Cover
Cover - shares | 9 Months Ended | |
Dec. 31, 2023 | Feb. 09, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2023 | |
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 $0.001 per share | |
Trading Symbol | FRHC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 59,659,191 | |
Entity Central Index Key | 0000924805 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2024 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
ASSETS | ||
Cash and cash equivalents (including $— and $35,549 with related parties) | $ 561,883 | $ 581,417 |
Restricted cash (including $67,215 and $114,885 with related parties) | 384,553 | 445,528 |
Trading securities (including $16,220 and $556 with related parties) | 3,680,453 | 2,412,556 |
Assets measured at fair value | 202,497 | 239,053 |
Margin lending, brokerage and other receivables, net (including $43,241 and $295,611 due from related parties) | 961,392 | 376,329 |
Loans issued (including $144,289 and $121,316 to related parties) | 1,346,005 | 826,258 |
Fixed assets, net | 78,099 | 54,017 |
Intangible assets, net | 46,771 | 17,615 |
Goodwill | 52,238 | 14,192 |
Right-of-use asset | 34,180 | 30,345 |
Insurance contract assets | 12,728 | 13,785 |
Other assets, net (including $533 and $16,102 with related parties) | 88,244 | 73,463 |
TOTAL ASSETS | 7,449,043 | 5,084,558 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Securities repurchase agreement obligations | 2,889,173 | 1,517,416 |
Customer liabilities (including $112,701 and $130,210 to related parties) | 2,248,042 | 1,925,247 |
Margin lending and trade payables (including $474 and $3,721 to related parties) | 145,804 | 122,900 |
Liabilities from insurance activity | 242,179 | 182,502 |
Current income tax liability | 27,711 | 4,547 |
Debt securities issued | 266,310 | 60,025 |
Lease liability | 34,614 | 30,320 |
Liability arising from continuing involvement | 494,513 | 440,805 |
Other liabilities (including $11,783 and $46 to related parties) | 61,447 | 30,060 |
TOTAL LIABILITIES | 6,409,793 | 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 and 59,659,191 shares issued and outstanding as of December 31, 2023, and March 31, 2023, respectively | 59 | 59 |
Additional paid in capital | 167,465 | 164,162 |
Retained earnings | 903,517 | 647,064 |
Accumulated other comprehensive loss | (34,845) | (34,000) |
TOTAL FRHC SHAREHOLDERS’ EQUITY | 1,036,196 | 777,285 |
Non-controlling interest | 3,054 | (6,549) |
TOTAL SHAREHOLDERS’ EQUITY | 1,039,250 | 770,736 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 7,449,043 | $ 5,084,558 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Cash and cash equivalents | $ 561,883 | $ 581,417 |
Total restricted cash | 384,553 | 445,528 |
Margin lending, brokerage and other receivables, net | 961,392 | 376,329 |
Loans issued | 1,346,005 | 826,258 |
Other assets, net | 88,244 | 73,463 |
Customer liabilities | 2,248,042 | 1,925,247 |
Total margin lending and trade payables | 145,804 | 122,900 |
Other liabilities | $ 61,447 | $ 30,060 |
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 | $ 0 | $ 35,549 |
Total restricted cash | 67,215 | 114,885 |
Margin lending, brokerage and other receivables, net | 43,241 | 295,611 |
Loans issued | 144,289 | 121,316 |
Other assets, net | 533 | 16,102 |
Customer liabilities | 112,701 | 130,210 |
Total margin lending and trade payables | 474 | 3,721 |
Other liabilities | $ 11,783 | $ 46 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Revenue: | |||||
Fee and commission income (including $30,112 and $44,590 from related parties) | $ 120,159 | $ 80,883 | $ 330,565 | $ 253,486 | |
Net (loss)/gain on trading securities | (5,089) | 25,456 | 77,498 | 38,894 | |
Interest income (including $7,566 and $10,796 from related parties) | 226,445 | 80,255 | 588,857 | 187,817 | |
Insurance underwriting income | 79,017 | 28,557 | 181,882 | 78,998 | |
Net gain on foreign exchange operations | 38,825 | 20,866 | 54,430 | 30,014 | |
Net loss on derivative | (42,568) | (21,469) | (71,795) | (22,523) | |
Other income/(expense) | 1,845 | (570) | 8,988 | (79) | |
TOTAL REVENUE, NET | 418,634 | 213,978 | 1,170,425 | 566,607 | |
Expense: | |||||
Fee and commission expense (including $55 and $2,304 from related parties) | 42,818 | 18,314 | 103,116 | 60,068 | |
Interest expense | 131,223 | 52,037 | 365,650 | 132,971 | |
Insurance claims incurred, net of reinsurance | 40,989 | 17,419 | 96,491 | 51,586 | |
Payroll and bonuses | 45,083 | 21,610 | 116,711 | 55,252 | |
Professional services | 6,217 | 5,901 | 24,793 | 14,174 | |
Stock compensation expense | 1,039 | 2,939 | 3,303 | 6,519 | |
Advertising expense | 11,066 | 3,730 | 27,805 | 9,479 | |
General and administrative expense (including $1,502 and $600 from related parties) | 32,106 | 16,428 | 86,211 | 40,943 | |
(Recovery)/Allowance for expected credit losses | (3,526) | 24,140 | 15,462 | 30,294 | |
TOTAL EXPENSE | 307,015 | 162,518 | 839,542 | 401,286 | |
INCOME BEFORE INCOME TAX | 111,619 | 51,460 | 330,883 | 165,321 | |
Income tax expense | (15,544) | (5,069) | (51,408) | (26,567) | |
INCOME FROM CONTINUING OPERATIONS | 96,075 | 46,391 | 279,475 | 138,754 | |
Income before income tax expense of discontinued operations | 0 | 13,667 | 0 | 14,467 | |
Income tax benefit/(expense) of discontinued operations | 0 | 2,342 | 0 | (4,538) | |
Income from discontinued operations | 0 | 16,009 | 0 | 9,929 | |
NET INCOME | 96,075 | 62,400 | 279,475 | 148,683 | |
Less: Net loss attributable to non-controlling interest in subsidiary | (293) | (464) | (842) | (1,508) | |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 96,368 | 62,864 | 280,317 | 150,191 | |
OTHER COMPREHENSIVE INCOME | |||||
Change in unrealized gain/(loss) on investments available-for-sale, net of tax effect | 1,486 | (54) | 5,893 | 2,309 | |
Reclassification adjustment for net realized (loss)/gain on available-for-sale investments disposed of in the period, net of tax effect | (1,881) | 320 | (3,145) | 197 | |
Foreign currency translation adjustments | 28,100 | (5,611) | (3,593) | (301) | |
OTHER COMPREHENSIVE INCOME/(LOSS) | 27,705 | (5,345) | (845) | 2,205 | |
COMPREHENSIVE INCOME BEFORE NON-CONTROLLING INTERESTS | 123,780 | 57,055 | 278,630 | 150,888 | |
Less: Comprehensive loss attributable to non-controlling interest in subsidiary | (293) | (464) | (842) | (1,508) | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 124,073 | $ 57,519 | $ 279,472 | $ 152,396 | |
EARNINGS PER COMMON SHARE (In U.S. dollars): | |||||
Earnings from continuing operations per common share - basic (in USD per share) | $ 1.65 | $ 0.79 | $ 4.79 | $ 2.37 | |
Earnings from continuing operations per common share - diluted (in USD per share) | 1.63 | 0.78 | 4.73 | 2.33 | |
Earnings from discontinued operations per common share - basic (Restated) (in USD per share) | [1] | 0 | 0.27 | 0 | 0.17 |
Earnings from discontinued operations per common share - diluted (Restated) (in USD per share) | [1] | 0 | 0.27 | 0 | 0.17 |
Earnings per common share - basic (Restated) (in USD per share) | [1] | 1.65 | 1.06 | 4.79 | 2.54 |
Earnings per common share - diluted (Restated) (in USD per share) | [1] | $ 1.63 | $ 1.05 | $ 4.73 | $ 2.50 |
Weighted average number of shares, basic (in shares) | 58,578,691,000 | 58,678,730,000 | 58,557,577,000 | 58,642,637,000 | |
Weighted average number of shares, diluted (in shares) | 59,289,256,000 | 59,522,701,000 | 59,287,086,000 | 59,527,743,000 | |
[1] Please see Note 2 for further information regarding the restatement. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND STATEMENTS OF OTHER COMPREHENSIVE INCOME (Unaudited) (Parenthetical)) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Fee and commission income | $ 120,159 | $ 80,883 | $ 330,565 | $ 253,486 |
Interest income | 226,445 | 80,255 | 588,857 | 187,817 |
Fee and commission expense | 42,818 | 18,314 | 103,116 | 60,068 |
General and administrative expense | 32,106 | 16,428 | 86,211 | 40,943 |
Related party | ||||
Fee and commission income | 30,112 | 44,590 | 66,029 | 181,396 |
Interest income | 7,566 | 10,796 | 22,650 | 21,659 |
Fee and commission expense | 55 | 2,304 | 235 | 2,657 |
General and administrative expense | $ 1,502 | $ 600 | $ 9,063 | $ 803 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash Flows From Operating Activities | ||
NET INCOME | $ 279,475 | $ 148,683 |
Net income/(loss) from discontinued operations | 0 | 9,929 |
Net income from continued operations | 279,475 | 138,754 |
Adjustments to reconcile net income used in operating activities: | ||
Depreciation and amortization | 11,089 | 3,502 |
Amortization of deferred acquisition costs | 66,023 | 14,061 |
Noncash lease expense | 6,536 | 3,453 |
Change in deferred taxes | 3,051 | (3,392) |
Stock compensation expense | 3,303 | 6,520 |
Unrealized gain on trading securities | (16,222) | (65,684) |
Unrealized gain on derivatives | (886) | 0 |
Net realized gain on available-for-sale securities | (3,145) | 0 |
Net change in accrued interest | (108,129) | (35,984) |
Revaluation of purchase price previously held interest in Arbuz | (1,040) | 0 |
Change in insurance reserves | 58,118 | 42,236 |
Change in unused vacation reserves | 5,538 | 0 |
Allowance for expected credit losses | 15,462 | 30,294 |
Changes in operating assets and liabilities: | ||
Trading securities | (1,149,192) | (630,879) |
Margin lending, brokerage and other receivables (including $251,744 and $(53,490) changes from related parties) | (603,701) | (270,725) |
Insurance contract assets | 1,508 | 6,460 |
Other assets | (83,169) | (25,119) |
Securities sold, not yet purchased – at fair value | 0 | (13,865) |
Brokerage customer liabilities (including $(17,509) and $25,236 changes from related parties) | 71,982 | 240,362 |
Current income tax liability | 23,149 | (14,556) |
Margin lending and trade payables (including $(2,765) and $(34,382) changes from related parties) | 30,593 | 92,225 |
Lease liabilities | (6,458) | (3,470) |
Liabilities from insurance activity | 1,879 | (22,581) |
Other liabilities | 20,881 | 10,432 |
Net cash flows used in operating activities from continuing operations | (1,373,355) | (497,956) |
Net cash flows from operating activities from discontinued operations | 0 | 32,165 |
Net cash flows used in operating activities | (1,373,355) | (465,791) |
Cash Flows Used In Investing Activities | ||
Purchase of fixed assets | (36,270) | (27,345) |
Net change in loans issued to customers | (547,754) | (564,759) |
Purchase of available-for-sale securities, at fair value | (169,653) | (205,781) |
Proceeds from sale of available-for-sale securities, at fair value | 211,390 | 196,799 |
Investment in London Almaty | 0 | (16,343) |
Consideration paid for acquisition of Freedom Life | 0 | (13,630) |
Consideration paid for Internet Tourism | (1,028) | 0 |
Consideration paid for Aviata | (16,098) | 0 |
Consideration paid for Arbuz | (13,281) | 0 |
Consideration paid for Ticketon | (3,003) | 0 |
Prepayment on acquisition | (17,810) | 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 | 2,461 | 11,385 |
Net cash flows used in investing activities from continuing operations | (593,033) | (619,674) |
Net cash flows used in investing activities from discontinued operations | 0 | (21,647) |
Net cash flows used in investing activities | (593,033) | (641,321) |
Cash Flows From Financing Activities | ||
Proceeds from securities repurchase agreement obligations | 1,370,587 | 388,675 |
Proceeds from issuance of debt securities | 206,371 | 23,861 |
Repurchase of debt securities | 0 | (23,387) |
Repurchase of mortgage loans under the State Program | (30,317) | (7,117) |
Funds received under state program for financing of mortgage loans | 75,817 | 318,330 |
Net change in bank customer deposits | 271,572 | 779,044 |
Purchase of non-controlling interest in Arbuz | (3,228) | 0 |
Capital contributions | 0 | 677 |
Proceeds from loans received | 1,526 | 0 |
Net cash flows from financing activities from continuing operations | 1,892,328 | 1,480,083 |
Net cash flows from financing activities from discontinued operations | 0 | 26,105 |
Net cash flows from financing activities | 1,892,328 | 1,506,188 |
Effect of changes in foreign exchange rates on cash and cash equivalents from continued operations | (6,449) | 23,591 |
Effect of changes in foreign exchange rates on cash and cash equivalents from discontinued operations | 0 | 61,473 |
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (80,509) | 484,140 |
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 | 946,436 | 1,114,074 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD FROM DISCONTINUED OPERATIONS | 0 | 600,366 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | 946,436 | 1,714,440 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 350,106 | 133,286 |
Income tax paid | 23,652 | 47,262 |
Supplemental non-cash disclosures: | ||
Operating lease right-of-use assets obtained/disposed of in exchange for operating lease obligations during the period, net | 9,426 | 19,089 |
Cash and cash equivalents | 561,883 | 664,095 |
Restricted cash | 384,553 | 449,979 |
Total cash, cash equivalents and restricted cash shown as in the statement of cash flows | $ 946,436 | $ 1,114,074 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - Parenthetical - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Cash Flows [Abstract] | ||
Margin lending, brokerage and other receivables, related parties | $ 251,744 | $ (53,490) |
Brokerage customer liabilities, related parties | (17,509) | 25,236 |
Margin lending and trade payables, related parties | $ (2,765) | $ (34,382) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Purchase of Arbuz shares | Purchase of ReKassa shares | Total equity attributable to the shareholders' | Total equity attributable to the shareholders' Purchase of Arbuz shares | Total equity attributable to the shareholders' Purchase of ReKassa shares | Common Stock | Additional paid in capital | Retained earnings | Retained earnings Purchase of Arbuz shares | Retained earnings Purchase of ReKassa shares | Accumulated other comprehensive loss | Non- controlling interest | Non- controlling interest Purchase of Arbuz shares | Non- controlling interest Purchase of ReKassa shares |
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 | 10,746 | 10,746 | 10,746 | ||||||||||||
Contribution of shareholder | 677 | 677 | 677 | ||||||||||||
Acquisition of insurance companies | (26,588) | (26,588) | (26,588) | ||||||||||||
Foreign currency translation adjustments, net of tax effect | (301) | (301) | (301) | ||||||||||||
Other comprehensive income | 2,506 | 2,506 | 2,506 | ||||||||||||
Net income/(loss) | 148,683 | 150,191 | 150,191 | (1,508) | |||||||||||
Ending balance (in shares) at Dec. 31, 2022 | 59,542,212,000 | ||||||||||||||
Equity, end of period at Dec. 31, 2022 | 682,331 | 690,834 | $ 59 | 159,580 | 592,115 | (60,920) | (8,503) | ||||||||
Beginning balance (in shares) at Sep. 30, 2022 | 59,542,212,000 | ||||||||||||||
Equity, beginning of period at Sep. 30, 2022 | 621,331 | 629,370 | $ 59 | 155,635 | 529,251 | (55,575) | (8,039) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Stock based compensation | 3,945 | 3,945 | 3,945 | ||||||||||||
Foreign currency translation adjustments, net of tax effect | (5,611) | (5,611) | (5,611) | ||||||||||||
Other comprehensive income | 266 | 266 | 266 | ||||||||||||
Net income/(loss) | 62,400 | 62,864 | 62,864 | (464) | |||||||||||
Ending balance (in shares) at Dec. 31, 2022 | 59,542,212,000 | ||||||||||||||
Equity, end of period at Dec. 31, 2022 | $ 682,331 | 690,834 | $ 59 | 159,580 | 592,115 | (60,920) | (8,503) | ||||||||
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 (Cumulative adjustment from adoption of ASC 326) at Mar. 31, 2023 | (22,772) | (22,772) | (22,772) | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Stock based compensation | 3,303 | 3,303 | 3,303 | ||||||||||||
Disposal of FF Ukraine | 0 | (6,549) | (6,549) | 6,549 | |||||||||||
Purchase of subsidiary shares | $ 9,097 | $ 256 | $ 5,457 | $ 0 | $ 5,457 | $ 3,640 | $ 256 | ||||||||
Foreign currency translation adjustments, net of tax effect | (3,593) | (3,593) | (3,593) | ||||||||||||
Other comprehensive income | 2,748 | 2,748 | 2,748 | ||||||||||||
Net income/(loss) | $ 279,475 | 280,317 | 280,317 | (842) | |||||||||||
Ending balance (in shares) at Dec. 31, 2023 | 59,659,191 | 59,659,191,000 | |||||||||||||
Equity, end of period at Dec. 31, 2023 | $ 1,039,250 | 1,036,196 | $ 59 | 167,465 | 903,517 | (34,845) | 3,054 | ||||||||
Beginning balance (in shares) at Sep. 30, 2023 | 59,659,191,000 | ||||||||||||||
Equity, beginning of period at Sep. 30, 2023 | 914,431 | 911,084 | $ 59 | 166,426 | 807,149 | (62,550) | 3,347 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Stock based compensation | 1,039 | 1,039 | 1,039 | ||||||||||||
Foreign currency translation adjustments, net of tax effect | 28,100 | 28,100 | 28,100 | ||||||||||||
Other comprehensive income | (395) | (395) | (395) | ||||||||||||
Net income/(loss) | $ 96,075 | 96,368 | 96,368 | (293) | |||||||||||
Ending balance (in shares) at Dec. 31, 2023 | 59,659,191 | 59,659,191,000 | |||||||||||||
Equity, end of period at Dec. 31, 2023 | $ 1,039,250 | $ 1,036,196 | $ 59 | $ 167,465 | $ 903,517 | $ (34,845) | $ 3,054 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 9 Months Ended |
Dec. 31, 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, Poland, 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 December 31, 2023, the Company owned directly, or through subsidiaries, the following companies: Name of subsidiary Jurisdiction of Incorporation Number of subsidiaries Business Area Freedom Finance JSC ("Freedom KZ") Kazakhstan 3 Securities broker-dealer Freedom Finance Global PLC ( "Freedom Global") Kazakhstan — Securities broker-dealer Bank Freedom Finance Kazakhstan JSC ("Freedom Bank KZ") Kazakhstan 1 Commercial bank Freedom Finance Life JSC ("Freedom Life") Kazakhstan — Life/health insurance Freedom Finance Insurance JSC ("Freedom Insurance") Kazakhstan — General insurance Ticketon Events LLP ("Ticketon") Kazakhstan 3 Online ticket sales Freedom Finance Special Purpose Company LTD ("Freedom SPC") Kazakhstan — Issuance and placement of debt securities Freedom Finance Commercial LLP Kazakhstan — Sales consulting ITS Tech Limited Kazakhstan — IT support Freedom Technologies LLP ("Paybox") Kazakhstan 5 Payment services Aviata LLP ("Aviata") Kazakhstan — Online travel ticket aggregator Internet-Tourism LLP ("Internet Tourism) Kazakhstan — Online travel ticket aggregator Arbuz Group LLP ("Arbuz") Kazakhstan 3 Online retail trade and e-commerce Comrun LLP ("ReKassa") Kazakhstan — Mobile and web application Freedom Telecom Holding Limited ("Freedom Telecom") Kazakhstan 2 Telecommunications Freedom Kazakhstan PC Ltd Kazakhstan 6 Non-financial Freedom Advertising Ltd Kazakhstan — Advertising Freedom Shapagat Corporate Fund Kazakhstan — Non-profit FRHC Fractional SPC LTD Kazakhstan — Issuance and placement of debt securities Foreign Enterprise LLC Freedom Finance Uzbekistan — Securities broker-dealer Freedom Finance Armenia LLC ("Freedom AR") Armenia — Securities broker-dealer Freedom Finance Azerbaijan LLC Azerbaijan — Financial educational center Freedom Finance FZE. UAE — Office of international organization Freedom Management Ltd. UAE — Consulting Freedom Finance Turkey LLC Turkey — Financial consulting Freedom Finance Europe Limited ("Freedom EU") Cyprus 2 Securities broker-dealer Freedom Finance Technologies Ltd Cyprus — IT development Freedom Property Ltd Cyprus — Asset management Freedom Finance Germany GmbH Germany — Tied agent of Freedom EU Freedom Prime UK Limited ("Prime UK") UK — Management consulting Freedom Structured Products PLC Cyprus — Financial services Prime Executions, Inc. ("PrimeEx") USA — Securities broker-dealer and investment banking FFIN Securities, Inc. USA — Dormant Freedom U.S. Market LLC USA 1 Management company LD Micro ("LD Micro") USA — Event platform As at December 31, 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 December 31, 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 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 | 9 Months Ended |
Dec. 31, 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 December 31, 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 December 31, 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); • Commissions on agency fees (the Company earns commissions on agency fees through its facilitation of transactions between clients); • Commissions on payment processing; 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, right of claim for purchased retail loans and subordinated loans. Mortgage loans consist of loans provided to individuals to purchase residential properties, which is used as collateral for the loan. Uncollateralized bank customer loans consist of loans provided through credit cards to individuals, individual entrepreneurs 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 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. 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. Write-off Loans are written off either partially or in their entirety only when the Group has stopped pursuing the recovery. If the amount to be written off is greater than the accumulated loss allowance, the difference is first treated as an addition to the allowance that is then applied against the gross carrying amount. Any subsequent recoveries are credited to expected credit loss expense. The loan or part of the loan can be fully or partially written off in the following cases: • death of the borrower; • bankruptcy of the borrower; • entry into force of a court decision on refusal or partial satisfaction of the Group's claims for debt collection; • conversion of the pledged property into the ownership of the Group; • assignment by the Group of its rights of claim to third parties. Modifications Where possible, the Group seeks to restructure loans rather than to take possession of collateral. This may involve extending the payment arrangements and the agreement of new loan conditions. The Group derecognizes loan when the terms and conditions have been renegotiated to the extent that, substantially, it becomes a new loan, with the difference recognized as a derecognition gain or loss, to the extent that an impairment loss has not already been recorded. When assessing whether or not to derecognize a loan to a customer, amongst others, the Group considers the following factors: change in currency of the loan, change in counterparty and modifications. 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 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 individual entrepreneurs 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 portfolios may include the following: GDP, Brent oil price 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. For defaulted loans, PD 100% is applied, for non-impaired loans PD for the average life of the pool is recognized at inception. As of the reporting date, the Company apply statistics for State Credit Bureau JSC. To estimate the loss from default (LGD) for loans with common risk characteristics, the Group uses for collateralized loans - returns through the sale of collateral and for uncollateralized loans - through repayment of debt in cash. When calculating LGD from the sale of collateral for collateralized loans, the Group takes into account the latest market value of the collateral on the calculation date. First, liquidity ratios are applied to market values based on the type of collateral, after which the value of the collateral is discounted at the original effective interest rate of the loan agreement for the risk periods corresponding to the types of collateral. The calculation methodology is the same for both non-impaired and defaulted loans. In calculating LGD from cash repayments of uncollateralized loans, the Group uses the average monthly share of repayments of defaulted loans over the past 5 years, assuming that they are discounted at the weighted average effective interest rate. 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, 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, 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. 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. The Group primarily offers unsecured loans for individual entrepreneurs, constituting the majority of its uncollateralized bank customer loans. 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. In the loan portfolio of individuals, a 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. 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. 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 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/(loss) 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 and other income, respectively, 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/(loss) 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 Gr |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 9 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS As of December 31, 2023, and March 31, 2023, cash and cash equivalents consisted of the following: December 31, 2023 March 31, 2023 Short term deposits in National Bank (Kazakhstan) $ 237,145 $ 357,454 Short term deposits in commercial banks 129,915 83,755 Securities purchased under reverse repurchase agreements 107,262 29,812 Petty cash in bank vault and on hand 49,717 35,998 Short term deposits in stock exchanges 34,696 31,691 Short term deposits on brokerage accounts 2,793 37,417 Overnight deposits 429 1,926 Cash in transit 219 3,364 Short term deposits in the Central Depository (Kazakhstan) 54 — Allowance for Cash and cash equivalents (347) — Total cash and cash equivalents $ 561,883 $ 581,417 As of December 31, 2023, and March 31, 2023, cash and cash equivalents balance included short-term collateralized securities received under reverse repurchase agreements which the Group concludes mainly on KASE. KASE, in turn, guarantees payments to the counterparty. The terms of the short-term collateralized securities received under reverse repurchase agreements as of December 31, 2023, and March 31, 2023 are presented below: December 31, 2023 Interest rates and remaining contractual maturity of the agreements Average interest rate Up to 30 days Securities purchased under reverse repurchase agreements Non-US sovereign debt 9.77 % $ 39,123 Corporate equity 16.32 % 34,417 US sovereign debt 5.37 % 23,693 Corporate debt 5.30 % 10,029 Total $ 107,262 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 December 31, 2023, and March 31, 2023, was $107,420 and $31,165, respectively. As of December 31, 2023 and March 31, 2023, securities purchased under reverse repurchase agreements included accrued interest in the amount of $82 and $11, with a weighted average maturity of 4 days and 9 days, respectively. All securities repurchase agreements transactions were executed through the Kazakhstan Stock Exchange. |
RESTRICTED CASH
RESTRICTED CASH | 9 Months Ended |
Dec. 31, 2023 | |
Restricted Cash [Abstract] | |
RESTRICTED CASH | RESTRICTED CASH Restricted cash for the periods ended December 31, 2023, and March 31, 2023, consisted of: December 31, 2023 March 31, 2023 Brokerage customers’ cash $ 280,404 $ 328,435 Guaranty deposits 104,838 116,628 Restricted bank accounts 8,013 10,436 Deferred distribution payments 23 23 Allowance for restricted cash (8,725) (9,994) Total restricted cash $ 384,553 $ 445,528 |
TRADING AND AVAILABLE-FOR-SALE
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE | 9 Months Ended |
Dec. 31, 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 December 31, 2023, and March 31, 2023, trading and available-for-sale securities consisted of: December 31, 2023 March 31, 2023 Non-U.S. sovereign debt $ 2,370,508 $ 1,029,857 Corporate debt 1,165,732 1,269,879 Corporate equity 99,589 65,741 U.S. sovereign debt 43,231 45,022 Exchange traded notes 1,393 2,057 Total trading securities $ 3,680,453 $ 2,412,556 December 31, 2023 March 31, 2023 Corporate debt $ 127,402 $ 191,082 Non-U.S. sovereign debt 62,987 40,162 U.S. sovereign debt 12,108 7,809 Total available-for-sale securities, at fair value $ 202,497 $ 239,053 The following tables present maturity analysis for available-for-sale securities as of December 31, 2023, and March 31, 2023: December 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 34,691 48,898 43,803 10 127,402 Non-US sovereign debt 43,581 7,054 5,718 6,634 62,987 US sovereign debt 9,145 — 1,700 1,263 12,108 Total available-for-sale securities, at fair value $ 87,417 $ 55,952 $ 51,221 $ 7,907 $ 202,497 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 December 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 (Fitch: BBB credit rating) in the amount of $2,357,330 and Kazakhstan Sustainability Fund JSC (Fitch: BBB credit rating) in the amount of $721,133. 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. As of December 31, 2023 and March 31, 2023 the Group recognized $342 and $390, respectively, 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 December 31, 2023, and March 31, 2023: Weighted Average Total Fair Value Measurements as of December 31, 2023 using Quoted Prices in Significant Significant Unobservable (Level 1) (Level 2) (Level 3) Non-U.S. sovereign debt 12.51 % $ 2,370,508 $ 1,443,144 $ 927,330 $ 34 Corporate debt 15.52 % 1,165,732 397,767 751,490 16,475 Corporate equity — % 99,589 77,577 1,603 20,409 U.S. sovereign debt 4.71 % 43,231 43,231 — — Exchange traded notes — % 1,393 908 485 — Total trading securities $ 3,680,453 $ 1,962,627 $ 1,680,908 $ 36,918 Corporate debt 16.67 % $ 127,402 $ 40,645 $ 86,757 $ — Non-US sovereign debt 13.51 % 62,987 50,557 12,430 — US sovereign debt 4.37 % 12,108 12,108 — — Total available-for-sale securities, at fair value $ 202,497 $ 103,310 $ 99,187 $ — 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 December 31, 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 December 31, 2023 Significant Unobservable Inputs % Corporate debt DCF $ 16,220 Discount rate 11.1% Estimated number of years 2 years Corporate debt DCF 255 Discount rate 74.0% Estimated number of years 3 months Corporate equity DCF 20,022 Discount rate 13.0% Estimated number of years 4 years, 6 months Non-U.S. sovereign debt DCF 34 Discount rate 48.8% Estimated number of years 11 years Corporate equity DCF 387 Discount rate 58.8% Estimated number of years 9 years Total $ 36,918 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 nine months ended December 31, 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 35,805 Deconsolidation of Freedom UA securities (3,927) Revaluation of investments that use Level 3 inputs 458 Reclassification to investment in associate (556) Balance as of December 31, 2023 $ 36,918 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 December 31, 2023, and March 31, 2023: December 31, 2023 Assets measured at amortized cost Recognized impairment loss in Income Statement Unrealized loss accumulated in other comprehensive Assets Maturity Date Corporate debt $ 127,073 $ (61) $ 390 $ 127,402 2024-2035 Non-US sovereign debt 64,799 (281) (1,531) 62,987 2024-indefinite U.S. sovereign debt 12,776 — (668) 12,108 2024-2044 Total available-for-sale securities, at fair value $ 204,648 $ (342) (1,809) $ 202,497 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 During the three months ended December 31, 2023, and December 31, 2022, net (loss)/gain on trading securities was comprised of: Three Months Ended December 31, 2023 Three Months Ended December 31, 2022 Net gain/(loss) recognized during the period on trading securities sold during the period $ 9,353 $ (47,801) Net unrealized (loss)/gain recognized during the reporting period on trading securities still held at the reporting date (14,442) 73,257 Net (loss)/gain recognized during the period on trading securities $ (5,089) $ 25,456 Nine Months Ended December 31, 2023 Nine Months Ended December 31, 2022 Net gain/(loss) recognized during the period on trading securities sold during the period $ 61,276 $ (26,790) Net unrealized gain recognized during the reporting period on trading securities still held at the reporting date 16,222 65,684 Net gain recognized during the period on trading securities $ 77,498 $ 38,894 During the three months ended December 31, 2023 the Group sold securities for a gain of $9,353 and recognized unrealized loss in amount of $14,442. The principal factor contributing to the unrealized net loss is the decline in prices of debt securities within the Kazakhstan Sustainability Fund JSC we continued to hold at December 31, 2023 |
MARGIN LENDING, BROKERAGE AND O
MARGIN LENDING, BROKERAGE AND OTHER RECEIVABLES, NET | 9 Months Ended |
Dec. 31, 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 December 31, 2023, and March 31, 2023, consisted of: December 31, 2023 March 31, 2023 Margin lending receivables $ 941,456 $ 361,684 Bank commissions receivable 8,385 6,035 Receivables from payment processing services 7,291 1,158 Receivables from brokerage clients 2,946 7,302 Receivable for underwriting and market-making services 539 2,317 Other receivables 12,701 10,340 Allowance for receivables (11,926) (12,507) Total margin lending, brokerage and other receivables, net $ 961,392 $ 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 margi n loans as of December 31, 2023, and March 31, 2023 was $6,684,629 and $1,418,129, respectively. Collateral from single counterparty comprised $2,799,940, 42% from total collateral. Where margin lending receivables from single counterparty comprised $200,320, balance $941,456, not related party. As December 31, 2023, and March 31, 2023, amounts due from a single related party customer were $27,166 and $290,195, respectively or 3% and 78% respectively, of total margin lending, brokerage and other receivables, net. Approximately 63% 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 December 31, 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 $193.7 thousands and $37.1 thousands 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 December 31, 2023, and March 31, 2023, using historical and statistical data, the Group recorded an allowance for brokerage receivables in the amounts of $11,926 and $12,507, respectively. |
LOANS ISSUED
LOANS ISSUED | 9 Months Ended |
Dec. 31, 2023 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS ISSUED | LOANS ISSUED Loans issued as of December 31, 2023, consisted of the following: Amount Outstanding Due Dates Weighted Average Interest Rate Fair Value of Collateral Loan Currency Mortgage loans 693,167 February, 2024 - December, 2048 10.30% 692,016 KZT Car loans 274,980 January, 2024 - December, 2030 23.70% 264,953 KZT Uncollateralized bank customer loans 243,029 January, 2024- December, 2043 27.10% — KZT Right of claim for purchased retail loans 142,970 January, 2024 - December, 2028 15.00% 142,970 KZT Collateralized bank customer loans 21,104 January, 2024 - July, 2043 20.97% 20,748 KZT Subordinated loan 5,038 December, 2025 3.00% — USD Other 12,391 January, 2024 - September, 2029 9.10%/3%/16%/2.4% 24 UAH/USD/KZT/EUR Allowance for loans issued (46,674) Total loans issued $ 1,346,005 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 $494,513 as of December 31, 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 December 31, 2023 and March 31, 2023, mortgage loans include loans under the state mortgage program "7-20-25" with an aggregate principal amount of $506,150 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 December 31, 2023 and March 31, 2023, right of claims for purchased retail loans in the amount of $142,970 and $121,177, respectively. The total accrued interest for loans issued amounted $7,942 as of December 31, 2023 and $3,548 as of March 31, 2023. Loans issued as of March 31, 2023, consisted of the following: Amount Outstanding Due Dates Weighted 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 high credit risk. The table below presents the Group's loan portfolio by credit quality classification and origination year as of December 31, 2023. Current vintage disclosure is the requirement due to first adoption of ASC 326. Term Loans by Origination Year 2024 2023 2022 2021 2020 Prior Revolving loans Total Mortgage loans 192,157 459,089 41,921 — — — — 693,167 that are not credit impaired 192,021 457,138 41,687 — — — — 690,846 with significant increase in credit risk 108 1,333 138 — — — — 1,579 that are credit impaired 28 618 96 — — — — 742 Car loans 202,591 72,389 — — — — — 274,980 that are not credit impaired 200,842 62,915 — — — — — 263,757 with significant increase in credit risk 942 2,122 — — — — — 3,064 that are credit impaired 807 7,352 — — — — — 8,159 Uncollateralized bank customer loans 206,378 36,643 8 — — — — 243,029 that are not credit impaired 201,802 33,768 — — — — — 235,570 with significant increase in credit risk 2,873 1,030 — — — — — 3,903 that are credit impaired 1,703 1,845 8 — — — — 3,556 Right of claim for purchased retail loans 117,226 25,361 383 — — — — 142,970 that are not credit impaired 117,199 25,359 383 — — — — 142,941 with significant increase in credit risk 27 2 — — — — — 29 that are credit impaired — — — — — — — — Collateralized bank customer loans 20,760 344 — — — — — 21,104 that are not credit impaired 20,657 344 — — — — — 21,001 with significant increase in credit risk 40 — — — — — — 40 that are credit impaired 63 — — — — — — 63 Subordinated loan — 5,038 — — — — — 5,038 that are not credit impaired — 5,038 — — — — — 5,038 with significant increase in credit risk — — — — — — — — that are credit impaired — — — — — — — — Other 8,078 1,337 — — 2,976 — — 12,391 that are not credit impaired 1,290 116 — — — — — 1,406 with significant increase in credit risk — — — — — — — — that are credit impaired 6,788 1,221 — — 2,976 — — 10,985 Total 747,190 600,201 42,312 — 2,976 — — 1,392,679 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 Right of claim for purchased retail loans 121,055 122 — 121,177 Car loans 102,269 — — 102,269 Uncollateralized Bank customer loans 46,882 81 7 46,970 Collateralized Bank customer loans 17,653 — — 17,653 Subordinated loan 5,039 — — 5,039 Loans issued to policyholders 1,488 — — 1,488 Other 300 — — 300 Total loans $ 827,307 $ 1,708 $ 35 $ 829,050 Aging analysis of past due loans as of December 31, 2023 and March 31, 2023, is as follows: December 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 1,151 428 742 690,846 693,167 Car loans 1,862 1,202 8,159 263,757 274,980 Uncollateralized bank customer loans 2,100 1,803 3,556 235,570 243,029 Right of claim for purchased retail loans 29 — — 142,941 142,970 Collateralized bank customer loans 40 — 63 21,001 21,104 Subordinated loan — — — 5,038 5,038 Other — — 10,985 1,406 12,391 Total 5,182 3,433 23,505 1,360,559 1,392,679 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 Right of claim for purchased retail loans 123 — — 121,054 121,177 Car loans — — — 102,269 102,269 Uncollateralized Bank customer loans 73 8 7 46,882 46,970 Collateralized Bank customer loans — — — 17,653 17,653 Subordinated loan — — — 5,039 5,039 Loans issued to policyholders — — — 1,488 1,488 Other — — — 300 300 Total $ 1,461 $ 248 $ 35 $ 827,306 $ 829,050 The activity in the allowance for credit losses as of December 31, 2023 and December 31, 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 (1,760) (16,846) (84) (13,013) (10,493) (11,008) (53,204) Recoveries 1,782 9,826 58 7,096 15,617 — 34,379 Foreign currency translation difference 17 16 1 17 87 — 138 December 31, 2023 (2,731) (14,673) (60) (13,120) (5,082) (11,008) (46,674) 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 (305) (16) — — (1,308) — (1,629) Charges (2,816) (79) (15) (2,559) (11,301) — (16,770) Recoveries 709 23 8 36 3,295 — 4,071 Foreign currency translation difference (80) (1) (1) (78) (223) — (383) December 31, 2022 $ (2,492) $ (73) $ (8) $ (2,601) $ (9,537) $ — $ (14,711) |
PROVISION FOR INCOME TAXES
PROVISION FOR INCOME TAXES | 9 Months Ended |
Dec. 31, 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, Tajikistan, Turkey, the United Arab Emirates, the United Kingdom and the United States of America. The tax rates used for deferred tax assets and liabilities as of December 31, 2023, and March 31, 2023, were 21% for the United States, 20% for Kazakhstan and Azerbaijan, 18% for Tajikistan, 10% for Kyrgyzstan, 31% for Germany, 12.5% for Cyprus, 25% for Turkey, 25% for United Kingdom, 9% for United Arab Emirates, 18% for Armenia and 15% for Uzbekistan. During the nine months ended December 31, 2023, and 2022, the effective tax rate was equal to 15.5% and 16.1%, respectively. |
SECURITIES REPURCHASE AGREEMENT
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS | 9 Months Ended |
Dec. 31, 2023 | |
Securities Sold under Agreements to Repurchase [Abstract] | |
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS | SECURITIES REPURCHASE AGREEMENT OBLIGATIONS As of December 31, 2023, and March 31, 2023, trading securities included collateralized securities subject to repurchase agreements as described in the following table: December 31, 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 15.59 % $ 1,746,953 $ 177,315 $ 1,924,268 Corporate debt 15.39 % 873,834 71,216 945,050 US sovereign debt 2.70 % 19,838 — 19,838 Corporate equity 1.00 % 17 — 17 Total securities sold under repurchase agreements $ 2,640,642 $ 248,531 $ 2,889,173 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 December 31, 2023, and March 31, 2023, was $2,895,602 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 December 31, 2023 and March 31, 2023, securities repurchase agreement obligations included accrued interest in the amount of $6,599 and $25,179, with a weighted average maturity of 11 days. All securities repurchase agreements transactions were executed through the Kazakhstan Stock Exchange. |
CUSTOMER LIABILITIES
CUSTOMER LIABILITIES | 9 Months Ended |
Dec. 31, 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 December 31, 2023, and March 31, 2023 , customer liabilities consisted of: December 31, 2023 March 31, 2023 Amount Interest Amount Interest Interest bearing deposits: Term deposits 1,182,839 0.05% - 16.9% 832,751 0.1% - 16.9% Total Interest bearing deposits $ 1,182,839 $ 832,751 Non-interest-bearing deposits: Brokerage customers 693,174 633,542 Current customer accounts 372,029 458,954 Total non-interest-bearing accounts $ 1,065,203 $ 1,092,496 Total customer liabilities 2,248,042 $ 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 December 31, 2023, and March 31, 2023, respectively, the Group had total amounts in excess of insured bank time deposits of $626,486 and $539,411 for all customers. |
MARGIN LENDING AND TRADE PAYABL
MARGIN LENDING AND TRADE PAYABLES | 9 Months Ended |
Dec. 31, 2023 | |
Accounts Payable [Abstract] | |
MARGIN LENDING AND TRADE PAYABLES | MARGIN LENDING AND TRADE PAYABLES As of December 31, 2023, and March 31, 2023 , margin lending and trade payables of the Group were comprised of the following: December 31, 2023 March 31, 2023 Margin lending payable $ 120,034 $ 117,144 Payables to merchants 16,152 382 Payables to suppliers of goods and services 6,683 2,965 Trade payable for securities purchased 479 482 Other 2,456 1,927 Total margin lending and trade payables $ 145,804 $ 122,900 As at December 31, 2023, and March 31, 2023, margin lending payable due to a single re lated party was $227 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 December 31, 2023, and March 31, 2023 was $777,616 and $164,861, respectively. |
DEBT SECURITIES ISSUED
DEBT SECURITIES ISSUED | 9 Months Ended |
Dec. 31, 2023 | |
Debt Securities [Abstract] | |
DEBT SECURITIES ISSUED | DEBT SECURITIES ISSUED As of December 31, 2023, and March 31, 2023, outstanding debt securities issued by the Group included the following: December 31, 2023 March 31, 2023 Interest rate Issue date Maturity date Freedom SPC bonds due 2028 200,407 — 1-2 years: 12% 3-5 years: EFFR + 6.5% December, 2023 December, 2028 Freedom SPC bonds due 2026 $ 64,482 $ 58,582 5.5% October, 2021 October, 2026 Accrued interest 1,421 1,443 Total debt securities issued $ 266,310 $ 60,025 As of December 31, 2023 and March 31, 2023, the Company’s outstanding debt securities had fixed annual coupon rates ranging from 5.5% to 12.0% and have maturity dates in October 2026 to December 2028, respectively. The Group’s debt securities as of December 31, 2023 , consist of $64,482 Freedom SPC bonds due 2026 and $200,407 Freedom SPC bonds due 2028 . The Freedom SPC bonds are denominated in U.S. dollars and were issued under Astana International Financial Centre law and trade on the AIX . The Company is a guarantor of the Freedom SPC bonds. The Freedom SPC bonds due 2026 bear interest at an annual rate of 5.5% and mature in October 2026. Interest payments are duly semi-annually in April and October. The proceeds from the issuance of such bonds were loaned to the Company pursuant to a loan agreement dated November 22, 2021. The loan has the same interest rate and maturity date as the bonds . For the first two years of Freedom SPC bonds due 2028, the annual interest rate is 12%, and for subsequent years the interest rate will be fixed and set as the sum of Effective Federal Funds Rate (EFFR) as of 10 December 2025 and a margin of 6.5%. I nterest is paid on a monthly basis. The bondholders have a right of early redemption after two years at nominal value plus accrued interest. After two years. the issuer has the option to redeem the bonds in full or in part at nominal value plus accrued interest. The proceeds of the bonds were loaned to the Company. Under the terms of the loan agreement, the applicable interest rate is 12.1% per annum for the first two years, and for subsequent years the interest rate will be set as the sum of the EFFR and a margin of 6.6% and the maturity date of the loan is the same as the bonds. 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 | 9 Months Ended |
Dec. 31, 2023 | |
Insurance [Abstract] | |
INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES | INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES As of December 31, 2023, and March 31, 2023, insurance and reinsurance receivables of the Group was comprised of the following: December 31, 2023 March 31, 2023 Assets: Amounts due from policyholders $ 7,301 $ 9,699 Claims receivable from reinsurance 1,316 1,087 Amounts due from reinsured 478 555 Advances received from agent 121 — Allowance for estimated uncollectible reinsurance (778) (1,325) Insurance and reinsurance receivables: 8,438 10,016 Unearned premium reserve, reinsurers’ share 2,282 2,379 Reserves for claims and claims’ adjustment expenses, reinsurers’ share 2,008 1,390 Total $ 12,728 $ 13,785 As of December 31, 2023, and March 31, 2023, insurance and reinsurance payable of the Group was comprised of the following: December 31, 2023 March 31, 2023 Liabilities: Amounts payable to agents and brokers 3,599 $ 2,466 Amounts payable to reinsurers 2,410 2,002 Amounts payable to insured 2,114 1,807 Insurance and reinsurance payables: 8,123 6,275 Unearned premium reserve 46,000 43,082 Reserves for claims and claims’ adjustment expenses 188,056 133,145 Total $ 242,179 $ 182,502 |
FEE AND COMMISSION INCOME
FEE AND COMMISSION INCOME | 9 Months Ended |
Dec. 31, 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 December 31, 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 December 31, 2023 and March 31, 2023, contract liability balances were not material. Payment Processing and Agency Fees Commissions from payment processing — The Group earns commissions from payment processing services provided to our clients. These commissions are generated as compensation for facilitating and handling various payment transactions on behalf of our clients. Payment processing services encompass activities such as authorization, clearing, settlement, and related services associated with electronic payment methods. Commissions from agency fees — The Group earns commissions from agency fees as a result of acting as an intermediary or agent in facilitating transactions between two parties. These fees are derived from services provided to clients who engage the company to act on their behalf in securing and facilitating various transactions. During the three months ended December 31, 2023, and December 31, 2022, fee and commission income was comprised of: Three months ended December 31, 2023 Central Asia and Eastern Europe Europe excluding Eastern Europe The United States Middle East/Caucasus Total Brokerage services $ 65,451 $ 32,285 $ 1,223 $ 854 $ 99,813 Commission income from payment processing 8,977 — — — 8,977 Underwriting and market-making services 1,502 — 1,842 — 3,344 Bank services 1,331 — — — 1,331 Other fee and commission income 5,293 300 1,101 — 6,694 Total fee and commission income $ 82,554 $ 32,585 $ 4,166 $ 854 $ 120,159 Three months ended December 31, 2022 Central Asia and Eastern Europe Europe excluding Eastern Europe The United States Total Brokerage service $ 19,490 $ 47,893 $ 1,149 $ 68,532 Bank services 5,507 — — 5,507 Underwriting and market-making services 4,778 — — 4,778 Other fee and commission income 1,473 593 — 2,066 Total fee and commission income $ 31,248 $ 48,486 $ 1,149 $ 80,883 Nine months ended December 31, 2023 Central Asia and Eastern Europe Europe excluding Eastern Europe The United States Middle East/Caucasus Total Brokerage service $ 159,072 $ 75,274 $ 3,295 $ 1,967 $ 239,608 Commission income from payment processing 37,318 — — — 37,318 Bank services 23,480 — — 23,480 Underwriting and market-making services 7,971 — 7,114 — 15,085 Other fee and commission income 12,324 725 2,025 — 15,074 Total fee and commission income $ 240,165 $ 75,999 $ 12,434 $ 1,967 $ 330,565 Nine months ended December 31, 2022 Central Asia and Eastern Europe Europe excluding Eastern Europe The United States Total Brokerage service $ 31,814 $ 192,330 $ 3,332 $ 227,476 Bank services 15,100 — — 15,100 Underwriting and market-making services 8,008 — — 8,008 Other fee and commission income 1,793 1,109 — 2,902 Total fee and commission income $ 56,715 $ 193,439 $ 3,332 $ 253,486 |
NET (LOSS)_GAIN ON TRADING SECU
NET (LOSS)/GAIN ON TRADING SECURITIES | 9 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
NET (LOSS)/GAIN ON TRADING SECURITIES | TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE As of December 31, 2023, and March 31, 2023, trading and available-for-sale securities consisted of: December 31, 2023 March 31, 2023 Non-U.S. sovereign debt $ 2,370,508 $ 1,029,857 Corporate debt 1,165,732 1,269,879 Corporate equity 99,589 65,741 U.S. sovereign debt 43,231 45,022 Exchange traded notes 1,393 2,057 Total trading securities $ 3,680,453 $ 2,412,556 December 31, 2023 March 31, 2023 Corporate debt $ 127,402 $ 191,082 Non-U.S. sovereign debt 62,987 40,162 U.S. sovereign debt 12,108 7,809 Total available-for-sale securities, at fair value $ 202,497 $ 239,053 The following tables present maturity analysis for available-for-sale securities as of December 31, 2023, and March 31, 2023: December 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 34,691 48,898 43,803 10 127,402 Non-US sovereign debt 43,581 7,054 5,718 6,634 62,987 US sovereign debt 9,145 — 1,700 1,263 12,108 Total available-for-sale securities, at fair value $ 87,417 $ 55,952 $ 51,221 $ 7,907 $ 202,497 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 December 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 (Fitch: BBB credit rating) in the amount of $2,357,330 and Kazakhstan Sustainability Fund JSC (Fitch: BBB credit rating) in the amount of $721,133. 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. As of December 31, 2023 and March 31, 2023 the Group recognized $342 and $390, respectively, 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 December 31, 2023, and March 31, 2023: Weighted Average Total Fair Value Measurements as of December 31, 2023 using Quoted Prices in Significant Significant Unobservable (Level 1) (Level 2) (Level 3) Non-U.S. sovereign debt 12.51 % $ 2,370,508 $ 1,443,144 $ 927,330 $ 34 Corporate debt 15.52 % 1,165,732 397,767 751,490 16,475 Corporate equity — % 99,589 77,577 1,603 20,409 U.S. sovereign debt 4.71 % 43,231 43,231 — — Exchange traded notes — % 1,393 908 485 — Total trading securities $ 3,680,453 $ 1,962,627 $ 1,680,908 $ 36,918 Corporate debt 16.67 % $ 127,402 $ 40,645 $ 86,757 $ — Non-US sovereign debt 13.51 % 62,987 50,557 12,430 — US sovereign debt 4.37 % 12,108 12,108 — — Total available-for-sale securities, at fair value $ 202,497 $ 103,310 $ 99,187 $ — 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 December 31, 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 December 31, 2023 Significant Unobservable Inputs % Corporate debt DCF $ 16,220 Discount rate 11.1% Estimated number of years 2 years Corporate debt DCF 255 Discount rate 74.0% Estimated number of years 3 months Corporate equity DCF 20,022 Discount rate 13.0% Estimated number of years 4 years, 6 months Non-U.S. sovereign debt DCF 34 Discount rate 48.8% Estimated number of years 11 years Corporate equity DCF 387 Discount rate 58.8% Estimated number of years 9 years Total $ 36,918 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 nine months ended December 31, 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 35,805 Deconsolidation of Freedom UA securities (3,927) Revaluation of investments that use Level 3 inputs 458 Reclassification to investment in associate (556) Balance as of December 31, 2023 $ 36,918 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 December 31, 2023, and March 31, 2023: December 31, 2023 Assets measured at amortized cost Recognized impairment loss in Income Statement Unrealized loss accumulated in other comprehensive Assets Maturity Date Corporate debt $ 127,073 $ (61) $ 390 $ 127,402 2024-2035 Non-US sovereign debt 64,799 (281) (1,531) 62,987 2024-indefinite U.S. sovereign debt 12,776 — (668) 12,108 2024-2044 Total available-for-sale securities, at fair value $ 204,648 $ (342) (1,809) $ 202,497 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 During the three months ended December 31, 2023, and December 31, 2022, net (loss)/gain on trading securities was comprised of: Three Months Ended December 31, 2023 Three Months Ended December 31, 2022 Net gain/(loss) recognized during the period on trading securities sold during the period $ 9,353 $ (47,801) Net unrealized (loss)/gain recognized during the reporting period on trading securities still held at the reporting date (14,442) 73,257 Net (loss)/gain recognized during the period on trading securities $ (5,089) $ 25,456 Nine Months Ended December 31, 2023 Nine Months Ended December 31, 2022 Net gain/(loss) recognized during the period on trading securities sold during the period $ 61,276 $ (26,790) Net unrealized gain recognized during the reporting period on trading securities still held at the reporting date 16,222 65,684 Net gain recognized during the period on trading securities $ 77,498 $ 38,894 During the three months ended December 31, 2023 the Group sold securities for a gain of $9,353 and recognized unrealized loss in amount of $14,442. The principal factor contributing to the unrealized net loss is the decline in prices of debt securities within the Kazakhstan Sustainability Fund JSC we continued to hold at December 31, 2023 |
NET INTEREST INCOME_EXPENSE
NET INTEREST INCOME/EXPENSE | 9 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
NET INTEREST INCOME/EXPENSE | NET INTEREST INCOME/EXPENSE Net interest income/expense for the three months ended December 31, 2023, and December 31, 2022 includes: Three Months Ended December 31, 2023 Three Months Ended December 31, 2022 Interest income: Interest income on trading securities $ 112,860 $ 44,760 Interest income on margin loans to customers 51,553 12,379 Interest income on loans to customers 49,529 12,327 Interest income on securities available-for-sale 7,478 6,727 Interest income on reverse repurchase agreements and amounts due from banks 5,025 $ 4,062 Total interest income $ 226,445 $ 80,255 Interest expense: Interest expense on securities repurchase agreement obligations $ 110,778 $ 39,958 Interest expense on customer accounts and deposits 15,653 11,149 Interest expense on margin lending payable 3,211 — Interest expense on debt securities issued 1,491 842 Interest expense on loans received 36 88 Other interest expense 54 — Total interest expense $ 131,223 $ 52,037 Net interest income $ 95,222 $ 28,218 Net interest income/expense for the nine months ended December 31, 2023, and December 31, 2022 includes: Nine Months Ended December 31, 2023 Nine Months Ended December 31, 2022 Interest income: Interest income on trading securities $ 313,739 $ 116,922 Interest income on loans to customers 123,730 24,158 Interest income on margin loans to customers 111,306 27,259 Interest income on securities available-for-sale 25,476 13,280 Interest income on reverse repurchase agreements and amounts due from banks 12,012 6,198 Other interest income 2,594 — Total interest income $ 588,857 $ 187,817 Interest expense: Interest expense on securities repurchase agreement obligations $ 303,242 $ 105,466 Interest expense on customer accounts and deposits 49,120 24,780 Interest expense on margin lending payable 9,671 — Interest expense on debt securities issued 3,387 2,457 Interest expense on loans received 89 268 Other interest expense 141 — Total interest expense $ 365,650 $ 132,971 Net interest income $ 223,207 $ 54,846 |
NET LOSS ON DERIVATIVES
NET LOSS ON DERIVATIVES | 9 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
NET LOSS ON DERIVATIVES | NET LOSS ON DERIVATIVES Three Months Ended December 31, 2023 Three Months Ended December 31, 2022 Net realized loss on derivatives (43,019) $ (21,469) Net unrealized gain on derivatives 451 — Total net loss on derivatives $ (42,568) $ (21,469) Nine Months Ended December 31, 2023 Nine Months Ended December 31, 2022 Net realized loss on derivatives (72,681) $ (22,523) Net unrealized gain on derivatives 886 — Total net loss on derivatives $ (71,795) $ (22,523) During the three months ended December 31, 2023, the Group recognized net loss on derivatives in amount of $42,568, which included unrealized gain on derivatives in the amount of $451 and realized loss on derivatives in amount of $43,019 as a result of engaging in currency swaps. During the three months ended December 31, 2022, the Group recognized net realized loss on derivatives in amount of $21,469. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The following table presents related party transactions as of December 31, 2023, and March 31, 2023: December 31, 2023 March 31, 2023 Related party balances Total category as per financial statements captions Related party balances Total category as per financial statements captions ASSETS Cash and cash equivalents $ — $ 561,883 $ 35,549 $ 581,417 Companies controlled by management — 35,549 Restricted cash 67,215 $ 384,553 $ 114,885 $ 445,528 Companies controlled by management 67,215 114,885 Trading securities $ 16,220 $ 3,680,453 $ 556 $ 2,412,556 Companies controlled by management 16,220 556 Margin lending, brokerage and other receivables, net $ 43,241 $ 961,392 $ 295,611 $ 376,329 Management 14,036 4,209 Companies controlled by management 29,205 291,402 Loans issued $ 144,289 $ 1,346,005 $ 121,316 $ 826,258 Management 116 139 Companies controlled by management 144,173 121,177 Other assets, net $ 533 $ 88,244 $ 16,102 $ 73,463 Companies controlled by management 533 16,102 LIABILITIES Customer liabilities $ 112,701 $ 2,248,042 $ 130,210 $ 1,925,247 Management 5,243 19,789 Companies controlled by management 106,561 110,253 Other 897 168 Margin lending and trade payables $ 474 $ 145,804 $ 3,721 $ 122,900 Management 222 227 Companies controlled by management 252 3,494 Other liabilities $ 11,783 $ 61,447 $ 46 $ 30,060 Management 7,700 — Companies controlled by management 4,074 46 Other 9 — Three Months Ended December 31, 2023 2022 Related party transactions Total category as per financial statements captions Related party transactions Total category as per financial statements captions Revenue: Fee and commission income $ 30,112 $ 120,159 $ 44,590 $ 80,883 Management 226 149 Companies controlled by management 29,878 44,441 Other 8 — Interest income $ 7,566 $ 226,445 $ 10,796 $ 80,255 Management 208 — Companies controlled by management 7,358 10,796 Net gain on foreign exchange operations $ 593 $ 38,825 $ — $ 20,866 Management 13 — Companies controlled by management 580 — Expense: Fee and commission expense $ 55 $ 42,818 $ 2,304 $ 18,314 Companies controlled by management 55 2,304 Interest expense $ 230 $ 131,223 $ 82 $ 52,037 Management 62 1 Companies controlled by management 160 81 Other 8 — General and administrative expenses $ 1,502 $ 32,106 $ 600 $ 16,428 Management 226 105 Companies controlled by management 1,041 495 Other 235 — Nine Months Ended December 31, 2023 2022 Related party transactions Total category as per financial statements captions Related party transactions Total category as per financial statements captions Revenue: Fee and commission income $ 66,029 $ 330,565 $ 181,396 $ 253,486 Management 691 382 Companies controlled by management 65,322 181,014 Other 16 — Interest income $ 22,650 $ 588,857 $ 21,659 $ 187,817 Management 512 — Companies controlled by management 22,137 21,659 Other 1 — Net gain on foreign exchange operations $ 5,236 $ 54,430 $ — $ 30,014 Management 14 — Companies controlled by management 5,222 — Expense: Fee and commission expense $ 235 $ 103,116 $ 2,657 $ 60,068 Companies controlled by management 235 2,657 Interest expense $ 635 $ 365,650 $ 129 $ 132,971 Management 236 1 Companies controlled by management 384 128 Other 15 — General and administrative expenses $ 9,063 $ 86,211 $ 803 $ 40,943 Management 397 269 Companies controlled by management 8,346 534 Other 320 — During the three months ended December 31, 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. For the three months ended December 31, 2023 and 2022, the Group's earned fee and commission income from FST Belize accounted for approximately 96% and 98% of the Group's total related party fee and commission income. For the nine months ended December 31, 2023 and 2022, the Group's fee and commission income from FST Belize accounted for approximately 96% and 93% of the Group's total related party fee and commission income. Interest income earned from related parties is comprised entirely of interest income from FST Belize, principally interest income from margin lending. For the three months ended December 31, 2023 and 2022, the Group's interest income generated from FST Belize accounted for approximately 92% and 100% of the Group's total related party interest income. For the nine months ended December 31, 2023 and 2022, the Group's interest income from FST Belize accounted for approximately 96% and 100% of the Group's total related party interest income. Margin lending, brokerage and other receivables from related parties principally represent margin lending receivables in respect of margin loans granted by Freedom EU to FST Belize. As of December 31, 2023 and March 31, 2023, the Group's margin lending receivables from FST Belize accounted for 63% and 98% of the Group's total margin lending, brokerage and other receivables from related parties. As of December 31, 2023 and March 31, 2023, 75% and 18%, respectively, of the Group's customer liabilities were deposits from FST Belize held by Freedom EU related to brokerage services provided by Freedom EU to FST Belize. As of December 31, 2023 and March 31, 2023, the Group had loans issued which included uncollateralized bank customer loans purchased from a related party, FFIN Credit, a company outside of the FRHC group which is controlled by Timur Turlov. 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 | 9 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY During the three months ended December 31, 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. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 9 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION During the nine months ended December 31, 2023 no restricted shares were awarded to key employees. The compensation expense related to restricted stock grants was $1,039 during the three months ended December 31, 2023, and $3,945 during the three months ended December 31, 2022. As of December 31, 2023 there was $4,616 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 2.38. There are no compensation expense related to stock grants, which vested on the date of the award during the three months ended December 31, 2023 and December 31, 2022. The table below summarizes the activity for the Company’s restricted stock outstanding during the nine months ended December 31, 2023: Shares Weighted Outstanding, at March 31, 2023 467,058 18,035 Granted — — Vested (140,558) (5,448) Forfeited/cancelled/expired (4,500) (235) Outstanding, at December 31, 2023 322,000 12,352 |
LEASES
LEASES | 9 Months Ended |
Dec. 31, 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 December 31, 2023: Classification on Balance Sheet December 31, 2023 Assets Operating lease assets Right-of-use assets $ 34,180 Total lease assets $ 34,180 Liabilities Operating lease liability Lease liability $ 34,614 Total lease liability $ 34,614 The following table presents as of December 31, 2023, the annual maturities of the lease liabilities: Leases maturing during twelve months ended March 31, 2024 $ 4,108 2025 11,228 2026 10,566 2027 8,517 2028 5,770 Thereafter 4,387 Total payments 44,576 Less: amounts representing interest (9,962) Lease liability, net $ 34,614 Weighted average remaining lease term (in months) 31 Weighted average discount rate 15 % Lease commitments for short-term operating leases as of December 31, 2023 and December 31, 2022 was approximately $576 and $258, respectively. The Group's rent expense for office space was $725 and $2,344 for the three and nine months ended December 31, 2023, $1,376 and $2,492 for the three and nine months ended December 31, 2022, respectively. 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 | 9 Months Ended |
Dec. 31, 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 the Group as it works to develop a comprehensive digital fintech ecosystem in Kazakhstan. On April 26, 2023, the Company completed the acquisition of Aviata by purchasing 100% of its outstanding shares. 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 21,795 Total purchase price $ 31,318 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 640 Total purchase price $ 1,999 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. During three months ended December 31, 2023, the Company acquired additional 12.81% of Arbuz's shares resulting in total equity interest of 94.73% in Arbuz. 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 Acquisition of ReKassa As of July 26, 2023 the Company completed the acquisition of ReKassa by purchasing 90% of its authorized capital. The Company acquired ReKassa in order to accelerate its growth in digital sector. As of July 26, 2023, the date of the acquisition of ReKassa, the fair value of net assets of ReKassa was $2,555. The total purchase price was allocated as follows: As of July 26, 2023 ASSETS Cash and cash equivalents $ 654 Brokerage and other receivables 125 Loans issued 177 Fixed assets 14 Intangible assets 1,679 Other assets 11 TOTAL ASSETS 2,660 LIABILITIES Trade payables 15 Lease liabilities 42 Other liabilities 48 TOTAL LIABILITIES 105 Net assets acquired 2,555 Goodwill 560 Purchase price 2,600 Non-cash consideration 259 Fair value of NCI 256 Total purchase price $ 3,115 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Dec. 31, 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 December 31, 2023, and March 31, 2023, were as follows: As of December 31, 2023 As of March 31, 2023 Unfunded commitments under lines of credits and guarantees $ 126,823 $ 20,617 Bank guarantees 7,342 7,001 Total $ 134,165 $ 27,618 |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Dec. 31, 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 December 31, 2023 STATEMENTS OF OPERATIONS Central Asia and Eastern Europe Europe, excluding Eastern Europe United States Middle East/Caucasus Total Fee and commission income (1) $ 82,554 $ 32,585 $ 4,166 $ 854 $ 120,159 Net (loss)/ gain on trading securities (5,778) (85) 769 5 (5,089) Interest income 207,168 7,571 586 11,120 226,445 Insurance underwriting income 79,017 — — — 79,017 Net gain/(loss) on foreign exchange operations 39,031 (367) 76 85 38,825 Net loss on derivative (42,568) — — — (42,568) Other income/(expense) 1,910 (200) (11) 146 1,845 TOTAL REVENUE, NET 361,334 39,504 5,586 12,210 418,634 Fee and commission expense 37,393 5,040 329 56 42,818 Interest expense 127,861 3,168 138 56 131,223 Insurance claims incurred, net of reinsurance 40,989 — — — 40,989 Payroll and bonuses 31,101 9,154 3,365 1,463 45,083 Professional services 614 1,995 3,521 87 6,217 Stock compensation expense 701 82 256 — 1,039 Advertising expense 4,551 5,671 392 452 11,066 General and administrative expense 22,765 2,743 5,290 1,308 32,106 (Recovery)/allowance for expected credit losses (7,381) 3,893 (38) — (3,526) TOTAL EXPENSE 258,594 31,746 13,253 3,422 307,015 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 102,740 $ 7,758 $ (7,667) $ 8,788 $ 111,619 Income tax expense (244) (8,890) (6,262) (148) (15,544) INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 102,496 $ (1,132) $ (13,929) $ 8,640 $ 96,075 Nine months ended December 31, 2023 STATEMENTS OF OPERATIONS Central Asia and Eastern Europe Europe, excluding Eastern Europe United States Middle East/Caucasus Total Fee and commission income (1) 240,165 75,999 12,434 1,967 $ 330,565 Net gain on trading securities 76,894 350 68 186 77,498 Interest income 543,214 24,036 2,437 19,170 588,857 Insurance underwriting income 181,882 — — — 181,882 Net gain/(loss) on foreign exchange operations 54,962 (60) (696) 224 54,430 Net (loss)/gain on derivative (72,365) 570 — — (71,795) Other income 6,558 1,505 804 121 8,988 TOTAL REVENUE, NET 1,031,310 102,400 15,047 21,668 1,170,425 Fee and commission expense 87,568 14,523 877 148 103,116 Interest expense 346,393 17,326 1,857 74 365,650 Insurance claims incurred, net of reinsurance 96,491 — — — 96,491 Payroll and bonuses 85,489 18,253 10,404 2,565 116,711 Professional services 1,764 6,331 16,488 210 24,793 Stock compensation expense 2,230 255 818 — 3,303 Advertising expense 12,171 14,098 666 870 27,805 General and administrative expense 60,831 11,829 11,617 1,934 86,211 Allowance/(recovery) for expected credit losses 10,456 5,040 (34) — 15,462 TOTAL EXPENSE 703,393 87,655 42,693 5,801 839,542 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS 327,917 14,745 (27,646) 15,867 330,883 Income tax expense (432) (18,614) (31,665) (697) (51,408) INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 327,485 $ (3,869) $ (59,311) $ 15,170 $ 279,475 Three months ended December 31, 2022 STATEMENTS OF OPERATIONS Central Asia and Eastern Europe Europe, excluding Eastern Europe United States Middle East/Caucasus Total Fee and commission income (1) $ 31,248 $ 48,486 $ 1,149 $ — $ 80,883 Net gain/(loss) on trading securities 28,080 819 (3,443) — 25,456 Interest income 66,324 11,417 2,500 14 80,255 Insurance underwriting income 28,557 — — — 28,557 Net gain/(loss) on foreign exchange operations 20,402 313 152 (1) 20,866 Net loss on derivative (21,469) — — — (21,469) Other (expense)/income (647) 74 — 3 (570) TOTAL REVENUE, NET 152,495 61,109 358 16 213,978 Fee and commission expense 10,110 7,933 255 16 18,314 Interest expense 43,880 4,590 3,567 — 52,037 Insurance claims incurred, net of reinsurance 17,418 1 — — 17,419 Payroll and bonuses 13,937 5,795 1,563 315 21,610 Professional services 859 2,483 2,385 174 5,901 Stock compensation expense — — 2,939 — 2,939 Advertising expense 2,255 1,356 110 9 3,730 General and administrative expense 11,443 3,190 1,658 137 16,428 Allowance for expected credit losses 12,767 11,363 10 — 24,140 TOTAL EXPENSE 112,669 36,711 12,487 651 162,518 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 39,826 $ 24,398 $ (12,129) $ (635) $ 51,460 Income tax expense (95) (4,557) (398) (19) (5,069) INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 39,731 $ 19,841 $ (12,527) $ (654) $ 46,391 Nine months ended December 31, 2022 STATEMENTS OF OPERATIONS Central Asia and Eastern Europe Europe, excluding Eastern Europe United States Middle East/Caucasus Total Fee and commission income (1) $ 56,715 $ 193,439 $ 3,332 $ — $ 253,486 Net gain/(loss) on trading securities 65,497 (21,815) (4,788) — 38,894 Interest income 154,300 24,014 9,489 14 187,817 Insurance underwriting income 78,998 — — — 78,998 Net gain/(loss) on foreign exchange operations 32,270 (1,517) (747) 8 30,014 Net loss on derivative (22,523) — — — (22,523) Other (expense)/income (116) (31) 8 60 (79) TOTAL REVENUE, NET 365,141 194,090 7,294 82 566,607 Fee and commission expense 32,638 26,834 551 45 60,068 Interest expense 110,410 10,250 12,311 — 132,971 Insurance claims incurred, net of reinsurance 51,585 1 — — 51,586 Payroll and bonuses 37,967 11,357 5,146 782 55,252 Professional services 2,337 5,236 6,329 272 14,174 Stock compensation expense 2,137 291 4,091 — 6,519 Advertising expense 5,654 3,697 119 9 9,479 General and administrative expense 22,880 14,342 3,330 391 40,943 Allowance for expected credit losses 18,930 11,362 2 30,294 TOTAL EXPENSE 284,538 83,370 31,879 1,499 401,286 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 80,603 $ 110,720 $ (24,585) $ (1,417) $ 165,321 Income tax (expense)/benefit (691) (18,403) (7,475) 2 (26,567) INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 79,912 $ 92,317 $ (32,060) $ (1,415) $ 138,754 (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: December 31, 2023 Central Asia and Eastern Europe Europe, excluding Eastern Europe United States Middle East/Caucasus Total Total assets $ 6,419,659 $ 422,348 $ 87,842 $ 519,194 $ 7,449,043 Total liabilities 5,795,495 561,395 30,223 22,680 6,409,793 Net assets $ 624,164 $ (139,047) $ 57,619 $ 496,514 $ 1,039,250 March 31, 2023 Central Asia and Eastern Europe Europe, excluding Eastern Europe 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. The Group also has several businesses in Kazakhstan which complement its core financial services businesses, including recently established telecommunications and media businesses that are in a developmental stage. Europe Excluding Eastern Europe Segmen t 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. As of December 31, 2023 , the Group has provided its brokerage clients with margin lending in Middle East/Caucasus segment in the total amount of $498,897. This margin lending balance was financed through the Europe, excluding Eastern Europe segment of the Group, and upon collection of this receivable, funds will be transferred to the European segment. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company has performed an evaluation of subsequent events through the time of filing this quarterly report on Form 10-Q with the SEC. Other than as disclosed below, during this period the Company did not have any additional material recognizable subsequent events. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 96,368 | $ 62,864 | $ 280,317 | $ 150,191 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 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) | 9 Months Ended |
Dec. 31, 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). |
Basis of presentation and principles of consolidation | Basis of presentation and principles of consolidation The consolidated financial statements present the consolidated accounts of FRHC and its consolidated subsidiaries. All inter-company balances and transactions have been eliminated from the consolidated financial statements. |
Consolidation of variable interest entities | Consolidation of variable interest entities |
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); • Commissions on agency fees (the Company earns commissions on agency fees through its facilitation of transactions between clients); • Commissions on payment processing; 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, right of claim for purchased retail loans and subordinated loans. Mortgage loans consist of loans provided to individuals to purchase residential properties, which is used as collateral for the loan. Uncollateralized bank customer loans consist of loans provided through credit cards to individuals, individual entrepreneurs 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 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. 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. Write-off Loans are written off either partially or in their entirety only when the Group has stopped pursuing the recovery. If the amount to be written off is greater than the accumulated loss allowance, the difference is first treated as an addition to the allowance that is then applied against the gross carrying amount. Any subsequent recoveries are credited to expected credit loss expense. The loan or part of the loan can be fully or partially written off in the following cases: • death of the borrower; • bankruptcy of the borrower; • entry into force of a court decision on refusal or partial satisfaction of the Group's claims for debt collection; • conversion of the pledged property into the ownership of the Group; • assignment by the Group of its rights of claim to third parties. Modifications Where possible, the Group seeks to restructure loans rather than to take possession of collateral. This may involve extending the payment arrangements and the agreement of new loan conditions. The Group derecognizes loan when the terms and conditions have been renegotiated to the extent that, substantially, it becomes a new loan, with the difference recognized as a derecognition gain or loss, to the extent that an impairment loss has not already been recorded. When assessing whether or not to derecognize a loan to a customer, amongst others, the Group considers the following factors: change in currency of the loan, change in counterparty and modifications. 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 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 individual entrepreneurs 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 portfolios may include the following: GDP, Brent oil price 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. For defaulted loans, PD 100% is applied, for non-impaired loans PD for the average life of the pool is recognized at inception. As of the reporting date, the Company apply statistics for State Credit Bureau JSC. To estimate the loss from default (LGD) for loans with common risk characteristics, the Group uses for collateralized loans - returns through the sale of collateral and for uncollateralized loans - through repayment of debt in cash. When calculating LGD from the sale of collateral for collateralized loans, the Group takes into account the latest market value of the collateral on the calculation date. First, liquidity ratios are applied to market values based on the type of collateral, after which the value of the collateral is discounted at the original effective interest rate of the loan agreement for the risk periods corresponding to the types of collateral. The calculation methodology is the same for both non-impaired and defaulted loans. In calculating LGD from cash repayments of uncollateralized loans, the Group uses the average monthly share of repayments of defaulted loans over the past 5 years, assuming that they are discounted at the weighted average effective interest rate. 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, 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, 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. 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. The Group primarily offers unsecured loans for individual entrepreneurs, constituting the majority of its uncollateralized bank customer loans. 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. In the loan portfolio of individuals, a 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. 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. 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 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 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 cash |
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 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 | 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/(loss) 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 and other income, respectively, 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/(loss) 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 credit 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. |
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 December 31, 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 subsidiary, including its allocated goodwill, to its fair value. If the carrying amount exceeds the fair value, an impairment loss is recognized. Further details regarding the measurement of goodwill impairment and the results of impairment tests for each reporting unit are provided below. The Group discloses information about the reporting units, the carrying amounts of goodwill allocated to each reporting unit, and the impairment losses recognized. The allocation of goodwill to reporting units ensures a focused evaluation of each unit's financial performance and facilitates the identification of potential impairment, enhancing the transparency and reliability of the Company's financial reporting. |
