Futu
Holdings Limited (Nasdaq: FUTU)
saw its fourth-quarter net income more than double as trading volume surged to
an all-time high amid increased investor activity in AI and cryptocurrency
stocks, according to the company’s latest earnings report released today
(Thursday).
Futu Reports Record Q4
Trading Volume, Profit Jumps 113%
The
tech-driven online brokerage reported net income of HK$1.87 billion (US$240.7
million) for the quarter ended December 31, 2024, representing
a 113.3% increase from the same period a year earlier. Revenue jumped 86.8%
to HK$4.43 billion (US$570.6 million), driven by strong growth across all
business segments.
“In
2024, we added over 701 thousand paying clients, bringing the total number of
paying clients to 2.4 million, a 41.0% year-over-year increase,” said Leaf
Hua Li, Futu’s Chairman and Chief Executive Officer. The company now expects to
add 800,000 net new paying clients in 2025, signaling confidence in continued
expansion.
Total
trading volume reached HK$2.89 trillion in the fourth quarter, more than
tripling from the previous year and increasing 51.5% from the third quarter.
The surge was largely attributable to heightened trading activity in artificial
intelligence and cryptocurrency-related stocks, which posted exceptional gains
during the period.
U.S. and Hong Kong Stocks
“A
couple of AI names that used to be unfamiliar to our clients consistently
ranked among the most-traded U.S. stocks on our platform in 2024 thanks to
their outsized outperformance and growing conviction among the public of AI’s
structural influence,” Li noted.
U.S. stock
trading volume climbed 36.1% sequentially to HK$2.08 trillion, while Hong Kong
stock trading volume more than doubled quarter-over-quarter to HK$754.5
billion, reflecting increased activity in technology names and leveraged ETFs.
The
company’s growth was particularly strong in Hong Kong, which emerged as the top
contributor of new paying clients. Singapore also showed robust client growth
with improving client quality, while Malaysia continued to gain market share
through localized product experiences and growing brand awareness.
Expenses Also Up
Futu’s
wealth management business saw total client assets increase by 92.6%
year-over-year to HK$110.9 billion, now accounting for 15% of total client
assets. Money market funds continued to attract substantial inflows despite
lower yields, and the company expanded its structured product offerings in Hong
Kong and Singapore to better serve high-net-worth clients.
Operating
expenses rose 57.1% to HK$1.44 billion (US$185.3 million), with selling and
marketing expenses more than doubling as the company invested in client
acquisition. Despite higher costs, the operating margin improved to 50.0% from
43.1% a year earlier, reflecting strong revenue growth and operational
leverage .
2024 Income Jumps 27%
For
the full year 2024, Futu reported a 27.0% increase in net income to HK$5.43
billion (US$699.4 million) on revenue of HK$13.59 billion (US$1.75 billion), up
35.8% from 2023.
The
company’s margin financing and securities lending balance increased 53.7%
year-over-year to HK$50.9 billion, reaching an all-time high amid what the
company described as a “risk-on mood” among investors.
In the IPO
underwriting business, Futu maintained its market leadership position,
underwriting 40 Hong Kong IPOs in 2024 and ranking first among all brokers for
the third consecutive year, according to Wind data cited by the company.
“We swiftly
adjusted our IPO subscription process based on these changes and saw meaningful
improvement in market share in terms of subscription amount in recent Hong Kong
IPOs,” the CEO concluded.
Futu
Holdings Limited (Nasdaq: FUTU)
saw its fourth-quarter net income more than double as trading volume surged to
an all-time high amid increased investor activity in AI and cryptocurrency
stocks, according to the company’s latest earnings report released today
(Thursday).
Futu Reports Record Q4
Trading Volume, Profit Jumps 113%
The
tech-driven online brokerage reported net income of HK$1.87 billion (US$240.7
million) for the quarter ended December 31, 2024, representing
a 113.3% increase from the same period a year earlier. Revenue jumped 86.8%
to HK$4.43 billion (US$570.6 million), driven by strong growth across all
business segments.
“In
2024, we added over 701 thousand paying clients, bringing the total number of
paying clients to 2.4 million, a 41.0% year-over-year increase,” said Leaf
Hua Li, Futu’s Chairman and Chief Executive Officer. The company now expects to
add 800,000 net new paying clients in 2025, signaling confidence in continued
expansion.
Total
trading volume reached HK$2.89 trillion in the fourth quarter, more than
tripling from the previous year and increasing 51.5% from the third quarter.
The surge was largely attributable to heightened trading activity in artificial
intelligence and cryptocurrency-related stocks, which posted exceptional gains
during the period.
U.S. and Hong Kong Stocks
“A
couple of AI names that used to be unfamiliar to our clients consistently
ranked among the most-traded U.S. stocks on our platform in 2024 thanks to
their outsized outperformance and growing conviction among the public of AI’s
structural influence,” Li noted.
U.S. stock
trading volume climbed 36.1% sequentially to HK$2.08 trillion, while Hong Kong
stock trading volume more than doubled quarter-over-quarter to HK$754.5
billion, reflecting increased activity in technology names and leveraged ETFs.
The
company’s growth was particularly strong in Hong Kong, which emerged as the top
contributor of new paying clients. Singapore also showed robust client growth
with improving client quality, while Malaysia continued to gain market share
through localized product experiences and growing brand awareness.
Expenses Also Up
Futu’s
wealth management business saw total client assets increase by 92.6%
year-over-year to HK$110.9 billion, now accounting for 15% of total client
assets. Money market funds continued to attract substantial inflows despite
lower yields, and the company expanded its structured product offerings in Hong
Kong and Singapore to better serve high-net-worth clients.
Operating
expenses rose 57.1% to HK$1.44 billion (US$185.3 million), with selling and
marketing expenses more than doubling as the company invested in client
acquisition. Despite higher costs, the operating margin improved to 50.0% from
43.1% a year earlier, reflecting strong revenue growth and operational
leverage .
2024 Income Jumps 27%
For
the full year 2024, Futu reported a 27.0% increase in net income to HK$5.43
billion (US$699.4 million) on revenue of HK$13.59 billion (US$1.75 billion), up
35.8% from 2023.
The
company’s margin financing and securities lending balance increased 53.7%
year-over-year to HK$50.9 billion, reaching an all-time high amid what the
company described as a “risk-on mood” among investors.
In the IPO
underwriting business, Futu maintained its market leadership position,
underwriting 40 Hong Kong IPOs in 2024 and ranking first among all brokers for
the third consecutive year, according to Wind data cited by the company.
“We swiftly
adjusted our IPO subscription process based on these changes and saw meaningful
improvement in market share in terms of subscription amount in recent Hong Kong
IPOs,” the CEO concluded.
This post is originally published on FINANCEMAGNATES.
