HAMDARD UNIVERSITY

HAMDARD UNIVERSITY OF MANAGEMENT AND SCIENCES

TERM REPORT
SUBMITTED BY: LAIBA SIDDIQUE
CMS ID: 590-2017
DATE OF SUBMISSION: 20-DECEMBER-2017

SUBMITTED TO: SIR HASSAN AHMED

CONTENTS:
INTRODUCTION
HISTORY
MISSION
VISION
PESTLE ANALYSIS
SWOT ANALYSIS
OBJECTIVE
GOAL
UNDERSTANDING STRATEGIC DEVELOPMENT
STRATEGIC DEVELOPMENT PROCESS
BUSINESS ENVIRONMENT
STRATEGIC CAPABILITIES
MANAGEMENT COMMITTEE OF SUMMIT BANK
FINANCIAL REPORT FOR THE YEAR 2015 and 2016
 INTRODUCTION OF SUMMIT BANK LTD:

Summit bank ltd is one of the fastest growing commercial banks of

Pakistan, which, in a very short span of time, has expanded its network
across the country and built an infrastructure based on state of art
“Risk Management Framework” as well as “IT platform”. Also targeting
to be a universal bank in terms of providing products and services in all
key segments of banking i-e. Corporate and Investment Banking, Trade
Finance, Commercial Mid Market / SMEs, and Consumer Banking, it
commenced its operations in August 2006.

The Pakistan operations of Rupali Bank Limited were acquired by Arif

Habib securities limited under the scheme of amalgamation approved
by the state bank of Pakistan. The name of Rupali bank Ltd was
subsequently changed to Arif Habib Rupali bank ltd and then finally to
Arif Habib bank ltd in October 2007. On 31st march 2010, suroor
investment ltd , a company incorporated in Mauritius, acquired 59.41%
stake in Arif Habib bank ltd from Arif Habib securities ltd, and on 18 th
august 2010, Arif Habib bank ltd was rebranded as summit bank ltd.

Suroor investments ltd, also entered into share purchase agreements

(SPAs) with majority shareholders of my bank ltd Atlas bank ltd, who
after completion of the transaction have merged in summit bank ltd
expanding the banks geographical outreach with a network of 188Real-
time online branches across the country. In line with the managements
vision of making this bank a front runner amongst its peer banks, this
merger has brought synergies and access to a wider range of markets
and customers.
By acquiring one of the best IT platforms of the worlds, offering web
and SMS based banking to the customers besides providing superior
MIS to the management; the bank is committed to be recognized as a
preferred supplier of financial services to the markets it serves. To
achieve these goals, the bank will strengthen itself in the financial
service industry, leverage optimal mix of technology to attain operating
cost efficiencies, achieve product and service differentiation, while at
the same time growing its footprint through further expansion of its
branch network across the country, because we are COMMITTED TO
YOU.

HISTORY:
In May of 1924 our bank was established as Salix State Bank with our
first office located in Dunlo, PA. In the first 10 years the Bank survived
the 1929 stock market crash when the Board of Directors subsidized
the Bank with their own money.

The Sidman, Salix and Beaver dale Offices were opened by 1974 when
we celebrated 50 years in business with steady growth and reporting
Assets of $14 Million. Our Richland Office opened in 1980 and our
Corporate Office was relocated to this building.

Salix State Bank became Summit Bank in 1982 to reflect our climbing
success. In 1989 our Trust and Investment Division was established.
And by 1990 we had expanded to include 6 Community Offices adding
Downtown Johnstown, Portage and Westmont locations. We welcomed
new technology with two ATMs for convenience banking for our
customers and community. In October 2007, Arif Habib Securities
Limited under the Scheme of Amalgamation set by the State Bank of
Pakistan acquired the Pakistan Operations of Rupali Bank Limited;
hence forming Arif Habib Bank. In 31st March 2010, Suroor Investments
Ltd, a Mauritius based investment firm, acquired 59.41% stake in Arif
Habib Bank Ltd from Arif Habib Securities Ltd, and on the 18th of
August 2010, Arif Habib Bank Ltd was rebranded as Summit Bank Ltd.
Summit Banks parent company, Suroor Investments Ltd, later acquired
majority shares of MyBank Ltd and Atlas Bank Ltd in Pakistan. The
operations of the later mentioned banks were then merged under the
single umbrella of Summit Bank Ltd, thus expanding the Bank’s network
to more than 193 Branches.

MISSION:
The mission of the department is to serve as the link between
prospective employees and the institution in an attempt to recruit and
hire the most qualified individuals. Without regard to race, age or
disability. To spearhead the evolution of socially conscious
consumerism in Pakistan by offering innovative and cost effective
products, services and solutions to best serve our versatile clientele.
Summit Bank prides itself on being the bank that its customers can trust
and rely on for the best banking and financial services in the market.

 To be a financial institution based on trust, integrity, and good

governance.
 To deliver financial solutions to our customers.
 To provide equal opportunities & a professional working
environment to our employees.
 To provide fair returns to our shareholders on their investment.
 To serve the community at large.

VISION:
Our vision is to become a truly digital bank and we are undertaking this
journey with our customers support by promising them new age
banking services. To be the preferred provider of financial product and
services to the market. To refine and redefine the corporate culture of
Pakistan by setting unprecedented standards of excellence in service,
delivery and consumer satisfaction.
OBJECTIVE:
An increase of 36.56% (RS 226.729 million) as compared with earnings
under this head of RS 620.220 million last year. To further improve non
mark-up income of the bank, the management is committed to
providing swift and quality services to existing customers and new
customers.

GOALS:
A high value investment and protection plan that is designed to help
customers meet a number of financial needs which includes;

 Business
 House building
 New car
 Vacation planning
 Inter generational wealth transfer
 Inflation mitigation
 Income support
 Marriage/education
 Retirement

CORE COMPETENCIES:
 24/7 banking of some Karachi branches is main core competency
of summit bank.
 Hplus software is core competency of summit bank.
 Guardless banking in some branches of Karachi is the core
competency.
  Evening banking.
 Saturday on banking.
 On sites ATM with all branches.

STRATEGIC CONTROL:
 All operational department are controlled by head office through
CPU.
 All hub branches are monitored by centralized CCTVs.
 Mystery shoppers are the persons who come in the branches to
check the staff operation surprise.

VALUE OF SUMMIT BANK:

 It fulfills request and demand of valued customers.
 Advanced technological software and updation are used to satisfy
their valued customers.
 Provide best product and services to their customers.

Marketing Mix :

Product:
 Superior Quality
 Trusted brand Image
 Unusual or additional features
 Extended Guarantees

Price:

 Value addition
 Special Discounts

Promotion:
  Innovative advertising
 campaigns
 Loyalty Promotions
 Special Offers
 Direct Mail
 PR, Sponsorships to brands

Place:

 Extensive availability
 More outlets than competitors
 Innovative methods, e.g.tele-banking , E-banking
 Careful selection of quality channels

People:

 Highly trained staff

 Better customer care
 Greater efficiency
 Personal attention
 Specialist and professional skills

Process:

 Advances in technology, e.g. ATMs, Call Centers , fraud

detection
 Systems, e.g. cash-dispenser, ticket vending machines
 Fast response time

Physical Evidence:

 Comfortable surroundings
 Superior décor
 Qualifications
 Evidence of professional standing, e.g.,membership of
professional bodies
  Strong, Recognizable Corporate image, e.g. Staff Uniforms,
house style
 High Quality tangibles

SWOT ANALYSIS:
STRATEGIC POSITION:

SWOT (Internal analysis)

STRENGTH:

 24/7 banking of some Karachi branches is main core competency

of summit bank.
 Hplus software is core competency of summit bank.
 Guard less banking in some branches of Karachi is the core
competency.
 Evening banking
 Saturday on banking
 On sites ATM with all branches
 Free online facilities for all accounts
 Free pay order for all accounts
 Flat hierarchies, high degree of flexibility and lean decision-
making

WEAKNESS:

 No of branches are comparatively less from their competitors e.g.

