Transmission of Quarterly Report for the Half Year Ended December 31, 2025

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s-.,.

OLP

CATALYST

OF INCLUSION

OLP FINANCIAL SERVICES PAKISTAN LIMITED

HALF YEARLY REPORT 2025-2026

Vision and Mission 02

Core Values 03

Company Profile 04

Parent, Subsidiaries and Associates 05

Company Information 06

Meet the Team 08

Directors' Report 10

Directors' Report (Urdu) 15

Independent Auditors' Review Report 16

Unconsolidated Condensed Interim Statement of Financial Position 18

Unconsolidated Condensed Interim Statement of Profit or Loss 19

Unconsolidated Condensed Interim Statement of Comprehensive Income 20

Unconsolidated Condensed Interim Statement of Changes in Equity 21

Unconsolidated Condensed Interim Statement of Cash Flow 22

Notes to and Forming Part of the Unconsolidated

Condensed Interim financial Statements (Un-audited) 23

Consolidated Condensed Interim Statement of Financial Position 44

Consolidated Condensed Interim Statement of Profit or Loss 45

Consolidated Condensed Interim Statement of Comprehensive Income 46

Consolidated Condensed Interim Statement of Changes in Equity 47

Consolidated Condensed Interim Statement of Cash Flow 48

Notes to and Forming Part of the Consolidated

Condensed Interim financial Statements (Un-audited) 49

Half Yearly Report 2025-2026 01

TABLE OF CONTENT VISION

Excellence in pioneering creative and flexible financial services for a diverse market with particular emphasis on serving the needs of SME sector in Pakistan.

MISSION

A corporate culture and environment that attracts and fosters the best available talent, inspires trust of customers, promotes innovation in products and services, creates value for all stakeholders and is inclusive of support to the less privileged by improving their access to finance.

02 OLP Financial Services Pakistan Limited

CORE VALUES

Respect

Innovation

Customer Focus

Ownership

Integrity

Teamwork

Innovation Ownership Teamwork Respect Integrity Customer Focus

We seek continuous improvement and encourage creativity

We protect the interests of the Company as if it is our own business We work together to create synergies

We promote honesty and fairness in all our actions We respect each others' feelings and opinions

We are because of our customers and our success lies in their satisfaction

Half Yearly Report 2025-2026 03

COMPANY PROFILE

Completing 39 years is a great achievement for us. We have come a long way since our humble beginning. From building a diverse portfolio to having international investments, we have achieved a lot over the years. We take pride in the success we have shared, both with our customers and employees. We take pride in enabling our customers to grow, leaps and bounds, truly changing lives.

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 30 branches situated in 25 cities. Its major shareholder is ORIX Corporation, Japan having 49.6% shareholding. Established in 1964, ORIX Corporation is one of Japan's leading integrated financial services groups with operations in 30 countries and regions worldwide. The group has experience of more than 60 years of operations and has a total base of Yen (¥) 18,126 billion and equity of Yen (¥) 4,673 billion as at December 31, 2025, which equates to US$ 115 billion and US$ 30 billion respectively.

OLP offers value-added financial products and innovative customized services to a wide array of customers throughout Pakistan. The blend of international experience and local expertise acquired over the last 39 years provides OLP a distinctive competitive edge. OLP takes pride in the fact that it has played a major role towards the economic development of the Country by supporting the Small and Medium Enterprises (SME) Sector and in doing so, has helped grow numerous small and medium businesses into larger enterprises and created thousands of jobs both directly and indirectly. Today, OLP is the largest SME focused Non-Banking Finance Company in Pakistan.

04 OLP Financial Services Pakistan Limited

PARENT SUBSIDIARIES & ASSOCIATES

PARENT COMPANY

ORIX Corporation

World Trade Center Building, South Tower, 2-4-1, Hamamatsu-cho Minato-ku, Tokyo 105-6135, Japan Tel:(81)-3-3435-3000

www.orix.co.jp

SUBSIDIARIES

OLP Services Pakistan (Private) Limited

OLP Modaraba

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

Tel: (021) 38341168

Office 601, 6th Floor, Syedna Tahir Saifuddin Memorial Trust Building Civil Lines,

Beaumont Road, Karachi, Pakistan Tel: (021) 38341168

www.olpmodaraba.com

ASSOCIATED COMPANIES

Yanal Finance Company SAMA Finance SAE

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

Tel: (9661) 2997777

www.yanal.com

5th Floor, Cairo Center Building, 2, Abd EI Kader Hamza Street, Garden City, Cairo 11461, Egypt

Tel: (202) 27922757

Fax: (202) 27922760

www.samafinance.com

Half Yearly Report 2025-2026 05

COMPANY INFORMATION

BOARD OF DIRECTORS

Mr. Khalid Aziz Mirza

Chairman

Mr. Yoshiaki Matsuoka

Non-Executive Director

Mr. Kazuhito Inoue

Non-Executive Director

Ms. Yoko Miura

Non-Executive Director

Mr. Ramon Alfrey

Non-Executive Director

Mr. Shaheen Amin

Chief Executive Officer

and Non-Executive Director

06

OLP Financial Services Pakistan Limited

Mr. Anwar Mansoor Khan

Independent

Non-Executive Director

Mr. Rashid Ahmed Jafer

Independent

Non-Executive Director

Audit and Risk Committee

Mr. Rashid Ahmed Jafer - Chairman Mr. Kazuhito Inoue

Ms. Yoko Miura

Mr. Ramon Alfrey

Human Resource, Nomination and Remuneration Committee

Mr. Anwar Mansoor Khan - Chairman Mr. Khalid Aziz Mirza

Mr. Yoshiaki Matsuoka Mr. Shaheen Amin

Credit Committee

Mr. Yoshiaki Matsuoka - Chairman Mr. Ramon Alfrey

Mr. Shaheen Amin

Compensation Committee

Mr. Rashid Ahmed Jafer - Chairman Mr. Khalid Aziz Mirza

Mr. Yoshiaki Matsuoka Chief Financial Officer Mr. Abid Hussain Awan Company Secretary Mr. Nadeem Amir Ali

Head of Internal Audit and

Secretary to Audit and Risk Committee

Mr. Asad Ali

Head of Compliance Mr. Rashid Ahmed Credit Rating by VIS

Long term entity rating AAA Short term entity rating A1+

Credit Rating by PACRA

Long term entity rating AA+ Short term entity rating A1+

Legal Advisors

M/s Mohsin Tayebaly & Co.

External Auditors

KPMG Taseer Hadi & Co Chartered Accountants

Sheikh Sultan Trust Building No.2, Beaumont Road, Civil Lines, Karachi

Registrar and Share Transfer Office

FAMCO Share Registration Services (Private) Limited 8-F, Near Hotel Faran, Nursery, Block-6,

P. E. C. H. S., Shahra-e-Faisal, Karachi. Tel: (92-21) 34380101-5, 34384621-3

Shariah Advisor

Al Hamd Shariah Advisory Services (Private) 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. Standard Chartered Bank (Pakistan) Limited

13. Easypaisa Bank Limited

14. United Bank Limited

15. Pak China Investment Company Limited

16. Pakistan Kuwait Investment Company (Private) Limited.

Registered and Head Office

OLP Building, Plot No.16, Sector No.24, Korangi Industrial Area, Karachi-74900, Pakistan.

Half Yearly Report 2025-2026

07

Mr. Imtiaz Ahmed Chaudhry

Group General Manager

Mr. Waqas Ahmed Khwaja

Head of Marketing

Mr. Shafiq Ur Rehman

Head - Corporate Division

Mr. Shaheen Amin

Chief Executive Officer

Mian Faysal Riaz

Chief Operating Officer

Mr. Abid Hussain Awan

Chief Financial Officer

MEET THE TEAM

Mr. Fahad Shahzad Memon

Head - Consumer Auto Division

Mr. Adnan Ishaq Head - Commercial Vehicle Division

Ms. Aseya Qasim Head - Term Finance & Agri Business

08

OLP Financial Services Pakistan Limited

Mr. Hamood Ahmed Head - Credit Risk Management

Mr. Umair Alam Zia

Head - Business Control

Mr. Nadeem Amir Ali

Company Secretary &

Head - Enterprise Risk Management

Mr. Shahzad Rana Younus

Head - Information Systems

Mr. Muhammad Aslam

Mr. Asad Ali

Head - Internal Audit

Mr. Mamoon Ishaq

Head - Administration

Mr. Rashid Ahmed

Head - Compliance

Head - Special Asset Management

Mr. Muhammad Ikram

Head - IT Transformation

Half Yearly Report 2025-2026

09

DIRECTORS' REPORT

The Board of Directors of OLP Financial Services Pakistan Limited (OLP / the Company) is pleased to present the unaudited condensed interim financial information for the half year ended December 31, 2025.

Economic Review

Pakistan's economy completed the first half of FY2026 with continued macroeconomic stability, reflected in contained inflation, a rebound in large-scale manufacturing (LSM), strengthened foreign exchange reserves and a stable exchange rate. Improved fiscal discipline supported the overall macro backdrop, while remittances remained robust and continued to support the external account.

Large-scale manufacturing remained on a recovery trajectory, with LSM growth of 6% during July-November 2025. The automobile sector exhibited encouraging performance during July - December 2025, supported by a substantial increase in sales of cars by 42%, trucks & buses by 96% and jeeps & pick-ups by 58%, compared with the same period last year.

Inflation remained moderate. National CPI inflation (YoY) was 5.6% in December 2025, compared to 6.1% in the previous month and 4.1% in December 2024. Average inflation during July-December 2025 stood at 5.2% (July-December 2024:

7.2%).

In response to evolving macroeconomic conditions, the State Bank of Pakistan reduced the policy rate by 50 bps to 10.5% on December 16, 2025.

On the external front, Pakistan received an IMF disbursement of USD 1.2 billion in December 2025 under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF).

According to the World Bank's Global Economic Prospects (January 2026), Pakistan's real GDP growth is expected to remain at 3% in FY2026 and improve to 3.4% in FY2027. The IMF's January 2026 World Economic Outlook update also indicates a moderate growth outlook, with Pakistan's projected real GDP growth at 3.2% for calendar year 2026.

The combination of fiscal consolidation, easing inflation and exchange-rate stability is expected to reinforce business confidence and support a gradual recovery trajectory in the periods ahead.

Business Review and Financial Highlights

During the period under review, OLP continued to focus on maintaining operational stability while strengthening cost discipline and enhancing operational efficiencies across the business. Encouraged by gradual improvement in economic fundamentals, the Company increased disbursements by 19% to Rs. 10.7 billion from Rs. 9.0 billion in the corresponding period last year. Despite this growth strategy, the Company continues to adopt a prudent and measured approach to new business, with strong emphasis on credit discipline and preservation of portfolio quality.

OLP's financial results are summarized below:

10 OLP Financial Services Pakistan Limited

The Company reported a Profit Before Taxation (PBT) of Rs. 1,057 million for the half year ended December 31, 2025, which was 6% lower than the PBT of Rs. 1,125 million earned in the corresponding period last year. Profit After Taxation (PAT) at Rs. 647 million was also 7% lower than PAT 0f Rs. 696 million reported in the same period last year. Earnings per share (basic and diluted) stood at Rs. 3.69 (December 2024: Rs. 3.97). The reduction in profit is primarily attributable to a reduction in interest rates, as the Company's earning asset portfolio, particularly the portfolio funded through equity, earned lower returns. The average Karachi Interbank Offered Rate (KIBOR) during the six months stood at 11.06%, compared to 15.87% for the same period last year.

Total income from operations for the period was Rs. 2,767 million, down by 13% from Rs. 3,185 million in the corresponding period last year. As mentioned earlier, lower income reflects a decline in the Country's interest rates when compared with the same period last year. A significant portion of OLP's portfolio is benchmarked to KIBOR and re-priced periodically.

Other income was 27% lower at Rs. 365 million (Dec 2024: Rs. 503 million). This was mainly due to a decline in market interest rates and sharp decline of OLP's investment in Government securities as at December 2025 compared to same period last year. The Company's share of profit from an associate amounting to Rs. 64 million, compared to Rs. 69 million in the corresponding period last year; a decline of 7%.

In line with the reduction in benchmark interest rates, finance costs for the period decreased by 27% to Rs. 1,309 million (Dec 2024: Rs. 1,783), Administrative and general expenses amounted to Rs. 842 million (Dec 2024: Rs. 817) , reflecting a marginal increase of 3% over the same period last year. The increase was mainly due to inflationary adjustments in staff and operating costs.

