Cover
Cover - shares | 3 Months Ended | |
Jun. 30, 2023 | Oct. 06, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
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 $0.001 per share | |
Trading Symbol | FRHC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 59,761,391 | |
Entity Central Index Key | 0000924805 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Document Period End Date | Jun. 30, 2023 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
ASSETS | ||
Cash and cash equivalents (including $— and $35,549 from related parties) | $ 597,364 | $ 581,417 |
Restricted cash (including $59,914 and $114,885 from related parties) | 501,887 | 445,528 |
Trading securities | 3,369,066 | 2,412,556 |
Available-for-sale securities, at fair value | 221,445 | 239,053 |
Margin lending, brokerage and other receivables, net (including $384,688 and $294,985 from related parties) | 520,590 | 376,329 |
Loans issued (including $142,336 and $121,177 from related parties) | 1,058,148 | 826,258 |
Fixed assets, net | 63,852 | 54,017 |
Intangible assets, net | 42,257 | 17,615 |
Goodwill | 50,951 | 14,192 |
Right-of-use asset | 34,461 | 30,345 |
Insurance contract assets | 12,209 | 13,785 |
Other assets, net (including $— and $16,089 from related parties) | 67,535 | 73,463 |
Total assets | 6,539,765 | 5,084,558 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Securities repurchase agreement obligations | 2,571,982 | 1,517,416 |
Customer liabilities (including $79,679 and $130,210 from related parties) | 2,122,047 | 1,925,247 |
Margin lending and trade payables (including $— and $3,239 from related parties) | 182,627 | 122,900 |
Liabilities from insurance activity | 198,147 | 182,502 |
Current income tax liability | 15,772 | 4,547 |
Debt securities issued | 65,041 | 60,025 |
Lease liability | 34,929 | 30,320 |
Payable for acquisition (including $15,769 and $— to related parties) | 15,769 | 7,188 |
Liability arising from continuing involvement | 459,122 | 440,805 |
Other liabilities (including $7,759 and $— to related parties) | 48,593 | 22,872 |
Total liabilities | 5,714,029 | 4,313,822 |
Commitments and Contingent Liabilities (Note 23) | 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; 59,659,191 shares issued and outstanding as of June 30, 2023, and March 31, 2023, respectively | 59 | 59 |
Additional paid in capital | 165,395 | 164,162 |
Retained earnings | 691,302 | 647,064 |
Accumulated other comprehensive loss | (34,479) | (34,000) |
TOTAL FRHC SHAREHOLDERS’ EQUITY | 822,277 | 777,285 |
Non-controlling interest | 3,459 | (6,549) |
TOTAL SHAREHOLDERS’ EQUITY | 825,736 | 770,736 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 6,539,765 | $ 5,084,558 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Cash and cash equivalents (including $— and $35,549 from related parties) | $ 597,364 | $ 581,417 |
Restricted cash (including $59,914 and $114,885 from related parties) | 501,887 | 445,528 |
Margin lending, brokerage and other receivables, net (including $384,688 and $294,985 from related parties) | 520,590 | 376,329 |
Loans issued (including $142,336 and $121,177 from related parties) | 1,058,148 | 826,258 |
Other assets, net (including $— and $16,089 from related parties) | 67,535 | 73,463 |
Customer liabilities (including $79,679 and $130,210 from related parties) | 2,122,047 | 1,925,247 |
Margin lending and trade payables (including $— and $3,239 from related parties) | 182,627 | 122,900 |
Payable for acquisition (including $15,769 and $— to related parties) | 15,769 | 7,188 |
Other liabilities (including $7,759 and $— to related parties) | $ 48,593 | $ 22,872 |
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) | 59,659,191 | 59,659,191 |
Common stock, outstanding (in shares) | 59,659,191 | 59,659,191 |
Related party | ||
Cash and cash equivalents (including $— and $35,549 from related parties) | $ 0 | $ 35,549 |
Restricted cash (including $59,914 and $114,885 from related parties) | 59,914 | 114,885 |
Margin lending, brokerage and other receivables, net (including $384,688 and $294,985 from related parties) | 384,688 | 294,985 |
Loans issued (including $142,336 and $121,177 from related parties) | 142,336 | 121,177 |
Other assets, net (including $— and $16,089 from related parties) | 0 | 16,089 |
Customer liabilities (including $79,679 and $130,210 from related parties) | 79,679 | 130,210 |
Margin lending and trade payables (including $— and $3,239 from related parties) | 0 | 3,239 |
Payable for acquisition (including $15,769 and $— to related parties) | 15,769 | 0 |
Other liabilities (including $7,759 and $— to related parties) | $ 7,759 | $ 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue: | ||
Fee and commission income (including $15,896 and $75,604 from related parties) | $ 98,703 | $ 89,446 |
Net gain on trading securities | 31,816 | 4,433 |
Interest income (including $5,352 and $3,528 from related parties) | 149,349 | 48,563 |
Insurance underwriting income | 44,889 | 24,241 |
Net gain on foreign exchange operations | 19,301 | 4,593 |
Net (loss)/gain on derivative | (30,605) | 1,266 |
Other income | 2,757 | (32) |
TOTAL REVENUE, NET | 316,210 | 172,510 |
Expense: | ||
Fee and commission expense (including $99 and $156 from related parties) | 28,684 | 23,315 |
Interest expense | 95,046 | 40,071 |
Insurance claims incurred, net of reinsurance | 21,514 | 16,692 |
Payroll and bonuses | 31,630 | 16,413 |
Professional services | 6,625 | 4,255 |
Stock compensation expense | 1,233 | 1,876 |
Advertising expense | 8,100 | 3,837 |
General and administrative expense | 24,475 | 11,618 |
Allowance for expected credit losses | 14,326 | 2,428 |
TOTAL EXPENSE | 231,633 | 120,505 |
INCOME BEFORE INCOME TAX | 84,577 | 52,005 |
Income tax expense | (16,656) | (8,879) |
INCOME FROM CONTINUING OPERATIONS | 67,921 | 43,126 |
Income before income tax expense of discontinued operations | 0 | 19,102 |
Income tax expense of discontinued operations | 0 | (3,156) |
Income from discontinued operations | 0 | 15,946 |
NET INCOME | 67,921 | 59,072 |
Less: Net loss attributable to non-controlling interest in subsidiary | (181) | (1,994) |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 68,102 | 61,066 |
OTHER COMPREHENSIVE INCOME | ||
Change in unrealized gain on investments available-for-sale, net of tax effect | 2,239 | 866 |
Reclassification adjustment for net realized (loss)/gain on available-for-sale investments disposed of in the period, net of tax effect | (958) | 593 |
Foreign currency translation adjustments | (1,760) | 21,990 |
OTHER COMPREHENSIVE (LOSS)/ INCOME | (479) | 23,449 |
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS | 67,442 | 82,521 |
Less: Comprehensive loss attributable to non-controlling interest in subsidiary | (181) | (1,994) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 67,623 | $ 84,515 |
EARNINGS PER COMMON SHARE (In U.S. dollars): | ||
Earnings from continuing operations per common share - basic (in USD per share) | $ 1.16 | $ 0.72 |
Earnings from continuing operations per common share - diluted (in USD per share) | 1.15 | 0.72 |
Earnings from discontinued operations per common share - basic (in USD per share) | 0 | 0.27 |
Earnings from discontinued operations per common share - Diluted (in USD per share) | 0 | 0.27 |
Earnings per common share-basic (in USD per share) | 1.16 | 1.03 |
Earnings per common share- diluted (in USD per share) | $ 1.15 | $ 1.03 |
Weighted average number of shares, basic (in shares) | 58,512,215,000 | 59,542,212,000 |
Weighted average number of shares, diluted (in shares) | 59,293,691,000 | 59,542,212,000 |
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, 2023 | Jun. 30, 2022 | |
Fee and commission income (including $15,896 and $75,604 from related parties) | $ 98,703 | $ 89,446 |
Interest income (including $5,352 and $3,528 from related parties) | 149,349 | 48,563 |
Fee and commission expense (including $99 and $156 from related parties) | 28,684 | 23,315 |
Related party | ||
Fee and commission income (including $15,896 and $75,604 from related parties) | 15,896 | 75,604 |
Interest income (including $5,352 and $3,528 from related parties) | 5,352 | 3,528 |
Fee and commission expense (including $99 and $156 from related parties) | $ 99 | $ 156 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash Flows From Operating Activities | ||
Net income | $ 67,921 | $ 59,072 |
Net income/(loss) from discontinued operations | 0 | 15,946 |
INCOME FROM CONTINUING OPERATIONS | 67,921 | 43,126 |
Adjustments to reconcile net income used in operating activities: | ||
Depreciation and amortization | 2,607 | 875 |
Noncash lease expense | 1,927 | 924 |
Change in deferred taxes | 4,778 | (902) |
Stock compensation expense | 1,233 | 1,877 |
Unrealized (gain)/loss on trading securities | (20,951) | 11,730 |
Net unrealized (loss)/gain on derivatives | 3,112 | 0 |
Net realized gain on available-for-sale securities | (958) | 0 |
Net change in accrued interest | (16,304) | (11,891) |
Revaluation of purchase price previously held interest in Arbuz | (1,040) | 0 |
Change in insurance reserves | 15,002 | 17,718 |
Change in unused vacation reserves | 1,186 | 0 |
Allowance for expected credit losses | 14,326 | 2,428 |
Changes in operating assets and liabilities: | ||
Trading securities | (933,290) | (121,642) |
Margin lending, brokerage and other receivables (including $(89,703) and $(66,323) changes from related parties) | (147,366) | (85,163) |
Insurance contract assets | 2,454 | (1,426) |
Other assets | (9,512) | (12,174) |
Securities sold, not yet purchased – at fair value | 0 | (6,679) |
Brokerage customer liabilities (including $(50,531) and $(153,846) changes from related parties) | 29,037 | (116,702) |
Current income tax liability | 11,202 | 9,250 |
Margin lending and trade payables (including $(3,239) and $(4,076) changes from related parties) | 55,045 | 19,157 |
Lease liabilities | (1,631) | (899) |
Liabilities from insurance activity | 206 | (3,875) |
Other liabilities | 6,882 | 1,693 |
Net cash flows used in operating activities from continuing operations | (914,134) | (252,575) |
Net cash flows from/(used in) operating activities from discontinued operations | 0 | (12,847) |
Net cash flows used in operating activities | (914,134) | (265,422) |
Cash Flows Used In Investing Activities | ||
Purchase of fixed assets | (10,682) | (4,900) |
Net change in loans issued to customers | (263,370) | (120,884) |
Purchase of available-for-sale securities, at fair value | (82,979) | (87,828) |
Proceeds from sale of available-for-sale securities, at fair value | 104,698 | 36,432 |
Consideration paid for Arbuz | (13,281) | 0 |
Consideration paid for Internet Tourism | (31) | 0 |
Consideration paid for Aviata | (690) | 0 |
Consideration paid for Ticketon | (3,003) | 0 |
Cash, cash equivalents and restricted cash disposed as a result of deconsolidation of Freedom UA | (1,987) | 0 |
Cash, cash equivalents and restricted cash received from acquisitions | 1,807 | 0 |
Net cash flows used in investing activities from continuing operations | (269,518) | (177,180) |
Net cash flows used in investing activities from discontinued operations | 0 | (7,079) |
Net cash flows used in investing activities | (269,518) | (184,259) |
Cash Flows From Financing Activities | ||
Proceeds from securities repurchase agreement obligations | 1,059,944 | 140,264 |
Proceeds from issuance of debt securities | 5,784 | 16,280 |
Repurchase of debt securities | (1,702) | 0 |
Repurchase of mortgage loans under the State Program | (9,071) | (735) |
Funds received under state program for financing of mortgage loans | 24,889 | 55,987 |
Net change in bank customer deposits | 181,159 | 109,358 |
Purchase of non-controlling interest in Arbuz | (3,228) | 0 |
Capital contributions | 0 | 677 |
Proceeds from loans received | 758 | 1,897 |
Net cash flows from financing activities from continuing operations | 1,258,533 | 323,728 |
Net cash flows from financing activities from discontinued operations | 0 | 14,462 |
Net cash flows from financing activities | 1,258,533 | 338,190 |
Effect of changes in foreign exchange rates on cash and cash equivalents from continued operations | (2,575) | 2,329 |
Effect of changes in foreign exchange rates on cash and cash equivalents from discontinued operations | 0 | 252,814 |
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 72,306 | 143,652 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD FROM CONTINUED OPERATIONS | 1,026,945 | 773,414 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD FROM DISCONTINUED OPERATIONS | 0 | 456,886 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | 1,026,945 | 1,230,300 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD FROM CONTINUED OPERATIONS | 1,099,251 | 669,588 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD FROM DISCONTINUED OPERATIONS | 0 | 704,364 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | 1,099,251 | 1,373,952 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 113,120 | 19,618 |
Income tax paid | 224 | 48 |
Supplemental non-cash disclosures: | ||
Operating lease right-of-use assets obtained/disposed of in exchange for operating lease obligations during the period, net | 4,677 | 3,025 |
Cash and cash equivalents | 597,364 | 246,399 |
Restricted cash | 501,887 | 423,189 |
Total cash, cash equivalents and restricted cash shown as in the statement of cash flows | $ 1,099,251 | $ 669,588 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - Parenthetical - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Cash Flows [Abstract] | ||
Margin lending, brokerage and other receivables, related parties | $ (89,703) | $ (66,323) |
Brokerage customer liabilities, related parties | (50,531) | (153,846) |
Margin lending and trade payables, related parties | $ (3,239) | $ (4,076) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Total equity attributable to the shareholders' | Common Stock | Additional paid in capital | Retained earnings | Accumulated other comprehensive loss | Non- controlling interest |
Beginning balance (in shares) at Mar. 31, 2022 | 59,542,212,000 | ||||||
Equity, beginning of period at Mar. 31, 2022 | $ 546,608 | $ 553,603 | $ 59 | $ 174,745 | $ 441,924 | $ (63,125) | $ (6,995) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock based compensation | 3,698 | 3,698 | 3,698 | ||||
Acquisition of insurance companies | (26,588) | (26,588) | (26,588) | ||||
Capital contributions | 677 | 677 | 677 | ||||
Foreign currency translation adjustments, net of tax effect | 21,990 | 21,990 | 21,990 | ||||
Other comprehensive reserve | 1,459 | 1,459 | 1,459 | ||||
Net income/(loss) | 59,072 | 61,066 | 61,066 | (1,994) | |||
Ending balance (in shares) at Jun. 30, 2022 | 59,542,212,000 | ||||||
Equity, end of period at Jun. 30, 2022 | $ 606,916 | 615,905 | $ 59 | 152,532 | 502,990 | (39,676) | (8,989) |
Beginning balance (in shares) at Mar. 31, 2023 | 59,659,191 | 59,659,191,000 | |||||
Equity, beginning of period at Mar. 31, 2023 | $ 770,736 | 777,285 | $ 59 | 164,162 | 647,064 | (34,000) | (6,549) |
Equity, beginning of period (ASC 326 Adoption Impact) at Mar. 31, 2023 | (22,772) | (22,772) | (22,772) | ||||
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 reserve | 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 | 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 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended |
Jun. 30, 2023 | |
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 financial services including retail securities brokerage, research, investment counseling, securities trading, market making, retail banking, corporate investment banking, underwriting services, commercial banking, insurance products, a payment platform, a conference platform and an online ticket sale platform. The Company is headquartered in Almaty, Kazakhstan, with supporting administrative office locations in Cyprus and the United States. The Group has a presence in Kazakhstan, Uzbekistan, Kyrgyzstan, Cyprus, Germany, the United Kingdom, United States, Greece, Spain, France, Armenia, Azerbaijan, Turkey and United Arab Emirates. The Company also has subsidiaries in the United States which 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, 2023, the Company owned directly, or through subsidiaries, the following companies: • Freedom Finance JSC, an Almaty, Kazakhstan-based securities broker-dealer ("Freedom KZ"); • Freedom Finance Global PLC, an Astana International Financial Centre-based securities broker-dealer ("Freedom Global"); • Bank Freedom Finance Kazakhstan JSC, an Almaty, Kazakhstan-based bank ("Freedom Bank KZ"); • Freedom Finance Life JSC, an Almaty, Kazakhstan-based life/health insurance company ("Freedom Life"); • Freedom Finance Insurance JSC, an Almaty, Kazakhstan-based general insurance company ("Freedom Insurance"); • Freedom Finance Special Purpose Company LTD, an Astana International Financial Centre-based special purpose company ("Freedom SPC"); • Freedom Finance Commercial LLP, a Kazakhstan-based sales consulting company ("Freedom Commercial"); • Freedom Finance Europe Limited, a Limassol, Cyprus-based broker-dealer ("Freedom EU"); • Freedom Finance Technologies Ltd, a Limassol, Cyprus-based IT development company ("Freedom Technologies"); • Freedom Finance Germany GmbH, a Berlin, Germany-based tied agent of Freedom EU ("Freedom GE"); • Freedom UK Prime Limited, a London, United Kingdom-based financial intermediary company ("Prime UK"); • Foreign Enterprise LLC Freedom Finance, a Tashkent, Uzbekistan-based broker-dealer ("Freedom UZ"); • Freedom Finance Azerbaijan LLC, an Azerbaijan-based financial educational center ("Freedom AZ"); • Freedom Finance Armenia LLC, an Armenia-based broker-dealer ("Freedom AR"); • Prime Executions, Inc., a New York City, New York-based NYSE institutional brokerage, that is also authorized to engage in certain capital markets and investment banking activities ("PrimeEx"); • FFIN Securities, Inc., a currently-dormant Nevada corporation ("FFIN"); • Freedom Finance Ltd., a Dubai, United Arab Emirates-based financial intermediary company ("Freedom UAE"); • ITS Tech Limited, an Astana International Financial Centre-based, IT-support company ("ITS Tech"); • Freedom Kazakhstan PC Ltd, an Almaty, Kazakhstan-based non-financial company ("Freedom Kazakhstan PC Ltd."); • Ticketon Events LLP, an Almaty, Kazakhstan-based online ticket sales company ("Ticketon"); • Freedom Finance Turkey LLC, an Istanbul, Turkey-based financial consulting company ("Freedom TR"); • Freedom Technologies LLP, an Almaty, Kazakhstan-based payment company ("Paybox") (1) ; • Freedom U.S. Market LLC, a New York City, New York-based management company of Freedom’s U.S. Operations ("FUSM"); • LD Micro, a New York City, a pre-eminent event platform which hosts two premier small and micro-cap world conferences annually ("LD Micro"); • Aviata LLP ("Aviata"), an Almaty, Kazakhstan-based online aggregator for buying air and railway tickets ("Aviata"); • Internet-Tourism LLP, an Almaty, Kazakhstan-based online aggregator for buying air and railway tickets ("Internet Tourism); • Arbuz Group LLP an Almaty, Kazakhstan-based online retail trade and e-commerce ("Arbuz") (2) ; • Freedom Horizons LLP, an Almaty, Kazakhstan-based business consulting and services company. (1) Paybox has five wholly-owned subsidiaries each incorporated in Kazakhstan, Uzbekistan, and Kyrgyzstan. (2) Arbuz has two wholly-owned subsidiaries each incorporated in Kazakhstan. As at June 30, 2023 the Company owns a 9% interest in Freedom Finance Ukraine LLC, a Kiev, Ukraine-based broker-dealer ("Freedom UA"). 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. On October 19, 2022, Freedom UA's brokerage license was suspended for a period of five years and its assets were frozen by the Ukrainian authorities following its inclusion on a sanctions list of the Ukrainian government. Given the ongoing uncertainty surrounding the situation in Ukraine, the management of the Company believes that as of June 30, 2023 the Company does not maintain effective control over Freedom UA. 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 Stock Exchange (AIX), the Moscow Exchange (MOEX), 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, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting principles The Company'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. Consolidation of variable interest entities In accordance with accounting standards regarding consolidation of variable interest entities ("VIEs"), VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. VIEs must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. As of June 30, 2023 there are no VIEs in respect of the Company. As at March 31, 2023 and for the years ended March 31, 2023, 2022 and 2021, the only VIE in respect of the Company was Freedom UA. The carrying amounts of Freedom UA’s consolidated assets and liabilities were as follows as of March 31, 2023: March 31, 2023 Cash and cash equivalents 26 Restricted cash 1,936 Trading securities 4,010 Margin lending, brokerage and other receivables, net 1,616 Fixed assets, net 782 Intangible assets, net 131 Right-of-use asset 135 Other assets 56 Total assets 8,692 Customer liabilities 5,837 Securities repurchase agreement obligations 12 Trade payables 25 Lease liability 159 Other liabilities 298 Total liabilities 6,331 Loss of control of Freedom UA Amidst the Russia-Ukraine conflict and subsequent economic sanctions, Freedom UA was added to the Ukrainian government's sanctioned entities and individuals list, resulting in restrictive measures being imposed on it by the Ukrainian authorities, including suspension of its brokerage license. Effective April 1, 2023, the Company removed its equity interest in Freedom UA from its consolidated financial statements and recognized a loss of control of such company. The Company accounted for the deconsolidation of Freedom UA by recognizing loss in net income attributable to the Company as the difference between net liabilities of Freedom UA as of April 1, 2023 (date of loss of control) and net liabilities as of June 30, 2023. Non-Consolidation of Freedom Securities Trading Inc. The Company has assessed whether it should consolidate Freedom Securities Trading Inc. (formerly known as FFIN Brokerage Services, Inc.) ("FST Belize") under the variable interest entity (“VIE”) accounting method or the voting interest method ("VOE"). In July 2014, prior to the Company's reverse acquisition transaction, Timur Turlov founded FST Belize, a Belize-based broker dealer. FST Belize is solely owned by Mr. Turlov and was not acquired by the Company as part of the reverse acquisition transaction. Although FRHC and FST Belize are common control entities, under the control of an individual, there is no indication that FRHC should consolidate FST Belize given that: (1) FST Belize is not a VIE and is not subject to further VIE analysis 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 who is also FRHC's controlling shareholder, chairman and chief executive officer; and (2) Mr. Turlov has a controlling interest in FST Belize such that under the VOE model FRHC is not required to consolidate FST Belize. FST Belize is a corporation and Mr. Turlov is the sole owner of FST Belize, holding 100% of the ownership interest in it. There are no other shareholders or parties with participating rights or the ability to remove Mr. Turlov from his ownership position. Mr.Turlov has the ability to make all decisions in respect of FST Belize. FRHC's management has also assessed the relationship between FRHC (through its subsidiary Freedom EU) and FST Belize. Other than the tariff rates stipulated in the Variation Agreement dated February 25, 2020 entered into between Freedom EU and FST Belize, including the General Terms and Conditions of Business, which sets out the specific terms and conditions of the relationship between Freedom EU and FST Belize, there are no other contractual agreements or other implicit arrangements between the two parties that provide FRHC the power to control the operations of FST Belize. In December 2022 the Company changed its treatment of certain interest income so that it applies from the settlement date whereas previously it applied from the trade date. As a result of that change, the Company's management has continued to assess for any modifications or reconsideration events. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management believes that the estimates utilized in preparing the Company's financial statements are reasonable and prudent. Actual results could differ from those estimates. Revenue and expense recognition Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services promised to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. A significant portion of the Group's revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as loans and investment securities, as these activities are subject to other U.S. GAAP guidance discussed elsewhere within these disclosures. Descriptions of the Group's revenue-generating activities that are within the scope of ASC Topic 606, which are presented in the Consolidated Statements of Operations and Statements of Other Comprehensive Income as components of total revenue, net are as follows: • Commissions on brokerage services; • Commissions on banking services (money transfers, foreign exchange operations and other); and • Commissions on investment banking services (underwriting, market making, and bondholders' representation services). Gross versus net revenue ASC 606 provides guidance on proper recognition of principal versus agent considerations which is used to determine gross versus net revenue recognition. Under ASC 606, the core objective of the guidance on gross versus net revenue recognition is to help determine whether the Group is a principal or an agent in a transaction. In general, the primary difference between these two is the performance obligation being satisfied. The principal has a performance obligation to provide the desired goods or services to the end customer, whereas the agent arranges for the principal to provide the desired goods or services. Additionally, a fundamental characteristic of a principal in a transaction is control. A principal substantively controls the goods and services before they are transferred to the customer as well as controls the price of the good or service being provided. An agent normally receives a commission or fee for these activities. In addition to control, the level at which the Group controls the price of the good or service being transferred determines principal versus agent status. The more discretion over setting price a Group has in providing the good or service, the more likely they are considered a principal rather than an agent. In certain cases, other parties are involved with providing products and services to Freedom's customers. If Freedom is principal in the transaction (providing goods or services itself), revenues are reported based on the gross consideration received from the customer and any related expenses are reported gross in non interest expense. If Freedom is an agent in the transaction (arranging for another party to provide goods or services), the Group reports its net fee or commission retained as revenue. Interest income Interest income on margin loans, loans issued, trading securities, available-for-sale securities, and reverse repurchase agreement obligations are recognized based on the contractual provisions of the underlying arrangements. Loan premiums and discounts are deferred and generally amortized into interest income as yield adjustments over the contractual life and/or commitment period using the effective interest method. Interest income is recognized by the Group and continue to be accrued for the loans which meet the impairment criteria. Unamortized premiums, discounts and other basis adjustments on trading securities are generally recognized in interest income over the contractual lives of the securities using the effective interest method. Loans The Group's loan portfolio is divided into: mortgages, uncollateralized bank customer loans, collateralized bank customer loans, car loans, loans issued to policyholders, convertible loans, right of claim for purchased retail loans and subordinated loans. Mortgage loans consist of loans provided to individuals to purchase residential homes, which is used as collateral for the loan. Uncollateralized bank customer loans consist of loans provided through credit cards to individuals and retail unsecured banking loans provided to individuals. Collateralized bank customer loans consist of retail collateralized loans provided to individuals. Subordinated loans consist of uncollateralized loans provided to the legal entities to support their businesses, that ranks below other, more senior loans or securities with respect to claims on assets or earnings. Margin loans are not classified as part of the Group's loan portfolio and are instead recorded on the Consolidated Balance Sheets under Margin lending, brokerage and other receivables, net. Loans issued to policyholders are represented by loans issued by insurer to its policyholders under an accumulative insurance contract. Policy loans are provided within the redemption amount, which is a security for the return of the received loan and covers the loans amount and interest. Car loans consists of loans provided to individuals to purchase new or used car. Right of claim for purchased retail loans represented by microfinance organization Freedom Finance Credit (“FFIN Credit") loans. Convertible loans are those, that will be converted to specified amount of shares at the repayment date. A loan becomes delinquent when the borrower doesn't fulfill its obligations to the Group to repay the loan on time according to the agreement. When loans are written off, they are removed as assets from the balance sheet since the Group does not expect to recover payment. Allowance for credit losses The Group maintains an allowance for credit losses (ACL) for financial assets measured at amortized cost. The ACL mainly consists of the allowance for loan losses, and the allowance for credit losses for available-for-sale securities. The estimate of expected credit losses under the current expected credit losses (CECL) methodology adopted on April 1, 2023 is based on relevant information about the past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Allowance for credit losses - Loans On April 1, 2023, the Group adopted new accounting guidance which requires entities to estimate and recognize an allowance for lifetime expected credit losses for loans. Previously, an allowance for credit losses for loans was recognized based on probable incurred losses. The ACL is a valuation account that is deducted from the amortized cost of total loans to present the net amount expected to be collected on the loans. Under CECL, the Group's methodology to establish the allowance for loan losses has two basic components: (1) a collective CECL component for estimated expected credit losses for pools of loans that share common risk characteristics and (2) an individual CECL component for loans that do not share risk characteristics. Management estimates the allowance balance using relevant and available information from internal and external sources, relating to past events, including historical trends in loan delinquencies and charge offs, current conditions, and reasonable and supportable forecasts. Allowance for credit losses for loans that share common risk characteristics Pooling loans with common risk characteristics for estimating allowance for credit losses is primarily based on the segmentation by product type and the type of collateral provided. The Group estimates current expected credit loss for loans with common risk characteristics using the PD/LGD methodology, which is based on relevant information about historical experience, current conditions, as well as reasonable and reasonable forecasts that allow estimating the Group's potential losses on the loan portfolio. In assessing the Probability of Default (PD) for loans with common risk characteristics, the Group uses average monthly loan balance flowing across delinquency buckets over a period of five years or more. Based on the weighted average maturity of loans with common risk characteristics, using the Markov chain method, the proportion of possible loan agreements with overdue debts over 90 days for individuals and over 60 days for legal entities is determined, which are used to determine the PD for a pool of loans. If there are no own statistics, then the calculation of PD is carried out on the basis of statistics of State Credit Bureau JSC on