(Meezan bank Al Habib, etc)
 Bleeding infection ratio i.e. Nonperforming loans to advances
 None complying capital adequacy ratio as KASB moratorium
 Audit rating is C
OPPORTUNITIES:

 Acquisition of existing entities

 Advancement in mobile banking and internet banking
 Advancement of IBFT (internet banking fund transfer)
 Expansion of bank in different countries

THREAT:

 There is large size and volume competitors who have large CAR
ratio
 Large no of competitors in the banking market
 Perfect competition
 Deficiency in financing policies

PESTLE ANALYSIS:
POLITICAL FACTORS:

 Political instability
 Focus on govt. regulation
 Budget and budget measure
 Foreign direct investment

ECONOMICAL FACTOR:

 Business cycle impact also effect the policies of summit bank

 Effect of demand and supply
 Effect of inflation and discount rate
 Effect of GDP and GNP impact
 Regulation of state bank
 Monitory and fiscal policies

SOCIAL FACTOR:
  Change in life style
 Literacy rate
 Growth in population

TECHNOLOGICAL FACTOR:

 Latest and advanced ATM

 IT services and mobile services
 Credit card facilities

RESOURCES AND COMPETENCIES OF SUMMIT BANK:

 Infrastructure
 Human resources
 Technical resources
 Financial resources
 Building
 Installations

EXPECTATION AND PURPOSES:

 To be a financial institution based on trust, integrity, and good

governance
 To deliver financial solutions to our customers
 To provide equal opportunities and professional working
environment to our employees
 To provide fair return to our shareholders o their investment
 To serve the community at large
 To discharge corporate social responsibility
UNDERSTANDING STRATEGIC DEVELOPMENT OF SUMMIT
BANK:
There are three visions or lenses

 As a design lens
 As an experience lens
 As an idea lens

Summit bank used this entire domain for strategy development but
most used design lens for developing and implementing the strategies

STRATEGIC DEVELOPMENT PROCESS IN SUMMIT BANK:

 Summit bank uses a planning system which follows the direction
from top management to branch level. Form CEO of summit bank
to branch manager and their subordinates
 Board of directors and top executive of summit bank has
leadership strategies
 Summit bank negotiates with government and its powerful
stakeholder for its strategic development it is come under head of
summit bank politics
 Summit bank provides training to their employee and encourage
to mutual question for the improvement of product and services
of the bank and it causes bank creativity, motivational and
learning.
 Imposed strategy in most of the cases summit bank used imposed
strategies for the profitability enhancement and discourages
mutual questioning

BUSINESS ENVIRONMENT OF SUMMIT BANK:

It consist of factors which affect almost all the organization
PESTEL framework/network

It divides environmental influence into six types

POLITICAL:

 Government rule and regulation

 Government stability
 Taxation policy
 Foreign trade regulation
 Social welfare policies

ECONOMICAL:

 Business cycle
 GDP/GNP/Interest rates/inflation
 Unemployment
 Disposable income

SOCIAL:

 Demographics
 Characteristics of population
 Income distribution
 Social events
 Life style changes
 Attitude towards work
 Consumerism

TECHNOLOGICAL:

 Government spending on research

 Focus on new technology
 New discoveries/developments
  Speed of technology transfer
 Rate of product obsoletion

ENVIRONMENTAL:

 Environmental protection laws

 Waste disposal of corporation
 Energy conversation and consumption

LEGAL:

 Employment laws
 Health and safety regulation
 Product safety
 Legislation regarding prevention of monopolies

STRAEGIC CAPABILITIES:
THRESHOLD PRODUCT FEATURES (MINIMUM EXPECTATION):

 Security and protection of customer deposit

 Cheque books, ATM card, pay order, demand draft etc…..

CRITICAL SUCCESS FACTORS (CSF):

 Free cheque book, free pay order free ATM card

 Provide services after banking time

THRESHOLD RESOURCES:

Basic product and services of bank that a valued customers and fulfill
their basic needs and wants e.g. operational deptt. Clearing deptt.
Financing dept…..

UNIQUE RESOURSES:
  Summit classic account gives special rate of profile as compared
to their competitors
 Hamara family account is also unique resource
 Hplus software is also unique resource of summit bank that
enhancing the performance of the bank

CORPORATE SOCIAL RESPONSIBLITIES:

The technology driven G2P (government to person) services were
continued during the year 2013 to join hands with the government of
Pakistan for poverty alleviation. The bank has registered more than
165,000 beneficiaries and has disbursed more than RS 2.9 billion under
the Benazir income support program so far.

