Telenor Microfinance Bank (TMB), the operator behind Pakistan’s leading digital financial services platform, Easypaisa, has secured a $10 million equity investment from its shareholders, Telenor Group and Ant Group. This investment comes as Easypaisa gears up to launch its digital retail banking operations in Pakistan, pending regulatory approvals.
This capital infusion marks a crucial step in Easypaisa’s ongoing digital transformation and highlights the strong confidence of its shareholders in the bank’s role in fostering financial inclusion across Pakistan. Irfan Wahab Khan, Chairman of the Board of Directors for TMB/Easypaisa, commented, “Our commitment to advancing a digital Pakistan is stronger than ever. With solid financial results demonstrating sustainable growth, Easypaisa is evolving into a platform at the forefront of digital finance, set to reshape banking in Pakistan.”
Douglas Feagin, President of Ant International and Senior Vice President of Ant Group, and Director on the Board of Telenor Microfinance Bank/Easypaisa, stated, “This equity investment reaffirms our long-term commitment to Pakistan’s financial ecosystem. We are excited to support Easypaisa and its mission to empower millions of Pakistanis through digital financial inclusion and innovative banking solutions.” Feagin visited Pakistan to confirm the investment and engaged with local partners, government officials, and Easypaisa’s leadership, including meetings with the Minister of State for Finance, Ali Pervez Malik, Minister for Information Technology, Shaza Fatima Khawaja, and the Governor of the State Bank of Pakistan, Jameel Ahmed.
In its Q3 2024 meeting, the Board of Directors of TMB approved financial results showing a profit before tax (PBT) of PKR 3.9 billion, marking a remarkable 374% year-on-year growth compared to Q3 2023 when the PBT stood at PKR 0.82 billion. The strong performance was driven by significant growth in digital lending volumes, increased deposits, and better branchless banking revenue, all supported by a higher discount rate.
Jahanzeb Khan, CEO & President of TMB/Easypaisa, said, “This investment strengthens our shareholders’ commitment to our mission. The recent equity injection, combined with our strong Q3 2024 performance, enhances our ability to expand digital offerings and drive financial inclusion in Pakistan. We are well-positioned to advance our digital retail banking journey and deliver innovative financial solutions to millions of Pakistanis.”
The bank also reported a 69% growth in net markup income and a 38% increase in non-markup income. TMB maintained a robust capital adequacy ratio (CAR) of 30.9%, reflecting its ability to sustain operational growth and profitability amid challenging economic conditions. This marks the third consecutive quarter where TMB has posted a profit of over PKR 1 billion. Since 2018, TMB has received a total equity investment of $319 million (PKR 52 billion) from its shareholders.
