Company: FRHC
Filing Date: 2025-06-13
Form Type: 10-K
Source: 0000924805-25-000012
Chunk: 177

Company: Freedom Holding Corp.
Filing Date: 2025-06-13
Form: 10-K
Item: Item 7
Chunk 177
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% to 10%, reflecting a shift toward long-term financing at higher prevailing market rates. This increase in debt securities expense aligns with our broader

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 funding strategy to support business expansion and strengthen liquidity reserves. During fiscal 2025, we issued an additional $200 million of debt securities, which contributed to the increase in average balance and interest expense.

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 fiscal years ended March 31, 2025, and 2024.

Year ended March 31,20252024Average balanceInterest-bearing liabilitiesSecurities repurchase agreement obligations$2,370,620 $2,590,599 Customer liabilities 11,157,574 1,070,098 Margin lending payable647,966 218,730 Debt securities issued356,653 131,047 Average ratesSecurities repurchase agreement obligations14.38 %15.54 %Customer liabilities 19.64 %6.61 %Margin lending payable7.06 %7.77 %Debt securities issued10.13 %7.90 %Interest expenseInterest expense on securities repurchase agreement obligations$340,863 $402,665 Interest expense on customer accounts and deposits111,541 70,778 Interest expense on margin lending payable45,748 16,990 Interest expense on debt securities issued36,130 10,356 Other interest expense1,613 322 Total interest expense$535,895 $501,111 

(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 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. 

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Year ended March 31,2025 vs 2024Increase/ (decrease) due to change inRateVolumeNetInterest expenseInterest expense on securities repurchase agreement obligations$(28,971)$(32,831)$(61,802)Interest expense on customer accounts and deposits34,576 6,187