Rating Details	Rating Type	BFR
	Dissemination Date	Current (01-Oct-25 )
	Action	Initial
	Rating	BFR 2
	Outlook	Stable
	Rating Watch	-

Rating Rationale	Factor	Comment
	Ownership	UBL Financial Services Limited (UFSL) is a wholly-owned subsidiary of UBL Fund Managers Limited, which is part of the United Bank Limited (UBL) group. UBL, one of Pakistan's largest banks by market capitalization, provides UFSL with strong financial backing and ownership.
	Governance	The Board of UBL Financial Services (Pvt.) Limited comprises four members, including Mr. Ahmad Khashe Lodhi (Executive Director & CEO), Mr. Mohammad Gohar (Nominee Director), Ms. Fatima Shahzad (Nominee Director), and Mr. Kashif Aziz Khwaja (Independent Director).
	Management and Client Services	UFSL is building a client-focused framework supported by its parent's expertise. It is enhancing services with digital platforms ("UBL Invest" and a website) to complement branch onboarding.
	Internal Controls and Regulatory Compilance	UFSL's compliance framework adheres to SECP rules, with AML/CFT and KYC/CDD procedures for clients. A Board Risk Committee oversees key market, credit, and operational risks.
	Business Sustainability	The report revenue of ~PKR 145mln and profit of ~PKR 61mln are from legacy distribution operations. The rating anticipates future brokerage income will be adequate, based on financial projections.
	Financial Sustainability	The financial sustainability of UFSL is anchored by the explicit and binding undertakings of its direct parent, UBL Fund Managers Limited (equity: PKR ~5.2bln as of June 2025). A formal Letter of Comfort provides a definitive capital commitment, ensuring comprehensive support for loss absorption, liquidity maintenance, and strategic initiatives.

Key Rating Drivers

The rating is supported by the UBL Group's substantial financial capacity and strategic alignment with UFSL. The brokerage will achieve significant operational synergies by leveraging the parent's well-established protocols in IT, Internal Audit, and Secretarial functions, ensuring strong governance and control. This deeply integrated support structure, combined with UFSL's advanced digital infrastructure, underpins its operational resilience. The rating's trajectory is contingent upon the successful materialization of the standalone brokerage revenue model and sustained adherence to elevated fiduciary standards.

About the Entity
	Legal Structure	Private Limited
	Year of Establishment	27-Feb-14
	Type of License	Trading and Self-clearing
	Majority Ownership	UBL Fund Managers Limited

Regulatory Disclosures	Analyst	Applicable Criteria	Related Research
	Usama Ali usama.ali@pacra.com +92-42-35869504 www.pacra.com	Assessment Framework | Broker Fiduciary Rating | Jan-25 Methodology | Rating Modifiers | Apr-25	Sector Study | Brokerage Firms | Feb-25

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