Freedom Holding Corp. announces financial results for second quarter of 2023 fiscal year

17.11.22 14:13
/KASE, November 17, 2022/ – Freedom Holding Corp. (US), whose shares are officially listed on Kazakhstan Stock Exchange (KASE), has provided KASE with the following press release dated November 16, 2022: quote Freedom Holding Corp. reports financial results for the second quarter of FY2023. For the three months ended September 30, 2022 and 2021, the holding's revenue was $180 mln and $317 mln, respectively. The change in revenue by $137 mln, or 43 %, was mainly due to: - a 95 % decrease in net income from trading securities ($172 mln) – from $182 mln to $9 mln due to the fact that in the second quarter of FY2022 there was a one-off high base effect on income from securities trading, which was caused by income, which was received in connection with the revaluation and sale of a large financial investment in SPB Exchange PJSC; - growth of interest income by 101 %, or $25 mln, – from $24 mln to $49 mln. This dynamics was caused by an increase in the volume of the trading portfolio and the expansion of the share of bonds in it; - income from insurance activities from $16 mln to $26 mln due to an increase in the number of insurance operations. In Q2 FY2023, the holding increased expenses by 55 %, or $42 mln. This is due to the following factors: - an increase in interest expenses by $24 mln (144 %) due to an increase in short-term financing costs of $20 mln. Another reason for the increase in expenses was an increase in interest expenses on customer deposits by $4 mln, or 113 %. The latter is due to the expansion of the client base and the volume of operations of Freedom Bank in the reporting quarter, compared with the result of the same period in FY2022; - an increase in operating expenses of $16 mln associated with an increase in expenses of $8 mln on salaries and bonuses. $3 mln were used for charity and sponsorship in connection with the provision of humanitarian assistance to a Ukrainian charitable foundation due to geopolitical and economic conditions. $1.9 mln were spent on professional services. Software support expenses totaled $992 th., while other operating expenses increased by $1.9 mln. unquote The complete press release is available on KASE website – https://kase.kz/files/emitters/US_FRHC/us_frhc_relizs_161122.pdf [2022-11-17]