Futu Holdings Sustains Solid Growth in Q2 with US$222.6 Million Total Revenues
- Users Number of Moomoo and Its Sister Brand Futubull Increased 20% YoY to 18.6 Million
PALO ALTO, Calif., Aug. 30, 2022 /PRNewswire/ -- Moomoo's parent company Futu Holdings Limited (Nasdaq: FUTU) (Futu), a leading tech-driven digital brokerage and wealth management platform, reported stable growth for the second quarter ending June 30, 2022, with US$222.6 million (HK$1.75 billion) total revenues, and US$87.7 million (HK$688.5 million) non-GAAP adjusted net income.
Financial and strategic highlights of the second quarter:
- As of quarter end, the total number of users of moomoo and its sister brand Futubull increased 20.0% year-over-year to 18.6 million.
- Total number of registered clients increased 30.5% year-over-year to more than three million.
- Total number of paying clients increased 38.6% year-over-year to 1.4 million.
- The number of newly acquired paying clients in the second quarter was 61,000, with approximately 90% of them from the United States, Hong Kong SAR, Singapore, and Australia markets.
- By the end of the second quarter, the total client assets amounted to US$55.3 billion (HK$433.6 billion), an increase of 12.3% from the previous quarter.
- The quarterly client retention rate hit a historic high of almost 99%.
- Corporate and institutional services continued to thrive with IPO and IR clients totaling 276, an increase of 48.4% YoY. The number of ESOP clients reached 519, representing an increase of 97.3% YoY.
- Total client assets in its wealth management business reached US$2.8 billion (HK$21.9 billion) in the second quarter, representing a 58.8% growth YoY. The company has collaborated with 66 world-renowned global financial institutions in offering diverse fund products to clients, adding two new partners in the second quarter.
- As of the quarter end, Futu has acquired 51 licenses and qualifications from regulators across major financial markets; and its subsidiary Moomoo Financial Singapore Pte. Ltd. officially became the first digital brokerage to receive all five memberships from the SGX Group for both the Securities and Derivatives markets, strengthening its leading position in the industry. Another subsidiary Futu Trustee (Singapore) Pte. Ltd. obtained a trust business license from the Monetary Authority of Singapore (MAS) and became one of the 63 trust business licencees approved by MAS.
"Approximately 90% of our newly acquired paying clients in the second quarter were from the United States, Hong Kong SAR, Singapore, and Australia markets, compared with 80% in the previous quarter. Our international expansion was sustained by catering unmet and diverse needs from global investors." said Mr. Leaf Hua Li, Futu's Founder, Chairman, CEO & Chairman of the Technology Committee.
"Our corporate and institutional services business and wealth management business both posted a strong performance in the second quarter as we commit ourselves to relentless product and service expansion driven by technology and operational excellence, together with a well-established market presence worldwide."
Futu strengthens its dominant market share in Hong Kong market as the leading industry player
As of quarter end, Futu's Hong Kong users accounted for more than 40% of Hong Kong's adult population. Meanwhile, the number of Hong Kong paying clients continued to grow.
During the second quarter, an average Hong Kong user spent approximately half an hour on the Futubull app each trading day, with approximately 355,000 daily active users generating over 80,000 posts per trading day on Futubull's interactive investor community.
Additionally, Futubull has become a popular platform for bond subscription in Hong Kong SAR. In April, more than 88,000 Hong Kong investors subscribed to the Green Bond issued by Hong Kong SAR government via Futubull, accounting for 18% of total valid applications.
In the first half of 2022, Futu provided IPO underwriting for 12 companies in Hong Kong SAR, ranking first among local securities firms. New IPO clients in the second quarter included Tianqi Lithium Corporation, Yunkang Group, Yoho Group, and GOGOX Holdings.
For the wealth management business, Abrdn started to provide model portfolio services on Futu's platform with diversified asset allocation strategies in the second quarter, following BNY Mellon Investment Management, GaoTeng Global Asset Management and E Fund (HK), who launched these services in the previous quarter.
Moreover, Futu held the mid-year investment strategy sessions with more than ten well-known global companies such as BlackRock and Morgan Stanley attending, attracting more than 110,000 participants.
During the quarter, Futu further optimized product features and expanded product offerings in an endeavor to enhance clients' investing experience. In the Hong Kong market, Futu debuted structured note products, enabling clients to invest in mutual funds with stock collateral, and allowing clients to enjoy yields on their private investment funds before capital was called.
Moomoo Singapore becomes the first digital brokerage with all five SGX memberships for both the Securities and Derivatives markets
In June 2022, Moomoo Financial Singapore Pte. Ltd. (Moomoo Singapore) officially became the first digital brokerage to receive all five memberships from the Singapore Exchange for both the Securities and Derivatives markets, strengthening its leading position in the industry.
As of quarter end, Futu Trustee (Singapore) Pte. Ltd. obtained a trust business license from the Monetary Authority of Singapore (MAS), laying a solid foundation for its trust business development in Hong Kong SAR and Singapore, two of the most prominent financial hubs worldwide. With this license, Futu can provide a comprehensive range of trust services, including ESOP trusts, family trusts and family office services to Asian and global corporate clients or high-net-worth clients.
After 16-month operations in Singapore, moomoo is now highly recognized by local investors. As of June 2022, the number of moomoo's Singapore users accounted for 22.1% of Singapore's population aged between 20 and 70. Singapore clients' AUM continued to increased, up 144.7% YoY.
In Singapore, Moomoo Singapore became the first digital brokerage to lead an IPO project as the main placing agent and underwriter, while providing services for Internet of Things solution provider iWOW. Moomoo attracted the highest number of subscribers, taking up 80% of the total number. Additionally, Moomoo Singapore served as a participating dealer for the listing of Lion-OCBC Securities Singapore Low Carbon ETF, and achieved the highest number of subscribers and subscription amount during the Initial Offer Period.
In the second quarter, AUM of the wealth management business in Singapore surged 377.4% from the previous quarter and the fund holders grew 191.3% sequentially. Besides the launch of liquid funds and fund portfolios, moomoo also now supports investment into regular savings plans directly from bank accounts in Singapore, which is sought after by clients looking for disciplined investment approaches.
Moomoo keeps promoting responsible investing with better trading tools
In the United States, moomoo continued to gain traction among investors who seek better tools to trade with more agility and confidence in the US.
Moomoo offers some of the most innovative features for retail investors, including the cross-exchange comparison of execution prices, Level 2 quotes from market makers and ECNs, and extended trading hours from 4 am to 8 pm EDT. Moomoo endeavors to diminish the information gap between retail investors and institutional investors by providing market data and professional tools that were previously only available to institutional investors.
To better cater to various investing needs, moomoo continued to seek more strategic partnerships to offer a wider spectrum of quotes in the second quarter, adding US futures Level 2 quotes, SGX odd-lot quotes, and CBOE Australia ETFs quotes for users worldwide.
In April, moomoo celebrated National Financial Literacy Month by launching a trading knowledge quiz with prizes, aiming to promote public financial intelligence. Due to overwhelming user participation and enthusiasm for this event, moomoo doubled the size of the prize pool to 1,000 AAPL shares. The event attracted more than 13,600 challengers, and among them, 8,100 investors successfully answered all questions.
In Australia, moomoo expanded its footprint by sharing investing insights and promoting responsible investments. In June, moomoo shared global macroeconomic forecasts, future market trends and investment strategies to more than 300 high-net-worth investors attending the seminars.
Futu promotes a more inclusive and better society with relentless innovation and product excellence
During the second quarter, moomoo and Futubull launched an innovative feature to provide better accessibility to users with red-green color vision deficiency. Understanding that color has power to influence a user's purchase decisions and overall user experience, Futu improved color accessibility by allowing users to tailor color combinations for a better investing experience on its apps.
Leaf said: "As a tech-driven brokerage, Futu always believes in the power of technological advancement and innovation in promoting financial inclusion for all, upholding the corporate mission of making investing easier and not alone. Our dedication and R&D efforts made to optimize products and user experience further enhanced our leadership position in various markets."
To make it possible for everyone to embark on a financial journey, Futu remains committed to intensifying investment to promote financial literacy, investment education and responsible investing for investors of all kinds. As of quarter end, the company rolled out almost 2,500 investing courses online, delivering easy-to-learn content in stories, infographics, gif images, videos, animation clips, live streams, etc., to equip investors with concepts and tactics to navigate diverse challenges and capture opportunities in the volatile market.
Moomoo is a next-generation one-stop digital financial services platform created by Moomoo Technologies Inc., a fintech company based in Palo Alto, California.
Moomoo integrates trading, market data, and social networking with advanced features, such as AI-powered analytics and anomaly detection functions. It supports free online account-opening and provides access to trade stocks and ETFs in multiple global markets such as the United States, Hong Kong SAR, Singapore, and Australia. Moomoo and its brand affiliates also offer rich investor education content and an interactive online community with over 18 million users in more than 200 countries globally.
Moomoo's parent company is the Nasdaq-listed fintech company Futu Holdings Limited ("Futu"), which is headquartered in Hong Kong SAR. Futu's subsidiary is also one of the largest brokerages in Hong Kong SAR. On March 8, 2019, Futu was listed on Nasdaq (stock symbol: FUTU).
For more information, please visit moomoo's official website at www.moomoo.com.
Futu Holdings Limited (Nasdaq: FUTU) is an advanced technology company transforming the investing experience by offering a fully digitalized brokerage and wealth management platform. The Company primarily serves the emerging affluent population, pursuing a massive opportunity to facilitate a once-in-a-generation shift in the wealth management industry and build a digital gateway into broader financial services. The Company provides investing services through its proprietary digital platforms, Futubull and moomoo, each a highly integrated application accessible through any mobile device, tablet, or desktop. The Company's primary fee-generating services include trade execution — which allows its clients to trade securities, such as stocks, ETFs, warrants, options, and futures across different markets — as well as margin financing and securities lending. Futu has also embedded social media tools to create a network centered around its users and provide connectivity to users, investors, companies, analysts, media, and key opinion leaders.
Source: Futu Holdings Limited Related Stocks: NASDAQ:FUTU
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