Telenor Microfinance Bank Posts Stellar Turnaround in 1Q 2024

Telenor Microfinance Bank Posts Stellar Turnaround in 1Q 2024

Telenor Microfinance Bank (TMB), a leading entity in Pakistan’s fintech sector, has reported an outstanding financial outcome for the first quarter of 2024, marking a significant recovery from its performance during the same period last year.

The bank declared a robust profit before tax of PKR 1.03 billion in 1Q2024, a stark contrast to the PKR 185 million loss recorded in the first quarter of 2023.

This financial turnaround is underscored by a 29.6% increase in customer deposits, which soared to PKR 63.26 billion as of March 31, 2024. Similarly, TMB’s advances book witnessed a year-over-year (YoY) growth of 53.5%, reaching PKR 19.15 billion. These figures not only reflect TMB’s operational success but also its growing influence in the banking sector.

A critical element of TMB’s strategy has been its emphasis on unsecured loans, representing over 40% of its total lending portfolio. This focus has significantly contributed to its high traditional lending yield. Moreover, the bank has achieved an enviable low cost of deposits at 1.9% – one of the lowest in the industry, primarily driven by deposits through its mobile wallet services.

The bank’s robust Capital Adequacy Ratio (CAR) of 22.8% further highlights its solid financial footing, comfortably surpassing regulatory requirements and positioning it for sustainable future growth.

Kashif Ahmed, the Acting President & CEO of Telenor Microfinance Bank / easypaisa, reflected on the bank’s recent achievements: “We have carried the positive momentum from last year into the first quarter of 2024, which is evident from our exceptional financial and operational results. Our focus remains on enhancing the economic development of Pakistan while prioritizing our customers. I am grateful for the dedication of our team and the continuous support from our board members, partners, and regulators. Together, we are committed to advancing financial inclusion and digital prosperity across the country.”

Adding to its accolades, TMB’s flagship digital financial services platform, easypaisa, continued to expand its user base, now boasting over 41 million registered users with more than 14 million monthly active users. The easypaisa app remains the highest-rated financial services app in Pakistan with a 4.5-star rating.

Looking ahead, TMB is navigating its transition towards becoming a fully digital retail bank, subject to regulatory approvals. This move is aimed at further democratizing access to financial services and ensuring that banking conveniences are within the reach of every segment of Pakistani society, thus reinforcing its mission of empowering economic and social growth through financial technology.