Summit Bank has posted an unconsolidated loss of Rs 1.14 billion for the year that ended on December 31, 2017, which is 47.56% less than its loss of Rs 2.17 billion in the preceding year.
The bank is set to transfer its huge losses to Sindh Bank after its merger with the provincial government-owned bank.
The bank reserves have also seen a decline of Rs 6.3 billion, compared to a loss of Rs 1.72 billion last year.
A stock notice on Monday reported (diluted) loss per share of Summit Bank at Rs. 0.51 as opposed to a loss of Re. 1 in 2016. The board of directors did not announce any cash dividend.
The net interest income of the bank amounted to Rs 2.89 billion in 2017, up 4.33% from a year ago.
The net interest income after provisions was increased to Rs. 3.04 billion, up 238% as compared to Rs 889 million in the same period last year.
Deposits in the bank increased by 2% to Rs 145.72 billion at the end of 2017 as compared to last year’s Rs 142.87 billion. Summit Bank’s investments rose 5.15% to Rs 95.23 billion by the end of 2017.
At the time of filing this report, SMBL’s script at the bourse was trading at Rs 2.53, down by -3.44% with a turnover of 250,000 shares.
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Sindh Bank and Summit Bank Merger Approved By Cabinet
The Scheme of Amalgamation of Summit Bank Limited and Sindh Bank Limited had been finalized and accordingly sent to the State Bank of Pakistan (SBP) for appropriate approval. After one year’s negotiations, the scheme of Amalgamation was finalized and its draft has been sent to SBP and shareholders for their consideration and approval.
Sindh Bank, owned by the Sindh-government, has earned a profit of Rs 1.4 billion during the first half of this calendar year (CY17).
Every person, who is a registered shareholder of Summit Bank, will be entitled to receive 01 (one) share of Sindh Bank for every 4.17 shares of Summit Bank.
In October 2007, Arif Habib Securities Limited acquired Rupali Bank and formed Arif Habib Bank. On 31st March 2010, Suroor Investments Ltd acquired 59.41 percent stake in Arif Habib Bank and on 18th August 2010, Arif Habib Bank Ltd was rebranded as Summit Bank Ltd, which later acquired majority shares of MyBank Ltd and Atlas Bank Ltd in Pakistan.
The latter two were then merged under the single umbrella of Summit Bank Ltd, thus expanding the Bank’s network to more than 193 Branches.
