The board of directors of Summit Bank Limited has decided to issue convertible preference shares having the face value of Rs 10 each to the shareholders. The bank's board of directors in its meeting held here on Wednesday decided to issue convertible preference shares of the bank in the ratio of 1:5 (1 preference share of the bank for every 5 ordinary shares held by the shareholder) subject to approval from the regulatory authorities, an information sent to Karachi Stock Exchange said.
An application to list these convertible preference shares is being made to Karachi Stock Exchange, it added. About the salient features of the convertible preference shares, it was stated that the listed, convertible, perpetual, non-cumulative, irredeemable preference shares would be offered to the existing ordinary shareholders on the basis of 1 share for every 5 shares held ie 20 percent.
The tenor would be five years with total amount of Rs 2,155,959,160. The issue price would be at par value ie Rs 10 per share and the dividend rate at 5 percent in the form of bonus preference shares subject to profitability and regulatory compliance.
The board of directors of the bank also announced the financial results of the bank for the quarter ended March 31, 2012. According to the financial results, the after tax loss of Summit Bank Limited increased to Rs 556.437 million in the quarter ended March 31, 2012 as compared to after tax loss of Rs 482.459 million in the corresponding quarter in 2011. The bank's loss per share stood at Re 0.52 in the period under review against Re 0.67 in the same quarter last year.
The bank's mark-up/return/ interest earning increased to Rs 2.799 billion in this quarter against Rs 1.834 billion in the same quarter last year while the bank's mark-up/return/interest expenses increased to Rs 2.672 billion against Rs 1.678 billion.
The bank's total non-mark-up/interest income increased to Rs 286.060 million in this quarter against Rs 99.412 million in the same quarter last year while total non-mark-up/interest expenses increased to Rs 982.601 million against Rs 684.984 million. The bank's loss before taxation reduced to Rs 460.783 million in this quarter against Rs 684.982 million in the same quarter last year.