MNT Halan, a prominent Egyptian fintech leader, has sealed the deal to acquire Advans Microfinance Bank, receiving approval from Pakistan’s State Bank. This acquisition marks a significant move in the financial landscape, pending final legal formalities, including a No-Objection Certificate from the Competition Commission of Pakistan (CCP). Advans Microfinance Bank, a subsidiary of Advans S.A. Sicar in Pakistan, holds a 99.99 percent stake in operations.
Established in 2013, Advans Microfinance Bank has expanded to 13 branches across various cities in Sindh. Despite a capital requirement exceeding Rs. 745 million and reporting assets of Rs. 5.2 billion, with deposits reaching Rs. 3.8 billion by the third quarter of 2023, the bank faced challenges. In the same period, it reported a loss after tax of Rs. 228 million compared to Rs. 30.9 million in the previous year’s nine months.
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The bank’s aspirations to extend operations nationwide faced setbacks due to sustained losses, exacerbated by the COVID-19 pandemic and subsequent floods in Sindh, severely impacting borrowers and disrupting daily life. With the parent company’s decision to divest its Pakistani operations due to these challenges, MNT Halan emerged as the potential buyer.
MNT Halan, recognized for digitally empowering the unbanked and promoting electronic transactions, disbursed over $2.5 billion in loans in Egypt. This acquisition positions MNT Halan as a microfinance banking subsidiary in Sindh, introducing its expertise and digital solutions to the Pakistani market.
Pakistan’s microfinance industry witnesses a consolidation phase amid intensified competition and external challenges, reshaping the landscape for microfinance providers operating within select coverage areas.
