The General Manager Pakistan Stock Exchange Stock Exchange Building Stock Exchange Road Karachi.
Trust Moéoro#o
Managed By;
Al-Zemin Modaroba Management (Private} Limited
October 15, 2025
SUBJECT: NOTICE OF CORPORATE BRIEFING SESSION fCBS).
Dear Sir,
Notice is hereby given that the Corporate Briefing Session (CBS) of Trust Modaraba is scheduled to be held on X/ednesday, October 22, 2025 at 10:30 am at NBFI & Modaraba Association of Pakistan, 602, Progressive Centre, 30-A, Block-6, PECHS, Shahrah-e-Faisal, Kaiachi, as well as through video conference (on Zoom) to provide information about the Modaraba's performance and outlook.
Zoom details are as follows;
Meeting ID: 881 9282 9235
Passcode : 151463
https://us0bweb.zoom.us/j/881928292357pwd=Ab883HTFW26NtR7uZqK9LnL6cXEb5x.1
We also attach herewith presentation on Corporate Briefing Session which has also been uploaded on the Company's website.
Thank you, Yours faithfully,
Hamida Aqeel Company Secretary
KARACHI OFFICE : 10d 10d, Kassam Courf, BC-9, Block-5, Clifton, Karachi-Z^idOO, Pakistan. (021 ) 358Z33d9,
: Tel: 02 I -358Z33 Z3, 358d7102, 35876 d5 ! 52
LAHORE OFFICE : 320, 3rd Floor, Gorden Heights, 8-Aibuk Block, New Garden Town, Lahore - Pakislan
: Tel: 0d2-359d 195a, 35941958
E ijJcj i| : in |o@ Irus tilloc|cjrd n. c onJ Web: vovw. Irustmodd rd c .conJ (A ii O I liees)
TRUST MODARABA CORPORATE BRIEFING SESSION
22ND OCTOBER, 2025
INTRODUCTION
Trust Modaraba is a pioneering Islamic financial institution that commenced its operations in 1991 with the primary objective of transforming Pakistan's financial system in accordance with the principles of Shariah. By providing investment and financing opportunities, Trust Modaraba aims to contribute to the socio-economic prosperity of the nation. As a perpetual and multi-purpose Modaraba, it engages in a diverse range of activities, including Diminishing Musharakah, Murabahah, Musharakah, and Ijarah financing, equity investments, and trading.
The institution is managed by Al-Zamin Modaraba Management (Private) Limited, a reputable management company with a proven track record of successfully managing Modarabas.
Listed on the Pakistan Stock Exchange (PSX), Trust Modaraba has an authorized
capital of Rs. 700 million and a paid-up capital of Rs. 298 million.
VISION:
To be country's most trusted provider of Islamic financial services, fostering
sustainable growth and socio-economic development.
MISSION:
To deliver Shariah-compliant financial products and services that create value for our stakeholders, promote financial inclusion, and uphold the highest standards of integrity and transparency.
CORE VALUES:
Integrity and Transparency : Upholding trust through honesty and openness.
Shariah Compliance : Ensuring all activities strictly adhere to Islamic principles. Innovation : Continually developing new financial solutions to meet evolving needs. Customer Centricity: Prioritizing stakeholder satisfaction and service excellence.
Social Responsibility: Contributing to socio-economic development and community
well-being.
BOARD OF DIRECTORS
Mr. Mian Sheikh Arshad Farooq Chairman
Mr. Basheer A. Chowdry Chief Executive
Mr. Syed Etrat Hussain Rizvi Director
Mr. Muhammad Yasin Director
Mr. Muhammad Sami Ullah Director
Dr. Mrs. Namoos Baquar Director
The Board of Directors comprises of highly qualified professionals having diverse experience of Industry and financial sector.
REVIEW OF PERFORMANCE 2024-2025
Total Income: Increased by 17% to Rs. 72.5 million.
Disbursements: Rs. 215 million, with a focus on vehicle financing.
Financing Portfolio: Well-diversified across sectors, with 55% exposure
to individuals, 27% to corporate sector, and 18% to SMEs.
Risk Profile: Improved significantly, with minimal provision for doubtful receivables
Profit Before Tax: Rs. 26.9 million
Profit After Tax: Rs. 18.4 million
Earnings Per Certificate (EPC): Rs. 0.62
Equity: Rs. 349 million, with a strengthening equity base.
