Freedom Holding Corp. Reports Fiscal Year 2024 Financial Results
Freedom Holding Corp. (NASDAQ: FRHC) reported record financial results for fiscal year 2024, highlighting a 105% increase in revenues to $1.6 billion. Core brokerage and banking operations generated 75% of total revenue, with fee and commission income rising by 35% to $440 million. Interest income surged by 181% to $828 million. Net income grew to $375 million, with EPS up to $6.37 from $3.50 in 2023.
Total assets increased to $8.3 billion, driven by a 53% rise in the proprietary trading portfolio and a 68% increase in customer loans. The company completed five acquisitions and entered the telecom market with a $200 million bond offering. Expansion included new offices in Europe, while total expenses rose due to higher interest, payroll, and administrative costs. The insurance segment saw a 100% revenue increase, and total bank accounts grew significantly. The company plans further digital integration, AI-driven solutions, and continued global expansion in FY 2025.
- Revenue increased by 105% to $1.6 billion.
- Net income grew to $375 million, up from $206 million in 2023.
- EPS increased to $6.37, from $3.50 in 2023.
- Total assets rose to $8.3 billion, a 63% increase.
- Interest income surged by 181% to $828 million.
- Customer loans increased by 68% to $1.4 billion.
- Five acquisitions completed, expanding service offerings.
- Entered telecom market with Kazakhstan's largest retail bond offering.
- Total brokerage customers grew by 43% to 530,000.
- Bank accounts in Freedom Bank KZ doubled to 3.4 million.
- Insurance segment revenue doubled to $341 million.
- Fee and commission income increased by 35% to $440 million.
- Total expenses increased by 47%, driven by higher interest and payroll costs.
- General and administrative expenses rose significantly.
- Interest expense on customer deposits increased by $37.8 million.
- A net loss on derivatives partially offset revenue gains in banking.
Insights
The annual financial results for Freedom Holding Corp. are impressive, with a 105% increase in revenue to
Rating Score: 1
The expansion across various segments, including the company's move into telecommunications with a $200 million bond offering, indicates an ambition to diversify and build a robust fintech ecosystem. The acquisitions of several companies such as Aviata LLP, Internet-Tourism LLP and Arbuz, each adding complementary services, demonstrate strategic growth. The increase in brokerage customers by 43% and bank accounts at Freedom Bank KZ by 100% underscores strong customer acquisition and retention capabilities. These moves position the company well within the financial services sector in Kazakhstan and beyond, but investors should consider the risk of over-expansion and potential integration challenges associated with multiple acquisitions.
Rating Score: 1
Freedom Holding Corp.’s appointment of a new Chief Compliance Officer, Chief Risk Officer and Chief Legal Officer indicates a commitment to strong governance and regulatory compliance. Enhancing their risk management frameworks and focusing on customer onboarding improvements can reduce operational risks and ensure adherence to regulatory standards. This move can reassure investors about the company’s diligence in managing regulatory risks, especially as it continues to expand and diversify across multiple regions and industries, reducing the likelihood of compliance-related setbacks.
Rating Score: 1
Company Reports Record Year, With
Commenting on the results, Timur Turlov, the Company's founder and chief executive officer, stated:
“I am pleased to report that fiscal 2024 has been a record year for our company, both from a revenue and earnings perspective. Our core brokerage and banking businesses constituted approximately
“Through sustained investment in digitalization we were able to better manage our large-scale operation efficiently and retain our position as a leading player in the digital financial services industry in
“To remain competitive in a fast-paced industry, we are constantly evolving to adapt to increasingly complex market conditions and shifting client needs. We expect to continue to expand our operations globally, including further development of our investment banking, capital markets advisory, and research offering in the US, and seek growth opportunities in
Fiscal 2024 Highlights:
-
Revenue totaled approximately
compared to$1.6 billion for the prior fiscal year, an increase of$796 million 105% , primarily attributable to an increase in interest income, fee and commission income, and insurance underwriting income. -
Fee and commission income was
, an increase of$440 million 35% from for fiscal 2023, driven by an increase in number of retail brokerage customers from 370,000 in 2023 to 530,000 in 2024, as well as increased trading volumes across key markets.$327 million -
Interest income increased by
181% to , as a result of an increase in interest income on trading securities, interest income on margin loans to customers, and interest income on loans to customers.$828 million -
Net income for the fiscal year was
as compared to$375 million in 2023.$206 million -
Basic and diluted earnings per share were
and$6.37 , respectively, for fiscal 2024. This compares to$6.33 and$3.50 for fiscal 2023.$3.45 -
Total assets were
as of March 31, 2024, as compared to$8.3 billion as of March 31, 2023. The main increase was attributable to our proprietary trading portfolio which increased by$5.1 billion 53% to as of March 31, 2024 from$3.7 billion as of March 31, 2023, customer loans issued due to the loan portfolio of Freedom Bank KZ which increased by$2.4 billion 68% to as of March 31, 2024 from$1.4 billion as of March 31, 2023, as well as margin lending, brokerage, and other receivables which increased by$826.3 million 341% to as of March 31, 2024 from$3.7 billion as of March 31, 2023.$376 million -
Acquisitions in
Kazakhstan of Aviata LLP and Internet-Tourism LLP in April 2023, Arbuz in May 2023, ReKassa in July 2023 and DITel LLP in January 2024 contributed to revenue growth during the year. In addition, in November 2023, the board of directors approved a plan to expand the business by entering into the telecommunications market inKazakhstan through our Freedom Telecom subsidiary. -
The Company opened new representative offices in
Austria ,Belgium ,Bulgaria ,Italy , andthe Netherlands . -
The Company’s Shapagat Non-Profit Corporate Fund, founded in August 2023, endeavors to support and contribute to sports, culture, and educational causes amongst local communities. In fiscal 2024,
was committed to charitable endeavors, which included supporting the Kazakhstan Chess Federation, the International Collegiate Programming Contest (ICPC), the “Teach for Qazaqstan” initiative, the construction of a new educational building at SDU University in$2.9 million Almaty and the design and construction of a sports hall for persons with disabilities in Uralsk. During the fiscal year, a new campus of the IQanat school opened inKazakhstan , with its construction partially financed by the Fund. - An inaugural Sustainability Report was published in December 2023, emphasizing the Company’s dedication to ESG principles, covering personnel care, community impact, corporate governance, and key environmental data.
Division Segment Breakdown:
Brokerage
-
Total brokerage customers increased by
43% to approximately 530,000 as of March 31, 2024, as compared to approximately 370,000 customers as of March 31, 2023. -
Total net revenue increased to
, up$617 million 60% over the previous fiscal year, primarily driven by fee and commission income and interest income. Fee and commission income from brokerage services grew by18% to primarily driven by a general increase in brokerage activity between the two periods. Interest income increased by$352 million during fiscal 2024 in comparison to$233 million during fiscal 2023, due to an increase in interest accrued on securities held in our proprietary trading portfolio and interest income on margin loans to customers.$65 million -
Total expenses increased by
47% primarily driven by a rise in interest expense, mainly due to interest paid on securities repurchase agreements. Additionally, an increase in payroll and bonuses reflected our efforts to attract and retain top talent. General and administrative expenses rose due to the overall growth of operations. However, these increases were partially offset by a decrease in provision for impairment and fee and commission expenses. - The omnibus brokerage arrangement with FST Belize was terminated as of March 31, 2024.
Banking
- There were approximately 3.4 million bank accounts held in the Freedom Bank KZ subsidiary as of March 31, 2024, as compared to approximately 1.7 million as of March 31, 2023.