EMPLOYEE WELFARE:

 Medical care for OGII and family medical

 Loans for houses and car can easily be availed for employee by
summit bank
 Interest free or minimum interest loans
 Discounted rates
 Extended sick leaves, casual leaves, ex Pakistan leave, maternity
leave and paternity leaves for the employee of summit bank
 Assistance of dependence

WORKING CONDITION PROVIDED BY SUMMIT BANK:

 Health and safety issues

 Working surroundings fire extinguishers are installed in variety of
area in every braches of summit bank, smoke alerts etc..
 Social supporting clubs-provide Sunday cricket matches, get
together on Sunday for the motivational and mind freshness of
the employee
  Safety standards

JOB DESIGN:

 Cost/economic efficiency
 Satisfaction level (both are inversely proportional) e.g. if cost
efficiency increases the satisfaction level decreases
 There should be increases in satisfaction level instead of cost
efficiency

In banking industry especially private sector, there it tough banking

hours for the employee which can reduce the efficiency of the
employee and that can cause the reduction in productivity and
motivation and socialization of the employee.

POTENTIAL ADDED VALUE ROLES OF THE CORPORATE PARENT

OR HEAD OFFICE OF SUMMIT BANK:
I. Provide mission, vision, statements and core values
II. Provide efficient systems
III. Expertise
IV. Investments (additional investments)
V. Provide other resources (land/machine)
VI. Head office might foster innovation
VII. Head office provide coaching and counseling
VIII. Head office support in activities which could minimize the risks
IX. Head office might provide efficient networks or references
X. Head office standardized performance assessments
XI. Head office intervene positively in case of conflicts
XII. Head office might be acting in a visionary capacity
XIII. Head office enhances coordination and cooperation

Bank’s Organogram:
MANAGEMENT COMMITTEE OF SUMMIT BANK:
H.E NASEER ABDULLA HUSSAIN LOOTAH

Chairman

MR.HUSAIN LAWAI
Vice chairman

MR. MUHAMMAD ZAHIR ESMAIL

President and CEO

MR. SHEHRYAR FARUQUE

Director

MR.ASADULLAH KHAWAJA

Director

MR. MD. ATAUR REHMAN PRODHAN

Director

MR. MOHAMMAD FAISAL SHAIKH

Director

H.E NASSER ABDULLA HUSSAIN LOOTAH (DIRECTOR AND

CHAIRMAN):
H.E. Nasser Abdulla hussain lootaa is the chairman & founder of Nasser
Abdulla lootaa group setup more than 45 years ago in the UAE. He is
patron of the Australian business council- Dubai. Based on strong
leadership capabilities he was appointed as the director for the office of
the late vice president, Prime Minister Sheikh Maktoum of Dubai.

MR. HUSSAIN LAWAI (VICE CHAIRMAN):

Mr. Hussain lawai is a seasoned banker having vast experience of
banking and financial service industry. He has previously served as
president and chief executive officer at MCB bank and director at
security investment and finance limited, UK. He holds a masters degree
in business administration from the institution of business
administration, Karachi. He was president and CEO of summit bank
limited from November, 2008 to February 2016 and currently he is the
vice chairman of summit bank limited.

MR. MUHAMMAD ZAHIR ESMAIL (PRESIDENT AND CEO):

MR. Muhammad Zahir Esmail is a graduate from Karachi University and
a seasonal banker with 45 years of experience in the banking industry.
At the start of his banking career, he served Habib bank limited for six
year as manager of different branches in Karachi.

MR SHEHRYAR FARQUE (DIRECTOR):

Mr. Shehryar Faruque has more than 30 years of experience on various
positions of Ghulam Faruque Group. He has completed his B.A.
Marketing & Management from Davis & Elkins College (USA).
Currently, he is on the Board of NBP Fullerton Asset Management Ltd,
as well as on the of several companies of Ghulam Faruque Group.

