Company: FRHC
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0000924805-25-000002
Chunk: 16

Company: Freedom Holding Corp.
Filing Date: 2025-02-07
Form: 10-Q
Item: Part I, Item 2
Chunk 16
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Three months ended December 31,2024 vs 2023Increase/ (decrease) due to change in(amounts in thousands)RateVolumeNetInterest incomeInterest income on trading securities$(12,983)$(4,211)$(17,194)Interest income on loans to customers(269)1,829 1,560 Interest income on margin loans to customers(2,575)34,387 31,812 Interest income on available-for-sale securities(1,264)4,812 3,549 Other interest income— — 586 Total interest income$(17,091)$36,817 $20,313 

Net gain on foreign exchange operations

For the three months ended December 31, 2024, we realized a net gain on foreign exchange operations of $3.9 million compared to a net gain of $38.8 million for the three months ended December 31, 2023. The net gain for the three months ended December 31, 2024, is primarily attributable to a $23.2 million gain from foreign currency transactions, partially offset by a $19.2 million translation loss. The decrease compared to the prior-year period was mainly driven by a 9.1% 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 three months ended December 31, 2024, we had net gain on derivatives of $11.9 million compared to a net loss of $42.6 million for the three months ended December 31, 2023. The increase in the amount of net gain was primarily attributable to our subsidiary, Freedom Bank KZ, which had a realized net gain of $10.6 million for the three months ended December 31, 2024, as compared to a realized net loss of $41.8 million for the three months ended December 31, 2023. Such change between the two periods was mainly due to a positive revaluation of currency swaps for the three months ended December 31, 2024. Freedom Bank KZ engages in currency swaps to diversify its funding and liquidity sources.

Insurance underwriting income

For the three months ended December 31, 2024, we had insurance underwriting income of $177.5 million, an increase of $98.5 million, or 125%, as compared to the three months ended December