Almaty, August 20, 2024
The total number of client accounts at Freedom Broker as of July 1, 2024, was 2,798,000. Since the beginning of the year, more than 81 million transactions with securities have been conducted.
Top 5 Stocks for the First Half of 2024 Based on Transactions by Freedom Broker Clients:
By Number of Transactions:
JSC People's Bank of Kazakhstan (HSBK)
JSC Air Astana (AIRA)
JSC KazTransOil (KZTO)
JSC NC KazMunayGas (KMGZ)
JSC Bank CenterCredit (CCBN)
Marathon Digital Holdings (MARA)
Tesla (TSLA)
Freedom Holding Corp. (FRHC)
Nvidia (NVDA)
Coinbase Global (COIN)
By Transaction Amount:
JSC Air Astana (AIRA)
JSC People's Bank of Kazakhstan (HSBK)
JSC NAC Kazatomprom (KZAP)
JSC NC KazMunayGas (KMGZ)
JSC Kcell (KCEL)
Nvidia (NVDA)
Alibaba Group Holdings (BABA)
AT&T (T)
Tesla (TSLA)
Coinbase Global (COIN)
In June 2024, the international rating agency S&P Global Ratings changed the outlook for the ratings of JSC Freedom Finance and Freedom Finance Global PLC from negative to positive and affirmed the long-term and short-term credit ratings at B/B. The national scale ratings of JSC Freedom Finance were upgraded to kzBBB-.
JSC Freedom Finance Results for the First Half of 2024*
As of July 1, 2024, assets decreased by 199 billion tenge (628%) compared to December 31, 2023, amounting to 297 billion tenge. This was due to a reduction in the volume of securities in the trading portfolio by 275 billion tenge or by 129% following the realization of positive results from previously purchased securities. At the same time, there was a significant increase in the volume of reverse repo operations to 69 billion tenge.
Liabilities decreased by 224 billion tenge or by 136% compared to December 31, 2023, amounting to 1,423 billion tenge due to a reduction in the volume of direct repo operations by 22 billion tenge or by 136%.
Equity increased by 25 billion tenge or by 16% compared to December 31, 2023, reaching 1,548 billion tenge.
Net profit decreased by 41 billion tenge or by 622% compared to the same period last year, amounting to 25 billion tenge. This was due to a reduction in: income from underwriting services fees by 1 billion tenge or by 384%, brokerage services by 11 billion or 305%. Additionally, there was an increase in: expenses related to interest payments on repo operations by 7,886 million tenge or by 84%; operating expenses by 7,469 million tenge or by 159%. The decline in demand for underwriting services is associated with a gradual decrease in the base rate, which influences the decisions of many issuers awaiting more favorable conditions for raising funds through bond issuance. This trend is expected to continue until the fourth quarter of this year. The decrease in income from brokerage services is offset by an increase in a similar indicator in Freedom Finance Global.
The charter capital amounts to 985 billion tenge.
As of July 1, 2024, JSC Freedom Finance is an official market maker for 104 types of securities traded on the Kazakhstan Stock Exchange (KASE) and for 10 types on the Astana International Exchange (AIX). The company continues to maintain its leadership in the KASE member activity ranking. Based on the results of the second quarter of this year, JSC Freedom Finance ranked first in three market sectors: equity and debt securities, repo.
Freedom Finance Global Results for the First Quarter of Fiscal Year 2025
The assets of Freedom Finance Global at the end of the first quarter of fiscal year 2025 amounted to $2,649 million, with an 18% increase during the reporting period due to an increase in cash and cash equivalents on the company's accounts by $483 million or by 32%.
Liabilities for the reporting period decreased by $23 million or by 26%, amounting to $864 million due to a reduction in direct repo transactions by $57 million or by 119%.
Equity as of July 1, 2024, amounted to $1,785 million, increasing by 32% over the year due to an increase in retained earnings during the reporting period.
Net profit for the reporting period amounted to $526 million, showing a 905% increase compared to the same period last year, mainly due to an increase in interest income by $486 million or by 147%. It is also worth noting the increase in income from brokerage services by 77% to $211 million.
Notes:
The key financial indicators are from the separate (unaudited) financial statements of JSC Freedom Finance as of July 1, 2024.
** For the company, the first quarter of fiscal year 2025 ended on June 30, 2024.
JSC Freedom Finance provides its clients with brokerage services on KASE and AIX, market maker services for maintaining securities quotations, organization of debt and equity financing, and financial consulting services.
Freedom Finance Global is a broker with new opportunities, specializing in servicing retail investors. The company is registered in the AIFC, holds a license from AFSA, and operates under elements of English law. Clients of Freedom Finance Global have direct access to exchange operations on international financial markets (NYSE/NASDAQ, London Stock Exchange, HKEX, Frankfurt Stock Exchange), KASE, and AIX, as well as the most popular and in-demand service of the holding – participation in initial public offerings (IPOs).
The companies are part of the international investment group Freedom Holding Corp. The holding's shares have been listed (since October 15, 2019) on the Nasdaq Capital Market under the ticker FRHC. Freedom Holding Corp.'s activities are regulated by the U.S. Securities and Exchange Commission (SEC).
Media Contacts:
Ramina Fakhrutdinova – Advisor to the Chairman of the Board of Directors on PR, JSC Freedom Finance
Email: [email protected]
