Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the broker entity ratings for Trust Securities and Brokerage Limited (TSBL), reflecting its sustained position in equity and commodity brokerage amidst fluctuating economic conditions.

According to The Pakistan Credit Rating Agency Limited, TSBL, which holds about a 2% market share, has seen its revenue climb to approximately PKR 164 million in the first nine months of fiscal year 2024 from PKR 121 million in the same period last year. The company’s profitability has also markedly improved, with a profit after tax of approximately PKR 84 million compared to PKR 22 million during the same period last year. This growth is attributed to gains from short-term investment sales and increased brokerage income.

Despite challenging economic conditions in Pakistan, including political uncertainty and high inflation that impacted the industry in fiscal years 2022 and 2023, TSBL has experienced a rebound in market activity and investor sentiment since the second half of FY24. The company benefits from a low-leveraged capital structure, with an equity base of approximately PKR 363 million as of March 2024, up from PKR 312 million the previous year.

TSBL’s strategic response includes leveraging its increasing market presence in the Pakistan Mercantile Exchange to enhance its revenue. Future plans also consider geographical expansion and technology platform upgrades to further bolster its position. The company underscores the importance of maintaining strong internal controls, retaining key management personnel, and rigorously monitoring risks to sustain its growth trajectory.