Bank Alfalah Limited (BAFL), one of Pakistan’s leading commercial banks, has officially completed the sale of a 95.59% stake in its brokerage subsidiary, Alfalah Securities (Private) Limited, to Optimus Capital Management (Private) Limited (OCM) for a total cash consideration of Rs 313 million. The transaction marks a significant shift in the bank’s strategic direction, as it steps away from the brokerage business to focus on its core banking operations.
The sale, conducted through a share purchase agreement involving 324.999 million shares, was finalized after the deal received approval from the Competition Commission of Pakistan in January 2025 and met all customary closing conditions by March. Bank Alfalah will retain a nominal 4.41% stake in Alfalah Securities, ensuring compliance with applicable regulatory frameworks.
This transaction represents more than just a balance sheet adjustment—it signals the bank’s deliberate move to exit a highly volatile ancillary business and pass the reins to an independent and aggressive player in the capital markets. Optimus Capital, a well-known name in Pakistan’s brokerage industry, is expected to leverage this acquisition to strengthen its footprint and consolidate market share.
While modest in rupee terms, the Rs 313 million sale reflects broader market trends. Alfalah Securities, originally seen as a strategic extension of the bank’s service offerings, has faced inconsistent performance over the years. Since its establishment, the brokerage unit experienced a dramatic rise in revenues—from a small base in 2014 to Rs 721 million in 2024—representing a remarkable compound annual growth rate (CAGR) of 74%. However, this explosive growth was accompanied by volatility and instability, with five of the eleven years recording either negative or single-digit revenue gains.
Profitability remained elusive for much of the brokerage’s operational history. Alfalah Securities turned a net profit in only three of the past eleven years—2017, 2020, and 2021—while averaging an annual net loss of Rs 23 million. The low point came in 2023 when the firm reported a staggering loss of Rs 197 million, attributed to mis-trades on its proprietary book amid a steep equity market downturn. This massive setback nearly wiped out the company’s retained earnings and necessitated a fresh capital injection from Bank Alfalah.
For Bank Alfalah, the decision to divest is rooted in pragmatism. Maintaining a brokerage unit with unpredictable performance and limited synergy with core banking operations proved unsustainable. The sale allows the bank to reallocate capital and managerial focus to its mainline financial services, while still maintaining a symbolic regulatory foothold in the securities market.
On the other side, Optimus Capital’s acquisition of Alfalah Securities positions it as a stronger, more diversified brokerage house with the capacity to offer expanded services and tap into new client segments. With operational control now in Optimus’ hands, the focus will likely shift toward operational efficiency, improved risk management, and leveraging economies of scale.
The deal underscores a broader trend in Pakistan’s financial services landscape, where large banks are refocusing on high-margin, core operations, while independent players aim to scale up by absorbing specialized verticals. It also reflects evolving investor confidence in standalone capital market firms that can remain agile and responsive amid market volatility.
As the dust settles on this transition, all eyes will be on Optimus Capital to see how it reshapes the future of the newly acquired brokerage entity and whether it can succeed where a major bank chose to exit.