Futu Holdings registered a significant milestone in the second quarter with its user base surpassing the 4 million mark, and the number of paying customers breaking through the 2 million threshold. The total trading volume saw a substantial year-over-year increase of 69.0%, and the wealth management assets grew by 83.6%. Driven by the robust user growth, Futu's revenue for the second quarter increased by 25.9% year-over-year, with net profits also experiencing notable growth. Futu is also on the verge of launching its own system to provide after-hours trading services for US stocks.

Futu Holdings releases financial report for the second quarter of 2024.

1) Key financial data:

Revenue: In the second quarter, Futu's total revenue reached HKD 3.129 billion (approximately USD 401 million), marking a year-over-year increase of 25.9%.

Profit: The net profit attributable to the company's ordinary shareholders grew by 8.0% year-over-year, amounting to HKD 1.2093 billion (approximately USD 15.49 million); under the non-GAAP (Non-Generally Accepted Accounting Principles), the net profit reached HKD 1.296 billion (approximately USD 166 million), with a year-over-year increase of 8.6%.

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Diluted earnings per share for the second quarter were HKD 1.08, compared to HKD 1.00 in the same period last year.

2) Main business highlights:

Brokerage commission and handling fee income grew by 44.5% year-over-year to HKD 1.3763 billion (approximately USD 176.3 million), primarily due to a 69.0% year-over-year increase in total trading volume, despite a decrease in commission rates.

Interest income increased by 13.2% year-over-year to HKD 1.5917 billion (approximately USD 203.8 million), mainly due to increased interest income from financing activities and securities lending services.

Other income (including fund distribution service income, etc.) amounted to HKD 161.03 million (approximately USD 20.6 million), showing a year-over-year increase of 27.2%.Founder and CEO of Futu Holdings, Li Hua, stated that Futu is on the verge of establishing its own system to provide after-hours trading services for US stocks. Li Hua expressed, "We are actively researching and promoting the development of our own US after-hours trading system, with the aim of delivering a better trading experience for our clients." Developing and constructing after-hours services is a challenge for any brokerage firm, requiring a significant investment of resources and time, as well as the application for relevant licenses.

Before the US market opens, Futu Holdings' stock rose by over 1%. So far this year, Futu Holdings' share price has accumulated an increase of more than 21%.

The number of paying customers grew by 28.8% year-on-year, and wealth management assets grew by 83.6% year-on-year.

In the second quarter, Futu Holdings experienced rapid growth in its user base at a double-digit percentage rate:

- The total number of paying customers grew by 28.8%, reaching 2.0423 million;

- The total number of registered users increased by 19.1%, reaching 4.0457 million;

- The total number of users grew by 13.3%, reaching 2.33 million.

The number of IPO distribution and investor relations clients grew by 20.6% year-on-year, reaching 451, including seven out of the top ten IPOs in Hong Kong, China, in the first half of 2024.

Looking at the market segment:

- In Hong Kong and Singapore, new paying customers achieved double-digit consecutive growth, and these two markets contributed more than one-third to the growth of paying customers in the second quarter.In Japan, the number of new paying customers also achieved double-digit growth.

Despite a slowdown in growth in the Malaysian market in the second quarter, it still contributed the most new paying customers in the second quarter.

In addition, with the rapid increase in the number of customers, Futu's total customer assets grew by 24.3% year-on-year in the second quarter, reaching 57.93 billion Hong Kong dollars, with an average daily customer asset of 56.00 billion Hong Kong dollars, a year-on-year increase of 24.4%.

Trading volume also saw a significant increase, with Futu's total trading volume in the second quarter growing by 69.0% year-on-year, reaching 1.62 trillion Hong Kong dollars, of which the trading volume of US stocks was 1.24 trillion Hong Kong dollars, and the trading volume of Hong Kong stocks was 35.76 billion Hong Kong dollars. The average daily trading volume (DARTs) increased by 67.4% year-on-year, reaching 652,300 Hong Kong dollars.

For the eighth consecutive quarter, managed assets in the second quarter achieved double-digit growth, increasing by 83.6% year-on-year to 7.98 billion Hong Kong dollars, accounting for 14% of total customer assets.