past events for a period of five or more years. The resulting PD indicator is adjusted for qualitative or internal and external environmental factors not considered within the model, but which are relevant in estimating the expected credit losses within the loan portfolio. The macroeconomic indicators impacting the expected risk of loss within the loan portfolio include the following: GDP, the retail trade index, the unemployment rate, the real wage rate, the dollar exchange rate against the tenge, and the consumer price index. These macroeconomic indicators are recalculated once per year and used throughout the year. Also, they are used for all loan types. When estimating the Loss on Default (LGD) for loans with common risk characteristics, the Group uses the latest market value of the collateral as of the calculation date. First, depending on the type of collateral, liquidity ratios are applied to the market value, after which the value of the collateral is discounted at the initial effective interest rate of the loan agreement for the exposure periods corresponding to the types of collateral. The described above PD/LGD approach apply for all type of loans, as well as non-impaired and defaulted. Allowance for credit losses for loans that that do not share common risk characteristics Loans that do not share similar risk characteristics with any pools of assets are subject to individual evaluation and are removed from the collectively assessed pools. Loans that are individually evaluated for collectability are reviewed based on an assessment of the financial condition of the borrower, taking into account the most possible debt repayment scenarios: due to expected cash flows from operating activities, cash available from guarantors, founders, shareholders, investors, related companies, other confirmed cash flows, restructuring of the borrower's obligations and the sale of collateral. Depending on the loan maturity date, the expected cash flows are discounted at the original effective interest rate and allowance for credit losses are calculated as the difference between the discounted expected cash flows and outstanding balance of the loan. If repayment of the debt is deemed impossible, based on the expected cash flows, the Group accrues allowance for credit losses in the amount of 100% of the loan balance. Loan portfolio risk elements and credit risk management Credit risk management. When implementing credit risk management processes, the Group is guided by internal policies and procedures approved by the Board of Directors, which define the main goals, objectives, principles, priority areas for the formation of an internal effective credit risk management system that corresponds to the current market situation and the Group's development strategy, and ensures effective identification, measurement, monitoring and control of the Group's credit risk. In order to minimize credit risk, the Group has developed procedures for managing internal risk appetite limits for currencies, countries, sectors of the economy, business categories and products, types of collateral, concentration of risk on the top 20 borrowers, debts of a group of related borrowers, etc. Control over the level of limits on credit risk is carried out by the Group's risk division through the preparation of monthly management reports, which include, but are not limited to, information on the quality of the loan portfolio, its classification in accordance with the requirements of reporting standards, on the amount of exposure to credit risk, including a group of related borrowers, on the concentration of credit risk of the largest borrowers and borrowers as related parties to the Group, on the internal rating of borrowers, etc. When analyzing a borrower, the Group uses the following information to assess creditworthiness: the borrower's existing loans from all banks in the Republic of Kazakhstan, the presence of overdue debt, income, age, work experience and dynamics of credit behavior. Mortgage loans. The Group provides mortgage loans for the purchase of real estate in both the primary and secondary markets. This is done through the Group's own and government lending programs, relevant lending products as described in the Group's internal normative documents, and compliance with the laws and regulations of the Republic of Kazakhstan. The main share of the Group's loan portfolio is represented by mortgage loans issued within the framework of state support programs, funded from the funds of quasi-state organizations. Valuation of real estate collateral is carried out directly by independent appraisal companies with subsequent confirmation by the Group's collateral service. The collateral policy and methodology of the process for working with collateral comply with the regulatory requirements of the regulator and the banking legislation of the country. In the process of making decisions on the solvency and creditworthiness of borrowers, an automatic check is carried out through external and internal databases. To do this, the results of both the Group's own and third-party credit scoring models are taken into account. The Group does not use third party loan underwriting services. Residential mortgages include only fixed rate loans secured by real estate purchases. When making a decision to issue a mortgage on housing, the Group takes into account the qualifications of the borrower, as well as the value of the underlying property . Car loans. When making decisions on car loans, the Group uses both evaluation and scoring systems. The Group provides loans for the purchase of motor vehicles both under the C2C scheme and under the B2C scheme with the participation of car dealerships. The decision-making process includes the use of data from credit bureaus, government databases and other sources of information. This allows not only to assess the financial capacity of a potential borrower, but also to evaluate the purchased vehicle. Machine learning models have also been introduced that analyze data about the cars themselves and sellers. This allows to automatically screen out applications with high potential credit risk. Right of claim for purchased retail loans. The Group regularly acquires receivables on consumer credit products from other financial institutions through assignment agreements (cessions). This pool of the Group's loan portfolio is low-risk due to the presence of a condition for the repurchase of loans by a microfinance organization in the event of an overdue debt on these loans for more than 20 calendar days in accordance with the agreement between the Group and the microfinance organization. To confirm the solvency of a financial institution, an analysis is made of its financial position and the ability to fulfill obligations under an agreement on the repurchase of loans in case of default in payment terms for 20 or more days. Uncollateralized bank customer loans. In the loan portfolio of individuals, an insignificant part is represented by loans issued without collateral for consumer purposes. The main condition for issuing loans to potential borrowers is compliance with the regulator's requirement that the amount of monthly loan payments does not exceed 50% of the borrower's income after a credit analysis. In case of violation of this condition, the Group rejects the loan request. In addition to unsecured loans for individuals, the Group also offers unsecured loans for individual entrepreneurs. Several scoring models are used to make decisions about this product to determine the risk segment for each customer. The income of the client and the class of the borrower are also estimated based on his property status. The Group uses data from official sources to determine the payment fund for an individual entrepreneur and turnover through an online cash register, which helps to assess the solvency of customers. The final decision to grant a limit depends on the risk segment and income class of the borrower. Loans are issued both within the framework of their own programs and under government programs with subsidized interest rates in the portfolio. Collateralized bank customer loans . The Group provides loans secured by guarantees issued by the quasi-governmental company's and by highly liquid financial assets. Due to the presence of collateral, the maximum loan amount significantly exceeds those provided for unsecured loans. At the loan issuance date, the collateral value fully covers the loan amount. Derivative financial instruments In the normal course of business, the Group invests in various derivative financial contracts including futures. Derivatives are initially recognized at fair value at the date a derivative contract is entered into and are subsequently re-measured to their fair value at each reporting date. The fair values are estimated based on quoted market prices or pricing models that take into account the current market and contractual prices of the underlying instruments and other factors. Derivatives are carried as assets when their fair value is positive and as liabilities when it is negative. Functional currency Management has adopted ASC 830, Foreign Currency Translation Matters as it pertains to its foreign currency translation. The Company's functional currencies are the Kazakhstan tenge, the euro, the U.S. dollar, the Ukrainian hryvnia, the Uzbekistani som, the Kyrgyzstani som, the Azerbaijani manat, the British pound sterling, the Armenian dram, the United Arab Emirates dirham and the Turkish lira, and its reporting currency is the U.S. dollar. For financial reporting purposes, foreign currencies are translated into U.S. dollars as the reporting currency. Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average quarterly rates are used to translate revenues and expenses. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of shareholders' equity as "Accumulated other comprehensive loss". The Group uses exchange rates from the National Bank of the Republic of Kazakhstan for foreign currency translation purposes. Cash and cash equivalents Cash and cash equivalents are generally comprised of cash and certain highly liquid investments with original maturities of three months or less at the date of purchase. Cash and cash equivalents include reverse repurchase agreements with a maturity of less than 90 days and where the credit risk of the counterparty is low, which are recorded at the amounts at which the securities were acquired plus accrued interest. Securities reverse repurchase and repurchase agreements A reverse repurchase agreement is a transaction in which the Group purchases financial instruments from a seller, typically in exchange for cash, and simultaneously enters into an agreement to resell the same or substantially the same financial instruments to the seller for an amount equal to the cash or other consideration exchanged plus interest at a future date. Securities purchased under reverse repurchase agreements are accounted for as collateralized financing transactions and are recorded at the contractual amount for which the securities will be resold, including accrued interest. Financial instruments purchased under reverse repurchase agreements are recorded in the financial statements as cash placed on deposit collateralized by securities and classified as cash and cash equivalents in the Consolidated Balance Sheets. A repurchase agreement is a transaction in which the Group sells financial instruments to another party, typically in exchange for cash, and simultaneously enters into an agreement to reacquire the same or substantially the same financial instruments from the buyer for an amount equal to the cash or other consideration exchanged plus interest at a future date. These agreements are accounted for as collateralized financing transactions. The Group retains the financial instruments sold under repurchase agreements and classifies them as trading securities in the Consolidated Balance Sheets. The consideration received under repurchase agreements is classified as securities repurchase agreement obligations in the Consolidated Balance Sheets. The Group enters into reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions to, among other things, acquire securities to leverage and grow its proprietary trading portfolio, cover short positions and settle other securities obligations, to accommodate customers' needs and to finance its inventory positions. The Group enters into these transactions in accordance with normal market practice. Under standard terms for repurchase transactions, the recipient of collateral has the right to sell or repledge the collateral, subject to returning equivalent securities on settlement of the transaction. Restricted cash Restricted cash consists of cash and cash equivalents that are held for specific reasons and not available for immediate use. Certain subsidiaries of the Group are obligated by rules and regulations mandated by their primary regulators to segregate or set aside certain customer cash in the interests of protecting customer assets. Restricted cash is mainly represented by customer cash and guaranty deposits, which are restricted in use by the Group for more than three months. Available-for-sale securities Financial assets categorized as available-for-sale ("AFS") are non-derivatives that are either designated as available-for-sale or not classified as (a) loans and receivables, (b) held to maturity investments or (c) trading securities. Gains and losses arising from changes in fair value are recognized in other comprehensive income and accumulated in the Accumulated other comprehensive loss, with the exception of other-than-temporary impairment losses, interest calculated using the effective interest method, and foreign exchange gains and losses are recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. When the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously accumulated in the accumulated other comprehensive (loss)/income is then reclassified to net realized gain/(loss) on investments available-for-sale in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. Trading securities Financial assets are classified as trading securities if the financial asset has been acquired principally for the purpose of selling it in the near term. Trading securities are stated at fair value, with any gains or losses arising on remeasurement recognized in revenue. Changes in fair value are recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income and included in net gain on trading securities. Interest earned and dividend income are recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income and included in interest income, according to the terms of the contract and when the right to receive the payment has been established. Investments in nonconsolidated managed funds are accounted for at fair value based on the net asset value of the funds provided by the fund managers with gains or losses included in net gain on trading securities in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. Debt securities issued Debt securities issued are initially recognized at the fair value of the consideration received, less directly attributable transaction costs. Subsequently, amounts due are stated at amortized cost and any difference between net proceeds and the redemption value is recognized over the period of the borrowings using the effective interest method. If the Group purchases its own debt it is removed from the Consolidated Balance Sheets and the difference between the carrying amount of the liability and the consideration paid is recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. Margin lending, brokerage and other receivables The Group engages in securities financing transactions with and for clients through margin lending. In margin lending, the Group's customers borrow funds from the Group or sell securities the customer does not own against the value of their qualifying securities held in custody by the Group. Under these agreements, the Group is permitted to sell or repledge securities received as collateral. Furthermore, the contractual arrangements establish that the Group can use the pledged collateral by the customers for repurchase agreement operations, securities lending transactions or delivery to other counterparties to cover short positions. Margin lending, brokerage and other receivables comprise margin lending receivables, brokerage commissions and other receivables related to the securities brokerage and banking activity of the Group. At initial recognition, margin lending, brokerage and other receivables are recognized at fair value. Subsequently, margin lending, brokerage and other receivables are carried at cost net of any allowance for impairment losses. 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 its own account or the account of another client. The Group maintains 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, 2023, the margin lending receivables balance from FST Belize was fully collateralized by its customer-owned cash and market securities held by the Grou |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 3 Months Ended |
Jun. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS As of June 30, 2023, and March 31, 2023, cash and cash equivalents consisted of the following: June 30, 2023 March 31, 2023 Short term deposits in National Bank (Kazakhstan) $ 275,196 $ 357,454 Short term deposits in commercial banks 128,465 83,755 Securities purchased under reverse repurchase agreements 97,426 29,812 Petty cash in bank vault and on hand 37,430 35,998 Overnight deposits 22,853 1,926 Short term deposits in stock exchanges 21,695 31,691 Short term deposits on brokerage accounts 11,431 37,417 Cash in transit 3,030 3,364 Bank deposits 104 — Allowance for Cash and cash equivalents $ (266) $ — Total cash and cash equivalents $ 597,364 $ 581,417 As of June 30, 2023, and March 31, 2023, cash and cash equivalents were not insured. As of June 30, 2023, and March 31, 2023, the cash and cash equivalents balance included short-term collateralized securities received under reverse repurchase agreements on the terms presented below: June 30, 2023 Interest rates and remaining contractual maturity of the agreements Average interest rate Up to 30 days 30-90 days Total Securities purchased under reverse repurchase agreements Non-US sovereign debt 15.90 % $ 46,085 $ — $ 46,085 US sovereign debt 1.74 % 31,278 86 31,364 Corporate equity 17.82 % 17,796 — 17,796 Corporate debt 2.05 % 2,181 — 2,181 Total $ 97,340 $ 86 $ 97,426 March 31, 2023 Interest rates and remaining contractual maturity of the agreements Average interest rate Up to 30 days 30-90 days Total Securities purchased under reverse repurchase agreements US sovereign debt 2.06 % $ 17,102 $ — $ 17,102 Corporate equity 17.17 % 6,963 — 6,963 Non-US sovereign debt 6.12 % 3,483 — 3,483 Corporate debt 2.52 % 2,079 185 2,264 Total $ 29,627 $ 185 $ 29,812 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, 2023, and March 31, 2023, was $97,260 and $31,165, respectively. As of June 30, 2023 and March 31, 2023, securities purchased under reverse repurchase agreements included accrued interest in the amount of $12 and $11, with a weighted average maturity of 5 days and 9 days, respectively. All securities repurchase agreements transactions were executed through the Kazakhstan Stock Exchange. |
RESTRICTED CASH
RESTRICTED CASH | 3 Months Ended |
Jun. 30, 2023 | |
Restricted Cash [Abstract] | |
RESTRICTED CASH | RESTRICTED CASH Restricted cash for the periods ended June 30, 2023, and March 31, 2023, consisted of: June 30, 2023 March 31, 2023 Brokerage customers’ cash $ 412,830 $ 328,435 Restricted bank accounts 8,532 10,436 Guaranty deposits 91,024 116,628 Deferred distribution payment 23 23 Allowance for restricted cash (10,522) (9,994) Total restricted cash $ 501,887 $ 445,528 As of June 30, 2023, and March 31, 2023, part of the Group’s restricted cash is segregated in a special custody account for the exclusive benefit of the relevant brokerage customers. As of June 30, 2023, and March 31, 2023, restricted cash included a deferred distribution payment amount of $23, representing cash held for distribution to shareholders who have not yet claimed their distributions from the 2011 sale of the Company’s legacy oil and gas exploration and production operations which is the subject of the Estate of Toleush Tolmakov litigation. As a result of disputes between a shareholder’s putative heirs, no party has yet established legal and beneficial ownership of the distribution payment. The Company did not claim an ownership interest in the distribution payment. For additional information regarding this matter see Part II, Item 1 Legal Proceedings of this quarterly report on Form 10-Q. |
TRADING AND AVAILABLE-FOR-SALE
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE | 3 Months Ended |
Jun. 30, 2023 | |
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, 2023, and March 31, 2023, trading and available-for-sale securities consisted of: June 30, 2023 March 31, 2023 Non-U.S. sovereign debt $ 2,017,384 1,029,857 Corporate debt 1,219,252 1,269,879 Corporate equity 87,821 65,741 U.S. sovereign debt 42,437 45,022 Exchange traded notes 2,172 2,057 Total trading securities $ 3,369,066 $ 2,412,556 June 30, 2023 March 31, 2023 Corporate debt $ 165,662 $ 191,082 Non-U.S. sovereign debt 48,025 40,162 U.S. sovereign debt 7,758 7,809 Total available-for-sale securities, at fair value $ 221,445 $ 239,053 The following tables present maturity analysis for available-for-sale securities as of June 30, 2023, and March 31, 2023: June 30, 2023 Remaining contractual maturity of the agreements Up to 1 year 1-5 years 5-10 years More than 10 years Total Corporate debt 34,526 77,543 53,583 10 165,662 Non-US sovereign debt — 36,502 5,351 6,172 48,025 US sovereign debt 1,964 2,804 1,700 1,290 7,758 Total available-for-sale securities, at fair value $ 36,490 $ 116,849 $ 60,634 $ 7,472 $ 221,445 March 31, 2023 Remaining contractual maturity of the agreements Up to 1 year 1-5 years 5-10 years More than 10 years Total Corporate debt 77,006 82,579 31,486 11 191,082 Non-US sovereign debt — 33,143 820 6,199 40,162 US sovereign debt 1,947 2,805 1,725 1,332 7,809 Total available-for-sale securities, at fair value $ 78,953 $ 118,527 $ 34,031 $ 7,542 $ 239,053 As of June 30, 2023, the Group held debt securities of two issuers each of which individually exceeded 10% of the Group’s total trading securities - the Ministry of Finance of the Republic of Kazakhstan (S&P Global: BBB- credit rating) in the amount of $2,005,538 and Kazakhstan Sustainability Fund JSC (Fitch: BBB credit rating) in the amount of $770,185. As of March 31, 2023, the Group held debt securities of two issuers each of which individually exceeded 10% of the Group’s total trading securities - the Ministry of Finance of the Republic of Kazakhstan and the Kazakhstan Sustainability Fund JSC in the amounts of $1,015,161 and $834,917, 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. The Group recognized no 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, 2023, and March 31, 2023: Weighted Average Total Fair Value Measurements as of June 30, 2023 using Quoted Prices in Significant Significant Unobservable (Level 1) (Level 2) (Level 3) Non-U.S. sovereign debt 12.71 % $ 2,017,384 $ 1,951,883 $ 65,466 $ 35 Corporate debt 16.05 % 1,219,252 922,010 296,914 328 Corporate equity — % 87,821 65,058 2,421 20,342 U.S. sovereign debt 4.84 % 42,437 42,437 — — Exchange traded notes — % 2,172 878 1,294 — Total trading securities $ 3,369,066 $ 2,982,266 $ 366,095 $ 20,705 Corporate debt 17.52 % $ 165,662 $ 93,274 $ 72,388 $ — Non-US sovereign debt 13.87 % 48,025 41,023 7,002 — US sovereign debt 4.84 % 7,758 7,758 — — Total available-for-sale securities, at fair value $ 221,445 $ 142,055 $ 79,390 $ — Weighted Average Interest Rate Total Fair Value Measurements as of March 31, 2023 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Units (Level 1) (Level 2) (Level 3) Corporate debt 15.62 % $ 1,269,879 $ 1,106,584 $ 162,895 $ 400 Non-U.S. sovereign debt 12.04 % 1,029,857 971,762 54,319 3,776 Corporate equity — 65,741 62,971 1,808 962 U.S. sovereign debt 4.22 % 45,022 45,022 — — Exchange traded notes — 2,057 447 1,610 — Total trading securities $ 2,412,556 $ 2,186,786 $ 220,632 $ 5,138 Corporate debt 15.78 % $ 191,082 $ 129,504 $ 61,578 $ — Non-U.S. sovereign debt 13.64 % 40,162 39,624 538 — U.S. sovereign debt 4.24 % 7,809 7,809 — — Total available-for-sale securities, at fair value $ 239,053 $ 176,937 $ 62,116 $ — The tables below present the valuation techniques and significant level 3 inputs used in the valuation as of June 30, 2023, and March 31, 2023. 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, 2023 Significant Unobservable Inputs % Non-US sovereign debt DCF $ 35 Discount rate 48.8% Estimated number of years 11 years Corporate debt DCF 328 Discount rate 74.0% Estimated number of years 3 months Corporate equity DCF 20,000 Discount rate 13.0% Estimated number of years 4 years, 6 months Corporate equity DCF 342 Discount rate 58.8% Estimated number of years 9 years Total $ 20,705 Type Valuation Technique FV as of March 31, 2023 Significant Unobservable Inputs % Non-US sovereign debt DCF $ 3,776 Discount rate 48.8% Estimated number of years 11 years Corporate debt DCF 400 Discount rate 74.0% Estimated number of years 3 months Corporate equity DCF 962 Discount rate 58.8% Estimated number of years 9 years Total $ 5,138 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, 2023, and the year ended March 31, 2023: Trading securities Balance as of March 31, 2023 $ 5,138 Purchase of investments that use Level 3 inputs 20,000 Deconsolidation of Freedom UA securities (3,928) Revaluation of investments that use Level 3 inputs 24 Reclassification to investment in associate $ (529) Balance as of June 30, 2023 $ 20,705 Balance as of March 31, 2022 $ 9,142 Reclassification to level 2 (1,339) Sale of investments that use Level 3 inputs (5,213) Purchase of investments that use Level 3 inputs 2,604 Revaluation of investments that use Level 3 inputs (56) Balance as of March 31, 2023 $ 5,138 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, 2023, and March 31, 2023: June 30, 2023 Assets measured at amortized cost Recognized impairment loss in Income Statement Unrealized loss accumulated in other comprehensive loss Assets Maturity Date Corporate debt $ 166,265 $ (61) $ (542) $ 165,662 2023-2035 Non-US sovereign debt 49,979 (248) (1,706) 48,025 2024-indefinite U.S. sovereign debt 8,451 — (693) 7,758 2023-2044 Total available-for-sale securities, at fair value $ 224,695 $ (309) (2,941) $ 221,445 March 31, 2023 Assets measured at amortized cost Recognized impairment loss in Income Statement Unrealized loss accumulated in other comprehensive Assets Maturity Date Corporate debt $ 192,167 $ (402) $ (683) $ 191,082 2023-2035 Non-U.S. sovereign debt 42,456 — $ (2,294) 40,162 2024-indefinite U.S. sovereign debt 8,391 — $ (582) 7,809 2023-2044 Total available-for-sale securities, at fair value $ 243,014 $ (402) $ (3,559) $ 239,053 |
MARGIN LENDING, BROKERAGE AND O
MARGIN LENDING, BROKERAGE AND OTHER RECEIVABLES, NET | 3 Months Ended |
Jun. 30, 2023 | |
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, 2023, and March 31, 2023, consisted of: June 30, 2023 March 31, 2023 Margin lending receivables $ 496,317 $ 361,684 Receivables from brokerage clients 8,734 7,302 Bank commissions receivable 7,986 6,035 Long-term installments receivables 1,132 895 Receivable for underwriting and market-making services 1,088 2,317 Receivable from sale of securities 510 613 Dividends accrued 313 486 Other receivables 17,019 9,504 Allowance for receivables (12,509) (12,507) Total margin lending, brokerage and other receivables, net $ 520,590 $ 376,329 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, 2023, and March 31, 2023 was $4,124,781 and $1,418,129, respectively. Collateral from single counterparty comprised $1,746,826, 42% from total collateral. Where margin lending receivables from single counterparty comprised $37,696, balance $496,317, not related party. As of June 30, 2023, and March 31, 2023, amounts due from a single related party customer were $373,735 and $290,195, respectively or 72% and 77% respectively, of total margin lending, brokerage and other receivables, net. Approximately 97% and 98% of these balances were due from FST Belize, a company owned by the Company's controlling shareholder, chairman and chief executive officer, Timur Turlov. Based on historical data, the Group considers receivables due from related parties fully collectible. 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 its own account or the account of another client. The Group maintains 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, 2023 , and March 31, 2023, the margin lending receivable balance from FST Belize was fully collateralized by its customer-owned cash and market securities held by the Group, including a $25,244 and $37,101 margin lending receivable collateralized by FRHC securities . Customers’ required margin levels and established credit limits are monitored continuously by the Group's risk management staff. Pursuant to the Company’s policy, customers are required to deposit additional collateral or reduce positions, when necessary, to avoid liquidation of their positions. As of June 30, 2023, and March 31, 2023, using historical and statistical data, the Group recorded an allowance for brokerage receivables in the amounts of $12,509 and $12,507, respectively. |
LOANS ISSUED
LOANS ISSUED | 3 Months Ended |
