Olympia Financial Group Inc.
Services Revenue Boosted by Surge in Client Assets
Published: 5/13/2025
Author: FRC Analysts
Sector: Financial Services | Industry: Asset Management
Ticker Symbols:OLY.TO - TSX 🔹
Rating and Key Data
| Metrics | Value |
|---|---|
| Current Price | CAD $105 |
| Fair Value | CAD $147.91 |
| Risk | 3 |
| 52 Week Range | CAD $90-113 |
| Shares O/S (M) | 2.41 |
| Market Cap. (M) | CAD $255 |
| Current Yield (%) | 6.8 |
| P/E (forward) | 11.4 |
| P/B | 5.9 |
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Report Highlights
- In Q1-2025, client assets were up 8% YTD to $12.97B, exceeding our forecast by 6%.
- Q1 revenue was down 0.3% YoY amid lower revenue from interest on unallocated client capital, but exceeded our forecast by 1.1%, as we had anticipated a steeper decline in interest revenue. EPS declined 5.9% YoY, but still beat our forecast by 2.4% on stronger-than-expected revenue.
- Over 50% of revenue came from interest on unallocated client capital held in cash accounts at major Canadian banks/credit unions. Since June 2024, the BoC has cut rates seven times (225 bp), with the potential for one or two more cuts this year, due to slowing GDP growth, high unemployment, and cooling inflation. Consequently, we anticipate interest revenue declining in the coming quarters.
- A key highlight of Q1 was a 4% YoY increase in services revenue from core divisions (Investment Account Services and Health Service Plans), driven by higher transaction volumes. Services revenue will likely continue benefiting from organic demand growth for alternative investments.
- Dividends held steady at $1.80/quarter, aligning with our estimate
- While lower rates have historically boosted financial stocks, Trump’s tariff threats have negatively im
