TMB posts Rs1.2 billion pre-tax profit in 2023

KARACHI: Telenor Microfinance Bank (TMB), the operator of the digital financial services platform easypaisa, posted a profit before tax of Rs1.2 billion in 2023.

“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 TMB said in a statement. The bank recorded a loss after tax of Rs7.1 billion in 2022.

The bank reported revenue growth of 70 percent year-over-year of Rs28 billion in 2023, driven by a 90 percent growth in net markup income from higher deposits and favorable rates, as well as a 65 percent growth in non-markup income to Rs14 billion. Customer deposits grew 9.3 percent to Rs50.9 billion, while the advances book increased 60 percent to Rs18.6 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 Rs7 trillion, representing a substantial 56 percent growth in transactions and 77 percent growth in volume, compared with 2022.“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,” said Kashif Ahmed, Acting President & CEO TMB.

The bank’s transformation from a microfinance bank to a digital retail bank is subject to final regulatory approvals. The bank remains focused on maintaining a robust balance sheet and exploring new avenues for sustainable growth.