Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has affirmed the ratings of Mobilink Microfinance Bank Limited, citing the bank's robust sponsor profile, enhanced financial performance, and strengthened capital position. The bank's association with VEON Ltd. and Jazz Pakistan has been instrumental in providing technological support and financial backing, which included a capital injection of USD 35 million, aimed at bolstering the bank's capital base and supporting its growth in micro, small, and medium enterprise (MSME) and digital lending.
According to PACRA, the capital infusion was staggered over two years, with USD 15 million injected in 2024 and the remaining USD 20 million disbursed in two tranches in 2025. Mobilink Microfinance Bank's business model, which combines core and branchless banking, leverages its sponsors' ecosystem, particularly through JazzCash, to enhance its digital financial services and expand its customer base. This approach has resulted in the bank growing its borrower base to 5.5 million in 2025, a significant increase from 4 million in the previous year, driven by a 38% rise in nano lending clients.
The bank's market share in terms of Gross Loan Portfolio improved to 22% in 2025, up from 19% in 2024. Mobilink Microfinance Bank's earnings profile also saw an upswing, with markup income reaching PKR 67 billion, including PKR 39 billion from nano loans. Non-markup income rose to PKR 22 billion, bolstered by a 54% increase in branchless banking income. This financial growth translated into a profit of PKR 2.4 billion in 2025, marking a recovery from a loss of PKR 1.8 billion in the previous year.
The bank's equity base strengthened to PKR 17.5 billion, with a Capital Adequacy Ratio of 19.5%, supported by sponsor-backed capital injections. Despite these positive developments, the microfinance sector in Pakistan continues to navigate challenges such as elevated credit risk and relatively weak capitalization among microfinance banks. The sector remains concentrated in higher-risk segments, with livestock and agriculture comprising a significant portion of outstanding loans.
PACRA's ratings for Mobilink Microfinance Bank are contingent upon the bank's ability to manage emerging risks effectively amid prevailing economic conditions, ensuring the stability of its business and financial risk profile.