February 7, 2025, Almaty

Revenue growth of $236.6 million (+57%) compared to the previous year was driven by the following factors:

Insurance underwriting revenue increased from $79 million to $177.5 million (+125%), mainly due to the rise in pension annuity contracts and accident insurance policies.
Net income from trading securities improved from a net loss of $5.1 million to a net profit of $89.6 million (+1,860%), primarily due to the sale of Kazakhstan's sovereign bonds. Additionally, an unrealized net profit of $74.6 million was recognized during the same period, related to the increase in the value of security positions.
Net income from derivative financial instruments improved from a net loss of $42.6 million to a net profit of $11.9 million (+128%). This was mainly attributed to Freedom Bank, which reported a net profit of $10.6 million compared to a net loss of $41.8 million last year, due to a positive revaluation of currency swaps for the three months ending December 31, 2024.
Commission income increased from $120.2 million to $143.4 million (+19%), mainly due to the growth in the number of retail brokerage clients.
Expenses
The holding's expenses increased by $249.9 million (+81%). This was driven by the following factors:

Insurance claims incurred, net of reinsurance, increased by $63.5 million (+155%), primarily due to the expansion of insurance operations between the two quarters.
Commission expenses rose by $51.1 million (+119%), mainly due to higher agency commission expenses in the life insurance business.
General and administrative expenses, including charity and sponsorship costs, increased by $41.3 million (+129%).
Provisions for expected credit losses rose by $34.1 million (+968%), mainly due to increased reserves for unsecured bank loans and acquired retail loan claims, driven by changes in forecasted information related to currency depreciation before the reporting date.
Salaries and bonuses increased by $32.3 million (+72%), due to the growing number of employees in the holding’s companies.
Financial Highlights
Net income of Freedom Holding Corp. reached $78.1 million.
Basic earnings per share, based on a weighted average of 59.4 million shares, amounted to $1.32.
Diluted earnings per share, based on a weighted average of 60.5 million shares, amounted to $1.29.
The holding's total assets increased from $8.302 billion to $9.135 billion (+10%), while total liabilities rose from $7.135 billion to $7.872 billion (+10.3%).

As of December 31, 2024, the number of the holding's brokerage client accounts stood at 618,000, an increase of 63,000 compared to the previous quarter.

Reference
The third quarter of fiscal year 2025 for the company ended on December 31, 2024.

Change in Reserve Due to Currency Translation Adjustments
The holding’s other comprehensive income/expense includes income and expenses related to the revaluation of currency reserves arising from the conversion of financial statement figures expressed in the functional currencies of subsidiaries into the holding’s reporting currency during consolidation. In the calculation of this reserve, asset and liability items are converted at the exchange rate on the reporting date, while income and expense items are converted at the average exchange rate for the reporting period. A positive reserve adjustment occurs when the functional currencies of subsidiaries depreciate relative to the holding’s reporting currency.

About the Company
Freedom Holding Corp. is a diversified financial services company engaged in brokerage, securities trading, investment research and advisory, investment banking and underwriting, mortgages, insurance, telecommunications, online ticket sales for flights, cultural, and sports events, and operates an online supermarket, among other services.

Including its subsidiaries, Freedom Holding Corp. employs over 8,200 people. The holding's divisions and subsidiaries operate in 22 countries, including Kazakhstan, the USA, Cyprus, Poland, Spain, Uzbekistan, Azerbaijan, and others.

The common stock of Freedom Holding Corp. is registered with the U.S. Securities and Exchange Commission (SEC) and trades on the Nasdaq Capital Market under the ticker FRHC.

Media Contacts
Ramina Fakhrutdinova – Advisor to the Chairman of the Board of Directors for PR, Freedom Finance JSC
Email: [email protected]
Website: www.freedomholdingcorp.com