Company: FRHC
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0000924805-25-000002
Chunk: 135

Company: Freedom Holding Corp.
Filing Date: 2025-02-07
Form: 10-Q
Item: Part I, Item 1
Chunk 135
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%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 $63.5 million, or 155%, increase in insurance claims incurred, net of reinsurance, as compared to the three months ended December 31, 2023. The increase was primarily attributable to the general expansion of our insurance operations between the two quarters.

Payroll and bonuses

For the three months ended December 31, 2024, we had payroll and bonuses expense of $77.4 million, representing an increase of $32.3 million or 72% compared to payroll and bonuses expense of $45.1 million for the three months ended December 31, 2023. The increase in payroll and bonus expenses is primarily attributable to increased salary and bonus amounts between the two quarters. The increase was also due to the expansion of our