Press Release
VIS Reaffirms Broker Fiduciary Rating of AKD Securities Limited
Karachi, July 29, 2025: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Fiduciary Rating of AKD Securities Limited ('AKDSL' or 'the Company') at ‘BFR2++’. Outlook on the assigned rating is ‘Stable’. Last rating action was announced on May 15, 2024.
The rating signifies strong regulatory compliance, client ownership and governance, management and client services and business and financial sustainability while internal controls are sound.
Listed on the Stock Exchange, AKDSL is licensed to operate as securities broker, consultant to the issue, and underwriter from the Securities Exchange Commission of Pakistan and holds a Membership card of Pakistan Mercantile Exchange Limited. The principal activities of the Company are brokerage of shares and/or commodities/ money market / forex trading, financial research, book building, underwriting, investments in securities/commodities, corporate advisory and consultancy services. AKDSL is registered with Securities & Exchange Commission of Pakistan (SECP) and holds a Trading and Self-Clearing (TSC) license and Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange Limited (PSX). Moreover, the company also holds underwriting and corporate advisory licenses. External auditors of the company are RSM Avais Hyder Liaquat Nauman Chartered Accountants. External auditors are from Category ‘A’ of State Bank of Pakistan’s list of auditors.
Reaffirmation of rating takes into account the confirmation by the management of the ongoing rectification of the non-compliances that were highlighted during the joint inspection. The assigned rating also reflects the Company’s governance structure, comprising a seven-member board of directors, with two independent directors, and the presence of three committees, namely audit, investment, and human resource. Internal controls of the Company are considered sound, supported by documented policies. However, further enhancement may be achieved by enhancing their scope and ensuring wider dissemination of these policies to all relevant stakeholders.
Rating also incorporates the Company’s financial profile. During FY24 and 9MFY25, the Company’s operating revenue posted strong growth, driven primarily by a sizeable growth in the Company’s brokerage revenue, in line with the positive industry trend. While income from other advisory and custody service exhibited robust growth, brokerage revenue continues to dominate the revenue mix. Consequently, the Company’s cost-to-income ratio depicted a notable improvement. Liquidity profile of the Company is considered adequate and market risk is considered on the lower side. Growth in the Company’s equity size along with low debt profile provides support to the Company’s capitalization profile. Going forward, maintenance of operational efficiency, liquidity, and capitalization profile will be important for the rating.
For further information on this rating, please contact 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Broker Fiduciary Ratings:
https://docs.vis.com.pk/Methodologies%202024/Broker-Fiduciary-Rating.pdf
VIS Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf