On March 14, 2024, Beijing time, leading digital financial technology company FUTU Holdings (Nasdaq: FUTU, hereinafter referred to as "FUTU" or "the Company") released its unaudited financial reports for the fourth quarter and full year of 2023.
In the fourth quarter, Futu's total revenue was HKD 2.373 billion (approximately USD 304 million), an increase of 4.1% year-on-year. Non GAAP achieved a net profit of HKD 951 million (approximately USD 122 million). According to business classification, transaction commission and handling fee income in the fourth quarter was HKD 904 million (approximately USD 116 million), interest income was HKD 1.332 billion (approximately USD 171 million), an increase of 17.1% year-on-year, and other income (including wealth management, corporate services, etc.) was HKD 137 million (approximately USD 17.58 million), an increase of 45.6% year-on-year.
In 2023, Futu Holdings achieved a total revenue of HKD 10.008 billion (approximately USD 1.281 billion), an increase of 31.4% year-on-year. According to non GAAP accounting standards, it achieved a net profit of HKD 4.57 billion (approximately USD 585 million), an increase of 45.9% year-on-year.
As of the end of 2023, the registered users of Futu Niuniu and Moomoo App reached 21.64 million, an increase of 10.5% year-on-year; The number of Futu account opening customers reached 3.56 million, an annual increase of 10.2%; The total number of customers with assets expanded to 1.71 million, an increase of 15% year-on-year. In the fourth quarter, there was a net increase of 59000 customers with assets, an increase of 41% year-on-year. The net increase in customers with assets for the whole year exceeded 220000. As of the fourth quarter, the total assets of our clients reached HKD 485.6 billion (approximately USD 62.16 billion), an increase of 16.3% year-on-year, and we maintained a high retention rate of over 98% for our clients with assets during the period.
In 2023, Futu accelerated its expansion of overseas business and entered a new stage of internationalization. During the year, the independent overseas brand Moomoo of Futu officially opened in the Canadian and Japanese markets, quickly gaining popularity among local users. In Southeast Asia, Moomoo further consolidated its leading position in the industry in Singapore and extended its business advantages to neighboring countries. In February 2024, the Malaysian market officially opened, offering trading in Malaysian and US stocks. Within a week of its launch, Moomoo attracted over 30000 account opening customers, creating new business growth points. In other countries and regions, the scale and quality of new customers have also improved with the recovery of the stock market. The company's net increase in asset customers and assets in the first two months of 2024 has exceeded the entire fourth quarter of 2023.
Li Hua, founder, chairman, chief executive officer and chairman of the technical committee of Futu Holdings, said: "In the year, we consolidated our leading position in the industry in Hong Kong and Singapore markets, and our products and services are particularly favored by local high net worth customers. At the same time, we have made outstanding achievements in the international business, and our localized operation strategy in the overseas market has made Moomoo recognized and trusted by many users. In addition, in the fourth quarter of last year, we made profits in the overseas single market for the first time, marking a new stage in our internationalization process. Looking ahead, we believe that Futu's overall business will unleash new development potential, and we are full of confidence in the future."
Stable leading position in the Hong Kong industry, highly favored by local high net worth clients
In the fourth quarter of last year, Futu's leading position in Hong Kong retail securities firms remained stable, achieving multiple industry breakthroughs and gaining the trust of local high-quality customers. As the most popular technology brokerage in Hong Kong, Futu Securities has consistently ranked first in the download volume of stock trading applications for three consecutive years, leading the industry.
During the period, "Cash Treasure" became a popular choice for customers to add value to their idle money, becoming a low threshold, stable and flexible financial tool choice for investors, and greatly welcomed by the market. With strong product strength, the number of Hong Kong money market fund holdings increased by 34.2% year-on-year in the fourth quarter of last year, and the amount of holdings increased by nearly 80% year-on-year to HKD 16.8 billion. The scale of local wealth management holdings further expanded.
Futu will further optimize its investment experience and provide investors with more cost-effective options, including being the first in the industry to launch zero interest financing to subscribe to new shares. Futu has officially opened free LV1 real-time market quotes to Hong Kong investors, making it the first securities firm in Hong Kong to lead the industry and enhance trading experience.
The Singapore market achieved quarterly profits for the first time, with strong growth in high net worth businesses
In the fourth quarter of last year, Futu's internationalization strategy achieved significant results, with its independent brand Moomoo achieving impressive results in various overseas markets.
In Singapore, while Moomoo further consolidated its leading position in the industry, the Singapore branch also achieved profitability for the first time in the fourth quarter of last year by crossing the break even point, and continued to show strong growth momentum in early 2024. It is expected that this growth trend will continue to be maintained.
In the fourth quarter of last year, the cumulative download volume and daily active users of the Moomoo application in Singapore ranked first in the securities industry. During the period, Singapore's retail business maintained a strong growth momentum, and the multi-channel customer acquisition strategy achieved significant results. The recognition of the platform by users also continued to increase. At the end of 2023, the total customer asset balance increased by 115.8% year-on-year.