Balance Sheet Footing: Rs. 402 million.
BUSINESS OPERATIONS OF TRUST MODARABA
With its commitment to Shariah-compliant financial practices, Trust Modaraba provides a
range of services, including;
DIMINISHING MUSHARAKAH
A financing mode that allows clients to acquire assets while reducing their ownership stake over time.
IJARAH
a leasing arrangement where Trust Modaraba leases assets to clients for a specified period in exchange for rental payments.
MUSHARAKAH
Trust Modaraba provides financing for projects, helping businesses to grow and expand their
operations.
MURABAHAH
Sale & Purchase arrangement with deferred payments for assets and goods. Financing arrangement for trade transactions, where Trust Modaraba purchases goods on behalf of its clients and sells them.
EQUITY INVESTMENT / TRADING
Trust Modaraba invests in the stock market in Shariah compliant listed securities , providing opportunities for growth and returns.
By offering these services, Trust Modaraba plays a vital role in promoting Islamic finance and contributing to the growth and development of Modaraba Sector.
FINANCIAL PERFORMANCE
KEY OPERATING & FINANCIAL DATA FOR THE LAST THREE YEARS
Rs. In million2025 | 2024 | 2023 | |
Balance Sheet items | |||
Total assets | 401.96 | 414.35 | 388.75 |
Financing portfolio | 385.93 | 408.22 | 376.26 |
Total Liabilities | 53.21 | 72.95 | 68.75 |
Paid-up Capital | 298.00 | 298.00 | 298.00 |
Net Equity | 348.75 | 341.39 | 320.01 |
KEY OPERATING & FINANCIAL DATA FOR THE LAST THREE YEARS
450.00 400.00 350.00 300.00 250.00 200.00 150.00 100.00 50.00 Rs. In million - Total Assets Financing Portfolio Total Liabilities Paid-up Capital Net Equity2025 | 401.96 | 385.93 | 53.21 | 298.00 | 348.75 |
2024 | 414.35 | 408.22 | 72.95 | 298.00 | 341.39 |
2023 | 388.75 | 376.26 | 68.75 | 298.00 | 321.05 |
KEY OPERATING & FINANCIAL DATA FOR THE LAST THREE YEARS
Rs. In million
2025 | 2024 2023 | |
Income Statement | ||
Income | 74.36 | 68.48 38.43 |
Operating expenses | 47.50 | 38.91 37.28 |
Profit before management fee | 26.86 | 29.56 0.15 |
Profit/(Loss) after taxation | 18.39 | 20.85 (0.073) |
Net Profit margin | 25% | 30% - |
Return on equity | 5.27 | 6.04 - |
Earning per certificate | 0.61 | 0.71 - |
KEY OPERATING & FINANCIAL DATA FOR THE LAST THREE YEARS
Rs. In million 80 70 60 50 40 30 20 10 0-10 | Income | Operating Expenses | Profit before mgt fee | Profit/(Loss) after taxation |
2025 | 74.36 | 47.50 | 26.86 | 18.39 |
2024 | 68.47 | 38.91 | 29.56 | 21.23 |
2023 | 38.43 | 37.28 | 1.14 | (0.073) |
CREDIT RATING
RATING REPORT Trust Modaraba
RATING DETAILS | ||
Rating Category | Latest Rating Previous Rating Entity Entity | |
Entity | BBB+/A2 | BBB+/A2 |
Rating Date | June 18, 2025 | May 13, 2024 |
Rating Outlook/ Rating Watch | Stable | Stable |
Rating Action | Reaffirmed | Reaffirmed |
REPORT DATE:
June 18, 2025
RATING ANALYSTS:
Musaddeq Ahmed Khan
musaddeq@vis.com.pk
COMPANY INFORMATION |
Incorporated in 1991 External Auditors: Grant Thornton Anjum Rehman & Co. Chartered Accountants |
Public Listed Modaraba Chairman: Mr. Basheer Ahmed Chowdry |
Key Shareholders (with stake 5% or more): Chief Executive Officer: Mr. Basheer Ahmed Faisal Abdul Sattar ~50% Chowdry Al-Zamin Modaraba Management (Pvt.) LTD. - 17.66% |
APPLICABLE METHODOLOGY(IES) |
VIS Entity Rating Criteria: Non-Bank Financial Companies https://docs.vis.com.pk/Methodologies%202024/NBFCs202003.pdf |
APPLICABLE RATING SCALE(S) |
VIS Issue/Issuer Rating Scale: https://docs.vis.com.pk/docs/VISRatingScales.pdf |
1 | P a g e
Trust Modaraba
OVERVIEW
OF THE RATING RATIONALE
INSTITUTION
Trust Modaraba (TM)
was incorporated in
1991 under Mordaraba
companies and Modaraba(flotation and control) Ordinance.
