UBL Financial Services (Pvt.) Limited (formerly Al Ameen Financial Services (Pvt.) Limited) (“UFSL” or the “Company”) was incorporated on 27th February 2014 to provide financial services, including distribution of financial products, collective investment schemes (CIS), and VPS. In June 2025, the Company was rebranded as UFSL to expand its offerings to capital market brokerage services. On 25th September 2025, UFSL secured its TREC certificate (No. 556), becoming Pakistan’s first brokerage house fully owned by a Fund Manager, marking a significant milestone in the country’s brokerage and fund management landscape. The establishment of the brokerage subsidiary is in line with SECP Circular No. 14 of 2025, which allows Asset Management Companies to set up wholly owned brokerage subsidiaries subject to defined structural and governance conditions. The circular requires clear functional segregation between asset management and brokerage activities, implementation of information barriers, independent oversight mechanisms, and Board-approved policies to ensure fair execution of trades. These regulatory safeguards are designed to mitigate potential conflicts of interest and enhance transparency within the integrated structure.

UFSL aims to serve domestic institutions, high-net-worth clients, and foreign investors, offering services including trading in equities, commodities, and fixed-income securities, advisory services, and in-house research publications. UFSL has established a website to facilitate client onboarding and information access, while its mobile application, “UBL Invest,” is under development to enable full digital trading in the future. Currently, trading operations are conducted through its head office in Karachi, which serves as the central hub for client services, operations, and strategic initiatives, supporting both institutional and retail client segments.

UFSL is a wholly owned subsidiary of UBL Fund Managers Limited and operates under the umbrella of United Bank Limited (UBL). This ownership structure ensures that UFSL benefits from substantial financial support, strategic oversight, and operational guidance, leveraging the parent group’s extensive resources, well-established governance framework, and deep expertise in financial markets. Such integration enhances UFSL’s operational resilience, risk management capabilities, and capacity to execute its brokerage strategy effectively.

UFSL is owned by UBL Fund Managers Limited, a leading asset management firm, which in turn is part of the United Bank Limited (UBL) group. As the ultimate parent, UBL serves as the primary source of financial strength and stability for UFSL, providing capital support, strategic guidance, and operational oversight. This backing reinforces the Company’s ability to absorb losses, maintain liquidity, and pursue growth initiatives, enhancing confidence in its financial resilience and long-term sustainability.

The management team of UFSL possesses significant experience and industry knowledge, enabling the Company to implement its brokerage strategy effectively. By leveraging the established franchise, market presence, and client relationships of the United Bank Limited group, the team is well-positioned to capture market opportunities, diversify revenue streams, and support sustainable business growth, while maintaining effective operational and risk management practices.

UFSL benefits from a strong financial foundation, anchored by its parent, UBL Fund Managers Limited, and the wider United Bank Limited Group. The Company has access to a healthy equity base, and a formal Letter of Comfort from the parent provides for additional capital support if required. This combination of parent backing and operational earnings capacity strengthens UFSL’s financial resilience and underpins its ability to maintain stability and support growth over the long term.

The Board of UFSL comprises four members: Mr. Ahmad Khashe Lodhi (Executive Director & CEO), Mr. Mohammad Gohar (Nominee Director), Ms. Fatima Shahzad (Nominee Director), and Mr. Kashif Aziz Khwaja (Independent Director). The Board combines sponsor representation with independent oversight, bringing together a mix of experience in financial services, corporate governance, and capital markets. This composition supports strategic decision-making and provides guidance for the Company’s transition toward a standalone brokerage platform while maintaining appropriate governance and operational oversight.

The Board of UFSL comprises experienced professionals with diverse expertise. Mr. Ahmad Khashe Lodhi, Executive Director & CEO, brings extensive investment management and leadership experience from UBL Fund Managers Limited, HBL, PICIC, and PKIC. Mr. Mohammad Gohar contributes over 20 years of operational expertise at UBL Fund Managers and BIPL Securities. Ms. Fatima Shahzad, Senior Credit Officer at UBL, adds strong credit evaluation and risk assessment skills, while Mr. Kashif Aziz Khwaja, CEO of Servis Retail, offers extensive corporate leadership experience across Service Industries, Speed (Pvt.) Ltd., and British American Tobacco. Collectively, the Board’s composition supports strategic guidance, operational oversight, and effective governance.

