Futu Reports 23% Rise in Net Profit despite Lower Trading Volumes

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Futu Reports 23% Rise in Net Profit despite Lower Trading Volumes

<p>  Futu (<a href="https://www.financemagnates.com/tag/futu/" target="_blank">Nasdaq:FUTU</a>), an online brokerage providing Chinese investors access to Hong Kong and US stock markets, releases its unaudited third-quarter financial metrics, reporting a revenue increase of 12.4% to HK$1,945.6 million ($247.9 million).</p><p class="MsoNormal">The gross profit of the company came in at HK$1,727.5 million ($220.1 million), raising 18% year-over-year (YoY), while the net income increased by 22.7% in the same period to HK$754.6 million ($96.1 million).</p><p class="MsoNormal">According to the press releases, Futu improved its financials alongside its client base. The total number of registered clients rose to 3,132,800 in the third quarter, which translates to a 21.4% increase compared to the same quarter in 2021. </p><p class="MsoNormal">"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 <a href="https://www.financemagnates.com/terms/m/marketing/" target="_blank" id="48d4594c-de24-47ac-9f1b-aa2e0da8374a_1" class="terms__main-term">marketing</a> campaigns around low-risk mutual fund products and expanded client <a href="https://www.financemagnates.com/terms/a/acquisition/" target="_blank" id="3180494d-8751-4a02-9476-86dc1cd4d2e2_1" class="terms__secondary-term">acquisition</a> 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, said.</p><p class="MsoNormal">Trading Volumes Down</p><p class="MsoNormal">However, the number of <a href="https://www.financemagnates.com/tag/assets/" target="_blank">assets </a>held by clients and <a href="https://www.financemagnates.com/tag/trading-volumes/" target="_blank">trading volumes</a> depreciated. Total client assets fell to HK$369.6 billion, declining 12.8% YoY, while the total trading volume in Q3 2022 stood at $1.1 trillion, decreasing by 19.7%. </p><p class="MsoNormal">"Equity market plunge led to a 19.5% quarter-over-quarter decline of total trading volume to HK$1.1 trillion. Hong Kong <a href="https://www.financemagnates.com/tag/stock/" target="_blank">stock </a>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 added.</p><p class="MsoNormal">According to the company's statement, daily average revenue trades (DARTs) declined 22.3% YoY, achieving 448,309. FUTU shares reached a five-month low in October. However, since then they have rebounded 80% to over $50 per share. This is the highest price level since June.</p>

This article was written by Damian Chmiel at www.financemagnates.com.

Source: Futu Reports 23% Rise in Net Profit despite Lower Trading Volumes