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Telenor Microfinance Bank Reports PKR 1.2 Billion Pre-tax Profit in 2023, Secures Digital Retail Bank License

Karachi, Telenor Microfinance Bank (TMB) announced a pre-tax profit of PKR 1.2 billion for the financial year ended December 31, 2023. This profit marks a significant achievement underpinned by a 70% revenue increase to PKR 28 billion and the recent In-Principle Approval for a Digital Retail Bank license by the State Bank of Pakistan.

According to Telenor Pakistan, TMB's performance in 2023 was fueled by a 90% increase in net markup income, resulting from higher deposits and favorable rates, alongside a 65% rise in non-markup income reaching PKR 14 billion. The bank's customer deposits expanded by 9.3% to PKR 50.9 billion. Furthermore, the advances book saw a 60% growth, totaling PKR 18.6 billion. TMB maintained a strong capital adequacy ratio of 21.91%, significantly above the regulatory requirements.

The bank's digital financial services platform, easypaisa, continued to demonstrate robust growth, serving over 13.2 million monthly active users, a 17% increase from the previous year. The platform processed over 2.1 billion transactions in 2023, totaling more than PKR 7 trillion, indicating a 56% rise in transactions and a 77% increase in transaction volume compared to 2022.

Kashif Ahmed, Acting President and CEO of TMB, remarked on the financial results, stating the year 2023 as a pivotal period that not only highlighted the success of the bank's digital-first strategy but also set a foundation for future growth as a digital retail bank. He emphasized the role of technology in enhancing financial inclusion across Pakistan.

TMB is now transitioning from a microfinance to a digital retail bank, pending final regulatory approvals. The bank is committed to sustaining a strong balance sheet and pursuing opportunities for further growth, with a focus on innovating customer-centric solutions.

The post Telenor Microfinance Bank Reports PKR 1.2 Billion Pre-tax Profit in 2023, Secures Digital Retail Bank License appeared first on Pakistan Business News.