TM is listed on Pakistan Stock Exchangewith its head office located in Karachi.
Profile of the CEO
Mr. Basheer A. Chowdry commenced his banking career in 1963. He is a gold medalist from Punjab University, holds a Diploma in Banking and is also a Member of the British
Institute of Management, Member of the British Institute of Directors, and Member of the Institute of International Affairs,
London.
He has vast banking
experience in commercial, investment banking, international banking and the leasing business for the last 44 years having held very senior assignments with Bank of Credit &
Commerce International, United Kingdom. He has been the Chief Executive Officer of the Modaraba for more than 19 years. He has served as the Chairman, Modaraba
Association and Leasing Association of Pakistan and was a Director on the Board of
Karachi Stock Exchange (Guarantee) Limited nominated by Securities & Exchange
Commission of Pakistan as well as a member of the steering committeeof the United
The ratings reflect Trust Modaraba ('TM or 'the Modaraba') debt-free capital structure,
adequate liquidity profile, and improved profitability metrics, particularly from its Musharakah financing operations. The Modaraba continues to focus on vehicle financing, a niche segment underserved by traditional banks, leading to healthy income generation in a high interest rate environment. Despite higher operating expenses in absolute terms, the efficiency ratio has improved due to increased recurring income. TM has also recorded gains from the sale of short-term investments, contributing positively to earnings.
Management has taken a cautious stance on Murabahah financing due to recovery challenges, shifting focus towards more secure Musharakah Financing. Simultaneously, Ijarah activity has reduced due to an unfavorable tax regime. TM's exposure remains diversified across entities pertaining to various sectors while concentrating mainly on vehicle financing by way of diminishing Musharakah mode, due to which risk profile of the financing portfolio has improved
Modaraba's capitalization remains strong with an increasing equity base funded through retained earnings. Looking ahead, the Modaraba plans to seek deposits to support portfolio expansion; however, capital augmentation will remain constraining factor for potential deposit-taking.
Company Profile
Trust Modaraba ('TM or 'the Modaraba') was formed in Pakistan under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the rules framed thereunder and is being managed by Al-Zamin Modaraba Management (Private) Limited (AZMML). The Modaraba commenced its business operations on November 12, 1991. It is listed on Pakistan Stock Exchange.
The Modaraba is perpetual, multi-purpose and multi-dimensional, engaged in the business of Murabaha, Musharakah and Ijarah arrangement, investment in marketable securities, trading and other permissible businesses. The principal place of business and registered office is located at 104-106, Kassam Court, BC-9, Block-5, Clifton, Karachi -75600 whereas regional office is located at 320, 3rd Floor, Garden Heights, 8-Aibak Block, New Garden Town, Lahore.
