Lahore, December 20, 2021 (PPI-OT):The assigned rating manifests the Company’s association with astute sponsors ‘Arif Habib Group’, one of the prominent conglomerates in the country. The leading position of the Company emanates from its well-diversified revenue stream, stable market share, extensive outreach, and strong operational control environment. AHL has a well-experienced management team, sound governance framework, and well-established compliance protocols which bodes well for the rating.

In addition to brokerage, AHL achieved a distinct position in the advisory domain in Pakistan, resulting in a diversified revenue base and a competitive edge over peers. The Company has maintained a sizeable number of investors’ accounts including Institutional, HNWIs, and Retailers. AHL has established rigorous protocols regarding risk assessment by implementing KYC, CDD, AML, CFT, and whistleblowing policies.

The Company has largely been exposed to market risk due to its sizeable proprietary trading book. Related risks are deterred through well-defined investment policies. During FY21, the Company posted its highest core profitability with net profits at ~PKR 2.1bln (FY20: ~PKR: 60mln), owing to record volumes achieved at PSX. The equity base of the Company amounted to ~PKR 4.9bln at end-FY21. Whereas, the Net Capital Balance of the Company reached up to ~PKR 1.9bln as at end-Jun’21.

For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com