Company: FRHC
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000924805-25-000031
Chunk: 246

Company: Freedom Holding Corp.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 246
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616,105Customer liabilities (1)1,380,725688,617Debt securities issued586,854264,961Margin lending payable810,691933,549Average ratesSecurities repurchase agreement obligations10.4 %14.9 %Customer liabilities (1)11.9 %14.1 %Debt securities issued9.7 %10.9 %Margin lending payable6.8 %10.3 %Interest expenseInterest expense on securities repurchase agreement obligations$45,461$92,407Interest expense on customer accounts and deposits39,33223,127Interest expense on debt securities issued13,7516,969Interest expense on margin lending payable13,37423,123Other interest expense1,49292Total interest expense$113,410$145,718

(1) Average balance, average rates, and interest expense relates to interest-bearing deposits.

The following table sets forth the effects of changing rates and volumes on interest. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. Changes attributable to changes in both rate and volume that cannot be segregated have been allocated proportionally based on changes due to rate and the changes due to volume.

Three months ended June 30,2025 vs 2024(Decrease)/increase due to change in(amounts in thousands)RateVolumeNetInterest expenseInterest expense on securities repurchase agreement obligations$(23,326)$(23,620)$(46,946)Interest expense on customer accounts and deposits(3,028)19,233 16,205 Interest expense on debt securities issued(695)7,477 6,782 Interest expense on margin lending payable(7,041)(2,708)(9,749)Other interest expense— — 1,400 Total$(34,090)$382 $(32,308)

Insurance claims incurred, net of reinsurance

For the three months ended June 30, 2025 we had a $33.0 million, or 70%, increase in insurance claims incurred, net of reinsurance, as compared to the three months ended June 30, 2024. The increase was primarily attributable to a $15.7 million, or 58%, rise in expenses for insurance reserves, mainly driven by growth in pension annuity and