KARACHI: 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 Rs 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.
The Bank reported revenue growth of 70 percent year-over-year of Rs 28 billion, driven by 90 percent growth in net markup income from higher deposits and favorable rates, as well as 65 percent growth in non-markup income to Rs 14 billion.
Customer deposits grew 9.3 percent to Rs 50.9 billion, while the advances book increased 60 percent to Rs 18.6 billion. The Bank also maintained a robust capital adequacy ratio of 21.91 percent, 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 percent year-over-year increase. The easypaisa app saw 9.6 million monthly active app users, up 32 percent from 2022, maintaining its position as Pakistan's top financial app. In 2023, easypaisa processed over 2.1 billion transactions worth Rs 7 trillion, representing a substantial 56 percent growth in transactions and 77 percent 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.”
Copyright Business Recorder, 2024
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