Press Release

Ratings of Summit Bank Limited
 

Karachi, March 19, 2012: 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 MyBank 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 further information on this rating announcement, please contact the undersigned (Ext: 408) or Ms. Sobia Maqbool, CFA (Ext: 506) at (+92-21) 35311861-70 or fax to (+92-21) 35311872-3.



Jamal Abbas Zaidi
Deputy CEO

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Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-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. JCR-VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2012 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited