Easypaisa Digital Bank has posted a strong financial performance for the first half of 2025, reporting a pre-tax profit of PKR 3.64 billion for the six months ending June 30. That marks a 39.4% jump from PKR 2.61 billion during the same period last year, underscoring the bank’s growing dominance in Pakistan’s digital financial services sector.

Digital Lending and Payments Drive Growth

The bank’s impressive earnings were powered by higher markup income and booming fee-based revenues, particularly from digital lending and payments. This growth came even as Pakistan’s central bank slashed its discount rate from 20% to 11% to counter easing inflation—a move that could have pressured margins but was offset by Easypaisa’s expanding customer base and transaction volumes.

Markup income climbed 15.6%, supported by the bank’s aggressive push into digital loans. Non-markup income surged 60.5%, benefiting from record-high transactions in cash deposits and withdrawals, as well as revenue from bundled products, insurance offerings, and corporate disbursement services.

Costs Rise, But Efficiency Improves

Operating expenses grew 9.6%, reflecting ongoing investments in technology infrastructure, workforce expansion, and customer acquisition. However, the cost-to-income ratio improved significantly to 66.9%, down from 80.5% a year earlier, signaling stronger operational efficiency.

Customer Confidence Boosts Deposits

Easypaisa’s transformation into a fully licensed digital retail bank is paying off. Customer deposits soared 41.3% year-over-year to PKR 94.7 billion, driven by growing trust in its digital ecosystem. The bank’s CASA ratio remained exceptional at 98.1%, while the cost of deposits stayed among the industry’s lowest at just 1.57%.

The bank closed the first half with 18.2 million monthly active users, reaffirming its position as Pakistan’s largest digital financial platform.

Loan Portfolio and Asset Quality

Total advances stood at PKR 27.7 billion, translating to a loan-to-deposit ratio of 25%. Non-performing loans were reported at 16.1%, but with a solid 91.4% coverage ratio. Easypaisa also maintained a strong Capital Adequacy Ratio (CAR) of 20.52%, indicating healthy capital buffers.

Leadership Outlook: Innovation-First Approach

Jahanzeb Khan, President and CEO of Easypaisa Digital Bank, said the bank’s performance reflects its mission to reshape digital banking in Pakistan:

“Our robust profitability in the first half of 2025 demonstrates our intent to lead innovation in Pakistan’s financial sector. We remain committed to providing simple and accessible digital financial services to every Pakistani.”

CFO Amin Sukhiani added that Easypaisa is well-positioned to accelerate growth by expanding offerings such as foreign exchange services, Islamic banking products, credit cards, remittances, and Buy Now Pay Later options. The bank is also scaling up its merchant network under Pakistan’s digital cashless economy push while bolstering its insurance marketplace.

Industry Context

As Pakistan’s first fully licensed digital bank, Easypaisa now boasts over 55 million registered users and continues to play a central role in the State Bank of Pakistan’s financial inclusion drive. With traditional banks facing challenges from high operating costs and limited reach, Easypaisa’s mobile-first approach has positioned it as a key player in bringing financial services to underbanked and unbanked populations.