Rating Details	Rating Type	BFR
	Dissemination Date	Current (01-Oct-26 )	Previous (01-Oct-25)
	Action	Maintain	Initial
	Rating	BFR 2	BFR 2
	Outlook	Stable	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership	UBL Financial Services (Pvt.) Ltd. ('UFSL' or 'The Company') is a wholly owned subsidiary of UBL Fund Managers Limited, ultimately backed by United Bank Limited, one of Pakistan largest banks by market capitalization, providing strong sponsor and financial support.
	Governance	The Board of UFSL comprises three members: Ms. Fatima Shahzad (Chairperson/Nominee Director), Mr. Hadi Hassan Mukhi (Nominee Director), and Mr. Syed Ahmad Abbas Zaidi (Independent Director). The Board brings expertise across risk management, compliance, governance, and capital markets.
	Management and Client Services	UFSL is supported by an experienced and gradually expanding management team, complemented by parent level expertise and shared services. Client servicing is facilitated through branch operations and an operational website, with the UBL Invest app under development.
	Internal Controls and Regulatory Compliance	UFSL maintains a defined control and compliance framework aligned with SECP requirements, supported by requisite policies, AML/CFT and KYC/CDD procedures, risk oversight, and regulatory monitoring.
	Business Sustainability	UFSL generated PKR 62mln in brokerage revenue and PKR 20.6mln PAT during 1HCY26. Sustainability is supported by growing brokerage operations, sponsor backing, expanding client outreach, and ongoing digital development.
	Financial Sustainability	UFSL financial sustainability is supported by UBL Fund Managers Limited formal Letter of Comfort, providing capital and liquidity support. The Company maintains an adequate financial buffer, with equity of PKR 295mln and LCB of PKR 173.9mln as of Jun26.

Key Rating Drivers

The rating reflects UFSL strong sponsorship from the UBL Group, adequate capitalization, comfortable liquidity, and evolving brokerage franchise. Fiduciary practices across client servicing, compliance, and risk management remain central to the rating, supported by parent level expertise and shared services. Going forward, strengthening research capabilities, digital integration, client diversification, market positioning, and operational controls will remain important. Sustained profitability, regulatory compliance, adequate liquid capital, and sound fiduciary practices will remain critical to the rating trajectory over the medium term.

About the Entity
	Legal Structure	Private Limited
	Year of Establishment	27-Feb-14
	Type of License	Trading and Self-clearing
	Majority Ownership	UBL Fund Managers Limited

Regulatory Disclosures	Analyst	Applicable Criteria	Related Research
	Ayesha Tayyab ayesha.tayyab@pacra.com +92-42-35869504 www.pacra.com	Assessment Framework | Broker Fiduciary Rating | Jan-26 Methodology | Rating Modifiers | Apr-26	Sector Study | Brokerage Firms | Feb-26

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.