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LOANS ISSUED
 9 Months Ended
Dec. 31, 2024
Loans and Leases Receivable Disclosure [Abstract]  
LOANS ISSUED LOANS ISSUED
Loans issued as of December 31, 2024, consisted of the following:
Amount OutstandingDue DatesAverage Interest Rate Fair Value of
Collateral		Loan Currency
 
Mortgage loans$809,608  January 2025 - December 2049 11.1%$809,608  KZT
Uncollateralized bank customer loans223,646  January 2025 - December 2044 27.7%—  KZT
Collateralized bank customer loans170,574  January 2025 - July 2043 16.0%125,656  KZT
Car loans164,251  January 2025 - April 2032 24.1%163,375  KZT
Right of claim for purchased retail loans135,242  January 2025 - February 2030 15.0%135,242  KZT
Subordinated loan6,163 December 20253.0%—  USD
Other1,372 January 2025 - September 2029
18.0%/16.5%
27  KZT
Allowance for loans issued(56,597)
Total loans issued$1,454,259 
The Group provides mortgage loans to borrowers on behalf of the JSC Kazakhstan Sustainability Fund (the "Program Operator") related to the state mortgage program "7-20-25" and transfers the rights to claim on the mortgage loans to the Program Operator. The proceeds received from these transfers are presented within funds received under state program for financing of mortgage loans in the Condensed Consolidated Statements of Cash Flows. Under this program, borrowers can receive a mortgage at an interest rate of 7% for 20 years, and the interest payments received by the Group are recognized as interest income in the Company’s Consolidated Statements of Operations and Statements of Other Comprehensive Income. In accordance with the program and trust management agreement for the program, the Group services the transferred loans and remits all repayments of principal it receives plus 4% of the 7% interest received to the Program Operator. The interest paid to the Program Operator is recognized as interest expense in the Condensed Consolidated Statements of Operations and Statements of Other Comprehensive Income. The remaining 3% of the 7% interest is retained by Group. Under the program and trust management agreement, the Group is required to repurchase the rights to make claims on the transferred loans when either loan principal repayments or interest payments are overdue 90 days or more. The repurchase of overdue loans is performed at the loans’ nominal value and is presented within repurchase of mortgage loans under the State Program in the Condensed Consolidated Statements of Cash Flows.

Since the Group transfers the rights to make claims on the loans with recourse for loans that are more than 90 days past due, retains part of the interest received on the loans and agrees to service the loans after the sale of the loans to the Program Operator, the Company has determined that the Group retains control over the loans transferred and continues recognizing the loans, which are accounted for as secured borrowings of the Group in accordance with ASC 860, Transfers and Servicing. As the Company continues to recognize the loans as assets, it also recognizes the associated liability equal to the proceeds received from the Program Operator, which is presented separately as liability arising from continuing involvement in the Condensed Consolidated Balance Sheets. This liability accrues 4% interest annually as described above. As of December 31, 2024 and March 31, 2024, the corresponding liability amounted to $472,867 and $521,885, respectively.
As of December 31, 2024 and March 31, 2024, mortgage loans include loans under the state mortgage program "7-20-25" with an aggregate principal amount of $484,237 and $532,389, respectively, were presented within loans issued in the Condensed Consolidated Balance Sheets.

The Group has an agreement with FFIN Credit, a company established and controlled by FRHC's controlling shareholder, chairman and chief executive officer, Mr. Timur Turlov, to purchase uncollateralized retail loans from FFIN Credit. 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 project, it is anticipated that FFIN Credit will be sold by Mr. Turlov to the Company. Freedom Bank KZ has legal ownership over the loans purchased from FFIN Credit. However, in accordance with U.S. GAAP, 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 as right of claim for purchased retail loans on the Consolidated Balance Sheets within loans issued. As of December 31, 2024 and March 31, 2024, right of claims for purchased retail loans amounted to $135,242 and $146,152, respectively.

