Lahore, August 16, 2018 (PPI-OT): The ratings reflect OLP’s augmented market position in the industry. The Company’s operations are supported by quality risk management framework and strong internal controls. The management, while exploring various options to garner future growth, continues to emphasize on improved spreads, increased geographical outreach and diversification into different businesses by utilizing the capital available to the Company.
OLP’s total asset base increased by 6% since Jun17 and the net interest income has improved with reduction in interest expense. The reported profitability of PKR 1,124mln in 3QFY18 is the highest profit in the company’s history on the back of sale of shares in Oman ORIX Leasing SAOG. The Company maintains a fairly healthy funding structure, main source of funding remains bank borrowing and CoDs. OLP’s capital structure benefited by the issuance of right shares during 1QFY18. The paradigm change is emerging as OLP expands its operational horizon with a new license as Investment Finance Company. Association of OLP with ORIX (Japan) is a consideration.
The ratings are dependent on the Company’s ability to maintain its market position while generating sound profitability. The ratings also depend upon keeping its financial profile intact. Any significant change in its risk profile may adversely impact the ratings.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Category: General Business News