S&P Reaffirms Futu's Investment Grade Credit Rating, Expecting its Overseas Business to Maintain Good Growth Momentum

Futu Holdings Limited ("Futu" or the "Company") receives a long-term issuer credit rating at "BBB-" from major global rating agency S&P Global Ratings ("S&P") for the fourth consecutive year with a stable outlook.

According to S&P, Futu enjoys a strong market position in Hong Kong and is expected to maintain good growth momentum in its overseas business. Additionally, the credit rating institute takes the view that Futu will continue to uphold its strong capitalization and robust funding profile to support its business growth.

S&P publishes financial research, benchmarking, and analysis on stocks, bonds, and commodities. The S&P rating is a credit score that describes the general creditworthiness of a company that issues debt. Bonds with a rating of BBB- or higher are considered "investment-grade."

As Futu doubles down on global expansion, it has significantly increased its presence across various markets. A number of new markets, including Canada, Japan, and Malaysia, have achieved remarkable progress in terms of client acquisition since their inception. S&P anticipates steady growth in Futu's total client base over the next two years with overseas markets being strong drivers.

S&P also underscored Futu's improved client engagement and good track record of client retention in its report. According to Futu's second-quarter 2024 financial reports, the Company has reached a milestone of two million paying clients while maintaining a high client retention rate at approximately 98%.

Meanwhile, the rating agency reiterated Futu's satisfactory share in Hong Kong's retail brokerage market along with strong capitalization. S&P believes the Company will continue to leverage its brand name, good user experience, and stable technology infrastructure to support its business growth.

In terms of strategic diversification, S&P noted that Futu's expansion of service and product offering, particularly in wealth management, will enhance clients' engagement and stickiness and bring more stable recurring income streams for the next two to three years. In June this year, Futu's wealth management business surpassed $10 billion in assets under management. As parts of efforts to accelerate its expansion of wealth management business, the Company has been continuously enriching its product offerings to address evolving clients' needs in global assets allocation.