WE Financial Services Limited ("WE FSL" or "The Company"), incorporated in 1993, is a public unlisted company registered with the Securities and Exchange Commission of Pakistan (SECP). The company holds a Trading Right Entitlement Certificate (TREC), allowing it to operate as a licensed brokerage firm, offering a focused range of brokerage services. WE FSL has plans to expand its offerings into corporate finance and equity research. Historically, the company pursued strategic partnerships with both international and domestic institutions, including Smith New Court (SNC) and Crescent Investment Bank of Pakistan. However, these alliances were not sustained. Currently, WE FSL operates as a fully self-governed and independent entity, maintaining high standards of professionalism and ethics within Pakistan’s financial sector.

WE FSL operates primarily as a licensed brokerage firm, offering equity trading services. The company provides a limited range of brokerage services to a diverse client base, including individual, corporate, institutional, retail, Roshan Digital Account (RDA), and foreign clients. Its operations are centralized and managed through a single branch located in Karachi, allowing for streamlined execution and focused client servicing. WE FSL is also planning to expand its operational scope by introducing corporate finance advisory and equity research services to diversify its offerings within the financial sector.

The ownership structure of the company is primarily held by members of the Javaid family, with Raheel Javaid, Asad Javaid, and Humayun Javaid each owning an equal stake of 31.84% in the company. Additionally, Nuzhat Javaid holds a smaller share of 4.49%. This concentrated ownership reflects a closely held family-controlled business.

WE FSL benefits from a family-owned structure, with key sponsors holding a majority stake and demonstrating a strong commitment to the business.

The key sponsors of the company are foreign-qualified professionals, bringing with them international exposure, strategic insight, and a deep understanding of global financial practices. Their expertise is reflected in the company’s long-term vision, effective decision-making, and adaptability to evolving market dynamics. This background has significantly contributed to the company’s sustainable growth, market credibility, and ability to navigate complex financial environments effectively.

WE FSL is backed by financially strong sponsors who have actively supported the company during periods of distress. Their timely assistance has helped maintain liquidity, ensure operational continuity, and uphold investor confidence.

The board of the company consists of three members, all of whom are from the Javaid family: Humayun Javaid, Asad Javaid, and Raheel Javaid, with Humayun Javaid also serving as the CEO. Inclusion of diverse perspectives, particularly through the appointment of independent and female directors, would further enhance the board’s effectiveness, governance standards, and strategic decision-making.

Mr. Humayun Javaid, the CEO, holds a BBA (Hons.) from Western Michigan University and has over 27 years of experience in financial services, including senior roles at Deutsche Bank AG and The Takaful Company. Mr. Asad Javaid, with a Bachelor's in Business Administration from the same university, has over 25 years of experience in equity brokerage and fund management, and has previously served as CEO of WE Investment Management. Mr. Raheel Javaid, an MBA graduate from Western Michigan University, brings over 21 years of expertise in business development, risk, and online trading, having led the development of the company’s online trading platform and customer service enhancements.

The Board comprises experienced professionals who actively guide the company's strategic direction and governance. It meets quarterly and on a need basis, with well-documented and maintained meeting minutes. An Audit Committee supports the Board by ensuring financial transparency, regulatory compliance, and internal controls. It reviews financial statements, oversees risk management, and coordinates with external auditors to uphold strong accountability and governance standards.

The Company ensures financial transparency through external audits conducted by Nasir Javaid Maqsood Imran Chartered Accountants, a ‘B’ category firm on the SBP panel. In addition, WEFSL has established an internal audit function through outsourcing to Mr. Ahmer Shahid, FCCA,  former Head of Internal Audit at WEFSL and currently Co-founder & CEO of ASN.

The organizational structure of the Company comprises key departments including (i) Broking, (ii) Compliance, (iii) Finance, (iv) IT, (v) Research, (vi) Administration, and (vii) Customer Service. All departmental heads report directly to the CEO. This centralized reporting structure ensures streamlined communication, effective coordination, and alignment with the Company’s strategic objectives. The Company has also formally established a dedicated Research Department, with qualified resources onboarded and research report preparation underway. While the function has not yet begun contributing to revenue, it is expected to support future income streams and strengthen the Company’s value proposition over time.

The management team has been associated with the company for over two decades, combining strong academic credentials with extensive industry experience. With expertise in equity sales, portfolio management, customer service, risk, operations, and research, the team’s deep knowledge and educational background provide a solid analytical and strategic foundation, supporting consistent growth and effective decision-making.

The Company offers multiple account opening channels, including a user-friendly online trading terminal and in-person services through its physical branch. A dedicated and responsive customer support team assists clients throughout the onboarding process and provides guidance for seamless online trading, ensuring a smooth and efficient client experience.

