AHL is majority-owned by Arif Habib Corporation Limited (AHCL), which holds approximately 74.32% of the Company’s shares. The remaining shareholding is dispersed among local and foreign public investors. The ownership profile reflects a highly concentrated sponsor structure, typical of group-backed brokerages in Pakistan.

Sponsor stability is assessed as strong, supported by AHCL’s long-standing presence within Pakistan’s financial and industrial sectors. The shareholding pattern has remained consistent, indicating continuity in strategic direction and oversight. The group has historically demonstrated willingness to back its financial services entities, especially during periods of market stress

The Arif Habib Group is among the country’s largest and most diversified conglomerates, with significant operations across fertilizers, cement, steel, real estate, financial services, and capital markets. The group’s multi-decade involvement in Pakistan’s investment ecosystem reflects deep market familiarity and a tested ability to operate across economic cycles. Their extensive institutional knowledge translates into strategic guidance for AHL, particularly with respect to brokerage expansion, investment banking penetration, and treasury discipline.

AHCL’s healthy balance sheet, diversified earnings base, and strong liquidity profile underpin AHL’s creditworthiness. The group’s breadth across multiple sectors provides resilience against cyclical downturns in capital markets. While AHL operates independently from a treasury standpoint, implicit sponsor support, demonstrated historically through capital strength, governance oversight, and group-level centralization of proprietary investments, acts as a buffer against financial shocks.

AHL’s governance framework is anchored by a six-member Board, comprising three independent directors, two non-executive directors, and one executive director (the CEO). The composition reflects an appropriate separation between oversight and management, with a meaningful presence of independent directors, an essential component in aligning governance practices with fiduciary expectations for a market intermediary. The Board is supported by three committees, Audit, HR & Remuneration, and Risk & Compliance, all chaired by independent directors.

Board members possess extensive experience across capital markets, corporate finance, industry operations, and financial management. Their cumulative expertise, including representation from the wider Arif Habib Group, enhances strategic depth while providing informed supervision over key brokerage, advisory, and treasury activities. The professional background of directors indicates the Board’s capacity to exercise prudent judgment, particularly in areas involving client asset safety, regulatory obligations, and exposure oversight.

Evidence from FY25 board proceedings indicates an active and engaged Board. Directors provided strategic direction in areas such as digital expansion, cost optimization, market-share enhancement, and investment banking execution. Oversight of brokerage performance, treasury activity, and client growth trajectories suggests appropriate involvement in safeguarding the firm’s fiduciary responsibilities. Committee discussions, particularly within the Audit and Risk & Compliance Committees, show structured review of financial reporting, internal audit observations, and compliance matters. The Board’s monitoring of internal control issues and its emphasis on regulatory adherence indicate a governance culture oriented toward transparency and risk containment.

AHL’s financial statements are audited by Rehman Sarfaraz Rahim Iqbal Rafiq, Chartered Accountants, an SBP ''A'' Category firm. For FY25, the auditors issued an unqualified opinion. The Audit Committee reviewed financial statements, related-party transactions, investment decisions, and major balance-sheet movements, with no material concerns raised. The Company maintains compliance with the Code of Corporate Governance, and the Board formally approves the Statement of Compliance annually. These elements collectively support the integrity of financial reporting, an essential component of fiduciary reliability for a brokerage handling client assets and exposures.

The senior management team comprises experienced professionals with domain specialization in trading operations, capital markets research, risk management, technology, and finance. The CEO and CFO bring longstanding sector experience and demonstrate an understanding of both the commercial and fiduciary dimensions of brokerage operations. Management continuity and functional expertise contribute positively to operational stability and execution quality.

AHL operates through a functional organizational hierarchy encompassing key operational domains: finance, risk management and compliance, IT, equity operations, research, international sales, retail/online trading, and investment banking. Department heads report directly to the CEO, ensuring clarity of accountability and operational alignment. The structure is adequate for managing a brokerage with nationwide reach and multi-channel execution requirements.

AHL’s management prioritizes structured client engagement across retail, high-net-worth, RDA, and institutional segments. Multi-channel access is facilitated via desktop, web, and mobile trading platforms, complemented by research insights and portfolio tools. Dedicated operational teams manage onboarding, execution support, and client inquiries, enabling consistent delivery of services in line with segment-specific requirements. Management has maintained focus on service differentiation and transparency, ensuring that operational execution aligns with strategic objectives rather than client-specific fiduciary obligations.

The Company maintains a formalized complaint-handling process with clear escalation and tracking mechanisms. During periods of elevated account-opening activity, management successfully navigated increased KYC/AML workloads without operational disruptions. This framework provides adequate monitoring and risk mitigation of operational lapses, aligning with regulatory expectations and supporting management’s oversight of compliance and operational integrity.

