Company: FRHC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000924805-25-000041
Chunk: 21

Company: Freedom Holding Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 21
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 expense on debt securities issued increased to $17.5 million in the three months ended September 30, 2025, compared to $7.0 million in the three months ended September 30, 2024. This increase was primarily driven by the placement of several new debt securities between the two periods. The impact of the higher balance was partially offset by a decrease in the average interest rate from 11% to 10%. The increase in debt issuance reflects the Group’s long-term funding and investment strategy.

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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 three months ended September 30, 2025 and 2024.

Three months ended September 30,20252024(amounts in thousands)Average balanceInterest-bearing liabilitiesSecurities repurchase agreement obligations$1,300,516$2,587,058Customer liabilities (1)1,414,3341,062,703Debt securities issued713,196267,023Margin lending payable405,214307,477Average ratesSecurities repurchase agreement obligations10.9 %14.0 %Customer liabilities (1)12.7 %9.2 %Debt securities issued10.2 %10.9 %Margin lending payable5.6 %10.0 %Interest expenseInterest expense on securities repurchase agreement obligations$34,051$86,116Interest expense on customer accounts and deposits43,02423,696Interest expense on debt securities issued17,5006,969Interest expense on margin lending payable5,5987,416Other interest expense2,086468Total interest expense$102,259$124,665

(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.

Three months ended September 30,2025 vs 2024(Decrease)/increase due to change in(amounts in thousands)RateVolumeNetInterest expenseInterest expense on securities repurchase agreement obligations$(16,056)