Karachi, Pakistan — Telenor Microfinance Bank (TMB), the operator of Pakistan’s leading digital financial services platform, easypaisa, has received an equity investment of $10 million from its shareholders, Telenor Group and Ant Group. The investment comes as easypaisa gears up to launch its digital retail banking operations, subject to regulatory approvals, marking a major milestone in the bank’s digital transformation journey.
This capital infusion underscores the unwavering confidence of shareholders in TMB’s mission to drive financial inclusion across Pakistan. It also reaffirms their commitment to leveraging innovative solutions to reshape the country’s financial services landscape.
Shareholder Confidence in a Digital Pakistan
Irfan Wahab Khan, Chairman of the Board of Directors, TMB/easypaisa, expressed his enthusiasm about the development:
“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.”
Douglas Feagin, President of Ant International, Senior Vice President of Ant Group, and a Director on the Board of TMB, echoed these sentiments:
“The recent equity investment underscores our long-term commitment to Pakistan’s financial ecosystem. We are excited to support easypaisa and the journey to empower millions of Pakistanis through digital financial inclusion and innovative banking solutions.”
Mr. Feagin, who traveled to Pakistan to confirm the investment, met with easypaisa’s leadership, government officials, and local partners. His engagements included discussions with Ali Pervez Malik (Minister of State for Finance), Shaza Fatima Khawaja (Minister for Information Technology), and Jameel Ahmed (Governor of the State Bank of Pakistan), highlighting Ant Group’s strategic focus on digitalizing financial services in Pakistan.
Impressive Q3 2024 Financial Performance
TMB’s Board of Directors approved the Q3 2024 financial results on October 25, 2024, showcasing an impressive Profit Before Tax (PBT) of PKR 3.9 billion — a staggering 374% year-on-year growth compared to PKR 0.82 billion in Q3 2023. This marks the third consecutive quarter where the bank has reported a profit exceeding PKR 1 billion.
The bank’s robust growth was driven by:
- A surge in digital lending volumes.
- An increase in deposits.
- Higher revenue from branchless banking.
- Benefiting from elevated discount rates.
The net markup and non-markup income rose by 69% and 38%, respectively. The bank also reported a Capital Adequacy Ratio (CAR) of 30.9%, reflecting its ability to sustain growth while delivering strong profitability in a challenging economic climate.
Strengthening Foundations for Digital Retail Banking
Jahanzeb Khan, CEO & President of TMB/easypaisa, emphasized the significance of this milestone:
“The investment reaffirms our shareholders’ commitment to our mission. The equity injection, combined with strategic discussions and our stellar Q3 2024 performance, positions us to expand our digital offerings and advance our digital retail banking journey. This enables us to deliver innovative financial solutions to millions of Pakistanis.”
Since 2018, TMB has received $319 million (PKR 52 billion) in equity investment from its shareholders. These funds have bolstered the bank’s CAR, strengthened its balance sheet, and facilitated investments in people, systems, and processes to enhance product offerings and elevate the customer experience.
The Road Ahead
easypaisa, which received No Objection Certificate and In-Principle Approval for a Digital Retail Bank license from the State Bank of Pakistan (SBP) in 2023, now boasts over 45 million registered accounts, representing one in four Pakistani adults. The platform continues to leverage technology and collaboration to drive financial inclusion and empower underserved communities.
With the recent equity investment, solid financial results, and strong regulatory support, easypaisa is well-positioned to transform Pakistan’s banking landscape and further its mission of promoting financial inclusion across the country.
