Company: FRHC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000924805-25-000041
Chunk: 322

Company: Freedom Holding Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 322
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 are summarized in the following table:

Six months ended September 30,20252024Amount Change%ChangeBrokerage$168,284 $169,600 $(1,316)(1)%Banking257,443 272,106 (14,663)(5)%Insurance309,326 290,661 18,665 6 %Other223,476 138,686 84,790 61 %Total expense, net$958,529 $871,053 $87,476 10 %

For the six months ended September 30, 2025, total expenses, net increased across Insurance and Other segments compared to the six months ended September 30, 2024. Below is a discussion of changes in expenses for each of our segments for the six months ended September 30, 2025 versus the six months ended September 30, 2024:

Brokerage Segment

•In the six months ended September 30, 2025, the total expenses, net, in our Brokerage segment decreased by $1.3 million. The decrease was primarily driven by a $28.6 million decrease in interest expense, mainly related to lower interest paid on securities repurchase agreements. Advertising and sponsorship expenses in this segment also decreased by $8.7 million, as marketing activities were scaled back during the period. Additionally, allowance for expected credit losses decreased by $2.0 million. These decrease were partially offset by an increase in payroll and bonus expenses of $25.6 million, reflecting our continued investment in attracting and retaining top talent, as well as fee and commission expenses of $10.3 million, due to higher customer activity. 

Banking Segment

•In the six months ended September 30, 2025, total expenses, net in our Banking segment decreased primarily due to a $44.6 million decrease in interest expense due to reduction in the securities portfolio for which the Bank uses repurchase agreements. The decrease was partially offset by a $12.1 million increase in payroll and bonuses expense,a  $6.9 million increase in fee and commission expense, in particular for the banking services, a $5.1 million increase in provision for credit losses, a $2.0 million increase in general and administrative expense in particular for the depreciation of fixed assets and software expenses, a $1.8 million increase in stock based compensation, and a $1.6 million increase in advertising and sponsorship expense.Insurance Segment

•In the six months