Freedom Holding Corp. Scales Operations Through Bank Acquisition in Turkey

BANKING DELIGHT

Freedom Holding Corp., a NASDAQ-listed fintech diversified group, continues to expand its presence in strategic markets. With its latest move into Turkey through the acquisition of Turkish Bank A.Ş., the group gains the opportunity to bring its banking innovations to a fast-growing 90millionperson market. Combined with its brokerage operations in the country, Freedom Holding can leverage the growing appetite for online financial services and add another block to its regional footprint.

Freedom Holding Corp. is set to acquire 99.32% of Turkish Bank A.Ş. from Özyol Holding and the National Bank of Kuwait. Pending regulatory approval, the transaction gives Freedom Holding Corp. access to Turkey’s 90-million-strong market, unlocking significant growth opportunities for its digital financial platform. This move had already been announced by CEO and the Founder of Freedom Timur Turlov at the end of 2025, but no details about the stake were provided at that time.

Small Giant

TurkishBank Group started in 1901 as a mutual aid fund, Lefkoşa İslam İddihar Sandığı, in Lefkoşa, Northern Cyprus. Over time, it developed into a bank, Lefkoşa Türk BankasıLtd. In 1973 the bank dropped “Lefkoşa” from its name, becoming Türk Bankası, establishing the brand that would later cover the whole group.

In 1974, Türk Bankası opened a branch in London, United Kingdom, and in 1982 in Istanbul, Turkey. In 1991, the Istanbul branch gained separate legal-entity status as TurkishBank A.Ş., and the Freedom’s curent transaction involved only this Turkish bank. Banking operations in other countries and brokerage units were not covered by the deal.

Turkish Bank’s main business areas include corporate, commercial, retail, and private banking services, as well as project financing and fund management. It is a small-sized bank in Turkey. As of the end of 2024, it ranked 39th out of 54 banks by total assets, and by December 2025, it stood at 57th out of 58, according to the Banks Association of Turkey (TBB).

For Freedom Holding Corp. as the acquiring party, these positions reflect a strategic opportunity: acquiring a clean, unencumbered banking license and infrastructure, enabling the company to actively implement its own innovative financial solutions and innovations in Turkey.

Broaden possibilities

European Banking Federation, in its research, states that the number of active users of digital banking transactions reached 120 million as of December 2024. Turkey’s population approaches 90 million, but many customers use multiple digital channels or accounts, which explains why total digital transactions exceed the population.

In 2024, the volume of online banking transactions increased by 62 percent to TL 49.4 trillion (approximately $1.5 trillion USD, based on the 2024 average USD/TRY exchange rate), while mobile banking increased by 71 percent to TL 127 trillion (approximately $3.9 trillion USD).

According to some research, for example, Mobile Banking Statistics and Facts (2026) от Market.biz, Turkey leads the world, with 85% of its population actively using mobile banking services. Nigeria follows with an impressive 82% adoption, Brazil and South Korea each record 76% mobile banking usage. In the United Kingdom, for instance, mobile banking adoption has reached 65%. The United States, despite its technological leadership, reports a relatively lower 58% adoption rate.

This positions Turkey as a favorable environment for Freedom’s digital banking growth.

Puzzle Complete

Banking is not the only business in Freedom Holding’s portfolio, but it is one of the company’s core areas. One of Freedom Bank’s key strengths in Kazakhstan - the core area of its banking business - is that its services are fully online. Clients can apply for mortgages, car loans, and small-business financing, and many applications can now be approved within 24 hours without visiting a branch. Integration with the Kazakh government's e-services helps the bank complete identity and compliance checks faster, reducing the delays common in traditional banking.

The bank also uses AI to review credit applications, run compliance checks, and support customers, thereby speeding up decision-making and improving accuracy. An AI voice assistant built into the bank’s SuperApp lets clients interact with the service using simple voice commands and navigate financial products more easily. The idea is to take this model — already tested and working in Kazakhstan — and bring it to other markets.

The acquisition of the Turkish bank is a logical addition to the holding company's existing infrastructure in the region. Freedom’s Finansal Hizmetler has earlier received regulatory approval to establish its own brokerage firm, Freedom Yatirim(Freedom Investment Securities Inc.), in Turkey. Together with its banking license, this allows the company to offer accounts, loans, payments, and investment products on a single platform, attracting clients, cross-selling services, and expanding its digital financial business.

Vladimir Pochekuev, the Chairman of the Board of Directors of Freedom Financial Services, said that buying a bank in Turkey will provide important infrastructure. The deal is expected to make the group better at offering a full range of services, including banking, capital markets, payments and retail investment solutions. Hakan Borteçene, Chairman of TurkishBank Group, emphasized that digital capabilities and the Freedom international platform will have a positive effect on the development of the entire Turkish banking sector.

Planet Freedom

Freedom Holding has been steadily expanding its geographic footprint, entering new markets. The group, already providing financial services in 21 countries, continues to enter new markets. After obtaining a brokerage license in the United Arab Emirates and establishing subsidiary banks in Tajikistan and Georgia.

The continued expansion supported the company’s strong financial results in the latest reporting period, reflecting both increased revenue and a broader audience. Revenue in the third quarter of fiscal year 2026, ended December 31, 2025, increased from $526.1 million in the previous quarter to $628.6 million. Net income almost doubled, surging from $38.7 million to $76.2 million. For the first nine months of the fiscal year, revenue totaled $1.69 billion. Diluted earnings per share amounted to $1.25 for the quarter and $2.38 for the nine-month period. Financial growth is fueled by customer inflow. The number of clients served directly by companies within the Freedom group totaled 7.2 million. Across the entire ecosystem, including partners' operations, the number of users is around 11 million.

Freedom Holding’s solid performance is reflected in the recent S&P's strong credit ratings. Besides that, in May 2025, Freedom Holding was included in the prestigious Russell 3000 Index, one of the most widely followed benchmarks of the U.S. equity market, representing nearly 98 % of all investable U.S. stocks. This milestone showcases the company’s growing scale, credibility, and recognition among top institutional investors. In July 2025, FRHC was also added to the First Trust Financials AlphaDEX Fund (FXO), a rulesbased ETF focused on high-performing financial stocks, further increasing its visibility in the sector. Notably, BlackRock, the world’s largest independent institutional investor, holds FRHC shares, stressing the company’s appeal to leading global investors and reinforcing its position in the international financial community.