OLP Financial Services Pakistan : Transmission of Quarterly Report for the Period Ended September 30 2023

Towering

Strength

First Quarter Report

2024

TABLE OF

CONTENT

Company Profile

Parent, Subsidiaries and Associates

Company Information

Meet the Team

Directors' Report

Directors' Report (Urdu)

Unconsolidated Financial Statements

Consolidated Financial Statements

COMPANY

PROFILE

OLP Financial Services Pakistan Limited (OLP) was established in July 1986 as a joint venture between ORIX Corporation, Japan and local investors. The Company is listed on the Pakistan Stock Exchange.

OLP is headquartered in Karachi and has 36 branches situated in 33 cities. Its major shareholder is ORIX Corporation (ORIX) having 49.58% shareholding. Established in 1964, ORIX is one of Japan's leading integrated financial services groups with operations in 28 countries worldwide. The group has experience of 59 years of operations and has a total asset base of Yen (¥) 15,584 billion and equity of ¥ 3,643 billion as at June 30, 2023, which equates to US$ 108 billion and US$ 25 billion respectively.

OLP offers value-added financial products and innovative customized services to a wide array of customers under the umbrella of Investment Finance Services throughout Pakistan. The blend of international experience and local expertise acquired over the last 37 years provides OLP a distinctive competitive edge.

PARENT

SUBSIDIARIES &

ASSOCIATES

PARENT COMPANY

ORIX Corporation

Tokyo Headquarters, World Trade Center Building, 2-4-1,Hamamatsu-choMinato-ku, Tokyo 105-6135, Japan

Tel:[phone]

Fax:[phone] www.orix.co.jp

SUBSIDIARIES

OLP Services Pakistan

(Private) Limited

Office 601, 6th Floor, Syedna Tahir Saifuddin Memorial Trust Building Civil Lines, Beaumont Road, Karachi, Pakistan

Tel: [phone]

OLP Modaraba

Office 601, 6th Floor, Syedna Tahir Saifuddin Memorial Trust Building Civil Lines, Beaumont Road, Karachi, Pakistan

Tel: [phone] www.olpmodaraba.com

ASSOCIATED COMPANIES

Yanal Finance Company

(Formerly Saudi ORIX Leasing Company)

3612, Prince Fawaz Bin Abdul Aziz, Postal code 12813, Riyadh 7997, Kingdom of Saudi Arabia

Tel: [phone] www.yanal.com

SAMA Finance SAE

(Formerly ORIX Leasing Egypt SAE)

5th Floor, Cairo Center Building, 2, Abd EI Kader Hamza Street, Garden City, Cairo 11461, Egypt Tel: [phone]

Fax: [phone] www.samafinance.com

COMPANY

INFORMATION

Board of Directors

Mr. Khalid Aziz Mirza

Chairman and Independent

Non-Executive Director

Mr. Rashid Ahmed Jafer

Independent Non-Executive

Director

Ms. Mika Takeda

Non-Executive Director

Mr. Ramon Alfrey

Deputy Chief Executive Officer,

CFO and Executive Director

Mr. Yoshiaki Matsuoka

Non-Executive Director

Ms. Keiko Watanabe

Non-Executive Director

Mr. Shaheen Amin

Chief Executive Officer and Executive Director

Audit and Risk Committee

Mr. Rashid Ahmed Jafer - Chairman

Ms. Keiko Watanabe

Ms. Mika Takeda

Mr. Ramon Alfrey

Human Resource Nomination and Remuneration Committee

Mr. Khalid Aziz Mirza - Chairman

Mr. Yoshiaki Matsuoka

Mr. Shaheen Amin

Credit Committee

Mr. Yoshiaki Matsuoka - Chairman

Mr. Shaheeen Amin

Mr. Ramon Alfrey

Chief Financial Officer

Mr. Ramon Alfrey

Company Secretary

Mr. Haider Abbas Kalhar

Head of Internal Audit and Secretary to Audit Committee

Mr. Nadeem Amir Ali

Head of Compliance

Mr. Rashid Ahmed

Credit Rating by PACRA

Long term entity rating AA+

Short term entity rating A1+

Legal Advisors

M/s Mansoor Ahmad Khan & Co.

Auditors

A.F.Ferguson & Co.

Chartered Accountants

State Life Building No. 1-C, I.I.