Jun. 30, 2023 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS ISSUED | LOANS ISSUED Loans issued as of June 30, 2023, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Collateral Loan Currency Mortgage loans 583,066 July, 2023 - June, 2048 9.00% 577,196 KZT Car loans 171,772 August, 2023 - June, 2030 25.00% 171,732 KZT Uncollateralized bank customer loans 149,800 July, 2023 - June 2043 24.00% — KZT Right of claim for purchased retail loans 142,336 July, 2023 - June 2027 19.00% 142,336 KZT Collateralized bank customer loans 31,114 July, 2023 - June 2028 14.00% 29,039 KZT/RUB Convertible loan 10,550 October, 2023 —% 10,550 USD Subordinated loan 5,075 December, 2025 3.00% — USD Loans issued to policyholders 1,445 November, 2023 - June, 2024 15.00% 1,562 KZT Other 4,694 July, 2023 - March, 2048/December, 2023 2.00%/16.00% — EUR/KZT Allowance for loans issued (41,704) Total loans issued $ 1,058,148 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 loans to the Program Operator. Under this program, borrowers can receive a mortgage at an interest rate of 7%, for 20 years. In accordance with the program and trust management agreement, the Group carries out trust management of transferred mortgage loans, and transfers all repayments of principal amounts of mortgages plus 4% of the 7% interest to the Program Operator. The remaining 3% of the 7% interest is retained by the Group as profit margin. Under the program and trust management agreement, the Group is required to repurchase the rights of claims on transferred mortgage loans, when the loan principal amount and interest payments are overdue 90 days or more. The repurchase of delinquent loans is performed at the loan nominal value. Since the Group transfers the right of claim with recourse for uncollectible amounts, retains part of interest from those loans, and agrees to service those loans after the sale, the Group has determined that it retains control over the mortgage loans transferred and continues recognizing the loans. As the Group continues to recognize the loans, it also recognizes the associated liability in the amount of $459,122 as of June 30, 2023, which is presented separately as liability arising from continuing involvement in the Condensed Consolidated Balance Sheets. As of March 31, 2023 the corresponding liability amounted to $440,805. As of June 30, 2023 and March 31, 2023, mortgage loans include loans under the state mortgage program "7-20-25" with an aggregate principal amount of $477,024 and $463,114, respectively . 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, 2023 and March 31, 2023, right of claims for purchased retail loans in the amount of $142,336 and $121,177, respectively. The total accrued interest for loans issued amounted $6,443 for the three months ended June 30, 2023 and $288 for the three months ended June 30, 2022. Loans issued as of March 31, 2023, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Collateral Loan Currency Mortgage loans 534,154 April, 2023 - March, 2048 9.00 % 534,154 KZT Right of claims for purchased retail loans 121,177 January, 2023 - March, 2027 15.00 % 121,177 KZT Car loans 102,269 April, 2023- April, 2030 25.00 % 102,247 KZT Uncollateralized bank customer loans 46,970 January, 2023 - March, 2043 25.00 % — KZT Collateralized bank customer loans 17,653 May, 2023 - March, 2028 2.00 % 17,636 KZT/RUB Subordinated loan 5,039 December, 2025 3.00 % — USD Loans to policyholders 1,488 June, 2023 - February, 2024 15.00 % 1,752 KZT Other 300 March, 2024-September, 2029 2.00 % — EUR Allowance for loans issued (2,792) Total loans issued $ 826,258 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 12 months restructured the contract due to the deterioration of the financial condition, the presence of a sign of default, a sign of bankruptcy, the deterioration of the financial performance of the borrower, a significant deterioration in the quality and cost of collateral, the presence of other information indicating the presence of a credit risk. The table below presents the Group's loan portfolio by credit quality classification and origination year as of June 30, 2023. Current vintage disclosure is the requirement due to first adoption of ASC 326. Term Loans by Origination Year 2023 2022 2021 2020 2019 Prior Revolving loans Total Mortgage loans 92,435 476,173 14,458 — — — — 583,066 that are not credit impaired 92,400 474,129 14,236 — — — — 580,765 with significant increase in credit risk — 1,888 193 — — — — 2,081 that are credit impaired 35 156 29 — — — — 220 Car loans 142,602 29,170 — — — — — 171,772 that are not credit impaired 139,182 27,851 — — — — — 167,033 with significant increase in credit risk 2,555 595 — — — — — 3,150 that are credit impaired 865 724 — — — — — 1,589 Uncollateralized bank customer loans 149,518 251 29 1 — 1 — 149,800 that are not credit impaired 149,018 144 29 1 — 1 — 149,193 with significant increase in credit risk 406 26 — — — — — 432 that are credit impaired 94 81 — — — — — 175 Right of claim for purchased retail loans 103,768 36,339 2,229 — — — — 142,336 that are not credit impaired 103,768 36,339 2,229 — — — — 142,336 with significant increase in credit risk — — — — — — — — that are credit impaired — — — — — — — — Collateralized bank customer loans 21,391 9,723 — — — — — 31,114 that are not credit impaired 21,391 9,723 — — — — — 31,114 with significant increase in credit risk — — — — — — — — that are credit impaired — — — — — — — — Convertible loan 10,550 — — — — — — 10,550 that are not credit impaired 10,550 — — — — — — 10,550 with significant increase in credit risk — — — — — — — — that are credit impaired — — — — — — — — Subordinated loan — 5,075 — — — — — 5,075 that are not credit impaired — 5,075 — — — — — 5,075 with significant increase in credit risk — — — — — — — — that are credit impaired — — — — — — — — Loans issued to policyholders 1,445 — — — — — — 1,445 that are not credit impaired 1,445 — — — — — — 1,445 with significant increase in credit risk — — — — — — — — that are credit impaired — — — — — — — — Other 1,551 128 — — 3,015 — — 4,694 that are not credit impaired 1,551 128 — — — — — 1,679 with significant increase in credit risk — — — — — — — — that are credit impaired — — — — 3,015 — — 3,015 Total 523,260 556,859 16,716 1 3,015 1 — 1,099,852 The table below presents the Group's loan portfolio by credit quality classification as of March 31, 2023. March 31, 2023 That are not credit impaired With significant increase in credit risk That are credit impaired Total Mortgage loans 532,621 1,505 28 534,154 Collateralized bank customer loans 121,055 122 — 121,177 Right of claim for purchased retail loans 101,244 993 32 102,269 Uncollateralized bank customer loans 46,882 81 7 46,970 Car loans 17,653 — — 17,653 Subordinated loan 5,039 — — 5,039 Loans issued to policyholders 1,488 — — 1,488 Other 300 — — 300 Total loans 826,282 2,701 67 829,050 Aging analysis of past due loans as of June 30, 2023 and March 31, 2023, is as follows: June 30, 2023 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 1,579 502 220 580,765 583,066 Car loans 1,867 1,283 1,589 167,033 171,772 Uncollateralized bank customer loans 321 111 175 149,193 149,800 Right of claim for purchased retail loans 57 — 2 142,277 142,336 Collateralized bank customer loans — — — 31,114 31,114 Convertible loan — — — 10,550 10,550 Subordinated loan — — — 5,075 5,075 Loans issued to policyholders — — — 1,445 1,445 Other — — 3,015 1,679 4,694 Total 3,824 1,896 5,001 1,089,131 1,099,852 March 31, 2023 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 1,265 240 28 532,621 534,154 Collateralized bank customer loans 123 — — 121,054 121,177 Right of claim for purchased retail loans 754 239 32 101,244 102,269 Uncollateralized bank customer loans 73 8 7 46,882 46,970 Car loans — — — 17,653 17,653 Subordinated loan — — — 5,039 5,039 Loans issued to policyholders — — — 1,488 1,488 Other — — — 300 300 Total 2,215 487 67 826,281 829,050 The activity in the allowance for credit losses as of June 30, 2023 and June 30, 2022 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, 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) 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 April 1, 2022 — — — — — — — Charges (570) (22) (9) (24) (3,712) — (4,337) Recoveries 568 22 9 25 3,798 — 4,422 Forex 2 — — (1) (86) — (85) June 30, 2022 — — — — — — — |
PROVISION FOR INCOME TAXES
PROVISION FOR INCOME TAXES | 3 Months Ended |
Jun. 30, 2023 | |
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, 2023, and March 31, 2023, were 21% for the United States, 20% for Kazakhstan and Azerbaijan, 10% for Kyrgyzstan, 31% for Germany, 12.5% for Cyprus, 25% for United Kingdom, 18% for Armenia and 15% for Uzbekistan. During the three months ended June 30, 2023, and 2022, the effective tax rate was equal to 19.7% and 17.1%, respectively. |
SECURITIES REPURCHASE AGREEMENT
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS | 3 Months Ended |
Jun. 30, 2023 | |
Securities Sold under Agreements to Repurchase [Abstract] | |
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS | SECURITIES REPURCHASE AGREEMENT OBLIGATIONS As of June 30, 2023, and March 31, 2023, trading securities included collateralized securities subject to repurchase agreements as described in the following table: June 30, 2023 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 16.67 % $ 1,701,585 $ 111,073 $ 1,812,658 Corporate debt 16.50 % 735,482 6,743 742,225 US sovereign debt 1.43 % 17,094 — 17,094 Corporate equity 17.00 % 5 — 5 Total securities sold under repurchase agreements $ 2,454,166 $ 117,816 $ 2,571,982 March 31, 2023 Interest rate and remaining contractual maturity of the agreements Average interest rate Up to 30 days 30-90 days Total Non-US sovereign debt 15.98 % $ 826,196 $ 55,265 $ 881,461 Corporate debt 16.07 % 597,559 5,375 602,934 US sovereign debt 1.52 % 17,637 — 17,637 Corporate equity 12.24 % 15,384 — 15,384 Total securities sold under repurchase agreements $ 1,456,776 $ 60,640 $ 1,517,416 The fair value of collateral pledged under repurchase agreements as of June 30, 2023, and March 31, 2023, was $2,562,107 and $1,519,926, respectively. Securities pledged as collateral by the Group under repurchase agreements are liquid trading securities with market quotes and significant trading volume. As of 30 June 2023 and March 31, 2023, securities repurchase agreement obligations included accrued interest in the amount of $8,994 and $25,179, with a weighted average maturity of 10 days and 11 days, respectively. All securities repurchase agreements transactions were executed through the Kazakhstan Stock Exchange. |
CUSTOMER LIABILITIES
CUSTOMER LIABILITIES | 3 Months Ended |
Jun. 30, 2023 | |
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, 2023, and March 31, 2023 , customer liabilities consisted of: June 30, 2023 March 31, 2023 Amount Interest Amount Interest Interest bearing deposits: Term deposits 984,845 0.3% - 12% 832,751 0.1% - 16.9% Total Interest bearing deposits $ 984,845 $ 832,751 Non-interest-bearing deposits: Current customer accounts $ 485,007 $ 458,954 Brokerage customers $ 652,195 $ 633,542 Total non-interest-bearing accounts $ 1,137,202 $ 1,092,496 Total customer liabilities 2,122,047 1,925,247 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 $44 to each customer. As at June 30, 2023, and March 31, 2023, respectively, the Group had total amounts in excess of insured bank time deposits of $601,406 and $539,411 for all customers. |
MARGIN LENDING AND TRADE PAYABL
MARGIN LENDING AND TRADE PAYABLES | 3 Months Ended |
Jun. 30, 2023 | |
Accounts Payable [Abstract] | |
MARGIN LENDING AND TRADE PAYABLES | MARGIN LENDING AND TRADE PAYABLES As of June 30, 2023, and March 31, 2023 , margin lending and trade payables of the Group were comprised of the following: June 30, 2023 March 31, 2023 Margin lending payable $ 170,716 $ 117,144 Payables to suppliers of goods and services 7,490 2,965 Trade payable for securities purchased 1,666 482 Other 2,755 2,309 Total margin lending and trade payables $ 182,627 $ 122,900 On June 30, 2023, and March 31, 2023, margin lending payable due to a single re lated party were $— or 0% of total margin lending payable an d $3,239 or 3% of margin lending payable, respectively. The fair value of collateral by the Group under margin loans as of June 30, 2023, and March 31, 2023 was $182,062 and $164,861, respectively. |
DEBT SECURITIES ISSUED
DEBT SECURITIES ISSUED | 3 Months Ended |
Jun. 30, 2023 | |
Debt Securities [Abstract] | |
DEBT SECURITIES ISSUED | DEBT SECURITIES ISSUED As of June 30, 2023, and March 31, 2023, outstanding debt securities issued by the Group included the following: Debt securities issued by: June 30, 2023 March 31, 2023 Freedom SPC $ 64,354 $ 58,582 Accrued interest 687 1,443 Total debt securities issued $ 65,041 $ 60,025 As of June 30, 2023, and March 31, 2023, the Company’s outstanding debt securities had a fixed annual coupon rate of 5.5% and maturity date in October 2026. The Group’s debt securities as of June 30, 2023 , include $64,354 of Freedom SPC bonds issued in October 2021. The Freedom SPC bonds are denominated in U.S. dollars, bear interest at an annual rate of 5.5% and are due in October 2026. The Freedom SPC bonds were issued under Astana International Financial Centre law and trade on the AIX. The Company is a guarantor of the Freedom SPC bonds. The proceeds from the issuance of the Freedom SPC bonds were loaned to the Company pursuant to a loan agreement dated November 22, 2021. The interest rate under the loan agreement is 5.5% per annum. Interest payments are duly semi-annually in April and October. Repayment of the loan is due October 2026. 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, 2023 | |
Insurance [Abstract] | |
INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES | INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES As of June 30, 2023, and March 31, 2023, insurance and reinsurance receivables of the Group was comprised of the following: June 30, 2023 March 31, 2023 Assets: Amounts due from policyholders $ 7,448 $ 9,699 Claims receivable from reinsurance 1,285 1,087 Amounts due from reinsured 333 555 Allowance for estimated uncollectible reinsurance (1,502) (1,325) Insurance and reinsurance receivables: 7,564 10,016 Unearned premium reserve, reinsurers’ share 3,005 2,379 Reserves for claims and claims’ adjustment expenses, reinsurers’ share 1,640 1,390 Total $ 12,209 $ 13,785 As of June 30, 2023, and March 31, 2023, insurance and reinsurance payable of the Group was comprised of the following: June 30, 2023 March 31, 2023 Liabilities: Amounts payable to agents and brokers 2,494 2,466 Amounts payable to insured 2,692 1,807 Amounts payable to reinsurers 1,282 2,002 Insurance and reinsurance payables: 6,468 6,275 Unearned premium reserve 49,194 43,082 Reserves for claims and claims’ adjustment expenses 142,485 133,145 Total $ 198,147 $ 182,502 |
FEE AND COMMISSION INCOME
FEE AND COMMISSION INCOME | 3 Months Ended |
Jun. 30, 2023 | |
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 and Bank 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. 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. 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. Investment Banking 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 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, 2023 and March 31, 2023, 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, 2023 and March 31, 2023, contract liability balances were not material. During the three months ended June 30, 2023, and June 30, 2022, fee and commission income was comprised of: Three months ended June 30, 2023 Central Asia and Eastern Europe Europe excluding Eastern Europe The Unites States Middle East/Caucasus Total Brokerage services $ 35,018 $ 18,951 $ 1,113 $ — $ 55,082 Commission income from payment processing 18,042 — — — 18,042 Bank services 12,841 — — — 12,841 Underwriting and market-making services 4,698 — 4,133 — 8,831 Other fee and commission income 2,786 215 906 — 3,907 Total fee and commission income $ 73,385 $ 19,166 $ 6,152 $ — $ 98,703 Three months ended June 30, 2022 Central Asia and Eastern Europe Europe excluding Eastern Europe The Unites States Middle East/Caucasus Total Brokerage service $ 2,661 $ 79,805 $ 1,134 $ — $ 83,600 Bank services 3,814 — — — 3,814 Underwriting and market-making services 1,644 — — — 1,644 Other fee and commission income 131 257 — — 388 Total fee and commission income $ 8,250 $ 80,062 $ 1,134 $ — $ 89,446 |
NET GAIN ON TRADING SECURITIES
NET GAIN ON TRADING SECURITIES | 3 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
NET GAIN ON TRADING SECURITIES | NET GAIN ON TRADING SECURITIES During the three months ended June 30, 2023, and June 30, 2022, net gain on trading securities was comprised of: Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Net unrealized gain/(loss) recognized during the reporting period on trading securities still held at the reporting date $ 20,951 $ (11,730) Net gain recognized during the period on trading securities sold during the period 10,865 16,163 Net gain recognized during the period on trading securities $ 31,816 $ 4,433 During the quarter ended June 30, 2023 the Group recognized net gain on trading securities of $31,816, which included $20,951 of unrealized net gain and $10,865 of realized gain. The majority of unrealized gain was attributable to the appreciation of debt securities of Ministry of Finance of the Republic of Kazakhstan. |
NET INTEREST INCOME_EXPENSE
NET INTEREST INCOME/EXPENSE | 3 Months Ended |
Jun. 30, 2023 | |
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, 2023, and June 30, 2022 includes: Three months ended June 30, 2023 Three months ended June 30, 2022 Interest income: Interest income on trading securities 86,840 31,515 Interest income on loans to customers 31,333 4,627 Interest income on margin loans to customers 17,180 4,914 Interest income on securities available-for-sale 8,345 6,678 Interest income on reverse repurchase agreements and amounts due from banks 3,057 787 Interest income from dividends 2,594 42 Total interest income $ 149,349 $ 48,563 Interest expense: Interest expense on securities repurchase agreement obligations $ 75,455 $ 33,180 Interest expense on customer accounts and deposits 15,603 6,063 Interest expense on margin lending payable 2,993 — Interest expense on debt securities issued 935 767 Interest expense on loans received 27 61 Other interest expense 33 — Total interest expense $ 95,046 $ 40,071 Net interest income $ 54,303 $ 8,492 |
NET (LOSS)_GAIN ON DERIVATIVES
NET (LOSS)/GAIN ON DERIVATIVES | 3 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
NET (LOSS)/GAIN ON DERIVATIVES | NET (LOSS)/GAIN ON DERIVATIVES Three months ended June 30, 2023 Three months ended June 30, 2022 Net realized (loss)/gain on derivatives (27,493) 1,266 Net unrealized (loss)/gain on derivatives (3,112) — Total net (loss)/gain on derivatives $ (30,605) $ 1,266 During the quarter ended June 30, 2023, the Group recognized realized loss on derivatives in the amount of $27,673 as a result of engaging in currency swaps. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS During the three months ended June 30, 2023 and 2022, 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 institutions and conducts business with the Group through a client omnibus account at Freedom EU. Fee and commission income earned from related parties is comprised primarily of brokerage commissions principally FST Belize. Fee and commission income earned from FST Belize principally consists of fees and commissions paid by FST Belize to Freedom EU to execute trades requested by brokerage customers of FST Belize, as well as commissions paid by FST Belize for order flow, which is net compensation received from firms to which the Company's broker-dealer subsidiaries send equity and options orders, and fees for outstanding short sale positions. During the three months ended June 30, 2023 and 2022, the Group earned fee and commission income from related parties in the amounts of $15,896 and $75,604, respectively. Fee and commission income generated from FST Belize accounted for approximately 92% and 100% of the Company's total related party fee and commission income for the three months ended June 30, 2023 and 2022. Interest income earned from related parties is comprised entirely of interest income from FST Belize, principally interest income from margin lending. During the three months ended June 30, 2023 and 2022, the Group earned interest income from related parties in the amounts of $5,352 and $3,528, respectively. Interest income generated from FST Belize accounted for approximately 99% and 100% of the Company's total related party interest income for the three months ended June 30, 2023 and 2022. During the three months ended June 30, 2023 and 2022, the Group paid fee and commission expense for brokerage services to FST Belize in the amount of $99 and $156, respectively. Margin lending, brokerage and other receivables from related parties result principally from borrowings made under margin loans by related parties, principally FST Belize. As of June 30, 2023 and March 31, 2023, the Group had margin lending receivables with related parties totaling $384,688 and $294,985, respectively. 97% and 98% of these balances were due from FST Belize. Margin lending receivables from FST Belize principally represent margin loans granted by Freedom EU to FST Belize. As of June 30, 2023 and March 31, 2023, the Group had bank commission receivables and receivables from brokerage clients from related parties totaling $640 and $626, respectively. As of June 30, 2023 and March 31, 2023, the Group had a prepayment on acquisition of Internet Tourism LLP and Aviata LLP in the amoun t of $— and $16,089, respectively. As of June 30, 2023 and March 31, 2023, the Group had a payable for acquisition of Internet Tourism LLP and Aviata LLP from Chocofamily Holding Ltd in the amount of $15,769 and $—, respectively. As of June 30, 2023 and March 31, 2023, the Group had customer liabilities to related parties totaling $79,679 and $130,210, respectively. As of June 30, 2023 and March 31, 2023, 71% and 18%, respectively, of these balances were deposits from FST Belize held by Freedom EU related to brokerage services provided by Freedom EU to FST Belize, whereas 3% and 36%, respectively, were from Fresh Start Trading LTD, a company outside of the FRHC group which is primarily owned by Denis Matafonov, who is an executive director and board member of Freedom EU. As of June 30, 2023 and March 31, 2023, the Group had restricted customer cash deposited in current and brokerage accounts with related parties in the amounts of $59,914 and $114,885. As of June 30, 2023 and March 31, 2023, 100% and 40%, respectively, of these balances were from FST Belize. As of June 30, 2023 and March 31, 2023, the Group had loans issued which includes uncollateralized bank customer loans purchased from a related party, FFIN Credit a company outside of the FRHC group which is controlled by Timur Turlov, in the amount of $142,336 and $121,177, respectively. As of June 30, 2023 and March 31, 2023, the Group had loans received from Timur Turlov in the amount of $7,735 and $—, respectively. The proceeds of such loans were contributed by the Group to the capital of its Arbuz subsidiary. Margin lending, brokerage and related banking services were provided to related parties pursuant to standard client account agreements and at standard market rates. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY During the three months ended June 30, 2023, and 2022, no outstanding non-qualified stock options were exercised. On March 10, 2023 and on October 11, 2022, the Company awarded stock grants totaling 18,974 and 18,242 shares of its common stock, respectively, to key employees of the Company's subsidiaries, which vested on the date of the awards, and on October 20, 2022, the Company awarded a stock grant totaling 8,000 shares of its common stock to a consultant of the Company, which vested on the date of the award. On October 6, 2022, the Company awarded a restricted stock grant totaling 20,000 shares of its common stock to key employees of the Company. Of the 20,000 shares awarded pursuant to the restricted stock grant awards, 4,000 shares vested on the date of the award, 4,000 shares vest on May 18, 2023, 4,000 shares vest on May 18, 2024, 4,000 shares vest on May 18, 2025 and 4,000 shares vest on May 18, 2026. On March 30, 2022, the Company awarded a restricted stock grant totaling 7,500 shares of its common stock to one executive officer of the Company. Of the 7,500 shares awarded pursuant to the restricted stock grant awards, 3,000 shares vest on May 18, 2023, 1,500 shares vest on May 18, 2024, 1,500 shares vest on May 18, 2025 and 1,500 shares vest on May 18, 2026. The Company recorded stock-based compensation expense for restricted stock grants in the amount of $1,233 and $3,698 during the three month periods ended June 30, 2023 and June 30, 2022, respectively. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 3 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION During the three months ended June 30, 2023 no restricted shares were awarded to key employees. The compensation expense related to restricted stock grants was $1,233 during the three months ended June 30, 2023, and $3,698 during the three months ended June 30, 2022. As of June 30, 2023 there was $6,817 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 2.83 years. There are no compensation expense related to stock grants, which vested on the date of the award during the three months ended June 30, 2023 and June 30, 2022. The Company has determined the fair value of restricted shares awarded as of grant date, using the Monte Carlo valuation model based on the following key assumptions: Term (years) 2.83 Volatility 35.1 % Risk-free rate 4.18 % Shares Weighted Outstanding, at March 31, 2023 467,058 18,035 Granted — — Vested (134,558) (5,138) Forfeited/cancelled/expired — — Outstanding, at June 30, 2023 332,500 12,897 |
LEASES
LEASES | 3 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
LEASES | LEASES At March 31, 2023, 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 company leases 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 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. Rental expense associated with operating leases is recognized on a straight-line basis over the lease term, and generally included in occupancy expense in the Consolidated Statements of Operations. Certain of these leases also have extension or termination options, and the Company assesses the likelihood of exercising such options. If it is reasonably certain that the Group will exercise the options to extend, then the Company includes the impact in the measurement of its 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 consolidated balance sheets as of June 30, 2023: Classification on Balance Sheet June 30, 2023 Assets Operating lease assets Right-of-use assets $ 34,461 Total lease assets $ 34,461 Liabilities Operating lease liability Operating lease obligations $ 34,929 Total lease liability $ 34,929 The following table presents as of June 30, 2023, the annual maturities of the lease liabilities: Leases maturing during twelve months ended March 31, 2024 $ 8,915 2025 10,040 2026 9,249 2027 7,567 2028 5,492 Thereafter 4,793 Total payments 46,056 Less: amounts representing interest (11,127) Lease liability, net $ 34,929 Weighted average remaining lease term (in months) 31 Weighted average discount rate 13 % Lease commitments for short-term operating leases as of June 30, 2023 was approximately $152. The Group's rent expense for office space was $860 for the three months ended June 30, 2023, $543 for the three months ended June 30, 2022. 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. |
ACQUISITIONS OF SUBSIDIARIES
ACQUISITIONS OF SUBSIDIARIES | 3 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS OF SUBSIDIARIES | ACQUISITIONS OF SUBSIDIARIES Acquisition of Aviata Aviata's preeminent position in the air and rail ticketing sectors makes it an important strategic asset to us as we work to develop our comprehensive digital ecosystem. On April 26, 2023 , the Company completed the acquisition of Aviata by purchasing 100% of its outstanding shares. The Company acquired Aviata to expand its presence in the digital services ecosystem. As of April 26, 2023, the date of the acquisition of Aviata, the fair value of net assets of Aviata was $9,523. The total purchase price was allocated as follows: As of April 26, 2023 ASSETS Cash and cash equivalents $ 448 Restricted cash 105 Brokerage and other receivables 1,313 Loans issued 1,078 Fixed assets 63 Intangible assets 8,779 Other assets 1,221 TOTAL ASSETS 13,007 LIABILITIES Trade payables 1,606 Current tax liabilities 14 Other liabilities 1,864 TOTAL LIABILITIES 3,484 Net assets acquired 9,523 Goodwill 21,231 Total purchase price $ 30,754 Acquisition of Internet-Tourism As of April 26, 2023 the Company completed the acquisition of Internet-Tourism by purchasing 100% of its authorized capital. The Company acquired Internet-Tourism in order to accelerate its growth in digital sector. As of April 26, 2023, the date of the acquisition of Internet Tourism LLP, the fair value of net assets of Internet-Tourism was $1,359 . The total purchase price was allocated as follows: As of April 26, 2023 ASSETS Cash and cash equivalents $ 523 Brokerage and other receivables 838 Loans issued 62 Fixed assets 89 Intangible assets 959 Other assets 591 TOTAL ASSETS 3,062 LIABILITIES Trade payables 644 Other liabilities 1,059 TOTAL LIABILITIES 1,703 Net assets acquired 1,359 Goodwill 568 Total purchase price $ 1,927 Acquisition of Arbuz As of March 31, 2023, the Company held a 25% equity interest in Arbuz. On April 14, 2023, the Company acquired an additional 5.42% of Arbuz's shares. On May 22, 2023, the Company purchased a further 8.36% of Arbuz's shares, resulting in a total equity interest of 38.78% in Arbuz. With the inclusion of Timur Turlov's individual ownership interest in Arbuz of 18.08% that was acquired before March 31, 2023, the Company effectively obtained control over Arbuz with its purchase on May 22, 2023. The fair value of Arbuz on the date of the acquisition was $11,685. The total purchase price was allocated as follows: As of May 22, 2023 ASSETS Cash and cash equivalents $ 731 Brokerage and other receivables 591 Fixed assets 2,383 Intangible assets 15,154 Loans issued 157 Right-of-use asset 1,097 Other assets 5,002 TOTAL ASSETS 25,115 LIABILITIES Trade payables 2,559 Current tax liabilities 11 Lease liability 1,186 Other liabilities 9,674 TOTAL LIABILITIES 13,430 Net assets acquired 11,685 Goodwill 14,961 Purchase price $ 13,281 Revaluation of purchase price previously held interest $ 1,040 Fair value of NCI $ 12,325 Total purchase price $ 26,646 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | – COMMITMENTS AND CONTINGENCIES Freedom Bank KZ is a party to certain off-balance sheet financial instruments. These financial instruments include guarantees and unfunded 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. Unfunded commitments under lines of credit Unfunded 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. Unfunded commitments under guarantees Unfunded 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, 2023, and March 31, 2023, were as follows: As of June 30, 2023 As of March 31, 2023 Unfunded commitments under lines of credits and guarantees $ 51,712 $ 20,617 Bank guarantees 7,413 7,001 Total $ 59,125 $ 27,618 |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company historically organized its operations in a single operating segment. Following the divestiture of the Company's Russian subsidiaries and the related corporate restructuring, the Company elected to reorganize its operations geographically into regional segments. The Company currently organizes its operations into the following four regional segments: Central Asia and Eastern Europe, Europe Excluding Eastern Europe, the United States and Middle East/Caucasus. These operating segments are based on how the Company's CODM makes decisions about allocating resources and assessing performance. The following tables summarize the Company's Statement of Operations by its geographic segments. There are no revenues from transactions between the segments and intercompany balances have been eliminated for separate disclosure: Three months ended June 30, 2023 STATEMENTS OF OPERATIONS Central Asia and Eastern Europe Europe, excluding Eastern Europe The United States Middle East/Caucasus Total Fee and commission income (1) $ 73,385 $ 19,166 $ 6,152 $ — $ 98,703 Net gain/(loss) on trading securities 31,594 214 (173) 181 31,816 Interest income 142,038 5,914 1,387 10 149,349 Insurance underwriting income 44,889 — — — 44,889 Net gain/(loss) on foreign exchange operations 19,923 (320) (362) 60 19,301 Net (loss)/gain on derivative (30,778) 173 — — (30,605) Other income/(expense) 1,732 217 838 (30) 2,757 TOTAL REVENUE, NET 282,783 25,364 7,842 221 316,210 Fee and commission expense 23,798 4,572 265 49 28,684 Interest expense 86,664 6,812 1,570 — 95,046 Insurance claims incurred, net of reinsurance 21,514 — — — 21,514 Payroll and bonuses 24,167 4,754 2,293 416 31,630 Professional services 562 2,738 3,280 45 6,625 Stock compensation expense 829 91 313 — 1,233 Advertising expense 3,731 4,026 95 248 8,100 General and administrative expense 16,028 4,029 4,113 305 24,475 Allowance for credit losses 13,771 552 3 — 14,326 TOTAL EXPENSE 191,064 27,574 11,932 1,063 231,633 INCOME BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 91,719 $ (2,210) $ (4,090) $ (842) $ 84,577 Income tax expense (27) (2,430) (14,199) — (16,656) INCOME FROM CONTINUING OPERATIONS $ 91,692 $ (4,640) $ (18,289) $ (842) $ 67,921 Three months ended June 30, 2022 STATEMENTS OF OPERATIONS Central Asia and Eastern Europe Europe, excluding Eastern Europe The United States Middle East/Caucasus Total Fee and commission income (1) $ 8,250 $ 80,062 $ 1,134 $ — $ 89,446 Net gain/(loss) on trading securities 21,589 (15,425) (1,731) — 4,433 Interest income 39,852 4,269 4,442 — 48,563 Insurance underwriting income 24,241 — — — 24,241 Net gain/(loss) on foreign exchange operations 4,267 570 (234) (10) 4,593 Net gain on derivative 1,266 — — — 1,266 Other (expense)/income (93) (2) 6 57 (32) TOTAL REVENUE, NET 99,372 69,474 3,617 47 172,510 Fee and commission expense 10,714 12,427 153 21 23,315 Interest expense 31,968 2,696 5,407 — 40,071 Insurance claims incurred, net of reinsurance 16,692 — — — 16,692 Payroll and bonuses 11,730 2,732 1,745 206 16,413 Professional services 721 1,272 2,206 56 4,255 Stock compensation expense 1,101 156 619 — 1,876 Advertising expense 2,149 1,681 7 — 3,837 General and administrative expense 5,066 5,724 690 138 11,618 Allowance for credit losses/(recoveries) 2,431 — (3) — 2,428 TOTAL EXPENSE 82,572 26,688 10,824 421 120,505 INCOME BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 16,800 $ 42,786 $ (7,207) $ (374) $ 52,005 Income tax (expense)/benefit (61) (7,223) (1,605) 10 (8,879) INCOME FROM CONTINUING OPERATIONS $ 16,739 $ 35,563 $ (8,812) $ (364) $ 43,126 (1) All trading of U.S. and European exchange traded and OTC securities by all Freedom securities brokerage firms, excluding PrimeEx, are routed to and executed through Freedom EU and all fee and commission income for those transactions is recognized at subsidiary received the initial order from external client. The following tables summarize the Company's total assets and total liabilities by its geographic segments. Intercompany balances have been eliminated for separate disclosure: June 30, 2023 Central Asia and Eastern Europe Europe, excluding Eastern Europe The United States Middle East/Caucasus Total Total assets $ 5,674,747 $ 785,218 $ 75,453 $ 4,347 $ 6,539,765 Total liabilities 5,202,661 480,761 24,372 6,235 5,714,029 Net assets $ 472,086 $ 304,457 $ 51,081 $ (1,888) $ 825,736 March 31, 2023 Central Asia and Eastern Europe Europe, excluding Eastern Europe The United States Middle East/Caucasus Total Total assets $ 4,303,126 $ 677,425 $ 101,365 $ 2,642 $ 5,084,558 Total liabilities 3,868,326 384,921 60,198 377 4,313,822 Net assets $ 434,800 $ 292,504 $ 41,167 $ 2,265 $ 770,736 Central Asia and Eastern Europe Segment Operations in Kazakhstan, Kyrgyzstan, Uzbekistan, along with the Company's headquarters in Kazakhstan, form the Central Asia and Eastern Europe segment. Within this segment, the Group conducts business under different securities licenses as required by the respective jurisdictions in the Central Asia and Eastern Europe region. Group companies in the Central Asia and Eastern Europe segment provide comprehensive financial solutions, including lending such as digital auto loans and digital mortgage loans, payments, asset management products, bank guarantees, on demand and time deposits, various types of insurance coverage to meet the needs of the Group's customers and small businesses. The Group's insurance offerings include 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. Europe Excluding Eastern Europe Segment Operations in Cyprus, United Kingdom and Germany. Companies in the Europe Excluding Eastern Europe segment offer a broad suite of market-making, prime brokerage, lending, and treasury and securities products and services to a global client base of corporations, investors, financial institutions, merchants, government and municipal entities. Companies in this segment cater to clients from the European Union by offering comprehensive solutions to support their investment needs. The Group's services in this segment encompass direct access to the world's largest stock exchanges, providing its clients with 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, it provides user-friendly trading applications that offer convenience and flexibility. United States Segment Companies in the United States segment offer a full array of investment banking and capital markets advisory services, including initial public offerings, mergers, and acquisitions, debt and equity financing, corporate banking, trading, hedging, and research, equity research, delivering in-depth analysis, insights into individual stocks and sectors. It provides macro-economic strategy research to help clients navigate the broader economic landscape and make informed investment decisions. To ensure clients are well-informed, companies in this segment offer a daily morning note that covers key market updates, trends, and potential opportunities. It also provides technical research, focusing on chart patterns and technical indicators to assist clients in identifying potential entry and exit points in the market. In addition, companies in the United States segment conduct research in specific sectors such as energy and consumer, offering valuable insights into industry trends and company analysis. It facilitates corporate access research, enabling clients to gain access to top management and industry experts for a deeper understanding of specific companies or sectors. Middle East/Caucasus Segment Companies in the Middle East/Caucasus segment offer securities broker-dealer services, financials educational center services, financial intermediary center services and financial consulting services. The segment is currently in the developmental stage and does not generate profit at the moment. As a developing segment, the focus is on establishing a strong presence, building strategic relationships, and expanding client base in the region. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Jun. 30, 2023 | |
