⚡ Flash Summary

ICIBL’s corporate briefing session for 2025 reveals a company in a state of recovery and cautious optimism. The company has successfully increased its financing portfolio and improved its gross revenue compared to the previous year. However, they face challenges due to reduced policy rates impacting KIBOR and difficulties in fund procurement. The focus remains on cautious financing, recovery of non-performing loans, and improvement of risk assets while awaiting regulatory approvals for capital reduction.

📌 Key Takeaways

• 1. 🏦 Fresh financing increased to Rs. 746.90 million in 2025 compared to Rs. 258.27 million in June 2024.
• 2. 💰 Investment in Government Treasury Bills decreased to Rs. 80.71 million from Rs. 190.42 million in June 2024.
• 3. 📈 Total financing portfolio grew to Rs. 1,151.78 million from Rs. 753.56 million in the previous year.
• 4. 📊 Equity increased by Rs. 60.69 million, reaching Rs. 761.19 million by year-end.
• 5. 💹 Gross revenue rose to Rs. 181.53 million from Rs. 155.57 million in 2024, an increase of Rs. 25.96 million.
• 6. 📉 Operating expenses remained stable at Rs. 36.49 million compared to Rs. 37.29 million in 2024.
• 7. ✅ No financial charges reported due to the payoff of markup-based facilities.
• 8. 🔄 Provisioning reversal was Rs. 9.94 million, down from Rs. 30.20 million in the previous year.
• 9. ⚠️ Write-offs amounted to Rs. 4.24 million, compared to no write-offs in the prior year.
• 10. 💸 After-tax profit increased slightly to Rs. 126.74 million from Rs. 124.62 million.
• 11. 🧾 EPS stood at 0.445.
• 12. 📉 State Bank of Pakistan’s policy rate cut to 11% from 22% impacting KIBOR (down from 20.14% to 11.34%).
• 13. 🔍 Company awaits SECP approval for capital reduction as approved by shareholders in September 2024.
• 14. 💼 Focus on generating funds and enhancing business activities while improving risk assets.

🎯 Investment Thesis

Based on the current information, a HOLD recommendation is appropriate for ICIBL. While the company shows signs of recovery and improved financial metrics, challenges related to funding, regulatory approvals, and fluctuating interest rates require careful monitoring. A BUY recommendation would require stronger EPS growth, clearer prospects for regulatory approval, and more stability in the economic environment. The price target is inline with its book value, given the sector.