Lahore, August 26, 2023 (PPI-OT): IGI Finex Securities Limited (‘IGI’ or the ‘Company’) is a wholly owned subsidiary of IGI Holdings Limited and is engaged in the provision of equity and commodity brokerage. The ratings incorporate the business acumen and financial strength of the sponsoring group. The assigned rating takes into account a sound ownership structure. The ratings signify a strong internal control framework supported by an outsourced internal audit function, a dedicated risk and compliance department, and the presence of all requisite policies and manuals.
A qualified and experienced management team is present to ensure smooth operations, with a well-defined organizational structure in place. IGI provides its clients with research, online trading, and online complaint facilities. The governance structure is considered adequate with the presence of two non-executive directors and board-level committees well-noted. IGI does not partake in proprietary trading, thus exposure to market risk is limited.
The Company aims to further solidify its presence in the market by focusing on the untapped retail segment. The topline of IGI is concentrated to equity brokerage and financial income on saving deposits. The Company earned brokerage revenue of ~PKR 54mln during 1HCY23 (SPLY: ~PKR 67mln), wherein the decline is in-line with the dip in market volumes. IGI supported its operations through interest income earned on savings account of ~PKR 146mln to generate a profit of ~PKR 86mln during 1HCY23 (SPLY: ~PKR 5mln). The Company’s equity base stood at ~PKR 409mln at End-Jun’23.
Moving forward, improvement and diversification in core income, sustainability of market share and profitability, and materialization of planned business strategies remain critical. Meanwhile, upholding strong internal controls, sound governance structure, retention of key management personnel, and diligent monitoring of risks is important.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com
The post PACRA maintains Broker Management Rating of IGI Finex Securities Limited appeared first on Pakistan Business News.