About Summit Bank
Summit Bank provides financial services. It offers Islamic banking products, deposits, corporate banking, SME banking, consumer banking, electronic services, and more. The company was formerly known as Arif Habib Bank. It was founded in 2007 and is based in Karachi, Pakistan. In April 2023, Nasser Abdulla Hussain Lootah acquired a majority stake in Summit Bank. The terms of the transaction were not disclosed.
Latest Summit Bank News
Dec 21, 2023
Here’s What Happened in Pakistan’s Banking Sector in 2023 by 100 Views The banking sector in Pakistan maintained robust growth in profitability during 2023, including growth in assets and deposits, the high-interest rate regime allowed them to make handsome margins, increase investment in securities, and lend cash to the federal government at exorbitant financing rates. On the other hand, they attracted deposits from customers, providing them with handsome returns too. There have also been major transformations and developments in a few commercial banks, which will impact the banking sector positively in the long term. ALSO READ (1) Faysal Bank’s Conversion to Islamic Bank Faysal Bank announced its conversion to a full-fledged Islamic bank on the first day of the calendar year. The bank converted its assets, deposits, operations, branches, and licenses from conventional to Sharia-based banks and became the second-biggest Islamic bank in the banking industry. This transition is said to be the biggest conversion of any conventional bank, not only in Pakistan but in the world, considering the size of the operation. The transformation of Faysal Bank also provided a roadmap for other banks seeking to convert their operations from conventional to Islamic. (2) MCB Bank Acquires 81% Stake in Asset Management Company MCB Bank acquired an additional 30 percent stake in its subsidiary, MCBAH Savings and Investments, at the cost of Rs. 649 million. Through this deal, the bank received 21.6 million shares, or 30 percent, of another sponsor, Arif Habib Corporation, at a share price of Rs. 30. Hence, its overall shareholding in the subsidiary increased to over 81 percent from 51 percent. MCB-AH Limited is one of the leading asset management companies in the fund management sector, and a few companies within a sector are also listed on the Pakistan Stock Exchange (PSX). The transition in shareholding will strengthen the position of the bank in the financial sector. (3) JS Bank Acquires Major Shareholding in BankIslami JS Bank Acquired major shares in BankIslami to convert the Islamic bank into its subsidiary with ownership of the significant shareholding. The bank increased its stakes in the Islamic bank by 75 percent by purchasing shares from the parent financial entity, JS Group. The share swap deal was successful between the sponsors of the Islamic bank, despite being challenged in the Sindh High Court. JS Bank maintained a different strategic position, which will increase its profitability and influence in the banking industry after this deal. (4) Prominent Banks Plan for Conversion to Islamic Banking Prominent conventional banks with a separate division of Islamic banking announced their plans for full-fledged conversion to Islamic Banking in light of a verdict issued by the Federal Shariat Court last year. The banks included the Bank of Punjab, Zarai Taraqiati Bank, and Summit Bank. In this regard, the Bank of Punjab hired a consultant, and Summit Bank rebranded itself as Mukramah Bank. This transition in banking operations will likely attract different conventional banks to follow the same suit. ALSO READ (5) Bank Alfalah Acquires Stakes in QistBazaar Bank Alfalah acquired 7.2 percent stakes in BNPL QistBazaar at a cost of Rs. 140 million. The deal can be a win-win situation for both entities in scaling up their business and profitability. In addition to the equity agreement, Bank Alfalah, and QistBazaar signed an embedded financing agreement in Shariah-compliant mode for up to Rs. 350 million. Accordingly, the bank will incorporate digital financing products within the QistBazaar platform to offer embedded consumer durables financing in BNPL’s mode. Bank Alfalah’s move to invest in QistBazaar can prove a stepping stone to strengthening the fintech landscape of the country, as more banks are likely to follow suit for collaboration and investment in fintech companies, which is the need of the hour. (6) Major Banks to Set up Exchange Companies The State Bank of Pakistan (SBP) plans to streamline the business of foreign exchange across the country with control and regulation on trade and flows of foreign currencies, mainly to monitor the stability of the rupee against the dollar. In this regard, the banking industry watched as various exchange companies in Category B shut down while commercial banks were allowed to establish their foreign exchange subsidiaries as an alternate option in the financial sector. An overwhelming number of banks made announcements to set up subsidiaries of foreign exchange, including HBL, UBL, MCB, Bank Al Habib, Meezan Bank, Habib Metro Bank, Askari Bank, etc. ALSO READ (7) Summit Bank Receives Investment from UAE Summit Bank received a significant capital injection of Rs. 10 billion from its sponsor and prominent UAE investor, Nasser Abdulla Hussain Lootah. The investor subscribed to 3.98 billion new shares of the bank at Rs. 2.51 per share, becoming the major shareholder in the bank. Moreover, Summit Bank plans to convert its entire operation from a conventional banking system to an Islamic one, similar to Faysal Bank. Its board of directors also approved a three-year conversion plan, and the bank has been renamed Makramah Bank. (8) Silk Bank Attracts Investors Silk Bank, once again, sought the financial support of a strong investor on a long-term basis to fulfill its regulatory requirements of paid-up capital and the sustainability of its profitable operations. The bank has attracted interest from MCB Bank, United Bank Limited, International Commercial Bank of South Sudan, and Pakistan Housing Finance Company for investment and merger. At present, these financial institutions are carrying out the due diligence of the bank, which is showing the increasing competition among these entities in striking a deal with Silk Bank. Sudanese Bank and Pakistan Housing Company even expressed their investment plans of 50 million euros and Rs. 12 billion, respectively. With four proposals in hand, it is a good time for Silk Bank to say yes to at least one institution with remarkable experience in local industry and operating a subsidiary. ALSO READ (9) Meezan Bank Collaborates to Launch Islamic Microfinance Services Meezan Bank took the initiative to collaborate with SAFCO Microfinance Company Private Limited (SMCL) for the launch of Islamic microfinance services in the low-income segment of society. This is the first time that a commercial bank has significantly supported a microfinance institution. The leading Islamic bank has committed to providing Rs. 100 million in financing and technical support for product development, capacity building, and training for the microfinance company. The step will further accelerate the penetration of Islamic banking across the country. The microfinance company established its inaugural Islamic microfinance branch under the brand name ‘Yaqeen’ in Hyderabad, Pakistan. (10) HBL to Set Up a Specialized Agri Subsidiary Habib Bank Limited received approval from the State Bank of Pakistan to set up a specialized subsidiary for the agriculture sector. The subsidiary will work to provide financial access to farmers and other players in the agriculture sector, particularly, but the institution has plans to be deeply involved in the sector’s development. The leading bank previously carried out different projects successfully in this sector, which gave it the confidence to enhance its footprints in the food sector with a much bigger role and a long-term profitable engagement. The out-of-box approach of the bank’s leadership might give it a competitive edge in the industry. Major Developments in Microfinance Sector ABHI, TPS Express Interest to Acquire FINCA Microfinance Bank Advans Microfinance Bank Plans Exit Pakistan Apna Microfinance and FINCA Merger ASA Bank Gets License
Summit Bank Frequently Asked Questions (FAQ)
When was Summit Bank founded?
Summit Bank was founded in 2007.
Where is Summit Bank's headquarters?
Summit Bank's headquarters is located at Summit Tower ,10th Floor, Karachi.
What is Summit Bank's latest funding round?
Summit Bank's latest funding round is Corporate Majority.
Who are the investors of Summit Bank?
Investors of Summit Bank include Nasser Abdulla Hussain Lootah.