Freedom Holding Corp. Reports $655 Million Revenue in Q3 FY2025, Up 57%, DKnews.kz reports.
Freedom Holding Corp. has announced its financial results for the third quarter of the 2025 fiscal year, ending December 31, 2024. The company reported $655 million in revenue, marking a $236.6 million (+57%) increase compared to the same period last year. This strong performance was driven by growth in insurance underwriting revenue, a significant turnaround in trading income, and increased commissions from brokerage services.
Key Drivers of Revenue Growth
Freedom Holding Corp. saw exceptional growth in its insurance segment, which played a major role in boosting total revenue. Insurance underwriting income more than doubled, rising from $79 million to $177.5 million (+125%). This increase was primarily attributed to a surge in pension annuities and accident insurance policies.
The company also recorded a substantial gain from trading activities, particularly from Kazakhstan’s sovereign bond sales. Net trading income rebounded from a $5.1 million loss to a $89.6 million profit (+1,860%). In addition, $74.6 million in unrealized net gains were recognized due to an appreciation in the value of securities holdings.
Net income from derivative financial instruments also improved significantly. While the company reported a $42.6 million net loss in this category last year, it posted $11.9 million in net profit (+128%) this quarter. This turnaround was largely driven by Freedom Bank’s strong performance, which went from a $41.8 million net loss last year to a $10.6 million net profit. The positive shift was mainly due to favorable revaluation of currency swaps.
Commission income also saw solid growth, increasing by $23.2 million (+19%), from $120.2 million to $143.4 million. This was primarily the result of a growing number of retail brokerage clients, reinforcing Freedom Holding’s expanding footprint in the retail investment market.
Increase in Expenses: Breakdown of Cost Growth
Despite strong revenue growth, total expenses rose by $249.9 million (+81%). Several factors contributed to this increase:
- Insurance claims paid (net of reinsurance) rose by $63.5 million (+155%), mainly due to the expansion of insurance operations.
- Commission expenses grew by $51.1 million (+119%), primarily due to higher agent fees in the life insurance segment.
- General and administrative expenses, which include charitable contributions and sponsorships, increased by $41.3 million (+129%).
- Provisions for expected credit losses surged by $34.1 million (+968%), driven by higher reserves for unsecured loans and acquired retail credit receivables. This increase was due to changes in forecast assumptions following currency depreciation.
- Salaries and bonuses rose by $32.3 million (+72%), reflecting a growing workforce across the holding’s subsidiaries.
Net Profit and Impact on Shareholders
Despite rising expenses, Freedom Holding Corp. posted a net profit of $78.1 million, demonstrating the company’s resilience and ability to adapt to changing market conditions.
Earnings per share (EPS) stood at:
- $1.32 based on basic weighted-average shares outstanding (59.4 million shares).
- $1.29 based on diluted weighted-average shares outstanding (60.5 million shares).
Asset and Liability Growth
Freedom Holding Corp.’s total assets increased by 10%, from $8.302 billion to $9.135 billion.
At the same time, total liabilities grew by 10.3%, from $7.135 billion to $7.872 billion.
These figures highlight the company’s continued expansion and financial stability, reinforcing its position in the market.
Expanding Customer Base
Freedom Holding Corp. continued to strengthen its brokerage operations, adding 63,000 new client accounts in the quarter. As of December 31, 2024, the company had 618,000 brokerage accounts, reflecting strong demand for its investment services.
Freedom Holding Corp. delivered an impressive performance in Q3 FY2025, driven by strong revenue growth (+57%), insurance and brokerage expansion, and a remarkable recovery in trading income.
Looking ahead, the company is expected to further develop its key business segments, including insurance, investment services, and banking. These results demonstrate Freedom Holding Corp.'s ability to adapt to market conditions and strengthen its position as a leading financial institution.