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 December 31, 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 December 31, 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 to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability. Fair value is the current bid price for financial assets, current ask price for financial liabilities and the average of current bid and ask prices when the Group is both in short and long positions for the financial instrument. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange or other institution and those prices represent actual and regularly occurring market transactions on an arm's length basis. |
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 receivable |
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 the 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 (2,671) Foreign currency translation difference effect (1) Decrease to retained earnings, net of tax effect $ 22,772 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 that ASU 2021-06 will have an impact on the Company's 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 a material 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 does not expect that ASU 2022-03 will have a material impact on its consolidated financial statements and related disclosures. In September 2022, the FASB issued Accounting Standards Update No. 2022-04 “Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations” to enhance the transparency of supplier finance programs. This requires all entities, which apply those programs in connection with the purchase of goods and services (buyer party), to disclose qualitative and quantitative information about the use of the finance programs to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. Accordingly, ASU 2022-04 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on roll forward information, which is effective for fiscal years beginning after December 15, 2023. The Company does not expect that ASU 2022-04 will have an impact on the Company's consolidated financial statements and related disclosures. In August, 2018, the FASB issued ASU 2018-12 “Financial Services—Insurance (Topic 944”): Targeted Improvements to the Accounting for Long-Duration Contracts ” to make targeted improvements to its guidance on long-duration contracts issued by an insurance entity in response to stakeholder feedback indicating that more timely, transparent, and decision-useful information about long-duration contracts was needed. Subsequently, FASB issued ASU 2019-09 and ASU 2020-11 amended ASU 2018-12 to defer its effective date. In December 2022, FASB Issued Accounting Standard Updated No. 2022-05 “Financial Services—Insurance (Topic 944): Transition for Sold Contracts”, which introduces an optional accounting policy election under which insurers can choose not to apply the amendments made by ASU 2018-12 to certain contracts that are derecognized as a result of a sale or disposal before the effective date of ASU 2018-12.2 Insurers that make this accounting policy election would also be subject to additional disclosure requirements. ASU 2022-05 is effective for all entities that adopt ASU 2018-12. Specifically, the effective dates are as follows: 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. For all other entities, fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025. Early application is permitted. The Company evaluated the impact that ASU 2022-05 has on the Company's consolidated financial statements and related disclosures, as a result of the evaluation the ASU 2022-05 does not have an impact on consolidated financial statements. Since its initial issuance, the FASB has deferred the ASU 2018-12 effective date for two years. The amendments are now effective for SEC filers that are not small reporting companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. For all other entities the effective date is now for fiscal years beginning after December 15, 2024, or interim periods after December 15, 2025. As of November 15, 2019, the Company met the definition of a smaller reporting company and is currently evaluating the impact that the standard will have on its 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): Common Control Arrangements”. 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. In March 2023, the FASB issued Accounting Standards Update No. 2023-02 “Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects”, which amended Subtopic 323-740, Investments—Equity Method and Joint Ventures—Income Taxes, introduced the option to apply the proportional amortization method to account for investments made primarily for the purpose of receiving income tax credits and other income tax benefits when certain requirements are met. The amendments in this Update apply to all reporting entities that hold (1) tax equity investments that meet the conditions for and elect to account for them using the proportional amortization method or (2) an investment in a LIHTC structure through a limited liability entity that is not accounted for using the proportional amortization method and to which certain LIHTC-specific guidance removed from Subtopic 323-740 has been applied. The amendments in this Update permit reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2024, 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 the Update No. 2023-02 will not have an impact on its consolidated financial statements and related disclosures. In August 2023, FASB issued Accounting Standards Update No. 2023-05 “Business Combinations— Joint Venture Formations (Subtopic 805-60)” that provides a new basis of accounting upon formation of a joint venture to reduce diversity in practice and provide investors with decision-useful information. The amendments in Update 2023-05 require that a joint venture, upon formation, initially measures its assets and liabilities at fair value (with exceptions to fair value measurements that are consistent with other new combinations guidance). It requires that a joint venture apply the following key adaptations from business combinations guidance upon formation: (1) a joint venture is the formation of a new entity without the accounting acquirer, (2) a joint venture measures its identifiable net assets and goodwill if any, at the formation date, (3) initial measurement of a joint venture’s total net assets is equal to the fair value of 100 percent of the joint venture’s equity, (4) a joint venture provides relevant disclosures, the requirements for joint venture disclosures upon formation are different from the requirements for business combinations. In case that the formation is incomplete by the end of the reporting period in which the formation occurs, the amendments in this Update permit a joint venture to apply measurement period guidance in Subtopic 805-10. The amendments in this Update are effective for all joint venture formations with formation dates on or after January 1, 2025, and may be used retrospectively if sufficient information is available. Early adoption is permitted in any interim or annual period in which financial statements have not yet been issued, either prospectively or retrospectively. The Company is currently evaluating the impact that ASU No. 2023-05 will have on its consolidated financial statements and related disclosures. In October 2023, FASB issued Accounting Standard Update No. 2023-06 “Disclosure Improvements” that modifies the disclosure or presentation requirements of several Topics in the Codification. The following is the summary of amendments made to codification subtopics: • 230-10 Statement of Cash Flows – Overall. Requires an accounting policy disclosure in annual periods of where the cash flow is associated with derivative instruments and their related gains and losses are presented in the statement of cash flows. • 250-10 Accounting Changes and Error Corrections— Overall. Requires that when there has been a change in the reporting entity, the entity disclose any material prior-period adjustment and the effect of the adjustment on retained earnings in interim financial statements. • 260-10 Earnings Per Share— Overall. Requires disclosure of the methods used in the diluted earnings-per-share computation for each dilutive security and clarifies that certain disclosures should be made during interim periods. Amends illustrative guidance to illustrate disclosure of the methods used in the diluted earnings-per-share computation. • 270-10 Interim Reporting— Overall. Conforms to the amendments made to Topic 250. • 440-10 Commitments—Overall. Requires disclosure of assets mortgaged, pledged, or otherwise subject to lien and the obligations collateralized. • 470-10 Debt—Overall. Requires disclosure of amounts and terms of unused lines of credit and unfunded commitments and the weighted-average interest rate on outstanding short-term borrowings. Entities that are not public business entities are not required to provide information about the weighted-average interest rate. • 505-10 Equity—Overall. Requires entities that issue preferred stock to disclose preference in involuntary liquidation if the liquidation preference is other than par or stated value. • 815-10 Derivatives and Hedging—Overall. Adds cross-reference to disclosure requirements related to where cash flows associated with derivative instruments and their related gains and losses are presented in the statement of cash flows in Topic 230. • 860-30 Transfers and Servicing—Secured Borrowing and Collateral. Requires (a) that accrued interest be included in the disclosure of liabilities incurred in securities borrowing or repurchase or resale transactions; (b) Separate presentation of the aggregate carrying amount of reverse repurchase agreements on the face of the balance sheet if that amount exceeds 10 percent of total assets; (c) Disclosure of the weighted-average interest rates of repurchase liabilities for public business entities; (d) Disclosure of amounts at risk with an individual counterparty if that amount exceeds more than 10 percent of stockholder’s equity; (e) Disclosure for reverse repurchase agreements that exceed 10 percent of total assets on whether there are any provisions in a reverse repurchase agreement to ensure that the market value of the underlying assets remains sufficient to protect against counterparty default and, if so, the nature of those provisions. • 932-235 Extractive Activities— Oil and Gas—Notes to Financial Statements. Requires that paragraphs 932-235-50-3 through 50-36 be applicable for each annual period presented in the financial statements. • 946-20 Financial Services— Investment Companies— Investment Company Activities. Requires that investment companies disclose the components of capital on the balance sheet. • 974-10 Real Estate—Real Estate Investment Trusts—Overall. Requires disclosure for annual reporting periods of the tax status of distributions per unit (for example, ordinary income, capital gain, and return of capital) for a real estate investment trust. Entities under SEC disclosure requirements and those filing financial statements with the SEC for issuing securities without transfer restrictions will adopt the amendments on the date when the SEC removes the related disclosure from Regulation S-X or Regulation S-K, without the option for early adoption. Other entities will implement the changes two years later. The amendments should be applied prospectively. If by June 30, 2027, the SEC has not removed the applicable requirements from Regulation S-X or Regulation S-K, the pending amendment will be removed from the Codification and won’t be effective for any entity. The Company is currently evaluating the impact that ASU No. 2023-06 will have on its consolidated financial statements and related disclosures. In October 2023, FASB issued an Accounting Standard Update No. 2023-07 “Segment Reporting (Topic 280)” that provides improvements to segment reporting disclosure, as segment information is one of the crucial pieces of information that investors look for in financial reports. The amendments in this Update can be summarized as follows: • Public entity is required to disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit or loss (“significant expense principle”). • Public entity is required to disclose, on an annual and interim basis, an amount of other segment items by reportable segment and a description of its composition. This category is the difference between segment revenue less expenses (disclosed under significant expense principle) and each reported measure of segment profit or loss. • Public entities are required to provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods. • Entities to clarify if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures of segment profit. However, among these measures, at least one should align with the principles used to measure similar amounts in the company's consolidated financial statements, following GAAP. This means that while a company must report the primary measure consistent with GAAP, they can also disclose other segment profit or loss measures utilized by their management for assessing segment performance and resource allocation. • Public entity is required to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. • Public entity that has a single reportable segment is required to provide all the disclosures required by the amendments in this Update and all existing segment disclosures in Topic 280. The amendments in this Update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. Public entities should apply the amendments retrospectively to all prior periods presented. The Company is currently evaluating the impact that ASU No. 2023-07 will have on its consolidated financial statements and related disclosures. In December 2023, FASB issued an Accounting Standard Update No. 2023-08 “Intangibles—Goodwill and Other— Crypto Assets (Subtopic 350-60)” that provides improvements to the accounting and disclosure of crypto assets. The amendments in this update are applicable to the assets that meet the following criteria: meet the definition of intangible assets as defined in the Codification; do not provide the holder with enforceable rights to or claims on underlying assets, services or other assets; are created or reside on a distributed ledger based on a blockchain or similar technology; are secured through cryptography; are fungible; are not issued or created by the reporting entity or its related parties. The amendments require that assets that meet the criteria above are measured at fair value with changes recognized in the net income each reporting period. Entity is also required to present crypto assets measured at fair value separately from other intangible assets in the balance sheet and changes from the remeasurement of crypto assets separately from changes in the carrying amounts of other intangible assets in the income statement. The amendments also require specific presentation of cash receipts arising from crypto assets that are received as non-cash considerations in the ordinary course of business and are converted almost immediately into cash, however, there are no changes to the presentation requirements for the statement of cash flow. For annual and interim reporting periods, entities are required to disclose: (1) name, cost basis, fair value, number of units of each significant crypto asset holding and aggregate fair values and cost bases asset holdings that are not individually significant; (2) the fair value of those crypto assets, that are subject to contractual sale restrictions. For annual reporting periods, entities are required to disclose: (1) a rollforward (aggregate) of activity in the reporting period, including additions (with description of activities that led to additions), dispositions, gains and losses; (2) for any dispositions of crypto asset holdings, the difference between the disposal price and the cost basis (with the description that led to disposition); (3) if gains and losses are not presented separately, the income statement line where those gains and losses are recognized; (4) the method for determining the cost basis of crypto assets. The amendments in this Update are effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual periods. The amendment requires a cumulative- effect adjustment to the opening balance of the retained earnings as of the beginning of the annual reporting in which the entity adopts the amendments. The Company is currently evaluating the impact that ASU No. 2023-08 will have on its consolidated financial statements and related disclosures. In December 2023, FASB issued an Accounting Standard Update No. 2023-09 “Income Taxes (Topic 740)” to enhance the transparency and decision usefulness of income tax disclosure. The amendments in this Update mandate public entities to disclose specific categories in the rate reconciliation and additional information for reconciling items that meet quantitative threshold in the annual tax rate reconciliations. Update requires to present a table showing percentages and currency amounts, outlining tax related aspects such as state/local income tax, foreign tax effect, changes in tax law, credits, valuation allowances, nontaxable and nondeductible items, unrecognized tax benefits. Items that impact tax calculations by 5% and more are required to be disclosed separately, with certain categories required to be disaggregated by jurisdiction or nature. Reconciling items are categorized based on state/local, foreign, or federal/national tax levels. Some items can be presented on a net basis, while others need gross presentation. Entities must provide explanations of the major state/local jurisdictions affecting taxes and explain individual reconciling items. For non-public business entities, qualitative disclosure on significant differences between statutory and effective tax rates is required. Additionally, the amendments in this Update require that all entities must disclose amount of income taxes paid disaggregated by federal(national) state and by individual jurisdictions in which income taxes paid if equal to or greater than 5% of total income taxes paid. The amendments also require entities to disclose income from continuing |
DESCRIPTION OF BUSINESS (Tables
DESCRIPTION OF BUSINESS (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule Of Wholly Owned Subsidiaries | As of December 31, 2023, the Company owned directly, or through subsidiaries, the following companies: Name of subsidiary Jurisdiction of Incorporation Number of subsidiaries Business Area Freedom Finance JSC ("Freedom KZ") Kazakhstan 3 Securities broker-dealer Freedom Finance Global PLC ( "Freedom Global") Kazakhstan — Securities broker-dealer Bank Freedom Finance Kazakhstan JSC ("Freedom Bank KZ") Kazakhstan 1 Commercial bank Freedom Finance Life JSC ("Freedom Life") Kazakhstan — Life/health insurance Freedom Finance Insurance JSC ("Freedom Insurance") Kazakhstan — General insurance Ticketon Events LLP ("Ticketon") Kazakhstan 3 Online ticket sales Freedom Finance Special Purpose Company LTD ("Freedom SPC") Kazakhstan — Issuance and placement of debt securities Freedom Finance Commercial LLP Kazakhstan — Sales consulting ITS Tech Limited Kazakhstan — IT support Freedom Technologies LLP ("Paybox") Kazakhstan 5 Payment services Aviata LLP ("Aviata") Kazakhstan — Online travel ticket aggregator Internet-Tourism LLP ("Internet Tourism) Kazakhstan — Online travel ticket aggregator Arbuz Group LLP ("Arbuz") Kazakhstan 3 Online retail trade and e-commerce Comrun LLP ("ReKassa") Kazakhstan — Mobile and web application Freedom Telecom Holding Limited ("Freedom Telecom") Kazakhstan 2 Telecommunications Freedom Kazakhstan PC Ltd Kazakhstan 6 Non-financial Freedom Advertising Ltd Kazakhstan — Advertising Freedom Shapagat Corporate Fund Kazakhstan — Non-profit FRHC Fractional SPC LTD Kazakhstan — Issuance and placement of debt securities Foreign Enterprise LLC Freedom Finance Uzbekistan — Securities broker-dealer Freedom Finance Armenia LLC ("Freedom AR") Armenia — Securities broker-dealer Freedom Finance Azerbaijan LLC Azerbaijan — Financial educational center Freedom Finance FZE. UAE — Office of international organization Freedom Management Ltd. UAE — Consulting Freedom Finance Turkey LLC Turkey — Financial consulting Freedom Finance Europe Limited ("Freedom EU") Cyprus 2 Securities broker-dealer Freedom Finance Technologies Ltd Cyprus — IT development Freedom Property Ltd Cyprus — Asset management Freedom Finance Germany GmbH Germany — Tied agent of Freedom EU Freedom Prime UK Limited ("Prime UK") UK — Management consulting Freedom Structured Products PLC Cyprus — Financial services Prime Executions, Inc. ("PrimeEx") USA — Securities broker-dealer and investment banking FFIN Securities, Inc. USA — Dormant Freedom U.S. Market LLC USA 1 Management company LD Micro ("LD Micro") USA — Event platform |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Dec. 31, 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 December 31, 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 Foreign currency translation difference 386 — — — 386 Acquired 3,176 — — — 3,176 Balance as of December 31, 2022 8,666 — 1,626 — 10,292 Balance as of March 31, 2023 $ 7,624 $ — $ 7,400 $ — $ 15,024 Write-off due to deconsolidation of Freedom UA (832) — — — (832) Foreign currency translation difference 89 — — — 89 Acquired 37,957 — — — 37,957 Balance as of December 31, 2023 44,838 — 7,400 — 52,238 Accumulated impairment Balance as of March 31, 2022 $ 832 $ — $ — $ — $ 832 Impairment expense — — — — — Balance as of December 31, 2022 832 — — — 832 Balance as of March 31, 2023 $ 832 $ — $ — $ — $ 832 Impairment expense — — — — — Write-off due to deconsolidation of Freedom UA (832) — — — (832) Balance as of December 31, 2023 — — — — — Goodwill, net of impairment Balance as of December 31, 2022 $ 7,834 $ — $ 1,626 $ — $ 9,460 Balance as of March 31, 2023 $ 6,792 $ — $ 7,400 $ — $ 14,192 Balance as of December 31, 2023 $ 44,838 $ — $ 7,400 $ — $ 52,238 |
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 (2,671) Foreign currency translation difference effect (1) Decrease to retained earnings, net of tax effect $ 22,772 |
Revision of prior period statements | The following tables summarize the impact of the correction of mathematical errors for the three and nine months ended December 31, 2022: Three months ended December 31, 2022 As previously reported Correction of error related to EPS As restated Earnings from discontinued operations per common share - basic, USD 0.59 (0.32) 0.27 Earnings from discontinued operations per common share - diluted, USD 0.58 (0.31) 0.27 Earnings per common share - basic, USD 1.38 (0.32) 1.06 Earnings per common share - diluted, USD 1.36 (0.31) 1.05 Nine months ended December 31, 2022 As previously reported Correction of error related to EPS As restated Earnings from discontinued operations per common share - basic, USD 0.49 (0.32) 0.17 Earnings from discontinued operations per common share - diluted, USD 0.48 (0.31) 0.17 Earnings per common share - basic, USD 2.86 (0.32) 2.54 Earnings per common share - diluted, USD 2.81 (0.31) 2.50 |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash and cash equivalents | As of December 31, 2023, and March 31, 2023, cash and cash equivalents consisted of the following: December 31, 2023 March 31, 2023 Short term deposits in National Bank (Kazakhstan) $ 237,145 $ 357,454 Short term deposits in commercial banks 129,915 83,755 Securities purchased under reverse repurchase agreements 107,262 29,812 Petty cash in bank vault and on hand 49,717 35,998 Short term deposits in stock exchanges 34,696 31,691 Short term deposits on brokerage accounts 2,793 37,417 Overnight deposits 429 1,926 Cash in transit 219 3,364 Short term deposits in the Central Depository (Kazakhstan) 54 — Allowance for Cash and cash equivalents (347) — Total cash and cash equivalents $ 561,883 $ 581,417 |
Schedule of repurchase agreements | as of December 31, 2023, and March 31, 2023 are presented below: December 31, 2023 Interest rates and remaining contractual maturity of the agreements Average interest rate Up to 30 days Securities purchased under reverse repurchase agreements Non-US sovereign debt 9.77 % $ 39,123 Corporate equity 16.32 % 34,417 US sovereign debt 5.37 % 23,693 Corporate debt 5.30 % 10,029 Total $ 107,262 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) | 9 Months Ended |
Dec. 31, 2023 | |
Restricted Cash [Abstract] | |
Schedule of restrictions on cash | Restricted cash for the periods ended December 31, 2023, and March 31, 2023, consisted of: December 31, 2023 March 31, 2023 Brokerage customers’ cash $ 280,404 $ 328,435 Guaranty deposits 104,838 116,628 Restricted bank accounts 8,013 10,436 Deferred distribution payments 23 23 Allowance for restricted cash (8,725) (9,994) Total restricted cash $ 384,553 $ 445,528 |
TRADING AND AVAILABLE-FOR-SAL_2
TRADING AND AVAILABLE-FOR-SALE SECURITIES AT FAIR VALUE (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Debt Securities, Trading, and Equity Securities, FV-NI [Abstract] | |
Debt Securities, Trading, and Equity Securities, FV-NI | As of December 31, 2023, and March 31, 2023, trading and available-for-sale securities consisted of: December 31, 2023 March 31, 2023 Non-U.S. sovereign debt $ 2,370,508 $ 1,029,857 Corporate debt 1,165,732 1,269,879 Corporate equity 99,589 65,741 U.S. sovereign debt 43,231 45,022 Exchange traded notes 1,393 2,057 Total trading securities $ 3,680,453 $ 2,412,556 |
Debt Securities, Available-for-Sale | December 31, 2023 March 31, 2023 Corporate debt $ 127,402 $ 191,082 Non-U.S. sovereign debt 62,987 40,162 U.S. sovereign debt 12,108 7,809 Total available-for-sale securities, at fair value $ 202,497 $ 239,053 |
