Futu Holdings Limited (Nasdaq: FUTU) saw its fourth-quarter net income more than double as trading volume surged to an all-time high amid increased investor activity in AI and cryptocurrency stocks, according to the company's latest earnings report released today (Thursday).

Futu Reports Record Q4 Trading Volume, Profit Jumps 113%

The tech-driven online brokerage reported net income of HK$1.87 billion (US$240.7 million) for the quarter ended December 31, 2024, representing a 113.3% increase from the same period a year earlier. Revenue jumped 86.8% to HK$4.43 billion (US$570.6 million), driven by strong growth across all business segments.

"In 2024, we added over 701 thousand paying clients, bringing the total number of paying clients to 2.4 million, a 41.0% year-over-year increase," said Leaf Hua Li, Futu's Chairman and Chief Executive Officer. The company now expects to add 800,000 net new paying clients in 2025, signaling confidence in continued expansion.

Total trading volume reached HK$2.89 trillion in the fourth quarter, more than tripling from the previous year and increasing 51.5% from the third quarter. The surge was largely attributable to heightened trading activity in artificial intelligence and cryptocurrency-related stocks, which posted exceptional gains during the period.

U.S. and Hong Kong Stocks

"A couple of AI names that used to be unfamiliar to our clients consistently ranked among the most-traded U.S. stocks on our platform in 2024 thanks to their outsized outperformance and growing conviction among the public of AI's structural influence," Li noted.

U.S. stock trading volume climbed 36.1% sequentially to HK$2.08 trillion, while Hong Kong stock trading volume more than doubled quarter-over-quarter to HK$754.5 billion, reflecting increased activity in technology names and leveraged ETFs.

The company's growth was particularly strong in Hong Kong, which emerged as the top contributor of new paying clients. Singapore also showed robust client growth with improving client quality, while Malaysia continued to gain market share through localized product experiences and growing brand awareness.

Expenses Also Up

Futu's wealth management business saw total client assets increase by 92.6% year-over-year to HK$110.9 billion, now accounting for 15% of total client assets. Money market funds continued to attract substantial inflows despite lower yields, and the company expanded its structured product offerings in Hong Kong and Singapore to better serve high-net-worth clients.

Operating expenses rose 57.1% to HK$1.44 billion (US$185.3 million), with selling and marketing expenses more than doubling as the company invested in client acquisition. Despite higher costs, the operating margin improved to 50.0% from 43.1% a year earlier, reflecting strong revenue growth and operational leverage.

2024 Income Jumps 27%

For the full year 2024, Futu reported a 27.0% increase in net income to HK$5.43 billion (US$699.4 million) on revenue of HK$13.59 billion (US$1.75 billion), up 35.8% from 2023.

The company's margin financing and securities lending balance increased 53.7% year-over-year to HK$50.9 billion, reaching an all-time high amid what the company described as a "risk-on mood" among investors.

In the IPO underwriting business, Futu maintained its market leadership position, underwriting 40 Hong Kong IPOs in 2024 and ranking first among all brokers for the third consecutive year, according to Wind data cited by the company.

“We swiftly adjusted our IPO subscription process based on these changes and saw meaningful improvement in market share in terms of subscription amount in recent Hong Kong IPOs,” the CEO concluded.