Company: FRHC
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0000924805-25-000002
Chunk: 142

Company: Freedom Holding Corp.
Filing Date: 2025-02-07
Form: 10-Q
Item: Part I, Item 1
Chunk 142
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119 24 %Interest income on margin loans to customers153,279 111,306 41,973 38 %Interest income on securities available-for-sale28,430 25,476 2,954 12 %Interest income on reverse repurchase agreements and amounts due from banks18,672 12,012 6,660 55 %Other interest income— 2,594 (2,594)(100)%Total interest income$661,016 $588,857 $72,159 12 %

Nine months ended December 31,20242023(as a % of total interest income)Interest income on trading securities47 %54 %Interest income on loans to customers23 %21 %Interest income on margin loans to customers23 %19 %Interest income on securities available-for-sale4 %4 %Interest income on reverse repurchase agreements and amounts due from banks3 %2 %Total interest income 100 %100 %

For the nine months ended December 31, 2024, we had interest income of $661.0 million, representing an increase of $72.2 million, or 12%, compared to the nine months ended December 31, 2023. The increase in interest income was primarily attributable to increases in interest income on margin loans to customers, loans to customers and securities available-for-sale. Interest income on margin loans to customers increased by $42.0 million, or 38%, due to an increase in the usage of margin loans for trades by our clients between the two periods. For the nine months ended December 31, 2024, we earned interest income from margin lending from a market maker customer at our Freedom Global subsidiary in an amount of approximately $29.5 million, representing 4% of our total interest income from margin lending for that period.

For the nine months ended December 31, 2024, interest income on loans to customers increased by $29.1 million, or 24%, compared to the nine months ending December 31, 2023 due to the growth of Freedom Bank KZ's customer loan portfolio between the two periods. 

77

The following table provides a summary of the monthly average balances and average interest rates for the major categories of our interest-earning assets for the nine months ended December 31, 2024 and 2023.

Nine months ended December 31,20242023(amounts in thousands)Average balanceInterest-earning assets