Company: FRHC
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0000924805-25-000002
Chunk: 18

Company: Freedom Holding Corp.
Filing Date: 2025-02-07
Form: 10-Q
Item: Part I, Item 2
Chunk 18
---
 for/(recovery of) allowance for expected credit losses30,612 5 %(3,526)(1)%34,138 (968)%Total expense$556,862 100 %$307,015 100 %$249,847 81 %              ______________

*    Percentage of total expense.

Fee and commission expense 

The following table sets forth information regarding our fee and commission expense for the periods presented.Three months ended December 31,(amounts in thousands)20242023Amount Change%ChangeAgency fees expense$74,684 $29,956 $44,728 149 %Brokerage services9,432 4,4984,934 110 %Banking services5,409 5,513(104)(2)%Exchange services351 762(411)(54)%Central depository services152 12626 21 %Other commission expenses 3,899 1,9631,936 99 %Total fee and commission expense$93,927 $42,818 $51,109 119 %

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 December 31,20242023(as a % of total fee and commission expense)Agency fees expense80 %70 %Brokerage services10 %11 %Banking services6 %12 %Exchange services— %2 %Central depository services— %— %Other commission expenses4 %5 %Total fee and commission expense100 %100 %

71

Fee and commission expense increased by $51.1 million or 119% in the three months ended December 31, 2024, as compared to the three months ended December 31, 2023. The increase is mainly attributable to an increase of agency fees expense of $44.7 million or 149% compared to the three months ended December 31, 2023. The increase in agency fees expenses was due to an increase in insurance products sales by Freedom Life, which are outsourced to outside agents. The increase in brokerage services, from $4.5 million to $9.4 million, was primarily due to heightened client activity within our brokerage services. This growth in client transactions led to a corresponding increase in associated commission costs. Additionally, other commission expenses rose as a result of higher bank commissions, driven by increased business