Annual report [Section 13 and 15(d), not S-K Item 405]

RELATED PARTY TRANSACTIONS

v3.26.1
RELATED PARTY TRANSACTIONS
 12 Months Ended
Mar. 31, 2026
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS
Year ended
March 31, 2026
Year ended
March 31, 2025
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 $ 1,771  $ 966,115  $ 2,233  $ 837,302 
Companies controlled by management 1,771  2,233 
Restricted cash $ 6,586  $ 1,246,312  $ 30  $ 807,468 
Companies controlled by management 6,586  30 
Investment securities $ 8,117  $ 3,342,561  $ 1,174  $ 2,814,733 
Companies controlled by management 8,117  1,174 
Margin lending, brokerage and other receivables, net $ 22,267  $ 4,690,782  $ 41,308  $ 3,319,145 
Management 19,946  10,080 
Companies controlled by management 2,315  31,228 
Other 6  — 
Loans issued $ 21,321  $ 2,077,606  $ 188,445  $ 1,595,435 
Management 475  291 
Companies controlled by management 20,846  188,154 
Other assets, net $ 40,119  $ 264,621  $ 18,080  $ 169,641 
Management 17,885  486 
Companies controlled by management 22,234  17,594 
LIABILITIES
Customer liabilities $ 94,808  $ 7,103,984  $ 48,161  $ 4,304,999 
Management 33,854  13,827 
Companies controlled by management 58,592  32,607 
Other 2,362  1,727 
Margin lending and trade payables $ 836  $ 689,641  $ 1,307  $ 1,322,241 
Management 441  201 
Companies controlled by management 395  1,106 
Insurance contract liabilities $ 6,437  $ 653,907  $ 5,960  $ 472,433 
Companies controlled by management 6,437  5,960 
Other liabilities $ 2,984  $ 285,247  $ 1,407  $ 129,737 
Management 250  1,281 
Companies controlled by management 2,733  125 
Other 1  1 
Year ended
March 31, 2026
Year ended
March 31, 2025
Year ended
March 31, 2024
Related party amounts Total category as per financial statements captions Related party amounts Total category as per financial statements captions Related party amounts Total category as per financial statements captions
Revenue:
Fee and commission income $ 7,680  $ 489,765  $ 4,725  $ 505,026  $ 65,972  $ 440,333 
Management 509  1,062  935 
Companies controlled by management 7,158  3,655  65,035 
Other 13  8  2 
Interest income $ 12,703  $ 882,478  $ 1,731  $ 864,453  $ 24,941  $ 828,224 
Management 10,661  924  665 
Companies controlled by management 2,029  807  24,276 
Other 13  —  — 
Net insurance revenue $ 8,625  $ 402,396  $ 7,550  $ 571,224  $ 776  $ 245,122 
Management 352  23  1 
Companies controlled by management 8,267  7,524  775 
Other 6  3  — 
Other income/(expense) 24,011  $ 25,930  (2,114) $ 17,072  (25) $ 9,696 
Management 5  (1) — 
Companies controlled by management 24,005  (2,113) (25)
Other 1  —  — 
Expense:
Fee and commission expense $ 4,344  $ 218,565  $ 2,269  $ 346,502  $ 127  $ 154,716 
Management —  1  — 
Companies controlled by management 4,344  2,268  127 
Interest expense $ 2,376  $ 489,036  $ 1,359  $ 535,895  $ 955  $ 501,111 
Management 761  495  307 
Companies controlled by management 1,534  825  642 
Other 81  39  6 
Advertising and sponsorship expense $ 27,151  $ 103,304  $ 18,497  $ 124,627  $ —  $ 38,327 
Companies controlled by management 27,151  18,497  — 
As of March 31, 2026, the Group had loans issued which included uncollateralized bank customer loans purchased from FFIN Credit, a company outside of the Group which is controlled by Timur Turlov. Beginning in September 2025, the Bank transitioned retail loan origination to its own platform and discontinued the purchase of unsecured consumer loans from FFIN Credit. For the details of financial impact of the transaction, see in Note 8 "Loans issued".
As of March 31, 2026, 26% of the Group's total related party other assets consisted of a prepayment to Freedom Data Centers LLP (formerly, Freedom Telecom LLP) for the potential acquisition of A-Telecom LLP compared to 55% as of March 31, 2025. The potential acquisition of A-Telecom LLP is part of the Group’s strategy to expand its presence in the
telecommunications market in Kazakhstan and to develop a digital fintech ecosystem. Freedom Data Centers LLP is considered a related party based on the scale of its economic transactions with the Group.
As of March 31, 2026, 13% of the Group's total related party customer liabilities were bank deposits from Turlov Family Office Securities (PTY) LTD held with Freedom Bank KZ, compared to 13% as of March 31, 2025. Turlov Family Office Securities (PTY) LTD is a private securities brokerage company that is wholly owned by Mr. Timur Turlov. Additionally, 1% of the Group's total related party customer liabilities as of March 31, 2026 were from a private company ITS Central Securities Depository Limited, compared to 1% as of March 31, 2025. Private company ITS Central Securities Depository Limited is a subsidiary of International Trading System Limited, an affiliate of the Group.
As of both March 31, 2026 and March 31, 2025, 99% of the Group's total related party insurance contract liabilities were liabilities from FFIN Credit. The Group provides voluntary credit risk insurance covering losses arising from borrower defaults on microloan agreements originated by FFIN Credit. In addition, during the year ended March 31, 2026, the Group recognized $6,789 net insurance revenue, from such insurance services, compared to $6,135 recognized during the year ended March 31, 2025.
The Group continues to support the development of chess and football in Kazakhstan. During the year ended March 31, 2026, the Group incurred advertising and sponsorship expense from Kazakhstan Chess Federation in the amount of $10,026 and from Freedom Youth Football League of Kazakhstan in the amount of $10,705, compared to $11,222 and $3,497, respectively, during the year ended March 31, 2025. Kazakhstan Chess Federation is a Kazakhstan-based company in which Timur Turlov holds a management position. Freedom Youth Football League of Kazakhstan is a Kazakhstan-based company fully owned by Turlov Private Holding, in which Timur Turlov holds 99.9% of the shares. The sponsorship contributions to the Kazakhstan Chess Federation and Freedom Youth Football League of Kazakhstan during the year ended March 31, 2026 were made to support the preparation and holding of championships, tournaments, training camps and other events.