Press Release

VIS Upgrades Broker Management Rating of BMA Capital Management Limited

Karachi, February 1, 2024: VIS Credit Rating Company Limited (VIS) has upgraded the Broker Management Rating of BMA Capital Management Limited (‘BMA’ or ‘the Company’) from BMR2+ to BMR2++. Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on October 04, 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’).

Rating upgrade signifies further strengthening of internal and external control framework, client relationship, fair play, compliance and risk management. Supervision framework is considered sound while regulatory compliance and financial management are considered adequate.

At present, the Company’s board comprises of three members with no independent representation. Increasing the board size along with independent representation may further enhance its governance framework. Moreover, the Company has four board committees, namely audit, HR, investment and risk management committee.

Rating upgrade also incorporates operational independence of the internal audit and compliance functions. Adequate disclosure levels have reinforced the Company's external control framework, complemented by well-established internal policies and procedures. The organizational structure aligns with the scale of operations. Enhancing contingency measures could involve outsourcing offsite backups to a third-party warehouse. Credit limits, extending up to four times the deposit margin for retail customers and unlimited for institutional customers having clearing membership, are in place. Procedures for reviewing non-compliant and suspicious trades exist.

In FY23, the Company 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, improvement in efficiency ratio, liquidity metric, capitalization indicators as well as augmentation in the revenue base will remain important considerations for rating.

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: Broker Management Ratings:
VIS Issue/Issuer Rating Scale

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