The total accrued interest for loans issued amounted to $11,874 as of December 31, 2024 and $8,327 as of March 31, 2024.
Loans issued as of March 31, 2024, consisted of the following:
Amount OutstandingDue DatesAverage Interest Rate Fair Value of
Collateral		Loan Currency
 
Mortgage loans$741,312 April, 2024 - March, 204910.3%$740,462 KZT
Car loans262,708 April, 2024 - March, 203123.9%259,755 KZT
Uncollateralized bank customer loans245,188 April, 2024 - March, 204427.4%— KZT
Right of claim for purchased retail loans146,152 April, 2024 - March, 202915.0%146,152 KZT
Collateralized bank customer loans22,299 June, 2024 - July, 204319.1%22,270 KZT
Subordinated loan5,037 December, 20253.0%— USD
Other2,638 April, 2024 - January, 2029
18.6%/15.0%/2.5%
18 
KZT/USD/EUR
Allowance for loans issued(43,619)
Total loans issued$1,381,715 
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 sign of such classification is 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) exceeding 20%. Agreements classified as “credit impaired” represent loans for which at the reporting date any of the following conditions is met: (i) the individual borrower has been in default for 90 or more days or the borrowers being legal entities have been in default for 60 or more days, (ii) the borrower for the last 6 months (for individuals) and 12 months (for legal entities) restructured the contract due to the deterioration of the financial condition, (iii) the borrower is recognized as credit impaired, a sign of default or a sign of bankruptcy is present, (iv) the deterioration of the financial performance of the borrower, or (v) the presence of other information indicating the existence 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, 2024. Current vintage disclosure is the requirement due to first adoption of ASC 326.
Term Loans by Origination Fiscal Year
20252024202320222021PriorRevolving loansTotal
Mortgage loans$228,661 $185,989 $364,422 $30,536 $— $— $— $809,608 
that are not credit impaired228,546 184,058 362,030 29,928 — — — 804,562 
with significant increase in credit risk115 897 1,200 276 — — — 2,488 
that are credit impaired— 1,034 1,192 332 — — — 2,558 
Car loans2,778 123,984 37,489 — — — — 164,251 
that are not credit impaired2,778 119,315 29,947 — — — — 152,040 
with significant increase in credit risk— 1,271 569 — — — — 1,840 
that are credit impaired— 3,398 6,973 — — — — 10,371 
Uncollateralized bank customer loans77,127 126,817 19,702 — — — — 223,646 
that are not credit impaired76,217 113,674 17,277 — — — — 207,168 
with significant increase in credit risk488 4,098 666 — — — — 5,252 
that are credit impaired422 9,045 1,759 — — — — 11,226 
Right of claim for purchased retail loans92,412 40,147 2,667 16 — — — 135,242 
that are not credit impaired92,412 40,147 2,667 16 — — — 135,242 
with significant increase in credit risk— — — — — — — — 
that are credit impaired— — — — — — — — 
Collateralized bank customer loans161,626 8,793 155 — — — — 170,574 
that are not credit impaired161,591 8,627 155 — — — — 170,373 
with significant increase in credit risk35 47 — — — — — 82 
that are credit impaired— 119 — — — — — 119 
Subordinated loan— — 6,163 — — — — 6,163 
that are not credit impaired— — 6,163 — — — — 6,163 
with significant increase in credit risk— — — — — — — — 
that are credit impaired— — — — — — — — 
Other— 1,193 129 50 — — — 1,372 
that are not credit impaired— 1,185 129 50 — — — 1,364 
with significant increase in credit risk— — — — — — — — 
that are credit impaired— 8 — — — — — 8 
Total$562,604 $486,923 $430,727 $30,602 $— $— $— $1,510,856 
The table below presents the Group's loan portfolio by credit quality classification as of March 31, 2024.
Term Loans by Origination Fiscal Year
20242023202220212020PriorRevolving loansTotal
