Futu Announces Second Quarter of 2022 Expanded Business Diversification with 170% Growth in Fund Clients

(Hong Kong - August 30, 2022)

Futu Holdings Limited ("Futu" or the "Company") (Nasdaq: FUTU), a leading tech-driven digital brokerage and wealth management platform, today announced its unaudited financial results for the second quarter ended June 30, 2022.

Total revenues reached HK$1,746.7 million, up 10.8% as compared with the same quarter last year. Non-GAAP net income increased by 25.1% year-over-year to HK$688.5 million.

「In the face of a volatile market, Futu has delivered a resilient performance with continuous growth in the number of clients and client retention rate during the second quarter, demonstrating the strong recognition of Futu in different markets. Among them, Futu has steadily penetrated the Hong Kong market, solidifying its leadership in the industry. Our international expansion saw a couple of breakthroughs with heightened brand awareness. Our corporate and institutional services business and wealth management business both posted a strong performance in the second quarter, together elevating the Company’s business diversification.」 said Mr. Leaf Hua Li, Futu Founder, Chairman, CEO & Chairman of the Technology Committee. 

「Looking into the second half of 2022, Futu will continue to maintain its leadership in Hong Kong SAR and advance international expansion at pace. By leveraging Futu's leading financial technology, we look forward to further connecting Hong Kong to the global market by making our professional and unmatched fintech offerings available to global investors.」

All three core businesses continued steady growth, with brokerage commission and handling charge income of HK$1,033.8 million, interest income of HK$620.4 million, and other revenues (including income from wealth management and corporate services) of HK$92.5 million. 

As of the end of the second quarter, registered users of Futu's two proprietary trading platforms, Futubull and moomoo, reached 18.6 million, representing a quarterly increase of 500,000 people or a 20.0% growth on a year-over-year basis. The number of registered clients topped 3.02 million, up 30.5% year-over-year, or 3.8% quarter-over-quarter, sustaining the growth momentum.

The number of paying clients reached 1.39 million as of quarter end, representing a year-over-year increase of 38.6%, or a 4.6% increase as compared to the last quarter. Total client assets rose 12.3% quarter-over-quarter and surpassed HK$400.0 billion (As of the end of the second quarter: HK$433.6 billion). The Company’s client retention rate also hit a historic high of 98.6%.

During the quarter, Futu's wealth management business Money Plus thrived with the number of fund investors surpassing 200,000, up 1.7x year-over-year. 

Futu's total trading volume reached HK$1.3 trillion in the second quarter. Daily average revenue trades (DARTs) reached 574,000.

As of quarter end, Futu had provided IPO distribution and IR services for 276 companies, up 48.4% on a year-over-year basis, and served 519 ESOP clients, a quarterly growth of 60 clients, representing a year-over-year increase of 97.3%. 

Futu Strengthens Leading Market Position by becoming the Go-to platform for bond subscription in Hong Kong

As of quarter end, Futu’s Hong Kong users accounted for more than 40%* of Hong Kong’s adult population, reaffirming its industry leadership. A more even age distribution saw among Futu's Hong Kong clients. As of the end of the second quarter, nearly half of the paying clients are over 35, illustrating the trust of all ages toward Futu as an investment and wealth management partner. Besides, the number of Futu's App downloads topped the list among securities firms in Hong Kong on both Android and IOS platforms in the first half of 2022.

Futu diversified its product offerings to cater to different investors’ risk preferences. In April, Futu Securities participated in the issuance of the Green Bonds of the Hong Kong SAR government and received an enthusiastic response. The number of people who subscribed to the Green Bonds through Futu accounted for 18% of total valid applications. During the period, Futu won the award 「Top Broker - Listed Bond Market」 from the Hong Kong Stock Exchange for the first time for its outstanding performance on bond subscription, a testament to its comprehensive capability of providing a wide range of products. 

Approaching its 10th anniversary since establishment in Hong Kong SAR, Futu, for the first time, appointed a top superstar as the brand's new ambassador. This collaboration conveys a fearless spirit that is shared by the ambassador and Futu and transcends industry limitations, elevating the Company’s brand awareness in the market. In the second quarter, Futu launched a year-long free bus ride campaign, picking up Hong Kongers for free every Friday at designated routes commuting across Hong Kong Island, Kowloon and New Territories to serve Hong Kong people’s all-around needs.

In the Hong Kong market, Futu added VIX futures contract trading on Chicago Board Options Exchange (CBOE), and Hong Kong Special Purpose Acquisition Company (SPAC) stock subscription and trading, and supported Hong Kong stock synthetic option orders to fully meet the diversified investment needs.

Internationalization leaps forward with 1/5 adult Singaporeans moomoo users

As of the end of the second quarter, Futu had acquired 51 licenses and qualifications across major financial markets in Hong Kong SAR, the US, Singapore and Australia. Among these, Futu Trustee (Singapore) Pte. Ltd. obtained a trust business license from the Monetary Authority of Singapore (MAS), laying a solid foundation for its trust business development in Hong Kong SAR and Singapore, two of the most prominent financial hubs worldwide. With this license, Futu can provide a comprehensive range of trust services, including ESOP trusts, family trusts and family office services to Asian and global corporate clients or high-net-worth clients.

