Navigating Rate Pressures with Core Service Revenue Growth

Published: 11/20/2024

Author: FRC Analysts

Navigating Rate Pressures with Core Service Revenue Growth - Main Image

*See important disclosures at the bottom of this report

Sector: Financial Services | Industry: Asset Management

Ticker Symbols:

OLY.TO - TSX 🔹

Rating and Key Data

Metrics	Value
Current Price	CAD $106.5
Fair Value	CAD $135.19
Risk	3
Week Range	CAD $88-122
Shares O/S (M)	2.41
Market Cap. (M)	CAD $256
Current Yield (%)	6.8
P/E (forward)	12.0
P/B	6.4

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In Q3-2024, client assets were up 1.6% QoQ to $11.7B. However, revenue was down 1% YoY, falling 2% short of our estimate, primarily due to lower trading volumes in the FOREX division, a historically volatile, non-core segment, contributing 5-10% of total revenue.

On a positive note, total services revenue from core divisions (Investment Account Services and Health Service Plans) was up 1% YoY, driven by higher transaction volumes.

EPS was up 1% YoY,

Rating and Key Data

Metrics	Value
Current Price	CAD $106.5
Fair Value	CAD $135.19
Risk	3
Week Range	CAD $88-122
Shares O/S (M)	2.41
Market Cap. (M)	CAD $256
Current Yield (%)	6.8
P/E (forward)	12.0
P/B	6.4