Company: FRHC
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0000924805-25-000002
Chunk: 37

Company: Freedom Holding Corp.
Filing Date: 2025-02-07
Form: 10-Q
Item: Part I, Item 2
Chunk 37
---
 loss on foreign currency exchange.

Banking Segment

In the three months ended December 31, 2024, total revenue, net in the Banking segment increased as compared to the three months ended December 31, 2023, mainly attributable to net gain on trading securities, net gain on derivatives and fee and commission income earned in this segment in the three months ended December 31, 2024. These increases were partially offset by net loss on foreign exchange operations compared to a net gain in prior quarter in this segment in the three months ended December 31, 2024. 

Insurance Segment

In the three months ended December 31, 2024, total revenue, net in the Insurance segment increased mainly due to an increase in insurance underwriting income, net gain on trading securities and net gain on foreign exchange operations due to an appreciation of the U.S. dollar against the Kazakhstan tenge between the two periods.These increases were partially offset by the decrease of other income.

Other Segment

In the three months ended December 31, 2024, total revenue, net in the Other segment increased mostly due to an increase of $18.3 million in net gain on foreign exchange operations mainly from FRHC, which was attributable to an appreciation of the U.S. dollar against the Kazakhstan tenge between the two quarters. There were also increase in other income of newly established subsidiaries which was partially offset by the decrease of net gain on trading securities and fee and commission income.   

Total expenses associated with our segments are summarized in the following table:

84

Three months ended December 31,(amounts in thousands)20242023Amount Change%ChangeBrokerage$89,930 $73,360 $16,570 23 %Banking165,695 113,916 51,779 45 %Insurance199,662 82,799 116,863 141 %Other101,575 36,940 64,635 175 %Total expense, net$556,862 $307,015 $249,847 81 %

For the three months ended December 31, 2024, total expenses, net increased across each of our business segments compared to the three months ended December 31, 2023.

Brokerage Segment

In the three months ended December 31, 2024, total expenses, net in our Brokerage segment increased due to $5.1 million increase in fee and commission expense, which was in turn mainly due to brokerage