Summit Bank recently surprised the entire banking industry by reporting profits of PKR 106 million during the first quarter of the current fiscal year.
It is pertinent to note that Summit Bank closed its calendar year of FY16 with a huge loss of PKR 2.17 billion. However, company’s turnaround is remarkable during the first quarter of the year 2017 and shows significant improvement in the performance of the financial institution after experiencing a loss last year.
Summit bank is going to get merged with another bank, possibly Sindh Bank, in the upcoming months.
The bank earned its profits from both interest-based and non-interest based income. Summit Bank experienced a surge in its interest-based revenue to PKR 755 million in Q1 of FY17 as compared to PKR 376 million that the bank reported during the similar time frame in the previous year.
On the other hand, the bank’s non-interest income surged to PKR 689 million compared to the PKR 674 million that it reported during the last year. Summit Bank’s overall revenue increased to PKR 1.7 billion during the first quarter of the current fiscal year compared to PKR 526 million in the last year.
Reports indicate that Summit Bank and Sindh Bank will be merged during the second quarter of FY17. For those who are wondering, the merger of these two banks is in the final stage and the new bank could be named as Sindh Summit Bank.
Because of the merger agreement, Summit Bank plans to convert its current operation into Sharia-based Islamic banking. Also, Summit Bank is already a merger of three banks, i.e. Arif Habib Bank, Atlas Bank and My bank.