Press Release

VIS Assigns Initial Broker Fiduciary Rating to Summit Capital (Private) Limited

Karachi, June 28, 2024: VIS Credit Rating Company Ltd. (VIS) has assigned initial Broker Fiduciary Rating to Summit Capital (Private) Limited at ‘BFR3’. Outlook on the assigned rating is ‘Stable’.

The rating signifies adequate internal controls, financial sustainability and client services and ownership and governance.

Summit Capital Private Limited is a private limited company, providing equity and commodity brokerage services and 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. Summit Capital Private Limited is a private limited company holding Trading Rights Entitlement Certificate (TREC) granted by Pakistan Stock Exchange Limited (PSX), registered with SECP to provide Trading & Self Clearing Services. External auditors of the company are Yousuf Adil Chartered Accountants. External auditors belong to category ‘A’ on the approved list of auditors published by the State Bank of Pakistan (SBP).

Assigned rating takes note of Company’s sound disclosure levels, however ownership and governance levels are considered adequate. At present, the Company’s board is represented by four members. Increasing the board size through inclusion of independent and certified members may be considered in order to strengthen overall governance framework. Additionally, it may also facilitate in the formation of other board committees. Overall management and client servicing procedures are considered adequate. Organizational structure of the Company is commensurate with the size of operations, however; enhancing trade procedures and investor grievance measures along with availability of research resources with greater visibility may be considered to improve customer satisfaction. Internal policies and procedures are present however, enhancing the scope of the same may be considered in order to strengthen the control framework.

Overall business and financial sustainability indicators of the Company are considered adequate, during CY23, the Company’s earning profile witnessed improvement owing to increase in the core brokerage revenues. Although, despite improvement, cost-to-income ratio of the Company is considered to be on the higher side. Liquidity profile is considered adequate and market risk is considered low. Capitalization indicators are also considered manageable. Gearing stood nil, albeit leverage indicator was higher at 1.10x during CY23 (CY22 1.40x). Overall business and financial sustainability is considered adequate. Going forward, improvement in the Company’s earning profile, efficiency levels, market share, while managing liquidity and capitalization indicators will remain important for 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

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2024 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .