Futu Holdings Ltd
F:6FHA
Futu Holdings Ltd
Futu Holdings Ltd., an eye-catching name in the financial technology landscape, seamlessly blends the world of tech-savvy innovation with traditional financial services. Founded in 2007 by ex-Tencent engineer Leaf Hua Li, Futu emerged as a disruptor in Hong Kong, where it is headquartered. The company embarked on a mission to redefine the investing experience through its online platform, Futu MooMoo. With a vision rooted in leveraging technology to grant seamless access to financial markets, Futu has rapidly expanded its reach beyond Hong Kong to capture a broader audience in mainland China and the United States. Central to Futu's offering is its user-friendly digital brokerage platform, which caters to the needs of retail investors looking for sophisticated, yet accessible, investment tools.
Futu makes its money primarily through brokerage fees and interest income. Their platform enables users to trade a wide range of financial products such as stocks, options, and exchange-traded funds (ETFs) across different markets. By offering a commission model that appeals to cost-conscious retail investors, Futu manages to capture a significant market share in an industry where high fees have historically been the norm. Additionally, the company generates revenue from margin financing and securities lending, allowing investors to amplify their positions by borrowing against their portfolios. Through these diverse revenue streams, Futu Holdings has successfully positioned itself as a compelling force in financial technology, catering to a tech-savvy clientele that values transparency, efficiency, and affordability in their trading activities.
Futu Holdings Ltd., an eye-catching name in the financial technology landscape, seamlessly blends the world of tech-savvy innovation with traditional financial services. Founded in 2007 by ex-Tencent engineer Leaf Hua Li, Futu emerged as a disruptor in Hong Kong, where it is headquartered. The company embarked on a mission to redefine the investing experience through its online platform, Futu MooMoo. With a vision rooted in leveraging technology to grant seamless access to financial markets, Futu has rapidly expanded its reach beyond Hong Kong to capture a broader audience in mainland China and the United States. Central to Futu's offering is its user-friendly digital brokerage platform, which caters to the needs of retail investors looking for sophisticated, yet accessible, investment tools.
Futu makes its money primarily through brokerage fees and interest income. Their platform enables users to trade a wide range of financial products such as stocks, options, and exchange-traded funds (ETFs) across different markets. By offering a commission model that appeals to cost-conscious retail investors, Futu manages to capture a significant market share in an industry where high fees have historically been the norm. Additionally, the company generates revenue from margin financing and securities lending, allowing investors to amplify their positions by borrowing against their portfolios. Through these diverse revenue streams, Futu Holdings has successfully positioned itself as a compelling force in financial technology, catering to a tech-savvy clientele that values transparency, efficiency, and affordability in their trading activities.
Account Growth: Futu reached 3.13 million funded accounts in Q3, up 43% year-over-year and 9% quarter-over-quarter, with a record 254,000 net new funded accounts added.
Assets & Inflows: Total client assets hit HKD 1.24 trillion, growing 79% year-over-year and 27% quarter-over-quarter, mainly due to robust net inflows and market appreciation.
Revenue Surge: Revenue climbed to HKD 6.4 billion, up 86% from a year ago, strongly beating market expectations.
Profitability: Net income rose 143% year-over-year and 25% quarter-over-quarter to HKD 3.2 billion, with net income margin expanding to 50.1%.
Crypto Momentum: Crypto trading volume soared 161% quarter-over-quarter, with Ethereum overtaking Bitcoin as the most traded coin.
International Expansion: Strong client and asset growth across Hong Kong, Singapore, Malaysia, and the U.S., with Singapore maintaining top retail broker status and the U.S. business showing high double-digit sequential client growth.
Cost Updates: Operating expenses rose 57% year-over-year, driven by investments in crypto, AI, and new markets, but operating margin improved to 61.3%.
