Futu Holdings, an online brokerage and wealth management platform has published its financial results for the third quarter ended 30 September 2020. The total gross profit jumped 314% to HK$764.1 million (US$98.6 million), compared to the same period in 2019.
The brokerage reported strong performance with significant growth in all major departments. The total number of paying clients increased by 136% year-over-year to 418,089. The total number of registered clients reached 1,173,242.
Futu also marked a 272% year-over-year jump in total revenues to HK$946.2 million (US$122.1 million). The company’s net income was also up 18 times year-over-year to HK$401.7 million (US$51.8 million). The unaudited results provided by the company show that paying clients from Mainland China and Hong Kong experienced triple-digit growth in the last quarter. Brokerage commission also increased significantly in Q3 2020.
Commenting on the recent financial results, Leaf Hua Li, founder and CEO at Futu, said: “We continued to deliver strong results in the third quarter of 2020. Net paying client addition was approximately 115 thousand, bringing the total number of paying clients to over 418 thousand, up 136.5% year-over-year. Our China mainland and Hong Kong paying clients both experienced triple-digit growth in the quarter, driven by a number of industry tailwinds, including continued market volatility and the wave of high-profile Hong Kong IPOs of Chinese companies, especially in the technology, biotech, and property management sectors. Organic growth continued to contribute to over half of our new paying clients. We are very confident about hitting our full-year paying client guidance.”
Strong IPO Market
The brokerage said that the strong IPO market has worked in favor of Futu. The company also mentioned its recent asset management partnerships with Morgan Stanley, Invesco, and BNP Paribas. “The strong IPO market continued to play in our favor. In the third quarter, six IPOs recorded over HK$10 billion subscriptions respectively on our platform, including the U.S. IPOs of XPeng Motors and Beike, and the Hong Kong IPOs of Nongfu Spring and Ming Yuan Cloud,” Hua Li added.
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