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UP Fintech Holding (NASDAQ:TIGR) stock gapped down 5.4% in Friday morning trading after the Chinese online brokerage turned in Q2 2024 earnings that suffered from a $13.2M loss provision for the suspended stock pledge business.
Q2 adjusted earnings per ADS of $0.033, fell from $0.092 in Q1 and $0.097 in the year-earlier quarter.
“The quarter-over-quarter decrease in net income was due to a US$13.2 million loss provision for the suspended Hong Kong stock pledge business faced with extreme market situation and significant price drop, leading to a provision for the loan balance,” said Chairman and CEO Wu Tianhua.
Total revenue of $87.4M rose from $79.0M in the prior quarter and $66.1M a year before (+10.6% Q/Q, +32.2% Y/Y).
Total operating costs and expenses also advanced to $69.0M from $50.8M in Q1 and $45.5M in Q2 2023 (+35% Q/Q, +51.6% Y/Y).
Trading volume of $105.9M for the quarter ended June 30, 2024, climbed from $85.4M for the three months ended March 31, 2024, and $65.1M in the year-ago period. Trading volume of stocks was $33.5M vs. $28.6M in Q1 and $19.3M in Q2 2023.
The company’s CEO attributed the sequential increase in trading volumes to “a more active market environment and our comprehensive product offerings.”
Number of customer accounts drifted up to 2.31M from 2.25M in Q1 and 1.12M in Q2 of last year.
