Telenor Microfinance Bank witnesses around 30% surge in customer deposits
Telenor Microfinance Bank (TMB), a prominent player in
Pakistan's fintech sector, has announced remarkable financial results for the
first quarter of 2024, signifying a notable turnaround from its performance in
the same period last year.
The bank recorded a substantial profit before tax of PKR
1.03 billion in 1Q2024, a significant improvement compared to the PKR 185
million loss incurred in the first quarter of 2023.
This financial resurgence is highlighted by a 29.6% surge in
customer deposits, reaching PKR 63.26 billion by March 31, 2024. Additionally,
TMB's advances book experienced a year-over-year (YoY) growth of 53.5%,
reaching PKR 19.15 billion. These figures not only underscore TMB's operational
success but also its growing influence in the banking sector.
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A key aspect of TMB's strategy has been its focus on
unsecured loans, constituting over 40% of its total lending portfolio. This
emphasis has significantly contributed to its high traditional lending yield.
Furthermore, the bank has achieved a commendably low cost of deposits at 1.9% –
one of the industry's lowest, primarily driven by deposits through its mobile
wallet services.
TMB's robust Capital Adequacy Ratio (CAR) of 22.8% further
demonstrates its solid financial position, comfortably exceeding regulatory
requirements and positioning it for sustainable growth in the future.
Kashif Ahmed, the Acting President & CEO of Telenor
Microfinance Bank / easypaisa, commented on the bank's recent accomplishments:
"We have carried forward the positive momentum from last year into the
first quarter of 2024, as evident from our exceptional financial and operational
performance. Our focus remains on advancing Pakistan's economic development
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 dedicated to promoting financial inclusion and digital
prosperity throughout the country."
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In addition to its achievements, 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
transition aims to further democratize access to financial services and ensure
that banking conveniences are accessible to every segment of Pakistani society,
reinforcing its mission of empowering economic and social growth through
financial technology.
Source: pkrevenue.com