Futu (FUTU) Q2 2024 earnings summary

Executive summary

• Added 155,000 paying clients in Q2 2024, up 168% year-over-year, surpassing 2 million total paying clients, with strong growth in Hong Kong, Singapore, Japan, and Malaysia.

• Total client assets reached a record HKD 579.3 billion, up 24.3% year-over-year and 11.9% quarter-over-quarter.

• Trading volume surged 69% year-over-year to HKD 1.62 trillion, with strong sequential growth in U.S. and Hong Kong stocks.

• Wealth management assets rose 84% year-over-year and 25% quarter-over-quarter to HKD 80 billion, now 14% of total client assets.

• Launched cryptocurrency trading in Hong Kong and Singapore, and rolled out new products in Japan, Malaysia, and Canada.

Financial highlights

• Total revenue reached HKD 3.13 billion, up 26% year-over-year and 24% quarter-over-quarter.

• Brokerage commission and handling charge income rose 45% year-over-year and 27% quarter-over-quarter to HKD 1.4 billion.

• Interest income was HKD 1.6 billion, up 13% year-over-year and 18% quarter-over-quarter.

• Net income increased 8% year-over-year and 17% quarter-over-quarter to HKD 1.2 billion; net income margin declined to 38.6%.

• Gross margin was 81.6%, down from 84.9% a year ago.

Outlook and guidance

• Raised full-year new paying client guidance to 550,000, with over 80% of the target achieved in the first half.

• Management expects continued growth in Hong Kong, Singapore, and Japan, with further crypto adoption and product expansion.

• Sensitivity analysis: every 25bps rate cut could reduce pre-tax profit by HKD 5-8 million.