The company has a well-structured and accessible complaint management system, overseen by the Customer Service Department, offering clients multiple channels to register their concerns including email, phone, the official website, and a physical complaint box. The team is committed to addressing customer concerns as promptly as possible, reflecting the company’s dedication to service excellence, timely resolution, and safeguarding client interests.

The company’s front-end and back-end systems are fully integrated, enabling operational reliability, regulatory compliance, and timely, accurate reporting. Strong primary and secondary security protocols safeguard data integrity and protect against potential threats. The IT department actively manages and enhances system automation, ensuring efficient and secure operations.

The Company has established a comprehensive and well-tested disaster recovery plan to ensure seamless business continuity in the event of unforeseen disruptions. The plan includes clearly defined protocols for rapid recovery and minimal operational downtime. It is supported by daily data backups to maintain data integrity and enable swift restoration of systems. The disaster recovery framework has also been successfully beta tested, reinforcing its effectiveness and readiness under real-world conditions.

The Compliance Department oversees the company’s risk management framework, including client risk assessments, operational monitoring, and regulatory compliance. While no formal board-level risk committee is in place as of now, the department ensures close monitoring of key areas such as trading, settlement, and the online platform to identify and mitigate risks, safeguarding client interests and maintaining organizational stability.

The Compliance Department is responsible for the ongoing monitoring of controls and systems, ensuring that all operational functions adhere to established policies and procedures. This proactive oversight helps to identify and address potential issues promptly, maintaining compliance and safeguarding the organization’s operations.

Pakistan's brokerage sector is expanding, supported by digital adoption, regulatory reforms, and growing investor participation. The PSX hosts over 400 licensed brokers, serving around 300,000 active retail clients and nearly 1,900 foreign institutional investors. While retail participation averages just 5-10% weekly, significant growth potential remains, reinforced by the rise of online platforms and digital-only brokers. In CY25, the PSX delivered returns above 30%, ranking among the best-performing frontier markets, driven by improving macroeconomic conditions, falling interest rates, and a shift from fixed income to equities. Nonetheless, the market remains vulnerable to external shocks, with both risks and positive triggers capable of sparking rapid swings.

WE-FSL has demonstrated significant improvement in business performance over the past three years, underscoring its operational resilience and strategic execution. Brokerage revenue increased by 30%, reaching PKR 58.8 million in FY25, compared to PKR 45 million in FY24 and a modest PKR 14 million in FY23. This growth was primarily driven by a substantial rise in stock market activity on the PSX and successful client acquisition efforts. Operating expenses rose to PKR 61 million, reflecting the impact of inflation and ongoing business expansion. Despite the increase in costs, the company returned to profitability, reporting a net profit of PKR 5.4 million in FY25 (SPLY: PKR 5.6mln). The surge in market performance directly contributed to the boost in brokerage income, reinforcing the company’s improved financial trajectory.

Going forward, the Company is focused on expanding its presence in the retail sector by strengthening its digital outreach to attract a wider customer base. It is also enhancing client servicing capabilities to improve customer experience and retention. Additionally, the Company plans to introduce corporate finance services, further diversifying its offerings and positioning itself for long-term growth.

In addition to Know Your Customer (KYC) procedures, the Company has implemented Customer Due Diligence (CDD) processes governed by board-approved policies to thoroughly assess client creditworthiness. These procedures are comprehensive and well-documented, particularly during account opening and risk assessment phases. The information gathered supports the identification of suspicious activities, enforcement of anti-money laundering (AML) measures, and management of irregular transactions. The Company has also adopted policies for leveraged products, with clearly defined limits that are actively monitored. Trade debts remain at a low and manageable level, with no significant aging concerns.

The Company has adopted a conservative investment strategy, allocating approximately 73% of its portfolio to money market mutual funds. This allocation provides stability and serves as an effective hedge against market volatility, significantly mitigating overall market risk. The remaining 27% exposure to listed equity securities is strategically managed, with continuous monitoring and risk assessment to ensure it remains within acceptable and controlled limits. This balanced approach enables the Company to preserve capital while maintaining flexibility to capture market opportunities within a well-defined risk management framework.

WE FSL faces moderate liquidity risk, mainly due to an increase in current liabilities to PKR 42 million in FY25 from PKR 37 million in FY24. Nevertheless, the company’s current assets have grown substantially, reaching PKR 106 million from PKR 93 million, bolstering its capacity to meet these obligations. The current ratio remains comfortably above 1, while the bulk of liabilities are trade payables, which are routine and carry relatively lower liquidity risk. Additionally, the liquid capital balance (LCB) to equity ratio stands at a healthy 23%, further underpinning the company’s strong liquidity profile.

WE FSL maintains a conservative capital structure, primarily financed through equity, with total equity standing at PKR 95 million as of FY25, up from PKR 89 million in FY24. The company does not rely on external debt, which limits its financial leverage and associated risks. The increase in assets and equity also indicates strengthened capitalization, contributing positively to the firm’s credit profile and operational resilience.