Telenor Microfinance Bank (TMB), the operator of Pakistan’s leading digital financial services platform easypaisa, has announced its financial results for the year ending December 31, 2023, showcasing a significant turnaround with a profit before tax amounting to PKR 1.2 billion.
The impressive performance comes on the heels of securing the In-Principle Approval for a Digital Retail Bank license from the State Bank of Pakistan in September 2023, marking a pivotal moment in the bank’s digital transformation journey.
Key highlights of TMB’s financial report include a remarkable 70% year-over-year revenue growth, totaling PKR 28 billion. This growth was primarily fueled by a 90% surge in net markup income driven by higher deposits and favorable rates, along with a 65% increase in non-markup income amounting to PKR 14 billion. Notably, customer deposits witnessed a growth of 9.3% reaching PKR 50.9 billion, while the advances book surged by 60% to PKR 18.6 billion. TMB also maintained a robust capital adequacy ratio of 21.91%, surpassing regulatory requirements.
The success story extends to TMB’s flagship digital financial services platform easypaisa, which experienced strong growth, serving over 13.2 million monthly active users in 2023, marking a 17% year-over-year increase. The easypaisa app boasted 9.6 million monthly active app users, a significant 32% rise from 2022, solidifying its position as Pakistan’s top financial app. Transactions processed through easypaisa in 2023 exceeded 2.1 billion, with a total worth of PKR 7 trillion, representing a substantial 56% growth in transactions and 77% growth in volume compared to the previous year.
Kashif Ahmed, Acting President & CEO of TMB, expressed his thoughts on this significant milestone, attributing the bank’s success to the dedication of its team and the trust placed in them by stakeholders. He emphasized the pivotal role of technology in shaping the bank’s future and reiterated its commitment to redefining digital banking in Pakistan.
TMB’s transformation from a microfinance bank to a digital retail bank is pending final regulatory approvals. However, the bank remains steadfast in its commitment to maintaining a robust balance sheet and exploring new avenues for sustainable growth.
With its digital-first approach and focus on innovation, TMB aims to shape the future of digital banking in Pakistan, empowering citizens with convenient and innovative financial solutions, and unlocking new opportunities for economic progress.
The bank’s dedication to innovation is underscored by the statistic that one in every four adults across Pakistan now holds a registered easypaisa account, reflecting its successful outreach to diverse segments of society.