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. On July 26, 2023, the Company acquired Kazakhstan company ReKassa PCI Reader for $2,500. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 68,102 | $ 61,066 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
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, 2023 | |
Accounting Policies [Abstract] | |
Accounting principles | Accounting principles The Company's accounting policies and accompanying consolidated financial statements conform to accounting principles generally accepted in the United States of America (U.S. GAAP). |
Accounting principles and Basis of presentation | 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. |
Consolidation of variable interest entities | Consolidation of variable interest entitiesIn accordance with accounting standards regarding consolidation of variable interest entities ("VIEs"), VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. VIEs must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. As of June 30, 2023 there are no VIEs in respect of the Company. As at March 31, 2023 and for the years ended March 31, 2023, 2022 and 2021, the only VIE in respect of the Company was Freedom UA. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management believes that the estimates utilized in preparing the Company's financial statements are reasonable and prudent. Actual results could differ from those estimates. |
Revenue and expense recognition | Revenue and expense recognition Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services promised to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. A significant portion of the Group's revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as loans and investment securities, as these activities are subject to other U.S. GAAP guidance discussed elsewhere within these disclosures. Descriptions of the Group's revenue-generating activities that are within the scope of ASC Topic 606, which are presented in the Consolidated Statements of Operations and Statements of Other Comprehensive Income as components of total revenue, net are as follows: • Commissions on brokerage services; • Commissions on banking services (money transfers, foreign exchange operations and other); and • Commissions on investment banking services (underwriting, market making, and bondholders' representation services). Gross versus net revenue ASC 606 provides guidance on proper recognition of principal versus agent considerations which is used to determine gross versus net revenue recognition. Under ASC 606, the core objective of the guidance on gross versus net revenue recognition is to help determine whether the Group is a principal or an agent in a transaction. In general, the primary difference between these two is the performance obligation being satisfied. The principal has a performance obligation to provide the desired goods or services to the end customer, whereas the agent arranges for the principal to provide the desired goods or services. Additionally, a fundamental characteristic of a principal in a transaction is control. A principal substantively controls the goods and services before they are transferred to the customer as well as controls the price of the good or service being provided. An agent normally receives a commission or fee for these activities. In addition to control, the level at which the Group controls the price of the good or service being transferred determines principal versus agent status. The more discretion over setting price a Group has in providing the good or service, the more likely they are considered a principal rather than an agent. In certain cases, other parties are involved with providing products and services to Freedom's customers. If Freedom is principal in the transaction (providing goods or services itself), revenues are reported based on the gross consideration received from the customer and any related expenses are reported gross in non interest expense. If Freedom is an agent in the transaction (arranging for another party to provide goods or services), the Group reports its net fee or commission retained as revenue. |
Interest income | Interest income Interest income on margin loans, loans issued, trading securities, available-for-sale securities, and reverse repurchase agreement obligations are recognized based on the contractual provisions of the underlying arrangements. Loan premiums and discounts are deferred and generally amortized into interest income as yield adjustments over the contractual life and/or commitment period using the effective interest method. Interest income is recognized by the Group and continue to be accrued for the loans which meet the impairment criteria. Unamortized premiums, discounts and other basis adjustments on trading securities are generally recognized in interest income over the contractual lives of the securities using the effective interest method. |
Loans | Loans The Group's loan portfolio is divided into: mortgages, uncollateralized bank customer loans, collateralized bank customer loans, car loans, loans issued to policyholders, convertible loans, right of claim for purchased retail loans and subordinated loans. Mortgage loans consist of loans provided to individuals to purchase residential homes, which is used as collateral for the loan. Uncollateralized bank customer loans consist of loans provided through credit cards to individuals and retail unsecured banking loans provided to individuals. Collateralized bank customer loans consist of retail collateralized loans provided to individuals. Subordinated loans consist of uncollateralized loans provided to the legal entities to support their businesses, that ranks below other, more senior loans or securities with respect to claims on assets or earnings. Margin loans are not classified as part of the Group's loan portfolio and are instead recorded on the Consolidated Balance Sheets under Margin lending, brokerage and other receivables, net. Loans issued to policyholders are represented by loans issued by insurer to its policyholders under an accumulative insurance contract. Policy loans are provided within the redemption amount, which is a security for the return of the received loan and covers the loans amount and interest. Car loans consists of loans provided to individuals to purchase new or used car. Right of claim for purchased retail loans represented by microfinance organization Freedom Finance Credit (“FFIN Credit") loans. Convertible loans are those, that will be converted to specified amount of shares at the repayment date. A loan becomes delinquent when the borrower doesn't fulfill its obligations to the Group to repay the loan on time according to the agreement. When loans are written off, they are removed as assets from the balance sheet since the Group does not expect to recover payment. Allowance for credit losses The Group maintains an allowance for credit losses (ACL) for financial assets measured at amortized cost. The ACL mainly consists of the allowance for loan losses, and the allowance for credit losses for available-for-sale securities. The estimate of expected credit losses under the current expected credit losses (CECL) methodology adopted on April 1, 2023 is based on relevant information about the past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Allowance for credit losses - Loans On April 1, 2023, the Group adopted new accounting guidance which requires entities to estimate and recognize an allowance for lifetime expected credit losses for loans. Previously, an allowance for credit losses for loans was recognized based on probable incurred losses. The ACL is a valuation account that is deducted from the amortized cost of total loans to present the net amount expected to be collected on the loans. Under CECL, the Group's methodology to establish the allowance for loan losses has two basic components: (1) a collective CECL component for estimated expected credit losses for pools of loans that share common risk characteristics and (2) an individual CECL component for loans that do not share risk characteristics. Management estimates the allowance balance using relevant and available information from internal and external sources, relating to past events, including historical trends in loan delinquencies and charge offs, current conditions, and reasonable and supportable forecasts. Allowance for credit losses for loans that share common risk characteristics Pooling loans with common risk characteristics for estimating allowance for credit losses is primarily based on the segmentation by product type and the type of collateral provided. The Group estimates current expected credit loss for loans with common risk characteristics using the PD/LGD methodology, which is based on relevant information about historical experience, current conditions, as well as reasonable and reasonable forecasts that allow estimating the Group's potential losses on the loan portfolio. In assessing the Probability of Default (PD) for loans with common risk characteristics, the Group uses average monthly loan balance flowing across delinquency buckets over a period of five years or more. Based on the weighted average maturity of loans with common risk characteristics, using the Markov chain method, the proportion of possible loan agreements with overdue debts over 90 days for individuals and over 60 days for legal entities is determined, which are used to determine the PD for a pool of loans. If there are no own statistics, then the calculation of PD is carried out on the basis of statistics of State Credit Bureau JSC on past events for a period of five or more years. The resulting PD indicator is adjusted for qualitative or internal and external environmental factors not considered within the model, but which are relevant in estimating the expected credit losses within the loan portfolio. The macroeconomic indicators impacting the expected risk of loss within the loan portfolio include the following: GDP, the retail trade index, the unemployment rate, the real wage rate, the dollar exchange rate against the tenge, and the consumer price index. These macroeconomic indicators are recalculated once per year and used throughout the year. Also, they are used for all loan types. When estimating the Loss on Default (LGD) for loans with common risk characteristics, the Group uses the latest market value of the collateral as of the calculation date. First, depending on the type of collateral, liquidity ratios are applied to the market value, after which the value of the collateral is discounted at the initial effective interest rate of the loan agreement for the exposure periods corresponding to the types of collateral. The described above PD/LGD approach apply for all type of loans, as well as non-impaired and defaulted. Allowance for credit losses for loans that that do not share common risk characteristics Loans that do not share similar risk characteristics with any pools of assets are subject to individual evaluation and are removed from the collectively assessed pools. Loans that are individually evaluated for collectability are reviewed based on an assessment of the financial condition of the borrower, taking into account the most possible debt repayment scenarios: due to expected cash flows from operating activities, cash available from guarantors, founders, shareholders, investors, related companies, other confirmed cash flows, restructuring of the borrower's obligations and the sale of collateral. Depending on the loan maturity date, the expected cash flows are discounted at the original effective interest rate and allowance for credit losses are calculated as the difference between the discounted expected cash flows and outstanding balance of the loan. If repayment of the debt is deemed impossible, based on the expected cash flows, the Group accrues allowance for credit losses in the amount of 100% of the loan balance. Loan portfolio risk elements and credit risk management Credit risk management. When implementing credit risk management processes, the Group is guided by internal policies and procedures approved by the Board of Directors, which define the main goals, objectives, principles, priority areas for the formation of an internal effective credit risk management system that corresponds to the current market situation and the Group's development strategy, and ensures effective identification, measurement, monitoring and control of the Group's credit risk. In order to minimize credit risk, the Group has developed procedures for managing internal risk appetite limits for currencies, countries, sectors of the economy, business categories and products, types of collateral, concentration of risk on the top 20 borrowers, debts of a group of related borrowers, etc. Control over the level of limits on credit risk is carried out by the Group's risk division through the preparation of monthly management reports, which include, but are not limited to, information on the quality of the loan portfolio, its classification in accordance with the requirements of reporting standards, on the amount of exposure to credit risk, including a group of related borrowers, on the concentration of credit risk of the largest borrowers and borrowers as related parties to the Group, on the internal rating of borrowers, etc. When analyzing a borrower, the Group uses the following information to assess creditworthiness: the borrower's existing loans from all banks in the Republic of Kazakhstan, the presence of overdue debt, income, age, work experience and dynamics of credit behavior. Mortgage loans. The Group provides mortgage loans for the purchase of real estate in both the primary and secondary markets. This is done through the Group's own and government lending programs, relevant lending products as described in the Group's internal normative documents, and compliance with the laws and regulations of the Republic of Kazakhstan. The main share of the Group's loan portfolio is represented by mortgage loans issued within the framework of state support programs, funded from the funds of quasi-state organizations. Valuation of real estate collateral is carried out directly by independent appraisal companies with subsequent confirmation by the Group's collateral service. The collateral policy and methodology of the process for working with collateral comply with the regulatory requirements of the regulator and the banking legislation of the country. In the process of making decisions on the solvency and creditworthiness of borrowers, an automatic check is carried out through external and internal databases. To do this, the results of both the Group's own and third-party credit scoring models are taken into account. The Group does not use third party loan underwriting services. Residential mortgages include only fixed rate loans secured by real estate purchases. When making a decision to issue a mortgage on housing, the Group takes into account the qualifications of the borrower, as well as the value of the underlying property . Car loans. When making decisions on car loans, the Group uses both evaluation and scoring systems. The Group provides loans for the purchase of motor vehicles both under the C2C scheme and under the B2C scheme with the participation of car dealerships. The decision-making process includes the use of data from credit bureaus, government databases and other sources of information. This allows not only to assess the financial capacity of a potential borrower, but also to evaluate the purchased vehicle. Machine learning models have also been introduced that analyze data about the cars themselves and sellers. This allows to automatically screen out applications with high potential credit risk. Right of claim for purchased retail loans. The Group regularly acquires receivables on consumer credit products from other financial institutions through assignment agreements (cessions). This pool of the Group's loan portfolio is low-risk due to the presence of a condition for the repurchase of loans by a microfinance organization in the event of an overdue debt on these loans for more than 20 calendar days in accordance with the agreement between the Group and the microfinance organization. To confirm the solvency of a financial institution, an analysis is made of its financial position and the ability to fulfill obligations under an agreement on the repurchase of loans in case of default in payment terms for 20 or more days. Uncollateralized bank customer loans. In the loan portfolio of individuals, an insignificant part is represented by loans issued without collateral for consumer purposes. The main condition for issuing loans to potential borrowers is compliance with the regulator's requirement that the amount of monthly loan payments does not exceed 50% of the borrower's income after a credit analysis. In case of violation of this condition, the Group rejects the loan request. In addition to unsecured loans for individuals, the Group also offers unsecured loans for individual entrepreneurs. Several scoring models are used to make decisions about this product to determine the risk segment for each customer. The income of the client and the class of the borrower are also estimated based on his property status. The Group uses data from official sources to determine the payment fund for an individual entrepreneur and turnover through an online cash register, which helps to assess the solvency of customers. The final decision to grant a limit depends on the risk segment and income class of the borrower. Loans are issued both within the framework of their own programs and under government programs with subsidized interest rates in the portfolio. Collateralized bank customer loans . The Group provides loans secured by guarantees issued by the quasi-governmental company's and by highly liquid financial assets. Due to the presence of collateral, the maximum loan amount significantly exceeds those provided for unsecured loans. At the loan issuance date, the collateral value fully covers the loan amount. |
Derivative financial instruments | Derivative financial instruments In the normal course of business, the Group invests in various derivative financial contracts including futures. Derivatives are initially recognized at fair value at the date a derivative contract is entered into and are subsequently re-measured to their fair value at each reporting date. The fair values are estimated based on quoted market prices or pricing models that take into account the current market and contractual prices of the underlying instruments and other factors. Derivatives are carried as assets when their fair value is positive and as liabilities when it is negative. |
Functional currency | Functional currency Management has adopted ASC 830, Foreign Currency Translation Matters as it pertains to its foreign currency translation. The Company's functional currencies are the Kazakhstan tenge, the euro, the U.S. dollar, the Ukrainian hryvnia, the Uzbekistani som, the Kyrgyzstani som, the Azerbaijani manat, the British pound sterling, the Armenian dram, the United Arab Emirates dirham and the Turkish lira, and its reporting currency is the U.S. dollar. For financial reporting purposes, |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents are generally comprised of cash and certain highly liquid investments with original maturities of three months or less at the date of purchase. Cash and cash equivalents include reverse repurchase agreements with a maturity of less than 90 days and where the credit risk of the counterparty is low, which are recorded at the amounts at which the securities were acquired plus accrued interest. |
Securities reverse repurchase and repurchase agreements | Securities reverse repurchase and repurchase agreements A reverse repurchase agreement is a transaction in which the Group purchases financial instruments from a seller, typically in exchange for cash, and simultaneously enters into an agreement to resell the same or substantially the same financial instruments to the seller for an amount equal to the cash or other consideration exchanged plus interest at a future date. Securities purchased under reverse repurchase agreements are accounted for as collateralized financing transactions and are recorded at the contractual amount for which the securities will be resold, including accrued interest. Financial instruments purchased under reverse repurchase agreements are recorded in the financial statements as cash placed on deposit collateralized by securities and classified as cash and cash equivalents in the Consolidated Balance Sheets. A repurchase agreement is a transaction in which the Group sells financial instruments to another party, typically in exchange for cash, and simultaneously enters into an agreement to reacquire the same or substantially the same financial instruments from the buyer for an amount equal to the cash or other consideration exchanged plus interest at a future date. These agreements are accounted for as collateralized financing transactions. The Group retains the financial instruments sold under repurchase agreements and classifies them as trading securities in the Consolidated Balance Sheets. The consideration received under repurchase agreements is classified as securities repurchase agreement obligations in the Consolidated Balance Sheets. The Group enters into reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions to, among other things, acquire securities to leverage and grow its proprietary trading portfolio, cover short positions and settle other securities obligations, to accommodate customers' needs and to finance its inventory positions. The Group enters into these transactions in accordance with normal market practice. Under standard terms for repurchase transactions, the recipient of collateral has the right to sell or repledge the collateral, subject to returning equivalent securities on settlement of the transaction. |
Restricted cash | Restricted cashRestricted cash consists of cash and cash equivalents that are held for specific reasons and not available for immediate use. Certain subsidiaries of the Group are obligated by rules and regulations mandated by their primary regulators to segregate or set aside certain customer cash in the interests of protecting customer assets. Restricted cash is mainly represented by customer cash and guaranty deposits, which are restricted in use by the Group for more than three months. |
Available-for-sale securities | Available-for-sale securities Financial assets categorized as available-for-sale ("AFS") are non-derivatives that are either designated as available-for-sale or not classified as (a) loans and receivables, (b) held to maturity investments or (c) trading securities. Gains and losses arising from changes in fair value are recognized in other comprehensive income and accumulated in the Accumulated other comprehensive loss, with the exception of other-than-temporary impairment losses, interest calculated using the effective interest method, and foreign exchange gains and losses are recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. When the investment is disposed of or is determined to be |
Trading securities | Trading securities Financial assets are classified as trading securities if the financial asset has been acquired principally for the purpose of selling it in the near term. Trading securities are stated at fair value, with any gains or losses arising on remeasurement recognized in revenue. Changes in fair value are recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income and included in net gain on trading securities. Interest earned and dividend income are recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income and included in interest income, according to the terms of the contract and when the right to receive the payment has been established. Investments in nonconsolidated managed funds are accounted for at fair value based on the net asset value of the funds provided by the fund managers with gains or losses included in net gain on trading securities in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. |
Debt securities issued | Debt securities issued Debt securities issued are initially recognized at the fair value of the consideration received, less directly attributable transaction costs. Subsequently, amounts due are stated at amortized cost and any difference between net proceeds and the redemption value is recognized over the period of the borrowings using the effective interest method. If the Group purchases its own debt it is removed from the Consolidated Balance Sheets and the difference between the carrying amount of the liability and the consideration paid is recognized in the Consolidated Statements of Operations and Statements of Other Comprehensive Income. |
Margin lending, brokerage and other receivables | Margin lending, brokerage and other receivables The Group engages in securities financing transactions with and for clients through margin lending. In margin lending, the Group's customers borrow funds from the Group or sell securities the customer does not own against the value of their qualifying securities held in custody by the Group. Under these agreements, the Group is permitted to sell or repledge securities received as collateral. Furthermore, the contractual arrangements establish that the Group can use the pledged collateral by the customers for repurchase agreement operations, securities lending transactions or delivery to other counterparties to cover short positions. Margin lending, brokerage and other receivables comprise margin lending receivables, brokerage commissions and other receivables related to the securities brokerage and banking activity of the Group. At initial recognition, margin lending, brokerage and other receivables are recognized at fair value. Subsequently, margin lending, brokerage and other receivables are carried at cost net of any allowance for impairment losses. 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 its own account or the account of another client. The Group maintains 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, 2023, the margin lending receivables balance from FST Belize was fully collateralized by its customer-owned cash and market securities held by the Group, including $25.2 million of margin lendin |
Derecognition of financial assets | Derecognition of financial assets A financial asset (or, where applicable a part of a financial asset or a part of a group of similar financial assets) is derecognized where all of the following conditions are met: • The transferred financial assets have been isolated from the Group - put presumptively beyond the reach of the Group and its creditors, even in bankruptcy or other receivership. • The transferee has rights to pledge or exchange financial assets. • The Group or its agents do not maintain effective control over the transferred financial assets or third-party beneficial interests related to those transferred assets. Where the Group has not met the asset derecognition conditions above, it continues to recognize the asset to the extent of its continuing involvement. |
Impairment of long-lived assets | Impairment of long-lived assets In accordance with the accounting guidance for the impairment or disposal of long-lived assets, the Group periodically evaluates the carrying value of long-lived assets to be held and used when events and circumstances warrant such a review. The carrying value of a long-lived asset is considered impaired when the fair value from such asset is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the long-lived asset. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair values are reduced for the cost of disposal. During the three months ended June 30, 2023 the Group did not record any charges for impairment of long-lived assets. |
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: Central Asia and Eastern Europe Reporting Unit: This reporting unit represents the Group's operations in Central Asia and Eastern Europe, which encompasses countries such as Kazakhstan, Uzbekistan and Kyrgyzstan. The management team responsible for the Central Asia and Eastern Europe region regularly reviews financial information specific to this reporting unit, including revenue, expenses, and key performance indicators. Europe Excluding Eastern Europe Reporting Unit: This reporting unit comprises the Group's operations in various European countries, including Cyprus, Germany and United Kingdom. The management team responsible for the Europe Excluding Eastern Europe region reviews financial information related to this reporting unit, including revenue, expenses, and market trends. US Reporting Unit: This reporting unit comprises the Group's operations in USA. The management team responsible for the US region reviews financial information related to this reporting unit, including revenue, expenses, and market trends. Middle East/Caucasus Unit: This reporting unit comprises the Group's operations in Middle East/Causcasus. This reporting unit represents the Group's operations in Middle East/Caucasus, which encompasses countries such as Armenia, Azerbaijan, UAE and Turkey. The management team responsible for the Middle East/Causcasus region 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 reporting unit, 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. |
