FUTU third quarter net income up 24.8% year-over-year

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International Business News – On November 21, FUTU announced its unaudited financial results for the third quarter of 2022.

For the third quarter, Futu reported total revenue of HK$1.946 billion (approximately US$248 million), up 12.4% year-over-year, and non-GAAP net profit of HK$806 million (approximately US$103 million), up 24.8% year-over-year.

By item, brokerage commission and fee income was HK$957.8 million (US$122.0 million), an increase of 2.6% from the third quarter of 2021.

Interest income was HK$880.8 million (US$112.2 million), an increase of 39.4% from the third quarter of 2021. This increase was mainly due to higher interest income from bank deposits as a result of interest rate hikes, despite lower margin financing income and IPO financing interest income.

Other income was HK$107.0 million (US$13.6 million), a decrease of 35.5% compared to the third quarter of 2021. This was mainly due to the decrease in IPO financing service fee income, corporate public relations service fee income and currency exchange service income.

According to the financial report, the number of registered FutuNiu and moomoo App users reached 19.15 million by the end of the third quarter, up 15.6% year-on-year; the number of Futu account customers reached 3.13 million, up 21.4% year-on-year; and the total number of customers with assets reached 1.445 million, up 23.8% year-on-year. The total number of clients with assets reached 1.445 million, up 23.8% year-over-year. 58,000 net new clients with assets were added in the quarter, of which nearly 90% came from Hong Kong, China and overseas markets. Customer retention rate remained at a high level of around 98% during the period.

During the period, Standard & Poor’s Global Ratings assigned FUTU an investment grade long-term main credit rating of “BBB-” with a “stable” outlook. Last year, Futu became the first Hong Kong-based brokerage firm to receive an independent S&P investment grade “BBB-” rating. During the period, Futu launched its first silver bond subscription service in Hong Kong, with a total subscription amount of nearly HK$400 million. In the third quarter, Futu’s client assets in the Singapore market grew 77.8% year-on-year.

For the B-side business, Futu Corporate Services signed 572 ESOP clients in total as of the third quarter, up 76% year-on-year. According to Wind statistics, Futu participated in 23 Hong Kong IPO projects as an underwriter in the first three quarters of 2022, ranking second among brokerages.

In terms of capital management, Futu’s wealth management business continued to grow, with Futu Elephant Wealth’s asset management scale reaching HK$25.97 billion (approximately US$3.31 billion) in the third quarter, up HK$4.09 billion sequentially, the highest growth amount in a single quarter. As of the third quarter, the number of positions held was 244,000, up 110.8% year-on-year.