Company: FRHC
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000924805-25-000031
Chunk: 120

Company: Freedom Holding Corp.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 120
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 in thousands)20252024Amount Change%ChangeInterest income on loans to customers$61,694 $52,367 $9,327 18 %Interest income on margin loans to customers60,289 51,067 9,222 18 %Interest income on trading securities52,576 107,128 (54,552)(51)%Interest income on securities available-for-sale13,383 8,400 4,983 59 %Interest income on reverse repurchase agreements and amounts due from banks5,456 7,042 (1,586)(23)%Interest income on held-to-maturity securities5,173 — 5,173 100 %Total interest income$198,571 $226,004 $(27,433)(12)%

Three months ended June 30,20252024(as a % of total interest income)Interest income on loans to customers31 %23 %Interest income on margin loans to customers30 %23 %Interest income on trading securities26 %47 %Interest income on securities available-for-sale7 %4 %Interest income on reverse repurchase agreements and amounts due from banks3 %3 %Interest income on held-to-maturity securities3 %— %Total interest income 100 %100 %

For the three months ended June 30, 2025, we had interest income of $198.6 million, representing a decrease of $27.4 million, or 12%, compared to the three months ended June 30, 2024. The decrease was primarily driven by a $54.6 million, or 51% , decrease in interest income on trading securities. This decrease was primarily due to a lower volume of trading securities held during the period.

This decline was partially offset by increase in other streams of interest income. Specifically, interest income on loans to customers increased by $9.3 million, or 18%, due to the increase in loan portfolio. Similarly, interest income on margin loans to customers rose by $9.2 million, or 18%, reflecting increased customer activity in margin lending.

Additionally, the interest income on securities available-for-sale increased by $5.0 million, or 59%, compared to the three months ended June 30, 2024. Such increase was due to the increase of volume of available-for-sale securities which is attributable to the purchase of debt securities of the Ministry of Finance of the Republic of Kazakhstan.