Mortgage loans$241,848 $458,401 $41,063 $— $— $— $— $741,312 
that are not credit impaired240,974 454,933 40,784 — — — — 736,691 
with significant increase in credit risk676 2,415 111 — — — — 3,202 
that are credit impaired198 1,053 168 — — — — 1,419 
Car loans196,305 66,403 — — — — — 262,708 
that are not credit impaired193,302 55,427 — — — — — 248,729 
with significant increase in credit risk1,590 2,232 — — — — — 3,822 
that are credit impaired1,413 8,744 — — — — — 10,157 
Uncollateralized bank customer loans210,612 34,568 8 — — — — 245,188 
that are not credit impaired200,211 30,337 — — — — — 230,548 
with significant increase in credit risk4,715 1,072 — — — — — 5,787 
that are credit impaired5,686 3,159 8 — — — — 8,853 
Right of claim for purchased retail loans130,291 15,694 167 — — — — 146,152 
that are not credit impaired130,291 15,694 167 — — — — 146,152 
with significant increase in credit risk— — — — — — — — 
that are credit impaired— — — — — — — — 
Collateralized bank customer loans21,972 327 — — — — — 22,299 
that are not credit impaired21,796 327 — — — — — 22,123 
with significant increase in credit risk89 — — — — — — 89 
that are credit impaired87 — — — — — — 87 
Subordinated loan— 5,037 — — — — — 5,037 
that are not credit impaired— 5,037 — — — — — 5,037 
with significant increase in credit risk— — — — — — — — 
that are credit impaired— — — — — — — — 
Other2,404 165 69 — — — — 2,638 
that are not credit impaired2,395 165 69 — — — — 2,629 
with significant increase in credit risk— — — — — — — — 
that are credit impaired9 — — — — — — 9 
Total$803,432 $580,595 $41,307 $— $— $— $— $1,425,334 
Aging analysis of past due loans as of December 31, 2024 and March 31, 2024, is as follows:
December 31, 2024
Loans 30-59 Days past due Loans 60-89 days past due Loans 90 days or more past due and still accruingCurrent loansTotal
Mortgage loans$1,515 $973 $2,558 $804,562 $809,608 
Car loans1,151 689 10,371 152,040 164,251 
Uncollateralized bank customer loans2,802 2,450 11,226 207,168 223,646 
Right of claim for purchased retail loans— — — 135,242 135,242 
Collateralized bank customer loans50 32 119 170,373 170,574 
Subordinated loan— — — 6,163 6,163 
Other— — 8 1,364 1,372 
Total$5,518 $4,144 $24,282 $1,476,912 $1,510,856 
March 31, 2024
Loans 30-59 Days past due Loans 60-89 days past due Loans 90 days or more past due and still accruingCurrent loansTotal
Mortgage loans$2,133 $1,069 $1,419 $736,691 $741,312 
Car loans2,167 1,655 10,157 248,729 262,708 
Uncollateralized bank customer loans3,576 2,211 8,853 230,548 245,188 
Right of claim for purchased retail loans— — — 146,152 146,152 
Collateralized bank customer loans— 89 87 22,123 22,299 
Subordinated loan— — — 5,037 5,037 
Other— — 9 2,629 2,638 
Total$7,876 $5,024 $20,525 $1,391,909 $1,425,334 

The activity in the allowance for credit losses for the three months ended December 31, 2024 and 2023 is summarized in the following tables.
Allowance for credit losses
Mortgage loanUncollateralized bank customer loansCollateralized bank customer loansCar loansRight of claim for purchased retail loansOtherTotal
March 31, 2024
$(3,033)$(19,636)$(80)$(14,262)$(6,577)$(31)$(43,619)
Charges(6,258)(28,099)(3,437)(4,086)(9,335)(22)(51,237)
Recoveries1,089 5,257 53 5,506 5,216 — 17,121 
Write off— 12,838 4 2,713 — 32 15,587 
Forex560 2,852 153 1,927 59 — 5,551 
December 31, 2024
$(7,642)$(26,788)$(3,307)$(8,202)$(10,637)$(21)$(56,597)
Allowance for credit losses
Mortgage loanUncollateralized bank customer loansCollateralized bank customer loansCar loansRight of claim for purchased retail loansOtherTotal
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)
Recoveries1,782 9,826 58 7,096 15,617 — 34,379 
Forex17 16 1 17 87 — 138 
December 31, 2023
$(2,731)$(14,673)$(60)$(13,120)$(5,082)$(11,008)$(46,674)