Mobilink Microfinance Bank Limited (or the “Bank”) was incorporated in February 2012 under the Companies Act, 2017 (formerly, Companies Ordinance, 1984). The Bank has a network of 124 branches including 2 Islamic banking branches (CY25: 124 branches). The Bank also has operations in Azad Jammu Kashmir with one branch in Muzaffarabad and one branch in Gilgit. It commenced its operations in April 2012 and launched branchless banking services under the brand name "JazzCash" in partnership with Pakistan Mobile Communications Ltd. (JazzWorld), in November 2012. Mobilink Microfinance Bank offers a range of micro-lending products comprising: (i) Karobar Loan, (ii) Khushhal Kisan Loan, iii) Fori Cash Loans, (iv) Livestock loans (v) House Loan, (vi) Tractor Loans, (vii) Passbook loan & (viii) Micro Enterprise Loan. At the end of 6MCY26, the Bank’s total borrower base expanded to 6.6mln, compared to 5.5mln in CY25, primarily attributable to an increase in nano lending clients, reflecting strong growth in its digital micro-lending segment.

Mobilink Microfinance Bank Limited is a subsidiary of Veon Microfinance Holdings B.V (V.M.H), with effect from March 27, 2020, upon transfer of 99.99% shareholding in the Bank from Global Telecom Holdings (GTH). The ultimate parent of the Bank is Veon Limited. The ownership structure of the Bank is considered stable, as it has sole ownership of a strong sponsor. Veon is an international telecommunication and technology-oriented business that provides services to over 355mln customers. Operating across five countries that are home to more than 6% of the world’s population, VEON is transforming lives through technology-driven services that empower individuals and drive economic growth. Veon's total asset base clocked in at USD 10,269mln while equity stood at USD 1,921mln as of Jun 2026, depicting a robust financial position of the ultimate sponsor.

The overall control vests in the six-member Board of Directors (BoD). The Board comprises four non-executive directors, one independent directors and one executive director. Mr. Aamir Hafeez Ibrahim is the Chairperson of the Board. The directors are experienced professionals, having exposure in different sectors, including microfinance and telecommunication. The Board exercises its oversight via four committees, namely (i) Board Audit Committee (BAC) (ii) People Committee (PC), (iii) Board Information Technology Committee (BITC) and (iv) Board Risk Management & Compliance Committee (BRMCC). M/s Yousuf Adil Chartered Accountants, the Bank’s external auditors and categorized in the “A” panel of auditors by the State Bank of Pakistan (SBP), have issued an unqualified opinion on the financial statements for the period ended December 2025.

The Bank has divided its organization structure into different departments with each department head reporting directly to the CEO, while the head of the internal audit department, reports to the Audit Committee. Mr. Haaris Mahmood Chaudhary has been appointed as a CEO of the Bank on Jan 15, 2025. He has over 22 years of experience in the banking sector. He is assisted by an experienced management team. Mr. Adil Ali Abbasi is serving as Chief Financial Offiecr of the Bank. He is a seasoned finance professional with over 22 years of experience across banking, financial advisory, pharmaceuticals, and corporate sectors. The Bank has eighteen management committees in place. The committee meetings are conducted on a frequent basis to ensure a smooth flow of processes. Detailed MIS reports are generated for the senior management on a daily and monthly basis pertaining to loan portfolio, disbursements, repayments, delinquencies, provisioning, recoveries, and deposits. A separate Risk Management Department is in place to oversee various risks, including credit, operational, and market risks. The Risk Management Committee meets on a regular basis to ensure the risk profile of the Bank remains within the Board of Directors approved limits. Backboned with strong sponsors and a natural affiliation with the telecom industry, the Bank is equipped with sound technological infrastructure. It deploys Temenos (T24) as its core banking software. The Bank has in place Middleware, an innovative technological platform, to facilitate branchless banking operations, ATM service, Utility bill payment, and G2P payments.

Pakistan’s microfinance ecosystem comprises Microfinance Banks (MFBs), Microfinance Institutions (MFIs), Rural Support Programmes (RSPs), and FinTechs, with MFBs dominating (~77% of Gross Loan Portfolio (GLP)) and funded through customer deposits, highlighting their systemic importance. The sector entered FY25 in a phase of cautious recovery following macroeconomic shocks. By late CY24–Oct’25, conditions improved modestly, with easing inflation (~5.6%), stable currency, lower interest rates, and projected GDP growth of ~2.6%–3.6% for FY26. Despite this, the sector continues to face elevated credit risk, weak capital buffers, and concentration in livestock and agriculture (~57%), increasing vulnerability to external shocks. During CY25, sector advances rose to PKR 468bln (CY24: PKR 421.2bln), with ADR at 65% (CY24: 63%). Mobilink Microfinance Bank’s ADR stood at 41.8%. The sector’s CAR remained weak at -1.2% at the end of CY25 (CY24: 2.6%), whereas Mobilink Microfinance Bank improved its CAR to 19.5% at the end of CY25 and 16.2% at the end of 6MCY26, which is well above regulatory requirements. The MMBL has a 22% market share in terms of Gross Loan Portfolio at the end of CY25 and 19% with secured lending of 48% at the end of CY24. Whereas, it stood at 24% at the end of 6MCY26. In the branchless banking domain, the Bank is the leading player in the industry. The Bank is committed to maintaining its dominant position in branchless banking with its flagship product Jazz Cash. During CY25, mark-up income earned by the Bank increased by 26% to stand at PKR 67bln (CY24: PKR 53bln). During 6MCY26, mark-up income stood at PKR 47bln (6MCY25: PKR 31bln), depicting a strong YoY increase of ~52%, largely supported by higher income from advances. Income from branchless banking increased to PKR 20bln (CY24: PKR 13bln), indicating an increase of 54%. During 6MCY26, branchless banking income increased to PKR 14bln (6MCY25: PKR 9bln), reflecting growth of ~60% and reinforcing the increasing contribution of the Bank's digital ecosystem to its earnings. During CY25, the net interest markup of the Bank increased to PKR 56bln (CY24: PKR 41bln). Non-markup income of the Bank increased to PKR 22bln (CY24: PKR 14bln) on the back of a 55% surge in branchless banking income. Whereas, net mark-up income increased to PKR 41.0bln during 6MCY26 (6MCY25: PKR 25.5bln), registering growth of ~61%, supported by strong earning-asset yields and relatively contained funding costs. The Bank reported a significant turnaround in CY25, posting a profit of PKR 2.4bln (CY24: loss of PKR 1.8bln). This recovery reflects the combined impact of enhanced markup income and the continued growth in branchless banking income. The profitability trend remained positive during 6MCY26, with the Bank reporting PAT of PKR 1.5bln (6MCY25: PKR 0.9bln), reflecting continued improvement in the Bank's core earnings capacity. The Bank plans to persist in strengthening its branchless banking operations. Micro-deposits continue to add strength to the Bank's performance indicators. The Bank's business model encompasses systems and practices to nurture BB and core banking results simultaneously. In light of the safety precautions taken during the global pandemic, the importance of branchless banking has risen manifold.

