Research Analyst
18 - 24, 2011


INDICATORS DEC 31, 2010 DEC 31, 2009
Pretax loss for the period (549,476) (2,285,586)
Equity 3,743,244 4,065,941
Paid-up capital 5,000,000 5,000,000
Deposits 42,294,961 31,307,488
Advances 22,805,539 18,503,815
Total assets 49,891,630 38,173,375
Investments 16,483,335 12,446,033
Basic and diluted (loss) per share (Rs) (0.65) (4.13)

Summit Bank limited (SBL) (formerly Arif Habib Bank) is one of the fastest growing commercial banks of the country supported by Suroor Investments. The management intends to double the capital in a short period by injection of fresh capital, which will strengthen the bank further.

The bank presently has successfully finalized acquisition deal with Mybank to acquire its majority shares at Rs8 per share. The State Bank of Pakistan has already granted no-objection certificate (NOC) for the merger of these two entities.

Summit Bank has acquired 314.701 million shares of Mybank, taking 59.34 per cent stakes as well as management control. Summit Bank is keenly interested to enhance its countrywide operation, besides launching new branches in major cities and rural areas, and acquisition of Mybank is a part of these efforts. Summit Bank has successfully achieved December 2010 minimum capital requirement (MCR) condition of SBP and now its capital is about Rs7.5 billion, which will be over Rs8 billion end of this year. It is estimated that this acquisition is a major development in the banking sector of Pakistan, which is on path of recovery after facing several difficulties like decline in profit and high non-performing loans during the last two years.

The management of SBL remained focused on improving the quality of the assets of the bank including its advances portfolio with non-performing loans.

During the year, the total assets of the bank grew 30.70 per cent to Rs49.9 billion with advances showing a growth of 23.25 per cent to Rs22.8 billion. The bank was able to achieve deposit growth of 35.10 per cent increasing its deposit base to Rs42.3 billion during the year.

Current NPLs have a provisioning of Rs3,050.6 million (2009: Rs2,568.2 million) out of which Rs482.3 million (2009: Rs1,816.6 million) were charged during the year that contributed significantly to the pre-tax loss of Rs549.5 million during the year as compared to a loss of Rs2,285.6 million in 2009.

SBL always strives to fulfill the customers' satisfactions. The bank's saving account is the most convenient way to manage the customers' savings in local and foreign currency. The bank's saving account has been designed to provide their customers with easy access as well as a higher rate of profit. Moreover, the bank has an easy understanding range of home loans with something for everyone. The value and flexibility that Summit Bank home finance offers are complemented by exceptionally personalized service. The Summit Bank Prepaid Card is a stored value card that can be used for a wide range of payment purposes at all major merchant outlets across the city. Being equipped with convenient re-loadable features, this multi-purpose prepaid card is tantamount to carrying an electronic purse.

Prepaid Cards will be issued against deposit accounts at Summit Bank, through which the primary account holders can recharge their balances at any time of the day. The colorful and personalized look of the card makes it an excellent gift item - much more glamorous than impersonal envelopes of cash. Moreover, while the prepaid card can be used by all household members, it carries special deals and privileges for the younger members, making it especially exciting for children and teenagers.


The macroeconomic outlook remains fragile and exposed to various risks on account of rising inflation, increasing fiscal slippages and possible pressure on balance of payments. Meanwhile, the uncertainties attached with global economic outlook, sensitive security situation in the country and severe power shortage would continue to act as impediments for the overall recovery. In these challenging times, the assets quality of the banking industry is likely to remain under pressure. SBL being watchful of the economic conditions would continue with its strategy of achieving steady growth and optimizing efficiencies to reduce cost. Meanwhile, summit bank's focus would remain on providing state of the art banking services to its large customer base with higher customers' satisfaction by further improving services quality. SBL will further enhance its operation and provide better banking facilities to the middle businesspersons dealing in trading.


All Banks & DFIs 508,832 148,395 4.65 562,404 187,190 5.51
All Banks 494,012 143,458 4.56 547,770 182,249 5.44
All Commercial Banks 461,988 132,286 4.33 515,373 170,637 5.24
Public Sector Banks 122,513 37,620 6.17 164,195 75,359 12.01
Local Private Banks 332,489 93,565 3.93 344,183 94,332 3.68
Foreign Banks 6,986 1,101 1.67 6,996 946 1.44
Specialized Banks 32,024 11,172 11.87 32,396 11,612 12.46
DFIs 14,820 4,937 11.38 14,634 4,941 10.88
NPLs: Domestic and Overseas Operations