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HONG KONG - On Wednesday, Futu Holdings Limited (NASDAQ:FUTU) reported second-quarter earnings and revenue that significantly exceeded analyst expectations, driven by robust trading volume and strong client growth.
The tech-driven online brokerage company’s shares surged 4.91% in pre-market trading after the release.
The company posted adjusted earnings per share of HK$18.24, beating analyst estimates of HK$16.61 by HK$1.63. Revenue jumped 69.7% YoY to HK$5.31 billion, surpassing the consensus estimate of HK$4.84 billion. The strong performance was fueled by a 121.2% YoY increase in total trading volume to HK$3.59 trillion.
Futu’s client base continued to expand, with funded accounts increasing 40.9% YoY to 2.88 million. Total (EPA:TTEF) client assets rose 68.1% YoY to HK$973.9 billion, reflecting both net asset inflows and favorable market conditions.
"We concluded the second quarter with approximately 2.9 million funded accounts, up 40.9% year-over-year and 7.6% quarter-over-quarter," said Leaf Hua Li, Futu’s Chairman and CEO. "As of quarter end, over half of our total funded accounts are from clients outside of Futu Securities Hong Kong."
Brokerage commission and handling charge income surged 87.4% YoY to HK$2.58 billion, while interest income increased 43.8% YoY to HK$2.29 billion. The company’s operating margin expanded significantly to 63.0% from 47.3% in the year-ago quarter, demonstrating improved operational efficiency.
Futu’s wealth management business also showed strong growth, with total client assets reaching HK$163.2 billion, up 104.4% YoY. The company expanded its product offerings during the quarter, becoming the first online broker to offer structured products to retail investors in Hong Kong.
The company’s quarterly funded account retention rate remained above 98%, highlighting strong client loyalty across its expanding international footprint.
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