JazzCash and Mobilink Bank earned Rs6.8 billion in a quarter, and lending supplied six rupees in ten
VEON's third quarter report breaks out Jazz's financial services unit for the first time. The figures show a lender whose wallet brings the customers and whose loans pay the bills.
Of every Rs100 that Jazz's financial services unit booked in the third quarter, about Rs60 came from interest and fees on loans and about Rs22 from payments. VEON, which reported its results on 6 November, now shows Pakistan Financial Services, the unit that holds JazzCash, Mobilink Bank and the JazzSure insurer, separately from the Jazz mobile operator. The unit made a net profit of Rs6.8 billion on revenue of Rs43.4 billion in the three months to 30 September.
Until this quarter VEON reported the two businesses together as Pakistan. It says the split gives investors a clearer view of the economics of each. The figures are stand alone and may not add up to the consolidated Pakistan result because of intercompany eliminations and consolidation adjustments.
A lender with a wallet attached
Revenue rose 67.6 percent on the third quarter of 2025. Profit before tax rose 296.8 percent to Rs8.9 billion, which implies about Rs2.3 billion a year earlier. Costs grew more slowly than income: operating profit before loan loss provisions was Rs20.0 billion, up 88.3 percent, and provisions of Rs11.2 billion, up 33.2 percent, took 56 percent of it.
The magazine's arithmetic shows how much the loan book carries. The gross loan portfolio grew from Rs88.6 billion to Rs134.6 billion, an average of about Rs111.6 billion across the year. Credit related revenue of Rs26.1 billion in one quarter, multiplied by four, is Rs104.4 billion a year, or about 93 percent of that average balance. The figure includes fees and rests on two end points, because VEON does not publish daily balances. Provisions of Rs11.2 billion, annualised the same way, are about 40 percent of the average book, which leaves roughly 53 percent after credit losses.
The mix is moving towards small, short loans. Nano loans, which average Rs5,700 and run for four weeks, reached Rs46.1 billion, up 130.9 percent, against Rs88.5 billion of banking loans, up 29.0 percent. Banking loans average Rs634,000 over about two years, and VEON says more than 80 percent of that book is secured on gold or other collateral. Nano loans are now 34 percent of the portfolio, from 22.5 percent a year ago. JazzCash issued more than 230,000 of them a day. Over the 92 days of the quarter that is about 21 million loans and roughly Rs120.6 billion lent, or about 85 percent of the Rs141.3 billion the unit disbursed in total, even though nano loans are only a third of the balance. They turn over every month, so the book stays small while the volume lent does not.
Credit quality improved on the company's own measures. The share of banking loans classed as credit impaired fell to 8.1 percent from 10.4 percent. The nano loan recovery rate was 93.2 percent, up from 91.5 percent, measured on cohorts that matured in the quarter, which means about 6.8 percent of their principal was not recovered. Mobilink Bank's capital adequacy ratio slipped to 16.8 percent from 18.0 percent as the book grew.
Payments earn little per rupee
Gross transaction value reached Rs6.9 trillion in the quarter, up 79.2 percent, and Rs22.7 trillion over twelve months. Only Rs3.2 trillion, or 46 percent, was chargeable, and VEON says a material share of transactions earns no fee, partly because of regulatory restrictions. Payment and transaction revenue of Rs9.73 billion is therefore about 0.30 percent of chargeable value and 0.14 percent of everything moved.
The float does more work than the fees. Investment income, which VEON says comes mainly from interest on cash deposits, float balances and government securities, was Rs5.2 billion on average monthly investments of Rs289.0 billion, or about 7.2 percent a year. Add payment revenue and other income of Rs2.4 billion and the non credit total is Rs17.3 billion, still short of the unit's Rs23.4 billion of operating costs by about Rs6.1 billion. Costs are not allocated by product, so the sum is an illustration, but it shows why the lender carries the wallet and not the reverse. Credit revenue less provisions came to Rs14.9 billion.
Scale against the operator
Set against Jazz itself, the unit is already large. Jazz's stand alone EBITDA was Rs51.3 billion, up 9.6 percent. Pakistan Financial Services made Rs13.8 billion, up 137.2 percent, or 27 percent of the operator's figure. VEON's consolidated Pakistan digital EBITDA was Rs20.5 billion, so the financial unit supplies roughly two thirds of it.
The customer base is broad but not deep. The unit has 65.0 million branchless bank accounts, 30.4 million of them active in the quarter, and 957,100 active merchants, up 121.9 percent. Revenue per active customer works out to about Rs1,430 for the quarter. VEON says its work on customer verification and activity monitoring may moderate near term growth and add friction at the margin.
The capital ratio is the number to follow. It fell 1.2 points while the book grew 51.9 percent, and the unit has to fund further growth from quarterly profit of the size it has just reported: Rs6.8 billion, about half of the Rs13.3 billion earned in the first nine months of 2026.
