Core Insights - Both Futu Holdings Limited (FUTU) and Nu Holdings (NU) are significant players in the fintech sector, with FUTU focusing on digital brokerage in Hong Kong and internationally, while NU serves the Latin American market with banking and financial services [1] Futu Holdings (FUTU) - FUTU achieved a remarkable 69.7% year-over-year revenue growth in Q2 2025, driven by its integration of AI into operations [2] - The company expanded its client base by adding 262,000 funded accounts in Q2 2025, totaling 2.7 million, reflecting a 42% year-over-year increase [3] - Total assets under management for FUTU surged 104.4% year-over-year as of Q2 2025, supported by partnerships with over 80 fund companies [4] - FUTU's strategy includes leveraging AI in its products, with offerings like Futubull AI and moomoo AI enhancing its global reach [6] Nu Holdings (NU) - NU added over 4.1 million customers in Q2 2025, bringing the total to 122.7 million, which represents a 17% year-over-year growth [7] - The company reported $3.7 billion in revenue for Q2 2025, a 29% increase year-over-year, with average revenue per active customer rising 18% to $12 [8] - NU's digital-first model, particularly through its NuBank, has disrupted traditional banking in Brazil and is expanding into Colombia and Mexico [9] - The company demonstrated effective risk management, with a 30-basis point decline in the 15-90-day non-performing loan ratio, indicating improved asset quality [11] Financial Estimates - The Zacks Consensus Estimate for FUTU indicates a 42.9% growth in sales and a 66.9% increase in EPS for 2025 [12] - For NU, the estimates suggest a 32.2% growth in sales and a 24.4% increase in EPS for 2025 [13] Valuation Comparison - NU is trading at a forward price-to-sales multiple of 4.13, lower than its 12-month median of 3.65, while FUTU's forward earnings multiple is 9.82, above its median of 7.24 [15] Conclusion - Both FUTU and NU are strong contenders in the fintech space, but NU is positioned as a more attractive investment due to its rapid customer base expansion and efficient business model [18] - Despite both companies being fundamentally strong, NU's lower valuation compared to FUTU suggests it may offer better long-term returns for investors [19]

Excuse me. For more on the deal, we're joined by Morgan Stanley's head of wealth management, Jed Finn. Jed, excuse me.Thank you for being here. Tell us the rationale behind this deal. >> Thanks for having me, Leslie.It's a great day for Morgan Stanley. It's a great day for Equity Zen, and most importantly, it's a great day for the clients of both of our organizations. You asked about the rationale for it.Look, private markets is growing at an incredible cri clip. As I think you've reported on many times in ...

Core Insights - The recent deal involving Morgan Stanley is strategically significant despite being a smaller transaction, likely under $500 million, and not the primary focus of the firm [1][2] - The deal is part of a broader strategy to entrench Morgan Stanley within the private markets ecosystem, especially as more companies remain private longer [4][6] Group 1: Strategic Importance of the Deal - The deal is seen as a continuation of James Gorman's strategy, which has included significant acquisitions like Smith Barney and E-Trade, enhancing Morgan Stanley's wealth management capabilities [2][3] - The Solium deal, which involved stock plan administration for private companies, is highlighted as a crucial but often overlooked transaction that aligns with Morgan Stanley's goals [3][4] Group 2: Wealth Management and Investment Banking Synergy - The focus on private capital offerings is essential for Morgan Stanley, as building relationships with private companies can lead to increased investment banking activity [6] - The wealth management division is critical for generating consistent fee-based revenue, which is increasingly valued by investors [7]

How important is this. I mean, especially at a time when there are fewer and fewer public assets for investors to buy. Well, first off, welcome to the CEO Dealmaking Club at that big.It is a deal where no real price has been announced. They haven't disclosed the terms of the deal. So fair to say it's probably a sub $500 million deal.So it is a bit of a nibble for Morgan Stanley. This is not the main cause. This is not the real deals that they want to pounce on.But it is strategically very important when you ...

Core Insights - Robinhood shares increased over 4% in after-hours trading following a strong second-quarter performance, with earnings of $0.42 per share surpassing analyst expectations of $0.31 and revenue of $989 million exceeding the $98 million estimate [1] - Revenue grew by 45% year-over-year, while net income more than doubled to $386 million [1] Financial Performance - Funded accounts rose to 26.5 million, and total platform assets nearly doubled to $279 billion, reflecting a 99% year-over-year increase [2] - Transaction-based revenue reached $539 million, driven by robust options trading, although crypto and equities revenue fell slightly short of forecasts [2] User Engagement and Product Development - Average revenue per user increased by 34% to $151 [3] - The company is making significant progress in long-term investing, with retirement accounts exceeding $20 billion [3] - New wealth management products, such as Robinhood Gold, which has reached a record 3.5 million subscribers, and the IRA match, are contributing to asset growth [3]

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Financial Data and Key Metrics Changes - Fully diluted earnings per share were $1.20, a 29% increase year-over-year and a 13% increase from the previous quarter [3] - Net interest margin improved for the sixth consecutive quarter, rising by seven basis points to 2.46% [3] - Return on common equity improved to 13.6% for the quarter [3] - Average deposits increased by 7% annualized [3] Business Line Data and Key Metrics Changes - Average balance of deposits contributed to the growth in net interest income, which increased by $7 million [15] - Noninterest income rose to $46 million, up from $44.8 million in the previous quarter, driven by higher customer derivative activity and trust earnings [19] - Noninterest expense was $112.4 million, compared to $110.8 million in the prior quarter, influenced by a severance-related charge [20] Market Data and Key Metrics Changes - Bank of Hawaii advanced its number one deposit market share position in Hawaii by 40 basis points as of June 30, 2025 [4] - The loan portfolio is predominantly secured, with 86% of the consumer portfolio consisting of residential mortgage or home equity [9] - The commercial real estate portfolio is well diversified, with no sector representing more than 7% of total loans [10] Company Strategy and Development Direction - The company aims to leverage its dominant market position and brand strength to build wealth market share, particularly in the affluent segment [6][7] - A partnership with Saterra is expected to modernize the broker-dealer platform, enhancing client experience and attracting advisors [7] - The company is focused on improving coordination between commercial and wealth teams to drive cross-marketing opportunities [7] Management's Comments on Operating Environment and Future Outlook - Management anticipates further expansion of net interest margin for several quarters moving forward [5] - The outlook for loan growth remains in the low single digits, with expectations for improvement in the pipeline [32] - Management is optimistic about the potential for capital deployment into share repurchases in the near future [42] Other Important Information - The allowance for credit losses on loans and leases ended the quarter at $148.8 million, with a ratio of 1.06% [14] - The company declared a dividend of $0.70 per common share for the fourth quarter of 2025 [24] Q&A Session Summary Question: Spot rate on total deposits - Total spot rate on deposits is 154 basis points [27] Question: Outlook for achieving 3% NIM - Management believes a 25 basis point increase in NIM per year is reasonable, with potential upside as Fed Funds rates decrease [30][31] Question: Commentary on loan growth outlook - Management expects low single-digit growth to continue, with Q4 anticipated to be better than Q3 [32][33] Question: Changes in wealth management strategy - The partnership with Saterra is progressing well, and the company is focused on enhancing client experience and attracting top advisors [36][38] Question: Capital return and buyback plans - Management is considering share repurchases and is satisfied with current capital levels [41][42] Question: Impact of de-risking on growth - De-risking has not been a headwind for growth, and current portfolios are not expected to impede future growth [46] Question: Expense growth outlook for 2026 - Expected expense growth for 2026 is projected to be in the 3% range [50]

Financial Data and Key Metrics Changes - Fully diluted earnings per share were $1.20, a 29% increase year-over-year and a 13% increase from the previous quarter [3] - Net interest margin improved for the sixth consecutive quarter, rising by seven basis points to 2.46% [3] - Return on common equity improved to 13.6% for the quarter [3] - Average deposits increased by 7% annualized [3] Business Line Data and Key Metrics Changes - The loan portfolio is balanced between consumer and commercial, with consumer loans representing 57% or $7.9 billion of total loans [9] - Commercial loans accounted for $6.1 billion, or 43% of total loans, with 73% secured by real estate [9] - Noninterest income increased to $46 million during the quarter, compared to $44.8 million in the linked quarter [19] Market Data and Key Metrics Changes - Bank of Hawaii advanced its number one deposit market share position in Hawaii by 40 basis points as of June 30, 2025 [4] - The bank's market share has grown by 600 basis points since 2005, outperforming competitors in the Hawaii market [4] Company Strategy and Development Direction - The company aims to leverage its dominant market position and brand strength to build wealth market share, particularly in the affluent segment [6][7] - A partnership with Saterra is expected to modernize the broker-dealer platform, enhancing client experience and attracting top advisors [7] - The bank is focused on improving coordination between commercial and wealth teams to capitalize on cross-marketing opportunities [7] Management's Comments on Operating Environment and Future Outlook - Management anticipates further expansion of net interest margin for several quarters [5] - The outlook for loan growth remains in the low single digits, with expectations for improvement in the pipeline [32] - The company is optimistic about the wealth management segment and plans to continue investing in talent and resources [37] Other Important Information - The allowance for credit losses on loans and leases ended the quarter at $148.8 million, with a ratio of 1.06% [14] - The company recorded a provision for credit losses of $2.5 million, down from $3.3 million in the previous quarter [23] - Capital ratios remained above regulatory thresholds, with tier one capital at 14.3% and total risk-based capital at 15.4% [23] Q&A Session Summary Question: Spot rate on total deposits - The spot rate on total deposits is 154 basis points [27] Question: Outlook for net interest margin (NIM) - Management believes achieving a 3% NIM is possible, with a projected increase of 25 basis points per year [30] Question: Commentary on loan growth outlook - The guidance for loan growth remains in the low single digits, with expectations for improvement in Q4 [32] Question: Changes in wealth management strategy - The partnership with Saterra is progressing well, and the bank is focused on enhancing client experience and attracting top advisors [36] Question: Capital return and buybacks - The company is likely to engage in share repurchases in the current quarter and into next year [41] Question: Credit quality in the office sector - A relationship credit in the office space was exited, contributing to the reduction in Central Business District loans [55]

