KARACHI, November 18 2024: Telenor Microfinance Bank (TMB), the operator behind Pakistan’s leading digital financial services platform, easypaisa, has announced the successful receipt of US$10 million in equity investment from its shareholders, Telenor Group and Ant Group. This investment comes as easypaisa prepares to launch its digital retail banking operations, subject to regulatory approvals, marking a significant milestone in the company’s digital transformation.
The new capital injection is a vital step in easypaisa’s journey to becoming a key player in Pakistan’s financial ecosystem. It reflects the growing confidence of its shareholders in the bank’s ability to bring financial inclusion to Pakistan through digital finance solutions.
Speaking on the occasion, Irfan Wahab Khan, Chairman of the Board of Directors at TMB/easypaisa, expressed his optimism: “Our commitment to advancing a digital Pakistan is stronger than ever. With solid financial results highlighting sustainable growth, easypaisa is transforming into a platform at the forefront of digital finance. We are determined to reshape banking in Pakistan and serve unbanked and underserved communities through innovative digital solutions.”
The support from Telenor Group and Ant Group is further solidified with comments from Douglas Feagin, President of Ant International and Senior Vice President of Ant Group. “The investment underscores our long-term commitment to Pakistan’s financial ecosystem,” he said. “We are thrilled to support easypaisa in empowering millions of Pakistanis through digital financial inclusion and innovative banking solutions.”
Mr. Feagin, who visited Pakistan to confirm this investment, also held meetings with local partners and government officials to discuss Ant International’s ongoing support for easypaisa’s digitalization efforts.
In its latest financial report, TMB has posted a remarkable year-to-date Profit Before Tax (PBT) of PKR 3.9 billion for Q3 2024, showcasing a 374% year-on-year growth compared to the previous year. This impressive profitability surge was fueled by significant growth in digital lending volumes, increased deposits, and better performance in branchless banking, all supported by a higher discount rate.
Jahanzeb Khan, CEO and President of TMB/easypaisa, emphasized, “The recent investment reaffirms our shareholders’ commitment to our mission of financial inclusion. With the support of our board and shareholders, we are in an even stronger position to expand our digital offerings and continue driving financial inclusion across Pakistan.”
The bank’s net markup and non-markup income increased by 69% and 38%, respectively, and it maintained a strong Capital Adequacy Ratio (CAR) of 30.9%, underscoring its resilience and growth prospects even in challenging economic conditions. This is also the third consecutive quarter in which TMB has posted a profit of over PKR 1 billion.
Since 2018, TMB has received a total equity investment of US$319 million (PKR 52 billion), which has played a crucial role in enhancing its capital base and supporting the bank’s growth trajectory.
With more than 45 million registered users, easypaisa continues to be a dominant force in the Pakistani digital financial services landscape, serving one in four Pakistani adults. The bank has already received a No Objection Certificate and In-Principle Approval from the State Bank of Pakistan for its Digital Retail Banking License in 2023.
With the backing of its investors and its impressive financial results, easypaisa is set to expand further, offering innovative digital solutions and continuing to promote financial inclusion for millions of Pakistanis.
