Freedom Holding Corp. reports net profit growth of 7.2%

The net profit of Freedom Holding Corp. rose by 7.2% and reached $59 million in the first quarter of FY 2023 which ended on June 30, 2022. For comparison, in the same period last year, the company’s net profit was $55 million, according to the Securities and Exchange Commission (SEC).

The report shows that the rate of earning per share has slightly risen, reaching $0.99 (against $0.93 earlier). Other comprehensive income has increased from $59 million to $83 million.

The company’s quarterly revenue has risen by 56% to $227 million. This increase of $81 million was driven by several factors. For example, Freedom managed to increase its fee and commission income from $97 million to $132 million (36%) thanks to a growing number of both clients’ accounts and transactions. Also, the interest yield of the company has risen by 96% to $49 million. This increase is based on the company’s trading book which has gotten bigger and now includes more bonds than it had before. Also, Freedom has reported the increase in loans it issued. The company’s insurance business has risen by 71% and reached $24 million.

Freedom Holding Corp. has also reported an increase in expenditures in the first quarter (84%). This increase has been driven by two factors. First, an increase in operational costs by $32 million is the result of the holding’s expansion as the company hired more workers, paid bigger rewards to key employees, and poured more money into advertising, charity and sponsorship. On the other hand, an increase in interest costs by $29 million is the result of an increase in the volume of short-term financing due to repurchase agreements on securities and interest expenses on deposits, which in turn is a result of an increase in deposit accounts.

Over three months ended on June 30, 2022, the holding’s assets and liabilities increased by $620 million and $559 million respectively. As of June 30, there were 479,000 client accounts in the company, which is 17% more than on March 31, 2022.

On August 10, the price of one share of Freedom Holding Corp. rose by 7.61% to $57.56. In after-hours, the stock’s price rose even higher by 1.63% to $58.5.

In 2022, the company reported a 47.5% increase ($211 million) in net profit.