Trust Securities & Brokerage Limited (“TSBL” or “the Company”) was incorporated as a Public Limited Company on October 19, 1993, and is listed on the Pakistan Stock Exchange Limited (PSX). The Company is a Trading Right Entitlement Certificate (TREC) holder of PSX and also holds membership of the Pakistan Mercantile Exchange Limited (PMEX), enabling it to provide brokerage services across both equity and commodity markets. Over the years, TSBL has established a presence as a market participant, supported by its regulatory memberships and established market infrastructure. The Company primarily serves clients through its brokerage operations, facilitating access to capital market products and investment opportunities across the equity and commodity segments.

The Company operates through a network of eight branches across Karachi and Lahore, including its Head Office in Karachi. This footprint enables TSBL to cater to both retail and institutional clients across key capital-market centers. The Company’s principal business activity is equity brokerage, complemented by commodity brokerage services through its membership of the Pakistan Mercantile Exchange Limited (PMEX). TSBL currently operates as a “Trading and Self-Clearing” participant, enabling the Company to independently execute and settle trades through its own clearing arrangements. This structure provides greater control over the post-trade process and supports efficient management of settlement activities. The Company’s operations are supported by dedicated functions covering brokerage, risk management, compliance, research, customer support, and internal audit, providing functional coverage across its core business and control activities.

Trust Securities & Brokerage Limited (“TSBL” or “the Company”) is primarily owned by Mr. Junaid Shehzad Ahmed, who holds 24.16% of the Company’s paid-up capital, followed by Paramount Commodities (Pvt.) Ltd. (4.97%) and Mr. Muhammad Khurram Faraz (4.12%). The remaining shareholding is distributed among a diversified base comprising directors, investment companies, joint stock companies, banks, and Development Finance Institutions (DFIs). Overall, the Company has a relatively diversified ownership structure, with the largest individual shareholder maintaining a meaningful stake while the balance is dispersed among various institutional and individual shareholders.

The Company does not currently have a formalized shareholding agreement or documented succession plan in place. Continuity of ownership and management is primarily supported through established relationships and verbal understandings among key stakeholders. Mr. Abdul Basit, serving as Chief Executive Officer (CEO), continues to provide leadership to the Company and is expected to remain at the helm over the foreseeable future. While his continued stewardship provides near-term management stability, the absence of a formal succession framework results in a degree of key-person dependency. Formalization of succession arrangements would provide greater clarity and support continuity in the event of a change in senior leadership.

The primary sponsor, Mr. Junaid Shehzad Ahmed, possesses strong business acumen backed by global professional exposure and entrepreneurial ventures. He holds a bachelor’s degree in mechanical engineering from the United States, a dual-discipline Master’s degree in Management Science and Operational Research from the United Kingdom, and an MBA in Entrepreneurship and Finance, also from the UK. He began his professional career in finance and strategy at British Petroleum’s headquarters in London, before venturing into global businesses; since 2009 he has been involved in agro-businesses across the Middle East and Pakistan, alongside project management consultancy and a joint venture in a corporate finance advisory boutique. His diverse portfolio spans agro-business, real estate (local and international), consultancy, and corporate finance advisory, providing the Company with valuable strategic direction and market insight.

The primary sponsors demonstrate sound financial strength, supported by their diversified business interests both within Pakistan and abroad. Their willingness to inject additional equity into the Company was reflected in the successful completion of the PKR 450mln right share subscription during 9MFY26, underscoring continued sponsor support and financial backing

The Board of Directors of TSBL comprises seven members, including two Executive Directors and five Non-Executive Directors, of which two are Independent Directors. The Board consists of:

1. Ms. Zenobia Wasif (Chairperson/Non-Executive Director),

2. Mr. Abdul Basit (Chief Executive Officer/Executive Director),

3. Mr. Muhammad Shayan Ghayas (Executive Director),

4. Mr. Junaid Shehzad Ahmad (Non-Executive Director),

5. Mr. Khizer Hayat Farooq (Non-Executive Director),

6. WG CDR. Talat Mahmood (Retd.) (NonExecutive/Independent Director),

7. Mr. Muhammad Talha Razi (Non-Executive/Independent Director).

The presence of independent and non-executive directors supports effective oversight of management and contributes to a balanced governance structure. Their representation strengthens the Board’s oversight function and provides an additional layer of governance and accountability

The Board of Directors of TSBL comprises professionals with diverse experience spanning capital markets, financial services, corporate affairs, entrepreneurship, and business management. Mr. Abdul Basit (Chief Executive Officer) has been associated with the Company since 1994 and brings over two decades of experience in capital markets, brokerage operations, settlements, and corporate affairs. He has held various senior positions within TSBL before assuming the position of CEO in 2010. Ms. Zenobia Wasif (Chairperson) holds a bachelor’s degree and has extensive experience in corporate administration and business management, with a career spanning various organizations. Mr. Khizer Hayat Farooq (Non-Executive Director) is a Computing & Information Technology graduate from Staffordshire University, U.K., and has experience in financial markets, business development, and entrepreneurship. He also serves as Chairman of the Human Resource & Remuneration Committee of TSBL. WG CDR. Talat Mahmood (Retd.) (Independent Director) is a former Wing Commander of the Pakistan Air Force and holds academic qualifications from Karachi University and Air University, along with specialized training in governance and financial management. He currently chairs the Company’s Audit Committee. Mr. Muhammad Talha Razi (Independent Director) holds a Bachelor’s degree in Commerce and an MBA, with professional experience spanning financial markets, corporate administration, operations management, and compliance. Mr. Junaid Shehzad Ahmad (Non-Executive Director) possesses diverse academic and professional credentials, including degrees in engineering, management science, operational research, and entrepreneurship and finance. He has international experience in finance and strategy, including his association with British Petroleum, followed by entrepreneurial and corporate finance advisory ventures. Mr. Muhammad Shayan Ghayas (Executive Director) holds a BBA in Finance, a diploma in Capital Markets from IBA, and a Certified Director qualification from ICMA. He has over seven years of capital-market experience, with expertise in equity sales, client management, risk management, and marketing strategy

The Board demonstrates active engagement in the Company’s strategic and operational matters, as reflected in the quality and depth of discussions documented in the Board meeting minutes. The Board’s oversight is further supported by dedicated Audit and Human Resource & Remuneration Committees, both chaired by independent directors, providing focused oversight of financial reporting, internal controls, risk management, and key human resource matters. The presence of independent directors in key Board committees enhances objectivity and strengthens the overall governance and oversight framework of the Company.

TSBL’s external audit is conducted by Reanda Haroon Zakaria Aamir Salman Rizwan & Co., Chartered Accountants, a B-Category firm on SBP’s panel of auditors. Additionally, the internal audit function is outsourced to M. Adnan Siddique & Co., ensuring independent oversight and transparency in financial reporting.

The Company maintains a well-defined organizational structure with dedicated functions covering key areas of its brokerage and capital-market operations. The principal departments include: (i) Online Retail Brokerage, (ii) Institutional Brokerage, (iii) Risk Management, (iv) Sales & Marketing, (v) Economic Research, (vi) Compliance, (vii) Customer Support, and (viii) Internal Audit. The respective department heads report directly to the CEO, ensuring clear lines of responsibility and accountability across the organization. The Internal Audit function operates independently and reports to the Board Audit Committee, supporting effective oversight of internal controls and governance. The functional segregation across business, risk, compliance, and assurance areas provides an appropriate framework for managing the Company’s day-to-day operations and control environment.

The Company’s management team comprises experienced professionals with diverse expertise across capital markets, brokerage operations, finance, compliance, corporate affairs, and sales. Mr. Abdul Basit (Chief Executive Officer) has been associated with TSBL since 1994 and brings over two decades of senior management experience in capital markets and brokerage operations. He has held various key positions within the Company, including Settlements Manager, Company Secretary, General Manager, and Chief Operating Officer, before assuming the role of CEO in 2010. Mr. Muhammad Ahmed (Chief Financial Officer) has over 20 years of experience across finance, internal audit, and taxation, with exposure to multiple industries including manufacturing, trading, exports, and construction. He has completed his articleship with Riaz Ahmed & Co. Chartered Accountants and has also cleared accountancy and taxation examinations of the Institute of Chartered Accountants of Pakistan. Syed Maqsood Ahmad (Company Secretary) brings extensive experience in corporate affairs, legal matters, regulatory compliance, and company secretarial functions, with prior associations with prominent business groups, GlaxoSmithKline, law firms, and the Institute of Chartered Accountants of Pakistan. He holds qualifications including an M.A. in Economics, LLB, and fellowship of the Institute of Corporate Secretaries of Pakistan, in addition to being an Advocate of the High Court. Mr. Zeeshan Khanani (Head of Sales) has over a decade of experience in the securities brokerage industry, with expertise in equity dealing, client management, and sales, particularly serving high-net-worth individuals. Mr. Omaer Arif Sheikh (Head of Equity Operations & Corporate Sales) has over 15 years of experience in securities brokerage and wealth management, with a focus on equity sales for institutional, international, retail, and high-net-worth clients. He has held senior sales and research positions at various brokerage and investment management firms. Mr. Imran Alam (Head of Online Sales) has around 15 years of capital-market experience, including involvement in the development of online trading platforms, customer services, business development, and marketing. He has also held a senior role at Pakistan Stock Exchange, where he contributed to investor awareness and digital initiatives. Mr. Umar Farooq (Manager Institutional Sales) brings over three decades of experience in equity dealing and institutional sales. He has held various positions across leading brokerage firms and has been associated with TSBL since 2019, focusing on equity trading and institutional clients. Overall, the management team combines longstanding capital-market experience with specialized expertise across the Company’s core operating and control functions.

TSBL has established four senior management committees, namely the Management Committee, Investment Decision Making Committee, IT Steering Committee, and Risk Management Committee, to support effective oversight across key areas of the Company’s operations. These committees provide structured platforms for decision-making, facilitate coordination among senior management, and strengthen oversight of investment, technology, and risk-related matters. The committee structure also supports alignment of operational decisions with the Company’s strategic objectives, regulatory requirements, and risk management framework, thereby contributing to effective management oversight and execution.

TSBL has established an integrated technology infrastructure comprising front-end and back-end systems provided by Vision Max, an SECP-approved vendor. The integrated platform enables real-time information flow and monitoring across key operational and control functions, facilitating effective oversight of client positions, margin requirements, and compliance parameters. The Compliance and Risk Management functions utilize the system to monitor exposures and identify potential breaches on a timely basis, while the Operations Manager independently monitors transactions in real time. The combination of automated system-based controls and ongoing management oversight supports timely identification of exceptions, strengthens operational discipline, and reduces reliance on manual intervention

Pakistan's macroeconomic environment improved considerably during CY25, supported by progress under the IMF's Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF), easing inflation, a stable exchange rate, and strengthening external account indicators. Continued engagement with the IMF, coupled with the World Bank's long-term financing commitment, reinforced investor confidence and contributed to an increase in the SBP's foreign exchange reserves. During the year, the SBP adopted a relatively accommodative monetary policy stance, reducing the policy rate from 13.0% to 10.5% as inflation moderated, while maintaining a cautious approach amid evolving external sector risks and geopolitical developments. Despite temporary disruptions from monsoon floods and regional geopolitical tensions, inflation remained within manageable levels and the PKR remained broadly stable against the U.S. dollar. The improving macroeconomic backdrop translated into a strong performance for Pakistan's equity market during CY25. Average daily trading volumes increased to approximately 796 million shares from 567 million shares in CY24, while average daily traded value rose by 62% YoY to PKR 35.8 billion (CY24: PKR 22.2 billion), reflecting heightened investor participation and improved market liquidity. Although foreign investors remained net sellers during the year, the outflows were largely absorbed by domestic institutional investors, including mutual funds, banks, DFIs, insurance companies, brokers, and other organizations. The favorable market environment supported higher brokerage activity, resulting in improved commission income and stronger business volumes across the industry. During 1QCY26, the equity market remained active and continued to benefit from positive investor sentiment, supported by macroeconomic stability, continued progress under the IMF program, and expectations of sustained economic recovery. However, market volatility increased towards the end of the quarter amid heightened regional geopolitical tensions, particularly the Iran-Israel/US and broader Middle East conflict, which led to a temporary spike in international oil prices and cautious investor sentiment. Going forward, the operating environment is expected to remain dependent on macroeconomic stability, the continuation of structural reforms under the IMF program, monetary policy direction, geopolitical developments, and the sustainability of investor confidence.

The Company maintains a meaningful presence in the brokerage market, with a market share of approximately 3% in terms of trading volume. While the Company remains a mid-sized market participant, its sustained share reflects an established client base and consistent presence across the capital-market ecosystem.

TSBL’s operating revenue increased significantly to PKR 322.6mln in 9MFY26, up 69.7% YoY from PKR 190.2mln in SPLY, primarily driven by higher brokerage activity on PSX amid increased market volumes. PSX brokerage income rose to PKR 285.7mln (SPLY: PKR 161.3mln), while transaction charges from clients increased to PKR 28.8mln (SPLY: PKR 14.7mln). In contrast, brokerage income from PMEX declined to PKR 8.0mln (SPLY: PKR 13.7mln). The growth in core PSX brokerage income reflects improved trading activity and demonstrates the Company’s ability to benefit from favorable market conditions. Going forward, sustaining brokerage-led revenue growth while developing ancillary revenue streams, including advisory and research services, will remain important for further diversifying the revenue base.

