Futu Announces Q3 2023 Results International Footprint Expands to Japan and Canada

(Hong Kong - November 23, 2023) - 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 third quarter ended September 30, 2023 (the "Period").

In the third quarter, Futu's total revenues reached HK$2,650.4 million (US$338.5 million), up 36.2% YoY; its non-GAAP net income reached HK$1,158.0 million (US$147.9 million), up 43.7% YoY. By business segmentation, its brokerage commission and handling charge income totaled HK$1,008.9 million (US$128.8 million); interest income reached HK$1,504.5 million (US$192.1 million); other income (including income from wealth management and corporate services businesses) amounted to HK$137.1 million (US$17.5 million).

By the end of the third quarter, Futubull and moomoo's users grew 10.1% YoY to 21.09 million; registered clients rose 11.4% YoY to 3.49 million; paying clients increased 14.2% YoY to 1.65 million, with 65,000 newly onboarded in the quarter. Client assets reached HK$468.1 billion (US$59.8 billion). The client retention rate stayed high at above 98%. 

The Company concluded the past quarter with new business expansion as moomoo was officially launched in Japan and Canada. In the Singapore market, moomoo topped its peers by the cumulative number of downloads and DAU. Back in Hong Kong, Futu continued its stable development and opened the first FUTU Store. The Company's three core businesses all registered steady growth. According to Wind, since 2022, Futu has remained number one by the number of HK IPOs completed. Futu Money Plus AUM passed the HK$50 billion mark for the first time this quarter, demonstrating a more balanced and healthier asset structure.

"In the third quarter, we marched into Japan and Canada, further strengthening our global presence. We have always been working to empower every investor, wherever they are and whatever language they speak. With technology, we are poised to bring moomoo to every corner of the world, and realize our vision of 'becoming an influential global financial services platform'." said Mr. Leaf Hua Li, Futu's Founder, Chairman, CEO & Chairman of the Technology Committee.

Diversified Products in HK with Cash Plus Being the Most Popular Choice

The third quarter witnessed Futu's reaffirmed leading position in Hong Kong as it remained the most downloaded local stock trading app[1]. The first FUTU Store, with a 372-square-meter space, was unveiled to provide an offline channel for investors to interact and study. Futu was able to get closer to its valued customers thanks to the human touch.

Meanwhile, the Company offered more asset choices to investors. As interest rates remained high, Cash Plus, a cash management tool, received a strong response in the market with its low investment thresholds, high yields, and flexibility. On a year-on-year basis, its AUM doubled, and fund investors in Hong Kong went up nearly 40%.

Futu played an active part as an appointed brokerage in issuing the Hong Kong government's bonds. About 2,500 investors subscribed to Silver Bond in the past quarter, and the total subscription amount approximated HK$430 million. On the other hand, Futu contributed nearly 50% of the valid subscription amount to the Green Bond subscription achieved by Hong Kong brokerages, leading its peers for the second year and restating its position as the go-to investment platform.

The Company never ceased to fulfill its corporate social responsibilities. The launch of its first financial education board game, Futu Hero, gathered about 500 children and their parents. By playing this game, children are encouraged to cultivate a passion for learning financial knowledge and explore diverse concepts related to investment tools.

Global Operations Expand to Canada and Japan

Futu continued its international expedition, launching its businesses via its overseas brand moomoo in Japan and Canada. Growing internationalization didn't distract the Company from its localized operations in different markets, which won it recognition from more investors. In the third quarter, The Straits Times ranked moomoo number one among digital brokerages in Singapore for customer service. In the US market, Best Mobile Apps Awards named moomoo Best Mobile App in August 2023 in the Business and Finance category.

By the end of the third quarter, moomoo had been serving Singapore clients for two and a half years. According to data.ai, moomoo ranked first among local brokerages in terms of the cumulative number of downloads and DAU [2], and its paying clients recorded an increase of over 25% YoY.

During this Period, moomoo held MooFest, the annual offline flagship event, with support from the Singapore Exchange (SGX), Securities Investors Association (Singapore) (SIAS), and a number of fund houses. In addition, it participated in Invest Fair to raise brand awareness and recognition among middle-aged and elderly investors.

The Company further extended the coverage of its investor education courses, providing quality content in new markets, namely Malaysia, Canada, and Japan, in local languages, and won favor among more users. Noteworthily, Moomoo Learn's Japanese users grew over 30% QoQ. The Nasdaq Stock Exchange and the Singapore Exchange opened their official accounts in the Moo Community, whose UGC increased nearly 60% QoQ.

Garnered Higher Proportion of High-Net-Worth Clients with Enriched Fund Products

The Company's wealth management business maintained rapid growth in the third quarter. The AUM of Futu Money Plus grew twofold (up 99.9% YoY) to HK$51.9 billion. In particular, the AUM in mutual funds surged 85.9% YoY, and that in alternative products (including bonds) skyrocketed 284.6% YoY. It only took Futu over two months to achieve the latest HK$10 billion increase, signifying its faster growth. In terms of AUM, institutional and high-net-worth clients contributed over half, pointing toward a more balanced and healthier structure of Money Plus's clients, as well as their assets.

Money Plus's different product categories all maintained stable development. The AUM in structured products increased over 50% QoQ; the subscription amount of bonds climbed 86% QoQ, with US Treasuries being the most sought-after products; alternative assets went up over 60% QoQ, and about half of the increase was driven by investment research services (e.g., Hot Spot) and assisting tools (e.g., Treasury Yield Calculator).

Money Plus capped the third quarter with further enriched product offerings. Moomoo Singapore began offering Singapore Government Securities with maturity ranging from 5 months to 20 years, fitting in with clients' investment needs over different durations. It also rolled out customized structured notes and SGD bond trading. Moomentum, a TAMP platform, made its debut in Singapore, targeting high-net-worth clients with one-stop, fully online, and diversified wealth management services.

The Company strived to foster closer ties with world-renowned financial institutions. The number of Money Plus's partners had reached 78 by the end of the third quarter.

Highest Number of HK IPOs Completed plus Upgraded IR Services

Futu's corporate services kept empowering the real economy. As of the quarter end, the Company had provided IPO and IR services for 391 enterprises. Newly added IPO partners include KEEP, Tuhu, 4Paradigm, and Adlai Nortye.

According to Wind, Futu had served as an underwriter for 26 HK IPOs during the first three quarters of 2023, ranking first among local brokerages. It has remained number one by the number of HK IPOs completed ever since 2022. The Top 3 IPOs by funds raised in the past quarter all chose Futu as their partner.

By the end of this Period, the number of ESOP clients of Futu's corporate services business had totaled 699, representing a 22.2% increase YoY. The Company offered tailored solutions to various institutional clients, including Harvest Global Investments, E Fund Management, and Nordic Asia Investment.

The Company introduced a new format of IR services in the period. In the updated livestream program EXECS FACE TO FACE, analysts and executives dig deep into companies' investment value. Meanwhile, Futu worked with Barron's China to release Top 100 CFOs of HK & US-Listed Chinese Companies for the second time, a list that covered over 100 famous companies listed in Hong Kong SAR and the US and came up with insightful opinions on the transformation of executives' roles and improvement of their leadership.

 [1]Source: Data on the downloads of Hong Kong stock trading apps (including App Store and Google Play) from January 1 to October 31, 2023, obtained from data.ai (Previously "App Annie").
[2]Source: Data on major brokerages in Singapore obtained from data.ai by the end of Q3, 2023.