Rating Details	Rating Type	BFR
	Dissemination Date	Current (18-Jul-25 )	Previous (19-Jul-24)
	Action	Maintain	Maintain
	Rating	BFR 2+	BFR 2+
	Outlook	Stable	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership	The assigned rating incorporates the business acumen of the primary sponsor "Bank Al Habib Limited", which owns ~67% of the ownership. The remaining shares are held by the Habib Family, friends and associates.
	Governance	The Company has 5 directors on board, 4 non executive and 1 executive director. Representation of the primary sponsor on the board is well noted. The addition of independent directors to the board would strengthen governance oversight.
	Management and Client Services	The Company has well developed organizational structure to manage its operations and appropriate policies to protect the clients interest. The ratings incorporate the improvement to AHCMLs client services through the addition of an online sales and marketing department.
	Internal Controls and Regulatory Compilance	The Company maintains a dedicated internal audit function, supported by the board Audit Committee to ensure a sound control environment. Separating risk and compliance roles could further enhance the framework. The risk assessment approach is guided by established KYC, CDD, AML, and CFT practices.
	Business Sustainability	The Company's revenue remains concentrated in equity brokerage, which stood at ~PKR 43mln in 1QCY25 (SPLY: ~PKR 46mln), reflecting a strategic focus on quality, long-term client ties, and risk-conscious operations amid changing market dynamics.
	Financial Sustainability	The prop book of the Company constitutes 33% of the equity and stood at ~PKR 144mln at end Mar'25 as compared to the ~PKR 100mln that constitutes ~18% of the equity in SPLY. Furthermore, the Pakistan Investment Bonds (PIBs) contribute ~66% to the prop book at end Mar'25 as compared to the ~82% SPLY.

Key Rating Drivers

Going forward, it is imperative to diversify revenue sources. The managements ability to retain its market share and boost trading volumes in order to improve its competitive standing in the Brokerage Industry is an integral part of the rating decision. Retention of key personnel, adherence to regulatory requirements, and sustainability of profitability will remain important from a rating perspective.

About the Entity
	Legal Structure	Private Limited
	Year of Establishment	23-Aug-05
	Type of License	Trading and Self-clearing
	Majority Ownership	Bank AL Habib Limited

Regulatory Disclosures	Analyst	Applicable Criteria	Related Research
	Usama Ali usama.ali@pacra.com +92-42-35869504 www.pacra.com	Methodology | Rating Modifiers | Apr-24 Methodology | Correlation Between Long-term & Short-term Rating Scales | Jul-24 Assessment Framework | Broker Fiduciary Rating | Jan-25	Sector Study | Brokerage Firms | Feb-25

Disclaimer

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