Arif Habib's profits withstand fluctuations as capital markets and trading volumes suffer: PACRA

December 21, 2018 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained Broker Management Rating of Arif Habib Limited (AHL) at BMR1, with a stable outlook forecast.

According to the rating agency, rating reflects its leading position in the country’s brokerage industry emanating from an established franchise, deep relationship with a diverse customer base, and strong system share.

This is underpinned by its well-developed transactions execution and monitoring system, acclaimed research, strong control environment, and good governance framework.

The Company offers various value-added services to its clients including an online trading terminal, research portal, and mobile app.

A strong IT infrastructure emplaced under the proper guidance of IT steering committee ensures uniform efficiency. 

In addition to brokerage, AHL enjoys a distinct position in investment banking and advisory domain in Pakistan.

This provides deeper penetration into client base. Credit risk – customer’s receivables and funding – remain low.

In line with the capital market dynamics and lower trading volumes, AHL's profit has seen fluctuations in its operating income. 

The rating is dependent on upholding strong control and governance framework, continues update of client servicing tools, and careful monitoring of risks - mainly market and liquidity risks, and conflict of interest - emanating from investment activities.

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