Q2 2024 Futu Holdings Ltd Earnings Call Transcript
Key Points
- Futu Holdings Ltd (FUTU) acquired 155,000 new paying clients in Q2 2024, representing a 168% year-over-year growth.
- Total client assets jumped 24% year-over-year and 12% quarter-over-quarter to a record HKD579 billion.
- The company launched cryptocurrency trading in Hong Kong and Singapore, tapping into markets with supportive regulatory environments.
- Total trading volume grew to HKD1.62 trillion, up 69% year-over-year and 21% quarter-over-quarter.
- Wealth Management assets grew by 84% year-over-year and 25% quarter-over-quarter to around HKD80 billion.
- Operating margin declined to 46% from 50.6% in the second quarter of 2023, mostly due to higher marketing expenses.
- Interest expenses increased by 21% quarter-over-quarter, driven by higher costs associated with securities borrowing and lending.
- The company faces challenges in client acquisition costs, which increased by 30% quarter-over-quarter.
- Cryptocurrency trading volumes and client assets are still small compared to the overall business, impacted by recent market fluctuations.
- The effective tax rate for the quarter was 15.2%, which could impact net income margins.
Ladies and gentlemen, welcome to Futu Holdings Second Quarter 2024 earnings conference call. At this time, all participants are in a listen only mode. After management's remarks, there will be a Q&A.
Today's conference call is being recorded. If you have any objections, you may disconnect at this time.
I would now like to turn the conference over to your host for today's conference call, Daniel Yuan, Chief of Staff and Head of IR at Futu. Please go ahead, sir.
Thanks, operator, and thank you for joining us today to discuss our second quarter 2024 earnings results. Joining me on the call today are Mr. Leaf Li, Chairman and Chief Executive Officer; Arthur Chen, Chief Financial Officer, and Robin Li Xu, Senior Vice President.
As a reminder, today's call may include forward-looking statements, which represent the company's belief regarding future events, which by their nature, are not certain and are outside of the company's control. Forward-looking statements involve
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