PACRA Maintains Broker Management Rating of Alfalah CLSA Securities (Private) Limited

Broker Management Rating of Alfalah CLSA Securities (Private) Limited (The Company or Alfalah CLSA) reflect its association with CLSA (24.9% shareholder) - a wholly owned subsidiary of CITIC Securities, the largest investment bank in China. The rating incorporates the Company's strong sponsor support and governance , growing market share, matrix reporting organizational structure and experienced management team. Alfalah CLSA has a well-developed organizational structure, with clear reporting lines for respective heads at the group level. The research department draws strength from the experience of seasoned professionals and its access to CLSA platform internationally. The IT infrastructure allows full integration of the front and back office functions, allowing generation of real time reports. As a policy, the Company does not take propitiatory exposure, which reduces conflict of interest and minimizes exposure to market risk. The Company has an adequate capitalization level with Net Capital Balance of ~PKR 137 mln, whereas Net Equity as at Dec-19 stood at ~PKR 238 mln (Dec-18 ~PKR 134 mln).
The rating is dependent upon the management's strategy to improve market share and profitability by leveraging its brand. Retention of key human resource and upholding strong controls remain critical for the rating.

About the Entity
Alfalah CLSA Securities (Pvt.) Limited is a financial services company, licensed as securities broker under Securities Brokers (Licensing and Operations) Regulations, 2016. The company is engaged in equity trading. The company also provides investment banking & advisory services. Alfalah Securities operates from Head office based in Karachi, Pakistan. It is a subsidiary of Bank Alfalah Limited. The bank owns ~62% stake in Alfalah Securities. CLSA now holds ~24.9% stake in the company. The remaining shareholding lies with the company's Chairman Mr. Aliuddin Ansari and the CEO Mr. Atif M. Khan. CLSA is a 100% owned subsidiary of CITIC Securities, the largest investment bank in China. As the international platform of CITIC Securities, China’s leading investment bank, CLSA is uniquely positioned to facilitate cross-border capital flows and connect China with the world and the world to China. Founded in 1986 and headquartered in Hong Kong, CLSA’s global network spans 22 locations across Asia, Australia, Europe and the United States.