Investments Classified by Contractual Maturity Date | The following tables present maturity analysis for available-for-sale securities as of December 31, 2023, and March 31, 2023: December 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 34,691 48,898 43,803 10 127,402 Non-US sovereign debt 43,581 7,054 5,718 6,634 62,987 US sovereign debt 9,145 — 1,700 1,263 12,108 Total available-for-sale securities, at fair value $ 87,417 $ 55,952 $ 51,221 $ 7,907 $ 202,497 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 December 31, 2023, and March 31, 2023: Weighted Average Total Fair Value Measurements as of December 31, 2023 using Quoted Prices in Significant Significant Unobservable (Level 1) (Level 2) (Level 3) Non-U.S. sovereign debt 12.51 % $ 2,370,508 $ 1,443,144 $ 927,330 $ 34 Corporate debt 15.52 % 1,165,732 397,767 751,490 16,475 Corporate equity — % 99,589 77,577 1,603 20,409 U.S. sovereign debt 4.71 % 43,231 43,231 — — Exchange traded notes — % 1,393 908 485 — Total trading securities $ 3,680,453 $ 1,962,627 $ 1,680,908 $ 36,918 Corporate debt 16.67 % $ 127,402 $ 40,645 $ 86,757 $ — Non-US sovereign debt 13.51 % 62,987 50,557 12,430 — US sovereign debt 4.37 % 12,108 12,108 — — Total available-for-sale securities, at fair value $ 202,497 $ 103,310 $ 99,187 $ — 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 December 31, 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 December 31, 2023 Significant Unobservable Inputs % Corporate debt DCF $ 16,220 Discount rate 11.1% Estimated number of years 2 years Corporate debt DCF 255 Discount rate 74.0% Estimated number of years 3 months Corporate equity DCF 20,022 Discount rate 13.0% Estimated number of years 4 years, 6 months Non-U.S. sovereign debt DCF 34 Discount rate 48.8% Estimated number of years 11 years Corporate equity DCF 387 Discount rate 58.8% Estimated number of years 9 years Total $ 36,918 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 nine months ended December 31, 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 35,805 Deconsolidation of Freedom UA securities (3,927) Revaluation of investments that use Level 3 inputs 458 Reclassification to investment in associate (556) Balance as of December 31, 2023 $ 36,918 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 December 31, 2023, and March 31, 2023: December 31, 2023 Assets measured at amortized cost Recognized impairment loss in Income Statement Unrealized loss accumulated in other comprehensive Assets Maturity Date Corporate debt $ 127,073 $ (61) $ 390 $ 127,402 2024-2035 Non-US sovereign debt 64,799 (281) (1,531) 62,987 2024-indefinite U.S. sovereign debt 12,776 — (668) 12,108 2024-2044 Total available-for-sale securities, at fair value $ 204,648 $ (342) (1,809) $ 202,497 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) | 9 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of brokerage and other receivables | Margin lending, brokerage and other receivables as of December 31, 2023, and March 31, 2023, consisted of: December 31, 2023 March 31, 2023 Margin lending receivables $ 941,456 $ 361,684 Bank commissions receivable 8,385 6,035 Receivables from payment processing services 7,291 1,158 Receivables from brokerage clients 2,946 7,302 Receivable for underwriting and market-making services 539 2,317 Other receivables 12,701 10,340 Allowance for receivables (11,926) (12,507) Total margin lending, brokerage and other receivables, net $ 961,392 $ 376,329 |
LOANS ISSUED (Tables)
LOANS ISSUED (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans issued as of December 31, 2023, consisted of the following: Amount Outstanding Due Dates Weighted Average Interest Rate Fair Value of Collateral Loan Currency Mortgage loans 693,167 February, 2024 - December, 2048 10.30% 692,016 KZT Car loans 274,980 January, 2024 - December, 2030 23.70% 264,953 KZT Uncollateralized bank customer loans 243,029 January, 2024- December, 2043 27.10% — KZT Right of claim for purchased retail loans 142,970 January, 2024 - December, 2028 15.00% 142,970 KZT Collateralized bank customer loans 21,104 January, 2024 - July, 2043 20.97% 20,748 KZT Subordinated loan 5,038 December, 2025 3.00% — USD Other 12,391 January, 2024 - September, 2029 9.10%/3%/16%/2.4% 24 UAH/USD/KZT/EUR Allowance for loans issued (46,674) Total loans issued $ 1,346,005 Loans issued as of March 31, 2023, consisted of the following: Amount Outstanding Due Dates Weighted 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 |
Financing Receivable Credit Quality Indicators | The table below presents the Group's loan portfolio by credit quality classification and origination year as of December 31, 2023. Current vintage disclosure is the requirement due to first adoption of ASC 326. Term Loans by Origination Year 2024 2023 2022 2021 2020 Prior Revolving loans Total Mortgage loans 192,157 459,089 41,921 — — — — 693,167 that are not credit impaired 192,021 457,138 41,687 — — — — 690,846 with significant increase in credit risk 108 1,333 138 — — — — 1,579 that are credit impaired 28 618 96 — — — — 742 Car loans 202,591 72,389 — — — — — 274,980 that are not credit impaired 200,842 62,915 — — — — — 263,757 with significant increase in credit risk 942 2,122 — — — — — 3,064 that are credit impaired 807 7,352 — — — — — 8,159 Uncollateralized bank customer loans 206,378 36,643 8 — — — — 243,029 that are not credit impaired 201,802 33,768 — — — — — 235,570 with significant increase in credit risk 2,873 1,030 — — — — — 3,903 that are credit impaired 1,703 1,845 8 — — — — 3,556 Right of claim for purchased retail loans 117,226 25,361 383 — — — — 142,970 that are not credit impaired 117,199 25,359 383 — — — — 142,941 with significant increase in credit risk 27 2 — — — — — 29 that are credit impaired — — — — — — — — Collateralized bank customer loans 20,760 344 — — — — — 21,104 that are not credit impaired 20,657 344 — — — — — 21,001 with significant increase in credit risk 40 — — — — — — 40 that are credit impaired 63 — — — — — — 63 Subordinated loan — 5,038 — — — — — 5,038 that are not credit impaired — 5,038 — — — — — 5,038 with significant increase in credit risk — — — — — — — — that are credit impaired — — — — — — — — Other 8,078 1,337 — — 2,976 — — 12,391 that are not credit impaired 1,290 116 — — — — — 1,406 with significant increase in credit risk — — — — — — — — that are credit impaired 6,788 1,221 — — 2,976 — — 10,985 Total 747,190 600,201 42,312 — 2,976 — — 1,392,679 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 Right of claim for purchased retail loans 121,055 122 — 121,177 Car loans 102,269 — — 102,269 Uncollateralized Bank customer loans 46,882 81 7 46,970 Collateralized Bank customer loans 17,653 — — 17,653 Subordinated loan 5,039 — — 5,039 Loans issued to policyholders 1,488 — — 1,488 Other 300 — — 300 Total loans $ 827,307 $ 1,708 $ 35 $ 829,050 |
Financing Receivable, Past Due | Aging analysis of past due loans as of December 31, 2023 and March 31, 2023, is as follows: December 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 1,151 428 742 690,846 693,167 Car loans 1,862 1,202 8,159 263,757 274,980 Uncollateralized bank customer loans 2,100 1,803 3,556 235,570 243,029 Right of claim for purchased retail loans 29 — — 142,941 142,970 Collateralized bank customer loans 40 — 63 21,001 21,104 Subordinated loan — — — 5,038 5,038 Other — — 10,985 1,406 12,391 Total 5,182 3,433 23,505 1,360,559 1,392,679 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 Right of claim for purchased retail loans 123 — — 121,054 121,177 Car loans — — — 102,269 102,269 Uncollateralized Bank customer loans 73 8 7 46,882 46,970 Collateralized Bank customer loans — — — 17,653 17,653 Subordinated loan — — — 5,039 5,039 Loans issued to policyholders — — — 1,488 1,488 Other — — — 300 300 Total $ 1,461 $ 248 $ 35 $ 827,306 $ 829,050 |
Financing Receivable, Allowance for Credit Loss | The activity in the allowance for credit losses as of December 31, 2023 and December 31, 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 (1,760) (16,846) (84) (13,013) (10,493) (11,008) (53,204) Recoveries 1,782 9,826 58 7,096 15,617 — 34,379 Foreign currency translation difference 17 16 1 17 87 — 138 December 31, 2023 (2,731) (14,673) (60) (13,120) (5,082) (11,008) (46,674) 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 (305) (16) — — (1,308) — (1,629) Charges (2,816) (79) (15) (2,559) (11,301) — (16,770) Recoveries 709 23 8 36 3,295 — 4,071 Foreign currency translation difference (80) (1) (1) (78) (223) — (383) December 31, 2022 $ (2,492) $ (73) $ (8) $ (2,601) $ (9,537) $ — $ (14,711) |
SECURITIES REPURCHASE AGREEME_2
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Securities Sold under Agreements to Repurchase [Abstract] | |
Schedule of securities under repurchase agreement obligations | As of December 31, 2023, and March 31, 2023, trading securities included collateralized securities subject to repurchase agreements as described in the following table: December 31, 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 15.59 % $ 1,746,953 $ 177,315 $ 1,924,268 Corporate debt 15.39 % 873,834 71,216 945,050 US sovereign debt 2.70 % 19,838 — 19,838 Corporate equity 1.00 % 17 — 17 Total securities sold under repurchase agreements $ 2,640,642 $ 248,531 $ 2,889,173 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) | 9 Months Ended |
Dec. 31, 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 December 31, 2023, and March 31, 2023 , customer liabilities consisted of: December 31, 2023 March 31, 2023 Amount Interest Amount Interest Interest bearing deposits: Term deposits 1,182,839 0.05% - 16.9% 832,751 0.1% - 16.9% Total Interest bearing deposits $ 1,182,839 $ 832,751 Non-interest-bearing deposits: Brokerage customers 693,174 633,542 Current customer accounts 372,029 458,954 Total non-interest-bearing accounts $ 1,065,203 $ 1,092,496 Total customer liabilities 2,248,042 $ 1,925,247 |
MARGIN LENDING AND TRADE PAYA_2
MARGIN LENDING AND TRADE PAYABLES (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Accounts Payable [Abstract] | |
Schedule of trade payables | As of December 31, 2023, and March 31, 2023 , margin lending and trade payables of the Group were comprised of the following: December 31, 2023 March 31, 2023 Margin lending payable $ 120,034 $ 117,144 Payables to merchants 16,152 382 Payables to suppliers of goods and services 6,683 2,965 Trade payable for securities purchased 479 482 Other 2,456 1,927 Total margin lending and trade payables $ 145,804 $ 122,900 |
DEBT SECURITIES ISSUED (Tables)
DEBT SECURITIES ISSUED (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Debt Securities [Abstract] | |
Schedule of outstanding debt securities of the company | As of December 31, 2023, and March 31, 2023, outstanding debt securities issued by the Group included the following: December 31, 2023 March 31, 2023 Interest rate Issue date Maturity date Freedom SPC bonds due 2028 200,407 — 1-2 years: 12% 3-5 years: EFFR + 6.5% December, 2023 December, 2028 Freedom SPC bonds due 2026 $ 64,482 $ 58,582 5.5% October, 2021 October, 2026 Accrued interest 1,421 1,443 Total debt securities issued $ 266,310 $ 60,025 |
INSURANCE CONTRACTS ASSETS AN_2
INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Insurance [Abstract] | |
Insurance and reinsurance receivables | As of December 31, 2023, and March 31, 2023, insurance and reinsurance receivables of the Group was comprised of the following: December 31, 2023 March 31, 2023 Assets: Amounts due from policyholders $ 7,301 $ 9,699 Claims receivable from reinsurance 1,316 1,087 Amounts due from reinsured 478 555 Advances received from agent 121 — Allowance for estimated uncollectible reinsurance (778) (1,325) Insurance and reinsurance receivables: 8,438 10,016 Unearned premium reserve, reinsurers’ share 2,282 2,379 Reserves for claims and claims’ adjustment expenses, reinsurers’ share 2,008 1,390 Total $ 12,728 $ 13,785 |
Insurance and reinsurance payables | As of December 31, 2023, and March 31, 2023, insurance and reinsurance payable of the Group was comprised of the following: December 31, 2023 March 31, 2023 Liabilities: Amounts payable to agents and brokers 3,599 $ 2,466 Amounts payable to reinsurers 2,410 2,002 Amounts payable to insured 2,114 1,807 Insurance and reinsurance payables: 8,123 6,275 Unearned premium reserve 46,000 43,082 Reserves for claims and claims’ adjustment expenses 188,056 133,145 Total $ 242,179 $ 182,502 |
FEE AND COMMISSION INCOME (Tabl
FEE AND COMMISSION INCOME (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disclosure of fee and commission income | During the three months ended December 31, 2023, and December 31, 2022, fee and commission income was comprised of: Three months ended December 31, 2023 Central Asia and Eastern Europe Europe excluding Eastern Europe The United States Middle East/Caucasus Total Brokerage services $ 65,451 $ 32,285 $ 1,223 $ 854 $ 99,813 Commission income from payment processing 8,977 — — — 8,977 Underwriting and market-making services 1,502 — 1,842 — 3,344 Bank services 1,331 — — — 1,331 Other fee and commission income 5,293 300 1,101 — 6,694 Total fee and commission income $ 82,554 $ 32,585 $ 4,166 $ 854 $ 120,159 Three months ended December 31, 2022 Central Asia and Eastern Europe Europe excluding Eastern Europe The United States Total Brokerage service $ 19,490 $ 47,893 $ 1,149 $ 68,532 Bank services 5,507 — — 5,507 Underwriting and market-making services 4,778 — — 4,778 Other fee and commission income 1,473 593 — 2,066 Total fee and commission income $ 31,248 $ 48,486 $ 1,149 $ 80,883 Nine months ended December 31, 2023 Central Asia and Eastern Europe Europe excluding Eastern Europe The United States Middle East/Caucasus Total Brokerage service $ 159,072 $ 75,274 $ 3,295 $ 1,967 $ 239,608 Commission income from payment processing 37,318 — — — 37,318 Bank services 23,480 — — 23,480 Underwriting and market-making services 7,971 — 7,114 — 15,085 Other fee and commission income 12,324 725 2,025 — 15,074 Total fee and commission income $ 240,165 $ 75,999 $ 12,434 $ 1,967 $ 330,565 Nine months ended December 31, 2022 Central Asia and Eastern Europe Europe excluding Eastern Europe The United States Total Brokerage service $ 31,814 $ 192,330 $ 3,332 $ 227,476 Bank services 15,100 — — 15,100 Underwriting and market-making services 8,008 — — 8,008 Other fee and commission income 1,793 1,109 — 2,902 Total fee and commission income $ 56,715 $ 193,439 $ 3,332 $ 253,486 |
NET (LOSS)_GAIN ON TRADING SE_2
NET (LOSS)/GAIN ON TRADING SECURITIES (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of net gain on trading securities | During the three months ended December 31, 2023, and December 31, 2022, net (loss)/gain on trading securities was comprised of: Three Months Ended December 31, 2023 Three Months Ended December 31, 2022 Net gain/(loss) recognized during the period on trading securities sold during the period $ 9,353 $ (47,801) Net unrealized (loss)/gain recognized during the reporting period on trading securities still held at the reporting date (14,442) 73,257 Net (loss)/gain recognized during the period on trading securities $ (5,089) $ 25,456 Nine Months Ended December 31, 2023 Nine Months Ended December 31, 2022 Net gain/(loss) recognized during the period on trading securities sold during the period $ 61,276 $ (26,790) Net unrealized gain recognized during the reporting period on trading securities still held at the reporting date 16,222 65,684 Net gain recognized during the period on trading securities $ 77,498 $ 38,894 |
NET INTEREST INCOME_EXPENSE (Ta
NET INTEREST INCOME/EXPENSE (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Interest Income and Interest Expense Disclosure | Net interest income/expense for the three months ended December 31, 2023, and December 31, 2022 includes: Three Months Ended December 31, 2023 Three Months Ended December 31, 2022 Interest income: Interest income on trading securities $ 112,860 $ 44,760 Interest income on margin loans to customers 51,553 12,379 Interest income on loans to customers 49,529 12,327 Interest income on securities available-for-sale 7,478 6,727 Interest income on reverse repurchase agreements and amounts due from banks 5,025 $ 4,062 Total interest income $ 226,445 $ 80,255 Interest expense: Interest expense on securities repurchase agreement obligations $ 110,778 $ 39,958 Interest expense on customer accounts and deposits 15,653 11,149 Interest expense on margin lending payable 3,211 — Interest expense on debt securities issued 1,491 842 Interest expense on loans received 36 88 Other interest expense 54 — Total interest expense $ 131,223 $ 52,037 Net interest income $ 95,222 $ 28,218 Net interest income/expense for the nine months ended December 31, 2023, and December 31, 2022 includes: Nine Months Ended December 31, 2023 Nine Months Ended December 31, 2022 Interest income: Interest income on trading securities $ 313,739 $ 116,922 Interest income on loans to customers 123,730 24,158 Interest income on margin loans to customers 111,306 27,259 Interest income on securities available-for-sale 25,476 13,280 Interest income on reverse repurchase agreements and amounts due from banks 12,012 6,198 Other interest income 2,594 — Total interest income $ 588,857 $ 187,817 Interest expense: Interest expense on securities repurchase agreement obligations $ 303,242 $ 105,466 Interest expense on customer accounts and deposits 49,120 24,780 Interest expense on margin lending payable 9,671 — Interest expense on debt securities issued 3,387 2,457 Interest expense on loans received 89 268 Other interest expense 141 — Total interest expense $ 365,650 $ 132,971 Net interest income $ 223,207 $ 54,846 |
NET LOSS ON DERIVATIVES (Tables
NET LOSS ON DERIVATIVES (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments, Gain (Loss) | Three Months Ended December 31, 2023 Three Months Ended December 31, 2022 Net realized loss on derivatives (43,019) $ (21,469) Net unrealized gain on derivatives 451 — Total net loss on derivatives $ (42,568) $ (21,469) Nine Months Ended December 31, 2023 Nine Months Ended December 31, 2022 Net realized loss on derivatives (72,681) $ (22,523) Net unrealized gain on derivatives 886 — Total net loss on derivatives $ (71,795) $ (22,523) |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table presents related party transactions as of December 31, 2023, and March 31, 2023: December 31, 2023 March 31, 2023 Related party balances Total category as per financial statements captions Related party balances Total category as per financial statements captions ASSETS Cash and cash equivalents $ — $ 561,883 $ 35,549 $ 581,417 Companies controlled by management — 35,549 Restricted cash 67,215 $ 384,553 $ 114,885 $ 445,528 Companies controlled by management 67,215 114,885 Trading securities $ 16,220 $ 3,680,453 $ 556 $ 2,412,556 Companies controlled by management 16,220 556 Margin lending, brokerage and other receivables, net $ 43,241 $ 961,392 $ 295,611 $ 376,329 Management 14,036 4,209 Companies controlled by management 29,205 291,402 Loans issued $ 144,289 $ 1,346,005 $ 121,316 $ 826,258 Management 116 139 Companies controlled by management 144,173 121,177 Other assets, net $ 533 $ 88,244 $ 16,102 $ 73,463 Companies controlled by management 533 16,102 LIABILITIES Customer liabilities $ 112,701 $ 2,248,042 $ 130,210 $ 1,925,247 Management 5,243 19,789 Companies controlled by management 106,561 110,253 Other 897 168 Margin lending and trade payables $ 474 $ 145,804 $ 3,721 $ 122,900 Management 222 227 Companies controlled by management 252 3,494 Other liabilities $ 11,783 $ 61,447 $ 46 $ 30,060 Management 7,700 — Companies controlled by management 4,074 46 Other 9 — Three Months Ended December 31, 2023 2022 Related party transactions Total category as per financial statements captions Related party transactions Total category as per financial statements captions Revenue: Fee and commission income $ 30,112 $ 120,159 $ 44,590 $ 80,883 Management 226 149 Companies controlled by management 29,878 44,441 Other 8 — Interest income $ 7,566 $ 226,445 $ 10,796 $ 80,255 Management 208 — Companies controlled by management 7,358 10,796 Net gain on foreign exchange operations $ 593 $ 38,825 $ — $ 20,866 Management 13 — Companies controlled by management 580 — Expense: Fee and commission expense $ 55 $ 42,818 $ 2,304 $ 18,314 Companies controlled by management 55 2,304 Interest expense $ 230 $ 131,223 $ 82 $ 52,037 Management 62 1 Companies controlled by management 160 81 Other 8 — General and administrative expenses $ 1,502 $ 32,106 $ 600 $ 16,428 Management 226 105 Companies controlled by management 1,041 495 Other 235 — Nine Months Ended December 31, 2023 2022 Related party transactions Total category as per financial statements captions Related party transactions Total category as per financial statements captions Revenue: Fee and commission income $ 66,029 $ 330,565 $ 181,396 $ 253,486 Management 691 382 Companies controlled by management 65,322 181,014 Other 16 — Interest income $ 22,650 $ 588,857 $ 21,659 $ 187,817 Management 512 — Companies controlled by management 22,137 21,659 Other 1 — Net gain on foreign exchange operations $ 5,236 $ 54,430 $ — $ 30,014 Management 14 — Companies controlled by management 5,222 — Expense: Fee and commission expense $ 235 $ 103,116 $ 2,657 $ 60,068 Companies controlled by management 235 2,657 Interest expense $ 635 $ 365,650 $ 129 $ 132,971 Management 236 1 Companies controlled by management 384 128 Other 15 — General and administrative expenses $ 9,063 $ 86,211 $ 803 $ 40,943 Management 397 269 Companies controlled by management 8,346 534 Other 320 — |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
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 nine months ended December 31, 2023: Shares Weighted Outstanding, at March 31, 2023 467,058 18,035 Granted — — Vested (140,558) (5,448) Forfeited/cancelled/expired (4,500) (235) Outstanding, at December 31, 2023 322,000 12,352 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Dec. 31, 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 December 31, 2023: Classification on Balance Sheet December 31, 2023 Assets Operating lease assets Right-of-use assets $ 34,180 Total lease assets $ 34,180 Liabilities Operating lease liability Lease liability $ 34,614 Total lease liability $ 34,614 |
Disclosure of lease maturities | The following table presents as of December 31, 2023, the annual maturities of the lease liabilities: Leases maturing during twelve months ended March 31, 2024 $ 4,108 2025 11,228 2026 10,566 2027 8,517 2028 5,770 Thereafter 4,387 Total payments 44,576 Less: amounts representing interest (9,962) Lease liability, net $ 34,614 Weighted average remaining lease term (in months) 31 Weighted average discount rate 15 % |
ACQUISITIONS OF SUBSIDIARIES (T
ACQUISITIONS OF SUBSIDIARIES (Tables) | 9 Months Ended |
Dec. 31, 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 21,795 Total purchase price $ 31,318 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 640 Total purchase price $ 1,999 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 As of July 26, 2023 ASSETS Cash and cash equivalents $ 654 Brokerage and other receivables 125 Loans issued 177 Fixed assets 14 Intangible assets 1,679 Other assets 11 TOTAL ASSETS 2,660 LIABILITIES Trade payables 15 Lease liabilities 42 Other liabilities 48 TOTAL LIABILITIES 105 Net assets acquired 2,555 Goodwill 560 Purchase price 2,600 Non-cash consideration 259 Fair value of NCI 256 Total purchase price $ 3,115 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments | Total lending related commitments outstanding as of December 31, 2023, and March 31, 2023, were as follows: As of December 31, 2023 As of March 31, 2023 Unfunded commitments under lines of credits and guarantees $ 126,823 $ 20,617 Bank guarantees 7,342 7,001 Total $ 134,165 $ 27,618 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Dec. 31, 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 December 31, 2023 STATEMENTS OF OPERATIONS Central Asia and Eastern Europe Europe, excluding Eastern Europe United States Middle East/Caucasus Total Fee and commission income (1) $ 82,554 $ 32,585 $ 4,166 $ 854 $ 120,159 Net (loss)/ gain on trading securities (5,778) (85) 769 5 (5,089) Interest income 207,168 7,571 586 11,120 226,445 Insurance underwriting income 79,017 — — — 79,017 Net gain/(loss) on foreign exchange operations 39,031 (367) 76 85 38,825 Net loss on derivative (42,568) — — — (42,568) Other income/(expense) 1,910 (200) (11) 146 1,845 TOTAL REVENUE, NET 361,334 39,504 5,586 12,210 418,634 Fee and commission expense 37,393 5,040 329 56 42,818 Interest expense 127,861 3,168 138 56 131,223 Insurance claims incurred, net of reinsurance 40,989 — — — 40,989 Payroll and bonuses 31,101 9,154 3,365 1,463 45,083 Professional services 614 1,995 3,521 87 6,217 Stock compensation expense 701 82 256 — 1,039 Advertising expense 4,551 5,671 392 452 11,066 General and administrative expense 22,765 2,743 5,290 1,308 32,106 (Recovery)/allowance for expected credit losses (7,381) 3,893 (38) — (3,526) TOTAL EXPENSE 258,594 31,746 13,253 3,422 307,015 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 102,740 $ 7,758 $ (7,667) $ 8,788 $ 111,619 Income tax expense (244) (8,890) (6,262) (148) (15,544) INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 102,496 $ (1,132) $ (13,929) $ 8,640 $ 96,075 Nine months ended December 31, 2023 STATEMENTS OF OPERATIONS Central Asia and Eastern Europe Europe, excluding Eastern Europe United States Middle East/Caucasus Total Fee and commission income (1) 240,165 75,999 12,434 1,967 $ 330,565 Net gain on trading securities 76,894 350 68 186 77,498 Interest income 543,214 24,036 2,437 19,170 588,857 Insurance underwriting income 181,882 — — — 181,882 Net gain/(loss) on foreign exchange operations 54,962 (60) (696) 224 54,430 Net (loss)/gain on derivative (72,365) 570 — — (71,795) Other income 6,558 1,505 804 121 8,988 TOTAL REVENUE, NET 1,031,310 102,400 15,047 21,668 1,170,425 Fee and commission expense 87,568 14,523 877 148 103,116 Interest expense 346,393 17,326 1,857 74 365,650 Insurance claims incurred, net of reinsurance 96,491 — — — 96,491 Payroll and bonuses 85,489 18,253 10,404 2,565 116,711 Professional services 1,764 6,331 16,488 210 24,793 Stock compensation expense 2,230 255 818 — 3,303 Advertising expense 12,171 14,098 666 870 27,805 General and administrative expense 60,831 11,829 11,617 1,934 86,211 Allowance/(recovery) for expected credit losses 10,456 5,040 (34) — 15,462 TOTAL EXPENSE 703,393 87,655 42,693 5,801 839,542 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS 327,917 14,745 (27,646) 15,867 330,883 Income tax expense (432) (18,614) (31,665) (697) (51,408) INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 327,485 $ (3,869) $ (59,311) $ 15,170 $ 279,475 Three months ended December 31, 2022 STATEMENTS OF OPERATIONS Central Asia and Eastern Europe Europe, excluding Eastern Europe United States Middle East/Caucasus Total Fee and commission income (1) $ 31,248 $ 48,486 $ 1,149 $ — $ 80,883 Net gain/(loss) on trading securities 28,080 819 (3,443) — 25,456 Interest income 66,324 11,417 2,500 14 80,255 Insurance underwriting income 28,557 — — — 28,557 Net gain/(loss) on foreign exchange operations 20,402 313 152 (1) 20,866 Net loss on derivative (21,469) — — — (21,469) Other (expense)/income (647) 74 — 3 (570) TOTAL REVENUE, NET 152,495 61,109 358 16 213,978 Fee and commission expense 10,110 7,933 255 16 18,314 Interest expense 43,880 4,590 3,567 — 52,037 Insurance claims incurred, net of reinsurance 17,418 1 — — 17,419 Payroll and bonuses 13,937 5,795 1,563 315 21,610 Professional services 859 2,483 2,385 174 5,901 Stock compensation expense — — 2,939 — 2,939 Advertising expense 2,255 1,356 110 9 3,730 General and administrative expense 11,443 3,190 1,658 137 16,428 Allowance for expected credit losses 12,767 11,363 10 — 24,140 TOTAL EXPENSE 112,669 36,711 12,487 651 162,518 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 39,826 $ 24,398 $ (12,129) $ (635) $ 51,460 Income tax expense (95) (4,557) (398) (19) (5,069) INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 39,731 $ 19,841 $ (12,527) $ (654) $ 46,391 Nine months ended December 31, 2022 STATEMENTS OF OPERATIONS Central Asia and Eastern Europe Europe, excluding Eastern Europe United States Middle East/Caucasus Total Fee and commission income (1) $ 56,715 $ 193,439 $ 3,332 $ — $ 253,486 Net gain/(loss) on trading securities 65,497 (21,815) (4,788) — 38,894 Interest income 154,300 24,014 9,489 14 187,817 Insurance underwriting income 78,998 — — — 78,998 Net gain/(loss) on foreign exchange operations 32,270 (1,517) (747) 8 30,014 Net loss on derivative (22,523) — — — (22,523) Other (expense)/income (116) (31) 8 60 (79) TOTAL REVENUE, NET 365,141 194,090 7,294 82 566,607 Fee and commission expense 32,638 26,834 551 45 60,068 Interest expense 110,410 10,250 12,311 — 132,971 Insurance claims incurred, net of reinsurance 51,585 1 — — 51,586 Payroll and bonuses 37,967 11,357 5,146 782 55,252 Professional services 2,337 5,236 6,329 272 14,174 Stock compensation expense 2,137 291 4,091 — 6,519 Advertising expense 5,654 3,697 119 9 9,479 General and administrative expense 22,880 14,342 3,330 391 40,943 Allowance for expected credit losses 18,930 11,362 2 30,294 TOTAL EXPENSE 284,538 83,370 31,879 1,499 401,286 INCOME/(LOSS) BEFORE INCOME TAX FROM CONTINUING OPERATIONS $ 80,603 $ 110,720 $ (24,585) $ (1,417) $ 165,321 Income tax (expense)/benefit (691) (18,403) (7,475) 2 (26,567) INCOME/(LOSS) FROM CONTINUING OPERATIONS $ 79,912 $ 92,317 $ (32,060) $ (1,415) $ 138,754 (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: December 31, 2023 Central Asia and Eastern Europe Europe, excluding Eastern Europe United States Middle East/Caucasus Total Total assets $ 6,419,659 $ 422,348 $ 87,842 $ 519,194 $ 7,449,043 Total liabilities 5,795,495 561,395 30,223 22,680 6,409,793 Net assets $ 624,164 $ (139,047) $ 57,619 $ 496,514 $ 1,039,250 March 31, 2023 Central Asia and Eastern Europe Europe, excluding Eastern Europe 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) | 9 Months Ended |
