Significant client growth and increased revenues highlighted Futu Holdings’ robust Q1 2024 performance. Read The News.
Significant client growth and increased revenues highlighted Futu Holdings’ robust Q1 2024 performance. Read The News.
Futu Holdings Limited’s Q1 of 2024 financial report highlights a remarkable surge in new paying clients, indicating strong performance. Despite this growth, the company witnessed a dip in net income due to amplified marketing expenditures.
During the first quarter of 2024, there was a significant rise in new paying clients, with 177,000 additions, representing a remarkable 330.8% increase from the previous year. As a result, Futu’s total paying client base reached 1.89 million by March 31, 2024, indicating a substantial 23.5% year-over-year growth.
Futu’s Chairman and CEO, Leaf Hua Li, attributed this robust client expansion to the company’s effective market strategies and adept execution in new territories. Buoyed by this momentum, Futu has raised its full-year new paying client guidance to 400 thousand.
The firm experienced substantial sequential growth in new paying clients in its key markets, such as Hong Kong and Singapore. Moreover, Futu’s recent foray into Malaysia has been met with exceeding expectations, with over 100,000 registered clients acquired within six weeks of launching its brokerage services.
Despite a commendable 3.7% year-over-year increase in total revenues, totaling HK$2.59 billion ($331.3 million) in Q1 2024, Futu’s net income witnessed a downturn of 13.1% to HK$1.04 billion ($132.3 million). Escalated marketing expenses aimed at robust client acquisition primarily caused this decline.
Notwithstanding the profitability setback, Futu maintained an impressive quarterly client retention rate exceeding 98%. Additionally, the firm reported a noteworthy 11.2% year-over-year surge in total client assets, reaching HK$517.9 billion, with trading volume soaring by 40% sequentially to HK$1.3 trillion.
Futu’s wealth management division also witnessed substantial growth, with client assets surging by 72.8% year-over-year to HK$64.0 billion. The company’s subsidiary, Moomoo, expanded its operations beyond Hong Kong into markets such as the USA, Australia, and Japan. Last year, Futu pioneered 24/5 stock trading, catering to clients in Singapore and Australia, enabling them to trade over 100 US stocks and exchange-traded funds (ETFs) for five consecutive days.
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