S&P Optimism Regarding Freedom24: Recognition of Its Financial Strength

The rating agency S&P Global Ratings raised the outlook for the long-term credit ratings of Freedom Holding Corp. and its main subsidiaries from stable to positive, reflecting an optimistic assessment of Kazakhstan's banking sector. The ratings of subsidiaries, including Freedom24 (Freedom Finance Europe Ltd.), remain at BB-/B, while the holding company's rating is B-. S&P also raised the national ratings of Freedom Finance JSC and Freedom Bank Kazakhstan JSC from kzA- to kzA. This is the second positive adjustment since June, when the agency increased the credit ratings of four operating subsidiaries from B+ to BB-. The progress was attributed to risk management and compliance with regulatory standards, with the agency acknowledging improvements in the regulation and supervision of the Kazakh banking sector, factors that strengthen capital accumulation and sovereign state stability. S&P projects that inflationary pressures, although still present, should begin to ease, which could drive greater participation in financial markets. Currently, deposits in Kazakhstan offer interest rates above 10%, and a lower interest rate scenario should improve the attractiveness of the stock market for savers. In the first quarter of fiscal year 2027, ended June 30, 2026, Freedom Holding Corp. reported a 40% increase in net income, totaling $732.5 million, driven by brokerage and banking activities. The group reached $14 billion in assets, with a quarterly net income of $31.7 million. CEO Evgenii Tiapkin highlighted that the positive outlook reflects confidence in the sustainable growth of the group, emphasizing the importance of disciplined capital and risk management during expansion in Europe.