Business combinations and acquisitions | Business combinations and acquisitions Acquisitions of businesses not under common control are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. Acquisition-related costs are generally recognized in profit or loss as incurred . The assets and liabilities acquired are recognized, with certain exceptions such as deferred taxes, at their fair values at the acquisition date. Business combinations under common control are accounted for under the pooling of interests method which involves combining the financial statements of the acquiring and acquired entities as if they had been combined from the beginning of the common control relationship. The assets and liabilities are combined on a carry over basis and not restated to its fair values. This approach required the Group to recast its consolidated financial statements to reflect the assets, liabilities and operations of the acquired entities since the beginning of the earliest comparative period. |
Income taxes | Income taxes The Group recognizes deferred tax liabilities and assets based on the difference between the financial statements and tax basis of assets and liabilities using the enacted tax rates in effect for the year in which the differences are expected to reverse. The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized. Current income tax expenses are provided for in accordance with the laws of the relevant taxing authorities. As part of the process of preparing financial statements, the Group is required to estimate its income taxes in each of the jurisdictions in which it operates. The Group accounts for income taxes using the asset and liability approach. Under this method, deferred income taxes are recognized for tax consequences in future years based on differences between the tax bases of assets and liabilities and their reported amounts in the financial statements at each year-end and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates applicable for the differences that are expected to affect taxable income. The Group records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) the Group determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Group recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Group will include interest and fines arising from the underpayment of income taxes in the provision for income taxes (if anticipated). As of June 30, 2023 and March 31, 2023, the Group had no accrued interest or fines related to uncertain tax positions. The Global Intangible Low-Taxed Income ("GILTI") provisions of the Tax Cuts and Jobs Act require the Group to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary's tangible assets. The Group has presented the deferred tax impacts of GILTI tax in its consolidated financial statements as of June 30, 2023 and March 31, 2023. |
Fair Value | Fair Value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction |
Leases | Leases The Group follows ASU No. 2016-02, "Leases (Topic 842)," upon adoption of ASC 842, the Group elected not to recognize leases with terms of one-year or less on the balance sheet. Operating lease assets and corresponding lease liabilities were recognized on the Company's Consolidated Balance Sheets. Refer to Note 21 " Leases ", to the condensed consolidated financial statements for additional disclosure and significant accounting policies affecting leases. |
Fixed assets | Fixed assets Fixed assets are carried at cost, net of accumulated depreciation. Maintenance, repairs, and minor renewals are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range between three |
Insurance and reinsurance receivable | Insurance and reinsurance receivableInsurance and reinsurance receivable is recognized when related income is earned and measured on initial recognition at the fair value of the consideration receivable. Subsequent to initial recognition, any insurance and reinsurance receivable is measured at cost net of any allowance for impairment losses. |
Deferred acquisition costs | Deferred acquisition costs Deferred acquisition costs are commissions, premium taxes, and other incremental direct costs of contract acquisition that results directly from and are essential to the contract transaction(s) and would not have been incurred by the Group had the contract transaction(s) not occurred. The deferred amounts are recorded as an asset on the balance sheet and amortized to expense in a systematic manner. Traditional life insurance and long-duration health insurance deferred policy acquisition costs are amortized over the estimated premium-paying period of the related policies using assumptions consistent with those used in computing the related liability for policy benefit reserves. Deferred acquisition costs for property and casualty insurance and short-duration health insurance are amortized over the effective period of the related insurance policies. Deferred policy acquisition costs are expensed when such costs are deemed not to be recoverable from future premiums (for traditional life and long-duration health insurance) and from the related unearned premiums and investment income (for property and casualty and short-duration health insurance). Assessments of recoverability for property and casualty and short-duration health insurance are extremely sensitive to the estimates of a subsequent year’s projected losses related to the unearned premiums. |
Insurance and reinsurance payable | Insurance and reinsurance payable Payables on insurance business comprise advances received, amounts payable to insured (claims and premium refund payable) and amounts payable to agents and brokers, and advances received from insurers and reinsurers. Payables on reinsurance business comprise net amounts payable to reinsurers. Amounts payable to reinsurers include ceded reinsurance premiums, assumed premium refunds and claims on assumed reinsurance. Insurance and reinsurance payable are accounted for at amortized cost. |
Unearned premium reserve and claims | Unearned premium reserve and claims Unearned premium is determined by the method of proportion for each contract, as the product of the insurance premium under the contract for the ratio of the expiration of the insurance cover (in days) to the balance sheet date (in days) from the date of recognition of the insurance premium in accounting as income until the end of the insurance coverage. The reinsurer's share in the unearned premium reserve is calculated separately for each insurance (reinsurance) contract and is determined as the ratio of the insurance premium under the reinsurance contract to the insurance premium under the insurance contract multiplied by the unearned premium reserve. Results of insurance activity includes net written insurance premiums reduced by the net change in the unearned premium reserve, commissions recognized from assumed insurance and reinsurance contracts, claims paid net and net change in the loss reserves. Net written insurance premiums represent gross written premiums less premiums ceded to reinsurers. Upon inception of a contract (except for classes of life and annuity insurance), premiums are recorded as written and are earned on a pro rata basis over the term of the related contract coverage. The unearned premium reserve represents the portion of the premiums written relating to the unexpired terms of coverage and is included in the accompanying statement of Consolidated Balance Sheets. Unearned premium reserve relates to non-life insurance products and non-annuity insurance products. Claims and other insurance expenses are expensed to th e Consolidated Statements of Operations and Statements of Other Comprehensive Income as incurred. Insurance loss reserves Premium Deficiency Reserve Premium deficiency reserve is a liability balance based on actuarial estimates for anticipated losses on value-based-care contracts reassessed by management when it becomes probable that future losses will be incurred. The reserve balance is the sum of expected future costs, claims adjustment expenses, and maintenance costs that exceed future premiums under contracts excluding consideration from investment income. Losses or gains from these reassessments are recorded in the period in which such losses were identified and reflected within the Consolidated Statement of Operations and Other Comprehensive Loss. If a premium deficiency occur, future changes in the liability is based on the revised assumptions. No loss is reported if it results in creating future income. The liability for future policy benefits using revised assumptions based on actual and anticipated experience is estimated periodically for comparison with the liability for future policy benefits (reduced by unamortized acquisition costs) at the valuation date. Premium deficiency reserves are amortized over the period in which loses are expected to be incurred and expected to have an offsetting impact on operating losses in that period. Premium deficiency reserve process is applicable for both life and non-life insurance policies. Use of Estimates in Premium Deficiency Reserves. The Group's Premium deficiency reserve may fluctuate from period to period as a percentage of total revenue and value-based care revenue. This is due to the significant uncertainty and varying nature of key inputs into the measurement of the reserves, driving the income or expense in the period. These key inputs include the contractual rates within value-based care contracts, forecasted benefit and member population changes, contractual periods, risk adjustments and claims costs forecasts associated with the Group's member populations and allocation of operating costs to these contracts. Non-life and general insurance Loss reserves are a summary of estimates of ultimate losses, and include both claims reported but not settled (RBNS) and claims incurred but not reported (IBNR). RBNS is created for existing reported claims not settled at the reporting date. Estimates are made on the basis of information received by the Group during its investigation of insured events. IBNR is estimated by the Group based on its previous history of reported/settled claims using actuarial methods of calculation, which include claim development triangles. Reinsurance assets in IBNR are estimated applying the same actuarial method used in IBNR estimation. Life insurance Not incurred claims reserves (NIC) on life insurance contracts equal the NIC amount for all life insurance contracts valid as at the reporting date. NIC reserve on a separate contract of life insurance is equal to the maximum value of the net level premium reserve and gross-premium reserve. Net level premium reserve is the present value of future benefits (excluding survival benefits) less present value of future net premiums. Gross-premium reserve is present value of benefits, expenses of the Group that are directly related to consideration, settlement, and determination of the benefit amount, operating expenses of the Group related to conducting of the business, less present value of future gross-premiums. The Group excludes terminations of the contracts from the statistics which is then used for NIC reserves, given the inclusion of terminations will result lower level of NIC reserves which may not be sufficient. Annuity insurance NIC reserve on annuity contracts is the sum of the present value of future benefits, the claims for annuity insurance and administrative expenses on annuity insurance contracts maintenance, less the present value of insurance contributions (in case of lump sum - insurance premium), which the Group is due to receive after the settlement date. The reserves are either based on current assumptions or calculated using the assumptions established at the time the contract was issued, in which case a margin for risk and adverse deviation is generally included. |
Segment information | Segment information The Company used management approaches to identify its reportable segments, as required by ASC 280. The management approach is based on the way the Company's management organizes and evaluates its operations, and based on the way the Company's operations are managed and reported in its internal financial reporting system. The Company identified the following segments: 1. Central Asia and Eastern Europe 2. Europe, Excluding Eastern Europe 3. United States 4. Middle East/Caucasus The Company evaluated whether its segments met the quantitative thresholds to be reportable separately. The quantitative thresholds require that a segment's revenue is 10% or more of the combined revenue of all segments, or its absolute profit or loss is 10% or more of the greater of the combined absolute profit of all segments that have a positive profit or the combined absolute loss of all segments that have a loss. The Company's Central Asia and Eastern Europe and Europe Excluding Eastern Europe segments were identified under the quantitative thresholds. Under the management approach, the Company identified the United States and Middle East/Caucasus regions as its reportable segments as they are managed separately from other regions. Both regions are led by a separate management team that are responsible for its operations, and its performance is regularly reviewed by the CODM. The Company determined that the United States and Middle East/Caucasus regions met the qualitative threshold of being managed separately and did not need to rely on the quantitative thresholds. Factors Used in Determining Reportable Segments The Company considered several factors when determining its reportable segments. These factors include similarities and differences among its products, services, and geographical locations, economic factors, and internal reporting. The Company considered the similarities and differences among its products, services, and geographical locations to determine whether they should be aggregated or reported separately. Each region was determined to be sufficiently different from other regions and therefore should be reported separately. The Company also considered the economic factors that affect its operating segments, such as the regulatory environment, competitive landscape, and market conditions, to determine whether they should be reported separately. Reportable regions were determined to have unique economic factors that warranted separate reporting. |
Recent accounting pronouncements | Recent accounting pronouncements In June 2016 the FASB issued Accounting Standards Update No. 2016-13, "Financial Instruments-Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments", which introduced an expected credit loss methodology for the impairment of financial assets measured at amortized cost basis. That methodology replaces the probable, incurred loss model for those assets. In November 2019, the FASB issued ASU 2019-10 "Financial Instruments-Credit Losses (ASC 326). The Board developed a philosophy to extend and simplify how effective dates are staggered between larger public companies (bucket one) and all other entities (bucket two). Those other entities include private companies, smaller public companies, not-for-profit organizations, and employee benefit plans. Under this philosophy, a major update would first be effective for bucket-one entities, that is, public business entities that are SEC filers, excluding entities eligible to be smaller reporting companies (SRCs) under the SEC's definition. All other entities, including SRCs, other public business entities, and nonpublic business entities (private companies, not-for-profit organizations, and employee benefit plans) would compose bucket two. For those entities, the Board considered requiring an effective date staggered at least two years after bucket one for major updates. When ASU 2019-10 was issued, it provided SRCs with the option to defer the implementation of the standard. As the Company qualified as an SRC at the time of the standard's release, it chose not to adopt the update on January 1, 2020. Since then, the Company has grown and became a Larger Public Company as of March 31, 2022, and following ASU 2019-10, qualifies for bucket one. Accordingly, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022. The Company adopted ASC 326 starting from April 1, 2023 using the modified retrospective transition approach for its financial assets in scope. The results for reporting periods beginning on or after April 1, 2023 are presented under ASC 326, while prior periods amount continue to be reported in accordance with previously applicable GAAP. The following table illustrates the impact of ASC 326. March 31, 2023 ASC 326 Adoption Impact April 1, 2023 Allowance for credit losses for loans Mortgage loans $ 554 $ 2,216 $ 2,770 Car loans $ 759 $ 6,462 $ 7,221 Collateralized bank customer loans $ — $ 35 $ 35 Uncollateralized banks customer loans $ 233 $ 7,436 $ 7,669 Right of claim for purchased retail loans 1,246 9,046 10,292 Allowance for credit losses for other financial assets — 249 249 Total allowance for credit losses $ 2,792 $ 25,444 $ 28,236 Retained earnings Total allowance increase $ 25,444 Decrease to retained earnings, pre-tax $ 25,444 Tax effect $ — Forex effect $ (1) Decrease to retained earnings, net of tax effect $ 25,443 In November 2019, the FASB issued ASU 2019-10 "Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)". In August 2021 the FASB issued Accounting Standard Update No 2021-06 "Presentation of Financial Statements (Topic 205), Financial Services — Depository and Lending (Topic 942), and Financial Services — Investment Companies (Topic 946)" which amends various SEC paragraphs pursuant to the issuance of SEC Release No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses. SEC issued Final Rulemaking Release No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, which modified the disclosure and presentation requirements concerning acquisitions and disposals of businesses. Primarily, the new rules amended (1) Rule 1-02(w) of Regulation S-X, Definition of Terms Used in Regulation S-X, Significant Subsidiary, (2) Rule 3-05 of Regulation S-X, Financial Statements of Businesses Acquired or to Be Acquired, (3) Rule 8-05 of Regulation S-X, Pro Forma Financial Information (which covers smaller reporting companies), and (4) Article 11 of Regulation S-X, Pro Forma Financial Information. In addition, new Rule 6-11 of Regulation S-X, Financial Statements of Funds Acquired or to Be Acquired, covering acquisitions specific to investment companies, was added. Corresponding changes were made to other Regulation S-X rules, various Securities Act and Securities Exchange Act rules, and Forms 8-K and 10-K. Compliance with the amended rules is required from the beginning of a registrant's fiscal year commencing after December 31, 2020 (i.e., the mandatory compliance date). Acquisitions and dispositions that are probable or consummated after the mandatory compliance date are required to be evaluated for significance pursuant to the amended rules. Early compliance is permitted, provided that all the amended rules are applied in their entirety from the early compliance date. ASU No. 2021-06 amends SEC material in the Codification to give effect to Release No. 33-10786. The new rules apply to fiscal years ending on or after December 15, 2021 (i.e., calendar-year 2021). Early voluntary compliance is allowed. Note that the rescission of Industry Guide 3 is effective on January 1, 2023. ASU No. 2021-06 amends SEC material in the Codification to give effect to Release No. 33-10835. The Company does not expect the impact that ASU 2021-06 will have a significant impact on its consolidated financial statements and related disclosures. In October 2021, The SEC issued the amendment of Business Combinations (Topic 805), No. 2021-08, which related to Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The main amendments were concentrated in paragraphs 805-20-25-16 through 25-17 and add paragraph 805-20-25-28C and its related heading, with a link to transition paragraph 805-20-65-3, where the topic provides limited exceptions to the recognition and measurement principles applicable to business combinations. Moreover, the topic amends paragraphs 805-20-30-10 through 30-12 and add paragraphs 805-20-30-27 through 30-30 and their related heading, with a link to transition paragraph 805-20-65-3. Paragraph 805-20-25-16 notes that the Business Combinations Topic provides limited exceptions to the recognition and measurement principles applicable to business combinations. In the topic has been added paragraph 805-20-65-3, in which the following represents the transition and effective date information related to Accounting Standards Update No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. For public business entities, the pending content that links to this paragraph shall be effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2022. The Company does not expect that ASU 2021-08 will have an impact on the Company's consolidated financial statements and related disclosures. In March 2022 the FASB issued Accounting Standards Update No. 2022-01, "Derivatives and Hedging (Topic 815): Fair Value Hedging-Portfolio Layer Method", which introduces the amendments, which targeted on improvements to the optional hedge accounting model with the objective of improving hedge accounting to better portray the economic results of an entity's risk management activities in its financial statements. The amendments in this Update apply to the Company that elect to apply the portfolio layer method of hedge accounting in accordance with Table of Contents Topic 815. For a closed portfolio of prepayable financial assets or one or more beneficial interests secured by a portfolio of prepayable financial instruments, the last-of-layer method allows an entity to hedge a stated amount of the asset or assets in the closed portfolio that is anticipated to be outstanding for the designated hedge period. If the requirements for the last-of-layer method are met, prepayment risk is not incorporated into the measurement of the hedged item. Accordingly, ASU 2022-01 is effective for fiscal years beginning after December 15, 2022. The Company does not expect that ASU 2022-01 will have an impact on the Company's consolidated financial statements and related disclosures. In March 2022 the FASB issued Accounting Standards Update No. 2022-02, "Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures", which introduces the amendments on solving two issues of creditors related to troubled debt restructurings and gross write-offs of vintage debt disclosures. The amendments in Update 2016-13 require that an entity measure and record the lifetime expected credit losses on an asset that is within the scope of the Update upon origination or acquisition, and, as a result, credit losses from loans modified as troubled debt restructurings (TDRs) have been incorporated into the allowance for credit losses. Investors and preparers observed that the additional designation of a loan modification as a TDR and the related accounting are unnecessarily complex and no longer provide decision-useful information. Moreover, Investors and other financial statement users observed that disclosing gross writeoffs by year of origination provides important information that allows them to better understand changes in the credit quality of an entity's loan portfolio and underwriting performance. Accordingly, ASU 2022-02 is effective for fiscal years beginning after December 15, 2022. The Company adopted ASC 326 starting from April 1, 2023. In June 2022, FASB Issued Accounting Standard Updated No. 2022-03 “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”. The FASB has issued this standard to (1) clarify the guidance in Topic 820 – Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security, (2) to amend a related illustrative example, and (3) to introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The amendments in this update affects all entities that have investments in equity securities measured at fair value that are subject to a contractual sale restriction. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The Company is currently evaluating the impact that ASU 2022-03 will have on its consolidated financial statements and related disclosures. In December 2022, FASB Issued Accounting Standard Updated No. 2022-05 “Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI)”. The amendments in Update 2018-12 require that an insurance entity apply a retrospective transition method as of the beginning of the earliest period presented or the beginning of the prior fiscal year if early application is elected. It amends in this Update the LDTI transition guidance to allow an insurance entity to make an accounting policy election on a transaction-by-transaction basis. The Board is issuing this Update to reduce implementation costs and complexity associated with the adoption of LDTI for contracts that have been derecognized in accordance with the amendments in this Update before the LDTI effective date. Without the amendments an insurance entity would be required to reclassify a portion of the previously recognized gains or losses to the LDTI transition adjustment because of the adoption of a new accounting standard. This Update affects insurance entities that have derecognized contracts before the LDTI effective date. For public business entities that meet the definition of a U.S. Securities and Exchange Commission (SEC) filer and are not smaller reporting companies, LDTI is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early application is permitted. The Company does not expect that ASU 2022-05 have an impact on the Company's consolidated financial statements and related disclosures. In December 2022, the FASB issued Accounting Standards Update No. 2022-06 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”, which provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The objective of the guidance in Topic 848 is to provide temporary relief during the transition period. The Board included a sunset provision within Topic 848 based on expectations of when the London Interbank Offered Rate (LIBOR) would cease being published. At the time that Update 2020-04 was issued, the UK Financial Conduct Authority (FCA) had established its intent that it would no longer be necessary to persuade, or compel, banks to submit to LIBOR after December 31, 2021. As a result, the sunset provision was set for December 31, 2022—12 months after the expected cessation date of all currencies and tenors of LIBOR. The amendments in this Update apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this Update are effective for all entities upon issuance of this Update. The Company has evaluated that the Update No. 2022-06 did not have an impact on its consolidated financial statements and related disclosures. In March 2023, FASB Issued Accounting Standard Updated No. 2023-01 “Lease (Topic 842)”. Topic 842 requires that entities determine whether a related party arrangement between entities under common control (hereinafter referred to as a common control arrangement) is a lease. If the arrangement is determined to be a lease, an entity must classify and account for the lease on the same basis as an arrangement with an unrelated party (on the basis of legally enforceable terms and conditions).That represents a change from the requirements of Topic 840, Leases, which required that an entity classify and account for an arrangement on the basis of economic substance when those terms and conditions were affected by the related party nature of the arrangement. The amendments in this Update affect all lessees that are a party to a lease between entities under common control in which there are leasehold improvements. The amendments apply to all entities (that is, public business entities, private companies, not-for-profit entities, and employee benefit plans). The amendments in this Update for both Issue 1 and Issue 2 are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for all entities in any interim period. If an entity adopts the amendments in an interim period, it shall adopt them as of the beginning of the fiscal year that includes that interim period. The Company considers that ASU No. 2023-01 did not have an impact on its consolidated financial statements and related disclosures. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
VIE, consolidated statements | The carrying amounts of Freedom UA’s consolidated assets and liabilities were as follows as of March 31, 2023: March 31, 2023 Cash and cash equivalents 26 Restricted cash 1,936 Trading securities 4,010 Margin lending, brokerage and other receivables, net 1,616 Fixed assets, net 782 Intangible assets, net 131 Right-of-use asset 135 Other assets 56 Total assets 8,692 Customer liabilities 5,837 Securities repurchase agreement obligations 12 Trade payables 25 Lease liability 159 Other liabilities 298 Total liabilities 6,331 |
Schedule of changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill for the three months ended June 30, 2023 and the year ended March 31, 2023, were as follows: Central Asia and Eastern Europe Europe, excluding Eastern Europe US Middle East/ Caucasus Total Goodwill, gross Balance as of March 31, 2022 $ 5,104 $ — $ 1,626 $ — $ 6,730 Forex 34 — — — 34 Balance as of June 30, 2022 5,138 — 1,626 — 6,764 Balance as of March 31, 2023 $ 6,792 $ — $ 7,400 $ — $ 14,192 Forex (1) — — — (1) Acquired 36,760 — — — 36,760 Balance as of June 30, 2023 43,551 — 7,400 — 50,951 Accumulated impairment Balance as of March 31, 2022 $ 832 $ — $ — $ — $ 832 Impairment expense — — — — — Balance as of June 30, 2022 832 — — — 832 Balance as of March 31, 2023 $ — $ — $ — $ — $ — Impairment expense — — — — — Balance as of June 30, 2023 — — — — — Goodwill, net of impairment Balance as of June 30, 2022 $ 4,306 $ — $ 1,626 $ — $ 5,932 Balance as of March 31, 2023 $ 6,792 $ — $ 7,400 $ — $ 14,192 Balance as of June 30, 2023 $ 43,551 $ — $ 7,400 $ — $ 50,951 |
Revision of prior period statements | The following table illustrates the impact of ASC 326. March 31, 2023 ASC 326 Adoption Impact April 1, 2023 Allowance for credit losses for loans Mortgage loans $ 554 $ 2,216 $ 2,770 Car loans $ 759 $ 6,462 $ 7,221 Collateralized bank customer loans $ — $ 35 $ 35 Uncollateralized banks customer loans $ 233 $ 7,436 $ 7,669 Right of claim for purchased retail loans 1,246 9,046 10,292 Allowance for credit losses for other financial assets — 249 249 Total allowance for credit losses $ 2,792 $ 25,444 $ 28,236 Retained earnings Total allowance increase $ 25,444 Decrease to retained earnings, pre-tax $ 25,444 Tax effect $ — Forex effect $ (1) Decrease to retained earnings, net of tax effect $ 25,443 |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash and cash equivalents | As of June 30, 2023, and March 31, 2023, cash and cash equivalents consisted of the following: June 30, 2023 March 31, 2023 Short term deposits in National Bank (Kazakhstan) $ 275,196 $ 357,454 Short term deposits in commercial banks 128,465 83,755 Securities purchased under reverse repurchase agreements 97,426 29,812 Petty cash in bank vault and on hand 37,430 35,998 Overnight deposits 22,853 1,926 Short term deposits in stock exchanges 21,695 31,691 Short term deposits on brokerage accounts 11,431 37,417 Cash in transit 3,030 3,364 Bank deposits 104 — Allowance for Cash and cash equivalents $ (266) $ — Total cash and cash equivalents $ 597,364 $ 581,417 |
