Telenor Microfinance Bank (TMB), the operator of one of Pakistan’s leading digital financial services platform, easypaisa, has received US$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 latest round of investment is a critical step in easypaisa’s ongoing digital transformation. It underscores the confidence of its shareholders in the bank’s role in advancing financial inclusion in Pakistan, particularly among unbanked and underserved populations.
Commenting on the development, Irfan Wahab Khan, Chairman of the Board of Directors at TMB/easypaisa, emphasized the company’s commitment to driving a digital Pakistan.
“Our 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. 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.”
Douglas Feagin, President of Ant International and Senior Vice President of Ant Group, also commented on the milestone,
“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.”
Mr. Feagin, who travelled to Pakistan to confirm this investment, also held a 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.
Feagin, who visited Pakistan to finalize the investment, also met with key stakeholders, including easypaisa’s leadership, the Minister of State for Finance, Ali Pervez Malik, the Minister for Information Technology, Shaza Fatima Khawaja, and the Governor of the State Bank of Pakistan (SBP), Jameel Ahmed. These meetings reaffirmed Ant Group’s strategic support for the continued expansion of easypaisa’s digital offerings.
In addition to the new investment, TMB reported robust financial performance for Q3 2024. The bank posted a Profit Before Tax (PBT) of PKR 3.9 billion, reflecting an extraordinary 374% YoY growth compared to the same period in 2023. This growth was driven by a significant rise in digital lending volumes, an increase in deposits, and a surge in branchless banking revenues, further supported by higher discount rates.
Jahanzeb Khan, CEO and President of TMB/easypaisa, highlighted that the recent investment, combined with the bank’s impressive performance in Q3, strengthens easypaisa’s ability to scale its operations and drive financial inclusion.
“The investment reaffirmed our shareholders’ commitment to our mission. We are grateful to our Board for their continued support and guidance. Moreover, the recent equity injection, combined with the strategic discussions held, as well as our success in terms of Q3, 2024 performance, all strengthen our ability to expand our digital offerings and drive financial inclusion in Pakistan. We are poised to advance our digital retail banking journey with this strong backing, delivering innovative financial solutions to millions of Pakistanis.”
TMB’s success in 2024 is also reflected in its solid Capital Adequacy Ratio (CAR), which stands at an impressive 30.9%, demonstrating the bank’s strong financial foundation and ability to sustain growth in a challenging economic environment. This marks the third consecutive quarter where TMB has posted a profit of PKR 1 billion or more.
Since 2018, Telenor Microfinance Bank has received US$ 319 million (PKR 52 billion) in equity investment from its shareholders. This latest injection will further bolster the bank’s capital position and enable continued investments in people, systems, and technology, allowing it to enhance its product offerings and improve the customer experience.
easypaisa, which already boasts over 45 million registered accounts — with one in four Pakistani adults having an easypaisa account — is on track to become a full-fledged digital retail bank. Having received a No Objection Certificate and In-Principle Approval for a digital retail banking license from the State Bank of Pakistan (SBP) in 2023, the platform is poised for the next phase of its growth.
As easypaisa prepares to launch its digital retail banking services, it remains dedicated to empowering millions of Pakistanis, enabling greater financial inclusion, and promoting digital financial literacy across the country. The future of banking in Pakistan is poised for transformation, with easypaisa at the forefront of this digital revolution.
