Quarterly report [Sections 13 or 15(d)]

RELATED PARTY TRANSACTIONS

v3.26.1
RELATED PARTY TRANSACTIONS
 3 Months Ended
Jun. 30, 2026
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS
Related party transactions as of June 30, 2026 and March 31, 2026, consisted of the following:
June 30, 2026 March 31, 2026
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 $ 1,139  $ 1,351,050  $ 1,771  $ 966,115 
Companies controlled by management 1,139  1,771 
Restricted cash $ 6,989  $ 1,473,196  $ 6,586  $ 1,246,312 
Companies controlled by management 6,989  6,586 
Investment securities $ 7,556  $ 4,182,982  $ 8,117  $ 3,342,561 
Companies controlled by management 7,556  8,117 
Margin lending, brokerage and other receivables, net $ 34,560  $ 3,996,783  $ 22,267  $ 4,690,782 
Management 25,913  19,946 
Companies controlled by management 8,212  2,315 
Other 435  6 
Loans issued $ 25,157  $ 2,036,515  $ 21,321  $ 2,077,606 
Management 403  475 
Companies controlled by management 24,754  20,846 
Other assets, net $ 40,641  $ 376,937  $ 40,119  $ 264,621 
Management 17,753  17,885 
Companies controlled by management 22,888  22,234 
LIABILITIES
Customer liabilities $ 113,506  $ 7,048,800  $ 94,808  $ 7,103,984 
Management 43,113  33,854 
Companies controlled by management 67,942  58,592 
Other 2,451  2,362 
Margin lending and trade payables $ 652  $ 594,005  $ 836  $ 689,641 
Management —  441 
Companies controlled by management 652  395 
Insurance contract liabilities $ 5,497  $ 768,095  $ 6,437  $ 653,907 
Companies controlled by management 5,497  6,437 
Other liabilities $ 4,271  $ 388,330  $ 2,984  $ 285,247 
Management 236  250 
Companies controlled by management 4,034  2,733 
Other 1  1 
Three Months Ended June 30, 2026 Three Months Ended June 30, 2025
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 $ 1,023  $ 156,734  $ 684  $ 107,642 
Management 353  147 
Companies controlled by management 667  533 
Other 3  4 
Interest income $ 4,511  $ 295,106  $ 583  $ 198,571 
Management 3,165  266 
Companies controlled by management 1,344  317 
Other 2  — 
Net insurance revenue $ 694  $ 124,175  $ 5,927  $ 143,815 
Management 29  11 
Companies controlled by management 664  5,914 
Other 1  2 
Other income $ 103  $ 11,645  $ 355  $ 8,561 
Management 1  — 
Companies controlled by management 102  355 
Expense:
Fee and commission expense $ 1,114  $ 31,289  $ 1,411  $ 84,354 
Management —  1 
Companies controlled by management 1,114  1,410 
Interest expense $ 1,217  $ 177,563  $ 436  $ 113,410 
Management 160  110 
Companies controlled by management 762  313 
Other 295  13 
Advertising and sponsorship expense $ 11,831  $ 35,785  $ 5,513  $ 24,463 
Companies controlled by management 11,831  5,513 
As of June 30, 2026 and 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 June 30, 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 26% as of March 31, 2026. 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 June 30, 2026, 14% 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, 2026. Turlov Family Office Securities (PTY) LTD is a private securities brokerage company that is wholly owned by Mr. Timur Turlov. Additionally, 0.5% of the Group's total related party customer liabilities as of June 30, 2026 were from a private company ITS Central Securities Depository Limited, compared to 1% as of March 31, 2026. Private company ITS Central Securities Depository Limited is a subsidiary of International Trading System Limited, an affiliate of the Group.
As of both June 30, 2026 and March 31, 2026, 99.2% 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 three months ended June 30, 2026, the Group did not recognize any net insurance revenue, from such insurance services, compared to $5,462 recognized during the three months ended June 30, 2025.
The Group continues to support the development of chess and football in Kazakhstan. During the three months ended June 30, 2026, the Group incurred advertising and sponsorship expenses related to Kazakhstan Chess Federation in the amount of $4,123, Freedom Youth Football League of Kazakhstan in the amount of $4,637, and Football Club Shakhter in the amount of $2,544, compared to $1,608, $2,526 and $0, respectively, during the three months ended June 30, 2025. Kazakhstan Chess Federation is a Kazakhstan-based company in which Timur Turlov holds a management position. Freedom Youth Football League of Kazakhstan and Football Club Shakhter are Kazakhstan-based companies wholly owned by Turlov Private Holding, in which Timur Turlov holds 99.9% of the shares. The sponsorship contributions to the Kazakhstan Chess Federation, Freedom Youth Football League of Kazakhstan and Football Club Shakhter during the three months ended June 30, 2026 were made to support the preparation and holding of championships, tournaments, training camps and other events.