Futu (Nasdaq:FUTU), an online brokerage providing Chinese investors access to Hong Kong and US stock markets, releases its unaudited third-quarter financial metrics, reporting a revenue increase of 12.4% to HK$1,945.6 million ($247.9 million).
The gross profit of the company came in at HK$1,727.5 million ($220.1 million), raising 18% year-over-year (YoY), while the net income increased by 22.7% in the same period to HK$754.6 million ($96.1 million).
According to the press releases, Futu improved its financials alongside its client base. The total number of registered clients rose to 3,132,800 in the third quarter, which translates to a 21.4% increase compared to the same quarter in 2021.
“Total paying clients grew by 58 thousand to 1.44 million, representing a 23.8% year-over-year growth. New paying clients in Singapore increased by about one-third sequentially as we launched online and offline marketing campaigns around low-risk mutual fund products and expanded client acquisition channels. Paying client growth in the US remained robust as we iterated on online marketing and deepened our collaboration with KOLs,” Leaf Hua Li, Futu’s Chairman and Chief Executive Officer, said.
Trading Volumes Down
However, the number of assets held by clients and trading volumes depreciated. Total client assets fell to HK$369.6 billion, declining 12.8% YoY, while the total trading volume in Q3 2022 stood at $1.1 trillion, decreasing by 19.7%.
“Equity market plunge led to a 19.5% quarter-over-quarter decline of total trading volume to HK$1.1 trillion. Hong Kong stock trading volume declined 28.3% to HK$303.6 billion amid deteriorating market sentiments across all sectors. US stock trading volume was HK$752.0 billion, down 16.2% quarter-over-quarter. The decline was mainly due to lower trading turnover of technology names, partially offset by strong trading interests in leveraged and inverse ETFs,” Li added.
According to the company's statement, daily average revenue trades (DARTs) declined 22.3% YoY, achieving 448,309. FUTU shares reached a five-month low in October. However, since then they have rebounded 80% to over $50 per share. This is the highest price level since June.