-
Total net revenue of
, a$615 million 151% increase, was mainly attributable to higher interest income from trading securities in Freedom Bank KZ’s proprietary portfolio and interest income on loans to customers. An increase in net gain on trading securities, due to the growth of the proprietary trading portfolio within this segment, also contributed to the revenue increase. However, these gains were partially offset by a net loss on derivatives. -
Total expenses increased by
160% , primarily driven by a rise in interest expense on securities repurchase agreements within this segment, and a increase in interest expense on customer deposits. Additionally, payroll and bonuses increased by$37.8 million , reflecting the growth of Freedom Bank KZ's operations. General and administrative expenses rose by$27.2 million , further contributing to the overall increase.$17.1 million
Insurance
- The number of active insurance contracts grew from 681,667 as of March 31, 2023, to 807,173 as of March 31, 2024. This growth reflects our successful efforts in diversifying our insurance product offerings and expanding our insurance customer base.
-
Total net revenue in the insurance segment increased by
100% to , mainly due to an increase in underwriting income, reflecting the overall growth of our insurance operations.$341 million -
Insurance underwriting income increased
129% to , due an$264 million 110% increase in written insurance premiums in FY 2024 to , driven by the expansion of insurance operations.$287.8 million -
The increase in insurance revenue was partially offset by a
, or$9.7 million 127% , increase in the negative change in reinsurance premiums ceded. -
Total expenses increased by
119% due to higher fee and commission expenses, attributable to the overall growth of the insurance operations, in addition to higher interest expenses, primarily from securities repurchase agreements.
Other
-
In fiscal 2024, total net revenue in the Other segment increased to
, from$62.5 million loss in 2023, mainly due to higher fee and commission income from payment processing at Paybox and its subsidiaries, which were acquired in the fourth quarter of fiscal 2023.$4.7 million -
Total expenses in the Other segment increased by
172% due to increases in payroll, professional services and advertising expenses related to FRHC and Paybox. Higher fee and commission expenses resulted from the overall growth in the provision of acquiring payment services, as well as online aggregators for buying air and railway tickets. -
We established Aviata LLP and Internet Tourism LLP during the reporting period. Aviata's preeminent position in the air and rail ticketing sectors makes it an important strategic asset to the enterprise as it works to develop a comprehensive digital fintech ecosystem in
Kazakhstan , while Internet-Tourism LLP, aKazakhstan -based online aggregator for buying air and railway tickets, aids in expanding our presence in the digital services ecosystem inKazakhstan . - We acquired Arbuz Group LLP, a food tech service, to accelerate our growth in e-commerce sector.
-
We completed the acquisition of
90% of Comrun LLP ("Rekassa"), aKazakhstan -based digital service for cash transaction data management, in order to expand our presence in the digital services ecosystem inKazakhstan . -
We formed Freedom Telecom to establish a new independent telecom business in
Kazakhstan . -
We established Freedom Media, with the goal of becoming a national media content platform in
Kazakhstan .
Corporate Governance and Compliance
As part of its commitment to strong governance and compliance, in October 2023 the Company appointed a new Chief Compliance Officer, focused on further improving Freedom’s robust control framework and policies, and investing in staff, tools, and technology to support best practice in customer onboarding and ongoing monitoring.
In January 2024 the Company appointed a new Chief Risk Officer, focused on further enhancing Freedom’s comprehensive risk management framework and policies. This role is concentrated on identifying, assessing, and mitigating risks across the organization, ensuring that our operations are aligned with best practices in risk management.
In related news, and in line with its dedication to maintaining a robust legal and compliance infrastructure, the Company also appointed a new chief legal officer in May 2024. The position will oversee all legal matters for the enterprise, ensuring Freedom's operations comply with all relevant laws and regulations. This role will be pivotal in supporting the Company's governance framework, providing expert legal advice, and driving initiatives that promote a culture of compliance and integrity across our organization.
Outlook
In fiscal 2025 we expect to focus on further digital integration, expanding our market presence in
We expect that our balance sheet will allow the Company to add complementary services through acquisitions and further increase our product offerings, leaving us optimally placed to expand our platform into additional markets as regulatory and market conditions dictate. In November 2023, consistent with our strategy to build a digital fintech ecosystem, our board of directors approved a plan to enter the telecommunications market in
As part of our investment in strategic expansion, we expect to open new representative offices in
About Freedom Holding Corp.
