June 28, 2024, Almaty

International agency S&P Global Ratings has revised the outlook for the ratings of JSC "Freedom Finance," Freedom Finance Europe Ltd, Freedom Finance Global PLC, and JSC "Freedom Bank Kazakhstan" from "negative" to "positive" and affirmed the long-term and short-term credit ratings at "B/B." The outlook for the long-term credit rating of Freedom Holding Corp. has been revised from "negative" to "stable," with the rating affirmed at "B-." The ratings of JSC "Freedom Finance" and JSC "Freedom Bank Kazakhstan" on the national scale have been upgraded to "kzBBВ-."

S&P analysts noted the gradual improvement in the risk management system and capitalization metrics of the Freedom group, as well as the reduction of economic risks and the improvement of banking supervision in Kazakhstan, which could support the group's business development over the next 12 months.

"We expect Freedom to maintain high profitability in 2024-2025, supported by revenue diversification through increased banking and insurance activities in Kazakhstan. The three-year average (March 2022 – March 2024) of core profit to S&P Global Ratings risk-weighted assets remained stable at around 3.4%, which is high in an international context. In 2023, the Freedom group began creating a consolidated risk management system. Recently, the group hired executives for the risk management, compliance, and legal departments. In May 2024, the Freedom group expanded its Board of Directors from six to seven members, four of whom are independent and have international experience," the S&P Global Ratings report states.

The agency may upgrade the ratings of the Freedom group's operating subsidiaries within the next 12 months, provided that the development of the overall risk management and compliance system continues and the group's strong capitalization level is maintained.

Background Information:
About Freedom Holding Corp.

Freedom Holding Corp. is a diversified company providing financial services, including brokerage, securities trading, investment research and advisory, investment banking, underwriting services, mortgages, insurance, telecommunications, online ticket sales for flights and cultural and sports events, online supermarket services, and more. Including its subsidiaries, Freedom Holding Corp. has over 6,000 employees. The company's headquarters are located in Almaty, Kazakhstan, with divisions and subsidiaries in 19 countries, including Kazakhstan, the USA, Cyprus, Poland, Spain, Uzbekistan, Azerbaijan, and others. The common shares of Freedom Holding Corp. are registered with the U.S. Securities and Exchange Commission and traded under the ticker FRHC on the Nasdaq Capital Market. For more information about Freedom Holding Corp., visit www.freedomholdingcorp.com.

Media Contacts:
Ramina Fakhrutdinova – Advisor to the Chairman of the Board of Directors for PR at JSC "Freedom Finance"
E-mail: [email protected]