AL Habib Capital Markets Receives Initial Ratings Highlighting Robust Performance

KARACHI: AL Habib Capital Markets (Pvt.) Limited, a key player in Pakistan’s brokerage industry, has received initial long-term and short-term ratings of ‘A’ and ‘A1’, respectively, with a stable outlook, from the Pakistan Credit Rating Agency Limited (PACRA). The company has shown remarkable financial growth, reporting a profit after tax of approximately PKR 24 million during the first nine months of 2024, converting its previous year’s losses into gains.

According to a statement by The Pakistan Credit Rating Agency Limited, the company’s performance has been buoyed by a resurgent Pakistani stock market. Factors such as low market price-to-earnings ratios, declining interest rates, and improving macroeconomic indicators have fueled investor confidence, boosting trading volumes and presenting a positive outlook for the brokerage industry.

AL Habib Capital Markets leveraged these favorable conditions with effective marketing strategies, resulting in a significant 83% increase in brokerage revenue during the period. The company has limited market risk, with its proprietary investment book making up 28% of its equity as of September 2024, and primarily invests its excess funds in Pakistan Investment Bonds (PIBs).

The company’s capital structure reflects a leveraging of 31% at the end of September 2024, supported by an adequate equity base of approximately PKR 416 million. Ownership by Bank Al-Habib and the Habib family provides strong financial backing, while representation of the Bank on the board enhances the governance framework.

AL Habib Capital Markets is committed to advancing its technological infrastructure to improve retail client onboarding and plans to expand its geographical reach to increase market share. Looking ahead, maintaining market share, revenue, and profitability will be crucial, alongside retaining key management personnel and ensuring ongoing sponsor support.

The post AL Habib Capital Markets Receives Initial Ratings Highlighting Robust Performance appeared first on Pakistan Business News.