowering investors with global financial opportunities through technology," said Mr. Leaf Hua Li, Futu's Founder, Chairman, CEO & Chairman of the Technology Committee.

Optimized Services in HK Drove Growth, Earning Increased Recognition With High-Net-Worth Clients

Futu has established a solid user base in HK during the past 12 years. In Q3, the Company further solidified its competitive position, achieving expansion in client growth and market share. HK client assets posted double-digit QoQ growth in total amount and average aspect, with a rapid increase in asset inflow from high-net-worth clients.

Futu’s continuous success in HK was driven by its focus on refined operations and premium services. The Company expanded its physical presence in Q3, opening two new stores in Tsuen Wan and Mong Kok, followed by another store in Causeway Bay in October. Additionally, Futu moved the office to a larger space in Admiralty in April. With five service points, Futu enhanced its ability to serve more local investors by offering timely support and providing spaces for them to communicate and learn investment skills. The Futubull Universal Account and Membership Program were also launched in Q3. These initiatives reflected Futu’s commitment to relentlessly enhancing the investment experience for local investors by providing more convenient, attentive, and high-quality services.

In addition, Futu continued to expand its products in HK, including cryptocurrency and Singapore stocks, to provide clients with more investment choices. The diverse offerings enabled HK investors to capture the opportunities in Q3. Trading volume for US stocks, Japanese stocks, and China A-shares via Stock Connect on Futubull surged in the quarter, and that for the HK stock remained the highest among local digital brokerages. With the rebound in Chinese assets in late September, the Company experienced a significant surge in trading volume and number of traders in HK stocks and China A-shares via Stock Connect, cementing Futubull as a go-to trading platform for HK investors.

Localization Strategy Propelled Overseas Business Growth

In its global expansion, the Company remains committed to a localized market strategy, tailoring its offerings and services to address the needs of local investors. In Q3, the Company launched the Dividend Reinvestment Plan for US stocks in Australia, catering to local investors' preferences. As Australian investors' enthusiasm for ETFs grew, the Company optimized the ETF page on its app to provide updates on market trends and help users make investment strategies. In response to the growing demands for diversified investment choices in Japan and Malaysia, the Company introduced fund products for local investors in both markets.

Such a deepened localization strategy has propelled strong business growth. The Company saw noticeable increases in paying clients across all six overseas markets, with double-digit QoQ increases in Japan, Canada, Malaysia, and Australia. Malaysian users, in particular, exceeded half a million within just seven months since the brand's inception, establishing moomoo as an emerging force in the local financial services market. Client assets also surged across markets, with high double-digit QoQ growth in Malaysia and Canada, and triple-digit YoY growth in the US, Singapore, and Australia.

To strengthen connections with local investment communities and promote financial literacy, moomoo brought its flagship investment event, MooFest, to Singapore, Malaysia, and Japan in Q3, drawing the participation of nearly 10,000 investors.

Expanded Product Offerings and Enhanced Trading Capabilities

In Q3, the Company continued to enhance its platform by diversifying asset classes, aiming to connect local investors with global investment opportunities. In Malaysia, moomoo expanded access for local investors with Singapore stocks, HK stocks, and China A-shares via Stock Connect, elevating its trading capabilities. Moomoo Malaysia became the first licensed brokerage in the country to offer US options. In Japan, moomoo continuously built out its US stock trading capabilities, making it the leading online broker that offered the most US stocks in 24/5 trading hours in Q3. HK and Singapore launched crypto trading services, which received positive feedback and saw steady growth in the number of traders and trading volume throughout the quarter.

The global expansion of the wealth management business also accelerated, driving total assets under management to HK$97 billion, with a record-breaking QoQ growth of 22%. By the end of the third quarter, Futu had partnered with 91 financial institutions, providing a wider array of investment products and services to global investors.