Press Release

JCR-VIS Reaffirms Broker Management Rating of BMA Capital Management Limited

Karachi, January 24th, 2019: JCR-VIS Credit Rating Company Ltd. (JCR-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 December 8, 2017.

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

The rating continues to factor in BMA’s strong internal control environment substantiated by well-defined and prudent policy framework; however, an independent ‘conflict of interest policy’ may be developed and shared with staff for effective implementation of the same. Quality of external control framework is considered sound. Furthermore, increase in board size and formation of board level Risk Management and Human Resources committee would add to governance levels.

Profitability indictors remained under pressure due to reliance on retail brokerage function and depressed market volumes during FY18. Efficiency ratio has also weakened considerably. Going forward, financial performance would remain sensitive to volatilities of 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 2019 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