S&P Global Ratings Upgrades Freedom Holding's Outlook on Improved Risk Management and Compliance

S&P Global Ratings Upgrades Freedom Holding's Outlook

In a significant development, S&P Global Ratings has upgraded the outlook for Freedom Holding Corp.'s key operating subsidiaries from 'Stable' to 'Positive.' This change is a recognition of the company's persistent advancements in risk management and compliance protocols that have strengthened their overall governance structure.

The recent revision concerns major subsidiaries including Freedom Finance JSC, Freedom Finance Europe Ltd., Freedom Finance Global PLC, and Freedom Bank Kazakhstan JSC. Alongside this positive outlook, S&P maintained the existing credit ratings at 'B+/B' for these subsidiaries. The parent company, Freedom Holding Corp., retains a 'B-' rating, with a stable outlook reflecting the overall financial health of the organization amidst changing market conditions.

A Milestone in Governance

Freedom Holding’s Chief Executive Officer, Timur Turlov, expressed pride in the company's achievements. He noted that over the past two years, the firm has successfully developed a unified risk management policy and adopted consistent risk appetite standards. The establishment of a compliance project management office and the growth of its oversight team, now including 129 risk specialists and 162 compliance professionals spread across 22 jurisdictions, illustrate the company's commitment to a robust governance framework.

This overhaul in risk management practices is seen as a turning point for Freedom Holding. Turlov stated, “We’ve come a long way — turning fragmented control functions into a unified, centralized system at the group level. This decision reflects the maturity of our governance model.”

Strengthening Capitalization and Resilience

In its fiscal year 2025, Freedom Holding reported a strengthened capitalization position, as the risk-adjusted capital (RAC) ratio surged from 11.6% to approximately 13%. This improvement can be attributed to a blend of moderate balance sheet growth and a decrease in economic risks, particularly within Kazakhstan's evolving market landscape. The durable nature of Freedom’s brokerage operations played a vital role as well.

By March 2025, the Freedom Group catered to around 5 million clients, with over 4.4 million being financial customers. The launch of the Freedom SuperApp has proven to be an essential digital tool facilitating various financial activities for users.

Leadership in Kazakhstan and European Expansion

S&P Global Ratings also highlighted Freedom Holding's sustained leadership position in Kazakhstan’s retail brokerage sector. The group has amassed approximately 683,000 clients globally, with more than 151,000 engaging in at least one trade during the last quarter of FY2025. The company is also in the midst of expanding its footprint in Europe, counting 391,000 clients through its Cyprus-based subsidiary and over 10 offices across EU nations.

In addition to brokerage operations, Freedom is furthering investments in the telecommunications sector, ensuring the organization adheres to a robust business model sustained by diverse sources of income. As it broadens its operational landscape, Freedom Holding Corp. continues to strengthen its international presence.

About Freedom Holding Corp.

Freedom Holding Corp. is recognized as an international financial and technology group listed on the Nasdaq under the ticker FRHC. It offers a comprehensive suite of investment, banking, insurance, and digital services through its innovative platform, the Freedom SuperApp. Currently, the group operates in 22 countries including major markets like Kazakhstan, the United States, Cyprus, Poland, Spain, Uzbekistan, and Armenia. The firm is under the regulation of the U.S. Securities and Exchange Commission (SEC), ensuring transparency and compliance in its operations.