Cover
Cover - shares | 3 Months Ended | |
Jun. 30, 2024 | Aug. 06, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-33034 | |
Entity Registrant Name | FREEDOM HOLDING CORP. | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 30-0233726 | |
Entity Address, Address Line One | “Esentai Tower” BC, Floor 7 | |
Entity Address, Address Line Two | 77/7 Al Farabi Ave | |
Entity Address, City or Town | Almaty | |
Entity Address, Country | KZ | |
Entity Address, Postal Zip Code | 50040 | |
City Area Code | +7 727 | |
Local Phone Number | 311 10 64 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | FRHC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 60,745,658 | |
Entity Central Index Key | 0000924805 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2025 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
ASSETS | ||
Cash and cash equivalents (including $257 and $203 from related parties) | $ 718,678 | $ 545,084 |
Restricted cash (including $1,121 and $— with related parties) | 1,179,510 | 462,637 |
Trading securities (including $1,256 and $1,326 with related parties) | 3,393,936 | 3,688,620 |
Available-for-sale securities, at fair value | 262,860 | 216,621 |
Margin lending, brokerage and other receivables, net (including $37,836 and $22,039 due from related parties) | 1,217,885 | 1,660,275 |
Loans issued (including $136,558 and $147,440 to related parties) | 1,314,552 | 1,381,715 |
Fixed assets, net | 100,474 | 83,002 |
Intangible assets, net | 45,535 | 47,668 |
Goodwill | 50,591 | 52,648 |
Right-of-use asset | 35,006 | 36,324 |
Insurance contract assets | 24,949 | 24,922 |
Other assets, net (including $23,057 and $5,257 with related parties) | 139,584 | 102,414 |
TOTAL ASSETS | 8,483,560 | 8,301,930 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Securities repurchase agreement obligations | 2,558,794 | 2,756,596 |
Customer liabilities (including $84,970 and $44,127 to related parties) | 2,699,912 | 2,273,830 |
Margin lending and trade payables (including $255 and $507 to related parties) | 836,309 | 867,880 |
Liabilities from insurance activity (including $57 and $470 to related parties) | 320,394 | 297,180 |
Current income tax liability | 40,485 | 32,996 |
Debt securities issued | 266,398 | 267,251 |
Lease liability | 35,390 | 35,794 |
Liability arising from continuing involvement | 505,659 | 521,885 |
Other liabilities (including $8,349 and $9,854 to related parties) | 68,040 | 81,560 |
TOTAL LIABILITIES | 7,331,381 | 7,134,972 |
Commitments and Contingent Liabilities (Note 22) | 0 | 0 |
SHAREHOLDERS’ EQUITY | ||
Preferred stock - $0.001 par value; 20,000,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock - $0.001 par value; 500,000,000 shares authorized; 60,721,010 shares issued and outstanding as of June 30, 2024, and 60,321,813 shares issued and outstanding as of March 31, 2024, respectively | 60 | 60 |
Additional paid in capital | 197,205 | 183,788 |
Retained earnings | 1,033,140 | 998,740 |
Accumulated other comprehensive loss | (81,393) | (18,938) |
TOTAL FRHC SHAREHOLDERS’ EQUITY | 1,149,012 | 1,163,650 |
Non-controlling interest | 3,167 | 3,308 |
TOTAL SHAREHOLDERS’ EQUITY | 1,152,179 | 1,166,958 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 8,483,560 | $ 8,301,930 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Cash and cash equivalents | $ 718,678 | $ 545,084 |
Restricted cash | 1,179,510 | 462,637 |
Trading securities | 3,393,936 | 3,688,620 |
Margin lending, brokerage and other receivables, net | 1,217,885 | 1,660,275 |
Loans issued | 1,314,552 | 1,381,715 |
Other assets, net | 139,584 | 102,414 |
Customer liabilities | 2,699,912 | 2,273,830 |
Margin lending and trade payables | 836,309 | 867,880 |
Liabilities from insurance activity | 320,394 | 297,180 |
Other liabilities | $ 68,040 | $ 81,560 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 60,721,010 | 60,321,813 |
Common stock, outstanding (in shares) | 60,721,010 | 60,321,813 |
Related party | ||
Cash and cash equivalents | $ 257 | $ 203 |
Restricted cash | 1,121 | 0 |
Trading securities | 1,256 | 1,326 |
Margin lending, brokerage and other receivables, net | 37,836 | 22,039 |
Loans issued | 136,558 | 147,440 |
Other assets, net | 23,057 | 5,257 |
Customer liabilities | 84,970 | 44,127 |
Margin lending and trade payables | 255 | 507 |
Liabilities from insurance activity | 57 | 470 |
Other liabilities | $ 8,349 | $ 9,854 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue: | ||
Fee and commission income (including $866 and $15,896 from related parties) | $ 115,489 | $ 98,703 |
Net (loss)/gain on trading securities | (52,102) | 31,816 |
Interest income (including $270 and $5,352 from related parties) | 226,004 | 149,349 |
Insurance underwriting income | 129,408 | 44,889 |
Net gain on foreign exchange operations | 8,089 | 19,301 |
Net gain/(loss) on derivative | 12,494 | (30,605) |
Other income | 11,333 | 2,757 |
TOTAL REVENUE, NET | 450,715 | 316,210 |
Expense: | ||
Fee and commission expense (including $157 and $99 from related parties) | 80,147 | 28,684 |
Interest expense (including $381 and $168 from related parties) | 145,718 | 95,046 |
Insurance claims incurred, net of reinsurance | 47,309 | 21,514 |
Payroll and bonuses | 57,524 | 31,630 |
Professional services | 7,268 | 6,625 |
Stock compensation expense | 10,615 | 1,233 |
Advertising expense | 17,201 | 8,100 |
General and administrative expense (including $2,725 and $478 from related parties) | 45,105 | 24,475 |
(Recovery of)/provision for allowance for expected credit losses | (1,770) | 14,326 |
TOTAL EXPENSE | 409,117 | 231,633 |
INCOME BEFORE INCOME TAX | 41,598 | 84,577 |
Income tax expense | (7,339) | (16,656) |
NET INCOME | 34,259 | 67,921 |
Less: Net loss attributable to non-controlling interest in subsidiary | (141) | (181) |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 34,400 | 68,102 |
OTHER COMPREHENSIVE INCOME | ||
Change in unrealized gain on investments available-for-sale, net of tax effect | 3,374 | 2,239 |
Reclassification adjustment for net realized loss on available-for-sale investments disposed of in the period, net of tax effect | (18) | (958) |
Foreign currency translation adjustments | (65,811) | (1,760) |
OTHER COMPREHENSIVE LOSS | (62,455) | (479) |
COMPREHENSIVE (LOSS)/INCOME BEFORE NON-CONTROLLING INTERESTS | (28,196) | 67,442 |
Less: Comprehensive loss attributable to non-controlling interest in subsidiary | (141) | (181) |
COMPREHENSIVE (LOSS)/INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ (28,055) | $ 67,623 |
EARNINGS PER COMMON SHARE (In U.S. dollars): | ||
Earnings per common share-basic (in USD per share) | $ 0.58 | $ 1.16 |
Earnings per common share- diluted (in USD per share) | $ 0.57 | $ 1.15 |
Weighted average number of shares, basic (in shares) | 59,258,085,000 | 58,512,215,000 |
Weighted average number of shares, diluted (in shares) | 60,255,593,000 | 59,293,691,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME (Unaudited) (Parenthetical)) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Fee and commission income | $ 115,489 | $ 98,703 |
Interest income | 226,004 | 149,349 |
Fee and commission expense | 80,147 | 28,684 |
Interest expense | 145,718 | 95,046 |
General and administrative expenses | 45,105 | 24,475 |
Related party | ||
Fee and commission income | 866 | 15,896 |
Interest income | 270 | 5,352 |
Fee and commission expense | 157 | 99 |
Interest expense | 381 | 168 |
General and administrative expenses | $ 2,725 | $ 478 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Flows From Operating Activities | ||
Net income | $ 34,259 | $ 67,921 |
Adjustments to reconcile net income used in operating activities: | ||
Depreciation and amortization | 4,154 | 2,607 |
Amortization of deferred acquisition costs | 48,115 | 8,724 |
Noncash lease expense | 2,868 | 1,927 |
Change in deferred taxes | (796) | 4,778 |
Stock compensation expense | 10,615 | 1,233 |
Unrealized loss/(gain) on trading securities | 64,943 | (20,951) |
Unrealized (gain)/loss on derivatives | (8,150) | 3,112 |
Net realized gain on available-for-sale securities | (18) | (958) |
Net change in accrued interest | 69,821 | (16,304) |
Revaluation of purchase price of previously held interest in Arbuz | 0 | (1,040) |
Gain from sale of ITS tech | (4,201) | 0 |
Change in insurance reserves | 40,958 | 15,002 |
Change in unused vacation reserves | 1,009 | 1,186 |
(Recovery of)/provision for allowance for expected credit losses | (1,770) | 14,326 |
Changes in operating assets and liabilities: | ||
Trading securities | (24,454) | (933,290) |
Margin lending, brokerage and other receivables (including $(15,797) and $(89,703) changes from related parties) | 399,425 | (147,366) |
Insurance contract assets | 565 | 2,454 |
Other assets | (70,073) | (18,236) |
Brokerage customer liabilities (including $(40,843) and $(50,531) changes from related parties) | 260,972 | 29,037 |
Current income tax liability | 7,492 | 11,202 |
Margin lending and trade payables (including $252 and $(3,239) changes from related parties) | 26,888 | 55,045 |
Lease liabilities | (1,539) | (1,631) |
Liabilities from insurance activity | (2,076) | 206 |
Other liabilities | (4,941) | 6,882 |
Net cash flows from/(used in) operating activities | 854,066 | (914,134) |
Cash Flows Used In Investing Activities | ||
Purchase of fixed assets | (24,178) | (10,682) |
Net change in loans issued to customers | (2,591) | (263,370) |
Purchase of available-for-sale securities, at fair value | (103,679) | (82,979) |
Proceeds from sale of available-for-sale securities, at fair value | 48,033 | 104,698 |
Consideration paid for Arbuz | 0 | (13,281) |
Consideration paid for Internet Tourism | 0 | (31) |
Consideration paid for Aviata | 0 | (690) |
Consideration paid for Ticketon | 0 | (3,003) |
Cash, cash equivalents and restricted cash disposed as a result of deconsolidation of Freedom UA | 0 | (1,987) |
Cash, cash equivalents and restricted cash received from acquisitions | 0 | 1,807 |
Capital contribution to investment in associate | (1,240) | 0 |
Cash, cash equivalents disposed from sale of ITS Tech | (542) | 0 |
Prepayment on acquisitions | (10,488) | 0 |
Net cash flows used in investing activities | (94,685) | (269,518) |
Cash Flows From Financing Activities | ||
(Reimbursement)/proceeds from securities repurchase agreement obligations | (54,912) | 1,059,944 |
Proceeds from issuance of debt securities | 0 | 5,784 |
Repurchase of debt securities | (29) | (1,702) |
Repurchase of mortgage loans under the State Program | (13,001) | (9,071) |
Funds received under state program for financing of mortgage loans | 20,453 | 24,889 |
Net change in bank customer deposits | 293,411 | 181,159 |
Purchase of non-controlling interest in Arbuz | 0 | (3,228) |
(Repayment of)/proceeds from loans received | (388) | 758 |
Net cash flows from financing activities | 245,534 | 1,258,533 |
Effect of changes in foreign exchange rates on cash and cash equivalents | (114,815) | (2,575) |
Effect of expected credit losses on cash and cash equivalents and restricted cash | 367 | 0 |
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 890,467 | 72,306 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | 1,007,721 | 1,026,945 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | 1,898,188 | 1,099,251 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 142,595 | 113,120 |
Income tax paid | 819 | 224 |
Supplemental non-cash disclosures: | ||
Operating lease right-of-use assets obtained/disposed of in exchange for operating lease obligations during the period, net | 1,855 | 4,677 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | 718,678 | 597,364 |
Restricted cash | 1,179,510 | 501,887 |
Total cash, cash equivalents and restricted cash shown as in the statement of cash flows | $ 1,898,188 | $ 1,099,251 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - Parenthetical - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Cash Flows [Abstract] | ||
Margin lending, brokerage and other receivables | $ (15,797) | $ (89,703) |
Brokerage customer liabilities | (40,843) | (50,531) |
Margin lending and trade payables, related parties | $ 252 | $ (3,239) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Arbuz Group LLP ("Arbuz") | Total equity attributable to the shareholders' | Total equity attributable to the shareholders' Cumulative Effect, Period of Adoption, Adjustment | Total equity attributable to the shareholders' Arbuz Group LLP ("Arbuz") | Common Stock | Additional paid in capital | Retained earnings | Retained earnings Cumulative Effect, Period of Adoption, Adjustment | Retained earnings Arbuz Group LLP ("Arbuz") | Accumulated other comprehensive loss | Non- controlling interest | Non- controlling interest Arbuz Group LLP ("Arbuz") |
Beginning balance (in shares) at Mar. 31, 2023 | 59,659,191,000 | |||||||||||||
Equity, beginning of period at Mar. 31, 2023 | $ 770,736 | $ (22,772) | $ 777,285 | $ (22,772) | $ 59 | $ 164,162 | $ 647,064 | $ (22,772) | $ (34,000) | $ (6,549) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Stock based compensation | 1,233 | 1,233 | 1,233 | |||||||||||
Disposal of FF Ukraine | 0 | (6,549) | (6,549) | 6,549 | ||||||||||
Purchase of Arbuz shares | $ 9,097 | $ 5,457 | $ 5,457 | $ 3,640 | ||||||||||
Foreign currency translation adjustments, net of tax effect | (1,760) | (1,760) | (1,760) | |||||||||||
Other comprehensive income | 1,281 | 1,281 | 1,281 | |||||||||||
Net income/(loss) | 67,921 | 68,102 | 68,102 | (181) | ||||||||||
Ending balance (in shares) at Jun. 30, 2023 | 59,659,191,000 | |||||||||||||
Equity, end of period at Jun. 30, 2023 | $ 825,736 | 822,277 | $ 59 | 165,395 | 691,302 | (34,479) | 3,459 | |||||||
Beginning balance (in shares) at Mar. 31, 2024 | 60,321,813 | 60,321,813,000 | ||||||||||||
Equity, beginning of period at Mar. 31, 2024 | $ 1,166,958 | 1,163,650 | $ 60 | 183,788 | 998,740 | (18,938) | 3,308 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Delivered stock awards from previous year | 3,092 | 3,092 | 3,092 | |||||||||||
Stock based compensation | 10,325 | 10,325 | 10,325 | |||||||||||
Foreign currency translation adjustments, net of tax effect | (65,811) | (65,811) | (65,811) | |||||||||||
Other comprehensive income | 3,356 | 3,356 | 3,356 | |||||||||||
Net income/(loss) | $ 34,259 | 34,400 | 34,400 | (141) | ||||||||||
Ending balance (in shares) at Jun. 30, 2024 | 60,721,010 | 60,321,813,000 | ||||||||||||
Equity, end of period at Jun. 30, 2024 | $ 1,152,179 | $ 1,149,012 | $ 60 | $ 197,205 | $ 1,033,140 | $ (81,393) | $ 3,167 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS Overview Freedom Holding Corp. (the "Company" or "FRHC" and, together with its subsidiaries, the "Group") is a corporation organized in the United States under the laws of the State of Nevada that through its operating subsidiaries provides securities brokerage, securities dealing for customers and for our own account, market making activities, investment research, investment counseling, investment banking services, retail and commercial banking, insurance products, payment services, and information processing services. The Company also owns several ancillary businesses which complement its core financial services businesses, including telecommunications and media businesses in Kazakhstan that are in a developmental stage. The Company is the holding company of subsidiaries incorporated in Kazakhstan, Cyprus, the United States, the United Kingdom, Armenia, the United Arab Emirates, Uzbekistan, Kyrgyzstan, Tajikistan, Azerbaijan, and Turkey, and also has a presence in Austria, Belgium, Bulgaria, France, Germany, Greece, Italy, Lithuania, The Netherlands, Poland and Spain. The Company's subsidiaries in the United States include a broker-dealer that is registered with the United States Securities and Exchange Commission ("SEC") and the Financial Industry Regulatory Authority ("FINRA"). The Company's common stock trades on the Nasdaq Capital Market, the Kazakhstan Stock Exchange ("KASE"), and the Astana International Exchange ("AIX"). As of June 30, 2024, the Company owned, directly or indirectly, the following companies: Name of subsidiary Jurisdiction of Incorporation Number of subsidiaries Business Area Brokerage Segment Freedom Finance JSC ("Freedom KZ") Kazakhstan 3 Securities broker-dealer Freedom Finance Global PLC ("Freedom Global") Kazakhstan — Securities broker-dealer Freedom Finance Europe Limited ("Freedom EU") Cyprus 2 Securities broker-dealer Freedom Finance Armenia LLC ("Freedom AR") Armenia — Securities broker-dealer Prime Executions, Inc. ("PrimeEx") USA — Securities broker-dealer Foreign Enterprise LLC Freedom Finance Uzbekistan — Securities broker-dealer Banking Segment Freedom Bank Kazakhstan JSC ("Freedom Bank KZ") Kazakhstan 1 Commercial bank Insurance Segment Freedom Finance Life JSC ("Freedom Life") Kazakhstan — Life/health insurance Freedom Finance Insurance JSC ("Freedom Insurance") Kazakhstan — General insurance Other Segment Ticketon Events LLP ("Ticketon") Kazakhstan 3 Online ticket sales Freedom Finance Special Purpose Company LTD ("Freedom SPC") Kazakhstan — Issuance of debt securities Freedom Finance Commercial LLP Kazakhstan — Sales consulting Freedom Technologies LLP ("Paybox") Kazakhstan 5 Payment services Aviata LLP ("Aviata") Kazakhstan — Online travel ticket aggregator Internet-Tourism LLP ("Internet Tourism") Kazakhstan — Online travel ticket aggregator Arbuz Group LLP ("Arbuz") Kazakhstan 3 Online retail trade and e-commerce Comrun LLP ("ReKassa") Kazakhstan — Mobile and web application Freedom Telecom Holding Limited ("Freedom Telecom") Kazakhstan 3 Telecommunications Freedom Kazakhstan PC Ltd Kazakhstan 8 Holding company Freedom Advertising Ltd Kazakhstan — Advertising Freedom Shapagat Corporate Fund Kazakhstan — Non-profit FRHC Fractional SPC LTD Kazakhstan — Issuance of debt securities Freedom Holding Operations LLP Kazakhstan — Hiring and recruitment Freedom Horizons LLP Kazakhstan — Business consulting and services Freedom Finance Azerbaijan LLC Azerbaijan — Financial educational center Freedom Finance FZE. UAE — Consulting Freedom Management Ltd. UAE — Consulting Freedom Finance Turkey LLC Turkey — Financial consulting Freedom Finance Technologies Ltd Cyprus — IT development Freedom Prime UK Limited ("Prime UK") UK — Management consulting Freedom Structured Products PLC Cyprus — Financial services FFIN Securities, Inc. USA — Dormant Freedom U.S. Market LLC USA 1 Management company LD Micro ("LD Micro") USA — Event platform Through its subsidiaries, the Company is a professional participant, with a license to provide one or more types of services, on a number of stock exchanges, including the Kazakhstan Stock Exchange (KASE), the Astana International Exchange (AIX), the Republican Stock Exchange of Tashkent (UZSE) and the Uzbek Republican Currency Exchange (UZCE) and is a member of the New York Stock Exchange (NYSE) and the Nasdaq Stock Exchange (Nasdaq). The Company also owns a 24.3% interest in the Ukrainian Exchange (UX). Freedom EU provides the Company's clients with operational support and access to investment opportunities in the United States and European securities markets. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting principles The Group's accounting policies and accompanying consolidated financial statements conform to accounting principles generally accepted in the United States of America (U.S. GAAP). Basis of presentation and principles of consolidation The consolidated financial statements present the consolidated accounts of FRHC and its consolidated subsidiaries. All inter-company balances and transactions have been eliminated from the consolidated financial statements. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements, and related notes thereto, of the Group’s 2024 Annual Report on Form 10-K. Note 2 to the consolidated financial statements in Group’s 2024 Annual Report on Form 10-K contains a summary of all of Group’s significant accounting policies, except following amendments: Non-Consolidation of Freedom Securities Trading Inc. Freedom Securities Trading Inc. (formerly known as FFIN Brokerage Services, Inc.) ("FST Belize") is solely owned by Mr. Turlov since July 2014. The Company does not consolidate FST Belize under any of the primary consolidation methods - variable interest entity (“VIE”) accounting method and the voting interest method ("VOE") as (i) FST Belize is not a VIE due to the fact it has sufficient equity at risk to finance its activities without additional financial support and the control over its significant activities is held by its sole shareholder, Mr. Turlov, and (ii) Mr. Turlov has a controlling interest in FST Belize such that under the VOE model FRHC is not required to consolidate FST Belize. Except for Mr. Turlov, there are no other shareholders at FST Belize or parties with participating rights or the ability to remove Mr. Turlov from his ownership position or to make all decisions in respect of FST Belize. While prior to the end of the fiscal 2024 we had omnibus brokerage relationship with FST Belize, such relationship had been terminated as of March 31, 2024. Deconsolidation of Freedom Finance Ukraine LLC As at June 30, 2024, the Company owns a 9% interest in Freedom Finance Ukraine LLC ("Freedom UA"), a Kyiv, Ukraine-based broker-dealer. The remaining 91% interest in Freedom UA is controlled by Askar Tashtitov, the Company's president. The Company entered into a series of contractual arrangements with Freedom UA and Mr. Tashtitov, including a consulting services agreement, an operating agreement and an option agreement. Through March 31, 2023, the Company had consolidated Freedom UA into the financial statements of the Company. On October 19, 2022, Freedom UA was added to the Ukrainian government's sanctioned entities list, resulting in suspension of its brokerage license. Given the ongoing uncertainty surrounding the situation in Ukraine and based on the Company's management's belief that the Company does not maintain effective control over Freedom UA, the Company has accounted for the deconsolidation of Freedom UA since April 1, 2023 (the date of loss of control). Concentrations of Revenue Revenues from one customer of the Group’s Brokerage segment represents the following amount of the Group’s consolidated revenues: Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Single non-related party $ 84,273 $ 35,074 Impairment of goodwill Goodwill is allocated to reporting units, which are identified as the operating segments or one level below operating segments that generate separate financial information regularly reviewed by management. The assignment of goodwill to reporting units allows for the assessment of potential impairment at the appropriate level within the organization. The Group has identified its reporting units based on its organizational and operational structure, as well as the level at which internal financial information is reviewed by management to make strategic decisions. In line with this, the reporting units have been established as follows: Brokerage Reporting Unit: This reporting unit represents the Group's operations in brokerage business. The management team responsible for the brokerage business regularly reviews financial information specific to this reporting unit, including revenue, expenses, and key performance indicators. Bank Reporting Unit: This reporting unit comprises the Group's operations in bank business. The management team responsible for the bank business reviews financial information related to this reporting unit, including revenue, expenses, and market trends. Insurance Reporting Unit: This reporting unit comprises the Group's operations in insurance business. The management team responsible for the insurance business reviews financial information related to this reporting unit, including revenue, expenses, and market trends. Other Reporting Unit: This reporting unit represents the Group's various businesses operations. The management team responsible for the Group's various businesses reviews financial information related to this reporting unit, including revenue, expenses, and market trends. Goodwill has been allocated to each reporting unit based on its relative fair value at the time of acquisition or significant triggering events. The fair value allocation of goodwill to reporting units is periodically reassessed to ensure alignment with the Group's evolving organizational structure and operational dynamics. The Group conducts impairment testing on an annual basis or whenever indicators of potential impairment arise. The impairment testing involves comparing the carrying amount of each subsidiary, including its allocated goodwill, to its fair value. If the carrying amount exceeds the fair value, an impairment loss is recognized. Further details regarding the measurement of goodwill impairment and the results of impairment tests for each reporting unit are provided below. The Group discloses information about the reporting units, the carrying amounts of goodwill allocated to each reporting unit, and the impairment losses recognized. The allocation of goodwill to reporting units ensures a focused evaluation of each unit's financial performance and facilitates the identification of potential impairment, enhancing the transparency and reliability of the Company's financial reporting. As of June 30, 2024 and March 31, 2024, goodwill recorded in the Company's Condensed Consolidated Balance Sheets totaled $50,591 and $52,648 respectively. The Group performs an impairment review at least annually unless indicators of impairment exist in interim periods. The entity compares the fair value of a reporting unit with its carrying amount. The goodwill impairment charge is recognized for the amount by which the reporting unit’s carrying amount exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. If fair value exceeds the carrying amount, no impairment is recorded. The goodwill value at June 30, 2024 decreased compared to March 31, 2024, as a result of foreign exchange currency translation. The changes in the carrying amount of goodwill for three months ended June 30, 2024 and 2023, were as follows: Brokerage Bank Insurance Other Total Goodwill, gross Balance as of March 31, 2023 $ 2,677 $ 2,652 $ 980 $ 8,715 $ 15,024 Write-off due to deconsolidation of Freedom UA — — — (832) (832) Foreign currency translation difference (1) — — — (1) Acquired — — — 36,760 36,760 Balance as of June 30, 2023 $ 2,676 $ 2,652 $ 980 $ 44,643 $ 50,951 Balance as of March 31, 2024 $ 2,688 $ 2,746 $ 1,040 $ 46,174 $ 52,648 Forex (55) (5) (55) (1,942) (2,057) Acquired — — — — — Balance as of June 30, 2024 $ 2,633 $ 2,741 $ 985 $ 44,232 $ 50,591 Accumulated impairment Balance as of March 31, 2023 $ — $ — $ — $ 832 $ 832 Impairment expense — — — — — Write-off due to deconsolidation of Freedom UA — — — (832) (832) Balance as of June 30, 2023 $ — $ — $ — $ — $ — Balance as of March 31, 2024 $ — $ — $ — $ — $ — Impairment expense — — — — — Balance as of June 30, 2024 $ — $ — $ — $ — $ — Goodwill, net of impairment Balance as of June 30, 2023 $ 2,676 $ 2,652 $ 980 $ 44,643 $ 50,951 Balance as of March 31, 2024 $ 2,688 $ 2,746 $ 1,040 $ 46,174 $ 52,648 Balance as of June 30, 2024 $ 2,633 $ 2,741 $ 985 $ 44,232 $ 50,591 Recent accounting pronouncements In August 2018, the FASB issued ASU 2018-12, Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, as clarified and amended by (i) ASU 2019-09, Financial Services - Insurance (Topic 944): Effective Date, and (ii) ASU 2020-11, Financial Services - Insurance (Topic 944): Effective Date and Early Application (collectively referred to herein as ASU 2018-12). ASU 2018-12 changed existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts. ASU 2018-12 includes: (1) a requirement to review and, if there is a change, update cash flow assumptions used to measure the liability for future policy benefits (LFPB) at least annually, and to update the discount rate assumption quarterly, (2) a requirement to account for market risk benefits (MRBs) at fair value, (3) simplified amortization for deferred policy acquisition costs (DAC), and (4) enhanced financial statement presentation and disclosures. The amendments are now effective for SEC filers that are not small reporting companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. For all other entities the effective date is now for fiscal years beginning after December 15, 2024, or interim periods after December 15, 2025. As of November 15, 2019, the Company met the definition of a smaller reporting company. In March 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-02, “Investments-Equity method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method” (“ASU 2023-02”). These amendments allow reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years and early adoption is permitted. We do not expect ASU 2023-02 to have an impact to our consolidated financial statements. In August 2023, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2023-05, Business Combinations - Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement, which clarifies the business combination accounting for joint venture formations. The amendments in the ASU seek to reduce diversity in practice that has resulted from a lack of authoritative guidance regarding the accounting for the formation of joint ventures in separate financial statements. The amendments also seek to clarify the initial measurement of joint venture net assets, including businesses contributed to a joint venture. The guidance is applicable to all entities involved in the formation of a joint venture. The amendments are effective for all joint venture formations with a formation date on or after January 1, 2025. Early adoption and retrospective application of the amendments are permitted. We do not expect adoption of the new guidance to have a material impact on our consolidated financial statements and disclosures. In October 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2023-06 (“ASU 2023-06”), Disclosure Improvements - Codification Amendment in Response to the SEC’s Disclosure Update and Simplification Initiative. This ASU modified the disclosure and presentation requirements of a variety of codification topics by aligning them with the SEC’s regulations. The amendments to the various topics should be applied prospectively, and the effective date will be determined for each individual disclosure based on the effective date of the SEC’s removal of the related disclosure. If the SEC has not removed the applicable requirements from Regulation S-X or Regulation S-K by June 30, 2027, then this ASU will not become effective. Early adoption is prohibited. While the Company is currently evaluating the effect that implementation of this update will have on its consolidated financial statements, no material impact is anticipated. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which enhances reporting requirements under Topic 280. The enhanced disclosure requirements include: title and position of the Chief Operating Decision Maker (CODM), significant segment expenses provided to the CODM, extending certain annual disclosures to interim periods, clarifying single reportable segment entities must apply ASC 280 in its entirety, and permitting more than one measure of segment profit or loss to be reported under certain circumstances. This change is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024. This change will apply retrospectively to all periods presented. The Company is currently evaluating the impact ASU No 2024-02 will have on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets. The amendments in ASU No. 2023-08 are intended to improve the accounting for certain crypto assets by requiring an entity to measure those crypto assets at fair value each reporting period with changes in fair value recognized in net income. The amendments also improve the information provided to investors about an entity’s crypto asset holdings by requiring disclosure about significant holdings, contractual sale restrictions, and changes during the reporting period. The amendments are effective for all entities for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued (or made available for issuance). If an entity adopts the amendments in an interim period, it must adopt them as of the beginning of the fiscal year that includes that interim period. ASU No. 2023-08 requires a cumulative-effect adjustment to the opening balance of retained earnings (or other appropriate components of equity or net assets) as of the beginning of the annual reporting period in which an entity adopts the amendments. The Company is currently evaluating the impact ASU No 2024-02 will have on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which would require additional transparency for income tax disclosures, including the income tax rate reconciliation table and cash taxes paid both in the United States and foreign jurisdictions. This standard is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact ASU No 2024-02 will have on its consolidated financial statements and related disclosures. In March 2024, the FASB issued ASU 2024-01, Compensation - Stock Compensation (Topic 718), Scope Application of Profits Interest and Similar Awards. This standard provides clarity regarding whether profits interest and similar awards are within the scope of Topic 718 of the Accounting Standards Codification. This standard is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact ASU No 2024-02 will have on its consolidated financial statements and related disclosures. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 3 Months Ended |
Jun. 30, 2024 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS As of June 30, 2024, and March 31, 2024, cash and cash equivalents consisted of the following: June 30, 2024 March 31, 2024 Short term deposits in National Bank (Kazakhstan) $ 292,154 $ 196,942 Short term deposits in commercial banks 202,830 127,051 Securities purchased under reverse repurchase agreements 150,960 134,961 Petty cash in bank vault and on hand 40,099 22,613 Overnight deposits 14,465 3,557 Cash in transit 7,210 9,633 Short term deposits in stock exchanges 5,062 47,830 Short term deposits on brokerage accounts 5,586 2,917 Short term deposits in the Central Depository (Kazakhstan) 551 42 Allowance for Cash and cash equivalents (239) (462) Total cash and cash equivalents $ 718,678 $ 545,084 As of June 30, 2024, and March 31, 2024, cash and cash equivalents balance included short-term collateralized securities received under reverse repurchase agreements which the Group concludes mainly on KASE. KASE, in turn, guarantees payments to the counterparty. The terms of the short-term collateralized securities received under reverse repurchase agreements as of June 30, 2024, and March 31, 2024 are presented below: June 30, 2024 Interest rates and remaining contractual maturity of the agreements Average interest rate Up to 30 days Total Securities purchased under reverse repurchase agreements Corporate equity 14.08 % 104,509 104,509 Corporate debt 3.53 % 31,398 31,398 US sovereign debt 7.95 % 10,302 10,302 Non-US sovereign debt 3.30 % 4,751 $ 4,751 Total $ 150,960 $ 150,960 March 31, 2024 Interest rates and remaining contractual maturity of the agreements Average interest rate Up to 30 days Total Securities purchased under reverse repurchase agreements Corporate equity 14.57 % $ 96,647 $ 96,647 US sovereign debt 4.77 % 16,885 16,885 Non-US sovereign debt 4.45 % 12,468 12,468 Corporate debt 5.31 % 8,961 8,961 Total $ 134,961 $ 134,961 The securities received by the Group as collateral under reverse repurchase agreements are liquid trading securities with market quotes and significant trading volume. The fair value of collateral received by the Group under reverse repurchase agreements as of June 30, 2024 and March 31, 2024, was $150,886 and $133,380, respectively. As of June 30, 2024 and March 31, 2024 , securities purchased under reverse repurchase agreements included accrued interest in the amount of $132 and $106, with a weighted average maturity of 2 days and 3 days, respectively. All securities repurchase agreements transactions were executed through the KASE. |
RESTRICTED CASH
RESTRICTED CASH | 3 Months Ended |
Jun. 30, 2024 | |
Restricted Cash [Abstract] | |
RESTRICTED CASH | RESTRICTED CASH As of June 30, 2024, and March 31, 2024, restricted cash consisted of the following:: June 30, 2024 March 31, 2024 Brokerage customers’ cash $ 1,099,041 $ 366,260 Guaranty deposits 81,125 97,052 Restricted bank accounts 8,161 8,079 Due from banks 6,167 6,374 Deferred distribution payment 23 23 Allowance for restricted cash (15,007) (15,151) Total restricted cash $ 1,179,510 $ 462,637 As of June 30, 2024, and March 31, 2024, part of the Group’s restricted cash was segregated in a special custody account for the exclusive benefit of the relevant brokerage customers. |
TRADING AND AVAILABLE-FOR-SALE
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE | 3 Months Ended |
Jun. 30, 2024 | |
Debt Securities, Trading, and Equity Securities, FV-NI [Abstract] | |
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE | TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE As of June 30, 2024, and March 31, 2024, trading and available-for-sale securities consisted of: June 30, 2024 March 31, 2024 Non-U.S. sovereign debt $ 2,135,862 $ 2,409,126 Corporate debt 1,084,410 1,108,870 Corporate equity 123,520 126,103 U.S. sovereign debt 43,452 43,173 Exchange traded notes 6,692 1,348 Total trading securities $ 3,393,936 $ 3,688,620 June 30, 2024 March 31, 2024 Corporate debt $ 194,327 $ 173,568 Non-U.S. sovereign debt 52,413 27,016 U.S. sovereign debt 16,120 16,037 Total available-for-sale securities, at fair value $ 262,860 $ 216,621 The following tables present maturity analysis for available-for-sale securities as of June 30, 2024, and March 31, 2024: June 30, 2024 Remaining contractual maturity of the agreements Up to 1 year 1-5 years 5-10 years More than 10 years Total Corporate debt 37,704 86,644 59,322 10,657 194,327 Non-US sovereign debt 14,240 17,884 13,643 6,646 52,413 US sovereign debt — 5,132 9,798 1,190 16,120 Total available-for-sale securities, at fair value $ 51,944 $ 109,660 $ 82,763 $ 18,493 $ 262,860 March 31, 2024 Remaining contractual maturity of the agreements Up to 1 year 1-5 years 5-10 years More than 10 years Total Corporate debt 65,415 44,374 59,553 4,226 173,568 Non-US sovereign debt 7,839 7,310 5,797 6,070 27,016 US sovereign debt — 5,059 9,753 1,225 16,037 Total available-for-sale securities, at fair value $ 73,254 $ 56,743 $ 75,103 $ 11,521 $ 216,621 As of June 30, 2024, the Group held debt securities of two issuers each of which individually exceeded 10% of the Group’s total trading and available-for-sale securities - the Ministry of Finance of the Republic of Kazakhstan (Fitch: BBB credit rating) in the amount of $2,175,004 a nd Kazakhstan Sustainability Fund JSC (Fitch: BBB credit rating) in t he amount of $726,402. As of March 31, 2024, the Group held debt securities of two issuers each of which individually exceeded 10% of the Group’s total trading securities and available-for-sale securities - the Ministry of Finance of the Republic of Kazakhstan (Fitch: BBB credit rating) in the amounts of $2,420,855 and the Kazakhstan Sustainability Fund JSC (Fitch: BBB credit rating) in the amount of $727,440, respectively. The debt securities issued by the Ministry of Finance of the Republic of Kazakhstan and Kazakhstan Sustainability Fund JSC are categorized as non-US sovereign debt and corporate debt, respectively. As of the June 30, 2024 and March 31, 2024, the Gr oup reco gnized $363 and $413 other-than-temporary impairment in accumulated other comprehensive loss. The fair value of securities is determined using observable market data based on recent trading activity. Where observable market data is unavailable due to a lack of trading activity, the Group utilizes internally developed models to estimate fair value and independent third parties to validate assumptions, when appropriate. Estimating fair value requires significant management judgment, including benchmarking to similar instruments with observable market data and applying appropriate discounts that reflect differences between the securities that the Group is valuing and the selected benchmark. Depending on the type of securities owned by the Group, other valuation methodologies may be required. Measurement of fair value is classified within a hierarchy based upon the transparency of inputs used in the valuation of an asset or liability. Classification within the hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The valuation hierarchy contains three levels: • Level 1 - Valuation inputs are unadjusted quoted market prices for identical assets or liabilities in active markets. • Level 2 - Valuation inputs are quoted market prices for identical assets or liabilities in markets that are not active, quoted market prices for similar assets and liabilities in active markets, and other observable inputs directly or indirectly related to the asset or liability being measured. • Level 3 - Valuation inputs are unobservable and significant to the fair value measurement. The following tables present securities assets in the Сondensed Сonsolidated Balance Sheets or disclosed in the Notes to the condensed consolidated financial statements at fair value on a recurring basis as of June 30, 2024, and March 31, 2024: Weighted Average Total Fair Value Measurements as of June 30, 2024 using Quoted Prices in Significant Significant Unobservable (Level 1) (Level 2) (Level 3) Non-U.S. sovereign debt 12.43 % $ 2,135,862 $ 1,455,803 $ 680,059 $ — Corporate debt 14.52 % 1,084,410 242,177 842,016 217 Corporate equity 123,520 101,371 3,717 18,432 U.S. sovereign debt 4.19 % 43,452 43,452 — — Exchange traded notes 6,692 5,853 839 — Total trading securities $ 3,393,936 $ 1,848,656 $ 1,526,631 $ 18,649 Corporate debt 14.96 % $ 194,327 $ 31,643 $ 162,684 $ — Non-US sovereign debt 11.73 % 52,413 45,027 7,386 — US sovereign debt 4.60 % 16,120 16,120 — — Total available-for-sale securities, at fair value $ 262,860 $ 92,790 $ 170,070 $ — Weighted Average Interest Rate Total Fair Value Measurements as of March 31, 2024 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Units (Level 1) (Level 2) (Level 3) Non-U.S. sovereign debt 11.61 % $ 2,409,126 $ 1,592,380 $ 816,746 $ — Corporate debt 14.83 % 1,108,870 171,218 937,360 292 Corporate equity 126,103 102,134 3,819 20,150 U.S. sovereign debt 4.98 % 43,173 43,173 — — Exchange traded notes 1,348 1,045 303 — Total trading securities $ 3,688,620 $ 1,909,950 $ 1,758,228 $ 20,442 Corporate debt 15.53 % $ 173,568 $ 47,135 $ 126,433 $ — Non-U.S. sovereign debt 10.48 % 27,016 12,378 14,638 — U.S. sovereign debt 3.54 % 16,037 16,037 — — Total available-for-sale securities, at fair value $ 216,621 $ 75,550 $ 141,071 $ — The tables below present the valuation techniques and significant level 3 inputs used in the valuation as of June 30, 2024, and March 31, 2024. The tables are not intended to be all inclusive, but instead capture the significant unobservable inputs relevant to determination of fair value. Type Valuation Technique FV as of June 30, 2024 Significant Unobservable Inputs % Corporate debt DCF 217 Discount rate 74.0% Estimated number of years 3 months Corporate equity DCF 18,296 Discount rate 13.0% Estimated number of years 4 years, 6 months Termination multiplier 27x Corporate equity DCF 136 Discount rate 58.8% Estimated number of years 9 years Total $ 18,649 Type Valuation Technique FV as of March 31, 2024 Significant Unobservable Inputs % Corporate debt DCF $ 292 Discount rate 74.0% Estimated number of years 3 months Corporate equity DCF 20,007 Discount rate 13.0% Estimated number of years 4 years, 6 months Termination multiplier 27x Corporate equity DCF 143 Discount rate 58.8% Estimated number of years 9 years Total $ 20,442 The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the three months ended June 30, 2024, and the year ended March 31, 2024: Trading securities Balance as of March 31, 2023 $ 5,138 Reclassification to Level 2 $ (32) Deconsolidation of Freedom UA securities (3,927) Sale of investments that use Level 3 inputs (15,856) Purchase of investments that use Level 3 inputs 35,807 Revaluation of investments that use Level 3 inputs (132) Reclassification to investment in associate (556) Balance as of March 31, 2024 $ 20,442 Reclassification to level 2 — Sale of investments that use Level 3 inputs — Purchase of investments that use Level 3 inputs — Revaluation of investments that use Level 3 inputs (1,792) Balance as of June 30, 2024 $ 18,650 The table below presents the amortized cost, unrealized gains and losses accumulated in other comprehensive income, and fair value of available-for-sale securities as of June 30, 2024, and March 31, 2024: June 30, 2024 Assets measured at amortized cost Accumulated impairment loss Unrealized loss accumulated in other comprehensive Assets Maturity Date Corporate debt $ 193,160 $ (51) $ 1,218 $ 194,327 2024-2039 Non-US sovereign debt 54,123 (312) (1,398) 52,413 2024-indefinite U.S. sovereign debt 16,883 — (763) 16,120 2027-2044 Total available-for-sale securities, at fair value $ 264,166 $ (363) (943) $ 262,860 March 31, 2024 Assets measured at amortized cost Accumulated impairment loss Unrealized loss accumulated in other comprehensive Assets Maturity Date Corporate debt $ 172,689 $ (61) $ 940 $ 173,568 2024-2039 Non-U.S. sovereign debt 29,121 (352) $ (1,753) 27,016 2024-indefinite U.S. sovereign debt 16,767 — $ (730) 16,037 2027-2044 Total available-for-sale securities, at fair value $ 218,577 $ (413) $ (1,543) $ 216,621 |
MARGIN LENDING, BROKERAGE AND O
MARGIN LENDING, BROKERAGE AND OTHER RECEIVABLES, NET | 3 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
MARGIN LENDING, BROKERAGE AND OTHER RECEIVABLES, NET | MARGIN LENDING, BROKERAGE AND OTHER RECEIVABLES, NET Margin lending, brokerage and other receivables as of June 30, 2024, and March 31, 2024, consisted of: June 30, 2024 March 31, 2024 Margin lending receivables $ 1,193,193 $ 1,635,377 Receivables from payment processing services 8,900 5,351 Bank commissions receivable 7,966 11,574 Bond coupon receivable and dividends accrued 4,641 5,429 Receivables from brokerage clients 2,889 2,603 Other receivables 13,533 11,931 Allowance for receivables (13,237) (11,990) Total margin lending, brokerage and other receivables, net $ 1,217,885 $ 1,660,275 Margin lending receivables are amounts owed to the Group from customers as a result of borrowings by such customers against the value of qualifying securities, primarily for the purpose of purchasing additional securities. Amounts may fluctuate from period to period as overall client balances change as a result of market levels, client positioning and leverage. Credit exposures arising from margin lending activities are generally mitigated by their short-term nature, the value of collateral held and the Group 's right to call for margin when collateral values decline. The fair value of collateral received by the Group under margin loans as of June 30, 2024, and March 31, 2024 were $6,687,324 and $7,579,057, respectively. As of June 30, 2024, and March 31, 2024, collateral from single counterparty comprised $2,479,045 and $2,516,108, 37% and 33% of the total collateral value, respectively. At the same time margin lending receivable from single counterparty comprised $862,986 and $399,196, respectively. For both individual and institutional brokerage clients, the Group may enter into arrangements for securities financing transactions in respect of financial instruments held by the Group on behalf of the client or may use such financial instruments for our own account or the account of another client. The Group maintain omnibus brokerage accounts for certain institutional brokerage clients, in which transactions of the underlying clients of such institutional clients are combined in a single account with us. As noted above, the Group may use the assets within the omnibus accounts to finance, lend, provide credit or provide debt financing or otherwise use and direct the order or manner of assets for financing of other clients of ours. As of June 30, 2024, and March 31, 2024, using historical and statistical data, the Group recorded an allowance for brokerage receivables in the amounts of $13,237 and $11,990 , respectively. |
LOANS ISSUED
LOANS ISSUED | 3 Months Ended |
Jun. 30, 2024 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS ISSUED | LOANS ISSUED Loans issued as of June 30, 2024, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Loan Currency Mortgage loans $ 724,295 July 2024 - June 2049 10.3% $ 724,294 KZT Car loans 227,234 July 2024 - April 2032 23.9% 224,380 KZT Uncollateralized bank customer loans 231,833 July 2024 - June 2044 27.7% — KZT Right of claim for purchased retail loans 134,333 July 2024 - August 2029 15.0% 134,333 KZT Collateralized bank customer loans 29,102 July 2024 - July 2043 19.3% 27,982 KZT Subordinated loan 5,038 December 2025 3.0% — USD Other 2,803 August 2024 - January 2029 18.6%/15.0%/2.5% 33 KZT/USD/EUR Allowance for loans issued (40,086) Total loans issued $ 1,314,552 The Group provides mortgage loans to borrowers on behalf of the JSC Kazakhstan Sustainability Fund ("Program Operator") related to the state mortgage program "7-20-25" and transfers the rights of claim on the mortgage loans to the Program Operator. The proceeds received from these transfers are presented within funds received under state program for financing of mortgage loans in the Condensed Consolidated Statements of Cash Flows. Under this program, borrowers can receive a mortgage at an interest rate of 7% for 20 years, and the interest payments received by the Group are recognized as interest income in the Group’s Consolidated Statements of Operations and Statements of Other Comprehensive Income. In accordance with the program and trust management agreement for the program, Group services the transferred loans and remits all repayments of principal it receives plus 4% of the 7% interest received to the Program Operator. The interest paid to the Program Operator is recognized as interest expense in the Condensed Consolidated Statements of Operations and Statements of Other Comprehensive Income. The remaining 3% of the 7% interest is retained by Group. Under the program and trust management agreement, Group is required to repurchase the rights to make claims on the transferred loans when either loan principal repayments or interest payments are overdue 90 days or more. The repurchase of overdue loans is performed at the loans’ nominal value and is presented within repurchase of mortgage loans under the State Program in the Condensed Consolidated Statements of Cash Flows. Since the Group transfers the rights to make claims on the loans with recourse for loans that are more than 90 days past due, retains part of the interest received on the loans and agrees to service the loans after the sale of the loans to the Program Operator, the Group has determined that it retains control over the loans transferred and continues recognizing the loans, which are accounted for as secured borrowings of the Group in accordance with ASC 860, Transfers and Servicing. As the Group continues to recognize the loans as assets, it also recognizes the associated liability equal to the proceeds received from the Program Operator, which is presented separately as liability arising from continuing involvement in the Condensed Consolidated Balance Sheets. This liability accrues 4% interest annually as described above. As of June 30, 2024 and March 31, 2024 , the corresponding liability amounte d to $ 505,659 and $ 521,885 , respectively. As of June 30, 2024 and March 31, 2024 , mortgage loans include loans under the state mortgage program "7-20-25" with an aggregate principal amount of $519,016 and $532,389 , respectively , were presented within loans issued in the Condensed Consolidated Balance Sheets. The Group has an agreement with FFIN Credit, a company established and controlled by FRHC's controlling shareholder, chairman and chief executive officer, Timur Turlov, to purchase uncollateralized retail loans. FFIN Credit is a non-bank credit institution that issues loans in Kazakhstan under simplified lending procedures. FFIN Credit was created as a pilot project to test and improve the scoring models used for qualifying and issuing loans. The principal operation of FFIN Credit is to provide loans to customers online using biometric identification and its proprietary scoring process. After completion of the pilot launch, it is anticipated that the ownership of FFIN Credit will be sold by Mr. Turlov to the Company. The bank has legal ownership over purchase from FFIN Credit uncollateralized retail loans, however, in accordance with U.S. GAAP requirements, the Group does not recognize those loans, since effective control over the transferred loans are maintained by FFIN Credit. Instead, the Group recognizes the loans receivable from FFIN Credit presented on the Consolidated Balance Sheets within the loans issued. As of June 30, 2024 and March 31, 2024, right of claims for purchased retail loans amounted to $134,333 and $146,152, respectively. The total accrued interest for loans issued amounted to $8,277 as of June 30, 2024 and $8,327 as of March 31, 2024 . Loans issued as of March 31, 2024, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Loan Currency Mortgage loans $ 741,312 April, 2024 - March, 2049 10.3% $ 740,462 KZT Car loans 262,708 April, 2024 - March, 2031 23.9% 259,755 KZT Uncollateralized bank customer loans 245,188 April, 2024 - March, 2044 27.4% — KZT Right of claim for purchased retail loans 146,152 April, 2024 - March, 2029 15.0% 146,152 KZT Collateralized bank customer loans 22,299 June, 2024 - July, 2043 19.1% 22,270 KZT Subordinated loan 5,037 December, 2025 3.0% — USD Other 2,638 April, 2024 - January, 2029 18.6%/15.0%/2.5% 18 KZT/USD/EUR Allowance for loans issued (43,619) Total loans issued $ 1,381,715 Credit quality indicators Freedom Bank KZ uses a loan portfolio quality classification system that indicates signs of a significant increase in credit risk and contractual impairment, depending on the analysis of reasonable and supportable information available at the reporting date. The loan portfolio is classified into “not credit impaired”, “with significant increase in credit risk” and “credit impaired” agreements. Loans “not credit impaired” under the agreement are serviced as usual, there are no primary signs of an increase in credit risk. Agreements classified as “with significant increase in credit risk” represent loans for which there is an increase in the credit risk expected over the life of the agreement compared to the initial risk at the date of recognition of the loan. In practice, the presence of overdue debt on principal and interest for a period of more than 30 days or the absolute probability of default threshold PD exceeds 20%. Agreements classified as “credit impaired” represent loans for which at the reporting date there are signs of impairment, the borrower has been in default for 90 or more days for individuals and 60 or more days for legal entities, the borrower for the last 6 months for individuals and 12 months for legal entities restructured the contract due to the deterioration of the financial condition, the borrower is recognized as credit impaired, the presence of a sign of default, a sign of bankruptcy, the deterioration of the financial performance of the borrower, the presence of other information indicating the presence of a high credit risk. The table below presents the Group's loan portfolio by credit quality classification and origination year as of June 30, 2024. Current vintage disclosure is the requirement due to first adoption of ASC 326. Term Loans by Origination Year 2025 2024 2023 2022 2021 Prior Revolving loans Total Mortgage loans $ 37,141 $ 223,214 $ 426,566 $ 37,374 $ — $ — $ — $ 724,295 that are not credit impaired 37,141 221,389 423,582 37,002 719,114 with significant increase in credit risk — 1,322 1,627 298 3,247 that are credit impaired — 503 1,357 74 1,934 Car loans 661 170,230 