Schedule of repurchase agreements | As of June 30, 2023, and March 31, 2023, the cash and cash equivalents balance included short-term collateralized securities received under reverse repurchase agreements on the terms presented below: June 30, 2023 Interest rates and remaining contractual maturity of the agreements Average interest rate Up to 30 days 30-90 days Total Securities purchased under reverse repurchase agreements Non-US sovereign debt 15.90 % $ 46,085 $ — $ 46,085 US sovereign debt 1.74 % 31,278 86 31,364 Corporate equity 17.82 % 17,796 — 17,796 Corporate debt 2.05 % 2,181 — 2,181 Total $ 97,340 $ 86 $ 97,426 March 31, 2023 Interest rates and remaining contractual maturity of the agreements Average interest rate Up to 30 days 30-90 days Total Securities purchased under reverse repurchase agreements US sovereign debt 2.06 % $ 17,102 $ — $ 17,102 Corporate equity 17.17 % 6,963 — 6,963 Non-US sovereign debt 6.12 % 3,483 — 3,483 Corporate debt 2.52 % 2,079 185 2,264 Total $ 29,627 $ 185 $ 29,812 |
RESTRICTED CASH (Tables)
RESTRICTED CASH (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Restricted Cash [Abstract] | |
Schedule of restrictions on cash | Restricted cash for the periods ended June 30, 2023, and March 31, 2023, consisted of: June 30, 2023 March 31, 2023 Brokerage customers’ cash $ 412,830 $ 328,435 Restricted bank accounts 8,532 10,436 Guaranty deposits 91,024 116,628 Deferred distribution payment 23 23 Allowance for restricted cash (10,522) (9,994) Total restricted cash $ 501,887 $ 445,528 |
TRADING AND AVAILABLE-FOR-SAL_2
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Debt Securities, Trading, and Equity Securities, FV-NI [Abstract] | |
Schedule of trading and available-for-sale securities | As of June 30, 2023, and March 31, 2023, trading and available-for-sale securities consisted of: June 30, 2023 March 31, 2023 Non-U.S. sovereign debt $ 2,017,384 1,029,857 Corporate debt 1,219,252 1,269,879 Corporate equity 87,821 65,741 U.S. sovereign debt 42,437 45,022 Exchange traded notes 2,172 2,057 Total trading securities $ 3,369,066 $ 2,412,556 June 30, 2023 March 31, 2023 Corporate debt $ 165,662 $ 191,082 Non-U.S. sovereign debt 48,025 40,162 U.S. sovereign debt 7,758 7,809 Total available-for-sale securities, at fair value $ 221,445 $ 239,053 |
Schedule of maturity of available for sale securities | The following tables present maturity analysis for available-for-sale securities as of June 30, 2023, and March 31, 2023: June 30, 2023 Remaining contractual maturity of the agreements Up to 1 year 1-5 years 5-10 years More than 10 years Total Corporate debt 34,526 77,543 53,583 10 165,662 Non-US sovereign debt — 36,502 5,351 6,172 48,025 US sovereign debt 1,964 2,804 1,700 1,290 7,758 Total available-for-sale securities, at fair value $ 36,490 $ 116,849 $ 60,634 $ 7,472 $ 221,445 March 31, 2023 Remaining contractual maturity of the agreements Up to 1 year 1-5 years 5-10 years More than 10 years Total Corporate debt 77,006 82,579 31,486 11 191,082 Non-US sovereign debt — 33,143 820 6,199 40,162 US sovereign debt 1,947 2,805 1,725 1,332 7,809 Total available-for-sale securities, at fair value $ 78,953 $ 118,527 $ 34,031 $ 7,542 $ 239,053 |
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, 2023, and March 31, 2023: Weighted Average Total Fair Value Measurements as of June 30, 2023 using Quoted Prices in Significant Significant Unobservable (Level 1) (Level 2) (Level 3) Non-U.S. sovereign debt 12.71 % $ 2,017,384 $ 1,951,883 $ 65,466 $ 35 Corporate debt 16.05 % 1,219,252 922,010 296,914 328 Corporate equity — % 87,821 65,058 2,421 20,342 U.S. sovereign debt 4.84 % 42,437 42,437 — — Exchange traded notes — % 2,172 878 1,294 — Total trading securities $ 3,369,066 $ 2,982,266 $ 366,095 $ 20,705 Corporate debt 17.52 % $ 165,662 $ 93,274 $ 72,388 $ — Non-US sovereign debt 13.87 % 48,025 41,023 7,002 — US sovereign debt 4.84 % 7,758 7,758 — — Total available-for-sale securities, at fair value $ 221,445 $ 142,055 $ 79,390 $ — Weighted Average Interest Rate Total Fair Value Measurements as of March 31, 2023 using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Units (Level 1) (Level 2) (Level 3) Corporate debt 15.62 % $ 1,269,879 $ 1,106,584 $ 162,895 $ 400 Non-U.S. sovereign debt 12.04 % 1,029,857 971,762 54,319 3,776 Corporate equity — 65,741 62,971 1,808 962 U.S. sovereign debt 4.22 % 45,022 45,022 — — Exchange traded notes — 2,057 447 1,610 — Total trading securities $ 2,412,556 $ 2,186,786 $ 220,632 $ 5,138 Corporate debt 15.78 % $ 191,082 $ 129,504 $ 61,578 $ — Non-U.S. sovereign debt 13.64 % 40,162 39,624 538 — U.S. sovereign debt 4.24 % 7,809 7,809 — — Total available-for-sale securities, at fair value $ 239,053 $ 176,937 $ 62,116 $ — |
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, 2023, and March 31, 2023. 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, 2023 Significant Unobservable Inputs % Non-US sovereign debt DCF $ 35 Discount rate 48.8% Estimated number of years 11 years Corporate debt DCF 328 Discount rate 74.0% Estimated number of years 3 months Corporate equity DCF 20,000 Discount rate 13.0% Estimated number of years 4 years, 6 months Corporate equity DCF 342 Discount rate 58.8% Estimated number of years 9 years Total $ 20,705 Type Valuation Technique FV as of March 31, 2023 Significant Unobservable Inputs % Non-US sovereign debt DCF $ 3,776 Discount rate 48.8% Estimated number of years 11 years Corporate debt DCF 400 Discount rate 74.0% Estimated number of years 3 months Corporate equity DCF 962 Discount rate 58.8% Estimated number of years 9 years Total $ 5,138 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, 2023, and the year ended March 31, 2023: Trading securities Balance as of March 31, 2023 $ 5,138 Purchase of investments that use Level 3 inputs 20,000 Deconsolidation of Freedom UA securities (3,928) Revaluation of investments that use Level 3 inputs 24 Reclassification to investment in associate $ (529) Balance as of June 30, 2023 $ 20,705 Balance as of March 31, 2022 $ 9,142 Reclassification to level 2 (1,339) Sale of investments that use Level 3 inputs (5,213) Purchase of investments that use Level 3 inputs 2,604 Revaluation of investments that use Level 3 inputs (56) Balance as of March 31, 2023 $ 5,138 |
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, 2023, and March 31, 2023: June 30, 2023 Assets measured at amortized cost Recognized impairment loss in Income Statement Unrealized loss accumulated in other comprehensive loss Assets Maturity Date Corporate debt $ 166,265 $ (61) $ (542) $ 165,662 2023-2035 Non-US sovereign debt 49,979 (248) (1,706) 48,025 2024-indefinite U.S. sovereign debt 8,451 — (693) 7,758 2023-2044 Total available-for-sale securities, at fair value $ 224,695 $ (309) (2,941) $ 221,445 March 31, 2023 Assets measured at amortized cost Recognized impairment loss in Income Statement Unrealized loss accumulated in other comprehensive Assets Maturity Date Corporate debt $ 192,167 $ (402) $ (683) $ 191,082 2023-2035 Non-U.S. sovereign debt 42,456 — $ (2,294) 40,162 2024-indefinite U.S. sovereign debt 8,391 — $ (582) 7,809 2023-2044 Total available-for-sale securities, at fair value $ 243,014 $ (402) $ (3,559) $ 239,053 |
MARGIN LENDING, BROKERAGE AND_2
MARGIN LENDING, BROKERAGE AND OTHER RECEIVABLES, NET (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Schedule of brokerage and other receivables | Margin lending, brokerage and other receivables as of June 30, 2023, and March 31, 2023, consisted of: June 30, 2023 March 31, 2023 Margin lending receivables $ 496,317 $ 361,684 Receivables from brokerage clients 8,734 7,302 Bank commissions receivable 7,986 6,035 Long-term installments receivables 1,132 895 Receivable for underwriting and market-making services 1,088 2,317 Receivable from sale of securities 510 613 Dividends accrued 313 486 Other receivables 17,019 9,504 Allowance for receivables (12,509) (12,507) Total margin lending, brokerage and other receivables, net $ 520,590 $ 376,329 |
LOAN ISSUED (Tables)
LOAN ISSUED (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of loans issued | Loans issued as of June 30, 2023, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Collateral Loan Currency Mortgage loans 583,066 July, 2023 - June, 2048 9.00% 577,196 KZT Car loans 171,772 August, 2023 - June, 2030 25.00% 171,732 KZT Uncollateralized bank customer loans 149,800 July, 2023 - June 2043 24.00% — KZT Right of claim for purchased retail loans 142,336 July, 2023 - June 2027 19.00% 142,336 KZT Collateralized bank customer loans 31,114 July, 2023 - June 2028 14.00% 29,039 KZT/RUB Convertible loan 10,550 October, 2023 —% 10,550 USD Subordinated loan 5,075 December, 2025 3.00% — USD Loans issued to policyholders 1,445 November, 2023 - June, 2024 15.00% 1,562 KZT Other 4,694 July, 2023 - March, 2048/December, 2023 2.00%/16.00% — EUR/KZT Allowance for loans issued (41,704) Total loans issued $ 1,058,148 Loans issued as of March 31, 2023, consisted of the following: Amount Outstanding Due Dates Average Interest Rate Fair Value of Collateral Loan Currency Mortgage loans 534,154 April, 2023 - March, 2048 9.00 % 534,154 KZT Right of claims for purchased retail loans 121,177 January, 2023 - March, 2027 15.00 % 121,177 KZT Car loans 102,269 April, 2023- April, 2030 25.00 % 102,247 KZT Uncollateralized bank customer loans 46,970 January, 2023 - March, 2043 25.00 % — KZT Collateralized bank customer loans 17,653 May, 2023 - March, 2028 2.00 % 17,636 KZT/RUB Subordinated loan 5,039 December, 2025 3.00 % — USD Loans to policyholders 1,488 June, 2023 - February, 2024 15.00 % 1,752 KZT Other 300 March, 2024-September, 2029 2.00 % — EUR Allowance for loans issued (2,792) Total loans issued $ 826,258 The table below presents the Group's loan portfolio by credit quality classification and origination year as of June 30, 2023. Current vintage disclosure is the requirement due to first adoption of ASC 326. Term Loans by Origination Year 2023 2022 2021 2020 2019 Prior Revolving loans Total Mortgage loans 92,435 476,173 14,458 — — — — 583,066 that are not credit impaired 92,400 474,129 14,236 — — — — 580,765 with significant increase in credit risk — 1,888 193 — — — — 2,081 that are credit impaired 35 156 29 — — — — 220 Car loans 142,602 29,170 — — — — — 171,772 that are not credit impaired 139,182 27,851 — — — — — 167,033 with significant increase in credit risk 2,555 595 — — — — — 3,150 that are credit impaired 865 724 — — — — — 1,589 Uncollateralized bank customer loans 149,518 251 29 1 — 1 — 149,800 that are not credit impaired 149,018 144 29 1 — 1 — 149,193 with significant increase in credit risk 406 26 — — — — — 432 that are credit impaired 94 81 — — — — — 175 Right of claim for purchased retail loans 103,768 36,339 2,229 — — — — 142,336 that are not credit impaired 103,768 36,339 2,229 — — — — 142,336 with significant increase in credit risk — — — — — — — — that are credit impaired — — — — — — — — Collateralized bank customer loans 21,391 9,723 — — — — — 31,114 that are not credit impaired 21,391 9,723 — — — — — 31,114 with significant increase in credit risk — — — — — — — — that are credit impaired — — — — — — — — Convertible loan 10,550 — — — — — — 10,550 that are not credit impaired 10,550 — — — — — — 10,550 with significant increase in credit risk — — — — — — — — that are credit impaired — — — — — — — — Subordinated loan — 5,075 — — — — — 5,075 that are not credit impaired — 5,075 — — — — — 5,075 with significant increase in credit risk — — — — — — — — that are credit impaired — — — — — — — — Loans issued to policyholders 1,445 — — — — — — 1,445 that are not credit impaired 1,445 — — — — — — 1,445 with significant increase in credit risk — — — — — — — — that are credit impaired — — — — — — — — Other 1,551 128 — — 3,015 — — 4,694 that are not credit impaired 1,551 128 — — — — — 1,679 with significant increase in credit risk — — — — — — — — that are credit impaired — — — — 3,015 — — 3,015 Total 523,260 556,859 16,716 1 3,015 1 — 1,099,852 The table below presents the Group's loan portfolio by credit quality classification as of March 31, 2023. March 31, 2023 That are not credit impaired With significant increase in credit risk That are credit impaired Total Mortgage loans 532,621 1,505 28 534,154 Collateralized bank customer loans 121,055 122 — 121,177 Right of claim for purchased retail loans 101,244 993 32 102,269 Uncollateralized bank customer loans 46,882 81 7 46,970 Car loans 17,653 — — 17,653 Subordinated loan 5,039 — — 5,039 Loans issued to policyholders 1,488 — — 1,488 Other 300 — — 300 Total loans 826,282 2,701 67 829,050 Aging analysis of past due loans as of June 30, 2023 and March 31, 2023, is as follows: June 30, 2023 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 1,579 502 220 580,765 583,066 Car loans 1,867 1,283 1,589 167,033 171,772 Uncollateralized bank customer loans 321 111 175 149,193 149,800 Right of claim for purchased retail loans 57 — 2 142,277 142,336 Collateralized bank customer loans — — — 31,114 31,114 Convertible loan — — — 10,550 10,550 Subordinated loan — — — 5,075 5,075 Loans issued to policyholders — — — 1,445 1,445 Other — — 3,015 1,679 4,694 Total 3,824 1,896 5,001 1,089,131 1,099,852 March 31, 2023 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 1,265 240 28 532,621 534,154 Collateralized bank customer loans 123 — — 121,054 121,177 Right of claim for purchased retail loans 754 239 32 101,244 102,269 Uncollateralized bank customer loans 73 8 7 46,882 46,970 Car loans — — — 17,653 17,653 Subordinated loan — — — 5,039 5,039 Loans issued to policyholders — — — 1,488 1,488 Other — — — 300 300 Total 2,215 487 67 826,281 829,050 The activity in the allowance for credit losses as of June 30, 2023 and June 30, 2022 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, 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) 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 April 1, 2022 — — — — — — — Charges (570) (22) (9) (24) (3,712) — (4,337) Recoveries 568 22 9 25 3,798 — 4,422 Forex 2 — — (1) (86) — (85) June 30, 2022 — — — — — — — |
SECURITIES REPURCHASE AGREEME_2
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Securities Sold under Agreements to Repurchase [Abstract] | |
Schedule of securities under repurchase agreement obligations | As of June 30, 2023, and March 31, 2023, trading securities included collateralized securities subject to repurchase agreements as described in the following table: June 30, 2023 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 16.67 % $ 1,701,585 $ 111,073 $ 1,812,658 Corporate debt 16.50 % 735,482 6,743 742,225 US sovereign debt 1.43 % 17,094 — 17,094 Corporate equity 17.00 % 5 — 5 Total securities sold under repurchase agreements $ 2,454,166 $ 117,816 $ 2,571,982 March 31, 2023 Interest rate and remaining contractual maturity of the agreements Average interest rate Up to 30 days 30-90 days Total Non-US sovereign debt 15.98 % $ 826,196 $ 55,265 $ 881,461 Corporate debt 16.07 % 597,559 5,375 602,934 US sovereign debt 1.52 % 17,637 — 17,637 Corporate equity 12.24 % 15,384 — 15,384 Total securities sold under repurchase agreements $ 1,456,776 $ 60,640 $ 1,517,416 |
CUSTOMER LIABILITIES (Tables)
CUSTOMER LIABILITIES (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
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, 2023, and March 31, 2023 , customer liabilities consisted of: June 30, 2023 March 31, 2023 Amount Interest Amount Interest Interest bearing deposits: Term deposits 984,845 0.3% - 12% 832,751 0.1% - 16.9% Total Interest bearing deposits $ 984,845 $ 832,751 Non-interest-bearing deposits: Current customer accounts $ 485,007 $ 458,954 Brokerage customers $ 652,195 $ 633,542 Total non-interest-bearing accounts $ 1,137,202 $ 1,092,496 Total customer liabilities 2,122,047 1,925,247 |
MARGIN LENDING AND TRADE PAYA_2
MARGIN LENDING AND TRADE PAYABLES (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Accounts Payable [Abstract] | |
Schedule of trade payables | As of June 30, 2023, and March 31, 2023 , margin lending and trade payables of the Group were comprised of the following: June 30, 2023 March 31, 2023 Margin lending payable $ 170,716 $ 117,144 Payables to suppliers of goods and services 7,490 2,965 Trade payable for securities purchased 1,666 482 Other 2,755 2,309 Total margin lending and trade payables $ 182,627 $ 122,900 |
DEBT SECURITIES ISSUED (Tables)
DEBT SECURITIES ISSUED (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Debt Securities [Abstract] | |
Schedule of outstanding debt securities of the company | As of June 30, 2023, and March 31, 2023, outstanding debt securities issued by the Group included the following: Debt securities issued by: June 30, 2023 March 31, 2023 Freedom SPC $ 64,354 $ 58,582 Accrued interest 687 1,443 Total debt securities issued $ 65,041 $ 60,025 |
INSURANCE CONTRACTS ASSETS AN_2
INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Insurance and reinsurance receivables | As of June 30, 2023, and March 31, 2023, insurance and reinsurance receivables of the Group was comprised of the following: June 30, 2023 March 31, 2023 Assets: Amounts due from policyholders $ 7,448 $ 9,699 Claims receivable from reinsurance 1,285 1,087 Amounts due from reinsured 333 555 Allowance for estimated uncollectible reinsurance (1,502) (1,325) Insurance and reinsurance receivables: 7,564 10,016 Unearned premium reserve, reinsurers’ share 3,005 2,379 Reserves for claims and claims’ adjustment expenses, reinsurers’ share 1,640 1,390 Total $ 12,209 $ 13,785 |
Insurance and reinsurance payables | As of June 30, 2023, and March 31, 2023, insurance and reinsurance payable of the Group was comprised of the following: June 30, 2023 March 31, 2023 Liabilities: Amounts payable to agents and brokers 2,494 2,466 Amounts payable to insured 2,692 1,807 Amounts payable to reinsurers 1,282 2,002 Insurance and reinsurance payables: 6,468 6,275 Unearned premium reserve 49,194 43,082 Reserves for claims and claims’ adjustment expenses 142,485 133,145 Total $ 198,147 $ 182,502 |
FEE AND COMMISSION INCOME (Tabl
FEE AND COMMISSION INCOME (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disclosure of fee and commission income | During the three months ended June 30, 2023, and June 30, 2022, fee and commission income was comprised of: Three months ended June 30, 2023 Central Asia and Eastern Europe Europe excluding Eastern Europe The Unites States Middle East/Caucasus Total Brokerage services $ 35,018 $ 18,951 $ 1,113 $ — $ 55,082 Commission income from payment processing 18,042 — — — 18,042 Bank services 12,841 — — — 12,841 Underwriting and market-making services 4,698 — 4,133 — 8,831 Other fee and commission income 2,786 215 906 — 3,907 Total fee and commission income $ 73,385 $ 19,166 $ 6,152 $ — $ 98,703 Three months ended June 30, 2022 Central Asia and Eastern Europe Europe excluding Eastern Europe The Unites States Middle East/Caucasus Total Brokerage service $ 2,661 $ 79,805 $ 1,134 $ — $ 83,600 Bank services 3,814 — — — 3,814 Underwriting and market-making services 1,644 — — — 1,644 Other fee and commission income 131 257 — — 388 Total fee and commission income $ 8,250 $ 80,062 $ 1,134 $ — $ 89,446 |
NET GAIN ON TRADING SECURITIES
NET GAIN ON TRADING SECURITIES (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of net gain on trading securities | During the three months ended June 30, 2023, and June 30, 2022, net gain on trading securities was comprised of: Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Net unrealized gain/(loss) recognized during the reporting period on trading securities still held at the reporting date $ 20,951 $ (11,730) Net gain recognized during the period on trading securities sold during the period 10,865 16,163 Net gain recognized during the period on trading securities $ 31,816 $ 4,433 |
NET INTEREST INCOME_EXPENSE (Ta
NET INTEREST INCOME/EXPENSE (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Interest Income and Interest Expense Disclosure | Net interest income/expense for the three months ended June 30, 2023, and June 30, 2022 includes: Three months ended June 30, 2023 Three months ended June 30, 2022 Interest income: Interest income on trading securities 86,840 31,515 Interest income on loans to customers 31,333 4,627 Interest income on margin loans to customers 17,180 4,914 Interest income on securities available-for-sale 8,345 6,678 Interest income on reverse repurchase agreements and amounts due from banks 3,057 787 Interest income from dividends 2,594 42 Total interest income $ 149,349 $ 48,563 Interest expense: Interest expense on securities repurchase agreement obligations $ 75,455 $ 33,180 Interest expense on customer accounts and deposits 15,603 6,063 Interest expense on margin lending payable 2,993 — Interest expense on debt securities issued 935 767 Interest expense on loans received 27 61 Other interest expense 33 — Total interest expense $ 95,046 $ 40,071 Net interest income $ 54,303 $ 8,492 |
NET (LOSS)_GAIN ON DERIVATIVES
NET (LOSS)/GAIN ON DERIVATIVES (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments, Gain (Loss) | Three months ended June 30, 2023 Three months ended June 30, 2022 Net realized (loss)/gain on derivatives (27,493) 1,266 Net unrealized (loss)/gain on derivatives (3,112) — Total net (loss)/gain on derivatives $ (30,605) $ 1,266 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
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 restricted shares awarded as of grant date, using the Monte Carlo valuation model based on the following key assumptions: Term (years) 2.83 Volatility 35.1 % Risk-free rate 4.18 % |
Schedule of the activity of the company's restricted stock outstanding | The table below summarizes the activity for the Company’s restricted stock outstanding during the three months ended June 30, 2023: Shares Weighted Outstanding, at March 31, 2023 467,058 18,035 Granted — — Vested (134,558) (5,138) Forfeited/cancelled/expired — — Outstanding, at June 30, 2023 332,500 12,897 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Disclosure Of Lease Related Assets And Liabilities | The table below presents the lease related assets and liabilities recorded on the Company's consolidated balance sheets as of June 30, 2023: Classification on Balance Sheet June 30, 2023 Assets Operating lease assets Right-of-use assets $ 34,461 Total lease assets $ 34,461 Liabilities Operating lease liability Operating lease obligations $ 34,929 Total lease liability $ 34,929 |
Disclosure of lease maturities | The following table presents as of June 30, 2023, the annual maturities of the lease liabilities: Leases maturing during twelve months ended March 31, 2024 $ 8,915 2025 10,040 2026 9,249 2027 7,567 2028 5,492 Thereafter 4,793 Total payments 46,056 Less: amounts representing interest (11,127) Lease liability, net $ 34,929 Weighted average remaining lease term (in months) 31 Weighted average discount rate 13 % |
ACQUISITIONS AND DISPOSAL OF SU
ACQUISITIONS AND DISPOSAL OF SUBSIDIARIES (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The total purchase price was allocated as follows: As of April 26, 2023 ASSETS Cash and cash equivalents $ 448 Restricted cash 105 Brokerage and other receivables 1,313 Loans issued 1,078 Fixed assets 63 Intangible assets 8,779 Other assets 1,221 TOTAL ASSETS 13,007 LIABILITIES Trade payables 1,606 Current tax liabilities 14 Other liabilities 1,864 TOTAL LIABILITIES 3,484 Net assets acquired 9,523 Goodwill 21,231 Total purchase price $ 30,754 As of April 26, 2023 ASSETS Cash and cash equivalents $ 523 Brokerage and other receivables 838 Loans issued 62 Fixed assets 89 Intangible assets 959 Other assets 591 TOTAL ASSETS 3,062 LIABILITIES Trade payables 644 Other liabilities 1,059 TOTAL LIABILITIES 1,703 Net assets acquired 1,359 Goodwill 568 Total purchase price $ 1,927 As of May 22, 2023 ASSETS Cash and cash equivalents $ 731 Brokerage and other receivables 591 Fixed assets 2,383 Intangible assets 15,154 Loans issued 157 Right-of-use asset 1,097 Other assets 5,002 TOTAL ASSETS 25,115 LIABILITIES Trade payables 2,559 Current tax liabilities 11 Lease liability 1,186 Other liabilities 9,674 TOTAL LIABILITIES 13,430 Net assets acquired 11,685 Goodwill 14,961 Purchase price $ 13,281 Revaluation of purchase price previously held interest $ 1,040 Fair value of NCI $ 12,325 Total purchase price $ 26,646 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments | Total lending related commitments outstanding as of June 30, 2023, and March 31, 2023, were as follows: As of June 30, 2023 As of March 31, 2023 Unfunded commitments under lines of credits and guarantees $ 51,712 $ 20,617 Bank guarantees 7,413 7,001 Total $ 59,125 $ 27,618 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | The following tables summarize the Company's Statement of Operations by its geographic segments. There are no revenues from transactions between the segments and intercompany balances have been eliminated for separate disclosure: Three months ended June 30, 2023 STATEMENTS OF OPERATIONS Central Asia and Eastern Europe Europe, excluding Eastern Europe The United States Middle East/Caucasus Total Fee and commission income (1) $ 73,385 $ 19,166 $ 6,152 $ — $ 98,703 Net gain/(loss) on trading securities 31,594 214 (173) 181 31,816 Interest income 142,038 5,914 1,387 10 149,349 Insurance underwriting income 44,889 — — — 44,889 Net gain/(loss) on foreign exchange operations 19,923 (320) (362) 60 19,301 Net (loss)/gain on derivative (30,778) 173 — — (30,605) Other income/(expense) 1,732 217 838 (30) 2,757 TOTAL REVENUE, NET 282,783 25,364 7,842 221 316,210 Fee and commission expense 23,798 4,572 265 49 28,684 Interest expense 86,664 6,812 1,570 — 95,046 Insurance claims incurred, net of reinsurance 21,514 — — — 21,514 Payroll and bonuses 24,167 4,754 2,293 416 31,630 Professional services 562 2,738 3,280 45 6,625 Stock compensation expense 829 91 313 — 1,233 Advertising expense 3,731 4,026 95 248 8,100 General and administrative expense 16,028 4,029 4,113 305 24,475 Allowance for credit losses 13,771 552 3 — 14,326 TOTAL EXPENSE 191,064 27,574 11,932 1,063 231,633 INCOME BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 91,719 $ (2,210) $ (4,090) $ (842) $ 84,577 Income tax expense (27) (2,430) (14,199) — (16,656) INCOME FROM CONTINUING OPERATIONS $ 91,692 $ (4,640) $ (18,289) $ (842) $ 67,921 Three months ended June 30, 2022 STATEMENTS OF OPERATIONS Central Asia and Eastern Europe Europe, excluding Eastern Europe The United States Middle East/Caucasus Total Fee and commission income (1) $ 8,250 $ 80,062 $ 1,134 $ — $ 89,446 Net gain/(loss) on trading securities 21,589 (15,425) (1,731) — 4,433 Interest income 39,852 4,269 4,442 — 48,563 Insurance underwriting income 24,241 — — — 24,241 Net gain/(loss) on foreign exchange operations 4,267 570 (234) (10) 4,593 Net gain on derivative 1,266 — — — 1,266 Other (expense)/income (93) (2) 6 57 (32) TOTAL REVENUE, NET 99,372 69,474 3,617 47 172,510 Fee and commission expense 10,714 12,427 153 21 23,315 Interest expense 31,968 2,696 5,407 — 40,071 Insurance claims incurred, net of reinsurance 16,692 — — — 16,692 Payroll and bonuses 11,730 2,732 1,745 206 16,413 Professional services 721 1,272 2,206 56 4,255 Stock compensation expense 1,101 156 619 — 1,876 Advertising expense 2,149 1,681 7 — 3,837 General and administrative expense 5,066 5,724 690 138 11,618 Allowance for credit losses/(recoveries) 2,431 — (3) — 2,428 TOTAL EXPENSE 82,572 26,688 10,824 421 120,505 INCOME BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 16,800 $ 42,786 $ (7,207) $ (374) $ 52,005 Income tax (expense)/benefit (61) (7,223) (1,605) 10 (8,879) INCOME FROM CONTINUING OPERATIONS $ 16,739 $ 35,563 $ (8,812) $ (364) $ 43,126 (1) All trading of U.S. and European exchange traded and OTC securities by all Freedom securities brokerage firms, excluding PrimeEx, are routed to and executed through Freedom EU and all fee and commission income for those transactions is recognized at subsidiary received the initial order from external client. The following tables summarize the Company's total assets and total liabilities by its geographic segments. Intercompany balances have been eliminated for separate disclosure: June 30, 2023 Central Asia and Eastern Europe Europe, excluding Eastern Europe The United States Middle East/Caucasus Total Total assets $ 5,674,747 $ 785,218 $ 75,453 $ 4,347 $ 6,539,765 Total liabilities 5,202,661 480,761 24,372 6,235 5,714,029 Net assets $ 472,086 $ 304,457 $ 51,081 $ (1,888) $ 825,736 March 31, 2023 Central Asia and Eastern Europe Europe, excluding Eastern Europe The United States Middle East/Caucasus Total Total assets $ 4,303,126 $ 677,425 $ 101,365 $ 2,642 $ 5,084,558 Total liabilities 3,868,326 384,921 60,198 377 4,313,822 Net assets $ 434,800 $ 292,504 $ 41,167 $ 2,265 $ 770,736 |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details) | 3 Months Ended |
Jun. 30, 2023 subsidiary | |
Related Party Transaction [Line Items] | |
Period of brokerage license suspension | 5 years |
Paybox Technologies LLP | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 5 |
Arbuz Group LLP | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 2 |
LLC Freedom Finance Ukraine | |
Related Party Transaction [Line Items] | |
Ownership percentage, non-controlling interest | 9% |
Ownership percentage, controlling interest | 91% |
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 - Schedule of VIE’s consolidated assets and liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Variable Interest Entity [Line Items] | ||
Trading securities | $ 3,369,066 | $ 2,412,556 |
Margin lending, brokerage and other receivables, net | 520,590 | 376,329 |
Fixed assets, net | 63,852 | 54,017 |
Intangible assets, net | 42,257 | 17,615 |
TOTAL ASSETS | 6,539,765 | 5,084,558 |
Total customer liabilities | 2,122,047 | 1,925,247 |
Securities repurchase agreement obligations | 2,571,982 | 1,517,416 |
TOTAL LIABILITIES | $ 5,714,029 | 4,313,822 |
Variable interest entity, primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | 26 | |
Restricted cash | 1,936 | |
Trading securities | 4,010 | |
Margin lending, brokerage and other receivables, net | 1,616 | |
Fixed assets, net | 782 | |
Intangible assets, net | 131 | |
Right-of-use asset | 135 | |
Other assets | 56 | |
TOTAL ASSETS | 8,692 | |
Total customer liabilities | 5,837 | |
Securities repurchase agreement obligations | 12 | |
Trade payables | 25 | |
Lease liability | 159 | |
Other liabilities | 298 | |
TOTAL LIABILITIES | $ 6,331 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Margin lending receivable | $ 25,200 | ||
Goodwill | $ 50,951 | $ 14,192 | $ 5,932 |
Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Useful lives of assets | 3 years | ||
Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Useful lives of assets | 65 years | ||
Mr. Timur Turlov | FST Belize | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Ownership percentage, controlling interest | 100% |
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, 2023 | Jun. 30, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, gross at the beginning of the period | $ 14,192 | $ 6,730 |
Forex | (1) | 34 |
Acquired | 36,760 | |
Goodwill, gross at the end of the period | 50,951 | 6,764 |
Accumulated impairment loss, at the beginning of the period | 0 | 832 |
Impairment expense | 0 | 0 |
Accumulated impairment loss, at the end of the period | 0 | 832 |
Goodwill, net of impairment beginning balance | 14,192 | |
Goodwill, net of impairment ending balance | 50,951 | 5,932 |
Central Asia and Eastern Europe | ||
Goodwill [Roll Forward] | ||
Goodwill, gross at the beginning of the period | 6,792 | 5,104 |
Forex | (1) | 34 |
Acquired | 36,760 | |
Goodwill, gross at the end of the period | 43,551 | 5,138 |
Accumulated impairment loss, at the beginning of the period | 0 | 832 |
Impairment expense | 0 | 0 |
Accumulated impairment loss, at the end of the period | 0 | 832 |
Goodwill, net of impairment beginning balance | 6,792 | |
Goodwill, net of impairment ending balance | 43,551 | 4,306 |
Europe, excluding Eastern Europe | ||
Goodwill [Roll Forward] | ||
Goodwill, gross at the beginning of the period | 0 | 0 |
Forex | 0 | 0 |
Acquired | 0 | |
Goodwill, gross at the end of the period | 0 | 0 |
Accumulated impairment loss, at the beginning of the period | 0 | 0 |
Impairment expense | 0 | 0 |
Accumulated impairment loss, at the end of the period | 0 | 0 |
Goodwill, net of impairment beginning balance | 0 | |
Goodwill, net of impairment ending balance | 0 | 0 |
The United States | ||
Goodwill [Roll Forward] | ||
Goodwill, gross at the beginning of the period | 7,400 | 1,626 |
Forex | 0 | 0 |
Acquired | 0 | |
Goodwill, gross at the end of the period | 7,400 | 1,626 |
Accumulated impairment loss, at the beginning of the period | 0 | 0 |
Impairment expense | 0 | 0 |
Accumulated impairment loss, at the end of the period | 0 | 0 |
Goodwill, net of impairment beginning balance | 7,400 | |
Goodwill, net of impairment ending balance | 7,400 | 1,626 |
Middle East/Caucasus | ||
Goodwill [Roll Forward] | ||
Goodwill, gross at the beginning of the period | 0 | 0 |
Forex | 0 | 0 |
Acquired | 0 | |