During the period, the Company recorded a reversal of expected credit losses amounting to Rs. 49 million, compared to a reversal of Rs. 98 million in the corresponding period last year. The reversal reflects updates to model assumptions in accordance with the applicable International Financial Reporting Standards. Other provision decreased by 82% to Rs. 20 million, compared to Rs. 109 million in the same period last year. The decrease is attributed to impairment charged on investment in OPP (Private) Limited amounting to Rs. 87 million in prior period.

Future Outlook

Looking ahead, Pakistan's economic activity is expected to remain broadly stable, supported by easing inflation and a gradual recovery in industrial activity. In this environment, OLP will look to steadily increase the Company's asset portfolio with a cautiously optimistic approach, with emphasis on disciplined risk selection in core segments, preserving portfolio quality, and maintaining pricing and balance-sheet discipline, while continuing to enhance operating efficiency and customer service delivery.

Performance of the Group

In compliance with section 226 of the Companies Act 2017, attached with this report is the consolidated condensed interim financial information of OLP and its subsidiaries (the Group) namely - OLP Services Pakistan (Private) Limited and OLP Modaraba - for the half year ended December 31, 2025.

Half Yearly Report 2025-2026 11

Financial Highlights of the Group's Performance are as follows:

On behalf of the Board:

Shaheen Amin Ramon Alfrey

Chief Executive Officer Director

February 18, 2026

12 OLP Financial Services Pakistan Limited

Half Yearly Report 2025-2026 13

14 OLP Financial Services Pakistan Limited

Half Yearly Report 2025-2026 15

KPMG Taseer Hadi & Co.

Chartered Accountants

Sheikh Sultan Trust Building No. 2, Beaumont Road

Karachi 75530 Pakistan

+92 (21) 37131900, Fax +92 (21) 35685095

INDEPENDENT AUDITOR'S REVIEW REPORT

To the members of OLP Financial Services Pakistan Limited Report on Review of Interim Financial Statements Introduction

We have reviewed the accompanying unconsolidated condensed interim statement of financial position of OLP Financial Services Pakistan Limited ('the Company") as at 31 December 2025 and the related unconsolidated condensed interim statement of profit or loss, unconsolidated condensed intwim statement of comprehensive income, unconsolidated condensed interim statement of changes in equity and unconsolidated condensed interim statement of cash flows, and notes to the unconsolidated condensed interim financial statements for the six-month period then ended (here-in-after referred to as the 'Interim financial satements"). Management is responsible for the preparation and presentation of these interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these interim financial statements based on our review.

Scope of Review

We conducted our review in aocordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordanoe with International Standards on Auditing and consequendy does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.

Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

Other Matter

Pursuant to the requirement of Section 237 (1) (b) of the Companies Act, 2017, only cumulative figures for the half year, presented in the second quarter accounts are subject to a limited scope review by the statutory auditors of the Company. Accordingly, the figures of the unconsolidated condensed interim statement of profit or loss ana unconsolidated condensed interim statement of comprehensive income for the three months period ended 31 December 2025 and 31 December 2024 have not been reviewed by us.

KPMG Taseer Hadi & Co.

The =ngagemen: partner on the review resulting in this independent auditors' review report is Mr. Amyn Malik.

Karachi

Date: 20 February 2026

UDIN: RR202510096bkGvZejBm

KPMG Taseer Hadi & Co. Chartered Accountants

Half Yearly Report 2025-2026 17

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

(Un-audited) December 31,

(Audited) June 30,

As at December 31, 2025

Abid Hussain Awan Chief Financial Officer

The annexed notes 1 to 36 form an integral part of these unconsolidated condensed interim financial statements.

Shaheen Amin Ramon Alfrey

Chief Executive Officer Director

18 OLP Financial Services Pakistan Limited

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)

For The Six Months Period Ended December 31, 2025

Six months period ended Three months period ended

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2024

INCOME

Note

---------------------- Rupees ----------------------

---------------------- Rupees ----------------------

Income from operations

Mark-up on finance leases Mark-up on loans and finances

Income from other activities

Other income - net 25

Share of profit from associate - net of tax 26

EXPENSES

Finance cost 27

Administrative and general expenses Direct cost

Profit before provision and taxation

Reversal of expected credit loss / provision against

leases, loans and finances - net 28

Other provisions -net 29

Profit before tax and levy

Levy - final taxes Profit before tax Taxation - Current

• Prior

• Deferred

Profit for the period

Earnings per share - basic and diluted 34

1,030,753,658

2,154,219,685 3,184,973,343

572,273,752 3,757,247,095

2,619,997,835 1,137,249,260

11,804,561 1,125,444,699

1,361,506 1,124,083,193

428,289,417

695,793,776

3.97

488,951,418

1,075,737,672 1,564,689,090

300,531,698 1,865,220,788

1,297,568,636 567,652,152

(25,361,038) 593,013,190

1,361,506 591,651,684

220,357,812 371,293,872

2.12

The annexed notes 1 to 36 form an integral part of these unconsolidated condensed interim financial statements.

