Press Release
Date: 19-Sep-24
PACRA Maintains Broker Fiduciary Rating of Trust Securities & Brokerage Limited

Rating Details Rating Type BFR
Dissemination Date Current (19-Sep-24 ) Previous (19-Sep-23)
Action Maintain Maintain
Rating BFR 2 BFR 2
Outlook Stable Stable
Rating Watch - -

Rating Rationale Factor Comment
Ownership The assigned rating incorporates the business acumen of the primary sponsor. The Company's ownership is diversified among different individuals and entities, while major stakes are owned by the primar
Governance The governance framework is considered strong, supported by a board of seven members including two independent directors. Presence of Board level committees chaired by independent directors enhances o
Management and Client Services A qualified and experienced management is at the helm of the Company and has steered TSBL to its reputable position today. The client services are considered adequate with an online trading platform a
Internal Controls and Regulatory Compilance TSBL has separate internal audit and risk departments, which strengthens the internal control framework.
Business Sustainability During 9MFY24, TSBL experienced an increase form ~PKR 121mln in SPLY to ~PKR 164mln in brokerage revenue. The Company reported a PAT of ~PKR 84mln for 9MFY24, a notable improvement from the net profit
Financial Sustainability The Company has an adequate equity base of ~PKR 363mln at end-Mar'24 (SPLY: ~PKR 312mln). The market risk is minimal due to the Company's limited investment in equity securities amounting to ~PKR 20ml

Key Rating Drivers As a part of long-term strategic plans, TSBL will utilize its growing market renown in commodities brokerage to further support its topline. The improvement of the technological platform and geographical diversification is also under consideration. Going forward, the Company will focus on revenue diversification, geographical expansion, and the sustainability and enhancement of its market share. Meanwhile, it is imperative to maintain rigorous internal controls, retain key management personnel, and maintain profitability.

About the Entity
Legal Structure Listed
Year of Establishment 19-Oct-93
Type of License Trading and Self-clearing
Majority Ownership Mr. Junaid Shehzad Ahmed (27%)

Regulatory Disclosures Analyst Applicable Criteria Related Research
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com

Assessment Framework | Broker Fiduciary Rating | Jan-24

Sector Study | Brokerage & Securities | Jan-24

Disclaimer This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA. The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.