Futu Reports Strong Q3 Results, Profit Jumps 314%

Futu Holdings, an online brokerage and wealth management platform, has published its financial results for the third quarter ended 30 September 2020. The total gross profit jumped 314% to HK$764.1 million (US$98.6 million), compared to the same period in 2019.

The brokerage reported strong performance with significant growth in all major departments. The total number of paying clients increased by 136% year-over-year to 418,089. The total number of registered clients reached 1,173,242.

Additionally, Futu marked a 272% year-over-year jump in total revenues to HK$946.2 million (US$122.1 million). Moreover, the company’s net income was up 18 times year-over-year to HK$401.7 million (US$51.8 million). The unaudited results provided by the company show that paying clients from Mainland China and Hong Kong experienced triple-digit growth in the last quarter. Brokerage commission also increased significantly in Q3 of 2020.

Commenting on the recent financial results, Leaf Hua Li, Founder and CEO at Futu, said: “We continued to deliver strong results in the third quarter of 2020. Net paying client addition was approximately 115 thousand, bringing the total number of paying clients to over 418 thousand, up 136.5% year-over-year. Our China mainland and Hong Kong paying clients both experienced triple-digit growth in the quarter, driven by a number of industry tailwinds, including continued market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and the wave of high-profile Hong Kong IPOs of Chinese companies, especially in the technology, biotech, and property management sectors. Organic growth continued to contribute to over half of our new paying clients. We are very confident about hitting our full-year paying client guidance.”

Strong IPO Market

The brokerage said that the strong IPO market has worked in favor of Futu. Furthermore, the company mentioned its recent asset management partnerships with Morgan Stanley, Invesco and BNP Paribas. “The strong IPO market continued to play in our favor. In the third quarter, six IPOs recorded over HK$10 billion subscriptions respectively on our platform, including the U.S. IPOs of XPeng Motors and Beike, and the Hong Kong IPOs of Nongfu Spring and Ming Yuan Cloud Cloud The cloud or cloud computing helps provides data and applications that can be accessed from nearly any location in the world so long as a stable Internet connection exists. Categorized into three cloud services, cloud computing is segmented into Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). In terms of trading, the versatility of the cloud service allows retail traders the ability to test out new trading strategies, backtest pre-existing conc The cloud or cloud computing helps provides data and applications that can be accessed from nearly any location in the world so long as a stable Internet connection exists. Categorized into three cloud services, cloud computing is segmented into Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). In terms of trading, the versatility of the cloud service allows retail traders the ability to test out new trading strategies, backtest pre-existing conc Read this Term,” Hua Li added.