VEON’s Mobilink Microfinance Bank Launches Islamic Banking Operations in Pakistan

Rhea-AI Summary

VEON (Nasdaq: VEON) announced that its subsidiary Mobilink Microfinance Bank launched Islamic banking operations in Pakistan after receiving an Islamic banking licence from the State Bank of Pakistan earlier in 2025.

Mobilink opened its first dedicated Islamic branch in Karachi, will open a second in Peshawar later this month, and plans a phased nationwide rollout of Shariah-compliant deposit and financing products via branches and digital channels.

The move targets individuals, micro-entrepreneurs and small businesses and follows sector momentum: Islamic banking assets were ~PKR 12.7 trillion (≈USD 44bn) and grew 28.3% YoY through Sept 2025, with deposits up 29.7% YoY.

Positive

• State Bank licence for Islamic banking granted in 2025
• First dedicated Islamic branch opened in Karachi
• Second branch planned in Peshawar later this month
• Sector scale: Islamic banking assets ~PKR 12.7 trillion (≈USD 44bn) through Sept 2025

Negative

• None.

Key Figures

Islamic banking assets PKR 12.7 trillion Pakistan Islamic banking assets as of September 2025

Islamic banking assets (USD) USD 44 billion Approximate equivalent of PKR 12.7 trillion

Islamic assets share 21.6% Share of total banking sector assets in Pakistan

Islamic deposits share 26.5% Share of total banking deposits in Pakistan

Asset growth 28.3% Year-on-year growth in Islamic banking assets

Deposit growth 29.7% Year-on-year growth in Islamic banking deposits

Market Reality Check

$52.70 Last Close

Volume Volume 90,669 is close to 20-day average of 94,403 (relative volume 0.96). normal

Technical Price 52.3 is trading above 200-day MA at 49.49, mid-range between 52-week low/high.

Peers on Argus

VEON is down 0.29% with mixed telecom peers: LBTYA, PHI, LBTYK lower, LBTYB flat, TDS higher, suggesting stock-specific factors around this Islamic banking launch.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 16	Renewable energy deal	Positive	+1.4%	Kyivstar bought SUNVIN 11 adding <b>12.9 MW</b> solar capacity for energy resilience.
Dec 16	Earnings timing update	Neutral	+1.4%	Announced dates for VEON and Kyivstar FY and Q4 <b>2025</b> results and calls.
Dec 15	Satellite connectivity test	Positive	+2.4%	Beeline Kazakhstan completed first Starlink Direct to Cell call and messages.
Dec 11	Digital payments approval	Positive	+0.1%	Banglalink gained approval as payment service provider to expand financial inclusion.
Dec 10	Industry awards	Positive	+0.8%	World Communication Awards recognition for JazzCash, Kyivstar and Jazz initiatives.

Pattern Detected

Recent VEON news, including digital finance and network innovation, has generally been followed by positive 24h price reactions.

Recent Company History

Over the past weeks, VEON has highlighted multiple growth and innovation initiatives. On Dec 10–11, recognition for JazzCash, Kyivstar and Jazz and Banglalink’s approval for digital payments underscored its financial inclusion focus. On Dec 15, Beeline Kazakhstan’s Starlink Direct to Cell test extended its connectivity story, while on Dec 16, Kyivstar’s solar acquisition supported energy resilience and a USD 1 billion Ukraine investment pledge. Today’s Islamic banking launch via Mobilink Microfinance Bank in Pakistan fits this broader digital financial services and inclusion trajectory.

Market Pulse Summary

This announcement highlights VEON’s push to deepen financial inclusion by launching Islamic banking at Mobilink Microfinance Bank in Pakistan, where Islamic banking assets reached PKR 12.7 trillion and deposits grew 29.7% year-on-year. It builds on recent initiatives in digital finance and connectivity across VEON’s markets. Investors may track branch rollout progress, customer adoption of Shariah-compliant products, and how these services integrate with existing digital platforms like JazzCash over time.

Key Terms

islamic banking financial

"has launched Islamic banking operations in Pakistan, expanding access"

A system of banking that follows Islamic law, which bans charging or paying interest and forbids investing in certain businesses; instead banks use contracts that share profit and loss or tie financing to tangible assets. For investors this matters because returns, risk profiles, contract structures and legal compliance differ from conventional banks, and these differences affect valuation, cash flow patterns and which markets or customers are reachable—think of it as banking that operates more like a business partner than a simple lender.

shariah-compliant financial

"expanding access to Shariah-compliant financial services in in response"

Shariah-compliant describes investments and financial products that follow Islamic law, which generally bans earning money from interest, gambling-like speculation, and businesses tied to alcohol, tobacco or other prohibited activities, and often limits heavy borrowing. Investors use these rules as a filter — like a dietary restriction for money — because they shape which companies are eligible, affect portfolio diversification and attract people seeking faith-aligned or lower-leverage options.

microfinance financial

"its financial services subsidiary, Mobilink Microfinance Bank Ltd., has launched"

Microfinance provides small loans, savings accounts and basic financial services to individuals or very small businesses who lack access to traditional banks, often in low-income communities. It matters to investors because it can offer diversified returns and social impact—similar to investing in many small neighborhood entrepreneurs rather than one big company—but carries specific risks like higher default rates, limited regulation and exposure to local economic or currency problems.

