KARACHI: Telenor Microfinance Bank (TMB) has received $10 million in equity investment from its shareholders, Telenor Group and Ant Group, as easypaisa prepares to launch its digital retail banking operations in Pakistan, subject to regulatory approvals.
The Bank has received a total equity investment of $ 319 million (PKR 52 billion) from its shareholders during the period 2018 till date.
This capital injection represents a pivotal step in the easypaisa’s ongoing digital transformation journey and reflects the strong confidence of both shareholders in the role the bank is playing in empowering a financially inclusive Pakistan.
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TMB has already received a NOC and In-Principle Approval for a Digital Retail Bank license from the SBP back in 2023 and after this NOC easypaisa has grown to over 45 million registered accounts. Now, one in four Pakistani adults have registered easypaisa account.
Douglas Feagin, President of Ant International and Senior Vice President of Ant Group, and Director on the Board of Telenor Microfinance Bank has also traveled to Pakistan to confirm this investment. He held series of meetings with local partners and government officials to reaffirm Ant International’s strategic support for easypaisa to continue and expand digitalization and inclusive financial services in the country. On this development, Irfan Wahab Khan, Chairman, Board of Directors, TMB, said, Telenor Microfinance Bank’s 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, he added.
“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,” he said.
Commenting on the occasion, Douglas Feagin, President of Ant International and Senior Vice President of Ant Group, and Director on the Board of Telenor Microfinance Bank/easypaisa remarked, “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.”
Jehanzeb Khan, CEO & President of TMB has said that the investment reaffirmed our shareholders’ commitment to our mission. “The recent equity injection, combined with the strategic discussions held, better performance in Q3, 2024, all strengthen the bank’s ability to expand digital offerings and drive financial inclusion in Pakistan”, he added.
With this strong backing, he poised to advance digital retail banking journey, delivering innovative financial solutions to millions of Pakistanis, he said.
As per approved the financial results for Q3 2024, TMB posted a year-to-date Profit Before Tax (PBT) of PKR 3.9 billion, reflecting an outstanding year-on-year (YoY) growth of 374% compared to Q3 2023 when PBT stood at PKR 0.82 billion.
The net markup and non-markup income grew by 69% and 38%, respectively. The Bank also maintained a robust Capital Adequacy Ratio (CAR) of 30.9%, a testament to its ability to sustain operational growth while elevating profitability and revenue in a challenging economic environment. This also marks the third consecutive quarter in which TMB has posted a profit of PKR 1 billion or more.
Copyright Business Recorder, 2024