Board Structure
Member | Status |
Mr. Mian Sheikh Arshad Farooq | Chairman/ Non-executive Director |
Mr. Basheer Ahmed Chowdry | Chief Executive |
Mr. Syed Shahnawaz Ahmed Rizvi Dr. Mrs. Namoos Baquar | Non-executive Director |
Mr. Syed Etrat Hussain Rizvi | Independent Director |
2 | P a g e
Nations Development Program for Corporate Governance in | Mr. Mohammad Yasin Mr. Muhammad Sami Ullah | |
Pakistan. During the review period, the Board of Directors (BoD) of TM comprised seven members (CY23: seven), including the Chairman, CEO, three independent directors (CY23: three), and two non-executive directors (CY23: two). There is also female representation on the Board. A key change in the Board during CY24 was the resignation of Mr. Sohail Ansar, a founding member and long-serving director, due to his migration out of Pakistan. He was replaced by Mr. Muhammad Sami Ullah, who was appointed to fill the casual vacancy. The BoD consists of qualified individuals with diverse professional knowledge, experience, and skills, demonstrating the leadership and vision required to act in the best interest of the Modaraba and its certificate holders. Four Board meetings were held during CY24, with satisfactory attendance from all members. TM has a formal process of evaluation of the performance of the BoDs and its committees. The evaluation is carried out once a year. Board Committees The Board has constituted an Audit Committee in compliance with the requirements of the Code of Corporate Governance which comprises of four (4) members including the Chairman of the Committee who is an independent director. The Audit Committee meets once in every quarter to review the annual and interim financial statements of the Modaraba prior to their approval by the Board. The Audit Committee also focuses on compliance with applicable accounting standards, any change in the accounting policies and practices, all related party transactions, and also significant adjustments resulting from the audit. Internal Audit functions are entrusted to an independent firm of Chartered Accountants. Internal audit reports and compliance matrix are presented by the Internal Auditors to the Audit Committee on a quarterly basis according to the annual audit plan approved by the Committee. The Board has constituted a Human Resource and Remuneration Committee to deliberate on the key issues of human resource management policies. One meeting of the Human Resource Committee was held during the year with full attendance of the members. | ||
Audit Committee Members | Status |
Mr. Etrat Hussain Rizvi | Chairman |
Mr. Arshad Farooq Mr. Shahnawaz Rizvi Mr. Muhammad Yasin | Member |
Mrs. Hamida Aqeel | Secretary |
HR&R Committee Members | Status |
Mr. Muhammad Yasin | Chairman |
Mr. Etrat Hussain Rizvi Dr. Namoos Baquar Mr. Basheer A. Chowdry | Member |
Mrs. Hamida Aqeel | Secretary |
3 | P a g e
Sharia Governance
TM continues to seek guidance from its Shariah Advisor Mr. Mufti Zubair Usmani on operational and compliance matters to ensure full compliance with the shariah audit mechanism. The Internal Audit function also verifies shariah compliance of the business transactions undertaken by the Modaraba according to the prescribed standards.
Auditor's Opinion
The FY24 financial statements were audited by M/s Grant Thornton Anjum Rehman, Chartered Accountants, which is a QCR Rated Firm and categorized as 'Category A' on SBP's Panel of Auditors. The auditor issued an unqualified opinion on the financial statements.
Business Risk Overview
Modarabas are a unique collective investment model and Pakistan's pioneer Islamic financial institutions. The Modaraba sector continues to play an important role in addressing SMEs' financial needs and collaborating with other ventures as partners. As of December 31, 2024, 31 Modaraba companies were registered, while 23 Modarabas are currently operating and are listed on the Pakistan Stock Exchange (PSX). As of the same date, the total assets of the Modaraba sector stood at Rs 56.1 billion, representing approximately 1.6 percent of the Non-Banking Financial Company (NBFC) sector.
During the second half of 2024, Modarabas recorded a 9.89% growth in total assets and a 21.17% increase in net profit, rising to PKR 92.96m. Financing activities-such as Ijarah, Diminishing Musharaka, and short-term investments-also expanded, with the portfolio growing to PKR 7.31b, marking a 6.02% increase. Meanwhile, yields on T-Bills and PIBs have continued to decline in response to reductions in the policy rate. Inflation has also eased. In this context, the maintenance of adequate liquidity and profitability will remain a challenge for the sector going forward.
Asset Base
(PKR million) | FY22 | FY23 | FY24 | 9MFY25 |
Financing (net) | 309.7 | 312.2 | 339.5 | 334.1 |
Investment | 40.2 | 29.9 | 23.3 | 12.0 |
Cash and bank balances | 7.7 | 7.4 | 10.4 | 7.5 |
Other assets | 58.0 | 39.3 | 41.2 | 47.3 |
Total Assets | 415.6 | 388.8 | 414.4 | 400.9 |
The overall asset base of the entity declined to PKR 400.9m as of 9MFY25 (FY24: PKR 414.4m; FY23: PKR 388.8m). The financing portfolio-comprising Ijarah, Musharakah, and Murabaha remains the primary component of the asset base. On the other hand,
4 | P a g e
investments comprising primarily of short term listed shares have depicted a declining trajectory on a timeline; the same were recorded at 12.0m (FY24: PKR 21.0m; FY23; PKR 23.7m) by end-9MFY25. According to management, the Company held a few underperforming stocks; however, during the stock market uptrend, these were liquidated to limit losses. Proceeds from the divestment were subsequently utilized to support operational expansion.