Dec. 31, 2023 subsidiary | |
Related Party Transaction [Line Items] | |
Period of brokerage license suspension | 5 years |
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% |
Freedom Finance JSC ("Freedom KZ") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 3 |
Freedom Finance Global PLC ("Freedom Global") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Bank Freedom Finance Kazakhstan JSC ("Freedom Bank KZ") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 1 |
Freedom Finance Life JSC ("Freedom Life") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Finance Insurance JSC ("Freedom Insurance") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Ticketon Events LLP ("Ticketon") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 3 |
Freedom Finance Special Purpose Company LTD ("Freedom SPC") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Finance Commercial LLP | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
ITS Tech Limited | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Technologies LLP ("Paybox") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 5 |
Aviata LLP ("Aviata") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Internet-Tourism LLP ("Internet Tourism) | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Arbuz Group LLP ("Arbuz") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 3 |
Comrun LLP ("ReKassa") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Telecom Holding Limited ("Freedom Telecom") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 2 |
Freedom Kazakhstan PC Ltd | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 6 |
Freedom Advertising Ltd | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Shapagat Corporate Fund | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
FRHC Fractional SPC LTD | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Foreign Enterprise LLC Freedom Finance | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Finance Armenia LLC ("Freedom AR") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Finance Azerbaijan LLC | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Finance FZE. | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Management Ltd. | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Finance Turkey LLC | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Finance Europe Limited ("Freedom EU") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 2 |
Freedom Finance Technologies Ltd | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Property Ltd | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Finance Germany GmbH | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Prime UK Limited ("Prime UK") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom Structured Products PLC | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Prime Executions, Inc. ("PrimeEx") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
FFIN Securities, Inc. | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
Freedom U.S. Market LLC | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 1 |
LD Micro ("LD Micro") | |
Related Party Transaction [Line Items] | |
Number of wholly owned subsidiaries | 0 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of VIE’s consolidated assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Variable Interest Entity [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | $ 3,680,453 | $ 2,412,556 |
Margin lending, brokerage and other receivables, net | 961,392 | 376,329 |
Fixed assets, net | 78,099 | 54,017 |
Intangible assets, net | 46,771 | 17,615 |
TOTAL ASSETS | 7,449,043 | 5,084,558 |
Total customer liabilities | 2,248,042 | 1,925,247 |
Securities repurchase agreement obligations | 2,889,173 | 1,517,416 |
TOTAL LIABILITIES | $ 6,409,793 | 4,313,822 |
Variable interest entity, primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Cash and cash equivalents | 26 | |
Restricted cash | 1,936 | |
Trading securities (including $16,220 and $556 with related parties) | 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 ($) | 9 Months Ended | ||
Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Percentage of PD | 100% | ||
Financing receivable deemed impossible, loss accrual percent | 100% | ||
Margin lending receivable | $ 193,700 | $ 37,100 | |
Goodwill | $ 52,238,000 | $ 14,192,000 | $ 9,460,000 |
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 | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | |
Goodwill, gross | |||
Goodwill, gross at the beginning of the period | $ 15,024 | $ 6,730 | |
Write-off due to deconsolidation of Freedom UA | (832) | ||
Foreign currency translation difference | 89 | 386 | |
Acquired | 37,957 | 3,176 | |
Goodwill, gross at the end of the period | 52,238 | 10,292 | |
Accumulated impairment | |||
Accumulated impairment loss, at the beginning of the period | 832 | 832 | |
Impairment expense | 0 | 0 | |
Write-off due to deconsolidation of Freedom UA | (832) | ||
Accumulated impairment loss, at the end of the period | 0 | 832 | |
Goodwill | 52,238 | 9,460 | $ 14,192 |
Central Asia and Eastern Europe | |||
Goodwill, gross | |||
Goodwill, gross at the beginning of the period | 7,624 | 5,104 | |
Write-off due to deconsolidation of Freedom UA | (832) | ||
Foreign currency translation difference | 89 | 386 | |
Acquired | 37,957 | 3,176 | |
Goodwill, gross at the end of the period | 44,838 | 8,666 | |
Accumulated impairment | |||
Accumulated impairment loss, at the beginning of the period | 832 | 832 | |
Impairment expense | 0 | 0 | |
Write-off due to deconsolidation of Freedom UA | (832) | ||
Accumulated impairment loss, at the end of the period | 0 | 832 | |
Goodwill | 44,838 | 7,834 | 6,792 |
Europe, excluding Eastern Europe | |||
Goodwill, gross | |||
Goodwill, gross at the beginning of the period | 0 | 0 | |
Write-off due to deconsolidation of Freedom UA | 0 | ||
Foreign currency translation difference | 0 | 0 | |
Acquired | 0 | 0 | |
Goodwill, gross at the end of the period | 0 | 0 | |
Accumulated impairment | |||
Accumulated impairment loss, at the beginning of the period | 0 | 0 | |
Impairment expense | 0 | 0 | |
Write-off due to deconsolidation of Freedom UA | 0 | ||
Accumulated impairment loss, at the end of the period | 0 | 0 | |
Goodwill | 0 | 0 | 0 |
United States | |||
Goodwill, gross | |||
Goodwill, gross at the beginning of the period | 7,400 | 1,626 | |
Write-off due to deconsolidation of Freedom UA | 0 | ||
Foreign currency translation difference | 0 | 0 | |
Acquired | 0 | 0 | |
Goodwill, gross at the end of the period | 7,400 | 1,626 | |
Accumulated impairment | |||
Accumulated impairment loss, at the beginning of the period | 0 | 0 | |
Impairment expense | 0 | 0 | |
Write-off due to deconsolidation of Freedom UA | 0 | ||
Accumulated impairment loss, at the end of the period | 0 | 0 | |
Goodwill | 7,400 | 1,626 | 7,400 |
Middle East/Caucasus | |||
Goodwill, gross | |||
Goodwill, gross at the beginning of the period | 0 | 0 | |
Write-off due to deconsolidation of Freedom UA | 0 | ||
Foreign currency translation difference | 0 | 0 | |
Acquired | 0 | 0 | |
Goodwill, gross at the end of the period | 0 | 0 | |
Accumulated impairment | |||
Accumulated impairment loss, at the beginning of the period | 0 | 0 | |
Impairment expense | 0 | 0 | |
Write-off due to deconsolidation of Freedom UA | 0 | ||
Accumulated impairment loss, at the end of the period | 0 | 0 | |
Goodwill | $ 0 | $ 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 | |
Allowance for credit losses for other financial assets | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses for other financial assets | 249 | |
As previously reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Total allowance for credit losses | 2,792 | |
As previously reported | Allowance for credit losses for 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 | As 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 | As 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 | As 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 | As 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 | As 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 | $ (2,671) | |
Foreign currency translation difference 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 | $ 22,772 | |
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 | Allowance for credit losses for 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 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Earnings per share error correction (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Earnings from discontinued operations per common share - basic (in USD per share) | [1] | $ 0 | $ 0.27 | $ 0 | $ 0.17 |
Earnings from discontinued operations per common share - diluted (in USD per share) | [1] | 0 | 0.27 | 0 | 0.17 |
Earnings per common share - basic (in USD per share) | [1] | 1.65 | 1.06 | 4.79 | 2.54 |
Earnings per common share - diluted (in USD per share) | [1] | $ 1.63 | 1.05 | $ 4.73 | 2.50 |
As previously reported | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Earnings from discontinued operations per common share - basic (in USD per share) | 0.59 | 0.49 | |||
Earnings from discontinued operations per common share - diluted (in USD per share) | 0.58 | 0.48 | |||
Earnings per common share - basic (in USD per share) | 1.38 | 2.86 | |||
Earnings per common share - diluted (in USD per share) | 1.36 | 2.81 | |||
Correction of error related to EPS | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Earnings from discontinued operations per common share - basic (in USD per share) | (0.32) | (0.32) | |||
Earnings from discontinued operations per common share - diluted (in USD per share) | (0.31) | (0.31) | |||
Earnings per common share - basic (in USD per share) | (0.32) | (0.32) | |||
Earnings per common share - diluted (in USD per share) | $ (0.31) | $ (0.31) | |||
[1] Please see Note 2 for further information regarding the restatement. |
CASH AND CASH EQUIVALENTS - Sch
CASH AND CASH EQUIVALENTS - Schedule of cash and cash equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ 561,883 | $ 581,417 | $ 664,095 |
Allowance for Cash and cash equivalents | (347) | 0 | |
Short term deposits in National Bank (Kazakhstan) | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 237,145 | 357,454 | |
Short term deposits in commercial banks | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 129,915 | 83,755 | |
Securities purchased under reverse repurchase agreements | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 107,262 | 29,812 | |
Petty cash in bank vault and on hand | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 49,717 | 35,998 | |
Short term deposits in stock exchanges | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 34,696 | 31,691 | |
Short term deposits on brokerage accounts | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 2,793 | 37,417 | |
Overnight deposits | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 429 | 1,926 | |
Cash in transit | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 219 | 3,364 | |
Short term deposits in the Central Depository (Kazakhstan) | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ 54 | $ 0 |
CASH AND CASH EQUIVALENTS - S_2
CASH AND CASH EQUIVALENTS - Schedule of collateralized securities received under reverse repurchase agreements (Details) - Cash and cash equivalents - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Up to 30 days | $ 107,262 | $ 29,627 |
30-90 days | 185 | |
Total contractual maturity | $ 29,812 | |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 9.77% | 6.12% |
Up to 30 days | $ 34,417 | $ 3,483 |
30-90 days | 0 | |
Total contractual maturity | $ 3,483 | |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 16.32% | 17.17% |
Up to 30 days | $ 23,693 | $ 6,963 |
30-90 days | 0 | |
Total contractual maturity | $ 6,963 | |
US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 5.37% | 2.06% |
Up to 30 days | $ 10,029 | $ 17,102 |
30-90 days | 0 | |
Total contractual maturity | $ 17,102 | |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 5.30% | 2.52% |
Up to 30 days | $ 39,123 | $ 2,079 |
30-90 days | 185 | |
Total contractual maturity | $ 2,264 |
CASH AND CASH EQUIVALENTS - Nar
CASH AND CASH EQUIVALENTS - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | ||
Fair value of collateral received by the company under reverse repurchase agreements | $ 107,420 | $ 31,165 |
Interest accrued on securities purchased under reverse repurchase agreements | $ 82 | $ 11 |
Resale agreement counterparty, weighted average maturity of agreements | 4 days | 9 days |
RESTRICTED CASH - Schedule of r
RESTRICTED CASH - Schedule of restricted cash (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Cash and Cash Equivalents [Line Items] | ||
Total restricted cash | $ 384,553 | $ 445,528 |
Allowance for restricted cash | (8,725) | (9,994) |
Brokerage customers’ cash | ||
Cash and Cash Equivalents [Line Items] | ||
Total restricted cash | 280,404 | 328,435 |
Guaranty deposits | ||
Cash and Cash Equivalents [Line Items] | ||
Total restricted cash | 8,013 | 10,436 |
Restricted bank accounts | ||
Cash and Cash Equivalents [Line Items] | ||
Total restricted cash | 104,838 | 116,628 |
Deferred distribution payments | ||
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 | Dec. 31, 2023 | Mar. 31, 2023 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | $ 3,680,453 | $ 2,412,556 |
Assets measured at fair value | 202,497 | 239,053 |
Non-U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 2,370,508 | 1,029,857 |
Assets measured at fair value | 62,987 | 40,162 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 1,165,732 | 1,269,879 |
Assets measured at fair value | 127,402 | 191,082 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 99,589 | 65,741 |
U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 43,231 | 45,022 |
Assets measured at fair value | 12,108 | 7,809 |
Exchange traded notes | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | $ 1,393 | $ 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 | Dec. 31, 2023 | Mar. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Up to 1 year | $ 87,417 | $ 78,953 |
1-5 years | 55,952 | 118,527 |
5-10 years | 51,221 | 34,031 |
More than 10 years | 7,907 | 7,542 |
Assets measured at fair value | 202,497 | 239,053 |
Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Up to 1 year | 34,691 | 77,006 |
1-5 years | 48,898 | 82,579 |
5-10 years | 43,803 | 31,486 |
More than 10 years | 10 | 11 |
Assets measured at fair value | 127,402 | 191,082 |
Non-US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Up to 1 year | 43,581 | 0 |
1-5 years | 7,054 | 33,143 |
5-10 years | 5,718 | 820 |
More than 10 years | 6,634 | 6,199 |
Assets measured at fair value | 62,987 | 40,162 |
US sovereign debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Up to 1 year | 9,145 | 1,947 |
1-5 years | 0 | 2,805 |
5-10 years | 1,700 | 1,725 |
More than 10 years | 1,263 | 1,332 |
Assets measured at fair value | $ 12,108 | $ 7,809 |
TRADING AND AVAILABLE FOR SAL_3
TRADING AND AVAILABLE FOR SALE SECURITIES AT FAIR VALUE - Narrative (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 USD ($) issuer | Mar. 31, 2023 USD ($) issuer | |
Defined Benefit Plan Disclosure [Line Items] | ||
Number of issuers | issuer | 2 | 2 |
Other than temporary impairment, debt securities | $ 342 | $ 390 |
Kazakhstan Sustainability Fund JSC | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of trading securities | 10% | 10% |
Debt securities | $ 721,133 | $ 834,917 |
Ministry of Finance of the Republic of Kazakhstan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of trading securities | 10% | 10% |
Debt securities | $ 2,357,330 | $ 1,015,161 |
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 | Dec. 31, 2023 | Mar. 31, 2023 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | $ 3,680,453 | $ 2,412,556 |
Assets measured at fair value | 202,497 | 239,053 |
Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 3,680,453 | 2,412,556 |
Assets measured at fair value | 202,497 | 239,053 |
Level 1 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 1,962,627 | 2,186,786 |
Assets measured at fair value | 103,310 | 176,937 |
Level 2 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 1,680,908 | 220,632 |
Assets measured at fair value | 99,187 | 62,116 |
Level 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 36,918 | 5,138 |
Level 3 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 36,918 | 5,138 |
Assets measured at fair value | 0 | 0 |
Non-U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 2,370,508 | 1,029,857 |
Assets measured at fair value | $ 62,987 | $ 40,162 |
Non-U.S. sovereign debt | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities, weighted average interest rate | 12.51% | 15.62% |
Trading securities (including $16,220 and $556 with related parties) | $ 2,370,508 | $ 1,029,857 |
Total available-for-sale securities, weighted average interest rate | 13.51% | 13.64% |
Assets measured at fair value | $ 62,987 | $ 40,162 |
Non-U.S. sovereign debt | Level 1 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 1,443,144 | 971,762 |
Assets measured at fair value | 50,557 | 39,624 |
Non-U.S. sovereign debt | Level 2 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 927,330 | 54,319 |
Assets measured at fair value | 12,430 | 538 |
Non-U.S. sovereign debt | Level 3 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 34 | 3,776 |
Assets measured at fair value | 0 | 0 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 1,165,732 | 1,269,879 |
Assets measured at fair value | $ 127,402 | $ 191,082 |
Corporate debt | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities, weighted average interest rate | 15.52% | 12.04% |
Trading securities (including $16,220 and $556 with related parties) | $ 1,165,732 | $ 1,269,879 |
Total available-for-sale securities, weighted average interest rate | 16.67% | 15.78% |
Assets measured at fair value | $ 127,402 | $ 191,082 |
Corporate debt | Level 1 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 397,767 | 1,106,584 |
Assets measured at fair value | 40,645 | 129,504 |
Corporate debt | Level 2 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 751,490 | 162,895 |
Assets measured at fair value | 86,757 | 61,578 |
Corporate debt | Level 3 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 16,475 | 400 |
Assets measured at fair value | 0 | 0 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | $ 99,589 | $ 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 (including $16,220 and $556 with related parties) | $ 99,589 | $ 65,741 |
Corporate equity | Level 1 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 77,577 | 62,971 |
Corporate equity | Level 2 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 1,603 | 1,808 |
Corporate equity | Level 3 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 20,409 | 962 |
US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 43,231 | 45,022 |
Assets measured at fair value | $ 12,108 | $ 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 | 4.71% | 4.22% |
Trading securities (including $16,220 and $556 with related parties) | $ 43,231 | $ 45,022 |
Total available-for-sale securities, weighted average interest rate | 4.37% | 4.24% |
Assets measured at fair value | $ 12,108 | $ 7,809 |
US sovereign debt | Level 1 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 43,231 | 45,022 |
Assets measured at fair value | 12,108 | 7,809 |
US sovereign debt | Level 2 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 0 | 0 |
Assets measured at fair value | 0 | 0 |
US sovereign debt | Level 3 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 0 | 0 |
Assets measured at fair value | 0 | 0 |
Exchange traded notes | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | $ 1,393 | $ 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 (including $16,220 and $556 with related parties) | $ 1,393 | $ 2,057 |
Exchange traded notes | Level 1 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 908 | 447 |
Exchange traded notes | Level 2 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 485 | 1,610 |
Exchange traded notes | Level 3 | Fair value, recurring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | $ 0 | $ 0 |
TRADING AND AVAILABLE FOR SAL_5
TRADING AND AVAILABLE FOR SALE SECURITIES AT FAIR VALUE - Schedule of valuation techniques and significant level 3 inputs used in the valuation (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | $ 3,680,453 | $ 2,412,556 |
Level 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | 36,918 | 5,138 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | $ 1,165,732 | $ 1,269,879 |
Corporate debt | Valuation Technique, Discounted Cash Flow | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Estimated number of years | 2 years | 3 months |
Corporate debt | Valuation Technique, Discounted Cash Flow | Level 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | $ 16,220 | $ 400 |
Corporate debt | Measurement Input, Discount Rate | Valuation Technique, Discounted Cash Flow | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value input | 0.111 | 0.740 |
Corporate debt | Valuation Technique, Discounted Cash Flow | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Estimated number of years | 3 months | |
Corporate debt | Valuation Technique, Discounted Cash Flow | Level 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | $ 255 | |
Corporate debt | Measurement Input, Discount Rate | Valuation Technique, Discounted Cash Flow | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value input | 0.740 | |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | $ 99,589 | $ 65,741 |
Corporate equity | Valuation Technique, Discounted Cash Flow | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Estimated number of years | 4 years 6 months | 9 years |
Corporate equity | Valuation Technique, Discounted Cash Flow | Level 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | $ 20,022 | $ 962 |
Corporate equity | Measurement Input, Discount Rate | Valuation Technique, Discounted Cash Flow | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value input | 0.130 | 0.588 |
Non-U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | $ 2,370,508 | $ 1,029,857 |
Non-U.S. sovereign debt | Valuation Technique, Discounted Cash Flow | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Estimated number of years | 11 years | 11 years |
Non-U.S. sovereign debt | Valuation Technique, Discounted Cash Flow | Level 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | $ 34 | $ 3,776 |
Non-U.S. sovereign debt | Measurement Input, Discount Rate | Valuation Technique, Discounted Cash Flow | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value input | 0.488 | 0.488 |
Corporate equity | Valuation Technique, Discounted Cash Flow | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Estimated number of years | 9 years | |
Corporate equity | Valuation Technique, Discounted Cash Flow | Level 3 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Trading securities (including $16,220 and $556 with related parties) | $ 387 | |
Corporate equity | Measurement Input, Discount Rate | Valuation Technique, Discounted Cash Flow | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value input | 0.588 |
TRADING AND AVAILABLE FOR SAL_6
TRADING AND AVAILABLE FOR SALE SECURITIES AT FAIR VALUE - Schedule of reconciliation of the beginning and ending balance for investments that use Level 3 inputs (Details) - Investments - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 31, 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 | 35,805 | 2,604 |
Deconsolidation of Freedom UA securities | (3,927) | |
Reclassification to level 2 | (1,339) | |
Sale of investments that use Level 3 inputs | (5,213) | |
Revaluation of investments that use Level 3 inputs | 458 | (56) |
Reclassification to investment in associate | (556) | |
Investments ending | $ 36,918 | $ 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 | Dec. 31, 2023 | Mar. 31, 2023 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | $ 204,648 | $ 243,014 |
Recognized impairment loss in Income Statement | (342) | (402) |
Unrealized loss accumulated in other comprehensive income/(loss) | (1,809) | (3,559) |
Assets measured at fair value | 202,497 | 239,053 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | 127,073 | 192,167 |
Recognized impairment loss in Income Statement | (61) | (402) |
Unrealized loss accumulated in other comprehensive income/(loss) | 390 | (683) |
Assets measured at fair value | 127,402 | 191,082 |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | 64,799 | 42,456 |
Recognized impairment loss in Income Statement | (281) | 0 |
Unrealized loss accumulated in other comprehensive income/(loss) | (1,531) | (2,294) |
Assets measured at fair value | 62,987 | 40,162 |
U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Assets measured at amortized cost | 12,776 | 8,391 |
Recognized impairment loss in Income Statement | 0 | 0 |
Unrealized loss accumulated in other comprehensive income/(loss) | (668) | (582) |
Assets measured at fair value | $ 12,108 | $ 7,809 |
MARGIN LENDING, BROKERAGE AND_3
MARGIN LENDING, BROKERAGE AND OTHER RECEIVABLES, NET - Schedule of brokerage and other receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | $ 961,392 | $ 376,329 |
Allowance for receivables | (11,926) | (12,507) |
Margin lending receivables | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 941,456 | 361,684 |
Bank commissions receivable | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 8,385 | 6,035 |
Receivables from payment processing services | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 7,291 | 1,158 |
