Company: FRHC
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0000924805-25-000002
Chunk: 144

Company: Freedom Holding Corp.
Filing Date: 2025-02-07
Form: 10-Q
Item: Part I, Item 1
Chunk 144
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,510 Interest income on available-for-sale securities(3,140)6,094 2,954 Other interest income— — 4,066 Total interest income$(12,055)$86,685 $78,696 

Net gain on foreign exchange operations

For the nine months ended December 31, 2024, we realized a net gain on foreign exchange operations of $18.5 million compared to a net gain of $54.4 million for the nine months ended December 31, 2023. The net gain for the nine months ended December 31, 2024, is primarily attributable to a $52.7 million gain from foreign currency transactions, partially offset by a $34.2 million translation loss. The decrease compared to the prior-year period was mainly driven by an 18% depreciation of the Kazakhstan tenge against the U.S. dollar, which led to increased foreign exchange currency losses for our subsidiaries operating in Kazakhstan.

Net gain on derivatives

For the nine months ended December 31, 2024, we had net gain on derivatives of $30.7 million compared to a net loss of $71.8 million for the nine months ended December 31, 2024. The change was primarily attributable to our subsidiary Freedom Bank KZ, which had a realized net gain of $24.1 million for the nine months ended December 31, 2024, as compared to a realized net loss of $72.0 million for the nine months ended December 31, 2023. Such change between the two periods was mainly due to a positive revaluation of currency swaps for the nine months ended December 31, 2024. Freedom Bank KZ engages in currency swaps to diversify its funding and liquidity sources. 

Insurance underwriting income

For the nine months ended December 31, 2024, we had insurance underwriting income of $467.2 million, an increase of $285.3 million, or 157%, as compared to the nine months ended December 31, 2023. The increase was primarily attributable to a $302.9 million, or 158%, increase in insurance underwriting income from written insurance premiums for the nine months ended December 31, 2024, as compared to the nine months ended December 31, 2023, due to the expansion of our insurance operations such as pension annuity and accident insurance classes between the two periods. This increase in income from written insurance premiums was partially offset