Futu Holdings Announces Q1 2023 Results, Revenues Up 52.3% YoY

Futu Holdings Announces Q1 2023 Results, Revenues Up 52.3% YoY

Trading platform Futubull and its sister brand serve 20 million users worldwide, growing user engagement with deeper presence

HONG KONG, May 24, 2023 /PRNewswire/ -- Futu Holdings Limited (Nasdaq: FUTU) ("Futu" or the "Company"), a leading tech-driven digitalized brokerage and wealth management platform, reported its unaudited financial results for the first quarter of 2023. The Company recorded US$318.5 million (HK$2.5 billion) total revenues and US$161.5 million (HK$1.268 billion) non-GAAP adjusted net income.

Strategic highlights of the first quarter:

  • As of quarter end, the total number of users of Futubull and its sister brand increased by 10.5% year-over-year to 20 million.
  • Total number of registered clients increased 13.5% year-over-year to over 3.3 million.
  • Total number of paying clients increased 15.2% year-over-year to over 1.5 million.
  • By the end of the first quarter, the total client assets amounted to US$59.3 billion (HK$465.5 billion).
  • The quarterly client retention rate remained high at 98%.
  • Corporate services business thrived with ESOP business clients totaling 662, representing an increase of 44.2% year-over-year. During the first quarter, ESOP bagged iWOW, a technology company in Singapore as one of the new clients.
  • Futu participated in 9 IPO projects in Hong Kong, ranking first among the industry according to third-party data [1].
  • Client asset under wealth management business topped US$ 4.7billion (HK$37 billion), representing a 77.4% robust growth compared to the previous year. The growth was driven by AUM in mutual funds and alternative funds (incl. bonds), which increased by 70.2% and 215%, respectively, year-over-year.
  • Wealth management paying clients increased notably by 78.7% year-over-year.
  • The Company continued to expand its funds offering through partnerships with 74 renowned financial institutions worldwide, allowing clients to access a diverse range of fund products.

"We are glad to deliver another quarter of resilient growth and achieve deeper business presence across all markets, a testament to our relentless efforts in driving innovation and technology excellence across products and services offerings and operation. In the first quarter of 2023, we further ramped up the global expansion strategies by launching new products, features and services in different markets to cater diverse investment needs from investors worldwide," said Mr. Leaf Hua Li, Futu's Founder, Chairman, CEO and Chairman of the Technology Committee.

Futu HK Wins Five Awards from HKEX, Becoming the Preferred Platform for Trading Various Products

In Hong Kong, the Company's subsidiary bolstered its leading position in the local retail brokerage industry by continuously enriching its product mix and upgrading its trading platform to empower the increasingly agile clients in the market, with its solid user base in Hong Kong accounting for over 40% of the local adult population.

In March, Futu HK clinched five awards from the Hong Kong Exchange (HKEX) for its outstanding performance in driving liquidity in 2022. Futu tops the lists of retail brokers for Futures & Options, Currency Futures, Weekly Index Options, and Stock Futures & Options and has become a Top Breakthrough Broker for ETP (Exchange Traded Products) Turnover [2].

Futu HK held a successful charity fun day for the children aided by Make-A-Wish International, the first ever outing experience since COVID combined with a workshop to impart personal finance knowledge. Futu HK also organized an array of offline investor seminars and released an investor report to share insights into the capital market and enhance the financial literacy of local investors.

Singapore Market Growth Momentum Sustains, with Average Client Assets Jumping 22.4% QoQ

During the first quarter, the Company's Singapore subsidiary expanded its product offerings to more asset classes through the digitalized financial services platforms. The relationship between clients and the brand continued to strengthen, with the average AUM of the existing paying clients up 22.4% sequentially.

Serving 25% of the local adult population aged between 20-70 via its proprietary investment and wealth management platform, the Company and its subsidiaries are dedicated to empowering local investors with tech-driven analytical tools, free features, and unlimited access to real-time market information and data, thus enabling them to unlock more investment opportunities.

During the first quarter, the Company released its first Singapore Women Financial Fitness Report to evaluate financial literacy and security among women investors. It aimed to empower more women with sufficient support and confidence in achieving their long-term financial and investment goals. Meanwhile, the Company's Singapore subsidiary co-hosted a paper trading competition with the Singapore University of Social Science (SUSS) for the second consecutive year, attracting student challengers from SUSS, the National University of Singapore, Nanyang Technological University and the Singapore Institute of Management.

The Singapore subsidiary's wealth management business continued its fast-paced growth trajectory in Singapore, with AUM increasing by 69.3% and the number of fund investors rising by 33.8% quarter over quarter. The Singapore subsidiary's product Cash Plus provides safe money market funds with fixed income to investors, which can be redeemed at any time.

During the period, the Company's Singapore subsidiary was honored to be certified by Great Place to Work for its workplace excellence. Its efforts in strengthening talent training, promoting diversity, and women in leadership were highly recognized by the team.

The Company Dives into the US and AU Market to Develop a Strong Connection with Investors

The Company's US subsidiary built strong user engagement in the US market and expanded its brand awareness through multiple marketing campaigns. The Holiday Magic Sweepstakes promotion attracted approximately 20,000 participants in the US, and 10 winners were awarded in January.

During the first quarter, the US subsidiary was devoted to fostering a close connection with users of its interactive online community through various activities, including online surveys and investing webinars.

The Company's Australian subsidiary brand won the 'Best for Beginners' award at the 2023 WeMoney Investment Awards, marking its first award in the local market. The award recognizes the Company's dedication to improving investor education in Australia through its accessible product offerings and extensive educational resources.

During the first quarter, the Company also co-hosted a series of events with reputable local accounting services, professional business and corporate advisory firm Hall Chadwick that provided industry partners with professional financial services.

Fosters a Synergetic Community for Better User Engagement and Empowerment

As a financial powerhouse for all, the Company firmly believes that financial inclusion and participation are powered by financial literacy. The Company's investments to enhance public access to financial and investment education paid dividends in increased participation across its well-grounded courses and tutorials. In the first quarter, engagement with the educational content on the Company's overseas platforms grew 16%, with the course completion rate surging 37% and average learning hours increasing by 43%, compared with the previous quarter.

"Looking ahead, we would continue our R&D investment to sharpen product leading edges, with the aim to empower everyone with necessary market access, tools and knowledge in riding the market and growing their investment and wealth with us," said Leaf. "We are pleased to see leaps have been made in promoting user engagement, which would translate into business success for near-term and long-term. Meanwhile, we are confident to the implementation of the global expansion and business diversification strategy when the Company is on the road to forge an influential global financial services platform."


About Futu

Futu Holdings Limited (Nasdaq: FUTU) is an advanced technology company transforming the investing experience by offering a fully digitalized brokerage and wealth management platform. The Company primarily serves the emerging affluent population, pursuing a massive opportunity to facilitate a once-in-a-generation shift in the wealth management industry and build a digital gateway into broader financial services. The Company provides investing services through its proprietary digital platforms accessible through any mobile device, tablet, or desktop. The Company's primary fee-generating services include trade execution—which allows its clients to trade securities, such as stocks, ETFs, warrants, options, and futures across different markets—as well as margin financing and securities lending. Futu features embedded social media tools creating a network centered around its users and providing an investment community for users, investors, companies, analysts, media, and key opinion leaders.

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