Goodwill, gross at the end of the period | 0 | 0 |
Accumulated impairment loss, at the beginning of the period | 0 | 0 |
Impairment expense | 0 | 0 |
Accumulated impairment loss, at the end of the period | 0 | 0 |
Goodwill, net of impairment beginning balance | 0 | |
Goodwill, net of impairment ending balance | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Impact of ASC 326 (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Mar. 31, 2023 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Total allowance for credit losses | $ 28,236 | |
Other financial assets | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses for other financial assets | 249 | |
Previously reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Total allowance for credit losses | 2,792 | |
Previously reported | Other financial assets | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses for other financial assets | 0 | |
Mortgage loans | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses for loans | 2,770 | |
Mortgage loans | Previously reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses for loans | 554 | |
Car loans | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses for loans | 7,221 | |
Car loans | Previously reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses for loans | 759 | |
Collateralized bank customer loans | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses for loans | 35 | |
Collateralized bank customer loans | Previously reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses for loans | 0 | |
Uncollateralized banks customer loans | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses for loans | 7,669 | |
Uncollateralized banks customer loans | Previously reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses for loans | 233 | |
Right of claim for purchased retail loans | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses for loans | 10,292 | |
Right of claim for purchased retail loans | Previously reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses for loans | 1,246 | |
ASC 326 Adoption Impact | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Tax effect | $ 0 | |
Forex effect | (1) | |
ASC 326 Adoption Impact | Retained earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Total allowance increase | 25,444 | |
Decrease to retained earnings, net of tax effect | $ 25,443 | |
ASC 326 Adoption Impact | ASC 326 Adoption Impact | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Total allowance for credit losses | 25,444 | |
ASC 326 Adoption Impact | ASC 326 Adoption Impact | Other financial assets | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses for other financial assets | 249 | |
ASC 326 Adoption Impact | Mortgage loans | ASC 326 Adoption Impact | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses for loans | 2,216 | |
ASC 326 Adoption Impact | Car loans | ASC 326 Adoption Impact | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses for loans | 6,462 | |
ASC 326 Adoption Impact | Collateralized bank customer loans | ASC 326 Adoption Impact | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses for loans | 35 | |
ASC 326 Adoption Impact | Uncollateralized banks customer loans | ASC 326 Adoption Impact | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses for loans | 7,436 | |
ASC 326 Adoption Impact | Right of claim for purchased retail loans | ASC 326 Adoption Impact | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses for loans | $ 9,046 |
CASH AND CASH EQUIVALENTS - Sch
CASH AND CASH EQUIVALENTS - Schedule of cash and cash equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 |
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ 597,364 | $ 581,417 | $ 246,399 |
Allowance for Cash and cash equivalents | (266) | 0 | |
Short term deposits in National Bank (Kazakhstan) | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 275,196 | 357,454 | |
Short term deposits in commercial banks | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 128,465 | 83,755 | |
Securities purchased under reverse repurchase agreements | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 97,426 | 29,812 | |
Petty cash in bank vault and on hand | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 37,430 | 35,998 | |
Overnight deposits | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 22,853 | 1,926 | |
Short term deposits in stock exchanges | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 21,695 | 31,691 | |
Short term deposits on brokerage accounts | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 11,431 | 37,417 | |
Cash in transit | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 3,030 | 3,364 | |
Bank deposits | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ 104 | $ 0 |
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, 2023 | Mar. 31, 2023 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Up to 30 days | $ 2,454,166 | $ 1,456,776 |
30-90 days | 117,816 | 60,640 |
Total contractual maturity | 2,571,982 | 1,517,416 |
Cash and cash equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Up to 30 days | 97,340 | 29,627 |
30-90 days | 86 | 185 |
Total contractual maturity | $ 97,426 | $ 29,812 |
Non-US sovereign debt | Cash and cash equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 15.90% | 6.12% |
Up to 30 days | $ 46,085 | $ 3,483 |
30-90 days | 0 | 0 |
Total contractual maturity | 46,085 | 3,483 |
US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Up to 30 days | 17,094 | 17,637 |
30-90 days | 0 | 0 |
Total contractual maturity | $ 17,094 | $ 17,637 |
US sovereign debt | Cash and cash equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 1.74% | 2.06% |
Up to 30 days | $ 31,278 | $ 17,102 |
30-90 days | 86 | 0 |
Total contractual maturity | 31,364 | 17,102 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Up to 30 days | 5 | 15,384 |
30-90 days | 0 | 0 |
Total contractual maturity | $ 5 | $ 15,384 |
Corporate equity | Cash and cash equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 17.82% | 17.17% |
Up to 30 days | $ 17,796 | $ 6,963 |
30-90 days | 0 | 0 |
Total contractual maturity | 17,796 | 6,963 |
Non-U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Up to 30 days | 735,482 | 597,559 |
30-90 days | 6,743 | 5,375 |
Total contractual maturity | $ 742,225 | $ 602,934 |
Non-U.S. sovereign debt | Cash and cash equivalents | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 2.05% | 2.52% |
Up to 30 days | $ 2,181 | $ 2,079 |
30-90 days | 0 | 185 |
Total contractual maturity | $ 2,181 | $ 2,264 |
CASH AND CASH EQUIVALENTS - Nar
CASH AND CASH EQUIVALENTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Fair value of collateral received by the company under reverse repurchase agreements | $ 97,260 | $ 31,165 |
Interest accrued on securities purchased under reverse repurchase agreements | $ 12 | $ 11 |
Resale agreement counterparty, weighted average maturity of agreements | 5 days | 9 days |
RESTRICTED CASH - Schedule of r
RESTRICTED CASH - Schedule of restricted cash (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Cash and Cash Equivalents [Line Items] | ||
Total restricted cash | $ 501,887 | $ 445,528 |
Allowance for restricted cash | (10,522) | (9,994) |
Brokerage customers’ cash | ||
Cash and Cash Equivalents [Line Items] | ||
Total restricted cash | 412,830 | 328,435 |
Restricted bank accounts | ||
Cash and Cash Equivalents [Line Items] | ||
Total restricted cash | 8,532 | 10,436 |
Guaranty deposits | ||
Cash and Cash Equivalents [Line Items] | ||
Total restricted cash | 91,024 | 116,628 |
Deferred distribution payment | ||
Cash and Cash Equivalents [Line Items] | ||
Total restricted cash | $ 23 | $ 23 |
RESTRICTED CASH - Narrative (De
RESTRICTED CASH - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Cash and Cash Equivalents [Line Items] | ||
Total restricted cash | $ 501,887 | $ 445,528 |
Deferred distribution payment | ||
Cash and Cash Equivalents [Line Items] | ||
Total 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, 2023 | Mar. 31, 2023 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 3,369,066 | $ 2,412,556 |
Fair value of equity securities | 221,445 | 239,053 |
Non-U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 1,219,252 | 1,269,879 |
Fair value of equity securities | 165,662 | 191,082 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 2,017,384 | 1,029,857 |
Fair value of equity securities | 48,025 | 40,162 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 87,821 | 65,741 |
U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 42,437 | 45,022 |
Fair value of equity securities | 7,758 | 7,809 |
Exchange traded notes | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 2,172 | $ 2,057 |
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, 2023 | Mar. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | $ 221,445 | $ 239,053 |
Non-U.S. sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 165,662 | 191,082 |
Non-US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 48,025 | 40,162 |
US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 7,758 | 7,809 |
Up to 1 year | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 36,490 | 78,953 |
Up to 1 year | Non-U.S. sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 34,526 | 77,006 |
Up to 1 year | Non-US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 0 | 0 |
Up to 1 year | US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 1,964 | 1,947 |
1-5 years | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 116,849 | 118,527 |
1-5 years | Non-U.S. sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 77,543 | 82,579 |
1-5 years | Non-US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 36,502 | 33,143 |
1-5 years | US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 2,804 | 2,805 |
5-10 years | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 60,634 | 34,031 |
5-10 years | Non-U.S. sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 53,583 | 31,486 |
5-10 years | Non-US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 5,351 | 820 |
5-10 years | US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 1,700 | 1,725 |
More than 10 years | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 7,472 | 7,542 |
More than 10 years | Non-U.S. sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 10 | 11 |
More than 10 years | Non-US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | 6,172 | 6,199 |
More than 10 years | US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of equity securities | $ 1,290 | $ 1,332 |
TRADING AND AVAILABLE FOR SAL_3
TRADING AND AVAILABLE FOR SALE SECURITIES AT FAIR VALUE - Narrative (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2023 USD ($) issuer | Sep. 30, 2022 USD ($) | Dec. 31, 2022 | Mar. 31, 2023 USD ($) issuer | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of issuers | issuer | 2 | 2 | ||
Other-than-temporary impairment in accumulated other comprehensive loss | $ 0 | $ 0 | ||
Kazakhstan Sustainability Fund JSC | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of trading securities | 10% | 10% | ||
Debt securities | $ 770,185,000 | $ 834,917,000 | ||
Ministry of Finance of the Republic of Kazakhstan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of trading securities | 10% | 10% | ||
Debt securities | $ 2,005,538,000 | $ 1,015,161,000 |
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, 2023 | Mar. 31, 2023 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 3,369,066 | $ 2,412,556 |
Fair value of equity securities | 221,445 | 239,053 |
Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 3,369,066 | 2,412,556 |
Fair value of equity securities | 221,445 | 239,053 |
Level 1 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 2,982,266 | 2,186,786 |
Fair value of equity securities | 142,055 | 176,937 |
Level 2 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 366,095 | 220,632 |
Fair value of equity securities | 79,390 | 62,116 |
Level 3 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 20,705 | 5,138 |
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 | 1,219,252 | 1,269,879 |
Fair value of equity securities | $ 165,662 | $ 191,082 |
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 | 16.05% | 15.62% |
Trading securities | $ 1,219,252 | $ 1,269,879 |
Total available-for-sale securities, weighted average interest rate | 17.52% | 15.78% |
Fair value of equity securities | $ 165,662 | $ 191,082 |
Non-U.S. sovereign debt | Level 1 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 922,010 | 1,106,584 |
Fair value of equity securities | 93,274 | 129,504 |
Non-U.S. sovereign debt | Level 2 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 296,914 | 162,895 |
Fair value of equity securities | 72,388 | 61,578 |
Non-U.S. sovereign debt | Level 3 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 328 | 400 |
Fair value of equity securities | 0 | 0 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 2,017,384 | 1,029,857 |
Fair value of equity securities | $ 48,025 | $ 40,162 |
Corporate debt | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities, weighted average interest rate | 12.71% | 12.04% |
Trading securities | $ 2,017,384 | $ 1,029,857 |
Total available-for-sale securities, weighted average interest rate | 13.87% | 13.64% |
Fair value of equity securities | $ 48,025 | $ 40,162 |
Corporate debt | Level 1 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 1,951,883 | 971,762 |
Fair value of equity securities | 41,023 | 39,624 |
Corporate debt | Level 2 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 65,466 | 54,319 |
Fair value of equity securities | 7,002 | 538 |
Corporate debt | Level 3 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 35 | 3,776 |
Fair value of equity securities | 0 | 0 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | $ 87,821 | $ 65,741 |
Corporate equity | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities, weighted average interest rate | 0% | 0% |
Trading securities | $ 87,821 | $ 65,741 |
Corporate equity | Level 1 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 65,058 | 62,971 |
Corporate equity | Level 2 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 2,421 | 1,808 |
Corporate equity | Level 3 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 20,342 | 962 |
US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 42,437 | 45,022 |
Fair value of equity securities | $ 7,758 | $ 7,809 |
US sovereign debt | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities, weighted average interest rate | 4.84% | 4.22% |
Trading securities | $ 42,437 | $ 45,022 |
Total available-for-sale securities, weighted average interest rate | 4.84% | 4.24% |
Fair value of equity securities | $ 7,758 | $ 7,809 |
US sovereign debt | Level 1 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 42,437 | 45,022 |
Fair value of equity securities | 7,758 | 7,809 |
US 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 |
US 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 | $ 2,172 | $ 2,057 |
Exchange traded notes | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities, weighted average interest rate | 0% | 0% |
Trading securities | $ 2,172 | $ 2,057 |
Exchange traded notes | Level 1 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 878 | 447 |
Exchange traded notes | Level 2 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities | 1,294 | 1,610 |
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) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value | $ 20,705 | $ 5,138 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value | $ 35 | $ 3,776 |
Fair value input | 48.80% | 48.80% |
Estimated number of years | 11 years | 11 years |
Non-U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value | $ 328 | $ 400 |
Fair value input | 74% | 74% |
Estimated number of years | 3 months | 3 months |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value | $ 20,000 | $ 962 |
Fair value input | 13% | 58.80% |
Estimated number of years | 4 years 6 months | 9 years |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value | $ 342 | |
Fair value input | 58.80% | |
Estimated number of years | 9 years |
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) - Trading securities - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Mar. 31, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Investments beginning | $ 5,138 | $ 9,142 |
Purchase of investments that use Level 3 inputs | 20,000 | 2,604 |
Deconsolidation of Freedom UA securities | (3,928) | |
Revaluation of investments that use Level 3 inputs | 24 | (56) |
Reclassification to investment in associate | (529) | |
Reclassification to level 2 | (1,339) | |
Sale of investments that use Level 3 inputs | (5,213) | |
Investments ending | $ 20,705 | $ 5,138 |
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, 2023 | Mar. 31, 2023 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | $ 224,695 | $ 243,014 |
Recognized impairment loss in Income Statement | (309) | (402) |
Unrealized loss accumulated in other comprehensive income/(loss) | (2,941) | (3,559) |
Assets measured at fair value | 221,445 | 239,053 |
Non-U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | 166,265 | 192,167 |
Recognized impairment loss in Income Statement | (61) | (402) |
Unrealized loss accumulated in other comprehensive income/(loss) | (542) | (683) |
Assets measured at fair value | 165,662 | 191,082 |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | 49,979 | 42,456 |
Recognized impairment loss in Income Statement | (248) | 0 |
Unrealized loss accumulated in other comprehensive income/(loss) | (1,706) | (2,294) |
Assets measured at fair value | 48,025 | 40,162 |
U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | 8,451 | 8,391 |
Recognized impairment loss in Income Statement | 0 | 0 |
Unrealized loss accumulated in other comprehensive income/(loss) | (693) | (582) |
Assets measured at fair value | $ 7,758 | $ 7,809 |
MARGIN LENDING, BROKERAGE AND_3
MARGIN LENDING, BROKERAGE AND OTHER RECEIVABLES, NET - Schedule of brokerage and other receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | $ 520,590 | $ 376,329 |
Allowance for receivables | (12,509) | (12,507) |
Margin lending receivables | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 496,317 | 361,684 |
Receivables from brokerage clients | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 8,734 | 7,302 |
Bank commissions receivable | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 7,986 | 6,035 |
Long-term installments receivables | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 1,132 | 895 |
Receivable for underwriting and market-making services | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 1,088 | 2,317 |
Receivable from sale of securities | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 510 | 613 |
Dividends accrued | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 313 | 486 |
Other receivables | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | $ 17,019 | $ 9,504 |
MARGIN LENDING, BROKERAGE AND_4
MARGIN LENDING, BROKERAGE AND OTHER RECEIVABLES, NET - Narrative (Details) - USD ($) | Jun. 30, 2023 | Mar. 31, 2023 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Collateral received, fair value | $ 4,124,781 | $ 1,418,129 |
Collateralized financings | 1,746,826 | |
Brokerage and other receivables due from related party | $ 373,735,000 | $ 290,195,000 |
Due from related party customer (in percent) | 72% | 77% |
Lending margin receivable | $ 25,244,000 | $ 37,101,000 |
Total allowance for credit losses | 12,509,000 | $ 12,507,000 |
Nonrelated Party | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Collateralized financings | 496,317 | |
One | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Collateralized financings | $ 37,696 | |
Collateral, percentage | 42% |
LOANS ISSUED - Summary of loans
LOANS ISSUED - Summary of loans issued (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 1,058,148 | $ 829,050 |
Total loans issued | 826,258 | |
Mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 583,066 | $ 534,154 |
Weighted Average Interest Rate | 9% | 9% |
Fair Value of Collateral | $ 577,196 | $ 534,154 |
Car loans | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 171,772 | $ 102,269 |
Weighted Average Interest Rate | 25% | 25% |
Fair Value of Collateral | $ 171,732 | $ 102,247 |
Uncollateralized bank customer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 149,800 | $ 46,970 |
Weighted Average Interest Rate | 24% | 25% |
Fair Value of Collateral | $ 0 | $ 0 |
Right of claim for purchased retail loans | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 142,336 | $ 121,177 |
Weighted Average Interest Rate | 19% | 15% |
Fair Value of Collateral | $ 142,336 | $ 121,177 |
Collateralized bank customer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 31,114 | $ 17,653 |
Weighted Average Interest Rate | 14% | 2% |
Fair Value of Collateral | $ 29,039 | $ 17,636 |
Convertible loan | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 10,550 | |
Weighted Average Interest Rate | 0% | |
Fair Value of Collateral | $ 10,550 | |
Subordinated loan | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 5,075 | $ 5,039 |
Weighted Average Interest Rate | 3% | 3% |
Fair Value of Collateral | $ 0 | $ 0 |
Loans issued to policyholders | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 1,445 | $ 1,488 |
Weighted Average Interest Rate | 15% | 15% |
Fair Value of Collateral | $ 1,562 | $ 1,752 |
Other | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 4,694 | |
Weighted Average Interest Rate | 2% | |
Fair Value of Collateral | $ 0 | |
Other | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 300 | |
Weighted Average Interest Rate | 2% | |
Fair Value of Collateral | $ 0 | |
Other | ||
Financing Receivable, Past Due [Line Items] | ||
Weighted Average Interest Rate | 16% | |
Allowance for loans issued | ||
Financing Receivable, Past Due [Line Items] | ||
Amount Outstanding | $ 41,704 | $ 2,792 |
LOANS ISSUED - Finance receivab
LOANS ISSUED - Finance receivable Maturity (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | $ 523,260 |
2022 | 556,859 |
2021 | 16,716 |
2020 | 1 |
2019 | 3,015 |
Prior | 1 |
Revolving loans | 0 |
Total | 1,099,852 |
Mortgage loans | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 92,435 |
2022 | 476,173 |
2021 | 14,458 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 583,066 |
Mortgage loans | that are not credit impaired | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 92,400 |
2022 | 474,129 |
2021 | 14,236 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 580,765 |
Mortgage loans | with significant increase in credit risk | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 0 |
2022 | 1,888 |
2021 | 193 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 2,081 |
Mortgage loans | that are credit impaired | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 35 |
2022 | 156 |
2021 | 29 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 220 |
Uncollateralized bank customer loans | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 149,518 |
2022 | 251 |
2021 | 29 |
2020 | 1 |
2019 | 0 |
Prior | 1 |
Revolving loans | 0 |
Total | 149,800 |
Uncollateralized bank customer loans | that are not credit impaired | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 149,018 |
2022 | 144 |
2021 | 29 |
2020 | 1 |
2019 | 0 |
Prior | 1 |
Revolving loans | 0 |
Total | 149,193 |
Uncollateralized bank customer loans | with significant increase in credit risk | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 406 |
2022 | 26 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 432 |
Uncollateralized bank customer loans | that are credit impaired | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 94 |
2022 | 81 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 175 |
Right of claim for purchased retail loans | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 103,768 |
2022 | 36,339 |
2021 | 2,229 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 142,336 |
Right of claim for purchased retail loans | that are not credit impaired | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 103,768 |
2022 | 36,339 |
2021 | 2,229 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 142,336 |
Right of claim for purchased retail loans | with significant increase in credit risk | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 0 |
Right of claim for purchased retail loans | that are credit impaired | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 0 |
Collateralized bank customer loans | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 21,391 |
2022 | 9,723 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 31,114 |
Collateralized bank customer loans | that are not credit impaired | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 21,391 |
2022 | 9,723 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 31,114 |
Collateralized bank customer loans | with significant increase in credit risk | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 0 |
Collateralized bank customer loans | that are credit impaired | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 0 |
Car loans | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 142,602 |
2022 | 29,170 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 171,772 |
Car loans | that are not credit impaired | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 139,182 |
2022 | 27,851 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 167,033 |
Car loans | with significant increase in credit risk | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 2,555 |
2022 | 595 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 3,150 |
Car loans | that are credit impaired | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 865 |
2022 | 724 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 1,589 |
Convertible loan | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 10,550 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 10,550 |
Convertible loan | that are not credit impaired | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 10,550 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 10,550 |
Convertible loan | with significant increase in credit risk | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 0 |
Convertible loan | that are credit impaired | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 0 |
Subordinated loan | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 0 |
2022 | 5,075 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 5,075 |
Subordinated loan | that are not credit impaired | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 0 |
2022 | 5,075 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 5,075 |
Subordinated loan | with significant increase in credit risk | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 0 |
Subordinated loan | that are credit impaired | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 0 |
Loans issued to policyholders | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 1,445 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 1,445 |
Loans issued to policyholders | that are not credit impaired | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 1,445 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 1,445 |
Loans issued to policyholders | with significant increase in credit risk | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 0 |
Loans issued to policyholders | that are credit impaired | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 0 |
Other | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 1,551 |
2022 | 128 |
2021 | 0 |
2020 | 0 |
2019 | 3,015 |
Prior | 0 |
Revolving loans | 0 |
Total | 4,694 |
Other | that are not credit impaired | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 1,551 |
2022 | 128 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 1,679 |
Other | with significant increase in credit risk | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 0 |
Prior | 0 |
Revolving loans | 0 |
Total | 0 |
Other | that are credit impaired | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |
2023 | 0 |
2022 | 0 |
2021 | 0 |
2020 | 0 |
2019 | 3,015 |
Prior | 0 |
Revolving loans | 0 |
Total | $ 3,015 |
LOANS ISSUED - Finance receiv_2
LOANS ISSUED - Finance receivable Delinquency (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | $ 1,099,852 | $ 829,050 |
Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 3,824 | 2,215 |
Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 1,896 | 487 |
Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 5,001 | 67 |
Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 1,089,131 | 826,281 |
Mortgage loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 583,066 | 534,154 |
Mortgage loans | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 1,579 | 1,265 |
Mortgage loans | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 502 | 240 |
Mortgage loans | Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 220 | 28 |
Mortgage loans | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 580,765 | 532,621 |
Car loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 171,772 | 102,269 |
Car loans | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 1,867 | 754 |
Car loans | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 1,283 | 239 |
Car loans | Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 1,589 | 32 |
Car loans | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 167,033 | 101,244 |
Uncollateralized bank customer loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 149,800 | 46,970 |
Uncollateralized bank customer loans | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 321 | 73 |
Uncollateralized bank customer loans | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 111 | 8 |
Uncollateralized bank customer loans | Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 175 | 7 |
Uncollateralized bank customer loans | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 149,193 | 46,882 |
Right of claim for purchased retail loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 142,336 | 121,177 |
Right of claim for purchased retail loans | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 57 | 123 |
Right of claim for purchased retail loans | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 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] | ||
Financing receivable, modified, after 12 months | 2 | 0 |
Right of claim for purchased retail loans | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 142,277 | 121,054 |
Collateralized bank customer loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 31,114 | 17,653 |
Collateralized bank customer loans | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 0 | 0 |
Collateralized bank customer loans | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 0 | 0 |
Collateralized bank customer loans | Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 0 | 0 |
Collateralized bank customer loans | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 31,114 | 17,653 |
Convertible loan | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 10,550 | |
Convertible loan | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 0 | |
Convertible loan | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 0 | |
Convertible loan | Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 0 | |
Convertible loan | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 10,550 | |
Subordinated loan | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 5,075 | 5,039 |
Subordinated loan | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 0 | 0 |
Subordinated loan | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 0 | 0 |
Subordinated loan | Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 0 | 0 |
Subordinated loan | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 5,075 | 5,039 |
Loans issued to policyholders | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 1,445 | 1,488 |
Loans issued to policyholders | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 0 | 0 |
Loans issued to policyholders | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 0 | 0 |
Loans issued to policyholders | Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 0 | 0 |
Loans issued to policyholders | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 1,445 | 1,488 |
Other | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 4,694 | 300 |
Other | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 0 | 0 |
Other | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 0 | 0 |
Other | Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | 3,015 | 0 |
Other | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Financing receivable, modified, after 12 months | $ 1,679 | $ 300 |
LOANS ISSUED - Allowances for C
LOANS ISSUED - Allowances for Credit Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Opening balance | $ (2,792) | $ 0 |
Charges | (19,365) | (4,337) |
Recoveries | 5,511 | 4,422 |
Forex | 137 | (85) |
Closing balance | (41,704) | 0 |
Adjustment to allowance for adoption of ASU 2016-13 | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Opening balance | (25,195) | |
Mortgage loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Opening balance | (554) | 0 |
Charges | 0 | (570) |
Recoveries | 284 | 568 |
Forex | 3 | 2 |
Closing balance | (2,483) | 0 |
Mortgage loans | Adjustment to allowance for adoption of ASU 2016-13 | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Opening balance | (2,216) | |
Uncollateralized bank customer loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Opening balance | (233) | 0 |
Charges | (7,755) | (22) |
Recoveries | 1,602 | 22 |
Forex | 64 | 0 |
Closing balance | (13,758) | 0 |
Uncollateralized bank customer loans | Adjustment to allowance for adoption of ASU 2016-13 | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Opening balance | (7,436) | |
Collateralized bank customer loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Opening balance | 0 | 0 |
Charges | (55) | (9) |
Recoveries | 8 | 9 |
Forex | 2 | 0 |
Closing balance | (80) | 0 |
Collateralized bank customer loans | Adjustment to allowance for adoption of ASU 2016-13 | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Opening balance | (35) | |
Car loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Opening balance | (758) | 0 |
Charges | (2,948) | (24) |
Recoveries | 272 | 25 |
Forex | 34 | (1) |
Closing balance | (9,862) | 0 |
Car loans | Adjustment to allowance for adoption of ASU 2016-13 | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Opening balance | (6,462) | |
Right of claim for purchased retail loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Opening balance | (1,247) | 0 |
Charges | (5,346) | (3,712) |
Recoveries | 3,345 | 3,798 |
Forex | 34 | (86) |
Closing balance | (12,260) | 0 |
Right of claim for purchased retail loans | Adjustment to allowance for adoption of ASU 2016-13 | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Opening balance | (9,046) | |
Other | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Opening balance | 0 | 0 |
Charges | (3,261) | 0 |
Recoveries | 0 | 0 |
Forex | 0 | 0 |
Closing balance | (3,261) | $ 0 |
Other | Adjustment to allowance for adoption of ASU 2016-13 | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Opening balance | $ 0 |
LOANS ISSUED - Narrative (Detai
LOANS ISSUED - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | |
Financing Receivable, Past Due [Line Items] | |||
Debt, weighted average interest rate, period term | 20 years | ||
Liability arising from continuing involvement | $ 459,122 | $ 440,805 | |
Amount Outstanding | 1,058,148 | 829,050 | |
Interest Income, Other | $ 6,443 | $ 288 | |
Percentage of agreements with significant increase in credit risk exceeding probability of default threshold | 20% | ||
Bank customer loans loan | State mortgage program "7-20-25" | |||
Financing Receivable, Past Due [Line Items] | |||
Weighted average interest rate, over 20 year term | 7% | ||
Weighted average interest rate, over 20 year term, transferred to program operator | 4% | ||
Weighted average interest rate, over 20 year term, retained | 3% | ||
Amount Outstanding | $ 477,024 | 463,114 | |
Right of claims for purchased retail loans | |||
Financing Receivable, Past Due [Line Items] | |||
Amount Outstanding | $ 142,336 | $ 121,177 |
LOANS ISSUED - Finance receiv_3
LOANS ISSUED - Finance receivable Vintage (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | $ 1,058,148 | $ 829,050 |
that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 826,282 | |
with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 2,701 | |
that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 67 | |
Mortgage loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 534,154 | |
Mortgage loans | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 532,621 | |
Mortgage loans | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 1,505 | |
Mortgage loans | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 28 | |
Right of claim for purchased retail loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 121,177 | |
Right of claim for purchased retail loans | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 121,055 | |
Right of claim for purchased retail loans | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 122 | |
Right of claim for purchased retail loans | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 0 | |
Car loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 102,269 | |
Car loans | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 101,244 | |
Car loans | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 993 | |
Car loans | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 32 | |
Uncollateralized bank customer loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 46,970 | |
Uncollateralized bank customer loans | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 46,882 | |
Uncollateralized bank customer loans | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 81 | |
Uncollateralized bank customer loans | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 7 | |
Collateralized bank customer loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 17,653 | |
Collateralized bank customer loans | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 17,653 | |
Collateralized bank customer loans | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 0 | |
Collateralized bank customer loans | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 0 | |
Subordinated loan | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 5,039 | |
Subordinated loan | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 5,039 | |
Subordinated loan | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 0 | |
Subordinated loan | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 0 | |
Loans issued to policyholders | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 1,488 | |
Loans issued to policyholders | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 1,488 | |
Loans issued to policyholders | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 0 | |
Loans issued to policyholders | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 0 | |
Other | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 300 | |
Other | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 300 | |
Other | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 0 | |
Other | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | $ 0 |
PROVISION FOR INCOME TAXES - Na
PROVISION FOR INCOME TAXES - Narrative (Details) | 3 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Effective income tax rate | 19.70% | 17.10% | |
The United States | |||
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 | 31% | 31% | |
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 | 3 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Up to 30 days | $ 2,454,166 | $ 1,456,776 |
30-90 days | 117,816 | 60,640 |
Total contractual maturity | $ 2,571,982 | $ 1,517,416 |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 16.67% | 15.98% |
Up to 30 days | $ 1,701,585 | $ 826,196 |
30-90 days | 111,073 | 55,265 |
Total contractual maturity | $ 1,812,658 | $ 881,461 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 16.50% | 16.07% |
Up to 30 days | $ 735,482 | $ 597,559 |
30-90 days | 6,743 | 5,375 |
Total contractual maturity | $ 742,225 | $ 602,934 |
U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 1.43% | 1.52% |
Up to 30 days | $ 17,094 | $ 17,637 |
30-90 days | 0 | 0 |
Total contractual maturity | $ 17,094 | $ 17,637 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 17% | 12.24% |
Up to 30 days | $ 5 | $ 15,384 |
30-90 days | 0 | 0 |
Total contractual maturity | $ 5 | $ 15,384 |
SECURITIES REPURCHASE AGREEME_4
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Mar. 31, 2023 | |
Securities Sold under Agreements to Repurchase [Abstract] | ||
Fair value of collateral pledged under repurchase agreements | $ 2,562,107 | $ 1,519,926 |
Interest payable accrued on securities purchased under reverse repurchase agreements | $ 8,994 | $ 25,179 |
Repurchase agreement, weighted average maturity of agreements | 10 days | 11 days |
CUSTOMER LIABILITIES - Schedule
CUSTOMER LIABILITIES - Schedule of customer liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | |
Revenue, Major Customer [Line Items] | |||
Total non-interest-bearing accounts | $ 1,137,202 | $ 1,092,496 | |
Total customer liabilities | 2,122,047 | 1,925,247 | |
Term Deposits | |||
Revenue, Major Customer [Line Items] | |||
Term deposits | $ 984,845 | 832,751 | |
Term Deposits | Minimum | |||
Revenue, Major Customer [Line Items] | |||
Debt securities, interest rate during period (in percent) | 0.30% | 0.10% | |
Term Deposits | Maximum | |||
Revenue, Major Customer [Line Items] | |||
Debt securities, interest rate during period (in percent) | 12% | 16.90% | |
Current customer accounts | |||
Revenue, Major Customer [Line Items] | |||
Total non-interest-bearing accounts | $ 485,007 | 458,954 | |
Brokerage customers | |||
Revenue, Major Customer [Line Items] | |||
Total non-interest-bearing accounts | $ 652,195 | $ 633,542 |
CUSTOMER LIABILITIES - Narrativ
CUSTOMER LIABILITIES - Narrative (Details) - Freedom Bank KZ - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Revenue, Major Customer [Line Items] | ||
Insured bank deposits, price per client | $ 44 | |
Insured bank deposits | $ 601,406 | $ 539,411 |
MARGIN LENDING AND TRADE PAYA_3
MARGIN LENDING AND TRADE PAYABLES - Schedule of Trade Payables (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Regulatory Liabilities [Line Items] | ||
Trade payables | $ 182,627 | $ 122,900 |
Margin lending payable | ||
Regulatory Liabilities [Line Items] | ||
Trade payables | 170,716 | 117,144 |
Payables to suppliers of goods and services | ||
Regulatory Liabilities [Line Items] | ||
Trade payables | 7,490 | 2,965 |
Trade payable for securities purchased | ||
Regulatory Liabilities [Line Items] | ||
Trade payables | 1,666 | 482 |
Other | ||
Regulatory Liabilities [Line Items] | ||
Trade payables | $ 2,755 | $ 2,309 |
MARGIN LENDING AND TRADE PAYA_4
MARGIN LENDING AND TRADE PAYABLES - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Related Party Transaction [Line Items] | ||
Margin loans, fair value of collateral | $ 182,062 | $ 164,861 |
Related party | ||
Related Party Transaction [Line Items] | ||
Trade payables | $ 0 | $ 3,239 |
Trade payables due (in percent) | 0% | 3% |
DEBT SECURITIES ISSUED - Summar
DEBT SECURITIES ISSUED - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Debt Instrument [Line Items] | ||
Debt securities issued | $ 65,041 | $ 60,025 |
Freedom SPC | ||
Debt Instrument [Line Items] | ||
Debt securities issued | 64,354 | 58,582 |
Accrued interest | ||
Debt Instrument [Line Items] | ||
Debt securities issued | $ 687 | $ 1,443 |
DEBT SECURITIES ISSUED - Narrat
DEBT SECURITIES ISSUED - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Debt Instrument [Line Items] | ||
Debt securities issued | $ 65,041 | $ 60,025 |
Freedom SPC | ||
Debt Instrument [Line Items] | ||
Debt securities issued | $ 64,354 | $ 58,582 |
FRHC Loan | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.50% | |
Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.50% | 5.50% |
INSURANCE CONTRACTS ASSETS AN_3
INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES - Schedule of Insurance Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Effects of Reinsurance [Line Items] | ||
Allowance for estimated uncollectible reinsurance | $ (1,502) | $ (1,325) |
Insurance and reinsurance receivables: | 7,564 | 10,016 |
Unearned premium reserve, reinsurers’ share | 3,005 | 2,379 |
Reserves for claims and claims’ adjustment expenses, reinsurers’ share | 1,640 | 1,390 |
Total | 12,209 | 13,785 |
Amounts due from policyholders | ||
Effects of Reinsurance [Line Items] | ||
Insurance and reinsurance receivable, gross | 7,448 | 9,699 |
Claims receivable from reinsurance | ||
Effects of Reinsurance [Line Items] | ||
Insurance and reinsurance receivable, gross | 1,285 | 1,087 |
Amounts due from reinsured | ||
Effects of Reinsurance [Line Items] | ||
Insurance and reinsurance receivable, gross | $ 333 | $ 555 |
INSURANCE CONTRACTS ASSETS AN_4
INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES -Schedule of Insurance Payables (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Insurance and Reinsurance Payable [Line Items] | ||
Insurance and reinsurance payables: | $ 6,468 | $ 6,275 |
Unearned premium reserve | 49,194 | 43,082 |
Reserves for claims and claims’ adjustment expenses | 142,485 | 133,145 |
Liabilities from insurance activity | 198,147 | 182,502 |
Amounts payable to agents and brokers | ||
Insurance and Reinsurance Payable [Line Items] | ||
Insurance and reinsurance payables: | 2,494 | 2,466 |
Amounts payable to insured | ||
Insurance and Reinsurance Payable [Line Items] | ||
Insurance and reinsurance payables: | 2,692 | 2,002 |
Amounts payable to reinsurers | ||
Insurance and Reinsurance Payable [Line Items] | ||
Insurance and reinsurance payables: | $ 1,282 | $ 1,807 |
FEE AND COMMISSION INCOME_EXPEN
FEE AND COMMISSION INCOME/EXPENSE-Schedule of commission income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Brokerage services | $ 55,082 | $ 83,600 |
Commission income from payment processing | 18,042 | |
Bank services | 12,841 | 3,814 |
Underwriting and market-making services | 8,831 | 1,644 |
Other fee and commission income | 3,907 | 388 |
Total fee and commission income | 98,703 | 89,446 |
Central Asia and Eastern Europe | ||
Disaggregation of Revenue [Line Items] | ||
Brokerage services | 35,018 | 2,661 |
Commission income from payment processing | 18,042 | |
Bank services | 12,841 | 3,814 |
Underwriting and market-making services | 4,698 | 1,644 |
Other fee and commission income | 2,786 | 131 |
Total fee and commission income | 73,385 | 8,250 |
Europe, excluding Eastern Europe | ||
Disaggregation of Revenue [Line Items] | ||
Brokerage services | 18,951 | 79,805 |
Commission income from payment processing | 0 | |
Bank services | 0 | 0 |
Underwriting and market-making services | 0 | 0 |
Other fee and commission income | 215 | 257 |
Total fee and commission income | 19,166 | 80,062 |
The United States | ||
Disaggregation of Revenue [Line Items] | ||
Brokerage services | 1,113 | 1,134 |
Commission income from payment processing | 0 | |
Bank services | 0 | 0 |
Underwriting and market-making services | 4,133 | 0 |
Other fee and commission income | 906 | 0 |
Total fee and commission income | 6,152 | 1,134 |
Middle East/Caucasus | ||
Disaggregation of Revenue [Line Items] | ||
Brokerage services | 0 | 0 |
Commission income from payment processing | 0 | |
Bank services | 0 | 0 |
Underwriting and market-making services | 0 | 0 |
Other fee and commission income | 0 | 0 |
Total fee and commission income | $ 0 | $ 0 |
NET GAIN ON TRADING SECURITIE_2
NET GAIN ON TRADING SECURITIES - Summary of net gain on trading securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net unrealized gain/(loss) recognized during the reporting period on trading securities still held at the reporting date | $ 20,951 | $ (11,730) |
Net gain recognized during the period on trading securities sold during the period | 10,865 | 16,163 |
Net gain recognized during the period on trading securities | $ 31,816 | $ 4,433 |
NET GAIN ON TRADING SECURITIE_3
NET GAIN ON TRADING SECURITIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net gain/(loss) on trading securities | $ 31,816 | $ 4,433 |
Net unrealized gain/(loss) recognized during the reporting period on trading securities still held at the reporting date | 20,951 | (11,730) |
Net gain recognized during the period on trading securities sold during the period | $ 10,865 | $ 16,163 |
NET INTEREST INCOME_EXPENSE (De
NET INTEREST INCOME/EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Interest income: | ||
Interest income on trading securities | $ 86,840 | $ 31,515 |
Interest income on loans to customers | 31,333 | 4,627 |
Interest income on margin loans to customers | 17,180 | 4,914 |
Interest income on securities available-for-sale | 8,345 | 6,678 |
Interest income on reverse repurchase agreements and amounts due from banks | 3,057 | 787 |
Interest income from dividends | 2,594 | 42 |
Interest income from dividends | 149,349 | 48,563 |
Interest expense: | ||
Interest expense on securities repurchase agreement obligations | 75,455 | 33,180 |
Interest expense on customer accounts and deposits | 15,603 | 6,063 |
Interest expense on margin lending payable | 2,993 | 0 |
Interest expense on debt securities issued | 935 | 767 |
Interest expense on loans received | 27 | 61 |
Other interest expense | 33 | 0 |
Interest expense | 95,046 | 40,071 |
Net interest income | $ 54,303 | $ 8,492 |
NET (LOSS)_GAIN ON DERIVATIVE_2
NET (LOSS)/GAIN ON DERIVATIVES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Net realized (loss)/gain on derivatives | $ (27,493) | $ 1,266 |
Net unrealized (loss)/gain on derivatives | (3,112) | 0 |
Net (loss)/gain on derivative | $ (30,605) | $ 1,266 |
NET (LOSS)_GAIN ON DERIVATIVE_3
NET (LOSS)/GAIN ON DERIVATIVES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative [Line Items] | ||
Net (loss)/gain on derivative | $ (30,605) | $ 1,266 |
Freedom Bank KZ | ||
Derivative [Line Items] | ||
Net (loss)/gain on derivative | $ (27,673) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | |
Related Party Transaction [Line Items] | |||
Fee and commission income | $ 98,703 | $ 89,446 | |
Proportion of fee and commission income to related party commission income | 92% | 100% | |
Interest income | $ 149,349 | $ 48,563 | |
Fee and commission expense | 28,684 | 23,315 | |
Margin lending, brokerage and other receivables, net | 520,590 | $ 376,329 | |
Proceeds from loans received | 640 | $ 626 | |
Other assets | 67,535 | 73,463 | |
Business combination, consideration payable | 15,769 | 7,188 | |
Customer deposits | 2,122,047 | 1,925,247 | |
Total restricted cash | 501,887 | 445,528 | |
Loan issued | 1,058,148 | 826,258 | |
Related party | |||
Related Party Transaction [Line Items] | |||
Margin lending, brokerage and other receivables, net | 384,688 | 294,985 | |
Other assets | 0 | 16,089 | |
Business combination, consideration payable | 15,769 | 0 | |
Customer deposits | 79,679 | 130,210 | |
Total restricted cash | 59,914 | 114,885 | |
Loan issued | $ 142,336 | $ 121,177 | |
FST Belize | |||
Related Party Transaction [Line Items] | |||
Percentage of interest income, related party | 99% | 100% | |
Margin lending receivables from related party as a percentage of related party margin lending receivables (in percent) | 97% | 98% | |
Other liabilities from related party as a percentage of related party other liabilities | 71% | 18% | |
Restricted customer cash from related party as a percentage of related party restricted customer cash | 100% | 40% | |
Fresh Start Trading | |||
Related Party Transaction [Line Items] | |||
Other liabilities from related party as a percentage of related party other liabilities | 3% | 36% | |
Related party | |||
Related Party Transaction [Line Items] | |||
Fee and commission income | $ 15,896 | $ 75,604 | |
Interest income | 5,352 | 3,528 | |
Fee and commission expense | 99 | $ 156 | |
Related party | Arbuz Group LLP | |||
Related Party Transaction [Line Items] | |||
Loans Payable | $ 7,735 | $ 0 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) $ in Thousands | 3 Months Ended | ||||||
Mar. 10, 2023 shares | Oct. 20, 2022 shares | Oct. 11, 2022 shares | Oct. 06, 2022 shares | Mar. 30, 2022 individual shares | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock grants (in shares) | 18,974 | 8,000 | 18,242 | 20,000 | 7,500 | ||
Number of individuals | individual | 1 | ||||||
Stock based compensation | $ | $ 1,233 | $ 3,698 | |||||
Additional paid in capital | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock based compensation | $ | $ 1,233 | $ 3,698 | |||||
Share-based payment arrangement, tranche one | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock grants (in shares) | 4,000 | 7,500 | |||||
Share-based payment arrangement, tranche two | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock grants (in shares) | 4,000 | 3,000 | |||||
Share-based payment arrangement, tranche three | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock grants (in shares) | 4,000 | 1,500 | |||||
Share based compensation award tranche four | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock grants (in shares) | 4,000 | 1,500 | |||||
Share based compensation award tranche five | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock grants (in shares) | 4,000 | 1,500 |
STOCK BASED COMPENSATION - Narr
STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 6,817 | |
Unrecognized compensation cost, weighted average recognition period | 2 years 9 months 29 days | |
Additional paid in capital | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 1,233 | $ 3,698 |
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, 2023 | |
Class of Warrant or Right [Line Items] | |
Term (years) | 2 years 9 months 29 days |
Volatility | 35.10% |
Risk-free rate | 4.18% |
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, 2023 | Mar. 31, 2023 | |
Shares | ||
Restricted stock outstanding, beginning balance (in shares) | 467,058 | |
Granted (in shares) | 0 | |
Vested (in shares) | (134,558) | |
Forfeited/cancelled/expired (in shares) | 0 | |
Restricted stock outstanding, ending balance (in shares) | 332,500 | |
Weighted Average Fair Value | ||
Weighted average fair value, beginning balance | $ 18,035 | |
Weighted average exercise price granted | $ 0 | |
Weighted average exercise price vested | (5,138) | |
Weighted average exercise price forfeited/cancelled/expired | 0 | |
Weighted average fair value, ending balance | $ 12,897 |
LEASES - Disclosure of lease as
LEASES - Disclosure of lease assets and liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Leases [Abstract] | ||
Operating lease assets | $ 34,461 | $ 30,345 |
Operating lease liability | $ 34,929 | $ 30,320 |
LEASES - Schedule of lease obli
LEASES - Schedule of lease obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Operating Leases, Future Minimum Payments Receivable [Abstract] | ||
2024 | $ 8,915 | |
2025 | 10,040 | |
2026 | 9,249 | |
2027 | 7,567 | |
2028 | 5,492 | |
Thereafter | 4,793 | |
Total payments | 46,056 | |
Less: amounts representing interest | (11,127) | |
Operating lease liability | $ 34,929 | $ 30,320 |
Weighted average remaining lease term (in months) | 31 months | |
Weighted average discount rate | 13% |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||
Short term operating lease | $ 152 | |
Rent expense for office space | $ 860 | $ 543 |
ACQUISITIONS OF SUBSIDIARIES -
ACQUISITIONS OF SUBSIDIARIES - Narrative (Details) - USD ($) $ in Thousands | May 22, 2023 | Apr. 26, 2023 | Apr. 14, 2023 | Mar. 31, 2023 |
Arbuz Group | ||||
Asset Acquisition [Line Items] | ||||
Direct ownership interest (in percent) | 38.78% | 25% | ||
Aviata LLP | ||||
Asset Acquisition [Line Items] | ||||
Business acquisition, percentage of outstanding shares | 100% | |||
Business combination, recognized identifiable assets acquired and liabilities assumed, net | $ 9,523 | |||
Internet-Tourism | ||||
Asset Acquisition [Line Items] | ||||
Business acquisition, percentage of outstanding shares | 100% | |||
Business combination, recognized identifiable assets acquired and liabilities assumed, net | $ 1,359 | |||
Arbuz Group | ||||
Asset Acquisition [Line Items] | ||||
Business combination, recognized identifiable assets acquired and liabilities assumed, net | $ 11,685 | |||
Percentage of voting interests acquired | 8.36% | 5.42% | ||
Arbuz Group | Mr. Timur Turlov | ||||
Asset Acquisition [Line Items] | ||||
Percentage of voting interests acquired | 18.08% |
ACQUISITIONS OF SUBSIDIARIES _2
ACQUISITIONS OF SUBSIDIARIES - Schedule of Net Assets Acquired (Details) - USD ($) $ in Thousands | May 22, 2023 | Apr. 26, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 |
ASSETS | |||||
Restricted cash | $ 105 | ||||
Loans issued | $ 157 | ||||
LIABILITIES | |||||
Goodwill | $ 50,951 | $ 14,192 | $ 5,932 | ||
Aviata LLP | |||||
ASSETS | |||||
Cash and cash equivalents | 448 | ||||
Brokerage and other receivables | 1,313 | ||||
Loans issued | 1,078 | ||||
Fixed assets | 63 | ||||
Intangible assets | 8,779 | ||||
Other assets | 1,221 | ||||
TOTAL ASSETS | 13,007 | ||||
LIABILITIES | |||||
Trade payables | 1,606 | ||||
Current tax liabilities | 14 | ||||
Other liabilities | 1,864 | ||||
TOTAL LIABILITIES | 3,484 | ||||
Net assets acquired | 9,523 | ||||
Goodwill | 21,231 | ||||
Total purchase price | 30,754 | ||||
Internet-Tourism | |||||
ASSETS | |||||
Cash and cash equivalents | 523 | ||||
Brokerage and other receivables | 838 | ||||
Loans issued | 62 | ||||
Fixed assets | 89 | ||||
Intangible assets | 959 | ||||
Other assets | 591 | ||||
TOTAL ASSETS | 3,062 | ||||
LIABILITIES | |||||
Trade payables | 644 | ||||
Other liabilities | 1,059 | ||||
TOTAL LIABILITIES | 1,703 | ||||
Net assets acquired | 1,359 | ||||
Goodwill | 568 | ||||
Total purchase price | $ 1,927 | ||||
Arbuz Group | |||||
ASSETS | |||||
Cash and cash equivalents | 731 | ||||
Brokerage and other receivables | 591 | ||||
Loans issued | 2,383 | ||||
Intangible assets | 15,154 | ||||
Right-of-use asset | 1,097 | ||||
Other assets | 5,002 | ||||
TOTAL ASSETS | 25,115 | ||||
LIABILITIES | |||||
Trade payables | 2,559 | ||||
Current tax liabilities | 11 | ||||
Lease liability | 1,186 | ||||
Other liabilities | 9,674 | ||||
TOTAL LIABILITIES | 13,430 | ||||
Net assets acquired | 11,685 | ||||
Goodwill | 14,961 | ||||
Total purchase price | 13,281 | ||||
Revaluation of purchase price previously held interest | 1,040 | ||||
Fair value of NCI | 12,325 | ||||
Total purchase price | $ 26,646 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
Unfunded commitments under lines of credits and guarantees | $ 51,712 | $ 20,617 |
Bank guarantees | 7,413 | 7,001 |
Total | $ 59,125 | $ 27,618 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) | 3 Months Ended |
Jun. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of segments | 4 |
Number of Operating Segments | 1 |
SEGMENT REPORTING - Results by
SEGMENT REPORTING - Results by segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||
Fee and commission income | $ 98,703 | $ 89,446 |
Net gain/(loss) on trading securities | 31,816 | 4,433 |
Interest income | 149,349 | 48,563 |
Insurance underwriting income | 44,889 | 24,241 |
Net gain/(loss) on foreign exchange operations | 19,301 | 4,593 |
Net (loss)/gain on derivative | (30,605) | 1,266 |
Other income/(expense) | 2,757 | (32) |
TOTAL REVENUE, NET | 316,210 | 172,510 |
Fee and commission expense | 28,684 | 23,315 |
Interest expense | 95,046 | 40,071 |
Insurance claims incurred, net of reinsurance | 21,514 | 16,692 |
Payroll and bonuses | 31,630 | 16,413 |
Professional services | 6,625 | 4,255 |
Stock compensation expense | 1,233 | 1,876 |
Advertising expense | 8,100 | 3,837 |
General and administrative expense | 24,475 | 11,618 |
Allowance for credit losses | 14,326 | 2,428 |
TOTAL EXPENSE | 231,633 | 120,505 |
INCOME BEFORE INCOME TAX | 84,577 | 52,005 |
Income tax expense | (16,656) | (8,879) |
INCOME FROM CONTINUING OPERATIONS | 67,921 | 43,126 |
Central Asia and Eastern Europe | ||
Segment Reporting Information [Line Items] | ||
Fee and commission income | 73,385 | 8,250 |
Net gain/(loss) on trading securities | 31,594 | 21,589 |
Interest income | 142,038 | 39,852 |
Insurance underwriting income | 44,889 | 24,241 |
Net gain/(loss) on foreign exchange operations | 19,923 | 4,267 |
Net (loss)/gain on derivative | (30,778) | 1,266 |
Other income/(expense) | 1,732 | (93) |
TOTAL REVENUE, NET | 282,783 | 99,372 |
Fee and commission expense | 23,798 | 10,714 |
Interest expense | 86,664 | 31,968 |
Insurance claims incurred, net of reinsurance | 21,514 | 16,692 |
Payroll and bonuses | 24,167 | 11,730 |
Professional services | 562 | 721 |
Stock compensation expense | 829 | 1,101 |
Advertising expense | 3,731 | 2,149 |
General and administrative expense | 16,028 | 5,066 |
Allowance for credit losses | 13,771 | 2,431 |
TOTAL EXPENSE | 191,064 | 82,572 |
INCOME BEFORE INCOME TAX | 91,719 | 16,800 |
Income tax expense | (27) | (61) |
INCOME FROM CONTINUING OPERATIONS | 91,692 | 16,739 |
Europe, excluding Eastern Europe | ||
Segment Reporting Information [Line Items] | ||
Fee and commission income | 19,166 | 80,062 |
Net gain/(loss) on trading securities | 214 | (15,425) |
Interest income | 5,914 | 4,269 |
Insurance underwriting income | 0 | 0 |
Net gain/(loss) on foreign exchange operations | (320) | 570 |
Net (loss)/gain on derivative | 173 | 0 |
Other income/(expense) | 217 | (2) |
TOTAL REVENUE, NET | 25,364 | 69,474 |
Fee and commission expense | 4,572 | 12,427 |
Interest expense | 6,812 | 2,696 |
Insurance claims incurred, net of reinsurance | 0 | 0 |
Payroll and bonuses | 4,754 | 2,732 |
Professional services | 2,738 | 1,272 |
Stock compensation expense | 91 | 156 |
Advertising expense | 4,026 | 1,681 |
General and administrative expense | 4,029 | 5,724 |
Allowance for credit losses | 552 | 0 |
TOTAL EXPENSE | 27,574 | 26,688 |
INCOME BEFORE INCOME TAX | (2,210) | 42,786 |
Income tax expense | (2,430) | (7,223) |
INCOME FROM CONTINUING OPERATIONS | (4,640) | 35,563 |
The United States | ||
Segment Reporting Information [Line Items] | ||
Fee and commission income | 6,152 | 1,134 |
Net gain/(loss) on trading securities | (173) | (1,731) |
Interest income | 1,387 | 4,442 |
Insurance underwriting income | 0 | 0 |
Net gain/(loss) on foreign exchange operations | (362) | (234) |
Net (loss)/gain on derivative | 0 | 0 |
Other income/(expense) | 838 | 6 |
TOTAL REVENUE, NET | 7,842 | 3,617 |
Fee and commission expense | 265 | 153 |
Interest expense | 1,570 | 5,407 |
Insurance claims incurred, net of reinsurance | 0 | 0 |
Payroll and bonuses | 2,293 | 1,745 |
Professional services | 3,280 | 2,206 |
Stock compensation expense | 313 | 619 |
Advertising expense | 95 | 7 |
General and administrative expense | 4,113 | 690 |
Allowance for credit losses | 3 | (3) |
TOTAL EXPENSE | 11,932 | 10,824 |
INCOME BEFORE INCOME TAX | (4,090) | (7,207) |
Income tax expense | (14,199) | (1,605) |
INCOME FROM CONTINUING OPERATIONS | (18,289) | (8,812) |
Middle East/Caucasus | ||
Segment Reporting Information [Line Items] | ||
Fee and commission income | 0 | 0 |
Net gain/(loss) on trading securities | 181 | 0 |
Interest income | 10 | 0 |
Insurance underwriting income | 0 | 0 |
Net gain/(loss) on foreign exchange operations | 60 | (10) |
Net (loss)/gain on derivative | 0 | 0 |
Other income/(expense) | (30) | 57 |
TOTAL REVENUE, NET | 221 | 47 |
Fee and commission expense | 49 | 21 |
Interest expense | 0 | 0 |
Insurance claims incurred, net of reinsurance | 0 | 0 |
Payroll and bonuses | 416 | 206 |
Professional services | 45 | 56 |
Stock compensation expense | 0 | 0 |
Advertising expense | 248 | 0 |
General and administrative expense | 305 | 138 |
Allowance for credit losses | 0 | 0 |
TOTAL EXPENSE | 1,063 | 421 |
INCOME BEFORE INCOME TAX | (842) | (374) |
Income tax expense | 0 | 10 |
INCOME FROM CONTINUING OPERATIONS | $ (842) | $ (364) |
SEGMENT REPORTING - Net assets
SEGMENT REPORTING - Net assets by segment (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 6,539,765 | $ 5,084,558 |
Total liabilities | 5,714,029 | 4,313,822 |
Net assets | 825,736 | 770,736 |
Central Asia and Eastern Europe | ||
Segment Reporting Information [Line Items] | ||
Total assets | 5,674,747 | 4,303,126 |
Total liabilities | 5,202,661 | 3,868,326 |
Net assets | 472,086 | 434,800 |
Europe, excluding Eastern Europe | ||
Segment Reporting Information [Line Items] | ||
Total assets | 785,218 | 677,425 |
Total liabilities | 480,761 | 384,921 |
Net assets | 304,457 | 292,504 |
The United States | ||
Segment Reporting Information [Line Items] | ||
Total assets | 75,453 | 101,365 |
Total liabilities | 24,372 | 60,198 |
Net assets | 51,081 | 41,167 |
Middle East/Caucasus | ||
Segment Reporting Information [Line Items] | ||
Total assets | 4,347 | 2,642 |
Total liabilities | 6,235 | 377 |
Net assets | $ (1,888) | $ 2,265 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) $ in Thousands | Jul. 26, 2023 USD ($) |
ReKassa PCI Reader | Subsequent event | |
Subsequent Event [Line Items] | |
Business combination, consideration transferred | $ 2,500 |