56,343 — — — — 227,234 that are not credit impaired 661 165,792 45,318 211,771 with significant increase in credit risk — 1,990 1,741 3,731 that are credit impaired — 2,448 9,284 11,732 Uncollateralized bank customer loans 18,126 183,176 30,524 7 — — — 231,833 that are not credit impaired 18,058 168,030 25,547 — 211,635 with significant increase in credit risk 68 4,559 1,030 — 5,657 that are credit impaired — 10,587 3,947 7 14,541 Right of claim for purchased retail loans 36,886 87,911 9,436 100 — — — 134,333 that are not credit impaired 36,886 87,911 9,436 100 134,333 with significant increase in credit risk — — — — — that are credit impaired — — — — — Collateralized bank customer loans 11,615 17,223 264 — — — — 29,102 that are not credit impaired 11,615 17,095 264 28,974 with significant increase in credit risk — 128 — 128 that are credit impaired — — — — Subordinated loan — — 5,038 — — — — 5,038 that are not credit impaired — — 5,038 5,038 with significant increase in credit risk — — — — that are credit impaired — — — — Other 215 2,371 154 63 — — — 2,803 that are not credit impaired 215 2,362 154 63 2,794 with significant increase in credit risk — — — — — that are credit impaired — 9 — — 9 Total $ 104,644 $ 684,125 $ 528,325 $ 37,544 $ — $ — $ — $ 1,354,638 The table below presents the Group's loan portfolio by credit quality classification as of March 31, 2024. Term Loans by Origination Year 2024 2023 2022 2021 2020 Prior Revolving loans Total Mortgage loans $ 241,848 $ 458,401 $ 41,063 $ — $ — $ — $ — $ 741,312 that are not credit impaired 240,974 454,933 40,784 — — — — 736,691 with significant increase in credit risk 676 2,415 111 — — — — 3,202 that are credit impaired 198 1,053 168 — — — — 1,419 Car loans 196,305 66,403 — — — — — 262,708 that are not credit impaired 193,302 55,427 — — — — — 248,729 with significant increase in credit risk 1,590 2,232 — — — — — 3,822 that are credit impaired 1,413 8,744 — — — — — 10,157 Uncollateralized bank customer loans 210,612 34,568 8 — — — — 245,188 that are not credit impaired 200,211 30,337 — — — — — 230,548 with significant increase in credit risk 4,715 1,072 — — — — — 5,787 that are credit impaired 5,686 3,159 8 — — — — 8,853 Right of claim for purchased retail loans 130,291 15,694 167 — — — — 146,152 that are not credit impaired 130,291 15,694 167 — — — — 146,152 with significant increase in credit risk — — — — — — — — that are credit impaired — — — — — — — — Collateralized bank customer loans 21,972 327 — — — — — 22,299 that are not credit impaired 21,796 327 — — — — — 22,123 with significant increase in credit risk 89 — — — — — — 89 that are credit impaired 87 — — — — — — 87 Subordinated loan — 5,037 — — — — — 5,037 that are not credit impaired — 5,037 — — — — — 5,037 with significant increase in credit risk — — — — — — — — that are credit impaired — — — — — — — — Other 2,404 165 69 — — — — 2,638 that are not credit impaired 2,395 165 69 — — — — 2,629 with significant increase in credit risk — — — — — — — — that are credit impaired 9 — — — — — — 9 Total $ 803,432 $ 580,595 $ 41,307 $ — $ — $ — $ — $ 1,425,334 Aging analysis of past due loans as of June 30, 2024 and March 31, 2024, is as follows: June 30, 2024 Loans 30-59 Days past due Loans 60-89 days past due Loans 90 days or more past due and still accruing Current loans Total Mortgage loans $ 1,762 $ 1,485 $ 1,934 $ 719,114 $ 724,295 Car loans 2,006 1,725 11,732 211,771 227,234 Uncollateralized bank customer loans 3,021 2,636 14,541 211,635 231,833 Right of claim for purchased retail loans — — — 134,333 134,333 Collateralized bank customer loans 99 29 — 28,974 29,102 Subordinated loan — — — 5,038 5,038 Other — — 9 2,794 2,803 Total $ 6,888 $ 5,875 $ 28,216 $ 1,313,659 $ 1,354,638 March 31, 2024 Loans 30-59 Days past due Loans 60-89 days past due Loans 90 days or more past due and still accruing Current loans Total Mortgage loans $ 2,133 $ 1,069 $ 1,419 $ 736,691 $ 741,312 Car loans 2,167 1,655 10,157 248,729 262,708 Uncollateralized bank customer loans 3,576 2,211 8,853 230,548 245,188 Right of claim for purchased retail loans — — — 146,152 146,152 Collateralized bank customer loans — 89 87 22,123 22,299 Subordinated loan — — — 5,037 5,037 Other — — 9 2,629 2,638 Total $ 7,876 $ 5,024 $ 20,525 $ 1,391,909 $ 1,425,334 The activity in the allowance for credit losses for the three months ended June 30, 2024 and 2023 is summarized in the following tables. Allowance for credit losses Mortgage loan Uncollateralized bank customer loans Collateralized bank customer loans Car loans Right of claim for purchased retail loans Other Total March 31, 2024 $ (3,033) $ (19,636) $ (80) $ (14,262) $ (6,577) $ (31) $ (43,619) Charges (728) (6,389) (116) (1,526) (1,490) (6) (10,255) Recoveries 295 3,733 20 3,938 3,473 11,459 Write off — — 4 109 — — 113 Forex 180 1,160 9 621 246 2,216 June 30, 2024 $ (3,286) $ (21,132) $ (163) $ (11,120) $ (4,348) $ (37) $ (40,086) Allowance for credit losses Mortgage loan Uncollateralized bank customer loans Collateralized bank customer loans Car loans Right of claim for purchased retail loans Other Total March 31, 2023 $ (554) $ (233) $ — $ (758) $ (1,247) $ — $ (2,792) Adjustment to allowance for adoption of ASU 2016-13 (2,216) (7,436) (35) (6,462) (9,046) — (25,195) Charges — (7,755) (55) (2,948) (5,346) (3,261) (19,365) Recoveries 284 1,602 8 272 3,345 — 5,511 Forex 3 64 2 34 34 — 137 June 30, 2023 $ (2,483) $ (13,758) $ (80) $ (9,862) $ (12,260) $ (3,261) $ (41,704) |
PROVISION FOR INCOME TAXES
PROVISION FOR INCOME TAXES | 3 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES | PROVISION FOR INCOME TAXES The Group is subject to taxation in Kazakhstan, Kyrgyzstan, Cyprus, Uzbekistan, Germany and the United States of America. The tax rates used for deferred tax assets and liabilities as of June 30, 2024, and March 31, 2024, were 21% for the United States, 20% for Kazakhstan and Azerbaijan, 10% for Kyrgyzstan, 15% for Germany, 12.5% for Cyprus, 25% for United Kingdom, 18% for Armenia and 15% for Uzbekistan. During the three months ended June 30, 2024, and 2023, the effective tax rate was equal to 17.6% and 19.7%, respectively. |
SECURITIES REPURCHASE AGREEMENT
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS | 3 Months Ended |
Jun. 30, 2024 | |
Securities Sold under Agreements to Repurchase [Abstract] | |
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS | SECURITIES REPURCHASE AGREEMENT OBLIGATIONS As of June 30, 2024, and March 31, 2024, trading securities included collateralized securities subject to repurchase agreements as described in the following table: June 30, 2024 Interest rates and remaining contractual maturity of the agreements Average interest rate Up to 30 days 30-90 days Total Securities sold under repurchase agreements Non-US sovereign debt 13.63 % 1,419,612 224,742 1,644,354 Corporate debt 13.64 % 748,007 156,580 904,587 US sovereign debt 13.50 % 9,853 — 9,853 Total securities sold under repurchase agreements $ 2,177,472 $ 381,322 $ 2,558,794 March 31, 2024 Interest rate and remaining contractual maturity of the agreements Average interest rate Up to 30 days 30-90 days Total Securities sold under repurchase agreements Non-US sovereign debt 13.78 % $ 1,545,080 $ 259,948 $ 1,805,028 Corporate debt 13.84 % 923,752 14,644 938,396 US sovereign debt 3.06 % 13,172 — 13,172 Total securities sold under repurchase agreements $ 2,482,004 $ 274,592 $ 2,756,596 The fair value of collateral pledged under repurchase agreements as of June 30, 2024, and March 31, 2024, was $2,572,331 and $2,753,601, respectively. Securities pledged as collateral by the Group under repurchase agreements are liquid trading securities with market quotes and significant trading volume. As of June 30, 2024 and March 31, 2024, securities repurchase agreement obligations included accrued interest in the amount of $9,565 and $11,684, with a weighted average maturity of 14 days and 12 days, respectively. All securities repurchase agreements transactions were executed through the Kazakhstan Stock Exchange. |
CUSTOMER LIABILITIES
CUSTOMER LIABILITIES | 3 Months Ended |
Jun. 30, 2024 | |
Contract with Customer, Liability [Abstract] | |
CUSTOMER LIABILITIES | CUSTOMER LIABILITIES The Group recognizes customer liabilities associated with deposit funds of its brokerage and bank customers. As of June 30, 2024, and March 31, 2024 , customer liabilities consisted of: June 30, 2024 March 31, 2024 Amount Interest Amount Interest Interest bearing deposits: Term deposits $ 1,355,385 0.1% - 17.3% $ 1,221,072 0.04% - 17.3% Total Interest bearing deposits $ 1,355,385 $ 1,221,072 Non-interest-bearing deposits: Brokerage customers $ 973,577 $ 742,902 Current customer accounts 370,950 309,856 Total non-interest-bearing accounts $ 1,344,527 $ 1,052,758 Total customer liabilities $ 2,699,912 $ 2,273,830 In accordance with Kazakhstan law requirements, commercial banks conclude agreements with JSC Kazakhstan Deposit Insurance Fund ("KDIF"), under which banks have to pay commissions to KDIF on a recurring basis, the amount of which depends on the term and demand deposits received by banks from the customers. Under the agreement, KDIF insures the term and demand deposits up to $42 to each customer. As at June 30, 2024, and March 31, 2024, respectively, the Group had total amounts in excess of insured bank time deposits of $616,746 and $600,972 for all customers. |
MARGIN LENDING AND TRADE PAYABL
MARGIN LENDING AND TRADE PAYABLES | 3 Months Ended |
Jun. 30, 2024 | |
Accounts Payable [Abstract] | |
MARGIN LENDING AND TRADE PAYABLES | MARGIN LENDING AND TRADE PAYABLES As of June 30, 2024, and March 31, 2024 , margin lending and trade payables of the Group were comprised of the following: June 30, 2024 March 31, 2024 Margin lending payable $ 809,409 $ 839,454 Payables to merchants 12,379 13,475 Payables to suppliers of goods and services 9,005 10,525 Trade payable for securities purchased 464 485 Other 5,052 3,941 Total margin lending and trade payables $ 836,309 $ 867,880 The fair value of collateral by the Group under margin loans as of June 30, 2024, and March 31, 2024 was $2,564,790 and $2,400,361 , respectively. |
DEBT SECURITIES ISSUED
DEBT SECURITIES ISSUED | 3 Months Ended |
Jun. 30, 2024 | |
Debt Securities [Abstract] | |
DEBT SECURITIES ISSUED | DEBT SECURITIES ISSUED As of June 30, 2024, and March 31, 2024, outstanding debt securities issued by the Group included the following: Debt securities issued by: June 30, 2024 March 31, 2024 Interest rate Issue date Maturity date Freedom SPC bonds due 2028 $ 200,366 $ 200,386 1-2 years: 12% 3-5 years: EFFR + 6.5% December, 2023 December, 2028 Freedom SPC bonds due 2026 64,610 64,546 5.5% October, 2021 October, 2026 Accrued interest 1,422 2,319 Total debt securities issued $ 266,398 $ 267,251 As of June 30, 2024 the carrying value of the Group’s debt securities issued was $64,610 Freedom SPC bonds due 2026 and $200,366 Freedom SPC bonds due 2028, respectively. The Freedom SPC bonds are denominated in U.S. dollars and were issued under Astana International Financial Centre ("AIFC") law and trade on the AIX. The Company is a guarantor of the Freedom SPC bonds. The Freedom SPC bonds due 2026 bear interest at an annual rate of 5.5% and mature in October 2026. Interest is paid semi-annually in April and October. The proceeds from the issuance of such bonds were loaned to the Company pursuant to a loan agreement dated November 22, 2021. The loan has the same interest rate and maturity date as the bonds. For the first two years of Freedom SPC bonds due 2028, the annual interest rate is 12%, and for subsequent years the interest rate will be fixed and set as the sum of Effective Federal Funds Rate (EFFR) as of December 10, 2025 and a margin of 6.5%. Interest is paid on a monthly basis. The bondholders have a right of early redemption after two years at nominal value plus accrued interest. After two years, the issuer has the option to redeem the bonds in full or in part at nominal value plus accrued interest. Debt securities issued are initially recognized at the fair value of the consideration received, less directly attributable transaction costs. The Group has no covenants to comply with in its debt securities. |
INSURANCE CONTRACTS ASSETS AND
INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES | 3 Months Ended |
Jun. 30, 2024 | |
Insurance [Abstract] | |
INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES | INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES As of June 30, 2024, and March 31, 2024, insurance and reinsurance receivables of the Group was comprised of the following: June 30, 2024 March 31, 2024 Assets: Amounts due from policyholders $ 9,624 $ 10,260 Amounts due from reinsured 3,185 2,274 Advances received from agent 1,602 3,231 Claims receivable from reinsurance 1,541 1,400 Allowance for estimated uncollectible reinsurance (1,168) (1,045) Insurance and reinsurance receivables: 14,784 16,120 Unearned premium reserve, reinsurers’ share 4,929 4,770 Reserves for claims and claims’ adjustment expenses, reinsurers’ share 5,236 4,032 Total $ 24,949 $ 24,922 As of June 30, 2024, and March 31, 2024, insurance and reinsurance payable of the Group was comprised of the following: June 30, 2024 March 31, 2024 Liabilities: Amounts payable to agents and brokers $ 5,955 $ 6,334 Amounts payable to insurers 3,983 4,294 Amounts payable to reinsured 786 2,771 Insurance and reinsurance payables: 10,724 13,399 Unearned premium reserve 70,518 60,088 Reserves for claims and claims’ adjustment expenses 239,152 223,693 Total $ 320,394 $ 297,180 As of June 30, 2024, and March 31, 2024, liabilities from insurance activity mainly changed due to the increase of reserves for claims and claim's adjustment expenses, unearned premium reserve as a result of the expansion of operations. |
FEE AND COMMISSION INCOME
FEE AND COMMISSION INCOME | 3 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
FEE AND COMMISSION INCOME | FEE AND COMMISSION INCOME Fee and commission income is recognized when, or as, the Group satisfies its performance obligations by transferring the promised services to the customers. A service is transferred to a customer when, or as, the customer obtains control of that service. A performance obligation may be satisfied at a point in time or over time. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Group determines the customer obtains control over the promised service. Revenue from a performance obligation satisfied over time is recognized by measuring the Group’s progress in satisfying the performance obligation in a manner that depicts the transfer of the services to the customer. The amount of revenue recognized reflects the consideration the Group expects to receive in exchange for those promised services (i.e., the “transaction price”). In determining the transaction price, the Group considers multiple factors, including the effects of variable consideration, if any. The Company’s revenues from contracts with customers are recognized when the performance obligations are satisfied at an amount that reflects the consideration expected to be received in exchange for such services. The majority of the Group’s performance obligations are satisfied at a point in time and are typically collected from customers by debiting their brokerage account with the Group. Brokerage Services Commissions from brokerage services — The Group earns commission revenue by executing, settling and clearing transactions with clients primarily in exchange-traded and over-the-counter corporate equity and debt securities, money market instruments and exchange-traded options and futures contracts. Trade execution and clearing services, when provided together, represent a single performance obligation, as the services are not separately identifiable in the context of the contract. Commission revenue associated with combined trade execution and clearing services, as well as trade execution services on a standalone basis, are recognized at a point in time on trade date when the performance obligation is satisfied. Commission revenue is generally paid on settlement date, which is generally two business days after trade date for equity securities and corporate bond transactions and one day for government securities, options and commodities transactions. The Group records a receivable on the trade date and receives a payment on the settlement date. Bank Services The Group earns revenue from two primary streams related to commissions from bank services: • The Group earns bank commissions by executing client order for money transfer, purchase and sale of foreign currency, and other bank services. A substantial portion of the Group's revenue is derived from commissions from private clients through accounts with transaction-based pricing. Commission revenue is collected and recognized by the Company at a point in time at the execution of the order. • Interchange — The Group acts as an agent between customers and international payment systems, such as VISA and MasterCard. When using third-party payment platforms or networks, the Group is an agent for the payment processing services to retail customers and. therefore, revenue is recognized on a net basis, as the Group is not primarily responsible for fulfilling the payment processing on third parties' payment platforms/networks and has no discretion in establishing the selling price of the payment processing service to the retail customer on third party payment platforms/networks. Fees from customers using third-party payment platform are earned for processing debit card transactions. Payment Processing The Group earns revenue from two primary streams related to payment processing: • Commissions from payment processing services, which include activities such as authorization, clearing, and settlement of electronic payments. The Company recognizes revenue at the time when the payment card transaction is completed. These services are typically provided under a commission rate from amounts of transactions. Fees are typically billed and paid monthly. • Provision of IT infrastructure to merchants to facilitate payments. The Company recognizes revenue at the time when the performance obligation is satisfied – as soon as payments are facilitated. These services are typically provided under a commission rate from amounts of facilitated payments. Fees are typically billed and paid monthly. Underwriting and market-making services The Group earns underwriting revenues by providing capital raising solutions for corporate clients through initial public offerings, follow-on offerings, equity-linked offerings, private investments in public entities, and private placements. Underwriting revenues are recognized at a point in time on placement date, as the client obtains the control and benefit of the capital markets offering at that point. These fees are generally received within 90 days after the placement date. Transaction-related expenses, primarily consisting of legal, travel and other costs directly associated with the transaction, are included in underwriting revenues. These costs are deferred and recognized in the same period as the related investment banking transaction revenue. However, if the transaction is abandoned and does not close, the accounting treatment for the transaction-related costs may differ. In such cases, the accounting principles typically require the immediate recognition of the transaction-related expenses as an expense in the period in which the decision to abandon the transaction is made. This ensures that the costs associated with the abandoned transaction are recognized and reflected accurately in the financial statements of the entity. Receivables and Contract Balances Receivables arise when the Group has an unconditional right to receive payment under a contract with a customer and are derecognized when the cash is received. Margin lending, brokerage and other receivables are disclosed in Note 6 in the notes to condensed consolidated financial statements. Contract assets arise when the revenue associated with the contract is recognized before the Group’s unconditional right to receive payment under a contract with a customer (i.e., unbilled receivable) and are derecognized when either it becomes a receivable or the cash is received. As of June 30, 2024 and March 31, 2024, contract asset balances were not material. Contract liabilities arise when customers remit contractual cash payments in advance of the Group satisfying its performance obligations under the contract and are derecognized when the revenue associated with the contract is recognized either when a milestone is met triggering the contractual right to bill the customer or when the performance obligation is satisfied. As of June 30, 2024 and March 31, 2024, contract liability balances were not material. During the three months ended June 30, 2024, and June 30, 2023, fee and commission income was comprised of: Three months ended June 30, 2024 Brokerage Banking Insurance Other Total Brokerage services $ 93,167 $ — $ — $ — $ 93,167 Commission income from payment processing — — — 8,563 8,563 Underwriting and market-making services 4,702 — — — 4,702 Bank services — 2,516 — — 2,516 Other fee and commission income 74 280 115 6,072 6,541 Total fee and commission income $ 97,943 $ 2,796 $ 115 $ 14,635 $ 115,489 Three months ended June 30, 2023 Brokerage Banking Insurance Other Total Brokerage service $ 55,082 $ — $ — $ — $ 55,082 Commission income from payment processing — — — 18,042 18,042 Bank services — 12,841 — — 12,841 Underwriting and market-making services 8,831 — — — 8,831 Other fee and commission income 59 325 42 3,481 3,907 Total fee and commission income $ 63,972 $ 13,166 $ 42 $ 21,523 $ 98,703 |
NET (LOSS)_GAIN ON TRADING SECU
NET (LOSS)/GAIN ON TRADING SECURITIES | 3 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
NET (LOSS)/GAIN ON TRADING SECURITIES | NET (LOSS)/GAIN ON TRADING SECURITIES During the three months ended June 30, 2024, and June 30, 2023, net (loss)/gain on trading securities was comprised of: Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Net unrealized (loss)/gain recognized during the reporting period on trading securities still held at the reporting date $ (64,943) $ 20,951 Net gain recognized during the period on trading securities sold during the period 12,841 10,865 Net (loss)/gain recognized during the period on trading securities $ (52,102) $ 31,816 |
NET INTEREST INCOME_EXPENSE
NET INTEREST INCOME/EXPENSE | 3 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
NET INTEREST INCOME/EXPENSE | NET INTEREST INCOME/EXPENSE Net interest income/expense for the three months ended June 30, 2024, and June 30, 2023 includes: Three months ended June 30, 2024 Three months ended June 30, 2023 Interest income: Interest income on trading securities 107,128 $ 86,840 Interest income on loans to customers 52,367 31,333 Interest income on margin loans to customers 51,067 17,180 Interest income on securities available-for-sale 8,400 8,345 Interest income on reverse repurchase agreements and amounts due from banks 7,042 3,057 Other interest income — 2,594 Total interest income $ 226,004 $ 149,349 Interest expense: Interest expense on securities repurchase agreement obligations $ 92,407 $ 75,455 Interest expense on customer accounts and deposits 23,127 15,603 Interest expense on margin lending payable 23,123 2,993 Interest expense on debt securities issued 6,969 935 Interest expense on loans received 44 27 Other interest expense 48 33 Total interest expense $ 145,718 $ 95,046 Net interest income $ 80,286 $ 54,303 |
NET GAIN_(LOSS) ON DERIVATIVES
NET GAIN/(LOSS) ON DERIVATIVES | 3 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
NET GAIN/(LOSS) ON DERIVATIVES | NET GAIN/(LOSS) ON DERIVATIVES Three months ended June 30, 2024 Three months ended June 30, 2023 Net realized gain/(loss) on derivatives $ 4,344 $ (27,493) Net unrealized gain/(loss) on derivatives 8,150 (3,112) Total net gain/(loss) on derivatives $ 12,494 $ (30,605) |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS June 30, 2024 March 31, 2024 Related party balances Total category as per financial statements captions Related party balances Total category as per financial statements captions ASSETS Cash and cash equivalents $ 257 $ 718,678 $ 203 $ 545,084 Companies controlled by management 257 203 Restricted cash $ 1,121 $ 1,179,510 $ — $ 462,637 Management 357 — Companies controlled by management 576 — Other 188 — Trading securities $ 1,256 $ 3,393,936 $ 1,326 $ 3,688,620 Companies controlled by management 1,256 1,326 Margin lending, brokerage and other receivables, net $ 37,836 $ 1,217,885 $ 22,039 $ 1,660,275 Management 9,037 8,849 Companies controlled by management 28,799 13,190 Loans issued $ 136,558 $ 1,314,552 $ 147,440 $ 1,381,715 Management 1,094 117 Companies controlled by management 135,464 147,323 Other assets, net $ 23,057 $ 139,584 $ 5,257 $ 102,414 Management 2 — Companies controlled by management 23,055 5,257 LIABILITIES Customer liabilities $ 84,970 $ 2,699,912 $ 44,127 $ 2,273,830 Management 10,659 12,604 Companies controlled by management 73,421 31,253 Other 890 270 Other liabilities $ 8,349 $ 68,040 $ 9,854 $ 81,560 Management 7,967 7,947 Companies controlled by management 380 1,907 Other 2 — Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Related party amounts Total category as per financial statements captions Related party amounts Total category as per financial statements captions Revenue: Fee and commission income $ 866 $ 115,489 $ 15,896 $ 98,703 Management 219 285 Companies controlled by management 645 15,611 Other 2 — Interest income $ 270 $ 226,004 $ 5,352 $ 149,349 Management 205 72 Companies controlled by management 65 5,280 Expense: General and administrative expenses $ 2,725 $ 45,105 $ 478 $ 24,475 Management 233 163 Companies controlled by management 2,492 315 During the three months ended June 30, 2023, the Group engaged in various related party transactions, a substantial amount of which were conducted with FST Belize, a Belize company which is wholly owned personally by the Company’s chief executive officer, chairman and majority shareholder, Timur Turlov, and is not part of the FRHC group of companies. FST Belize has its own brokerage customers, which include individuals and market-maker institution and conducted business with the Group through a client omnibus accounts at Freedom EU. The Group has terminated these operations with FST Belize before the end of fiscal 2024, leading to a decrease in related party transactions during three months ended June 30, 2024 and projected to be the main reason for a decrease in related party transactions moving forward. As of June 30, 2024, and March 31, 2024 the Group had loans issued which included uncollateralized bank customer loans purchased from a related party, FFIN Credit a company outside of the FRHC group which is controlled by Timur Turlov. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY During the three months ended June 30, 2024 the Company awarded stock grants totaling 186,967 shares, 42,597 of which were vested on the date of the award. The table below presents Stock Incentive Plan awards granted. Stock awards granted on: Units October 6, 2022 20,000 May 18, 2021 1,031,500 March 1, 2024 immediate stock awards 217,295 March 1, 2024 661,205 April 1, 2024 immediate stock grants 10,360 April 1, 2024 38,250 April 23, 2024 immediate stock awards 3,924 April 23, 2024 36,120 June 7, 2024 immediate stock awards 18,313 June 24, 2024 immediate stock awards 10,000 June 24, 2024 70,000 |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 3 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION The compensation expense related to restricted and non-restricted stock grants was $10,615 during the three months ended June 30, 2024, and $1,233 during the three months ended June 30, 2023. As of June 30, 2024 there was $49,256 of total unrecognized compensation cost related to non-vested shares of common stock granted . The cost is expected to be recognized over a weighted average period of 3.48 years. The compensation expense related to stock awards, which vested on the date of the award was $3,230 and $0 during the three months ended June 30, 2024 and June 30, 2023. The Company has determined the fair value of shares awarded during the three months ended June 30, 2024, using the Monte Carlo valuation model based on the following key assumptions: Stock awards granted Term (years) Volatility Risk-free rate April 1, 2024 4.82 36.62 % 4.36 % April 23, 2024 4.76 36.68 % 4.65 % June 24, 2024 4.59 36.89 % 4.31 % The table below summarizes the activity for the Company's stock awards outstanding during the three months ended June 30, 2024: Shares Weighted Outstanding, at March 31, 2024 983,205 57,598 Granted 186,967 12,969 Vested (168,797) (8,047) Forfeited/cancelled/expired — — Outstanding, at June 30, 2024 1,001,375 62,520 |
