Telenor Pakistan Limited, a telecom operator in Pakistan with 28.5 million customers, recently announced that it will increase its focus on its mobile banking unit to face increased competition in the sector. In January, Telenor Pakistan’s mobile banking service, EasyPaisa, facilitated transactions totaling USD 3.5 million through 16,000 outlets which offer a variety of services such as microloans, bill payments and money transfers. Approximately two percent of Telenor Pakistan’s total revenue is generated by financial services, and the CEO of Telenor Pakistan, Lars Christian Iuel, reportedly said “that figure will probably jump ‘many-fold’” [1].
Telenor Pakistan also plans to expand the rural market share of Tameer Microfinance Bank, a licensed Pakistani commercial bank in which Telenor holds a controlling stake. Mr. Iuel has been quoted saying that “the microbanking unit will become a major and integral part of our business and our profits” [1]. Tameer reports USD 61 million in assets and 110,000 borrowers as of 2010.
Telenor Pakistan generated 5.1 percent of the revenue of its parent Telenor ASA (TEL) of Norway in 2011. Although this share is up from 4.9 percent during the previous year, the absolute amount of revenues from Telenor Pakistan have waned as costs associated with security and power blackouts have ranged up to 15 percent of total operational spending.
Amira Berrada, Research Associate
About Telenor Group (TEL): Telenor Group (TEL) is a Norwegian mobile communications company provider operating in 11 markets in Europe and Asia as of 2010. Its fully owned subsidiary, Telenor Pakistan, controls Tameer Microfinance, a microfinance bank in Pakistan. Easypaisa is a joint venture of Telenor Pakistan and Tameer Microfinance that provides both branchless banking and mobile financial services in Pakistan. As of 2010, Telenor Group reported total revenues of NOK 95 billion (USD 17 billion).
About Telenor Pakistan Limited: Telenor Pakistan is fully owned by the Telenor Group, a Norwegian communication services provider operating in 11 markets in Europe and Asia as of 2010. Telenor Pakistan began commercial operations in Pakistan on March 15, 2005. Telenor Pakistan acquired 51 percent of the shares of Tameer Microfinance Bank in November 2008. In 2009, it launched Easypaisa to offer branchless banking services across Pakistan. There are reportedly 14,000 Easypaisa agents in approximately 600 cities as of 2010. At the end of October 2010, it reported a subscriber base of 28.5 million and a market share of 24 percent.
About Tameer Microfinance Bank Limited: Tameer Microfinance Bank Limited (TMFB) is a licensed commercial bank in Pakistan that provides microfinance services such as small business, group and emergency loans; micromortgages; microinsurance; savings; and money transfers. It was founded in 2005 and is based in Shahrah-e-Faisal, Pakistan. Telenor Pakistan, a subsidiary of the Norwegian mobile communications company Telenor, owns 51 percent of TMFB. As of 2010, TMFB reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 61.7 million, a gross loan portfolio of USD 36.2 million, return on assets (ROA) of 3.74 percent, return on equity (ROE) of 12.6 percent and 111,100 active borrowers.
Sources and Resources:
[1] http://www.bloomberg.com/news/2012-02-29/telenor-pakistan-plans-bank-foc…
MicroCapital.org article, December 27, 2011, “MICROCAPITAL BRIEF: Asasah of Pakistan to Collect Microloan Repayments via Easypaisa Service of Tameer Microfinance Bank, Telenor Pakistan” https://www.microcapital.org/microcapital-brief-asasah-of-pakistan-to-col…
MicroCapital.org article, August 4, 2011, “MICROCAPITAL BRIEF: “Boston Consulting Group Publishes “Socio-Economic Impact of Mobile Financial Services” for Telenor, Exploring Effects of Mobile Financial Services in Bangladesh, India, Malaysia, Pakistan, Serbia Over the Next Decade” https://www.microcapital.org/microcapital-brief-boston-consulting-group-p…
MicroCapital Universe Profile for Telenor ASA (TEL): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=tel…
MicroCapital Universe Profile for Telenor Pakistan Ltd : https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Tel…
MicroCapital Universe Profile for Tameer Microfinance Bank: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Tam…
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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