OLPL has reported earnings per share of PKR 6.99 in FY25 (FY24: PKR 7.94). Furthermore, in 1QFY26 EPS stood at PKR 1.69 (1QFY25: PKR 1.85). The majority of the company’s focus is on the SME sector. As of FY25, 74% of disbursements were made to SMEs and individuals, with the overall portfolio remaining at 72% for this segment.
OLP is maintaining a consistent payout within the NBFC sector. In FY25, the company declared a 55% dividend, including bonus shares. The company expects very reasonable growth from the commercial vehicle segment. The initiative focusing on financing used commercial vehicles introduced last year provided about 80% growth in that segment, a momentum expected to continue.
They are working on establishing a digital marketplace for commercial vehicles. OLP is scaling up operations for the term finance business, which was introduced a couple of years earlier, is expected to yield good volumes. OLP is working on expanding branch operations, where new branches are being established, and existing ones are being upgraded. OLP has set up a committee and established a roadmap for the conversion of the existing business towards Shariah compliance by 2027.
The goal is to convert all modules into Islamic finance within the next two years. Going forward, the management is working hard on increasing disbursements and increasing leverage, which they expect will ultimately help in giving higher payouts this year. Low ROE is primarily due to borrowing from banks for lending. The focus for the current year is to further increase the portfolio. Management expects definite improvement, although perhaps not matching commercial banks. OLP expects interest rates to be maintained at least through the current period till 30th June 2026 or the next quarter, though they are unsure about potential increases.
The economy is perceived to be stable and growth is expected, particularly in the automobiles and SME sectors. OLP is also introducing solar financing to individuals, which will be a new offering, though the facility is already provided to corporate customers.
Important Disclosures
Disclaimer: This report has been prepared by Chase Securities Pakistan (Private) Limited and is provided for information purposes only. Under no circumstances, this is to be used or considered as an offer to sell or solicitation or any offer to buy. While reasonable care has been taken to ensure that the information contained in this report is not untrue or misleading at the time of its publication, Chase Securities makes no representation as to its accuracy or completeness and it should not be relied upon as such. From time to time, Chase Securities and/or any of its officers or directors may, as permitted by applicable laws, have a position, or otherwise be interested in any transaction, in any securities directly or indirectly subject of this report Chase Securities as a firm may have business relationships, including investment banking relationships with the companies referred to in this report This report is provided only for the information of professional advisers who are expected to make their own investment decisions without undue reliance on this report and Chase Securities accepts no responsibility whatsoever for any direct or indirect consequential loss arising from any use of this report or its contents At the same time, it should be noted that investments in capital markets are also subject to market risks This report may not be reproduced, distributed or published by any recipient for any purpose.