On August 20th, leading securities trading and wealth management fintech company, Futu Holdings (Nasdaq: FUTU, hereinafter referred to as "Futu" or "the Company"), announced its unaudited financial report for the second quarter of 2024.
In the second quarter, Futu's total revenue was HKD 3.129 billion (approximately USD 401 million), a year-on-year increase of 25.9%. Under non GAAP accounting standards, net profit of HKD 1.296 billion (approximately USD 166 million) was achieved, a year-on-year increase of 8.6%. Classified by business, transaction commission and fee income for the second quarter of 2024 was HKD 1.376 billion (approximately USD 176 million), a year-on-year increase of 44.5%. Interest income was HKD 1.592 billion (approximately USD 204 million), a year-on-year increase of 13.2%. Other income (including wealth management, corporate services, etc.) was HKD 161 million (approximately USD 20.62 million), a year-on-year increase of 27.2%.
As of the end of the second quarter, the registered users of Futu Niuniu and Moomoo applications reached 23.26 million, a year-on-year increase of 13.3%; The number of account opening customers reached 4.046 million, a year-on-year increase of 19.1%; The total number of clients with assets increased to 2.042 million, a year-on-year growth of 28.8%. The net increase in the number of clients with assets in the second quarter was 155000, a year-on-year increase of 167.8%. At the end of the period, customer assets reached HKD 579.3 billion (approximately USD 74.19 billion), and total customer transactions amounted to approximately HKD 1.6 trillion (approximately USD 207.7 billion). The customer retention rate remains at a high level of over 98%.
Futu is steadily developing in the Hong Kong market and has a stable industry position. The number of users, asset customers, and market penetration in Hong Kong, China continues to expand, and new customer investments continue to increase. In addition, multiple overseas markets have also shown strong growth momentum: during the period, the number of users in Singapore exceeded 1 million, and the customer asset size at the end of the quarter maintained double-digit growth for eight consecutive quarters, doubling year-on-year; The business in the United States and Australia has steadily improved, and the customer asset size at the end of the quarter has also achieved double-digit growth compared to the previous quarter; New markets such as Canada, Japan, and Malaysia have seen double-digit growth in the number of asset customers compared to the previous period.
With the advantage of the platform's multi asset trading capability and the overall impact of the stock market environment, Futu's trading activity has significantly increased in this quarter. Hong Kong and US stocks have shown strong growth, with global trading volume and daily average earnings trading (DARTs) reaching new highs in the past year, becoming a major driving force for growth in the second quarter. At the same time, as a one-stop global financial services platform, Futu continues to promote its diversification strategy, launching new products and services in multiple markets, and continuously empowering global investors.
Li Hua, founder, chairman, chief executive officer and chairman of the technical committee of Futu Holdings, said: "On the occasion of Futu's 12th anniversary, we are pleased to see that Futu has made outstanding achievements in market layout, asset category expansion, brand influence and other aspects. In Hong Kong, China, we maintain our leading edge, continue to expand the variety of trading products, and bring more diversified investment options to investors in Hong Kong, China. In many overseas markets, the platform has gradually gained the support and trust of investors in various regions by virtue of its core advantages accumulated in market, trading, information, social networking and other aspects, and has made remarkable progress in internationalization. In the first half of 2024, Futu's global net increase in asset customers has completed 83% of the annual customer guidance. Based on the growth trend, We will increase the annual customer guidance from 400000 to 550000. In the future, we will maintain our original intention and continue to use technological power to assist investors in seizing global investment opportunities and creating long-term value for them
The Hong Kong market in China achieves high-quality growth and continues to promote diversified layout
In the second quarter, Futu's advantage in the Hong Kong market continued to expand, and its attractiveness to local investors continued to rise. Thanks to years of deep cultivation and meticulous work, the net investment of Chinese Hong Kong customers and the new investment of high net worth customers have achieved double-digit growth compared to the previous period. The continuous improvement of customer assets and customer quality in the Hong Kong market has injected growth momentum into Futu.
