Press Release
PACRA maintains Broker Fiduciary Rating of Habib Metropolitan Financial Services Limited
Date: 17-May-24
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Rating Details | Rating Type | BFR | |
Dissemination Date | Current (17-May-24 ) | Previous (17-May-23) | |
Action | Maintain | Maintain | |
Rating | BFR 3+ | BFR 3+ | |
Outlook | Stable | Stable | |
Rating Watch | - | - |
Rating Rationale | Factor | Comment |
Ownership | Habib Metropolitan Bank Limited is the majority owner with ~99.99% stake in the Company. The ownership factor is considered strong. | |
Governance | The Board comprises three non-executive directors representing Habib Metropolitan Bank Limited. Independent oversight may be added to enhance governance framework. | |
Management and Client Services | HMFSL has an experienced management team to run its operations with a well-defined organizational structure in place. The Company has recently added an online sales department with a dedicated head of | |
Internal Controls and Regulatory Compilance | Internal controls framework is enhanced with the presence of an inhouse internal auditor. The compliance department ensures all regulatory compliances are adhered to. Requisite policies and procedures | |
Business Sustainability | The Company has a limited client base, and earned a topline of ~PKR 34mln in CY23 (SPLY: ~PKR 32mln). Increased operating expenses resulted in HMFSL suffering from a loss of ~PKR 20mln during CY23 (SP | |
Financial Sustainability | HMFSL has a zero-leveraged capital structure, with an equity base of ~PKR 309mln at end-Dec'23. |
Key Rating Drivers |
About the Entity | |
Legal Structure | Public Limited |
Year of Establishment | 28-Sep-07 |
Type of License | Trading and Self-clearing |
Majority Ownership | Habib Metropolitan Bank Limited |
Regulatory Disclosures | Analyst | Applicable Criteria | Related Research |
Hassaan Ahmad Hassaan.Ahmad@pacra.com +92-42-35869504 www.pacra.com |
Assessment Framework | Broker Fiduciary Rating | Jan-24 |
Sector Study | Brokerage & Securities | Jan-24 |
Disclaimer | This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA. The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor. |