The Board of UFSL comprises experienced and professionally accomplished individuals who bring valuable industry and corporate expertise. The Board provides strategic guidance to the Company while ensuring governance standards are maintained. To support effective oversight, the Board has established three key committees: Audit, Risk, and HR & Remuneration. The Audit Committee oversees financial reporting, regulatory compliance, and internal controls, while the Risk Committee monitors market, credit, and operational risks, and the HR & Remuneration Committee manages policies related to executive appointments, compensation, and performance management.

UFSL’s financial statements are subject to independent external audits by Riaz Ahmad Saqib Gohar & Co., a ‘B’ category audit firm listed on the SBP panel, ensuring compliance with regulatory requirements.

UFSL has established an organizational structure to support its operational and strategic objectives. Key functions under executive management include Compliance, Finance, Sales, and Settlement. In addition, UFSL leverages shared support services from the UBL Fund Managers Limited, including IT infrastructure, Internal Audit, Admin, HR, Marketing and Information Security enhancing efficiency and governance. A key priority remains the development of a dedicated, independent research function, which will complement existing services and strengthen the Company’s capacity for informed decision-making and sustainable growth.

UFSL is led by an experienced management team with extensive expertise in finance, operations, and compliance. Ahmad Khashe Lodhi, CEO, brings over 30 years of experience in portfolio management, treasury, mutual funds, investment advisory, equities, and credit analysis, having served at leading institutions including Mashreq Bank Pakistan, HBL, PICIC, and UBL Fund Managers. Syed Ayaz Ahmed, CFO, has over 12 years of experience in finance, compliance, and audit, with prior roles at Faysal Asset Management, UBL, and Optimus Capital Management. Faiz Alam, Head of Operations, brings 30+ years of experience in back-office operations and equity settlement with top brokerage firms. Further onboarding of the management team is in progress to strengthen critical functions and expand organizational capability.

The management structure at UFSL is under development, with key operational functions already in place. Formal management committees are planned to be established upon full commencement of operations, providing structured oversight for strategic and operational decision making. In the interim, select support functions including IT, HR, Marketing, Administration, and Audit are leveraged from the parent group to maintain operational efficiency and continuity, while further onboarding of management personnel is underway to build independent capability and strengthen the Company’s operational framework.

The Company maintains a strong control environment with a Board-level Risk Committee overseeing market, credit, liquidity, operational, and regulatory risks. Regular monitoring, stress testing, and compliance reviews ensure exposures remain within approved limits, supported by contingency and continuity planning. UFSL follows a comprehensive compliance framework aligned with SECP AML/CFT regulations, the Anti-Money Laundering Act, Companies Act, Securities Act, PSX Rule Book, and FATF recommendations. Client onboarding and trading adhere to strict KYC/CDD protocols, with enhanced due diligence for high-risk clients. The internal audit function is provided through shared services from the UBL Fund Managers Limited, ensuring independent oversight of controls and regulatory compliance.

Pakistan’s brokerage sector continues to evolve alongside a strong recovery in the equity market, supported by improving macroeconomic conditions, policy reforms, and higher investor engagement. The Pakistan Stock Exchange (PSX) delivered outstanding performance in 2025, with the benchmark KSE‑100 Index gaining over 50% year‑on‑year and closing above approximately 174,000 points, marking one of the best annual returns in its history. Market capitalization expanded significantly, rising by nearly 40% to around PKR 19.7 trillion (≈ USD 70 billion) by late 2025, while the number of listed companies remained above 520. Investor participation has increased notably, with the total investor base surpassing ~450,000 accounts after a substantial influx of new participants, reflecting growing confidence and broader market access. Daily turnover reached record levels of around PKR 85 billion, highlighting elevated liquidity and active local buying, particularly by domestic funds and individual investors. Despite strong local activity, foreign institutional participation has been mixed, with some net outflows in recent periods. The sector comprises over 400 licensed brokerage houses, serving both retail and institutional segments. While digital adoption and regulatory improvements are expected to further enhance market depth and broaden participation, vulnerability to external shocks and political developments continues to present downside risk to market momentum.