Chundrigar Road, P.O.Box 4716,

Karachi - 74000, Pakistan

Registrar and Share Transfer Office

FAMCO Associates (Pvt.) Limited

8-F, Near Hotel Faran, Nursery, Block-6, P. E. C. H. S., Shahra-e-Faisal, Karachi. Tel: [phone]

Shariah Advisor

Al Hamd Shariah Advisory Services (Pvt.) Limited

Banks and Lending Institutions

1. Allied Bank Limited
2. Askari Bank Limited
3. Bank Al Habib Limited
4. Bank Alfalah Limited
5. Faysal Bank Limited
6. Habib Bank Limited
7. Habib Metropolitan Bank Limited
8. JS Bank Limited
9. Karandaaz Pakistan
10. MCB Bank Limited
11. Meezan Bank Limited
12. SCB (Pakistan) Limited
13. Telenor Microfinance Bank
14. United Bank Limited

Registered and Head Office

OLP Building, Plot No.16, Sector No.24,

Korangi Industrial Area, Karachi-74900,

Pakistan.

MEET

THE TEAM

Mr. Shaheen Amin

Chief Executive Officer

Mian Faysal Riaz

Chief Operating Officer

Mr. Waqas Ahmed Khwaja

Head - Marketing

Mr. Fahad Shahzad Memon

Head - Consumer Auto Division

Mr. Shah Suleman Fareed

Head - Term Finance and

Insurance Division

Mr. Shafiq Ur Rehman

Head - Credit Risk

Management

Mr. Ramon Alfrey

Deputy Chief Executive Officer and CFO

Mr. Imtiaz Chaudhry

Group General Manager

Mr. Tahir Ali Shah

Head - Commercial

Vehicle Division

Ms. Aseya Qasim

Head - Micro Finance

Division

Mr. Abid Hussain Awan

Head - Group Strategy and Planning

Mr. Hamood Ahmed

Head - Business Control

Mr. Haider Abbas Kalhar

Company Secretary

Mr. Mashooque Ali Bhatti

Head - HR

Mr. Muhammad Ikram

Head - Information Systems

Ms. Fauzia Noorani

Head - Legal

Mr. Nadeem Amir Ali

Head - Internal Audit

Mr. Muhammad Aslam

Head - Special Asset Management

Mr. Rashid Ahmed

Head - Compliance

Mr. Mamoon Ishaq

Head - Administration

Directors' Review Report

For the quarter ended September 30, 2023

The Board of Directors of OLP Financial Services Pakistan Limited (OLP / the Company) is pleased to present the unaudited condensed interim financial statements for the first quarter ended September 30, 2023.

Economic Review

Economic conditions of the Country remained volatile in the first quarter of the new fiscal year. During the quarter, rising electricity and fuel prices contributed to average inflation increasing to 29% as compared to 25% in the same period last year. Large scale manufacturing sector, which contracted by 10.3% in FY2023, showed slight improvement in the first two months of the new fiscal year. However, growth was experienced in few sectors while others, like automobile and textile sectors, showed negative growth.

The rupee showed a turnaround since start of September 2023 when it touched Rs. 308 against US Dollar. Since then it has appreciated to Rs. 276 per USD and remained the best performing currency in the month of September 2023. The effects of currency appreciation have already been felt as the Government has decreased fuel prices by cumulative Rs. 48 in October 2023. This decrease is expected to reduce inflationary pressure in coming months.

The State Bank of Pakistan (SBP) kept the policy rate unchanged at 22% in its meeting held in September 2023. In anticipation of a rate hike, the 3-month Karachi Interbank Offer Rate (KIBOR) had reached 24.04% on September 14, 2023. However, the SBP, in its monetary policy meeting on that date, kept the policy rate unchanged at 22%. Consequently, KIBOR reverted to 22.4%.

Financial Highlights and Business Review

	Quarter ended
	September		September
	2023		2022
	--------------Rupees--------
	------
Profit before taxation	620,120,520		404,593,810
Taxation	241,483,935		138,611,786
Net profit for the period after taxation	378,636,585		265,982,024
Earnings per share - basic and diluted	2.16		1.52

OLP has reported profit before tax (PBT) of Rs. 620 million for the first quarter of FY2023; 53% higher than the PBT of Rs. 405 million for the same period last year. The higher profit was mainly due to higher revenue of Rs. 1,983 million, up by 33% from revenue of Rs. 1,489 million