Portfolio
The gross portfolio of the Modaraba declined marginally to PKR 356.4m (FY24: PKR 360.9m; FY23: PKR 333.6m) by end-9MFY25. The Diminishing Musharaka (DM) segment dominated the portfolio with all top clients being financed through the aforesaid mode. According to management, the Modaraba focuses primarily on financing mid to high-value vehicles, a segment typically underserved by banks due to regulatory caps on the maximum financing amount. TM addresses this gap through its Musharakah financing, leading to a notable increase in this segment in recent years. Increase in demand for vehicles with the economic recovery also drove the growth in the aforesaid segment. The top clients are mostly individuals and SMEs.
On the other hand, decline in the Ijarah portfolio was driven by an unfavorable tax regime, where instance of sale tax on the lease rentals, reduced the comparative attractiveness of Ijarah financing. Furthermore, Murabaha financing-primarily used to meet working capital requirements-is on the decline, owing to difficulties in recoveries. Consequently, the management has opted to scale back disbursements in this segment. Going forward, vehicle financing will remain the primary growth driver for TM. However, this limited emphasis on a particular niche may restrict the growth for Modaraba.
Breakdown of Gross Portfolio is given below:
Gross Portfolio (in PKR mlns) | FY22 | FY23 | FY24 | 9M'FY25 |
Murabaha Finances ST | 42.4 | 44.7 | 33.8 | 33.8 |
Ijarah Rental Receivables | 152.7 | 128.3 | 80.4 | 41.7 |
LT (Murabaha) | 105.8 | 64.6 | 54.5 | 58.1 |
ST (Musharaka) | 24.4 | 17.2 | 13.7 | 9.6 |
LT (Musharaka) | 4.5 | 78.8 | 178.4 | 213.3 |
Investment in Shares | - | - | - | - |
Gross Financings | 329.9 | 333.6 | 360.8 | 356.4 |
Exposure to individual portfolio has decreased to 22.7% (CY23: 43.4%) as of Jun'24. Sector-wise distribution of the financing portfolio indicates an exposure of PKR 51.6m in the trading of goods and services segment, representing 15.5% of the portfolio in FY24. Exposure to educational institutions stood at PKR 51.0m (FY23: PKR 23.2m), also accounting for 15.3% of the portfolio in FY24. The food and allied sector reflected an exposure of PKR 33.4m (FY23: PKR 28.2m), constituting 10.0% of the portfolio
5 | P a g e
(FY23: 13.3%). The remaining portfolio is distributed across a range of sectors-both cyclical and non-cyclical-to enhance diversification. Notably, FY24 saw an increase in the number of sectors covered, with a marked inclination toward non-cyclical sectors to mitigate the impact of economic volatility. Going forward, realization of planned recoveries remains important.
Asset Quality
FY22 | FY23 | FY24 | 9M'FY25 | |
Gross Infection* | 9.7% | 11.3% | 13.6% | 16.6% |
Provisioning Coverage* | 26.4% | 29.1% | 28.5% | 31.9% |
Net Infection* | 3.3% | 3.5% | 7.1% | 10.3% |
*Net of customer security deposit | ||||
Gross non-performing loans (NPLs), net of security deposits, increased to PKR 56m (Jun'24: PKR 44m) as of Mar'25. This was primarily due to a significant decline in customer security deposits, which dropped from PKR 36m in June 2024 to PKR 18.6m in Mar'25, resulting in a higher adjusted gross infection ratio. Similarly, the adjusted net infection ratio rose as provision expense remained largely unchanged from the prior year. While provisioning coverage showed marginal improvement, it continues to remain on the lower side.
Uptick in profitability
P&L Extract (PKR million) | FY22 | FY23 | FY24 | 9MFY25 | 9MFY24 |
Income from ijarah | 15.7 | 16.7 | 13.7 | 6.1 | 10.6 |
Profit on murabaha finances | 10.8 | 7.5 | 4.2 | 3.0 | 3.4 |
Profit on musharakah finances | 6.3 | 14.3 | 45.2 | 37.8 | 30.4 |
Total Income from Operations | 32.7 | 38.5 | 63.2 | 46.9 | 44.4 |
Other Income+ Investment | 43.1 | 4.9 | 3.9 | 5.7 | 2.9 |
Total Income | 75.8 | 41.2 | 61.9 | 57.0 | 40.8 |
Operating Expenses | (43.5) | (37.3) | (38.9) | (35.3) | (27.0) |
Profit (Loss) Before Tax | 13.1 | 1.0 | 26.1 | 20.9 | 19.3 |
Profit (Loss) After Tax | 11.4 | (0.1) | 21.2 | 17.8 | 16.1 |
Efficiency Ratio | 57.4% | 90.6% | 62.9% | 62.0% | 66.2% |
Income from operations rose to PKR 63.2m (FY23: PKR 38.5m) by end-FY24 on account of higher income derived from Musharaka finances since the gross portfolio recorded substantial growth in the aforesaid segment during a high policy rate environment. On the other hand, operating expenses recorded increase marginally to PKR 38.9m (FY23: PKR 37.3m) aligning with inflation. Therefore, improvement was evidenced in the efficiency ratio, however, the same remains on a higher side. Modaraba also incurred an unrealized gain of PKR 13.1m on their investments in listed securities as opposed to a loss of PKR 0.1m in the preceding year. Consequently, the profit before tax (PBT) of the Modaraba rose to PKR 26.1m by end-FY24 as opposed to a loss of PKR 0.1m in FY23.
6 | P a g e
During 9MFY25, income from operations maintained its upward trajectory, increasing to PKR 46.9m (9MFY24: PKR 44.4m), primarily driven by higher profits generated from the Musharakah segment. The growth is also attributable to capping of profit rates to hedge against the declining interest rates. TM also recorded a gain in the sales of short-term investments, in contrast to a loss incurred in the corresponding period of the previous year. Although operating expenses increased in absolute terms, the efficiency ratio improved due to higher recurring income. As a result, TM reported a PBT of PKR
17.8m (9MFY24: PKR 16.1m) in 9MFY25.
Liquidity:
The liquidity profile remains adequate, with liquid assets (including cash) covering 64.2% of current liabilities (FY24: 86.0%; FY23: 138.8%). The investment portfolio continued its declining trend, amounting to PKR 12.0m as of the review period (FY24: PKR 23.3m; FY23: PKR 29.9m), and comprised solely of short-term investments in listed securities. The current ratio improved to 6.23x (FY24: 4.51x; FY23: 6.43x), indicating strong coverage of current liabilities by current assets.
The aging profile of receivables remains elevated, with 21.5% outstanding receivables overdue for more than two years. The higher aging is primarily attributable to several disputed cases currently pending resolution in court. Management remains optimistic about a favorable outcome and anticipates recovery of the outstanding amounts upon conclusion of the legal proceedings.
Capitalization:
The balance sheet reflects minimal leverage, with the equity base strengthening over the review period to PKR 347 million (FY24: PKR 348 million; FY23: PKR 326 million), supported by improved profitability. Looking ahead, the Modaraba plans to seek deposits to support portfolio expansion; however, capital augmentation will remain constraining factor for potential deposit-taking.
7 | P a g e
Trust Modaraba Appendix IFINANCIAL SUMMARY | FY22 | FY23 | FY24 | 9MFY25 |
Investments | 40.2 | 29.9 | 23.3 | 12.0 |
Cash and Bank Balances | 7.7 | 7.4 | 10.4 | 7.5 |
Liquid Assets | 47.9 | 37.3 | 33.6 | 19.5 |
Gross Portfolio | 329.9 | 333.6 | 360.8 | 356.4 |
Financing Portfolio (net) | 309.1 | 310.5 | 337.9 | 332.6 |
Total Assets | 415.6 | 388.8 | 414.4 | 400.9 |
Total Current Liabilities | 45.1 | 26.9 | 39.1 | 30.4 |
Total Liabilities | 94.5 | 68.8 | 70.5 | 51.7 |