The Bank’s advances portfolio is predominantly concentrated in livestock, accounting for 45% of total exposure, followed by nano loans at 30%, indicating reliance on core microfinance segments. Agriculture contributes 14%, while working capital and housing remain relatively small portions at 9% and 2%, respectively. At the end of CY25, the Bank’s gross advances clocked in at PKR 118bln (CY24: PKR 87bln), depicting a growth of 35% due to increase in nano loans of 38%. During 6MCY26, gross advances increased to ~PKR 138bln reflecting continued loan-book expansion. During CY25, total loan disbursements stood at PKR 320bln. Livestock loans accounted for PKR 48bln, followed by agriculture at PKR 13bln and microenterprise at PKR 10bln, while housing remained minimal at PKR 576mln. The disbursement mix reflects continued focus on core microfinance segments alongside significant growth in broader lending categories. During the period, the Bank recorded provisions amounting to PKR 17bln (CY24: PKR 12bln) and PKR 22bln at the end of 6MCY26. Of the total provisioning, 46% was allocated to the agriculture segment, followed by 39% to housing loans, while commercial vehicle loans and running finance each accounted for 6%, and microenterprise loans comprised the remaining 3%. Despite this sizeable growth in the loan book, asset quality remained largely stable, with net non-performing loans marginally improving to PKR 3.1bln (CY24: PKR 3.4bln). Accordingly, the infection ratio remained unchanged at 11% at the end of CY25 and 12% at the end of 6MCY26. The Bank’s total investment significantly increased during the period, clocking in at PKR 95bln (CY24: PKR 61bn), largely driven by a 60% increase in exposure to Treasury Bills. Whereas, investments increased to PKR 129bln at the end of 6MCY26. The portfolio continues to remain entirely invested in government securities. Whereas, at the end of CY25, the total deposits of the Bank increased by 38% to stand at PKR 214bln (CY24: PKR 155bln) and PKR 278bln at the end of 6MCY26, primarily driven by increase in customer deposits. This growth reflects strengthened deposit mobilization, improved franchise traction and also supports funding stability and reduces reliance on potentially volatile sources. The total borrowings increased to PKR 3.5bln during CY25 (CY24: PKR 766mln) and it remained intact at the end of 6MCY26. To strengthen the Bank’s capital base and support its strategic initiatives, sponser injected equity of USD 15mln (around PKR 4.2bln) during CY24 and USD 20mln (approximately PKR 6bln) subsequently disbursed in two tranches during CY25—USD 5mln (around PKR 1.4bln) in Sep'25, followed by PKR 4.4bln in Nov'25. This phased equity infusion is aimed at reinforcing the Bank’s capital adequacy, expanding MSME financing, scaling up digital lending initiatives, and fostering long-term growth in its digital ecosystem. The timely execution of these capital commitments reflects VEON’s continued confidence in MMBL’s growth trajectory and its pivotal role in promoting financial inclusion across Pakistan. Following the equity injection, the Bank’s equity base increased to PKR 17bln at the end of CY25 (CY24: PKR 9bln) and PKR 19bln at the end of 6MCY26, materially strengthening its capital structure. This enhancement provides a stronger buffer against potential losses, supports future asset growth, and improves the Bank’s capacity to absorb credit risk while sustaining its expansion strategy.

Mobilink Microfinance Bank Limited has issued Rated, Privately Placed Listed/ DSLR, Unsecured, Tier II Term Finance Certificates ("TFC") of PKR 2bln to contribute towards the Bank’s Tier II capital for complying with the Minimum Capital Requirements (MCR) and Capital Adequacy Ratio (CAR) requirement prescribed by the SBP. The TFC has a tenor of 7 years from the date of issue. The profit is being paid semi-annually in arrears at the rate of 6MK+210bps p.a on the basis of the outstanding principal amount. The issuer may call the TFCs, in parts or in full, after five years from the issue date on the principal redemption date, thereafter, subject to prior approval from the SBP. Further, the call option is exercisable if MMBL's MCR, LR, and CAR requirements are in compliance with the requirements prescribed by SBP. As per the lock-in clause requirement for tier II issues, neither profit nor principal would be payable (even at maturity), if such payment will result in a shortfall in the Bank's MCR, leveraged ratio, or CAR or results in an increase in any existing shortfall in MCR, LR or CAR. The TFC will be subject to a loss absorbency clause, upon the occurrence of a point of Non-Viability event, SBP may fully or permanently convert the TFCs into common shares of the Bank. The principal of TFC shall be redeemed in four equal installments commencing from May 23, 2028 (the end of the 66th month from the issue date). The Bank paid the 7th semiannual markup payment on May 23, 2026 amounting to PKR 132mln.

The TFC ranks pari passu with other Tier II instruments and superior to any Additional Tier I instruments.

The TFC is unsecured.