After a prolonged period of losses, Telenor Microfinance Bank’s income statement finally swung into a profit of Rs. 415 million by the end of September 2023.
Last year, the bank reported a huge loss of over Rs. 6 billion in the same period last year, according to the financial report. The leading microfinance bank reported a profit of Rs. 403 million in the third quarter of 2023 which ultimately turned its bottom line to green.
The bank is working to bring efficiency in the operations through a business strategy, which enhanced its earnings from markup sources by Rs. 9 billion in the nine months of 2023 as compared to Rs. 4.6 billion reported in a similar period of 2022.
The non-mark-up profit also showed an increase of Rs. 9.4 billion from January to September 2023 as against Rs. 4.6 billion reported in SPLY. Besides improvement in earning receipts and operations, the profitability was also supported by the equity injection from the sponsors as part of its commitment to the tune of Rs. 1.38 billion in 2023.
The accumulated losses of the bank, however, stood at above Rs. 45 billion. The management of the bank is working to develop itself as a digital retail bank with an increasing focus on improving digital banking services.
The sponsor will further provide an equity injection of $15 million in the remaining period of 2023 to support the transition of the bank from the microfinance business to digital retail banking.