Rating Details	Rating Type	BFR
	Dissemination Date	Current (15-May-26 )	Previous (16-May-25)
	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	The Board of HMFSL consists of three non-executive directors and the CEO. All members of the Board represent Habib Metropolitan Bank Limited, and the Board does not currently include an independent director. The presence of an independent director on the Board would further enhance the governance framework.
	Management and Client Services	HMFSL has an experienced management team overseeing its operations, supported by a well-defined organizational structure. The company also maintains an institutional sales and business development department, led by a dedicated Head of Institutional Sales and Business Development, along with an online department to enhance client services.
	Internal Controls and Regulatory Compilance	An effective internal control framework is supported by an in-house internal audit function. The Company has also established requisite policies and procedures to maintain a strong control environment and ensure compliance.
	Business Sustainability	HMFSL's topline is primarily driven by equity brokerage, generating PKR 121mln in brokerage revenue as at Dec '25 (SPLY: PKR 79mln). The company reported a net income of PKR 6.7mln (SPLY: net loss of PKR 3.6mln).
	Financial Sustainability	HMFSL had an equity base of PKR 370mln at the end-Dec '25 (SPLY: PKR 333mln). HMFSL had an LCB standing at ~PKR 236mln at the end-Dec '25.

Key Rating Drivers

Fiduciary practices across client servicing, compliance, and risk oversight remain central to Habib Metropolitan Financial Services Limited ('HMFS' or 'the Company') control framework, supporting its rating. The Company continues to strengthen its institutional and HNWI franchise while expanding its retail footprint through digital channels, reflecting a balanced growth approach. However, the extent to which these initiatives translate into consistent, scalable revenue remains a key consideration, alongside the need to sustain competitive positioning in core brokerage operations. Going forward, maintaining strong risk controls, reinforcing underwriting discipline, ensuring management stability, enhancing client protection mechanisms, and strengthening internal governance practices will be critical to sustaining and improving HMFS’s fiduciary standards and overall control environment.

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
	Usama Ali usama.ali@pacra.com +92-42-35869504 www.pacra.com	Methodology | Rating Modifiers | Apr-25 Assessment Framework | Broker Fiduciary Rating | Jan-26	Sector Study | Brokerage Firms | Feb-26

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