PACRA Upgrades Broker Fiduciary Rating of KTrade Securities Limited

Lahore, May 13, 2022 (PPI-OT):The rating upgrade signifies the improving position of KTrade Securities Limited (Ktrade) in the brokerage industry. A strong internal control framework emanating from outsourced internal audit and independent risk management function provides comfort. The management team consists of seasoned professionals providing the clients with state-of-the-art services such as, online trading, mobile-app and up-to-date research reports. A dedicated customer service department is also present for client facilitation. The benchmark app ‘KTRADE’ has a user-friendly interface and it is one the most used app of financial industry.

The rating accounts for the strong sponsors’ profile and an adequate governance structure which may be enhanced further. The assigned rating is supported by immense growth in brokerage revenue over the years amid increased client base. The topline is concentrated to commission on equity brokerage; however, the Company has diversified its product base to augment the revenue stream. The equity has shown considerable improvement during the period under review with a leverage free capital structure.

The expansion strategy is materializing where the Company has opened new branches in various cities and has increased the head count accordingly. The ratings are dependent on the management’s ability to strengthen revenue base by augmenting consultancy and advisory services. Improvement in market share and sustaining profitability from core operations remains 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

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