v3.26.1
LOANS ISSUED
 12 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
LOANS ISSUED LOANS ISSUED
Loans issued as of March 31, 2026, consisted of the following:
Amount OutstandingDue DatesAverage Interest Rate Fair Value of
Collateral		Loan Currency
 
Mortgage loans$1,149,000  April 2026 - May 2051 12.2%1,148,860  KZT/TJS
Corporate loans351,713  April 2026 - December 2040 18.0%239,226  KZT
Loans to SME195,495  April 2026 - November 2032 29.7%28,141  KZT
Purchased retail loans182,130  April 2026 - May 2031 22.6%—  KZT
Car loans167,805  April 2026 - March 2033 25.4%164,930  KZT
Retail loans100,927  April 2026 - July 2045 42.0%5,240  KZT
Other32,335  April 2026 - May 2030
19.0%/5.2%/ 5.0%
26 KZT/EUR/USD
Allowance for loans issued(101,799)
Total loans issued$2,077,606 

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 Consolidated Statements of Cash Flows. Under this program, borrowers can receive a mortgage at an interest rate of 7%, subject to not less than 20% down payment, for 25 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 4.5% of the 7% interest received to the Program Operator. The interest paid to the Program Operator is recognized as interest expense in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. The remaining 2.5% 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 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 Consolidated Balance Sheets. This liability accrues 5% interest annual as described above. As of March 31, 2026 and March 31, 2025, the corresponding liability amounted to $554,594 and $503,705, respectively.

As of March 31, 2026 and March 31, 2025, mortgage loans include loans under the state mortgage program "7-20-25" with an aggregate principal amount of $568,065 and $511,851, respectively, were presented within loans issued in the Consolidated Balance Sheets.
The Group historically entered into agreement with Microfinance Organization Freedom Finance Credit LLP ("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. Following the successful pilot, the Company considered either acquire FFIN Credit from Mr. Turlov or implement an in-house solution to replicate its functions, ensuring continuity and scalability of the lending operations.

Although the Group obtained legal title to uncollateralized retail loans purchased from FFIN Credit, the Group did not recognize such loans in its consolidated financial statements under U.S. GAAP, as the transactions did not qualify for sale accounting due to contractual provisions under which FFIN Credit retained the credit risk. Accordingly, the Group accounted for these arrangements as financing transactions similar to secured borrowing-type arrangement, recognizing loans receivable from FFIN Credit within loans issued on the Condensed Consolidated Balance Sheets, while the underlying customer loans were treated as collateral.

Beginning in September 2025, the Company begun originating these loans through its banking subsidiary and discontinued the purchase of unsecured consumer loans from FFIN Credit.

During the fiscal year ended March 31, 2026, FFIN Credit and the Group agreed that FFIN Credit would make a compensation payment to the Group of approximately $23 million ($20 million discounted), payable over a period of up to two years. In exchange, the Company agreed to release FFIN Credit from the contractual provisions that provided credit protection to the Company covering a total of $215 million of outstanding loans at December 31, 2025. As a result of these modifications, the Group determined that it should recognize the loans previously purchased from FFIN Credit as of December 31, 2025 in the amount of $186 million.

