Press Release
PACRA assigns Initial Broker Fiduciary Rating to AL Habib Capital Markets (Pvt.) Limited
Date: 19-Jul-21
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Rating Details | Rating Type | BFR | |
Dissemination Date | Current (19-Jul-21 ) | ||
Action | Initial | ||
Rating | BFR 2+ | ||
Outlook | Stable | ||
Rating Watch | - |
Rating Rationale | Factor | Comment |
Ownership | The Company is a subsidiary of Bank AL Habib Limited with 66.67% stake. The remaining stake is held by Habib Family, friends and associates. | |
Governance | The Company has six directors on the board including CEO and chairman. There are five non-executive directors and one executive director. | |
Management and Client Services | The Company has well developed organizational structure to manage its operations and appropriate policies to protect the client's interest and to preserve their good faith and trust. | |
Internal Controls and Regulatory Compilance | The Company has an in-house internal audit department, which monitors implementation of the policies and procedures of AHCML . Audit Committee further ensures an effective control environment. | |
Business Sustainability | The topline of the Company is concentrated in the equity brokerage income which clocked in at ~PKR 94mln at end CY20 (CY19: ~PKR 41mln). | |
Financial Sustainability | Due to low leveraging, capitalization indicators are considered strong. The Company has proprietary investments, mostly in GoP securities, hence exposed to some market risk. |
Key Rating Drivers |
About the Entity | |
Legal Structure | Private Limited |
Year of Establishment | 23-Aug-05 |
Type of License | Trading and Self-clearing |
Majority Ownership | Bank AL Habib Limited |
Regulatory Disclosures | Analyst | Applicable Criteria | Related Research |
Afnan Iqbal afnan.iqbal@pacra.com +92-42-35869504 www.pacra.com |
Methodology | Broker Fiduciary Rating | Jan-21 |
Sector Study | Brokerage & Securities | Jan-21 |
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. |