Freedom Holding Corp., a
Freedom Holding Corp. is headquartered in
Freedom Holding Corp.'s common shares are registered with the United States Securities and Exchange Commission and are traded under the symbol FRHC on the Nasdaq Capital Market, operated by Nasdaq, Inc.
To learn more about Freedom Holding Corp., visit www.freedomholdingcorp.com.
Cautionary Note Regarding Forward-Looking Statements
This release contains "forward-looking" statements, including with respect to our future results of operations and financial position, business strategy and plans and our objectives for future operations, as well as the capital investment required to be successful in any aspect of our strategic plans, and is subject to a number of factors, many of which are beyond our control. All forward-looking statements are subject to uncertainty and changes in circumstances. In some cases, forward-looking statements can be identified by terminology such as "expect," "new," "plan," "seek," and "will," or the negative of such terms or other comparable terminology used in connection with any discussion of future plans, actions, and events. Forward-looking statements are not guarantees of future results or performance and involve risks, assumptions, and uncertainties that could cause actual events or results to differ materially from the events or results described in, or anticipated by, the forward-looking statements. Factors that could materially affect such forward-looking statements include certain economic, business, and regulatory risks and factors identified in the Company's periodic and current reports filed with the
FREEDOM HOLDING CORP. CONSOLIDATED BALANCE SHEETS (All amounts in thousands of |
|||||||
|
March 31, 2024 |
|
March 31, 2023 |
||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Cash and cash equivalents (including |
$ |
545,084 |
|
|
$ |
581,417 |
|
Restricted cash (including $— |
|
462,637 |
|
|
|
445,528 |
|
Trading securities (including |
|
3,688,620 |
|
|
|
2,412,556 |
|
Available-for-sale securities, at fair value |
|
216,621 |
|
|
|
239,053 |
|
Margin lending, brokerage and other receivables, net (including |
|
1,660,275 |
|
|
|
376,329 |
|
Loans issued (including |
|
1,381,715 |
|
|
|
826,258 |
|
Fixed assets, net |
|
83,002 |
|
|
|
54,017 |
|
Intangible assets, net |
|
47,668 |
|
|
|
17,615 |
|
Goodwill |
|
52,648 |
|
|
|
14,192 |
|
Right-of-use asset |
|
36,324 |
|
|
|
30,345 |
|
Insurance contract assets |
|
24,922 |
|
|
|
13,785 |
|
Other assets, net (including |
|
102,414 |
|
|
|
73,463 |
|
TOTAL ASSETS |
$ |
8,301,930 |
|
|
$ |
5,084,558 |
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
||||
Securities repurchase agreement obligations |
$ |
2,756,596 |
|
|
$ |
1,517,416 |
|
Customer liabilities (including |
|
2,273,830 |
|
|
|
1,925,247 |
|
Margin lending and trade payables (including |
|
867,880 |
|
|
|
122,900 |
|
Liabilities from insurance activity (including |
|
297,180 |
|
|
|
182,502 |
|
Current income tax liability |
|
32,996 |
|
|
|
4,547 |
|
Debt securities issued |
|
267,251 |
|
|
|
60,025 |
|
Lease liability |
|
35,794 |
|
|
|
30,320 |
|
Liability arising from continuing involvement |
|
521,885 |
|
|
|
440,805 |
|
