Hong Kong-based online brokerage Futu posts 129% rise in quarterly revenue

Futu Holdings, an online brokerage and wealth management platform based in Hong Kong, reported that it has more than doubled its quarterly revenue, marking a consistent triple-digit growth for six consecutive quarters.

Photo credit: Futu Holdings

The company posted a 129% growth in its quarterly revenue to hit US$203.1 million, pushed partly by an increase in the number of registered users on its platform and a strong customer retention rate.

The firm said that about 80% of its newly acquired paying clients resulted from its growth in Hong Kong, Singapore, and other overseas markets. As a result, Futu saw its non-GAAP (generally accepted accounting principles) adjusted net income soar by 127% to US$70.9 million in the second quarter.

Photo credit: Futu

Meanwhile, the company said its brokerage business maintained “steady growth,” with total trading volume increasing 104.3% to US$169.4 billion. While its brokerage income was up 95%, its daily average revenue trades on the platform also more than doubled to 540,988.

The company’s interest income also rose nearly 3x to US$78.6 million from the same quarter in 2020.

As of Q2 this year, the number of registered clients on Futu increased by 142.5% to 2.32 million, while its pool of paying clients also more than tripled to hit 1 million. Its client retention rate stood at 98% during the first half of 2021.

“Looking ahead, we are devoted to catering to the evolving needs of the Singapore market and look forward to deepening our relationship with local industry partners, while promoting financial literacy and driving innovation within the fintech industry,” said Futu founder Leaf Hua Li.

As of the end of Q2 2021, Futu’s total client assets reached a record high of US$64.8 billion, more than triple the amount from a year ago.

Image credit: Futu Holdings

In May, the company launched Moomoo, an investing platform that aims to reduce the friction in accessing global investable products by providing market accessibility and data options. Regulated and licensed by the Monetary Authority of Singapore, the platform offers low fees and trading minimums in the city-state for investing in securities in Hong Kong, Singapore, and the US.