The banking sector of Kazakhstan continues to grow, and one of the most prominent players in the country in recent years has been Freedom Bank, part of the Nasdaq-listed fintech company Freedom Holding Corp. Timur Turlov, the founder and CEO of the group, and his team have not only strengthened its position in the domestic market but are also actively exploring new deals, including potential acquisitions of other financial institutions in Kazakhstan.
Confident growth: Key results of Freedom Bank
Over the past year, Freedom Bank has shown strong financial performance. The bank’s loan portfolio grew by 35%, from 797 billion to 1.1 trillion tenge ( $1.7–2.3 billion). This growth reflects an expanding client base and strong lending activity to both businesses and individuals. The deposit segment also showed significant strengthening, as retail deposits increased by 50%, reaching 882 billion tenge (around $1.8 billion), while corporate deposits grew by 26% to 590 billion tenge ($1.2 billion).
Analysts pay close attention to the quality of the loan portfolio. Freedom Bank has one of the lowest levels of non-performing loans in the industry, and in business lending, the bank reports zero overdue debt.
“We are building a bank as a platform of trust. Low delinquency is the result of careful risk management and client selection,” Timur Turlov said.
Ecosystem and technology as growth drivers
Ecosystem and technology as growth driversFreedom Bank is a key element of the fintech ecosystem of Freedom Holding Corp. Over the past year, its Freedom SuperApp user base has doubled from 2.5 million to 5 million users, and the total number of ecosystem clients has exceeded 11 million. The bank has also strengthened its position in the card business, becoming a leader in Mastercard retail; and it is also among the leaders in Visa cards.
Significant investments are being made in human capital. Staff compensation expenses increased by 43.4% to approximately $90 million – the highest growth rate in Kazakhstan’s banking sector.
“Our team is our main asset. We invest in people as actively as we do in technology,” Timur Turlov noted.
Freedom Holding Corp. views the banking segment as a key tool for expanding into foreign markets. The company is already exploring and implementing projects in Tajikistan, Georgia, and Turkey, and is also seeking acquisition opportunities in Europe and possibly the United States.
“A bank is the entry point into a country’s economy. Through it, we can scale the entire digital ecosystem,” Timur Turlov said in an interview with Bloomberg.
In addition to its existing international initiatives, Freedom Holding Corp. is turning its attention increasingly to Western Europe, with France emerging as an attractive market in particular. The country’s substantial retail banking sector, developed fintech ecosystem and ongoing digital transformation create favourable conditions for entry. France is regarded as one of the most promising markets for obtaining a banking licence, and Freedom has already cooperated with French authorities and plans to participate in an annual meeting with foreign investors there.
Potential deals in Kazakhstan
Potential deals in KazakhstanDespite active international expansion, Timur Turlov does not rule out new acquisitions in the domestic market. Which bank he may potentially acquire is something that has analysts thinking. According to Turlov, the group is interested in banks with assets of at least 2.5 trillion tenge ($5–5.5 billion) and capital of around $500 million.
Kazakhstani banker and economist Galim Khusainov identifies the two most likely candidates:
1. Bank RBK – the primary contender
According to the expert, Bank RBK appears to be the most logical acquisition target. The bank’s main shareholder, Vladimir Kim, has recently been reducing his involvement in the financial sector, focusing on other assets.
“Bank RBK is an asset that could be interesting to Turlov in terms of integration into the ecosystem. For the current owner, it is no longer a key asset,” Khusainov said.
2. Eurasian Bank – a partial stake option
The second candidate is Eurasian Bank. However, in this case, it may not be a full acquisition but rather the purchase of a controlling stake. “Turlov already has cases where he does not fully own a company but successfully integrates it into his ecosystem,” Khusainov emphasized.
The main goal of the holding company is to consolidate banks and expand the client base, thereby accelerating the development of the entire Freedom ecosystem. Timur Turlov noted that any potential acquisition will depend on the asset’s valuation.
“We consider deals where there is a discount to book value. It is important to strengthen synergy and gain access to new clients, especially in the corporate segment,” he explained.
Freedom Bank’s strong financial performance, technological development, and aggressive growth strategy make a new wave of consolidation in Kazakhstan’s banking market more likely. If expert forecasts prove correct, Timur Turlov’s next major deal could significantly reshape the competitive landscape.
At the same time, Freedom Holding Corp’s growing interest in Western Europe, particularly France, adds an additional layer of intrigue. While domestic acquisitions may offer immediate synergy, entering the French market could provide strategic access to the European Union’s financial system. It remains to be seen whether Turlov will prioritise consolidation at home, accelerated expansion into Europe, or both.