LEASES
LEASES | 3 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
LEASES | LEASES At June 30, 2024, the Group was obligated under a number of noncancellable leases, predominantly operating leases of office space, which expire at various dates through 2033. The Group's primary involvement with leases is in the capacity as a lessee where a Group lease premises to support its business. The Group determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. Operating lease liabilities and right-of-use (ROU) assets are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term. The future lease payments are discounted at a rate that estimates the Company’s collateralized borrowing rate for financing instruments of a similar term and are included in accounts payable and other liabilities. The operating lease ROU asset, included in premises and equipment, also includes any lease prepayments made, plus initial direct costs incurred, less any lease incentives received. The Company recognizes fixed lease costs on a straight-line basis throughout the lease term in the Consolidated Statement of Income. Certain of these leases also have extension or termination options, and the Company assess the likelihood of exercising such options. If it is reasonably certain that the Group will exercise the options to extend, then we include the impact in the measurement of our right-of-use assets and lease liabilities. When readily determinable, the Company uses the rate implicit in the lease to discount lease payments to present value; however, the rate implicit on most of the Group's leases are not readily determinable. Therefore, the Company must discount lease payments based on an estimate of its incremental borrowing rate. The table below presents the lease related assets and liabilities recorded on the Company's Condensed Consolidated Balance Sheets as of June 30, 2024: Classification on Balance Sheet June 30, 2024 March 31, 2024 Assets Operating lease assets Right-of-use asset $ 35,006 $ 36,324 Total lease assets $ 35,006 $ 36,324 Liabilities Operating lease liability Lease liability $ 35,390 $ 35,794 Total lease liability $ 35,390 $ 35,794 The following table presents as of June 30, 2024, the maturities of the lease liabilities: Leases maturing during the period ended March 31, 2025 $ 9,138 2026 11,987 2027 10,661 2028 6,626 2029 1,873 Thereafter 2,852 Total payments 43,137 Less: amounts representing interest (7,747) Lease liability, net $ 35,390 Weighted average remaining lease term (in months) 30 Weighted average discount rate 14 % Lease commitments for short-term operating leases as of June 30, 2024 and June 30, 2023 was a pproximately $1,896 and $152, respectively. The Group's rent expense for office space was $2,154 for the three months ended June 30, 2024, $860 for the three months ended June 30, 2023. The Group has leases that involve variable payments tied to an index, which are considered in the measurement of operating lease right-of-use (ROU) assets and operating lease liabilities. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal, Regulatory and Governmental Matters We are involved in various claims and legal proceedings that arise in the normal course of business. We recognize a liability when a loss is considered probable and the amount can be reasonably estimated. If a material loss contingency is reasonably possible but not probable, we do not record a liability but disclose the nature and amount of the claim, as well as an estimate of the potential loss, if such an estimate can be determined. Legal fees are recorded as expenses when incurred. While we do not anticipate that the resolution of any current claims or proceedings (except for the specific matters detailed below, if resolved unfavorably) will significantly impact our financial position, an adverse outcome in some or all of these cases could materially affect our results of operations or cash flows for specific periods. This assessment is based on our current understanding of relevant facts and circumstances, and our perspective on these matters may evolve with future developments. The Company accounts for potential losses related to litigation in accordance with FASB ASC Topic 450, “Contingencies.” As of June 30, 2024 and March 31, 2024, accruals for potential losses related to legal, regulatory and governmental actions and proceedings were not material. Settlement of the Estate of Toleush Tolmakov Case The Estate of Toleush Tolmakov (the “Estate”) commenced a legal action against Freedom Holding Corp., and our subsidiary FFIN Securities, Inc. in the Third Judicial District Court of Salt Lake County, State of Utah in December 2021. This proceeding relates to cash distributions arising from the 2011 sale of a subsidiary of BMB Munai, Inc. (the predecessor to Freedom Holding Corp.) and shares of common stock of the Company belonging to Toleush Tolmakov, who was a shareholder of the Company at the time he died in 2011, and a now defunct British Virgin Islands corporation, in which Mr. Tolmakov may have had an interest. The Company has held the relevant assets since Mr. Tolmakov's death because it does not know to whom they should be distributed and no party has yet established legal right of ownership of the assets. On October 21, 2022, in accordance with an order entered into by the Third Judicial District Court of Salt Lake County, we deposited an amount of $8.4 million into the registry of the court, representing the amount of cash distributions claimed by the Estate. We have recently formalized the settlement with the Estate which was approved by the Third Judicial District Court of Salt Lake County on July 24, 2024. All relevant legal claims between the parties have been dismissed or are in the process of being dismissed with prejudice under the relevant motions filed with the court. The outcome of this litigation was not material to the Company's financial condition. Off-balance sheet financial instruments Freedom Bank KZ is a party to certain off-balance sheet financial instruments. These financial instruments include guarantees and unused commitments under existing lines of credit. These commitments expose the Company to varying degrees of credit and market risk which are essentially the same as those involved in extending loans to customers, and are subject to the same credit policies used in underwriting loans. Collateral may be obtained based on Freedom Bank KZ's credit evaluation of the counterparty. The Company's maximum exposure to credit loss is represented by the contractual amount of these commitments. Unused commitments under lines of credit Unused commitments under lines of credit include commercial, commercial real estate, home equity and consumer lines of credit to existing customers. These commitments may mature without being fully funded. Unused commitments under guarantees Unused commitments under guarantees are conditional commitments issued by Freedom Bank KZ to provide bank guarantees to customers. These commitments may mature without being fully funded. Bank guarantees Bank guarantees are conditional commitments issued by Freedom Bank KZ to guarantee the performance of a customer to a third party. These guarantees are primarily issued to support trade transactions or guarantee arrangements. The credit risk involved in issuing guarantees is essentially the same as that involved in extending loan facilities to customers. A significant portion of the issued guarantees are collateralized by cash. Total lending related commitments outstanding as of June 30, 2024, and March 31, 2024, were as follows: As of June 30, 2024 As of March 31, 2024 Unused commitments under lines of credits and guarantees $ 263,874 $ 207,519 Bank guarantees 10,863 9,012 Total $ 274,737 $ 216,531 |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The following tables summarize the Group's Statement of Operations by its reportable segments. There are no revenues from transactions between the segments and intercompany balances have been eliminated for separate disclosure: Three months ended June 30, 2024 STATEMENTS OF OPERATIONS Brokerage Banking Insurance Other Total Fee and commission income $ 97,943 $ 2,796 $ 115 $ 14,635 $ 115,489 Net gain/(loss) on trading securities 874 (50,007) 139 (3,108) (52,102) Interest income 62,789 146,063 15,699 1,453 226,004 Insurance underwriting income — — 129,408 — 129,408 Net gain/(loss) on foreign exchange operations 9,957 (19,695) 1,120 16,707 8,089 Net gain on derivative 876 11,618 — — 12,494 Other income, net 2,477 427 782 7,647 11,333 TOTAL REVENUE, NET 174,916 91,202 147,263 37,334 450,715 Fee and commission expense 5,677 2,526 64,887 7,057 80,147 Interest expense 34,621 99,887 3,883 7,327 145,718 Insurance claims incurred, net of reinsurance — — 47,309 — 47,309 Payroll and bonuses 25,251 6,117 6,861 19,295 57,524 Professional services 2,389 96 277 4,506 7,268 Stock compensation expense 5,315 1,956 875 2,469 10,615 Advertising expense 11,944 1,064 350 3,843 17,201 General and administrative expense 10,213 12,385 5,218 17,289 45,105 (Recovery of)/provision for allowance for expected credit losses (329) (1,121) 325 (645) (1,770) TOTAL EXPENSE 95,081 122,910 129,985 61,141 409,117 INCOME BEFORE INCOME TAX $ 79,835 $ (31,708) $ 17,278 $ (23,807) $ 41,598 Income tax (expense)/benefit (10,204) 3,225 (3,475) 3,115 (7,339) NET INCOME $ 69,631 $ (28,483) $ 13,803 $ (20,692) $ 34,259 Three months ended June 30, 2023 STATEMENTS OF OPERATIONS Brokerage Banking Insurance Other Total Fee and commission income $ 63,972 $ 13,166 $ 42 $ 21,523 $ 98,703 Net gain/(loss) on trading securities 9,167 14,520 9,104 (975) 31,816 Interest income 32,209 99,094 16,008 2,038 149,349 Insurance underwriting income — — 44,889 — 44,889 Net gain/(loss) on foreign exchange operations 111 19,840 (429) (221) 19,301 Net (loss)/gain on derivative (5) (30,774) — 174 (30,605) Other income/(expense), net 616 (192) 763 1,570 2,757 TOTAL REVENUE, NET 106,070 115,654 70,377 24,109 316,210 Fee and commission expense 5,858 3,983 17,424 1,419 28,684 Interest expense 21,238 62,699 8,419 2,690 95,046 Insurance claims incurred, net of reinsurance — — 21,514 — 21,514 Payroll and bonuses 12,499 9,512 3,326 6,293 31,630 Professional services 2,327 80 126 4,092 6,625 Stock compensation expense 789 62 37 345 1,233 Advertising expense 4,788 2,036 145 1,131 8,100 General and administrative expense 8,457 6,398 1,249 8,371 24,475 Provision for allowance for expected credit losses 240 11,284 1,222 1,580 14,326 TOTAL EXPENSE 56,196 96,054 53,462 25,921 231,633 INCOME BEFORE INCOME TAX $ 49,874 $ 19,600 $ 16,915 $ (1,812) $ 84,577 Income tax (expense)/benefit (2,679) — 37 (14,014) (16,656) NET INCOME $ 47,195 $ 19,600 $ 16,952 $ (15,826) $ 67,921 The following tables summarize the Company's total assets and total liabilities by its business segments. Intercompany balances have been eliminated for separate disclosure: June 30, 2024 Brokerage Banking Insurance Other Total Total assets $ 2,887,774 $ 4,788,782 $ 545,868 $ 261,136 $ 8,483,560 Total liabilities 2,175,457 4,384,736 411,274 359,914 7,331,381 Net assets $ 712,317 $ 404,046 $ 134,594 $ (98,778) $ 1,152,179 March 31, 2024 Brokerage Banking Insurance Other Total Total assets $ 2,586,803 $ 4,939,626 $ 529,517 $ 245,984 $ 8,301,930 Total liabilities 1,973,887 4,389,745 402,865 368,475 7,134,972 Net assets $ 612,916 $ 549,881 $ 126,652 $ (122,491) $ 1,166,958 Brokerage Companies in the Brokerage segment offer securities brokerage, securities dealing for customers and for our own account, market making activities, investment research, investment counseling, underwriting and market-making services to a global client base of corporations, investors, financial institutions, merchants, government and municipal entities. Companies in the Brokerage segment also conduct proprietary securities trading. The Group's services in this segment include providing clients with access to the world's largest stock exchanges and a gateway to global investment opportunities. Additionally, the Group's offerings in this segment include professional securities analytics, empowering clients with valuable insights and market intelligence to make informed investment decisions. To ensure a seamless experience, the Group provides user-friendly trading applications that offer convenience and flexibility. Banking Company in the Banking segment generates banking service fees by providing services that include lending, deposit services, payment card services, money transfers, correspondent accounts, supporting both individual and corporate clients with innovative digital financial solutions. To ensure a seamless experience, it provides user-friendly trading applications that offer convenience and flexibility. Companies in the Banking segment also conduct proprietary securities trading activities. Insurance Companies in the Insurance segment offer products including life insurance, obligatory insurance, tourist medical health insurance and auto insurance. These insurance products are designed to offer comprehensive coverage and tailored solutions to protect individuals, property, auto and businesses in the event of unforeseen events or risks. Companies in the Insurance segment also conduct proprietary securities trading activities. Other Activities of companies in the Other segment include provision of payment processing services, financial educational center services, financial intermediary center services, financial consulting services, administrative management services, telecommunication services information processing services, entertainment ticketing sales, online air and railway ticket purchase aggregation and an online retail trade and e-commerce application. The Other segment also includes transactions conducted by the Company in connection with repurchase agreements. |
STATUTORY CAPITAL REQUIREMENTS
STATUTORY CAPITAL REQUIREMENTS | 3 Months Ended |
Jun. 30, 2024 | |
Broker-Dealer [Abstract] | |
STATUTORY CAPITAL REQUIREMENTS | STATUTORY CAPITAL REQUIREMENTS The Company has two insurance subsidiaries operating in Kazakhstan: Freedom Life (a regulated life insurer) and Freedom Insurance (a regulated property and casualty insurance entity). The Law of the Republic of Kazakhstan No. 126-II "On Insurance Activities" (the "Insurance Law") is the main law regulating the insurance sector in Kazakhstan. It establishes a framework for insurance activities, registration and licensing of insurance companies and regulation of insurance activities by the Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market (“ARDFM”). Freedom Life and Freedom Insurance are required to notify and receive verbal approval from the ARDFM of any proposals to declare or pay a dividend on its share capital. The amount of dividends these subsidiaries are permitted to declare is limited to the relevant subsidiary’s realized retained earnings and dividends can only be paid to the extent they will not cause a breach to the minimum solvency and capital requirements of the relevant subsidiary. As of June 30, 2024 and March 31, 2024, Freedom Life and Freedom Insurance were in compliance with the ARDFM dividend, minimum solvency and minimum capital requirements. Freedom KZ in its capacity of an insurance holding is also limited in declaration and payment of dividends if such payment leads to breach of capital ratios applicable to insurance companies Freedom Life and Freedom Insurance. There are no significant differences between the statutory accounting practices and statements prepared in accordance with U.S. GAAP for the insurance subsidiaries. In addition, our subsidiaries operate under various securities brokerage, banking and financial services regulations and must maintain such licenses in order to conduct their operations. As of June 30, 2024 and March 31, 2024, we, through our subsidiaries, held: (a) brokerage licenses (i) in Kazakhstan issued by ARDFM and the Astana Financial Services Authority (the "AFSA"), (ii) in Cyprus issued by the Cyprus Securities and Exchange Commission ("CySEC"), (iii) in the United States issued by FINRA, (iv) in Armenia issued by the Central Bank of Armenia, and (v) in Uzbekistan issued by the Ministry of Finance of the Republic of Uzbekistan; (b) a banking license for foreign currency operations license in Kazakhstan issued by the ARDFM; (c) a banking license for corporate and retail banking services in Kazakhstan issued by the ARDFM (including for currency exchange operations); and (d) payment service provider in Kazakhstan is specially registered in such capacity with National Bank of the Republic of Kazakhstan, payment services providers in Uzbekistan and Kyrgyzstan hold licenses from the National Bank of the Kyrgyz Republic and the Central Bank of Uzbekistan, respectively. The table below presents net capital/eligible equity, required minimum capital, excess regulatory capital and retained earnings as of June 30, 2024 for each of the regulated entities that is material for our condensed consolidated financial statements. (amounts in thousands) Regulated activities Net Capital/Eligible Equity Required Minimum capital/solvency Excess regulatory capital Retained earnings Freedom KZ Brokerage $ 98,663 $ 392 $ 98,271 $ 119,274 Freedom Bank KZ Bank 287,384 180,584 106,800 158,915 Freedom Life Life Insurance 42,612 11,746 30,866 65,887 Freedom EU Brokerage 269,057 10,971 258,086 567,393 Freedom Insurance Property and Casual Insurance 31,981 11,746 20,235 23,447 Freedom Global Brokerage 133,246 22,597 110,649 161,302 Freedom Armenia ("Freedom AR") Brokerage 13,055 775 12,280 12,791 Other regulated operating subsidiaries Other 9,304 154 9,150 (17,652) $ 885,302 $ 238,965 $ 646,337 $ 1,091,357 According to the requirements of National Bank of Republic of Kazakhstan, the regulator of Freedom KZ and Freedom Life, capital is adjusted through subtraction of non-liquid assets. Consequently, it may result that net capital for regulatory purposes may be lower than retained earnings balances. As per capital requirements Freedom EU regulated by The Cyprus Securities and Exchange Commission and Freedom Global regulated by Astana Financial Services Authority, current year profit is not included within net capital for regulatory purposes, as profits can only be included in net capital after a statutory audit is completed. The table below presents net capital/eligible equity, required minimum capital, excess regulatory capital and retained earnings as of March 31, 2024 for each of the regulated entities that is material for our condensed consolidated financial statements. (amounts in thousands) Regulated activities Net Capital/Eligible Equity Required Minimum capital/solvency Excess regulatory capital Retained earnings Freedom KZ Brokerage $ 107,064 $ 413 $ 106,651 $ 122,416 Freedom Bank KZ Bank 329,738 196,594 133,144 193,376 Freedom Life Life Insurance 50,757 12,395 38,362 57,085 Freedom EU Brokerage 269,424 10,868 258,556 319,484 Freedom Insurance Property and Casual Insurance 30,011 12,395 17,616 19,773 Freedom Global Brokerage 16,428 12,352 4,076 117,468 Freedom Armenia ("Freedom AR") Brokerage 7,317 763 6,554 6,447 Other regulated operating subsidiaries Other 8,533 155 8,378 (11,665) $ 819,272 $ 245,935 $ 573,337 $ 824,384 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company has performed an evaluation of subsequent events through the time of filing this quarterly report on Form 10-Q with the SEC. Other than as disclosed below, during this period the Company did not have any additional material recognizable subsequent events. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 34,400 | $ 68,102 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Accounting principles | Accounting principles The Group's accounting policies and accompanying consolidated financial statements conform to accounting principles generally accepted in the United States of America (U.S. GAAP). |
Basis of presentation and principles of consolidation | Basis of presentation and principles of consolidation The consolidated financial statements present the consolidated accounts of FRHC and its consolidated subsidiaries. All inter-company balances and transactions have been eliminated from the consolidated financial statements. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements, and related notes thereto, of the Group’s 2024 Annual Report on Form 10-K. Note 2 to the consolidated financial statements in Group’s 2024 Annual Report on Form 10-K contains a summary of all of Group’s significant accounting policies, except following amendments: |
Non-Consolidation of Freedom Securities Trading Inc. | Non-Consolidation of Freedom Securities Trading Inc. Freedom Securities Trading Inc. (formerly known as FFIN Brokerage Services, Inc.) ("FST Belize") is solely owned by Mr. Turlov since July 2014. The Company does not consolidate FST Belize under any of the primary consolidation methods - variable interest entity (“VIE”) accounting method and the voting interest method ("VOE") as (i) FST Belize is not a VIE due to the fact it has sufficient equity at risk to finance its activities without additional financial support and the control over its significant activities is held by its sole shareholder, Mr. Turlov, and (ii) Mr. Turlov has a controlling interest in FST Belize such that under the VOE model FRHC is not required to consolidate FST Belize. Except for Mr. Turlov, there are no other shareholders at FST Belize or parties with participating rights or the ability to remove Mr. Turlov from his ownership position or to make all decisions in respect of FST Belize. While prior to the end of the fiscal 2024 we had omnibus brokerage relationship with FST Belize, such relationship had been terminated as of March 31, 2024. |
Deconsolidation of Freedom Finance Ukraine LLC | Deconsolidation of Freedom Finance Ukraine LLC As at June 30, 2024, the Company owns a 9% interest in Freedom Finance Ukraine LLC ("Freedom UA"), a Kyiv, Ukraine-based broker-dealer. The remaining 91% interest in Freedom UA is controlled by Askar Tashtitov, the Company's president. The Company entered into a series of contractual arrangements with Freedom UA and Mr. Tashtitov, including a consulting services agreement, an operating agreement and an option agreement. Through March 31, 2023, the Company had consolidated Freedom UA into the financial statements of the Company. On October 19, 2022, Freedom UA was added to the Ukrainian government's sanctioned entities list, resulting in suspension of its brokerage license. Given the ongoing uncertainty surrounding the situation in Ukraine and based on the Company's management's belief that the Company does not maintain effective control over Freedom UA, the Company has accounted for the deconsolidation of Freedom UA since April 1, 2023 (the date of loss of control). |
Concentrations of Revenue | Concentrations of Revenue Revenues from one customer of the Group’s Brokerage segment represents the following amount of the Group’s consolidated revenues: Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Single non-related party $ 84,273 $ 35,074 |
Impairment of goodwill | Impairment of goodwill Goodwill is allocated to reporting units, which are identified as the operating segments or one level below operating segments that generate separate financial information regularly reviewed by management. The assignment of goodwill to reporting units allows for the assessment of potential impairment at the appropriate level within the organization. The Group has identified its reporting units based on its organizational and operational structure, as well as the level at which internal financial information is reviewed by management to make strategic decisions. In line with this, the reporting units have been established as follows: Brokerage Reporting Unit: This reporting unit represents the Group's operations in brokerage business. The management team responsible for the brokerage business regularly reviews financial information specific to this reporting unit, including revenue, expenses, and key performance indicators. Bank Reporting Unit: This reporting unit comprises the Group's operations in bank business. The management team responsible for the bank business reviews financial information related to this reporting unit, including revenue, expenses, and market trends. Insurance Reporting Unit: This reporting unit comprises the Group's operations in insurance business. The management team responsible for the insurance business reviews financial information related to this reporting unit, including revenue, expenses, and market trends. Other Reporting Unit: This reporting unit represents the Group's various businesses operations. The management team responsible for the Group's various businesses reviews financial information related to this reporting unit, including revenue, expenses, and market trends. Goodwill has been allocated to each reporting unit based on its relative fair value at the time of acquisition or significant triggering events. The fair value allocation of goodwill to reporting units is periodically reassessed to ensure alignment with the Group's evolving organizational structure and operational dynamics. The Group conducts impairment testing on an annual basis or whenever indicators of potential impairment arise. The impairment testing involves comparing the carrying amount of each subsidiary, including its allocated goodwill, to its fair value. If the carrying amount exceeds the fair value, an impairment loss is recognized. Further details regarding the measurement of goodwill impairment and the results of impairment tests for each reporting unit are provided below. The Group discloses information about the reporting units, the carrying amounts of goodwill allocated to each reporting unit, and the impairment losses recognized. The allocation of goodwill to reporting units ensures a focused evaluation of each unit's financial performance and facilitates the identification of potential impairment, enhancing the transparency and reliability of the Company's financial reporting. |