Other liabilities (including |
|
81,560 |
|
|
|
30,060 |
|
TOTAL LIABILITIES |
$ |
7,134,972 |
|
|
$ |
4,313,822 |
|
Commitments and Contingent Liabilities (Note 29) |
|
— |
|
|
|
— |
|
|
|
|
|
||||
SHAREHOLDERS’ EQUITY |
|
|
|
||||
Preferred stock - |
|
— |
|
|
|
— |
|
Common stock - |
|
60 |
|
|
|
59 |
|
Additional paid in capital |
|
183,788 |
|
|
|
164,162 |
|
Retained earnings |
|
998,740 |
|
|
|
647,064 |
|
Accumulated other comprehensive loss |
|
(18,938 |
) |
|
|
(34,000 |
) |
TOTAL FRHC SHAREHOLDERS’ EQUITY |
$ |
1,163,650 |
|
|
$ |
777,285 |
|
|
|
|
|
||||
Non-controlling interest |
|
3,308 |
|
|
|
(6,549 |
) |
TOTAL SHAREHOLDERS’ EQUITY |
$ |
1,166,958 |
|
|
$ |
770,736 |
|
|
|
|
|
||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
8,301,930 |
|
|
$ |
5,084,558 |
|
FREEDOM HOLDING CORP. CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME
(All amounts in thousands of |
|||||||||||
|
Years ended March 31, |
||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
(Recasted) |
||||||
Revenue: |
|
|
|
|
|
||||||
Fee and commission income (including |
$ |
440,333 |
|
|
$ |
327,215 |
|
|
$ |
335,211 |
|
Net gain on trading securities |
|
133,854 |
|
|
|
71,084 |
|
|
|
155,252 |
|
Interest income (including |
|
828,224 |
|
|
|
294,695 |
|
|
|
121,609 |
|
Insurance underwriting income |
|
264,218 |
|
|
|
115,371 |
|
|
|
72,981 |
|
Net gain on foreign exchange operations |
|
72,245 |
|
|
|
52,154 |
|
|
|
3,791 |
|
Net (loss)/gain on derivatives |
|
(103,794 |
) |
|
|
(64,826 |
) |
|
|
946 |
|
TOTAL REVENUE, NET |
|
1,635,080 |
|
|
|
795,693 |
|
|
|
689,790 |
|
|
|
|
|
|
|
||||||
Expense: |
|
|
|
|
|
||||||
Fee and commission expense (including |
|
154,351 |
|
|
|
65,660 |
|
|
|
85,909 |
|
Interest expense (including |
|
501,111 |
|
|
|
208,947 |
|
|
|
76,947 |
|
Insurance claims incurred, net of reinsurance |
|
139,561 |
|
|
|
77,329 |
|
|
|
54,447 |
|
Payroll and bonuses |
|
181,023 |
|
|
|
81,819 |
|
|
|
46,288 |
|
Professional services |
|
34,238 |
|
|
|
17,006 |
|
|
|
12,682 |
|
Stock compensation expense |
|
22,719 |
|
|
|
9,293 |
|
|
|
7,859 |
|
Advertising expense |
|
38,327 |
|
|
|
14,059 |
|
|
|
11,916 |
|
General and administrative expense (including |
|
120,888 |
|
|
|
59,971 |
|
|
|
23,533 |
|
Allowance for expected credit losses |
|
21,225 |
|
|
|
29,119 |
|
|
|
2,502 |
|
Other (income)/expense, net |
|
(13,734 |
) |
|
|
(3,448 |
) |
|
|
4,014 |
|
TOTAL EXPENSE |
|
1,199,709 |
|
|
|
559,755 |
|
|
|
326,097 |
|
|
|
|
|
|
|
||||||
INCOME BEFORE INCOME TAX |
|
435,371 |
|
|
|
235,938 |
|
|
|
363,693 |
|
|
|
|
|
|
|
||||||
Income tax expense |
|
(60,419 |
) |
|
|
(42,776 |
) |
|
|
(38,570 |
) |
|
|
|
|
|
|
||||||
INCOME FROM CONTINUING OPERATIONS |
|
374,952 |
|
|
|
193,162 |
|
|
|
325,123 |
|
|
|
|
|
|
|
||||||
Income/(loss) before income tax (expense)/benefit of discontinued operations |
|
— |
|
|
|
68,160 |
|
|
|
(117,199 |
) |
Reclassification of loss from cumulative translation adjustment of discontinued operations |
|
— |
|
|
|
(25,415 |
) |
|
|
— |
|
Loss from divestiture of discontinued operations |
|
— |
|
|
|
(26,118 |
) |
|
|
— |
|
Income tax benefit/(expense) of discontinued operations |
|
— |
|
|
|
(4,203 |
) |
|
|
13,004 |
|
|
|
|
|
