Company: FRHC
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0000924805-25-000002
Chunk: 261

Company: Freedom Holding Corp.
Filing Date: 2025-02-07
Form: 10-Q
Item: Part I, Item 8
Chunk 261
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10%, reflecting a shift toward long-term financing at higher prevailing market rates. This increase in debt issuance aligns with our broader funding strategy to support business expansion and strengthen liquidity reserves.

The following table provides a summary of the monthly average balances and average interest rates for the major categories of interest-bearing liabilities for the three months ended December 31, 2024 and 2023.

Three months ended December 31,20242023(amounts in thousands)Average balanceInterest-bearing liabilitiesSecurities repurchase agreement obligations$2,422,139$2,852,638Customer liabilities (1)1,572,5541,097,977Debt securities issued423,565131,263Average ratesSecurities repurchase agreement obligations15.4 %16.5 %Customer liabilities (1)7.1 %5.8 %Debt securities issued9.8 %4.6 %Interest expenseInterest expense on securities repurchase agreement obligations$88,526$110,778Interest expense on customer accounts and deposits27,28815,653Interest expense on debt securities issued9,9741,491Other interest expense5,3483,301Total interest expense$131,136$131,223

(1) Average balance, average rates, and interest expense relates to interest-bearing deposits.

The following table sets forth the effects of changing rates and volumes on interest. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects 

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attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. Changes attributable to changes in both rate and volume that cannot be segregated have been allocated proportionally based on changes due to rate and the changes due to volume.

Three months ended December 31,2024 vs 2023(Decrease)/increase due to change in(amounts in thousands)RateVolumeNetInterest expenseInterest expense on securities repurchase agreement obligations$(6,482)$(15,770)$(22,252)Interest expense on customer accounts and deposits3,958 7,677 11,635 Interest expense on debt securities issued2,824 5,659 8,483 Other interest expense— — 2,047 Total$300 $(2,434)$(87)

Insurance claims incurred, net of reinsurance

For the three months ended December 31, 2024, we had a $63.