Islamabad, Nov 18: Telenor Microfinance Bank (TMB), operator of Pakistan’s leading digital financial services platform, easypaisa, has received US$10 million in equity investment from its shareholders, Telenor Group, and Ant Group, as easypaisa prepares to launch its digital retail banking operations in Pakistan, subject to regulatory approvals.
This capital injection represents a pivotal step in the easy paisa’s ongoing digital transformation journey and reflects the strong confidence of both shareholders in the role the bank is playing in empowering a financially inclusive Pakistan.
Sharing his thoughts on the recent developments. Irfan Wahab Khan, Chairman, Board of Directors, TMB / easypaisa, said, “Our commitment to advancing a digital Pakistan is stronger than ever. With solid financial results that underscore sustainable growth, easypaisa is evolving into an innovative platform at the forefront of digital finance, ready to reshape banking in Pakistan once again. We are proud to support the transformation of Pakistan’s financial services landscape, enabling us to serve unbanked and underserved communities through groundbreaking solutions in digital finance.”
Commenting on the occasion, Douglas Feagin, President of Ant International and Senior Vice President of Ant Group, and Director on the Board of Telenor Microfinance Bank / Easypaisa remarked, “The recent equity investment underscores our long-term commitment to Pakistan’s financial ecosystem. We are excited to support easy paisa and the journey to empower millions of Pakistanis through digital financial inclusion and innovative banking solutions.”
Mr. Feagin, who traveled to Pakistan to confirm this investment, also held a series of meetings with local partners and government officials to reaffirm Ant International’s strategic support for Easypaisa to continue and expand digitalization and inclusive financial services in the country.
Mr. Douglas Feagin also held meetings with Easypaisa’s leadership, the Minister of State for Finance, Ali Pervez Malik, the Minister for Information Technology, Shaza Fatima Khawaja, and the Governor of the State Bank of Pakistan, Jameel Ahmed. Furthermore, the Board of Directors of TMB, in its meeting held on October 25, 2024, approved the financial results for Q3 2024.
TMB posted a year-to-date Profit Before Tax (PBT) of PKR 3.9 billion for Q3 2024, reflecting an outstanding year-on-year (YoY) growth of 374% compared to Q3 2023 when PBT stood at PKR 0.82 billion. Continuing its impressive performance trajectory and building on the momentum from H1 2024, the growth in profitability was largely driven by strong growth in digital lending volumes, an increase in deposits, and better branchless banking revenue, supported by a higher discount rate.
In light of these recent milestones, Jahanzeb Khan, CEO & President of TMB / easypaisa, stated, “The investment reaffirmed our shareholders’ commitment to our mission. We are grateful to our Board for their continued support and guidance. Moreover, the recent equity injection, combined with the strategic discussions held, as well as our success in terms of Q3, 2024 performance, all strengthen our ability to expand our digital offerings and drive financial inclusion in Pakistan. With this strong backing, we are poised to advance our digital retail banking journey, delivering innovative financial solutions to millions of Pakistanis.”
The net markup and non-markup income grew by 69% and 38%, respectively. The Bank also maintained a robust Capital Adequacy Ratio (CAR) of 30.9%, a testament to its ability to sustain operational growth while elevating profitability and revenue in a challenging economic environment. This also marks the third consecutive quarter in which TMB has posted a profit of PKR 1 billion or more.
The Bank has received a total equity investment of US$ 319 million (PKR 52 billion) from its shareholders during the period 2018 to date. The strong profitability coupled with shareholder investment will further bolster the Bank’s Capital Adequacy Ratio, strengthen its balance sheet, and enable further investment in people, systems, and processes to enhance the Bank’s product offerings and elevate the customer experience.
Having already received a No Objection Certificate and In-Principle Approval for a Digital Retail Bank license from the SBP back in 2023, Easypaisa has grown to over 45 million registered accounts with one in four Pakistani adults having a registered easypaisa account. Leveraging technology and collaboration, TMB/easypaisa remains committed to promoting financial inclusion and empowering millions of Pakistanis.
