Islamabad, (Newsman): Easypaisa prepares is in process of launching its digital retail banking operations in Pakistan, after getting its regulatory approvals.
For that Telenor Microfinance Bank (TMB), which is operator of Pakistan’s leading digital financial services platform, Easypaisa, has got US$10 million in equity investment through its shareholders, Telenor Group, and Ant Group.
Digital currency is getting vogue now. This financial injection exudes a pivotal measure in the Easypaisa’s running digital transformation travel and shows the strong confidence of both shareholders in the role the bank is playing in stremgthening financially inclusive in Pakistan.
Commenting on his opinion on the recent developments, Irfan Wahab Khan, Chairman, Board of Directors, TMB/Easypaisa, said, “Our vow to advancing a digital Pakistan is robusyt than ever. With strong financial outcomes that underscore sustainable growth, easypaisa is growing into an innovative platform at the forefront of digital finance, growing to reshape banking in Pakistan once again. We are proud to help the transformation of Pakistan’s financial tools landscape, making us to serve unbanked and underserved masses through groundbreaking tools in digital finance.”
Speaking on the event, Douglas Feagin, President of Ant International and Senior Vice President of Ant Group, and Director on the Board of Telenor Microfinance Bank/easypaisa stated, “The recent equity investment underscores our long-term vow to Pakistan’s financial ecosystem. We are excited to help easypaisa and the travel to empower millions of Pakistanis through digital financial inclusion and innovative banking tools.”
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Mr. Feagin, who came to Pakistan to make this investment, also conducted series of meetings with local shareholders and government authorities to reaffirm Ant International’s important support for easypaisa to maintain and expand digitalization and inclusive financial tools in the country.
Mr. Douglas Feagin also conducted meetings with Easypaisa’s key managament, the Minister of State for Finance, Ali Pervez Malik, the Minister for IT, Shaza Fatima Khawaja, and the Governor State Bank of Pakistan, Jameel Ahmed.
Moreover, the Board of Directors of TMB, in its session held on October 25, 2024, gave approval to the financial results for Q3 2024.
TMB registered a year-to-date Profit Before Tax (PBT) of PKR 3.9 billion for Q3 2024, showing an outstanding year-on-year (YoY) growth of 374% compared to Q3 2023 when PBT stood at PKR 0.82 billion only.
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Maintaining its robust performance trajectory and growing on the momentum from H1 2024, the growth in profitability was really driven by strong performance in digital lending volumes, an increase in deposits, and improved branchless banking revenue, backed by a higher discount rate.
In light of these near-term milestones, Jahanzeb Khan, CEO & President of TMB/easypaisa, commented, “The investment shows our shareholders’ promise to our mission. We are grateful to our Board for their sustained support and guidance. Moreover, the recent equity injection, coupled with the strategic discussions held, as well as our improvement in terms of Q3, 2024 performance, all strengthen our capabaility to extend our digital offerings and drive financial inclusion in Pakistan. With this strong support, we are poised to further our digital retail banking journey, delivering innovative financial solutions to masses of Pakistan.”
The net markup and non-markup source income jump by 69% and 38%, respectively. The Bank also sustained a robust Capital Adequacy Ratio (CAR) of 30.9%, a testament to its capability to mainatain operational growth while growing profitability and revenue in a challenging economic situation. This also shows the third consecutive quarter in which TMB has posted a profit of PKR 1 billion or more.
The Bank has overall got a total equity investment of US$ 319 million (PKR 52 billion) from its shareholders during the period 2018 till date.
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The robust profitability combined with shareholder investment would further bolster the Bank’s Capital Adequacy Ratio, making balance sheet stronger and enabling further investment in people, systems, and processes to enhance the Bank’s product offerings and improve customer experience.
It has already received a No Objection Certificate and In-Principle Approval for a Digital Retail Bank license from the SBP back in 2023, easypaisa has reached to over 45 million accounts —with every one in four Pakistani adults having a registered easypaisa account online.
Combining technology and collaboration, TMB/easypaisa remains committed to improving financial inclusion and empowering millions of Pakistanis.