Company: FRHC
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0000924805-25-000002
Chunk: 45

Company: Freedom Holding Corp.
Filing Date: 2025-02-07
Form: 10-Q
Item: Part I, Item 2
Chunk 45
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2023. This shift is attributed to substantial growth in the Freedom Bank KZ's loan portfolio over the nine months ended December 31, 2023, driven by new banking products, partnership agreements, and effective advertising campaigns. 

Net Cash Flows From Financing Activities

Net cash flows from financing activities for the nine months ended December 31, 2024 was $833.6 million compared to net cash flow from financing activities in amount of $1.9 billion during the nine months ended December 31, 2023. Cash flows from financing activities during the nine months ended December 31, 2024 consisted principally of bank customer deposits received in the amount of $765.7 million, net repayment from obligations under securities repurchase agreements in amount of $157.1 million, proceeds from the issuance, net of repurchase, of debt securities in the amount of 201.7 million, and mortgage loans sold to JSC Kazakhstan Sustainability Fund as the Program Operator, net of repurchase, under the state mortgage program "7-20-25" in the amount of $19.4 million. During the nine months ended December 31, 2024, cash flows from financing activities decreased by $1.1 billion compared to the nine months ended December 31, 2023. This decrease was primarily attributable to a $1.5 billion change in net repayment/proceeds from securities repurchase agreement obligations due to significant growth of the Company's trading portfolio during the nine months ended December 31, 2023, which is mainly financed through the securities repurchase agreements.

CAPITAL EXPENDITURES 

On May 10, 2023, our subsidiary Freedom EU signed a contract for the construction of Elysium Tower, a building in Limassol, Cyprus. The building is planned to be a new office building for Freedom EU. Capital expenditures amounted to approximately $8.2 million in fiscal year 2024, with an additional amount of around $2.0 million incurred during the first nine months of fiscal year 2025. The remaining balance of approximately $3.9 million is expected to be incurred in during the 2025 calendar year. We are financing this construction project primarily using our own funds. 

On November 27, 2023, our Board of Directors approved a strategic plan to expand our business by entering the telecommunications market in Kazakhstan through our Freedom Telecom subsidiary. Execution of the new plan is expected to require significant capital expenditure, the specific amount of which is currently uncertain.