PACRA Maintains Broker Management Rating of Intermarket Securities Limited (Formerly: EFG Hermes Pakistan Limited)

Intermarket Securities Limited (“IMS” or “the Company”) maintains a management rating reflecting the ability of its leadership to navigate a period of structural transition while preserving operational continuity and strategic oversight. The court-sanctioned reverse merger, effective July 1, 2024, consolidated operations under the IMS sponsor group, enabling management to retain day-to-day control, enforce governance standards, and oversee post-merger integration effectively. FY25 represents a transitional six-month period, while 1QFY26 marks the first normalized quarter under the post-merger structure. Management successfully leveraged a broadly stable macroeconomic environment in Pakistan, characterized by easing inflation (FY25: 4.5% vs. FY24: 23.4%), falling policy rates (20.5% → 10.5% as of Dec’25), and moderate GDP growth (~2.7%), which collectively supported elevated market activity and investor participation at the Pakistan Stock Exchange (PSX). External factors such as increased exports, higher remittances, and a strengthening PKR further reinforced liquidity and trading confidence. Within this environment, IMS scaled core operations comprising equity brokerage, margin financing, and proprietary investments, with proprietary positions rising to PKR ~498mn (~29% of equity). Operational processes, including execution, settlement, and exposure management, are centralized and routed through NCCPL and CDC, embedding standardized controls and reducing operational and counterparty risk, reflecting management’s capacity to enforce disciplined risk frameworks amid a dynamic market. Financial performance strengthened alongside favorable market conditions, with FY25 operating revenue of ~PKR 644mn and profit after tax of ~PKR 155mn, improving further to revenue of ~PKR 394mn and PAT of ~PKR 210mn in 1QFY26. Equity rose to PKR ~1.71bn, supported by internal capital generation, while short-term borrowings of PKR ~931mn funded margin-financing and settlement requirements. Management ensured liquidity buffers remained adequate, capitalization supported absorption of market and credit exposures, and credit, market, and liquidity risks were actively monitored within governance-approved limits. Margin-financing receivables totaled ~PKR 1.13bn, and trade debts were ~PKR 717mn as of 1QFY26. These positions are actively monitored within governance-approved limits, ensuring fiduciary discipline and operational resilience.
Sustained governance oversight, continuity and depth of the senior management team, and disciplined execution across operations, risk, and compliance will support maintenance of the management rating. Continued enhancements in process automation, digital controls, and human capital capabilities are expected to strengthen operational resilience and fiduciary standards.

About the Entity
Intermarket Securities Limited (“IMS”) was incorporated on September 27, 1999, and is a public listed company on the Pakistan Stock Exchange Limited since March 20, 2008. Effective July 1, 2024, IMS completed a court-sanctioned reverse merger with EFG Hermes Pakistan Limited, consolidating the operating platform under the IMS sponsor group. The Company operates as a full-service brokerage platform, providing equity brokerage, margin financing, proprietary investments, investment banking and advisory services, and equity and economic research. IMS is led operationally by CEO Mr. Wajid Hussain, who brings over 25 years of experience in capital markets, and is chaired by Ms. Erum Bilwani, sponsor and non-executive director, ensuring strategic oversight and governance continuity.