statements are made only as of the date of this release and the Company assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances. Readers should not place undue reliance on these forward-looking statements.
Website Disclosure
Freedom Holding Corp. intends to use its website, https://ir.freedomholdingcorp.com, as a means for disclosing material non-public information and for complying with U.S. Securities and Exchange Commission Regulation FD and other disclosure obligations.
Financial Tables to Follow
FREEDOM HOLDING CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(All amounts in thousands of United States dollars, unless otherwise
stated)
September 30, 2024 March 31, 2024
-------------------- ------------------
ASSETS
Cash and cash equivalents
(including $1,915 and $203 from
related parties) $ 569,179 $ 545,084
Restricted cash (including
$6,669 and $-- with related
parties) 895,651 462,637
Trading securities (including
$1,231 and $1,326 with related
parties) 3,601,118 3,688,620
Available-for-sale securities,
at fair value 284,580 216,621
Margin lending, brokerage and
other receivables, net
(including $162,066 and $22,039
due from related parties) 1,623,962 1,660,275
Loans issued (including $141,290
and $147,440 to related
parties) 1,368,656 1,381,715
Fixed assets, net 142,446 83,002
Intangible assets, net 46,112 47,668
Goodwill 53,166 52,648
Right-of-use asset 37,028 36,324
Insurance contract assets 24,982 24,922
Other assets, net (including
$14,914 and $5,257 with related
parties) 169,375 102,414
--------------- -----------
TOTAL ASSETS $ 8,816,255 $ 8,301,930
=============== ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Securities repurchase agreement
obligations $ 2,584,131 $ 2,756,596
Customer liabilities (including
$191,607 and $44,127 to related
parties) 3,329,133 2,273,830
Margin lending and trade
payables 303,411 867,880
Liabilities from insurance
activity 364,156 297,180
Current income tax liability 27,844 32,996
Debt securities issued 267,341 267,251
Lease liability 37,664 35,794
Liability arising from
continuing involvement 506,091 521,885
Other liabilities (including
$729 and $9,854 to related
parties) 133,248 81,560
--------------- -----------
TOTAL LIABILITIES $ 7,553,019 $ 7,134,972
=============== ===========
Commitments and Contingent
Liabilities (Note 23) -- --
SHAREHOLDERS' EQUITY
Preferred stock - $0.001 par
value; 20,000,000 shares
authorized, no shares issued or
outstanding -- --
Common stock - $0.001 par value;
500,000,000 shares authorized;
60,557,801 shares issued and
outstanding as of September 30,
2024, and 60,321,813 shares
issued and outstanding as of
March 31, 2024, respectively 61 60
Additional paid in capital 209,249 183,788
Retained earnings 1,147,798 998,740
Accumulated other comprehensive
loss (96,869) (18,938)
--------------- -----------
TOTAL FRHC SHAREHOLDERS' EQUITY $ 1,260,239 $ 1,163,650
--------------- -----------
Non-controlling interest 2,997 3,308
--------------- -----------
TOTAL SHAREHOLDERS' EQUITY $ 1,263,236 $ 1,166,958
--------------- -----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 8,816,255 $ 8,301,930
=============== ===========
FREEDOM HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER
COMPREHENSIVE INCOME (Unaudited)
(All amounts in thousands of United States dollars, unless otherwise stated)
Three Months Ended Six Months Ended September
September 30, 30,
-------------------------- ----------------------------
2024 2023 2024 2023
---------- ---------- ---------- ----------
Revenue:
Fee and commission
income (including for
the three months ended
$837 and $20,022, for
the six months ended
$1,703 and $35,917 from
related parties) $ 121,051 $ 111,703 $ 236,540 $ 210,406
Net gain on trading
securities 68,317 50,771 16,215 82,587
Interest income
(including for the
three months ended $375
and $9,731, for the six
months ended $644 and
$15,084 from related
parties) 210,324 213,063 436,328 362,412
Insurance underwriting
income 160,344 57,976 289,752 102,865
Net gain/(loss) on
foreign exchange
operations 6,479 (3,696) 14,568 15,605
Net gain/(loss) on
derivative 6,308 1,378 18,802 (29,227)
Other income 8,077 4,386 19,410 7,143
---------- ---------- ---------- ----------
TOTAL REVENUE, NET $ 580,900 $ 435,581 $ 1,031,615 $ 751,791
---------- ---------- ---------- ----------
Expense:
Fee and commission
expense $ 90,837 $ 31,614 $ 170,984 $ 60,298
Interest expense 124,665 139,381 270,383 234,427
Insurance claims
incurred, net of
reinsurance 66,684 33,988 113,993 55,502
Payroll and bonuses 66,210 39,998 123,734 71,628
Professional services 8,245 11,951 15,513 18,576
Stock compensation
expense 12,056 1,031 22,671 2,264
Advertising expense 20,049 8,639 37,250 16,739
General and
administrative expense
(including for the
three months ended
$6,247 and $5,229, for
the six months ended
$8,971 and $7,561 from
related parties) 53,240 29,630 98,345 54,105
Provision for allowance
for expected credit
losses 10,427 4,662 8,657 18,988
---------- ---------- ---------- ----------
TOTAL EXPENSE $ 452,413 $ 300,894 $ 861,530 $ 532,527
---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAX 128,487 134,687 170,085 219,264
Income tax expense (13,999) (19,208) (21,338) (35,864)
NET INCOME $ 114,488 $ 115,479 $ 148,747 $ 183,400
========== ========== ========== ==========
Less: Net loss
attributable to
non-controlling
interest in subsidiary (170) (368) (311) (549)
---------- ---------- ---------- ----------
NET INCOME ATTRIBUTABLE
TO COMMON $ 114,658 $ 115,847 $ 149,058 $ 183,949
========== ========== ========== ==========
OTHER COMPREHENSIVE
INCOME
Change in unrealized
gain on investments
available-for-sale, net
of tax effect 4,306 2,168 7,680 4,407
Reclassification
adjustment for net
realized (gain)/loss on
available-for-sale
investments disposed of
in the period, net of
tax effect 185 (306) 167 (1,264)
Foreign currency
translation
adjustments (19,967) (29,933) (85,778) (31,693)
OTHER COMPREHENSIVE LOSS (15,476) (28,071) (77,931) (28,550)
COMPREHENSIVE INCOME
BEFORE NON-CONTROLLING
INTERESTS $ 99,012 $ 87,408 $ 70,816 $ 154,850
---------- ---------- ---------- ----------
Less: Comprehensive loss
attributable to
non-controlling
interest in subsidiary (170) (368) (311) (549)
COMPREHENSIVE
INCOME/(LOSS)
ATTRIBUTABLE TO COMMON
SHAREHOLDERS $ 99,182 $ 87,776 $ 71,127 $ 155,399
---------- ---------- ---------- ----------
(MORE TO FOLLOW) Dow Jones Newswires
November 08, 2024 07:30 ET (12:30 GMT)
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