Olympia Financial Group Inc.
2024 Beat Amid Strong Client Asset Growth
Published: 3/4/2025
Author: FRC Analysts
Sector: Financial Services | Industry: Asset Management
Ticker Symbols:OLY.TO - TSX 🔹
Rating and Key Data
| Metrics | Value |
|---|---|
| Current Price | CAD $107.5 |
| Fair Value | CAD $143.52 |
| Risk | 3 |
| 52 Week Range | CAD $90-114 |
| Shares O/S (M) | 2.41 |
| Market Cap. (M) | CAD $259 |
| Current Yield (%) | 6.7 |
| P/E (forward) | 11.9 |
| P/B | 6.2 |
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Report Highlights
- In 2024, client assets were up 9% to $12.1B, exceeding our forecast by 1%. As a result, revenue rose 3% YoY, beating our forecast by 3%, drive by interest revenue on unallocated client capital.
- In 2024, 53% of revenue came from interest on unallocated client capital held in cash accounts at major Canadian banks/credit unions. Since May 2024, the Bank of Canada has cut rates six times (200 bp), with potential for one or two more cuts due to slowing GDP growth, high unemployment, and cooling inflation. Consequently, we anticipate interest revenue declining in the coming quarters.
- A key highlight of 2024 was a 2% YoY increase in services revenue from core divisions (Investment Account Services and Health Service Plans), driven by higher transaction volumes.
- EPS fell 0.2% YoY due to a 6% rise in G&A expenses, driven by salaries, wages, and bonuses. While the drop was expected, it still beat our estimate by 10% due to higher-than-expected reve
