ISLAMABAD: JazzCash and its associated financial services businesses recorded a 67.6 percent year-on-year increase in revenue to Rs43.4 billion in the third quarter ended September 30, 2026, as digital transactions surged, lending expanded and VEON strengthened its presence in Pakistan’s telecom and financial services markets through a USD240 million spectrum acquisition and takeover of TPL Insurance.
According to VEON’s latest financial results, the Pakistan financial services business, comprising JazzCash, Mobilink Microfinance Bank (MMBL) and JazzSure (formerly TPL Insurance), posted a net profit of Rs6.8 billion during the quarter, while profit before tax surged 296.8 percent to Rs8.9 billion.
The business generated a gross transaction value (GTV) of Rs6.9 trillion, up 79.2 percent from Rs3.86 trillion in the corresponding quarter last year, reflecting growing adoption of digital payments, money transfers and merchant services.
Branchless banking accounts increased 21.6 percent to 65 million, while customers active during the quarter rose 15.6 percent to 30.4 million. Transaction volumes increased 72.8 percent, and the average number of transactions per active customer grew 53.5 percent.
The merchant network also expanded significantly, with active merchants reaching 957,100, compared with 431,300 a year earlier, an increase of 121.9 percent. The overall merchant base approached two million by September 2026.
Payments and transaction revenue increased 67.8 percent to Rs9.73 billion, while credit-related revenue rose 60.3 percent to Rs26.1 billion. Investment income grew 62.6 percent to Rs5.24 billion.
Digital lending remained a major growth driver, with JazzCash issuing more than 230,000 nano-loans daily during the quarter. The overall gross loan portfolio of the Pakistan financial services business increased 51.9 percent year-on-year to Rs134.6 billion as of September 30, comprising Rs88.5 billion in conventional banking loans and Rs46.1 billion in nano-loans.
The banking loan portfolio’s non-performing loan ratio improved to 8.1 percent from 10.4 percent a year earlier, while nano-loan recoveries increased to 93.2 percent from 91.5 percent. However, loan-loss provisions rose 33.2 percent to Rs11.2 billion.
Operating profit before loan-loss provisions increased 88.3 percent to Rs20 billion, while EBITDA surged 137.2 percent to Rs13.84 billion.
For the first nine months of 2026, revenue increased 58.4 percent to Rs116.2 billion, while net profit surged 505.5 percent to Rs13.3 billion.
Separately, VEON’s telecom subsidiary JazzWorld Pakistan Limited secured the largest allocation of 190 MHz spectrum in Pakistan’s mobile spectrum auction held on March 10, 2026, for approximately USD240 million. The 15-year licence has been recognised as an intangible asset at a discounted value of USD209 million, with a corresponding liability.
JazzWorld also entered into two interest rate swap agreements with United Bank Limited on January 2, 2026, to hedge Rs75 billion of floating-rate loans.
The agreements cover two equal tranches of Rs37.5 billion for five and seven years at fixed rates of 12.55 percent and 12.85 percent, respectively.
Meanwhile, VEON’s subsidiary Jazz International Holding Limited completed the acquisition of a controlling 76.33 percent stake in TPL Insurance Limited on July 13, 2026, for a total consideration of USD16 million.
The acquisition, approved by the Competition Commission of Pakistan, is part of VEON’s strategy to expand digital financial services, including insurance, alongside its telecommunications and mobile financial services businesses.
VEON said the Pakistan financial services business was combining JazzCash’s customer and merchant reach with MMBL’s regulated banking capabilities and insurance services to expand access to payments, credit, savings, investments and insurance.
Copyright Business Recorder, 2026