As UFSL has not yet commenced active brokerage operations, its market position and market share are currently not measurable. The Company’s relative positioning within Pakistan’s brokerage sector will become apparent once trading activities are operational and performance data, including client onboarding, transaction volumes, and revenue generation, are available. Given its integration with the UBL Group and access to established client networks, UFSL is positioned to capture market opportunities, though its actual market penetration and competitive standing will be assessed based on operational outcomes and performance metrics over time.

As of CY25, UFSL reported total revenue of PKR 161 million, largely driven by distribution commission income of PKR 136 million, with the remainder arising from other income streams. The Company recorded a net profit of approximately PKR 88 million, highlighting its ability to generate positive earnings from existing operations even during its early growth phase. These results reflect disciplined cost management, effective utilization of the parent group’s resources, and the Company’s capacity to maintain profitability while transitioning toward a full-scale brokerage business model.

Operating expenses for CY25 were contained at PKR 51 million, enabling UFSL to report a net profit of nearly PKR 88 million. This reflects effective cost management and disciplined expense control, resulting in positive operating leverage despite the Company being in its early growth phase. Going forward, resource engagement from shared services will be need-based and ad-hoc, with UFSL requesting support from the parent for Administration, IT, HR, Marketing, or Audit, and the respective departments providing the services. Costs for these shared services are retained in the parent company’s accounts, while only costs directly incurred by UFSL will be reflected in its books, enabling the Company to benefit from operational efficiencies and cost savings provided by the parent.

UFSL’s strategy focuses on establishing itself as a full-service brokerage firm catering to domestic institutions, high-net-worth individuals, and foreign investors. To support long-term sustainability, UFSL plans to enhance its Board composition to strengthen governance and strategic oversight. Digital enablement is a key priority, with the development of the UBL Invest app underway and a company website already operational, aimed at streamlining account opening, improving client experience, and providing seamless access to investment services. These initiatives, combined with operational support from the parent group, are expected to enhance revenue generation, improve efficiency, and position UFSL for sustainable growth in Pakistan’s evolving brokerage sector.

Beyond standard Know Your Customer (KYC) procedures, the Company has implemented comprehensive Customer Due Diligence (CDD) processes under board-approved policies, including the Client Acceptance & Creditworthiness Assessment Policy and AML/CFT Policy, to rigorously evaluate client creditworthiness. These processes are systematically applied, particularly during account onboarding and risk assessment, enabling effective identification of suspicious activities and enforcement of anti-money laundering (AML) measures. Trade receivables remain low and well-managed, with no material aging or credit concerns, reflecting disciplined credit risk management practices.

UFSL’s exposure to market risk is limited, as its primary revenue derives from brokerage services to a diversified client base, including mutual funds, domestic institutions, family offices, retail, and foreign investors. This diversification reduces concentration risk and insulates earnings from reliance on any single segment. In addition, short-term investments of PKR 272 million, currently held in UBL’s money market category funds, further mitigate market risk by providing liquidity and stable returns.

As of CY25, the Company’s liquidity position is strong, with current assets of approximately PKR 282 million against current liabilities of around PKR 19 million, providing a substantial liquidity buffer. This enables the Company to meet obligations in a timely manner. Additionally, access to parent group resources for any incremental liquidity needs, combined with short-term investments in UBL money market funds, further supports a stable liquidity profile and helps mitigate short-term funding risk.

As of CY25, the UBL Group demonstrates a strong capitalization profile, providing a stable financial foundation across its subsidiaries. United Bank Limited (UBL) holds equity of approximately PKR 450 billion, while UBL Fund Managers Limited maintains equity of around PKR 5 billion. At the subsidiary level, UFSL has an equity base of approximately PKR 274 million, supported by the parent group through formal undertakings and a letter of comfort. This layered capital structure ensures that UFSL has sufficient financial backing to support operational growth, absorb potential losses, and meet strategic requirements as its brokerage operations scale.