On the 8th of November, Freedom Finance Europe’s founder Freedom Holding Corp. published another report on the SEC website with results for the second quarter of the 2022 fiscal year, which coincides with the third quarter of the 2021 calendar year.
For the reporting period, the holding company's revenue increased by 349% to $313 million, driven by a 2011% (+$167 million) increase in securities income from $8 million to $175 million and a 115% (+$62 million) increase in fee and commission income from $54 million to $116 million. However, the $179 million increase in securities income is a one-time event driven by the revaluation and realization of a large financial investment.
The holding company's net income grew more than 8.5 times year on year, up from $24 million for the second quarter of the 2021 fiscal year to $205 million at the end of the most recent reporting period. Earnings per share, based on a weighted average of 59 million shares, rose from $3.04 to $3.44 for the year.
Other comprehensive income increased from $13 million in the second quarter of the 2021 fiscal year to $205 million in the same period of 2022. Assets and liabilities of the holding company increased by $373,000 and $162,000 respectively.
At the same time holding costs increased by 85% (+$35 million). Operating expenses increased by $21 million, interest expenses increased by $11 million and commissions increased by $3 million. The reason for this was the expansion of the business, particularly the appearance of new clients and the increased volume of their transactions, as well as the interest expenses on clients' bank balances. In addition, expenses related to professional services and short-term funding raised through repo transactions increased.
"Half of the 2022 fiscal year was a dynamic and productive year for all group companies. Our key financial indicators for the second quarter showed multiple growth compared to the first quarter. We continue to implement our plan to expand into new markets and expand our range of services. Our European subsidiary Freedom Finance Europe Ltd. has been building up its base at a good pace since the beginning of the year and already feels quite steady in comparison with other European brokerages. It has also received approval for direct membership from Euroclear Bank's admission commission, which is another guarantee of reliability and trust for the company's clients", said Timur Turlov, CEO of Freedom Holding Corp.
As of the 30th of September 2021 there are more than 340,000 client accounts open with the holding. Freedom Finance Europe Ltd showed the largest growth with 76,000 client accounts opened in the division as of the 30th of September 2021, which is a new growth driver for the brokerage business of the entire holding.