Easypaisa Digital Bank has reported a sharp rise in profitability for the year ended December 31, 2025, with Profit after Tax (PAT) increasing to Rs17.04 billion, compared to Rs3.41 billion in 2024. The exceptional performance reflects the bank’s successful digital-first strategy and growing market adoption of its services.
The bank’s audited financial statements, approved by the Board of Directors, show Earnings per Share (EPS) rising significantly to Rs28.47 in 2025 from Rs5.77 a year earlier. This five-fold increase in profitability demonstrates the scalability of the digital banking model in Pakistan.
Deferred Tax Boost
The substantial increase in profit was largely supported by the recognition of net deferred tax of Rs10.79 billion related to previously unabsorbed tax depreciation and business losses. This accounting adjustment allowed the bank to realize value from past investments and losses, contributing significantly to the bottom line.
While this deferred tax recognition boosted reported profits, it represents the realization of value from earlier periods rather than ongoing operational performance. However, the underlying business also showed strong momentum.
Revenue Growth and Diversification
The bank’s total revenue increased by 18.53% year-on-year to Rs46.1 billion, supported by growth in both markup and non-markup income streams. Net markup income rose by 7.12%, while non-markup income surged 37.76%, showing higher transaction volumes in payment services and expansion in digital lending activities.
The strong growth in non-markup income is particularly noteworthy, as it reflects the bank’s success in generating fee-based revenue from digital payment services, wallet transactions, and other value-added offerings. This diversification reduces reliance on traditional interest-based income.
Operational Efficiency Improves
Operating expenses recorded a 7.12% increase, mainly due to continued investment in technology infrastructure, talent acquisition, and customer growth initiatives. Despite this increase in absolute spending, operational efficiency improved significantly, with the cost-to-income ratio declining to 73.12% from 80.91% in the previous year.
The improvement in the cost-to-income ratio demonstrates that revenue growth is outpacing expense growth, a key indicator of operating leverage in a scaling digital business. As the customer base expands and transaction volumes increase, fixed costs are spread over a larger revenue base.
Strong Deposit Growth and Funding Structure
On the balance sheet side, customer deposits grew by 67.60% to Rs127.7 billion, showing strong growth in the bank’s deposit base. This rapid deposit accumulation reflects growing customer trust and the effectiveness of the bank’s digital acquisition channels.
The Current and Savings Account (CASA) ratio remained exceptionally high at 97.82%, indicating a strong low-cost funding structure. A high CASA ratio means the bank relies primarily on low-cost or zero-cost deposits rather than expensive fixed deposits, supporting net interest margins.
Asset Quality and Capital Position
The bank’s advances stood at Rs26.93 billion, translating into a loan-to-deposit ratio of 19.9%. This relatively conservative lending ratio suggests the bank maintains ample liquidity while selectively growing its loan book.
Asset quality indicators also showed improvement, with non-performing loans (NPLs) declining to 4%, while the coverage ratio stood at 144.6%. The decline in NPLs indicates effective credit risk management, while the high coverage ratio provides a buffer against potential future losses.
The bank’s equity reached Rs30.91 billion, and its Capital Adequacy Ratio (CAR) remained strong at 20.36%, well above the regulatory requirement. This strong capital position provides capacity for future growth and resilience against potential shocks.
About Easypaisa Digital Bank
Easypaisa Digital Bank is Pakistan’s first digital bank, evolving from the Easypaisa mobile financial services platform. The bank offers a range of digital banking services including payments, savings, lending, and investments through its mobile application, serving customers across Pakistan.
