Rating Details	Rating Type	BFR
	Dissemination Date	Current (16-May-25 )	Previous (17-May-24)
	Action	Maintain	Maintain
	Rating	BFR 3+	BFR 3+
	Outlook	Stable	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership	Habib Metropolitan Bank Limited is the majority owner with ~99.99% stake in the Company. The ownership factor is considered strong.
	Governance	As at 31st December 2024, the Board comprises three non-executive directors representing Habib Metropolitan Bank Limited. Independent oversight may be added to enhance governance framework.
	Management and Client Services	HMFSL has an experienced management team to run its operations with a well-defined organizational structure in place. The Company also has an online sales department with a dedicated head of online sa
	Internal Controls and Regulatory Compilance	Internal controls framework is enhanced with the presence of an inhouse internal auditor. The compliance department ensures all regulatory compliances are adhered to. Requisite policies and procedures
	Business Sustainability	The Company has a limited client base, and has earned a topline of ~PKR 79mln (SPLY: ~PKR 34mln). Increased operating expenses resulted in net loss of ~PKR 3.6mln at the end-Dec'24 (SPLY: ~PKR 20mln).
	Financial Sustainability	HMFSL had a short term borrowing amounting ~PKR 57mln from the holding company Habib Metropolitan Bank Limited, and an equity base of ~PKR 334mln at the end-Dec'24 (SPLY: ~PKR 309mln).

Key Rating Drivers

The brokerage industry has shown robust performance in 2024, fueled by improved macroeconomic stability and investor optimism. Habib Metropolitan Financial Services Limited ('HMFS' or 'the Company') continues to pursue a balanced growth strategy, reinforcing its established institutional and HNWI franchise while strategically expanding its retail footprint through digital channels. The rating outlook remains contingent upon the Company's ability to translate these customer acquisition efforts into sustainable revenue growth, particularly in demonstrating scalable profitability that keeps pace with or exceeds industry benchmarks. Critical to this assessment will be HMFS's capacity to maintain competitive market share in core brokerage services while implementing disciplined risk controls, preserving underwriting standards, and ensuring management stability amid evolving market conditions, all of which collectively influence the company's credit profile and long-term positioning within Pakistan's dynamic financial services landscape.

About the Entity
	Legal Structure	Public Limited
	Year of Establishment	28-Sep-07
	Type of License	Trading and Self-clearing
	Majority Ownership	Habib Metropolitan Bank Limited

Regulatory Disclosures	Analyst	Applicable Criteria	Related Research
	Muhammad Azmat Shaheen azmat.shaheen@pacra.com +92-42-35869504 www.pacra.com	Assessment Framework | Broker Fiduciary Rating | Jan-25	Sector Study | Brokerage Firms | Feb-25

Disclaimer

This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA. The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.