Bank Alfalah Ltd (BAFL) has completed the sale of 95.59% of the issued share capital of its wholly owned brokerage arm, Alfalah Securities (Private) Ltd, to Optimus Capital Management (Private) Ltd (OCM) for Rs 313 million in cash, following clearance from the Competition Commission of Pakistan in January and fulfilment of customary closing conditions in March.
The transaction, executed through a share‑purchase agreement covering 324.999 million shares, transfers operational control with immediate effect; BAFL retains a nominal 4.41% stake for regulatory continuity.
For Pakistan’s equity‑market ecosystem the sale is modest in rupee terms but significant for what it signals: the orderly retreat of a universal bank from a volatile ancillary business and the simultaneous rise of an aggressive independent brokerage looking to consolidate market share.
Why would Bank Alfalah want to sell? Some potential reasons include explosive but uneven revenue growth: From a tiny base in 2014 to Rs 721 million in 2024, the compound annual growth rate works out to 74%—yet five of the eleven years registered negative or single‑digit growth.
The firm reported a net profit in only three of the past eleven years (2017, 2020, 2021). Average annual bottom‑line result: a loss of Rs 23 million. Finally, the annus horribilis of 2023: A Rs 197 million loss—linked to proprietary‑book mis‑trades and a sharp equity‑market draw‑down—erased nearly all retained earnings and forced BAFL to inject fresh capital. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