Management has implemented an integrated IT environment supporting end-to-end automation across trading, settlement, and accounting functions. Systems are regularly updated to accommodate growing transaction volumes and evolving regulatory requirements. Automated onboarding, KYC validation, and trading interfaces reduce manual intervention and operational error risk, reflecting management’s focus on efficiency, scalability, and control over brokerage operations.

The Company maintains a documented Disaster Recovery Plan with redundant systems and alternative operational capabilities to ensure continuity in critical trading and settlement functions. Management has structured operations to maintain execution reliability in the event of disruptions, reflecting a deliberate approach to operational resilience and risk management in time-sensitive brokerage processes.

Management oversees market, credit, and operational exposures through structured internal procedures. Proprietary positions, client receivables, settlement obligations, and margining requirements are monitored on a daily basis, supported by system-generated controls for trade limits and exposure tracking. The Risk & Compliance function ensures adherence to established risk parameters, while periodic internal audit reviews provide independent verification of process effectiveness. Collectively, these mechanisms reflect management’s approach to maintaining operational control and mitigating potential disruptions across trading and brokerage activities.

Management maintains compliance with SECP, PSX, CDC, and NCCPL regulatory requirements. KYC/AML procedures, client-asset segregation, and reporting obligations are consistently monitored and updated in line with statutory mandates. Internal audit findings during FY25 did not identify any material deficiencies, with remaining observations being operational in nature. Management’s oversight ensures that regulatory obligations are met, supporting stable and controlled brokerage operations.

Pakistan’s macroeconomic conditions remained broadly stable through FY25 and 1QFY26, creating a supportive environment for capital market activity and the brokerage industry. FY25 reflected a phase of steady recovery, driven by IMF-backed reforms, easing inflation, and an improved external position. Real GDP grew by ~2.7%, supported by expansion in industry (~4.8%) and services (~2.9%), while per capita income increased to ~USD 1,824. Average inflation dropped sharply to ~4.5% from 23.4% in FY24, allowing the State Bank of Pakistan (SBP) to lower the policy rate from 20.5% to 11% by the end of the fiscal year. During 1QFY26, stabilization momentum continued, with average inflation easing further to ~4.2% and the PKR appreciating by ~0.9% FYTD. External indicators strengthened, as exports rose by ~11% YoY to USD ~6.7bn, remittances increased by ~7% YoY to USD ~6.35bn, and foreign exchange reserves reached ~USD 19.8bn by end-Sep’25. The SBP maintained the policy rate at 11%, supporting stable real returns and a favorable investment climate. Improving macro fundamentals, stable monetary policy, and renewed investor confidence have translated into higher trading activity at the Pakistan Stock Exchange (PSX). Market sentiment has also been supported by the expectation of upcoming Initial Public Offerings (IPOs), indicating renewed corporate interest in listings and deepening investor participation in the equity market.

Arif Habib Limited (“AHL” or the “Company”) is a licensed TREC holder of the Pakistan Stock Exchange and a key player in Pakistan’s brokerage and capital markets landscape. Since its establishment in 2004, the Company has evolved into a diversified capital-markets intermediary, offering equity brokerage, investment banking advisory, research, and money market intermediation. Management oversees a functional organizational model encompassing equity brokerage, institutional and retail channels, research, investment banking advisory, money market intermediation, and back-office operations. Operations are supported through an integrated trading platform accessible via desktop, web, and mobile interfaces, complemented by a dedicated customer-support function and nationwide branch presence. AHL serves a broad client base, including high-net-worth individuals, retail investors, institutional clients, RDAs, and foreign broker-dealers. Strategic initiatives, including the transfer of legacy investments to Arif Habib Corporation Limited (AHCL) under a Court-sanctioned Scheme of Arrangement, have allowed management to reposition AHL as a focused capital-markets services platform. This clarity of structure, coupled with operational scale and digital capabilities, underpins management’s ability to sustain business continuity, execute advisory mandates, and respond effectively to evolving market conditions.