The total accrued interest for loans issued amounted $20,133 as of March 31, 2026 and $13,385 as of March 31, 2025.
Loans issued as of March 31, 2025, consisted of the following:
 Amount OutstandingDue DatesAverage Interest Rate Fair Value of
Collateral		Loan Currency
Mortgage loans$924,530 April 2025 - March 205011.4%$924,386 KZT
Loans to SME244,217 April 2025 - February 203228.6%35,141 KZT
Right of claim for purchased retail loans183,635 April 2025 - March 203015.0%183,635 KZT
Car loans156,340 April 2025 - April 203224.2%155,320 KZT
Corporate loans149,143 April 2025 - December 203119.1%92,739 KZT
Retail loans4,847 September 2025 - March 204521.2%663 KZT
Other7,838 April 2025 - September 2029
18.0%/12.7%/3.0%
29 
KZT/EUR\USD/
Allowance for loans issued(75,115)
Total loans issued$1,595,435 
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. 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 12 months 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 March 31, 2026.
Term Loans by Origination Year
20262025202420232022PriorRevolving loansTotal
Mortgage loans$291,663 $307,056 $171,398 $352,105 $26,778 $— $— $1,149,000 
that are not credit impaired290,224 302,323 168,147 348,614 26,374 — — 1,135,682 
with significant increase in credit risk1,245 2,710 1,860 1,875 243 — — 7,933 
that are credit impaired194 2,023 1,391 1,616 161 — — 5,385 
Car loans64,088 4,164 78,497 21,056 — — — 167,805 
that are not credit impaired63,205 4,041 71,901 13,687 — — — 152,834 
with significant increase in credit risk542 27 1,080 404 — — — 2,053 
that are credit impaired341 96 5,516 6,965 — — — 12,918 
Loans to SME52,758 59,627 72,382 10,728 — — — 195,495 
that are not credit impaired49,372 53,303 60,112 8,363 — — — 171,150 
with significant increase in credit risk1,392 2,258 3,192 506 — — — 7,348 
that are credit impaired1,994 4,066 9,078 1,859 — — — 16,997 
Purchased retail loans115,550 57,578 8,734 268 — — — 182,130 
that are not credit impaired105,399 49,929 7,431 223 — — — 162,982 
with significant increase in credit risk4,771 3,014 514 14 — — — 8,313 
that are credit impaired5,380 4,635 789 31 — — — 10,835 
Corporate loans310,024 41,594 95 — — — — 351,713 
that are not credit impaired308,278 41,050 95 — — — — 349,423 
with significant increase in credit risk647 — — — — — — 647 
that are credit impaired1,099 544 — — — — — 1,643 
Retail loans97,334 2,853 708 32 — — — 100,927 
that are not credit impaired95,717 2,409 470 30 — — — 98,626 
with significant increase in credit risk1,064 93 20 — — — — 1,177 
that are credit impaired553 351 218 2 — — — 1,124 
Other24,403 258 1,214 6,437 23 — — 32,335 
that are not credit impaired24,403 258 1,207 6,437 23 — — 32,328 
with significant increase in credit risk— — — — — — — — 
that are credit impaired— — 7 — — — — 7 
Total$955,820 $473,130 $333,028 $390,626 $26,801 $— $— $2,179,405 
The table below presents the Group's loan portfolio by credit quality classification as of March 31, 2025.
Term Loans by Origination Fiscal Year
20252024202320222021PriorRevolving loansTotal
Mortgage loans$336,535 $186,816 $370,588 $30,591 $— $— $— $924,530 
that are not credit impaired336,051 184,610 367,918 29,876 — — — 918,455 
with significant increase in credit risk410 1,361 1,402 340 — — — 3,513 
that are credit impaired74 845 1,268 375 — — — 2,562 
Loans to SME98,556 126,835 18,826 — — — — 244,217 
that are not credit impaired96,338 109,461 15,647 — — — — 221,446 
with significant increase in credit risk1,185 3,612 663 — — — — 5,460 
that are credit impaired1,033 13,762 2,516 — — — — 17,311 
Right of claim for purchased retail loans151,237 30,702 1,688 8 — — — 183,635 
that are not credit impaired151,237 30,702 1,688 8 — — — 183,635 
with significant increase in credit risk— — — — — — — — 
that are credit impaired— — — — — — — — 
Car loans5,974 116,459 33,907 — — — — 156,340 
that are not credit impaired5,974 110,871 26,014 — — — — 142,859 
with significant increase in credit risk— 1,603 837 — — — — 2,440 
that are credit impaired— 3,985 7,056 — — — — 11,041 
Corporate loans148,599 470 74 — — — — 149,143 
that are not credit impaired146,785 470 74 — — — — 147,329 
with significant increase in credit risk1,813 — — — — — — 1,813 
that are credit impaired1 — — — — — — 1 
Retail loans3,774 1,066 7 — — — — 4,847 
that are not credit impaired3,682 887 5 — — — — 4,574 
with significant increase in credit risk34 18 — — — — — 52 
that are credit impaired58 161 2 — — — — 221 
Other232 1,237 6,323 46 — — — 7,838 
that are not credit impaired232 1,229 6,323 46 — — — 7,830 
with significant increase in credit risk— — — — — — — — 
that are credit impaired— 8 — — — — — 8 
Total$744,907 $463,585 $431,413 $30,645 $— $— $— $1,670,550 
Aging analysis of past due loans as of March 31, 2026 and March 31, 2025, is as follows:
March 31, 2026
Loans 30-59 days past due Loans 60-89 days past due Loans 90 days or more past due and still accruingCurrent loansTotal
Mortgage loans5,781 2,152 5,385 1,135,682 1,149,000 
Corporate loans468 179 1,643 349,423 351,713 
Loans to SME3,980 3,368 16,997 171,150 195,495 
Purchased retail loans
4,348 3,965 10,835 162,982 182,130 
Car loans1,423 630 12,918 152,834 167,805 
Retail loans701 476 1,124 98,626 100,927 
Other— — 7 32,328 32,335 
Total$16,701 $10,770 $48,909 $2,103,025 $2,179,405 
March 31, 2025
Loans 30-59 days past due Loans 60-89 days past due Loans 90 days or more past due and still accruingCurrent loansTotal
Mortgage loans$2,835 $678 $2,562 $918,455 924,530 
Loans to SME3,325 2,135 17,311 221,446 244,217 
Right of claim for purchased retail loans— — — 183,635 183,635 
Car loans1,548 892 11,041 142,859 156,340 
Corporate loans730 1,083 1 147,329 149,143 
Retail loans36 16 221 4,574 4,847 
Other— — 8 7,830 7,838 
Total$8,474 $4,804 $31,144 $1,626,128 $1,670,550 
The activity in the allowance for credit losses as of March 31, 2026 and March 31, 2025 is summarized in the following tables.
Allowance for credit losses
Mortgage loanLoans to SMECorporate loansRetail loansCar loansPurchased retail loansOtherTotal
March 31, 2025
(10,699)(35,192)(2,640)(761)(8,465)(17,333)(25)$(75,115)
Charges(7,515)(32,115)(6,348)(8,878)(8,238)(33,653)(50)(96,797)
Reversals11,064 15,674 3,793 3,544 3,442 22,242 — 59,759 
Write off40 14,897 — — 253 — — 15,190 
Modification— — — — — 908 — 908 
Forex(278)(2,016)(352)(478)(828)(1,792)— (5,744)
March 31, 2026
$(7,388)$(38,752)$(5,547)$(6,573)$(13,836)$(29,628)$(75)$(101,799)
Allowance for credit losses
Mortgage loanLoans to SMECorporate loansRetail loansCar loansRight of claim for purchased retail loansOtherTotal
March 31, 2024
(3,033)(19,556)(10)(150)(14,262)(6,577)(31)$(43,619)
Charges(10,043)(38,653)(4,191)(754)(5,335)(20,324)(24)(79,324)
Reversals1,694 6,757 1,449 96 6,761 8,331 — 25,088 
Write off1 13,276 — 4 2,914 — 30 16,225 
Forex682 2,984 112 43 1,457 1,237 — 6,515 
March 31, 2025
$(10,699)$(35,192)$(2,640)$(761)$(8,465)$(17,333)$(25)$(75,115)