December 30, 2019 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

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Broker Management Rating of EFG Hermes Pakistan Limited represents its association with EFG Group, an international financial services group and its emerging position in Pakistan's brokerage industry. The rating reflects strong sponsor support and governance, growing market share, matrix reporting organizational structure and experienced management team of the Company.

EFG Hermes Pakistan has a well-developed organizational structure, with clear reporting lines for respective heads at the group level. It is the first brokerage house in the country with a designated foreign sales team operating from UAE office. The research department draws strength from the experience of EFG Group as the Company emphasize on providing high quality market reports to its clients in a systematic way. The IT infrastructure allows full integration of the front and back office functions, allowing generation of real time reports. As a group policy, the Company does not invest in equity market and all investments have been deployed in government backed debt securities.

The profitability of the Company remained under pressure due to low trading volumes. Meanwhile, the Company has NCB of ~PKR 367 mln at end June-2019 depicting adequate capitalization. The rating is dependent upon the management's strategy to improve market share and profitability by leveraging its brand. Retention of key human resource and upholding strong controls remains critical for the rating.

For more information, contact:Analyst,The Pakistan Credit Rating Agency Limited (PACRA)Awami Complex, FB1, Usman Block New Garden Town,Lahore, PakistanTel: +92-42-5869504-6Fax: +92-42-5830425Email: hammad.rashid@pacra.comWebsite: www.pacra.com

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© Pakistan Press International, source Asianet-Pakistan