Karachi: The Credit Rating Agency (CRA) has maintained the Broker Fiduciary Rating (BFR) of Optimus Capital Management (Pvt.) Limited at BFR 2 with a stable outlook. The affirmation reflects the company's consistent performance and adherence to regulatory standards despite notable challenges in governance and management structure.

According to The Pakistan Credit Rating Agency Limited, "Optimus Capital Management, which is fully owned by Optimus Holdings (Pvt.) Limited, has demonstrated solid financial performance during FY24, marked by a net profit of approximately PKR 17 million. This performance was primarily driven by robust brokerage income, which increased from PKR 70 million in FY23 to about PKR 98 million in FY24." This growth highlights the company’s capability to sustain its revenue streams effectively in a competitive market.

The CRA's report also noted the need for improvements in governance, particularly after the recent resignation of Mr. Asif Ali Qureshi, which left the company with a board comprising only one executive director. The agency emphasized the importance of including independent directors to enhance governance structures.

Management stability and the quality of client services were highlighted as strengths, with the company benefiting from a lean organizational structure and a qualified team. Client services have been bolstered by a competent online sales department and a well-developed research department, supporting customer engagement and satisfaction.

Internally, Optimus Capital Management maintains a strong control framework with effective compliance and internal audit functions, ensuring adherence to regulatory standards. Financial sustainability is supported by a prudent approach to market risk, evidenced by the absence of proprietary investments and a zero-leveraged capital structure, with a substantial equity base of approximately PKR 318 million as of the end of June 2024.

Looking ahead, the CRA underscored the importance of maintaining top-line growth, diversifying revenue, and improving profitability. The need for retention of key management personnel and further separation of management roles to ensure continuity and stability in operations was also highlighted as critical for future rating considerations.