Press Release

VIS Reaffirms Entity Ratings of BMA Capital Management Limited

Karachi, February 1, 2024: VIS Credit Rating Company Limited (‘VIS’) has reaffirmed entity ratings of BMA Capital Management Limited (‘BMA Capital’ or ‘BMA’ or ‘the Company’) at ‘A-/A-2’ (‘Single A Minus/A-Two’). Long-term rating of ‘A-’ reflects good credit quality with adequate protection factors. Risk might fluctuate depending on the state of the economy. Short-term rating of ‘A-2’ signifies good certainty of timely payment where liquidity factors are sound and good access to capital markets. Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on October 18, 2022.

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 ratings take into account sustained market share as well as the financial profile of the Company. In FY23, BMA faced losses due to a contraction in brokerage revenue. However, in 1HFY24, increased market activity spurred brokerage revenue, enhancing profitability. BMA's efficiency improved, albeit remaining elevated during this period. The Company maintained an adequate liquidity profile, and market risk sustained at moderate levels. In 1HFY24, the Company's equity increased in line with reported profits, leading to reduced gearing, however, the leverage ratio remained elevated.

Going forward, maintenance of liquidity and capitalization indicators, market risk and further improvement in the Company’s operational profile along with augmentation of revenues will remain key rating drivers.

For further information on this ratings announcement, please contact Saeb Muhammad Jafri at 021-35311861-64 (Ext. 202) and/or the undersigned at 021-35311861-64 (Ext. 201) or email at

Javed Callea

Applicable Rating Criteria: Securities Firms:
VIS Issue/Issuer Rating Scale

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 2024 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .