Press Release

VIS Reaffirms Broker Management Rating of BMA Capital Management Limited

Karachi, May 21, 2021: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Broker Management Rating of BMA Capital Management Limited (BMA) at ‘BMR2+’. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on March 27, 2020.

The rating signifies strong client relationship management and compliance levels, sound internal and external controls, HR & IT services while regulatory framework and financial management are considered adequate.

Reaffirmation of the rating factors in BMA’s established market position in securities broking business and strong retail clientele. During FY20, total number of clients grew by 50%. Overall improvement in stock market has increased net capital balances and improved profitability. Despite increase in trading volumes, BMA sustained its market share with slight improvement. On the regulatory front, board size may be increased to align supervision framework with best governance practices and for the facilitation of formation of a risk management committee. External control framework may be further enhanced by including director’s report and statement of compliance with code to the annual financial statements of the company. Rating also takes note of strong relationship with customers and HR & infrastructure. During the year, increase in trade value generated from Institutional Delivery System (IDS) has further strengthened compliance and risk management levels. Moreover, frequently practicing disaster recovery exercises and reviewing internal policies and manuals would add to business continuity framework.

Assessment of financial profile indicates considerable improvement in profitability profile during FY20. Utilization of running finance remained elevated which has weakened the leverage indicator during the period under review. Total recurring revenue was reported higher than total recurring expenses which have declined the efficiency ratio, though still remaining on the higher side. Going forward, sustainability of the same will be observed overtime.


For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 204) or the undersigned (Ext: 201) at (021) 35311861-66 or email at info@vis.com.pk






Javed Callea
Advisor

Applicable Rating Criteria: Broker Management Ratings 2020
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/BMR202007.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright May 21, 2021 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.