Futu Big Accomplishment; Registers 23% Increase In Profit

Futu Big Accomplishment; Registers 23% Increase In Profit

FUTU holding company, a digitalized Chinese broker, publicized its unaudited third-quarter financial statements. The figures reflected a 12.4% increase in revenue, representing ($247.9 million. The broker has a broad base in Hongkong and America.

In the metric readings, the exchange reported a 22.7% increase in net income, and the total profit came in at 18% year-over-year returns. The profit figures for the third quarter closed at $220.1 million (HK$1,727.5 million).

Futu has incredibly been performing over the year. The company so far is operating an added range of client base and financial ground. The current number of registered clients stands at 3,132,800. This figure mirrors a 21.4% increase in the number of clients, compared to the same period last year.

“Total paying clients grew by 58 thousand to 1.44 million, representing a 23.8% year-over-year growth. New paying clients in Singapore increased by about one-third sequentially as we launched online and offline marketing campaigns around low-risk mutual fund products and expanded client acquisition channels. Paying client growth in the US remained robust as we iterated on online marketing and deepened our collaboration with KOLs,” Leaf Hua Li, Futu’s Chairman, and Chief Executive Officer, noted.

The Restrain In Trading Volume

Besides an incredible rise in client base, the company trading volume and the number of assets clients hold declined. This has not only been confirmed by FUTU alone, but it has been a common trend in other brokerages.

The total client assets fell to HK$369.6 billion, a 12.8% year-over-year decrease. On the other trading side, the trading volume decreased by 19.7% compared to the same period in 2021.

“Equity market plunge led to a 19.5% quarter-over-quarter decline of total trading volume to HK$1.1 trillion. Hong Kong stock trading volume declined 28.3% to HK$303.6 billion amid deteriorating market sentiments across all sectors. US stock trading volume was HK$752.0 billion, down 16.2% quarter-over-quarter. The decline was mainly due to lower trading turnover of technology names, partially offset by strong trading interests in leveraged and inverse ETFs,” Li stated.

The October performance indicated a five-month low in shares revenue. In addition, the report displayed a decrease in daily average revenue which stood at 448,309, a 22.3% decrease YoY. Despite the situation, the company has bounced up to over $50 per share, the highest figure witnessed since June.