Wednesday, May 22, 2024

Telenor Microfinance Bank Announces PKR 1.2 Billion Pre-tax Profit for Financial Year 2023, a Testament to its Innovative Digital-First Banking Model

Telenor Microfinance Bank Announces PKR 1.2 Billion Pre-tax Profit for Financial Year 2023, a Testament to its Innovative Digital-First Banking Model

Telenor Microfinance Bank (TMB), operator of Pakistan’s leading digital financial services platform easypaisa, announced its financial results for the year ended December 31, 2023, marking a remarkable turnaround with a profit before tax of PKR 1.2 billion. This impressive performance and the securing of the In-Principle Approval for a Digital Retail Bank license from the State Bank of Pakistan in September 2023 are a testament to the Bank's digital transformation journey.

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The Bank reported revenue growth of 70% year-over-year of PKR 28 billion, driven by 90% growth in net markup income from higher deposits and favorable rates, as well as 65% growth in non-markup income to PKR 14 billion. Customer deposits grew 9.3% to PKR 50.9 billion, while the advances book increased 60% to PKR 18.6 billion. The Bank also maintained a robust capital adequacy ratio of 21.91%, well above regulatory requirements.

TMB's flagship digital financial services platform easypaisa, continued strong growth, serving over 13.2 million monthly active users in 2023, a 17% year-over-year increase. The easypaisa app saw 9.6 million monthly active app users, up 32% from 2022, maintaining its position as Pakistan's top financial app. In 2023, easypaisa processed over 2.1 billion transactions worth PKR 7 trillion, representing a substantial 56% growth in transactions and 77% growth in volume compared to 2022.

Commenting on the significant milestone, Kashif Ahmed, Acting President & CEO, TMB shared his thoughts; “Our remarkable financial turnaround in 2023, following the adoption of our digital-first strategy, is a testament to the unwavering dedication of our team and the trust placed in us by the State Bank of Pakistan, our Board, and our valued customers. This defining year has paved the way for an exciting future as we transition into a digital retail bank and witness the impressive growth of our easypaisa platform. We are poised to redefine digital banking in Pakistan, empowering all Pakistanis with innovative digital financial solutions. Together, we will continue to push boundaries through leveraging the power of technology to create a digital ecosystem for a prosperous, financially inclusive digital Pakistan.”

Driven by its commitment to innovation and customer-centric solutions, TMB has successfully catered to the unique financial needs of all segments across Pakistan. This dedication is evident in the remarkable statistic that today, 1 in every 4 adults across the country has a registered easypaisa account.

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TMB's transformation from a microfinance bank to a digital retail bank is subject to final regulatory approvals. The Bank remains focused on maintaining a robust balance sheet and exploring new avenues for sustainable growth. With its digital-first approach and commitment to innovation, the Bank is poised to shape the future of digital banking in Pakistan, empowering all Pakistanis to achieve their financial goals with ease and convenience, unlocking new opportunities to drive economic progress.

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Mazhar Ali Raza
Mazhar Ali Raza
Mazhar Ali Raza is a senior journalist from Karachi. He has served more than twenty years in journalism. He was recently associated with the dunya media group as a senior business reporter from the last eleven years . Prior to that he has worked for CNBC for the period of four years. His major beats were the energy auto banking and agriculture sector . He has covered many seminars and exhibitions in Pakistan and abroad as well .

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