Research Analyst
July 16 - 22, 2012

Summit Bank Ltd is one of the fastest growing commercial banks and in a very short span of time, has expanded its network across the country and built an infrastructure based on state of the art Risk management framework as well as IT platform. The bank is also targeting to be an international bank in terms of providing products and services in all key segments of banking i.e. Corporate and Investment banking, trade finance, SMEs, and Consumer banking.

Historically, the Pakistan operations of Rupali Bank Limited were acquired by Arif Habib Securities Limited under the scheme of amalgamation approved by the SBP. The name of Rupali Bank Ltd was subsequently changed to Arif Habib Rupali Bank Ltd and then finally to Arif Habib Bank Ltd in October 2007. During March 2010, Suroor Investments Ltd a company incorporated in Mauritius, acquired 59.41 per cent stake in Arif Habib Bank Ltd from Arif Habib Securities Ltd, and in 2010, Arif Habib Bank Ltd was rebranded as Summit Bank Ltd.

Suroor Investments also entered into share purchase agreements (SPAs) with majority shareholders of MyBank Ltd and Atlas Bank Ltd, who after completion of the transactions have merged in Summit Bank Ltd expanding the bank's geographical outreach with a network of 165 Real time online branches across the country. In line with the management's vision of making this bank a front runner amongst its peer banks, this merger has brought synergies and access to a wider range of markets and customers.

By acquiring one of the best IT platforms of the world, the Bank is committed to be recognized as a preferred supplier of financial services to the markets it serves.

Summit bank is now anticipating Consumer banking services through a dedicated division. The bank provides services for deposits, consumer loans, credit cards, insurance and asset management through its customer-focused and competitive approach while closely following technological developments. With a clearly defined market segment and a solid strategic intent supported by a modern and reliable infrastructure, Summit Bank has set to scale new heights in Consumer banking services.

Summit Bank is one of the leading banks in Pakistan in terms of electronic banking. The bank offers their customers a diverse range of electronic services and convenient banking options through various channels, such as ATMs, mobile phones and Internet.


MARCH 31, 2011
Profit / Loss before tax (460,783) (684,982)
Taxation (95,654) 202,523
Loss after tax (556,437) (482,459)
Loss per share - Rupees (0.52) (0.67)

The bank's Mobile Banking allows customers to avail a variety of banking services of pure SMS-based technology, including mobile balance recharge and utility bill payments, as well as account information.

Internet banking is another channel on which the bank offers extensive banking services. Customers can view account information, pay bills, transfer funds, and conduct many other transactions through their accounts.

The Financial results for the quarter ended March 31, 2012 are a reflection of the prudent and pragmatic approach adopted by the management under the tight circumstances created by diverse factors including the global financial downturn. The Bank is, however, committed to its strategy to achieve sustainable growth whilst simultaneously remaining vigilant to the current challenging economic conditions. Simultaneously with exploring the new frontiers the Bank is currently focusing on its core target to cure its classified portfolio, reduces its cost of deposits and lifting its fee based income. This is planned to be achieved by placing emphasizes on trade business and also delivering other competitive value added services. The Bank has incurred a pre-tax loss of Rs. 476 million during the quarter ended March 31, 2012 which is lower by Rs. 209 million as compared to quarter ended March 31, 2011. During the quarter the Bank has recovered significant amount of provisions i.e., Rs. 604 million against non-performing loans resulting in net reversal of provisions amounting Rs. 142 million for the quarter ended March 31, 2012. During the quarter deposit size of the bank decreased by 4.39 per cent to Rs. 85,717 million when compared to position as of December 31, 2011. This marginal decrease in deposits is primarily due to conscious policy decision to retire high cost deposits and the management's efforts for growth in the CASA deposits. The success of the policy is evident from the downward trend witnessed in cost of deposits from 9.49 per cent as at December 31, 2011to 9.26 per cent as on March 31, 2012. Despite considerable increase in the network of the Bank from 80 to 166 branches; the fees, commission, and other income has also significantly risen from 74.285 million to 148.799 million exhibiting a growth of 74.415 million in the current quarter of 2012 over the comparable period of 2011.

The Bank has maintained its focus on improving and developing the level of Corporate Governance, providing state-of-theart banking products and services and enhancing the financial position of the bank. The combinations of these initiatives are expected to lead the bank towards maintaining operational performance, diversification of income sources and also cost optimization.


To achieve the targets, the Bank will strengthen itself in the financial service industry, leverage optimal mix of technology to attain operating cost efficiencies, achieve product and service differentiation, while at the same time growing its footprint through further expansion of its branch network across the country.