PACRA Maintains Broker Entity Ratings of Trust Securities & Brokerage Limited

Trust Securities & Brokerage Limited (“TSBL” or “the Company”) has continued to strengthen its presence in both equity and commodity brokerage, with a growing focus on diversifying its client base across retail, HNWIs, and institutional segments. Industry dynamics during 9MFY25 have remained favorable, supported by stable interest rates, moderating inflation, and improved macroeconomic indicators, with the KSE-100 Index breaching the 121k mark in June 2025. This has translated into healthy trading activity, with volumes sustaining an upward trend. TSBL’s revenue grew by ~17% during 9MFY25, reaching ~PKR 190mln (SPLY: ~PKR 163mln). However, profitability declined to ~PKR 11mln during the period (SPLY: ~PKR 84mln), largely on account of elevated operating expenses, further compounded by the dual booking of tax expenses relating to PRA, SRB, and FBR, as highlighted by the management. The Company maintains a sound equity base of ~PKR 374mln at 9MFY25 (SPLY: ~PKR 363mln), while capitalization levels remain adequate with an LCB of ~PKR 206mln. Market risk is considered minimal as TSBL has limited exposure to proprietary trading and maintains a conservative investment stance. The assigned ratings draw comfort from the business acumen of the sponsoring group, an experienced management team, and a governance framework that ensures accountability through independent directors and board-level committees. TSBL has a structured organizational setup with clear reporting lines, while outsourcing of internal audit and the presence of a dedicated risk management department strengthen the overall control environment. The management is actively pursuing strategic initiatives, including the expansion of its research and advisory services, investment in digital platforms, and geographical outreach, which are expected to support long-term business sustainability.
Going forward, sustainability of revenue, improvement in profitability, and diversification of income streams will remain critical for rating progression. Continued strengthening of governance, effective risk management practices, and retention of key management personnel will also be vital to support the Company’s business and financial profile.

About the Entity
Trust Securities & Brokerage Limited (“TSBL” or “the Company”) is a licensed TREC holder of the Pakistan Stock Exchange, incorporated in 1993 under the Companies Ordinance, 1984. The Company’s shareholding is led by Mr. Junaid Shehzad Ahmed (26.93%) and Mr. Muhammad Khurram Faraz (16.03%), alongside other institutional and individual investors. The Board comprises seven directors, including the Chairperson, Mrs. Zenobia Wasif. The CEO, Mr. Abdul Basit, has been associated with TSBL for over 27 years and brings extensive experience in the capital markets, supported by a qualified management team overseeing key functions.