AHL’s profitability trajectory in FY25 reflects management’s ability to translate improved market sentiment into sustained revenue growth. The Company delivered a net profit of PKR 979.26mn (FY24: PKR 611.94mn), driven by a 63% increase in brokerage income to PKR 1,141.96mn and stronger realization of investment gains (PKR 1,097.27mn, FY24: PKR 374.39mn). Management’s focus on cost discipline enabled the operating expense base to scale proportionately with activity levels, preserving operating leverage. A reduction in finance cost to PKR 85.56mn also reflects tighter treasury management and lower reliance on short-term borrowing. The positive performance carried into 1QFY26, where the Company reported PAT of PKR 246.39mn compared to PKR 136.55mn in the same period last year. Operating revenue rose to PKR 645.7mn (1QFY25: PKR 317.6mn), supported by higher trading flows and timely crystallization of market opportunities. Administrative expenses increased in line with business expansion; however, management maintained profitability at healthy levels, with quarterly EPS rising to PKR 3.77 (1QFY25: PKR 2.09). On the liquidity front, management strengthened the balance sheet by maintaining sizeable buffers. Current assets grew to PKR 9.10bn as at September 30, 2025 (June 2025: PKR 6.86bn), driven primarily by enhanced cash holdings and short-term investments. Cash and bank balances increased to PKR 5.70bn (June 2025: PKR 3.73bn), reflecting strong cash flow generation and prudent liquidity positioning. Short-term borrowings remained contained at PKR 928.9mn, consistent with management’s approach of using debt selectively for settlement-cycle requirements. Receivables and margin-financing exposures remained at controlled levels, indicating active monitoring of counterparty behaviour and credit utilization. Client activity patterns further support the Company’s earnings stability. Although new client additions remained modest, the resurgence of previously inactive accounts improved throughput and commission visibility. The revenue base remains diversified across institutional, retail/HNWI, RDA, and foreign segments, an outcome of management’s deliberate effort to balance client concentration and maintain broad market coverage.

AHL’s credit-risk management framework reflects the management team’s emphasis on disciplined client assessment and controlled utilization of leveraged products. The Company applies a structured onboarding process supported by regulatory KYC requirements and internal due-diligence checks, ensuring that client risk profiles are well understood before trading limits are assigned. Trading exposures, particularly for margin financing and leveraged transactions, are governed through category-specific limits that management reviews periodically. Daily monitoring tools allow the team to track limit utilization, ageing of receivables, and collateral adequacy, enabling prompt intervention where required. As of September 30, 2025, trade debts declined to PKR 302.77mn (June 2025: PKR 435.13mn), and margin-financing receivables remained stable at PKR 259.74mn, highlighting controlled credit deployment and healthy collection discipline. The Company did not report material overdue or stressed receivables during FY25 or 1QFY26, reflecting effective counterparty monitoring and timely follow-ups by the credit and operations teams. Management’s continued focus on maintaining disciplined credit thresholds, improving system-based controls, and ensuring active oversight positions the Company to manage credit exposures effectively as business volumes grow.

AHL’s market-risk profile is shaped by management’s active oversight of the proprietary book, which stood at PKR 2.01bn as of September 30, 2025 (June 2025: PKR 1.02bn). The increase reflects management’s strategic positioning during a favourable equity-market phase. Although the headline exposure expanded, a substantial portion of the book remains hedged or structured to offset market swings, consistent with the Company’s established trading philosophy. Management conducts daily monitoring of exposure limits and mark-to-market movements through automated dashboards, with clear escalation protocols for abnormal variances. This disciplined supervision helps temper the inherent volatility linked to the equity-heavy composition of the book. While market cycles continue to influence earnings variability, the Company’s risk-taking approach appears deliberate, research-backed, and aligned with internal risk parameters. The team’s ability to adjust positions swiftly remains an important driver of stability in market-facing operations. These practices operate within an established Board-approved framework, and continued adherence to these controls remains essential from a management-risk standpoint, given the inherent cyclicality of market-linked income.

AHL’s liquidity stance reflects management’s emphasis on maintaining sizeable buffers and ensuring a smooth settlement cycle. As of September 30, 2025, current assets increased to PKR 9.10bn (June 2025: PKR 6.86bn), driven by higher cash reserves and an uptick in short-term investments. Cash and bank balances rose to PKR 5.70bn (June 2025: PKR 3.73bn), pointing to strong cash flow generation and prudent treasury management. Current liabilities were reported at PKR 7.24bn, including PKR 928.9mn of short-term secured borrowing, which management deploys selectively for working-capital and settlement-cycle efficiency. Liquidity strength is supplemented by high receivable turnover, access to unutilized banking lines, and the presence of readily monetizable short-term investments. Collectively, these elements underscore management’s capacity to navigate varying market conditions while keeping liquidity cushions intact.

AHL’s capitalization improved on the back of sustained profitability and cautious balance-sheet management. Total equity increased to PKR 2.17bn as of September 30, 2025 (June 2025: PKR 1.93bn), reflecting consistent internal capital generation. Management’s retention approach has helped strengthen the Company’s ability to support business scale while withstanding market cyclicality. The Liquid Capital Balance (LCB) rose to PKR 1,375.80mn (June 2025: PKR 1,233.83mn), driven by enhanced cash buffers and efficient working-capital positioning. The expanding LCB demonstrates management’s focus on maintaining regulatory comfort and ensuring settlement capability even under volatile market conditions. Leverage levels remain modest, and the capital structure continues to rely primarily on equity and operational cash flows, reflecting a conservative financing philosophy.