After 16-month operations in Singapore, moomoo is now highly recognized by local investors. In June 2022, Moomoo Financial Singapore Pte. Ltd. officially became the first digital brokerage to receive all 5 memberships from the Singapore Exchange Group for both the securities and derivatives markets, strengthening its leading position in the industry. Only 16 months after market entry, the number of moomoo’s Singapore users accounted for 22.1% of Singapore’s population aged between 20 and 70 as of the end of June 2022. Singapore clients’ AUM continued to increase, up 144.7% year-over-year.

Moomoo continued to gain traction in both United States and Australia seeing a sustained increase in the number of users. In April, moomoo celebrated the US's National Financial Literacy Month by launching a trading knowledge quiz with prizes, attracting more than 10,000 challengers. Moomoo actively participated in the local seminars and events to further heighten its influence in the United States. In Australia, moomoo expanded its foothold among high-net-worth investors. 

To better cater to various investing needs, moomoo continued to seek more strategic partnerships to offer a wider spectrum of quotes in the second quarter, adding US futures Lv2 quotes, SGX odd lots quotes, and CXA ETFs quotes for users worldwide. 

Fund clients surge 1.7x with AUM in Singapore see a fourfold increase 

During the quarter, Futu's wealth management business Money Plus reached new heights, as total client assets reached HK$21.9 billion(US$2.79 billion), up 58.8% year-over-year. The number of clients holding fund positions surged by 173.6% to 203,000 as compared with the same period last year. 

The wealth management business saw exponential growth in Singapore. As of quarter end, the AUM and number of fund clients of Futu Money Plus in Singapore recorded quarterly increases of 377.4% and 191.3%, respectively, with 28 partnerships made with leading international financial institutions to provide local investors with more options for wealth management. 

As of the end of the reporting period, Futu had partnered with 66 world-class fund houses, with 2 newly onboarded in the quarter. In addition, 10 asset management companies, including Blackrock and Morgan Stanley, have participated in the mid-year investment strategy sessions held by Futu, attracting over 110,000 views across the 10 live seminars. 

Abrdn officially announced its plans to provide model portfolio services on Futu’s platform with diversified asset allocation strategies in the second quarter, after BNY Mellon Investment Management, E Fund (HK) and GaoTeng Global Asset Management, who launched these services in the previous quarter in offering diverse fund products to clients. 

In the Hong Kong market, Futu debuted structured note products, enabling clients to invest in mutual funds with stock collateral, and allowing clients to enjoy yields on their private investment funds before the capital was called. In Singapore, apart from the launch of liquid funds and fund portfolios, moomoo also now supports investment into regular savings plans directly from bank accounts, which is sought after by clients looking for disciplined investment approaches.

ESOP clients surpass 500 and over 1000 corporates register enterprise accounts

Futu's corporate clients for ESOP services reached 519, up 97.3% on a year-over-year basis. Featured ESOP clients are industry leaders in healthcare, automobile logistics, TMT, entertainment industries, increasing Futu’s impact among leaders in different industries. 

As of quarter end, Futu had provided IPO & IR services for 276 companies. In the first half of 2022, Futu provided IPO underwriting services in 12 projects in Hong Kong SAR, ranking first among local securities firms. New IPO clients in the second quarter included GOGOX Holdings, Tianqi Lithium Corporation and Yoho Group. 

The internationalization of Futu corporate and institutional services has progressed substantially. Among a number of IPO projects in Singapore, Futu repeatedly ranked first in the market in terms of the number of subscribers and subscription amount. During the period, while providing services for Internet of Things solution provider iWOW, moomoo Singapore became the first digital brokerage to lead an IPO project as the main placing agent and underwriting for SGX’s listings in Singapore and attracted the highest number of subscribers, taking up over 80% of the total number.

As of the end of the second quarter, over 1,000 well-known companies had opened a Futu enterprise page, such as BYD, Tianqi Lithium and China Tianrui, among others. At the same time, nearly 500 companies had participated in the earnings season event with over 700 earnings call live broadcasted, and nearly 100 companies had held face-to-face events for the executives to interact more efficiently with individual investors.

Barrier-free experience driven by technology to build a more user-friendly platform

Futu has been committed to creating a barrier-free experience for all its users. During the second quarter, moomoo and Futubull launched an innovative feature to offer specially designed quotes colors that are colorblind-friendly, allowing users to tailor color combinations for a better investing experience on its apps. 

Leaf said: 「As a tech-driven brokerage, Futu always believes in the power of technological advancement and innovation in promoting financial inclusion for all, upholding the corporate mission of making investing easier and not alone. We are excited to see our dedication and R&D efforts in optimizing the user experience to further enhance the value of fintech in the investment community.」

*Based on Hong Kong Census and Statistics Department’s 2022 mid-year population data.