Receivables from brokerage clients | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 2,946 | 7,302 |
Receivable for underwriting and market-making services | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | 539 | 2,317 |
Other receivables | ||
Cash and Cash Equivalents [Line Items] | ||
Brokerage and other receivables | $ 12,701 | $ 10,340 |
MARGIN LENDING, BROKERAGE AND_4
MARGIN LENDING, BROKERAGE AND OTHER RECEIVABLES, NET - Narrative (Details) - USD ($) | Dec. 31, 2023 | Mar. 31, 2023 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Collateral received, fair value | $ 6,684,629,000 | $ 1,418,129,000 |
Collateralized financings | 2,799,940,000 | |
Brokerage and other receivables | 961,392,000 | 376,329,000 |
Brokerage and other receivables due from related party | $ 27,166,000 | $ 290,195,000 |
Due from related party customer (in percent) | 3% | 78% |
Margin lending receivable | $ 193,700 | $ 37,100 |
Total allowance for credit losses | $ 11,926,000 | $ 12,507,000 |
FST Belize | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Margin lending receivables from related party as a percentage of related party margin lending receivables (in percent) | 63% | 98% |
Margin lending receivables | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Brokerage and other receivables | $ 941,456,000 | $ 361,684,000 |
One | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Collateralized financings | $ 200,320,000 | |
Collateral, percentage | 42% |
LOANS ISSUED - Summary of loans
LOANS ISSUED - Summary of loans issued (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||||
Amount Outstanding | $ 1,392,679 | $ 829,050 | ||
Allowance for loans issued | 46,674 | 2,792 | $ 14,711 | $ 1,629 |
Loans issued (including $144,289 and $121,316 to related parties) | 1,346,005 | 826,258 | ||
Mortgage loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Amount Outstanding | 693,167 | 534,154 | ||
Allowance for loans issued | $ 2,731 | $ 554 | 2,492 | 305 |
Weighted Average Interest Rate | 10.30% | 9% | ||
Fair Value of Collateral | $ 692,016 | $ 534,154 | ||
Right of claim for purchased retail loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Amount Outstanding | 142,970 | 121,177 | ||
Allowance for loans issued | $ 5,082 | $ 1,247 | 9,537 | 1,308 |
Weighted Average Interest Rate | 15% | 15% | ||
Fair Value of Collateral | $ 142,970 | $ 121,177 | ||
Car loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Amount Outstanding | 274,980 | 102,269 | ||
Allowance for loans issued | $ 13,120 | $ 758 | 2,601 | 0 |
Weighted Average Interest Rate | 23.70% | 25% | ||
Fair Value of Collateral | $ 264,953 | $ 102,247 | ||
Uncollateralized bank customer loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Amount Outstanding | 243,029 | 46,970 | ||
Allowance for loans issued | $ 14,673 | $ 233 | 73 | 16 |
Weighted Average Interest Rate | 27.10% | 25% | ||
Fair Value of Collateral | $ 0 | $ 0 | ||
Collateralized bank customer loans | ||||
Financing Receivable, Past Due [Line Items] | ||||
Amount Outstanding | 21,104 | 17,653 | ||
Allowance for loans issued | $ 60 | $ 0 | 8 | 0 |
Weighted Average Interest Rate | 20.97% | 2% | ||
Fair Value of Collateral | $ 20,748 | $ 17,636 | ||
Subordinated loan | ||||
Financing Receivable, Past Due [Line Items] | ||||
Amount Outstanding | $ 5,038 | $ 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 | $ 1,488 | |||
Weighted Average Interest Rate | 15% | |||
Fair Value of Collateral | $ 1,752 | |||
Other | ||||
Financing Receivable, Past Due [Line Items] | ||||
Amount Outstanding | 12,391 | 300 | ||
Allowance for loans issued | 11,008 | $ 0 | $ 0 | $ 0 |
Weighted Average Interest Rate | 2% | |||
Fair Value of Collateral | $ 24 | $ 0 | ||
Other loans UAH | ||||
Financing Receivable, Past Due [Line Items] | ||||
Weighted Average Interest Rate | 9.10% | |||
Other loans USD | ||||
Financing Receivable, Past Due [Line Items] | ||||
Weighted Average Interest Rate | 3% | |||
Other loans KZT | ||||
Financing Receivable, Past Due [Line Items] | ||||
Weighted Average Interest Rate | 16% | |||
Other loans EUR | ||||
Financing Receivable, Past Due [Line Items] | ||||
Weighted Average Interest Rate | 2.40% |
LOANS ISSUED - Narrative (Detai
LOANS ISSUED - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2023 | Mar. 31, 2023 | |
Financing Receivable, Past Due [Line Items] | ||
Debt, weighted average interest rate, period term | 20 years | |
Liability arising from continuing involvement | $ 494,513 | $ 440,805 |
Loans issued | 1,346,005 | 826,258 |
Interest receivable | $ 7,942 | $ 3,548 |
Percentage of agreements with significant increase in credit risk exceeding probability of default threshold | 20% | |
Mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Weighted Average Interest Rate | 10.30% | 9% |
Mortgage loans | State mortgage program "7-20-25" | ||
Financing Receivable, Past Due [Line Items] | ||
Weighted Average Interest Rate | 7% | |
Weighted average interest rate, over 20 year term, transferred to program operator | 4% | |
Weighted average interest rate, over 20 year term, retained | 3% | |
Loans issued | $ 506,150 | $ 463,114 |
Right of claim for purchased retail loans | ||
Financing Receivable, Past Due [Line Items] | ||
Weighted Average Interest Rate | 15% | 15% |
LOANS ISSUED - Finance receivab
LOANS ISSUED - Finance receivable Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | $ 747,190 | |
2023 | 600,201 | |
2022 | 42,312 | |
2021 | 0 | |
2020 | 2,976 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 1,392,679 | $ 829,050 |
that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 827,307 | |
with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 1,708 | |
that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Total | 35 | |
Mortgage loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 192,157 | |
2023 | 459,089 | |
2022 | 41,921 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 693,167 | 534,154 |
Mortgage loans | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 192,021 | |
2023 | 457,138 | |
2022 | 41,687 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 690,846 | 532,621 |
Mortgage loans | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 108 | |
2023 | 1,333 | |
2022 | 138 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 1,579 | 1,505 |
Mortgage loans | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 28 | |
2023 | 618 | |
2022 | 96 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 742 | 28 |
Car loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 202,591 | |
2023 | 72,389 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 274,980 | 102,269 |
Car loans | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 200,842 | |
2023 | 62,915 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 263,757 | 102,269 |
Car loans | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 942 | |
2023 | 2,122 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 3,064 | 0 |
Car loans | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 807 | |
2023 | 7,352 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 8,159 | 0 |
Uncollateralized bank customer loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 206,378 | |
2023 | 36,643 | |
2022 | 8 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 243,029 | 46,970 |
Uncollateralized bank customer loans | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 201,802 | |
2023 | 33,768 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 235,570 | 46,882 |
Uncollateralized bank customer loans | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 2,873 | |
2023 | 1,030 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 3,903 | 81 |
Uncollateralized bank customer loans | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 1,703 | |
2023 | 1,845 | |
2022 | 8 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 3,556 | 7 |
Right of claim for purchased retail loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 117,226 | |
2023 | 25,361 | |
2022 | 383 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 142,970 | 121,177 |
Right of claim for purchased retail loans | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 117,199 | |
2023 | 25,359 | |
2022 | 383 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 142,941 | 121,055 |
Right of claim for purchased retail loans | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 27 | |
2023 | 2 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 29 | 122 |
Right of claim for purchased retail loans | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 0 | |
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 0 | 0 |
Collateralized bank customer loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 20,760 | |
2023 | 344 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 21,104 | 17,653 |
Collateralized bank customer loans | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 20,657 | |
2023 | 344 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 21,001 | 17,653 |
Collateralized bank customer loans | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 40 | |
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 40 | 0 |
Collateralized bank customer loans | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 63 | |
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 63 | 0 |
Subordinated loan | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 0 | |
2023 | 5,038 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 5,038 | 5,039 |
Subordinated loan | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 0 | |
2023 | 5,038 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 5,038 | 5,039 |
Subordinated loan | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 0 | |
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 0 | 0 |
Subordinated loan | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 0 | |
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 0 | 0 |
Other | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 8,078 | |
2023 | 1,337 | |
2022 | 0 | |
2021 | 0 | |
2020 | 2,976 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 12,391 | 300 |
Other | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 1,290 | |
2023 | 116 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 1,406 | 300 |
Other | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 0 | |
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | 0 | 0 |
Other | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
2024 | 6,788 | |
2023 | 1,221 | |
2022 | 0 | |
2021 | 0 | |
2020 | 2,976 | |
Prior | 0 | |
Revolving loans | 0 | |
Total | $ 10,985 | $ 0 |
LOANS ISSUED - Finance receiv_2
LOANS ISSUED - Finance receivable Vintage (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | $ 1,392,679 | $ 829,050 |
that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 827,307 | |
with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 1,708 | |
that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 35 | |
Mortgage loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 693,167 | 534,154 |
Mortgage loans | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 690,846 | 532,621 |
Mortgage loans | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 1,579 | 1,505 |
Mortgage loans | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 742 | 28 |
Collateralized bank customer loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 21,104 | 17,653 |
Collateralized bank customer loans | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 21,001 | 17,653 |
Collateralized bank customer loans | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 40 | 0 |
Collateralized bank customer loans | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 63 | 0 |
Right of claim for purchased retail loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 142,970 | 121,177 |
Right of claim for purchased retail loans | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 142,941 | 121,055 |
Right of claim for purchased retail loans | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 29 | 122 |
Right of claim for purchased retail loans | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 0 | 0 |
Uncollateralized bank customer loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 243,029 | 46,970 |
Uncollateralized bank customer loans | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 235,570 | 46,882 |
Uncollateralized bank customer loans | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 3,903 | 81 |
Uncollateralized bank customer loans | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 3,556 | 7 |
Car loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 274,980 | 102,269 |
Car loans | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 263,757 | 102,269 |
Car loans | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 3,064 | 0 |
Car loans | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 8,159 | 0 |
Subordinated loan | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 5,038 | 5,039 |
Subordinated loan | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 5,038 | 5,039 |
Subordinated loan | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 0 | 0 |
Subordinated loan | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 0 | 0 |
Loans issued to policyholders | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 1,488 | |
Loans issued to policyholders | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 1,488 | |
Loans issued to policyholders | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 0 | |
Loans issued to policyholders | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 0 | |
Other | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 12,391 | 300 |
Other | that are not credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 1,406 | 300 |
Other | with significant increase in credit risk | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | 0 | 0 |
Other | that are credit impaired | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Loan issued | $ 10,985 | $ 0 |
LOANS ISSUED - Finance receiv_3
LOANS ISSUED - Finance receivable Delinquency (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | $ 1,392,679 | $ 829,050 |
Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 5,182 | 1,461 |
Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 3,433 | 248 |
Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 23,505 | 35 |
Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 1,360,559 | 827,306 |
Mortgage loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 693,167 | 534,154 |
Mortgage loans | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 1,151 | 1,265 |
Mortgage loans | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 428 | 240 |
Mortgage loans | Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 742 | 28 |
Mortgage loans | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 690,846 | 532,621 |
Car loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 274,980 | 102,269 |
Car loans | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 1,862 | 0 |
Car loans | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 1,202 | 0 |
Car loans | Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 8,159 | 0 |
Car loans | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 263,757 | 102,269 |
Uncollateralized bank customer loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 243,029 | 46,970 |
Uncollateralized bank customer loans | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 2,100 | 73 |
Uncollateralized bank customer loans | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 1,803 | 8 |
Uncollateralized bank customer loans | Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 3,556 | 7 |
Uncollateralized bank customer loans | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 235,570 | 46,882 |
Right of claim for purchased retail loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 142,970 | 121,177 |
Right of claim for purchased retail loans | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 29 | 123 |
Right of claim for purchased retail loans | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 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] | ||
Amount Outstanding | 0 | 0 |
Right of claim for purchased retail loans | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 142,941 | 121,054 |
Collateralized bank customer loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 21,104 | 17,653 |
Collateralized bank customer loans | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 40 | 0 |
Collateralized bank customer loans | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 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] | ||
Amount Outstanding | 63 | 0 |
Collateralized bank customer loans | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 21,001 | 17,653 |
Subordinated loan | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 5,038 | 5,039 |
Subordinated loan | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 0 | 0 |
Subordinated loan | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 0 | 0 |
Subordinated loan | Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 0 | 0 |
Subordinated loan | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 5,038 | 5,039 |
Loans issued to policyholders | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 1,488 | |
Loans issued to policyholders | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 0 | |
Loans issued to policyholders | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 0 | |
Loans issued to policyholders | Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 0 | |
Loans issued to policyholders | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 1,488 | |
Other | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 12,391 | 300 |
Other | Loans 30-59 Days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 0 | 0 |
Other | Loans 60-89 days past due | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 0 | 0 |
Other | Loans 90 days or more past due and still accruing | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | 10,985 | 0 |
Other | Current loans | ||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | ||
Amount Outstanding | $ 1,406 | $ 300 |
LOANS ISSUED - Allowances for C
LOANS ISSUED - Allowances for Credit Loss (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | $ (2,792) | $ (1,629) |
Charges | (53,204) | (16,770) |
Recoveries | 34,379 | 4,071 |
Foreign currency translation difference | 138 | (383) |
Closing balance | (46,674) | (14,711) |
Adjustment to allowance for adoption of ASU 2016-13 | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | (25,195) | |
Mortgage loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | (554) | (305) |
Charges | (1,760) | (2,816) |
Recoveries | 1,782 | 709 |
Foreign currency translation difference | 17 | (80) |
Closing balance | (2,731) | (2,492) |
Mortgage loans | Adjustment to allowance for adoption of ASU 2016-13 | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | (2,216) | |
Uncollateralized bank customer loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | (233) | (16) |
Charges | (16,846) | (79) |
Recoveries | 9,826 | 23 |
Foreign currency translation difference | 16 | (1) |
Closing balance | (14,673) | (73) |
Uncollateralized bank customer loans | Adjustment to allowance for adoption of ASU 2016-13 | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | (7,436) | |
Collateralized bank customer loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | 0 | 0 |
Charges | (84) | (15) |
Recoveries | 58 | 8 |
Foreign currency translation difference | 1 | (1) |
Closing balance | (60) | (8) |
Collateralized bank customer loans | Adjustment to allowance for adoption of ASU 2016-13 | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | (35) | |
Car loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | (758) | 0 |
Charges | (13,013) | (2,559) |
Recoveries | 7,096 | 36 |
Foreign currency translation difference | 17 | (78) |
Closing balance | (13,120) | (2,601) |
Car loans | Adjustment to allowance for adoption of ASU 2016-13 | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | (6,462) | |
Right of claim for purchased retail loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | (1,247) | (1,308) |
Charges | (10,493) | (11,301) |
Recoveries | 15,617 | 3,295 |
Foreign currency translation difference | 87 | (223) |
Closing balance | (5,082) | (9,537) |
Right of claim for purchased retail loans | Adjustment to allowance for adoption of ASU 2016-13 | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | (9,046) | |
Other | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | 0 | 0 |
Charges | (11,008) | 0 |
Recoveries | 0 | 0 |
Foreign currency translation difference | 0 | 0 |
Closing balance | (11,008) | $ 0 |
Other | Adjustment to allowance for adoption of ASU 2016-13 | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Opening balance | $ 0 |
PROVISION FOR INCOME TAXES - Na
PROVISION FOR INCOME TAXES - Narrative (Details) | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Effective income tax rate | 15.50% | 16.10% | |
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% | |
TAJIKISTAN | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 18% | 18% | |
TÜRKIYE | Other than financial Sector | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 25% | 25% | |
UNITED ARAB EMIRATES | |||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table] | |||
Income tax rates used for deferred tax assets and liabilities | 9% | 9% |
SECURITIES REPURCHASE AGREEME_3
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS - Schedule of trading securities including collateralized securities subject to repurchase agreements (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Securities repurchase agreement obligations | $ 2,889,173 | $ 1,517,416 |
Up to 30 days | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Securities repurchase agreement obligations | 2,640,642 | 1,456,776 |
30-90 days | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Securities repurchase agreement obligations | $ 248,531 | $ 60,640 |
Non-US sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 15.59% | 15.98% |
Securities repurchase agreement obligations | $ 1,924,268 | $ 881,461 |
Non-US sovereign debt | Up to 30 days | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Securities repurchase agreement obligations | 1,746,953 | 826,196 |
Non-US sovereign debt | 30-90 days | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Securities repurchase agreement obligations | $ 177,315 | $ 55,265 |
Corporate debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 15.39% | 16.07% |
Securities repurchase agreement obligations | $ 945,050 | $ 602,934 |
Corporate debt | Up to 30 days | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Securities repurchase agreement obligations | 873,834 | 597,559 |
Corporate debt | 30-90 days | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Securities repurchase agreement obligations | $ 71,216 | $ 5,375 |
U.S. sovereign debt | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 2.70% | 1.52% |
Securities repurchase agreement obligations | $ 19,838 | $ 17,637 |
U.S. sovereign debt | Up to 30 days | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Securities repurchase agreement obligations | 19,838 | 17,637 |
U.S. sovereign debt | 30-90 days | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Securities repurchase agreement obligations | $ 0 | $ 0 |
Corporate equity | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average interest rate | 1% | 12.24% |
Securities repurchase agreement obligations | $ 17 | $ 15,384 |
Corporate equity | Up to 30 days | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Securities repurchase agreement obligations | 17 | 15,384 |
Corporate equity | 30-90 days | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Securities repurchase agreement obligations | $ 0 | $ 0 |
SECURITIES REPURCHASE AGREEME_4
SECURITIES REPURCHASE AGREEMENT OBLIGATIONS - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2023 | Mar. 31, 2023 | |
Securities Sold under Agreements to Repurchase [Abstract] | ||
Fair value of collateral pledged under repurchase agreements | $ 2,895,602 | $ 1,519,926 |
Interest payable accrued on securities purchased under reverse repurchase agreements | $ 6,599 | $ 25,179 |
Repurchase agreement, weighted average maturity of agreements | 11 days |
CUSTOMER LIABILITIES - Schedule
CUSTOMER LIABILITIES - Schedule of customer liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Mar. 31, 2023 | |
Revenue, Major Customer [Line Items] | ||
Total non-interest-bearing accounts | $ 1,065,203 | $ 1,092,496 |
Total customer liabilities | 2,248,042 | 1,925,247 |
Current customer accounts | ||
Revenue, Major Customer [Line Items] | ||
Total non-interest-bearing accounts | 372,029 | 458,954 |
Brokerage customers | ||
Revenue, Major Customer [Line Items] | ||
Total non-interest-bearing accounts | 693,174 | 633,542 |
Term deposits | ||
Revenue, Major Customer [Line Items] | ||
Term deposits | $ 1,182,839 | $ 832,751 |
Term deposits | Minimum | ||
Revenue, Major Customer [Line Items] | ||
Debt securities, interest rate during period (in percent) | 0.05% | 0.10% |
Term deposits | Maximum | ||
Revenue, Major Customer [Line Items] | ||
Debt securities, interest rate during period (in percent) | 16.90% | 16.90% |
CUSTOMER LIABILITIES - Narrativ
CUSTOMER LIABILITIES - Narrative (Details) - Bank Freedom Finance Kazakhstan JSC ("Freedom Bank KZ") - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Revenue, Major Customer [Line Items] | ||
Insured bank deposits, price per client | $ 44 | |
Insured bank deposits | $ 626,486 | $ 539,411 |
MARGIN LENDING AND TRADE PAYA_3
MARGIN LENDING AND TRADE PAYABLES - Schedule of Trade Payables (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Regulatory Liabilities [Line Items] | ||
Total margin lending and trade payables | $ 145,804 | $ 122,900 |
Margin lending payable | ||
Regulatory Liabilities [Line Items] | ||
Total margin lending and trade payables | 120,034 | 117,144 |
Payables to merchants | ||
Regulatory Liabilities [Line Items] | ||
Total margin lending and trade payables | 16,152 | 382 |
Payables to suppliers of goods and services | ||
Regulatory Liabilities [Line Items] | ||
Total margin lending and trade payables | 6,683 | 2,965 |
Trade payable for securities purchased | ||
Regulatory Liabilities [Line Items] | ||
Total margin lending and trade payables | 479 | 482 |
Other | ||
Regulatory Liabilities [Line Items] | ||
Total margin lending and trade payables | $ 2,456 | $ 1,927 |
MARGIN LENDING AND TRADE PAYA_4
MARGIN LENDING AND TRADE PAYABLES - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Related Party Transaction [Line Items] | ||
Margin loans, fair value of collateral | $ 777,616 | $ 164,861 |
Related party | ||
Related Party Transaction [Line Items] | ||
Trade payables | $ 227 | $ 3,239 |
Trade payables due (in percent) | 0% | 3% |
DEBT SECURITIES ISSUED - Summar
DEBT SECURITIES ISSUED - Summary (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 25, 2023 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||||
Debt securities issued | $ 266,310 | $ 266,310 | $ 60,025 | |
Freedom SPC bonds due 2026 | ||||
Debt Instrument [Line Items] | ||||
Debt securities issued | $ 64,482 | $ 64,482 | $ 58,582 | |
