v3.26.1
LOANS ISSUED
 3 Months Ended
Jun. 30, 2026
Loans and Leases Receivable Disclosure [Abstract]  
LOANS ISSUED LOANS ISSUED
Loans issued as of June 30, 2026, consisted of the following:
Amount OutstandingDue DatesAverage Interest Rate Fair Value of
Collateral		Loan Currency
Mortgage loans$1,142,148  July 2026 - June 2051 12.1%$1,141,471  KZT/TJS
Corporate loans354,243  July 2026 - December 2040 17.2%287,054  KZT
Loans to SME179,612  July 2026 - June 2033 29.4%26,610  KZT
Car loans162,438  July 2026 - August 2033 26.0%159,015  KZT
Purchased retail loans155,553  July 2026 - June 2031 22.7%—  KZT
Retail loans118,745  July 2026 - July 2045 41.9%6,982 
 KZT
Other38,066  July 2026 - May 2033
19.4%5.0%5.2%
36 
 KZT/EUR/USD
Allowance for loans issued(114,290)
Total loans issued$2,036,515 
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% 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 Condensed 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 Condensed 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 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 Consolidated Balance Sheets. This liability accrues 4.5% interest annually as described above. As of June 30, 2026 and March 31, 2026, the corresponding liability amounted to $561,891 and $554,594, respectively.
As of June 30, 2026 and March 31, 2026, mortgage loans include loans under the state mortgage program "7-20-25" with an aggregate principal amount of $573,114 and $568,065, respectively, were presented within loans issued in the Condensed 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 began originating these loans through its banking subsidiary and has significantly reduced purchase volumes of unsecured consumer loans from FFIN Credit.

During the 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 to $23,191 as of June 30, 2026 and $20,133 as of March 31, 2026.

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 205112.2%$1,148,860 KZT/TJS
Corporate loans351,713 April 2026 - December 204018.0%239,226 KZT
Loans to SME195,495 April 2026 - November 203229.7%28,141 KZT
Purchased retail loans182,130 April 2026 - May 203122.6%— KZT
Car loans167,805 April 2026 - March 203325.4%164,930 KZT
Retail loans100,927 April 2026 - July 204542.0%5,240 KZT
Other32,335 April 2026 - May 2030
19.0%/5.20%/5.00%
26 
KZT/EUR/USD
Allowance for loans issued(101,799)
Total loans issued$2,077,606 
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 June 30, 2026.
Term Loans by Origination Fiscal Year
20272026202520242023PriorRevolving loansTotal
Mortgage loans$29,805 $283,775 $295,519 $165,277 $342,085 $25,687 $— $1,142,148 
that are not credit impaired29,805 281,193 290,095 161,684 338,504 25,267 — 1,126,548 
with significant increase in credit risk— 2,201 3,320 2,446 1,892 204 — 10,063 
that are credit impaired— 381 2,104 1,147 1,689 216 — 5,537 
Loans to SME6,072 47,933 52,427 63,727 9,453 — — 179,612 
that are not credit impaired6,072 43,139 45,315 50,035 7,135 — — 151,696 
with significant increase in credit risk— 1,228 1,471 2,702 313 — — 5,714 
that are credit impaired— 3,566 5,641 10,990 2,005 — — 22,202 
Purchased retail loans
4,542 151,011 — — — — — 155,553 
that are not credit impaired4,526 124,185 — — — — — 128,711 
with significant increase in credit risk16 6,173 — — — — — 6,189 
that are credit impaired— 20,653 — — — — — 20,653 
Corporate loans73,934 241,457 38,764 88 — — — 354,243 
that are not credit impaired73,934 238,515 38,194 88 — — — 350,731 
with significant increase in credit risk— 1,445 19 — — — — 1,464 
that are credit impaired— 1,497 551 — — — — 2,048 
Car loans9,556 59,951 3,824 70,114 18,993 — — 162,438 
that are not credit impaired9,556 58,424 3,696 63,672 11,638 — — 146,986 
with significant increase in credit risk— 924 23 944 395 — — 2,286 
that are credit impaired— 603 105 5,498 6,960 — — 13,166 
Retail loans34,105 81,335 2,635 615 55 — — 118,745 
that are not credit impaired34,105 76,925 2,164 382 53 — — 113,629 
with significant increase in credit risk— 2,220 59 6 — — — 2,285 
that are credit impaired— 2,190 412 227 2 — — 2,831 
Other4,951 25,179 255 1,202 6,462 17 — 38,066 
that are not credit impaired4,951 25,179 255 1,195 6,462 17 — 38,059 
with significant increase in credit risk— — — — — — — — 
that are credit impaired— — — 7 — — — 7 
Total$162,965 $890,641 $393,424 $301,023 $377,048 $25,704 $— $2,150,805 
The table below presents the Group's loan portfolio by credit quality classification as of March 31, 2026.
Term Loans by Origination Fiscal 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 
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 
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 
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 
    
Aging analysis of past due loans as of June 30, 2026 and March 31, 2026, is as follows:
June 30, 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 loans$6,699 $3,364 $5,537 $1,126,548 $1,142,148 
Corporate loans532 932 2,048 350,731 354,243 
Purchased retail loans
3,218 2,971 20,653 128,711 155,553 
Loans to SME2,823 2,891 22,202 151,696 179,612 
Car loans1,450 836 13,166 146,986 162,438 
Retail loans1,275 1,010 2,831 113,629 118,745 
Other— — 7 38,059 38,066 
Total$15,997 $12,004 $66,444 $2,056,360 $2,150,805 
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 loans$5,781 $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 loans4,348 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 $2,179,405 
The activity in the allowance for credit losses for the three months ended June 30, 2026 and 2025 is summarized in the following tables.
Allowance for credit losses
Mortgage loanLoans to SMECorporate loansRetail loansCar loans
Purchased retail loans
OtherTotal
March 31, 2026
(7,388)(38,752)(5,547)(6,573)(13,836)(29,628)(75)$(101,799)
Charges(1,233)(7,440)(1,569)(4,442)(1,504)(8,127)— (24,315)
Reversal1,381 2,956 1,417 737 1,286 3,408 3 11,188 
Write off— 71 1 — 6 — — 78 
Forex28 206 24 69 58 173 — 558 
June 30, 2026
$(7,212)$(42,959)$(5,674)$(10,209)$(13,990)$(34,174)$(72)$(114,290)
Allowance for credit losses
Mortgage loanLoans to SMECorporate loansRetail loansCar loansRight of claim for purchased retail loansOtherTotal
March 31, 2025(10,699)(35,192)(2,640)(761)(8,465)(17,333)(25)$(75,115)
Charges(2,027)(9,498)(1,122)(430)(1,055)(8,239)(2,925)(25,296)
Reversal3,571 3,186 2,013 148 1,145 6,892 — 16,955 
Write off3 — — — — — 24 27 
Forex296 1,093 68 27 247 525 — 2,256 
June 30, 2025$(8,856)$(40,411)$(1,681)$(1,016)$(8,128)$(18,155)$(2,926)$(81,173)