PACRA Maintains Broker Management Rating of Arif Habib Limited

The rating reflects AHL’s stature as one of Pakistan’s most influential capital-markets intermediaries, a position maintained through deliberate managerial execution across scale, client diversification, and multi-product integration. Management’s emphasis on broad-based outreach and service consistency has enabled the Company to sustain an ~8%+ market share, grow its client base to over 33,000 accounts, and secure nearly 30% of RDA, an outcome attributable to effective channel management, targeted engagement, and operational discipline. The Company’s diversified activity set, including equity brokerage, investment banking advisory, money market intermediation, and a research franchise covering more than 50 companies, reflects management’s strategic focus on maintaining a stable, multi-source revenue architecture aligned with the institution’s long-term positioning. Institutional strength is reinforced by sponsorship from AHCL, which holds approximately 74% shareholding under the broader Arif Habib Group. The sponsor’s multi-sector presence and demonstrated commitment to its capital-market entities provide directional clarity, strategic cohesion, and stability in governance expectations, enabling management to align operational expansion with a clearly defined risk appetite and financial discipline. Governance oversight is exercised through a well-composed Board, with independent members chairing the Audit, HR & Remuneration, and Risk & Compliance Committees. This structure supports management’s control-oriented culture, reflected in adherence to the Code of Corporate Governance, unqualified audit opinions, and periodic review of financial reporting, internal controls, and regulatory compliance. Management depth spans trading operations, research, advisory, compliance, risk, finance, and technology, with clear reporting structures enabling synchronized execution across front, middle, and back offices. Their ability to manage elevated transaction flows, ensure process accuracy, and maintain regulatory alignment highlights strong operational command. Technology deployment further strengthens execution quality; integrated platforms support end-to-end trade processing, automated KYC validation, limit controls, settlement monitoring, and DR/BCP continuity, materially reducing operational vulnerability. Management’s discipline is equally reflected in the risk-management framework, including daily oversight of proprietary exposures, automated MTM triggers, receivable aging controls, and strict KYC/AML/CFT compliance. Financial performance evidences management’s ability to leverage market cycles: FY25 profit after tax reached ~PKR 979mn, with strong brokerage growth, substantial investment gains, and improved operating leverage, while liquidity remained solid with rising liquid capital base. Operational throughput benefited from client reactivation and institutional connectivity, underscoring management’s capability to sustain momentum and operational resilience.
Continuation of the ratings relies on the Company’s ability to uphold a strong governance regime, preserve the depth and continuity of key management positions, and continuously strengthen risk management and compliance practices. Advancements in process automation, enhancement of digital controls, and development of human capital capabilities will remain fundamental to maintaining overall management quality and operational resilience.

About the Entity
Arif Habib Limited (AHL) is a leading financial services firm and a subsidiary of Arif Habib Corporation, listed on the Pakistan Stock Exchange. The company is actively engaged in equity trading, equity research, money market operations, forex, and commodities trading, with a well-established and reputable brand name in the financial industry. AHL also offers a wide range of investment banking and advisory services to a diverse clientele. Operating from multiple branches across Pakistan, AHL’s headquarters is located in Karachi, the country’s financial center. Arif Habib Corporation Limited (AHCL) holds approximately 74.32% of AHL’s shares, with the remaining owned by the general public. The company’s free float is around 25%. AHCL serves as the holding company of the Arif Habib Group.