PACRA Maintains the Broker Management Rating of Trust Securities & Brokerage Limited

Trust Securities & Brokerage Limited ("TSBL" or "the Company") continues to benefit from the business acumen of its key sponsors and an experienced, stable management team, supporting strategic direction and execution. Mr. Junaid Shehzad Ahmed holds a 24% stake, with the balance held by other directors and shareholders. The seven-member Board, chaired by Mrs. Zenobia Wasif, includes independent directors, ensuring governance oversight; the Board is further supported by Audit and HR & Remuneration Committees, both chaired by independent directors, while outsourced internal audit strengthens accountability. TSBL's management team is led by Mr. Abdul Basit (CEO), associated with the Company for over two decades, supported by structured management committees that enhance operational effectiveness and bring deep, long-standing experience across capital markets.Management has built a well-defined control environment, with dedicated functions covering key operational and support areas, while the underlying board-approved policies could benefit from further refinement over time. A clean CDC audit outcome, together with the Company's growing research capabilities, reinforces external credibility and supports future revenue diversification. Management's focus on client relationships is reflected through online, mobile, and branch-based account opening channels, backed by responsive customer service and complaint management; clientele has grown meaningfully, supported by favorable market sentiment and management's business development efforts. Enhanced public disclosures further reflect management's commitment to transparency. Pakistan's brokerage industry operated in a favorable environment during CY25, supported by improving macroeconomic fundamentals, easing inflation, and stronger investor participation. Management effectively aligned the Company's strategy and took exposure in short-term investments; however, heightened regional geopolitical tensions during 1QCY26 adversely affected investor sentiment and market activity, impacting trading volumes and earnings, which translated into a loss after tax of PKR 35 million during the quarter. Nonetheless, operating revenue rose to PKR 322.6 million in 9MFY26, up ~70% YoY, driving nine-month PAT to PKR 34.2 million versus PKR 11.7 million. However, elevated operating expenses resulted in an operating loss of PKR 27.3 million, and the cost-to-income ratio, though still elevated, improved to ~93% (SPLY: ~106%). Market risk exposure has expanded but remains manageable, overseen by management's Investment Decision-Making Committee against defined exposure limits. Capitalization strengthened via a PKR 450 million right share subscription, taking equity to PKR 866.6 million as of Mar'26, with the current ratio improving to ~2.87x.
Going forward, the rating remains dependent on management’s ability to sustain revenue and profitability, improve operating efficiency, diversify income, monetize research capabilities, and maintain oversight of market and proprietary investment risks.

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 (24.13%) and Mr. Muhammad Khurram Faraz (4.12%), 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.