Company: FRHC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000924805-25-000041
Chunk: 153

Company: Freedom Holding Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 153
---
 services248 135113 84 %Exchange services201 466(265)(57)%Other commission expenses2,937 5,528(2,591)(47)%Total fee and commission expense$64,162 $90,837 $(26,675)(29)%

The following table sets out the components of our fee and commission expense as a percentage of total fee and commission expense, net for the periods presented.

Three months ended September 30,20252024(as a % of total fee and commission expense)Agency fee expense64 %81 %Brokerage services17 %7 %Bank services14 %5 %Exchange services— %1 %Central Depository services— %— %Other commission expenses5 %6 %Total fee and commission expense100 %100 %

Fee and commission expense decreased by $26.7 million, or 29% in the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. The decrease was mainly attributable to a $32.8 million in agency fee service expenses in the three months ended September 30, 2025 as compared to the three months ended September 30, 

80

2024, driven by regulatory cap on commissions paid to insurance agents for policies associated with bank and microfinance loan products, which reduced new business volumes during the period. Additionally, the decrease was partially offset by $4.4 million increase in bank services expense during the period, reflecting the continued expansion of our customer base and the growing volume of card transactions within our ecosystem. 

Interest expense

During the three months ended September 30, 2025, total interest expense amounted to $102.3 million, representing a decrease of $22.4 million, or 18%, compared to $124.7 million for the same period in 2024. The decline was primarily driven by changes in average balances and average interest rates across several funding sources.

There was a decrease in interest expense on securities repurchase agreement obligations, driven by a 50% decline in the average balance, from $2.6 billion during the three months ended September 30, 2024 to $1.3 billion during the three months ended September 30, 2025. This decrease primarily reflects the Group's strategic decision to reduce exposure to market risk by liquidating a portion of the trading portfolio, which historically has been primarily funded through repurchase agreements. As a result