MARKET FOR BANKING SPECIALLY FOR SUMMIT BANK:

Market may defined as

 People or organizations with needs to satisfy

 Money to spend
 Willingness to spend

Market segmentation for summit bank

GEOGRAPHICS:

 Local, national, city based and rural and urban area based
branches of summit bank
 Summit bank also segments their market on the basis of region of
Pakistan

DEMOGRAPHIC:

 Summit bank has target all kind of demographic personality

 Low salary person account, mahana amdan account, daily deposit
account, summit classic account, Hamara family account and
summit advantage discount.

BANK TARGET AND PRODUCT MARKET:

 Credit card market

 Loan/financing market
 Term deposit market
 Fixed deposit market
 Insurance market
 Islamic banking product
 Mobile/internet based market
 High net worth client market
 Corporate market

BUSINESS SEGMENT:

CORPORATE FINANCE:
This include underwriting, securitization, investment banking,
syndications, IPO related activities and secondary private placements.

TRADING AND SALES:

This segment undertakes the banks treasury, money market and capital
market activities.

RETAIL BANKING:

Retail banking provides services to small borrowers i.e. consumers,

small and medium enterprise and to the agriculture sector. It includes
loans, deposits and other transactions with retail customers.

COMMERCIAL BANKING:

This includes loans, deposits and other transactions with corporate

customers.

PAYMENT AND SETTLEMENT:

This includes payments and collections, funds transfer, clearing and

settlement with the customers.

GEOGRAPHICAL STATEMENTS:

The bank conducts all its operations in Pakistan.

FINANCIAL REPORT OF SUMMIT BANK :

FOR THE YEAR 2016:
FOR THE YEAR 2015:
Financial reporting is the process of producing statements that
disclose an organization's financial status to management, investors and
the government.
Financial reporting includes the following: the external financial
statements (income statement, statement of comprehensive income,
balance sheet, statement of cash flows, and statement of stockholders'
equity) the notes to the financial statements.
PEER ANALYSIS:
KEY INFORMATION:

Revenue Net income Market

Company Employees
(TTM) (TTM) cap

National Bank of
9.36bn -220.72m 3.22bn 934.00
Kenya Limited

Summit Bank Ltd 10.68bn -1.32bn 4.25bn 2.12k

Sanasa Development
10.22bn 488.97m 5.51bn 1.33k
Bank Ltd

Unity Bank Plc. 111.38bn 1.21bn 6.20bn 2.33k

Skye Bank Plc 127.91bn -40.80bn 6.94bn 4.41k

STOCK PERFORMANCE:

Price/earnings Price/book Price/cash Price/sales

Company
(TTM) value (MRQ) flow (TTM) (TTM)

National Bank
of Kenya -- 0.318 5.98 0.3962
Limited

Summit Bank -- 0.4062 -- 0.6853

 Price/earnings Price/book Price/cash Price/sales
Company
(TTM) value (MRQ) flow (TTM) (TTM)

Ltd

Sanasa
Development 9.93 0.7724 8.13 1.33
Bank Ltd

Unity Bank Plc. 5.14 0.0737 2.01 0.0754

Skye Bank Plc 2.50 0.0672 -- 0.086

PROFITABILITY:

Gross Gross Net Profit

Net profit
Company margin margin margin
margin (TTM)
(TTM) (5 yr avg) (5 yr avg)

National Bank of
-- -- -2.46 3.71
Kenya Limited

Summit Bank Ltd -- -- -22.99 -26.81

Sanasa Development
-- -- 11.76 15.55
Bank Ltd

Unity Bank Plc. -- -- 1.47 0.4439

Skye Bank Plc -- -- -50.49 0.8784

GROWTH RATES:

Net Net Capital

Revenue Revenue Dividend
income income expenditure
(YOY (5 yr (5 yr
Company (YOY (5 yr (5 yr
change growth growth
change growth growth
%) rate) rate)
%) rate) rate)

National
Bank of
0.6497 13.80 114.06 -28.90 0.5224 --
Kenya
Limited

Summit Bank -
-0.7526 2.16 -- 2.94 --
Ltd 1,020.01

Sanasa
Development 23.72 22.06 -43.97 1.11 -6.65 --
Bank Ltd

Unity Bank
10.63 16.95 -53.43 -4.11 -6.52 --
Plc.

Skye Bank Plc 18.60 15.09 -521.01 -- 27.62 --