Ratings of Summit Bank Limited

Karachi: JCR-VIS Credit Rating Company Limited (JCR-VIS) has revised the entity ratings of Summit Bank Limited (SBL) from ‘A/A-2’ (Single A/A-Two) to ‘A-/A-2’ (Single A Minus/A-Two). Rating of the sub-ordinated debt instrument has been finalized at ‘A-(SO)’ (Single A Minus(SO)). Outlook on the assigned ratings is ‘Stable’.

Following the merger of former Atlas Bank Limited with and into SBL in 2010, merger of former My Bank Limited (MBL) with and into SBL has also been achieved in 2011. A sizeable amount of non-performing loans have been inherited from MBL.

The management is actively working to realize recoveries against NPLs, which if achieved as projected, will help in reducing future provisioning requirements while deployment in earning assets will also help improve the top line revenues.

The management has been successful in containing overhead costs, with actual expenses for 2011 being lower than projections. The sponsors are also considering another rights issue in the on-going year to improve the bank’s capital structure. JCR-VIS will continue to monitor developments in this respect.

For more information, contact:
Mr. Javed Callea
JCR-VIS Credit Rating Company Limited
Tel: +9221 35311861 (10 lines) (Ext: 501)
Fax: +9221 35311872-3
E mail: javed.callea@jcrvis.com.pk