Mobilink Bank’s Remarkable 38% Surge in MSME Lending

Mobilink Bank’s Thriving Journey in Q3 2023

In a financial landscape marked by fluctuations and uncertainties, Mobilink Bank, part of the VEON group, has charted a remarkable course of growth in the first three quarters of 2023.

As illuminated by the Q3 financial statements, the bank has not only demonstrated an unwavering commitment to supporting Micro, Small, and Medium-Sized Enterprises (MSMEs) but also achieved substantial progress on multiple fronts. This substantial growth, guided by the ethos of fostering economic well-being and prosperity, is reshaping the contours of digital microfinance.

VEON Group’s Digital Revolution

Mobilink Bank stands as a proud member of the VEON group, a global digital operator known for providing converged connectivity and online services across seven countries. VEON’s digital operator strategy has unleashed opportunities for enhanced digital inclusion and economic growth, impacting over 8% of the world’s population.

Impressive Financial Metrics

Mobilink Bank’s financial performance in Q3 2023 reflects its magnetic appeal to customers and its prowess in retaining them. Total revenue saw an impressive 64% surge, while Profit Before Tax (PBT) soared by a staggering 299% when compared to 2022. These figures solidify Mobilink Bank’s position as a leading digital microfinance institution.

Deposit Growth and Dynamics

Deposits are the lifeblood of any financial institution, and Mobilink Bank has not been complacent in this regard. The bank’s total deposits witnessed a 16% increase from FY 2022, surging to PKR 75 billion. Core banking deposits, the bedrock of its financial structure, grew by 12%, reaching PKR 23 billion. JazzCash segment deposits, powered by Mobilink Bank, experienced a robust 19% growth, reaching PKR 52 billion in Q3 2023.

Championing MSME Financing

Mobilink Bank is unwavering in its commitment to promoting MSME financing across Pakistan. Over PKR 11 billion, constituting 22% of its Gross Loan Portfolio (GLP), has been extended to 69,470+ female customers nationwide, advocating for gender equality and fueling economic activity. Additionally, the bank disbursed PKR 26 billion in loans to MSMEs, marking a substantial growth of 38% compared to 2022.

Leadership’s Commendation

Ghazanfar Azzam, President & CEO of Mobilink Bank, and Taimoor Farid, Acting Chief Financial Officer & Director Strategy, expressed their satisfaction with the robust financial results in Q3 2023. They acknowledged the remarkable growth in deposits as a testament to the trust of valued customers. Their commitment to nurturing future economic growth through tailored solutions for the vital MSME sector was further emphasized, underlining the increased engagement with MSME depositors.

Weathering Economic Uncertainties

Despite the uncertainties stemming from high inflation, Mobilink Bank has expanded across all its verticals. In Q3 2023, the average ticket size increased by 23% to PKR 275K, leading to a 64% revenue growth, totaling PKR 27.8 billion, in comparison to Q3 2022. The core banking revenue witnessed a robust 54% upswing, reaching PKR 13.8 billion, while branchless banking revenue surged by 76%, amounting to PKR 13.9 billion during the corresponding period.

Profitability and Dedication

Mobilink Bank’s impressive performance, with a 17.3% Return on Equity (ROE) and a 1.2% Return on Assets (ROA), underscores its effective and forward-thinking strategy. These returns not only highlight the bank’s profitability but also its unswerving dedication to supporting MSMEs. As the journey unfolds, Mobilink Bank remains steadfast in its commitment to maintaining high performance and providing dedicated support, especially to empower its valued MSME borrowers, including women, for sustainable development.

In the fast-evolving landscape of digital microfinance, Mobilink Bank stands as a beacon of growth and dedication, steering the way toward economic prosperity and empowerment.