Key Highlights Summary
Tiger International and Futu Holdings delivered impressive financial results for the second quarter of 2026 (their first full quarter following the fines imposed by the China Securities Regulatory Commission): both revenue and net profit increased, user bases and assets continued to expand, and their internationalization strategies proved highly effective, with business innovations contributing to new growth points. The negative impact of the fines was fully accounted for in the first quarter, and there was no drag on core operations in the second quarter.
I. Performance in the First Quarter After the Fines: Double Growth in Revenue and Profit, Moving Beyond the Shadow of the Fines
In the first quarter after being fined, both companies surpassed expectations in their financial performance:
- Tiger International: Revenue reached $182 million, a year-on-year increase of 31.4% and a quarter-on-quarter increase of 17.7%, setting a new record high; adjusted net profit (Non-GAAP, excluding non-recurring expenses such as fines) was $42.84 million, a quarter-on-quarter increase of 20% (after accounting for the impact of the first-quarter fines).
- Futu Holdings: Revenue was $918 million (approximately HK$7.2 billion), a year-on-year increase of 35.6%; adjusted net profit was $475 million (approximately HK$3.725 billion), a year-on-year increase of 40.1%.
The crucial point is that the effects of the fines were absorbed in the first quarter. Futu Holdings recognized a fine of HK$2.133 billion in the first quarter, which led to a year-on-year decrease in net profit of 61.2%; Tiger International also included the fine in its first-quarter financial statements. The return to normal growth in the second quarter indicates that the fines did not undermine their core profitability.
II. User and Asset Scale: Continuous User Growth and Stable Asset Expansion
Users and assets are the foundation of a brokerage firm, and both companies saw expansion in these areas:
- Tiger International: 32,600 new customers deposited funds, bringing the total number of funded customers to 1.315 million (a year-on-year increase of 10.3%); global retail customers deposited over $1.5 billion, with total customer assets reaching $60.73 billion (a year-on-year increase of 16.7%).
- Futu Holdings: 31.25 million registered users (a year-on-year increase of 15%), 6.64 million active accounts (a 27% increase), and 3.84 million customers with assets (a 34% increase); total customer assets amounted to $178.4 billion (approximately HK$1.4 trillion), a year-on-year increase of 43.6%.
This shows that despite the fines, users remain willing to invest with these two platforms, indicating a solid business foundation.
III. Internationalization Strategy: Overseas Markets Become a Major Driver of Growth
Both companies are vigorously advancing their internationalization efforts, with rapid growth in overseas businesses:
- Tiger International:
- Singapore: Total trading volume increased by 92% year-on-year, and the number of orders increased by 46%; trading volume in U.S. stocks increased by 114% quarter-on-quarter.
- Hong Kong: Customer assets increased by 30% quarter-on-quarter, the number of trading orders increased by 70.9%, and trading volume in U.S. stock options increased by 231% year-on-year.
- United States: Asset under management (AUC) increased by 58.1% quarter-on-quarter, and the number of orders increased by 215.7%.
- Australia and New Zealand: Customer assets grew by over 30%.
- Futu Holdings: Malaysia has been the main source of new funding accounts for three consecutive quarters, followed by Hong Kong and Singapore.
Overseas markets have evolved from being supplementary to becoming a core driver of growth, helping the companies reduce their reliance on a single market.
IV. Business Innovation: New Features and Market Opportunities Drive Trading Growth
Both companies have enhanced user activity by launching new services and seizing market opportunities:
- Tiger International:
- Launched one-click integration of CDP/SRS/CPF (commonly used pension/investment accounts by local residents) and fractional stock trading in Singapore;
- Introduced U.S. stock index options in Hong Kong and fully launched a futures channel;
- Hong Kong IPO subscription amount reached nearly HK$968.79 billion, a year-on-year increase of 577% and a quarter-on-quarter increase of 78% (reflecting the recovery of the Hong Kong IPO market).
- Futu Holdings: Total platform trading volume was $818.3 billion (approximately HK$6.42 trillion), a year-on-year increase of 78.8%, indicating high user activity.
These innovations have not only attracted new users but also encouraged existing users to trade more, directly contributing to revenue growth.
Conclusion
Despite the fines, both Tiger International and Futu Holdings have not stagnated but have achieved growth through internationalization and business innovation. This demonstrates that their core competencies (user experience and global presence) remain strong. The future performance of these companies in overseas markets is worth watching. For individual investors, the stable growth of these platforms also reflects the potential of the global retail brokerage industry.