During the period, Hong Kong and US stocks in the Chinese Hong Kong market achieved double-digit month on month growth in trading volume and DARTs. Excellent performance has also been achieved in the process of diversification. In April, the Hong Kong market launched Japanese stock trading, providing comprehensive Japanese stock market trends and trading functions for local investors; Singapore stock trading also went online in August; In addition, Futu has become the initial public offering platform for Huaxia Bitcoin ETF and Ethereum ETF (both of which are non listed shares); In August, Futu Securities was licensed to launch cryptocurrency trading services, supporting eligible clients (including individual investors) to trade Bitcoin and Ethereum in US dollars and Hong Kong dollars.
With the increasing enthusiasm of Hong Kong investors for funds and bonds, the wealth management business in Hong Kong has also experienced strong growth, with the number and amount of holdings continuing to increase. To meet the customized asset allocation needs of high net worth individuals, private wealth management businesses are constantly upgrading, and family office businesses are contributing new capital to Hong Kong, China, becoming a sustainable driving force for business growth.
Futu Niuniu has long been widely supported by users in Hong Kong, China. Since 2020, its download volume has consistently ranked first among stock trading applications in Hong Kong, China, and its daily active users have long been at the top of the industry in Hong Kong.
Diversified asset advantages+comprehensive trading capabilities meet the needs of global investors
Under the international strategic layout, the independent overseas brand Moomoo of Futu has continuously penetrated into overseas markets, and its influence has gradually gained recognition from global investors. Thanks to its diversified layout in various investment products such as stocks, bonds, and funds, Futu has achieved strong growth in the international market.
In terms of US stocks, Futu continues to strengthen its trading advantages, driving a year-on-year increase of 84.1% in global US stock trading volume. During the period, Futu reached a global strategic cooperation with Nasdaq, bringing investors an exclusive Level2 deep market experience season for the US stock market. In addition, Futu focuses on the needs of users in various markets and has launched US stock options in Australia; New US stock fixed investment and fractional trading in Australia and Malaysia have been well received by local investors. The upgrade of product services has driven strong growth in seven major markets, among which the trading volume of US stocks in Japan and Canada has shown impressive month on month increases.
The trading activity of Hong Kong stocks has also significantly increased. In the second quarter, the global trading volume of Hong Kong stocks and DARTs jumped to a new high in the past year. The trading volume of Hong Kong stocks steadily increased in Hong Kong and the United States, while it doubled year-on-year in Singapore and Australia.
In addition, Futu has strengthened its coverage of the global stock market and comprehensively upgraded its platform's stock trading capabilities. In the second quarter, the Singapore market launched Japanese stock trading; In the Australian market, Futu officially provides CHESS sponsored Australian stock services, with a year-on-year increase of 204.1% in Australian stock trading volume; Canada's stock trading services have also been upgraded again during the period, with a month on month doubling in stock trading volume.
To meet the increasingly diversified asset allocation needs of global investors, Futu has continued to make efforts in bond, fund and other categories, and has achieved outstanding results. During the period, the global asset management scale (AUM) of wealth management business exceeded 10 billion US dollars, with bond AUM increasing by 23.4% month on month; The popularity of money market funds continues, with holdings in Hong Kong and Singapore both experiencing rapid growth.
Actively promote the deepening of corporate social responsibility, charitable and educational work in Hong Kong, China and overseas
As a responsible fintech company, Futu not only focuses on global business expansion, but also spares no effort in promoting corporate social responsibility and investor education. In Hong Kong, China, Futu has been continuously participating in the largest hiking fundraising event in Hong Kong, "Le Shi Yi Xing", since 2014. This year, it has become the chief sponsor for the first time and will support this event in a new role for six consecutive years. In addition, Moomoo has established the "Moomoo Foundation" overseas with the aim of "Fintech for Social Good", working together with well-known universities, institutions, and industry experts to promote financial education and global inclusive finance.