Moomoo's appeal to local high net worth individuals is also growing. As of the end of the fourth quarter of last year, the average asset balance of Singapore's asset-backed clients exceeded HKD 100000, approximately SGD 17000. In February of this year, Moomoo Financial Singapore Pte. Ltd. also became the first technology brokerage in Singapore to obtain the "MPI Digital Payment Token Service" license. In addition, the Singapore Securities Investors Association has also named Moomoo as the best retail broker in Singapore.
Leveraging Singapore's business advantages, Moomoo's influence continues to radiate to neighboring countries in Southeast Asia. In February of this year, Moomoo officially launched its business in Malaysia, attracting over 30000 account opening customers within a week of its launch. In the future, it is expected to replicate Singapore's successful experience and fully tap into the local market potential.
Multiple overseas new markets have achieved impressive results
In the United States, Moomoo and the Chicago Board of Options have reached a partnership to provide index option trading services to users. In Australia, Moomoo has also launched a wider range of product features and transaction types, including the wealth management product Cash Plus. Its mobile line drawing function has been granted the first Australian intellectual property invention patent.
In the newly established Japanese and Canadian markets, Moomoo performed well in the fourth quarter of last year. In Japan, the average daily download volume of the Moomoo application ranks among the top three in the securities industry, surpassing established securities firms such as Nomura Securities and Matsui Securities. In Canada, Moomoo has launched stock trading, with a quarterly increase of 258% in registered users during the period. The Moomoo application has also jumped to become one of the top three downloaded Android online securities trading applications in the local market. Moomoo is continuously expanding its potential customer base in Malaysia, and as of the end of last year, its cumulative download volume ranked first among online securities trading applications.
Moomoo is not only popular among local investors in various overseas markets, but has also won multiple industry awards and received widespread praise. During the period, Moomoo was awarded the "Global Fintech Award - Best Intraday Trading Software Award" by the US financial media platform Benzinga; Moomoo AU also won the Best of the Best Online Brokerage Rising Star Award from Australian financial media Money Magazine in 2024.
Wealth management business maintains rapid growth, with a more diversified product system
In the fourth quarter of last year, the wealth management business continued to maintain high-speed growth, with the asset management scale of Futu Elephant Wealth exceeding HKD 57.5 billion, an annual growth of 82.3%. Among them, public funds grew by 66.7%, and alternative products (including bonds) grew by 245.3% annually.
Among them, overseas markets have become an important growth point. In particular, the Singapore market has continued to achieve strong growth in wealth management business, with asset size increasing by 45.4% quarterly and holdings increasing by nearly 20% month on month. The net increase in asset size in the fourth quarter of last year contributed 40% to the overall business.
During the period, Futu Elephant Wealth continued to expand its cooperation with globally renowned financial institutions, bringing a wider range of product choices. Currently, the number of cooperating institutions has reached 82. The product categories of Futu Elephant are constantly expanding. In Hong Kong, structured note categories are supplemented based on market demand, and currently support 9 mainstream note products. Futu has become the first technology securities firm to support the ability to trade cumulative put option notes; In Singapore, we collaborated with Fullerton to establish Singapore's first T+0 settlement Singapore dollar currency fund for retail investors, effectively meeting their demand for flexible redemption.
The number of IPOs underwritten in the Hong Kong stock market has remained the top in the industry, and Hong Kong has taken the lead in launching an online large trading platform
During the period, Futu Enterprise's service business continued to empower the real economy. As of the fourth quarter of 2023, Futu has participated in underwriting 37 Hong Kong IPO projects, ranking first among Hong Kong securities firms. During the period, Futu provided IPO and investor relations services to 414 companies, a year-on-year increase of 24.3%.
In the fourth quarter of last year, Futu served as an underwriter for several well-known companies such as Jitu Express and Ubisoft. In addition, Futu has released the "Futu Niuniu Listed Company Annual Selection" for four consecutive sessions, receiving support from multiple institutions such as the New York Stock Exchange, NASDAQ, and New York Stock Exchange. During the period, Futu was also the first in Hong Kong to launch an online heavyweight trading platform, optimizing and enhancing the traditional heavyweight trading experience and improving trading efficiency.
*The major trading services are provided by licensed institutions under Futu, and customers can operate through the Futu Niuniu platform
This document may contain forward-looking statements based on the company's expectations and views on future events, which are inherently uncertain and subject to factors beyond the company's control. These statements are based on current plans, estimates, and forecasts, so you should not overly rely on these forward-looking statements. Forward looking statements themselves carry risks and uncertainties. We draw your attention to many important factors that may lead to significant differences between actual results and those contained in forward-looking statements. For more information on potential risks and uncertainties, please refer to the company's SEC filing documents, including its annual report.