Press Release
VIS Reaffirms Broker Management Rating of BMA Capital Management Limited
Karachi, August 08, 2025: VIS Credit Rating Company Limited (VIS) has Reaffirmed the Broker Management Rating of BMA Capital Management Limited (‘BMA’ or ‘the Company’) at BMR2++. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on February 01, 2024.
The rating signifies strong client relationship management, HR & IT services and compliance levels, sound internal and external controls, supervision framework, while regulatory framework and financial management are considered adequate.
BMA Capital Management Limited, with three decades of experience, has been engaged in provision of equity brokerage services with presence in commodity, fixed income and forex segments. Additionally, economic research and corporate financial advisory are other value-added services offered by the Company. Headquartered in Karachi, the brokerage house has a nation-wide network of total 20 branches. The Company holds a Trading Right Entitlement Certificate (‘TREC’) for Trading & Self Clearing Services issued by the Pakistan Stock Exchange Limited (‘PSX’). External auditors of the Company are RSM Avais Hyder Liaquat Nauman Chartered Accountants. Auditors are on the approved list of auditors published by the State Bank of Pakistan (‘SBP’).
Assigned rating takes into account the Company’s regulatory and supervisory framework, wherein expanding the board size along with the inclusion of independent and certified directors may enhance the governance structure and support a more diverse composition across board committees. Internal control framework of the Company is considered strong. However, increasing the frequency of reviews and documentation of the internal control system, alongside broadening the scope of internal policies, may be considered for further strengthening this framework. Rating further incorporates the Company's client relationship and fairplay, supported by a broad geographical presence, client facilitation tools, and available research resources. Contingency measures of the Company are well in place, with offsite backups under own control as well as outsourced to a third-party warehouse. Compliance and risk management of the Company is considered strong, with procedures in place for reviewing non-compliant and suspicious trades, along with credit limits extended to a small number of clients.
Assessment of the Company’s financial profile reflects a rebound in profitability in FY24, which remained persistent in 6MFY25, driven by increased brokerage revenue amid higher market activity. Consequently, operational efficiency improved, with the cost-to-income ratio reaching a moderate level. The liquidity profile is considered adequate, while market risk is limited. The gearing ratio of the Company also improved, while leverage ratio remained elevated. Additionally, the Company’s equity base has grown in line with increased profitability, thereby supporting its capitalization profile. Going forward, diversification in revenue streams, along with improvements in liquidity, efficiency, and leverage indicators, will be important for the rating.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Broker Management Ratings:
https://docs.vis.com.pk/Methodologies%202024/Broker-Management.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf