Freedom Holding Corp (FRHC) Q2 2025 earnings summary

Executive summary

• Total revenue for Q2 FY2025 was $580.9M, up 33% year-over-year, driven by insurance underwriting, trading gains, and brokerage fees.

• Net income was $114.7M, nearly flat compared to $115.8M in Q2 FY2024, with segment contributions from Brokerage ($85.6M), Banking ($45.7M), Insurance ($14.8M), and a $31.6M loss in Other.

• Total assets reached $8.8B as of September 30, 2024, up from $8.3B at March 31, 2024.

• Retail brokerage customers grew to 555,000 and banking customers to 1,202,000 as of September 30, 2024.

Financial highlights

• Insurance underwriting income surged 177% year-over-year to $160.3M, reflecting expansion in pension annuity and accident insurance.

• Net gain on trading securities rose 35% to $68.3M, mainly from Kazakhstan sovereign bonds.

• Fee and commission income increased 8% to $121.1M, with brokerage services up 27% but offset by declines in payment processing and banking services.

• Interest income decreased 1% to $210.3M, as lower trading securities income offset growth in loans to customers.

• Total expenses rose 50% to $452.4M, driven by higher agency fees, insurance claims, payroll, and advertising.

• Earnings per share (basic) for the quarter were $1.93, down from $1.97 a year ago.

Outlook and guidance

• Management continues to prioritize digital fintech ecosystem expansion, integrating brokerage, banking, insurance, and new telecom/media businesses.

• No cash dividends are anticipated in the foreseeable future as earnings are retained for growth and capital needs.

• S&P affirmed the Group's long-term credit rating at B-, with a stable outlook and positive outlooks for core subsidiaries.