Rating Details	Rating Type	BFR
	Dissemination Date	Current (12-Dec-25 )	Previous (13-Dec-24)
	Action	Maintain	Maintain
	Rating	BFR 1	BFR 1
	Outlook	Stable	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership	The assigned rating factors in AHL's strong sponsorship profile, with AHCL holding ~74.32% shares, while the general public (local and foreign) holds ~21.81%. The Group's financial strength and diversified business portfolio continue to support AHL's franchise stability.
	Governance	AHL maintains an organized governance structure comprising six directors, including 3 independents, 2 non-executive, and 1 executive director. Board committees, audit, HR&R, and risk Compliance are chaired by independent directors, reinforcing oversight and accountability.
	Management and Client Services	The management team comprises experienced professionals across departments, supported by defined reporting lines. Client servicing remains strong, with ~16,065 active clients as of 1Q'FY26, backed by research availability, online trading platforms, and a dedicated service desk.
	Internal Controls and Regulatory Compilance	AHL operates with independent internal audit, compliance, and risk management functions. System-based monitoring, defined exposure limits, and structured reporting mechanisms support a sound internal control and regulatory compliance framework.
	Business Sustainability	In FY25, AHL's brokerage revenue increased to ~PKR 1.14bn, while the company reported a PAT of ~PKR 979mn, reflecting improved market activity and strong client engagement. Market share stood at ~7.76%, demonstrating a stable competitive position.
	Financial Sustainability	As of Sept'25, AHL's equity strengthened to PKR 2.17bn, while the regulatory LCB improved to ~PKR 1.37bn. Liquidity remains strong with current ratio of 1.26 and controlled reliance on short-term borrowing.

Key Rating Drivers

Fiduciary practices across client servicing, compliance and core risk oversight remain foundational to the control architecture, with progressive refinements anticipated to further reinforce the governance and risk-management environment. Going forward, deepening management capacity, refining internal control mechanisms, incrementally strengthening client protection, enhancing grievance mechanisms and fortifying the conflict-management framework will remain pivotal for sustaining the fiduciary profile.

About the Entity
	Legal Structure	Listed
	Year of Establishment	07-Sep-04
	Type of License	Trading and Self-clearing
	Majority Ownership	Arif Habib Corporation 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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