Company: FRHC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000924805-25-000041
Chunk: 311

Company: Freedom Holding Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 311
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81,266 9.3 %6,265 8 %Allowance for expected credit losses16,766 2 %8,657 1.0 %8,109 94 %Cost of sales29,042 3 %9,523 1 %19,519 205 %Total expense$958,529 100 %$871,053 100 %$87,476 10 %              ______________

*    Percentage of total expense.

Fee and commission expense 

The following table sets forth information regarding our fee and commission expense for the periods presented.Six months ended September 30,20252024Amount Change%ChangeAgency fee expense107,148 138,846(31,698)(23)%Brokerage services18,228 9,5028,726 92 %Bank services16,774 8,1238,651 107 %Exchange services426 1,007(581)(58)%Central Depository services576 343233 68 %Other commission expenses5,881 13,163(7,282)(55)%Total fee and commission expense$149,033 $170,984 $(21,951)(13)%

The following table sets out the components of our fee and commission expense as a percentage of total fee and commission expense, net for the periods presented.

Six months ended September 30,20252024(as a % of total fee and commission expense)Agency fee expense72 %81 %Brokerage services13 %6 %Bank services11 %5 %Exchange services— %1 %Central Depository services— %— %Other commission expenses4 %8 %Total fee and commission expense100 %100 %

Fee and commission expense decreased by $22.0 million, or 13% in the six months ended September 30, 2025, as compared to the six months ended September 30, 2024. The decrease was mainly attributable to a $31.7 million decrease in agency fee expenses in the six months ended September 30, 2025 as compared to the six months ended September 30, 2024, 

89

driven by the regulatory cap on commissions paid to insurance agents for policies associated with bank and microfinance loan products, which reduced new business volumes during the period.. Additionally, the decrease was partially offset $8.7 million increase in bank services expense increased during