Lahore, July 23, 2021 (PPI-OT):The broker fiduciary rating of AL Habib Capital Markets (Pvt.) Limited (“AHCML” or “The Company”) reflects the Company’s association with a well-established bank which is one of the dominant players in the banking sector. The assigned rating takes into account the well experienced management team, and well established compliance protocols. The Governance framework of the Company is in compliance with Securities Brokers Regulation 2016. The Company has established rigorous protocols regarding risk assessment by implementing KYC, CDD, AML and CFT which bodes well for the rating. Following the recent boom in traded volumes of stock exchange, the core revenue of the Company remained buoyant and the Company maintained its market share to average ~2.5%.

The Company maintains proprietary investments, mostly in GoP securities, hence exposed to some market risk. The Net Capital Balance of the Company clocked in at ~PKR 240mln with an equity base of ~PKR 347mln as at end CY20. The topline of the Company is concentrated in the equity brokerage income. The Company earned profit amounting to ~PKR 30mln during CY20 (CY19: ~PKR -11mln). The ratings are dependent on the management’s ability to retain its market share and enhance the volumes and diversity of revenue to improve its competitive position in the brokerage industry. Retention of key personnel, adherence to regulatory requirements, and sustainability of profitability will remain imperative from ratings perspective.

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