Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the rating of Mobilink Microfinance Bank Limited, reflecting the bank's robust sponsor profile, improved financial performance, and reinforced capital position. The bank has benefited from significant financial backing and technological support from its affiliates, VEON Ltd. and Jazz Pakistan.
According to PACRA, the commitment of Mobilink Microfinance Bank's sponsors is evident in a capital injection of USD 35 million, with USD 15 million injected in the calendar year 2024 and the remaining USD 20 million disbursed in two tranches during 2025. This capital infusion is intended to bolster the bank's capital base, support the growth of micro, small, and medium enterprises (MSME), expand digital lending, and enable ongoing investment in digital infrastructure.
Mobilink Microfinance Bank employs a hybrid business model that combines core and branchless banking, leveraging its sponsor's ecosystem, particularly JazzCash, to expand digital financial services. This approach has allowed the bank to reach a broader customer base, enhancing its market share in gross loan portfolios to 22% in 2025 from 19% in 2024. The borrower base expanded to 5.5 million, primarily due to a 38% increase in nano lending clients.
Financially, the bank reported a profit of PKR 2.4 billion in 2025, a significant turnaround from a loss of PKR 1.8 billion in 2024. The earnings profile was strengthened by a rise in markup income to PKR 67 billion and non-markup income to PKR 22 billion, supported by a 54% growth in branchless banking income.
Mobilink Microfinance Bank's equity base grew to PKR 17.5 billion, with a Capital Adequacy Ratio of 19.5%, bolstered by sponsor-backed capital injections. Despite the cautious recovery of Pakistan's microfinance industry amid macroeconomic improvements and ongoing structural challenges, the bank's ratings depend on its ability to mitigate emerging risks and preserve its business and financial risk profile in the current environment.