|
|
||||||
Income/(loss) from discontinued operations |
|
— |
|
|
|
12,424 |
|
|
|
(104,195 |
) |
|
|
|
|
|
|
||||||
NET INCOME |
|
374,952 |
|
|
|
205,586 |
|
|
|
220,928 |
|
|
|
|
|
|
|
||||||
Less: Net (loss)/income attributable to non-controlling interest in subsidiary |
|
(588 |
) |
|
|
446 |
|
|
|
(6,566 |
) |
|
|
|
|
|
|
||||||
NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST |
$ |
375,540 |
|
|
$ |
205,140 |
|
|
$ |
227,494 |
|
|
|
|
|
|
|
||||||
OTHER COMPREHENSIVE INCOME |
|
|
|
|
|
||||||
Change in unrealized gain on investments available-for-sale, net of tax effect |
|
6,196 |
|
|
|
1,431 |
|
|
|
(4,292 |
) |
Reclassification adjustment for net realized (loss)/gain on available-for-sale investments disposed of in the period, net of tax effect |
|
(3,209 |
) |
|
|
(2,916 |
) |
|
|
2,222 |
|
Reclassification of loss from cumulative translation adjustment of discontinued operations |
|
— |
|
|
|
25,415 |
|
|
|
— |
|
Foreign currency translation adjustments |
|
12,075 |
|
|
|
5,195 |
|
|
|
(20,622 |
) |
|
|
|
|
|
|
||||||
OTHER COMPREHENSIVE INCOME/(LOSS) |
|
15,062 |
|
|
|
29,125 |
|
|
|
(22,692 |
) |
|
|
|
|
|
|
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS |
$ |
390,014 |
|
|
$ |
234,711 |
|
$ |
198,236 |
|
|
|
|
|
|
|
|||||
Less: Comprehensive (loss)/income attributable to non-controlling interest in subsidiary |
|
(588 |
) |
|
|
446 |
|
|
(6,566 |
) |
|
|
|
|
|
|
|||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST |
$ |
390,602 |
|
|
$ |
234,265 |
|
$ |
204,802 |
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
EARNINGS PER COMMON SHARE (In |
|
|
|
|
|
|||||
Earnings from continuing operations per common share - basic |
|
6.37 |
|
|
|
3.29 |
|
|
5.59 |
|
Earnings from continuing operations per common share - diluted |
|
6.33 |
|
|
|
3.24 |
|
|
5.59 |
|
|
|
|
|
|
|
|||||
Earnings/(loss) from discontinued operations per common share - basic |
|
— |
|
|
|
0.21 |
|
|
(1.75 |
) |
Earnings/(loss) from discontinued operations per common share - diluted |
|
— |
|
|
|
0.21 |
|
|
(1.75 |
) |
|
|
|
|
|
|
|||||
Earnings per common share - basic |
|
6.37 |
|
|
|
3.50 |
|
|
3.84 |
|
Earnings per common share - diluted |
|
6.33 |
|
|
|
3.45 |
|
|
3.84 |
|
|
|
|
|
|
|
|||||
Weighted average number of shares (basic) |
|
58,958,363 |
|
|
|
58,629,580 |
|
|
59,378,207 |
|
Weighted average number of shares (diluted) |
|
59,362,982 |
|
|
|
59,504,811 |
|
|
59,378,207 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240613257789/en/
Ramina Fakhrutdinova (KZ)
Public Relations
Freedom Finance JSC
+7 777 377 8868
pr@ffin.kz
Al Palombo (US)
Global Communications Chief
Freedom US Markets
+1 212-980-4400, Ext. 1013
apalombo@freedomusmkts.com
Source: Freedom Holding Corp.
FAQ
What were Freedom Holding Corp.'s revenues for fiscal 2024?
How did Freedom Holding Corp.'s net income perform in fiscal 2024?
What was Freedom Holding Corp.'s EPS for fiscal 2024?
What were the total assets of Freedom Holding Corp. in fiscal 2024?
How much did Freedom Holding Corp.'s interest income increase in fiscal 2024?
How many acquisitions did Freedom Holding Corp. complete in fiscal 2024?
What were the key growth drivers for Freedom Holding Corp. in fiscal 2024?