Press Release
VIS Upgrades Broker Fiduciary Rating of Summit Capital (Private) Limited
Karachi, June 30, 2025: VIS Credit Rating Company Ltd. (VIS) has upgraded the Broker Fiduciary Rating of Summit Capital (Private) Limited (‘SCPL’ or ‘the Company’) to ‘BFR3+’ from ‘BFR3’. Rating of BFR3+ denotes good fiduciary standard. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on June 28, 2024.
The rating signifies sound management and client services, and effective internal control and regulatory compliance, while ownership and governance framework, along with business and financial sustainability, are considered adequate.
SCPL is engaged in providing equity and commodity brokerage services along with research to institutional as well as retail clients. Major shareholding of the Company is vested with Bank Makramah Limited (Formerly Summit Bank Limited), who serves as the parent company. The Company provides both online and assisted trading services to its clients, and has offices in Karachi and Lahore. The Company holds Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange Limited (PSX) and is registered with SECP to provide Trading & Self Clearing Services. External auditors of the Company belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP).
The rating upgrade reflects the Company’s sound management and client services framework, supported by multiple channels facilitating seamless trade execution for clients. Further enhancement in client services has been noted through the provision of prompt trade alerts upon transaction execution. While a complaint header is available on the homepage, its visibility and user accessibility may be further improved. Rating upgrade is also supported by the Company’s internal control and regulatory compliance framework, featuring established internal policies, daily monitoring of employee’s personal trade positions, and monthly reviews of internal controls and compliance levels. However, formulating a separate comprehensive conflict of interest policy and disseminating the same to all stakeholders may further strengthen the internal control framework of the Company. Rating also takes note of the Company’s ownership and governance structure, comprising a four-member board of directors and a single board committee, namely the audit committee. Increasing the board size, along with inclusion of independent may further strengthen the overall governance framework and facilitate the formation of additional board committees.
Assessment of the Company’s financial profile indicates improvement in the Company’s earning profile, primarily driven by increase in the brokerage revenue, supported by overall positive industry trends. Consequently, the Company’s operational efficiency improved, though there is room for further improvement. Liquidity profile of the Company is considered adequate, while market risk is low. Capitalization indicators of the Company are considered manageable. Going forward, enhancement in earning profile, along with improvement in liquidity profile and leverage indicator as well as maintenance of market risk, and gearing levels will remain important for the rating.
For further information on this rating, please 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Broker Fiduciary Ratings:
https://docs.vis.com.pk/Methodologies%202024/Broker-Fiduciary-Rating.pdf
VIS Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf