Lahore, December 20, 2021 (PPI-OT):The rating incorporates Arif Habib Limited’s (“AHL” or “The Company”) association with astute sponsors ‘Arif Habib Group’. The leading position of the Company emanates from its stable market share, established branches, and strong operational control environment. AHL has 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 advisory domain in Pakistan, resulting in diversified revenue base and competitive advantage over peers. The Company is maintaining 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 whistle blowing policies.

On investor’s front, investor’s guidelines, multiple account opening mediums and complaint management policies and procedures are in place. The Company offers various value-added services to its clients including an online trading terminal, research portal, and mobile app. The Company is largely exposed to market risk due to its sizeable proprietary trading book. Related risks are deterred through well-defined investment policies. During FY21, the Company achieved ~12% market share in the recent bull-run of stock market and posted a five years high profits supplemented by brokerage income and capital gains. The Net Capital Balance of the Company stood at ~PKR 1.9bln with an equity base of ~PKR 4.9bln at end-Jun’21.

Going forward, AHL will continue to focus on growing its retail clientele and branch network, which remains a core pillar of its strategy. On corporate advisory and underwriting front, the Company is expecting revenues from the segment, to depict healthy growth in the ongoing year. The rating is dependent on upholding strong control framework while effectively managing risks, particularly associated with proprietary investment book. Meanwhile, sustainability and improvement in profitability from core income and maintaining market share is critical.

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