Freedom Holding Corp. reports double increase in quarterly revenue

The holding’s revenue amounted to $418.6 million in the third quarter of the 2024 fiscal year, ending on December 31, 2023, which is almost a twofold increase over the same period last year ($214 million), according to the company’s financial statement.

The 96% increase in revenue ($204.6 million) was driven by several reasons. First, fee and commission income increased by 49% ($39.3 million) as the company expanded the scope of its operational activities and reported an increase in revenue from payment processing by PayBox and other subsidiaries.

Second, the percentage income of the holding rose by 182% ($146.2 million) as Freedom boosted its securities portfolio, while the number of loans it issued also grew. Third, the insurance business income of the holding reported a 177% increase ($50.5 million) in revenue, which was the result of the overall expansion of this business line within the holding.

Fourth, net financial results from trading securities dropped by 120% ($30.1 million). Within the reporting period, Freedom Holding Corp. obtained $9.4 million in revenue from securities trading. Debt securities of the Kazakhstan Sustainability Fund accounted for the lion’s share of this revenue. At the same time, the holding admitted unrealized net losses of $14.4 million due to those securities that weren’t sold by December 31, 2023. Securities of the Kazakhstan Sustainability Fund accounts for the vast majority of this unrealized net income.

Fifth, the net losses on derivatives grew by 98% ($21 million), driven by the negative revaluation of cross-currency swaps.

At the same time, Freedom Holding Corp. expenditures rose by 89% ($144.5 million) in Q3 of 2024 due to an increase in percentage and fee costs, growth of insurance compensations, salaries and bonuses for employees.

As a result, the holding’s net revenue amounted to $96.4 million with earnings per FRHC share of $1.65 (58.5 million shares in total), while other aggregated income reached $124 million.

The holding reported a 46.5% ($7.4 billion) increase in assets compared to March 31, 2023 ($5 billion). The company’s liabilities grew by 49% from $4 billion to $6.4 billion.

As of December 31, 2023, there were 458,000 client accounts registered with the holding, which is a 6% (24,000) increase over the number of such accounts on September 30, of the calendar year of 2023.