Orix Leasing Pakistan Limited (OLP) announced record profit for the half year to December 31, 2004 and the highest volume of new leases written in six months. The company earned profit before tax of Rs 163 million which is 10.6 percent higher than the corresponding half year in 2003 and in the period wrote leases amounting to Rs 4.7 billion (2003: Rs 2.9 billion). The second quarter's result was also a record with profit of Rs 85 million and volume of new leases of Rs 2.6 billion.

The company attributed this growth to strong demand for auto leases and new business from the company's expanding network of 25 offices, which have tapped into SMEs in smaller cities and the rural economy.

Orix's state of the art point of sale network is servicing a rapidly increasing number of credit, debit and loyalty cards. Its operating lease division has also shown strong growth.

ORIX Pakistan's associated company, Saudi ORIX Leasing Company has announced a Rights Issue of 233 percent taking its paid up capital from SR 60 million (Rs 960 million) to SR 200 million (Rs 3.2 billion).

OLP's board of directors approved the take up of its 10 percent share of the Rights. The Company will convene a meeting of shareholders to seek approval for this additional investment. OLP is also investing in a new leasing company in Kazakhstan.

This will be the fifth overseas investment in leasing companies by OLP which is the Regional Head Office of ORIX Corporation, Japan for Middle East, North Africa and Central Asia.-PR

Copyright Business Recorder, 2005