Press ReleasePACRA Maintains Broker Fiduciary Rating of Arif Habib Limited
|Current (16-Dec-22 )
|The Company is primarily corporate backed where ~63% stakes lies with Arif Habib Corporation Limited. Whereas, the general public hold ~25% of the shares.
|Being a listed entity, the governance framework is robust, backed by a board of 7 members including 4 non-executive and two independent directors.
|Management and Client Services
|The management team comprise of seasoned professionals with proper departmentalization and defined roles.
|Internal Controls and Regulatory Compliance
|AHL has a strong control environment supported by in-house internal audit department reporting directly to the Audit Committee.
|Revenue from equity brokerage and advisory declined by ~31% YoY in FY22. The performance is commendable in the backdrop of ~45% decline in market volumes.
|The credit risk is negligible as evident from the trade receivables comprising of merely ~10% of equity at end-Jun'22. Exposure to market risk has increased due to a significant addition in the propri
|Key Rating Drivers
|About the Entity
|Year of Establishment
|Type of License
|Trading and Self-clearing
|Arif Habib Corporation Limited
| Afnan Iqbal
Methodology | Broker Fiduciary Rating | Jan-22
Sector Study | Brokerage & Securities | Jan-22
|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.