Company: FRHC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000924805-25-000041
Chunk: 177

Company: Freedom Holding Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 177
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 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 ended September 30, 2025, total expenses, net in our insurance segment increased mainly due to $46.2 million increase in insurance claims incurred, net of reinsurance due to claims paid in the class of  compulsory motor third-party liability (MTPL), a $8.1 million increase in stock compensation expense due to new stock grants, a $4.0 million increase in provisions for credit loses primarily driven by higher premium receivables, reflecting growth in written premiums during the period, a $2.3 million increase in payroll and bonuses expense due to the increase in headcount. The increase was partially offset by a $31.7 million decrease in fee and commission expense, a $8.7 million decrease in general and administrative expense, and a $1.8 million decrease in interest expense due to repurchase agreement obligations as a result of changes in securities portfolio.

              Other Segment

•In the six months ended September 30, 2025, the increase in our Other segment's total expenses, net was driven by an increase in payroll and bonuses, interest expense, cost of sales, advertising and sponsorship expense, general and administrative expense, and professional services. There was a $22.6 million increase in payroll and bonuses and $10.0 million in general and administrative expense in our Other segment which was mostly attributable to the overall growth of our operations as well as the addition of new subsidiaries. Cost of sales increased by $19.5 million due to a higher sales volume, which reflects our expansion into the telecommunications sector as well as