Certificate Capital | 298.0 | 298.0 | 298.0 | 298.0 |
Net Equity | 326.6 | 326.5 | 347.7 | 349.2 |
INCOME STATEMENT | FY22 | FY23 | FY24 | 9MFY25 |
Income from ijarah | 15.7 | 16.7 | 13.7 | 6.1 |
Profit on Murabaha finances | 10.8 | 7.5 | 4.2 | 3.0 |
Profit on Musharaka finances | 6.3 | 14.3 | 45.2 | 37.8 |
Total Income from Operations | 32.7 | 38.5 | 63.2 | 46.9 |
Income from investments - net | 0.4 | 2.2 | 0.7 | 0.8 |
Other income | 42.6 | 2.7 | 3.3 | 4.9 |
Total Income | 75.8 | 41.2 | 61.9 | 57.0 |
Provision against assets (Doubtful receivables) | (5.0) | (1.7) | (2.9) | (1.1) |
Unrealized gain/loss) on revaluation of financial assets | (12.4) | (1.1) | 13.7 | 3.1 |
Operating Expenses | (43.5) | (37.3) | (38.9) | (35.3) |
Others (Net) | (1.8) | (0.1) | (7.7) | (2.8) |
Profit (Loss) Before Tax | 13.1 | 1.0 | 26.1 | 20.9 |
Profit (Loss) After Tax | 11.4 | (0.1) | 21.2 | 17.8 |
RATIO ANALYSIS | FY22 | FY23 | FY24 | 9MFY25 |
* Gross Infection* Net of customer security deposits | 9.7% | 11.3% | 13.6% | 16.6% |
*NAentnuInafliezcetdion* | 3.3% | 3.5% | 7.1% | 10.3% |
Liquid Asssets/ Current Liabilities | 106.1% | 138.8% | 86.0% | 64.2% |
Provisioning Coverage* | 26.4% | 29.1% | 28.5% | 31.9% |
Leverage | 0.29 | 0.21 | 0.20 | 0.15 |
Efficiency | 57.4% | 90.6% | 62.9% | 62.0% |
ROA** | 2.9% | 0.0% | 5.3% | 8.9% |
ROE** | 3.5% | 0.0% | 6.3% | 10.3% |
Current Ratio | 4.92 | 6.43 | 4.51 | 6.23 |
*
8 | P a g e
REGULATORY DISCLOSURES | Appendix II | |||
Name of Entity | Trust Modaraba | |||
Sector | Modaraba | |||
Type of Relationship | Solicited | |||
Purpose of Rating | Entity Rating | |||
Rating History | Rating Date 18-June-25 13-May-24 05-May-23 26-April-22 17-Feb-21 27-Aug-19 26-Jan-18 6-Dec-16 | Rating Medium to Outlook/ Long Term Short Term Rating Watch RATING TYPE: ENTITY BBB+ A2 Stable BBB+ A2 Stable BBB+ A2 Stable BBB+ A2 Stable BBB- A3 Stable BBB- A3 - BBB- A3 Stable BBB- A3 Positive | Rating Action Reaffirmed Reaffirmed Reaffirmed Upgrade Maintained Rating Watch -Negative Maintained Initial | |
Instrument Structure | N/A | |||
Statement by the Rating Team | VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the credit rating(s) mentioned herein. This rating is an opinion on credit quality only and is not a recommendation to buy or sell any securities. | |||
Probability of Default | VIS' ratings opinions express ordinal ranking of risk, from strongest to weakest, within a universe of credit risk. Ratings are not intended as guarantees of credit quality or as exact measures of the probability that a particular issuer or particular debt issue will default. | |||
Disclaimer | Information herein was obtained from sources believed to be accurate and reliable; however, VIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Copyright 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS. | |||
Due Diligence | Name | Designation | Date | |
Meetings | Mr. Basheer Ahmed Chowdry Chief Executive Officer | 15 May 204 | ||
Conducted | Ms. Hamida Aqeel Chief Operating Officer/Company Secretary | |||
9 | P a g e
CHALLENGES AHEAD:
- Potential further reduction in policy rates impacting financing portfolio returns.
Flood-related aftermath and its multidimensional impact on the
economy and businesses.
STRATEGY:
Focus on existing business model.
Building internal efficiencies and professional excellence.
Emphasis on quality improvements, productivity, and cost control.
OBJECTIVES:
Improve competitiveness.
Enhance profitability.
Sustain growth and resilience in a challenging economic landscape.
BRANCHES
KARACHI
Head Office : 104-106, Kassam Court, BC-9, Block-5, Clifton, Karachi, Pakistan.
Tel: +92(021) 35893369,35873373
E-mail: info@trustmodaraba.com
LAHOR E
Regional Office: 320, 3rd Floor, Garden Heights, 8-Aibak Block,
New Garden Town, Lahore, Pakistan.
Tel: +92(042) 35941957, 35941958
E-mail: info@trustmodaraba.com
THANK YOU
Question & Answers