Despite strong revenue growth, TSBL’s operating and administrative expenses increased to PKR 300.9mln in 9MFY26 from PKR 202.3mln in SPLY, resulting in an operating loss of PKR 27.3mln (SPLY: PKR 9.3mln). The cost-to-income ratio improved to approximately 93% from 106%, indicating some improvement in operating efficiency; however, the ratio remains elevated and continues to constrain operating profitability. The Company also recorded PKR 41.2mln in realized and unrealized losses on its short-term investment portfolio, largely reflecting market volatility during 1QCY26 amid heightened regional geopolitical tensions. These losses were partly offset by other income of PKR 74.9mln (SPLY: PKR 51.3mln), resulting in a net profit after tax of PKR 34.2mln, compared with PKR 11.7mln in SPLY. While bottom-line profitability improved, earnings remain exposed to non-core and market-sensitive income streams, highlighting the need for continued focus on cost efficiency and strengthening recurring core earnings.

The management is pursuing a strategy to diversify the Company’s revenue base by expanding into advisory and other value-added capital-market services, supported by efforts to further strengthen its research capabilities. The initiative is aimed at broadening the Company’s service offering beyond traditional brokerage activities and deepening relationships with institutional and high-net-worth clients. Over time, successful execution of the strategy could reduce reliance on brokerage income, improve revenue diversification, and provide additional avenues for sustainable business growth.

In line with the Company’s Risk Management Policy, the Risk Management function conducts daily monitoring of client margin requirements and outstanding exposures to identify potential shortfalls and credit-related risks at an early stage. The integrated Risk Management System provides real-time alerts for margin deficiencies and potential breaches, enabling timely intervention and corrective action. The Company maintains defined controls for managing client exposures, including close monitoring of margin positions and prompt follow-up on identified shortfalls, thereby limiting the build-up of credit exposure. In addition, the Company has established AML/CFT policies and procedures to identify and mitigate risks associated with client onboarding, transaction monitoring, and suspicious activities. These measures, supported by ongoing risk monitoring and compliance oversight, contribute to effective management of counterparty and client-related risks and safeguard the Company against potential financial and regulatory exposures.

TSBL's short-term investment portfolio increased to PKR 34.8mln as of Mar-26 from a negligible at Jun25, following the deployment of part of the right-issue proceeds into listed equities. This marks a departure from the Company's historically negligible proprietary trading exposure and contributed to combined realized and unrealized investment losses of PKR 41.2mln during 9MFY26, driven largely by heightened regional geopolitical tensions during 1QCY26. While the absolute quantum of the portfolio remains modest relative to the Company's equity base, its recent volatility underscores an emerging degree of market risk. Positions are reviewed against market conditions and exposure limits by the Company's Investment Decision-Making Committee, providing a degree of oversight; nonetheless, the shift toward proprietary exposure represents an evolving risk that will warrant continued monitoring going forward.

The Company's liquidity profile strengthened considerably during the period, with current liabilities recorded at PKR 425.4mln as of Mar-26 (Jun-25: PKR 490.2mln). These obligations are comfortably covered by current assets of PKR 1,220.1mln (Jun-25: PKR 799.1mln), translating into a current ratio of ~2.87x (Jun-25: ~1.63x), a marked improvement supported by the inflow from the right share subscription and the full retirement of short-term borrowings (Mar-26: nil; Jun-25: PKR 46.9mln). Cash and bank balances rose substantially to PKR 318.7mln (Jun-25: PKR 7.9mln), of which pertains to the brokerage house and clients, further reinforcing the Company's liquidity cushion. The improved ratio, coupled with the absence of short-term debt, indicates a strong and comfortable liquidity position, mitigating liquidity risk.

TSBL's capitalization profile strengthened materially during the period, with shareholders' equity rising to PKR 866.6mln as of Mar-26 from PKR 382.3mln at Jun-25, driven primarily by the PKR 450mln right share subscription completed during the period, together with retained profit of PKR 34.2mln for the nine months. Paid-up capital increased to PKR 750mln (Jun-25: PKR 300mln), providing a substantially larger equity cushion to support risk absorption capacity. The Company's Liquid Capital Balance (LCB) stood at PKR 574mln as of Mar-26, reflecting a healthy improvement and a strong buffer over the prescribed regulatory requirement. On-balance-sheet debt remains minimal, with short-term borrowings fully retired and lease liabilities of PKR 15.5mln (Jun-25: PKR 21.5mln) constituting the principal financing obligation, reflecting a strong, largely equity-funded capital structure that provides a stable financial cushion for business operations.