Interest rate | 5.50% | 5.50% | 5.50% | |
Freedom SPC bonds due 2028 | ||||
Debt Instrument [Line Items] | ||||
Debt securities issued | $ 200,407 | $ 200,407 | $ 0 | |
Interest rate | 12% | 12% | 12.10% | 12% |
Coupon percentage | 12% | 12% | ||
Debt securities, term | 2 years | |||
Freedom SPC bonds due 2028 | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt securities, term | 1 year | |||
Freedom SPC bonds due 2028 | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt securities, term | 2 years | |||
Freedom SPC bonds due 2028 | Fed funds effective rate overnight index swap rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 6.50% | |||
Freedom SPC bonds due 2028 | Fed funds effective rate overnight index swap rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt securities, term | 3 years | |||
Freedom SPC bonds due 2028 | Fed funds effective rate overnight index swap rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt securities, term | 5 years | |||
Accrued interest | ||||
Debt Instrument [Line Items] | ||||
Debt securities issued | $ 1,421 | $ 1,421 | $ 1,443 |
DEBT SECURITIES ISSUED - Narrat
DEBT SECURITIES ISSUED - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 25, 2023 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||||
Debt securities issued | $ 266,310 | $ 266,310 | $ 60,025 | |
Freedom SPC bonds due 2026 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5.50% | 5.50% | 5.50% | |
Debt securities issued | $ 64,482 | $ 64,482 | $ 58,582 | |
Freedom SPC bonds due 2028 | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 12% | 12% | 12.10% | 12% |
Debt securities issued | $ 200,407 | $ 200,407 | $ 0 | |
Coupon percentage | 12% | 12% | ||
Threshold period for early redemption | 2 years | |||
Threshold period for call option held | 2 years | |||
Debt securities, term | 2 years | |||
Interest rate margin | 6.60% | |||
Freedom SPC bonds due 2028 | Fed funds effective rate overnight index swap rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 6.50% |
INSURANCE CONTRACTS ASSETS AN_3
INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES - Schedule of Insurance Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Effects of Reinsurance [Line Items] | ||
Allowance for estimated uncollectible reinsurance | $ (778) | $ (1,325) |
Insurance and reinsurance receivables: | 8,438 | 10,016 |
Unearned premium reserve, reinsurers’ share | 2,282 | 2,379 |
Reserves for claims and claims’ adjustment expenses, reinsurers’ share | 2,008 | 1,390 |
Total | 12,728 | 13,785 |
Amounts due from policyholders | ||
Effects of Reinsurance [Line Items] | ||
Insurance and reinsurance receivable, gross | 7,301 | 9,699 |
Claims receivable from reinsurance | ||
Effects of Reinsurance [Line Items] | ||
Insurance and reinsurance receivable, gross | 1,316 | 1,087 |
Amounts due from reinsured | ||
Effects of Reinsurance [Line Items] | ||
Insurance and reinsurance receivable, gross | 478 | 555 |
Advances received from agent | ||
Effects of Reinsurance [Line Items] | ||
Insurance and reinsurance receivable, gross | $ 121 | $ 0 |
INSURANCE CONTRACTS ASSETS AN_4
INSURANCE CONTRACTS ASSETS AND LIABILITIES FROM INSURANCE ACTIVITIES -Schedule of Insurance Payables (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Insurance and Reinsurance Payable [Line Items] | ||
Insurance and reinsurance payables: | $ 8,123 | $ 6,275 |
Unearned premium reserve | 46,000 | 43,082 |
Reserves for claims and claims’ adjustment expenses | 188,056 | 133,145 |
Liabilities from insurance activity | 242,179 | 182,502 |
Amounts payable to agents and brokers | ||
Insurance and Reinsurance Payable [Line Items] | ||
Insurance and reinsurance payables: | 3,599 | 2,466 |
Amounts payable to reinsurers | ||
Insurance and Reinsurance Payable [Line Items] | ||
Insurance and reinsurance payables: | 2,410 | 2,002 |
Amounts payable to insured | ||
Insurance and Reinsurance Payable [Line Items] | ||
Insurance and reinsurance payables: | $ 2,114 | $ 1,807 |
FEE AND COMMISSION INCOME - Sch
FEE AND COMMISSION INCOME - Schedule of commission income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Brokerage services | $ 99,813 | $ 68,532 | $ 239,608 | $ 227,476 |
Commission income from payment processing | 8,977 | 37,318 | ||
Underwriting and market-making services | 3,344 | 4,778 | 15,085 | 8,008 |
Bank services | 1,331 | 5,507 | 23,480 | 15,100 |
Other fee and commission income | 6,694 | 2,066 | 15,074 | 2,902 |
Total fee and commission income | 120,159 | 80,883 | 330,565 | 253,486 |
Central Asia and Eastern Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage services | 65,451 | 19,490 | 159,072 | 31,814 |
Commission income from payment processing | 8,977 | 37,318 | ||
Underwriting and market-making services | 1,502 | 4,778 | 7,971 | 8,008 |
Bank services | 1,331 | 5,507 | 23,480 | 15,100 |
Other fee and commission income | 5,293 | 1,473 | 12,324 | 1,793 |
Total fee and commission income | 82,554 | 31,248 | 240,165 | 56,715 |
Europe, excluding Eastern Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage services | 32,285 | 47,893 | 75,274 | 192,330 |
Commission income from payment processing | 0 | 0 | ||
Underwriting and market-making services | 0 | 0 | 0 | 0 |
Bank services | 0 | 0 | 0 | 0 |
Other fee and commission income | 300 | 593 | 725 | 1,109 |
Total fee and commission income | 32,585 | 48,486 | 75,999 | 193,439 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage services | 1,223 | 1,149 | 3,295 | 3,332 |
Commission income from payment processing | 0 | 0 | ||
Underwriting and market-making services | 1,842 | 0 | 7,114 | 0 |
Bank services | 0 | 0 | 0 | |
Other fee and commission income | 1,101 | 0 | 2,025 | 0 |
Total fee and commission income | 4,166 | 1,149 | 12,434 | 3,332 |
Middle East/Caucasus | ||||
Disaggregation of Revenue [Line Items] | ||||
Brokerage services | 854 | 1,967 | ||
Commission income from payment processing | 0 | 0 | ||
Underwriting and market-making services | 0 | 0 | ||
Bank services | 0 | 0 | ||
Other fee and commission income | 0 | 0 | ||
Total fee and commission income | $ 854 | $ 0 | $ 1,967 | $ 0 |
NET (LOSS)_GAIN ON TRADING SE_3
NET (LOSS)/GAIN ON TRADING SECURITIES - Summary of net gain on trading securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net gain/(loss) recognized during the period on trading securities sold during the period | $ 9,353 | $ (47,801) | $ 61,276 | $ (26,790) |
Net unrealized (loss)/gain recognized during the reporting period on trading securities still held at the reporting date | (14,442) | 73,257 | 16,222 | 65,684 |
Net (loss)/gain recognized during the period on trading securities | $ (5,089) | $ 25,456 | $ 77,498 | $ 38,894 |
NET (LOSS)_GAIN ON TRADING SE_4
NET (LOSS)/GAIN ON TRADING SECURITIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net (loss)/ gain on trading securities | $ (5,089) | $ 25,456 | $ 77,498 | $ 38,894 |
Net unrealized (loss)/gain recognized during the reporting period on trading securities still held at the reporting date | (14,442) | 73,257 | 16,222 | 65,684 |
Net gain/(loss) recognized during the period on trading securities sold during the period | $ 9,353 | $ (47,801) | $ 61,276 | $ (26,790) |
NET INTEREST INCOME_EXPENSE (De
NET INTEREST INCOME/EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Interest income: | ||||
Interest income on trading securities | $ 112,860 | $ 44,760 | $ 313,739 | $ 116,922 |
Interest income on margin loans to customers | 51,553 | 12,379 | 111,306 | 27,259 |
Interest income on loans to customers | 49,529 | 12,327 | 123,730 | 24,158 |
Interest income on securities available-for-sale | 7,478 | 6,727 | 25,476 | 13,280 |
Interest income on reverse repurchase agreements and amounts due from banks | 5,025 | 4,062 | 12,012 | 6,198 |
Other interest income | 2,594 | 0 | ||
Total interest income | 226,445 | 80,255 | 588,857 | 187,817 |
Interest expense: | ||||
Interest expense on securities repurchase agreement obligations | 110,778 | 39,958 | 303,242 | 105,466 |
Interest expense on customer accounts and deposits | 15,653 | 11,149 | 49,120 | 24,780 |
Interest expense on margin lending payable | 3,211 | 0 | 9,671 | 0 |
Interest expense on debt securities issued | 1,491 | 842 | 3,387 | 2,457 |
Interest expense on loans received | 36 | 88 | 89 | 268 |
Other interest expense | 54 | 0 | 141 | 0 |
Total interest expense | 131,223 | 52,037 | 365,650 | 132,971 |
Net interest income | $ 95,222 | $ 28,218 | $ 223,207 | $ 54,846 |
NET LOSS ON DERIVATIVES - Deriv
NET LOSS ON DERIVATIVES - Derivative Instruments, Gain (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Net realized loss on derivatives | $ (43,019) | $ (21,469) | $ (72,681) | $ (22,523) |
Net unrealized gain on derivatives | 451 | 0 | 886 | 0 |
Total net loss on derivatives | $ (42,568) | $ (21,469) | $ (71,795) | $ (22,523) |
NET LOSS ON DERIVATIVES - Narra
NET LOSS ON DERIVATIVES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Net loss on derivative | $ (42,568) | $ (21,469) | $ (71,795) | $ (22,523) |
Net unrealized gain on derivatives | 451 | 0 | 886 | 0 |
Net realized loss on derivatives | $ (43,019) | $ (21,469) | $ (72,681) | $ (22,523) |
RELATED PARTY TRANSACTIONS - Sc
RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | |
ASSETS | |||||
Cash and cash equivalents | $ 561,883 | $ 664,095 | $ 561,883 | $ 664,095 | $ 581,417 |
Total restricted cash | 384,553 | 384,553 | 445,528 | ||
Trading securities (including $16,220 and $556 with related parties) | 3,680,453 | 3,680,453 | 2,412,556 | ||
Margin lending, brokerage and other receivables, net | 961,392 | 961,392 | 376,329 | ||
Loans issued | 1,346,005 | 1,346,005 | 826,258 | ||
Insurance contract assets | 12,728 | 12,728 | 13,785 | ||
Other assets, net | 88,244 | 88,244 | 73,463 | ||
LIABILITIES | |||||
Customer liabilities | 2,248,042 | 2,248,042 | 1,925,247 | ||
Total margin lending and trade payables | 145,804 | 145,804 | 122,900 | ||
Other liabilities | 61,447 | 61,447 | 30,060 | ||
Revenue: | |||||
Fee and commission income | 120,159 | 80,883 | 330,565 | 253,486 | |
Interest income | 226,445 | 80,255 | 588,857 | 187,817 | |
Insurance underwriting income | 79,017 | 28,557 | 181,882 | 78,998 | |
Net gain/(loss) on foreign exchange operations | 38,825 | 20,866 | 54,430 | 30,014 | |
Expense: | |||||
Fee and commission expense | 42,818 | 18,314 | 103,116 | 60,068 | |
Interest expense | 131,223 | 52,037 | 365,650 | 132,971 | |
Insurance claims incurred, net of reinsurance | 40,989 | 17,419 | 96,491 | 51,586 | |
General and administrative expense (including $1,502 and $600 from related parties) | 32,106 | 16,428 | 86,211 | 40,943 | |
Related party | |||||
ASSETS | |||||
Cash and cash equivalents | 0 | 0 | 35,549 | ||
Total restricted cash | 67,215 | 67,215 | 114,885 | ||
Trading securities (including $16,220 and $556 with related parties) | 16,220 | 16,220 | 556 | ||
Margin lending, brokerage and other receivables, net | 43,241 | 43,241 | 295,611 | ||
Loans issued | 144,289 | 144,289 | 121,316 | ||
Other assets, net | 533 | 533 | 16,102 | ||
LIABILITIES | |||||
Customer liabilities | 112,701 | 112,701 | 130,210 | ||
Total margin lending and trade payables | 474 | 474 | 3,721 | ||
Other liabilities | 11,783 | 11,783 | 46 | ||
Revenue: | |||||
Fee and commission income | 30,112 | 44,590 | 66,029 | 181,396 | |
Interest income | 7,566 | 10,796 | 22,650 | 21,659 | |
Net gain/(loss) on foreign exchange operations | 593 | 0 | 5,236 | 0 | |
Expense: | |||||
Fee and commission expense | 55 | 2,304 | 235 | 2,657 | |
Interest expense | 230 | 82 | 635 | 129 | |
General and administrative expense (including $1,502 and $600 from related parties) | 1,502 | 600 | 9,063 | 803 | |
Management | |||||
ASSETS | |||||
Margin lending, brokerage and other receivables, net | 14,036 | 14,036 | 4,209 | ||
Loans issued | 116 | 116 | 139 | ||
LIABILITIES | |||||
Customer liabilities | 5,243 | 5,243 | 19,789 | ||
Total margin lending and trade payables | 222 | 222 | 227 | ||
Other liabilities | 7,700 | 7,700 | 0 | ||
Revenue: | |||||
Fee and commission income | 226 | 149 | 691 | 382 | |
Interest income | 208 | 0 | 512 | 0 | |
Net gain/(loss) on foreign exchange operations | 13 | 0 | 14 | 0 | |
Expense: | |||||
Interest expense | 62 | 1 | 236 | 1 | |
General and administrative expense (including $1,502 and $600 from related parties) | 226 | 105 | 397 | 269 | |
Companies controlled by management | |||||
ASSETS | |||||
Cash and cash equivalents | 0 | 0 | 35,549 | ||
Total restricted cash | 67,215 | 67,215 | 114,885 | ||
Trading securities (including $16,220 and $556 with related parties) | 16,220 | 16,220 | 556 | ||
Margin lending, brokerage and other receivables, net | 29,205 | 29,205 | 291,402 | ||
Loans issued | 144,173 | 144,173 | 121,177 | ||
Other assets, net | 533 | 533 | 16,102 | ||
LIABILITIES | |||||
Customer liabilities | 106,561 | 106,561 | 110,253 | ||
Total margin lending and trade payables | 252 | 252 | 3,494 | ||
Other liabilities | 4,074 | 4,074 | 46 | ||
Revenue: | |||||
Fee and commission income | 29,878 | 44,441 | 65,322 | 181,014 | |
Interest income | 7,358 | 10,796 | 22,137 | 21,659 | |
Net gain/(loss) on foreign exchange operations | 580 | 0 | 5,222 | 0 | |
Expense: | |||||
Fee and commission expense | 55 | 2,304 | |||
Interest expense | 160 | 81 | 384 | 128 | |
General and administrative expense (including $1,502 and $600 from related parties) | 1,041 | 495 | 8,346 | 534 | |
Other Affiliates | |||||
LIABILITIES | |||||
Customer liabilities | 897 | 897 | 168 | ||
Other liabilities | 9 | 9 | $ 0 | ||
Revenue: | |||||
Fee and commission income | 8 | 0 | 16 | 0 | |
Interest income | 1 | 0 | |||
Expense: | |||||
Interest expense | 8 | 0 | 15 | 0 | |
General and administrative expense (including $1,502 and $600 from related parties) | $ 235 | $ 0 | $ 320 | $ 0 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | |
Related Party Transaction [Line Items] | |||||
Proportion of fee and commission income to related party commission income | 96% | 98% | 96% | 93% | |
FST Belize | |||||
Related Party Transaction [Line Items] | |||||
Percentage of interest income, related party | 92% | 100% | 96% | 100% | |
Margin lending receivables from related party as a percentage of related party margin lending receivables (in percent) | 63% | 63% | 98% | ||
Other liabilities from related party as a percentage of related party other liabilities | 75% | 75% | 18% |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) | Mar. 10, 2023 shares | Oct. 20, 2022 shares | Oct. 11, 2022 shares | Oct. 06, 2022 shares | Mar. 30, 2022 individual shares |
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 | ||||
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 | 9 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 4,616 | ||
Unrecognized compensation cost, weighted average recognition period | 2 years 4 months 17 days | ||
Additional paid in capital | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 1,039 | $ 3,945 |
STOCK BASED COMPENSATION - Sche
STOCK BASED COMPENSATION - Schedule of the activity of the company's restricted stock outstanding (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2023 | Mar. 31, 2023 | |
Shares | ||
Restricted stock outstanding, beginning balance (in shares) | 467,058 | |
Granted (in shares) | 0 | |
Vested (in shares) | (140,558) | |
Forfeited/cancelled/expired (in shares) | (4,500) | |
Restricted stock outstanding, ending balance (in shares) | 322,000 | |
Weighted Average Fair Value | ||
Weighted average fair value, beginning balance | $ 18,035 | |
Weighted average exercise price granted | $ 0 | |
Weighted average exercise price vested | (5,448) | |
Weighted average exercise price forfeited/cancelled/expired | (235) | |
Weighted average fair value, ending balance | $ 12,352 |
LEASES - Disclosure of lease as
LEASES - Disclosure of lease assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Leases [Abstract] | ||
Operating lease assets | $ 34,180 | $ 30,345 |
Operating lease liability | $ 34,614 | $ 30,320 |
LEASES - Schedule of lease obli
LEASES - Schedule of lease obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Operating Leases, Future Minimum Payments Receivable [Abstract] | ||
2024 | $ 4,108 | |
2025 | 11,228 | |
2026 | 10,566 | |
2027 | 8,517 | |
2028 | 5,770 | |
Thereafter | 4,387 | |
Total payments | 44,576 | |
Less: amounts representing interest | (9,962) | |
Operating lease liability | $ 34,614 | $ 30,320 |
Weighted average remaining lease term (in months) | 31 months | |
Weighted average discount rate | 15% |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||||
Short-term lease commitment | $ 576 | $ 258 | $ 576 | $ 258 |
Rent expense for office space | $ 725 | $ 1,376 | $ 2,344 | $ 2,492 |
ACQUISITIONS OF SUBSIDIARIES -
ACQUISITIONS OF SUBSIDIARIES - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jul. 26, 2023 | May 22, 2023 | Apr. 26, 2023 | Apr. 14, 2023 | Mar. 31, 2023 |
Arbuz Group | ||||||
Asset Acquisition [Line Items] | ||||||
Direct ownership interest (in percent) | 94.73% | 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] | ||||||
Percentage of voting interests acquired | 12.81% | 8.36% | 5.42% | |||
Business combination, recognized identifiable assets acquired and liabilities assumed, net | $ 11,685 | |||||
Arbuz Group | Mr. Timur Turlov | ||||||
Asset Acquisition [Line Items] | ||||||
Percentage of voting interests acquired | 18.08% | |||||
ReKassa | ||||||
Asset Acquisition [Line Items] | ||||||
Percentage of voting interests acquired | 90% | |||||
Business combination, recognized identifiable assets acquired and liabilities assumed, net | $ 2,555 |
ACQUISITIONS OF SUBSIDIARIES _2
ACQUISITIONS OF SUBSIDIARIES - Schedule of Net Assets Acquired (Details) - USD ($) $ in Thousands | Jul. 26, 2023 | May 22, 2023 | Apr. 26, 2023 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||||||
Restricted cash | $ 105 | |||||
Loans issued | $ 157 | |||||
LIABILITIES | ||||||
Goodwill | $ 52,238 | $ 14,192 | $ 9,460 | |||
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 | 21,795 | |||||
Total purchase price | 31,318 | |||||
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 | 640 | |||||
Total purchase price | $ 1,999 | |||||
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 | |||||
ReKassa | ||||||
ASSETS | ||||||
Cash and cash equivalents | $ 654 | |||||
Brokerage and other receivables | 125 | |||||
Loans issued | 177 | |||||
Fixed assets | 14 | |||||
Intangible assets | 1,679 | |||||
Other assets | 11 | |||||
TOTAL ASSETS | 2,660 | |||||
LIABILITIES | ||||||
Trade payables | 15 | |||||
Lease liability | 42 | |||||
Other liabilities | 48 | |||||
TOTAL LIABILITIES | 105 | |||||
Net assets acquired | 2,555 | |||||
Goodwill | 560 | |||||
Total purchase price | 2,600 | |||||
Non-cash consideration | 259 | |||||
Fair value of NCI | 256 | |||||
Total purchase price | $ 3,115 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
Unfunded commitments under lines of credits and guarantees | $ 126,823 | $ 20,617 |
Bank guarantees | 7,342 | 7,001 |
Total | $ 134,165 | $ 27,618 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) | 9 Months Ended | |
Dec. 31, 2023 USD ($) segment | Mar. 31, 2023 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | segment | 1 | |
Number of segments | segment | 4 | |
Margin lending receivable | $ | $ 193,700 | $ 37,100 |
Middle East/Caucasus | ||
Segment Reporting Information [Line Items] | ||
Margin lending receivable | $ | $ 498,897,000 |
SEGMENT REPORTING - Results by
SEGMENT REPORTING - Results by segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||||
Fee and commission income | $ 120,159 | $ 80,883 | $ 330,565 | $ 253,486 |
Net (loss)/ gain on trading securities | (5,089) | 25,456 | 77,498 | 38,894 |
Interest income | 226,445 | 80,255 | 588,857 | 187,817 |
Insurance underwriting income | 79,017 | 28,557 | 181,882 | 78,998 |
Net gain/(loss) on foreign exchange operations | 38,825 | 20,866 | 54,430 | 30,014 |
Net loss on derivative | (42,568) | (21,469) | (71,795) | (22,523) |
Other income/(expense) | 1,845 | (570) | 8,988 | (79) |
TOTAL REVENUE, NET | 418,634 | 213,978 | 1,170,425 | 566,607 |
Fee and commission expense | 42,818 | 18,314 | 103,116 | 60,068 |
Interest expense | 131,223 | 52,037 | 365,650 | 132,971 |
Insurance claims incurred, net of reinsurance | 40,989 | 17,419 | 96,491 | 51,586 |
Payroll and bonuses | 45,083 | 21,610 | 116,711 | 55,252 |
Professional services | 6,217 | 5,901 | 24,793 | 14,174 |
Stock compensation expense | 1,039 | 2,939 | 3,303 | 6,519 |
Advertising expense | 11,066 | 3,730 | 27,805 | 9,479 |
General and administrative expense | 32,106 | 16,428 | 86,211 | 40,943 |
(Recovery)/allowance for expected credit losses | (3,526) | 24,140 | 15,462 | 30,294 |
TOTAL EXPENSE | 307,015 | 162,518 | 839,542 | 401,286 |
INCOME BEFORE INCOME TAX | 111,619 | 51,460 | 330,883 | 165,321 |
Income tax expense | (15,544) | (5,069) | (51,408) | (26,567) |
INCOME FROM CONTINUING OPERATIONS | 96,075 | 46,391 | 279,475 | 138,754 |
Central Asia and Eastern Europe | ||||
Segment Reporting Information [Line Items] | ||||
Fee and commission income | 82,554 | 31,248 | 240,165 | 56,715 |
Net (loss)/ gain on trading securities | (5,778) | 28,080 | 76,894 | 65,497 |
Interest income | 207,168 | 66,324 | 543,214 | 154,300 |
Insurance underwriting income | 79,017 | 28,557 | 181,882 | 78,998 |
Net gain/(loss) on foreign exchange operations | 39,031 | 20,402 | 54,962 | 32,270 |
Net loss on derivative | (42,568) | (21,469) | (72,365) | (22,523) |
Other income/(expense) | 1,910 | (647) | 6,558 | (116) |
TOTAL REVENUE, NET | 361,334 | 152,495 | 1,031,310 | 365,141 |
Fee and commission expense | 37,393 | 10,110 | 87,568 | 32,638 |
Interest expense | 127,861 | 43,880 | 346,393 | 110,410 |
Insurance claims incurred, net of reinsurance | 40,989 | 17,418 | 96,491 | 51,585 |
Payroll and bonuses | 31,101 | 13,937 | 85,489 | 37,967 |
Professional services | 614 | 859 | 1,764 | 2,337 |
Stock compensation expense | 701 | 0 | 2,230 | 2,137 |
Advertising expense | 4,551 | 2,255 | 12,171 | 5,654 |
General and administrative expense | 22,765 | 11,443 | 60,831 | 22,880 |
(Recovery)/allowance for expected credit losses | (7,381) | 12,767 | 10,456 | 18,930 |
TOTAL EXPENSE | 258,594 | 112,669 | 703,393 | 284,538 |
INCOME BEFORE INCOME TAX | 102,740 | 39,826 | 327,917 | 80,603 |
Income tax expense | (244) | (95) | (432) | (691) |
INCOME FROM CONTINUING OPERATIONS | 102,496 | 39,731 | 327,485 | 79,912 |
Europe, excluding Eastern Europe | ||||
Segment Reporting Information [Line Items] | ||||
Fee and commission income | 32,585 | 48,486 | 75,999 | 193,439 |
Net (loss)/ gain on trading securities | (85) | 819 | 350 | (21,815) |
Interest income | 7,571 | 11,417 | 24,036 | 24,014 |
Insurance underwriting income | 0 | 0 | 0 | 0 |
Net gain/(loss) on foreign exchange operations | (367) | 313 | (60) | (1,517) |
Net loss on derivative | 0 | 0 | 570 | 0 |
Other income/(expense) | (200) | 74 | 1,505 | (31) |
TOTAL REVENUE, NET | 39,504 | 61,109 | 102,400 | 194,090 |
Fee and commission expense | 5,040 | 7,933 | 14,523 | 26,834 |
Interest expense | 3,168 | 4,590 | 17,326 | 10,250 |
Insurance claims incurred, net of reinsurance | 0 | 1 | 0 | 1 |
Payroll and bonuses | 9,154 | 5,795 | 18,253 | 11,357 |
Professional services | 1,995 | 2,483 | 6,331 | 5,236 |
Stock compensation expense | 82 | 0 | 255 | 291 |
Advertising expense | 5,671 | 1,356 | 14,098 | 3,697 |
General and administrative expense | 2,743 | 3,190 | 11,829 | 14,342 |
(Recovery)/allowance for expected credit losses | 3,893 | 11,363 | 5,040 | 11,362 |
TOTAL EXPENSE | 31,746 | 36,711 | 87,655 | 83,370 |
INCOME BEFORE INCOME TAX | 7,758 | 24,398 | 14,745 | 110,720 |
Income tax expense | (8,890) | (4,557) | (18,614) | (18,403) |
INCOME FROM CONTINUING OPERATIONS | (1,132) | 19,841 | (3,869) | 92,317 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Fee and commission income | 4,166 | 1,149 | 12,434 | 3,332 |
Net (loss)/ gain on trading securities | 769 | (3,443) | 68 | (4,788) |
Interest income | 586 | 2,500 | 2,437 | 9,489 |
Insurance underwriting income | 0 | 0 | 0 | 0 |
Net gain/(loss) on foreign exchange operations | 76 | 152 | (696) | (747) |
Net loss on derivative | 0 | 0 | 0 | 0 |
Other income/(expense) | (11) | 0 | 804 | 8 |
TOTAL REVENUE, NET | 5,586 | 358 | 15,047 | 7,294 |
Fee and commission expense | 329 | 255 | 877 | 551 |
Interest expense | 138 | 3,567 | 1,857 | 12,311 |
Insurance claims incurred, net of reinsurance | 0 | 0 | 0 | 0 |
Payroll and bonuses | 3,365 | 1,563 | 10,404 | 5,146 |
Professional services | 3,521 | 2,385 | 16,488 | 6,329 |
Stock compensation expense | 256 | 2,939 | 818 | 4,091 |
Advertising expense | 392 | 110 | 666 | 119 |
General and administrative expense | 5,290 | 1,658 | 11,617 | 3,330 |
(Recovery)/allowance for expected credit losses | (38) | 10 | (34) | 2 |
TOTAL EXPENSE | 13,253 | 12,487 | 42,693 | 31,879 |
INCOME BEFORE INCOME TAX | (7,667) | (12,129) | (27,646) | (24,585) |
Income tax expense | (6,262) | (398) | (31,665) | (7,475) |
INCOME FROM CONTINUING OPERATIONS | (13,929) | (12,527) | (59,311) | (32,060) |
Middle East/Caucasus | ||||
Segment Reporting Information [Line Items] | ||||
Fee and commission income | 854 | 0 | 1,967 | 0 |
Net (loss)/ gain on trading securities | 5 | 0 | 186 | 0 |
Interest income | 11,120 | 14 | 19,170 | 14 |
Insurance underwriting income | 0 | 0 | 0 | 0 |
Net gain/(loss) on foreign exchange operations | 85 | (1) | 224 | 8 |
Net loss on derivative | 0 | 0 | 0 | 0 |
Other income/(expense) | 146 | 3 | 121 | 60 |
TOTAL REVENUE, NET | 12,210 | 16 | 21,668 | 82 |
Fee and commission expense | 56 | 16 | 148 | 45 |
Interest expense | 56 | 0 | 74 | 0 |
Insurance claims incurred, net of reinsurance | 0 | 0 | 0 | 0 |
Payroll and bonuses | 1,463 | 315 | 2,565 | 782 |
Professional services | 87 | 174 | 210 | 272 |
Stock compensation expense | 0 | 0 | 0 | 0 |
Advertising expense | 452 | 9 | 870 | 9 |
General and administrative expense | 1,308 | 137 | 1,934 | 391 |
(Recovery)/allowance for expected credit losses | 0 | 0 | 0 | |
TOTAL EXPENSE | 3,422 | 651 | 5,801 | 1,499 |
INCOME BEFORE INCOME TAX | 8,788 | (635) | 15,867 | (1,417) |
Income tax expense | (148) | (19) | (697) | 2 |
INCOME FROM CONTINUING OPERATIONS | $ 8,640 | $ (654) | $ 15,170 | $ (1,415) |
SEGMENT REPORTING - Net assets
SEGMENT REPORTING - Net assets by segment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Mar. 31, 2023 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 7,449,043 | $ 5,084,558 |
Total liabilities | 6,409,793 | 4,313,822 |
Net assets | 1,039,250 | 770,736 |
Central Asia and Eastern Europe | ||
Segment Reporting Information [Line Items] | ||
Total assets | 6,419,659 | 4,303,126 |
Total liabilities | 5,795,495 | 3,868,326 |
Net assets | 624,164 | 434,800 |
Europe, excluding Eastern Europe | ||
Segment Reporting Information [Line Items] | ||
Total assets | 422,348 | 677,425 |
Total liabilities | 561,395 | 384,921 |
Net assets | (139,047) | 292,504 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total assets | 87,842 | 101,365 |
Total liabilities | 30,223 | 60,198 |
Net assets | 57,619 | 41,167 |
Middle East/Caucasus | ||
Segment Reporting Information [Line Items] | ||
Total assets | 519,194 | 2,642 |
Total liabilities | 22,680 | 377 |
Net assets | $ 496,514 | $ 2,265 |