Financial Data and Key Metrics Changes - Fully diluted earnings per share were $1.2, a 29% increase year-over-year and a 13% increase from the previous quarter [4] - Net interest margin improved for the sixth consecutive quarter, up seven basis points to 2.46% [5] - Return on common equity improved to 13.6% for the quarter [5] - Net income for the quarter was $53.3 million, an increase of $5.7 million compared to the linked quarter [20] Business Line Data and Key Metrics Changes - Average deposits increased by 7% annualized, while end-of-period loans increased modestly [5] - Consumer loans represented over half of total loans at 57%, amounting to $7.9 billion [12] - Commercial loans totaled $6.1 billion, accounting for 43% of total loans [13] Market Data and Key Metrics Changes - Bank of Hawaii advanced its number one deposit market share position in Hawaii by 40 basis points as of June 30, 2025 [6] - The bank's market share has grown by 600 basis points since 2005, outperforming competitors in Hawaii [6] Company Strategy and Development Direction - The company aims to leverage its dominant market position and brand strength to build wealth market share, particularly in the affluent segment [9][10] - A partnership with Saterra is expected to modernize the broker-dealer platform, enhancing client experience and investment products [10] - The bank is focused on improving coordination between commercial and wealth teams to drive cross-marketing opportunities [11] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued expansion of net interest margin and expects to achieve $250 million by year-end [35] - The outlook for loan growth remains in the low single digits, with expectations for improvement in the fourth quarter [38] - Management is optimistic about the potential for further NIM improvement as Fed funds rates decrease [36] Other Important Information - Non-interest income increased to $46 million during the quarter, driven by higher customer derivative activity and elevated loan fees [25] - The company recorded a provision for credit losses of $2.5 million, down from $3.3 million in the linked quarter [28] - Capital ratios remained above regulatory thresholds, with Tier one capital improving to 14.3% [29] Q&A Session Summary Question: Spot rate on total deposits - The total spot rate on deposits is 154 basis points [33] Question: Timeline for achieving 3% NIM - Management believes a 25 basis point pickup in NIM per year is reasonable, with potential upside from Fed funds rate reductions [36][37] Question: Outlook for loan growth - The guidance for loan growth remains in the low single digits, with expectations for improvement in the pipeline [38] Question: Changes on the wealth side - The partnership with Saterra is in production, aiming to enhance client experience and attract top advisors [44][46] Question: Capital return and buybacks - Management is likely to engage in share repurchases in the current quarter and into next year, given the current capital levels [51][52]

Financial Data and Key Metrics Changes - Fully diluted earnings per share increased to $1.20, a 29% rise year-over-year and a 13% increase from the previous quarter [3] - Net interest margin improved for the sixth consecutive quarter, rising by seven basis points to 2.46% [3] - Return on common equity improved to 13.6% for the quarter [3] - Average deposits increased by 7% annualized [3] Business Line Data and Key Metrics Changes - Average balance of deposits contributed to the growth in net interest income, which increased by $7 million [14] - Consumer loans represented over half of total loans at 57%, amounting to $7.9 billion, with a focus on secured lending [8] - Commercial loans totaled $6.1 billion, with 73% secured by real estate [8] Market Data and Key Metrics Changes - Bank of Hawaii advanced its number one deposit market share position in Hawaii by 40 basis points as of June 30, 2025 [4] - The bank's market share has grown by 600 basis points since 2005, outperforming competitors in Hawaii [4] Company Strategy and Development Direction - The company aims to leverage its strong brand and market position to enhance its wealth management segment, which has lagged in growth [5][6] - A partnership with Saterra is expected to modernize the broker-dealer platform, enhancing client experience and attracting advisors [6] - The bank is focused on improving coordination between commercial and wealth teams to capitalize on cross-marketing opportunities [6] Management's Comments on Operating Environment and Future Outlook - Management anticipates further expansion of net interest margin in the coming quarters [5] - The bank's credit quality remains strong, with a diversified portfolio and low delinquency rates [11] - The outlook for loan growth is expected to remain in the low single digits, with improving pipelines [30] Other Important Information - Noninterest income increased to $46 million, driven by higher customer derivative activity and trust earnings [18] - The bank's capital ratios remain above regulatory thresholds, with Tier-One Capital at 14.3% [22] - A dividend of $0.70 per common share was declared for the fourth quarter of 2025 [23] Q&A Session Summary Question: Spot rate on total deposits - The total spot rate on deposits is 154 basis points [25] Question: Outlook for net interest margin (NIM) - Management believes achieving a 3% NIM is possible, with a projected increase of 25 basis points per year [26][28] Question: Loan growth outlook - The guidance for loan growth remains in the low single digits, with expectations for improvement in Q4 [30] Question: Wealth management strategy - The partnership with Saterra is progressing well, and the bank is focused on enhancing client experience and attracting top advisors [32][34] Question: Capital return and buybacks - The bank is considering share repurchases and is satisfied with current capital levels [37][38] Question: Credit quality in the office sector - A reduction in loans in the Central Business District was due to exiting a non-core relationship [44]