Recent accounting pronouncements | Recent accounting pronouncements In August 2018, the FASB issued ASU 2018-12, Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, as clarified and amended by (i) ASU 2019-09, Financial Services - Insurance (Topic 944): Effective Date, and (ii) ASU 2020-11, Financial Services - Insurance (Topic 944): Effective Date and Early Application (collectively referred to herein as ASU 2018-12). ASU 2018-12 changed existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts. ASU 2018-12 includes: (1) a requirement to review and, if there is a change, update cash flow assumptions used to measure the liability for future policy benefits (LFPB) at least annually, and to update the discount rate assumption quarterly, (2) a requirement to account for market risk benefits (MRBs) at fair value, (3) simplified amortization for deferred policy acquisition costs (DAC), and (4) enhanced financial statement presentation and disclosures. The amendments are now effective for SEC filers that are not small reporting companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. For all other entities the effective date is now for fiscal years beginning after December 15, 2024, or interim periods after December 15, 2025. As of November 15, 2019, the Company met the definition of a smaller reporting company. In March 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-02, “Investments-Equity method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method” (“ASU 2023-02”). These amendments allow reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years and early adoption is permitted. We do not expect ASU 2023-02 to have an impact to our consolidated financial statements. In August 2023, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2023-05, Business Combinations - Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement, which clarifies the business combination accounting for joint venture formations. The amendments in the ASU seek to reduce diversity in practice that has resulted from a lack of authoritative guidance regarding the accounting for the formation of joint ventures in separate financial statements. The amendments also seek to clarify the initial measurement of joint venture net assets, including businesses contributed to a joint venture. The guidance is applicable to all entities involved in the formation of a joint venture. The amendments are effective for all joint venture formations with a formation date on or after January 1, 2025. Early adoption and retrospective application of the amendments are permitted. We do not expect adoption of the new guidance to have a material impact on our consolidated financial statements and disclosures. In October 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2023-06 (“ASU 2023-06”), Disclosure Improvements - Codification Amendment in Response to the SEC’s Disclosure Update and Simplification Initiative. This ASU modified the disclosure and presentation requirements of a variety of codification topics by aligning them with the SEC’s regulations. The amendments to the various topics should be applied prospectively, and the effective date will be determined for each individual disclosure based on the effective date of the SEC’s removal of the related disclosure. If the SEC has not removed the applicable requirements from Regulation S-X or Regulation S-K by June 30, 2027, then this ASU will not become effective. Early adoption is prohibited. While the Company is currently evaluating the effect that implementation of this update will have on its consolidated financial statements, no material impact is anticipated. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which enhances reporting requirements under Topic 280. The enhanced disclosure requirements include: title and position of the Chief Operating Decision Maker (CODM), significant segment expenses provided to the CODM, extending certain annual disclosures to interim periods, clarifying single reportable segment entities must apply ASC 280 in its entirety, and permitting more than one measure of segment profit or loss to be reported under certain circumstances. This change is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024. This change will apply retrospectively to all periods presented. The Company is currently evaluating the impact ASU No 2024-02 will have on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets. The amendments in ASU No. 2023-08 are intended to improve the accounting for certain crypto assets by requiring an entity to measure those crypto assets at fair value each reporting period with changes in fair value recognized in net income. The amendments also improve the information provided to investors about an entity’s crypto asset holdings by requiring disclosure about significant holdings, contractual sale restrictions, and changes during the reporting period. The amendments are effective for all entities for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued (or made available for issuance). If an entity adopts the amendments in an interim period, it must adopt them as of the beginning of the fiscal year that includes that interim period. ASU No. 2023-08 requires a cumulative-effect adjustment to the opening balance of retained earnings (or other appropriate components of equity or net assets) as of the beginning of the annual reporting period in which an entity adopts the amendments. The Company is currently evaluating the impact ASU No 2024-02 will have on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which would require additional transparency for income tax disclosures, including the income tax rate reconciliation table and cash taxes paid both in the United States and foreign jurisdictions. This standard is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact ASU No 2024-02 will have on its consolidated financial statements and related disclosures. In March 2024, the FASB issued ASU 2024-01, Compensation - Stock Compensation (Topic 718), Scope Application of Profits Interest and Similar Awards. This standard provides clarity regarding whether profits interest and similar awards are within the scope of Topic 718 of the Accounting Standards Codification. This standard is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact ASU No 2024-02 will have on its consolidated financial statements and related disclosures. |
DESCRIPTION OF BUSINESS (Tables
DESCRIPTION OF BUSINESS (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule Of Wholly Owned Subsidiaries | As of June 30, 2024, the Company owned, directly or indirectly, the following companies: Name of subsidiary Jurisdiction of Incorporation Number of subsidiaries Business Area Brokerage Segment Freedom Finance JSC ("Freedom KZ") Kazakhstan 3 Securities broker-dealer Freedom Finance Global PLC ("Freedom Global") Kazakhstan — Securities broker-dealer Freedom Finance Europe Limited ("Freedom EU") Cyprus 2 Securities broker-dealer Freedom Finance Armenia LLC ("Freedom AR") Armenia — Securities broker-dealer Prime Executions, Inc. ("PrimeEx") USA — Securities broker-dealer Foreign Enterprise LLC Freedom Finance Uzbekistan — Securities broker-dealer Banking Segment Freedom Bank Kazakhstan JSC ("Freedom Bank KZ") Kazakhstan 1 Commercial bank Insurance Segment Freedom Finance Life JSC ("Freedom Life") Kazakhstan — Life/health insurance Freedom Finance Insurance JSC ("Freedom Insurance") Kazakhstan — General insurance Other Segment Ticketon Events LLP ("Ticketon") Kazakhstan 3 Online ticket sales Freedom Finance Special Purpose Company LTD ("Freedom SPC") Kazakhstan — Issuance of debt securities Freedom Finance Commercial LLP Kazakhstan — Sales consulting Freedom Technologies LLP ("Paybox") Kazakhstan 5 Payment services Aviata LLP ("Aviata") Kazakhstan — Online travel ticket aggregator Internet-Tourism LLP ("Internet Tourism") Kazakhstan — Online travel ticket aggregator Arbuz Group LLP ("Arbuz") Kazakhstan 3 Online retail trade and e-commerce Comrun LLP ("ReKassa") Kazakhstan — Mobile and web application Freedom Telecom Holding Limited ("Freedom Telecom") Kazakhstan 3 Telecommunications Freedom Kazakhstan PC Ltd Kazakhstan 8 Holding company Freedom Advertising Ltd Kazakhstan — Advertising Freedom Shapagat Corporate Fund Kazakhstan — Non-profit FRHC Fractional SPC LTD Kazakhstan — Issuance of debt securities Freedom Holding Operations LLP Kazakhstan — Hiring and recruitment Freedom Horizons LLP Kazakhstan — Business consulting and services Freedom Finance Azerbaijan LLC Azerbaijan — Financial educational center Freedom Finance FZE. UAE — Consulting Freedom Management Ltd. UAE — Consulting Freedom Finance Turkey LLC Turkey — Financial consulting Freedom Finance Technologies Ltd Cyprus — IT development Freedom Prime UK Limited ("Prime UK") UK — Management consulting Freedom Structured Products PLC Cyprus — Financial services FFIN Securities, Inc. USA — Dormant Freedom U.S. Market LLC USA 1 Management company LD Micro ("LD Micro") USA — Event platform |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Revenue by Major Customers by Reporting Segments | Revenues from one customer of the Group’s Brokerage segment represents the following amount of the Group’s consolidated revenues: Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Single non-related party $ 84,273 $ 35,074 |
Schedule of changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill for three months ended June 30, 2024 and 2023, were as follows: Brokerage Bank Insurance Other Total Goodwill, gross Balance as of March 31, 2023 $ 2,677 $ 2,652 $ 980 $ 8,715 $ 15,024 Write-off due to deconsolidation of Freedom UA — — — (832) (832) Foreign currency translation difference (1) — — — (1) Acquired — — — 36,760 36,760 Balance as of June 30, 2023 $ 2,676 $ 2,652 $ 980 $ 44,643 $ 50,951 Balance as of March 31, 2024 $ 2,688 $ 2,746 $ 1,040 $ 46,174 $ 52,648 Forex (55) (5) (55) (1,942) (2,057) Acquired — — — — — Balance as of June 30, 2024 $ 2,633 $ 2,741 $ 985 $ 44,232 $ 50,591 Accumulated impairment Balance as of March 31, 2023 $ — $ — $ — $ 832 $ 832 Impairment expense — — — — — Write-off due to deconsolidation of Freedom UA — — — (832) (832) Balance as of June 30, 2023 $ — $ — $ — $ — $ — Balance as of March 31, 2024 $ — $ — $ — $ — $ — Impairment expense — — — — — Balance as of June 30, 2024 $ — $ — $ — $ — $ — Goodwill, net of impairment Balance as of June 30, 2023 $ 2,676 $ 2,652 $ 980 $ 44,643 $ 50,951 Balance as of March 31, 2024 $ 2,688 $ 2,746 $ 1,040 $ 46,174 $ 52,648 Balance as of June 30, 2024 $ 2,633 $ 2,741 $ 985 $ 44,232 $ 50,591 |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash and cash equivalents | As of June 30, 2024, and March 31, 2024, cash and cash equivalents consisted of the following: June 30, 2024 March 31, 2024 Short term deposits in National Bank (Kazakhstan) $ 292,154 $ 196,942 Short term deposits in commercial banks 202,830 127,051 Securities purchased under reverse repurchase agreements 150,960 134,961 Petty cash in bank vault and on hand 40,099 22,613 Overnight deposits 14,465 3,557 Cash in transit 7,210 9,633 Short term deposits in stock exchanges 5,062 47,830 Short term deposits on brokerage accounts 5,586 2,917 Short term deposits in the Central Depository (Kazakhstan) 551 42 Allowance for Cash and cash equivalents (239) (462) Total cash and cash equivalents $ 718,678 $ 545,084 |
Schedule of repurchase agreements | The terms of the short-term collateralized securities received under reverse repurchase agreements as of June 30, 2024, and March 31, 2024 are presented below: June 30, 2024 Interest rates and remaining contractual maturity of the agreements Average interest rate Up to 30 days Total Securities purchased under reverse repurchase agreements Corporate equity 14.08 % 104,509 104,509 Corporate debt 3.53 % 31,398 31,398 US sovereign debt 7.95 % 10,302 10,302 Non-US sovereign debt 3.30 % 4,751 $ 4,751 Total $ 150,960 $ 150,960 March 31, 2024 Interest rates and remaining contractual maturity of the agreements Average interest rate Up to 30 days Total Securities purchased under reverse repurchase agreements Corporate equity 14.57 % $ 96,647 $ 96,647 US sovereign debt 4.77 % 16,885 16,885 Non-US sovereign debt 4.45 % 12,468 12,468 Corporate debt 5.31 % 8,961 8,961 Total $ 134,961 $ 134,961 |
RESTRICTED CASH (Tables)
RESTRICTED CASH (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Restricted Cash [Abstract] | |
Schedule of restrictions on cash | As of June 30, 2024, and March 31, 2024, restricted cash consisted of the following:: June 30, 2024 March 31, 2024 Brokerage customers’ cash $ 1,099,041 $ 366,260 Guaranty deposits 81,125 97,052 Restricted bank accounts 8,161 8,079 Due from banks 6,167 6,374 Deferred distribution payment 23 23 Allowance for restricted cash (15,007) (15,151) Total restricted cash $ 1,179,510 $ 462,637 |
TRADING AND AVAILABLE-FOR-SAL_2
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Debt Securities, Trading, and Equity Securities, FV-NI [Abstract] | |
Schedule of trading and available-for-sale securities | As of June 30, 2024, and March 31, 2024, trading and available-for-sale securities consisted of: June 30, 2024 March 31, 2024 Non-U.S. sovereign debt $ 2,135,862 $ 2,409,126 Corporate debt 1,084,410 1,108,870 Corporate equity 123,520 126,103 U.S. sovereign debt 43,452 43,173 Exchange traded notes 6,692 1,348 Total trading securities $ 3,393,936 $ 3,688,620 June 30, 2024 March 31, 2024 Corporate debt $ 194,327 $ 173,568 Non-U.S. sovereign debt 52,413 27,016 U.S. sovereign debt 16,120 16,037 Total available-for-sale securities, at fair value $ 262,860 $ 216,621 |
Schedule of maturity of available for sale securities | The following tables present maturity analysis for available-for-sale securities as of June 30, 2024, and March 31, 2024: June 30, 2024 Remaining contractual maturity of the agreements Up to 1 year 1-5 years 5-10 years More than 10 years Total Corporate debt 37,704 86,644 59,322 10,657 194,327 Non-US sovereign debt 14,240 17,884 13,643 6,646 52,413 US sovereign debt — 5,132 9,798 1,190 16,120 Total available-for-sale securities, at fair value $ 51,944 $ 109,660 $ 82,763 $ 18,493 $ 262,860 March 31, 2024 Remaining contractual maturity of the agreements Up to 1 year 1-5 years 5-10 years More than 10 years Total Corporate debt 65,415 44,374 59,553 4,226 173,568 Non-US sovereign debt 7,839 7,310 5,797 6,070 27,016 US sovereign debt — 5,059 9,753 1,225 16,037 Total available-for-sale securities, at fair value $ 73,254 $ 56,743 $ 75,103 $ 11,521 $ 216,621 |
Schedule of present securities assets at fair value | The following tables present securities assets in the Сondensed Сonsolidated Balance Sheets or disclosed in the Notes to the condensed consolidated financial statements at fair value on a recurring basis as of June 30, 2024, and March 31, 2024: Weighted Average Total Fair Value Measurements as of June 30, 2024 using Quoted Prices in Significant Significant Unobservable (Level 1) (Level 2) (Level 3) Non-U.S. sovereign debt 12.43 % $ 2,135,862 $ 1,455,803 $ 680,059 $ — Corporate debt 14.52 % 1,084,410 242,177 842,016 217 Corporate equity 123,520 101,371 3,717 18,432 U.S. sovereign debt 4.19 % 43,452 43,452 — — Exchange traded notes 6,692 5,853 839 — Total trading securities $ 3,393,936 $ 1,848,656 $ 1,526,631 $ 18,649 Corporate debt 14.96 % $ 194,327 $ 31,643 $ 162,684 $ — Non-US sovereign debt 11.73 % 52,413 45,027 7,386 — US sovereign debt 4.60 % 16,120 16,120 — — Total available-for-sale securities, at fair value $ 262,860 $ 92,790 $ 170,070 $ — Weighted Average Interest Rate Total Fair Value Measurements as of March 31, 2024 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Units (Level 1) (Level 2) (Level 3) Non-U.S. sovereign debt 11.61 % $ 2,409,126 $ 1,592,380 $ 816,746 $ — Corporate debt 14.83 % 1,108,870 171,218 937,360 292 Corporate equity 126,103 102,134 3,819 20,150 U.S. sovereign debt 4.98 % 43,173 43,173 — — Exchange traded notes 1,348 1,045 303 — Total trading securities $ 3,688,620 $ 1,909,950 $ 1,758,228 $ 20,442 Corporate debt 15.53 % $ 173,568 $ 47,135 $ 126,433 $ — Non-U.S. sovereign debt 10.48 % 27,016 12,378 14,638 — U.S. sovereign debt 3.54 % 16,037 16,037 — — Total available-for-sale securities, at fair value $ 216,621 $ 75,550 $ 141,071 $ — |
Schedule of valuation techniques and significant level 3 inputs | The tables below present the valuation techniques and significant level 3 inputs used in the valuation as of June 30, 2024, and March 31, 2024. The tables are not intended to be all inclusive, but instead capture the significant unobservable inputs relevant to determination of fair value. Type Valuation Technique FV as of June 30, 2024 Significant Unobservable Inputs % Corporate debt DCF 217 Discount rate 74.0% Estimated number of years 3 months Corporate equity DCF 18,296 Discount rate 13.0% Estimated number of years 4 years, 6 months Termination multiplier 27x Corporate equity DCF 136 Discount rate 58.8% Estimated number of years 9 years Total $ 18,649 Type Valuation Technique FV as of March 31, 2024 Significant Unobservable Inputs % Corporate debt DCF $ 292 Discount rate 74.0% Estimated number of years 3 months Corporate equity DCF 20,007 Discount rate 13.0% Estimated number of years 4 years, 6 months Termination multiplier 27x Corporate equity DCF 143 Discount rate 58.8% Estimated number of years 9 years Total $ 20,442 The following table provides a reconciliation of the beginning and ending balances for investments that use Level 3 inputs for the three months ended June 30, 2024, and the year ended March 31, 2024: Trading securities Balance as of March 31, 2023 $ 5,138 Reclassification to Level 2 $ (32) Deconsolidation of Freedom UA securities (3,927) Sale of investments that use Level 3 inputs (15,856) Purchase of investments that use Level 3 inputs 35,807 Revaluation of investments that use Level 3 inputs (132) Reclassification to investment in associate (556) Balance as of March 31, 2024 $ 20,442 Reclassification to level 2 — Sale of investments that use Level 3 inputs — Purchase of investments that use Level 3 inputs — Revaluation of investments that use Level 3 inputs (1,792) Balance as of June 30, 2024 $ 18,650 |
Schedule of amortized cost, unrealized gains and losses accumulated in other comprehensive income, and fair value of available-for-sale securities | The table below presents the amortized cost, unrealized gains and losses accumulated in other comprehensive income, and fair value of available-for-sale securities as of June 30, 2024, and March 31, 2024: June 30, 2024 Assets measured at amortized cost Accumulated impairment loss Unrealized loss accumulated in other comprehensive Assets Maturity Date Corporate debt $ 193,160 $ (51) $ 1,218 $ 194,327 2024-2039 Non-US sovereign debt 54,123 (312) (1,398) 52,413 2024-indefinite U.S. sovereign debt 16,883 — (763) 16,120 2027-2044 Total available-for-sale securities, at fair value $ 264,166 $ (363) (943) $ 262,860 March 31, 2024 Assets measured at amortized cost Accumulated impairment loss Unrealized loss accumulated in other comprehensive Assets Maturity Date Corporate debt $ 172,689 $ (61) $ 940 $ 173,568 2024-2039 Non-U.S. sovereign debt 29,121 (352) $ (1,753) 27,016 2024-indefinite U.S. sovereign debt 16,767 — $ (730) 16,037 2027-2044 Total available-for-sale securities, at fair value $ 218,577 $ (413) $ (1,543) $ 216,621 |
MARGIN LENDING, BROKERAGE AND_2
MARGIN LENDING, BROKERAGE AND OTHER RECEIVABLES, NET (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of brokerage and other receivables | Margin lending, brokerage and other receivables as of June 30, 2024, and March 31, 2024, consisted of: June 30, 2024 March 31, 2024 Margin lending receivables $ 1,193,193 $ 1,635,377 Receivables from payment processing services 8,900 5,351 Bank commissions receivable 7,966 11,574 Bond coupon receivable and dividends accrued 4,641 5,429 Receivables from brokerage clients 2,889 2,603 Other receivables 13,533 11,931 Allowance for receivables (13,237) (11,990) Total margin lending, brokerage and other receivables, net $ 1,217,885 $ 1,660,275 |
LOAN ISSUED (Tables)
LOAN ISSUED (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans issued as of June 30, 2024, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Loan Currency Mortgage loans $ 724,295 July 2024 - June 2049 10.3% $ 724,294 KZT Car loans 227,234 July 2024 - April 2032 23.9% 224,380 KZT Uncollateralized bank customer loans 231,833 July 2024 - June 2044 27.7% — KZT Right of claim for purchased retail loans 134,333 July 2024 - August 2029 15.0% 134,333 KZT Collateralized bank customer loans 29,102 July 2024 - July 2043 19.3% 27,982 KZT Subordinated loan 5,038 December 2025 3.0% — USD Other 2,803 August 2024 - January 2029 18.6%/15.0%/2.5% 33 KZT/USD/EUR Allowance for loans issued (40,086) Total loans issued $ 1,314,552 Loans issued as of March 31, 2024, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Loan Currency Mortgage loans $ 741,312 April, 2024 - March, 2049 10.3% $ 740,462 KZT Car loans 262,708 April, 2024 - March, 2031 23.9% 259,755 KZT Uncollateralized bank customer loans 245,188 April, 2024 - March, 2044 27.4% — KZT Right of claim for purchased retail loans 146,152 April, 2024 - March, 2029 15.0% 146,152 KZT Collateralized bank customer loans 22,299 June, 2024 - July, 2043 19.1% 22,270 KZT Subordinated loan 5,037 December, 2025 3.0% — USD Other 2,638 April, 2024 - January, 2029 18.6%/15.0%/2.5% 18 KZT/USD/EUR Allowance for loans issued (43,619) Total loans issued $ 1,381,715 |
Financing Receivable Credit Quality Indicators | The table below presents the Group's loan portfolio by credit quality classification and origination year as of June 30, 2024. Current vintage disclosure is the requirement due to first adoption of ASC 326. Term Loans by Origination Year 2025 2024 2023 2022 2021 Prior Revolving loans Total Mortgage loans $ 37,141 $ 223,214 $ 426,566 $ 37,374 $ — $ — $ — $ 724,295 that are not credit impaired 37,141 221,389 423,582 37,002 719,114 with significant increase in credit risk — 1,322 1,627 298 3,247 that are credit impaired — 503 1,357 74 1,934 Car loans 661 170,230 56,343 — — — — 227,234 that are not credit impaired 661 165,792 45,318 211,771 with significant increase in credit risk — 1,990 1,741 3,731 that are credit impaired — 2,448 9,284 11,732 Uncollateralized bank customer loans 18,126 183,176 30,524 7 — — — 231,833 that are not credit impaired 18,058 168,030 25,547 — 211,635 with significant increase in credit risk 68 4,559 1,030 — 5,657 that are credit impaired — 10,587 3,947 7 14,541 Right of claim for purchased retail loans 36,886 87,911 9,436 100 — — — 134,333 that are not credit impaired 36,886 87,911 9,436 100 134,333 with significant increase in credit risk — — — — — that are credit impaired — — — — — Collateralized bank customer loans 11,615 17,223 264 — — — — 29,102 that are not credit impaired 11,615 17,095 264 28,974 with significant increase in credit risk — 128 — 128 that are credit impaired — — — — Subordinated loan — — 5,038 — — — — 5,038 that are not credit impaired — — 5,038 5,038 with significant increase in credit risk — — — — that are credit impaired — — — — Other 215 2,371 154 63 — — — 2,803 that are not credit impaired 215 2,362 154 63 2,794 with significant increase in credit risk — — — — — that are credit impaired — 9 — — 9 Total $ 104,644 $ 684,125 $ 528,325 $ 37,544 $ — $ — $ — $ 1,354,638 The table below presents the Group's loan portfolio by credit quality classification as of March 31, 2024. Term Loans by Origination Year 2024 2023 2022 2021 2020 Prior Revolving loans Total Mortgage loans $ 241,848 $ 458,401 $ 41,063 $ — $ — $ — $ — $ 741,312 that are not credit impaired 240,974 454,933 40,784 — — — — 736,691 with significant increase in credit risk 676 2,415 111 — — — — 3,202 that are credit impaired 198 1,053 168 — — — — 1,419 Car loans 196,305 66,403 — — — — — 262,708 that are not credit impaired 193,302 55,427 — — — — — 248,729 with significant increase in credit risk 1,590 2,232 — — — — — 3,822 that are credit impaired 1,413 8,744 — — — — — 10,157 Uncollateralized bank customer loans 210,612 34,568 8 — — — — 245,188 that are not credit impaired 200,211 30,337 — — — — — 230,548 with significant increase in credit risk 4,715 1,072 — — — — — 5,787 that are credit impaired 5,686 3,159 8 — — — — 8,853 Right of claim for purchased retail loans 130,291 15,694 167 — — — — 146,152 that are not credit impaired 130,291 15,694 167 — — — — 146,152 with significant increase in credit risk — — — — — — — — that are credit impaired — — — — — — — — Collateralized bank customer loans 21,972 327 — — — — — 22,299 that are not credit impaired 21,796 327 — — — — — 22,123 with significant increase in credit risk 89 — — — — — — 89 that are credit impaired 87 — — — — — — 87 Subordinated loan — 5,037 — — — — — 5,037 that are not credit impaired — 5,037 — — — — — 5,037 with significant increase in credit risk — — — — — — — — that are credit impaired — — — — — — — — Other 2,404 165 69 — — — — 2,638 that are not credit impaired 2,395 165 69 — — — — 2,629 with significant increase in credit risk — — — — — — — — that are credit impaired 9 — — — — — — 9 Total $ 803,432 $ 580,595 $ 41,307 $ — $ — $ — $ — $ 1,425,334 |
Financing Receivable, Past Due | Aging analysis of past due loans as of June 30, 2024 and March 31, 2024, is as follows: June 30, 2024 Loans 30-59 Days past due Loans 60-89 days past due Loans 90 days or more past due and still accruing Current loans Total Mortgage loans $ 1,762 $ 1,485 $ 1,934 $ 719,114 $ 724,295 Car loans 2,006 1,725 11,732 211,771 227,234 Uncollateralized bank customer loans 3,021 2,636 14,541 211,635 231,833 Right of claim for purchased retail loans — — — 134,333 134,333 Collateralized bank customer loans 99 29 — 28,974 29,102 Subordinated loan — — — 5,038 5,038 Other — — 9 2,794 2,803 Total $ 6,888 $ 5,875 $ 28,216 $ 1,313,659 $ 1,354,638 March 31, 2024 Loans 30-59 Days past due Loans 60-89 days past due Loans 90 days or more past due and still accruing Current loans Total Mortgage loans $ 2,133 $ 1,069 $ 1,419 $ 736,691 $ 741,312 Car loans 2,167 1,655 10,157 248,729 262,708 Uncollateralized bank customer loans 3,576 2,211 8,853 230,548 245,188 Right of claim for purchased retail loans — — — 146,152 146,152 Collateralized bank customer loans — 89 87 22,123 22,299 Subordinated loan — — — 5,037 5,037 Other — — 9 2,629 2,638 Total $ 7,876 $ 5,024 $ 20,525 $ 1,391,909 $ 1,425,334 |
Financing Receivable, Allowance for Credit Loss | The activity in the allowance for credit losses for the three months ended June 30, 2024 and 2023 is summarized in the following tables. Allowance for credit losses Mortgage loan Uncollateralized bank customer loans Collateralized bank customer loans Car loans Right of claim for purchased retail loans Other Total March 31, 2024 $ (3,033) $ (19,636) $ (80) $ (14,262) $ (6,577) $ (31) $ (43,619) Charges (728) (6,389) (116) (1,526) (1,490) (6) (10,255) Recoveries 295 3,733 20 3,938 3,473 11,459 Write off — — 4 109 — — 113 Forex 180 1,160 9 621 246 2,216 June 30, 2024 $ (3,286) $ (21,132) $ (163) $ (11,120) $ (4,348) $ (37) $ (40,086) Allowance for credit losses Mortgage loan Uncollateralized bank customer loans Collateralized bank customer loans Car loans Right of claim for purchased retail loans Other Total March 31, 2023 $ (554) $ (233) $ — $ (758) $ (1,247) $ — $ (2,792) Adjustment to allowance for adoption of ASU 2016-13 (2,216) (7,436) (35) (6,462) (9,046) — (25,195) Charges — (7,755) (55) (2,948) (5,346) (3,261) (19,365) Recoveries 284 1,602 8 272 3,345 — 5,511 Forex 3 64 2 34 34 — 137 June 30, 2023 $ (2,483) $ (13,758) $ (80) $ (9,862) $ (12,260) $ (3,261) $ (41,704) |
SECURITIES REPURCHASE AGREEME_2
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Securities Sold under Agreements to Repurchase [Abstract] | |
Schedule of securities under repurchase agreement obligations | As of June 30, 2024, and March 31, 2024, trading securities included collateralized securities subject to repurchase agreements as described in the following table: June 30, 2024 Interest rates and remaining contractual maturity of the agreements Average interest rate Up to 30 days 30-90 days Total Securities sold under repurchase agreements Non-US sovereign debt 13.63 % 1,419,612 224,742 1,644,354 Corporate debt 13.64 % 748,007 156,580 904,587 US sovereign debt 13.50 % 9,853 — 9,853 Total securities sold under repurchase agreements $ 2,177,472 $ 381,322 $ 2,558,794 March 31, 2024 Interest rate and remaining contractual maturity of the agreements Average interest rate Up to 30 days 30-90 days Total Securities sold under repurchase agreements Non-US sovereign debt 13.78 % $ 1,545,080 $ 259,948 $ 1,805,028 Corporate debt 13.84 % 923,752 14,644 938,396 US sovereign debt 3.06 % 13,172 — 13,172 Total securities sold under repurchase agreements $ 2,482,004 $ 274,592 $ 2,756,596 |
CUSTOMER LIABILITIES (Tables)
CUSTOMER LIABILITIES (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Contract with Customer, Liability [Abstract] | |
Schedule of customer liabilities | The Group recognizes customer liabilities associated with deposit funds of its brokerage and bank customers. As of June 30, 2024, and March 31, 2024 , customer liabilities consisted of: June 30, 2024 March 31, 2024 Amount Interest Amount Interest Interest bearing deposits: Term deposits $ 1,355,385 0.1% - 17.3% $ 1,221,072 0.04% - 17.3% Total Interest bearing deposits $ 1,355,385 $ 1,221,072 Non-interest-bearing deposits: Brokerage customers $ 973,577 $ 742,902 Current customer accounts 370,950 309,856 Total non-interest-bearing accounts $ 1,344,527 $ 1,052,758 Total customer liabilities $ 2,699,912 $ 2,273,830 |
