Wednesday, 29 October 2014
Banks are supposed to lend and Summit Bank (KSE: SMBL) does that. Lending is also supposed to be risky at times, and Summit is facing just that. Being small in size does not help, but the yesteryears problems seem to have made a comeback at Summit. The asset and deposit bases are almost flat - gross spreads have improved, cost of deposit is down but provisioning is back to haunt.