Press Release

JCR-VIS Reaffirms Broker Management Rating of BIPL Securities Limited

Karachi, December 28, 2018: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed the Broker Management Rating of BIPL Securities Limited (BIPLS) at ‘BMR2+’. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on October 17, 2017.

The rating signifies strong external controls and regulatory compliance levels; sound HR & IT services, client relationship and risk management along with the adequate internal control framework and financial management.

The rating continues to factor in sound corporate governance and regulatory compliance supported by defined policy framework. Further improvement in board level governance was witnessed during the outgoing year with independent directors chairing the Board of Directors (BoD) and Board Audit committee (BAC).

In order to enhance internal controls, BIPLS carried out changes at functional level with the division of front and back office to improve reporting line clarity, strengthen transparency and reduce cost inefficiencies. Improvement in policy review intervals would enhance the control environment. Sizeable retail client base is a competitive advantage; however, weak market performance and lower trading volumes exerted pressure on earnings profile. Furthermore, diversification in revenue stream is considered important. Going forward, financial performance would remain sensitive to the volatility of local stock market and is subject to risks associated with it.

For further information on this rating announcement, please contact the undersigned (Ext: 207) at (021)35311861-71 or fax to (021)35311872-3.

Jamal Abbas Zaidi

Applicable Rating Criteria: Broker Management Ratings 2017

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 not an NRSRO and its credit ratings are not NRSRO credit ratings.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 2018 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited