Olp Financial Services Pakistan Limited · PSX:OLPL
Olp Financial Services Pakistan — Investor Presentation (October 2023)
24 slides from Olp Financial Services Pakistan's investor presentation, Oct 26, 2023
Slide 1: Corporate Briefing Session
OLP Financial Services Pakistan Limited (PSX Symbol: OLPL) CORPORATE BRIEFING SESSION October 26, 2023 12:00 PM
Slide 2: Agenda
Agenda 1 Introduction 4 Financial Information 2 Corporate Governance 5 OLP’s Position in Lending NBFCs 3 Operational Information 6 Future Strategy
Slide 3: Annual Profit (Rs. Million)
Annual Profit (Rs. Million) 2,029 1,719 1,447 1,376 1,283 1,158 1,380 1,211 976 973 808 1,023 915 882 640 841 747 671 702 454 395 414 360 351 306 516 274 225 396 226 166 157 150 156 179 151 112 133 321 334 125 338 42 49 60 266 267 0.11 5 13 21 33 209 202 148 132 130 136 154 126 145 100 103 104 22 27
Slide 4: Dividend Incl. Bonus Shares
Dividend Incl. Bonus Shares 55% 50% 45% 45% 45% 45% 45% 45% 45% 45% 40% 40% 40% 40% 40% 38% 38% 35% 35% 35% 35% 35% 30% 30% 30% 30% 30% 28% 27% 25% 25% 23% 22% 18% 15% 15% 10% 10% 5% 0% 0% 0% 0% -5% 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2
Slide 5: Corporate Governance
Se 2 2 OLP Corporate Governance
Slide 6: Internal Governance Structure
Internal Governance Structure Audit Management Committee Committee HR Nomination and Remuneration Credit Committee Committee Board CEO Asset Risk Liability Committee Management Committee Information Technology Credit Steering Committee Committee www.olpfinance.com 6 6
Slide 7: Board of Directors
Board of Directors DIRECTORS PROFILE Mr. Khalid Aziz Mirza Khalid Mirza has nearly 50 years of work experience. He served in the Securities & Exchange Commission of Pakistan in various capacities including Chairman. Currently He has been teaching in Lahore School of Economics as Professor of Practic
Slide 8: Board of Directors
Board of Directors DIRECTORS PROFILE Ms. Mika Takeda Ms. Takeda joined ORIX Corporation in 2001, after graduation from Keio University, Japan. She has assumed various roles in ORIX Corporation. Currently she is serving as Senior Vice President of Global Business Group in ORIX Corporation, appointed
Slide 9: OLP’s Risk Management Framework
OLP’s Risk Management Framework OLP’s Risk Management 1ST Line of Defense 2ND Line of Defense 3RD Line of Defense Framework is overseen by Board’s Risk Committee and Governance Risk Management Compliance ultimately by the Board. • Board approved policies • Performs both First and • Checks adherence
Slide 10: Operational Information
Se 2 2 OLP Operational Information
Slide 11: Operations
Operations OLP is headquartered at Karachi with 36 branches situated in 33 cities across Pakistan. Staff strength of 438 permanent employees. The Pakistan Credit Rating Agency Limited (PACRA) has assigned OLP a long term rating of (AA+) and a short term rating (A1+) (maintained same rating since 201
Slide 12: Main Branches in Pakistan
Main Branches in Pakistan ZONAL OFFICES BRANCHES KARACHI - (HEAD OFFICE) KHALID BIN WALEED DHA HYDERABAD HYDERABAD SUKKUR ISLAMABAD ISLAMABAD CHAKWAL MIRPUR RAWALPINDI TAXILA FAISALABAD FAISALABAD JHANG SAHIWAL SARGODHA LAHORE LAHORE THOKAR NIAZ BAIG MULTAN MULTAN BAHAWALPUR RAHIM YAR KHAN VEHARI PE
Slide 13: OLP Products
OLP Products www.olpfinance.com 13 13
Slide 14: Sector Wise Portfolio - June 30, 2023
Operational Review – Executions and Average TR Sector Wise Portfolio - June 30, 2023 AmountNFA in Rs ‘million & OTHER Individuals SECTOR FINANCES & LOANS (Rs. Million) GOODS TRANSPORT Individuals 8,343 SERVICES GOODS TRANSPORT 3,022 TRADING SERVICES 1,879 PUBLIC TRANSPORT 12% 7% TRADING 1,834 7% FUE
Slide 15: Financial Information
a“ 2 J OLP Financial Information
Slide 16: Financial Performance
Financial Performance Statement of Profit or Loss June 2023 June 2022 Amount in Rs. million Income from operations 5,904 3,868 Other income 774 558 Share of profit from associates 118 64 Total income 6,796 4,490 Finance cost 3,158 1,794 Administrative, general and other expenses 1,472 1,348 Total ex
Slide 17: Financial Position
Financial Position Statement of Financial Position June June Amounts in Rs. million 2023 2022 Net investment in finance lease 11,257 12,684 Finances and loans 14,191 11,764 Total portfolio – net of provision 25,448 24,448 Investments 4,952 2,975 Other assets 1,553 2,307 Total Assets 31,953 29,730 Ba
Slide 18: Funding Analysis
Funding Analysis Rs. in millions 9,794 8,914 8,013 8,526 8,234 4,909 4,612 Equity COD Bank 4,339 4,937 4,497 13,783 14,384 11,631 8,688 9,367 2019 2020 2021 2022 2023 Total Borrowing 15,970 13,185 14,304 18,395 19,293 D/E Ratio (times) 1.99 1.60 1.67 2.06 1.96 www.olpfinance.com 18
Slide 19: Overdue Trend Analysis (> 90days)
Overdue Trend Analysis (> 90days) Rs. in millions 1,837 1,207 1,290 1,124 686 June-19 June-20 June-21 June-22 June-23 Provision 871 1,173 1,121 1,055 889 Provision coverage 72% 64% 87% 94% 129% Infection ratio 5.30% 9.70% 6.00% 4.50% 2.7% 19
Slide 20: Financial Ratios (2021-2023)
Operational Review – Executions and Average TR FINANCIAL RATIOS (2021-2023) Amount in Rs ‘million Return on equity (ROE) (%) Return on assets (ROA) (%) 3.8% 3.9% 3.2% 10.9% 12.9% 10.1% June-21 June-22 June-23 June-21 June-22 June-23 Debt equity ratio (Times) Earnings per share (EPS) (Rs.) 6.9 2.0 1.
Slide 21: Financial Ratios (2021-2023)
Operational Review – Executions and Average TR FINANCIAL RATIOS (2021-2023) Amount in Rs ‘million Price to Book ratio (Times) Dividend Yield (%) 0.53 21.93 0.41 19.05 0.33 15.53 June-21 June-22 June-23 June-21 June-22 June-23 www.olpfinance.com 21 21
Slide 22: Future Strategy
. q Future Strategy = A
Slide 23: Future Strategy
Future Strategy New products as New Lessees: Portfolio Management: Staff training: primary growth drivers: - OLP will focus on - Close monitoring of - Further enhance - Term Finance (backed increasing its client overall economic employees technical by real estate) to be base to ensure conditions wit
Slide 24: Thank You
Thank You www.olpfinance.com 24
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