Futu Holdings, an online brokerage and wealth management platform, on Wednesday announced its unaudited financial results for the third quarter ended September 30, 2021. Futu’s total revenues during the period increased 83.0% year-on-year to $222.4 million. Non-GAAP adjusted net income increased 58.5% year-on-year to $83 million.
Three businesses sustained strong growth momentum in the third quarter. Brokerage commission and handling charge income increased by 65.8% to $119.9 million. Interest income increased by 128.5% to $81.1 million and other income increased by 55.6% to $21.3 million.
Futu’s global users increased 58.6% year-on-year to 16.6 million as the firm’s international expansion accelerates. The total number of registered clients increased 119.9% year-on-year to 2.58 million. The total number of paying clients increased 179.2% year-on-year to 1.17 million. Client stickiness remained strong with a quarterly client retention rate as high as 97%.
It is worth noting that Futu’s quarterly net increase in paying clients was 166,000, a year-on-year increase of 44.7%. In the first three quarters, more than 70% new clients are from Hong Kong SAR, Singapore and other international markets. As of the quarter’s end, client assets totaled $54.45 billion, a year-on-year increase of 111%.
In addition, Futu’s quarterly total trading volume reached $173.5 billion, a year-on-year increase of 33.1%. Client daily average revenue trades (DARTs) reached 576,810, a year-on-year increase of 52.2%.
Futu further reinforced its status in the Hong Kong brokerage industry, highlighted by a 162% increase in Hong Kong paying clients – the sixth consecutive quarter to realize triple-digit percentage growth year-on-year. According to the latest population statistics from Hong Kong’s Census and Statistics Department, Futu’s number of users now account for about one third of Hong Kong’s adult population.
As measured by the number of Hong Kong active users and the UGC content generated, the Futubull Community has become the second largest online forum in Hong Kong. Based on quarterly trading day data, an average Hong Kong user spent as long as 33 minutes on the Futubull App.
Futu has long provided companies with corporate services such as IPO underwriting, IR and PR management. Of companies listed in Hong Kong in the first three quarters, all companies with a market value of over HK$100 billion and 80% of those worth over HK$5 billion chose Futu’s corporate services. In the quarter, a number of companies partnered with Futu on their IPO journeys in Hong Kong, such as Li Auto, XPeng Motors, Zylox-Tonbridge Medical and Brii Biosciences.
In the Singaporean market, the scale of local client assets increased by 52.4% compared with the last quarter. moomoo has become one of the fastest growing one-stop investment platforms in Singapore, ranking among the top three financial apps as measured by download volume.
Futu has also been proactively expanding its wealth management business in Hong Kong SAR and international markets. In the third quarter, Futu officially launched its mutual fund business in Singapore, providing clients with 40 mutual fund products, and counting, from reputable institutions such as BlackRock, Allianz and Goldman Sachs.