AI-generated analysis. Not financial advice.

Dubai and Islamabad, December 19, 2025 – VEON Ltd. (Nasdaq: VEON), a global digital operator, announced today that its financial services subsidiary, Mobilink Microfinance Bank Ltd., has launched Islamic banking operations in Pakistan, expanding access to Shariah-compliant financial services in in response to growing customer demand.

Mobilink Bank inaugurated its first dedicated Islamic banking branch this week in Karachi, Pakistan’s economic hub. A second Islamic banking branch is scheduled to commence operations in Peshawar later this month, followed by a phased rollout of Islamic banking services across additional locations nationwide. Mobilink Bank received its Islamic Banking licence from the State Bank of Pakistan earlier in 2025.

The launch of Islamic banking services supports the Bank’s strategy to broaden financial choice and inclusion for individuals, micro-entrepreneurs, and small businesses across Pakistan. Mobilink Bank’s Islamic banking portfolio will offer Shariah-compliant deposit and financing products designed to meet everyday financial needs and support business growth.

“With the launch of Islamic banking at Mobilink Bank, we are reinforcing our commitment to inclusive, customer-centric financial services,” said Aamir Ibrahim, Chairman of the Mobilink Bank Supervisory Board. “The continued growth of Islamic banking in Pakistan reflects strong demand and significant potential, which we are proud to address through solutions that empower individuals and businesses.”

“Expanding into Islamic banking allows us to directly respond to the needs of a large segment of Pakistan’s population,” said Haaris Mahmood Chaudhary, President and CEO of Mobilink Bank. “By offering transparent, faith-aligned products through both physical branches and digital channels, we are increasing access to formal financial services across the country.”

According to the State Bank of Pakistan’s Islamic Banking Bulletin for the period ending September 2025, Islamic banking assets reached approximately PKR 12.7 trillion (around USD 44 billion), accounting for 21.6% of total banking sector assets. Islamic banking deposits represented 26.5% of total deposits nationwide.¹ On a year-on-year basis, Islamic banking assets and deposits grew by 28.3% and 29.7%, respectively, underscoring the sector’s strong momentum and rising customer adoption.

Through JazzCash and Mobilink Microfinance Bank in Pakistan, Simply in Kazakhstan, and Beepul in Uzbekistan, VEON delivers digital financial services at scale, supporting financial inclusion and accelerating the transition toward cashless economies.

About VEON

VEON is a digital operator that provides converged connectivity and digital services to nearly 150 million connectivity customers and over 140 million digital users. 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 is listed on NASDAQ. For more information, visit: https://www.veon.com

Mobilink Microfinance Bank

Mobilink Microfinance Bank is Pakistan’s leading digital microfinance institution, committed to promoting financial inclusion through digital and branch-based banking services. The bank has been recognized for its institutional and digital capabilities, including being named Best Microfinance Bank at the Pakistan Banking Awards 2024 and winning the Best Digital Banking Services Award (Microfinance category) at the CFA Society Pakistan Annual Excellence Awards for three consecutive years. The Bank operates with a network of 114 branches. https://mobilinkbank.com/

Forward-Looking Statements Disclaimer

This release contains “forward-looking statements”, within the meaning of the Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, statements relating to our strategic ambitions regarding Islamic banking. There are numerous risks, uncertainties that could cause actual results and performance to differ materially from those expressed by such statements, including risks relating to our strategic ambitions regarding Islamic banking, among others discussed in the section entitled “Risk Factors” in VEON’s 2024 Form 20-F filed with the SEC on April 25, 2025 and other public filings made by VEON with the SEC. The forward-looking statements contained herein speak only as of the date of this release and VEON disclaims any obligation to update them, except as required by law.

Contact Information 

VEON
Hande Asik
Chief Communications and Strategy Officer
pr@veon.com

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¹ Islamic Banking Bulletin September-2025.pdf

Attachment

• VEON’s Mobilink Microfinance Bank Launches Islamic Banking Operations in Pakistan

FAQ

What did VEON announce on December 19, 2025 about Mobilink Bank (VEON)?

VEON said Mobilink Microfinance Bank launched Islamic banking operations after receiving an Islamic banking licence earlier in 2025.

Where and when did Mobilink Bank open its first Islamic banking branch (VEON)?

The first dedicated Islamic branch opened in Karachi in December 2025.

What is Mobilink Bank’s rollout plan for Islamic banking (VEON)?

A second Islamic branch will open in Peshawar later this month, followed by a phased nationwide rollout of services.

How large is Pakistan’s Islamic banking sector mentioned in the VEON announcement?

Islamic banking assets were approx PKR 12.7 trillion (≈USD 44bn) and grew 28.3% YoY through Sept 2025.

What products will Mobilink’s Islamic banking portfolio offer (VEON)?

Mobilink Bank will offer Shariah-compliant deposit and financing products for individuals, micro-entrepreneurs and small businesses.

How does VEON plan to deliver Islamic banking services in Pakistan?

Through dedicated physical branches and digital channels leveraging Mobilink Bank and JazzCash distribution.