Abid Hussain Awan Chief Financial Officer

Shaheen Amin Ramon Alfrey

Chief Executive Officer

Director

Half Yearly Report 2025-2026 19

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)

For The Six Months Period Ended December 31, 2025

Six months period ended Three months period ended

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Profit for the period

Other comprehensive (loss) / income

Items that will be subsequently reclassified to the unconsolidated statement of profit or loss

Exchange (loss) / gain arising on translation of foreign associate

Deferred tax on exchange (loss) / gain arising on translation of foreign associate

Items that will not be subsequently reclassified

to the unconsolidated statement of profit or loss

Fair value changes on remeasurement of financial assets classified at FVTOCI Deferred tax on fair value changes on remeasurement of financial assets

Share of other comprehensive income from an associate Deferred tax on share of other comprehensive

income from an associate

Total comprehensive income for the period

---------------------- Rupees ----------------------

695,793,776

(730,225)

3,173,148

155,232

698,391,931

---------------------- Rupees ----------------------

371,293,872

1,634,541

1,775,736

2,609

374,706,758

The annexed notes 1 to 36 form an integral part of these unconsolidated condensed interim financial statements.

Abid Hussain Awan Chief Financial Officer

Shaheen Amin Ramon Alfrey

Chief Executive Officer Director

20 OLP Financial Services Pakistan Limited

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

For The Six Months Period Ended December 31, 2025

------------------------------------------------------------------ (Rupees) ------------------------------------------------------------------

The annexed notes 1 to 36 form an integral part of these unconsolidated condensed interim financial statements.

Shaheen Amin Ramon Alfrey Abid Hussain Awan

Chief Executive Officer

Director

Chief Financial Officer

Half Yearly Report 2025-2026 21

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)

For The Six Months Period Ended December 31, 2025

Six months period ended

December 31,

2025

December 31,

2024

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before tax and levy

Adjustments for:

Depreciation and amortisation

Note

---------------------- Rupees ----------------------

1,125,444,699

Amortisation of transaction cost 27

Reversal of provision against lease, loans and finances - net 28

Other provision - net 29

Gain on sale on investments - net 25

Charge for defined benefit plan - gratuity fund

Share of profit from associate - net of tax 26

Unrealised gain on remeasurement of financial assets at fair value through profit or loss 25

Finance cost including bank charges

Dividend income 25

Return on investments and deposits 25

Gain on disposal of property and equipment 25

Exchange loss - net 25

Operating cash flows before working capital changes

(Increase) / decrease in operating assets

Investment in finance lease - net Long-term loans and finances - net Short-term finances

Long-term deposits Advances and prepayments Other receivables

Increase / (decrease) in operating liabilities

Other long term liabilities - net Accrued and other liabilities

Cash generated from operating activities

Payment against staff retirement benefits Finance cost paid

Final and income tax paid

Net cash used in operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditure incurred - own use and intangible assets Proceeds from disposal of property and equipment - own use Investments - net

Dividend received Interest received

Net cash generated from / (used in) investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from long term finance Repayment of long term finance Short-term borrowings - net Certificates of deposit - receipts

Payment of lease liability against right-of-use assets Dividend paid

Net cash generated from financing activities

Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of the period

Cash and cash equivalents at end of the period 33

The annexed notes 1 to 36 form an integral part of these unconsolidated condensed interim financial statements.

Shaheen Amin Ramon Alfrey

56,605,897

3,101,015

(97,522,200)

109,326,761

(42,452,900)

11,403,831

(69,289,791)

(11,709,119)

1,779,891,261

(9,076,706)

(242,392,897)

(9,780,844)

55,055

1,478,159,363

2,603,604,062

928,754,951

(2,439,345,847)

11,959,874

(126,114)

912,013

(15,875,737)

(1,513,720,860)

(492,405,680)

(121,591,897)

(613,997,577)

475,885,625

(10,956,402)

(1,273,113,228)

(334,246,663)

(1,618,316,293)

(1,142,430,668)

(32,790,585)

16,077,269

(2,430,823,814)

9,076,706

212,334,864

(2,226,125,560)

4,250,000,000

(1,678,833,702)

4,450,000,000

(1,385,933,682)

(25,616,062)

(525,129,084)

5,084,487,470

1,715,931,242

(1,241,797,731)

474,133,511

Abid Hussain Awan Chief Financial Officer

Chief Executive Officer Director

22 OLP Financial Services Pakistan Limited

NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

For The Six Months Period Ended December 31, 2025

1. LEGAL STATUS AND OPERATIONS

   1. OLP Financial Services Pakistan Limited (formerly ORIX Leasing Pakistan Limited) ("the Company") was incorporated in Pakistan as a private limited company on July 01, 1986 under the repealed Companies Ordinance, 1984 (now the Companies Act, 2017) and was converted into a public limited company on December 23, 1987. The Company is listed on the Pakistan Stock Exchange Limited and is licensed to carry out Investment Finance Services as a Non-Banking Finance Company (NBFC) under the Non-Banking Finance Companies (Establishment and Regulations) Rules, 2003 issued by the Securities and Exchange Commission of Pakistan (SECP).

      The registered office of the Company is situated at OLP Building, Plot No. 16, Sector No. 24, Korangi Industrial Area, Karachi. The Company is operating through 30 branches (June 30, 2025: 31 branches)

      The Company has been assigned the following credit ratings by independent credit rating agencies:

      VIS Credit Rating Company Limited (VIS)

      The Pakistan Credit Rating Agency Limited (PACRA)

      Long term AAA AA+

      Short term A1+ A1+

      Date of rating

      September 11, 2025

      February 28, 2025

2. BASIS OF PREPARATION

   1. Statement of compliance

      These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise:

      • International Accounting Standard (IAS) 34 "Interim Financial Reporting" issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017;

      • Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan as notified under the Companies Act, 2017;

      • Provisions of and directives issued under the Companies Act, 2017; and

      • Provisions of and directives issued under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules) and the Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the NBFC Regulations).

        Where provisions of and directives issued under the Companies Act, 2017, the IFAS, the NBFC Rules or the NBFC Regulations differ from IAS 34, the provisions of and directives issued under the Companies Act, 2017, the IFAS, the NBFC Rules or the NBFC Regulations have been followed.

   2. These unconsolidated condensed interim financial statements do not include all the information required for a full set of financial statements and should be read in conjunction with the annual audited published unconsolidated financial statements of the Company for the year ended June 30, 2025.

      
      
      

      Half Yearly Report 2025-2026 23

      
      
      

      NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

      For The Six Months Period Ended December 31, 2025

   3. The comparative unconsolidated condensed interim statement of financial position presented in these unconsolidated condensed interim financial statements has been extracted from the annual published unconsolidated audited financial statements of the Company for the year ended June 30, 2025, whereas the comparative unconsolidated condensed interim statement of profit or loss, unconsolidated condensed interim statement of comprehensive income, unconsolidated condensed interim statement of changes in equity and unconsolidated condensed interim statement of cash flows are stated from the unaudited unconsolidated condensed interim financial statements for the half year ended December 31, 2024.

   4. These unconsolidated condensed interim financial statements have been presented in Pakistani Rupees, which is the functional currency of the Company.

3. MATERIAL ACCOUNTING POLICY INFORMATION, ESTIMATES AND JUDGEMENTS

   1. The material accounting policies adopted in the preparation of these unconsolidated condensed interim financial statements are the same as those applied in the preparation of the annual audited published unconsolidated financial statements of the Company for the year ended June 30, 2025.

   2. The preparation of these unconsolidated condensed interim financial statements in conformity with accounting and reporting standards requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities and income and expenses. Estimates, assumptions and judgments are continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the period of revision.

   3. The significant judgments, estimates and assumptions made by the management in applying the Company's accounting polices and the factors used in making those estimates and associated assumptions were the same as those that were applied to the annual audited published unconsolidated financial statements for the year ended June 30, 2025.

   4. Standards, interpretations and amendments to published accounting and reporting standards that are effective in the current period:

      There are certain amendments to the standards and new interpretations that are mandatory for accounting periods beginning on or after July 1, 2025 but are considered not to be relevant or do not have any significant effect on the Company's operations and are, therefore, not detailed in these unconsolidated condensed interim financial statements.

   5. Standards, interpretations and amendments to approved accounting standards that are not yet effective

      There are certain amendments to the published accounting and reporting standards that are mandatory for the Company's accounting period beginning on January 1, 2026. However, these will not have any significant impact on the Company's operations and, therefore, have not been detailed in these unconsolidated condensed interim financial statements.

4. RISK MANAGEMENT POLICIES

   The financial risk management objectives and policies are consistent with those disclosed in the annual audited published unconsolidated financial statements of the Company for the year ended June 30, 2025.

   
   
   

   24 OLP Financial Services Pakistan Limited

   
   
   

   NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

   (Audited) June 30,

   2025

For The Six Months Period Ended December 31, 2025

1. PROPERTY AND EQUIPMENT

   Note

   ---------------------- Rupees ---------------------

   Property and equipment - own use 5.1

   Right-of-use asset 5.2

   1,230,390,799

   1,190,123,895

   89,535,416

   1,279,659,311

109,181,223

1,339,572,022

1. 1. During the period ended December 31, 2025, the Company has accounted for certain lease arrangements amounting to Rs. 4.9 million pertaining to its branches. The lease term ranges from three to five years with agreed payments subject to annual increment at an agreed rate.

2. INTANGIBLE ASSETS

   Note

   ---------------------- Rupees ---------------------

   Development cost / CWIP 6.1

   Computer software and license 6.2

   12,297,364

   32,832,970

   359,167

   33,192,137

500,530

12,797,894

1. NET INVESTMENT IN FINANCE LEASE

   Note

   ---------------------- Rupees ---------------------

   Instalment contract receivables Residual value

   Less: adjustable security deposits 7.1

   Gross investment in finance lease 7.2

   Less: unearned finance income

   Present value of investment in finance lease

   9,666,715,980

   9,349,623,067

   4,972,484,963

   (4,972,484,462) 9,349,623,568

   (1,666,232,263) 7,683,391,305

   (4,003,391,171) 3,680,000,134

   (7,614,875)

   3,672,385,259

5,075,446,156

(5,075,436,913) 9,666,725,223

(1,709,036,758) 7,957,688,465

Less: current maturity 13

Less: expected credit loss / provision against leases

- non current portion 28.1

(4,221,795,165) 3,735,893,300

(10,187,795)

3,725,705,505

1. 1. Security deposits are received from lessees under finance lease contracts which are adjustable at the expiry of the lease period.

   2. The Company's implicit rate of return on performing leases ranges from 14.33% to 34.00% (June 30, 2025: 12.00% to 34.00%) per annum. These are secured against leased assets, security deposits averaging 26.68% (June 30, 2025: 25.88%) of the cost of leased assets and personal guarantees.

2. LONG-TERM LOANS AND FINANCES

   Note

   (Audited) June 30,

   2025

---------------------- Rupees ---------------------

1. 1. The mark-up on these finances ranges from 14.64% to 35.00% (June 30, 2025: 15.24% to 35.00%) per annum. These finances are repayable within a period of upto 7 years (June 30, 2025: upto 5 years) and are secured against charge over vehicles, business assets, property mortgage and personal guarantees.

      
      
      

      26 OLP Financial Services Pakistan Limited

      
      
      

      NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

      For The Six Months Period Ended December 31, 2025

2. INVESTMENT IN SUBSIDIARIES

   Related Parties

   Note

   (Audited) June 30,

   2025

---------------------- Rupees ---------------------

OLP Services Pakistan (Private) Limited - unlisted 9.1

OLP Modaraba - listed 9.2

182,430,262

139,944,032

322,374,294

1. 1. The Company holds 100% shareholding (4,450,000 shares (June 30, 2025: 4,450,000 shares)) in OLP Services Pakistan (Private) Limited (OSPPL), a management company managing OLP Modaraba. OSPPL is incorporated in Karachi, Pakistan.

   2. The Company holds 10% certificates (4,538,353 certificates (June 30, 2025: 4,538,353 certificates) in OLP Modaraba, which is being managed by OSPPL as the Modaraba management company. Since the Company holds 100% shareholding in the management company as mentioned in note 9.1 above, therefore has substantive decision-making authority over OLP Modaraba's key operating and financial policies. OSPPL is entitled to a management fee (including variable returns). There are no substantive removable rights held by any other single party and the remaining holding is also dispersed and passive in nature due to free float to general public. Accordingly, the investment in OLP Modaraba has been accounted for as an investment in subsidiary in view of the control which the Company exercises through the fully owned management company and an aggregate holding of 20% in the certificates of OLP Modaraba by the Company and OSPPL.

   3. Summarised un-audited financial statements of subsidiaries and associate are as follows:

      As at December 31, 2025			For the period ended December 31, 2025
      Total assets	Total liabilities	Net assets	Revenues	Profit	OCI

      OLP Modaraba

      OLP Services Pakistan (Private) Limited Yanal Finance Company

      -------------------------------------------------------------- Rupees -------------------------------------------------------------

      8,535,208,211	7,246,308,676	1,288,899,535	765,147,900	75,455,876	-
      141,456,166	55,017,322	86,438,844	13,699,326	1,267,460	-
      128,567,037,038	54,571,485,369	73,995,551,669	8,728,296,440	3,222,424,850	12,511,450

2. INVESTMENT IN ASSOCIATES

   Related Parties

   Note

   (Audited) June 30,

   2025

---------------------- Rupees ---------------------

Yanal Finance Company 10.1

OPP (Private) Limited* 10.2

SAMA Finance SAE* 10.3

Less: impairment on investment

* Fully provided

Half Yearly Report 2025-2026 27

NOTES TO AND FORMING PART OF THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

For The Six Months Period Ended December 31, 2025

1. 1. The Company holds 2.5% (June 30, 2025: 2.5%) ownership interest in Yanal Finance Company (YFC), which was incorporated in Riyadh, Kingdom of Saudi Arabia. The Company's contractual right to nominate 1 out of 9 directors on YFC board member enables it to participate in and influence its key financial and operational decisions. Moreover, the CEO of the Company is also the MD of YFC. Accordingly, YFC is accounted under equity method of accounting due to the significant influence exercised by the Company.

   2. The Company holds 45% (June 30, 2025: 45%) ownership interest in OPP (Private) Limited. During 2014, the Board of Directors of the Company approved divestment of the Company's entire investment in OPP. The sales negotiations for disposal of investment in OPP were held with a minority shareholder of OPP and a Share Purchase Agreement (SPA) was signed by all the parties in July 2014. However, the minority shareholder has failed to comply with the terms of the SPA and initiated legal proceedings to restrict the Company from managing the affairs of OPP. The Company has also filed a reference in the Lahore High Court to allow the Company to buy out the minority stakeholder in OPP or to wind up OPP which is pending to date. As the matter is under litigation and due to limited availibility of financial information, the investment has been fully impaired.

   3. The Company holds a 16.87% (June 30, 2025: 23%) ownership interest in SAMA. In February 2019, the Board of Directors approved the divestment of this investment. The Company engaged in sale negotiation for disposal, signed a Sale Purchase Agreement (SPA) on October 17, 2019. Although the long stop date of the agreement expired in May 2022 without an extension, the Board reaffirmed their intention to sell in April 2023. An impairment was recorded against the investment due to hampered profits, using the present value valuation method.

2. LONG-TERM INVESTMENTS

   At fair value through other comprehensive income

   Note

   (Audited) June 30,

   2025

---------------------- Rupees ---------------------

Ordinary shares - unlisted 11.1

Ordinary shares - listed 11.2

10,931,116

11,164,079

22,095,195

1. 1. This represents 705,882 (June 30, 2025: 705,882) shares of Al-Baraka Bank (Pakistan) Limited, (Al-Baraka) having a face value of Rs. 10 per share.

   2. This represents 507,634 (June 30, 2025: 245,294 having face value of Rs .10 per share) shares of LSE Capital Limited having a face value of Rs. 5 per share and 1,685,620 (June 30, 2025: 842,810 having face value of Rs

      .10 per share) shares of LSE Ventures limited (LSEVL) having a face value of Rs. 5 per share.

2. SHORT-TERM FINANCES

Considered good - secured Considered doubtful - secured

Note

---------------------- Rupees ---------------------

4,246,565

3,673,384

Less: ECL / provision against finances 28.2

(2,814,842)

5,105,107

28 OLP Financial Services Pakistan Limited