Karachi, Pakistan — Telenor Microfinance Bank (TMB), the operator behind Pakistan’s leading digital financial platform, easypaisa, has secured a $10 million equity investment from its shareholders, Telenor Group and Ant Group. This funding will fuel easypaisa’s preparations to launch digital retail banking operations, pending regulatory approval, marking a pivotal step in the bank’s digital evolution.
This investment reflects the shareholders’ strong confidence in TMB’s mission to enhance financial inclusion and revolutionize Pakistan’s financial services sector through cutting-edge innovations.
Driving a Digital Pakistan
Irfan Wahab Khan, Chairman of TMB and easypaisa, expressed his excitement about this progress:
“Our commitment to a digital Pakistan has never been stronger. Easypaisa is transforming into a leading digital finance platform with sustainable growth and innovative solutions to redefine banking in Pakistan. By reaching unbanked and underserved communities, we are reshaping the financial services landscape.”
Douglas Feagin, President of Ant International and Senior Vice President of Ant Group, echoed this sentiment:
“This equity investment reinforces our long-term commitment to Pakistan’s financial ecosystem. We are thrilled to support easypaisa in empowering millions through digital financial inclusion and advanced banking solutions.”
During his visit to Pakistan, Feagin met with key stakeholders, including government officials and the State Bank of Pakistan’s governor, to emphasize Ant Group’s focus on advancing digital finance in the country.
Impressive Q3 2024 Results
TMB’s financial results for Q3 2024, approved on October 25, revealed exceptional growth. The bank reported a Profit Before Tax (PBT) of PKR 3.9 billion, reflecting a 374% year-on-year increase. This is the third consecutive quarter where profits exceeded PKR 1 billion.
Key growth drivers included a surge in digital lending, rising deposits, and increased revenue from branchless banking. The bank’s net markup and non-markup income grew by 69% and 38%, respectively, while its Capital Adequacy Ratio (CAR) stood at a robust 30.9%.
Paving the Way for Digital Retail Banking
Jahanzeb Khan, CEO and President of TMB, highlighted the significance of this achievement:
“The equity injection, coupled with our strong Q3 performance, strengthens our position to expand our digital offerings and lead the digital retail banking journey. This milestone reflects our commitment to delivering innovative financial solutions to millions of Pakistanis.”
Since 2018, TMB has received $319 million (PKR 52 billion) in equity investments from its shareholders, enabling the bank to strengthen its CAR, enhance its balance sheet, and improve systems, processes, and customer experiences.
Transforming Pakistan’s Banking Landscape
Easypaisa, which received approval for a Digital Retail Bank license in 2023, now serves over 45 million registered users, equivalent to one in four Pakistani adults. With new investments, remarkable financial performance, and strong regulatory backing, easypaisa is poised to redefine banking in Pakistan and drive financial inclusion on a broader scale.