MARGIN LENDING AND TRADE PAYA_2
MARGIN LENDING AND TRADE PAYABLES (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Accounts Payable [Abstract] | |
Schedule of trade payables | As of June 30, 2024, and March 31, 2024 , margin lending and trade payables of the Group were comprised of the following: June 30, 2024 March 31, 2024 Margin lending payable $ 809,409 $ 839,454 Payables to merchants 12,379 13,475 Payables to suppliers of goods and services 9,005 10,525 Trade payable for securities purchased 464 485 Other 5,052 3,941 Total margin lending and trade payables $ 836,309 $ 867,880 |
DEBT SECURITIES ISSUED (Tables)
DEBT SECURITIES ISSUED (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Debt Securities [Abstract] | |
Schedule of outstanding debt securities of the company | As of June 30, 2024, and March 31, 2024, outstanding debt securities issued by the Group included the following: Debt securities issued by: June 30, 2024 March 31, 2024 Interest rate Issue date Maturity date Freedom SPC bonds due 2028 $ 200,366 $ 200,386 1-2 years: 12% 3-5 years: EFFR + 6.5% December, 2023 December, 2028 Freedom SPC bonds due 2026 64,610 64,546 5.5% October, 2021 October, 2026 Accrued interest 1,422 2,319 Total debt securities issued $ 266,398 $ 267,251 |
INSURANCE CONTRACTS ASSETS AN_2
INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Insurance [Abstract] | |
Insurance and reinsurance receivables | As of June 30, 2024, and March 31, 2024, insurance and reinsurance receivables of the Group was comprised of the following: June 30, 2024 March 31, 2024 Assets: Amounts due from policyholders $ 9,624 $ 10,260 Amounts due from reinsured 3,185 2,274 Advances received from agent 1,602 3,231 Claims receivable from reinsurance 1,541 1,400 Allowance for estimated uncollectible reinsurance (1,168) (1,045) Insurance and reinsurance receivables: 14,784 16,120 Unearned premium reserve, reinsurers’ share 4,929 4,770 Reserves for claims and claims’ adjustment expenses, reinsurers’ share 5,236 4,032 Total $ 24,949 $ 24,922 |
Insurance and reinsurance payables | As of June 30, 2024, and March 31, 2024, insurance and reinsurance payable of the Group was comprised of the following: June 30, 2024 March 31, 2024 Liabilities: Amounts payable to agents and brokers $ 5,955 $ 6,334 Amounts payable to insurers 3,983 4,294 Amounts payable to reinsured 786 2,771 Insurance and reinsurance payables: 10,724 13,399 Unearned premium reserve 70,518 60,088 Reserves for claims and claims’ adjustment expenses 239,152 223,693 Total $ 320,394 $ 297,180 |
FEE AND COMMISSION INCOME (Tabl
FEE AND COMMISSION INCOME (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disclosure of fee and commission income | During the three months ended June 30, 2024, and June 30, 2023, fee and commission income was comprised of: Three months ended June 30, 2024 Brokerage Banking Insurance Other Total Brokerage services $ 93,167 $ — $ — $ — $ 93,167 Commission income from payment processing — — — 8,563 8,563 Underwriting and market-making services 4,702 — — — 4,702 Bank services — 2,516 — — 2,516 Other fee and commission income 74 280 115 6,072 6,541 Total fee and commission income $ 97,943 $ 2,796 $ 115 $ 14,635 $ 115,489 Three months ended June 30, 2023 Brokerage Banking Insurance Other Total Brokerage service $ 55,082 $ — $ — $ — $ 55,082 Commission income from payment processing — — — 18,042 18,042 Bank services — 12,841 — — 12,841 Underwriting and market-making services 8,831 — — — 8,831 Other fee and commission income 59 325 42 3,481 3,907 Total fee and commission income $ 63,972 $ 13,166 $ 42 $ 21,523 $ 98,703 |
NET (LOSS)_GAIN ON TRADING SE_2
NET (LOSS)/GAIN ON TRADING SECURITIES (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of net gain on trading securities | During the three months ended June 30, 2024, and June 30, 2023, net (loss)/gain on trading securities was comprised of: Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Net unrealized (loss)/gain recognized during the reporting period on trading securities still held at the reporting date $ (64,943) $ 20,951 Net gain recognized during the period on trading securities sold during the period 12,841 10,865 Net (loss)/gain recognized during the period on trading securities $ (52,102) $ 31,816 |
NET INTEREST INCOME_EXPENSE (Ta
NET INTEREST INCOME/EXPENSE (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Interest Income and Interest Expense Disclosure | Net interest income/expense for the three months ended June 30, 2024, and June 30, 2023 includes: Three months ended June 30, 2024 Three months ended June 30, 2023 Interest income: Interest income on trading securities 107,128 $ 86,840 Interest income on loans to customers 52,367 31,333 Interest income on margin loans to customers 51,067 17,180 Interest income on securities available-for-sale 8,400 8,345 Interest income on reverse repurchase agreements and amounts due from banks 7,042 3,057 Other interest income — 2,594 Total interest income $ 226,004 $ 149,349 Interest expense: Interest expense on securities repurchase agreement obligations $ 92,407 $ 75,455 Interest expense on customer accounts and deposits 23,127 15,603 Interest expense on margin lending payable 23,123 2,993 Interest expense on debt securities issued 6,969 935 Interest expense on loans received 44 27 Other interest expense 48 33 Total interest expense $ 145,718 $ 95,046 Net interest income $ 80,286 $ 54,303 |
NET GAIN_(LOSS) ON DERIVATIVES
NET GAIN/(LOSS) ON DERIVATIVES (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments, Gain (Loss) | Three months ended June 30, 2024 Three months ended June 30, 2023 Net realized gain/(loss) on derivatives $ 4,344 $ (27,493) Net unrealized gain/(loss) on derivatives 8,150 (3,112) Total net gain/(loss) on derivatives $ 12,494 $ (30,605) |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | June 30, 2024 March 31, 2024 Related party balances Total category as per financial statements captions Related party balances Total category as per financial statements captions ASSETS Cash and cash equivalents $ 257 $ 718,678 $ 203 $ 545,084 Companies controlled by management 257 203 Restricted cash $ 1,121 $ 1,179,510 $ — $ 462,637 Management 357 — Companies controlled by management 576 — Other 188 — Trading securities $ 1,256 $ 3,393,936 $ 1,326 $ 3,688,620 Companies controlled by management 1,256 1,326 Margin lending, brokerage and other receivables, net $ 37,836 $ 1,217,885 $ 22,039 $ 1,660,275 Management 9,037 8,849 Companies controlled by management 28,799 13,190 Loans issued $ 136,558 $ 1,314,552 $ 147,440 $ 1,381,715 Management 1,094 117 Companies controlled by management 135,464 147,323 Other assets, net $ 23,057 $ 139,584 $ 5,257 $ 102,414 Management 2 — Companies controlled by management 23,055 5,257 LIABILITIES Customer liabilities $ 84,970 $ 2,699,912 $ 44,127 $ 2,273,830 Management 10,659 12,604 Companies controlled by management 73,421 31,253 Other 890 270 Other liabilities $ 8,349 $ 68,040 $ 9,854 $ 81,560 Management 7,967 7,947 Companies controlled by management 380 1,907 Other 2 — Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Related party amounts Total category as per financial statements captions Related party amounts Total category as per financial statements captions Revenue: Fee and commission income $ 866 $ 115,489 $ 15,896 $ 98,703 Management 219 285 Companies controlled by management 645 15,611 Other 2 — Interest income $ 270 $ 226,004 $ 5,352 $ 149,349 Management 205 72 Companies controlled by management 65 5,280 Expense: General and administrative expenses $ 2,725 $ 45,105 $ 478 $ 24,475 Management 233 163 Companies controlled by management 2,492 315 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Share-Based Payment Arrangement, Restricted Stock Unit, Activity | The table below presents Stock Incentive Plan awards granted. Stock awards granted on: Units October 6, 2022 20,000 May 18, 2021 1,031,500 March 1, 2024 immediate stock awards 217,295 March 1, 2024 661,205 April 1, 2024 immediate stock grants 10,360 April 1, 2024 38,250 April 23, 2024 immediate stock awards 3,924 April 23, 2024 36,120 June 7, 2024 immediate stock awards 18,313 June 24, 2024 immediate stock awards 10,000 June 24, 2024 70,000 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of fair value of restricted shares awarded using the monte carlo valuation model | The Company has determined the fair value of shares awarded during the three months ended June 30, 2024, using the Monte Carlo valuation model based on the following key assumptions: Stock awards granted Term (years) Volatility Risk-free rate April 1, 2024 4.82 36.62 % 4.36 % April 23, 2024 4.76 36.68 % 4.65 % June 24, 2024 4.59 36.89 % 4.31 % |
Schedule of the activity of the company's restricted stock outstanding | The table below summarizes the activity for the Company's stock awards outstanding during the three months ended June 30, 2024: Shares Weighted Outstanding, at March 31, 2024 983,205 57,598 Granted 186,967 12,969 Vested (168,797) (8,047) Forfeited/cancelled/expired — — Outstanding, at June 30, 2024 1,001,375 62,520 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Disclosure Of Lease Related Assets And Liabilities | The table below presents the lease related assets and liabilities recorded on the Company's Condensed Consolidated Balance Sheets as of June 30, 2024: Classification on Balance Sheet June 30, 2024 March 31, 2024 Assets Operating lease assets Right-of-use asset $ 35,006 $ 36,324 Total lease assets $ 35,006 $ 36,324 Liabilities Operating lease liability Lease liability $ 35,390 $ 35,794 Total lease liability $ 35,390 $ 35,794 |
Disclosure of lease maturities | The following table presents as of June 30, 2024, the maturities of the lease liabilities: Leases maturing during the period ended March 31, 2025 $ 9,138 2026 11,987 2027 10,661 2028 6,626 2029 1,873 Thereafter 2,852 Total payments 43,137 Less: amounts representing interest (7,747) Lease liability, net $ 35,390 Weighted average remaining lease term (in months) 30 Weighted average discount rate 14 % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments | Total lending related commitments outstanding as of June 30, 2024, and March 31, 2024, were as follows: As of June 30, 2024 As of March 31, 2024 Unused commitments under lines of credits and guarantees $ 263,874 $ 207,519 Bank guarantees 10,863 9,012 Total $ 274,737 $ 216,531 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | The following tables summarize the Group's Statement of Operations by its reportable segments. There are no revenues from transactions between the segments and intercompany balances have been eliminated for separate disclosure: Three months ended June 30, 2024 STATEMENTS OF OPERATIONS Brokerage Banking Insurance Other Total Fee and commission income $ 97,943 $ 2,796 $ 115 $ 14,635 $ 115,489 Net gain/(loss) on trading securities 874 (50,007) 139 (3,108) (52,102) Interest income 62,789 146,063 15,699 1,453 226,004 Insurance underwriting income — — 129,408 — 129,408 Net gain/(loss) on foreign exchange operations 9,957 (19,695) 1,120 16,707 8,089 Net gain on derivative 876 11,618 — — 12,494 Other income, net 2,477 427 782 7,647 11,333 TOTAL REVENUE, NET 174,916 91,202 147,263 37,334 450,715 Fee and commission expense 5,677 2,526 64,887 7,057 80,147 Interest expense 34,621 99,887 3,883 7,327 145,718 Insurance claims incurred, net of reinsurance — — 47,309 — 47,309 Payroll and bonuses 25,251 6,117 6,861 19,295 57,524 Professional services 2,389 96 277 4,506 7,268 Stock compensation expense 5,315 1,956 875 2,469 10,615 Advertising expense 11,944 1,064 350 3,843 17,201 General and administrative expense 10,213 12,385 5,218 17,289 45,105 (Recovery of)/provision for allowance for expected credit losses (329) (1,121) 325 (645) (1,770) TOTAL EXPENSE 95,081 122,910 129,985 61,141 409,117 INCOME BEFORE INCOME TAX $ 79,835 $ (31,708) $ 17,278 $ (23,807) $ 41,598 Income tax (expense)/benefit (10,204) 3,225 (3,475) 3,115 (7,339) NET INCOME $ 69,631 $ (28,483) $ 13,803 $ (20,692) $ 34,259 Three months ended June 30, 2023 STATEMENTS OF OPERATIONS Brokerage Banking Insurance Other Total Fee and commission income $ 63,972 $ 13,166 $ 42 $ 21,523 $ 98,703 Net gain/(loss) on trading securities 9,167 14,520 9,104 (975) 31,816 Interest income 32,209 99,094 16,008 2,038 149,349 Insurance underwriting income — — 44,889 — 44,889 Net gain/(loss) on foreign exchange operations 111 19,840 (429) (221) 19,301 Net (loss)/gain on derivative (5) (30,774) — 174 (30,605) Other income/(expense), net 616 (192) 763 1,570 2,757 TOTAL REVENUE, NET 106,070 115,654 70,377 24,109 316,210 Fee and commission expense 5,858 3,983 17,424 1,419 28,684 Interest expense 21,238 62,699 8,419 2,690 95,046 Insurance claims incurred, net of reinsurance — — 21,514 — 21,514 Payroll and bonuses 12,499 9,512 3,326 6,293 31,630 Professional services 2,327 80 126 4,092 6,625 Stock compensation expense 789 62 37 345 1,233 Advertising expense 4,788 2,036 145 1,131 8,100 General and administrative expense 8,457 6,398 1,249 8,371 24,475 Provision for allowance for expected credit losses 240 11,284 1,222 1,580 14,326 TOTAL EXPENSE 56,196 96,054 53,462 25,921 231,633 INCOME BEFORE INCOME TAX $ 49,874 $ 19,600 $ 16,915 $ (1,812) $ 84,577 Income tax (expense)/benefit (2,679) — 37 (14,014) (16,656) NET INCOME $ 47,195 $ 19,600 $ 16,952 $ (15,826) $ 67,921 The following tables summarize the Company's total assets and total liabilities by its business segments. Intercompany balances have been eliminated for separate disclosure: June 30, 2024 Brokerage Banking Insurance Other Total Total assets $ 2,887,774 $ 4,788,782 $ 545,868 $ 261,136 $ 8,483,560 Total liabilities 2,175,457 4,384,736 411,274 359,914 7,331,381 Net assets $ 712,317 $ 404,046 $ 134,594 $ (98,778) $ 1,152,179 March 31, 2024 Brokerage Banking Insurance Other Total Total assets $ 2,586,803 $ 4,939,626 $ 529,517 $ 245,984 $ 8,301,930 Total liabilities 1,973,887 4,389,745 402,865 368,475 7,134,972 Net assets $ 612,916 $ 549,881 $ 126,652 $ (122,491) $ 1,166,958 |
STATUTORY CAPITAL REQUIREMENTS
STATUTORY CAPITAL REQUIREMENTS (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Broker-Dealer [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The table below presents net capital/eligible equity, required minimum capital, excess regulatory capital and retained earnings as of June 30, 2024 for each of the regulated entities that is material for our condensed consolidated financial statements. (amounts in thousands) Regulated activities Net Capital/Eligible Equity Required Minimum capital/solvency Excess regulatory capital Retained earnings Freedom KZ Brokerage $ 98,663 $ 392 $ 98,271 $ 119,274 Freedom Bank KZ Bank 287,384 180,584 106,800 158,915 Freedom Life Life Insurance 42,612 11,746 30,866 65,887 Freedom EU Brokerage 269,057 10,971 258,086 567,393 Freedom Insurance Property and Casual Insurance 31,981 11,746 20,235 23,447 Freedom Global Brokerage 133,246 22,597 110,649 161,302 Freedom Armenia ("Freedom AR") Brokerage 13,055 775 12,280 12,791 Other regulated operating subsidiaries Other 9,304 154 9,150 (17,652) $ 885,302 $ 238,965 $ 646,337 $ 1,091,357 The table below presents net capital/eligible equity, required minimum capital, excess regulatory capital and retained earnings as of March 31, 2024 for each of the regulated entities that is material for our condensed consolidated financial statements. (amounts in thousands) Regulated activities Net Capital/Eligible Equity Required Minimum capital/solvency Excess regulatory capital Retained earnings Freedom KZ Brokerage $ 107,064 $ 413 $ 106,651 $ 122,416 Freedom Bank KZ Bank 329,738 196,594 133,144 193,376 Freedom Life Life Insurance 50,757 12,395 38,362 57,085 Freedom EU Brokerage 269,424 10,868 258,556 319,484 Freedom Insurance Property and Casual Insurance 30,011 12,395 17,616 19,773 Freedom Global Brokerage 16,428 12,352 4,076 117,468 Freedom Armenia ("Freedom AR") Brokerage 7,317 763 6,554 6,447 Other regulated operating subsidiaries Other 8,533 155 8,378 (11,665) $ 819,272 $ 245,935 $ 573,337 $ 824,384 |
DESCRIPTION OF BUSINESS - List
DESCRIPTION OF BUSINESS - List of subsidiaries (Details) | Jun. 30, 2024 subsidiary |
Freedom Finance JSC ("Freedom KZ") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 3 |
Freedom Finance Global PLC ("Freedom Global") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Finance Europe Limited ("Freedom EU") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 2 |
Freedom Finance Armenia LLC ("Freedom AR") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Prime Executions, Inc. ("PrimeEx") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Foreign Enterprise LLC Freedom Finance | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Bank Kazakhstan JSC ("Freedom Bank KZ") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 1 |
Freedom Finance Life JSC ("Freedom Life") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Finance Insurance JSC ("Freedom Insurance") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Ticketon Events LLP ("Ticketon") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 3 |
Freedom Finance Special Purpose Company LTD ("Freedom SPC") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Finance Commercial LLP | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Technologies LLP ("Paybox") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 5 |
Aviata LLP ("Aviata") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Internet-Tourism LLP ("Internet Tourism") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Arbuz Group LLP ("Arbuz") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 3 |
Comrun LLP ("ReKassa") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Telecom Holding Limited ("Freedom Telecom") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 3 |
Freedom Kazakhstan PC Ltd | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 8 |
Freedom Advertising Ltd | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Shapagat Corporate Fund | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
FRHC Fractional SPC LTD | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Holding Operations LLP | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Horizons LLP | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Finance Azerbaijan LLC | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Finance FZE. | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Management Ltd. | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Finance Turkey LLC | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Finance Technologies Ltd | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Prime UK Limited ("Prime UK") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Structured Products PLC | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
FFIN Securities, Inc. | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom U.S. Market LLC | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 1 |
LD Micro ("LD Micro") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
DESCRIPTION OF BUSINESS - Narra
DESCRIPTION OF BUSINESS - Narrative (Details) | Jun. 30, 2024 |
Subsidiaries listed on the Ukrainian exchange | |
Related Party Transaction [Line Items] | |
Ownership percentage, non-controlling interest | 24.30% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue, Major Customer [Line Items] | ||
TOTAL REVENUE, NET | $ 450,715 | $ 316,210 |
Single non-related party | ||
Revenue, Major Customer [Line Items] | ||
TOTAL REVENUE, NET | $ 84,273 | $ 35,074 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Goodwill | $ 50,591 | $ 52,648 | $ 50,951 |
Freedom Finance Ukraine LLC | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Ownership percentage, non-controlling interest | 9% | ||
Ownership percentage, controlling interest | 91% |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of changes in the carrying amount of goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Goodwill [Roll Forward] | |||
Goodwill, gross at the beginning of the period | $ 52,648 | $ 15,024 | |
Foreign currency translation difference | (2,057) | (1) | |
Acquired | 0 | 36,760 | |
Goodwill, gross at the end of the period | 50,591 | 50,951 | |
Accumulated impairment loss, at the beginning of the period | 0 | 832 | |
Impairment expense | 0 | 0 | |
Write-off due to deconsolidation of Freedom UA | (832) | ||
Accumulated impairment loss, at the end of the period | 0 | 0 | |
Goodwill, net of impairment | 50,591 | 50,951 | $ 52,648 |
Brokerage | |||
Goodwill [Roll Forward] | |||
Goodwill, gross at the beginning of the period | 2,688 | 2,677 | |
Foreign currency translation difference | (55) | (1) | |
Acquired | 0 | 0 | |
Goodwill, gross at the end of the period | 2,633 | 2,676 | |
Accumulated impairment loss, at the beginning of the period | 0 | 0 | |
Impairment expense | 0 | 0 | |
Write-off due to deconsolidation of Freedom UA | 0 | ||
Accumulated impairment loss, at the end of the period | 0 | 0 | |
Goodwill, net of impairment | 2,633 | 2,676 | 2,688 |
Banking | |||
Goodwill [Roll Forward] | |||
Goodwill, gross at the beginning of the period | 2,746 | 2,652 | |
Foreign currency translation difference | (5) | 0 | |
Acquired | 0 | 0 | |
Goodwill, gross at the end of the period | 2,741 | 2,652 | |
Accumulated impairment loss, at the beginning of the period | 0 | 0 | |
Impairment expense | 0 | 0 | |
Write-off due to deconsolidation of Freedom UA | 0 | ||
Accumulated impairment loss, at the end of the period | 0 | 0 | |
Goodwill, net of impairment | 2,741 | 2,652 | 2,746 |
Insurance | |||
Goodwill [Roll Forward] | |||
Goodwill, gross at the beginning of the period | 1,040 | 980 | |
Foreign currency translation difference | (55) | 0 | |
Acquired | 0 | 0 | |
Goodwill, gross at the end of the period | 985 | 980 | |
Accumulated impairment loss, at the beginning of the period | 0 | 0 | |
Impairment expense | 0 | 0 | |
Write-off due to deconsolidation of Freedom UA | 0 | ||
Accumulated impairment loss, at the end of the period | 0 | 0 | |
Goodwill, net of impairment | 985 | 980 | 1,040 |
Other | |||
Goodwill [Roll Forward] | |||
Goodwill, gross at the beginning of the period | 46,174 | 8,715 | |
Foreign currency translation difference | (1,942) | 0 | |
Acquired | 0 | 36,760 | |
Goodwill, gross at the end of the period | 44,232 | 44,643 | |
Accumulated impairment loss, at the beginning of the period | 0 | 832 | |
Impairment expense | 0 | 0 | |
Write-off due to deconsolidation of Freedom UA | (832) | ||
Accumulated impairment loss, at the end of the period | 0 | 0 | |
Goodwill, net of impairment | $ 44,232 | $ 44,643 | $ 46,174 |
CASH AND CASH EQUIVALENTS - Sch
CASH AND CASH EQUIVALENTS - Schedule of cash and cash equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 |
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ 718,678 | $ 545,084 | $ 597,364 |
Allowance for Cash and cash equivalents | (239) | (462) | |
Short term deposits in National Bank (Kazakhstan) | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 292,154 | 196,942 | |
Short term deposits in commercial banks | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 202,830 | 127,051 | |
Securities purchased under reverse repurchase agreements | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 150,960 | 134,961 | |
Petty cash in bank vault and on hand | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 40,099 | 22,613 | |
Overnight deposits | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 14,465 | 3,557 | |
Cash in transit | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 7,210 | 9,633 | |
Short term deposits in stock exchanges | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 5,062 | 47,830 | |
Short term deposits on brokerage accounts | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 5,586 | 2,917 | |
Short term deposits in the Central Depository (Kazakhstan) | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ 551 | $ 42 |
CASH AND CASH EQUIVALENTS - S_2
CASH AND CASH EQUIVALENTS - Schedule of collateralized securities received under reverse repurchase agreements (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Cash and cash equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Up to 30 days | $ 150,960 | $ 134,961 |
Total | $ 150,960 | $ 134,961 |
Corporate equity | Cash and cash equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 14.08% | 14.57% |
Up to 30 days | $ 104,509 | $ 96,647 |
Total | $ 104,509 | $ 96,647 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 13.64% | 13.84% |
Corporate debt | Cash and cash equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 3.53% | 5.31% |
Up to 30 days | $ 31,398 | $ 8,961 |
Total | $ 31,398 | $ 8,961 |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 13.63% | 13.78% |
Non-US sovereign debt | Cash and cash equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 3.30% | 4.45% |
Up to 30 days | $ 4,751 | $ 12,468 |
Total | $ 4,751 | $ 12,468 |
U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 13.50% | 3.06% |
U.S. sovereign debt | Cash and cash equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 7.95% | 4.77% |
Up to 30 days | $ 10,302 | $ 16,885 |
Total | $ 10,302 | $ 16,885 |
CASH AND CASH EQUIVALENTS - Nar
CASH AND CASH EQUIVALENTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Fair value of collateral received by the company under reverse repurchase agreements | $ 150,886 | $ 133,380 |
Interest accrued on securities purchased under reverse repurchase agreements | $ 132 | $ 106 |
Resale agreement counterparty, weighted average maturity of agreements | 2 days | 3 days |
RESTRICTED CASH - Schedule of r
RESTRICTED CASH - Schedule of restricted cash (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | $ 1,179,510 | $ 462,637 |
Allowance for restricted cash | (15,007) | (15,151) |
Brokerage customers’ cash | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | 1,099,041 | 366,260 |
Guaranty deposits | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | 81,125 | 97,052 |
Restricted bank accounts | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | 8,161 | 8,079 |
Due from banks | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | 6,167 | 6,374 |
Deferred distribution payment | ||
Cash and Cash Equivalents [Line Items] | ||
Restricted cash | $ 23 | $ 23 |
TRADING AND AVAILABLE FOR SALE
TRADING AND AVAILABLE FOR SALE SECURITIES AT FAIR VALUE - Schedule of trading and available-for-sale securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 3,393,936 | $ 3,688,620 |
Fair value of equity securities | 262,860 | 216,621 |
Non-U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 2,135,862 | 2,409,126 |
Fair value of equity securities | 52,413 | 27,016 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 1,084,410 | 1,108,870 |
Fair value of equity securities | 194,327 | 173,568 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 123,520 | 126,103 |
U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 43,452 | 43,173 |
Fair value of equity securities | 16,120 | 16,037 |
Exchange traded notes | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 6,692 | $ 1,348 |
TRADING AND AVAILABLE FOR SAL_2
TRADING AND AVAILABLE FOR SALE SECURITIES AT FAIR VALUE - Schedule of maturity of trading and available-for-sale securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | $ 262,860 | $ 216,621 |
Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 194,327 | 173,568 |
Non-US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 52,413 | 27,016 |
U.S. sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 16,120 | 16,037 |
Up to 1 year | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 51,944 | 73,254 |
Up to 1 year | Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 37,704 | 65,415 |
Up to 1 year | Non-US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 14,240 | 7,839 |
Up to 1 year | U.S. sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 0 | 0 |
1-5 years | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 109,660 | 56,743 |
1-5 years | Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 86,644 | 44,374 |
1-5 years | Non-US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 17,884 | 7,310 |
1-5 years | U.S. sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 5,132 | 5,059 |
5-10 years | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 82,763 | 75,103 |
5-10 years | Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 59,322 | 59,553 |
5-10 years | Non-US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 13,643 | 5,797 |
5-10 years | U.S. sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 9,798 | 9,753 |
More than 10 years | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 18,493 | 11,521 |
More than 10 years | Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 10,657 | 4,226 |
More than 10 years | Non-US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 6,646 | 6,070 |
More than 10 years | U.S. sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | $ 1,190 | $ 1,225 |
TRADING AND AVAILABLE FOR SAL_3
TRADING AND AVAILABLE FOR SALE SECURITIES AT FAIR VALUE - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2024 USD ($) issuer | Mar. 31, 2024 USD ($) issuer | |
Defined Benefit Plan Disclosure [Line Items] | ||
Number of issuers | issuer | 2 | 2 |
Available-for-sale, debt securities | $ 363 | $ 413 |
Kazakhstan Sustainability Fund JSC | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of trading securities | 10% | 10% |
Debt securities | $ 726,402 | $ 727,440 |
Ministry of Finance of the Republic of Kazakhstan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of trading securities | 10% | 10% |
Debt securities | $ 2,175,004 | $ 2,420,855 |
TRADING AND AVAILABLE FOR SAL_4
TRADING AND AVAILABLE FOR SALE SECURITIES AT FAIR VALUE - Schedule of present securities assets at fair value (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 3,393,936 | $ 3,688,620 |
Fair value of equity securities | 262,860 | 216,621 |
Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 3,393,936 | 3,688,620 |
Fair value of equity securities | 262,860 | 216,621 |
Level 1 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 1,848,656 | 1,909,950 |
Fair value of equity securities | 92,790 | 75,550 |
Level 2 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 1,526,631 | 1,758,228 |
Fair value of equity securities | 170,070 | 141,071 |
Level 3 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 18,649 | 20,442 |
Fair value of equity securities | 0 | 0 |
Non-U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 2,135,862 | 2,409,126 |
Fair value of equity securities | $ 52,413 | $ 27,016 |
Non-U.S. sovereign debt | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities, weighted average interest rate | 12.43% | 11.61% |
Trading securities | $ 2,135,862 | $ 2,409,126 |
Total available-for-sale securities, weighted average interest rate | 11.73% | 10.48% |
Fair value of equity securities | $ 52,413 | $ 27,016 |
Non-U.S. sovereign debt | Level 1 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 1,455,803 | 1,592,380 |
Fair value of equity securities | 45,027 | 12,378 |
Non-U.S. sovereign debt | Level 2 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 680,059 | 816,746 |
Fair value of equity securities | 7,386 | 14,638 |
Non-U.S. sovereign debt | Level 3 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 0 | 0 |
Fair value of equity securities | 0 | 0 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 1,084,410 | 1,108,870 |
Fair value of equity securities | $ 194,327 | $ 173,568 |
Corporate debt | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities, weighted average interest rate | 14.52% | 14.83% |
Trading securities | $ 1,084,410 | $ 1,108,870 |
Total available-for-sale securities, weighted average interest rate | 14.96% | 15.53% |
Fair value of equity securities | $ 194,327 | $ 173,568 |
Corporate debt | Level 1 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 242,177 | 171,218 |
Fair value of equity securities | 31,643 | 47,135 |
Corporate debt | Level 2 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 842,016 | 937,360 |
Fair value of equity securities | 162,684 | 126,433 |
Corporate debt | Level 3 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 217 | 292 |
Fair value of equity securities | 0 | 0 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 123,520 | $ 126,103 |
Corporate equity | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities, weighted average interest rate | ||
Trading securities | $ 123,520 | $ 126,103 |
Corporate equity | Level 1 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 101,371 | 102,134 |
Corporate equity | Level 2 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 3,717 | 3,819 |
Corporate equity | Level 3 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 18,432 | 20,150 |
U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 43,452 | 43,173 |
Fair value of equity securities | $ 16,120 | $ 16,037 |
U.S. sovereign debt | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities, weighted average interest rate | 4.19% | 4.98% |
Trading securities | $ 43,452 | $ 43,173 |
Total available-for-sale securities, weighted average interest rate | 4.60% | 3.54% |
Fair value of equity securities | $ 16,120 | $ 16,037 |
U.S. sovereign debt | Level 1 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 43,452 | 43,173 |
Fair value of equity securities | 16,120 | 16,037 |
U.S. sovereign debt | Level 2 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 0 | 0 |
Fair value of equity securities | 0 | 0 |
U.S. sovereign debt | Level 3 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 0 | 0 |
Fair value of equity securities | 0 | 0 |
Exchange traded notes | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 6,692 | $ 1,348 |
Exchange traded notes | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities, weighted average interest rate | ||
Trading securities | $ 6,692 | $ 1,348 |
Exchange traded notes | Level 1 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 5,853 | 1,045 |
Exchange traded notes | Level 2 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 839 | 303 |
Exchange traded notes | Level 3 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 0 | $ 0 |
TRADING AND AVAILABLE FOR SAL_5
TRADING AND AVAILABLE FOR SALE SECURITIES AT FAIR VALUE - Schedule of valuation techniques and significant level 3 inputs used in the valuation (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2024 USD ($) times | Mar. 31, 2024 USD ($) times | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 3,393,936 | $ 3,688,620 |
Level 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 18,649 | $ 20,442 |
Corporate Debt, 3 Months | Discounted cash flow | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Estimated number of years | 3 months | 3 months |
Corporate Debt, 3 Months | Discounted cash flow | Level 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 217 | $ 292 |
Corporate Debt, 3 Months | Discount rate | Discounted cash flow | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Discount rate | 0.740 | 0.740 |
Corporate equity | Discounted cash flow | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Estimated number of years | 4 years 6 months | 4 years 6 months |
Corporate equity | Discounted cash flow | Level 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 18,296 | $ 20,007 |
Corporate equity | Discount rate | Discounted cash flow | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Discount rate | 0.130 | 0.130 |
Corporate equity | Termination multiplier | Discounted cash flow | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Discount rate | times | 27 | 27 |
Corporate equity | Discounted cash flow | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Estimated number of years | 9 years | 9 years |
Corporate equity | Discounted cash flow | Level 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 136 | $ 143 |
Corporate equity | Discount rate | Discounted cash flow | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Discount rate | 0.588 | 0.588 |
TRADING AND AVAILABLE FOR SAL_6
TRADING AND AVAILABLE FOR SALE SECURITIES AT FAIR VALUE - Schedule of reconciliation of the beginning and ending balance for investments that use Level 3 inputs (Details) - Investments - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Mar. 31, 2024 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Investments beginning | $ 20,442 | $ 5,138 |
Reclassification to Level 2 | 0 | (32) |
Deconsolidation of Freedom UA securities | (3,927) | |
Sale of investments that use Level 3 inputs | 0 | (15,856) |
Purchase of investments that use Level 3 inputs | 0 | 35,807 |
Revaluation of investments that use Level 3 inputs | (1,792) | (132) |
Reclassification to investment in associate | (556) | |
Investments ending | $ 18,650 | $ 20,442 |
TRADING AND AVAILABLE FOR SAL_7
TRADING AND AVAILABLE FOR SALE SECURITIES AT FAIR VALUE - Schedule of amortized cost, unrealized gains and losses accumulated in other comprehensive income, and fair value of available-for-sale securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | $ 264,166 | $ 218,577 |
Accumulated impairment loss | (363) | (413) |
Unrealized loss accumulated in other comprehensive income/(loss) | (943) | (1,543) |
Available-for-sale securities, at fair value | 262,860 | 216,621 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | 193,160 | 172,689 |
Accumulated impairment loss | (51) | (61) |
Unrealized loss accumulated in other comprehensive income/(loss) | 1,218 | 940 |
Available-for-sale securities, at fair value | 194,327 | 173,568 |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | 54,123 | 29,121 |
Accumulated impairment loss | (312) | (352) |
Unrealized loss accumulated in other comprehensive income/(loss) | (1,398) | (1,753) |
Available-for-sale securities, at fair value | 52,413 | 27,016 |
U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | 16,883 | 16,767 |
Accumulated impairment loss | 0 | 0 |
Unrealized loss accumulated in other comprehensive income/(loss) | (763) | (730) |
Available-for-sale securities, at fair value | $ 16,120 | $ 16,037 |
MARGIN LENDING, BROKERAGE AND_3
MARGIN LENDING, BROKERAGE AND OTHER RECEIVABLES, NET - Schedule of brokerage and other receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | $ 1,217,885 | $ 1,660,275 |
Allowance for receivables | (13,237) | (11,990) |
Margin lending receivables | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 1,193,193 | 1,635,377 |
Receivables from payment processing services | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 8,900 | 5,351 |
Bank commissions receivable | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 7,966 | 11,574 |
Bond coupon receivable and dividends accrued | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 4,641 | 5,429 |
Receivables from brokerage clients | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 2,889 | 2,603 |
Other receivables | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | $ 13,533 | $ 11,931 |
MARGIN LENDING, BROKERAGE AND_4
MARGIN LENDING, BROKERAGE AND OTHER RECEIVABLES, NET - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Collateral received, fair value | $ 6,687,324 | $ 7,579,057 |
Collateralized financings | 2,479,045 | 2,516,108 |
Other receivables | 1,217,885 | 1,660,275 |
Accounts receivable, allowance for credit loss | 13,237 | 11,990 |
Margin lending receivables | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Other receivables | $ 1,193,193 | $ 1,635,377 |
One | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Collateral, percentage | 37% | 33% |
One | Margin lending receivables | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Other receivables | $ 862,986 | $ 399,196 |
LOANS ISSUED - Summary of loans
LOANS ISSUED - Summary of loans issued (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 |
Financing Receivable, Past Due [Line Items] | ||||
Amount Outstanding | $ 1,354,638 | $ 1,425,334 | ||
Allowance for loans issued | (40,086) | (43,619) | $ (41,704) | $ (2,792) |
Loans issued | 1,314,552 | 1,381,715 | ||
Mortgage loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Amount Outstanding | $ 724,295 | $ 741,312 | ||
Average Interest Rate | 10.30% | 10.30% | ||
Fair Value of Collateral | $ 724,294 | $ 740,462 | ||
Allowance for loans issued | (3,286) | (3,033) | (2,483) | (554) |
Car loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Amount Outstanding | $ 227,234 | $ 262,708 | ||
Average Interest Rate | 23.90% | 23.90% | ||
Fair Value of Collateral | $ 224,380 | $ 259,755 | ||
Allowance for loans issued | (11,120) | (14,262) | (9,862) | (758) |
Uncollateralized bank customer loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Amount Outstanding | $ 231,833 | $ 245,188 | ||
Average Interest Rate | 27.70% | 27.40% | ||
Fair Value of Collateral | $ 0 | $ 0 | ||
Right of claim for purchased retail loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Amount Outstanding | $ 134,333 | $ 146,152 | ||
Average Interest Rate | 15% | 15% | ||
Fair Value of Collateral | $ 134,333 | $ 146,152 | ||
Allowance for loans issued | (4,348) | (6,577) | (12,260) | (1,247) |
Collateralized bank customer loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Amount Outstanding | $ 29,102 | $ 22,299 | ||
Average Interest Rate | 19.30% | 19.10% | ||
Fair Value of Collateral | $ 27,982 | $ 22,270 | ||
Allowance for loans issued | (163) | (80) | (80) | 0 |
Subordinated loan | ||||
Financing Receivable, Past Due [Line Items] | ||||
Amount Outstanding | $ 5,038 | $ 5,037 | ||
Average Interest Rate | 3% | 3% | ||
Fair Value of Collateral | $ 0 | $ 0 | ||
Other | ||||
Financing Receivable, Past Due [Line Items] | ||||
Amount Outstanding | 2,803 | 2,638 | ||
Fair Value of Collateral | 33 | 18 | ||
Allowance for loans issued | $ (37) | $ (31) | $ (3,261) | $ 0 |
Other Loans KZT | ||||
Financing Receivable, Past Due [Line Items] | ||||
Average Interest Rate | 18.60% | 18.60% | ||
Other Loans USD | ||||
Financing Receivable, Past Due [Line Items] | ||||
Average Interest Rate | 15% | 15% | ||
Other Loans EUR | ||||
Financing Receivable, Past Due [Line Items] | ||||
Average Interest Rate | 2.50% | 2.50% |
LOANS ISSUED - Narrative (Detai
LOANS ISSUED - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2024 | |
Financing Receivable, Past Due [Line Items] | ||
Weighted average interest rate, period term | 20 years | |
Liability arising from continuing involvement | $ 505,659 | $ 521,885 |
Loans issued | 1,314,552 | 1,381,715 |
Amount Outstanding | 1,354,638 | 1,425,334 |
Interest receivable | $ 8,277 | $ 8,327 |
Mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Average Interest Rate | 10.30% | 10.30% |
Amount Outstanding | $ 724,295 | $ 741,312 |
Mortgage loans | State mortgage program "7-20-25" | ||
Financing Receivable, Past Due [Line Items] | ||
Average Interest Rate | 7% | |
Weighted average interest rate, transferred to program operator | 4% | |
Interest rate, transferred to program operator, retained | 3% | |
Loans issued | $ 519,016 | $ 532,389 |
Right of claim for purchased retail loans | ||
Financing Receivable, Past Due [Line Items] | ||
Average Interest Rate | 15% | 15% |
Amount Outstanding | $ 134,333 | $ 146,152 |
LOANS ISSUED - Finance receivab
LOANS ISSUED - Finance receivable Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Financing Receivable, Past Due [Line Items] | ||
2025 | $ 104,644 | $ 803,432 |
2024 | 684,125 | 580,595 |
2023 | 528,325 | 41,307 |
2022 | 37,544 | 0 |
2021 | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 1,354,638 | 1,425,334 |
Mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 37,141 | 241,848 |
2024 | 223,214 | 458,401 |
2023 | 426,566 | 41,063 |
2022 | 37,374 | 0 |
2021 | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 724,295 | 741,312 |
Mortgage loans | that are not credit impaired | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 37,141 | 240,974 |
2024 | 221,389 | 454,933 |
2023 | 423,582 | 40,784 |
2022 | 37,002 | 0 |
2021 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 719,114 | 736,691 |
Mortgage loans | with significant increase in credit risk | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 0 | 676 |
2024 | 1,322 | 2,415 |
2023 | 1,627 | 111 |
2022 | 298 | 0 |
2021 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 3,247 | 3,202 |
Mortgage loans | that are credit impaired | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 0 | 198 |
2024 | 503 | 1,053 |
2023 | 1,357 | 168 |
2022 | 74 | 0 |
2021 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 1,934 | 1,419 |
Car loans | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 661 | 196,305 |
2024 | 170,230 | 66,403 |
2023 | 56,343 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 227,234 | 262,708 |
Car loans | that are not credit impaired | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 661 | 193,302 |
2024 | 165,792 | 55,427 |
2023 | 45,318 | 0 |
2022 | 0 | |
2021 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 211,771 | 248,729 |
Car loans | with significant increase in credit risk | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 0 | 1,590 |
2024 | 1,990 | 2,232 |
2023 | 1,741 | 0 |
2022 | 0 | |
2021 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 3,731 | 3,822 |
Car loans | that are credit impaired | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 0 | 1,413 |
2024 | 2,448 | 8,744 |
2023 | 9,284 | 0 |
2022 | 0 | |
2021 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 11,732 | 10,157 |
Uncollateralized bank customer loans | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 18,126 | 210,612 |
2024 | 183,176 | 34,568 |
2023 | 30,524 | 8 |
2022 | 7 | 0 |
2021 | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 231,833 | 245,188 |
Uncollateralized bank customer loans | that are not credit impaired | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 18,058 | 200,211 |
2024 | 168,030 | 30,337 |
2023 | 25,547 | 0 |
2022 | 0 | 0 |
2021 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 211,635 | 230,548 |
Uncollateralized bank customer loans | with significant increase in credit risk | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 68 | 4,715 |
2024 | 4,559 | 1,072 |
2023 | 1,030 | 0 |
2022 | 0 | 0 |
2021 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 5,657 | 5,787 |
Uncollateralized bank customer loans | that are credit impaired | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 0 | 5,686 |
2024 | 10,587 | 3,159 |
2023 | 3,947 | 8 |
2022 | 7 | 0 |
2021 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 14,541 | 8,853 |
Right of claim for purchased retail loans | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 36,886 | 130,291 |
2024 | 87,911 | 15,694 |
2023 | 9,436 | 167 |
2022 | 100 | 0 |
2021 | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 134,333 | 146,152 |
Right of claim for purchased retail loans | that are not credit impaired | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 36,886 | 130,291 |
2024 | 87,911 | 15,694 |
2023 | 9,436 | 167 |
2022 | 100 | 0 |
2021 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 134,333 | 146,152 |
Right of claim for purchased retail loans | with significant increase in credit risk | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 0 | 0 |
2024 | 0 | 0 |
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 0 | 0 |
Right of claim for purchased retail loans | that are credit impaired | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 0 | 0 |
2024 | 0 | 0 |
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 0 | 0 |
Collateralized bank customer loans | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 11,615 | 21,972 |
2024 | 17,223 | 327 |
2023 | 264 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 29,102 | 22,299 |
Collateralized bank customer loans | that are not credit impaired | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 11,615 | 21,796 |
2024 | 17,095 | 327 |
2023 | 264 | 0 |
2022 | 0 | |
2021 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 28,974 | 22,123 |
Collateralized bank customer loans | with significant increase in credit risk | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 0 | 89 |
2024 | 128 | 0 |
2023 | 0 | 0 |
2022 | 0 | |
2021 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 128 | 89 |
Collateralized bank customer loans | that are credit impaired | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 0 | 87 |
2024 | 0 | 0 |
2023 | 0 | 0 |
2022 | 0 | |
2021 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 0 | 87 |
Subordinated loan | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 0 | 0 |
2024 | 0 | 5,037 |
2023 | 5,038 | 0 |
2022 | 0 | 0 |
2021 | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 5,038 | 5,037 |
Subordinated loan | that are not credit impaired | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 0 | 0 |
2024 | 0 | 5,037 |
2023 | 5,038 | 0 |
2022 | 0 | |
2021 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 5,038 | 5,037 |
Subordinated loan | with significant increase in credit risk | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 0 | 0 |
2024 | 0 | 0 |
2023 | 0 | 0 |
2022 | 0 | |
2021 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 0 | 0 |
Subordinated loan | that are credit impaired | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 0 | 0 |
2024 | 0 | 0 |
2023 | 0 | 0 |
2022 | 0 | |
2021 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 0 | 0 |
Other | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 215 | 2,404 |
2024 | 2,371 | 165 |
2023 | 154 | 69 |
2022 | 63 | 0 |
2021 | 0 | 0 |
Prior | 0 | 0 |
Revolving loans | 0 | 0 |
Total | 2,803 | 2,638 |
Other | that are not credit impaired | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 215 | 2,395 |
2024 | 2,362 | 165 |
2023 | 154 | 69 |
2022 | 63 | 0 |
2021 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 2,794 | 2,629 |
Other | with significant increase in credit risk | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 0 | 0 |
2024 | 0 | 0 |
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 0 | 0 |
Other | that are credit impaired | ||
Financing Receivable, Past Due [Line Items] | ||
2025 | 0 | 9 |
2024 | 9 | 0 |
2023 | 0 | 0 |
2022 | 0 | 0 |
2021 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | $ 9 | $ 9 |
LOANS ISSUED - Finance receiv_2
LOANS ISSUED - Finance receivable Vintage (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | $ 1,354,638 | $ 1,425,334 |
Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 6,888 | 7,876 |
Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 5,875 | 5,024 |
Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 28,216 | 20,525 |
Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 1,313,659 | 1,391,909 |
Mortgage loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 724,295 | 741,312 |
Mortgage loans | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 1,762 | 2,133 |
Mortgage loans | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 1,485 | 1,069 |
Mortgage loans | Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 1,934 | 1,419 |
Mortgage loans | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 719,114 | 736,691 |
Car loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 227,234 | 262,708 |
Car loans | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 2,006 | 2,167 |
Car loans | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 1,725 | 1,655 |
Car loans | Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 11,732 | 10,157 |
Car loans | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 211,771 | 248,729 |
Uncollateralized bank customer loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 231,833 | 245,188 |
Uncollateralized bank customer loans | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 3,021 | 3,576 |
Uncollateralized bank customer loans | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 2,636 | 2,211 |
Uncollateralized bank customer loans | Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 14,541 | 8,853 |
Uncollateralized bank customer loans | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 211,635 | 230,548 |
Right of claim for purchased retail loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 134,333 | 146,152 |
Right of claim for purchased retail loans | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 0 | 0 |
Right of claim for purchased retail loans | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 0 | 0 |
Right of claim for purchased retail loans | Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 0 | 0 |
Right of claim for purchased retail loans | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 134,333 | 146,152 |
Collateralized bank customer loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 29,102 | 22,299 |
Collateralized bank customer loans | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 99 | 0 |
Collateralized bank customer loans | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 29 | 89 |
Collateralized bank customer loans | Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 0 | 87 |
Collateralized bank customer loans | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 28,974 | 22,123 |
Subordinated loan | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 5,038 | 5,037 |
Subordinated loan | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 0 | 0 |
Subordinated loan | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 0 | 0 |
Subordinated loan | Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 0 | 0 |
Subordinated loan | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 5,038 | 5,037 |
Other | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 2,803 | 2,638 |
Other | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 0 | 0 |
Other | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 0 | 0 |
Other | Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 9 | 9 |
Other | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | $ 2,794 | $ 2,629 |
LOANS ISSUED - Allowances for C
LOANS ISSUED - Allowances for Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | $ (43,619) | $ (2,792) |
Charges | (10,255) | (19,365) |
Recoveries | 11,459 | 5,511 |
Write off | 113 | |
Forex | 2,216 | 137 |
Closing balance | (40,086) | (41,704) |
Adjustment to allowance for adoption of ASU 2016-13 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | (25,195) | |
Mortgage loans | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | (3,033) | (554) |
Charges | (728) | 0 |
Recoveries | 295 | 284 |
Write off | 0 | |
Forex | 180 | 3 |
Closing balance | (3,286) | (2,483) |
Mortgage loans | Adjustment to allowance for adoption of ASU 2016-13 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | (2,216) | |
Uncollateralized bank customer loans | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | (19,636) | (233) |
Charges | (6,389) | (7,755) |
Recoveries | 3,733 | 1,602 |
Write off | 0 | |
Forex | 1,160 | 64 |
Closing balance | (21,132) | (13,758) |
Uncollateralized bank customer loans | Adjustment to allowance for adoption of ASU 2016-13 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | (7,436) | |
Collateralized bank customer loans | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | (80) | 0 |
Charges | (116) | (55) |
Recoveries | 20 | 8 |
Write off | 4 | |
Forex | 9 | 2 |
Closing balance | (163) | (80) |
Collateralized bank customer loans | Adjustment to allowance for adoption of ASU 2016-13 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | (35) | |
Car loans | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | (14,262) | (758) |
Charges | (1,526) | (2,948) |
Recoveries | 3,938 | 272 |
Write off | 109 | |
Forex | 621 | 34 |
Closing balance | (11,120) | (9,862) |
Car loans | Adjustment to allowance for adoption of ASU 2016-13 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | (6,462) | |
Right of claim for purchased retail loans | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | (6,577) | (1,247) |
Charges | (1,490) | (5,346) |
Recoveries | 3,473 | 3,345 |
Write off | 0 | |
Forex | 246 | 34 |
Closing balance | (4,348) | (12,260) |
Right of claim for purchased retail loans | Adjustment to allowance for adoption of ASU 2016-13 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | (9,046) | |
Other | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | (31) | 0 |
Charges | (6) | (3,261) |
Recoveries | 0 | |
Write off | 0 | |
Forex | 0 | |
Closing balance | $ (37) | (3,261) |
Other | Adjustment to allowance for adoption of ASU 2016-13 | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | $ 0 |
PROVISION FOR INCOME TAXES - Na
PROVISION FOR INCOME TAXES - Narrative (Details) | 3 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Effective income tax rate | 17.60% | 19.70% | |
Insurance | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 21% | 21% | |
Kazakhstan | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 20% | 20% | |
Azerbaijan | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 20% | 20% | |
Kyrgyzstan | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 10% | 10% | |
Germany | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 15% | 15% | |
Cyprus | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 12.50% | 12.50% | |
United Kingdom | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 25% | 25% | |
Armenia | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 18% | 18% | |
Uzbekistan | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 15% | 15% |
SECURITIES REPURCHASE AGREEME_3
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS - Schedule of trading securities including collateralized securities subject to repurchase agreements (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Securities repurchase agreement obligations | $ 2,558,794 | $ 2,756,596 |
Up to 30 days | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Securities repurchase agreement obligations | 2,177,472 | 2,482,004 |
30-90 days | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Securities repurchase agreement obligations | $ 381,322 | $ 274,592 |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 13.63% | 13.78% |
Securities repurchase agreement obligations | $ 1,644,354 | $ 1,805,028 |
Non-US sovereign debt | Up to 30 days | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Securities repurchase agreement obligations | 1,419,612 | 1,545,080 |
Non-US sovereign debt | 30-90 days | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Securities repurchase agreement obligations | $ 224,742 | $ 259,948 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 13.64% | 13.84% |
Securities repurchase agreement obligations | $ 904,587 | $ 938,396 |
Corporate debt | Up to 30 days | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Securities repurchase agreement obligations | 748,007 | 923,752 |
Corporate debt | 30-90 days | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Securities repurchase agreement obligations | $ 156,580 | $ 14,644 |
U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 13.50% | 3.06% |
Securities repurchase agreement obligations | $ 9,853 | $ 13,172 |
U.S. sovereign debt | Up to 30 days | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Securities repurchase agreement obligations | 9,853 | 13,172 |
U.S. sovereign debt | 30-90 days | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Securities repurchase agreement obligations | $ 0 | $ 0 |
SECURITIES REPURCHASE AGREEME_4
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Mar. 31, 2024 | |
Securities Sold under Agreements to Repurchase [Abstract] | ||
Fair value of collateral pledged under repurchase agreements | $ 2,572,331 | $ 2,753,601 |
Interest payable accrued on securities purchased under reverse repurchase agreements | $ 9,565 | $ 11,684 |
Repurchase agreement, weighted average maturity of agreements | 14 days | 12 days |
CUSTOMER LIABILITIES - Schedule
CUSTOMER LIABILITIES - Schedule of customer liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Mar. 31, 2024 | |
Revenue, Major Customer [Line Items] | ||
Total non-interest-bearing accounts | $ 1,344,527 | $ 1,052,758 |
Customer liabilities | 2,699,912 | 2,273,830 |
Term Deposits | ||
Revenue, Major Customer [Line Items] | ||
Term deposits | $ 1,355,385 | $ 1,221,072 |
Term Deposits | Minimum | ||
Revenue, Major Customer [Line Items] | ||
Debt securities, interest rate during period (in percent) | 0.10% | 0.04% |
Term Deposits | Maximum | ||
Revenue, Major Customer [Line Items] | ||
Debt securities, interest rate during period (in percent) | 17.30% | 17.30% |
Brokerage customers | ||
Revenue, Major Customer [Line Items] | ||
Total non-interest-bearing accounts | $ 973,577 | $ 742,902 |
Current customer accounts | ||
Revenue, Major Customer [Line Items] | ||
Total non-interest-bearing accounts | $ 370,950 | $ 309,856 |
CUSTOMER LIABILITIES - Narrativ
CUSTOMER LIABILITIES - Narrative (Details) - JSC Kazakhstan Deposit Insurance Fund - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Revenue, Major Customer [Line Items] | ||
Insured bank deposits, price per client | $ 42 | |
Insured bank deposits | $ 616,746 | $ 600,972 |
MARGIN LENDING AND TRADE PAYA_3
MARGIN LENDING AND TRADE PAYABLES - Schedule of Trade Payables (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Regulatory Liabilities [Line Items] | ||
Margin lending and trade payables | $ 836,309 | $ 867,880 |
Margin lending payable | ||
Regulatory Liabilities [Line Items] | ||
Margin lending and trade payables | 809,409 | 839,454 |
Payables to merchants | ||
Regulatory Liabilities [Line Items] | ||
Margin lending and trade payables | 12,379 | 13,475 |
Payables to suppliers of goods and services | ||
Regulatory Liabilities [Line Items] | ||
Margin lending and trade payables | 9,005 | 10,525 |
Trade payable for securities purchased | ||
Regulatory Liabilities [Line Items] | ||
Margin lending and trade payables | 464 | 485 |
Other | ||
Regulatory Liabilities [Line Items] | ||
Margin lending and trade payables | $ 5,052 | $ 3,941 |
MARGIN LENDING AND TRADE PAYA_4
MARGIN LENDING AND TRADE PAYABLES - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Accounts Payable [Abstract] | ||
Margin loans, fair value of collateral | $ 2,564,790 | $ 2,400,361 |
DEBT SECURITIES ISSUED - Summar
DEBT SECURITIES ISSUED - Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2024 | |
Debt Instrument [Line Items] | ||
Debt securities issued | $ 266,398 | $ 267,251 |
Freedom SPC bonds due 2028 | ||
Debt Instrument [Line Items] | ||
Debt securities issued | $ 200,366 | 200,386 |
Interest rate | 12% | |
Interest rate | 6.50% | |
Freedom SPC bonds due 2028 | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate period | 2 years | |
Freedom SPC bonds due 2028 | Maximum | Fed Funds Effective Rate Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Interest rate period | 5 years | |
Freedom SPC bonds due 2028 | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate period | 1 year | |
Freedom SPC bonds due 2028 | Minimum | Fed Funds Effective Rate Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Interest rate period | 3 years | |
Freedom SPC bonds due 2026 | ||
Debt Instrument [Line Items] | ||
Debt securities issued | $ 64,610 | 64,546 |
Interest rate | 5.50% | |
Accrued interest | ||
Debt Instrument [Line Items] | ||
Debt securities issued | $ 1,422 | $ 2,319 |
DEBT SECURITIES ISSUED - Narrat
DEBT SECURITIES ISSUED - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2024 | |
Debt Instrument [Line Items] | ||
Debt securities issued | $ 266,398 | $ 267,251 |
Freedom SPC bonds due 2026 | ||
Debt Instrument [Line Items] | ||
Debt securities issued | $ 64,610 | 64,546 |
Interest rate | 5.50% | |
Freedom SPC bonds due 2028 | ||
Debt Instrument [Line Items] | ||
Debt securities issued | $ 200,366 | $ 200,386 |
Interest rate | 12% | |
Interest rate | 6.50% | |
Threshold period for early redemption | 2 years | |
Threshold period for call option held | 2 years |
INSURANCE CONTRACTS ASSETS AN_3
INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES - Schedule of Insurance Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Effects of Reinsurance [Line Items] | ||
Allowance for estimated uncollectible reinsurance | $ (1,168) | $ (1,045) |
Insurance and reinsurance receivables: | 14,784 | 16,120 |
Unearned premium reserve, reinsurers’ share | 4,929 | 4,770 |
Reserves for claims and claims’ adjustment expenses, reinsurers’ share | 5,236 | 4,032 |
Total | 24,949 | 24,922 |
Amounts due from policyholders | ||
Effects of Reinsurance [Line Items] | ||
Insurance and reinsurance receivable, gross | 9,624 | 10,260 |
Amounts due from reinsured | ||
Effects of Reinsurance [Line Items] | ||
Insurance and reinsurance receivable, gross | 3,185 | 2,274 |
Advances received from agent | ||
Effects of Reinsurance [Line Items] | ||
Insurance and reinsurance receivable, gross | 1,602 | 3,231 |
Claims receivable from reinsurance | ||
Effects of Reinsurance [Line Items] | ||
Insurance and reinsurance receivable, gross | $ 1,541 | $ 1,400 |
INSURANCE CONTRACTS ASSETS AN_4
INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES -Schedule of Insurance Payables (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Insurance and Reinsurance Payable [Line Items] | ||
Insurance and reinsurance payables: | $ 10,724 | $ 13,399 |
Unearned premium reserve | 70,518 | 60,088 |
Reserves for claims and claims’ adjustment expenses | 239,152 | 223,693 |
Liabilities from insurance activity (including $57 and $470 to related parties) | 320,394 | 297,180 |
Amounts payable to agents and brokers | ||
Insurance and Reinsurance Payable [Line Items] | ||
Insurance and reinsurance payables: | 5,955 | 6,334 |
Amounts payable to insurers | ||
Insurance and Reinsurance Payable [Line Items] | ||
Insurance and reinsurance payables: | 3,983 | 4,294 |
Amounts payable to reinsured | ||
Insurance and Reinsurance Payable [Line Items] | ||
Insurance and reinsurance payables: | $ 786 | $ 2,771 |
FEE AND COMMISSION INCOME_EXPEN
FEE AND COMMISSION INCOME/EXPENSE-Schedule of commission income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Brokerage services | $ 93,167 | $ 55,082 |
Commission income from payment processing | 8,563 | 18,042 |
Underwriting and market-making services | 4,702 | 8,831 |
Bank services | 2,516 | 12,841 |
Other fee and commission income | 6,541 | 3,907 |
Total fee and commission income | 115,489 | 98,703 |
Brokerage | ||
Disaggregation of Revenue [Line Items] | ||
Brokerage services | 93,167 | 55,082 |
Commission income from payment processing | 0 | 0 |
Underwriting and market-making services | 4,702 | 8,831 |
Bank services | 0 | 0 |
Other fee and commission income | 74 | 59 |
Total fee and commission income | 97,943 | 63,972 |
Banking | ||
Disaggregation of Revenue [Line Items] | ||
Brokerage services | 0 | 0 |
Commission income from payment processing | 0 | 0 |
Underwriting and market-making services | 0 | 0 |
Bank services | 2,516 | 12,841 |
Other fee and commission income | 280 | 325 |
Total fee and commission income | 2,796 | 13,166 |
Insurance | ||
Disaggregation of Revenue [Line Items] | ||
Brokerage services | 0 | 0 |
Commission income from payment processing | 0 | 0 |
Underwriting and market-making services | 0 | 0 |
Bank services | 0 | 0 |
Other fee and commission income | 115 | 42 |
Total fee and commission income | 115 | 42 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Brokerage services | 0 | 0 |
Commission income from payment processing | 8,563 | 18,042 |
Underwriting and market-making services | 0 | 0 |
Bank services | 0 | 0 |
Other fee and commission income | 6,072 | 3,481 |
Total fee and commission income | $ 14,635 | $ 21,523 |
NET (LOSS)_GAIN ON TRADING SE_3
NET (LOSS)/GAIN ON TRADING SECURITIES - Summary of net gain on trading securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net unrealized (loss)/gain recognized during the reporting period on trading securities still held at the reporting date | $ (64,943) | $ 20,951 |
Net gain recognized during the period on trading securities sold during the period | 12,841 | 10,865 |
Net (loss)/gain recognized during the period on trading securities | $ (52,102) | $ 31,816 |
NET INTEREST INCOME_EXPENSE (De
NET INTEREST INCOME/EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Interest income: | ||
Interest income on trading securities | $ 107,128 | $ 86,840 |
Interest income on loans to customers | 52,367 | 31,333 |
Interest income on margin loans to customers | 51,067 | 17,180 |
Interest income on securities available-for-sale | 8,400 | 8,345 |
Interest income on reverse repurchase agreements and amounts due from banks | 7,042 | 3,057 |
Other interest income | 0 | 2,594 |
Interest income | 226,004 | 149,349 |
Interest expense: | ||
Interest expense on securities repurchase agreement obligations | 92,407 | 75,455 |
Interest expense on customer accounts and deposits | 23,127 | 15,603 |
Interest expense on margin lending payable | 23,123 | 2,993 |
Interest expense on debt securities issued | 6,969 | 935 |
Interest expense on loans received | 44 | 27 |
Other interest expense | 48 | 33 |
Total interest expense | 145,718 | 95,046 |
Net interest income | $ 80,286 | $ 54,303 |
NET GAIN_(LOSS) ON DERIVATIVE_2
NET GAIN/(LOSS) ON DERIVATIVES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Net realized gain/(loss) on derivatives | $ 4,344 | $ (27,493) |
Net unrealized gain/(loss) on derivatives | 8,150 | (3,112) |
Net gain on derivative | $ 12,494 | $ (30,605) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
ASSETS | |||
Cash and cash equivalents | $ 718,678 | $ 597,364 | $ 545,084 |
Restricted cash | 1,179,510 | 462,637 | |
Trading securities | 3,393,936 | 3,688,620 | |
Margin lending, brokerage and other receivables, net | 1,217,885 | 1,660,275 | |
Loans issued | 1,314,552 | 1,381,715 | |
Other assets, net | 139,584 | 102,414 | |
LIABILITIES | |||
Customer liabilities | 2,699,912 | 2,273,830 | |
Other liabilities | 68,040 | 81,560 | |
Revenue: | |||
Fee and commission income | 115,489 | 98,703 | |
Interest income | 226,004 | 149,349 | |
Expense: | |||
General and administrative expenses | 45,105 | 24,475 | |
Related party | |||
ASSETS | |||
Cash and cash equivalents | 257 | 203 | |
Restricted cash | 1,121 | 0 | |
Trading securities | 1,256 | 1,326 | |
Margin lending, brokerage and other receivables, net | 37,836 | 22,039 | |
Loans issued | 136,558 | 147,440 | |
Other assets, net | 23,057 | 5,257 | |
LIABILITIES | |||
Customer liabilities | 84,970 | 44,127 | |
Other liabilities | 8,349 | 9,854 | |
Revenue: | |||
Fee and commission income | 866 | 15,896 | |
Interest income | 270 | 5,352 | |
Expense: | |||
General and administrative expenses | 2,725 | 478 | |
Management | |||
ASSETS | |||
Restricted cash | 357 | 0 | |
Margin lending, brokerage and other receivables, net | 9,037 | 8,849 | |
Loans issued | 1,094 | 117 | |
Other assets, net | 2 | 0 | |
LIABILITIES | |||
Customer liabilities | 10,659 | 12,604 | |
Other liabilities | 7,967 | 7,947 | |
Revenue: | |||
Fee and commission income | 219 | 285 | |
Interest income | 205 | 72 | |
Expense: | |||
General and administrative expenses | 233 | 163 | |
Companies controlled by management | |||
ASSETS | |||
Cash and cash equivalents | 257 | 203 | |
Restricted cash | 576 | 0 | |
Trading securities | 1,256 | 1,326 | |
Margin lending, brokerage and other receivables, net | 28,799 | 13,190 | |
Loans issued | 135,464 | 147,323 | |
Other assets, net | 23,055 | 5,257 | |
LIABILITIES | |||
Customer liabilities | 73,421 | 31,253 | |
Other liabilities | 380 | 1,907 | |
Revenue: | |||
Fee and commission income | 645 | 15,611 | |
Interest income | 65 | 5,280 | |
Expense: | |||
General and administrative expenses | 2,492 | 315 | |
Other | |||
ASSETS | |||
Restricted cash | 188 | 0 | |
LIABILITIES | |||
Customer liabilities | 890 | 270 | |
Other liabilities | 2 | $ 0 | |
Revenue: | |||
Fee and commission income | $ 2 | $ 0 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - shares | 1 Months Ended | 3 Months Ended | ||||||
Jun. 24, 2024 | Jun. 07, 2024 | Apr. 23, 2024 | Apr. 01, 2024 | Mar. 01, 2024 | Oct. 06, 2022 | May 18, 2021 | Jun. 30, 2024 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted stock grants (in shares) | 186,967 | |||||||
Share-based payment arrangement, tranche one | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted stock grants (in shares) | 70,000 | 36,120 | 38,250 | 661,205 | 20,000 | 1,031,500 | ||
Share-based payment arrangement, tranche two | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted stock grants (in shares) | 10,000 | 18,313 | 3,924 | 10,360 | 217,295 | 42,597 |
STOCK BASED COMPENSATION - Narr
STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 3,230 | $ 0 |
Unrecognized compensation cost | $ 49,256 | |
Unrecognized compensation cost, weighted average recognition period | 3 years 5 months 23 days | |
Additional paid in capital | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 10,615 | $ 1,233 |
STOCK BASED COMPENSATION - Sche
STOCK BASED COMPENSATION - Schedule of fair value of restricted shares awarded using the Monte Carlo valuation model (Details) - Monte Carlo | 3 Months Ended |
Jun. 30, 2024 | |
April 1, 2024 | |
Class of Warrant or Right [Line Items] | |
Term (years) | 4 years 9 months 25 days |
Volatility | 36.62% |
Risk-free rate | 4.36% |
April 23, 2024 | |
Class of Warrant or Right [Line Items] | |
Term (years) | 4 years 9 months 3 days |
Volatility | 36.68% |
Risk-free rate | 4.65% |
June 24, 2024 | |
Class of Warrant or Right [Line Items] | |
Term (years) | 4 years 7 months 2 days |
Volatility | 36.89% |
Risk-free rate | 4.31% |
STOCK BASED COMPENSATION - Sc_2
STOCK BASED COMPENSATION - Schedule of the activity of the company's restricted stock outstanding (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2024 | |
Shares | ||
Restricted stock outstanding, beginning balance (in shares) | 983,205 | |
Granted (in shares) | 186,967 | |
Vested (in shares) | (168,797) | |
Forfeited/cancelled/expired (in shares) | 0 | |
Restricted stock outstanding, ending balance (in shares) | 1,001,375 | |
Weighted Average Fair Value | ||
Weighted average fair value, beginning balance | $ 57,598 | |
Granted | $ 12,969 | |
Vested | (8,047) | |
Forfeited/cancelled/expired | 0 | |
Weighted average fair value, ending balance | $ 62,520 |
LEASES - Disclosure of lease as
LEASES - Disclosure of lease assets and liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Leases [Abstract] | ||
Operating lease assets | $ 35,006 | $ 36,324 |
Operating lease liability | $ 35,390 | $ 35,794 |
LEASES - Schedule of lease obli
LEASES - Schedule of lease obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Operating Leases, Future Minimum Payments Receivable [Abstract] | ||
2025 | $ 9,138 | |
2026 | 11,987 | |
2027 | 10,661 | |
2028 | 6,626 | |
2029 | 1,873 | |
Thereafter | 2,852 | |
Total payments | 43,137 | |
Less: amounts representing interest | (7,747) | |
Operating lease liability | $ 35,390 | $ 35,794 |
Weighted average remaining lease term (in months) | 30 months | |
Weighted average discount rate | 14% |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Leases [Abstract] | |||
Short-term lease commitment | $ 1,896 | $ 152 | |
Rent expense for office space | $ 2,154 | $ 860 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Commitments and Contingencies Disclosure [Abstract] | ||
Unused commitments under lines of credits and guarantees | $ 263,874 | $ 207,519 |
Bank guarantees | 10,863 | 9,012 |
Total | $ 274,737 | $ 216,531 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions | Oct. 21, 2022 USD ($) |
Settlement of estate of shareholder | |
Loss Contingencies [Line Items] | |
Loss Contingency, damages paid | $ 8.4 |
SEGMENT REPORTING - Results by
SEGMENT REPORTING - Results by segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||
Fee and commission income | $ 115,489 | $ 98,703 |
Net gain/(loss) on trading securities | (52,102) | 31,816 |
Interest income | 226,004 | 149,349 |
Insurance underwriting income | 129,408 | 44,889 |
Net gain/(loss) on foreign exchange operations | 8,089 | 19,301 |
Net gain on derivative | 12,494 | (30,605) |
Other income, net | 11,333 | 2,757 |
TOTAL REVENUE, NET | 450,715 | 316,210 |
Fee and commission expense | 80,147 | 28,684 |
Interest expense | 145,718 | 95,046 |
Insurance claims incurred, net of reinsurance | 47,309 | 21,514 |
Payroll and bonuses | 57,524 | 31,630 |
Professional services | 7,268 | 6,625 |
Stock compensation expense | 10,615 | 1,233 |
Advertising expense | 17,201 | 8,100 |
General and administrative expenses | 45,105 | 24,475 |
(Recovery of)/provision for allowance for expected credit losses | (1,770) | 14,326 |
TOTAL EXPENSE | 409,117 | 231,633 |
INCOME BEFORE INCOME TAX | 41,598 | 84,577 |
Income tax (expense)/benefit | (7,339) | (16,656) |
NET INCOME | 34,259 | 67,921 |
Brokerage | ||
Segment Reporting Information [Line Items] | ||
Fee and commission income | 97,943 | 63,972 |
Net gain/(loss) on trading securities | 874 | 9,167 |
Interest income | 62,789 | 32,209 |
Insurance underwriting income | 0 | 0 |
Net gain/(loss) on foreign exchange operations | 9,957 | 111 |
Net gain on derivative | 876 | (5) |
Other income, net | 2,477 | 616 |
TOTAL REVENUE, NET | 174,916 | 106,070 |
Fee and commission expense | 5,677 | 5,858 |
Interest expense | 34,621 | 21,238 |
Insurance claims incurred, net of reinsurance | 0 | 0 |
Payroll and bonuses | 25,251 | 12,499 |
Professional services | 2,389 | 2,327 |
Stock compensation expense | 5,315 | 789 |
Advertising expense | 11,944 | 4,788 |
General and administrative expenses | 10,213 | 8,457 |
(Recovery of)/provision for allowance for expected credit losses | (329) | 240 |
TOTAL EXPENSE | 95,081 | 56,196 |
INCOME BEFORE INCOME TAX | 79,835 | 49,874 |
Income tax (expense)/benefit | (10,204) | (2,679) |
NET INCOME | 69,631 | 47,195 |
Banking | ||
Segment Reporting Information [Line Items] | ||
Fee and commission income | 2,796 | 13,166 |
Net gain/(loss) on trading securities | (50,007) | 14,520 |
Interest income | 146,063 | 99,094 |
Insurance underwriting income | 0 | 0 |
Net gain/(loss) on foreign exchange operations | (19,695) | 19,840 |
Net gain on derivative | 11,618 | (30,774) |
Other income, net | 427 | (192) |
TOTAL REVENUE, NET | 91,202 | 115,654 |
Fee and commission expense | 2,526 | 3,983 |
Interest expense | 99,887 | 62,699 |
Insurance claims incurred, net of reinsurance | 0 | 0 |
Payroll and bonuses | 6,117 | 9,512 |
Professional services | 96 | 80 |
Stock compensation expense | 1,956 | 62 |
Advertising expense | 1,064 | 2,036 |
General and administrative expenses | 12,385 | 6,398 |
(Recovery of)/provision for allowance for expected credit losses | (1,121) | 11,284 |
TOTAL EXPENSE | 122,910 | 96,054 |
INCOME BEFORE INCOME TAX | (31,708) | 19,600 |
Income tax (expense)/benefit | 3,225 | 0 |
NET INCOME | (28,483) | 19,600 |
Insurance | ||
Segment Reporting Information [Line Items] | ||
Fee and commission income | 115 | 42 |
Net gain/(loss) on trading securities | 139 | 9,104 |
Interest income | 15,699 | 16,008 |
Insurance underwriting income | 129,408 | 44,889 |
Net gain/(loss) on foreign exchange operations | 1,120 | (429) |
Net gain on derivative | 0 | 0 |
Other income, net | 782 | 763 |
TOTAL REVENUE, NET | 147,263 | 70,377 |
Fee and commission expense | 64,887 | 17,424 |
Interest expense | 3,883 | 8,419 |
Insurance claims incurred, net of reinsurance | 47,309 | 21,514 |
Payroll and bonuses | 6,861 | 3,326 |
Professional services | 277 | 126 |
Stock compensation expense | 875 | 37 |
Advertising expense | 350 | 145 |
General and administrative expenses | 5,218 | 1,249 |
(Recovery of)/provision for allowance for expected credit losses | 325 | 1,222 |
TOTAL EXPENSE | 129,985 | 53,462 |
INCOME BEFORE INCOME TAX | 17,278 | 16,915 |
Income tax (expense)/benefit | (3,475) | 37 |
NET INCOME | 13,803 | 16,952 |
Other | ||
Segment Reporting Information [Line Items] | ||
Fee and commission income | 14,635 | 21,523 |
Net gain/(loss) on trading securities | (3,108) | (975) |
Interest income | 1,453 | 2,038 |
Insurance underwriting income | 0 | 0 |
Net gain/(loss) on foreign exchange operations | 16,707 | (221) |
Net gain on derivative | 0 | 174 |
Other income, net | 7,647 | 1,570 |
TOTAL REVENUE, NET | 37,334 | 24,109 |
Fee and commission expense | 7,057 | 1,419 |
Interest expense | 7,327 | 2,690 |
Insurance claims incurred, net of reinsurance | 0 | 0 |
Payroll and bonuses | 19,295 | 6,293 |
Professional services | 4,506 | 4,092 |
Stock compensation expense | 2,469 | 345 |
Advertising expense | 3,843 | 1,131 |
General and administrative expenses | 17,289 | 8,371 |
(Recovery of)/provision for allowance for expected credit losses | (645) | 1,580 |
TOTAL EXPENSE | 61,141 | 25,921 |
INCOME BEFORE INCOME TAX | (23,807) | (1,812) |
Income tax (expense)/benefit | 3,115 | (14,014) |
NET INCOME | $ (20,692) | $ (15,826) |
SEGMENT REPORTING - Net assets
SEGMENT REPORTING - Net assets by segment (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 8,483,560 | $ 8,301,930 |
Total liabilities | 7,331,381 | 7,134,972 |
Net assets | 1,152,179 | 1,166,958 |
Brokerage | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,887,774 | 2,586,803 |
Total liabilities | 2,175,457 | 1,973,887 |
Net assets | 712,317 | 612,916 |
Banking | ||
Segment Reporting Information [Line Items] | ||
Total assets | 4,788,782 | 4,939,626 |
Total liabilities | 4,384,736 | 4,389,745 |
Net assets | 404,046 | 549,881 |
Insurance | ||
Segment Reporting Information [Line Items] | ||
Total assets | 545,868 | 529,517 |
Total liabilities | 411,274 | 402,865 |
Net assets | 134,594 | 126,652 |
Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | 261,136 | 245,984 |
Total liabilities | 359,914 | 368,475 |
Net assets | $ (98,778) | $ (122,491) |
STATUTORY CAPITAL REQUIREMENT_2
STATUTORY CAPITAL REQUIREMENTS - Narrative (Details) | 3 Months Ended |
Jun. 30, 2024 subsidiary | |
Kazakhstan | |
Restricted Equity [Line Items] | |
Number of insurance subsidiaries | 2 |
STATUTORY CAPITAL REQUIREMENT_3
STATUTORY CAPITAL REQUIREMENTS - Net capital/eligible equity, required minimum capital, excess regulatory capital and retained earnings (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Restricted Equity [Line Items] | ||
Net Capital/Eligible Equity | $ 885,302 | $ 819,272 |
Required Minimum capital/solvency | 238,965 | 245,935 |
Excess regulatory capital | 646,337 | 573,337 |
Retained earnings | 1,091,357 | 824,384 |
Freedom KZ | ||
Restricted Equity [Line Items] | ||
Net Capital/Eligible Equity | 98,663 | 107,064 |
Required Minimum capital/solvency | 392 | 413 |
Excess regulatory capital | 98,271 | 106,651 |
Retained earnings | 119,274 | 122,416 |
Freedom Bank KZ | ||
Restricted Equity [Line Items] | ||
Net Capital/Eligible Equity | 287,384 | 329,738 |
Required Minimum capital/solvency | 180,584 | 196,594 |
Excess regulatory capital | 106,800 | 133,144 |
Retained earnings | 158,915 | 193,376 |
Freedom Life | ||
Restricted Equity [Line Items] | ||
Net Capital/Eligible Equity | 42,612 | 50,757 |
Required Minimum capital/solvency | 11,746 | 12,395 |
Excess regulatory capital | 30,866 | 38,362 |
Retained earnings | 65,887 | 57,085 |
Freedom EU | ||
Restricted Equity [Line Items] | ||
Net Capital/Eligible Equity | 269,057 | 269,424 |
Required Minimum capital/solvency | 10,971 | 10,868 |
Excess regulatory capital | 258,086 | 258,556 |
Retained earnings | 567,393 | 319,484 |
Freedom Insurance | ||
Restricted Equity [Line Items] | ||
Net Capital/Eligible Equity | 31,981 | 30,011 |
Required Minimum capital/solvency | 11,746 | 12,395 |
Excess regulatory capital | 20,235 | 17,616 |
Retained earnings | 23,447 | 19,773 |
Freedom Global | ||
Restricted Equity [Line Items] | ||
Net Capital/Eligible Equity | 133,246 | 16,428 |
Required Minimum capital/solvency | 22,597 | 12,352 |
Excess regulatory capital | 110,649 | 4,076 |
Retained earnings | 161,302 | 117,468 |
Freedom Armenia ("Freedom AR") | ||
Restricted Equity [Line Items] | ||
Net Capital/Eligible Equity | 13,055 | 7,317 |
Required Minimum capital/solvency | 775 | 763 |
Excess regulatory capital | 12,280 | 6,554 |
Retained earnings | 12,791 | 6,447 |
Other regulated operating subsidiaries | ||
Restricted Equity [Line Items] | ||
Net Capital/Eligible Equity | 9,304 | 8,533 |
Required Minimum capital/solvency | 154 | 155 |
Excess regulatory capital | 9,150 | 8,378 |
Retained earnings | $ (17,652) | $ (11,665) |
Uncategorized Items - frhc-2024
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2022-02 [Member] |